---

        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

           Monday, January 11, 2010, Vol. 11, No. 006

                            Headlines



B O S N I A   &   H E R Z E G O V I N A

* BOSNIA: Low Economic Strength Cues Moody's B2 Bond Rating


E S T O N I A

KODUMAJAGRUPP: May Face Bankruptcy, Expects No Profit in 2010


F R A N C E

NEOVIA ELECTRONICS: To File for Insolvency at Meaux Court


G E R M A N Y

GELDILUX-TS-2007 SA: Fitch Cuts Rating on Class C Notes to 'B-'
VIVACON AG: Two Subsidiaries File for Insolvency in Cologne


I R E L A N D

CLOVERIE PLC: S&P Withdraws 'CCC-' Rating on EUR32.5 Mil. Notes


I T A L Y

MARIELLA BURANI: EUR770MM Debt Figure in Il Sole Report Inaccurate
MARIELLA BURANI: Wants to Hire Franco Tato as New Debt Adviser


K A Z A K H S T A N

ALLIANCE KV: Creditors Must File Claims by January 20
BEKNUR LLP: Creditors Must File Claims by January 20
BIR OIL: Creditors Must File Claims by January 20
BROKO REGION: Creditors Must File Claims by January 20
DERBIS LLP: Creditors Must File Claims by January 20

EKIBASTUZ SHEBEN: Creditors Must File Claims by January 20
EURO ASIA: Creditors Must File Claims by January 20
KRUG LLP: Creditors Must File Claims by January 20


K Y R G Y Z S T A N

BRV ASIA: Creditors Must File Claims by February 4
SCKAN LINE: Creditors Must File Claims by February 4


N E T H E R L A N D S

PROSPERO CLO: Moody's Junks Rating on Class D Notes From 'Ba2'


P O L A N D

GETIN BANK: Fitch Affirms Individual Rating at 'D'


P O R T U G A L

LUSITANO MORTGAGES: Fitch Cuts Rating on Class E Notes to 'B'


R U S S I A

KRASNY OKTYABR: Volgogradskaya Bankruptcy Hearing Set March 23
RUSSNEFT NK: Deripaska Sells Biz Back to Founder, Vedomosti Says
TEKH-STROY-TRANS: Udmurtia Bankruptcy Hearing Set March 11


U N I T E D   K I N G D O M

BRADFORD & BINGLEY: Branches to Be Rebranded Under Santander Name
FOXTONS: Lenders Take Majority Stake Under Restructuring Deal
JANE NORMAN: Lenders to Control 80% Stake Under Debt Restructuring
JJ & HB: In Administration; About 200 Jobs at Risk
KILMARTIN HOLDINGS: In Receivership; Lloyds Faces GBP200 Mln Loss

PRESBYTERIAN MUTUAL: Administrator May Be Allowed to Run Business
ROYAL BANK: Gets Three Bids for Sempra Commodities
THORNFIELD VENTURES: In Administration; Deloitte Appointed

* UK: KPMG Predicts Slow Recovery for Manufacturing Sector


X X X X X X X X

* EUROPE: Depressed IPO Markets Show Upturn in Fourth Quarter 2009
* PwC Sees Changes in Forest, Paper & Packaging Cos. Industries
* Auto Industry Faces More Restructuring in 2010
* Auto Industry Needs New Approaches In a Changed Global Market
* S&P Says 2009 Ends With 265 Defaults; 4 Issuers Default In 2010

* BOND PRICING: For the Week January 4 to January 8, 2010




                         *********



=======================================
B O S N I A   &   H E R Z E G O V I N A
=======================================


* BOSNIA: Low Economic Strength Cues Moody's B2 Bond Rating
-----------------------------------------------------------
Bosnia and Herzegovina's B2 government bond ratings are based on
the country's low economic and institutional strength, medium
level of government financial strength and high susceptibility to
event risk, says Moody's Investors Service in its new sovereign
credit report on BiH.

Moody's assesses BiH's economic strength as low due to the
country's low wealth and the small and undiversified economy.
Although the economy has managed to muddle through the global
crisis with a relatively modest contraction, a robust recovery is
not expected in the near future.  "Moody's expects economic growth
to slow from the buoyant rates experienced in 2002-08 as export
demand from the major European economies is expected to be rather
modest, while slower credit growth will hinder consumption and new
investment," said Kenneth Orchard, a Vice President-Senior Credit
Officer in Moody's Sovereign Risk Group.

BiH's institutions are weak by both global and regional standards.
Institutional effectiveness suffers from a complex governmental
structure and a lack of cooperation amongst the various levels of
government, across entities and between political parties.
"Furthermore, Moody's expects the campaign for the state- and
entity-level elections (scheduled for October 2010) will hamper
any improvements in governance in the short term," said
Mr. Orchard.  "Although failure to improve the governance
structure and cooperation should not prevent gradual progress
towards stronger institutions, the pace of progress is likely to
be slower and more uneven than in other countries in the region."

Moody's assesses the quantum of government debt as moderate; it is
mostly owed to official creditors at low interest rates.  Fiscal
adjustment capacity is limited by rigidities in expenditures and
the large informal sector.  A steep decline in government revenues
and limited budgetary adjustment capacity forced the government to
engage assistance from the IMF in Q2 2009, whereby the government
received EUR1.5 billion of financing over three years in return to
agreeing to a tough fiscal consolidation program.  However, the
2010 elections are expected to complicate the fiscal consolidation
process because politically-sensitive social transfers to
important political constituencies are a key focus for spending
reductions.

Moody's expects political tensions to remain problematic in the
short term and they will likely worsen during the 2010 election
campaign.  Although not Moody's central scenario, a severe
deterioration in ethnic relations could eventually cause a rift
that would temporarily affect the revenues used by the national-
level government to make its debt service payments.

The stable outlook on the ratings balances the weak economic
prospects and ongoing political tensions against modest debt
servicing pressure and financial support from the IMF and EU.
Furthermore, Moody's believes the authorities will be able to
manage the fiscal impact of the global economic crisis so as to
avoid a large and sustained increase in government debt.

The issuance of this credit report by Moody's Investors Service is
an annual update to the markets and is not a formal action to
alter the credit rating.


=============
E S T O N I A
=============


KODUMAJAGRUPP: May Face Bankruptcy, Expects No Profit in 2010
-------------------------------------------------------------
Toomas Hobemagi at Baltic Business News reports that Estonia-based
real estate developer Kodumajagrupp could go bankrupt after two of
its subsidiaries in Lithuania went bust following a fall in
property prices.

According to BBN, Kodumajagrupp CEO Urmas Laur said that the
bankruptcy of its two subsidiaries -- Otlit and Livin Baltic --
caused the company a loss of more than EUR3 million.

BBN relates Kodumajagrupp CEO Urmas Laur admitted that
Kodumajagrupp was at risk of bankruptcy also in Estonia, but
emphasized that it would not be the best solution for creditors.

"We restructure loans, negotiate and will know by spring what will
happen," BBN quoted Mr. Laur as saying.

BBN says in Estonia the company has three developments that are
partially sold.  It still owns ten row house units in Tiskre-Hansu
outside Tallinn and ten properties in Leppneeme, BBN discloses.
According to BBN, Mr. Laur said the market value of unsold assets
is higher than outstanding loan balance.

"There is no real market, prices are low," Mr. Laur said,
according to BBN, "At current construction prices and property
prices, it is clear that it will not be possible to develop with
profit this year."


===========
F R A N C E
===========


NEOVIA ELECTRONICS: To File for Insolvency at Meaux Court
---------------------------------------------------------
Steve Rhinds at Bloomberg News reports that Neovia Electronics
said it's decided to declare insolvency as soon as possible.

According to Bloomberg, the company said in an e-mailed statement
Thursday the filing will be made at commercial court in Meaux,
near Paris.

Bloomberg relates Neovia has requested that trading in its shares
be suspended.

Neovia Electronics is a French company that assembles flat-screen
televisions.


=============
G E R M A N Y
=============


GELDILUX-TS-2007 SA: Fitch Cuts Rating on Class C Notes to 'B-'
---------------------------------------------------------------
Fitch Ratings has downgraded five classes of notes of Geldilux-TS-
2007 S.A. due 2014, removed them from Rating Watch Negative and
assigned Negative Outlooks.  Loss Severity Ratings have also been
assigned to class A to D notes.  This transaction is a cash
securitization of short-term loans predominantly to German small
and medium-sized entities.  The loans are originated and serviced
by UniCredit Bank AG (rated 'A+'/Outlook Stable/'F1+'/Support
Rating '1', formerly Bayerische Hypo- und Vereinsbank AG) on
behalf of the seller, UniCredit Luxembourg S.A. (formerly HVB
Banque Luxembourg S.A.).

Geldilux-TS-2007 S.A.:

  -- EUR4,500,000 liquidity notes (ISIN: XS0294511760): downgraded
     to 'A-' from 'A+', removed from RWN, assigned Negative
     Outlook

  -- EUR2,024,400,000 class A notes (ISIN: XS0294513030):
     downgraded to 'A-' from 'A+', removed from RWN, assigned
     Negative Outlook and 'LS-1'

  -- EUR21,000,000 class B notes (ISIN: XS0294513113): downgraded
     to 'BB-' from 'A', removed from RWN, assigned Negative
     Outlook and 'LS-5'

  -- EUR21,000,000 class C notes (ISIN: XS0294513204): downgraded
     to 'B' from 'BBB', removed from RWN, assigned Negative
     Outlook and 'LS-5'

  -- EUR8,400,000 class D notes (ISIN: XS0294513543): downgraded
     to 'B-' from 'BB', removed from RWN, assigned Negative
     Outlook and 'LS-5'

The rating actions are the result of Fitch's revised Rating
Criteria for European Granular Corporate Balance Sheet
Securitizations and the agency's expectation that the portfolio
will experience increasing defaults and delinquencies due to the
stressed economic environment in Germany.  Although the notes were
placed on RWN pending full analysis after the revised criteria
were launched, Fitch did not resolve the Watch immediately upon
the criteria application.  This was because Fitch had been
informed that a restructuring of the transaction would occur
before the January 2010 payment date.  However, UniCredit Bank AG,
also the transaction's arranger, recently informed Fitch that no
restructuring would take place.

The downgrades of the notes are mainly based on their limited
ability to withstand defaults of the largest borrowers as
addressed in the revised rating criteria.  With the single
borrower concentration capped at 0.6% by the replenishment
criteria in the transaction documents, currently in Fitch's view
the class A notes could withstand the default of the nine largest
borrowers, while class B, C and D notes could absorb the default
of the six, four and three largest borrowers, respectively.  In
Fitch's analysis such credit enhancement is not sufficient to
justify the previous ratings of the notes.  The liquidity notes
have been downgraded in line with class A notes, as they can
withstand almost the same level of stress as class A notes.

The performance of the transaction has been good.  Since issue in
May 2007, there has been only one defaulted loan amounting to
0.0062% of the portfolio notional.  As of the investor report in
January 2010 there were no delinquent assets in the pool and the
proportion of borrowers in the lowest UniCredit Bank AG's internal
rating categories was zero.  However, Fitch expects defaults to
rise during the current economic downturn in Germany and has
therefore assumed higher defaults for the securitized pool than
indicated by the historical loss provisions made by UniCredit Bank
AG.  This is reflected in the Negative Outlooks.

