TCREUR_Public/100127.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Wednesday, January 27, 2010, Vol. 11, No. 018

                            Headlines



F R A N C E

REMY COINTREAU: Moody's Gives Stable Outlook on 'Ba2' Rating


G E R M A N Y

GENERAL MOTORS: Sues BMW for Breach of Delivery Agreement
PORSCHE AUTOMOBIL: Faces Lawsuit Over Failed Volkswagen Takeover

* GERMANY: Merkel's Coalition Mulls Levy on Banks for Rescue


I R E L A N D

BOADILLA PROJECT: S&P Affirms Rating on Class E Notes at 'BB'
CCTV INVESTMENT: Creditors Meeting Set for February 5
D & A IRISH: Creditors Meeting Set for February 1
DARREN DILLON: Creditors Meeting Set for February 12
ENABLESOFT LIMITED: Creditors Meeting Set for February 1

EXILE CLOTHING: Creditors Meeting Set for February 3
ICE VENTURES: Eventserv Logistics Files Winding-Up Petition
JAZZ DEVELOPMENTS: Appoints Tom Kavanagh as Receiver
MICHAEL O'CONNELL: Creditors Meeting Set for February 5
MITCHELL FURNITURE: Creditors Meeting Set for February 5

REFRICON LIMITED: Creditors Meeting Set for February 12
SARAHS ACCESSORIES: Creditors Meeting Set for February 5


I T A L Y

SNAI SPA: Moody's Assigns 'Ba3' Corporate Family Rating
SNAI SPA: S&P Assigns 'B+' Long-Term Corporate Credit Rating


K A Z A K H S T A N

* KAZAKHSTAN: S&P Sees Low Recovery for Bank Debt Holders


N E T H E R L A N D S

HARBOURMASTER CAPITAL: Fitch Takes Rating Actions on Various Notes


P O L A N D

MG PROBUD: Germany Has No Right to Freeze Assets, Court Says


R U S S I A

GAZPROMBANK: Mulls Mortgage Bond Swap; Sr. Creditors Face Losses
UC RUSAL: To Start Trading Shares in Hong Kong Today
UC RUSAL: Guinean Gov't Demands Share of IPO Proceeds

* RUSSIA: S&P Sees Low Recovery for Bank Debt Holders on Poor Laws
* RUSSIA: Repays Remaining Debt to London Club of Creditors


S W E D E N

GENERAL MOTORS: Has Deal with Spyker to Sell Saab


T U R K E Y

YASAR HOLDING: Fitch Affirms Issuer Default Ratings at 'B'


U K R A I N E

UKRPROMBANK LLC: Moody's Downgrades Deposit Ratings to 'C'

* UKRAINE: S&P Sees Low Recovery for Bank Debt Holders


U N I T E D   K I N G D O M

AGORA: Buyer Not Yet Found; No Sale Deadline Set
CRYSTAL CREDIT: Moody's Reviews Ratings on Two Classes of Notes
FLYGLOBESPAN: PwC Puts Last Plane Up for Sale to Repay Creditors
JS CHILDRENSWEAR: Administrators Seek Buyer for Business
KAYE ENGINEERING: In Administration; Fisher Partners Appointed

NW PRINT: In Administration; Begbies Seeks Buyer for Assets
SMITHSON PUBLICATIONS: Hearing on Wind-up Petition Set for Feb. 24
TATA MOTORS: Jaguar Land Rover CEO David Smith to Step Down

* UK: FSA Probes Two Firms Over Client-Money Segregation
* UK: Corp. Tax Repayment Delays to Worsen Firms' Cashflow Burden
* UK: Staycation to Blame for Rising Hotel Insolvencies, PwC Says
* UK: Businesses Not Expecting Recovery in Trading Conditions




                         *********



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


REMY COINTREAU: Moody's Gives Stable Outlook on 'Ba2' Rating
------------------------------------------------------------
Moody's Investors Service changed the outlook on Remy Cointreau
S.A.'s Ba2 Corporate Family Rating and senior unsecured rating to
stable from negative.

The change in outlook is based on the group's enhanced operational
performance underpinned by more favorable sales trends in its
Cognac division -- albeit partly offset by a sharp decline in
Champagne like-for-like sales -- as illustrated in its latest
trading statement for the 9 months to December 31, 2009 released
on January 21, 2010.  Key to its resilient performance was the
continued pricing activity, and to a lower extent some cost
discipline.  Moreover, the risks related to the change in Remy's
distribution network, which came into effect on April 1, 2009,
have not materialized, and Remy has reported some first benefits
from the new arrangements, in particular in its growth areas.  The
change also reflects the company's commitment to de-leverage its
balance sheet through improved performance and the payment of part
of its dividends in shares in the past two years.

"Moody's recognizes that Remy has so far weathered the economic
downturn and delivered a resilient performance in a more volatile
environment for the spirits industry.  While Moody's believe that
pressure on top line growth will not ease materially in the coming
quarters, and that the company will see some negative effects from
a weakening US dollar against the major currencies, a worsening of
Remy's credit quality is not expected" said Yasmina Serghini-
Douvin, an Assistant Vice President-Analyst in Moody's Corporate
Finance Group.

Moody's considers that Remy's liquidity profile is primarily
supported by its continued access to its EUR466 million revolving
credit facility maturing in 2012 but it remains constrained by
more limited Net Debt to EBITDA covenant headroom considering the
recent increase in company's indebtedness.  Management however
indicated that Remy should meet its covenant requirements in
future testing periods.

The stable outlook reflects Moody's expectation that management
will pursue its initiatives to enhance operating performance, de-
leverage the group's balance sheet such as Remy's debt to EBITDA
ratio trends below 4.0x and build up more cushion under its
financial covenant.

Moody's previous rating action on Remy Cointreau was implemented
on January 27, 2009, when the rating agency changed the outlook to
negative.

Headquartered in Paris, France, Remy Cointreau is a major producer
of cognac, champagne, liqueurs and spirits.  It had revenues of
EUR711 million in the 12-month period ending September 30, 2009.


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


GENERAL MOTORS: Sues BMW for Breach of Delivery Agreement
---------------------------------------------------------
Motors Liquidation Company, formerly known as General Motors
Corporation, commenced an adversary proceeding before the U.S.
Bankruptcy Court for the Southern District of New York against
Bayerische Motoren Werke Aktiengesellschaft (more commonly known
as BMW) for breach of a delivery agreement.

GMC and BMW entered into the 6L45 Development and Delivery
Agreement on May 6, 2004, for the development, production, and
sale of transmissions.  The contract and its exhibits provide
extensive specifications regarding the technical requirements for
the transmissions.  GMC, its Powertrain Group, and its subsidiary
GM Strasbourg SAS, located in Strasbourg, France, fully complied
with their obligations under the contract, developing and
thereafter supplying transmissions to BMW in compliance with the
specifications.  For its part, BMW was obligated, under the terms
of the contract, to purchase a minimum of 1.9 million
transmissions from GMC by December 31, 2015.

In late 2008, BMW requested an amendment to the contract under
which GMC would supply different transmissions incorporating new
technology that is not required by or provided for in the
contract.  GMC-and later MLC-negotiated in good faith with BMW,
offering technological solutions and terms that, if accepted,
would have met BMW's requests.

According to the Debtors, BMW, however, repeatedly rejected every
solution proposed by GMC and MLC, and ultimately informed MLC that
it did not intend to comply with its purchase obligations under
the contract, but rather that it would shift production of
transmissions to an alternate supplier.  Remarkably, BMW further
threatened to seek, through the Court, to recover damages from
MLC.

The Debtors contend that a substantial controversy exists between
the parties regarding MLC's performance under the contract that
warrants declaratory judgment.  Moreover, because MLC has fully
performed its obligations under the contract, the Court, applying
German law, should order BMW to specifically perform its
obligations under the contract.

In the alternative, the Court should find that BMW, through its
repudiation of the agreement, has breached the contract and caused
MLC to incur significant and substantial damages, leaving MLC with
no alternative but to seek redress from the Court.

                       About General Motors

General Motors Company -- http://www.gm.com/-- is one of the
world's largest automakers, tracing its roots back to 1908.  With
its global headquarters in Detroit, GM employs 209,000 people in
every major region of the world and does business in some 140
countries.  GM and its strategic partners produce cars and trucks
in 34 countries, and sell and service these vehicles through these
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel,
Vauxhall and Wuling.  GM's largest national market is the United
States, followed by China, Brazil, the United Kingdom, Canada,
Russia and Germany.  GM's OnStar subsidiary is the industry leader
in vehicle safety, security and information services.

GM acquired its operations from General Motors Company, n/k/a
Motors Liquidation Company, on July 10, 2009, pursuant to a sale
under Section 363 of the Bankruptcy Code.  Motors Liquidation or
Old GM is the subject of a pending Chapter 11 reorganization case
before the U.S. Bankruptcy Court for the Southern District of New
York.

At September 30, 2009, GM had US$107.45 billion in total assets
against US$135.60 billion in total liabilities.

                    About Motors Liquidation

General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case
No. 09-50026).  General Motors changed its name to Motors
Liquidation Co. following the sale of its key assets to a company
60.8% owned by the U.S. Government.

The Honorable Robert E. Gerber presides over the Chapter 11 cases.
Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H.
Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors
in their restructuring efforts.  Al Koch at AP Services, LLC, an
affiliate of AlixPartners, LLP, serves as the Chief Executive
Officer for Motors Liquidation Company.  GM is also represented by
Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as
counsel.  Cravath, Swaine, & Moore LLP is providing legal advice
to the GM Board of Directors.  GM's financial advisors are Morgan
Stanley, Evercore Partners and the Blackstone Group LLP.

Bankruptcy Creditors' Service, Inc., publishes General Motors
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by General Motors Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


PORSCHE AUTOMOBIL: Faces Lawsuit Over Failed Volkswagen Takeover
----------------------------------------------------------------
A group of investment funds on Jan. 25 filed a lawsuit against
Porsche Automobil Holding SE and two of Porsche SE's former
executives, Wendelin Wiedeking and Holger Haerter, seeking to
recover over a billion dollars in losses suffered as Porsche SE
attempted a takeover of Volkswagen AG in 2008.

The Complaint, filed in federal court in Manhattan, explains in
detail how Porsche SE manipulated the price of VW stock as it
secretly accumulated control over almost all of VW's freely traded
shares, and then, after it achieved control, triggered a massive
short squeeze.  Porsche released billions of Euros worth of shares
into the short squeeze for its own profit.

