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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Wednesday, January 20, 2010, Vol. 11, No. 013

                            Headlines



A L B A N I A

* ALBANIA: To Emit EUR300MM Eurobonds to Refinance Syndicate Loan


B U L G A R I A

HIMKO AD: Gelchev Engineering Plans to Invest EUR35 Million
KREMIKOVTZI AD: Ex-CEO Vows to Sue People Responsible for Collapse


C Z E C H   R E P U B L I C

DAVAY: Declared Bankrupt by Brno Court; CZK25MM Owed to Creditors


F R A N C E

THEOLIA SA: Gets Turbine Project Financing Amid Debt Restructuring


G E R M A N Y

SCHAEFFLER GROUP: Reorganizes to Allow Outsiders to Invest

* GERMANY: Shipyards Face Wave of Bankruptcies, Meyer Says


G R E E C E

* GREECE: Must Step Up Efforts to Tackle Deficit; Won't Default


I C E L A N D

* ICELAND: Sigfusson Warns of 'No' Vote on Icesave Referendum


I R E L A N D

ARDEN JEWELLERS: Creditors Meeting Set for January 26
AT YOUR LEISURE: Creditors Meeting Set for January 26
CAPITAL PROPERTIES: Creditors Meeting Set for January 29
CELTWARD LIMITED: Creditors Meeting Set for January 29
DRYDEN XV: Moody's Upgrades Rating on Class E Notes to 'Caa2'

FREE SPIRIT: Faces Wind-Up Petition From Gerard Harrahill
F S CITYWEST: Faces Wind-Up Petition From Gerard Harrahill
F S DROGHEDA: Faces Wind-Up Petition From Gerard Harrahill
GLENCULLEN HOLDINGS: Posts EUR8.4MM '08 Loss; Doubt Cast on Future
KELSEY MANUFACTURING: Creditors Meeting Set for January 29

MICK BRADLEY'S: Creditors Meeting Set for February 2
O'SHEA TRANSPORT: Creditors Meeting Set for January 29
P.A.H. CONSTRUCTION: Creditors Meeting Set for January 29
PIXELBRICK LIMITED: Creditors Meeting Set for January 29
SCOTTFLOORING LIMITED: Creditors Meeting Set for February 2

SILVERHOLD LIMITED: Gilroy Gannon Files Winding-Up Petition
ZOE DEVELOPMENTS: AIB Seeks to Appoint Receiver Over Properties


I T A L Y

ANTICHI PELLETTIERI: Still In Talks with Creditor Banks
SEAT PAGINE: Mulls Sale of EUR650 Million in Senior Secured Debt
SEAT PAGINE: Moody's Assigns (P)'B1' Rating on EUR650 Mil. Notes
SEAT PAGINEGIALLE: S&P Assigns 'B+' Rating on EUR650 Mil. Notes


K A Z A K H S T A N

KAZAKHTELECOM JSC: Fitch Gives Stable Outlook; Keeps 'BB' Rating


L U X E M B O U R G

EUROPEAN ENHANCED: Moody's Cuts Rtngs on Classes M & O Notes to B1


N E T H E R L A N D S

FAXTOR ABS: Moody's Affirms Ba1 Ratings on Three Classes of Notes


R O M A N I A

REALITATEA MEDIA: Three Companies File Insolvency Requests

* ROMANIA: May Get Delayed IMF Tranche; Passes 2010 Budget Plan


R U S S I A

BANK SOYUZ: Former Owner to Buy Back Half of Business


S P A I N

CABLEUROPA SAU: S&P Puts 'CCC+' Rating on CreditWatch Developing
FONCAIXA FTGENCAT: Moody's Cuts Rating on Class D Notes to 'B3'
FTPYME BANCAJA: Moody's Lowers Rating on Class C Notes to 'B2'


U N I T E D   K I N G D O M

ABERDEEN SCOTCH: Put Into Liquidation; Begbies Traynor Appointed
ARTISAN HOLDINGS: To Renegotiate Facilities of Three Subsidiaries
BRITISH AIRWAYS: To Retrain Staff; Unite Plans New Strike Ballot
DSG INTERNATIONAL: Fitch Gives Stable Outlook; Keeps 'BB-' Rating
GALA: Sr. Lenders In Advanced Talks with Mezzanine Debt Holders

GLENCRAFT: Talks on Rescue Plan "Progressing Well", Tenon Says
HABITAT UK: Hilco Plans to Convert EUR60 Mln Debt Into Equity
JEAN MUIR: Harris Lipman Says CVA Helped Limit Creditor Losses
KERLING PLC: Moody's Assigns (P)'B3' Corporate Family Rating
LEHMAN BROTHERS: Allowed to Buy Loans for US$1.39 Billion Cash

NORTHERN ROCK: Inks GBP10MM Sponsorship Deal with Newcastle United
ROMULUS: Former Executive Accuses Moore of Conspiracy to Defraud
ROYAL BANK: Wanted to Retain Enron as Significant Client
STOCKPORT COUNTY: To Resolve Football League Share Transfer Issues
TRAFALGARD NEW HOMES: In Talks with Creditors Over Wandle Scheme

TULLETT PREBON: Fitch Upgrades Issuer Default Rating From 'BB+'
UK GOLF: In Administration; To Be Sold as Going Concern

* UK: Over 140,000 Firms Show Signs of Financial Distress in 4Q09
* UK: Amount of Tax Deferred by Struggling Firms Topped GBP4.3 Bln




                         *********



=============
A L B A N I A
=============


* ALBANIA: To Emit EUR300MM Eurobonds to Refinance Syndicate Loan
-----------------------------------------------------------------
AlbanianEconomy.com reports that the Albanian Ministry of Finance
has opened a tender for a bond management company in a bid to emit
EUR300 million in euro denominated bonds.

"Close to EUR200 million of the proceeds will go to refinance/
prepay the existing syndicate loan that we signed last year," the
report quoted the Ministry of Finance as saying in a press
release.

According to the report, officials said off record that they were
prepared also to cut expenses if the bond debut fails.

The report relates the Ministry selected several international
banks in March 2009 from which it borrowed EUR250 million.
According to the report, the interest agreed was EURIBOR plus
9.65% and could increase till EURIBOR plus 10.65% if the rating
agency Moody's cut the country's rating that currently is B1 with
stable outlook.


===============
B U L G A R I A
===============


HIMKO AD: Gelchev Engineering Plans to Invest EUR35 Million
-----------------------------------------------------------
ISI Emerging Markets reports that Galchev Engineering Group plans
to invest EUR35 million in insolvent Himko AD.

Himko AD Vratsa (Chimko AD) is a Bulgaria-based company that
specializes in the chemicals-agricultural industry.  The Company
produces and trades organic and non-organic chemical products.
The Company has two direct subsidiaries: Himkosecurity EOOD
Vratsa, Bulgaria and Himko Istanbul, Turkey.  As of December 7,
2004 the Company is in the liquidation process.


KREMIKOVTZI AD: Ex-CEO Vows to Sue People Responsible for Collapse
------------------------------------------------------------------
Novinite.com reports that Alexander Tomov, the former CEO of
Kremikovtzi AD, declared he was going to sue all entities that he
deems guilty for the demise of the steel mill.

Mr. Tomov, who is also the ex-president of the Bulgarian CSKA
Football Club, made the declaration Monday during the break of the
Sofia District Court's trial against him, the report relates.  He
is currently indicted for document fraud and embezzlement of over
EUR5 million from CSKA and BGN29 million from Kremikovtzi, the
report discloses.

According to the report, Mr. Tomov says the mill's bankruptcy is
the result of an official scenario prepared and carried out by
people and businesses close to the Bulgarian Socialist Party BSP,
including high-ranking political figures.

If proven guilty, Mr. Tomov and the other three defendants face
between 10 and 20 years behind bars, the report notes.

As reported by the Troubled Company Reporter-Europe,

                          Restructuring

The European Commission on Dec. 16 said it has found that the
Bulgarian steel producer Kremikovtzi did not implement the
business plan established for its restructuring, which had been
agreed by the Commission in 2006 on the basis of a special steel
protocol to the Europe Agreement applicable to EU/Bulgaria
relations prior to the 2007 accession.

Between 1998 and 2005, the company received about EUR222 million
restructuring aid, but failed to modernize its infrastructure and
to reduce its production costs.  The company went bankrupt in
August 2008 and Bulgaria initiated the recovery of the aid plus
interest in the context of the ongoing liquidation proceedings.

                        About Kremikovtzi

Headquartered in Sofia, Bulgaria, Kremikovtzi AD --
http://www.kremikovtzi.com/-- is a company principally engaged in
the steel industry.  Its production capacity includes a complete
steel production cycle, from ore mining to finished products, such
as hot rolled and cold rolled products (coils, slabs, plates,
blooms and billets), different thickness wire rods and tubes.  The
Company's product range also includes coke and chemical products,
ferro-alloys and metallurgical lime.  The Company operates through
a number of subsidiaries, including Kremikovtzi Trans EOOD,
Nezavisima laboratoriya za analizi EOOD, Kremikovtzi rudodobiv AD,
Ferosplaven zavod EOOD, Global Trade Trans and Kremi Logistics
EOOD, among others.  The Company has undergone the insolvency
process since August 6, 2008.


===========================
C Z E C H   R E P U B L I C
===========================


DAVAY: Declared Bankrupt by Brno Court; CZK25MM Owed to Creditors
-----------------------------------------------------------------
Czech Business Weekly reports that the Regional Court in Brno,
South Moravia, has declared Davay bankrupt.  Davay was formerly
one of the largest CD and DVD distributors in the Czech Republic.

According to the report, Davay owes around CZK25 million to
creditors.

The report recalls the company had proposed its reorganization,
which would allegedly enable creditors to receive higher amount of
their claims, but creditors had rejected this.

Davay has been in insolvency proceedings since October 23, the
report notes.


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


THEOLIA SA: Gets Turbine Project Financing Amid Debt Restructuring
------------------------------------------------------------------
Tara Patel at Bloomberg News reports that Theolia SA obtained
EUR51 million (US$73 million) in financing for a turbine project
in Italy.

According to Bloomberg, Theolia said in an e-mailed statement the
company got funds for the 30-megawatt project in Enna, Sicily,
from Unicredit SpA and WestLB AG.

Bloomberg says the wind farm will start up in the first half of
this year.

                        Debt Restructuring

As reported by the Troubled Company Reporter-Europe on Jan. 8,
2010, Theolia SA said there's a "high" probability that a plan to
restructure bonds and raise as much as EUR100 million (US$144
million) in capital will succeed.  According to Bloomberg, Theolia
Chief Executive Officer Marc van't Noordende said the company
plans to sell new shares at EUR1 apiece, less than the current
stock price of about EUR3.  "We are making an extremely attractive
offer to current shareholders which gives me reason to believe the
probability for success is fairly high," Bloomberg quoted Mr.
van't Noordende as saying.  Bloomberg disclosed Theolia, which
suffered from tighter project financing for the wind industry
during the recession, has announced plans to sell assets, save
costs and halt operations in some countries to regain investor
confidence.  Bloomberg said the company's restructuring proposal
includes a partial debt write-off and improved terms for share
conversion for bondholders.

                          Bankruptcy Risk

As reported by the Troubled Company Reporter-Europe on Jan. 4,
2010, Bloomberg News said more than 65% of Oceanes bondholders
agreed to the restructuring proposal.  Bloomberg noted the plan
still needs final approval at a bondholders meeting, to be held
before March 15, and is contingent on the capital increase,
targeted for April or May.  "A failure of the convertible-bond
restructuring would increase the risk of no access to financing
wind projects in development and could force the company to
consider creditor protection available under French law," Theolia,
as cited by Bloomberg, said.  The plan "should ensure both the
continuity of its operations beyond 2011 and continuation of its
new strategy."

Theolia SA (EPA:TEO) -- http://www.theolia.com/-- is a
France-based energy company that develops and manages renewable
energy sources.  It specializes in the production of electricity
using wind power, as well as in the construction of wind power
plants and turbines, based notably in France and Germany.
Additionally, the Company is engaged in non-wind turbine
activities, such as the utilization of biomass, cogeneration and
biogas techniques for the production of electricity, through its
subsidiary, THENERGO.  Theolia SA operates several subsidiaries,
including Ventura, Natenco SAS, Meastrale Green Energy and Theolia
Iberica.  The Company is operational in such countries as Germany,
Spain, Brazil, Greece, Italy, India and Morocco.


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


SCHAEFFLER GROUP: Reorganizes to Allow Outsiders to Invest
----------------------------------------------------------
Cornelius Rahn at Bloomberg News reports that Schaeffler Group
reorganized its German manufacturing business in a step toward
allowing outsiders to invest.

Bloomberg relates the company, which is trying to merge with
Continental AG, said Monday in a statement the new corporate
structure for the Schaeffler KG auto- and aerospace-component and
machinery unit takes effect Feb. 1, when the division will be
renamed Schaeffler Technologies GmbH & Co. KG.

