TCREUR_Public/100217.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, February 17, 2010, Vol. 11, No. 033

                            Headlines



E S T O N I A

BALTIC PANEL: Owner Sues Two SEB Estonian Units Over Bankruptcy


F I N L A N D

COPTERLINE OY: Unprofitable Operations Prompt Insolvency Filing


G E R M A N Y

ALERIS INTERNATIONAL: German Unit Files to Restructure Debt
MAX TWO: S&P Puts 'BB-'Rated EUR100MM Senior Notes on Watch Neg.
TUI AG: Net Loss Narrows to EUR103MM on Lower Admin. Expenses


I R E L A N D

BLACK SHORE: Owner Consents to EUR2.7MM Summary Judgment Order
COCO FINANCE: S&P Downgrades Rating on Class E Notes to 'B+'
COGNOTEC HOLDINGS: Bought by First Derivatives in US$4.7MM Deal
EUROCONNECT ISSUER: S&P Junks Rating on Class D Notes From 'BB'
SEA FORT: Fitch Affirms Rating on EUR15MM Class E Notes at 'BB'


I T A L Y

IT HOLDING: Industrial Creditors Mull Debt-For-Equity Swap
MARIELLA BURANI: Receives "Concrete" Interest From New Investors


N E T H E R L A N D S

HARBOURMASTER CAPITAL: Fitch Downgrades Ratings on 27 Tranches


N O R W A Y

INTEROIL EXPLORATION: Bankruptcy Sought; In Talks for Funding
TERRA INDUSTRIES: Yara May Benefit From Planned Buy, S&P Says


S L O V A K   R E P U B L I C

* SLOVAK REPUBLIC: Bankruptcy Proceedings Up 40% in 2009


S P A I N

AYT COLATERALES: Fitch Downgrades Rating on Class D Notes to 'B'
BBVA CONSUMO: Fitch Downgrades Ratings on Three Transactions


U K R A I N E

RODOVID BANK: Moody's Confirms Deposit Ratings at 'Caa2'


U N I T E D   K I N G D O M

ETIQUETTE FORMAL: Bought Out of Administration in Pre-Pack Deal
HSH DELAWARE: Wants Barlow Lyde as United Kingdom Counsel
PROVIDENT INSURANCE: S&P Gives Positive Outlook; Keeps BB+ Rating
SHIMLA PINKS: Parent Company Placed Into Administration
VIRGIN MEDIA: Has Strong Broadband Offering, Fitch Says


X X X X X X X X

* Fitch Says European LBOs Still Face Medium-term Default Risk




                         *********



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


BALTIC PANEL: Owner Sues Two SEB Estonian Units Over Bankruptcy
---------------------------------------------------------------
Ott Ummelas at Bloomberg News reports that OU Grove Invest, an
Estonian property developer, has sued two Estonian units of
Stockholm-based lender SEB AB over the handling of production
problems at bankrupt OU Baltic Panel Group.

Bloomberg relates said in an e-mailed statement Monday the
Estonian property developer now claims EEK1.49 billion (US$130
million) from AS SEB Pank and AS SEB Liising, saying the two
companies caused the financial difficulties that led to
bankruptcy.

"Baltic Panel Group, established by OU Grove Invest in 2005 for
plywood production, lost both its investments and the company as a
result of the forcible intervention of SEB Pank and SEB Liising in
the management of the company," Bloomberg quoted Erki Kergandberg,
attorney at law, representing OU Grove Invest, as saying.

Bloomberg recalls an Estonian court in May 2008 declared the
bankruptcy of Baltic Panel Group, a plywood maker in Kohila,
northern Estonia, owned by Grove, citing liquidity issues at the
plant.


=============
F I N L A N D
=============


COPTERLINE OY: Unprofitable Operations Prompt Insolvency Filing
---------------------------------------------------------------
Toomas Hobemagi at Baltic Business News reports that Copterline Oy
said it had filed for insolvency.

According to the report, Pekka Jaatinen, Copterline's managing
director, said its flight operations were no longer profitable.

The report recalls Copterline had been struggling since one of its
aircraft crashed in the Gulf of Finland in 2005, killing all 12
passengers and two crew.  On August 10, 2005 a Sikorsky S-76
crashed into the sea near Tallinn three to four minutes after
taking off, killing 14 people, the report recounts.

Copterline re-opened Tallinn-Helsinki route in April 2008, but
stopped regular helicopter services between Helsinki and Tallinn
in December 2008, laying off personnel working with scheduled
Helsinki-Tallinn services, the report relates.

The demand for the route that was re-opened in April was about 50%
lower than what was necessary to make it profitable, the report
says citing CEO Kaj Takolander.

Headquartered in Helsinki, Finland, Copterline Oy --
http://www.copterline.com/en-- operates emergency and medical
service helicopters in three bases, in Varkaus, Vaasa and Oulu.
The company uses four Eurocopter 135 helicopters for the
operation.


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


ALERIS INTERNATIONAL: German Unit Files to Restructure Debt
-----------------------------------------------------------
Aleris Deutschland Holding GmbH filed with the U.S. Bankruptcy
Court for the District of Delaware a petition under Chapter 11 of
the Bankruptcy Code on February 5, 2010.

ADH was organized under the laws of Germany on March 22, 2006, as
a limited liability company and is a non-operating holding
company.  ADH is a direct wholly owned subsidiary of Aleris
Recycling Holding B.V., a Netherlands limited liability company,
and an indirect wholly owned subsidiary of Aleris International,
Inc.  ADH directly and indirectly owns stock of certain German
and Belgium subsidiaries that produce rolled and extruded
aluminum products.  ADH has no employees, and its primary assets
are its interests in its subsidiaries.  ADH maintains a balance
bank account at Key Bank, N.A., in Cleveland, Ohio.

ADH is obligated as a borrower under that certain Term Loan
Agreement, dated as of August 1, 2006, as amended, with various
financial institutions and other persons from time to time as
lenders, and Deutsche Bank, as administrative agent.
Specifically, the Prepetition Term Loan Agreements provided ADH
with a credit facility of EUR297 million, which is guaranteed by
the U.S.-based Debtors and certain non-debtor international
affiliates.  As of February 12 2009, the Europeran Term Loan
Facility was fully drawn.  On the U.S. Petition Date, a
"Conversion Event" under the Prepetition Term Loan Agreements was
triggered, resulting in the outstanding loans under the European
Term Loan Facility becoming approximately EUR56 million and
$311 million based on the EUR297 million drawn.

The U.S. Debtors have been engaged in negotiations with the
holders of the European Term Loan Facility to restructure the
European Term Loan Facility as part of their emergence from
Chapter 11.  In connection with that restructuring, ADH commenced
its Chapter 11 case.

                  About Aleris International

Aleris International, Inc., produces and sells aluminum rolled and
extruded products.  Aleris operates primarily through two
reportable business segments: (i) global rolled and extruded
products and (ii) global recycling.  Headquartered in Beachwood,
Ohio, a suburb of Cleveland, the Company operates over 40
production facilities in North America, Europe, South America and
Asia, and employs approximately 8,400 employees.  Aleris operates
27 production facilities in the United States with eight
production facilities that provided rolled and extruded aluminum
products and 19 recycling production plants.