The Complaint alleges that the defendants repeatedly misled
investors and lied about Porsche SE's positions and intentions
with respect to VW in order to take control of VW while preventing
the price of VW shares from rising to reflect their intentions.
The defendants' actions enabled them to hide the extent to which
Porsche SE had cornered the market in VW's freely traded shares
and simultaneously induced the plaintiff funds to establish short
positions on the same shares.

On October 26, 2008, Porsche SE suddenly revealed the extent of
its true control of VW shares.  This resulted in what the New York
Times called "a short squeeze of historic proportions."  The Wall
Street Journal reported that "[a]t the height of the short squeeze
on Oct. 28, VW stock briefly topped 1,000 Euros, nearly five times
as high as on Oct. 24, making VW the biggest company by stock-
market value for a few hours."  The Complaint alleges that the
short squeeze forced the price of VW shares higher, allowing
Porsche SE to make outrageous profits at the expense of the
plaintiff funds.

"Porsche SE should be held accountable in a court of law," said
Phil Beck, a lawyer for the funds.  "We will do whatever it takes
to make sure the rule of law is upheld."

Plaintiffs in the lawsuit are: Elliott Associates, L.P.; Elliott
International, L.P.; The Liverpool Limited Partnership; Glenhill
Capital LP; Glenhill Capital Overseas Master Fund LP; Glenhill
Concentrated Fund LP; Glenview Capital Partners, L.P.; Glenview
Institutional Partners, L.P.; Glenview Capital Master Fund, Ltd.;
GCM Little Arbor Partners, L.P.; GCM Little Arbor Institutional
Partners, L.P.; GCM Little Arbor Master Fund, Ltd.; GCM
Opportunity Fund, L.P.; Glenview Capital Opportunity Fund, L.P.;
Glenview Offshore Opportunity Master Fund, Ltd.; Perry Partners
L.P.; and Perry Partners International, Inc.

The funds are represented by Bartlit Beck Herman Palenchar & Scott
LLP.

Headquartered in Stuttgart, Germany, Porsche Automobil Holding SE
-- http://www.porsche-se.com/-- is a holding company engaged in
the car manufacture industry.  The Company's core products are
sports cars and all-terrain vehicles.  The Porsche sports car
range includes the Boxster, the Cayman, the 911 and the Carrera
GT.  The Boxster and the Boxster S are contemporary
reinterpretations of the Company's original roadsters, the 356/1
and the 550 Spyder.  There are several varieties of the 911,
representing the model's continuous evolution.  The Carrera GT has
the race-derived chassis construction and minimum weight.  The
Company's all-terrain models, Cayenne, Cayenne S, Cayenne Turbo
and Cayenne Turbo S are balanced, four-wheel drive vehicles for
on-road and off-road use.  Porsche Automobil Holding SE also
offers financing services, spare parts and accessories for new and
classic models, as well as an approved used car service.


* GERMANY: Merkel's Coalition Mulls Levy on Banks for Rescue
------------------------------------------------------------
Brian Parkin at Bloomberg News reports that German Chancellor
Angela Merkel's coalition is considering setting up a fund or a
levy on banks to help pay for their rescue during the financial
crisis.

According to Bloomberg, Leo Dautzenberg, finance spokesman in
parliament for Ms. Merkel's Christian Democrats and their CSU
Bavarian allies, said the coalition aims to prevent any future
crises as well as claw back some of the money spent on bailing out
banks and stabilizing the financial system.

Bloomberg says Free Democratic Party finance spokesman Frank
Schaeffler said the coalition proposes setting up two funds for
banks.

Bloomberg relates Mr. Dautzenberg, Germany has no plans to split
banks.

Mr. Dautzenberg, as cited by Bloomberg, said changes to bank
supervisory boards and to insolvency law are being considered to
prevent any repeat of the slump, he said.  Both measures, aimed at
averting or taming the impact of future bank crises, are outlined
in the ruling parties' policy accord signed in October, Bloomberg
notes.


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


BOADILLA PROJECT: S&P Affirms Rating on Class E Notes at 'BB'
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
Boadilla Project Finance CLO (2008-1) Ltd.'s class A, B, C, and D
notes.  At the same time, S&P placed the class A notes on
CreditWatch negative and affirmed the rating on the class E notes.

The rating actions on classes A to D follow S&P's assessment of
the deterioration in the credit quality of obligors in the current
portfolio.  S&P lowered the rating to a level where the credit
enhancement (or attachment point) is commensurate with the
stressed scenario loss rate S&P applied.

S&P affirmed the rating on the class E notes, as synthetic rated
overcollateralization indicates there is sufficient credit
enhancement to support the stressed scenario loss.

                           Ratings List

            Boadilla Project Finance CLO (2008-1) Ltd.
        EUR78.25 Million Asset-Backed Credit-Linked Notes

         Rating Lowered and Placed on Creditwatch Negative

                                                        Projected
                                 Rating     SROC        90+ day
Class To              From      Scenario   Today(%)    SROC(%)
----- --              ----      --------   --------    ---------
A     AA+/Watch Neg   AAA        AAA       98.8766      99.1119
                                  AA+       99.8835     100.0731

                          Ratings Lowered

                                                        Projected
                                 Rating     SROC        90+ day
Class To              From      Scenario   Today(%)    SROC(%)
----- --              ----      --------   --------    ---------
B     A+              AA         AA        99.1090      99.2882
                                  AA-       99.5942      99.7818
                                  A+       100.0884     100.2634
C     A-              A          A         99.4137      99.5368
                                  A-       100.0056     100.1358
D     BBB-            BBB        BBB       99.6255      99.7414
                                  BBB-     100.8605     100.9586

                          Rating Affirmed

                                                        Projected
                                 Rating     SROC        90+ day
Class To              From      Scenario   Today(%)    SROC(%)
----- --              ----      --------   --------    ---------
E     BB              BB         BB       100.1977     100.2731



CCTV INVESTMENT: Creditors Meeting Set for February 5
-----------------------------------------------------
A meeting of creditors of CCTV Investment Holdings Limited will
take place at 9:55 a.m. on February 5, 2010 at:

         Holiday Inn Hotel
         98-107 Pearse Street
         Dublin 2
         Ireland

The registered address of the company is at:

         G4/G5 Calmount Park
         Calmount Road
         Ballymount
         Dublin 12
         Ireland


D & A IRISH: Creditors Meeting Set for February 1
-------------------------------------------------
A meeting of creditors of D & A Irish Motoring Limited will take
place at 10:00 a.m. on February 1, 2010 at:

         City North Hotel
         Gormanstown
         Co. Meath
         Ireland

The registered address of the company is at:

         1A Lourdes Square
         Drogheda
         Co. Louth
         Ireland


DARREN DILLON: Creditors Meeting Set for February 12
----------------------------------------------------
A meeting of creditors of Darren Dillon Transport Limited will
take place at noon on February 12, 2010 at:

         Thistlewaite House
         Rathcore
         Enfield
         Co. Meath
         Ireland

The registered address of the company is at:

         5 Mount Bellew Way
         Lucan
         Co Dublin
         Ireland


ENABLESOFT LIMITED: Creditors Meeting Set for February 1
--------------------------------------------------------
A meeting of creditors of Enablesoft Limited will take place at
4:00 p.m. on February 1, 2010 at:

         Oakwood Arms Hotel
         Shannon
         Co. Clare
         Ireland

The registered address of the company is at:

         Universal House
         Shannon
         Co. Clare
         Ireland


EXILE CLOTHING: Creditors Meeting Set for February 3
----------------------------------------------------
A meeting of creditors of Exile Clothing Limited will take place
at 9:00 a.m. on February 3, 2010 at:

         The City North Hotel
         Gormanstown
         Co. Meath
         Ireland

The registered address of the company is at:

         16 Dublin Street
         Balbriggan
         Co. Dublin
         Ireland


ICE VENTURES: Eventserv Logistics Files Winding-Up Petition
-----------------------------------------------------------
Eventserv Logistics Limited has filed a petition to wind up Irish
Ice Ventures Limited.  The petitioner's solicitor is Lavelle
Coleman.

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

The registered address of the petitioner is at:

         The Grange
         Newcastle Road
         Lucan
         Co. Dublin

The registered address of Irish Ice Ventures Limited is at:

         Clifton House
         Clifton Court
         Fitzwilliam St. Lower
         Dublin 2
         Ireland


JAZZ DEVELOPMENTS: Appoints Tom Kavanagh as Receiver
----------------------------------------------------
Tom Kavanagh of Kavanagh Fennell was appointed receiver and
manager of Jazz Developments Limited by Ulster Bank Ireland
Limited on January 21, 2010.

The registered address of Jazz Developments Limited is at:

         Grand Canal House
         1 Grand Canal Street Upper
         Dublin 2
         Ireland


MICHAEL O'CONNELL: Creditors Meeting Set for February 5
-------------------------------------------------------
A meeting of creditors of Michael O'Connell Productions Limited
will take place at 5:00 p.m. on February 5, 2010 at:

         2nd Floor
         Kandoy House
         2 Fairview Strand
         Dublin 3
         Ireland

The registered address of the company is at:

         17 Oaklands Drive
         Dublin 6
         Ireland


MITCHELL FURNITURE: Creditors Meeting Set for February 5
--------------------------------------------------------
A meeting of creditors of Mitchell Furniture Limited T/A Heritage
Kitchens will take place at noon on February 5, 2010 at:

         Buswells Hotel
         Molesworth Street
         Dublin 2
         Ireland

The registered address of the company is at:

         Wellington Place
         Trim
         Co. Meath
         Ireland


REFRICON LIMITED: Creditors Meeting Set for February 12
-------------------------------------------------------
A meeting of creditors of Refricon Limited will take place at
10:30 a.m. on February 12, 2010 at:

         Thistlewaite House
         Rathcore
         Enfield
         Co. Meath
         Ireland

The registered address of the company is at:

         The Paddocks
         Mullavalley
         Louth Village
         Co. Louth
         Ireland


SARAHS ACCESSORIES: Creditors Meeting Set for February 5
--------------------------------------------------------
A meeting of creditors of Sarahs Accessories Limited will take
place at 10:00 a.m. on February 5, 2010 at:

         The Imperial Hotel
         South Mall
         Cork
         Ireland

The registered address of the company is at:

         Unit 6 Ballincollig Commercial Park
         Ballincollig
         Co. Cork
         Ireland


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


SNAI SPA: Moody's Assigns 'Ba3' Corporate Family Rating
-------------------------------------------------------
Moody's Investors Service has assigned a Ba3 Corporate Family
Rating to SNAI Spa.  Concurrently Moody's assigned a provisional
(P)Ba3 senior secured rating to the proposed EUR350 million senior
secured notes to be issued by SNAI.  This is the first time that
Moody's has rated the Company.  The rating outlook is stable.