"Step by step, we're working to give the company an organization
that makes it suitable for capital markets," Bloomberg quoted
Detlef Sieverdingbeck, a spokesman at Herzogenaurach, Germany-
based Schaeffler, as saying.  "This process should be finished by
the end of the year." He declined to comment on details.

According to Bloomberg, closely held Schaeffler is burdened with
EUR12 billion (US$17 billion) of debt from buying Continental
shares in a hostile takeover bid in 2008, before the stock dropped
in value.  Bloomberg recalls the company, owned by co-founder
Georg Schaeffler's widow Maria- Elisabeth and their son Georg,
refinanced the loans in August, agreeing with banks to change its
structure to allow others to invest in the manufacturer.

As reported by the Troubled Company Reporter-Europe on Jan. 4,
2010, The Financial Times' Daniel Schafer said that questions
remain how Schaeffler will be ever able to repay its debt.  The FT
disclosed last year Schaeffler's cashflow has only been sufficient
to cover the interest payments of the heavy debt pile.  The
Schaeffler family hopes the group will be able to pay large
dividends in a few years, which would give Schaeffler Holding the
means to bring down some of its debt, according to the FT.

                        About Schaeffler

Headquartered in Herzogenaurach, Germany, Schaeffler KG --
http://www.schaeffler.com/-- manufactures a vast array of
bearings, from cylindrical roller bearings to needle roller
bearings, used in the aerospace, automotive, machine tool, and
semiconductor industries.  Its three main brands are INA, FAG, and
LuK, and though the entities are treated separately within the
company, they also work collaboratively on specific product
development.  The company is owned by Maria-Elisabeth Schaeffler,
the widow of a co-founder, and her son, Georg F. W. Schaeffler.


* GERMANY: Shipyards Face Wave of Bankruptcies, Meyer Says
----------------------------------------------------------
Lloyd's List reports that Meyer Werft chief executive Bernhard
Meyer said German shipyards are facing a wave of bankruptcies.

"I am afraid that about half of the German shipbuilding capacities
may be lost," the report quoted Mr. Meyer as saying.


===========
G R E E C E
===========


* GREECE: Must Step Up Efforts to Tackle Deficit; Won't Default
---------------------------------------------------------------
Simone Meier and Lorenzo Totaro at Bloomberg News report that
European finance chiefs said Greece may have to step up its
efforts to tackle a national fiscal crisis that threatens to
spread to other countries across the region.

"The Greek government is aware of the magnitude of the problems
facing the country," Bloomberg quoted Luxembourg's Jean-Claude
Juncker as saying after leading a meeting of euro-area finance
ministers that discussed Greece's budget plan.  "The measures are
a step in the right direction.  We'll have to see whether they're
enough."

"The Greek plan leans heavily on the income side," Dutch Finance
Minister Wouter Bos said after Monday's meeting, according to
Bloomberg.  "It leans heavily on one-time measures," he said,
adding that the program "needs to be more substantial."

In a reported dated Jan. 15, Bloomberg News disclosed Mr. Juncker
said Greece won't default on its debt or abandon Europe's single
currency.

"Two things won't happen: Greece won't go bankrupt; but it has to
make enormous efforts," Bloomberg quoted Mr. Juncker as saying at
a press conference in Luxembourg Friday.  "The second point is
that the hypothesis that a country will leave the eurogroup or
euro zone is not a question.  It's absurd."

Bloomberg recalled Greece on Friday presented the European
Commission with a three-year budget plan that includes more than
EUR10 billion (US$14.4 billion) in deficit-reduction measures for
this year to bring down Europe's biggest budget shortfall.
Concern about the deficit led rating companies to downgrade the
country's debt last month, sparking a rout in its bonds, Bloomberg
noted.

Mr. Juncker, as cited by Bloomberg, said "If financial markets are
of the impression that Greece can tackle its budget deficit there
would also be another valuation of Greece's creditworthiness."


=============
I C E L A N D
=============


* ICELAND: Sigfusson Warns of 'No' Vote on Icesave Referendum
-------------------------------------------------------------
Meera Bhatia at Bloomberg News, citing Svenska Dagbladet, reports
that Iceland's Finance Minister Steingrimur Sigfusson warned of
the consequences of a 'no' vote in the Icesave referendum.

According to Bloomberg, Mr. Sigfusson told the newspaper the issue
was too complex to be put to popular vote and that he hoped a new
agreement could be reached through talks with Britain and the
Netherlands.

Mr. Sigfusson told the newspaper "It is unique that such a complex
question, which stirs up conflict with other countries and has to
do with complicated financial issues" be put to a referendum,
Bloomberg notes.

As reported by the Troubled Company Reporter-Europe on Jan. 18,
2010, Bloomberg News said Iceland's opposition parties aren't
likely to strike a new depositor accord with the government and
want the current bill put to a referendum that most polls show
voters will reject.

According to Bloomberg, Bjarni Benediktsson, chairman of the
opposition Independence Party that governed Iceland when its banks
collapsed more than a year ago, said in an interview he doesn't
support the current bill being cancelled at this point in time.
Mr. Benediktsson said, "At the moment, there are no new proposals
on the table on behalf of the opposition or the government."
Mr. Benediktsson also said that in order for the opposition to be
a part of any deal, "we need to see some substantial changes to
the agreement."

Bloomberg recalled President Olafur R. Grimsson on Jan. 5 blocked
the so-called Icesave depositor bill that had set out to restore
relations with the U.K. and Netherlands and keep emergency loans
flowing.  Mr. Benediktsson's party rejected the current bill,
which obliges Iceland to guarantee a US$5.5 billion loan from the
U.K. and Netherlands to cover depositor claims stemming from the
failure of Landsbanki, Bloomberg disclosed.

According to The Daily Telegraph's Rowena Mason the financial aid
for Iceland looks set to be delayed by its failure to reach a
GBP2.3 billion compensation deal with Britain and the Netherlands
over its collapsed Icesave accounts.


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


ARDEN JEWELLERS: Creditors Meeting Set for January 26
-----------------------------------------------------
A meeting of creditors of Arden Jewellers Limited will take place
at 4:00 p.m. on January 26, 2010 at:

         Tara Towers Hotel
         Merion Road
         Dublin 4
         Ireland

The registered address of the company is at:

         Unit 10
         Finglas Main Centre
         Finglas
         Dublin 11
         Ireland


AT YOUR LEISURE: Creditors Meeting Set for January 26
-----------------------------------------------------
A meeting of creditors of At Your Leisure Limited will take place
at noon on January 26, 2010 at:

         City West Hotel
         Saggart
         Co. Dublin
         Ireland

The registered address of the company is at:

         Grattan Square
         Dungarven
         Co. Waterford
         Ireland


CAPITAL PROPERTIES: Creditors Meeting Set for January 29
--------------------------------------------------------
A meeting of creditors of Capital Properties Sales & Lettings
Limited will take place at 4:30 p.m. on January 29, 2010 at:

         Suite 10
         The Mall
         Beacon Court
         Sandyford
         Dublin 18
         Ireland

The registered address of the company is at:

         9 Augnier Street
         Dublin 2
         Ireland


CELTWARD LIMITED: Creditors Meeting Set for January 29
------------------------------------------------------
A meeting of creditors of Celtward Limited will take place at
11:00 a.m. on January 29, 2010 at:

         The Georgian Business Centre
         20 Lower Baggot Street
         Dublin 2
         Ireland

The registered address of the company is at:

         4 Aston Quay
         Dublin 2
         Ireland


DRYDEN XV: Moody's Upgrades Rating on Class E Notes to 'Caa2'
-------------------------------------------------------------
Moody's Investors Service has taken these rating actions on notes
issued by Dryden XV -- Euro CLO 2006 PLC.  The Class A1, A2 and
the multi-currency revolving A3 notes remain Aaa mainly due to the
current over collateralization.

  -- EUR34M Class B Senior Floating Rate Notes due 2023,
     Downgraded to A3; previously on Mar 4, 2009 Aa2 Placed Under
     Review for Possible Downgrade

  -- EUR29M Class C Mezzanine Deferrable Interest Floating Rate
     Notes due 2023, Downgraded to Ba1; previously on Mar 18, 2009
     Downgraded to Baa3 and Remained On Review for Possible
     Downgrade

  -- EUR23M Class D Mezzanine Deferrable Interest Floating Rate
     Notes due 2023, Confirmed at B1; previously on Mar 18, 2009
     Downgraded to B1 and Remained On Review for Possible
     Downgrade

  -- EUR16.2M Class E Mezzanine Deferrable Interest Floating Rate
     Notes due 2023, Upgraded to Caa2; previously on Mar 18, 2009
     Downgraded to Caa3 and Remained On Review for Possible
     Downgrade

  -- EUR7M Class V Combination Notes due 2023, Downgraded to Ba2;
     previously on Mar 4, 2009 A3 Placed Under Review for Possible
     Downgrade

This transaction is a managed cash leveraged loan collateralized
loan obligation with exposure to predominantly European senior
secured loans, as well as some mezzanine loan exposure.

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 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 2587), an increase in the amount of defaulted
securities (currently approximately 6% of the portfolio), an
increase in the proportion of securities from issuers rated Caa1
and below (currently approximately 6% of the portfolio), and a
failure of the class E par value test.  These measures were taken
from the recent trustee report dated 03 December 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 the aforementioned stresses, key model inputs
used by Moody's in its analysis, such as par, weighted average
rating factor, and weighted average recovery rate, may be
different from trustee's reported numbers.

Moody's notes that the upgrade actions have incorporated the
aforementioned stresses as well as credit deterioration in the
underlying portfolio.  However, the actions reflect updated
analysis indicating that the impact of these factors on the
ratings of these notes is not as negative as previously assessed
during Stage I of the deal review in March 2009.  The current
conclusions stem from comprehensive deal-level analysis completed
during Stage II of the ongoing CLO surveillance review, which
included an in-depth assessment of results from Moody's
quantitative CLO rating model along with an examination of deal-
specific qualitative factors.  By way of comparison, during Stage
I Moody's took rating actions that were largely the result of a
parameter-based approach.

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.


FREE SPIRIT: Faces Wind-Up Petition From Gerard Harrahill
---------------------------------------------------------
Gerard Harrahill has filed a petition to wind up Free Spirit Hair
& Beauty Salon Limited.  The petitioner's solicitor is Frances
Cooke.

The winding-up petition will be heard on February 1, 2010.

The registered address of the company is at:

         Unit 1
         Custom House Square
         Dublin 1
         Ireland


F S CITYWEST: Faces Wind-Up Petition From Gerard Harrahill
----------------------------------------------------------
Gerard Harrahill has filed a petition to wind up F S Citywest
Limited.  The petitioner's solicitor is Frances Cooke.

The winding-up petition will be heard on February 1, 2010.

The registered address of the company is at:

         Unit 27
         Citywest Shopping Centre
         Citywest
         Dublin 24
         Ireland


F S DROGHEDA: Faces Wind-Up Petition From Gerard Harrahill
----------------------------------------------------------
Gerard Harrahill has filed a petition to wind up F S Drogheda
Limited.  The petitioner's solicitor is Frances Cooke.

The winding-up petition will be heard on February 1, 2010.

The registered address of the company is at:

         Unit 22
         Laurence Town Centre
         Drogheda
         Co. Louth
         Ireland


GLENCULLEN HOLDINGS: Posts EUR8.4MM '08 Loss; Doubt Cast on Future
------------------------------------------------------------------
Niamh Hennessy at The Irish Examiner reports that
PricewaterhouseCoopers, Glencullen Holdings' auditors, raised
doubt over the ability of the company to continue as a going
concern after posting losses of EUR8.4 million in 2008.

The company posted pre-tax losses in 2007 of EUR18.6 million, the
Irish Examiner recalls.

The Irish Examiner relates in a note dated December 22, 2009, PwC
said given the losses in what have been challenging conditions for
the company and news that the group is in negotiations for the
renewal of its financial facilities, there are indications that
"may cast significant doubt on the group's ability to continue as
a going concern".

According to the Irish Examiner, a note in the accounts said
"During 2008 the group experienced adverse trading conditions as a
consequence of the Government's implementation of a poorly
conceived revision of the VRT system which had a huge impact on
the residual values of second-hand cars."

Suzanne Lynch at The Irish Times reports the company said that
negotiations on the renewal of finance are "nearing finalization"
and that the directors are confident that these negotiations will
be successful.

As of December 31, 2008, Glencullen had net debt of EUR40.7
million, which included a EUR19 million bank loan due for
repayment within one year, an overdraft of EUR2 million and an
EUR18.3 million loan from Mr. Cullen, the Irish Times notes.

The Irish Times says the accounts show that Glencullen Holdings
has provided securities in respect of facilities to other group
companies up to the value of EUR23 million, EUR17 million of which
was borrowed as of December 31, 2008.  It has also guaranteed the
loan facilities of subsidiary companies up to a maximum of
EUR10.9 million, of which EUR4.6 million has been borrowed, the
Irish Times discloses.