The current ratings of the notes already incorporate Fitch's view
on the transaction's performance with regards to the refinancing
risk of the underlying borrowers if UniCredit Bank AG defaulted.
In this scenario, due to the short weighted average life of the
portfolio -- currently at 55 days -- the number of obligors with
refinancing problems would accumulate fast in the agency's view.
In Fitch's modeling, already an assumption of 10% of borrowers
being unable to secure refinancing within a few months would lead
to interest shortfall on all classes of notes.  Therefore in
September 2009 the agency imposed a rating cap on all rated
classes of notes of Geldilux-TS-2007 S.A. equal to UniCredit Bank
AG's Long-term Issuer Default rating.


VIVACON AG: Two Subsidiaries File for Insolvency in Cologne
-----------------------------------------------------------
The two subsidiaries of Vivacon AG (ISIN 000604 8911), Vivacon
Denkmal Objekt I. GmbH & Co.KG and VD Berlin-Mitte Luisenstadt
GmbH & Co.KG, will file for insolvency at the local court in
Cologne.

The two subsidiaries are single purpose companies focused only on
the development of a single development project "Luise" in Berlin,
which originally has been part of the purchase agreement regarding
the development business.  After the investor has exercised his
contractual right of withdrawal from the purchase of this project
the solvency of the two project companies could not have been
sustained.  The existing liquidity gap could not be bridged in
short time.

The insolvency was filed in the context of the current
restructuring of Vivacon group.

Vivacon AG -- http://www.vivacon.de/-- is a Germany-based holding
company of the Vivacon Group, engaged in the real estate sector.
The Vivacon Group focuses on the acquisition and management of
rentable properties, dealing in housing portfolios, asset
management and other real estate-related services, leasing
properties held in the proprietary real estate portfolio, property
development for restored listed housing and designer properties.
The Company's activities are divided into three business sectors:
Investment Management, Asset Management, and Development.  The
Company has representative offices in Hamburg, Berlin, Hannover,
Frankfurt and Munich, Germany.  The Vivacon Group operates through
a number of subsidiaries in Germany and Luxembourg, as well as
through Vivacon CEE in the Czech Republic.  As of July 1, 2008,
the Company sold a residential real estate portfolio with a total
area of more than 130,000 square meters in Western Germany in the
form of a sale of shares in special purpose vehicles.


=============
I R E L A N D
=============


CLOVERIE PLC: S&P Withdraws 'CCC-' Rating on EUR32.5 Mil. Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its 'CCC-' rating on
Cloverie PLC's EUR32.5 million floating-rate portfolio credit-
linked notes series 2005-53 (Booth).

The withdrawal follows notification to us that the issuer
repurchased the notes in August 2009.


=========
I T A L Y
=========


MARIELLA BURANI: EUR770MM Debt Figure in Il Sole Report Inaccurate
------------------------------------------------------------------
Mariella Burani Fashion Group SpA said a report in daily Il Sole
24 Ore about its debt situation is inaccurate, Dan Liefgreen
writes for Bloomberg News.

Bloomberg relates Il Sole reported that the fashion group's debt
is EUR770 million.

The company did not provide the correct amount.

                            Rescue Plan

As reported by the Troubled Company Reporter-Europe on Dec. 8,
2009, Bloomberg News, citing Messaggero, disclosed that Burani's
creditors weren't positive about a rescue plan, which includes
writing off EUR120 million (US$181 million) of debt.  According to
Bloomberg, Messagero said the proposal also includes conversion of
EUR60 million of debt into equity, rescheduling EUR308 million of
debt and a new loan of EUR35 million.

Mariella Burani Fashion Group SpA -- http://www.mariellaburani.it/
-- is an Italy-based company, operating in the fashion market.  It
designs, produces and distributes a range of apparel, knitwear,
leather accessories, jewelry and footwear.  The Company divides
its operation into four divisions: Clothing Division, Leather
Division, Digital Fashion and Fashion Jewellery.  The Company's
brand portfolio comprises the Company's own brands, such as
Mariella Burani, Rene Lezard, Amuleti J, Blossom Burani, Ter et
Bantine, Braccialini, FrancescoBiasia, Baldinini, Coccinelle,
Sebastian, Facco Gioielli, Valente, Rosato and Calgaro, among
others, and the licensed brands: Vivienne Westwood (Anglomania),
Emmanuel Ungaro (Fuchsia), Alviero Martini, Thierry Mugler
(Mugler), Patrizia Pepe (bimbo), Missoni, Warner Bros, Miss Sixty,
Sweet Years, Gherardini e John Galliano, among others.  Among the
subsidiaries there are: Mariella Burani Retail Srl, Antichi
Pelletteri SpA, Coccinelle Store France SA and Mandarina Duck
Gmbh.


MARIELLA BURANI: Wants to Hire Franco Tato as New Debt Adviser
--------------------------------------------------------------
Armorel Kenna at Bloomberg News, citing daily MF, reports that
Mariella Burani Fashion Group SpA wants to hire Franco Tato to
advise on a debt restructuring after Mediobanca SpA withdrew from
the role.

According to Bloomberg, Burani on Jan. 3 said Mediobanca withdrew
as an adviser, citing Burani's failure to set up a EUR50-million
(US$72 million) escrow account.  It said the same day that Burani
is seeking to guarantee "ongoing operations," Bloomberg notes.

As reported by the Troubled Company Reporter-Europe on Jan. 4,
2010, Bloomberg News said Burani was in talks with Gulf Finance &
Investment to set the escrow account.  Bloomberg disclosed
Burani's biggest banks had demanded that the Burani family prove
that it had EUR50 million available for a planned capital increase
as part of an agreement to reorganize the company's debt.

                           Rescue Plan

As reported by the Troubled Company Reporter-Europe on Dec. 8,
2009, Bloomberg News, citing Messaggero, said that Burani's
creditors weren't positive about a rescue plan, which includes
writing off EUR120 million (US$181 million) of debt.  According to
Bloomberg, Messagero said the proposal also includes conversion of
EUR60 million of debt into equity, rescheduling EUR308 million of
debt and a new loan of EUR35 million.

Mariella Burani Fashion Group SpA -- http://www.mariellaburani.it/
-- is an Italy-based company, operating in the fashion market.  It
designs, produces and distributes a range of apparel, knitwear,
leather accessories, jewelry and footwear.  The Company divides
its operation into four divisions: Clothing Division, Leather
Division, Digital Fashion and Fashion Jewellery.  The Company's
brand portfolio comprises the Company's own brands, such as
Mariella Burani, Rene Lezard, Amuleti J, Blossom Burani, Ter et
Bantine, Braccialini, FrancescoBiasia, Baldinini, Coccinelle,
Sebastian, Facco Gioielli, Valente, Rosato and Calgaro, among
others, and the licensed brands: Vivienne Westwood (Anglomania),
Emmanuel Ungaro (Fuchsia), Alviero Martini, Thierry Mugler
(Mugler), Patrizia Pepe (bimbo), Missoni, Warner Bros, Miss Sixty,
Sweet Years, Gherardini e John Galliano, among others.  Among the
subsidiaries there are: Mariella Burani Retail Srl, Antichi
Pelletteri SpA, Coccinelle Store France SA and Mandarina Duck
Gmbh.


===================
K A Z A K H S T A N
===================


ALLIANCE KV: Creditors Must File Claims by January 20
-----------------------------------------------------
Creditors of LLP Alliance KV have until January 20, 2010, to
submit proofs of claim to:

         The Specialized Inter-Regional
         Economic Court of Kostanai
         Baitursynov Str. 70
         Kostanai
         Kazakhstan

The court commenced bankruptcy proceedings against the company on
November 16, 2009.


BEKNUR LLP: Creditors Must File Claims by January 20
----------------------------------------------------
Creditors of LLP Beknur have until January 20, 2010, to submit
proofs of claim to:

         Ilyaev Str. 24
         Shymkent
         South Kazakhstan
         Kazakhstan

The Specialized Inter-Regional Economic Court of South Kazakhstan
commenced bankruptcy proceedings against the company on
October 28, 2009, after finding it insolvent.

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of South Kazakhstan
         Tynybaev Str. 42
         Shymkent
         South Kazakhstan
         Kazakhstan


BIR OIL: Creditors Must File Claims by January 20
-------------------------------------------------
LLP Bir Oil Company is currently undergoing liquidation.
Creditors have until January 20, 2010, to submit proofs of claim
to:

         Turkebaev Str. 143
         Almaty
         Kazakhstan


BROKO REGION: Creditors Must File Claims by January 20
------------------------------------------------------
Branch of CJSC Broko Region is currently undergoing liquidation.
Creditors have until January 20, 2010, to submit proofs of claim
to:

         Beibitshilik Str. 25
         Astana
         Kazakhstan


DERBIS LLP: Creditors Must File Claims by January 20
----------------------------------------------------
Creditors of LLP Independent Audit Centre Derbis have until
January 20, 2010, to submit proofs of claim to:

         Ilyaev Str. 24
         Shymkent
         South Kazakhstan
         Kazakhstan

The Specialized Inter-Regional Economic Court of South Kazakhstan
commenced bankruptcy proceedings against the company on
September 26, 2009, after finding it insolvent.

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of South Kazakhstan
         Tynybaev Str. 42
         Shymkent
         South Kazakhstan
         Kazakhstan


EKIBASTUZ SHEBEN: Creditors Must File Claims by January 20
----------------------------------------------------------
Creditors of LLP Ekibastuz Sheben #1 have until January 20, 2010,
to submit proofs of claim to:

         Sormov Str. 5-21
         Pavlodar
         Kazakhstan

The Specialized Inter-Regional Economic Court of Pavlodar
commenced bankruptcy proceedings against the company on October 2,
2009, after finding it insolvent.

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Pavlodar
         Djambulskaya Str. 6
         Pavlodar
         Kazakhstan


EURO ASIA: Creditors Must File Claims by January 20
---------------------------------------------------
LLP Euro Asia Business is currently undergoing liquidation.
Creditors have until January 20, 2010, to submit proofs of claim
to:

         Abai Ave. 8-24
         Aktobe
         Kazakhstan


KRUG LLP: Creditors Must File Claims by January 20
--------------------------------------------------
LLP Euro Asian Association Krug is currently undergoing
liquidation.  Creditors have until January 20, 2010, to submit
proofs of claim to:

         Spartak Str. 28
         Almaty
         Kazakhstan


===================
K Y R G Y Z S T A N
===================


BRV ASIA: Creditors Must File Claims by February 4
--------------------------------------------------
LLC Brv Asia is currently undergoing liquidation.  Creditors have
until February 4, 2010, to submit proofs of claim:

Inquires can be addressed to (+996 312) 46-40-41.


SCKAN LINE: Creditors Must File Claims by February 4
----------------------------------------------------
LLC Sckan Line is currently undergoing liquidation.  Creditors
have until February 4, 2010, to submit proofs of claim:

Inquires can be addressed to (+996 312) 69-87-69.


=====================
N E T H E R L A N D S
=====================


PROSPERO CLO: Moody's Junks Rating on Class D Notes From 'Ba2'
--------------------------------------------------------------
Moody's Investors Service announced these rating actions on notes
issued by Prospero CLO II B.V.  Given that this is a relatively
well-performing CLO, the Class A-1-A, A-1-B, A-1-C and A-1-VF
notes remain Aaa.