Aleris International, Inc., aka IMCO Recycling Inc., and various
affiliates filed for bankruptcy on February 12, 2009 (Bankr. D.
Del. Case No. 09-10478).  The Hon. Brendan Linehan Shannon
presides over the cases.  Stephen Karotkin, Esq., and Debra A.
Dandeneau, Esq., at Weil, Gotshal & Manges LLP in New York, serve
as lead counsel for the Debtors.  L. Katherine Good, Esq., and
Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A.  In
Wilmington, Delaware, serves as local counsel.  Moelis & Company
LLC, acts as financial advisors; Alvarez & Marsal LLC as
restructuring advisors, and Kurtzman Carson Consultants LLC as
claims and noticing agent for the Debtors.  As of December 31,
2008, the Debtors had total assets of US$4,168,700,000; and total
debts of US$3,978,699,000.

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


MAX TWO: S&P Puts 'BB-'Rated EUR100MM Senior Notes on Watch Neg.
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it placed its 'BB-'
long-term debt rating on the EUR100 million senior secured notes
due 2024 issued by German wind power project Max Two Ltd. on
CreditWatch with negative implications.  The rating was
subsequently suspended.  The rating suspension reflects S&P's
belief that there is insufficient information available to
maintain surveillance of its rating opinion at this time.

"The CreditWatch placement reflects S&P's view that the wind
park's financial performance remains subpar because of lower-than-
expected revenues," said Standard & Poor's credit analyst Timon
Binder.  "S&P believes that poor wind conditions in 2009,
particularly in December, could have caused MTL's cash flows to be
materially lower than expected.  In S&P's view, the cash flows of
one or more wind farms within MTL's portfolio may have fallen to a
level that would trigger a dividend lock-up, indicating that the
original assumptions for the project have not been achieved.  S&P
understand from management that the average performance of MTL's
wind farms in 2009 was about 10% below projections.

"S&P is suspending the rating on MTL because of the delay, and
what S&P consider to be insufficiency and uncertainty of financial
information provided by EnergieKontor, the operator of all the
wind farms.  S&P believes the delay creates uncertainty regarding
the company's actual financial situation, with an unknown effect
on credit quality."

Standard & Poor's may suspend a rating, in certain circumstances,
if it expects to reinstate the rating in the future.  The rating
suspension does not imply that MTL is not servicing its
obligations or that company's operations have deteriorated, but
rather that the company has failed to provide what S&P consider
important information.

S&P would reinstate the rating if S&P see that S&P has received
comprehensive, reliable and transparent information by mid-March
2010, and evidence of an improved response time.  S&P believes S&P
could receive more complete information over the next few weeks,
which S&P expects would enable us to reinstate the rating and
resolve the CreditWatch within the first quarter of 2010.
Conversely, if S&P continue to lack sufficient information, S&P
would consider withdrawing the rating.


TUI AG: Net Loss Narrows to EUR103MM on Lower Admin. Expenses
-------------------------------------------------------------
Holger Elfes at Bloomberg News reports that TUI AG said in an
e-mailed statement Monday its net loss narrowed to EUR103 million
(US$134 million) in the three months through December 2009
compared with EUR155 million a year earlier, citing lower
administration costs following the partial disposal of the Hapag-
Lloyd container line.

According to Bloomberg, TUI's administration expenses were reduced
to EUR313 million from EUR362 million a year earlier after the
sale of its majority in Hapag.  TUI also paid less for debt
because it had receipts from the sale of 57% of the container
line, Bloomberg notes.

The loss before interest, taxes and amortization at Hapag widened
to EUR21 million from EUR8 million, Bloomberg says.

The company holds its annual general meeting on Feb. 17 and will
ask shareholders for support against Norwegian shipping
billionaire John Fredriksen, who is calling for a special audit
regarding the partial disposal of Hapag, Bloomberg discloses.

TUI AG -- http://www.tui-group.com/en/-- is a Germany-based
company mainly engaged in the tourism sector, focusing on the
markets of Central, Northern and Western Europe.  TUI owns a
network of travel agencies and tour operators, including air
tours, Thomson, First Choice and TUI Deutschland.  It also
operates several airlines, including Corsairfly, Thomsonfly and
First Choice Airways, among others.  The Company is structured
into three segments: TUI Travel, TUI Hotels and Resorts, and
Cruises.  TUI Travel comprises the Company's distribution, tour
operating, airline and incoming activities and services over 30
million customers in 180 countries.  The TUI Hotels and Resorts
division offers a portfolio of 238 hotels, located in Spain,
Greece, Egypt, France, Turkey, Tunisia, the Balearics and the
Caribbean, among others.  The Cruises sector comprises Hapag-Lloyd
Kreuzfahrten GmbH and TUI Cruises which provide luxury cruises,
and cruises within the German-speaking countries, respectively.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on Sept. 21,
2009, Moody's Investors Service lowered the Corporate Family
Rating and Probability of Default Rating of TUI AG to Caa1 from
B3.  At the same time, the unsecured rating and the subordinated
rating were lowered from Caa1 to Caa2 and from Caa2 to Caa3,
respectively.  Moody's said the outlook is negative.


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


BLACK SHORE: Owner Consents to EUR2.7MM Summary Judgment Order
--------------------------------------------------------------
Mary Carolan at The Irish Times reports that John Sweeney, whose
Black Shore Holdings company was wound up last week, has consented
to a EUR2.7 million summary judgment order in the Commercial Court
over unpaid loans.

The report recalls HSBC Private Bank Ireland sought the order
arising from a EUR2.7 million loan extended to Mr. Sweeney under a
facility letter of December 2007 providing a line of credit to
enable him to undertake various investments, subject to approval
by the bank.

The report relates when the proceedings came before Mr Justice
Peter Kelly at the Commercial Court Monday, he was told Mr.
Sweeney was consenting to judgment in the sum sought.  According
to the report, judgment was entered in the amount of EUR2,762,868.

Blackshore Holdings comprises Mr. Sweeney's oil, property and
hotel interests.


COCO FINANCE: S&P Downgrades Rating on Class E Notes to 'B+'
------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on six classes of CoCo
Finance 2006-1 PLC's EUR282.2 million floating-rate credit-linked
notes.

S&P lowered its ratings on these tranches following its analysis
of the effect that its updated corporate collateralized debt
obligation criteria have on these ratings.

On Sept. 17, 2009, S&P placed its ratings on 1,626 European cash
flow, hybrid, and synthetic CDO transactions on CreditWatch
negative, in tandem with the publication of its updated criteria.

The rating actions reflect S&P's recalibration of the parameters
within its CDO Evaluator model in connection with its criteria
update.

In its review, S&P considered both the updated criteria and the
current credit quality of the portfolio.  S&P will include these
tranches in its January global synthetic rated
overcollateralization report, which will include the SROC ratios
for synthetic corporate CDO transactions under its updated
criteria.