Glencullen Holdings is owned by owned by motor dealer and star of
TV3's The Apprentice Bill Cullen.


KELSEY MANUFACTURING: Creditors Meeting Set for January 29
----------------------------------------------------------
A meeting of creditors of Kelsey Manufacturing Limited will take
place at 11:00 a.m. on January 29, 2010 at:

         The Rising Sun
         Main Street
         Mullinavat
         Co. Kilkenny
         Ireland

The registered address of the company is at:

         Bodal. Gowran
         Co. Kilkenny
         Ireland


MICK BRADLEY'S: Creditors Meeting Set for February 2
----------------------------------------------------
A meeting of creditors of Mick Bradley's Fascia & Soffitt &
Gutters Limited will take place at 11:30 a.m. on February 2, 2010
at:

         The Kilkenny Inn Hotel
         15-16 Vicar Street
         Kilkenny
         Ireland

The registered address of the company is at:

         7 Greenview TR
         Ireland


O'SHEA TRANSPORT: Creditors Meeting Set for January 29
------------------------------------------------------
A meeting of creditors of O'Shea Transport Limited will take place
at 10:00 a.m. on January 29, 2010 at:

         The Carrigaline Court Hotel
         Carrigaline
         Co. Cork
         Ireland

The registered address of the company is at:

         Office 7 & 8
         Second Floor
         Owenabue Mall
         Main Street
         Carrigaline
         Co. Cork
         Ireland


P.A.H. CONSTRUCTION: Creditors Meeting Set for January 29
---------------------------------------------------------
A meeting of creditors of P.A.H. Construction (Wexford) Limited
will take place at 11:00 a.m. on January 29, 2010 at:

         Whites Hotel
         Abbey Street
         Wexford
         Ireland

The registered address of the company is at:

         Littlecraigue
         Duncormik
         Co. Wexford
         Ireland


PIXELBRICK LIMITED: Creditors Meeting Set for January 29
--------------------------------------------------------
A meeting of creditors of Pixelbrick Limited will take place at
10:00 a.m. on January 29, 2010 at:

         Tara Towers Hotel
         Merrion Road
         Dublin 4
         Ireland

The registered address of the company is at:

         33 Carysford Avenue
         Blackrock
         Co. Dublin
         Ireland


SCOTTFLOORING LIMITED: Creditors Meeting Set for February 2
-----------------------------------------------------------
A meeting of creditors of Scottflooring (Goresbridge) Limited will
take place at 10:00 a.m. on February 2, 2010 at:

         The Kilkenny Inn Hotel
         15-16 Vicar Street
         Kilkenny
         Ireland

The registered address of the company is at:

         Clomomey
         Goresbridge
         Co. Kilkenny
         Ireland


SILVERHOLD LIMITED: Gilroy Gannon Files Winding-Up Petition
-----------------------------------------------------------
Gilroy Gannon has filed a petition to wind up Silverhold Limited.
The petitioner's solicitor is RDJ Glynn.

The winding-up petition will be heard on January 25, 2010.

The registered address of Silverhold Limited is at:

         The Derragarra Inn
         Butlersbridge
         Co. Cavan
         Ireland


ZOE DEVELOPMENTS: AIB Seeks to Appoint Receiver Over Properties
---------------------------------------------------------------
Mary Carolan at The Irish Times reports that the High Court's
Mr. Justice Peter Kelly has said it is "astonishing" that unpaid
loans of some EUR544 million from Allied Irish Bank to several
companies in developer Liam Carroll's troubled Zoe Developments
group were secured on what he said was generally regarded as a
"fairly fragile" form of security.

According to the report, Mr. Justice Kelly said the security was
letters of undertaking from solicitors for the Zoe companies to
hold on trust for AIB the title deeds to a large number of
properties owned by the defendants.  The report relates the judge
said such form of security was "a far cry from a legal mortgage".

The report says AIB now wants to appoint a receiver over those
properties in the first stage of a process aimed at recovering the
money owed under a facility agreement of March 2009.  The
properties are mostly located in Dublin and include both
commercial and residential developments, the report states.

AIB's application will be heard this Friday, Jan. 22, the report
notes.  The bank's action is against Danninger, Eppo Developments,
Fabrizia Developments, Oze Construction and North Quay Investments
Ltd, the report discloses.


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


ANTICHI PELLETTIERI: Still In Talks with Creditor Banks
-------------------------------------------------------
Antichi Pellettieri SpA said it's still in talks with creditor
banks on a possible debt restructuring agreement, Marco Bertacche
and Tommaso Ebhardt at Bloomberg News report, citing a statement
distributed through the Italian exchange Monday.

According to Bloomberg, the statement said the company expects
talks will be completed "in a reasonably short time".

Antichi Pellettieri SpA -- http://www.antichipellettieri.it/-- is
an Italy-based provider of leather goods.  The Company is a part
of Mariella Burani Fashion Group.  It produces apparel, handbags,
footwear and small leather goods.  The Company's brand portfolio
embraces Baldinini, Sebastian, The Saddler, Braccialini, Francesco
Biasia, Coccinelle, Mandarina Duck, Ter et Bantine, Enrico
Mandelli and Andrea Pfister.  Among the Company's licensed brands
there are Missioni, Aquascutum, Vivienne Westwood, Warner Bros,
Gherardini, AmazonLife and Yohji Yamamoto.  Antichi Pellettieri is
present mainly in Europe, but also in the United States, the
Middle and Far East.  At December 31, 2008, the Company owned 319
boutiques, of which 91 are direct ownership sale points and 228
are franchised.  Among its subsidiaries there are: MANDARINA DUCK
SpA, COCCINELLE STORE Srl, COCCINELLE STORE FRANCE SA, MD LUX SARL
and MANDARINA DUCK NETHERLANDS BV.


SEAT PAGINE: Mulls Sale of EUR650 Million in Senior Secured Debt
----------------------------------------------------------------
Jerrold Colten and Tommaso Ebhardt at Bloomberg News report that
Seat Pagine Gialle SpA said in a statement Monday that it will
sell EUR650 million in senior secured debt with expiration date of
2017.

According to Bloomberg, the statement said the bond sale, to
institutional investors, will extend the company's medium-term
debt deadline.

As reported by the Troubled Company Reporter-Europe on Jan. 18,
2010, Bloomberg News report said the company plans to sell as much
as EUR1 billion (US$1.4 billion) of senior secured bonds as part
of a debt restructuring.  Bloomberg discloses the company said in
a statement Friday the company agreed with its senior lender Royal
Bank of Scotland Group Plc to issue bonds to refinance part of its
bank borrowing.

                       About Seat Pagine Gialle

Seat Pagine Gialle SpA (PG IM) -- http://www.seat.it/-- is an
Italy-based company that operates multimedia platform for
assisting in the development of business contacts between users
and advertisers.  It is active in the sector of multimedia
profiled advertising, offering print-voice-online directories,
products for the Internet and for satellite and ortophotometric
navigation, and communication services such as one-to-one
marketing.  Its products include EuroPages, PgineBianche,
Tuttocitta and EuroCompass, among others.  Its activity is divided
into four divisions: Directories Italia, operating through, Seat
Pagine Gialle; Directories UK, through TDL Infomedia Ltd. and its
subsidiary Thomson Directories Ltd.; Directory Assistance, through
Telegate AG, Telegate Italia Srl, 11881 Nueva Informacion
Telefonica SAU, Telegate 118 000 Sarl, Telegate Media AG and
Prontoseat Srl, and Other Activitites division, through Consodata
SpA, Cipi SpA, Europages SA, Wer liefert was GmbH and Katalog
Yayin ve Tanitim Hizmetleri AS.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Dec. 7,
2009, Moody's Investors Service downgraded the Corporate Family
Rating and the Probability of Default Rating of SEAT Pagine Gialle
SpA to B2 from B1.  At the same time, Moody's downgraded the
rating on the company's EUR1.3 billion 8% senior notes due 2014
issued by Lighthouse International Company SA to Caa1 from B3.
The outlook for the ratings is negative.  The negative outlook
reflects Moody's increased concerns, in light of the limited
visibility, regarding the company's ability to comfortably remain
in compliance with its senior credit facility covenants,
particularly to December 2010.


SEAT PAGINE: Moody's Assigns (P)'B1' Rating on EUR650 Mil. Notes
----------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)B1 rating
to the proposed EUR650 million senior secured notes due 2017 to be
issued by SEAT Pagine Gialle SpA.  The new senior secured notes
will be secured by liens on essentially the same assets and shares
that secure the company's senior facilities, and will be
guaranteed on a senior basis by the Thomson Subsidiaries and
certain holding companies.  The proceeds of the issue are intended
to be used to partially refinance SEAT's senior secured credit
facilities and therefore to extend the maturity profile of its
debt.  Together with the transaction, SEAT will also be resetting
some of the covenants under its senior facilities, as agreed with
its lenders.  The assigned rating assumes that there will be no
material variations to the draft legal documentation reviewed by
Moody's.

The (P)B1 rating assigned to the proposed notes reflects their
relative ranking within SEAT's capital structure as they will rank
pari passu with the existing senior facilities and will benefit
from broadly the same security and guarantees.  Moody's notes that
the lender under the company's senior facilities will have the
sole right to instruct the security agent as regards the
enforcement of the collateral unless the amount outstanding under
such facilities is less than EUR500 million.  Nevertheless, under
the terms of the Intercreditor Agreement governed by English Law,
proceeds from the enforcement of the collateral will be shared pro
rata among its senior creditors, i.e. senior facility lenders and
senior secured noteholders.  Moody's also notes that in the event
of a material asset disposal, the proceeds are to be applied first
to prepay any indebtedness incurred under any credit agreement
(other than public indebtedness).

Moody's assigns provisional ratings when the assignment of a final
rating is subject to the fulfillment of contingencies, in this
case final documentation.  A provisional rating is denoted by
placing a (P) in front of the rating.  It is highly likely that
SEAT's rating will become definitive after all documents are
received following the issuance of the obligation.  Depending on
the issuance's ultimate size, Moody's could also change the
outlook to stable from negative, as a result of improvements in
its liquidity profile with the reduced refinancing risk while also
nevertheless taking into account the group's still challenging
operating environment due to recessionary and structural
pressures, and therefore a potential delay in the improvement of
its credit metrics.

The last rating action on SEAT was implemented on 17 November
2009, when Moody's downgraded the company's CFR to B2 from B1, and
changed the outlook to negative from stable, reflecting Moody's
increased concerns, in light of the limited visibility, regarding
the company's ability to comfortably remain in compliance with its
senior credit facility covenants, particularly to December 2010,
and its liquidity profile.

SEAT's ratings were assigned by evaluating factors Moody's believe
are relevant to the credit profile of the issuer, such as (i) the
business risk and competitive position of the company versus
others within its industry, (ii) the capital structure and
financial risk profile of the company, (iii) the projected
performance of the company over the near-to-medium term, and (iv)
management's track record and tolerance for risk.  These
attributes were compared against other issuers both within and
outside of SEAT's core industry, and Moody's believes SEAT's
ratings are comparable to those of other issuers of similar credit
risk.

Headquartered in Turin, Italy, SEAT is the leading publisher and
provider of directory services in Italy and, through its wholly-
owned subsidiary, TDL, is the number three directories publisher
in the UK.  SEAT also has a presence in Germany through Telegate,
the second-largest player in the German directory-assistance
market.


SEAT PAGINEGIALLE: S&P Assigns 'B+' Rating on EUR650 Mil. Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it has assigned its
'B+' debt rating to the proposed EUR650 million senior secured
notes to be issued by Italy-based classified directories publisher
SEAT PagineGialle SpA (B/Negative/--).

At the same time, S&P assigned a recovery rating of '2' to this
debt, indicating S&P's expectation of substantial (70%-90%)
recovery for creditors in the event of a payment default.  S&P
anticipate that the new notes will share the same guarantees and
security package granted to the existing secured credit facilities
at SEAT level and will rank pari passu with those secured
facilities.

The issue rating on the EUR1.3 billion notes due 2014, issued by
Luxembourg-based Lighthouse International Co. S.A. and guaranteed
by SEAT, remains at 'B', in line with the corporate credit rating.
S&P has revised the recovery rating on this debt to '4' from '3',
indicating S&P's expectation of average (30%-50%) recovery in the
event of a payment default.

The rating on the new notes is one notch higher than S&P's
corporate credit rating on SEAT.  It is based on preliminary
information and is subject to S&P's satisfactory review of final
documentation.  In the event of any changes to the terms of the
bond, the recovery and issue ratings might be subject to further
review.  Importantly, it is S&P's understanding that the net
proceeds from the bond issuance will be fully used to repay a
proportion of SEAT's secured bank facilities.

The revised recovery rating on the EUR1.3 billion notes reflects a
lower estimated enterprise value and an increased amount of
projected senior debt outstanding at S&P's hypothetical point of
default.

                         Recovery Analysis

S&P has valued the company on a going-concern basis.