  -- US$30,000,000 Class A-2 Senior Secured Floating Rate Notes
     Due 2022, Downgraded to A2; previously on March 4, 2009 Aa2
     Placed Under Review for Possible Downgrade

  -- US$25,000,000 Class B Senior Secured Deferrable Interest
     Floating Rate Notes Due 2022, Downgraded to Ba1; previously
     on March 4, 2009 A3 Placed Under Review for Possible
     Downgrade

  -- US$15,000,000 Class C Senior Secured Deferrable Interest
     Floating Rate Notes Due 2022, Downgraded to B1; previously on
     March 4, 2009 Baa2 Placed Under Review for Possible Downgrade

  -- US$13,500,000 Class D Senior Secured Deferrable Interest
     Floating Rate Notes Due 2022, Downgraded to Caa2; previously
     on March 4, 2009 Ba2 Placed Under Review for Possible
     Downgrade

This transaction is a managed cash collateralized loan obligation
with exposure to European and US senior secured loans, as well as
4.72% mezzanine loan and second lien exposures.

The rating actions reflect Moody's revised assumptions with
respect to default probability and the calculation of the
diversity score as described in the press release dated
February 4, 2009, titled "Moody's updates key assumptions for
rating CLOs."  These revised assumptions have been applied to all
corporate credits in the underlying portfolio, the revised
assumptions for the treatment of ratings on "Review for Possible
Downgrade", "Review for Possible Upgrade", or with a "Negative
Outlook" being applied to those corporate credits that are
publicly rated.

Moody's also notes that a material proportion of the collateral
pool consists of debt obligations whose credit quality has been
assessed through Moody's credit estimates.  As credit estimates do
not carry credit indicators such as ratings reviews and outlooks,
a stress of a quarter notch-equivalent assumed downgrade was
applied to each of these estimates.

According to Moody's, the rating actions taken on the notes are
also a result of moderate credit deterioration of the underlying
portfolio.  This is observed through a decline in the average
credit rating as measured through the portfolio weighted average
rating factor 'WARF' (currently 2781), an increase in the amount
of defaulted securities (currently 4.5% of the portfolio), an
increase in the proportion of securities from issuers rated
Caa1/CCC+ and below (currently 15.6% of the portfolio), and
failure of par value tests with respect to the Class B, Class C
and Class D notes.  These measures were taken from the recent
trustee report dated 10 November 2009.  Moody's also performed a
number of sensitivity analyses, including consideration of a
further decline in portfolio WARF quality.  Due to the impact of
all aforementioned stresses, key model inputs used by Moody's in
its analysis, such as par, weighted average rating factor,
diversity score, and weighted average recovery rate, may be
different from the trustee's reported numbers.

In addition to the quantitative factors that are explicitly
modeled, qualitative factors are part of the rating committee
considerations.  These qualitative factors include the structural
protections in each transaction, the recent deal performance in
the current market environment, the legal environment, specific
documentation features, the collateral manager's track record, and
the potential for selection bias in the portfolio.  All
information available to rating committees, including
macroeconomic forecasts, input from other Moody's analytical
groups, market factors, and judgments regarding the nature and
severity of credit stress on the transactions, may influence the
final rating decision.


===========
P O L A N D
===========


GETIN BANK: Fitch Affirms Individual Rating at 'D'
--------------------------------------------------
Fitch Ratings has affirmed Poland-based Getin Bank's ratings at
Long-term Issuer Default 'BB' with Negative Outlook, Short-term
IDR 'B', Individual 'D', Support '5' and National Long-term
'BBB(pol) with Negative Outlook.  The Support Rating Floor has
been affirmed at 'No Floor' and GB's eurobond debt program has
been affirmed at Long-term 'BB'.  At the same time, all ratings
for GB and for the eurobond debt issue program have been withdrawn
as the bank has ceased to exist as a separate legal entity
following its merger with Noble Bank.

Fitch has simultaneously assigned the combined entity, Getin Noble
Bank SA, a Long-term IDR of 'BB', Short-term IDR of 'B', an
Individual rating of 'D', a Support rating of '5' and a National
Long-term rating of 'BBB(pol)'.  The Long-term IDR, National Long-
term rating and Individual rating of GNB have been placed on
Rating Watch Evolving.

The RWE reflects the fact that only preliminary year-end financial
data is available for both GB and NB.  Fitch expects to resolve
the Rating Watch in the first quarter of 2010 as soon as the
audited financial statements for both banks are available and once
the agency has had the opportunity to discuss the strategic
direction of the merged entity with management.

GNB's ratings reflect recent rapid growth of GB's and NB's loan
books, deteriorating asset quality, moderate liquidity and risks
related to large, albeit falling, exposure to foreign currency-
denominated mortgages.  This is balanced by stable funding source
based on household savings, adequate capitalization and
diversified income streams.

Based on end-Q309 data GNB was the ninth-largest bank in Poland by
both total assets and equity with around 5% market share in
customer deposits.  The bank offers mortgages, auto loans and
consumer finance services.  At end-November 2009 the loan
portfolio was 64% mortgages, 14% auto loans, 12% consumer loans
and 10% business loans.  Getin Holding, which is ultimately
controlled by Leszek Czarnecki, holds a 97.3% stake in GNB.  The
bank is listed on the Warsaw Stock Exchange.


===============
P O R T U G A L
===============


LUSITANO MORTGAGES: Fitch Cuts Rating on Class E Notes to 'B'
-------------------------------------------------------------
Fitch Ratings has downgraded six and affirmed 21 tranches of six
Lusitano Mortgages transactions.  Nine tranches are on Negative
Outlook.  The affirmation of ratings on the two more seasoned
deals, Lusitano 1 and Lusitano 2, reflects the ongoing good
performance of the two transactions.  Meanwhile, the downgrades of
the junior tranches of Lusitano 3, 4, 5 and 6 reflect Fitch's
concern over the performance of the underlying loans in the four
portfolios.  A full rating breakdown is provided at the end of
this comment.

According to the latest investor reports Lusitano 4 and 6 continue
to see reserve fund draws, bringing both funds to just below 71%
of their target amounts.  In both cases the reserve fund draws
were caused by high volumes of provisions being cleared through
the principal deficiency ledgers, which in this period amounted to
EUR3.8 million and EUR3.2 million for Lusitano 4 and 6
respectively.  Based on the loan-by-loan level data received for
the two deals, particularly the volume of arrears in the higher
arrears buckets, Fitch expects that further defaults will occur in
the upcoming months at similar volumes as those seen in recent
months.  Although the provisioning mechanisms are a positive as
they ensure that the transaction utilizes available excess spread,
the use of reserve funds to write-off the loans results in a
reduction in credit enhancement to the notes.

With the expected defaults (in Lusitano 6), as well as the
expected provisioning of loans that have already been classified
as defaulted (Lusitano 4), further reserve fund draws on Lusitano
4 and 6 are expected to occur in the upcoming payment dates.
Therefore, Fitch has downgraded the two junior notes of these two
deals.

The October 2009 investor report for Lusitano 5 showed net excess
spread at 0.03% of the current portfolio for the second
consecutive quarter.  The tightening in excess spread (compared to
levels seen in 2007 and 2008) was caused by a high volume
provisions being cleared through the PDL this period
(EUR2.4 million).  The transaction has a delayed provisioning
mechanism in place whereby loans are provisioned for 12 months
after being written-off (write-off occurs once a loan has reached
12 months in arrears).  As of October 2009, the total volume of
written-off loans stood at EUR41.7 million (3% of the initial
pool), of which nearly 10% have prepaid and 8% are assumed to have
reverted to performing, while 18.7% have made some form of payment
(these figures are based on information Fitch received from the
servicer).  The remaining EUR26.9 million that have not seen any
payments in the past 12 months are expected to be either fully or
partially provisioned for in the upcoming payment dates.  In
combination with the tightening in excess spread, Fitch expects
reserve fund draws to occur on Lusitano 5, which is why the agency
has downgraded the class D notes.

Lusitano 3 has also seen a tightening in excess spread caused by
significant amount of provisions being cleared through the PDL.
In the past this transaction has seen reserve fund draws; however
as of October 2009, the transaction's reserve fund was fully
funded, and for the second consecutive quarter, the note payment
was pro-rata.  Despite the current reserve fund balance and the
transaction's ability to redeem notes pro-rata, Fitch has
downgraded the junior tranche of Lusitano 3.  The one-notch
downgrade of the class D notes of Lusitano 3 reflects Fitch's
concern over the high volume of loans that are more than 12 months
in arrears and possible reserve fund draws that are likely to
incur on this transaction.

In its forward-looking analysis, Fitch has taken into account the
positive impact of the continued reversion of loans to lower
interest rates on the performance of the underlying pool.  The
further reduction in interest rates is also likely to cause a
further increase in some arrears buckets (due to the calculation
method), but may eventually lead to a further decline in arrears
volumes because of improved affordability.  However, the agency
believes that the loans currently classified as defaulted will
continue to pose a risk to these transactions, which is why the
agency has taken the respective rating actions.

The rating actions on the Lusitano series are:

Lusitano Mortgages No. 1 Plc:

  -- Class A (ISIN XS0159068807): affirmed at 'AAA'; Outlook
     Stable; Loss Severity Rating 'LS-1' assigned

  -- Class B (ISIN XS0159070456): affirmed at 'AAA'; Outlook
     Stable; Loss Severity Rating 'LS-2' assigned

  -- Class C (ISIN XS0159070886): affirmed at 'AA-'; Outlook
     Positive; Loss Severity Rating 'LS-2' assigned

  -- Class D (ISIN XS0159071009): affirmed at 'BBB+'; Outlook
     Stable; Loss Severity Rating 'LS-2' assigned

  -- Class E (ISIN XS0159285062): affirmed at 'BB+'; Outlook
     Stable; Loss Severity Rating 'LS-3' assigned

Lusitano Mortgages No. 2 Plc:

  -- Class A (ISIN XS0178545421): affirmed at 'AAA'; Outlook
     Stable; Loss Severity Rating 'LS-1' assigned

  -- Class B (ISIN XS0178546742): affirmed at 'AAA'; Outlook
     Stable; Loss Severity Rating 'LS-1' assigned

  -- Class C (ISIN XS0178547047): affirmed at 'A+'; Outlook
     Positive; Loss Severity Rating 'LS-1' assigned

  -- Class D (ISIN XS0178547393): affirmed at 'BBB+'; Outlook
     Stable; Loss Severity Rating 'LS-2' assigned

  -- Class E (ISIN XS0178547633): affirmed at 'BBB-'; Outlook
     Stable; Loss Severity Rating 'LS-3' assigned

Lusitano Mortgages No. 3 Plc:

  -- Class A (ISIN XS0206050147): affirmed at 'AAA'; Outlook
     Stable; Loss Severity Rating 'LS-1' assigned

  -- Class B (ISIN XS0206051384): affirmed at 'AA'; Outlook
     Stable; Loss Severity Rating 'LS-2' assigned

  -- Class C (ISIN XS0206051541): affirmed at 'A'; Outlook revised
     to Negative from Stable; Loss Severity Rating 'LS-3' assigned

  -- Class D (ISIN XS0206052432): downgraded to 'BBB-' from 'BBB';
     Outlook Negative; Loss Severity Rating 'LS-3' assigned

Lusitano Mortgages No. 4 Plc:

  -- Class A (ISIN XS0230694233): affirmed at 'AAA'; Outlook
     Stable; Loss Severity Rating 'LS-1' assigned

  -- Class B (ISIN XS0230694589): affirmed at 'AA'; Outlook
     Stable; Loss Severity Rating 'LS-3' assigned

  -- Class C (ISIN XS0230695552): downgraded to 'A' from 'A+';
     Outlook Negative; Loss Severity Rating 'LS-3' assigned

