TCREUR_Public/100222.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

          Monday, February 22, 2010, Vol. 11, No. 036

                            Headlines



C Z E C H   R E P U B L I C

* CZECH REPUBLIC: Pays CZK844 Mil. in Wages for Insolvent Firms


G E R M A N Y

DEPFA FUNDING: Moody's Cuts Rating on Tier 1 Securities to 'Ca'
DEUTSCHE APOTHEKER: Moody's Cuts Pref. Securities Rating to Ba1
EUROHYPO AG: Moody's Downgrades Rating on Medium Term Notes
HEIDELBERGCEMENT AG: New Bonds Offer Limited Protection
LANDESBANK BADEN: S&P Withdraws 'CCC+' Ratings on 4 CDO Tranches

LANDESBANK HESSEN: Moody's Cuts Pref. Securities Rating to 'Ba1'
WILHELM KARMANN: Germany to Probe Magna's Bid for Roof Business


I R E L A N D

GALVINS WHOLESALE: Hearing on Summary Judgment Order Adjourned
STANTON ABS: S&P Cuts Ratings on Three Classes of Notes to 'D'

* IRELAND: Fine Gael Seeks Reduction of NAMA Size, Senator Says
* IRELAND: NAMA Set to Take Over Bad Loans in the Coming Weeks


I T A L Y

MARIELLA BURANI: Walter Burani Steps Down as Chairman


R O M A N I A

* ROMANIA: Corporate Insolvencies Reach Over 2000 in January
* ROMANIA: Wave of Insolvencies Hinder Resumption of Lending
* ROMANIA: Food Retailers Face More Bankruptcies This Year


R U S S I A

EVRAZ GROUP: S&P Cuts Long-Term Corporate Credit Rating to 'B'
TRANSCONTAINER JSC: Moody's Confirms 'Ba2' Corporate Family Rating


U K R A I N E

NADRA BANK: NBU Extends Temporary Administration Until Next Year

* UKRAINE: Bankruptcy Not a Large-Scale Phenomenon, Expert Says


U N I T E D   K I N G D O M

BLOCKBUSTER INC: In Talks with UK Landlords to Cut Store Numbers
BRITISH AIRWAYS: Strike Vote Won't End Union Negotiations
FRANK GALLIERS: In Liquidation; Owes Nearly GBP10 Billion
GLASSHOUSE RESTAURANT: Put Into Liquidation by Owner
HIGHLAND AIRWAYS: In Exclusive Takeover Talks with Unnamed Bidder

LADBROKES PLC: Fitch Affirms Issuer Default Rating at 'BB+'
LADBROKES GROUP: S&P Assigns 'BB' Rating on GBP250 Mil. Bonds
LVG LIMITED: Lack of Funding & Investment Prompts Administration
MARRACHE & CO: PwC Gibraltar Appointed Provisional Liquidators
PORTSMOUTH FOOTBALL: Wants to Sell Players to Raise Funds

PRESBYTERIAN MUTUAL: MPs Blame Regulatory Failure for Collapse
PRINT FACTORY: In Administration; Sells BPO Division
REXAM PLC: Posts GBP59 Million Full-Year Loss
SPEEDWELL REINFORCEMENTS: In Administration; 50-70 Jobs Affected

* UK: CVAs Not Suitable for All Companies, KPMG Says
* UK: Commercial Property Meltdown to Hit Banks' Balance Sheets
* UK: To Face Challenges in Unwinding Support Programs for Banks
* UK: Banks Need to Draw Up Refinancing Plans, Mervyn King Says
* UK: Building Societies to Face GBP300 Bil. Funding Shortfall

* UK: Solicitors Must Report Insolvency Risk to SRA, KPMG Says
* Conrad Bigham Joins MCR as New Director for Hotel Sector


X X X X X X X X

* S&P Withdraws Ratings on 15 Collateralized Debt Obligations

* BOND PRICING: For the Week February 15 to February 19, 2010




                         *********



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


* CZECH REPUBLIC: Pays CZK844 Mil. in Wages for Insolvent Firms
---------------------------------------------------------------
CTK, citing Tyden.cz, reports that the Czech government paid
CKZ844 million in wage compensations for debt-ridden companies in
2009, which is nearly 6 times more against 2008, when the state
paid CKZ150 million.

The report recalls that the state managed to recover in court only
5% or CZK41 million from debt-ridden firms in 2009 compared to 40%
recovered in 2008.

According to the report, the employment office, by law, can
provide wage compensation for up to 3 months to an employee whose
employer is insolvent.  The maximum compensation is CZK35,313,
which is 1.5 times the average wage in the previous year, the
report notes.

Citing the Cribis.cz database, the report says a total of 1,480
corporate bankruptcies were declared in 2009, a year-on-year rise
of 42%.


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


DEPFA FUNDING: Moody's Cuts Rating on Tier 1 Securities to 'Ca'
---------------------------------------------------------------
Moody's Investors Service downgraded the ratings of the Tier 1
preferred securities of Depfa Funding II, III and IV LP to Ca from
Caa1 and the Upper Tier-2 securities (profit participation rights,
or "Genussscheine") of Deutsche Pfandbriefbank AG (issued by
various predecessor institutions) to C from Caa2.  These ratings
carry a stable outlook.

The downgrade of the non-cumulative perpetual preferred securities
linked to the performance of Depfa Bank plc (rated A3 / E+)
reflects Moody's view of the risk of further three to five years
of coupon losses after no coupons were paid in 2009.

The rating on the profit participation rights reflects the large
portion of the principal that was written down (roughly 70%)
following the 2008 loss and Moody's expectation that there is
little, if any, chance of a write-back of principal before their
respective repayment dates in 2010, 2011, and 2012.  As a
principal write-back always has priority over coupon payments, no
interest payments are expected either.