Given SEAT's leading market position in the Italian classified
directory market and specific characteristics such as relatively
high barriers to entry, a well-diversified customer base, and a
high cash conversion, S&P believes that a default would most
likely result from excessive leverage and inability to refinance
the capital structure at maturity of the senior debt instruments
in 2012-2013 as a result of assumed operating underperformance.
S&P take into account the structural challenges that the group is
facing in the classified directory business, on top of the
cyclical pressures due to the recessionary environment.

For recovery purposes, the proposed bond issuance might have
important effects in S&P's hypothetical default assumptions.

Under the existing capital structure, the company faces debt
amortization under the term loan A totaling about EUR950 million
up to 2012.  Under S&P's existing default scenario, S&P had
assumed that this debt was mainly repaid though available cash on
balance sheet and free cash flow generation.  Under the proposed
amount of bond issuance, the debt amortization of the TLA up to
2012 would be reduced to about EUR280 million.

The reduced amount of committed repayments, due to the deferral of
a significant proportion of amortizing debt, means that the
business might need to deteriorate further before reaching a
payment default.  This would lead to lower overall enterprise
value at S&P's hypothetical default.  At the hypothetical point of
default, under S&P's revised scenario, S&P values the group at
about EUR2.4 billion (compared with EUR2.6 billion in its previous
analysis).  Moreover, following the refinancing of a proportion of
outstanding credit facilities (the TLA in particular) and,
therefore, the deferral of a significant proportion of amortizing
debt (only partially offset by a reduced projected term loan B
outstanding), S&P's estimation of senior liabilities outstanding
at default would most likely increase.  Both these aspects lead to
a reduced numerical coverage for the rated debt instruments.

The recovery prospects for SEAT's senior secured debt instruments
(both credit facilities and notes) reflect the estimated value
available and accessible to the respective creditors, and the
likelihood of insolvency proceedings being adversely influenced by
SEAT being domiciled in Italy.  The recovery rating on the senior
secured debt also reflects the fairly comprehensive security
package, including first-ranking pledge over the material
intellectual property; and share pledges from group operating
companies.  The share pledges are limited to 61.5% of the listed
company, SEAT PagineGialle SpA, due to limited ownership.

The average recovery prospects estimated for the junior lien
bondholders, which benefit from second-ranking share pledges in
SEAT (limited to 61.5% of the equity), also reflect the downward
revised numerical coverage.

S&P anticipates that the secured loans and proposed secured notes
will have different terms, largely reflecting the typical
provisions of each debt instrument.  For example, the existing
loans have maintenance covenants, limitations of additional
indebtedness, and mandatory prepayment provisions from excess cash
flow.  The proposed notes are likely to include incurrence
covenants only and to have no cash flow sweep provisions.

Moreover, unless remaining outstanding credit facilities are below
certain limits, S&P understands that senior secured bondholders
will not be part of the instructing group for enforcement
proceedings, and therefore would not control enforcement action
under the security documents.

In broad terms, S&P believes that these provisions provide
stronger protection for the loanholders than noteholders.

S&P also understands that the company might be allowed additional
issuance of senior secured bonds up to the cumulative limit of
EUR1 billion.  The amended loan documentation indicates that the
proceeds of any additional issuance would have to be applied in
prepayment of outstanding credit facilities.  Hypothetically, if
the group's bank debt were to be fully replaced with bond debt,
the remaining documentary protection and covenant package under
the notes would inevitably be weaker, loosening creditors'
control.  This could extend S&P's theoretical path to default, as
the business could deteriorate further before reaching payment
default, leading to a lower stressed valuation and potentially
reducing the recovery outcome.

                           Ratings List

                            New Rating

                      SEAT PagineGialle SpA

        Proposed EUR650 mil sr secd notes               B+
         Recovery rating                                2

                     Recovery Rating Revised

                 Lighthouse International Co. S.A.

                                                  To         From
                                                  --         ----
EUR1.3 bil callable second lien bonds due 2013*  B          B
  Recovery Rating                                 4          3

              * Guaranteed by SEAT PagineGialle SpA


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


KAZAKHTELECOM JSC: Fitch Gives Stable Outlook; Keeps 'BB' Rating
----------------------------------------------------------------
Fitch Ratings has revised JSC Kazakhtelecom's Outlook to Stable
from Negative.  Fitch has also affirmed Kaztel's Long-term foreign
and local currency Issuer Default ratings at 'BB', Short-term
foreign currency IDR at 'B' and National Long-term rating at
'A(kaz)'.

The Outlook revision reflects Kaztel's reduced refinancing risk
following repayment of its USD350m syndicated loan due in July
2010.  The loan was refinanced with new long-term (five-10 years)
borrowings in late 2009.  Fitch currently views the company's
refinancing risk as moderate since the share of short-term debt in
its portfolio is now estimated to be below 25%.  Fitch believes
that Kaztel now has sufficient liquidity to cover its short-term
debt in full.

The Outlook revision also factors in the expected sale of Kaztel's
51% stake in its mobile subsidiary, Mobile Telecom-Service LLP, to
Tele2 announced in December 2009.  Fitch views the disposal as
positive for Kaztel's credit profile, as MTS has so far been
unprofitable, is capex-intensive and highly leveraged.  Fitch
estimates that the MTS's divestment will enable Kaztel to increase
its EBITDA margin by around four percentage points and reduce
leverage by 0.5x.  In addition, the disposal will generate some
USD76m in cash for Kaztel, increasing the company's liquidity.

At the same time, Kaztel's ratings continue to be constrained by
substantial foreign currency risk, as nearly all of its debt is
denominated in or linked to foreign currencies while the company's
revenue is predominantly in tenge.

Fitch further notes that Kaztel's cash is mainly deposited with
Kazakh banks that have substantially lower credit ratings than
Kaztel.  Although the risk that Kaztel's cash would be blocked has
reduced with the improvement of the banks' liquidity, Kaztel's
potential access to this cash remains a concern.  As a result, in
assessing Kaztel's credit profile, Fitch places greater emphasis
on Kaztel's gross rather than net leverage.


===================
L U X E M B O U R G
===================


EUROPEAN ENHANCED: Moody's Cuts Rtngs on Classes M & O Notes to B1
------------------------------------------------------------------
Moody's Investors Service has taken these rating actions on notes
issued by European Enhanced Loan Fund S.A.  Given the current over
collateralization and that this is a relatively well-performing
CLO, classes A1, A2 and A3A notes remain Aaa.

  -- Class A-3B Secured Floating Rate Notes, due 2022, Confirmed
     at Aa1; previously on Mar 4, 2009 Aa1 Placed Under Review for
     Possible Downgrade

  -- Class B-1 Secured Floating Rate Notes, due 2022, Downgraded
     to A1; previously on Mar 4, 2009 Aa2 Placed Under Review for
     Possible Downgrade

  -- Class B-2 Secured Fixed Rate Notes, due 2022, Downgraded to
     A1; previously on Mar 4, 2009 Aa2 Placed Under Review for
     Possible Downgrade

  -- Class C Deferrable Secured Floating Rate Notes, due 2022,
     Downgraded to Ba1; previously on Mar 19, 2009 Downgraded to
     Baa2 and Remained On Review for Possible Downgrade

  -- Class D-1 Deferrable Mezzanine Secured Floating Rate Notes,
     due 2022, Confirmed at B1; previously on Mar 19, 2009
     Downgraded to B1 and Remained On Review for Possible
     Downgrade

  -- Class D-2 Deferrable Mezzanine Secured Floating Rate Notes,
     due 2022, Confirmed at B1; previously on Mar 19, 2009
     Downgraded to B1 and Remained On Review for Possible
     Downgrade

  -- Class D-3 Deferrable Mezzanine Secured Floating Rate Notes,
     due 2022, Confirmed at B1; previously on Mar 19, 2009
     Downgraded to B1 and Remained On Review for Possible
     Downgrade

  -- Class D-4 Deferrable Mezzanine Secured Floating Rate Notes,
     due 2022, Confirmed at B1; previously on Mar 19, 2009
     Downgraded to B1 and Remained On Review for Possible
     Downgrade

  -- Class E-1 Deferrable Mezzanine Secured Floating Rate Notes,
     due 2022, Confirmed at B3; previously on Mar 19, 2009
     Downgraded to B3 and Remained On Review for Possible
     Downgrade

  -- Class E-2 Deferrable Mezzanine Secured Floating Rate Notes,
     due 2022, Confirmed at B3; previously on Mar 19, 2009
     Downgraded to B3 and Remained On Review for Possible
     Downgrade

  -- Class E-3 Deferrable Mezzanine Secured Floating Rate Notes,
     due 2022, Confirmed at B3; previously on Mar 19, 2009
     Downgraded to B3 and Remained On Review for Possible
     Downgrade

  -- Class M Combination Notes, due 2022, Downgraded to B1;
     previously on Mar 4, 2009 Baa3 Placed Under Review for
     Possible Downgrade

  -- Class O Combination Notes, due 2022, Downgraded to B1;
     previously on Mar 4, 2009 Baa3 Placed Under Review for
     Possible Downgrade

This transaction is a managed cash leveraged loan collateralized
loan obligation with exposure to predominantly European senior
secured loans, as well as 7.2% mezzanine and second lien loan
exposure.

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 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 2517) and an increase in the amount of defaulted
securities (currently 1.3% of the portfolio).  These measures were
taken from the recent trustee report dated December 4, 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, specific documentation features
and the collateral manager's track record.  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.


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


FAXTOR ABS: Moody's Affirms Ba1 Ratings on Three Classes of Notes
-----------------------------------------------------------------
Moody's Investors Service has determined that the partial
repurchase by Faxtor ABS 2004-1 B.V. of part of its EUR264M Class
A-1 Floating Rate Notes due 2094 as of January 12, 2010, will not
in and of itself and at this time cause the current Moody's
ratings of the Notes issued by the Issuer to be reduced or
withdrawn.  Moody's does not express an opinion as to whether the
amendment could have other, non credit-related effects.

  -- EUR264M Class A-1 Floating Rate Notes, Affirmed at Aa2;
     previously on Apr 23, 2009 Confirmed at Aa2

  -- EUR35M Class A-2 Floating Rate Notes, Affirmed at Aa3;
     previously on Apr 23, 2009 Confirmed at Aa3

  -- EUR25M Class A-3 Floating Rate Notes, Affirmed at A3;
     previously on Apr 23, 2009 Downgraded to A3

  -- EUR12M Class BE Floating Rate Notes, Affirmed at Ba1;
     previously on Apr 23, 2009 Confirmed at Ba1

  -- EUR5M Class BF Fixed Rate Notes, Affirmed at Ba1; previously
     on Apr 23, 2009 Confirmed at Ba1

  -- EUR8M Class S Combination Notes, Affirmed at Ba1; previously
     on Apr 23, 2009 Confirmed at Ba1

On January 18, 2010, EUR27,500,000 of Class A-1 Notes have been
repurchased by the Issuer at an aggregate price of EUR22,403,000.
This repurchase has been effected using principal proceeds in the
principal account of the Issuer received from amortizing portfolio
assets.  The outstanding notional amount of the Class A-1 Notes
after such repurchase is EUR236,500,000.  The repurchase occurs in
connection with the tender offer announced by the Issuer on 15
December 2009.

This transaction is a collateralized debt obligation related to a
Euro 349,000,000 portfolio comprised primarily of European
mezzanine asset-backed securities.  The portfolio is dynamic and
IMC Asset Management B.V. provides portfolio management services
to Faxtor ABS 2004-1 B.V. in respect thereof.  The Reinvestment
Period for this transaction ended in July 2009.


=============
R O M A N I A
=============


REALITATEA MEDIA: Three Companies File Insolvency Requests
----------------------------------------------------------
Actmedia reports that Mediafax agency, "R" society and GCT General
Clima Therm want Realitatea Media SA (Realitatea TV) declared as
insolvent.

The report says a trial will be held Feb. 23 on Mediafax's
request.

According to Actmedia, Mediafax director Cristian Dimitriu, as
quoted by EvZ, said that "we decided to make recourse to the
insolvency file as the last legal stage for the recovery of debts
Realitatea Media has towards us, as did others who have to recover
money from this firm.  We have already covered all legal stages,
including the solution of the case by amiable ways."

According to Actmedia, EvZ disclosed that sources said the Company
owes roughly EUR50,000 "divided among three companies the trust
operates with: Realitatea Media, Poligraf SRL and Catavencu SA".

Realitatea TV is a Romanian news television network.  The channel
is distributed by many cable operators in Romania and Moldova.
Realitatea TV is also available via the DTH platform Digi TV in
Serbia, in the Romanian language extra package.


* ROMANIA: May Get Delayed IMF Tranche; Passes 2010 Budget Plan
---------------------------------------------------------------
Adam Brown and Irina Savu at Bloomberg News report that Romania's
blocked EUR20-billion (US$29 billion) bailout payments may resume
next month with EUR3.3 billion in transfers after lawmakers passed
an austerity budget that cuts staff, freezes wages and trims
investment.

