TCREUR_Public/100218.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

          Thursday, February 18, 2010, Vol. 11, No. 034



KBC BANK: Moody's Lifts Rating on Preferred Securities to 'Ba3'

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

MLJEKARA AD: Insolvency Manager Invites Bid for Property


* GREECE: Hid 2002 Currency Swap Arranged by Goldman Sachs


CLARIS LIMITED: Moody's Junks Rating on US$21.875 Mil. Notes
INDEPENDENT NEWS: Extends Talks with Russian Buyer


BANCAPULIA SPA: Moody's Upgrades Bank Strength Rating to 'D+'
STEFANEL SPA: In Final Talks to Extend Debt Standstill Agreement


ALLIANCE BANK: Files for Chapter 15 Protection


PAREX BANKA: Sells Bonds; Has Preliminary Depositor Deal
PAREX BANKA: Repays EUR310 Million Syndicated Loan Tranche


IIB LUXEMBOURG: Fitch Assigns 'B' Rating on US$200 Mil. Notes


INTERXION HOLDING: S&P Raises Corporate Credit Rating to 'B+'

* NETHERLANDS: Agricultural Bankruptcies Up 56% to 133 in 2009


INTECO: Gets RUB8.4 Billion State Guarantee to Refinance Debt
X5 RETAIL: S&P Changes Outlook to Stable; Affirms 'BB-' Ratings


AYT COLATERALES: Fitch Corrects Rating on Class D Notes to 'BB'
EL BULLI: Likely to Close in 2012 Over Losses

U N I T E D   K I N G D O M

CABLE & WIRELESS: S&P Cuts Ratings on GBP200 Mil. Bonds to 'B+'
CHURCH STREET: Goes Into Administration Following Buyout
CRYSTAL PALACE: Agilo May Have Breached Third-Party Rules
EMI GROUP: Puts Abbey Road for Sale to Repay Debt
ENTERPRISE INNS: Moody's Cuts Corporate Family Rating to 'B1'

GALA CORAL: Has Tentative Agreement on GBP175MM Capital Infusion
HOUSE OF FRASER: In Talks to Renegotiate Banking Covenants
MANSARD MORTGAGES: S&P Affirms Rating on Class B2a Notes at 'B-'
READER'S DIGEST: UK Unit Files for Administration
ROYAL BANK: JP Morgan to Buy Part of RBS Sempra for US$1.7 Bil.

STOCKPORT COUNTY: League Unable to Recommend Share Transfer
TATA MOTORS: To Mothball TCP Site; Up to 3,000 Jobs at Risk


* Upcoming Meetings, Conferences and Seminars



KBC BANK: Moody's Lifts Rating on Preferred Securities to 'Ba3'
Moody's Investors Service upgraded its ratings on certain KBC Bank
NV's hybrid securities.  Moody's upgraded KBC Bank NV's junior
subordinated debt securities with cumulative deferral features to
Ba1 from Ba3 and non-cumulative preferred securities to Ba3 from
Caa1.  The outlook for both hybrid instrument types is positive.
This concludes the review for possible downgrade on the non-
cumulative preferred securities that began on August 13, 2009.
The rating outlook for KBC Bank NV and its subsidiaries remains
negative and all other ratings on KBC Bank NV and its subsidiaries
remain unchanged.

                        Last Rating Action

On August 13, 2009, Moody's downgraded the non-cumulative
instruments to Caa1 and left the ratings on review for possible
downgrade.  It also downgraded the cumulative hybrid instruments
to Ba3 with a negative outlook.  These downgrades reflected the
request by the European Commission to skip H2 2009 coupon payments
as a result of KBC requiring state aid.  The ongoing review for
downgrade of the non-cumulative instruments incorporated the
significantly greater expected loss that would result from non-
cumulative coupon deferrals at least over the next 18 months.

                     Rating Action in Detail

The upgrade of KBC Bank NV's hybrid instruments reflects Moody's
view that KBC Bank NV's publicly-stated intention to pay coupons
and the agreement of the European Commission to do so lowers the
expected loss on these instruments.  However, it is Moody's
opinion that, while the bank is implementing its restructuring
plan and state aid has not been reimbursed, uncertainty on coupon
payments is too high to warrant investment grade ratings for these

The positive outlook reflects the fact that, once the
uncertainties on the restructuring plan are lower (horizon of 1-2
years) and/or state aid has been fully reimbursed, Moody's will
likely apply its revised Guidelines for Rating Bank Hybrids and
Subordinated Debt published in November 2009, which should result
in an upgrade to investment grade ratings.

KBC Bank NV's directly-issued debt securities with cumulative
deferral features were upgraded to Ba1 with a positive outlook
from Ba3 with a negative outlook.

KBC Bank's indirectly-issued non-cumulative trust preferred
securities were upgraded to Ba3 with a positive outlook from Caa1
on review for possible downgrade.

             Rating History and Moody's Methodologies

The last rating action on KBC Bank N.V. was on August 13, 2009,
when Moody's downgraded the hybrid instruments issued directly and
indirectly by KBC Bank N.V. following the group's announcement of
a coupon deferral on its sterling perpetual issue.  KBC Bank's
directly-issued cumulative securities were downgraded to Ba3 with
a negative outlook from Baa1 on review for possible downgrade.
KBC Bank's indirectly-issued non-cumulative trust preferred
securities were downgraded to Caa1 on review for possible
downgrade from B1 on review with direction uncertain.

Based in Brussels, KBC Group had total assets amounting to
EUR344.4 billion at end-June 2009.  KBC Group's consolidated total
income for the first half of 2009 stood at EUR583 million, down
from EUR4,360 million for the first half of 2008.  In the same
period, the net profit group share stood at minus EUR3,298 million
(H1 2008: EUR1,047 million).  At end-September 2009, KBC Bank's
Tier 1 ratio stood at 10.6% under Basel II with 80% transitional

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

MLJEKARA AD: Insolvency Manager Invites Bid for Property
ISI Intellinews reports that the insolvency manager of Mljekara AD
called the interested parties to bid for the property of the
troubled producer.

According to the report, the floor price set for the property
totals EUR7.6 million.

Mljekara AD Banja Luka is a dairy company based in Banja Luka,
Bosnia's Serb Republic.  It processes milk and produces dairy
products and substitutes as well as long-life products.


* GREECE: Hid 2002 Currency Swap Arranged by Goldman Sachs
Elisa Martinuzzi at Bloomberg News in Milan reports Goldman Sachs
Group Inc. managed $15 billion of bond sales for Greece after
arranging a currency swap that allowed the government to hide the
extent of its deficit.

No mention was made of the swap in sales documents for the
securities in at least six of the 10 sales the bank arranged for
Greece since the transaction, according to a review of the
prospectuses by Bloomberg, Ms. Martinuzzi says.  According to
Ms. Martinuzzi, Goldman helped Greece raise $1 billion of off-
balance-sheet funding in 2002 through the swap, which European
Union regulators said they knew nothing about until recent days.

Failing to disclose the swap may have allowed Goldman, a co-lead
manager on many of the sales, other underwriters and Greece to get
a better price for the securities, said Bill Blain, co-head of
fixed income at Matrix Corporate Capital LLP, a London-based
broker and fund manager, Ms. Martinuzzi relates.

Bloomberg says Michael DuVally, a spokesman at Goldman Sachs in
New York, declined to comment.

Ms. Martinuzzi relates Greek Finance Minister George
Papaconstantinou said on February 15 that the swaps used by Greece
to manage debt were "at the time legal."  Greece doesn't use the
swaps now, he said.