SNAI is the Italian market leader in sport betting and is very
well positioned in the Amusement with Prize market.  SNAI's strong
domestic leadership position has been reached in just a few years
thanks to both its well-established domestic network of sales
points, which have cross fertilised SNAI's different activities,
and its strong management team, which has an extensive knowledge
of the market.

SNAI's Ba3 CFR reflects: (i) the company's good segment
diversification; (ii) its solid market position due to its
leadership in each segment and its effective management team;
(iii) the growth opportunities inherent in the Italian market,
which is still not mature and which is characterized by low
cyclicality; (iv) the long-term nature of its existing concessions
and low level of regulatory risk; and (v) its low operating
leverage due to its flexible business model.  However, Moody's
believes the rating is constrained by the company's: (i) limited
size; (ii) concentration in the Italian market; and (iii) low
level of profitability due to high taxation and agency fees.

The stable rating outlook on the Ba3 CFR incorporates Moody's
expectation that SNAI will continue to enjoy a stable operating
profile.

The bond will be a senior secured bond with a maturity rate of
seven years, with a security package represented by about 51% of
company's shares.  The covenants will include normal incurrence
covenants for this type of transaction.  With the issuance of the
bond, Moody's recognizes that SNAI will be able to increase the
duration of its debt.  The proposed bond will be used to refinance
the EUR255 million remaining part of a EUR310 million loan (which
the company took out in March 2006 to finance the acquisition of
450 sports and horse betting licenses), and the acquisition of
5,052 Video Lotteries rights.

SNAI's parent Company, SNAI Servizi S.r.l., is concurrently
refinancing its existing financing agreement currently outstanding
(Parent Loan).  If it fails to repay or refinance the portion of
the financing that matures next June 2010, the Lenders under the
Parent Loan will be entitled to enforce their priority security
claim over the same collateral that secure the Notes.

Moody's issues provisional ratings in advance of the final sale of
securities and these ratings reflect Moody's preliminary credit
opinion regarding the transaction only.  Upon a conclusive review
of the final documentation, Moody's will endeavor to assign a
definitive rating to the notes.  A definitive rating may differ
from a provisional rating.

Ratings assigned:

  -- Corporate Family Rating of Ba3;

  -- Probability of Default Rating of Ba3;

  -- Provisional Senior Secured rating on the proposed
     EUR350 million notes issuance of (P) Ba3, LGD 3, 45%;

SNAI's ratings were assigned by evaluating factors Moody's
believes are relevant to the credit profile of the issuer, such as
(i) scale and competitive position of the company, (ii) its
diversification and exposure to regulatory risk,
(iii) profitability, (iv) growth opportunities and management
strategy, (v) financial policies, and (vi) the projected
performance of the company over the near to intermediate term.

SNAI, which reported consolidated net turnover of EUR533 million
in 2008, is one of the largest gaming industry players in Italy.
The company is controlled (50.68%) by SNAI Servizi S.r.l., which
is owned by 167 betting shops, owners and managers.  The remaining
part (49.32%) is listed on the Italian stock exchange, with market
capitalization of EUR336 million.  SNAI is active in five lines of
business: (i) horse betting; (ii) sports betting; (iii) slot
machines; (iv) services to the network; and (iv) other ancillary
activities related to the gaming sector.


SNAI SPA: S&P Assigns 'B+' Long-Term Corporate Credit Rating
------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its 'B+'
long-term corporate credit rating to Italy-based gaming group SNAI
SpA.  The outlook is stable.

At the same time, S&P assigned its 'B+' issue rating to the
proposed EUR350 million senior secured notes due 2017, to be
issued by SNAI.  S&P also assigned its recovery rating of '4' to
the bond, indicating its expectation of average (30%-50%) recovery
of the principal in the event of a payment default.

S&P understands that the bond is not underwritten by the
arrangers.  The rating on the proposed bond is subject to its
successful issue, and to S&P's review of the final documentation.
In the event of any changes to the amount or terms of the bond,
the recovery and issue ratings could be subject to further review.

"The 'B+' corporate credit rating on SNAI reflects S&P's view of
the group's aggressive financial policy and exposure to regulatory
risks," said Standard & Poor's credit analyst, Diego Festa.  "Over
the past five years, SNAI has taken advantage of the progressive
liberalization of the Italian gaming and betting market to become
the second-largest operator.  Expansion has only partially been
funded by equity and internally generated cash, however.  As a
result, S&P assess SNAI's credit protection measures as weak,
especially in light of the group's "fair" business risk profile."
In S&P's view, SNAI's underlying gaming operations will continue
to perform resiliently throughout the current recession.  Provided
that the regulatory backdrop remains benign, and that SNAI
exercises restraint in discretionary spending and financial
policy, S&P believes that the group will gradually reduce its
financial leverage in 2010, to levels comfortably lower than 5.0x
on a Standard & Poor's-adjusted basis.

S&P could lower the rating if SNAI's operating performance and
free cash flow generation were insufficient to reduce financial
leverage as outlined above, or if the adjusted EBITDA interest
coverage ratio were to decline to less than 2.5x.

In S&P's opinion, SNAI's high leverage makes an upgrade unlikely
in the near term.


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


* KAZAKHSTAN: S&P Sees Low Recovery for Bank Debt Holders
---------------------------------------------------------
Paul Abelsky at Bloomberg News reports that Standard & Poor's said
debt holders of failed banks in Russia, Kazakhstan and Ukraine may
recover fewer funds in 2010 and 2011 because of inadequate
bankruptcy laws and weaknesses in the three countries' banking
systems.

"Recoveries could be restricted and unpredictable, largely because
of limited bank supervision and what we see as arbitrary
frameworks for bankruptcy and bank restructuring in Kazakhstan,
Russia and Ukraine," Bloomberg quoted Sergey Voronenko, an S&P
credit analyst in Moscow, as saying in a Jan. 20 report.

Bloomberg relates Ekaterina Trofimova, an S&P credit analyst in
Paris, said "While the recovery rate is expected to reach less
than 40% in the three nations, creditors may recoup even less this
year and in 2011 owing to the likely continuation of weak economic
conditions."

Bloomberg recalls four Kazakh lenders, including BTA Bank, the
country's second-largest, defaulted last year after credit markets
froze and Kazakhstan's property bubble burst.


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


HARBOURMASTER CAPITAL: Fitch Takes Rating Actions on Various Notes
------------------------------------------------------------------
Fitch Ratings has downgraded 30 tranches, affirmed 18 tranches and
upgraded one tranche from five collateralized loan obligations of
leveraged loans managed by Harbourmaster Capital Limited and
advised by Harbourmaster Capital Management Limited.  In addition,
the agency has revised the Outlooks for 12 of the affirmed
tranches to Negative from Stable, whilst six of the affirmed
tranches remain on Stable Outlook.  Fitch has also assigned 35
Loss Severity (LS) Ratings and three Recovery Ratings.

The five affected CLOs are Harbourmaster CLO 3 Ltd, Harbourmaster
CLO 4 B.V., Harbourmaster CLO 5 B.V., Harbourmaster CLO 6 B.V.
and Harbourmaster Pro-Rata CLO 2 B.V.

The rating actions resolve the Rating Watch Negative status
assigned in August 2009 to 32 tranches of these 5 affected CLOs,
following a clustering of defaults during the summer of 2009 which
were compounded by continued negative rating migration in the
European leveraged loan market.

The rating actions reflect leveraged loan defaults and increasing
'CCC'-rated asset exposure in the portfolios.  Fitch employed its
global rating criteria for corporate CDOs to analyze the quality
of the underlying assets.  In accordance with the agency's cash
flow analysis criteria, Fitch also modeled the transactions'
priority of payments including relevant structural features such
as the excess spread-trapping mechanism and coverage tests.
Although some credit protection remains for the downgraded notes,
the Outlook is Negative, reflecting the increased likelihood of
further downgrades driven by lower-than-expected recoveries.  The
performance of the downgraded tranches is highly dependent on
portfolio recovery prospects.

According to the trustee reports, Harbourmaster 3 has suffered
four defaults to date as defined by the transaction documents.
However, in Fitch's view there have been six defaults to date,
which represent 10% of the target par amount of the transaction.
In addition, 16.5% of the portfolio is rated 'CCC' or lower.  As a
result of portfolio defaults, the credit enhancement of all
tranches has reduced since closing.  The downgrades of the class
A, class B1, class B2 and class C notes reflect their reduced
protection following the portfolio defaults as well as the
increased loss expectations resulting from negative portfolio
migration.

Harbourmaster 4 has suffered five defaults to date, which
represent 6% of the target par amount of the transaction.  In
addition, 13.9% of the portfolio is rated 'CCC' or lower.  As a
result of portfolio defaults, the CE of all tranches has reduced
since closing.  The affirmation of the class A1 notes reflects the
robust CE driven by overcollateralization and excess spread.  On
the July 2009 payment date, EUR0.46 million of interest proceeds
were diverted to repay the class B2E and class B2F notes due to a
breach of the Additional Coverage test.  The downgrades of the
class A2E, class A2F, class A3, class A4, class B1, class B2E and
class B2F notes reflect their reduced protection following the
defaults as well as increased loss expectations due to negative
portfolio migration.

Harbourmaster 5 has suffered eight defaults to date, which
represent 8.8% of the target par amount of the transaction.  In
addition, 14.5% of the portfolio is rated 'CCC' or lower.  As a
result of portfolio defaults, the CE of all tranches has reduced
since closing.  The affirmation of the class A1 notes reflects the
robust CE driven by OC and excess spread.  On the June 2009 and
December 2009 payment dates, a total of EUR2.9 million of interest
proceeds was diverted to repay the class B2E and class B2F notes
due to a breach of the Additional Coverage test.  The downgrades
of the class A2E, class A2F, class A3, class A4E, class A4F, class
B1E, class B1F, class B2E and class B2F notes reflect their
reduced protection following the defaults and increased loss
expectations driven by negative portfolio migration.