                           Ratings List

                     CoCo Finance 2006-1 PLC
        EUR282.2 Million Floating-Rate Credit-Linked Notes

      Ratings Lowered and Removed From Creditwatch Negative

                                 Rating
                                 ------
         Class          To                  From
         -----          --                  ----
         A+             AA+                 AAA/Watch Neg
         A              A+                  AAA/Watch Neg
         B              A                   AA/Watch Neg
         C              BBB+                A/Watch Neg
         D              BB+                 BBB/Watch Neg
         E              B+                  BB/Watch Neg


COGNOTEC HOLDINGS: Bought by First Derivatives in US$4.7MM Deal
---------------------------------------------------------------
The Irish Times reports that Irish software firm First Derivatives
has bought Cognotec Holdings Ltd. in a deal worth up to US$4.7
million (EUR3.5 million).

According to the report, the terms of the purchase comprise a cash
payment of US$4.7 million, US$500,000 of which will be held in
escrow pending delivery of certain agreements by the receiver
following completion.

The purchase will be paid for in cash from the company's existing
banking facilities, the report says.

Dublin-based Cognotec -- http://www.cognotec.com/-- provides
e-commerce solutions to automated foreign exchange and money
market dealing systems.  It was placed into receivership on
January 22, 2010.  Cognotec was founded 20 years ago and now has
operations in Dublin, London, New York, Singapore and Tokyo.  In
the year to November 30, 2008 Cognotec generated revenues of
US$18.5 million and reported a loss before tax of US$1.8 million.


EUROCONNECT ISSUER: S&P Junks Rating on Class D Notes From 'BB'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on the class A to D notes
in EuroConnect Issuer LC 2007-1 Ltd.'s EUR682.75 million credit-
linked floating-rate notes.

S&P lowered its ratings on these tranches following its analysis
of the effect that its updated corporate collateralized debt
obligation criteria have on these ratings.

On Sept. 17, 2009, S&P placed its ratings on 1,626 European cash
flow, hybrid, and synthetic CDO transactions on CreditWatch
negative, in tandem with the publication of its updated criteria.

The rating actions reflect S&P's recalibration of the parameters
within its CDO Evaluator model in connection with its criteria
update.

In its review, S&P considered both the updated criteria and the
current credit quality of the portfolio.  S&P will include these
tranches in its January global synthetic rated
overcollateralization report, which will include the
SROC ratios for synthetic corporate CDO transactions under the
updated criteria.

                           Ratings List

      Ratings Lowered and Removed From Creditwatch Negative

                 EuroConnect Issuer LC 2007-1 Ltd.
       EUR682.75 Million Credit-Linked Floating-Rate Notes

                                 Rating
                                 ------
         Class          To                  From
         -----          --                  ----
         A              BBB+                AAA/Watch Neg
         B              BB-                 A+/Watch Neg
         C              B-                  BBB/Watch Neg
         D              CCC-                BB/Watch Neg


SEA FORT: Fitch Affirms Rating on EUR15MM Class E Notes at 'BB'
---------------------------------------------------------------
Fitch Ratings has affirmed Sea Fort Securities Plc's notes and
removed the class A-to-E notes from Rating Watch Negative.  Fitch
has assigned Stable Outlooks to most classes, except class B which
has been assigned a Positive Outlook.  The RWN was assigned in
August 2009 pending full analysis after the implementation of
Fitch revised SME CDO rating criteria for European granular
corporate balance-sheet securitizations.  The rating actions are:

  -- EUR35,000,000 MCDS: affirmed at 'AAA'; Outlook Stable;
     assigned a Loss Severity rating of 'LS-3'

  -- EUR41,500,000 class A notes (ISIN XS0259821006): affirmed at
     'AAA'; removed from RWN; assigned Outlook Stable and 'LS-3'

  -- EUR22,000,000 class B notes (ISIN XS0259821345): affirmed at
     'AA'; removed from RWN; assigned Outlook Positive and 'LS-4'

  -- EUR14,500,000 class C notes (ISIN XS0259821428): affirmed at
     'A'; removed from RWN; assigned Outlook Stable and 'LS-5'

  -- EUR14,500,000 class D notes (ISIN XS0259821691): affirmed at
     'BBB'; removed from RWN; assigned Outlook Stable and 'LS-5'

  -- EUR15,000,000 class E notes (ISIN XS0259821774): affirmed at
     'BB'; removed from RWN; assigned Outlook Stable and 'LS-4'

The affirmations reflect the robustness of the transaction and its
ability to withstand Fitch's revised view on default probability,
recovery and correlation assumptions as detailed in the updated
SME CDO rating criteria.  The strength of the transaction stems
from increased credit enhancement, due to structural de-
leveraging, and the strong performance of the portfolio.

The Stable Outlook for the MCDS, and class A, C and D notes
reflects the high level of headroom within their respective rating
categories.  The Stable Outlook for the class E notes indicates
the strong historic portfolio performance and the prospect of
continued portfolio amortization and deleveraging in the
structure.  The Positive Outlook for the class B notes reflects
the agency's expectation that the structure will continue to
deleverage quickly over the next 12-18 months, and that the class
B notes are likely to be either upgraded or paid-in-full over this
period.

The portfolio has amortized to 27.3% of the initial portfolio
size, or to EUR273 million, from an initial pool of EUR1 billion,
which has resulted in the relative CE of all the rated notes
increasing significantly since closing.  In addition to the
deleveraging effect, the portfolio has to-date experienced limited
defaults and delinquencies.  Since closing there has been just one
credit event which occurred in July 2009 on a EUR5 million asset,
which equates to 0.5% of the initial portfolio.  Current
delinquencies are also small, with no asset greater than 90 days
delinquent and only 0.6% of the current portfolio 31-to-90 days
delinquent.

In the analysis undertaken, the originator's internal credit
scores and associated probability of default were used to
determine the portfolio's loss severity, although where assets
were in arrears, adjustments were made to their PD in line with
Fitch's new SME criteria to reflect the relative increase in risk.
Sensitivity analysis was also conducted around the originator
internal scores, where the PD was increased by up to 150%.  From a
recovery perspective, 19% of the current portfolio is secured by
first lien mortgages over real estate with a weighted average LTV
of 154%.  These assets were treated as secured assets in the
analysis with the recovery linked to each loan's current LTV.  Of
the remaining portfolio, assets were either unsecured or
collateralized by a range of security, including life assurance
policies, guarantees, floating charges, second lien mortgages or
shares in housing companies.  All these security types were
treated as unsecured assets in the analysis.

Looking forward, Fitch expects the notes to rapidly amortize and
that ultimately all notes will be paid off in full.  However,
through the deleveraging process the portfolio will become
increasingly concentrated both in terms of obligor and industry
exposure.  Within a year to 18 months, Fitch expects some of the
senior notes to be fully repaid, leaving the mezzanine and junior
notes increasingly exposed to, amongst others, the real estate
sector and the top five obligors, whose exposures are likely to
more than double from their current levels.  Fitch expects the
excess spread mechanism to only provide marginal benefit.  Over
this period, moderate increases in arrears are considered likely,
however, even the junior notes are expected to remain in a solid
position due to deleveraging.

Sea Fort Securities Plc is a synthetic securitization of an
initial EUR1 billion revolving reference pool of loans and credit
facilities granted by Sampo Bank Plc to small- and medium-sized
entities, large corporate entities and financial institutions in
Finland.  Sea Fort Securities Plc is a limited liability special
purpose vehicle incorporated under the laws of Ireland.  The
proceeds from initial issuance remain invested in a 'AAA' Dexia
Municipal Agency covered bond.  Fitch expects no change in the
risk profile related to the Dexia charged asset.