According to Bloomberg, Tonny Lybek, the International Monetary
Fund representative to Romania, said in an e-mail Friday teams
from the IMF and the European Union will review the bailout
agreement between today, Jan. 20 and Jan. 27.  The review will
cover Romania's compliance with 2009 conditions plus the 2010
budget, Bloomberg says.

"I am convinced that we met the conditions for 2009 and that it
will allow us to get the IMF tranche and the European Union
tranche," Bloomberg quoted Finance Minister Sebastian Vladescu as
saying in Bucharest Thursday night after the budget passed.

Bloomberg relates Mr. Lybek also said the IMF may decide to send
the delayed tranche of EURR1.5 billion (US$2.16 billion) plus a
tranche of EUR800 million that was scheduled for March.  The EU
said in a news release Friday that it will decide whether to send
a delayed tranche of EUR1 billion, Bloomberg notes.

Bloomberg recalls the package, including money from the IMF, EU,
World Bank and others, was frozen on Nov. 6 after the government
collapsed because of infighting.

Standard & Poor's ratings company said on Jan. 13 that passage of
the budget could trigger an increase in Romania's credit rating
outlook, Bloomberg recounts.  The EU's second-poorest member is
rated BB+ at S&P, the highest junk grade, with a negative outlook.


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


BANK SOYUZ: Former Owner to Buy Back Half of Business
-----------------------------------------------------
Paul Abelsky at Bloomberg News reports that the Russian central
bank said that Oleg Deripaska's insurer, Ingosstrakh, will buy
half of Bank Soyuz, the failed lender formerly owned by the
billionaire, from an affiliate of OAO Gazprom.

According to Bloomberg, Bank Rossii said in an e-mailed statement
Monday the federal Deposit Insurance Agency will buy 50% plus one
share in Bank Soyuz and Ingosstrakh will get the rest for a total
of RUR5 billion (US$169 million).

JSCB SOYUZ (OJSC) -- http://www.banksoyuz.ru/-- is a universal
commercial bank, founded in 1993.


=========
S P A I N
=========


CABLEUROPA SAU: S&P Puts 'CCC+' Rating on CreditWatch Developing
----------------------------------------------------------------
Standard & Poor's Ratings Services said it placed its 'CCC+' long-
term corporate credit rating on Spanish cable operator Cableuropa
S.A.U. on CreditWatch with developing implications.

At the same time, S&P placed the 'CCC-' rating on the senior
unsecured debt issued by financing vehicles ONO Finance PLC and
ONO Finance II PLC and guaranteed by Cableuropa on CreditWatch
with developing implications.  The recovery rating on this debt is
unchanged at '6', indicating S&P's expectation of negligible (0%-
10%) recovery in the event of a payment default.

"The CreditWatch placement follows Cableuropa's announced plans to
refinance a large part of its debt and to raise funds from
shareholders," said Standard & Poor's credit analyst Patrice
Cochelin.

The company has indicated it scheduled a meeting in Madrid on
January 19, 2010, in which it will seek lender approval to roll
over exposure under tranches A and B of its credit facility (which
together total about EUR1.8 billion) into a new 'forward-start
facility' with a bullet maturity in June 2013.  As tranches A & B
amortize steeply between 2010 and 2012, S&P believes that the FSF
could meaningfully benefit Cableuropa's near-term liquidity.

In addition, the company has stated it is seeking shareholder
approval to issue EUR200 million in new pay-in-kind shareholder
notes, including a EUR125 million injection on day one and
EUR75 million to be potentially unlocked from an escrow account
subject to liquidity triggers.

"We believe that these new funds, while modest relative to
Cableuropa's debt burden, would give a positive sign from a
financial policy standpoint, and would help Cableuropa mitigate
the negative impact on liquidity of the contemplated refinancing
in terms of upfront fees and additional interest costs," said Mr.
Cochelin.

Finally, S&P understands that lenders will be asked to approve a
relaxation in the bank debt's financial covenants, which in S&P's
view should reduce the risks of a breach in 2010, and increase
Cableuropa's headroom for potential further refinancing.

On Sept. 30, 2009, Grupo Corporativo Ono S.A., the ultimate parent
company of Cableuropa S.A.U., had EUR4.2 billion of gross debt on
balance sheet, including a fully drawn EUR3.5 billion senior
secured credit facility, and EUR450 million of senior unsecured
notes.

S&P plans to resolve the CreditWatch placement in the coming
months.  In particular, S&P will factor in the results of the bank
consent solicitation and shareholder approval.

If these are forthcoming under the terms recently outlined by
Cableuropa, and subject to a detailed review of draft
documentation, S&P believes that potential ratings upside could
increase.  In a first step, pending S&P's review of fourth-quarter
2009 results, S&P could revise the CreditWatch implications to
positive from developing.  This would reflect S&P's view that the
main near-term liquidity concerns -- 2010 debt amortization and
covenant headroom -- would have been satisfactorily addressed.
Based on a very preliminary assessment of the refinancing's
benefits, S&P believes that the rating could then rapidly return
to the 'B' category.

If, however, Cableuropa fails to refinance in the near term, S&P
could rapidly downgrade the company to the bottom of the 'CCC'
category or to the 'CC' category, given S&P's assessment of
Cableuropa's very weak liquidity.


FONCAIXA FTGENCAT: Moody's Cuts Rating on Class D Notes to 'B3'
---------------------------------------------------------------
Moody's Investors Service has taken these actions on the long-term
credit rating of these notes issued by Foncaixa Ftgencat 4, FTA:

  -- class A(G) notes, Confirmed at Aaa, previously placed under
     review for downgrade on 23 March 2009

  -- class B notes, Confirmed at A2, previously placed under
     review for downgrade on 23 March 2009

  -- class C notes, Downgraded to Ba1, previously Baa2 placed
     under review for downgrade on 23 March 2009

  -- class D notes, Downgraded to B3, previously Ba1 placed under
     review for downgrade on 23 March 2009

Moody's initially assigned definitive ratings on July 17, 2007.
The rating action concludes the rating review resulting from
Moody's revision of its methodology for granular SME portfolios in
Europe, Middle East and Africa.  This revised methodology was
introduced on March 17, 2009 and the affected transactions had
been subsequently placed on review for downgrade on March 23,
2009.

As a result of its revised methodology, Moody's has reviewed its
assumptions for Foncaixa Ftgencat 4 collateral portfolio, taking
into account anticipation of performance deterioration in the
current down cycle, and the exposure of the transaction to the
real estate sector (either through security in the form of a
mortgage or debtors operating in these markets).  The
deterioration of the Spanish economy has been reflected in Moody's
negative sector outlook on Spanish SME securitization transactions
("EMEA ABS, CMBS & RMBS Asset Performance Outlooks", published in
July 2009).  To date, this transaction has been performing better
than the Spanish SME index.  As of December 2009, the outstanding
90+ delinquency rate is at 0.91% of current balance and the
cumulative defaults (more than 12 months in delinquencies) stand
at 0.42% of original balance.  At end of November 2009 the reserve
fund was fully funded at its target level.

As a result of the above, Moody's has revised its assumption of
the default probability of the SME debtors to an equivalent rating
in the single B-range for the debtors operating in the real estate
sector, and in the low Ba-range for the non-real-estate debtors.
Additionally, loans in arrears are notched down depending on the
length of time the loans have been in arrears, and performing
loans not in building and real estate sector with relatively long
seasoning are notched up depending on their actual seasoning.

At the same time Moody's estimated the remaining weighted average
life of the portfolio equal to 5.7 years.  As a consequence, these
revised assumptions have translated into an increase of the
cumulative mean default assumption of 6.85% of the current
outstanding portfolio amount When converting this number into a
cumulative mean default rate of original portfolio balance, the
revised expected cumulative default rate is 4.3% compared to an
initial assumption of 2.9% at closing.  Given the high granularity
of the outstanding portfolio (effective number of borrowers is
1,438 as of November 2009) and the lack of any major sector
concentrations, Moody's applied a normal inverse distribution to
derive the probabilities of its default scenarios and reduced the
original volatility of 60% to 50%.  Stochastic recoveries were
modeled assuming a 48% mean recovery rate and a 20% standard
deviation.  This compares to an initial assumption at closing of
45% fixed recovery rate.  This relative increase in the recovery
rate is mainly owed to the high percentage of mortgage securities
(mainly commercial) backing the securitized pool.  The constant
prepayment rate Moody's used in its cash flow model was decreased
to 5% and aligned to the average CPR observed so far.  This
compares to 15% assumed at close.  Moody's tested various
sensitivities around these assumptions in order to determine its
final view on the ratings.

In summary Moody's concluded that the negative effects of the
revised default and remaining weighted average life assumptions
could partly be offset by the slight increase in credit
enhancement, the lowering in Moody's volatility assumption and the
increased recovery rate expectations for the outstanding A(G) and
B notes but not for the C and D notes.

The class A(G) notes benefit from a guarantee from the Generalitat
de Catalunya (A1) for interest and principal payments.  Moody's
has determined that the expected loss associated with class A(G)
without giving benefit to the Generalitat de Catalunya guarantee
is consistent with a Aaa rating.

Foncaixa Ftgencat 4, FTA is a securitization fund, which purchased
a pool of loans granted to Spanish SMEs and individuals originated
by Caja de Ahorros y Pensiones de Barcelona ("La Caixa").  In
October 2007 the portfolio consisted of 14,258 loans and 12,251
debtors.  The loans were originated between 1988 and 2006, with a
weighted average seasoning of 2.6 years and a weighted average
remaining term of 13.7 years.  As of November 2009 the outstanding
portfolio counted 6,414 loans with 5,726 debtors.  The weighted
average seasoning was calculated at 6 years with a weighted
average remaining term of 14.6 years.  Geographically the pool was
and still is fully concentrated in Catalonia.  At close the
concentrations in the building and real estate sector equaled to
29% of current portfolio amount, which is lower than the sector-
average concentration in the SME ABS portfolios.  In the
November 2009 portfolio this percentage made up approximately 20%.
The pool factor is 53% as of November 2009.

Moody's ratings address the expected loss posed to investors by
the legal final maturity of the notes.  Moody's ratings address
only the credit risks associated with the transaction.  Other non-
credit risks have not been addressed, but may have a significant
effect on yield to investors.


FTPYME BANCAJA: Moody's Lowers Rating on Class C Notes to 'B2'
--------------------------------------------------------------
Moody's Investors Service has taken these rating actions on the
long-term credit ratings of these notes issued by FTPYME BANCAJA
2, FTA:

  -- EUR 12.1 million Class B: Confirmed at A2; previously on
     March 23 2009 placed under review for possible downgrade.

  -- EUR 4.4 million Class C: Downgraded to B2 from Baa2;
     previously on March 23 2009 placed under review for possible
     downgrade.

Moody's initially assigned definitive ratings in September 2003.

The rating action concludes the review for downgrade which was
initiated on March 23, 2009 as a result of Moody's revision of its
methodology for SME granular portfolios in EMEA (published on
March 17, 2009).

As a result of its revised methodology, Moody's has reviewed its
assumptions for the collateral portfolio of FTPYME BANCAJA 2, FTA,
taking into account anticipation of performance deterioration of
the pool in the current down cycle and the exposure of the
transaction to the real estate sector (either through security in
the form of a mortgage or debtors operating in the real estate
sector).  The deterioration of the Spanish economy has been
reflected in Moody's negative sector outlook for the Spanish SME
securitization transactions.  Since January 2009, this transaction
has been performing somewhat worse than the Spanish SME index
published by Moody's ("Spanish SME Q3 2009 Indices", November
2009).  In particular, cumulative 90 days delinquencies since
closing were at 2.7% of original pool balance as of November 2009.

As a result of the above, Moody's has revised its assumption of
the default probability of the SME debtors to an equivalent rating
in the single B-range for the debtors operating in the real estate
sector, and in the Ba-range for the non-real-estate debtors.
Additionally, loans in arrears are notched down depending on their
delinquency status, and performing loans not in the building and
real estate sector with relatively long seasoning are notched up
depending on their actual seasoning.

At the same time, Moody's estimated the remaining weighted-average
life of the portfolio to 4.27 years.  As a consequence, these
revised assumptions have translated into a cumulative mean default
assumption for this transaction of 15.9% of the current portfolio
balance (corresponding to 4.74% of the original pool balance).
Moody's original mean default assumption was 2.25% of original
portfolio balance, with a coefficient of variation of 55%.
Because of the relatively low effective number of borrowers in the
portfolio (257), Moody's used a Monte Carlo simulation to
determine the probability function of the defaults with a
resulting coefficient of variation of 58%.  The average recovery
rate assumption was updated at 70% (stochastic recovery rate)
compared with 35% assumed at closing taking into account the
actual recoveries observed so far in the transaction.  The
prepayment rate is assumed to be 5%, which is comparable to
recently observed levels for CPR values.

In summary, Moody's concluded that the negative effects of the
revised default assumptions were not fully offset by the increased
credit support available for the outstanding Class C notes.