  -- Class D (ISIN XS0230696360): downgraded to 'BB+' from 'BBB+';
     Outlook Negative; Loss Severity Rating 'LS-3' assigned

Lusitano Mortgages No. 5 Plc:

  -- Class A (ISIN XS0268642161): affirmed at 'AAA'; Outlook
     Stable; Loss Severity Rating 'LS-1' assigned

  -- Class B (ISIN XS0268642831): affirmed at 'AA'; Outlook
     Stable; Loss Severity Rating 'LS-3' assigned

  -- Class C (ISIN XS0268643649): affirmed at 'A'; Outlook
     Negative; Loss Severity Rating 'LS-3' assigned

  -- Class D (ISIN XS0268644886): downgraded to 'BB+' from 'BBB+';
     Outlook Negative; Loss Severity Rating 'LS-3' assigned

Lusitano Mortgages No. 6 Limited:

  -- Class A (ISIN XS0312981649): affirmed at 'AAA'; Outlook
     Stable; Loss Severity Rating 'LS-1' assigned

  -- Class B (ISIN XS0312982290): affirmed at 'AA'; Outlook
     Stable; Loss Severity Rating 'LS-3' assigned

  -- Class C (ISIN XS0312982530): affirmed at 'A'; Outlook revised
     to Negative from Stable; Loss Severity Rating 'LS-3' assigned

  -- Class D (ISIN XS0312982704): downgraded to 'BBB-' from 'BBB';
     Outlook Negative; Loss Severity Rating 'LS-4' assigned

  -- Class E (ISIN XS0312983009): downgraded to 'B' from 'BB';
     Outlook Negative; Loss Severity Rating 'LS-3' assigned

Fitch used its EMEA RMBS surveillance criteria, employing its
credit cover multiple methodology in reviewing the deals, to
assess the level of credit support available to each class of
notes.


===========
R U S S I A
===========


KRASNY OKTYABR: Volgogradskaya Bankruptcy Hearing Set March 23
--------------------------------------------------------------
The Arbitration Court of Volgogradskaya will convene at 10:00 a.m.
on March 23, 2010, to hear bankruptcy supervision procedure on
CJSC Krasny Oktyabr Metallurgical Plant (YTIN 3442050780, PSRN
1023402633132).  The case is docketed under Case No. ?12?
8206/2009.

The Temporary Insolvency Manager is:

         A.Lyubimenko
         Post User Box 3465
         410086 Saratov
         Russia

The Debtor can be reached at:

         CJSC Krasny Oktyabr
         Lenina Prospect 110
         400007 Volgograd
         Russia


RUSSNEFT NK: Deripaska Sells Biz Back to Founder, Vedomosti Says
----------------------------------------------------------------
Rachel Cooper at The Daily Telegraph, citing newspaper Vedomosti,
reports that Oleg Deripaska has sold oil company Russneft back to
its founder.

According to the report, Mr. Deripaska sold the company for US$600
million (GBP375 million) and repayment of outstanding debt of
around US$6 billion.

The Daily Telegraph reports that Vedomosti, citing an unnamed
source close to the deal, said the sale took place on Jan. 4.

The report recalls Mr. Deripaska bought Russneft from Mr.
Gutseriyev for US$3 billion in 2007, taking a US$2.7 billion loan
from Russia's biggest lender, Sberbank.

The report notes Vedomosti said the loan, secured by shares in
Mr. Deripaska's car manufacturer, GAZ, will now be guaranteed by
Mr. Gutseriyev's assets.

RussNeft' NK OAO -- http://www.russneft.ru/-- is a Russia-based
vertically integrated oil company.  Its main area of activity is
crude oil extraction.  The Company is comprised of 30 productive
assets, three refineries and a petrol stations network located in
17 regions of Russia and the Commonwealth of Independent States.
RussNeft' NK OAO covers Western Siberia, Tomsk, Novosibirsk,
Ulyanovsk, Penza, Volgograd, Bryansk, Smolensk, Vologda, Kirovsk,
Saratov, Orenburg Region, Krasnodar Region, Udmurtiya, Komi and
Belarus.  The Company is developing more than 170 oil fields.  The
total extractable reserves of RussNeft'NK OAO exceed 630 million
tons, and the annual extraction reaches 17 million tons of crude
oil.  The Company has launched its own oil loading terminal in
Bryansk Region.  It is headquartered in Moscow, Russian
Federation.


TEKH-STROY-TRANS: Udmurtia Bankruptcy Hearing Set March 11
----------------------------------------------------------
The Arbitration Court of Udmurtia will convene at 10:00 a.m. on
March 11, 2010, to hear bankruptcy supervision procedure on LLC
Tekh-Stroy-Trans (TIN 1835065024, PSRN 1051802218731)
(Construction).  The case is docketed under Case No. ?71?7917/2009
G21.

The Temporary Insolvency Manager is:

         M. Akhmetzyanov
         Mayakovskogo Str. 27
         426028 Izhevsk
         Udmurtia
         Russia

The Debtor can be reached at:

         LLC Tekh-Stroy-Trans
         Lenina Str. 30
         Izhevsk
         Udmurtia
         Russia


===========================
U N I T E D   K I N G D O M
===========================


BRADFORD & BINGLEY: Branches to Be Rebranded Under Santander Name
-----------------------------------------------------------------
Sharlene Goff at The Financial Times reports that hundreds of
branches of Abbey and Bradford & Bingley will today be rebranded
under the Santander name as the Spanish bank embarks on a mass
transformation of its UK businesses.

According to the FT, Santander today will unveil about 500 new
Santander branches in London and the south-east of England, with
Lewis Hamilton, the Formula One racing driver and the bank's
publicity frontman, opening the first in central London.

The remaining 500 Abbey and B&B branches in the rest of the UK
will be converted over the next two weeks and Santander's other UK
brand, Alliance & Leicester, will change later in the year, the FT
says.

The FT recalls the savings and high-street business of Bradford &
Bingley, formed in 1964 by a merger between the Bradford Equitable
Building Society and the Bingley Permanent Building Society, both
founded in 1851, was acquired by Santander in 2008 as its mortgage
business was nationalized.

As reported by the Troubled Company Reporter-Europe on Jan. 5,
2010, the FT said the Financial Services Authority called in BDO
Stoy Hayward to conduct supervisory reviews into the actions of
Bradford & Bingley.  According to the Sunday Times, Bradford &
Bingley has faced a number of questions over the performance of
its buy-to-let and self-certified mortgage books.

On Oct. 27, 2008, the Troubled Company Reporter-Europe, citing The
Times, reported Bradford & Bingley was considering dividing its
GBP50 billion balance sheet into "good" and "bad" assets as part
of efforts to repay its loan as quickly as possible.  The Times
disclosed B&B was closed to new business last September and its
mortgage book nationalized with an GBP18.4 billion loan from the
Financial Services Compensation Scheme.  Santander of Spain bought
its GBP20 billion deposits book, the Times recalled.  The Times
said B&B had been told it must repay the sum as quickly as
possible.  It must also wean itself off the working capital that
it receives from the Government, which currently stands at
GBP8.5 billion, according to the Times.  The bank was also
considering selling books of business to speed up the repayment of
the loan, the Times noted.

                     About Bradford & Bingley

Headquartered in Bingley, United Kingdom, Bradford & Bingley plc
-- http://www.bbg.co.uk/-- offers residential mortgages, and
focus on a range of areas providing mortgages for individuals.  It
focuses on its savings business and provides a range of
savings products through 197 branches and network of 140
third-party branch-type agents, by phone, post and Online.


FOXTONS: Lenders Take Majority Stake Under Restructuring Deal
-------------------------------------------------------------
Martin Arnold, Daniel Thomas and Anousha Sakoui at The Financial
Times report that Foxtons has been taken over by its lenders.

According to FT, BC Partners, the private equity group that
acquired Foxtons from Jon Hunt, its founder, for as much as
GBP360 million (US$574 million) in May 2007, has agreed a
refinancing deal that will halve the agent's debt in return for
giving its lenders a majority stake.

Under the restructuring, agreed over the Christmas period, a loan
of an undisclosed amount from Mr. Hunt to Foxtons will be written
off, ending his direct association with the agent he founded in
1981, the FT discloses.

The restructuring deal cuts Foxtons' debt from about GBP300
million to GBP120 million, the FT says.

The managers of Foxtons, led by Michael Brown, chief executive,
will receive a minority stake of as much as 20%, depending on
whether performance targets are hit, the FT notes.

The FT recalls after Foxtons was sold in 2007, its business ran
quickly into trouble as the property market ground to a halt in
the worsening recession.

Foxtons is a London and Surrey estate agent with 24 offices,
dealing with both lettings and sales.  It was founded by Jon Hunt
in 1981.


JANE NORMAN: Lenders to Control 80% Stake Under Debt Restructuring
------------------------------------------------------------------
Anousha Sakoui at The Financial Times reports that Jane Norman is
to be taken over by its lenders in a deal to restructure its
GBP135.8 million (US$216.3 million) debts.

According to the FT, a person close to the company said the deal
was designed to give Jane Norman a sound financial footing to
focus on its business.

The FT relates a syndicate of 11 banks, which include Royal Bank
of Scotland as lead bank, agreed a deal with the company that will
see them take an 80% stake, leaving management with the balance.

The lenders have agreed to give Jane Norman greater breathing
space under their covenants, resetting them, and waiving debt
repayments until March 2011, the FT says.

In addition, the banks will receive on average an additional 2.25
percentage points of interest paid on some of their loans, the FT
notes.

Jane Norman -- http://www.janenorman.co.uk/-- is an English
apparel company that sells women's clothing.


JJ & HB: In Administration; About 200 Jobs at Risk
--------------------------------------------------
BBC News reports that Innerleithen-based cashmere manufacturer
JJ & HB 1788 Cashmere Mills Ltd. has gone into administration,
putting nearly 200 jobs at risk.

BBC relates joint administrator James Stephen of BDO LLP said
"difficult trading conditions" had affected the retail sector.
According to BBC, Mr. Stephen said the company would continue to
trade in the hope of finding a buyer.  He said there had already
been an "expression of interest" in buying the business, BBC
notes.

BBC recalls Italian textiles entrepreneur Massimiliano Zegna
Baruffa took control of the company in October 2008 with a 55%
stake while US clothes firm Brooks Brothers bought a 25% share.


KILMARTIN HOLDINGS: In Receivership; Lloyds Faces GBP200 Mln Loss
-----------------------------------------------------------------
Rebecca O'Connor at The Times reports that Lloyds Banking Group is
facing a loss of at least GBP200 million after Kilmartin Holdings
Ltd., an HBOS-backed property company, went into receivership.

The Times relates directors of Kilmartin Holdings, a Scottish
group founded by property entrepreneur Iain Wotherspoon, handed
over the company to PricewaterhouseCoopers Thursday, along with
Kilmartin Property Group.  Annfield Assets Ltd., another
subsidiary, has gone into administration, the Times notes.

Property Week's Jennifer Rigby reports that Bruce Cartwright and
Graham Frost of PwC have been appointed as joint receivers or
administrators to the companies.

According to Property Week, Kilmartin Holdings and Annfield Assets
both own shares in a number of property owning subsidiary
companies.  Kilmartin Property Group directly owns seven
properties and Annfield Assets directly owns 32 properties,
Property Week discloses.