Harbourmaster 6 has suffered seven defaults to date, which
represent 8.3% of the target par amount of the transaction.  In
addition, 16.1% of the portfolio is rated 'CCC' or lower.  As a
result of portfolio defaults, the CE of all tranches has reduced
since closing.  The affirmation of the class A1 notes reflects the
robust CE driven by OC and excess spread.  On the last three
payment dates in April 2009, July 2009 and October 2009, a total
EUR3.9 million of interest proceeds was diverted to delever the
transaction due to a breach of the coverage tests.  The downgrades
of the class A2, class A3, class A4E, class A4F, and class B1
notes reflects their reduced protection following the defaults as
well as increased loss expectations driven by negative portfolio
migration.  Class B2 was downgraded in February 2009 and has been
affirmed.

Harbourmaster Pro-Rata 2 has suffered five defaults to date, which
represent 5.8% of the target par amount of the transaction.  In
addition, 14.8% of the portfolio is rated 'CCC' or lower.  On the
two payment dates in July 2009 and October 2009, a total EUR5
million of interest proceeds were diverted to repay the class A1T
and class A1F notes due to a breach of the class B2 OC test.
Fitch notes that the current portfolio exposure to non-euro
revolving assets is less than 1% which is noticeably lower than
the allowed limits of 15% of the target par amount.  The
transaction exposure to foreign exchange risk is thus currently
lower than what the agency initially expected.  Despite the
defaults and negative credit migration of the portfolio, the CE
levels of class A1VF, class A1T, class A2, class A3, class A4E,
class A4F, class B1E and class B1F are deemed consistent with
their current ratings and have thus been affirmed.  Class B2 was
downgraded in March 2009 and has been affirmed.

Harbourmaster 4, 5, 6 and Harbourmaster Pro-Rata 2 have 11
combination notes rated by Fitch.  Fitch's rating actions on these
combination notes are largely driven by the rating actions on the
underlying rated components of the combination notes.  In several
instances, on a rated balance basis (where excess interest is used
to reduce the combination note rated balance) the reduction of the
rated balance is greater than the underlying equity component of
the combination notes.  In addition, some of the non-equity rated
component notes are paying a fixed coupon.  In these cases, the
credit protection of these notes is sufficient to support a rating
one notch higher than the underlying rated components of the
combination notes.  This is because interest payments received
from the non-equity component will contribute to further reduction
of the rated balance.


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


MG PROBUD: Germany Has No Right to Freeze Assets, Court Says
------------------------------------------------------------
Heather Smith and Stephanie Bodoni at Bloomberg News report that
the European Court of Justice in Luxembourg on Jan. 21 ruled that
Germany didn't have the right to try to freeze assets of Polish
builder MG Probud Gdynia sp. zoo in Germany after the main
bankruptcy case had been opened in Poland in 2005.

Bloomberg relates Poland had sought the EU court's guidance on the
scope of German rights in the case.  German authorities got
involved after MG Probud, which did construction work in the
country, was declared bankrupt, Bloomberg recounts.

"Because of the universal effect which all main insolvency
proceedings must be accorded, the insolvency proceedings opened in
Poland encompass all of MG Probud's assets, including those
situated in Germany," Bloomberg quoted the EU court as saying in a
statement.  "Polish law is required to govern the treatment of
assets situated in other member states" of the EU.

According to Bloomberg, the EU tribunal ruled the German
authorities "could not validly order, pursuant to German
legislation, enforcement measures relating to MG Probud's assets
situated in Germany."


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


GAZPROMBANK: Mulls Mortgage Bond Swap; Sr. Creditors Face Losses
----------------------------------------------------------------
Esteban Duarte and Denis Maternovsky at Bloomberg News report that
OAO Gazprombank is proposing to convert EUR91.8 million  (US$129
million) of mortgage-backed securities at a below-market exchange
rate.

According to Bloomberg, Igor Rusanov -- head of structured and
syndicated finance at Gazprombank in Moscow, the lending unit of
the bank -- is seeking to convert the notes at 34.7 rubles per
euro.  The average rate in the past year has been 44.1 rubles per
euro, data compiled by Bloomberg show.

"It doesn't make sense for any senior euro note-holder to approve
such a proposal," Bloomberg quoted Shammi Malik, head of asset-
backed securities trading at London-based brokerage Brains Inc.,
as saying.  "Senior bondholders would be losing circa 20 percent
of the principal of the notes under the proposed redenomination
and receive a substantially less liquid security."

According to Bloomberg, Gazprombank said the exchange rate is
fair.

Bloomberg relates Mr. Rusanov said in an e-mailed statement the
proposal seeks to "restore liquidity of all classes of the notes
and credit ratings thereof".

Mr. Rusanov, as cited by Bloomberg, said the proposed conversion
rate is the exchange rate used between the issuer and Lehman
Brothers Holdings Inc., which arranged the original currency swap
contract on the deal.

Citing Moody's, Bloomberg discloses, Gazprombank Mortgage Funding
2 SA, the vehicle used to issue the bonds, signed a currency swap
with Lehman to lock the conversion of the ruble cashflows into
euros to pay back the most senior bonds.

Bloomberg recalls the senior bonds were initially rated A3,
Moody's seventh-highest investment grade.  They were downgraded
nine steps to B3, after Lehman filed for bankruptcy protection,
Bloomberg recounts.

Bloomberg relates Moody's said in a Jan. 22 statement it put the
senior notes on review for a further downgrade because the
proposal "will crystallize a principal loss of approximately 14%
due to the local currency depreciation from closing."  According
to Bloomberg, the lower-ranked A2, B and C ruble notes may be
upgraded from as low as Caa, nine steps below investment grade
status, Bloomberg says.  Moody's doesn't rate the class D notes,
Bloomberg says.

Gazprombank OAO (GPB OAO or Gazprombank Gas Industry JSC or
Gazprombank OJSC), previously AB Gazprombank ZAO or Aktsionernyi
bank gazovoy promyshlennosti Gazprombank ZAO --
http://www.gazprombank.ru/-- is a Russia-based bank, which
provides banking services to the enterprises and employees of such
industries as gas, chemical, engineering, defense and others.  The
Bank provides private banking services, such as cash settlements,
money transfers, deposits, plastic cards issuance and maintenance,
travel checks, consulting services, as well as corporate financing
services, including corporate finance advisory, mergers and
acquisitions buy-side consulting, mergers and acquisitions sell-
side consulting, joint ventures consulting, capital markets
consulting and others.  The Bank operates through numerous
branches and subsidiaries countrywide. It is in 41.72% owned by
Gazprom OAO.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Oct. 5,
2009, Standard & Poor's Ratings Services said that it had lowered
its long-term counterparty credit rating on Russia-based
Gazprombank to 'BB' from 'BB+' and the Russia national scale
rating to 'ruAA' from 'ruAA+'.  These ratings were removed from
CreditWatch, where they had been placed with negative implications
on June 17, 2009.  The 'B' short-term counterparty credit rating
was affirmed.  The outlook is stable.  Before the CreditWatch
placement, the outlook was negative.

"The downgrade reflects S&P's opinion of Gazprombank's exposure to
increased systemic risks that are negatively affecting its asset
quality and financial results, and hence further pressuring its
already weakened capitalization," said Standard & Poor's credit
analyst Elena Romanova.

In S&P's view, Gazprombank is particularly exposed to accelerating
credit risks, due to its systemic role in intermediating the
state's funding and lending support to strategic enterprises,
including distressed borrowers in the financial and real sectors.
Its exposure to market risk also remains high.  These factors have
already had, and will continue to have, a significant impact on
the bank's financial performance, in S&P's view.


UC RUSAL: To Start Trading Shares in Hong Kong Today
----------------------------------------------------
Bloomberg News reports that United Co. Rusal Ltd. will become the
first Russian company to trade its shares in Hong Kong today,
Jan. 27.

According to Bloomberg, the company booked net proceeds of HK$16.7
billion (US$2.1 billion) selling shares at HK$10.80 each in Hong
Kong's first initial public offering of 2010.  Bloomberg recalls
the IPO was delayed at least twice by regulators and restricted to
wealthy and corporate investors on concern about its US$14.9
billion of debt.

"It's the big institutional investors which are involved here and
they will try to support the share price, but I can't see much
interest coming from smaller investors," Bloomberg quoted Timothy
Kwai, analyst at Quam Securities, as saying in Hong Kong.  "They
know that Rusal is heavily in debt."

Bloomberg relates Rusal said in a Jan. 25 statement the IPO was
"moderately over-subscribed".  The stock will trade in blocks of
24,000 shares, or HK$259,200 at the listing price, Bloomberg
notes.

Bloomberg recalls people familiar with the sale said last week the
IPO price gives Rusal an enterprise value that is 11.7 times the
2010 earnings before interest, tax, depreciation and amortization,
or Ebitda.

                              Debate

William MacNamara, Miles Johnson and Matthew Kennard at The
Financial Times report Rusal's decision to float in Hong Kong has
touched off debate in the London-based mining finance world about
the merits of alternative listings.

The FT notes a range of operators in the industry are, however,
confident that London will remain the destination of choice for
mining initial public offerings.

According to the FT, the Hong Kong offering, the first by a
Russian company there, was sold to investors on strategic grounds.
Rusal's main owner Oleg Deripaska argued that his Siberian
smelter's proximity to the key Chinese market meant that Asia was
its natural home, the FT states.

The FT relates bankers say a Hong Kong listing makes the most
sense for mining companies that not only sell commodities to China
but also own assets either there or in Mongolia, a swiftly
emerging resource frontier.

"What is really drawing people to consider Hong Kong is the idea
that one can get a higher valuation there," the FT quoted Peter
Bacchus, global head of mining investment banking at Morgan
Stanley, as saying.  "Peer-group companies that might trade at
eight times earnings in London are perceived to trade at, for
instance, 10 times earnings in Hong Kong.  However, without a
specific China angle as rationale, a company listing there may
lack credibility and find the valuation uplift illusionary."

RUSAL -- http://www.rusal.com/-- is among the world's top
aluminum producers, along with Rio Tinto Alcan and Alcoa.  Formed
in 2000 from various parts of the old Soviet state apparatus,
RUSAL produces about 4 million tons of aluminum, 11 million tons
of alumina, and 6 million tons of bauxite.  Its aluminum business
include packaging and foil operations in addition to a network of
smelters.  Those Soviet spare parts were significantly augmented
in 2007 when the company merged with fellow Russian aluminum
producer Sual and Glencore's alumina unit.  RUSAL is majority
owned by Board member Oleg Deripaska, who had owned the company
completely prior to the merger.