Bloomberg reports that European Commission spokesman Amadeu
Altafaj told reporters in Brussels on February 15 the swaps don't
necessarily break EU rules.

Data compiled by Bloomberg show Goldman Sachs earned about EUR735
million (US$1 billion) underwriting Greek government bonds since
2002.  According to Bloomberg, Goldman Sachs underwrote 10 bond
sales.  Prospectuses for six of them, obtained by Bloomberg,
contain no mention of the swaps.  The other four couldn't be

According to Bloomberg, Thomas Hazen, a law professor at the
University of North Carolina at Chapel Hill, said Goldman could
face legal liability "if it could be established that they were
knowingly hiding risk, and therefore knew or had reason to know
that the bond disclosure documents were misleading."  However,
Mr. Hazen said that would be "a tough hill to climb, in terms of
burden of proof.  There'd have to be some sort of smoking-gun

According to Bloomberg, Christoforos Sardelis, head of Greece's
Public Debt Management Agency at the time, explained the
transaction with Goldman consisted of a cross-currency swap of
about US$10 billion of debt issued by Greece in dollars and yen.
That was swapped into euros using a historical exchange rate, a
mechanism that implied a reduction in debt and generated about
US$1 billion in an up-front payment from Goldman to Greece,
Mr. Sardelis said.  He declined to give specifics on how the swap
affected the country's deficit or debt.


CLARIS LIMITED: Moody's Junks Rating on US$21.875 Mil. Notes
Moody's Investors Service has downgraded the rating of three
classes of Notes issued by Claris Limited (Sierra Valley 2007-1).
The Notes affected by the rating action are:

Issuer: Sierra Valley 2007-1

  -- US$21.875M Claris Ltd Series 111/2007 Sierra Valley 2007-1,
     Downgraded to Caa2; previously on Nov 12, 2009 Downgraded to

  -- US$48.125M Claris Ltd Series 112/2007 Sierra Valley 2007-1,
     Downgraded to B3; previously on Nov 12, 2009 Downgraded to

  -- US$20M Claris Ltd Series 113/2007 Sierra Valley 2007-1,
     Downgraded to Ba2; previously on Nov 12, 2009 Downgraded to

Sierra Valley 2007-1 is a collateralized debt obligation backed by
a portfolio of US and European commercial mortgage back

The rating downgrade actions reflect a general deterioration in
the credit quality of the underlying portfolio.  This credit
deterioration can be observed through a decline in the average
credit rating (as measured by an increase in the weighted average
rating factor).  The current portfolio WARF worsened from the
previous rating action of 50 to 91, equivalent to a portfolio
rating of A1 compared to Aa3 previously.  Moody's notes that in
the case of Sierra Valley 2007-1, approximately 22% of its assets
have been the subject of rating downgrades since Moody's last
review of the transaction in November 2009.  A total of 8
reference assets have suffered downgrades ranging from 1-7

The above tranches are all relatively thin, ranging from 1.25-
2.75% and the subordination for the above Series stood at 0%,
1.25% and 4%, respectively.  The lowest rated assets in the
portfolio are rated Ba1, which accounts for more than 5% of the

INDEPENDENT NEWS: Extends Talks with Russian Buyer
BBC News reports that Independent News and Media has extended
talks with Russian billionaire Alexander Lebedev over the
ownership of its Independent and Independent on Sunday titles.

BBC notes a deadline for talks was set for Monday, but the company
has extended it to February 26 following delays.

According to BBC, shareholders in INM are reported to be keen to
get rid of the Independent titles, which are also loss-making and
suffering steady decline in circulation.

As reported by the Troubled Company Reporter-Europe on Feb. 15,
2010, talks have not progressed amid stumbling blocks understood
to include the paper's printing contract with Trinity Mirror,
which would cost over GBP15 million to break, pension deficit
issues and redundancy costs.

                       Debt-for-Equity Swap

Citing the FT, the Troubled Company Reporter-Europe on Nov. 12,
2009, reported INM secured approval of a proposed debt-for-equity
swap refinancing from bondholders.  The FT disclosed the plan
involves the exchange of EUR123 million (US$184 million, GBP110
million) of bonds for a 46% stake in the new company.  According
to the FT, under the plan approved by bondholders, existing IN&M
shareholders would be diluted to around 52%.

                  About Independent News & Media

Headquartered in Dublin, Ireland, Independent News & Media PLC
(ISE:IPD) -- is engaged in printing and
publishing of metropolitan, national, provincial and regional
newspapers in Australia, India, Ireland, New Zealand, South Africa
and the United Kingdom.  It also has radio operations in Australia
and New Zealand, and outdoor advertising operations in Australia,
New Zealand, South-East Asia and across Africa.  The Company also
has online operations across each of its principal markets.  The
Company has three business segments: printing, publishing, online
and distribution of newspapers and magazines and commercial
printing; radio, and outdoor advertising.  INM publishes over 200
newspaper and magazine titles, delivering a combined weekly
circulation of over 32 million copies with a weekly audience of
over 100 million consumers.  In March 2008, it acquired The Sligo
Champion.  During the year ended December 31, 2007, the Company
acquired the remaining 50% interest in Toowoomba Newspapers Pty


BANCAPULIA SPA: Moody's Upgrades Bank Strength Rating to 'D+'
Moody's Investors Service upgraded the bank financial strength
rating of BancApulia SpA to D+, mapping to a baseline credit
assessment of Ba1, from D (BCA of Ba2).  The rating agency also
affirmed BancApulia's Baa2/Prime-2 deposit ratings.  The outlook
on all ratings is stable.

This rating action follows the completion of the merger between
BancApulia and Banca Meridiana (not rated by Moody's).  Banca
Meridiana was a wholly owned subsidiary of Veneto Banca Holding
(Veneto Banca, not rated by Moody's).  As a result of the
transaction, BancApulia is now controlled by Veneto Banca.

Moody's said that the upgrade of the BFSR -- which concludes the
review for possible upgrade initiated on December 17, 2009 --
reflects mainly the improved liquidity and capitalization of the
bank, following the merger.

Moody's said that it views the transaction positively as
BancApulia has become part of a stronger and larger banking group,
and thus gains access to the latter's greater resources and
potential economies of scale, which could in the medium term
improve its challenged profitability and efficiency.  In addition,
the merger with Banca Meridiana strengthens BancApulia's position
in its home region of Puglia, in the south of Italy.  The stable
outlook reflects Moody's expectation that these potential benefits
are likely to materialize only in the medium term, while there are
also numerous integration challenges related to their delivery.

The affirmation of BancApulia's Baa2/Prime-2 deposit ratings with
a stable outlook reflects Moody's expectation of a very high
probability of support for the bank from its parent Veneto Banca,
notably in terms of capital, liquidity and funding, as well as
expected benefits deriving from the envisioned tight integration.

BancApulia and Banca Meridiana announced their intention to merge
in January 2009.  Following regulatory and shareholder approvals,
the two banks completed the transaction on January 25, 2010.  As a
result of the transaction, Veneto Banca has become the controlling
shareholder of BancApulia and, given a recent capital increase of
EUR93 million at Banca Meridiana prior to the merger, the merged
bank will have a significantly stronger Tier 1 capital ratio of
about 11%, compared to 6.84% for BancApulia at end-June 2009.

The new BancApulia is set to become a fully integrated banking
subsidiary, within the federal model of the Veneto Banca group,
with certain functions being centralized at the Veneto Banca
Holding level, and BancApulia focusing increasingly on commercial

Veneto Banca is a cooperative bank historically based in the
region of Veneto in north-eastern Italy, with a client base mainly
composed of small and medium-sized enterprises and retail clients.
Total assets stood at EUR22 billion at end-June 2009.  Banca
Meridiana was a smaller retail and commercial bank, also based in
BancApulia's home region of Puglia, with 51 branches and total
assets of EUR1.6 billion at end-December 2008.  It became part of
the Veneto Banca group in 2002.