Instruments Affected:

1.  Linked to the performance of Depfa Bank plc

* Depfa Funding II, EUR400 million, 6.50% perpetual preferred
  security (ISIN: XS0178243332)

* Depfa Funding III LP EUR300 million, 6.60% perpetual preferred
  security (ISIN: DE000A0E5U85)

* Depfa Funding IV LP EUR500 million, 6.65% perpetual preferred
  security (ISIN: XS0291655727)

2.  Genussscheine issued by Deutsche Pfandbriefbank AG or its
    predecessor institutions (Westfaelische Hypothekenbank AG and
    Wuerttembergische Hypothekenbank AG):

* DEM100 million profit participation certificat due 31.12.2009,
  repayment date 06/30/2010 (ISIN: DE0008127218)

* EUR13 million profit participation certificat due 31.12.2010,
  repayment date 30.06.2011 (ISIN: DE0008127226)

* EUR50 million profit participation certificat due 31.12.2011,
  repayment date 30.06.2012 (ISIN: DE0008124041)

The last rating action on members of HRE Group was on July 7,
2009, when Moody's withdrew the E+ bank financial strength rating
and A3/P-1 deposit ratings of DEPFA Deutsche Pfandbriefbank AG, in
light of its merger with its sister bank, Hypo Real Estate Bank
AG, to form Deutsche Pfandbriefbank AG (A3/Prime-1/E+, negative) .

Domiciled in Munich, Germany, Hypo Real Estate Group reported
total assets of EUR374 billion at September 30, 2009 and a
consolidated net loss for the nine months of EUR1.7 billion.


DEUTSCHE APOTHEKER: Moody's Cuts Pref. Securities Rating to Ba1
---------------------------------------------------------------
Moody's Investors Service downgraded its rating on Deutsche
Apotheker- und Aerztebank's hybrid securities, issued by Capital
Issuing GmbH, in line with its revised Guidelines for Rating Bank
Hybrids and Subordinated Debt published in November 2009.  The
rating of apoBank's non-cumulative preferred securities was thus
downgraded to Ba1 from Baa1, concluding the review for possible
downgrade initiated on November 18, 2009.  The rating outlook for
apoBank and its subsidiary (Capital Issuing GmbH) remains negative
and all other ratings on apoBank remain unchanged.

Prior to the global financial crisis, Moody's had incorporated
into its ratings an assumption that support provided by national
governments and central banks to shore up a troubled bank would,
to some extent, benefit the subordinated debt holders as well as
the senior creditors.  The systemic support for these instruments
has not been forthcoming in many cases.  The revised methodology
largely removes previous assumptions of systemic support,
resulting in the rating action.  In addition, the revised
methodology generally widens the notching on a hybrid's rating
that is based on the instrument's features.

                     Rating Action in Detail

The starting point in Moody's revised approach to rating hybrid
securities is the Adjusted Baseline Credit Assessment (Adjusted
BCA).  The Adjusted BCA reflects the bank's standalone credit
strength, including parental and/or cooperative support, if
applicable.  The Adjusted BCA excludes systemic support
expectations.

The Adjusted BCA for apoBank is Baa1 and includes a degree of
uplift to reflect cooperative support assumptions.

This instrument of apoBank is affected:

* EUR150 million non-cumulative preferred securities, downgraded
  to Ba1, which is three notches below the bank's Adjusted BCA,
  reflecting the deeply subordinated claim in liquidation and non-
  cumulative coupon skip mechanism.

* Issuing entity: Capital Issuing GmbH

* ISIN: DE0001365880

             Rating History And Moody's Methodologies

The last rating action on apoBank was on October 27, 2009, when
Moody's downgraded apoBank's BFSR to D from C and affirmed its
senior debt and deposit ratings at A2.  All ratings carry a
negative outlook.


EUROHYPO AG: Moody's Downgrades Rating on Medium Term Notes
-----------------------------------------------------------
Moody's Investors Service downgraded its rating for Tier III
instruments under the multiple-seniority Medium Term Notes program
of Eurohypo AG, in line with its revised Guidelines for Rating
Bank Hybrids and Subordinated Debt published in November 2009.
This Tier III MTN program rating was thus downgraded to Baa2 from
A2, which concludes the review for possible downgrade initiated on
November 18, 2009.  The rating outlook for Eurohypo remains
negative and all other ratings on Eurohypo remain unchanged.

Prior to the global financial crisis, Moody's had incorporated
into its ratings an assumption that support provided by national
governments and central banks to shore up a troubled bank would,
to some extent, benefit the subordinated debt holders as well as
the senior creditors.  The systemic support for these instruments
has not been forthcoming in many cases.  The revised methodology
largely removes previous assumptions of systemic support,
resulting in the rating action.  In addition, the revised
methodology generally widens the notching on a hybrid's rating
that is based on the instrument's features.

                     Rating Action in Detail

The starting point in Moody's revised approach to rating hybrid
securities is the Adjusted Baseline Credit Assessment (Adjusted
BCA).  The Adjusted BCA reflects the bank's standalone credit
strength, including parental and/or cooperative support, if
applicable.  The Adjusted BCA excludes systemic support
expectations.

The Adjusted BCA for Eurohypo is Ba1 and includes a degree of
uplift to reflect parental support assumptions.

This type of instrument of Eurohypo is affected (although no notes
are actually outstanding at present):

* Tier III Subordinated Notes issued under Eurohypo's Debt
  Issuance Programme, downgraded to Baa2, which is two notches
  above the bank's Adjusted BCA, reflecting its weak triggers
  which are breached only when regulatory capital ratios are at or
  below the minimum.

The last rating action on Eurohypo was on March 2, 2009, when
Moody's downgraded Eurohypo's BFSR to D from C and affirmed the A1
senior unsecured debt and deposit ratings and the A2 rating for
its subordinated debt with a change in the outlook to negative.
At the same time, Moody's downgraded various hybrid instruments of
different Commerzbank group entities based on an expected loss
calculation.