The Class A3(G) notes benefit from a guarantee from the Kingdom of
Spain (Aaa) for interest and principal payments.  Moody's has
determined that the expected loss associated with Class A3(G)
without the Kingdom of Spain guarantee, which was consistent with
Aaa at closing, would still be consistent with a Aaa rating.

FTPYME BANCAJA 2, FTA is a securitization fund, which purchased a
pool of loans granted to Spanish SMEs originated by Caja de
Ahorros de Valencia, Castellon y Alicante (Bancaja, A3/P-2).  In
September 2003, the portfolio consisted of 3,441 loans.  The loans
were originated between 1994 and 2003, with a weighted average
seasoning of 1.5 years and a weighted average remaining term of
7.54 years.  Moody's note that the concentration in the "Building
and Real Estate sector" has increased from 37.5% of the portfolio
at closing to 51.5% of the portfolio as of November 2009, while
the number of borrower stood at 789.  Geographically, the
composition of the pool has changed little since closing, with
concentrations in the regions of Valencia (56.9%), Catalonia
(14.6%) and Madrid (11.1%).

Moody's ratings address the expected loss posed to investors by
the legal final maturity of the notes.  Moody's ratings address
only the credit risks associated with the transaction.  Other non-
credit risks have not been addressed, but may have a significant
effect on yield to investors.

Moody's is closely monitoring the transaction.


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


ABERDEEN SCOTCH: Put Into Liquidation; Begbies Traynor Appointed
----------------------------------------------------------------
Aberdeen Scotch Meat has been put into liquidation, meatinfo.co.uk
reports.

According to the report, the collapse of the Swallow hotel chain
left the business with a bad debt of GBP330,000, leading to the
liquidation and loss of 34 jobs.

Ken Pattullo and Scott McGregor, of Aberdeen-based Begbies
Traynor, have been appointed joint liquidators, the report
relates.

Based in Inverurie, Aberdeen Scotch Meat supplies meat to the
catering trade.  The company is a subsidiary of the GBP30
million-turnover Mathers Group.


ARTISAN HOLDINGS: To Renegotiate Facilities of Three Subsidiaries
-----------------------------------------------------------------
Simon Binns at Crain's Manchester Business reports that Artisan
Holdings Ltd. has refinanced "the majority" of its banking
facilities with Barclays during its most recent financial year.

The report says the company still has to renegotiate facilities
held by three subsidiaries -- Artisan H (Kings Waterfront) Ltd.,
Artisan Regeneration and Artisan H Ltd. -- which all expire in
2010 and for which the parent company acts as guarantor.

According to the report, a note to accounts for the year to June
30, 2008, said negotiations with the banks for the three
subsidiaries will begin "in due course" although director and
owner Carol Ainscow may decide to look elsewhere if the firm
cannot agree terms on new facilities.  The note added that if
existing arrangements are not renewed and new funding cannot be
found, the three companies would not have enough money to enable
them to continue, and the parent company would not have sufficient
funds to cover their liabilities, the report discloses.

The company's auditors, Ernst & Young, said the possible funding
shortfalls presented a material uncertainty over the company's
ability to continue as a going concern, the report notes.

The accounts show that Artisan Holdings managed to bank a
GBP14.4 million pre-tax profit during the year, despite the
depressed property market, the report states.

Artisan Holdings Ltd. is a property developer based in Manchester.


BRITISH AIRWAYS: To Retrain Staff; Unite Plans New Strike Ballot
----------------------------------------------------------------
Philip Pank at The Times reports that British Airways plc is
asking its ground staff to retrain as cabin crew as the airline
faces the threat of a walkout that could ruin Easter holidays.

According to the report, check-in agents, baggage handlers or
back-room staff could be drafted in to serve the drinks after
cabin crew union leaders announced plans for a new strike ballot.

The report says the plea, though unusual, is likely to be legal if
the stand-ins are given accredited training.

The report relates Unite says that it will re-ballot 13,000 cabin
crew because two weeks of talks have failed to produce an
agreement.  The ballot, to open next Monday, will not cite a
specific grievance but simply ask staff if they are prepared to
strike, the report discloses.

It is expected to take four weeks to ballot all BA cabin crew, the
report notes.  In the event of a "yes" vote, the union must
provide one week's notice of its intention to strike, the report
states.  Any action must be held within 28 days, the report says.

"We have been engaged in intensive discussions with the company
over the last few days, but unfortunately we have not been able to
secure an agreement.  We therefore have to honor our commitment to
give our members the voice they were denied by the court before
Christmas, and hold a fresh ballot," Len McCluskey, assistant
general secretary of Unite as saying.

The report recalls in December, a High Court judge granted the
emergency injunction against the 12-day stoppage because Unite
included in the ballot cabin crew who had taken voluntary
redundancy.

The anger of cabin crew members has been stoked by plans to cut
the pay and conditions offered to new staff, the report notes.

The airline, which fears a GBP1 billion fall in revenue this year,
is determined to cut GBP140 million from its annual staff budget
after being hit by a sharp rise in the price of fuel and fewer
premium passengers during the recession, the report says.  The
airline suffered losses of GBP400 million last year and lost money
in the key summer months of 2009, the report recounts.

                      About British Airways

Headquartered in Harmondsworth, England, British Airways Plc,
along with its subsidiaries, (LON:BAY) -- http://www.ba.com/-- is
engaged in the operation of international and domestic scheduled
air services for the carriage of passengers, freight and mail and
the provision of ancillary services.  The Company's principal
place of business is Heathrow.  It also operates a worldwide air
cargo business, in conjunction with its scheduled passenger
services.  The Company operates international scheduled airline
route networks together with its codeshare and franchise partners,
and flies to more than 300 destinations worldwide.  During the
fiscal year ended March 31, 2009 (fiscal 2009), the Company
carried more than 33 million passengers.  It carried 777,000 tons
of cargo to destinations in Europe, the Americas and throughout
the world.  In July 2008, the Company's subsidiary, BA European
Limited (trading as OpenSkies), acquired the French airline,
L'Avion.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on Nov. 12,
2009, Moody's placed the Ba3 Corporate Family and Probability of
Default Ratings of British Airways plc and the senior unsecured
and subordinate ratings of B1 and B2 under review for possible
downgrade.


DSG INTERNATIONAL: Fitch Gives Stable Outlook; Keeps 'BB-' Rating
-----------------------------------------------------------------
Fitch Ratings has revised UK-based electrical retailer DSG
international Plc's Outlook to Stable from Negative.  The agency
has affirmed DSG's Long-term and Short-term Issuer Default Ratings
at 'B', respectively, its senior unsecured bank facility at 'BB-'
with a Recovery Rating of 'RR2', and senior unsecured bond at 'B+'
with a Recovery Rating of 'RR3'.

The Outlook revision reflects DSG's better-than-expected sales
performance with group like-for-like sales increasing 8% in the 12
weeks to January 9, 2010 (Christmas trading results) and turning
positive for the first time since 2006.  The sales performance
reflects the benefit of the actions taken by the company to
revitalize the business as part of its "Renewal & Transformation"
plan launched since early 2008.  Stores representing 35% of UK
sales volume had been reformatted by the peak Christmas period in
2009.  At the same time, near-term liquidity pressures from late
2008 to mid-2009 have eased as credit insurers' and suppliers'
confidence were restored following the company's equity placing
and rights issue which raised GBP311 million in May 2009.  DSG
also renegotiated its existing GBP400 million revolving credit
facility and related financial covenants, improving covenant
headroom.

Although DSG announced that gross margins for the group were down
0.8% year-on-year during the Christmas trading period, the company
has also indicated that it is still on track to deliver
GBP50 million of cost savings for the current financial year
ending May 2010 as part of the GBP200 million four-year cost
saving program.  As such, Fitch expects EBIT margins to improve to
above 1% in FY10 from 0.9% in FY09.  Fitch also expects DSG's
lease-adjusted net debt/EBITDAR to improve to the mid-5x at FYE10
compared with 6.1x at FYE09, largely due to a normalization of the
working capital position and, to a lesser extent, due to better-
than-expected sales and profitability during the 2009 Christmas
period.  DSG's liquidity is adequate with a cash balance of
GBP212.7 million (excluding restricted cash for customer support
agreement) at end-H110 and access to a GBP400 million RCF which is
sufficient to cover its peak usage throughout the year.

The Recovery Ratings for the senior unsecured bank debt and the
senior unsecured bond differ because of the stronger guarantee
package given to the banks.  Fitch's recovery analysis indicates a
100% recovery for the bank debt in a distressed scenario, which
would equate to a Recovery Rating of 'RR1'.  However, this was
notched down to a Recovery Rating of 'RR2' equating to a 'BB-'
rating, given that the guarantee provided to the banks is weaker
than a full asset pledge.  Fitch estimates recovery on the bond in
a distressed scenario of 51%-70%, equating to a Recovery Rating of
'RR3' and a 'B+' rating on the bond.

The company's ratings continue to reflect its leading positions in
the UK consumer electronics market and the Nordic, Greek and
European online consumer electronics markets.


GALA: Sr. Lenders In Advanced Talks with Mezzanine Debt Holders
---------------------------------------------------------------
Dominic Walsh and Helen Power at The Times report that Gala
Coral's senior lenders -- led by Royal Bank of Scotland, Lloyds
Banking Group and Alcentra -- are in advanced negotiations with
the holders of its GBP540 million of mezzanine debt in a process
that could lead to the debt being converted into equity.

According to the report, to push through the deal, the mezzanine-
holders have been asked to make a cash payment of up to GBP150
million.  This would be raised by way of a rights issue
underwritten by the two biggest mezzanine-holders -- Intermediate
Capital Group and Park Square -- along with Apollo Management, the
private equity group that owns 15% of the debt, the report says.

It is understood that the group's three existing private equity
owners -- Candover, Cinven and Permira -- could join the
underwriting syndicate, the report notes.  The deal would dilute
the existing shareholders and hand equal status to the mezzanine-
holders, the report discloses.

The report notes even if the complex talks fall at the final
hurdle, the gambling operator is unlikely to go bust.  The
"fallback option" would be the sale of a majority stake in the
business to a private equity firm, in return for an injection of
new equity of about GBP300 million, the report states.

Gala Coral Group Ltd. -- http://www.galacoral.co.uk/-- is one of
the leading gaming companies in the U.K., with operations
encompassing bingo, casinos, and sports betting.  It runs more
than 150 bingo halls throughout the country, as well as some 30
casinos.  The company is also a leading bookmarker with nearly
1,600 betting shops and online betting sites.  Gala Coral Group
was formed in 2005 when Gala Group acquired Coral Eurobet.  The
company is jointly owned by private equity firms Cinven Group,
Candover Investments, and Permira.


GLENCRAFT: Talks on Rescue Plan "Progressing Well", Tenon Says
--------------------------------------------------------------
Calum Ross at The Press and Journal reports that the Tenon
Recovery, Glencraft's liquidator, revealed the furniture factory
in Aberdeen was facing debts of more than GBP3 million when it
folded.

The report relates Tenon said the debts included a GBP2 million
share of the city council's pension fund deficit, as well as a
further GBP400,000 owed for redundancy packages to staff and
almost GBP430,000 made available in grants by the UK Government's
department of work and pensions.

Tenon Recovery pledged to move quickly to ensure a "swift sale" of
the business, the report notes.

According to the report, joint liquidators Iain Fraser and Tom
MacLennan, of Tenon, said talks had been "progressing well" with
PSN, which is preparing a rescue plan in partnership with the
Scottish Government.  Under the PSN plan the factory would
relaunch as Glencraft (Social Enterprise) Ltd, with as many former
workers as possible being offered the chance to return, the report
discloses.

The report recalls Glencraft closed in November with the loss of
52 jobs, including those of many disabled and blind people, but
Aberdeen-based energy firm Production Services Network has since
stepped in to try to salvage the operation.


HABITAT UK: Hilco Plans to Convert EUR60 Mln Debt Into Equity
-------------------------------------------------------------
Anousha Sakoui at The Financial Times reports that London-based
fund Hilco plans to convert into equity EUR60 million (GBP53
million) of Habitat's EUR100 million debts the fund acquired when
it took over the company, as part of a wider restructuring.

According to the FT, one person close to the company said Habitat
had become too UK-focused, while its biggest business was in
France.

Hilco, the FT says, is drawing up a stabilization plan to
rebalance the business, expected to focus on product availability,
gross margin and cost-cutting.  The restructuring plan is also
focused on expanding Habitat's online business, which was set up
in September and helped boost Christmas sales, the FT notes.

The FT recalls Hilco bought Habitat for EUR3 in exchange for
taking on the business and its debts.  As part of the sale, Ikano
provided about EUR20 million to help support Habitat, which had
EUR10 million of its own cash, on top of EUR10 million of fresh
funds from Hilco, the FT recounts.  These funds are expected to
keep the business, which loses about EUR40 million a year, going
for at least the next 12 months, the FT states.