This rating was upgraded:

* BancApulia: BFSR upgraded to D+ mapping to a BCA of Ba1, from D,
  mapping to a BCA of Ba2.

These ratings were affirmed with a stable outlook:

* BancApulia: long-term deposit at Baa2
* BancApulia: short-term deposit at Prime-2

The previous rating action on BancApulia was on December 17, 2009,
when its D BFSR was placed on review for possible upgrade.

BancApulia SpA is headquartered in San Severo, Italy.  At June 30,
2009, it had total assets of EUR4.5 billion.

STEFANEL SPA: In Final Talks to Extend Debt Standstill Agreement
Gilles Castonguay at Dow Jones Newswires reports that Stefanel SpA
said Tuesday it was in the final round of talks with its creditors
to prolong for about two months a standstill agreement on its

According to Dow Jones, Stefanel said in a statement the
agreement, which was to have expired Feb. 15, would be prolonged
until April 30.

The standstill agreement has enabled Stefanel to forgo interest
payments on its debt, which at Sept. 30 stood at a net EUR64.2
million, Dow Jones says.

The company's creditor banks include Banca Antonveneta, Intesa
Sanpaolo SpA and UniCredit SpA, Dow Jones discloses.

Dow Jones notes Stefanel also said it had presented to creditors
an industrial and financial plan with the help of Bain & Company
and Bird & Bird.

Stefanel SpA -- is an Italy-based
company primarily engaged in the production and marketing of
apparel.  It operates in two main business areas: the clothing
sector, through Stefanel, Interfashion and Hallhuber business
units, and in the airport retailing sector, which includes
clothing sold via the Nuance business unit.  Stefanel offers
casual-style clothing for men and women.  The brand presents a
strong focus on knitwear.  Interfashion works with such designers
as Marithe and Francois Girbaud.  Hallhuber's products are
suitable for a clientele aged between 20 and 30 years.  As of
December 31, 2008, the Company had around 330 stores all over the
world, of which 244 of Stefanel brand.  It also provides in-flight
sales activities, Internet and mail-order purchase.  It operates
through its subsidiaries among which there are: Interfashion SpA,
Lara Stefanel Sas, Stefanel GmbH, Stefanel International Holding
NV, Stefanel Japan Inc. and Stefanel Hong Kong Ltd., among others.


ALLIANCE BANK: Files for Chapter 15 Protection
JSC Alliance Bank filed for Chapter 15 bankruptcy (Bankr. S.D.N.Y.
Case No. 10-10761) to protect itself from U.S. lawsuits and
creditor claims while it reorganizes in Kazakhstan.

JSC Alliance is the sixth-largest bank in Kazakhstan by net loans.
The Chapter 15 petition says that assets and debts are in excess
of US$1 billion.

Law firm White & Case LLP, based in New York, is representing JSC
Alliance in the Chapter 15 case.

Maxat Rakhimzhanovich Kabashev, chairman of JSC's management board
and authorized foreign representative of the bank, said JSC
expanded rapidly in 2004 to 2007, primarily funded by bank
borrowings and debt securities issued in the international capital
markets.  However, JSC experienced severe liquidity difficulties
following the worldwide financial crisis.  JSC went into default
on lending agreements starting last March and negotiated a
restructuring plan that was approved in December by creditors
holding more than 94% of claims.

Kazakh banks have struggled to sell property acquired after
foreclosures on bad loans, Bloomberg News said, citing the
National Bank of Kazakhstan's quarterly survey of banks released
this month.

On September 18, 2009, JSC obtained approval from the Financial
Court in Kazakhstan of its application for restructuring under the
Civil Procedural Code.  The Kazakh Court ordered that the
restructuring must be completed no later than March 15, 2010.

On October 5, 2009, JSC and the steering committee of creditors
signed a term sheet setting out key commercial terms of the
restructuring.  The restructuring has already been approved by
creidtors holding 94% in amount of the claims against the Bank
athat are being restructured.

The Steering Committee members are Asian Development Bank, Calyon,
Commerzbank Aktiengesellschaft, DEG- Deutsche Investitutions- und
Entwicklungsgesellschaft mbIL HSBC Bank pic, ING Asia Private Bank
Limited, JPMorgan Chase Bank, N.A., Sumitomo Mitsui Banking
Corporation Europe Limited and Wachovia Bank N.A.

Depending on the nature of their claims, creditors may choose or
be eligible for one of several options to participate in the

     Option 1 -- available to holders of unsubordinated claims,
                 involves the payment of 22.5% the face amount of
                 such claims (payable in the relevant currency).

     Option 2 -- involves the issuance by the Bank of seven-year
                 notes with a principal amount equal to 50% of the
                 amount of a creditor's unsubordinated claims, and
                 "Recovery Notes" in a principal amount
                 representing approximately the remaining 50% of
                 such claims.  Recovery notes will be paid from
                 recoveries on assets in the Bank's corporate and
                 SME (Small and Medium-Sized Enterprise)
                 portfolios, litigation recoveries and certain tax

JSC is seeking recognition from the U.S. Bankruptcy Court that the
Kazakh Proceeding is the main proceeding pursuant to Sections 1515
and 1517 of the Bankruptcy Code.

                      About JSC Alliance Bank

JSC Alliance Bank is a bank with substantially all of its
operations in the Republic of Kazakhstan.  As of June 30, 2009,
the Bank's net assets constituted 4.9% of the total assets of the
banking system in Kazakhstan.  It has 3,900 employees.  The Bank's
only assets in the U.S. are certain correspondent accounts with
U.S. Banks.


PAREX BANKA: Sells Bonds; Has Preliminary Depositor Deal
Aaron Eglitis at Bloomberg News reports that Parex Banka AS sold
bonds and reached a preliminary agreement with some depositors to
keep their money in the bank.

According to Bloomberg, Parex said in an e-mailed statement Monday
the bank sold bonds worth about EUR17.7 million (US$24.1 million)
and came to an agreement in principal with depositors who faced
restrictions on removing as much as EUR130 million of funds at the
bank for two years.

Bloomberg recalls restrictions on withdrawals were put on large
deposits at Parex after it was seized by the Latvian government
following a run on its deposits in 2008.  The Financial and
Capital Markets Commission and the government imposed transaction
limits on Parex's clients of LVL35,000 (US$67,050) a month after
the bailout to stem the outflow of funds.

Bloomberg relates Robert Idelson, head of Parex's asset-management
unit, in a telephone interview Monday the bank plans to sell
another EUR50 million of bonds to depositors by the end of April.
Mr. Idelson, as cited by Bloomberg, said should the next sale
prove successful the bank "will have a pretty good chance to get
the restrictions lifted before the end of the first half of the

                        About Parex banka

Founded in 1992, Parex banka --
currently employs some 1,900 people at branches all over Latvia
and offers universal banking services throughout the Baltic
region, the CIS and other European nations such as Germany,
Switzerland and Sweden.  Parex Group companies operate across the
banking, finance, leasing, asset management and life insurance
sectors.  Currently, the Latvian Privatisation Agency is the
majority shareholder of Parex banka, holding 73.4% of the Bank's
shares, but 22.4% are controlled by the European Bank for
Reconstruction and Development.  Parex banka has signed up to the
European Code of Conduct on housing loans.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Dec. 23,
2009, Fitch Ratings affirmed Parex Banka's Long- and Short-term
Issuer Default Ratings at 'RD'.  The affirmation of Parex's IDRs
at 'RD' reflects the extension of deposit restrictions imposed on
the bank by the Latvian banking regulator till June 30, 2010.