UC RUSAL: Guinean Gov't Demands Share of IPO Proceeds
-----------------------------------------------------
Tom Burgis, Tom Mitchell and Catherine Belton at The Financial
Times report that the Guinean government has weighed in on UC
Rusal's US$2.2 billion initial public offering, demanding that
part of the proceeds go towards clearing US$860 million it says it
is owed in damages by the Russian aluminium company.

According to the FT, the authorities in the world's biggest
exporter of bauxite, the ore used to make aluminium, wrote to the
Hong Kong stock exchange earlier this month saying that Guinea's
claims against the company were "materially important . . . to any
potential investors for the offering".

Rusal, which is controlled by Russian oligarch Oleg Deripaska,
said it was not aware of any correspondence between Mahmoud Thiam,
minister of mines in the outgoing government, and the HKSE, the FT
relates.  The FT notes the company argues that Guinean courts do
not have jurisdiction over the dispute, which it says should be
referred for international arbitration.

"Rusal has fully disclosed all relevant details regarding Guinea
in its prospectus and has nothing new to add," the FT quoted a
spokesperson as saying.  "The company does not believe that any
resulting liabilities will materially affect the group's financial
position or its operations as a whole."

Rusal, which has debts of US$14.9 billion, faces more than US$5.2
billion in total potential legal liabilities but has only made
provision for US$39 million, the FT says.

The FT recalls Rusal acquired the Friguia bauxite mine and alumina
refinery from Guinea in 2006.  In September a Guinean court
declared the sale null and void, backing a government suit that
the deal had breached privatization rules, the FT recounts.

As reported yesterday by the Troubled Company Reporter-Europe,
Bloomberg News said Rusal raised HK$17.4 billion (US$2.2 billion)
in the first initial public offering by a Russian company in Hong
Kong.  According to Bloomberg, three people familiar with the sale
said the company priced 1.61 billion new shares, or a 10.6%, at
HK$10.80 each.  Bloomberg disclosed Rusal plans to begin trading
in Hong Kong on today, Jan. 27, and list depositary receipts in
Paris.  Bloomberg said Rusal will use its IPO proceeds to cut
debt.  Bloomberg recalled borrowings almost doubled after the
company bought a quarter of OAO GMK Norilsk Nickel before
commodity prices collapsed in 2008.  The company cut borrowings to
US$14.9 billion, while extending repayments to as long as seven
years, in the debt restructuring completed in December, Bloomberg
noted.

RUSAL -- http://www.rusal.com/-- is among the world's top
aluminum producers, along with Rio Tinto Alcan and Alcoa.  Formed
in 2000 from various parts of the old Soviet state apparatus,
RUSAL produces about 4 million tons of aluminum, 11 million tons
of alumina, and 6 million tons of bauxite.  Its aluminum business
include packaging and foil operations in addition to a network of
smelters.  Those Soviet spare parts were significantly augmented
in 2007 when the company merged with fellow Russian aluminum
producer Sual and Glencore's alumina unit.  RUSAL is majority
owned by Board member Oleg Deripaska, who had owned the company
completely prior to the merger.


* RUSSIA: S&P Sees Low Recovery for Bank Debt Holders on Poor Laws
------------------------------------------------------------------
Paul Abelsky at Bloomberg News reports that Standard & Poor's said
debt holders of failed banks in Russia, Kazakhstan and Ukraine may
recover fewer funds in 2010 and 2011 because of inadequate
bankruptcy laws and weaknesses in the three countries' banking
systems.

"Recoveries could be restricted and unpredictable, largely because
of limited bank supervision and what we see as arbitrary
frameworks for bankruptcy and bank restructuring in Kazakhstan,
Russia and Ukraine," Bloomberg quoted Sergey Voronenko, an S&P
credit analyst in Moscow, as saying in a Jan. 20 report.

Bloomberg relates Ekaterina Trofimova, an S&P credit analyst in
Paris, said "While the recovery rate is expected to reach less
than 40% in the three nations, creditors may recoup even less this
year and in 2011 owing to the likely continuation of weak economic
conditions."

According to Bloomberg, Russia's state-run Deposit Insurance
Agency, which was mandated by law in October 2008 to support
failing lenders, has taken 18 banks under temporary administration
and helped them find investors.  Bloomberg recalls Gennady
Melikyan, a first deputy chairman of Bank Rossii, said on Dec. 22
the central bank has revoked the licenses of 90 banks since
September 2008.


* RUSSIA: Repays Remaining Debt to London Club of Creditors
-----------------------------------------------------------
RIA Novosti reports that the Finance Ministry said on Monday
Russia has paid off the remaining Soviet-era commercial debt to
the London Club of creditors, which was not swapped for Russia's
Eurobonds.

According to the report, the debt remainder was paid off in late
2009 when the Finance Ministry transferred US$1 million to London
Club creditors in exchange for their debt instruments.

"No further talks with the debt holders that failed to file claims
on their London Club instruments or accept a debt reschedule offer
made in 2009 are planned," the report quoted the ministry as
saying in a statement.

The report recalls in 1997, Russia rescheduled its debt to the
London Club of commercial creditors when its principal debt was
converted into Principal Notes (PRINs) and interest into Interest
Arrears Notes (IANs).

The report recounts after the 1998 financial crisis, Russia ran
into difficulties with its debt service and in 2000 agreed a
second restructuring with the London Club, under which PRINs and
IANs were swapped for Russia's sovereign Eurobonds worth US$31.7
billion with maturities in 2010 and 2030.

Overall, the Finance Ministry has made four debt swap offers,
which have been accepted by 99.9% of creditors, the report notes.


===========
S W E D E N
===========


GENERAL MOTORS: Has Deal with Spyker to Sell Saab
-------------------------------------------------
General Motors and Spyker Cars NV on Tuesday confirmed that they
have reached a binding agreement on the purchase of Saab
Automobile AB.

"[Tues]day's announcement is great news for Saab employees,
dealers and suppliers, great news for millions of Saab customers
and fans worldwide, and great news for GM," said John Smith, GM
vice president for corporate planning and alliances.

"General Motors, Spyker Cars, and the Swedish government worked
very hard and creatively for a deal that would secure a
sustainable future for this unique and iconic brand, and we're all
happy for the positive outcome," Mr. Smith said.

As part of the agreement, Spyker intends to form a new company,
Saab Spyker Automobiles, which will carry the Saab brand forward.
The sale will be subject to customary closing conditions,
including receipt of applicable regulatory, governmental and court
approvals.  Other terms and conditions specific to the sale will
be disclosed in due time.

The Swedish government is at present reviewing the transaction and
the related request for guarantees of a Saab Automobile loan that
has been requested from the European Investment Bank.  Assuming
quick action, the transaction is expected to close in mid-
February, and previously announced wind down activities at Saab
will be immediately suspended, pending the close of the
transaction.

"Throughout the negotiations, GM has always had the hope to find a
solution for Saab that would avoid a wind down of the brand,"
added Nick Reilly, president, GM Europe.  "We've worked with many
parties over the past year, including governments and investors,
and I'm very pleased that we could come to such a good conclusion,
one that preserves jobs in Sweden and elsewhere.  GM will continue
to support Saab and Spyker on their way forward."

Saab entered the auto business in 1949 with the first model 92.
Its aerodynamic shape and advanced technology drew from the
company's roots as an aircraft maker, and helped create what was
to become a loyal and passionate customer base.  GM acquired a 50%
stake in Saab in 1990, and acquired the balance of Saab in 2000.
As part of its strategy to focus on its four strongest brands in
the U.S., GM began seeking a buyer for Saab in January 2009, a
concerted effort that led to [Tues]day's announcement.

Spyker agreed to pay GM at least US$74 million in cash, while the
European Investment Bank will provide a EUR400 million (US$566
million) loan guaranteed by the Swedish government, Michael
Corkery and Sharon Terlep at The Wall Street Journal reports,
citing people familiar with the matter.

According to the WSJ, a person familiar with the terms said as
part of the deal, GM would retain redeemable shares of US$326
million in Saab.

Saab has total assets, including plants, equipment and cash, of
about EUR1 billion, and liabilities of EUR528 million, the WSJ
states.

Spyker, the WSJ says, intends to change its name to Saab Spyker
Automobiles.

As part of its financing package, Spyker would receive a US$50
million loan from Tenaci Capital B.V., which is owned by the Dutch
sports-car maker chief executive Victor Muller, the WsJ discloses.
Meantime, Spyker's chairman, the Russian banker Vladimir Antonov,
has agreed to effectively cash out of the company and sell his
shares to Tenaci, the WSJ notes.

Ola Kinnander at Bloomberg News reports Sergio Marchionne, chief
executive officer of Fiat SpA and Chrysler Group LLC., said Saab
would face a tough future under the ownership of Spyker.

"I like the Saab brand," Bloomberg quoted Mr. Marchionne as saying
at an event in Stockholm Tuesday.  "I think it's very difficult to
be a niche player and profitable."

"Marginal players will continue to be marginalized,"
Mr. Marchionne said, according to Bloomberg.  "We cannot build it
on hopes and dreams."

                               Genii

Jeff Bennett and Anna Marij van der Meulen at Dow Jones Newswires
report that Luxembourg investment firm Genii Capital said it has
withdrawn its bid for General Motors Co.'s Saab division.

Dow Jones relates the firm wrote in a statement published on its
Web site Monday "Unfortunately, Genii Capital believes that the
timing of the next stage of the shutdown process at Saab is not
compatible with its requirements for putting in place a solid
business platform for the future and closing the transaction."

Dow Jones recalls Genii Capital, along with a consortium of
investors including Formula One motor racing entrepreneur Bernie
Ecclestone, made an undisclosed offer earlier this month to buy
the Saab.

                        About General Motors

General Motors Company -- http://www.gm.com/-- is one of the
world's largest automakers, tracing its roots back to 1908.  With
its global headquarters in Detroit, GM employs 209,000 people in
every major region of the world and does business in some 140
countries.  GM and its strategic partners produce cars and trucks
in 34 countries, and sell and service these vehicles through these
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel,
Vauxhall and Wuling.  GM's largest national market is the United
States, followed by China, Brazil, the United Kingdom, Canada,
Russia and Germany.  GM's OnStar subsidiary is the industry leader
in vehicle safety, security and information services.