HEIDELBERGCEMENT AG: New Bonds Offer Limited Protection
-------------------------------------------------------
Moody's Investors Service said in an issuer comment that
HeidelbergCement AG's recently issued bonds' covenant structure
offer limited protection to investors against event risk.
HeidelbergCement in October 2009 and January 2010 sold EUR3.9
billion in bonds, with all series sharing substantially the same
covenant package.

The covenant structure is a hybrid of investment-grade and high-
yield protections.  Moody's considers the bonds' debt incurrence
covenant and change of control put option to provide the only
significant high-yield protection to investors against event risk
and deterioration in long-term bond value.  In addition to the
absence of a restricted payments covenant, the bonds do not have
stand-alone mergers, asset sales and leaseback provisions, which
is more typical of European issuers rated investment grade than
single-B rated issuers.  HeidelbergCement's unsecured long-term
rating is B1, with a positive outlook.

The debt incurrence covenant is stronger than many other recent
high-yield issuance in its well-defined add-backs to EBITDA, thus
limiting issuer discretion in increasing covenant cashflow that
could result in increased debt incurrence, and in its absence of a
provision allowing for debt re-classification under either the
coverage ratio test or basket exceptions.  Such provisions also
can result in increased leverage.

Moody's noted that the change of control's put option is
protective in its relatively low voting share acquisition
threshold of 30% in contrast to the market standard of 50% and in
its inclusion of a "public merger clause", which triggers in a
merger with a company with no controlling shareholders.

HeidelbergCement AG is the world's third-largest cement producer.
HC generated sales of EUR11.1 billion in 2009.  With the
acquisition of UK building materials producer Hanson plc in mid-
2007, HC is now the world's largest producer of aggregates and the
third-largest producer of ready-mixed concrete.


LANDESBANK BADEN: S&P Withdraws 'CCC+' Ratings on 4 CDO Tranches
----------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its credit ratings on
four of Landesbank Baden-Wuerttemberg's collateralized debt
obligation tranches.

The rating actions reflect S&P's view that S&P lack adequate
information to continue to provide opinions on the
creditworthiness of these four tranches.  This follows S&P's
withdrawal of the credit rating on the dependent party in the
related transactions (Landesbank Baden-Wuerttemberg; NR/--/NR).

                           Ratings List

                         Ratings Withdrawn

                  Landesbank Baden-Wuerttemberg
      EUR5 Million Schwarzwald Variable-Rate Schuldscheine
                        Series No. 6014263

                            Rating
                            ------
                   To                     From
                   --                     ----
                   NR                     CCC+

                  Landesbank Baden-Wuerttemberg
       EUR10 Million Schwarzwald Variable-Rate Schuldscheine
                        Series No. 6014624

                            Rating
                            ------
                   To                     From
                   --                     ----
                   NR                     CCC+

                  Landesbank Baden-Wuerttemberg
      EUR10 Million Schwarzwald Variable-Rate Schuldscheine
                        Series No. 6014265

                            Rating
                            ------
                   To                     From
                   --                     ----
                   NR                     CCC+

                  Landesbank Baden-Wuerttemberg
      EUR5 Million Schwarzwald Variable-Rate Schuldscheine
                        Series No. 6014266

                            Rating
                            ------
                   To                     From
                   --                     ----
                   NR                     CCC+

                          NR -- Not rated.


LANDESBANK HESSEN: Moody's Cuts Pref. Securities Rating to 'Ba1'
----------------------------------------------------------------
Moody's Investors Service downgraded its ratings on several hybrid
securities of Landesbank Hessen-Thueringen GZ (Helaba), in line
with its revised Guidelines for Rating Bank Hybrids and
Subordinated Debt published in November 2009.  The rating of
Helaba's non-cumulative preferred securities was thus downgraded
to Ba1 from A1 and that of one Genussschein, a junior subordinated
debt security with cumulative deferral features, to Baa2 from Aa3.
This concludes the review for possible downgrade initiated on 18
November 2009.  The rating outlook for Helaba and its subsidiaries
remains stable and all other ratings on Helaba and its
subsidiaries remain unchanged.

Prior to the global financial crisis, Moody's had incorporated
into its ratings an assumption that support provided by national
governments and central banks to shore up a troubled bank would,
to some extent, benefit the subordinated debt holders as well as
the senior creditors.  The systemic support for these instruments
has not been forthcoming in many cases.  The revised methodology
largely removes previous assumptions of systemic support,
resulting in the rating action.  In addition, the revised
methodology generally widens the notching on a hybrid's rating
that is based on the instrument's features.

                     Rating Action in Detail

The starting point in Moody's revised approach to rating hybrid
securities is the Adjusted Baseline Credit Assessment (Adjusted
BCA).  The Adjusted BCA reflects the bank's standalone credit
strength, including parental and/or cooperative support, if
applicable.  The Adjusted BCA excludes systemic support
expectations.

The Adjusted BCA for Helaba is A3 and includes a degree of uplift
reflecting cooperative support assumptions.

These instruments of Helaba are affected:

  -- Silent participations (non-cumulative preferred securities)
     were downgraded to Ba1, which is three notches below the
     Adjusted BCA reflecting their non-cumulative coupon skip
     mechanism that has a net loss trigger.

* Issuer: Main Capital Funding Limited Partnership (ISIN:
  DE000A0E4657)

* Issuer: Main Capital Funding II Limited Partnership (ISIN:
  DE000A0G18M4)

One EUR300 million Genussschein (junior subordinated debt) was
downgraded to Baa2, which was two notches below the Adjusted BCA
reflecting its cumulative coupon deferral feature with a balance
sheet trigger.

* Issuer: Landesbank Hessen-Thueringen GZ (ISIN: DE000HLB88H5)

                        Rating Withdrawal

Moody's withdrew the rating of this instrument: EUR20 million
Genussschein (junior subordinated debt) issued by Landesbank
Hessen-Thueringen GZ (ISIN DE000HLB88G7).

The Aa3 rating of this instrument has been withdrawn because
Moody's believes it lacks adequate information to maintain a
rating.

To Moody's best judgment, based on its new methodology, this
instrument would likely warrant either the same or a similar
rating as the junior subordinated debt instrument mentioned above.