PAREX BANKA: Repays EUR310 Million Syndicated Loan Tranche
Aaron Eglitis at Reuters reports that Parex Bank said on Friday it
has repaid EUR310 million (US$424 million) to lenders of a
syndicated credit.

According to Reuters, Parex said the situation in the bank had
become more stable and liquidity had improved and therefore it was
able to repay EUR165 million, while the State Treasury provided
the remaining EUR145 million as a term deposit.

Since the government took over Parex in November 2008, the state
has placed seven deposits in it worth a total LVL622 million
(US$1.2 billion), Reuters notes.  Parex also agreed to a deal to
restructure its syndicated credit repayments to lenders, Reuters

With the help of the state, Parex repaid EUR232.5 million in March
2009, Reuters recalls.  The final EUR232.5 million of the
syndicated loan becomes due May 2011, Reuters says.

                        About Parex banka

Founded in 1992, Parex banka --
currently employs some 1,900 people at branches all over Latvia
and offers universal banking services throughout the Baltic
region, the CIS and other European nations such as Germany,
Switzerland and Sweden.  Parex Group companies operate across the
banking, finance, leasing, asset management and life insurance
sectors.  Currently, the Latvian Privatisation Agency is the
majority shareholder of Parex banka, holding 73.4% of the Bank's
shares, but 22.4% are controlled by the European Bank for
Reconstruction and Development.  Parex banka has signed up to the
European Code of Conduct on housing loans.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Dec. 23,
2009, Fitch Ratings affirmed Parex Banka's Long- and Short-term
Issuer Default Ratings at 'RD'.  The affirmation of Parex's IDRs
at 'RD' reflects the extension of deposit restrictions imposed on
the bank by the Latvian banking regulator till June 30, 2010.


IIB LUXEMBOURG: Fitch Assigns 'B' Rating on US$200 Mil. Notes
Fitch Ratings has assigned IIB Luxembourg S.A.'s US$200 million
11% issue of limited recourse notes, due in February 2013, a final
Long-term rating of 'B' and a Recovery Rating of 'RR4'.

The notes are to be used solely for financing a loan to Russia's
International Industrial Bank, which is rated Long-term Issuer
Default 'B', Short-term IDR 'B', Individual 'D', Support '5',
Support Rating Floor 'No floor', and National Long-term
'BBB(rus)'.  The Outlooks on both Long-term Issuer Default and
National Long-term ratings are Stable.  IIB Luxembourg will charge
certain of its rights and interests under the loan agreement to
BNY Corporate Trustee Services Limited, London Branch for the
benefit of noteholders under the trust deed.

The loan agreement contains a negative pledge clause, which allows
for the creation of a lien (including securitization) on up to 10%
of consolidated total assets of IIB and its subsidiaries.  The
loan agreement also limits mergers, disposals and other types of
corporate reorganizations and stipulates that operations with
affiliates should be conducted on market terms.  Other covenants
limit loans to related parties (net of impairment reserves) to 50%
of IIB's IFRS equity (not including subordinated capital) and
capital distributions (including payment of dividends, redemption
or repurchase of share capital and prepayment of subordinated
debt) to 50% of IFRS's net income.  The covenants also oblige the
bank to maintain a total Basel I capital adequacy ratio of no less
than 20% (end-Q309: 29.77%) and to comply fully with mandatory
ratios and other requirements of the Central Bank of Russia.
According to the terms of the loan agreement, a cross default is
triggered if overdue indebtedness of IIB or any of its material
subsidiaries exceeds US$10 million.

For additional information on the issue please refer to Fitch's
announcement of February 5, 2010 available on

At end-2009, IIB was one of the top 30 Russian banks by total
assets.  IIB is controlled by Sergei Pugachev (with an 81% stake),
who since 2001 has been a member of the upper house of the Russian
parliament (the Federation Council).


INTERXION HOLDING: S&P Raises Corporate Credit Rating to 'B+'
Standard & Poor's Ratings Services said that it has raised to 'B+'
from 'B-' its long-term corporate credit rating on the
Netherlands-based data center operator Interxion Holding N.V.  The
rating was removed from CreditWatch positive where it had been
placed on Feb. 2, 2010.  The outlook is stable.

The issue ratings of 'BB-' and 'BB', respectively, on the
company's notes and revolving credit facility are now final.  The
recovery ratings of '2' and '1', respectively, on the notes and
revolver, continue to indicate S&P's expectations of "substantial"
(70%-90%) and "very high" (90%-100%) recovery in the case of a
payment default.

"The upgrade reflects S&P's assessment that Interxion's liquidity
has improved following the recent placement of EUR200 million of
notes due 2017 and the signing of a EUR60 million revolver
maturing in 2013," said Standard & Poor's credit analyst Patrice

"The stable outlook reflects S&P's expectation that Interxion will
continue to benefit from solid demand for its existing and new
data centers, and will continue to deploy capital conservatively,"
said Mr. Cochelin.

S&P does not expect gross adjusted debt to EBITDA to increase
meaningfully above 4x and expect the company to maintain adequate

The corporate credit rating is constrained by S&P's expectation
that significant capital investments will keep Interxion's free
cash flow generation negative for some time.  The rating is also
constrained by the industry's largely fixed-cost base and its long
planning and sales cycles, which S&P believes could significantly
weaken earnings in the medium term.  S&P also take into account
Interxion's significant gross adjusted debt leverage and S&P's
projections for moderate liquidity after early 2013.

Interxion's status as a carrier-neutral data center provider--not
tied to any particular telecom operator--with a presence in most
European communication hubs is relatively rare and is a positive
factor for the rating.  The industry has adequate barriers to
entry and currently has a favorable supply/demand balance--driven
by a constrained offer, growth in Internet traffic and
communications volumes in general, and the limited penetration, so
far, of outsourced data centers in Europe.  Interxion benefits
from significant revenue recurrence as well as attractive margins
and cash flow generated by facilities operating at optimal
capacity.  On Sept. 30, 2009, Interxion reported gross
consolidated debt of about EUR156 million.

S&P could consider lowering the rating if liquidity tightened
significantly from its current level, if the profitability or cash
generation of existing data centers deteriorated materially, or if
leverage increased materially above S&P's current expectations,
including an adjusted gross debt to EBITDA ratio meaningfully
above 4x or funds from operations coverage of debt materially
below 20%.

Over time, significant progress toward positive consolidated free
cash flow generation could support an upgrade, provided liquidity
remains adequate.

* NETHERLANDS: Agricultural Bankruptcies Up 56% to 133 in 2009
Rudy Ruitenberg at Bloomberg News reports that agricultural
bankruptcies in The Netherlands in 2009 climbed to the highest
level in three years as more growers of vegetables and flowers
went bust.

Bloomberg relates the government statistics office said in a
report on its Web site Tuesday company failures in agriculture
rose 56% to 133 last year from 85 in 2008.

According to Bloomberg, Central Bureau voor de Statistiek said in
the fourth quarter, 46 farm companies failed compared with 26 a
year earlier.  The bureau said agriculture accounted for less than
2% of overall Dutch bankruptcies, which surged 73% to 8,040,
Bloomberg notes.

The Netherlands is the fifth-largest farm producer in the European
Union, Bloomberg discloses.


INTECO: Gets RUB8.4 Billion State Guarantee to Refinance Debt
Property Xpress reports that Inteco, owned by Elena Baturina, has
received a state guarantee for RUB8.44 billion.