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


IT HOLDING: Industrial Creditors Mull Debt-For-Equity Swap
-------------------------------------------=--------------
Armorel Kenna at Bloomberg News reports that IT Holding SpA may
receive an offer by the end of the month from suppliers owed as
much as EUR200 million (US$270 million) in unpaid bills.

Bloomberg relates a spokeswoman for Milan-based Athena Consorzio
said in an e-mail Monday that the firm plans to set up a new
company, funded by a group of financial investors, to buy the
whole group, including IT Holding's Ferre and Malo brands and its
Ittierre SpA production unit.

According to Bloomberg, under the plan, IT Holding's industrial
creditors would swap their debt for equity in the company.  Not
all of the suppliers have joined the consortium, Bloomberg notes.

"The industrial creditors have an extra interest in resolving
their lost credit as their own survival depends on what happens to
IT Holding," Bloomberg quoted Athena as saying in the e-mail.

At least 10 financial partners are interested in the project,
Bloomberg says citing Athena.

As reported by the Troubled Company Reporter-Europe, Bloomberg
said IT Holding was granted bankruptcy protection in February 2009
along with all of its units after failing to make payments to
lenders and suppliers.

                       About IT Holding SpA

Based in Milan, Italy, IT Holding SpA (BIT:ITH) --
http://www.itholding.com/-- operates in the luxury goods market.
The company and its subsidiaries design, produce and distribute
apparel, accessories, eyewear and perfumes.  Its brand portfolio
embraces: owned brands, Gianfranco Ferre, Malo, Exte, as well as
licensed brands, Versace Jeans Couture, Versace Sport, Just
Cavalli, C'N'C Costume National and Galliano.  The company's
production facilities are located in Italy.  IT Holding SpA has a
worldwide distribution network, including 39 directly operated
stores, 274 monobrand stores and over 6,000 department and
specialty stores.  In order to be present in the most significant
markets, IT Holding SpA has dedicated market companies: ITTIERRE
SpA, ITTIERRE France SA, ITTIERRE Moden GmbH, IT USA HOLDING Inc
and IT Asia Pacific Limited, among others.


MARIELLA BURANI: Receives "Concrete" Interest From New Investors
----------------------------------------------------------------
Armorel Kenna at Bloomberg News reports that Mariella Burani
Fashion Group SpA Chief Executive Officer Gabriele Fontanesi told
Il Sole 24 Ore in an interview that the company has received
"concrete" interest from new investors.

According to Bloomberg, Mr. Fontanesi, as cited by the Italian
newspaper, said he preferred reaching an agreement with creditors
rather than going through bankruptcy protection because it would
keep the fashion company "intact".

The company may reach an accord this week with banks on
restructuring the debt of its Antichi Pellettieri unit, Bloomberg
says citing Il Sole.

As reported by the Troubled Company Reporter-Europe on Feb. 16,
2010, Bloomberg News said Mariella Burani has decided to seek for
bankruptcy after it didn't receive funds to cover EUR70 million
(US$95 million) in losses.  Bloomberg disclosed a court in the
northern city of Reggio Emilia notified the group on Feb. 12 that
it met requirements for bankruptcy protection and set a March 16
hearing with the Industry Ministry.  According to Bloomberg, labor
unions for the fashion group, which employs more than 2,000
workers, favor bankruptcy protection under the so-called Marzano
Law and are due to meet with Industry Minister Claudio Scajola on
Feb. 18.

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


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


HARBOURMASTER CAPITAL: Fitch Downgrades Ratings on 27 Tranches
--------------------------------------------------------------
Fitch Ratings has downgraded 27 tranches and affirmed 15 tranches
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 placed one tranche on Rating Watch Negative, maintained the
Rating Watch Negative status for 32 tranches, whilst nine of the
affirmed tranches have Stable Outlook.  Fitch has also assigned 32
Loss Severity Ratings.

The five affected CLOs are Harbourmaster CLO 7 B.V., Harbourmaster
CLO 8 B.V., Harbourmaster CLO 9 B.V., Harbourmaster CLO 10 B.V.
and Harbourmaster Pro-Rata CLO 3 B.V.

The rating actions address performance concerns, following a
clustering of defaults during the summer of 2009 which were
compounded by continued negative rating migration in the European
leveraged loan market.  Thirty three tranches are on RWN as these
five transactions are affected by uncertainty on the treatment of
defaulted assets for the purpose of the over-collateralization and
interest coverage tests.  If the clarification of the "Defaulted
Collateral Obligations" definition results in no haircut being
applied to the notional of defaulted obligations for the purpose
of calculating OC and IC ratios, the resolution of the RWN would
likely lead to a downgrade by a rating category or less.

In its analysis for the rating actions taken, Fitch assumed that
obligors that have defaulted on their obligations are marked at
their market values or recovery estimates for the purpose of
calculating the coverage tests.  In addition, cash that was
diverted into suspense accounts due to the uncertainty on the
treatment of defaulted assets was assumed to be used to cure the
coverage tests in the agency's analysis.

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,
they are highly dependent on portfolio recovery prospects.

Harbourmaster 7 has had eight defaults to date that represent 7.1%
of the target par amount of the transaction.  In addition, 13.8%
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 affirmation of the class A1 notes
reflects the robust CE driven by OC and excess spread.  If assets
that have defaulted on their obligations are treated as "defaulted
collateral obligations" EUR1.8 million of interest proceeds
currently held in a suspense account would be used to partially
redeem B2 and a further EUR1.8 million of interest proceeds would
be reserved for the acquisition of additional assets due to the
breach of the additional coverage test.  In addition, in June
2009, EUR2.1 million of interest proceeds were used to partially
redeem class B2 and EUR2.1 million of interest proceeds were
reserved for the acquisition of additional assets.  The downgrades
of the class A2, class A3, class A4, and class B1 notes reflect
their reduced protection following the portfolio defaults as well
as the increased loss expectations resulting from negative
portfolio migration.  Class B2 was downgraded in February 2009 and
has been affirmed.

Harbourmaster 8 has had seven defaults to date that represent 9.2%
of the target par amount of the transaction.  In addition, 15.1%
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 affirmation of the class A1 notes
reflects the robust CE driven by OC and excess spread.  If assets
that have defaulted on their obligations are treated as "defaulted
collateral obligations" a total of EUR3.2 million of interest
proceeds currently held in a suspense account would be used to
partially redeem class A1.  The downgrades of the class A2, class
B, class C and class D notes reflect their reduced protection
following the portfolio defaults as well as the increased loss
expectations resulting from negative portfolio migration.  Class E
was downgraded in March 2009 and has been affirmed.

Harbourmaster 9 has had six defaults to date that represent 7.5%
of the target par amount of the transaction.  In addition, 9.2% 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-T and A1-VF notes reflects the robust
CE driven by OC and excess spread.  In July 2009, EUR1 million of
interest proceeds were used to partially redeem class E and
EUR1 million of interest proceeds were reserved for the
acquisition of additional assets due to the breach of the
additional coverage test.  The downgrades of the class A2, class
B, class C, class D and class E notes reflect their reduced
protection following the portfolio defaults as well as the
increased loss expectations resulting from negative portfolio
migration.