The Times recalls HBOS pumped about GBP500 million of loans into
Kilmartin Holdings during the property boom, much of it under
Peter Cummings's now-notorious reign as business lending chief.
The portfolio of sites is worth about GBP300 million, leaving the
bank facing a GBP200 million hit on the loans if the assets are
sold, the Times states.

HBOS, the Times says, also has an equity stake in the company,
which was worth 50% in 2008.

Lloyds is understood to have already written off the GBP200
million after cracks began to emerge at the company in 2008, when
Kilmartin Holdings revealed a net deficit of GBP16.4 million at
April 30, the Times notes.

Its 2008 results showed a pre-tax loss of GBP46.7 million and
indicated liabilities of GBP288.7 million, due to be paid within a
year, as well as an overdraft that would come up for renewal in
mid-2009, the Times discloses.

According to the Times, PwC said that the company had a number of
subsidiary and fellow group companies that remained solvent and
were not subject to an insolvency process.

Founded in 1996 Kilmartin -- http://www.kilmartin.co.uk/--
specializes in property development, regeneration and investment.
It has offices in Edinburgh, London and Sheffield.  The current
portfolio consists of over 60 projects with an end value of GBP300
million.


PRESBYTERIAN MUTUAL: Administrator May Be Allowed to Run Business
-----------------------------------------------------------------
BBC News reports that the High Court has heard that a judge may
allow an administrator to run the troubled Presbyterian Mutual
Society until 2015, if a buyer is not found.

According to BBC, Arthur Boyd, who was appointed as PMS
administrator in November 2008, applied for a five year extension
to his firm's current term which expires in May.

BBC relates the judge said he was "minded" to agree to the
application provided a mechanism was put in place to allow
investors to oversee how the PMS was being run.

The case was adjourned for three weeks, BBC says.

BBC recalls the society ran out of cash when investors withdrew
money because the PMS was not covered by a government savings
guarantee, introduced at the height of the financial crisis.

During Thursday's High Court hearing, Arthur Boyd's legal
representative accepted that the five year extension was an
unusual request but said that it was an unusual set of
circumstances and the additional time would allow his client to
deal with the society's assets in an appropriate matter, BBC
recounts.

Mr. Shaw, as cited by BBC, said they included 13 investment
properties spread throughout in England, Scotland and the Isle of
Mann, the Glengall Exchange building in Belfast and the PMS loan
book.  He told the court that it would not be in PMS members'
interests to sell the assets in the current market, BBC notes.


ROYAL BANK: Gets Three Bids for Sempra Commodities
--------------------------------------------------
Royal Bank of Scotland Group Plc received three bids for its stake
in Sempra Commodities.  The bids value the energy and metals
trader at about GBP2.5 billion (US$4 billion), Andrew MacAskill
and Ambereen Choudhury at Bloomberg News report, citing a person
familiar with the matter.

According to Bloomberg, the person who declined to be identified
because the negotiations are private, said Deutsche Bank AG,
JPMorgan Chase & Co. and Macquarie Group Ltd. submitted bids
before the Jan. 6 deadline.  Bloomberg notes the person said RBS
may select a buyer as soon as this month.

Bloomberg says RBS is being forced to divest the unit to comply
with European Union state-aid rules after receiving GBP45.5
billion in the biggest bailout of a U.K. bank.  The bank bought a
controlling stake in Sempra Commodities in April 2008 as banks
expanded their commodity trading operations, driven by growing
investor interest in gold, oil and other raw materials, Bloomberg
recounts.

                            About RBS

The Royal Bank of Scotland Group plc (NYSE:RBS) --
http://www.rbs.com/-- is a holding company of The Royal Bank of
Scotland plc (Royal Bank) and National Westminster Bank Plc
(NatWest), which are United Kingdom-based clearing banks.  The
company's activities are organized in six business divisions:
Corporate Markets (comprising Global Banking and Markets and
United Kingdom Corporate Banking), Retail Markets (comprising
Retail and Wealth Management), Ulster Bank, Citizens, RBS
Insurance and Manufacturing.  On October 17, 2007, RFS Holdings
B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V.,
Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and
controlled by RBS, completed the acquisition of ABN AMRO Holding
N.V. (ABN AMRO).  In July 2008, the company disposed its entire
interest in Global Voice Group Ltd.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Dec. 22,
2009, Fitch Ratings upgraded The Royal Bank of Scotland Group's
(RBS Group) and The Royal Bank of Scotland's Individual Ratings to
'D/E' from 'E' and removed the Rating Watch Positive.  The upgrade
of the Individual Ratings reflects improvements in the group's
capital combined with some progress in restructuring the balance
sheet.


THORNFIELD VENTURES: In Administration; Deloitte Appointed
----------------------------------------------------------
Laura Chesters and Nick Duxbury at Property Week report that
Thornfield Ventures Ltd., a holding company of HBOS-backed
developer Thornfield Properties, has been placed into
administration.

The report relates Phil Bowers and Angus Martin of Deloitte were
on Thursday appointed joint administrators to the non-trading
holding company within the Thornfield Capital Ltd. group of
companies.

According to the report, Deloitte has appointed Hammerson to
complete the development of Thornfield Properties' biggest scheme,
The Rock, shopping center in Bury, Lancashire which is still under
construction.


* UK: KPMG Predicts Slow Recovery for Manufacturing Sector
----------------------------------------------------------
Gautam Dalal, KPMG's UK Head of Diversified Industrials, offers
his 2010 predictions for the manufacturing sector: "While 2010
will see the economy curve upwards, manufacturers should expect
the forthcoming year to be difficult given the recovery will be
slow and shallow.  Indeed our autumn business confidence survey
found seven in ten manufacturers expect it to take three to five
years before pre credit crunch conditions are reached.

Therefore management teams will need to maintain their
concentration on cash management and working capital requirements
during the year, and after a period of cost cutting designed for
short term gains, the emphasis must shift to achieving sustainable
advantage.  The winners in 2010 will be those that recycle funding
from cost initiatives to generate cash for growth, continually
rebalancing resources from underperforming areas into those with
promise.

At some point in the year I expect the focus may change from cash
conservation to avoiding the temptation to over-trade when
activity levels rise.  Many won't have the cash available to
finance dramatic new growth plans and bank lending remains both
limited and expensive, at up to 200 basis points more than when
refinancing two years ago -- with higher up front fees too. So,
manufacturers that adopt a cash-focused culture will help
themselves to achieve sufficient liquidity to get through the next
12-18 months, after which there may be more bank liquidity for
financing future growth plans.

As a result 2010 will require companies to keep up the good habits
that they have relied upon to see them through the downturn.  For
instance, forecasting will not only assist in managing cash flow
during the final throes of the downturn and demonstrate good
practice to funders, but it will also provide a sound base on
which to monitor demands on working capital.

There are causes for optimism, with the continued weakness of the
pound against the dollar and the euro presenting an opportunity
for British firms to look beyond these shores and tap into
overseas markets.

Our survey found expansion into new markets was cited by 10
percent of manufacturers as a way to address business concerns and
I expect this number will grow as management teams become
increasingly aware of the cost advantage they can exploit by
exporting, which will be of particular interest given other
markets are recovering faster than the UK.

2010 will be a crucial time for decision making about supply
chains and I think a number of the UK's manufacturers will
consider to whether to bring elements of them back from overseas
locations for two key reasons: Firstly, to take advantage of the
relatively weak euro and pound that are expected to be maintained
in the medium term and secondly due to increasing concern about
risk within complex supply chains as the merits and disadvantages
of globalization in uncertain times are scrutinized.

As a result the next year may well see a number of businesses
re-basing their suppliers closer to home or switching to more
local suppliers, who offer a greater degree of certainty.  The
question is whether they will bring production back all the way to
the UK, or only as far as the euro-zone.  The extent to which
regional development aid is made available to facilitate this move
may go a long way to determining what that final location is.

The government has indicated it intends to support and encourage
investment by manufacturers that seek to increase operations in
the UK so perhaps 2010 will reveal how these aims are intended to
be achieved.

Finally, sustainability must be on the 2010 agenda with the Carbon
Reduction Commitment taking effect from April and significantly
impacting on the manufacturing sector's larger organizations.
This legislation has the potential to threaten or indeed boost the
bottom line of any companies that qualify and understanding the
impact is crucial.  And of course in the long term the
increasingly 'carbon constrained' global economy may have profound
effects on the way manufacturers operate.

So, I predict a good deal of challenge for the UK's manufacturing
sector but the year will not be without silver linings."


===============
X X X X X X X X
===============


* EUROPE: Depressed IPO Markets Show Upturn in Fourth Quarter 2009
------------------------------------------------------------------
Europe's IPO markets recorded a distinct upturn in activity in the
fourth quarter (October to December) of 2009, with both value and
volume rising markedly over the previous nine months when stock
exchanges continued to suffer from the worldwide loss of
confidence in the capital markets and the recession.

However, pricing proved difficult in what remains a buyer's
market, according to the latest IPO Watch Europe, the
PricewaterhouseCoopers survey tracking the volume and value of
IPOs around Europe.

There were 61 IPOs on European exchanges in the last quarter of
2009 with an offering value of EUR4,994 million, compared with 44
listings that raised EUR1,375 million in the previous quarter and
the 64 IPOs with a value of EUR1,238 million that were recorded in
the final three months of 2008.

NYSE Euronext led on IPO value with 13 IPOs raising EUR1,907
million (in the same quarter of 2008, it had an equal number of
IPOs but they raised just EUR6 million) followed by the Warsaw
Stock Exchange (WSE) with 16 IPOs valued at EUR1,454 million
(compared to 23 lPOs a year ago, raising EUR555 million).  London
was in an unaccustomed third place with 14 listings raising
EUR951 million (two more than in Q4 2008 with a value of EUR666
million).  Nine of the London IPOs were on its AIM market and
raised EUR388 million, the same number it saw in Q4 2008 with a
total value then of just EUR3 million.  The remaining listings
were on the Main Market and raised EUR563 million.

Warsaw recorded the biggest IPO of the quarter, the Polish energy
company, Polska Grupa Energetyczna which raised EUR1,407 million,
followed by the Dutch insurance company Delta Lloyd which listed
on NYSE Euronext and raised EUR1,016 million.  The third largest,
also on NYSE Euronext, was the French industrial goods company
CFAO, which raised EUR806 million, while London hosted the fourth
biggest IPO, that of investment company Gartmore Group, raising
EUR378 million.

Richard Weaver, partner, Capital Markets Group,
PricewaterhouseCoopers LLP, commented: "After more than a year of
being effectively closed, Europe's IPO markets are showing clear
signs of opening for business again, although pricing pressures
remain in what is very much a buyer's market as institutional
investors strike a hard bargain.  The fourth quarter was the best
three months for the IPO market in terms of offering value for
more than a year and with market indices generally ending 2009 on
a high note, it should bode well for the coming year."

Elsewhere in Europe Luxembourg saw eight IPOs with a combined
value of EUR456 million, a huge improvement on a year ago when it
hosted four IPOs which raised no money, although it was well down
on the third quarter of 2009 when it hosted seven that raised
EUR817 million.

Borsa Italiana enjoyed an improved quarter compared to the fourth
quarter of 2008 with three IPOs raising EUR121 million (none a
year ago), while the Deutsche Boerse hosted just one IPO valued at
EUR48 million (in Q4 2008 its solitary IPO raised no money).
NASDAQ OMX saw three IPOs raising EUR38 million (nine raising no
money a year ago).