According to the report, a member of the company said that with
the help of the new state guarantees Inteco will refinance old
loans to Sberbank and VTB.

Inteco is a Russian construction company, 99% of which is owned by
Yelena Baturina, Russia's richest woman and wife of Moscow city
mayor, Yuriy Luzhkov.

X5 RETAIL: S&P Changes Outlook to Stable; Affirms 'BB-' Ratings
Standard & Poor's Ratings Services said that it had revised its
outlook on X5 Retail Group N.V., owner of Russia's largest grocery
retail network, to stable from negative.  At the same time, the
'BB-' long-term corporate credit and 'ruAA-' Russia national scale
ratings on X5, its related entities, and their respective issue
ratings were affirmed.

"The outlook revision primarily reflects the improvement in X5's
liquidity position, but also its resilient operating performance
and more conservative financial policy," said Standard & Poor's
credit analyst Anton Geyze.

At the end of 2009, X5 obtained a five-year US$1.1 billion
committed line from Sberbank and a number of smaller committed
lines from foreign and state-owned banks.  Additionally, in the 12
months to Sept. 30, 2009, X5 generated free operating cash flow
(FOCF) of US$337 million, which allowed the company to accumulate
meaningful cash balances.  These sources secure the company's
liquidity position over the next 12 months.

S&P believes that debt metrics will improve further on the back of
organic growth, supported by expanded selling space and flat
nominal net debt, because S&P expects discretionary cash flow to
be neutral.  S&P also expects any unforeseen transformational
acquisitions to be funded largely through equity issuance.
The ratings do not factor in any major acquisitions or changes to
the shareholder remuneration policy.

X5's significant unhedged exposure to foreign exchange borrowings
remains an important restricting factor for its credit profile.
The company generates almost all of its revenues in Russian
rubles, while about 60% of its debt is in U.S. dollars.  As the
company does not fully hedge its foreign exchange risk exposure,
X5 is dependent upon exchange rate fluctuations.

The stable outlook reflects S&P's expectation of X5's continuing
resilient operating performance and stable cash flow generation.

"S&P expects the company to continue demonstrating a relatively
prudent financial policy, which would include sound liquidity
management and avoiding any opportunistic debt financed
acquisitions," said Mr. Geyze.  "Such acquisitions might put the
company's liquidity at risk in the future, because potential
acquisition targets in Russia often have mostly short-term debt
maturity profiles."

S&P could lower the ratings in case of a significant increase in
X5's financial aggressiveness that would lead to deterioration of
credit protection metrics.  To maintain the current ratings, S&P
expects the company's adjusted debt to EBITDA to be about 3.5x and
adjusted funds from operations to be in the range of 15% to 20%.
Ratings downside could also result in case of substantial ruble
depreciation negatively affecting debt protection metrics and
covenant headroom.

Ratings upside would require further deleveraging and improvement
in the capital structure in terms of duration and currencies.  It
would also require a longer track record of financial prudence,
and a publicly formulated financial policy.  Operational metrics
should also remain supportive, meaning that the company should
prove capable of adjusting its business to the weakening economic
conditions and maintaining its market position.


AYT COLATERALES: Fitch Corrects Rating on Class D Notes to 'BB'
Fitch Ratings has corrected a version released on February 15,
2010.  The prior rating of the class D note was 'BB' and not

Fitch has downgraded AyT Colaterales Global Hipotecario, FTA Serie
AyT Colaterales Global Hipotecario CCM I's (AyT Colaterales CCM I)
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

The rating actions are:

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

  -- 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'

EL BULLI: Likely to Close in 2012 Over Losses
Caterersearch reports that Spain's El Bulli restaurant is likely
close for good in 2012 because it is losing too much money.

The report relates Ferran Adria, had planned to reopen after a
temporary two-year closure but told the New York Times on Friday
that El Bulli would now close permanently.

According to the report, although the avant-garde restaurant has a
waiting list of 3,000, it has operated at a loss since 2000 and
has been losing around EUR500,000 a year.

U N I T E D   K I N G D O M

CABLE & WIRELESS: S&P Cuts Ratings on GBP200 Mil. Bonds to 'B+'
Standard & Poor's Ratings Services said that it lowered to 'B+'
from 'BB-' its issue ratings on the GBP200 million unsecured bonds
due in 2012 issued by U.K.-based telecoms service provider Cable &
Wireless PLC and the GBP200 million guaranteed notes due 2019
issued by Cable & Wireless International Finance B.V. due in 2019.
These issue ratings remain on CreditWatch with negative
implications where they were placed on Nov. 17, 2009.  At the same
time, S&P withdrew the recovery ratings on these issues.

The long-term corporate credit rating of 'BB-' and the senior
secured issue rating of 'BB-' on the new bond issued by C&W
subsidiary Sable International Finance Ltd. are unchanged.  These
ratings remain on CreditWatch with positive implications where
they were placed on Nov. 17, 2009, and Feb. 2, 2010, respectively,
reflecting the likelihood of a one-notch upgrade on completion of
C&W's proposed demerger.

The 'B' short-term credit rating is unchanged.

C&W intends to demerge its two main business lines, essentially
resulting in the spin-off of its "Worldwide" activities from its
international fixed-line and mobile operations, known as Cable &
Wireless Communications PLC.  C&W Communications will be the
surviving entity that S&P will rate following the planned
demerger.  Each of the existing senior unsecured bonds will
continue to be obligations of C&W or Cable & Wireless
International Finance B.V. These entities will be part of the C&W
Communications Group following the demerger.

"The downgrade of the issue ratings on the two unsecured bonds
reflects their deeper subordination following the issuance of a
$500 million senior secured bond by Sable International Finance
Ltd. as well as a likely reduced asset base following the planned
demerger," said Standard & Poor's credit analyst Helen O'Toole.

The withdrawal of S&P's recovery ratings on the two unsecured
bonds reflects that C&W Communications' debtholders will be
reliant on assets in the Caribbean, Panama, Macau, and elsewhere
to service debt.  Since S&P has limited knowledge of the
insolvency regimes of the countries in which the assets are
located, S&P will not apply its recovery rating methodology.

The placement of the issue ratings on the unsecured bonds on
CreditWatch with negative implications reflects the possibility
that the ratings may be lowered further if the demerger does not
go ahead.  Based on current information, and assuming that the
demerger goes ahead as per the plans that have already been
communicated by the company, S&P expects there to be a two-notch
differential between the corporate credit rating and the ratings
on the unsecured debt instruments.

The placement of the long-term corporate credit rating and the
senior secured issue rating on CreditWatch with positive
implications reflects S&P's view that, on completion of the
demerger, C&W Communications is likely to benefit from a stronger
business risk profile than C&W, probably leading to a corporate
credit rating of 'BB'.

"We will likely resolve the CreditWatch status as and when the
planned demerger becomes effective, which the company expects by
end-March 2010," said Ms. O'Toole.  "Based on S&P's current
assessment, S&P expects to upgrade the corporate credit rating by
one notch, to 'BB', on completion of the demerger."

CHURCH STREET: Goes Into Administration Following Buyout
Adam Hooker at Print Week reports that East London printer Church
Street Litho, which trades under the name of its predecessor
Belgravia Colour Printers, has gone into administration.

The report relates the failure comes just 18 months after the
business and assets were bought out of administration by BCP
director Martin Draycott.

Andrew Andronikou and Peter Kubik, of insolvency practitioner
Hacker Young, were appointed as administrators on January 25, the
report recalls.