Harbourmaster 10 has had five defaults to date that represent 5.6%
of the target par amount of the transaction.  In addition, 5.6% 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 X, class A1, class A2 and class A3 notes
reflects the robust CE driven by OC and excess spread.  If assets
that have defaulted on their obligations are treated as "defaulted
collateral obligations", a total of 2.1m of interest proceeds
collected in a suspense account over the last three payment dates
would be used to partially redeem class A1.  The downgrades of the
class A4, class B1 and class B2 notes reflect their reduced
protection following the portfolio defaults as well as the
increased loss expectations resulting from negative portfolio
migration.

In Fitch's view, Harbourmaster Pro-Rata 3 has had six defaults to
date that represent 9.9% of the target par amount of the
transaction.  This includes one obligor that is classified as a
current pay obligation as per the transaction documents.  In
addition, 12.1% 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-T, class A1-VF and
class A2 notes reflects the robust CE driven by OC and excess
spread.  The downgrades of the class A3, class A4, class B1 and
class B2 notes reflect their reduced protection following the
portfolio defaults as well as the increased loss expectations
resulting from negative portfolio migration.

Harbourmaster 7, Harbourmaster 9 and Harbourmaster Pro-Rata 3 have
in total nine combination notes rated by Fitch.  The rating
actions on these combination notes are driven by the rating
actions on the underlying rated components of the combination
notes, except for class S1 of Harbourmaster Pro-Rata 3 which is
credit-linked to the rating assigned to the sovereign debt of the
French Republic.


===========
N O R W A Y
===========


INTEROIL EXPLORATION: Bankruptcy Sought; In Talks for Funding
-------------------------------------------------------------
Marianne Stigset at Bloomberg News reports that Interoil
Exploration and Production ASA said the proposal from Norsk
Tillitsmann ASA to authorize the reimbursement of bondholder
funding and the filing of a petition for bankruptcy, if so
instructed by the Instructing Bondholders, was adopted according
to the voting requirements of the bond agreement.

According to Bloomberg, Interoil will dispute any future filing
for bankruptcy and is working with several local and international
banks to secure refinancing and repayment of all outstanding debt.

Interoil Exploration & Production ASA -- http://www.interoil.no/
-- is an international independent petroleum company with
headquarters in Oslo.  The company is engaged in the acquisition,
exploration, development and operation of oil and natural gas
properties.  Interoil E&P serves as operator or active license
partner in several production and exploration assets in Peru,
Colombia, Ghana and Angola.


TERRA INDUSTRIES: Yara May Benefit From Planned Buy, S&P Says
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it placed the 'BBB'
long-term and 'A-2' short-term corporate credit ratings on Norway-
based fertilizer distributor and producer Yara International ASA
on CreditWatch with negative implications.

Yara announced that it plans to acquire U.S.-based nitrogen
producer Terra Industries Inc. (BB/Stable/--) for an estimated
total consideration of US$4.7 billion.

"The additional debt burden of the transaction will, in S&P's
view, strain Yara's already weakened financial risk profile, even
though S&P anticipate that the transaction will be over 50% equity
financed," said Standard & Poor's credit analyst Sophia Dedemadis.

Yara's reported interest bearing debt at year-end 2009 was
Norwegian krone (NOK) 17 billion.  The total consideration for the
acquisition is US$4.7 billion, including Terra's existing debt of
bonds totaling US$600 million due 2019.  This figure does not
include cash on Terra's balance sheet at the time of close.

If completed, the acquisition should diversify Yara's global
production assets.  However the company's exposure to the volatile
nitrogen segment will also increase.  In 2010 S&P anticipate a
significant improvement in nitrogen fertilizer pricing and volumes
from 2009 levels.  However, the consequent improvement in Yara's
operating performance may not be sufficient to support the current
rating.  For fiscal year-end 2009, Yara reported revenues of
NOK61.4 billion and operating cash flows of NOK11.9 billion,
supported by large working capital inflows of NOK14.8 billion,
mostly from inventory.  The company's unadjusted funds from
operations was negative, although it generated reported free
operating cash flow of approximately NOK5.8 billion.

More positively, Yara should benefit from Terra's position as a
leading player in the U.S. nitrogen market, with a large portion
of domestic nitrogen capacity and well-located nitrogen
facilities.  The acquisition would expand Yara's access to the
central U.S.  and provide good logistics in the area.
Furthermore, Terra has historically generated good operating
margins, which are currently in the high 20% range.

Standard & Poor's aims to resolve the CreditWatch placement on
completion of the Terra acquisition which Yara expects to occur
within the next four months.

"As part of the CreditWatch resolution, S&P will be meeting with
management and discussing, in detail, the group's financial
policy, business strategy and capital structure specifically in
the context of the Terra acquisition and Yara's strategy for
reaching its growth target of 10% of the global market," said
Ms.  Dedemadis.  "S&P will also review the operating performance,
synergies, and organic growth prospects of the proposed combined
entity."

S&P could affirm the ratings if Yara were able to demonstrate a
satisfactory plan to achieve and sustain credit metrics
commensurate with an "Intermediate" financial risk profile by
early to mid 2011 -- taking into account any potential further
acquisitions.  Such an affirmation could, however, be accompanied
by a negative outlook considering the low financial headroom at
the rating.

In contrast, S&P could lower the rating by one notch if Yara were
unable to demonstrate a clear path toward restoring its credit
metrics and achieving its growth targets in a measured fashion.


=============================
S L O V A K   R E P U B L I C
=============================


* SLOVAK REPUBLIC: Bankruptcy Proceedings Up 40% in 2009
--------------------------------------------------------
The Slovak Spectator reports that the bankruptcy proceedings in
Slovakia increased by 40% in 2009.

Citing the SITA newswire, the report says district courts in
Slovakia opened 600 bankruptcy proceedings last year, up 39.9%
from the previous year.

Robert Kicina, the executive director of the Business Alliance of
Slovakia, Robert Kicina, attributed the increase of initiated and
declared bankruptcy proceedings to the economic crisis, which has
adversely affected the economic situation of most businesses in
Slovakia, the report notes.

According to the report, Justice Ministry data show that the
number of declared receivership proceedings rose as well, by 10%
to 276 last year.

The report, citing SITA, discloses the courts register an increase
in the number of completed bankruptcy proceedings as well which
rose 44% to 288.

Last year, the courts received a total of 1,060 proposals to
declare a company bankrupt, the report relates.  Compared with
2008, their number rose by 26%, the report notes.

The report recalls in 2009, firms showed more interest in having
their economic problems resolved via restructuring.  In 2008 the
courts registered 15 requests for restructuring and in 2009 the
number grew to 78, the report states.  Courts allowed 58
restructuring processes, the report says.


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


AYT COLATERALES: Fitch Downgrades Rating on Class D Notes to 'B'
----------------------------------------------------------------
Fitch Ratings has downgraded AyT Colaterales Global Hipotecario,
FTA Serie AyT Colaterales Global Hipotecario CCM I's class B, C
and D notes.  Fitch has simultaneously revised the Outlook of the
class A notes to Negative from Stable, the remaining notes have
Negative Outlooks.  A full rating breakdown is provided at the end
of this comment.  (The Spanish RMBS transaction is comprised of
loans originated and serviced by Caja de Ahorros de Castilla la
Mancha.)