The last rating action on Helaba was on November 19, 2009, when
Moody's affirmed Helaba's BFSR at C- and senior debt and deposit
ratings at Aa2.  All ratings carry a stable outlook.


WILHELM KARMANN: Germany to Probe Magna's Bid for Roof Business
---------------------------------------------------------------
Matthias Inverardi and Christiaan Hetzner at Reuters report that
German competition authorities intend to scrutinize thoroughly car
parts supplier Magna International Inc.'s planned purchase of the
cabrio roof business of rival Wilhelm Karmann GmbH.

"We will likely open a comprehensive examination," Reuters quoted
a spokesman for the Federal Cartel Office in Bonn, as saying.

Reuters notes that while this does not necessarily mean the
watchdog will extend the probe to a Phase II investigation, it
signals that conditions would be imposed on any such deal.

According to Reuters, the antitrust regulator had already signaled
Magna's plans posed concerns due to the high concentration of
providers for convertible car roofs, a complex business that
requires specialized know-how due to the increased safety risk to
cabrios from side collisions or rollovers.

As reported by the Troubled Company Reporter-Europe, Karmann filed
for bankruptcy protection in April as the worst slump in
automotive markets for decades left the manufacturer unable to pay
workers.

Headquartered in Osnabrueck, Wilhelm Karmann GmbH --
http://www.karmann.com/-- is the largest independent motor
vehicle manufacturing company in Germany.


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


GALVINS WHOLESALE: Hearing on Summary Judgment Order Adjourned
--------------------------------------------------------------
Barkeeper reports that Mr. Justice Kelly adjourned until March 4 a
Commercial Court hearing on Diageo Ireland's request for payment
of EUR3.2 million from Galvins Wholesale Limited's managing
director John Galvin on the back of a personal guarantee given
last May.

The report recalls Diageo sought the summary judgment order
against the managing director of GWL in the Commercial Court
recently.

GWL went into liquidation last November following a period in
examinership and Diageo has been seeking payment since December,
the report recounts.

The report notes Mr. Galvin's counsel Gary McCarthy stated that
the actual amount owed to Diageo should be half of the amount
claimed as it would be argued that Diageo's claim did not include
discounts and there were also issues around invoicing arrangements
which needed to be looked into.


STANTON ABS: S&P Cuts Ratings on Three Classes of Notes to 'D'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on Stanton
ABS I PLC's class A-1, A-2, A-3, and A-4 notes.  At the same time,
S&P affirmed its ratings on classes B-1 and B-2.

The rating actions follow interest payment defaults on the class
A-1, A-2, and A-3 nondeferrable notes, which occurred on the
transaction's February 2010 payment date.  On the payment date,
the issuer did not pay interest in full on the class A-1 notes,
and it paid no interest on classes A-2 and A-3.  Given the
interest payment default, S&P has lowered to 'D' its ratings on
these notes.

The transaction's class A-4, B-1, and B-2 deferrable notes S&P
understands currently are not in interest payment default.
However, in S&P's opinion these notes may be highly vulnerable to
non-payment of principal and interest.  S&P has therefore lowered
its ratings on the class A-4 notes to 'CC', and affirmed its 'CC'
ratings on classes B-1 and B-2.

On Feb. 2, 2010, the trustee published a notice stating that
security was being enforced over the transaction's collateral.
The enforcement followed an event of default in October 2009
triggered when the transaction's class A-3 overcollateralization
test ratio fell below 96%.

In enforcement, available proceeds in the collection accounts are
typically used to redeem the transaction's most senior notes at
par, plus accrued interest.  On the transaction's payment date in
February 2010, the trustee reported that approximately
EUR10.87 million of the class A-1 notes were redeemed, but
approximately EUR177.06 million of the notes remain outstanding.

                           Ratings List

                        Stanton ABS I PLC
            EUR309.5 Million Secured Floating-Rate Notes

                         Ratings Lowered

                                  Rating
                                  ------
             Class         To                   From
             -----         --                   ----
             A-1           D                    BB
             A-2           D                    B
             A-3           D                    CCC
             A-4           CC                   CCC-

                        Ratings Affirmed

                        Class         Rating
                        -----         ------
                        B-1           CC
                        B-2           CC


* IRELAND: Fine Gael Seeks Reduction of NAMA Size, Senator Says
---------------------------------------------------------------
Irish Examiner.com reports that Fine Gael is seeking a major
reduction in the size of the National Asset Management Agency in
order to "protect the Irish taxpayer" and prevent the creation of
a huge monopoly.

The report relates that in a new submission to the European
Commission, Senator Eugene Regan, Fine Gael's Senate justice
spokesman has outlined steps that can be taken by the Commission
to prevent the creation of a monopoly and serious distortion of
competition in the Irish property and banking markets.

According to the report, Mr. Regan has called for Anglo Irish Bank
and performing loans to be excluded from NAMA, which he says
should be subject to normal banking regulation with EU level
vetting of the pricing of property backed loans.  He said the
exclusion of performing loans and the state-owned Anglo Irish Bank
would cut the size of the NAMA exposure from an estimated EUR54
billion at present to EUR25 billion, the report notes.


* IRELAND: NAMA Set to Take Over Bad Loans in the Coming Weeks
--------------------------------------------------------------
Irish Examiner.com reports that it is expected that the transfer
of the first tranche of bad bank loans to the National Asset
Management Agency will happen shortly.

According to the report, up to EUR16 billion is due to move across
in the initial wave of loans and the Department of Finance
confirmed this will happen "in the coming weeks".

The report relates a department spokesman confirmed Thursday it
expected clearance for NAMA to be given by the European Commission
within a similar time frame, while the possibility of transfers
being completed by the end of the month has not been ruled out.

The department could not confirm the size of the transfers, the
report notes.