The administrators have not returned requests for information and
it is unclear what plans they have for the company, the report

CRYSTAL PALACE: Agilo May Have Breached Third-Party Rules
Owen Gibson and Dominic Fifield at The Guardian report that the
Football League this week will seek clarification from Agilo, the
hedge fund that pushed Crystal Palace into administration about
the extent of their control over player contracts, amid concerns
that they could breach rules over third-party ownership.

According to the report, Agilo, the hedge fund that is owed GBP4.5
million by Crystal Palace, said that it appointed administrators
in the final days of the January transfer window only as "a last
resort" following a breakdown in relations with the club's former
owner, Simon Jordan.

The administrator Brendan Guilfoyle is expected to meet with the
Football League in the coming days in the hope that it will
release the balance of the money collected by the club in the
transfer window from the sale of Victor Moses, the report says.
The report notes even after money has been deducted for football
creditors, Mr. Doyle has said that it will be sufficient to see
the club through to the end of the season when added to the income
from Palace's FA Cup run and a GBP1 million loan advanced by
Agilo.  Mr. Guilfoyle has agreed in principle with the PFA that
players will defer payment of their bonuses and appearance money
until the end of the season, the report recalls.

Agilo accepted the players' contracts as security for a loan taken
out by Mr. Jordan, which is believed to have around GB4.5 million
outstanding, the report notes.

As reported by the Troubled Company Reporter-Europe on Jan. 28,
2010, Crystal Palace went into administration after running into
financial problems.  According to The Times, the club has debts
estimated at GBP30 million.

London-based Crystal Palace Football Club -- plays in the English League.
The team, also known as the "Eagles" represents a borough of
London called Croydon.  It was founded in 1905 by workers at the
Crystal Palace, a wrought iron and glass building originally
erected in the Hyde Park area of London to house the Great
Exhibition of 1851 (the first in a series of World's Fair
exhibitions).  The Crystal Palace Football Club moved to its
current stadium Selhurt Park in 1924.  Chairman Simon Jordan took
over the club in 2000, ending Crystal Palace's stint with

EMI GROUP: Puts Abbey Road for Sale to Repay Debt
Andrew Edgecliffe-Johnson at The Financial Times reports that EMI
Group has put Abbey Road, the London recording studios
immortalized by the Beatles album of the same name, on the market
as the music group looks to extricate itself from the debt burden
of Terra Firma's 2007 leveraged buy-out.

EMI would not comment but five people familiar with the situation
told the FT it had been courting bidders for the property in
St. John's Wood.  A sale could raise tens of millions of pounds,
the FT says.

The FT notes it was not immediately clear whether EMI would sell
the Abbey Road brand name along with the property, but one media
lawyer said: "The brand is worth more than the building . . .
anybody who wants the studios will want the brand."

According to the FT, depending on the level of offers it attracts,
a sale could bolster EMI's finances at a time when Terra Firma is
seeking GBP120 million (EUR138 million) from investors by June to
avoid breaching covenants on GBP3.3 billion of loans from
Citigroup.  However, it is unlikely that the proceeds would arrive
in time or be large enough to help significantly with that
deadline, the states.

                       Going Concern Doubt

As reported by the Troubled Company Reporter-Europe on Feb. 8,
2010, The Financial Times said KPMG, EMI Group's accountants,
raised "significant doubt" about the company's ability to continue
as a going concern.  The FT disclosed Guy Hands, Terra Firma's
founder and chairman, has written to investors in two of its
private equity funds asking them to inject another GBP120 million,
subject to EMI Music producing a new strategic plan.  He must come
up with the money by June 14 or risk losing the company to
Citigroup, his bankers, the FT said.  According to the FT,
accounts for the year to March 2009, released on February 9,
however, make clear that even if Terra Firma secures this equity,
it will face another "significant shortfall" against a test on
covenants in its loans by March 2011.  Unless it can persuade Citi
to restructure its GBP3.2 billion in loans by then, investors face
further cash calls, the FT stated.  The FT disclosed EMI's pre-tax
losses for the year to March 2009 widened to GBP1.7 billion,
against a GBP414 million loss for the previous period, which
covered the first eight months and 21 days of Terra Firma's

EMI -- is the fourth largest record
company in terms of market share (behind Universal Music Group,
Sony Music Entertainment, and Warner Music Group).  It houses
recorded music segment EMI Music and EMI Music Publishing.  EMI
Music distributes CDs, videos, and other formats primarily through
imprints and divisions such as Capitol Records and Virgin, and
sports a roster of artists such as The Beastie Boys, Norah Jones,
and Lenny Kravitz.  EMI Music Publishing, the world's largest
music publisher, handles the rights to more than a million songs.
EMI Music operates through regional divisions (EMI Music North
America, International, and UK & Ireland).  Private equity firm
Terra Firma owns EMI.

ENTERPRISE INNS: Moody's Cuts Corporate Family Rating to 'B1'
Moody's Investors Service downgraded Enterprise Inns plc Corporate
Family Rating to B1 from Ba3, the Probability of Default Rating to
B2 from B1 and the rating of GBP275 million senior secured
floating-rate notes due 2031 to Ba2 from Ba1.  At the same time
the ratings were placed on review for further downgrade.

The rating downgrade reflects Moody's expectation that Enterprise
Inns' performance is unlikely to improve sufficiently over the
next twelve to eighteen months to meet Moody's target credit
metrics for stabilizing the rating at its former level.  Moody's
forecast indicates that the group's consolidated leverage, as
measured by Moody's adjusted net debt to EBITDA, and EBITDA
interest coverage will continue on a weakening rather than
improving trend over this fiscal year and the next.

ETI's active management of a predominantly good-quality portfolio
of freehold public houses supports the rating.  The large pub
estate provides geographic diversification to its revenues, which
are underpinned by long-term leases and low operational gearing.
However, beer sales and rental income remain under pressure due to
weak consumer spending.  While the majority of ETI's pubs
performed well, given the market circumstances, with net income
received from over 80% of the estate let on substantive agreements
down by less than 3% year-on-year, a minority of the properties
faced considerable difficulties.  The cost to ETI to either
support or close these establishments drove down consolidated
adjusted EBITDA by 13% during the 2008/09 fiscal year.

The ratings also incorporate the measures taken by the company to
preserve its overall credit profile: FY2008/09 free cash flow was
increased by cutting the dividend and selling assets, the proceeds
of which are being applied towards the reduction of debt;
GBP103 million net cash was raised through the disposal of pubs,
generating a small profit over book value.  Moody's understands
that the company is well on the way to realizing a similar amount
in the first half of fiscal 2009/10.

Moody's expects that the group will continue to comply with its
various financial bond and bank covenants and maintain an adequate
liquidity profile over the next twelve months; however the
refinancing of the company's GBP1 billion syndicated bank facility
looms in May 2011.  In that connection, management has already
started investigating refinancing alternatives.  However, Moody's
have seen elsewhere that banks are exacting tougher terms and
conditions, including much lower loan-to-value covenants and this
may affect the negotiations.

The review for a further possible downgrade therefore relates
largely to Enterprise Inns' heightened liquidity risk profile due
to the execution risk related to its significant refinancing
requirement in fifteen months.  Furthermore, the company's present
high level of indebtedness combined with the decline in pub market
values during fiscal 2008/09 could potentially frustrate
refinancing negotiations.

Moody's review for possible further downgrade will focus on (i)
the degree to which company's performance for the first half of
2009/10 meets budget expectations; (ii) the continuing success of
its asset sales program to raise cash for the reduction of debt;
(iii) the evolution of its liquidity and covenant headroom; and
(iv) the company's progress towards the timely refinancing of its
syndicated banking facilities.