Fitch has downgraded the junior notes of the transaction due to a
deterioration in performance.

AyT Colaterales CCM I reports on a semi-annual basis and as of the
November 2009 interest payment date, the transaction showed a
significant deterioration in the performance of the pool.  Loans
that are three months or greater in arrears increased to 5.11% of
the current balance as of November 2009, compared with 1.20% in
November 2008.  Cumulative defaults are equal to 1.3% of the
initial pool balance.  No defaulted loans have been sold to date.

The excess spread was not sufficient to fully provision for the
defaulted loans and the reserve fund had to be drawn on the last
three IPDs.  The reserve fund currently stands at 72% of the
required amount.  Total defaults to date have been equal to
EUR10.4 million, of which only EUR2.5 million was absorbed by
excess spread.

The Negative Outlook reflects the possible further deterioration
of the pool and likely reserve fund draws which will reduce the
credit enhancement available for all notes.  The pool
deterioration to date suggests arrears will continue to grow and
further defaults are expected, in addition to uncertainty with
regard to the level of potential recoveries based on Fitch's
expectation that Spanish house prices will experience price
declines of 25%-30% on a peak-to-trough basis.

Fitch used its EMEA RMBS surveillance criteria, employing its
credit cover multiple methodologies, to assess the level of credit
support available to each class of notes with respect to the
transactions.

The rating actions are:

  -- Class A (ES 0312273248) affirmed at 'AAA'; Outlook revised to
     Negative from Stable; assigned Loss Severity rating of
     'LS-1'

  -- Class B (ES 0312273255) downgraded to 'A-' from 'A'; Outlook
     Negative; assigned 'LS-3'

  -- Class C (ES 0312273263) downgraded to 'BB' from 'BBB-';
     Outlook Negative; assigned 'LS-4'

  -- Class D (ES 0312273271) downgraded to 'B' from 'BB-'; Outlook
     Negative; assigned 'LS-5'


BBVA CONSUMO: Fitch Downgrades Ratings on Three Transactions
------------------------------------------------------------
Fitch Ratings has downgraded three BBVA transactions following
completion of the agency's recent performance review amid wider
concerns over a general deterioration in Spanish transactions.

The three transactions, BBVA Consumo 1, Fondo de Titulizacion de
Activos, BBVA Consumo 2, Fondo de Titulizacion de Activos's and
BBVA Autos 2, Fondo de Titulizacion de Activos's were originated
by BBVA ('AA-'/'F1+'/Outlook Positive) between late 2005 and 2006,
with collateral pools backed by consumer loans or auto loans, or a
mix of both assets.

The rating actions are:

BBVA Consumo 1

  -- EUR579.1m class A notes downgraded to 'AA+' from 'AAA';
     Outlook Negative; assigned Loss Severity rating 'LS-1'

  -- EUR28.5m class B notes downgraded to 'BBB' from 'AA'; Outlook
     Negative; assigned 'LS-3'

  -- EUR24m class C notes downgraded to 'B' from 'BBB'; Outlook
     Negative; assigned 'LS-3'

BBVA Consumo 2

  -- EUR819.4m class A notes downgraded to 'AA' from 'AAA';
     Outlook Negative; assigned 'LS-1'

  -- EUR16.5m class B notes downgraded to 'BBB' from 'AA'; Outlook
     Negative; assigned 'LS-4'

  -- EUR42.8m class C notes downgraded to 'B' from 'BBB'; Outlook
     Negative; assigned 'LS-3'

BBVA Autos 2

  -- EUR406.4m class A affirmed at 'AAA'; Outlook Stable; assigned
     'LS-1'

  -- EUR20.5m class B downgraded to 'AA-' from 'AA'; Outlook
     Negative; assigned 'LS-3'

  -- EUR30m class C downgraded to 'BB' from 'BBB+'; Outlook
     Negative; assigned 'LS-3'

Since Fitch's prior performance review in July 2009, all three
transactions have continued to have their reserve funds drawn to
provision for potential credit losses, resulting in a continued
weakening in the available cushion to the junior and mezzanine
tranche.  Fitch's cumulative gross default rate increased to 2.4%
(base case: 2.07%) for BBVA Consumo 1, 2.6% (1.67%) for BBVA
Consumo 2 and 2.6% (1.91%) for BBVA Autos 2 in December 2009.  All
three transactions have been performing worse than Fitch's initial
base case expectations with respect to gross defaults.  As
recoveries on defaulted receivables have in general fallen
significantly below the agency's original expectations, this has
lead to increased loss severity across all three BBVA
transactions.

As a result, Fitch has undertaken to revise its expectations for
the default and recovery rate in its forecast model based on the
current delinquency trend, particularly for delinquencies of 90+
days and the actual recovery performance to date.  Various
scenarios have been generated by applying different stress levels
for the next 18 months in accordance with the agency's 'EMEA
Consumer ABS Rating Criteria'.  The implied default rates that
have been derived from the delinquency buckets in each transaction
range from 3% to 5%, and in each case recoveries of 20% to 40%
have been assumed.  Although defaults and recoveries remained the
principal drivers for the downgrades, other considerations such as
pool de-leveraging and seasoning, collateral composition and
prepayment have also been incorporated into the analysis.

All three transactions benefit from a guaranteed excess spread of
between 300bps to 325bps via the swap and Fitch has given full
credit in its ratings analysis to this feature.

As of January 2010, BBVA Consumo 1 had amortized to 42% of its
original balance, BBVA Consumo 2 had amortized to 59% and BBVA
Autos 2 had amortized to 46%.


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


RODOVID BANK: Moody's Confirms Deposit Ratings at 'Caa2'
--------------------------------------------------------
Moody's Investors Service has confirmed the Caa2 deposit and B3.ua
National Scale Ratings of Rodovid Bank.  This confirmation
concludes the review of these ratings, which were under review
with direction uncertain.  Rodovid Bank's E bank financial
strength rating -- which was not under review -- remained
unchanged with a stable outlook.  At the same time, Moody's
assigned a developing outlook on the bank's deposit ratings.

Rodovid Bank has been under the temporary administration of the
Ukrainian central bank (National Bank of Ukraine or NBU) with
payments moratorium since Q1 2009 following Rodovid Bank's
substantial liquidity and asset quality problems.

The rating action takes into account the significant level of
uncertainty regarding Rodovid Bank's prospects in the medium term,
and the possible extended period that may therefore be required to
assess the bank's franchise perspective and its financial
position.

As previously announced by the Ukrainian government, about
UAH6 billion (US$750 million) of deposits have -- since December
2009 -- been transferred to Rodovid Bank from defaulted
Ukrprombank.  To help Rodovid Bank withstand substantial loan
write downs and repay obligations to depositors of Ukrprombank,
the government has injected nearly UAH8 billion (US$1 billion)
into the bank's capital in 2009.

Moody's notes that the already implemented -- and possible further
-- recapitalization of the bank by the government increases the
likelihood for Rodovid Bank to remain a going concern and return
to normal banking operations in the medium term.  However, the
rating agency believes that the ongoing temporary administration
regime coupled with uncertainty regarding the bank's current
financial position and operating environment, continue to
constrain Rodovid Bank's ratings.  Therefore a developing outlook
was assigned to the bank's deposit ratings.