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


MARIELLA BURANI: Walter Burani Steps Down as Chairman
-----------------------------------------------------
Jerrold Colten and Armorel Kenna at Bloomberg News report that
Mariella Burani Fashion Group SpA said in a statement late
Wednesday that founder Walter Burani resigned from his position as
chairman of the company, effective immediately.

As reported by the Troubled Company Reporter-Europe on Feb. 16,
2010, Bloomberg News said Mariella Burani Fashion Group has
decided to seek for bankruptcy after it didn't receive funds to
cover EUR70 million (US$95 million) in losses.  Bloomberg said 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.

Citing Bloomberg News, the Troubled Company Reporter-Europe
reported on Feb. 17, 2010, that Mariella Burani 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, Ms. 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".

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.


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


* ROMANIA: Corporate Insolvencies Reach Over 2000 in January
------------------------------------------------------------
Financiarul.ro, citing the National Trade Registry Office (ONRC),
reports that more than 2,000 companies entered insolvency in the
first month of 2010.

According to the report, most insolvent companies in January were
trade companies -- 40% of the total, and 15% each for the building
and the processing industry, and 5% were real estate companies.

The report says 18,421 companies were declared insolvent in 2009.
The number of companies that entered insolvency in 2009 grew by
25% compared to 14,724 insolvent companies in 2008, the report
discloses.

About one million companies were operational in Romania at the end
of 2009, the report notes.


* ROMANIA: Wave of Insolvencies Hinder Resumption of Lending
------------------------------------------------------------
Ziarul Financiar reports that Sergiu Oprescu, executive president
of Alpha Bank, one of the large banks on the Romanian market, said
the wave of insolvencies, some of which are voluntary, is
generating such high costs for banks that it hinders the National
Bank's effort to encourage the resumption of lending.

"Interest rates are on a downward trend, which should lead to a
rise in lending, but on the other hand there is a rise in the
number of voluntary insolvencies, which shakes the banks'
confidence to grant loans," the report quoted Mr. Oprescu as
saying.

The report relates bankers complained as early as last year that
filing for insolvency had become a "national pastime" and asked
repeatedly for a national debate on this subject.  According to
the report, Mr. Oprescu said the legislative changes made lately
generate additional problems to banks.  The report recalls that
last year, regulations were modified, preventing banks and leasing
companies from executing guarantees of bad payers based alone on
the credit contract.  They now also need a judge's approval, the
report notes.

Under the circumstances, bankers feel that, due to clients
refusing to repay loans or hiding from creditors behind
insolvency, the other clients stand to suffer because the bank
needs to recoup its costs, so new loans cannot become
significantly cheaper, the report states.


* ROMANIA: Food Retailers Face More Bankruptcies This Year
----------------------------------------------------------
Ziarul Financiar, citing George Frincu, president of bakery
producer Vel Pitar, reports that increasingly more producers in
the food industry in Romania will become insolvent this year,
after food retail chains were the most affected in 2009.

"I think 2010 will be more difficult than 2009, because there will
be more bankruptcies than last year.  One can feel this because
suppliers no longer accept longer payment deadlines, and
increasingly more producers are putting their production
facilities up for sale.  In addition, there are many companies,
which, due to a lack of liquidity, temporarily suspend
production," the report quoted Mr. Frincu as saying.


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


EVRAZ GROUP: S&P Cuts Long-Term Corporate Credit Rating to 'B'
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
term corporate credit, bank loan, and senior unsecured debt
ratings on Russia-based international steel producer Evraz Group
S.A. and subsidiary LLC Sibmetinvest to 'B' from 'B+'.  At the
same time, the Russia national scale rating on Evraz was lowered
to 'ruA-' from 'ruA'.  In addition, S&P removed all ratings from
CreditWatch, where they were placed with negative implications on
Sept. 9, 2009.  The outlook is stable.

"The downgrade reflects S&P's view that Evraz faces a period of
weak operating results for the next couple of years due to the
sharp downturn in the steel industry," said Standard & Poor's
credit analyst Alex Herbert.  "Together with limited cash flow
generation and a legacy of substantial debt from previous
acquisitions, S&P foresee leverage remaining high.  Although S&P
believes that the group's operating performance will gradually
improve from a low level, in its credit scenario S&P does not
envisage credit metrics being consistent with the previous 'B+'
rating, including a ratio of funds from operations to adjusted
debt of about 15%."

In S&P's view, Evraz' profits and cash flows should slowly recover
with a gradual improvement in steel market conditions.  However,
the global economy has not yet established a sustainable path to
growth, which leads to S&P's cautious view of future steel volumes
and prices.

Downward pressure on the ratings will likely occur if the group
faces challenges in refinancing its short-term debt or if headroom
under financial covenants becomes tight.  Downward pressure would
also occur if S&P were to consider the group unable to achieve
satisfactory credit metrics in 2010, including a ratio of FFO to
adjusted debt of about 10%.  Negative free operating cash flow
could also put downward pressure on the ratings.

Upward rating potential could occur if Evraz were able to address
its liquidity and covenant pressures and show a sustainable
improvement in credit metrics.  S&P believes that such an
improvement would be driven by a stronger operating environment,
together with further corrective actions by management.


TRANSCONTAINER JSC: Moody's Confirms 'Ba2' Corporate Family Rating
------------------------------------------------------------------
Moody's Investors Service has confirmed the Ba2 corporate family
rating of JSC TransContainer, a Russian rail-based container
transportation business.  The outlook is negative.  At the same
time, Moody's Interfax Rating Agency, which is majority owned by
Moody's, has confirmed the company's Aa2.ru national scale credit
rating.  This concludes the review for possible downgrade that was
initiated on August 14, 2009.

The rating confirmation acknowledges that TransContainer has
finalized arrangements to address its refunding risk over the next
12 months and its management has stated a shift towards a more
conservative financial policy, with the company's investments to
be capped by its operating cash flow until the market shows a
sustainable recovery.  However, the negative outlook reflects
estimated end-2009 key financial metrics that are weak for a
Ba2/Aa2.ru-rated business in Russia and have minimal room, if any,
in the current rating category for further deterioration.  Moody's
indicates that TransContainer's ratings continue to incorporate an
approximately one-notch support derived from its majority
ownership by Russian Railways (rated Baa1/STA).  The latter plans
to maintain control over TransContainer at least in the medium
term.