Habitat UK Limited -- http://www.habitat.net/-- offers furniture,
kitchenware, textiles, and decorative accessories from more than
30 countries.  It vends its wares through 70-plus stores in the
UK, France, Germany, and Spain, as well as online and via catalog.
In addition to these outlets, Habitat has retail distribution
partners in about 15 other countries in Europe and the
Asia/Pacific region.  The company also sells ready-to-hang artwork
through its Art on Demand Web site.  Founded in 1964, Habitat is
controlled by the Ikano Group, a holding company owned by IKEA
founder Ingvar Kamprad and his family.


JEAN MUIR: Harris Lipman Says CVA Helped Limit Creditor Losses
--------------------------------------------------------------
Harris Lipman Chartered Accountants London, which provide
business, tax and insolvency advice, said the decision to wind
down Jean Muir Limited slowly using a Company Voluntary Agreement
meant creditors were able to recover most of what they were owed.

Harris Lipman said Jean Muir was once one of the U.K.'s most
iconic fashion houses, with an international reputation.  Jean
Muir hit hard times in early 2007.  Barry Lewis and Martin Atkins
at Harris Lipman were appointed as joint supervisors.

The company was established by the eponymous designer in 1966 and
achieved particular fame for its jersey dresses.  Following
Ms. Muirs death in 1995, the company was continued by her husband,
Harry Leuckert, who opened the brands first stand-alone shop in
2004, but when difficulties in attracting new investment occurred,
this led to the directors taking the difficult decision to seek
professional help to achieve the best outcome for creditors.

By continuing to trade in the short-term, the store was able to
sell its final range, the Spring/Summer 2007 collection, through
its own store to fashion buyers eager to take advantage of the
last chance to own a Jean Muir garment.

All of the firm's directors, and many of its staff, stayed on
board during the wind-down period, ensuring that Harris Lipman
could call on their specialist knowledge when needed, while also
providing valuable information in realizing outstanding debtors.

As a result, the company's preferential creditors received all of
the money they were owed, while its unsecured creditors received
83.8p in, which was greater than the forecast return of 75p in
when the Arrangement was proposed.

Mr. Atkins said: "The benefit of a CVA is that an orderly winding
down of a company's affairs will often result in the maximum
realization for creditors.

"Had we just closed the shop on day one, and disposed of the
assets without the assistance of the staff and directors, we would
have had a typical fire sale and creditors would have been left,
subject to costs, with a payment in the region of 37p.

"By keeping it open, we were able to maximize returns not only
were we able to dispose of stock at the most advantageous price,
but we also collected the majority of debts, which is much easier
to do if the directors are still around, and negotiate the
successful surrender of various leases, which reduced the
potential liabilities.

"We made a judgment call at the start, that a CVA would provide
the best outcome for all concerned, and that has been borne out by
the results."


KERLING PLC: Moody's Assigns (P)'B3' Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service has assigned a (P)B3 Corporate Family
Rating to Kerling plc and a (P)B3 / LGD4 (53) rating to the
proposed EUR785 million senior secured guaranteed notes to be
issued by the company.  The outlook on the ratings is stable.

The rated issuer, Kerling plc, is to be formed through a
combination of three businesses: its Norwegian polymer business
acquired by Ineos Capital from Norsk Hydro ASA in 2008,
chlor-vinyls business to be contributed by Ineos Group Holdings
plc, and Ineos Enterprises to be contributed by Ineos Capital.
The initial acquisition in Norway was made by Ineos Intermediate
Investments Limited that will be re-named as Kerling plc prior to
the placement of the notes.  Kerling plc, therefore, will be the
consolidating entity in the forthcoming combination transaction
and will also be the rated entity.

Moody's understands that the combined business will be supported
by a EUR100 million senior secured revolving credit facility and
approximately EUR785 million senior secured guaranteed notes, as
well as EUR120 million securitization facility and trade
creditors.  The proceeds from the new financing are expected to
refinance all legacy maturing obligations of the combined group
that will include Ineos Vinyls Finance plc 2011 notes (rated Caa3
/ LGD 6 (98)).

The provisional (P) B3 ratings are therefore being assigned
prospectively in advance of the combination of the three
businesses, the forthcoming placement of the new debt and
refinancing of all legacy liabilities of the combined group.
These ratings reflect Moody's preliminary credit opinion regarding
the transactions only.  Upon conclusive review of the final
documentation, Moody's will endeavor to assign definitive
corporate family rating and the rating to the notes.  A definitive
rating may differ from a provisional rating.

The (P)B3 corporate family rating recognizes the size, integrated
nature and cost leadership of the combined company in the European
PVC market that should underpin Kerling's credit profile during
the current downturn.  In 2008 and 2009, Kerling maintained
relatively strong profitability, supported by the high degree of
integration and existing long term ethylene supply contracts with
Ineos Group Holdings and a jointly-owned cracker, good logistics
and relatively low energy and fixed costs.  The rating also
reflects a degree of uncertainty about the timing of the sustained
recovery in European PVC spreads expected by the company in 2010
and 2011.  Moody's note, that the group remained FCF-generative at
the trough of the cycle, as its competitive cost position allowed
some exports and supported higher utilization rates.  Looking
forward, the rating positioning reflects the expectation of
limited growth in the European market along with modest
profitability improvements from the current levels, as well as
limited debt repayments in the near term recognizing its
relatively high initial leverage.  Moody's also expect that
Kerling will continue to manage its liquidity, working capital and
CAPEX cash flows efficiently.

The stable outlook reflects Moody's expectation that the company
will continue to manage its liquidity and cash outflows
conservatively and will remain at least FCF neutral during the
downturn.  The assessment is further underpinned by the
expectation of a successful placement of long-term notes that
would support near term management of liquidity and offer
additional operational flexibility, notwithstanding the need to
comply with standard EBITDA-based financial covenants under the
new RCF facility.

The proposed notes will be senior secured obligations of Kerling
plc, a top holding company with ownership in intermediate holdings
Ineos Norway SPV Ltd and Ineos Enterprises Holdings Ltd that, in
turn, indirectly own operating subsidiaries.  The notes will
benefit from the senior secured guarantees provided by Kerling plc
and its material subsidiaries, including operating subsidiaries,
representing 2/3 of the company's assets and EBITDA at the end of
September 2009, as well as the first lien pledge over
substantially all assets of the guarantors..  The expected
recovery rate on the notes reflects the dominant position of the
proposed instrument in the targeted capital structure,
notwithstanding priority of claims on distributions from security
awarded to RCF lenders by the Intercreditor agreement.

These ratings are assigned for the first time as part of this
rating action:

Kerling plc:

  -- Corporate Family Rating: (P)B3
  -- Probability of Default Rating B3;
  -- Senior secured g-teed notes -- (P) B3 / LGD 4 (53);

At the end of September 2009, pro forma for the combination
transactions, Kerling reported EUR1.9 billion in revenues and
EUR195 million in EBITDA for the first nine months of 2009.


LEHMAN BROTHERS: Allowed to Buy Loans for US$1.39 Billion Cash
--------------------------------------------------------------
Lehman Brothers Holdings Inc. and its affiliated debtors obtained
approval from Judge James Peck of the U.S. Bankruptcy Court for
the Southern District of New York of a settlement agreement with
the administrator of Lehman Brothers Bankhaus Aktiengesellschaft.

The agreement was hammered out to settle a dispute between LB
Bankhaus and some of the Lehman units including LBHI, Lehman ALI
Inc. and Lehman Commercial Paper Inc. over the ownership of
certain loans.

Prior to their bankruptcy filing, the Debtors entered into certain
commercial and real estate loan participations with LB Bankhaus.
The participations were either in the so-called "US-style" or
"UK-style."

UK-style participations are typically documented as loans made by
the participant to the lender, with no transfer to the
participant of any property interests in the underlying loans.
US-style participations, on the other hand, are typically
documented as true sales of interests in the underlying loans
that are subject to the participation.  When treated as true
sales, the lender has no equitable interest in the participated
portion of such loans and the interest and principal collected by
the lender are transmitted directly to the participant.

A dispute ensued between the Lehman units and the administrator
over whether the participations documented using the US-style
form are, in fact, true sales.  If they are not, then where LB
Bankhaus is a participant and one of the Lehman units is a
lender, LB Bankhaus would not hold a property interest in the
underlying loans but rather only an unsecured claim against the
concerned Lehman unit that is acting as lender.

The Debtors' attorney, Richard Krasnow, Esq., at Weil Gotshal &
Manges LLP, in New York, says the uncertainty over which party
actually owns the loans that are subject to participations
documented using the US-style form hinders the ability of either
the Lehman units or LB Bankhaus' administrator to maximize the
loans' value.

"Until this issue is resolved, neither party is willing to commit
funds or devote the time and resources necessary to maximize
value," Mr. Krasnow points out.

According to Mr. Krasnow, the agreement makes it possible for the
Lehman units to maximize the value of all the loans that underlie
the participations by providing for:

  (i) the purchase by the concerned Lehman unit and concurrent
      termination of LB Bankhaus' interests in the US-style
      participations where that Lehman unit is a lender; and

(ii) the purchase of LB Bankhaus' interest in certain loans
      where it is a lender, thus transferring legal and
      beneficial ownership of certain loans, whether in the US-
      style or UK-style form, to the Lehman units for an
      aggregate purchase price -- net of certain cash loan
      payments received by the administrator and to be
      transferred or credited to the concerned Lehman unit -- a
      sample calculation of which results in an aggregate net
      payment amount of US$1,388,900,000, subject to certain
      adjustments at closing.

In the aggregate, the purchase price for the loans and
participations being acquired by the Lehman units is below both
the aggregate outstanding principal balance of the loans, which
is about US$3,459,200,000, as well as their aggregate current
"market," which is approximately US$2,148,600,000, thus providing
the Debtors with an opportunity for a considerable upside profit
from those assets, according to Mr. Krasnow.

"By resolving the ownership question and bringing most of the
underlying loans into the sole ownership and control of the
Lehman Parties at a discount, the agreement allows the Debtors to
maximize the value of the underlying loans for the benefit of
their estates and creditors," Mr. Krasnow says.

A full-text copy of the Settlement Agreement is available for
free at http://bankrupt.com/misc/Lehman_DealLBBankhausadmin.pdf


Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.

Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555).  Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history.  Several other affiliates followed thereafter.

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)).  James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI

The Bankruptcy Court has approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for
US$1.75 billion.  Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees.  Nomura also
bought Lehman's operations in the Asia Pacific for US$225 million.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008.  The joint administrators have
been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.

Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


NORTHERN ROCK: Inks GBP10MM Sponsorship Deal with Newcastle United
------------------------------------------------------------------
Roger Blitz at The Financial Times reports that Newcastle United
and Northern Rock plc parties agreed on a sponsorship deal worth a
potential GBP10 million.

According to the FT, the bank, which is restructuring after being
nationalized during the 2008 financial crisis, will be the
Championship club's main sponsor and will have its name on the
black and white-striped strip, continuing a partnership that began
in 2004.

The FT relates Gary Hoffman, the bank's chief executive, said it
was "mindful of our responsibilities under government ownership",
saying it only considered advertising and promotion deals that
delivered a high return on investment and were a good commercial
fit.

"Brand awareness and promotion are important elements in the
continuing development of the company," the FT quoted Mr. Hoffman
as saying.

As reported by the Troubled Company Reporter-Europe on Jan. 6,
Times Online said that the Treasury confirmed that Northern Rock
has been formally split into a good and bad bank.  Times Online
disclosed, the "bad bank" which will stop offering new mortgages,
was on Jan. 4 officially named Northern Rock (Asset Management).
According to Times Online, Northern Rock said that the new "bad"
bank has a residential mortgage book of about GBP50 billion and
GBP4.5 billion of unsecured personal loans.  The bank on Jan. 4
said that 90% of its mortgage book is not in arrears, Times Online
noted.

                        About Northern Rock

Headquartered in Newcastle upon Tyne, England, Northern Rock plc
-- http://www.northernrock.co.uk/-- deals with mortgages, savings
accounts, loans and insurance.  The company also promotes secured
loans to its existing mortgage customers.  The company had more
than US$200 billion in assets at the end of June 2007.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Dec. 11,
2009, Standard & Poor's Ratings Services raised the rating on
Northern Rock's dated subordinated lower Tier 2 debt to 'BB' from
'CCC'.  The ratings on its perpetual subordinated debt and
preference shares were unaffected.  The outlook is stable


ROMULUS: Former Executive Accuses Moore of Conspiracy to Defraud
----------------------------------------------------------------
Philip Stafford at The Financial Times reports that Robbie
Crawford, former managing director of Romulus, has alleged that
Chris Moore, former chairman of Torex Retail, "conspired to
defraud" him of his company.

The FT relates Mr. Crawford told an employment tribunal in
Edinburgh on Friday that Mr. Moore had "stolen" the company he had
built up since 1998 after the former Torex Retail chairman became
a financial backer to Romulus in 2008.