The previous rating action on Rodovid Bank was implemented on 10
November 2009, when Moody's changed the status of the review of
Rodovid Bank's deposit ratings to review with direction uncertain
from review for possible downgrade.

Headquartered in Kiev, Ukraine, Rodovid Bank reported total assets
of UAH16.95 billion (US$2.12 billion) and total equity of
UAH4.34 billion (US$ 542 million) in accordance with Ukrainian
Accounting Standards at year-end 2009.


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


ETIQUETTE FORMAL: Bought Out of Administration in Pre-Pack Deal
---------------------------------------------------------------
James Chapelard at Crain's Manchester Business reports that
Etiquette Formal Hire Ltd. has been bought out of administration
in a pre-pack deal, saving up to 160 jobs.

According to the report, the business has been sold to a new
consortium, but previous owners the Novak family have retained a
small stake.

The report says the majority will be held by Philip Day, chief
executive of the Edinburgh Woollen Mill (Group) Ltd. and Peter
Lucas, chief executive of Speciality Retail Group, which owns
Youngs Hire.

The value of the deal was not disclosed, the report notes.

The report recalls administrators from Grant Thornton were
appointed on February 2 after a drop in sales caused financial
problems for the firm.  Etiquette has suffered because of the
decline in corporate hospitality during the recession, the report
relates.

Etiquette Formal Hire Ltd. supplies morning suits and evening wear
to retailers.


HSH DELAWARE: Wants Barlow Lyde as United Kingdom Counsel
---------------------------------------------------------
HSH Delaware GP LLC, et al., have asked for permission from the
U.S. Bankruptcy Court for the District of Delaware to employ
Barlow Lyde & Gilbert LLP as United Kingdom counsel, nunc pro tunc
to the commencement date.

BLG will advise the Debtors on any English law issues arising
following the Debtors' commencement of the Chapter 11 cases
including providing support in connection with ongoing
proceedings.

Timothy Simon Strong, a partner in BLG, says that the firm will be
paid based on the hourly rates of its personnel:

     Timothy Strong                     GBP500
     Dorothy Herman                     GBP375
     Trainee Solicitor                  GBP135
     Paralegal/Litigation Associate     GBP135

Mr. Strong assures the Court that BLG is "disinterested" as that
term is defined in Section 101(14) of the Bankruptcy Code.

By separate applications, the Debtors are seeking to employ and
retain Richards, Layton & Finger, P.A., as counsel to the Debtors;
Walkers Global as Cayman Islands counsel to the Debtors; and
McCarthy Tetrault as Canadian counsel to the Debtors.  Due to the
complexity and international nature of the Chapter 11 cases, the
Debtors submit that it is essential to employ United Kingdom,
Canadian and Cayman Islands counsel in order to fully protect the
rights of the Debtors.  The Chapter 11 cases follow disputes
between the Debtors and various lenders under October 19, 2006
Credit Facility Agreements.  The governing law of the Credit
Facility Agreements is English law.  The Debtors' rights and
obligations under the agreements may be relevant to the Chapter 11
cases.

HSH Delaware GP LLC is based in Wilmington, Delaware.

Nine HSH partnerships were created in 2006 to buy a 26% stake in
HSH Nordbank AG, the world's largest shipping financier, from
WestLB AG for about EUR1.25 billion (US$1.76 billion).  The
partnerships received unsecured term and revolving loans of
EUR375 million from ABN AMRO bank to fund the purchase of HSH
Nordbank shares.

As reported by the Troubled Company Reporter on September 9, 2009,
creditors with claims aggregating US$27.8 million filed a petition
to send affiliate HSH Delaware LP to Chapter 7 liquidation (Bankr.
D. Del. Case No. 09-13145).  Commerzbank AG, Lloyds TSB Bank Plc,
ABN Amro Bank NV, Calyon, Royal Bank of Scotland Plc and
Landsbanki Islands HF filed the involuntary Chapter 7 petition.

HSH Delaware filed for Chapter 11 bankruptcy protection on
January 21, 2010 (Bankr. D. Delaware Case No. 10-10187).  The
Company listed US$100,000,001 to US$500,000,000 in assets and
US$100,000,001 to US$500,000,000 in liabilities.

HSH Delaware's affiliates -- HSH Delaware L.P.; HSH Luxembourg
S.a.r.l.; HSH Luxembourg Coinvest S.a.r.l.; HSH Delaware GP LLC;
HSH Alberta I L.P.; HSH Alberta II L.P.; HSH Alberta V L.P.; HSH
Coinvest (Alberta) L.P.; JCF HSH (DE) GP LP; HSH Delaware L.P.;
HSH Luxembourg S.a.r.l.; and HSH Luxembourg Coinvest S.a.r.l. --
also filed separate Chapter 11 petitions.


PROVIDENT INSURANCE: S&P Gives Positive Outlook; Keeps BB+ Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised the
outlook on its long-term counterparty credit and insurer financial
strength ratings on U.K.-based non-life insurer Provident
Insurance PLC to positive from stable due to its intended sale by
GMAC Inc.  In addition, the 'BB+' ratings were affirmed.

The ratings on Provident Insurance reflect the impact of the weak
credit quality of Provident Insurance's parent, GMAC Inc., offset
by Provident Insurance's good stand-alone characteristics.  These
include its very conservative investments and strong
capitalization.  These positive factors are diminished, however,
by increased industry and underwriting performance pressure.

"The positive outlook reflects the possibility that there will no
longer be any parental constraint on the ratings on Provident
Insurance following its sale," said Standard & Poor's credit
analyst Nigel Bond.  "S&P could, therefore, raise the ratings on
the company by up to two notches to match its stand-alone credit
profile."

The outlook also continues to reflect S&P's understanding that the
company's financial strength will be protected to a significant
extent by its supervisor, the U.K. Financial Services Authority.
If the sale does not occur, or the financial strength is not
adequately protected, it could lead to a negative rating action.


SHIMLA PINKS: Parent Company Placed Into Administration
-------------------------------------------------------
James Chapelard at Crain's Manchester Business reports that the
parent company of Shimla Pinks in Manchester has been placed into
administration.

According to the report, the Indian restaurant on Dolefield, Crown
Square, adjacent to Spinningfields, remains open while Birmingham-
based administrators Irwin and Co "explore options" for the
business.

The insolvency is thought to relate to delays in moving into the
adjacent Spinningfields complex, the report says.

The report relates administrator Gerald Irwin said the cost of
moving had been higher than the directors first anticipated.

Shimla Pinks -- http://www.shimlapinks.com/-- is a Birmingham-
based Indian cuisine restaurant.


VIRGIN MEDIA: Has Strong Broadband Offering, Fitch Says
-------------------------------------------------------
Fitch Ratings has amended the version of a comment published
earlier to include British Telecommunications plc's ratings.  The
amended version has also removed reference to BT Group plc's
senior unsecured rating.