The last rating action was implemented on July 27, 2009, when
Moody's changed the rating outlook to negative from stable.

Enterprise Inns plc, headquartered in Solihull, is the second-
largest pub operator in the UK.  It has an estate of around 7,400
tenanted pubs country-wide, valued at GBP5.4 billion at
September 30, 2009.

GALA CORAL: Has Tentative Agreement on GBP175MM Capital Infusion
Anousha Sakoui at The Financial Times reports that key lenders to
Gala Coral have tentatively agreed to a GBP175 million capital
infusion for the gambling group as part of a debt restructuring.

The FT relates a group of leading senior lenders, including
Alcentra, Lloyds Banking Group and Royal Bank of Scotland, have
been in talks with a group of investors who bought into the
company's mezzanine debt in an attempt to take control over the

The FT relates that under the terms being discussed, the mezzanine
lenders, of which the biggest are Apollo Management, Cerberus and
Goldman Sachs, would underwrite a GBP175 million injection that
will help the company repay its senior debts.

According to the FT, the plan would also see the company's
mezzanine creditors take control by converting their GBP540
million claims into equity.  The terms under which the new funds
will be provided are yet to be agreed.

In exchange for their support, Gala's banks are expected to not
only have some of their debt repaid but also receive an increase
in the interest paid on their loans, the FT notes.

Gala Coral Group Ltd. -- is a
gaming company in the UK, with operations encompassing bingo,
casinos, and sports betting.  It runs more than 150 bingo halls
throughout the country, as well as some 30 casinos.  The company
is also a bookmarker with nearly 1,600 betting shops and online
betting sites.  Gala Coral Group was formed in 2005 when Gala
Group acquired Coral Eurobet.  The company is jointly owned by
private equity firms Cinven Group, Candover Investments, and

HOUSE OF FRASER: In Talks to Renegotiate Banking Covenants
Esther Bintliff and Anousha Sakoui at The Financial Times report
that House of Fraser is in talks with its lenders to renegotiate
its banking covenants to fund expansion of its own-brand ranges.

According to the FT, the retailer is not in danger of breaching
covenants this year but the planned increase in own-brand sales
means it needs higher levels of capital to buy stock next year,
requiring it to reset its covenants.

The FT says the company is looking to reset both its cash cover
covenant and the ratio of net debt to earnings before interest,
tax, depreciation and amortization.

The retailer has about GBP180 million (US$284 million) of debt and
has offered lenders an extra 1.25 percentage points of interest in
the first year, which will be reduced to 1 percentage point
thereafter, the FT discloses.

The company has set lenders an "early bird" consent deadline for
March 5, while the final deadline is March 12, the FT notes.

According to the FT, more than 60% of the company's banks have
pre-approved the change.  House of Fraser needs the consent of two
thirds of its lenders, the FT notes.

House of Fraser -- is a
department store chain.  It sells women's, men's, and children's
apparel and accessories; housewares; linens; cosmetics; perfume;
jewelry; furniture; and electronics in 60-plus stores throughout
the UK and Ireland.  House of Fraser's stores operate under many
banners, including House of Fraser, Frasers, Rackhams, and
Jenners. Name brands offered include Alberta Ferretti, Armani,
Diesel, French Connection, Jean Paul Gaultier, and Moschino, as
well as in-house brands such as Linea Home.  Founded in 1849 by
Hugh Fraser, the department store chain is owned by a consortium
of investors.

MANSARD MORTGAGES: S&P Affirms Rating on Class B2a Notes at 'B-'
Standard & Poor's Ratings Services affirmed its credit ratings on
all classes of notes in Mansard Mortgages 2006-1 PLC's U.K.
residential mortgage-backed securities transaction.

As per the January 2010 investor report, the issuer has fully
drawn the reserve fund and there is an uncleared class B2a
principal deficiency ledger balance of GBP4.15 million (1.8% of
the outstanding note balance), leaving the notes

The stock of repossessions has fallen to 3.7% in January 2010 from
7.1% in October 2009.  In S&P's opinion, the stock is still high
and the class B2a PDL may increase in the near term as properties
are sold at a loss.

However, collateral performance has improved in recent quarters as
borrowers benefit from low interest rates (and therefore lower
monthly payments).  Total delinquencies have fallen to 35.1% in
January 2010 from a peak of 47.4% in April 2009, and 180+ day
delinquencies (excluding repossessions) have fallen to 16.9% in
January 2010 from 19.1% in July 2009.

S&P will continue to monitor the transaction, paying specific
attention to the class B2a PDL, severe delinquencies, and the
stock of repossessions.

Mansard Mortgages 2006-1 is a U.K. nonconforming RMBS transaction
that closed in October 2006.  The collateral comprises first-
ranking mortgages secured on freehold and leasehold residential
properties in England, Wales, and Scotland.

                           Ratings List

                   Mansard Mortgages 2006-1 PLC
        GBP500 Million Mortgage-Backed Floating-Rate Notes

                         Ratings Affirmed

                        Class       Rating
                        -----       ------
                        A2a         AAA
                        M1a         AA
                        M2a         BBB
                        B1a         BB
                        B2a         B-

READER'S DIGEST: UK Unit Files for Administration
The Reader's Digest Association, Inc. disclosed that the Reader's
Digest Association, Ltd., a subsidiary of RDA, has filed an
administration proceeding in the UK.  The decision by the RDA UK
board to place the UK company into an orderly insolvency process
follows the recent decision by the UK Pensions Regulator that it
would not support an agreement already reached between RDA UK, the
trustees of its pension plan and the UK Pension Protection Fund
(PPF) to settle a longstanding pension plan liability.

The agreement, which contemplated a lump sum payment by parent
company RDA plus an equity stake in RDA UK, was authorized by the
US Bankruptcy Judge overseeing RDA's U.S. Chapter 11 proceedings,
and would have relieved RDA UK of significant financial
obligations associated with its underfunded UK pension plan.
Absent an agreement, RDA UK is financially unable to meet those
obligations and sustain its operations.

Parent company RDA has completed a restructuring plan after having
filed for pre-arranged Chapter 11 in the U.S. Bankruptcy Court for
the Southern District of New York on August 24, 2009.  The court
confirmed RDA's plan on January 15, 2010, enabling the parent
company to emerge from Chapter 11.  On February 1, RDA announced
it had elected to temporarily delay emergence from Chapter 11 for
a few weeks to allow additional time for the UK pension issue to
be addressed.  In light of the recent action taken by RDA UK to
file for administration, parent RDA expects to emerge from Chapter
11 promptly.

RDA does not expect the UK administration to have a material
impact on its financial performance as the UK business has been
operating with negative free cash flow, and without the
contemplated restructuring the corporation did not see a clear
pathway to profitability in the UK over the next several years.
The UK pension issue is specific to the UK entity and does not
involve any other RDA company.  RDA intends to work with the
administrators to ensure an orderly process, and RDA does not
expect an adverse impact on non-UK operations globally including
suppliers and customers.

RDA is a global multi-brand media and marketing company that
educates, entertains and connects audiences around the world. The
company builds multi-platform communities based on branded
content. With offices in 44 countries, it reaches a customer base
of 130 million in 78 countries.  It publishes 92 magazines,
including 50 editions of Reader's Digest, the world's largest-
selling circulation magazine, operates 78 branded websites and
sells 40 million books, music and video products across the world
each year.

ROYAL BANK: JP Morgan to Buy Part of RBS Sempra for US$1.7 Bil.
Javier Blas at The Financial Times reports that JPMorgan on
Tuesday agreed to buy a large chunk of RBS Sempra Commodities for
US$1.7 billion in cash.