Mr. Crawford, as cited by the FT, said he had been dismissed
without formal process or notification in July after he discovered
that Romulus's largest contract, a deal with WH Smith worth
GBP500,000 a year, was in the process of being moved and
backdated, without his knowledge, to a shadow company called
Romulus Retail, wholly owned by Sarah Jane Moore, Mr. Moore's
wife.

According to the FT, a debenture between Romulus and Steplink,
another company wholly owned by Mrs. Moore, was set up prior to
Romulus going into administration.

"Mr. Moore is sitting in the same seat in Radman Retail [renamed
from Romulus Retail] running the WH Smith contract," the FT quoted
Mr. Crawford as saying.

Grant Thornton, liquidator to Romulus, has not contested the case,
the FT notes.

Romulus is a software company based in Banbury.


ROYAL BANK: Wanted to Retain Enron as Significant Client
--------------------------------------------------------
Jane Croft at The Financial Times reports that Andrew Jameson,
private institutional head in Royal Bank of Scotland's investment
banking division, told the High Court that RBS was "ambitious"
after it took over NatWest in 2000 and wanted to retain Enron, the
now bankrupt energy trader, as a significant client.

Mr. Jameson was giving evidence in a case in which RBS is accused
of misrepresentation over documents relating to a syndicated loan
sold to one of Austria's biggest banks, Raiffeisen Zentralbank
Oesterreich, the FT relates.

RBS has denied the allegations, the FT notes.

According to the FT, the case centers around the first structured
transaction instigated by RBS for Enron in 2000 -- which the court
has been told -- was described as "21st century alchemy" by one
former member of RBS's credit committee.

Central to the Raiffeisen case is whether RBS had put equity at
risk in a special purpose vehicle that it set up for the Enron
transaction, the FT says.

A number of senior RBS executives, past and present, are due to
give evidence in the case, which continues, the FT discloses.

                             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.


STOCKPORT COUNTY: To Resolve Football League Share Transfer Issues
------------------------------------------------------------------
Stockport County Association Football Club Limited entered into
administration on April 30, 2009, with the appointment of John
Titley and Paul Reeves, Directors at Leonard Curtis, as Joint
Administrators.

The administrators said there are still some issues needed to be
resolved regarding the proposed transfer of the Football League
Share to the Melrose Consortium.

"As indicated previously, the Football League Board met on
January 14) consider the proposed transfer of the Football League
Share to the Melrose Consortium.

Unfortunately, we understand that they were unable to recommend
that the Football League Share be transferred at this time as
there were still some issues to be resolved.  We have requested
that the Football League confirm what matters remain outstanding
and have offered our assistance to both the Football League and
the Melrose Consortium to resolve these matters if possible."


TRAFALGARD NEW HOMES: In Talks with Creditors Over Wandle Scheme
----------------------------------------------------------------
Trafalgar New Homes plc released a trading statement relating to
the quarter ended December 31, 2009.

During the quarter the Company's only trade was to continue
'building out' the development contract it has with Wandle Housing
Association following the sale of the development land and part
built houses at Mitcham, Surrey which is anticipated to complete
in the second quarter of 2010.

The financial position of the Company remains broadly as stated in
the Chairman's statement in the Company's interim results for the
six months ended September 30, 2009, announced on December 21,
2009.  There is no surplus cash available and the Company's only
sales related to the Wandle contract.  The scheme will show a loss
and there is a cash shortfall.  The Company's Chairman, Robert
Mckendrick, is continuing to provide funding to help the Company.
The Board is in negotiations with various creditors to persuade
the parties to accept shares in lieu of cash.

Trafalgar New Homes Plc is a United Kingdom-based company.  The
Company is engaged in property development.


TULLETT PREBON: Fitch Upgrades Issuer Default Rating From 'BB+'
---------------------------------------------------------------
Fitch Ratings has upgraded Tullett Prebon plc's Long-term Issuer
Default Rating to 'BBB-' from 'BB+'.  The Outlook is Stable.
Fitch has simultaneously assigned a Long-term rating of 'BB+' to
the senior debt issued by Tullett Prebon Group Holdings Plc, a
subsidiary of TP.

The upgrade of TP's Long-term IDR reflects improvements in the
company's net debt, leverage and operating margins in 2009 and its
robust performance and risk management through the extreme market
dislocation experienced in H208 and H109.  The Stable Outlook
reflects TP's strong franchise as the world's second-largest inter
dealer-broker and Fitch's view that net debt and leverage are
likely to remain steady -- if not improve -- over the medium term,
while profitability is anticipated to be maintained at sound
levels.

TP's Long-term IDR also considers its operational risks which
arise from processing large trading volumes, relatively small
equity base, the cyclicality of revenue lines and the leverage
taken on following a debt-financed GBP301.5 million return of
capital to shareholders in March 2007.  Downward rating pressure
could arise from material damage to TP's franchise or reputation,
possibly from operational or litigation risks, or from a sustained
weakening of earnings, cash flow or leverage.

TP reported a 9% decline in revenue in the four months to end-
October 2009 (15% decline at constant foreign exchange rates).
Revenue in the year to end-October 2009 (10M09) increased 2% to
GBP819 million, but declined 9% at constant foreign exchange
rates.  This mainly reflects exceptional revenue in 2008 from high
trading volumes during the extreme market dislocation, but was
also driven by a modest 3% decline in broker headcount in the year
to end-June 2009.  Nevertheless, operating margins and cash
generation remain sound, supported by a flexible cost base.

Litigation and reputational risks are significant in the IDB
sector, where companies have a history of attracting staff from
rivals.  This can be disruptive to a franchise and revenue
generation.  In Q409, a sizeable number of brokers in TP's North
American operations who generated around 7.5% of group revenue
left TP and took up roles at a competitor, BGC Partners Inc (rated
'BBB'/F2/Stable).  TP is hiring brokers, strengthening management
and is engaged in legal action against BGC.  Fitch believes TP
will be able to absorb such situations, as well as the inherent
cyclicality in individual products, due to the product and
geographic diversity of its operations.  Credit and market risks
are low.  TP operates either on a "name give-up" or a "matched
principal" basis and sound counterparty risk procedures are in
place.

Funding needs are low.  The capital return was financed by a
GBP300 million five-year amortizing loan, which increased debt and
turned tangible equity into a deficit.  TP's leverage position is
improving as the loan is paid down.  TPGH's senior notes are rated
one notch below TP's Long-Term IDR, whilst the subordinated notes
are rated two notches below, reflecting Fitch's view of the lower
recovery potential of these instruments following the capital
return.

TP is listed in London and is the product of numerous mergers and
acquisitions.

Fitch has taken these rating actions:

Tullett Prebon:

  -- Long-term IDR upgraded to 'BBB-' from 'BB+'; Outlook Stable

Tullett Prebon Group Holdings Plc

  -- Senior notes: assigned Long-term rating of 'BB+'

  -- Subordinated notes: Long-term rating upgraded to 'BB' from
     'BB-'


UK GOLF: In Administration; To Be Sold as Going Concern
-------------------------------------------------------
UK Golf Group Limited and its subsidiaries entered into
administration on January 14, 2009.  Jason Baker and Geoff Rowley,
Client Partners at Vantis Business Recovery Services, a division
of Vantis, the UK accounting, tax and business advisory group,
were appointed as Joint Administrators.

UK Golf Group operates in the South East and owns three golf
clubs, namely Garon Park Golf Complex, Hainault Forest Golf
Complex and Stockley Park Golf Course.  The business achieved a
turnover of 6.5 million in its last financial year and,
immediately prior to administration, employed 108 people.
Over the past year, turnover has fallen both due to the recession
and the more recent poor weather.  Regrettably, the administrators
have had to make 15 redundancies across the business, to reduce
costs.  No further redundancies are anticipated at this stage.

The business is continuing to trade as a going concern and the
intention of the administrators is to achieve a sale of the
business and assets.

Commenting on the case, Jason Baker said: "We regard the golf
courses, both together and separately, as viable businesses,
attractive to purchasers within the golf and leisure sectors.
Interested parties are invited to contact us for further details."


* UK: Over 140,000 Firms Show Signs of Financial Distress in 4Q09
-----------------------------------------------------------------
Begbies Traynor, a business rescue, recovery and restructuring
specialist, said Monday more than 140,000 companies experienced
"significant and critical" financial problems in the fourth
quarter of 2009; 6% higher than in the third quarter 2009 but 14%
lower than the same period in 2008.

In its Red Flag Alert -- a monitor of early warning signs of
company distress, which was released Monday -- Begbies Traynor
said the scenario reflects:

    * High levels of corporate distress, despite the positive
      effects of government fiscal stimulus, such as quantitative
      easing and the 2.5% VAT decrease, as well as other short
      term support initiatives, such as the HMRCs much needed
      Business Payment Support Service (through which over 242,000
      time-to-pay arrangements have been agreed, totalling over
      4.2 billion in deferred tax liabilities).

    * A new trend emerging, which indicates that a higher number
      of business failures are occurring at an earlier stage of
      deterioration than in previous recessions.

    * A more lenient approach amongst creditors, compared to the
      near panic to recover debts and preserve cash amidst the
      chaos, a year ago when Lehman Bros and other major failures
      almost stalled world financial markets.  However, HMRC
      remains one of the principal creditors in many insolvencies
      and we fear that when the current time-to-pay scheme, which
      provided a lifeline to many businesses, is finished there
      will be a significant rise in company failures most probably
      from Q3 2010 onwards.

    * Improved business confidence, witnessed by the ICAEWs
      Business Confidence Monitor which showed that 60% of
      companies surveyed indicated more confidence in the economic
      outlook for their business, a reversal of the findings of
      the Q4 2008 survey when 63% of respondents were less
      confident.  This is offset by indications that the rise in
      consumer confidence may have stalled

An analysis by sector shows that:

    * The Automotive sector saw the largest quarter on quarter
      increase in Critical actions (up 26% on Q3 2009) as well as
      one of the highest year on year rises (up 20% on Q4 2008),
      despite the extension of the car scrappage scheme.

    * The service sectors suffered more than the non-service
      sectors, with a 22% increase in Significant and Critical
      actions in Q4 2009 compared to Q3 2009.

    * The Retail sector saw a significant improvement with a 32%
      decline in Critical actions, compared to Q3 2009, or a 21%
      decline on Q4 2008 as improved consumer confidence, reduced
      capacity and the 2.5% VAT decrease culminated in increased
      sales over the Christmas period, as reported by some major
      multiple retailers.  In addition, the traditional seasonal
      pattern shows relatively low levels of adverse actions in
      the retail sector in Q4, as creditors hold off from taking
      action while retailers realize cash during the important
      Christmas trading period.

    * Although the construction sector witnessed an improvement in
      Significant and Critical actions compared to Q4 2008, it
      remains particularly vulnerable as it has benefitted more
      than any other sector from HMRCs time-to-pay scheme.

Companies heavily dependent on a public sector customer base are
also expected to be particularly vulnerable, as the well
documented public sector spending cuts become evident post the
general election during 2010.

According to the report, a regional analysis of the figures shows
that Scotland, for the second quarter running, stands out as the
only region showing a year on year increase of both Significant
and Critical categories of adverse actions (up 2% and 41%
respectively).

Ric Traynor, Executive Chairman of Begbies Traynor Group, said,
"Government support measures are providing welcome relief to the
UK's struggling companies in the short term but they may
exacerbate problems for some businesses as the need to repay debt
catches up with them later in the year.

"Experience of the last four recessions tells us that unemployment
levels and corporate and personal insolvencies have lagged behind
technical recession by 1 to 2 years.  With tax and interest rates
certain to rise, as well as increasing pressure on consumer
spending, there is every reason to suggest that the insolvency
peaks of this recession remain some way off.

"While business finance is expected to become more readily
available during the first half of 2010, we anticipate a rise in
the levels of financial distress during the second half of 2010,
as temporary financial support measures are unwound."


* UK: Amount of Tax Deferred by Struggling Firms Topped GBP4.3 Bln
------------------------------------------------------------------
The amount of tax deferred by struggling companies has now topped
GBP4.3 billion, according to the latest figures from HM Revenue
and Customs.

As of December 20, 2009, the Business Payment Support Service had
approved more than 249,700 time-to-pay arrangements, worth a total
of GBP4.37 billion, since the scheme began in November 2008.

The scheme is available to all types of businesses, including
partnerships, and a total of GBP3.33 billion has so far been
repaid, leaving just over a billion pounds outstanding.

With the first of those arrangements now coming to an end, HMRC is
now dealing with more requests for repeat deferrals, and reports
indicate that the department is now taking a tougher line, with
many new deferrals only permitted for a shorter period and with
more stringent requirements on providing a repayment plan.

Similarly, HMRC has warned that action will be taken against
companies that default after being granted a time-to-pay
agreement.

Insolvency experts have claimed the government is being forced to
crack down, as the amount of money being kept out of the state
coffers continues to pile up, at a time when it can ill afford to
lose tax revenues.  Despite this, HMRC has insisted the scheme
will remain in operation for as long as it is needed.


                            *********

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.

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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.


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