TransContainer's ratings are supported by the company's leading
position in the Russian rail-based container transportation
market, the expectation that the market will at least stabilize in
the short term, TransContainer's introduced set of measures to
control cost and improve margins, its commitment to the
conservative financial policy and Moody's expectation of the
company's having its liquidity profile comforted based on the
signed agreements with banks.  However, given the market reduction
in 2009 by 20.9%, EBITA margins, interest coverage and leverage
ratios have materially deteriorated compared to previous
expectations incorporated at Moody's first rating assignment in
February 2009.  With no significant market rebound anticipated up
to the end of 2010, the metrics, except for leverage, are unlikely
to return to the previously expected levels fully in line with the
Ba2 rating category in the next 12-18 months.  However, given a
long-term growth potential of the market and the company's
intention to finance investments from its operating cash flow in
the weak operating environment, Moody's would see TransContainer
maintain its current ratings, if its key metrics were to
consistently trend towards the previous expectations, with these
intermediate guidelines to be met during the next 12-18 months:
EBITA margin (based on revenue net of through-rate service cost)
in the range of 15-20%, EBITA/Interest above 2x, Debt/EBITDA
materially below 2x.

Moody's positively notes that TransContainter has signed
arrangements with TransCreditBank, which is also a member of the
Russian Railways group, to address a potential pressure on its
liquidity from March 2010 put option under its RUB3 billion bond.
The company has also signed a short-term backup facility with a
foreign bank to additionally support its ability to meet the
potential liquidity call.  To maintain the ratings at the current
level, Moody's expects TransContainer to fully comfort its
liquidity profile in March 2010, with no material short-term debt
maturities to remain outstanding.

A stabilization of the negative outlook could take place, if the
market recovery were to materialize earlier than expected with an
evidence of TransContainer's stronger-than-anticipated performance
and financial metrics.  A deterioration of the company's
performance and metrics in 2010-2011 beyond the above intermediate
guidelines or adverse change in the financial policy and liquidity
management could result in a downgrade of the ratings.  Moody's
would also consider a downgrade of the ratings, should there be
any signs of a weakening support from Russian Railways.

The previous rating action on TransContainer was implemented on 14
August 2009, when TransContainer's ratings were placed on review
for possible downgrade.

TransContainer's ratings were assigned by evaluating factors
Moody's believe relevant to its credit profile, including i) the
business risk and market position within key business segments;
ii) management's strategy, iii) the financial profile, and iv) the
2009 performance assessment and projections over the near to
intermediate term.  These attributes were compared against other
companies both within and outside of TransContainer's key business
segments and TransContainer's ratings are believed to be
comparable to those of other issuers of similar credit risk.

Headquartered in Moscow, TransContainer, an 85%-owned subsidiary
of Russian Railways, is Russia's dominant rail-based container
transportation business with RUB20.5 billion (US$823.9 million) in
revenues in 2008.  Russian Railways plans to sell a 35% minus one
share in TransContainer at an IPO in late 2010 or early 2011, thus
decreasing its ownership to 50% plus one share.


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


NADRA BANK: NBU Extends Temporary Administration Until Next Year
----------------------------------------------------------------
Pavel Korduban at Eurasia Daily Monitor reports that the National
Bank of Ukraine has rejected the government plan to liquidate
Nadra, the largest among Ukraine's ailing banks.

According to the report, the only potential investor interested in
Nadra, energy and chemical tycoon Dmytro Firtash, failed to
persuade the NBU that he has enough cash to recapitalize Nadra in
order that the bank can meet its obligations.  The NBU extended
the term of its temporary administration of Nadra, by another
year, until February 11, 2011, the report discloses.

The report recalls Ukrainian Prime Minister Yulia Tymoshenko
thwarted Mr. Firtash's intention to purchase Nadra in late 2008,
claiming that his deal with the NBU would not be transparent.
Mr. Firtash is the co-owner of RosUkrEnergo, an intermediary which
was banished from the gas trade between Ukraine and Russia by
Ms. Tymoshenko in January 2009, the report notes.  The report
relates Ms. Tymoshenko's opponents said she opposed Mr. Firtash's
plan on Nadra because he was a supporter of her political rival
Viktor Yanukovych.

Nadra KB VAT (Commercial Bank Nadra OJSC) --
http://www.nadra.com.ua/-- is a Ukraine-based nation-wide
universal commercial bank.  It provides financial services to
three client segments: individuals, small and medium-sized
enterprises and corporate clients.  Its customer services platform
comprises a network of branches located in all Ukrainian major
cities, numerous Automated Teller Machines (ATM) and Point of Sale
terminals (POS), as well as an electronic contact center.  Nadra
KB VAT has in its offer micro-loans, credit lines, overdrafts,
personal and corporate credit and debit cards, current accounts,
time deposits, cash management services, deposit taking, cash
management and account services, corporate cards and securities
transactions.


* UKRAINE: Bankruptcy Not a Large-Scale Phenomenon, Expert Says
---------------------------------------------------------------
Interfax-Ukraine reports that Anatoliy Rodzynsky, the director
general of a bankruptcy consulting center, said that bankruptcy in
Ukraine is not a large-scale phenomenon, but the situation could
change drastically if banks do not offer borrowers acceptable
restructuring conditions.

"Of course, bankers could be scared by the mass bankruptcy of
their clients, but as we see from the statistics, a mere 1,172
people have utilized their right to declare bankruptcy.
Bankruptcy is not a large-scale phenomenon in Ukraine so far.
However, if the banks do not stretch out a hand to their clients
and do not start compromising, the situation could change
drastically, as over 2.5 million Ukrainian entrepreneurs have the
right to declare bankruptcy," the report quoted Mr. Rodzynsky as
saying during an Internet conference.