The BME (Spanish Exchanges) hosted one IPO worth EUR12 million
(compared with none in Q4 2008) as did the Oslo Bors and Axess,
raising EUR7 million (compared to two in Q4 2008 raising EUR11
million).  The SIX Swiss Exchange saw one IPO but this raised no
money while the Athens exchange, the Wiener Borse and the ISE
again had no IPOs this quarter.

Tom Troubridge, head of the Capital Markets Group,
PricewaterhouseCoopers LLP, added: "With markets opening up and a
pipeline of listings in place, we stick to our previous forecast
that European IPO markets will recover during the first half of
this year, barring any major, unexpected financial shocks.  Around
the world, we expect Greater China to enjoy another strong year,
building on its market-leading role in 2009, and the US is also
expected to perform well.  Europe as a whole is lagging in the
race to exit the global recession and this is likely to be
reflected in the slower recovery in its IPO activity, with
political uncertainty in the UK also likely to act as a dampener
in the near term on both domestic and international listings in
London."

For 2009 as a whole, NYSE Euronext also ended the year in first
place by value with 36 IPOs raising a total of EUR1,908 million.
London was in second place with 25 listings raising EUR1,660
million and the WSE finished in third place, hosting 38 IPOs with
an offering value of EUR1,594 million.  Overall Europe saw 151
IPOs with a combined offering value of EUR6,834 million, still
less than half the 337 listings in 2008 which raised EUR13,957
million.

United States

The US markets showed considerable recovery in the fourth quarter,
with 34 IPOs accounting for EUR11,476 million in value, a dramatic
increase over the same quarter of 2008 when just three were
recorded, raising a mere EUR189 million.  It was also well up on
the 20 listings the markets saw in the third quarter of 2009 which
raised EUR4,016 million.

For 2009 as a whole, the US exchanges saw 68 IPOs raising
EUR17,212 million, putting the US markets in second place behind
China (mainland and Hong Kong) but ahead of Europe.  This compares
to 57 IPOs in 2008 which raised a total of EUR19,092 million and
which included the Visa Inc IPO in the first quarter of 2008 on
the NYSE which raised EUR11,510 million.

China (mainland and Hong Kong)

China claimed the top place by offering value in 2009 with 172
IPOs raising EUR42,265 million, well ahead of both the US and
Europe.  Hong Kong hosted 73 IPOs in 2009 raising EUR22,542
million, compared to 49 IPOs in 2008 worth EUR5,760 million.  In
mainland China (Shanghai and Shenzhen stock exchanges) there were
99 IPOs during the year raising a total of EUR19,723 million,
compared to 77 IPOs with a combined value of EUR10,115 million in
2008.

                    About PricewaterhouseCoopers

PricewaterhouseCoopers -- http://www.pwc.com/-- provides
industry-focused assurance, tax and advisory services to build
public trust and enhance value for our clients and their
stakeholders.  More than 163,000 people in 151 countries across
our network share their thinking, experience and solutions to
develop fresh perspectives and practical advice.

"PricewaterhouseCoopers" refers to the network of member firms of
PricewaterhouseCoopers International Limited, each of which is a
separate and independent legal entity.


* PwC Sees Changes in Forest, Paper & Packaging Cos. Industries
---------------------------------------------------------------
Forest, paper and fiber-based packaging companies face a changed
world requiring fundamental transformation within the industry,
according to PricewaterhouseCoopers' recent survey of 33 industry
executives based in North and Latin America, the Middle East,
Europe, Africa and Asia.

The survey, for the latest edition of PwC's annual CEO
Perspectives report, showed that while some European and North
American CEOs believe the worst is over, they anticipate a long
road ahead and a slow recovery.  All CEOs in the mature markets
agree that it's unlikely that demand will return to pre-financial
crisis levels due to the rise of digital media for instance.

For executives in the emerging markets such as China, perspectives
differ more than ever from those in mature markets, as they face
continuing strong growth and a lack of structural decline for
paper products.  Every Asian CEO PwC spoke to was bullish on the
future.  Indeed, executives told PwC demand is already recovering
somewhat and they see FPP as a growing industry for their region.

Clive Suckling, global forest, paper and packaging leader at
PricewaterhouseCoopers, commented: "The economic crisis
exacerbated existing market declines and precipitated steep drops
in demand in many forest, paper and packaging companies.  The
industry is standing on the brink of major changes and the need
for transformation is generally accepted.

"Executives need to look beyond short-term survival to the long-
term future of their companies and the new challenges ahead.  For
instance every forest, paper and packaging company needs a
considered strategy around bioenergy and raise the profile of its
role in creating sustainable products."

For individual companies, CEOs told us that there is a need to:

Adjust capacity as the first step to long term survival.
Consolidation may be a precondition to achieving significant
reductions.

Improve cost structures.  But not just cutting costs -- increasing
process innovation and efficient use of raw materials e.g. through
alternative uses of wood fiber, notably by producing energy and
fuels, to reduce costs in existing business and generate new
revenues.

Continue changing existing business models to maintain or restore
the health of core businesses.

Become far more innovative in every realm of existing operations
and in developing new businesses and collaborations.

Furthermore, CEOs believe that too many people still have a
negative perception of the industry's environmental impact, when
in reality the overall footprint is significantly less than is
popularly believed.  For the industry, there is a need to
positively influence key stakeholder groups (i.e. policymakers,
customers and consumers at large) to position FPP as a truly
sustainable industry that derives the most value from every tree.
Potential collaborations and new revenue streams resulting from
new or alternative uses of fiber and biomass (energy, chemicals
etc.) may fundamentally alter the structure of the entire industry
in due course.

Clive Suckling, global forest, paper and packaging sector leader,
PricewaterhouseCoopers, concluded: "Today's forest, paper and
packaging executives are facing decisions which more than ever
could impact their companies for decades to come.  All will need
to ensure that the main house is standing on a firm foundation --
but many also need to build one or more extensions, to house
tomorrow's revenues."

                    About PricewaterhouseCoopers

PricewaterhouseCoopers -- http://www.pwc.com/-- provides
industry-focused assurance, tax and advisory services to build
public trust and enhance value for our clients and their
stakeholders.  More than 163,000 people in 151 countries across
our network share their thinking, experience and solutions to
develop fresh perspectives and practical advice.

"PricewaterhouseCoopers" refers to the network of member firms of
PricewaterhouseCoopers International Limited, each of which is a
separate and independent legal entity.


* Auto Industry Faces More Restructuring in 2010
------------------------------------------------
KPMG's 2010 survey of the global automotive industry is predicting
that -- despite a year of business failures and closures -- much
of the expected restructuring in the sector is yet to come.

"Change has only just begun", the KPMG report says, and Western
Europe is predicted to lose out for new investment.

Three-quarters of senior auto executives predict merger and
acquisition activity to increase for vehicle manufacturers in the
next five years, which is expected to be driven heavily by
corporate debt and insolvency casualties.

According to 89% of respondents, the specific drivers of
alliances, mergers and acquisitions include companies holding too
much debt and risk of insolvency, access to new technologies and
products (84%), potential for product synergies (83%) and access
to new markets and customers (82%).

The global survey of 200 leading executives also cited
difficulties over high overcapacity (especially in Europe and the
US) -- and the need to focus on investing in innovation and new
technologies to produce the next generation of energy efficient
vehicles.

Mike Steventon, Head of Automotive for KPMG in the UK, said:
"Growth and investment are back on the agenda -- but that will
come at the price of continued restructuring of an industry that
is still burdened by huge overcapacity.  The change has only just
begun.

"Companies also face the challenge of financing the cycle of
innovation -- while consumers feel that they are poorer than
before, and less inclined to spend.  That means that companies are
likely to have to compete on technology and on cost. That is a
tall order."

Key findings include:

   -- 47% of senior executives predict strong growth and
      investment in Eastern Europe -- while growth expectations
      for Western Europe are low

   -- Executives still see profitability as a significant issue --
      with 33% expecting a decline, and 40% expecting profits to
      be stable

   -- Substantial majorities of those surveyed think that M&A will
      increase for tier one suppliers (just over 70 percent), tier
      two suppliers (56 percent) and dealers (52 percent)

   -- Faster rationalization over the last year means that M&A
      among dealer networks is likely to fall back, according to
      the survey

   -- Excluding the BRIC countries of Brazil, Russia, India and
      China, executives said consumer demand for autos will grow
      the fastest over the next five years  in South East Asia
      (37%) and Eastern Europe (30%).

Marc Summers, UK Director in Automotive at KPMG, said: "Auto
executives expect that M&A activity will increase across
manufacturers and suppliers mainly driven by the companies'
determination to succeed through access to new technologies and
products and delivering product synergies.  This will lead to more
alliances, joint ventures and acquisitions, particularly by the
strong players - this will allow them to share the high cost and
burden on investment in innovation.

"On a less positive note, the executives expect a key driver of
M&A activity through further restructuring in the industry as they
believe there is still a way to go in right-sizing and balancing
the supply-demand equation, therefore further closures, stressed
and distressed sales are predicted.

"The right-sizing within dealer groups will continue and become a
key focus of 2010 in the UK as the scrappage scheme ends and
consumers confidence sinks -- executives expect M&A activity
globally within dealers to fall with further dealer group
closures, albeit that this will present an opportunity for picking
and choosing sites by the stronger players in the market."

Other findings:

New Technology: nine of ten executives in the KPMG survey expect
vehicle manufacturers to increase their investment over the next
two years in new technologies and new models/products while just
fewer than 30% expect investment in new plants.  Asked the same
question about an increase in investment by suppliers, 91% of the
execs said they expected increased investment in new technologies,
78% in new models/products and only 28% in new plants.

Sales of Hybrids, Alternative Fuel Vehicles to Increase: the KPMG
survey respondents overwhelmingly agreed that the sale of hybrid
fuel vehicles could help the auto industry get back on its feet is
the sale of hybrid fuel vehicles.  A full 93% think unit sales of
hybrids will increase the most in the next five years, followed by
other alternative fuel vehicles (83%) and low cost or introduction
cars (82%).

Hybrid Seen As Most Important Fuel Technology: in line with
consumer expectations, when asked to rate the importance of
alternative fuel technologies to the industry over the next five
years, hybrid fuel systems came out on top (almost 85%), followed
by battery electric power (68%), fuel cell electric power
(63%), and biodiesel (42%).

Fuel Efficiency Cited As Key Purchase Factor: when asked what
would influence consumer purchase decisions over the next five
years, fuel efficiency was most frequently cited (94%), fairly
flat from last year's high of 96%, strongly ahead of other
factors, followed by environmental friendliness (just over
80%), safety innovation (71 percent) and vehicle styling
(61%).

           About the KPMG Global Executive Survey 2010

In the KPMG survey, conducted during late September through early
November 2009, the 200 executives interviewed represented vehicle
manufacturers and suppliers in the United States, Canada, Mexico,
United Kingdom, France, Germany, Sweden, India, China, South
Korea, Japan, Thailand, Brazil, Spain, Poland, Slovakia, Russia,
Czech Republic, Italy, Switzerland, South Africa and Australia.
KPMG has released an annual survey of automotive executives
expressing their views on the state of the industry since 1999.

                           About KPMG

KPMG LLP, a UK limited liability partnership, is a subsidiary of
KPMG Europe LLP and operates from 22 offices across the UK with
nearly 11,000 partners and staff.  The UK firm recorded a turnover
of GBP1.6 billion in the year ended September 2009.  KPMG is a
global network of professional firms providing Audit, Tax, and
Advisory services.  It operates in 144 countries and has more than
137,000 professionals working in member firms around the world.
The independent member firms of the KPMG network are affiliated
with KPMG International Cooperative, a Swiss entity.  KPMG
International provides no client services.