Fitch has affirmed BT Group plc's Long-term Issuer Default Rating
at 'BBB' with a Stable Outlook.  The agency has also affirmed BT
Group's Short-term Issuer Default Rating at 'F2'.  Fitch has
simultaneously affirmed British Telecommunications plc's Long-term
Issuer Default Rating at 'BBB' with a Stable Outlook, its Short-
term rating at 'F2' and its senior unsecured rating at 'BBB'.

The rating affirmation reflects some visibility and defensiveness
in BT's core cash flow stream due to its incumbent domestic fixed-
line operations.  Although underlying revenue declined by 5%
during the nine months ended December 2009 to GBP15.55 billion,
adjusted EBITDA has increased over the same period to
GBP4.25 billion, driven by the company's cost-cutting efforts.

"BT's successful cost saving efforts have given management some
time to turnaround the Global Services division and improve the
group's competitive position in the UK," says Damien Chew,
Director in Fitch's TMT team in London.  "However, BT's pension
deficit remains a concern and overall growth prospects are likely
to be reduced by the anaemic UK economic recovery."

Competition in the UK fixed-line telecoms market remains intense,
especially for triple-play services.  BT has seen an early
positive take-up of its internet protocol TV product, BT Vision
(9% of its broadband customers), but further attempts to gain
market share will likely face stiff competition.  Virgin Media Inc
('BB-'/'B' /Positive), whose cable network covers about half of UK
households, has a strong broadband offering, and has seen brisk
take-up of its high-speed (20Mbit/s and 50Mbit/s) broadband
packages and video-on-demand service.  British Sky Broadcasting
Group plc (rated 'BBB+'/Stable), the pay-TV satellite operator,
meanwhile is seeing a strong take-up in demand for its high
definition TV service (+482,000 net adds in Q409), and a firm
initial response to its fully-unbundled voice and broadband
telephony offering.

BT is the only European incumbent without a domestic mobile
network.  Fitch believes that the lack of an infrastructure-based
mobile arm may expose BT to competitive challengers who can bundle
fixed and mobile offerings more effectively.  UK spectrum
auctions, expected to take place in H111, may provide BT with the
option to purchase radio frequencies to deploy its own mobile
service.  While this would plug a gap in its product portfolio,
such a strategy would likely lead to increased investment and
would not be without execution risk.

BT's GBP9.0 billion pension deficit remains a source of concern as
the company will have to make significant deficit payments into
the scheme which is likely to limit deleveraging.  The company
plans to make pension deficit payments of GBP525 million per annum
until December 2011, with further payments in following years if
the pension fund's returns do not improve.  There is uncertainty
surrounding the regulatory scrutiny of the proposed plan, but
Fitch notes that these steps have been agreed between BT and the
pension trustees.

Given the lack of prospects for revenue growth, Fitch is concerned
that BT might struggle to deleverage in the medium-term.  More
challenging market conditions might result in lower profitability
and/or higher capital intensity.  Specifically, the turnaround of
Global Services and the performance of BT Retail in a highly
competitive market are critical to maintaining BT's credit
profile.  Signs of EBITDA, including leavers costs (GBP5.4 billion
in the 12 months to December 09), trending down towards
GBP5 billion could lead to negative rating action.

BT's next debt repayments are for sterling equivalents of
GBP2.5 billion in H2FY11, which were covered by cash and short-
term investments of GBP1.0 billion at end-December 2009 and
GBP2.4 billion of undrawn committed facilities (of which
GBP900 million expires in March 2010).


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


* Fitch Says European LBOs Still Face Medium-term Default Risk
--------------------------------------------------------------
Fitch Ratings says that default rates for European leveraged
buyouts are expected to show some stabilization in H2 2010.
However, many credits still have unsustainable capital structures
and, given the high level of low rated transactions, a second
medium- to longer-term wave of defaults in the sector by 2013,
when widespread maturities come due, cannot be ruled out.

"LBO business plans remain susceptible to the effects of a weak
economic recovery, which could lead to stalled de-leveraging and
heightened refinancing risks from 2012 onwards when many bullet
repayment tranches will start to fall due," said Pablo Mazzini,
Senior Director at Fitch's European Leveraged Finance group.

Given that the primary leveraged bank loan and securitization
markets are constrained to provide funding for leveraged
borrowers, medium-term refinancing risk for existing borrowers
remains high as they are unlikely to generate sufficient free cash
flow to repay debt when maturities come due.

Debt amortization for Fitch's portfolio of 293 privately shadow-
rated leveraged credits will increase to a yearly aggregate
average of EUR48 billion between 2013 and 2016, from a more
manageable EUR6.5 billion in 2010.  Fitch also estimates that
average leverage multiples will remain high by end-2012 at 4.6x
(senior)/6.1x (total).  For the 157 credits rated 'B-*' and 'CCC*'
leverage is expected to be even higher at 5.2x (senior)/7.2x
(total).

In terms of credit performance, in the last 12 months to January
2010, the ratio of rating downgrades to upgrades declined
gradually to 5.7x from a high of 15.9x in LTM at August 2009.
Since September 2009, Fitch has recorded 89 affirmations (64% of
all rating actions), 31 downgrades (of which 10 were consummated
defaults) and 18 upgrades.  Positive rating actions were usually
driven by a combination of resilient business models generating
operating profits, which, combined with early debt redemptions,
contributed net de-leveraging progress.  Fitch reiterates that the
market may bifurcate between resilient credits that continue to
deleverage and those that do not, or do so more slowly (see the
agency's latest European Leveraged Credit review, published in
October 2009 and available at www.fitchratings.com).

The share of low ratings remains high in Fitch's European
leveraged credit portfolio, implying that legacy capital
structures remain unsustainable in the medium- to long- term,
notwithstanding recent operating performance stabilization and the
expectation of extended economic recovery.  Out of 293 shadow-
rated credits, 18.2% were rated CCC* (or below) at the end of
January 2010, slightly down from 20.1% in September 2009.  The
proportion of B-* rated (or below) remains at an all-time high of
61%.

LTM default rates as of end-Q409 were 7.5% by deal count (versus
1.8% in 2008) and 6.7% by debt volume (2.1% in 2008).
Cumulatively, they were 9.3% and 8.7% respectively since the onset
of the credit crisis in 2007.  Cumulative default rates are likely
to rise to 15%-20% by the end of 2010 driven by the share of 'C*'
and 'CC*'-rated credits (18 in total) as they are restructured.
Fitch expects the rate of defaults to stabilize by end-2010, based
on current expectations for the strength of the current economic
recovery and potentially enhanced financial flexibility driven by
heavy cost restructuring measures across most sectors.  Such
stabilization is also expected to be helped by timely equity
investments from sponsors as they strive to alleviate short-term
stresses on credits with proven business models.

The question remains whether greater volumes of new money will be
required to fund LBO business plans post-recession and, crucially,
if this additional funding will be reliant on successful
discussions between senior creditors and often out-of-the-money
mezzanine and junior debt providers.  Meanwhile, risk appetite has
returned in the capital markets with record issuance of high-yield
bonds (EUR29.3 billion in 2009) and some prospective equity-
raisings via IPOs.  Notwithstanding the market risk inherent in
such funding sources, Fitch warns that not all leveraged credits
will necessarily be able to access the capital markets by virtue
of their small size and/ or impaired financial performance in the
wake of the recession.


                            *********

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

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