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


BLOCKBUSTER INC: In Talks with UK Landlords to Cut Store Numbers
----------------------------------------------------------------
Daniel Thomas, Anousha Sakoui and Esther Bintliff at The Financial
Times report that Blockbuster Inc. has been working with KPMG on
negotiations with more than 600 landlords as part of its plans to
cut costs.

According to the FT, the company has been in talks with its UK
landlords to reduce store numbers and costs through rent
reductions.

The FT relates the company has come under competition from
Internet-based rivals, including postal DVD rental services such
as Lovefilm.com, which has led to analysts questioning the need
for large networks of regional stores.

Blockbuster has considered several lease restructuring options
across its national chain of shops, the FT says.  The chain has
about 630 stores in the UK, its second-largest market, the FT
discloses.

KPMG has also advised Blockbuster in removing the guarantees from
UK leases that were in place from its split from Viacom, the FT
notes.

The use of a company voluntary agreement, an insolvency procedure
that allows a company to negotiate a restructuring of its
unsecured debts, such as those with landlords or suppliers, is
considered to be less likely, the FT states.

Dallas-based Blockbuster Inc. (NYSE: BBI, BBI.B) is a global
provider of rental and retail movie and game entertainment.  The
Company provides its customers with convenient access to media
entertainment anywhere and any way they want it -- whether in-
store, by-mail, through vending and kiosks or digital download.
With a highly recognized brand name and a library of over 125,000
movie and game titles, Blockbuster leverages its multi-channel
presence to further build upon its leadership position in the
media entertainment industry and to best serve the two million
daily global customers and over 50 million annual global
customers.  The Company may be accessed worldwide at
http://www.blockbuster.com/

As reported by the Troubled Company Reporter, Sept. 18, 2009,
Standard & Poor's Ratings Services raised its corporate credit
rating on Blockbuster to 'B-' from 'CCC'.  The outlook is stable.

The TCR on Oct. 6, 2009, said Moody's Investors Service upgraded
Blockbuster's long term ratings, including its probability of
default rating to 'Caa1' from 'Caa3' and its corporate family
rating to 'Caa1' from 'Caa2'.  The rating outlook is stable.


BRITISH AIRWAYS: Strike Vote Won't End Union Negotiations
---------------------------------------------------------
Steven Rothwell at Bloomberg News reports that the Unite union
said labor leaders at British Airways Plc will seek fresh talks on
cabin-crew staffing levels even if the airline's employees approve
a strike.

According to Bloomberg, Unite General Secretary Tony Woodley said
that while a walkout may be called as early as March 1 in the
event a majority of British Airways' 12,000 flight attendants back
a strike, the union won't close the door on negotiations.  The
union will publish the result of a month-long vote on Feb. 22,
Bloomberg notes.

As reported by the Troubled Company Reporter-Europe, The Times
said the Unite, which represents about 13,000 BA cabin crew, is
balloting members on possible industrial action in a dispute over
changes to working practice and pay cuts.  According to The Times,
if staff members vote in favor, BA could face strikes next month
and over Easter.

                      About British Airways

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

                           *     *     *

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

Moody's said the rating action reflects the continued weakening in
profitability in the first half of FY2010 (to September 2009),
with an operating loss of GBP111 million reported versus a profit
of GBP140 million a year earlier (post restructuring charges), and
Moody's view that losses in FY2010 will likely be higher than in
FY2009.  This comes in spite of lower operating costs, notably for
fuel, as demand in the industry remains very depressed, while the
company has successfully reduced its employee and selling costs.
Reported net debt remained constant during the period, partly
benefiting from a positive exchange rate impact, although Moody's
debt metrics also incorporate the full value of the convertible
notes issued in August 2009.


FRANK GALLIERS: In Liquidation; Owes Nearly GBP10 Billion
---------------------------------------------------------
BBC News reports that Frank Galliers Ltd. has gone into
liquidation with nearly GBP10 million in debts.

According to the report, a creditors meeting at Telford on
Wednesday revealed Frank Galliers owed a bank about GBP4 million
and the same amount to about 450 others.

The accountancy firm BDO is handling the liquidation, the report
notes.  The report relates business partners Jo Wright and Malcolm
Cohen were appointed joint liquidators.

Frank Galliers Ltd. is a Shropshire-based building firm.  The
company employs 73 people.


GLASSHOUSE RESTAURANT: Put Into Liquidation by Owner
----------------------------------------------------
The Herald reports that Scottish chef Scottish chef Steve Adair
has put his Glasshouse restaurant in East Lothian into liquidation
owing creditors GBP147,000.

The report relates Adair, former head chef at National Museum of
Scotland and National Galleries of Scotland, has called in Begbies
Traynor as provisional liquidators.

According to the report, Ken Pattullo at Begbies says he hopes to
find a new tenant for Eskmills who will buy the business' assets.


HIGHLAND AIRWAYS: In Exclusive Takeover Talks with Unnamed Bidder
-----------------------------------------------------------------
The Scotsman reports that Highland Airways on Thursday confirmed
it was in exclusive talks with an unnamed bidder over a takeover.

"Since 25 January, Highland Airways has been in discussions with a
potential purchaser of the entire share capital of the company,"
the Scotsman quoted the airline as saying.  "More recently we have
signed an exclusivity agreement with this party and they are
currently negotiating with the key stakeholders and creditors in
the business in order to ensure its future viability."

Citing the Scotsman, the Troubled Company Reporter-Europe reported
on Feb. 16, 2010, that Highland Airways is close to a refinancing
deal with Clydesdale Bank and Highlands and Islands Enterprise.
The Scotsman disclosed the airline, which was forced briefly to
suspend bookings in January before reactivating its online
reservation system earlier this month, is expected to announce a
rescue package over the next fortnight.  It is locked in talks
with its lender, Clydesdale, HIE and a new investor as it seeks to
secure its long-term future, the Scotsman said.  The freezing
weather at the turn of the year heightened the airline's
difficulties as it prevented a number of services from taking off,
the Scotland noted.  According to the Scotsman, Basil O'Fee,
commercial director at Highland Airways confirmed that both
Clydesdale and HIE were involved in a new financial package, but
he added: "It'll probably be another couple of weeks before
anything is signed off."