* Auto Industry Needs New Approaches In a Changed Global Market
---------------------------------------------------------------
The after effects of the worldwide economic and financial downturn
have altered the business landscape and have challenged
long-standing assumptions about successful operating structures.
There is a need to establish a new "normal" for the automotive
industry and the reality is that the game has changed, according
to the report 'Global Automotive Perspectives' by
PricewaterhouseCoopers.

New approaches to everything automotive companies do from
reporting to their stakeholders and the investment community to
making decisions on tax and legal structures in a changed global
market are essential.

Richard Hanna, global auto leader, PricewaterhouseCoopers LLP
said: "During the last decade, the underlying competitive
landscape has changed dramatically because of the emergence of new
markets and new industry players as well as fundamental changes in
the economic environments of the mature markets.  The global
recession has challenged the core operating models responsible for
delivering the business strategy of many companies.

In addition to the traditional disclosures on results of
operations, cash flows and financial position, users of financial
statements want insight into management strategy for dealing with
changing industry, extended liquidity information and transparent
discussion of risks and the company's outlook.  Establishing a
regular information flow between companies and the investment
community develops a climate of confidence, creating a virtuous
circle of transparency and credibility."

The report highlights three key themes:

   -- Robust and transparent reporting on financial results and
      outlook

   -- The golden rule of transfer pricing and how companies can
      help themselves

   -- Simplifying the business model

Financial reporting

Since the beginning of the economic crisis, reporting has focused
more on cash flow, and many companies have released enhanced
information on debt maturity and covenants, cost-optimized
liquidity and capital resources, their level of equity and
refinancing measures, and their level of working capital and cash
requirements.

However, based on PwC's discussions with analysts at the latest
"Meet the Experts" Conference in London, there are gaps between
the provided information and the information that the capital
markets need to understand a company's performance.  Specifically,
capital markets want details on the impact of foreign exchange
translation on debt on the one hand, and acquired (or divested)
debt on the other hand.  Numbers alone however, are not enough ?
the analyst community need to understand the management?s vision
and strategy.

Transfer pricing

Most companies have set rules to determine the prices for
intercompany transactions.  These rules work under stable economic
conditions but might not be adequate during a downturn. For
example, typical transfer pricing arrangements may generate
situations in which a large number of entities within the group
are paying cash taxes while the group as a whole is loss-making.

The golden rule of transfer pricing (TP) is to set prices for
transactions between related parties as independent parties would
-- the so-called arm's-length principle.

Simplifying the business model

The automotive industry is over 100 years old, and layers of
complexity have been introduced at each turn of its evolution.  It
has one of the most complicated upstream and downstream value
chains for a volume produced product.

Car manufacturers and suppliers need to have different strategies
for mature markets versus emerging markets.  In emerging markets,
companies must have the very efficient market access platform to
position themselves to benefit from growth opportunities.
However, without the right strategy and execution in mature
markets, it is clear that companies cannot profit from emerging
markets -- the persistence of structural cost and complexity in
mature market operations will eventually rob all but the most
resilient competitors of the opportunity to compete in emerging
markets.

Richard Hanna, global auto leader, PricewaterhouseCoopers LLP
said: "A complex corporate operating model can be costly to manage
and to maintain.  It can create specific challenges as well, not
the least of which is impaired operational efficiency.  Change is
never easy however, provided the change effort is recognized and
managed appropriately, the size of the prize at the end of a
successful implementation can be significant -- a cost effective,
risk-compliant, tax efficient, and flexible organization which is
truly fit for the future, whatever it might hold."

                    About PricewaterhouseCoopers

PricewaterhouseCoopers -- http://www.pwc.com/-- provides
industry-focused assurance, tax and advisory services to build
public trust and enhance value for our clients and their
stakeholders.  More than 163,000 people in 151 countries across
our network share their thinking, experience and solutions to
develop fresh perspectives and practical advice.

"PricewaterhouseCoopers" refers to the network of member firms of
PricewaterhouseCoopers International Limited, each of which is a
separate and independent legal entity.


* S&P Says 2009 Ends With 265 Defaults; 4 Issuers Default In 2010
-----------------------------------------------------------------
Standard & Poor's on Friday said global corporate defaults totaled
265 in full-year 2009 -- the highest annual tally since the
ratings agency's series began in 1981.  It even exceeds the 229
defaults recorded in 2001 (the most recent recession), said an
article published Friday by Standard & Poor's, titled "Global
Corporate Default Update (Jan. 4 - 7, 2010) (Premium)."

By region, the U.S. led default activity with 193 defaults,
followed by the emerging markets with 36, Europe with 19, and the
other developed region (Australia, Canada, Japan, and New Zealand)
with 17.  These tallies are all roughly twice their respective
regional default totals recorded in 2008.

"Distressed exchanges led default activity, accounting for 103
defaults," said Diane Vazza, head of Standard & Poor's Global
Fixed Income Research  Group.  "Missed interest or principal
payments came in second with 88 defaults, followed by 69
bankruptcy-related defaults and five defaults stemming from other
reasons, including regulatory or government takeovers."

So far in 2010, three U.S.-based issuers and one Canadian issuer
have defaulted.  Two of the defaults resulted from distressed
exchanges and two were due to missed interest and principal
payments.

Despite unprecedented turbulence in the credit markets and record-
high default volume since 2008, the ability of corporate credit
ratings to serve as an effective measure of relative default risk
remains intact.  This is evidenced by several factors, such as 87%
of the issuers that defaulted in 2009 were rated speculative grade
('BB+' and lower) prior to default, investment-grade-rated issuers
('BBB-' and above) have a 99% survival rate within a one-year time
horizon, and the majority of defaults in 2009 stemmed from the
weakest end of the credit spectrum, known as weakest links.
Globally, 278 issuers are weakest links (entities rated 'B-' and
lower with a negative outlook or ratings on CreditWatch negative),
and the regional distribution of weakest links closely mirrors the
default experience in 2009.

Of the global corporate defaulters in 2009, 40% of issues with
available recovery ratings had recovery ratings of '6' (indicating
S&P's expectation for negligible recovery of 0%-10%), 15% of
issues had recovery ratings of '5' (modest recovery prospects of
10%-30%), 12% had recovery ratings of '4' (average recovery
prospects of 30%-50%), and 11% had recovery ratings of '3'
(meaningful recovery prospects of 50%-70%). And for the remaining
two rating categories, 12% of issues had recovery ratings of '2'
(substantial recovery prospects of 70%-90%) and 10% of issues had
recovery ratings of '1' (very high recovery prospects of 90%-
100%).


* BOND PRICING: For the Week January 4 to January 8, 2010
---------------------------------------------------------


Issuer               Coupon      Maturity Currency   Price
------               ------      -------- --------   -----

AUSTRIA
-------
HAA-BANK INTL AG       5.250    10/27/2015      EUR   72.63
INVESTKREDIT AG        7.000      3/6/2021      EUR   74.49
KOMMUNALKREDIT         4.440    12/20/2030      EUR   66.75
KOMMUNALKREDIT         0.500     3/15/2019      CAD   63.70
KOMMUNALKREDIT         4.900     6/23/2031      EUR   71.38
OESTER VOLKSBK         4.170     7/29/2015      EUR   71.50
OESTER VOLKSBK         4.810     7/29/2025      EUR   66.63
OESTER VOLKSBK         5.270      2/8/2027      EUR   91.66
RAIFF ZENTRALBK        4.500     9/28/2035      EUR   88.22
REPUBLIC OF AUST       2.516    10/10/2025      EUR   70.41

BELGIUM
-------
FORTIS BANK            8.750     12/7/2010      EUR   21.95

BULGARIA
--------
PETROL AD-SOFIA        8.375    10/26/2011      EUR   49.05

CZECH REPUBLIC
--------------
CZECH REPUBLIC         2.750     1/16/2036      JPY   61.90

DENMARK
-------
DANMARK SKIBSKRD       2.000    11/15/2024      DKK   72.23

FINLAND
-------
MUNI FINANCE PLC       0.250     6/28/2040      CAD   20.90
MUNI FINANCE PLC       0.500     9/24/2020      CAD   60.86
MUNI FINANCE PLC       0.500     3/17/2025      CAD   47.00
MUNI FINANCE PLC       1.000    10/30/2017      AUD   63.45
MUNI FINANCE PLC       1.000    11/21/2016      NZD   69.57
MUNI FINANCE PLC       1.000     2/27/2018      AUD   62.27
STORA ENSO OYJ         7.250     4/15/2036      USD   71.89

FRANCE
------
AIR FRANCE-KLM         4.970      4/1/2015      EUR   16.27
ALCATEL SA             4.750      1/1/2011      EUR   15.95
ALCATEL-LUCENT         5.000      1/1/2015      EUR    3.70
ALTRAN TECHNOLOG       6.720      1/1/2015      EUR    4.89
ATOS ORIGIN SA         2.500      1/1/2016      EUR   51.74
CALYON                 6.000     6/18/2047      EUR   43.46
CAP GEMINI SOGET       3.500      1/1/2014      EUR   44.46
CAP GEMINI SOGET       1.000      1/1/2012      EUR   44.93
CLUB MEDITERRANE       4.375     11/1/2010      EUR   48.63
CMA CGM                5.500     5/16/2012      EUR   65.10
DEXIA MUNI AGNCY       1.000    12/23/2024      EUR   61.29
DEXIA MUNI AGNCY       4.680      3/9/2029      CAD   73.38
EURAZEO                6.250     6/10/2014      EUR   57.02
FAURECIA               4.500      1/1/2015      EUR   21.28
GROUPE VIAL            2.500      1/1/2014      EUR   23.84
MAUREL ET PROM         7.125     7/31/2014      EUR   18.56
NEXANS SA              4.000      1/1/2016      EUR   65.06
PEUGEOT SA             4.450      1/1/2016      EUR   33.75
PUBLICIS GROUPE        1.000     1/18/2018      EUR   45.23
PUBLICIS GROUPE        3.125     7/30/2014      EUR   36.43
RHODIA SA              0.500      1/1/2014      EUR   43.31
SOC AIR FRANCE         2.750      4/1/2020      EUR   20.99
SOITEC                 6.250      9/9/2014      EUR   12.27
TEM                    4.250      1/1/2015      EUR   60.04
THEOLIA                2.000      1/1/2014      EUR   13.93
VALEO                  2.375      1/1/2011      EUR   45.70
ZLOMREX INT FIN        8.500      2/1/2014      EUR   34.62
ZLOMREX INT FIN        8.500      2/1/2014      EUR   34.50

GERMANY
-------
BHW BAUSPARKASSE       3.970      9/4/2024      EUR   73.61
DEUTSCHE BK LOND       1.000     3/31/2027      USD   44.11
ESCADA AG              7.500      4/1/2012      EUR   14.99
EUROHYPO AG            5.000     5/15/2027      EUR   92.52
HSH NORDBANK AG        4.375     2/14/2017      EUR   64.93
HYPO REAL ESTATE       4.690    12/14/2026      EUR   72.34
KFW                    6.588     8/10/2030      EUR   81.12
KFW                    5.000    10/17/2035      EUR   73.56
L-BANK FOERDERBK       0.500     5/10/2027      CAD   42.15
LB BADEN-WUERTT        5.250    10/20/2015      EUR   34.36
LB BADEN-WUERTT        2.500     1/30/2034      EUR   57.98
LB BADEN-WUERTT        2.935     7/14/2036      JPY   74.05
RENTENBANK             1.000     3/29/2017      NZD   68.91
SOLON AG SOLAR         1.375     12/6/2012      EUR   38.69
TUI AG                 5.500    11/17/2014      EUR   75.62