GM acquired its operations from General Motors Company, n/k/a
Motors Liquidation Company, on July 10, 2009, pursuant to a sale
under Section 363 of the Bankruptcy Code.  Motors Liquidation or
Old GM is the subject of a pending Chapter 11 reorganization case
before the U.S. Bankruptcy Court for the Southern District of New
York.

At September 30, 2009, GM had US$107.45 billion in total assets
against US$135.60 billion in total liabilities.

                    About Motors Liquidation

General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case
No. 09-50026).  General Motors changed its name to Motors
Liquidation Co. following the sale of its key assets to a company
60.8% owned by the U.S. Government.

The Honorable Robert E. Gerber presides over the Chapter 11 cases.
Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H.
Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors
in their restructuring efforts.  Al Koch at AP Services, LLC, an
affiliate of AlixPartners, LLP, serves as the Chief Executive
Officer for Motors Liquidation Company.  GM is also represented by
Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as
counsel.  Cravath, Swaine, & Moore LLP is providing legal advice
to the GM Board of Directors.  GM's financial advisors are Morgan
Stanley, Evercore Partners and the Blackstone Group LLP.

Bankruptcy Creditors' Service, Inc., publishes General Motors
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by General Motors Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


===========
T U R K E Y
===========


YASAR HOLDING: Fitch Affirms Issuer Default Ratings at 'B'
----------------------------------------------------------
Fitch Ratings has affirmed Turkish company Yasar Holding A.S.'s
Long-term foreign and local currency Issuer Default ratings at 'B'
and its National Long-term rating at 'BBB-(tur)'.  The Outlook for
Yasar's IDRs and National Long-term rating is Negative.

Fitch has also affirmed financing subsidiary Troy Capital S.A.'s
EUR200 million of senior unsecured notes at 'B' with Recovery
Rating 'RR4'.  These notes benefit from upstream guarantees from
seven of Yasar's subsidiaries, including five of its six Istanbul-
listed subsidiaries, and therefore rank equally with unsecured
debt at the group's subsidiaries.

The affirmations reflect Yasar's diverse range of products in
food, beverages and paint, and strong market shares within
particular product categories.  These factors are balanced against
the challenges of managing a widely diversified holding company,
growing competition from other branded and private label products,
and Yasar's uneven operating performance.  The Negative Outlook
reflects medium-term refinancing risk, with significant debt
maturities in 2011 and 2013, and limited headroom in certain of
the company's loan covenants.

Yasar's revenues declined 18.7% y-o-y in 9M09, primarily due to
the downsizing of its animal feed raw material importation
business, but also to lower revenues in the food and beverage and
paint segments.  EBITDA was nonetheless up slightly in the nine
months due to higher EBITDA from the food and beverage and tissue
segments, reflecting lower input costs and a reduction in
operating expenses.

Yasar's financial leverage (net debt/EBITDA) improved to 3.7x at
September 30, 2009 from 4.1x at end-2008, due to debt repayment
enabled by a significant reduction in capex and better management
of working capital.  Net leverage is expected to drift lower as
the company accumulates cash to help repay debt maturities in
August 2011 (EUR200 million notes issued by financing subsidiary
Troy Capital) and 2013 (EUR119 million loan -- swapped to lira).
Moderate levels of free cash flow are expected going forward, but
would not be sufficient to enable the company to fully repay the
notes in 2011.

To cover this shortfall, the group could draw on its available
uncommitted bank lines, engage in asset sales, or, assuming
favorable market conditions, issue a new bond.  The potential for
meaningful asset sales is uncertain in the current fragile
economic environment, making it likely that the group will have to
refinance a portion of the 2011 notes.

Yasar is an Izmir, Turkey-based holding company engaged in the
food and beverage, paint, tissue and services sectors.  The
company enjoys leading market shares in UHT milk, spreadable
cheese, charcuterie and frozen meals as well as industrial
coatings and printing inks.


=============
U K R A I N E
=============


UKRPROMBANK LLC: Moody's Downgrades Deposit Ratings to 'C'
----------------------------------------------------------
Moody's Investors Service has downgraded Ukrprombank's local and
foreign currency deposit ratings to C from Caa3, and the National
Scale Rating to C.ua from Caa3.ua.  Ukrprombank's E Bank Financial
Strength Rating remains unchanged.  All global scale ratings of
Ukrprombank carry a stable outlook.

Moody's downgrade of the bank's ratings follows the decision of
the central bank (National Bank of Ukraine or NBU) on January 21,
2010 to withdraw Ukrprombank's banking license and initiate
liquidation procedures.  According to the NBU, the license was
withdrawn due to the bank's poor financial position and the need
to preserve its remaining assets.  Ukrprombank had been under
NBU's temporary administration since January 2009.  In November
2009 the Ukrainian government decided to transfer the deposits and
performing assets of Ukrprombank to the state-owned Rodovid Bank.

Moody's understands that most of Ukrprombank's deposits have
already been transferred to Rodovid Bank, while the mechanism of
the bank's remaining assets distribution has not yet been
finalised.  Given that the bank has completely depleted its equity
and there is uncertainty regarding the distribution of the bank's
remaining assets, Moody's believes that any recovery for
Ukrprombank's creditors is likely to be limited.

Moody's notes that, as of the date of this rating action,
Ukrprombank had no senior unsecured, subordinate or structured
finance obligations rated by Moody's.

The previous rating action on Ukrprombank was implemented on
November 10, 2009, when Moody's downgraded Ukrprombank's local and
foreign currency deposit ratings to Caa3 from Caa2 and the
National Scale Rating to Caa3.ua from B3.ua, and placed these
ratings on review for a possible further downgrade.

Headquartered in Kiev, Ukraine, Ukrprombank reported total assets
of UAH10.2 billion and total equity was a negative UAH1.8 billion
according to Ukrainian Accounting Standards at end-Q3 2009.


* UKRAINE: S&P Sees Low Recovery for Bank Debt Holders
------------------------------------------------------
Paul Abelsky at Bloomberg News reports that Standard & Poor's said
debt holders of failed banks in Russia, Kazakhstan and Ukraine may
recover fewer funds in 2010 and 2011 because of inadequate
bankruptcy laws and weaknesses in the three countries' banking
systems.

"Recoveries could be restricted and unpredictable, largely because
of limited bank supervision and what we see as arbitrary
frameworks for bankruptcy and bank restructuring in Kazakhstan,
Russia and Ukraine," Bloomberg quoted Sergey Voronenko, an S&P
credit analyst in Moscow, as saying in a Jan. 20 report.

Bloomberg relates Ekaterina Trofimova, an S&P credit analyst in
Paris, said "While the recovery rate is expected to reach less
than 40% in the three nations, creditors may recoup even less this
year and in 2011 owing to the likely continuation of weak economic
conditions."


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


AGORA: Buyer Not Yet Found; No Sale Deadline Set
------------------------------------------------
Stuart Legg at Milton Keynes Citizen reports that Simon Harris at
restructuring and recovery firm Baker Tilly, which has been
appointed administrators for the Agora, said that a buyer had not
yet been found for the group and no deadline had been set to find
one.

The report recalls Agora's parent company, Ablethirdc Ltd., was
placed into administration in December.  Ablethirdc, the report
says, has heavy debts and traders in Bletchley and Wolverton have
been left facing an uncertain future.

According to the report, Graham Bushby from the Milton Keynes
branch of Baker Tilly said the restructuring and recovery firm was
in talks with more than 20 interested companies.

"There was little or no risk to the businesses in the Agora," the
report quoted Mr. Bushby as saying.  "We are communicating with
the businesses in the Agoras and would endeavor to resolve their
concerns positively if a buyer could not be found."

The Agora group consists of four companies which, between them,
operate over 100 sites nationwide and employ in the region of 500
people.


CRYSTAL CREDIT: Moody's Reviews Ratings on Two Classes of Notes
---------------------------------------------------------------
Moody's Investors Service said it is reviewing these notes issued
by Crystal Credit Ltd for possible downgrade:

  -- EUR108 million Class 2005-A Principal at Risk Variable Rate
     Notes due June 30 2012, placed on review for possible
     downgrade, previously on 12 August 2009 downgraded to Ba1

  -- EUR81 million Class 2005-B Principal at Risk Variable Rate
     Notes due June 30, 2012, placed on review for possible
     downgrade, previously on 12 August 2009 downgraded to Caa1

The rating action has been prompted by the continued increase in
the reported aggregate losses and provisions from the cedant
insurers as well as the difficulty assessing the risk exposure in
the loss development period.  In addition to the transaction's
regular reporting, Moody's has received updated confidential
revised loss estimates from Swiss Re.  Based on this information
and Moody's opinion on wider macro-economic issues, Moody's has
revised its loss projections for this transaction.  The revised
projections now place the expected aggregate losses at
approximately EUR735 million for the underwriting years 2006, 2007
and 2008.  This constitutes an increase of EUR15 million from the
projections made in August 2009.  The increased losses have now
exceeded the attachment point for the Class B notes (at
EUR729 million).  As such, it is now expected that the Class C
notes will experience a total loss and the Class B notes will
experience a loss of approximately 7.5%.  The probability of
losses occurring on the Class A notes has also increased.

Moody's also notes that assessing the future exposure to losses is
difficult due to the nature of the underlying insurance policies.
Given the information currently available for Moody's analysis, it
is not possible to accurately estimate the remaining risk exposure
of the Issuer.

The losses from underwriting years 2006 and 2007 are now well
developed and provisioned for and Moody's expects the ultimate
losses to be in line with current paid and provisioned losses.
However, losses from underwriting year 2008 are expected to
develop further.  In order for Moody's to assess the risk posed by
this underwriting year, it will seek further information from the
Issuer.  Given the inherent uncertainties, it is likely that the
Class A notes will be downgraded by several notches at the end of
the review.

The transaction transfers credit risk on a mezzanine tranche of a
pro-rata share of Swiss Re's trade credit re-insurance business
(Swiss Re retains a 10% minimum share).  The transaction is
structured around the ratio of ceded losses to the gross premium
received by Swiss Re from cedant insurers.  The Issuer will pay a
protection amount to Swiss Re if the aggregate losses for
underwriting years 2006, 2007 and 2008 exceed EUR666 million.
This protection amount will be drawn from the proceeds of the sale
of the notes, which will otherwise be repaid to noteholders at the
transaction's maturity.

The various attachment points, as a ratio of claims and reserves
to gross premium are: Class A: 90%, Class B: 81%, Class C: 74%


FLYGLOBESPAN: PwC Puts Last Plane Up for Sale to Repay Creditors
----------------------------------------------------------------
Stephen Stewart at Sunday Mail reports that Flyglobespan's last
plane is being sold off by administrators PricewaterhouseCoopers.