According to the FT, the bank said it would purchase RBS Sempra's
global oil unit, its profitable metal trading business and
operations in coal, freight and power and gas in Europe and Asia.
RBS Sempra Commodities will retain its US natural gas and power
operations, the FT says.

The sale of the business -- a joint venture between Royal Bank of
Scotland, the rescued UK bank, and US utility group Sempra Energy
-- was triggered by a European Commission state-aid ruling late
last year ordering RBS to divest its stake, the FT notes.

Lazard advised RBS on the sale and Sempra Energy has retained
JPMorgan to review alternatives for the North American power and
gas unit, the FT discloses.

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

                           *     *     *

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

STOCKPORT COUNTY: League Unable to Recommend Share Transfer
Stockport County Association Football Club Limited entered into
administration on April 30, 2009, with the appointment of John
Titley and Paul Reeves, Directors at Leonard Curtis, as Joint

In an update, the administrators said, "We are disappointed to
report that we have received confirmation via our solicitors that
the Football League is presently unable to recommend the transfer
of the SCFC share to the prospective purchaser, The Melrose
Consortium.  We understand that certain items of required
information are still outstanding.  We remain hopeful that The
Melrose Consortium can still progress their interest and we will
continue to provide information and support to them.

"However, we will also continue to actively seek interest from
other parties and would emphasize that any such parties should
notify us of their interest as quickly as possible in order to
ensure the Club's future.

"The administrators would like to thank the players, staff,
supporters and sponsors for their patience and efforts in these
difficult times for the Club.

"The administrators have made every effort to secure a sale but
the current economic climate combined with the requirements of the
Football League membership criteria have made this process
extremely difficult.  However, the administrators would like to
assure everyone associated with the Club that everything is being
done to try and attract new investors for the Club and would like
to use this opportunity to encourage offers for the Club."

TATA MOTORS: To Mothball TCP Site; Up to 3,000 Jobs at Risk
Chris Tighe at The Financial Times reports that Corus is to begin
to mothball its Teesside Cast Products site this Friday,
threatening to end more than 150 years of iron and steelmaking on
Teesside and resulting in up to 3,000 job losses.

Corus, the FT discloses, has blamed TCP's problems on the sudden
termination last year by an international consortium of a deal by
which it was to buy 78% of the steel output from the site, which
has a 3m tonnes a year capacity.  That withdrawal, half way
through a 10-year contract, undermined an agreement by two of the
consortium members -- Marcegaglia of Italy and Dongkuk of South
Korea -- to buy the plant for US$480 million, the FT recounts.

The FT relates Community, the steel union, attacked Corus, owned
by Tata Steel of India, for acting too quickly, saying on Tuesday
that it had undermined future growth.  The market for steel slab,
TCP's product, is "improving week by week".

"The decision to mothball Teesside Cast Products is premature and
jeopardizes the foundation of British manufacturing," the FT
quoted Michael J. Leahy, general secretary, as saying.  The union
had expected a meeting with Corus and Gordon Brown, the prime
minister, before any mothballing, the FT notes.

According to the FT, about 1,600 jobs at TCP are under threat, as
well as up to 1,000 contractors' posts.

Separately, the FT's Mr. Tighe reports Unite, the trades union,
attacked mothballing as a "disgraceful charade" and a "smoke
screen" to give the impression Corus wanted to sell TCP once it
had interested buyers.

"Serious offers have been made to Corus that would allow
production to remain at the plant -- but the management has
dismissed them all out of hand," the FT quoted Terry Pye, Unite's
national office for the steel industry.

The FT relates Ray Mallon, Middlesbrough's elected mayor, claimed
a credible consortium interested in buying the plant had received
no response from Corus to a request to "look at the books" and to
allow due diligence.  Mr. Mallon on Wednesday urged Lord Mandelson
to support the consortium's negotiations by paying to keep the
current workforce in place for up to 90 days, and postpone
mothballing, while the deal is explored, the FT recounts.
Lord Mandelson, business secretary, will meet Corus management at
Teesside today, Feb. 18, the FT discloses.  The Department of
Business has said it cannot, by European state subsidy rules,
offer a steel industry wage subsidy, the FT notes.

According to the FT, Kirby Adams, chief executive of Corus, said
the company had "toured tirelessly around the globe" to seek a
strategic partner but had been unable to find one.  Mr. Adams, as
cited by the FT, said Corus, which gave TCP several temporary
reprieves after announcing its proposed mothballing last May, had
spent US$220 million trying to find a buyer.

Headquartered in Mumbai, India, Tata Steel Limited -- is a diversified steel producer.  It
has operations in 24 countries and commercial presence in over 50
countries.  Its operations predominantly relate to manufacture of
steel and ferro alloys and minerals business. Other business
segments comprises of tubes and bearings.  On April 2, 2007, Tata
Steel UK Limited (TSUK), a subsidiary of Tulip UK Holding No.1,
which in turn is a subsidiary of Tata Steel completed the
acquisition of Corus Group plc.  Tata Metaliks Limited, which is
engaged in the business of manufacturing and selling pig iron,
became a subsidiary of the Company with effect from February 1,
2008.  In September 2008, the Company acquired a 7.3% interest in
Riversdale Mining Ltd.

                           *     *     *

As reported in the Troubled Company Reporter-Asia on June 10,
2009, Moody's Investors Service downgraded the corporate family
rating of Tata Steel Ltd to Ba3 from Ba2.  Moody's said the rating
outlook is stable.


* Upcoming Meetings, Conferences and Seminars

Feb. 21-23, 2010
    International Annual Regional Conference
       Madinat Jumeirah, Dubai, UAE
          Contact: 44-0-20-7929-6679 or

April 20-22, 2010
    Sheraton New York Hotel and Towers, New York, NY

Apr. 29-May 2, 2010
    Annual Spring Meeting
       Gaylord National Resort & Convention Center, Maryland
          Contact: 1-703-739-0800;

June 17-20, 2010
    Central States Bankruptcy Workshop
       Grand Traverse Resort and Spa, Traverse City, Michigan
          Contact: 1-703-739-0800;

July 7-10, 2010
    Northeast Bankruptcy Conference
       Ocean Edge Resort, Brewster, Massachusetts
          Contact: 1-703-739-0800;

July 14-17, 2010
    Southeast Bankruptcy Conference
       The Ritz-Carlton Amelia Island, Amelia, Fla.

Aug. 5-7, 2010
    Mid-Atlantic Bankruptcy Workshop
       Hyatt Regency Chesapeake Bay, Cambridge, Maryland
          Contact: 1-703-739-0800;

Oct. 6-8, 2010
    TMA Annual Convention
       JW Marriott Grande Lakes, Orlando, Florida

Dec. 2-4, 2010
    22nd Annual Winter Leadership Conference
       Camelback Inn, Scottsdale, Arizona
          Contact: 1-703-739-0800;

Mar. 31-Apr. 3, 2011
    Annual Spring Meeting
       Gaylord National Resort & Convention Center, Maryland
          Contact: 1-703-739-0800;

June 9-12, 2011
    Central States Bankruptcy Workshop
       Grand Traverse Resort and Spa
          Traverse City, Michigan

October 25-27, 2011
    Hilton San Diego Bayfront, San Diego, CA

Dec. 1-3, 2011
    23rd Annual Winter Leadership Conference
       La Quinta Resort & Spa, La Quinta, California
          Contact: 1-703-739-0800;


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

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  Go to 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-Fernandez, Joy A. Agravante and Peter A. Chapman,

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

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

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

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

                 * * * End of Transmission * * *