GREECE
------
HELLENIC REP I/L       2.300     7/25/2030      EUR   74.07
YIOULA GLASSWORK       9.000     12/1/2015      EUR   54.75
YIOULA GLASSWORK       9.000     12/1/2015      EUR   56.03

HUNGARY
-------
REP OF HUNGARY         2.110    10/26/2017      JPY   72.26

IRELAND
-------
ALLIED IRISH BKS       5.250     3/10/2025      GBP   64.47
ALLIED IRISH BKS       5.625    11/29/2030      GBP   60.49
BANK OF IRELAND        4.875     1/22/2018      GBP   77.49
DEPFA ACS BANK         5.250     3/31/2025      CAD   71.51
DEPFA ACS BANK         4.900     8/24/2035      CAD   60.18
DEPFA ACS BANK         5.125     3/16/2037      USD   69.66
DEPFA ACS BANK         5.125     3/16/2037      USD   76.95
DEPFA ACS BANK         0.500      3/3/2025      CAD   29.43
IRISH NATIONWIDE       5.500     1/10/2018      GBP   37.41
IRISH NATIONWIDE      13.000     8/12/2016      GBP   59.88
UT2 FUNDING PLC        5.321     6/30/2016      EUR   67.31

ITALY
-----
COMUNE DI MILANO       4.019     6/29/2035      EUR   73.44
ROMULUS FINANCE        5.441     2/20/2023      GBP   74.37
UNICREDITO ITALI       5.668     2/15/2035      EUR   73.87

LUXEMBOURG
----------
ARCELORMITTAL          7.250      4/1/2014      EUR   37.95
BREEZE                 4.524     4/19/2027      EUR   84.27
GLOBAL YATIRIM H       9.250     7/31/2012      USD   65.88
HELLAS III             8.500    10/15/2013      EUR   72.08
LIGHTHOUSE INTL        8.000     4/30/2014      EUR   76.38

NETHERLANDS
-----------
ABN AMRO BANK NV       6.000     3/16/2035      EUR   66.69
ABN AMRO BANK NV       7.540     6/29/2035      EUR   66.25
AI FINANCE B.V.       10.875     7/15/2012      USD   54.13
AIR BERLIN FINAN       1.500     4/11/2027      EUR   68.71
ALB FINANCE BV         8.750     4/20/2011      USD   30.48
ALB FINANCE BV         9.250     9/25/2013      USD   30.45
ALB FINANCE BV         9.000    11/22/2010      USD   30.49
ARPENI PR INVEST       8.750      5/3/2013      USD   56.13
ARPENI PR INVEST       8.750      5/3/2013      USD   56.13
ASTANA FINANCE         9.000    11/16/2011      USD   22.97
BK NED GEMEENTEN       0.500     2/24/2025      CAD   46.52
BK NED GEMEENTEN       0.500     6/27/2018      CAD   68.08
BLT FINANCE BV         7.500     5/15/2014      USD   60.38
BLT FINANCE BV         7.500     5/15/2014      USD   60.50
BRIT INSURANCE         6.625     12/9/2030      GBP   68.20
BSP FINANCE BV        10.750     11/1/2011      USD   73.38
ELEC DE CAR FIN        8.500     4/10/2018      USD   62.62
EM.TV FINANCE BV       5.250      5/8/2013      EUR    4.49
IVG FINANCE BV         1.750     3/29/2017      EUR   67.57
KBC IFIMA NV           6.004      2/7/2025      USD   70.17
NATL INVESTER BK      25.983      5/7/2029      EUR   34.26
NED WATERSCHAPBK       0.500     3/11/2025      CAD   45.36
NIB CAPITAL BANK       4.790    12/17/2043      EUR   75.12
Q-CELLS INTERNAT       1.375     2/28/2012      EUR   62.81
Q-CELLS INTERNAT       5.750     5/26/2014      EUR   71.49
RABOBANK               4.168     2/25/2020      EUR   88.49
TEMIR CAPITAL          9.500     5/21/2014      USD   25.00
TEMIR CAPITAL          9.000    11/24/2011      USD   17.75
TJIWI KIMIA FIN       13.250      8/1/2001      USD    0.01
TURANALEM FIN BV       8.500     2/10/2015      USD   37.52
TURANALEM FIN BV       8.250     1/22/2037      USD   39.97
TURANALEM FIN BV       8.000     3/24/2014      USD   38.75
TURANALEM FIN BV       7.750     4/25/2013      USD   37.54
TURANALEM FIN BV       6.250     9/27/2011      EUR   37.47
TURANALEM FIN BV       7.875      6/2/2010      USD   37.50
TURANALEM FIN BV       7.125    12/21/2009      GBP   36.88

NORWAY
------
EKSPORTFINANS          0.500      5/9/2030      CAD   35.94
NORSKE SKOGIND         7.000     6/26/2017      EUR   72.54

POLAND
------
POLAND GOVT BOND       3.300     6/16/2038      JPY   69.56
POLAND-REGD-RSTA       2.810    11/16/2037      JPY   61.96
REP OF POLAND          3.220      8/4/2034      JPY   71.65
REP OF POLAND          2.648     3/29/2034      JPY   62.87

SPAIN
-----
BANCAJA EMI SA         2.755     5/11/2037      JPY   63.75
GENERAL DE ALQUI       2.750     8/20/2012      EUR   57.60
MINICENTRALES          4.810    11/29/2034      EUR   64.22

SWEDEN
------
SWEDISH EXP CRED       0.500    12/17/2027      USD   47.13

SWITZERLAND
-----------
CYTOS BIOTECH          2.875     2/20/2012      CHF   51.23
UBS AG JERSEY          9.000      3/9/2010      USD   62.03
UBS AG JERSEY          9.000     5/18/2010      USD   62.05
UBS AG JERSEY          9.000     6/11/2010      USD   60.86
UBS AG JERSEY          9.000      7/2/2010      USD   61.20
UBS AG JERSEY          9.000     7/19/2010      USD   60.95
UBS AG JERSEY          9.350     7/27/2010      USD   61.45
UBS AG JERSEY          9.000     8/13/2010      USD   65.90
UBS AG JERSEY          9.500     8/31/2010      USD   68.25
UBS AG JERSEY         10.000    10/25/2010      USD   68.45
UBS AG JERSEY         13.900     1/31/2011      USD   36.74
UBS AG JERSEY         14.640     1/31/2011      USD   39.24
UBS AG JERSEY         16.170     1/31/2011      USD   13.86
UBS AG JERSEY         10.000     2/11/2011      USD   61.13
UBS AG JERSEY         15.250     2/11/2011      USD   12.15
UBS AG JERSEY          8.250     2/28/2011      USD   71.34
UBS AG JERSEY         11.330     3/18/2011      USD   18.29
UBS AG JERSEY         11.400     3/18/2011      USD   25.81
UBS AG JERSEY         16.160     3/31/2011      USD   45.48
UBS AG JERSEY         10.820     4/21/2011      USD   22.34
UBS AG JERSEY         11.030     4/21/2011      USD   21.65
UBS AG JERSEY         10.650     4/29/2011      USD   16.22
UBS AG JERSEY         13.000     6/16/2011      USD   50.53
UBS AG JERSEY         10.360     8/19/2011      USD   52.79
UBS AG JERSEY         11.150     8/31/2011      USD   38.72
UBS AG JERSEY          9.350     9/21/2011      USD   66.84
UBS AG JERSEY          3.220     7/31/2012      EUR   68.14
UBS AG JERSEY         10.280     8/19/2011      USD   33.99
UBS AG LONDON          1.500     6/19/2018      JPY   65.78

UNITED KINGDOM
--------------
ALPHA CREDIT GRP       2.940      3/4/2035      JPY   68.60
BANK OF SCOTLAND       2.359     3/27/2029      JPY   74.88
BARCLAYS BK PLC        7.610     6/30/2011      USD   53.79
BARCLAYS BK PLC       10.600     7/21/2011      USD   40.34
BARCLAYS BK PLC       11.650     5/20/2010      USD   41.13
BRADFORD&BIN BLD       4.910      2/1/2047      EUR   68.74
BRADFORD&BIN BLD       5.500     1/15/2018      GBP   10.00
BRADFORD&BIN BLD       5.750    12/12/2022      GBP    8.01
BRADFORD&BIN BLD       2.875    10/16/2031      CHF   74.16
BROADGATE FINANC       5.098      4/5/2033      GBP   72.72
CATTLES PLC            7.875     1/17/2014      GBP    6.00
CITY OF KIEV           8.000     11/6/2015      USD   70.01
CITY OF KIEV           8.000     11/6/2015      USD   70.75
CO-OPERATIVE BNK       5.875     3/28/2033      GBP   75.33
EFG HELLAS PLC         2.760     5/11/2035      JPY   65.50
ENTERPRISE INNS        6.500     12/6/2018      GBP   82.45
ENTERPRISE INNS        6.875      5/9/2025      GBP   76.77
ENTERPRISE INNS        6.375     9/26/2031      GBP   72.89
F&C ASSET MNGMT        6.750    12/20/2026      GBP   67.66
GREENE KING FIN        5.702    12/15/2034      GBP   71.76
HBOS PLC               4.500     3/18/2030      EUR   70.38
INEOS GRP HLDG         7.875     2/15/2016      EUR   72.03
INEOS GRP HLDG         7.875     2/15/2016      EUR   71.38
LOUIS NO1 PLC          8.500     12/1/2014      EUR   76.46
MARSTONS ISSUER        5.641     7/15/2035      GBP   71.96
NATL GRID GAS          1.771     3/30/2037      GBP   45.82
NATL GRID GAS          1.754    10/17/2036      GBP   47.20
NBG FINANCE PLC        2.755     6/28/2035      JPY   65.22
NOMURA INTL PLC        0.800    12/21/2020      EUR   58.99
NORTHERN ROCK          9.375    10/17/2021      GBP   61.29
NORTHERN ROCK          5.750     2/28/2017      GBP   55.06
NORTHERN ROCK          5.625     1/13/2015      GBP   60.63
PRINCIPALITY BLD       5.375      7/8/2016      GBP   54.29
PRIVATBANK             8.750      2/9/2016      USD   69.50
PUNCH TAVERNS          6.468     4/15/2033      GBP   66.10
PUNCH TAVERNS          7.567     4/15/2026      GBP   73.49
ROYAL BK SCOTLND       5.944     2/15/2045      USD   46.97
ROYAL BK SCOTLND       4.700      7/3/2018      USD   75.00
SPIRIT ISSUER          5.472    12/28/2028      GBP   71.42
TXU EASTERN FNDG       6.450     5/15/2005      USD    2.00
UNIQUE PUB FIN         6.464     3/30/2032      GBP   58.35
UNIQUE PUB FIN         7.395     3/28/2024      GBP   72.30
VAB BANK              10.125     6/14/2010      USD   67.48
WESSEX WATER FIN       1.369     7/31/2057      GBP   20.51


                            *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than US$3 per
share in public markets.  At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
http://www.bankrupt.com/booksto order any title today.

                            *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine
C. Tumanda, Joy A. Agravante and Peter A. Chapman, Editors.

Copyright 2010.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$625 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Christopher Beard at 240/629-3300.


                 * * * End of Transmission * * *