According to the report, the administrators hope to raise GBP40
million for people owed money by the company.

The administrators have sent Flyglobespan's other leased planes
back to their original owners, the report notes.

Other Flyglobespan assets in the sale include aircraft parts,
office and IT equipment, and properties in Glasgow and Edinburgh,
the report discloses.

Citing PricewaterhouseCoopers, the report says it is believed that
E-Clear owed the Edinburgh-based Flyglobespan GBP35million -- but
the money was "no longer there."

As reported by the Troubled Company Reporter-Europe, 4,500
Flyglobespan customers were stranded by the airline's collapse in
mid-December and 550 staff lost their jobs.

On Jan. 21, 2010, the Troubled Company Reporter-Europe reported
that Mr. Justice Vos at the High Court on Jan. 19 approved the
order for the administration of E-Clear plc, following the failure
of the company to submit evidence of funds on Friday, Jan. 22.
BDO has been appointed administrator.

Bruce Cartwright of PricewaterhouseCoopers LLP, Globespan's
administrator, said: "Over the last month we have sought financial
reassurance from E-Clear and are disappointed that the funds are
no longer there.  We will now work closely with BDO to maximize
the situation for Globespan creditors under exceptional
circumstances.

"Those who bought services on credit card or visa debit, that have
not been supplied, will continue to be protected by consumer card
legislation and should contact their credit card issuer."

Peter Jones and Michael Herman at The Times reported that E-Clear
collapsed with debts estimated at GBP100 million, nearly three
times the amount owed to Globespan.  According to the Times,
papers shown to the High Court in London Tuesday said that E-Clear
had less than GBP10 million in two bank accounts, while the
personal account of Elias Elia, the owner, was empty.  The Times
said investigators for BDO, the accountancy firm appointed by the
court to administer E-Clear, are now looking for GBP90 million and
trying to establish whether Globespan was the victim of fraud or
incompetence. Simon Mortimer, QC, for PwC, said that E-Clear had
not complied with an order made by the court to prove that it had
the GBP35 million owed to Globespan, the Times disclosed.

        About Globespan Group plc/Globespan Airways Limited

Established in 1970, the company provided flight only and package
holidays to a number of destinations across Europe as well as
Orlando in America from airports in Aberdeen, Edinburgh and
Glasgow.

Globespan Group plc also operates flights between the U.K. and the
Falkland Islands under a MOD contract.  The company's subsidiary
Alba Ground Holdings Ltd is also contracted to manage the baggage
check-in for Flybe at Glasgow and Edinburgh airports.


JS CHILDRENSWEAR: Administrators Seek Buyer for Business
--------------------------------------------------------
Paul Clark, Partner at MCR, has confirmed that the business and
assets of JS Childrenswear Limited, better known as the Adams
retail chain, are being offered for sale.

"We are already seeing significant interest in the business and
assets of the Company with a number of interested parties having
already come forward," stated Mr. Clark.  "We are still undergoing
a process of determining the viability of the business and while
it is too early to make any further announcement on who those
interested parties may be, I can confirm that the Company is still
trading with a view to securing a going concern sale."

The 75-year-old business, which trades under the brand name of
Adams, has more than 107 stores in the UK and a further 19
concessions in the UK and Eire and employs over 1,100 staff.

Operating from its base in Nuneaton, Adams is one of the largest
independent childrenswear retailers in the UK, which at its height
had 271 own brand stores and concessions throughout the UK trading
under Adams Kids.  Additionally, the company supplies Boots with
the Mini Mode own brand range.


KAYE ENGINEERING: In Administration; Fisher Partners Appointed
--------------------------------------------------------------
Metal Bulletin reports that UK aluminium diecaster Kaye
Engineering, which trades as Kaye Presteigne, has gone into
administration.

Citing a filing at Companie House, the report says Brian Johnson
and David Birne of Fisher Partners in London have been appointed
as administrators.

Kay Presteigne, like other diecasters in the country, has been
under pressure from a lack of credit insurance and raw materials
price volatility, the report discloses.


NW PRINT: In Administration; Begbies Seeks Buyer for Assets
-----------------------------------------------------------
Adam Hooker at Print Week reports that NW Print and Envolve2 have
shut down after going into administration.

The report relates Julian Pitts, of Begbies Traynor, was appointed
as administrator for the Blackburn-based businesses December 18,
immediately making all staff redundant.

According to the report, a spokeswoman for Begbies said Envolve2,
which was launched by NW Print last year, was "too specialist".

"Both businesses just ran out of steam," the report quoted the
spokeswoman as saying.

Begbies is now in the process of selling Envolve2's assets, the
report notes.

NW Print handled direct mail and print services, while Envolve2
was a bespoke envelope manufacturer, which put together mail packs
from start to finish, including the envelope.


SMITHSON PUBLICATIONS: Hearing on Wind-up Petition Set for Feb. 24
------------------------------------------------------------------
The Secretary of State for Business, Innovation and Skills has
presented a petition before the High Court to wind up Smithson
Publications Limited in the public interest.

The company operated by cold-calling small businesses, seeking
sponsorship of child safety booklets which it sent to schools on
an unsolicited basis.

The petition to wind up the company was presented following an
investigation carried out by Companies Investigation Branch under
section 447 of the Companies Act 1985 (as amended).

The Official Receiver has been appointed as Provisional Liquidator
of the company.  The role of the Provisional Liquidator is to
protect and preserve the assets and financial records of the
company pending the determination of the winding-up petition.

The case is now subject to High Court action and no further
information will be made available until the petition is heard on
February 24, 2010.

Smithson Publications Limited was incorporated on July 2, 2009.
Its registered office and trading address is at 20 Manor Street,
Bolton BL1 1TU.

The petition to wind up the company in the public interest was
presented under s124A of the Insolvency Act 1986 on December 9,
2009.  The Official Receiver was appointed as Provisional
Liquidator of the company on December 15, 2009.


TATA MOTORS: Jaguar Land Rover CEO David Smith to Step Down
-----------------------------------------------------------
Robert Lea at The Times reports that Tata Motors Ltd. said Jaguar
Land Rover chief executive David Smith was leaving the company.

The report relates Jaguar Land Rover, owned since 2008 by Tata
Motors, said Mr. Smith would be replaced by Ravi Kant, a fellow
director.

The company, which is based in Gaydon in Warwickshire, declined to
comment on why Mr. Smith was leaving but insisted that his
departure was not linked to the breakdown of talks with unions
over the weekend.

The report says speculation was growing Monday night that
Mr. Smith's departure was linked to his plans to close at least
one of its West Midlands factories, either in Solihull, where it
makes the Range Rover, or the Jaguar plant in Castle Bromwich, and
impose a series of new working conditions.

Mr. Smith had been trying to force through a 20% cut in salaries
for new employees and end the company's final-salary pension
scheme for new starters, the report discloses.

                        About Tata Motors

India's largest automobile company, Tata Motors Limited --
http://www.tatamotors.com/-- is mainly engaged in the business
of automobile products consisting of all types of commercial and
passenger vehicles, including financing of the vehicles sold by
the company.  The company's operating segments consists of
Automotive and Others.  In addition to its automotive products,
it offers construction equipment, engineering solutions and
software operations.  TML is listed on the Bombay Stock
Exchange, the National Stock Exchange of India and New York
Stock Exchange.  It was ultimately 33.4% owned by the Tata Group
as of December 2007.

Tata Motors has operations in Russia and the United Kingdom.

                           *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 6, 2009, Standard & Poor's Ratings Services said that it had
lowered its long term corporate credit rating on India-based Tata
Motors Ltd. to 'B' from 'B+'.  The outlook is negative.  At the
same time, Standard & Poor's lowered the issue rating on the
company's senior unsecured notes to 'B' from 'B+'.  Both ratings
were removed from CreditWatch, where they were placed with
negative implications on December 18, 2009, and refreshed in
March 2009.

The TCR-AP reported on Oct. 26, 2009, that Standard & Poor's
Ratings Services assigned its 'B' rating to the US$375 million 5-
year 4% convertible notes issued by Tata Motors Ltd.
(B/Negative/--) on Oct. 15, 2009.


* UK: FSA Probes Two Firms Over Client-Money Segregation
--------------------------------------------------------
Caroline Binham at Bloomberg News reports that the Financial
Services Authority is investigating two firms after finding they
weren't properly keeping track of their client accounts.

According to Bloomberg, the FSA said another firm has had its
assets frozen and others have had to commission independent
reports.

Bloomberg says the FSA put firms on notice over the need to
properly segregate client money in March, following the September
2008 bankruptcy of Lehman Brothers Holdings Inc.  Creditors, who
have filed more than US$830 billion of claims, and regulators are
trying to unravel the complexity of how money was moved around the
group's global units, Bloomberg discloses.

"It is simply unacceptable that firms are not ensuring that
consumers get the appropriate protection," Bloomberg quoted Sally
Dewar, the FSA's managing director of risk, as saying.  "We have
pointed out our concerns to firms and will be following up these
concerns with further visits this year."

The firms under investigation face fines or a ban of members of
their staff, Bloomberg states.

According to Bloomberg, the FSA's investigations may be hampered
by a judgment involving Lehman's European unit.  Bloomberg notes
the December judgment from a London court said that the FSA's
client-money rules were "patently inconsistent and flawed."


* UK: Corp. Tax Repayment Delays to Worsen Firms' Cashflow Burden
-----------------------------------------------------------------
Cash-strapped businesses are waiting twice as long for repayments
of Corporation Tax from HM Revenue & Customs (HMRC) as they were a
year ago, leaving many facing severe cashflow problems, says UHY
Hacker Young, the national accountancy group.

UHY Hacker Young says that many of its clients are now waiting
more than a month for Corporation Tax repayments with some waiting
two months or more.  Less than a year ago the average turnaround
on repayments was just seven to fourteen days.

According to UHY Hacker Young, the recession means that a growing
number of businesses have made losses and so are entitled to claim
back Corporation Tax paid in previous years.  In this years Budget
the Government announced that businesses reporting a loss would
temporarily be able to claim up to an additional 50,000 of tax
relief in earlier years to help ease financial stress during the
downturn.

Rob Durrant-Walker, Tax Manager, at UHY Hacker Young, commented:
"The last thing businesses need is delays waiting for Corporation
Tax refunds refunds to which they are fully entitled.  The
financial distress caused by such delays will only add to the woes
of companies already facing a struggle for survival.  Unlike the
self assessment system for individuals where repayments are
largely automated, subject to security checks, all corporation tax
repayments have to be processed manually by HMRC staff.

"One small business we advise only just received a repayment for
35,000 after the claim was filed electronically five weeks ago.
Normally that repayment would be handled in about a week."

Mr. Durrant-Walker added: "We now often have to chase HMRC for
repayments before clients receive their money."

UHY Hacker Young says that the increased delays in Corporation Tax
refunds may also be due to HMRC recently changing the way in which
it deals with Corporation Tax, centralizing it into a small number
of large regional offices.

Mr. Durrant-Walker added: "Claims are no longer processed at the
nearest local tax office.  For example, all Corporation Tax claims
in York used to be dealt with in the York tax office but are now
processed in Nottingham, along with claims from several other
regions.

"The huge rise in businesses posting losses during the recession
has lead to a sharp increase in Corporation Tax repayment claims.
This has no doubt had an impact on the speed of processing
repayments, but these changes to HMRC's working operations are
slowing things down even further at the worst possible time.

"I'm sure HMRC will say that this streamlining of their operations
will be of long-term benefit to businesses but you really do have
to question the wisdom of HMRC's decision to implement these
changes in the middle of a recession."


* UK: Staycation to Blame for Rising Hotel Insolvencies, PwC Says
-----------------------------------------------------------------
Over the winter period the rate at which companies became
insolvent fell across all UK sectors, except Hospitality & Leisure
(H&L) which experienced a 12% rise in the number of business
failures during Q4 2009, PricewaterhouseCoopers LLP revealed
Monday.

This increase was driven by a 68% hike in hotel insolvency levels
from Q3 to Q4 last year, and a 31% increase year on year.

Due to advanced bookings, the hotel and travel market tends to lag
behind pubs and restaurants in a recession -- the reason for the
high level of hotel insolvencies since Winter 2008.  The last
quarter of 2009 saw the highest level of hotel insolvencies over
the course of the recession.

As the first few months of the year tend to signal a notoriously
quiet trading period, levels may continue to rise in Q1.

David Chubb, partner, PricewaterhouseCoopers LLP, said:
"Individual hotels based in the provinces and not affiliated with
a major brand have continued to suffer from poor occupancy and low
rates.  We expect this to continue into 2010.

Despite the spending cutbacks in both the corporate and leisure
sectors, London remains a must-see destination for both UK and
global travelers benefiting from the weak pound.  However the
regional market which relies more heavily on corporate activity is
feeling the full force of the recession.

"While we are currently in a period of low interest rates, many
companies are not benefiting from this because they bought fixed
interest rate products.  Which means they are suffering from their
debt burden," Mr. Chubb added.

             Consumers Swap Hotels for Canvas and Parks

Early warm weather indicators drove hoards of holidaymakers to
campsites and holiday parks in a mass exodus last Easter.  In fact
a PwC poll* showed a 12% increase in consumers choosing this type
of self sufficient break over a trip abroad or a stay in a UK
hotel.

This winter 20% more people chose to forgo their usual Winter
break of jetting off for Christmas sun, holidaying in the UK or
hitting the ski slopes, than in 2008.

David Chubb, partner, PricewaterhouseCoopers LLP, said "In
addition to the absence of the corporate traveler, the
substitution of hotel visits for staycations and camping has taken
its toll on hotels, particularly in the provinces.

"With the advent of glamping and up-market campsites such as
Feather Down Farms the British countryside was becoming more
cosmopolitan.  This trend aided by an unexpectedly warm Spring,
the squeeze on consumer spend, a widespread lack of job security
and the euro pound parity, drove a cyclical and short term shift
to self catering, camping and caravanning.

"Very few hotel owners have experience of operating in the current
harsh climate, and must identify realistic options, diagnose
problems, and implement a survival strategy.  The options could
include financial or operational restructuring, strategic
partnering or joint ventures, cost reductions or simply tighter
cash flow management," Mr. Chubb concluded.


* UK: Businesses Not Expecting Recovery in Trading Conditions
-------------------------------------------------------------
A third of UK businesses are not expecting trading conditions to
recover from current levels for at least a year, suggesting firms
are taking only tentative steps towards recovery despite expected
GDP growth in Q4 of 2009, according to the latest Bibby Financial
Services Business Factors Index.

The study reveals:

    * Q4 2009 saw the Index average the measure of output across
all of the sectors within the Index -- rise 2.5 points higher than
the previous quarter, signaling a slight return to growth at the
end of 2009.

    * Despite an improved outlook in Q4, business owners remain as
reluctant about a recovery over the next six months as they were
in Q3 of 2009.

    * Almost half (48%) feel their business is experiencing the
same conditions as six months ago a slight increase from 46% for
the previous quarters Index

    * Indeed, businesses are more negative about the long-term,
with the number of businesses stating they do not expect trading
conditions to improve for at least a year rising to 33% from 19%
from the last Index

    * One in 10 (13%) do not expect trading conditions to improve
for at least two years this has increased slightly from 11%
reported in the last Index indicating most businesses feel they
are not out of the woods yet

    * One in 10 (10%) predict the market will remain in recession
for three years or more suggesting there are a number of business
owners for whom the outlook remains bleak

More encouragingly, however:

    * The number of businesses expecting a recovery by Summer this
year has increased from one in 10 to one in five (18%) and 11% of
businesses surveyed believe that trading conditions will improve
come Springtime

    * In 2009, the Index was at its highest in September, in line
with market activity in the lead-up to Christmas, mirroring CBI
predictions that UK GDP was set to grow by 0.5% in Q4 with
consumers bringing spending forward in advance of the VAT increase

    * Businesses in Scotland (10%), the South West (8%) and the
North West (5%) are most optimistic about seeing green shoots from
the last quarter of 2009 no other regions felt that they would
experience this kind of recovery

    * The manufacturing and transport & storage sectors are more
positive about the future.  The percentage of manufacturers
stating that their sector will improve faster than others is now
15 compared to 9% reported in the previous Index.

    * The number of businesses in the transport and storage sector
anticipating a recovery in line with other sectors remains at
three quarters (77%) showing consensus in expected recovery for
this sector.

The Business Factors Index, compiled by specialist business
finance provider Bibby Financial Services, tracks movements in
small business turnover since July 2007.  The trends derived from
this data have been collated alongside the results of a series of
interviews conducted with more than 300 business owners from a
range of businesses across the UK.

Findings from the Index are supported by the CBIs New Year
forecast which highlights both opportunities and risks for UK
businesses over the coming months.  Indeed, bank lending figures
to small businesses are up 4% year on year, suggesting that
business owners now have more of a chance to start taking small
steps on the road to recovery.  The Index also highlights that the
businesses believe Government legislation may also hinder this
process causing more expense for business, and limiting access to
cash an opinion expressed by the CBI in their New Year forecast
and indeed shared by Bibby Financial Services.

Edward Rimmer, UK and Ireland chief executive at Bibby Financial
Services commented: "Following the economic turmoil of the last
two years, it is no surprise that UK businesses remain cautious
about recovery and it is encouraging to hear that despite this,
firms from different sectors and regions are trying to remain
upbeat.  It is important in the current climate to ensure they are
prepared for growth and can make investments in their business
where needed.

"While the latest Business Factors Index highlights signs of
positivity and pro-activity among UK businesses in the face of
recession, it is this further access to finance which is so
desperately needed in order for businesses to move forward.
However, despite this it is unlikely increased access to finance
can be achieved in the current climate of red tape and legislative
change.

"Particularly in the lead up to the Budget and impending general
election, it is important to note that the Index shows 30 per cent
of businesses believe a change in Government would aid economic
recovery.  The current economic climate is clearly still having an
impact on business confidence and as such, we don't see an
improvement in mood until after the general election."

The Bibby Business Factors Index also showed:

The Index also looked at confidence across the UK's different
business sectors and showed:

    * The construction sector remains one of the worst hit by the
current recession with a third of construction managers stating
that conditions are tough and they are only just surviving.

    * The wholesale sector has been boosted by the Christmas
period but the mood of the industry is worse than ever nearly half
the industry believes that conditions are worse than six months
ago.

    * A cautious attitude underpins an upturn in the manufacturing
sector.  While 65% have experienced an increase in new customers
in recent months, a third (31%) believes the industry will lag
behind others.

    * Apprehension about the rise in VAT and increasing fuel
prices has dampened conditions for the transport and storage
sector almost a third (32%) are finding conditions tough, despite
43% feeling that their business is performing better than the
previous six months.

    * Recovery of the business services sector remains the slowest
behind other industries, but the sector is positive about the
future with one in five anticipating a recovery by this spring,
even after an unexpected fall in sales in 2009.

Mr. Rimmer concluded: "While there is much talk about the end of
the downturn, it is evident that worse hit sectors, such as
construction and business services, remain stuck in recession and
will struggle to see a positive upturn in trading conditions in Q1
or indeed Q2 of 2010.  However, the Index does highlight a general
feeling towards a tentative recovery, irrespective of whether or
not trading conditions have improved.  Even more revealing is the
change of attitudes in relation to a recovery more businesses
believe that a change in Government will aid recovery more than
support from the banks this indicates the alternative finance
sector will continue to grow in 2010 as less reliance is placed by
UK businesses on the banks.

The finance industry is seeing a shift towards alternative finance
providers with latest figures from the Asset Based Finance
Association (ABFA) showing that the amount of funding advanced to
businesses in the UK in Q3 of 2009 has risen to 48,667 million, an
increase of 4% cent on Q2 figures this is supported by Bibby
Financial's own figures.

Bibby Financial Services will ensure its insights into recovery
are utilized in supporting business recovery in 2010.

Kate Sharp, CEO Asset Based Finance Association said of the
report: "The latest Business Factors Index shows that UK
businesses are still working through the tough economic conditions
suggesting that 2010 will be a key year in terms of access to
finance.  Securing funding both to invest and grow could go some
way to restoring confidence within industry sectors and in the
economy as whole.  As banks continue to keep their lending
criteria as narrow as possible, businesses must prepare to ride
out the final difficult months of the recession by making sure
they seek the best financial advice, prepare as best they can to
allow cash to flow throughout the business, and explore all
finance options available to them.  This is a pioneering review of
our industry and provides an insightful overview of the current
climate."


                            *********

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

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

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

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

                            *********


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

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

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

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

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

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


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