Highland Airways, which operates as a lifeline service to many of
the Scottish isles, was founded in 1991 as Alba Air.


LADBROKES PLC: Fitch Affirms Issuer Default Rating at 'BB+'
-----------------------------------------------------------
Fitch Ratings has affirmed UK-based betting operator Ladbrokes
PLC's Long-term Issuer Default Rating and senior unsecured ratings
at 'BB+' respectively while affirming Ladbrokes's Short-term IDR
at 'B'.  The Outlook on the Long-term IDR is Negative.

The agency has also assigned an expected senior unsecured rating
of 'BB+' to Ladbrokes Group Finance's seven year bond issue
launched.  The final rating is contingent upon the receipt of
final documents conforming to information already received.

"Ladbrokes's FY09 results released incorporate the effect of a
succession of adverse events which occurred during the year,
including a more competitive business environment in the UK retail
and European internet gaming industries, lower than anticipated
resilience in betting spending and one-off adverse sporting
results to bookmakers," said Giulio Lombardi, Senior Director in
Fitch's European Retail, Leisure and Consumer Products Group.

Fitch expects Ladbrokes' FY10 results to benefit from a reversal
of adverse sporting results, in addition to receiving an at least
partial uplift in betting spending due to the 2010 football World
Cup.  Results are also likely to benefit from remedial actions
already announced by management in terms of cost reductions and
enhancements to the gaming machines estate, lower interest charges
resulting from the October 2009 rights issue, the cut to the 2009
final dividend, and the possible proceeds from the sale of
Ladbrokes' small Italian operations.

However, Fitch has maintained a Negative Outlook on Ladbrokes's
rating as the agency remains concerned about the weak prospects
for a recovery of UK consumer spending, continuing competition and
increased consolidation risks in the internet gaming space, as
well as potentially compressed post-dividend free cash flow in the
longer term.

Despite the GBP275 million equity issue finalized in October,
FYE09 net lease-adjusted leverage was unchanged at 4.1x from
FYE08's level.  Due to the persisting lack of visibility over the
stabilization of the gaming industry's credit profile, the agency
does not view Ladbrokes's FYE09 leverage as compatible with its
Long-term IDR of 'BB+'.  However, Fitch has affirmed the rating as
the agency is factoring in the expectation that Ladbrokes's FY10
EBITDA improvement and debt reduction should enable it to reduce
leverage towards a more comfortable level of under 3.5x.

Fitch notes that lease-adjusted leverage (defined as net debt
adjusted by an 8x multiple of annual lease charges, divided by
Operating EBITDAR) of 3.5x would correspond to a net debt/EBITDA
ratio (used by Ladbrokes's management) of well under the 3.0x
maximum level incorporated in the company's financial policies.

The bond issue launched benefits from a guarantee from Ladbrokes
PLC and is ranked equally with all other debt instruments of the
group.  The large majority of the group's debt is incurred by
Ladbrokes Group Finance plc with a guarantee from Ladbrokes PLC.
Proceeds from the prospective bond issue will be principally used
to tender for the existing GBP250 million 7.125% 2012 notes, and
will enable the company to lengthen its debt maturity profile.


LADBROKES GROUP: S&P Assigns 'BB' Rating on GBP250 Mil. Bonds
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it has assigned its
'BB' long-term issue rating to the proposed up to GBP250 million
unsecured bonds to be issued by Ladbrokes Group Finance PLC, a
fully owned finance subsidiary of U.K.-based gaming group
Ladbrokes PLC (BB/Stable/--).  At the same time, Standard & Poor's
has assigned a recovery rating of '3' to this debt, reflecting its
expectations of meaningful (50%-70%) recovery for creditors in the
event of a payment default.  The issue rating is the same as the
corporate credit rating on Ladbrokes.

Ladbrokes is proposing to voluntarily exchange up to
GBP250 million new unsecured bonds maturing in 2017 for its
existing GBP250 million unsecured bonds due 2012.  If the 2012
bonds are not fully tendered, the company will issue an amount
equivalent to that tendered plus up to GBP50 million, so that the
total issuance does not exceed GBP250 million.  S&P understands
that this proposed voluntary bond exchange offer will only proceed
if existing 2012 bondholders tender a minimum of GBP100 million
worth of bonds, although S&P notes that Ladbrokes has the right to
change the minimum acceptance amount.  S&P would withdraw the
rating on the new debt in the event of noncompletion of the offer.

The issue ratings on the existing instruments issued under
Ladbrokes Group Finance PLC's GBP2.0 billion unsecured Euro
Medium-Term Note program -- the Hong Kong dollar 200 million
maturing in 2010 and the GBP250 million 2012 bonds -- are
unchanged at 'BB', in line with the corporate credit rating on
Ladbrokes.  The recovery rating on these issues is also '3',
indicating S&P's expectation of meaningful (50%-70%) recovery in
the event of payment default.

S&P understands that like the 2010 and 2012 bonds, the proposed
2017 bonds will be an unsecured obligation of Ladbrokes Group
Finance PLC and will be guaranteed by Ladbrokes.

For the purpose of its recovery analysis, S&P has assumed the pari
passu ranking of the 2010, 2012, and proposed 2017 bonds among
themselves and with the aggregate GBP885 million of committed
credit facilities maturing in 2011 and 2013 (not rated) taken on
by Ladbrokes Group Finance PLC and guaranteed by Ladbrokes.  S&P
has based the recovery ratings on the bonds on the current capital
structure, which could change materially, however, on the path to
default.

"Any change to the Ladbroke's financial policy or capital
structure -- such as the raising of additional debt that ranks
either pari passu or ahead of the unsecured bonds -- could
significantly affect S&P's hypothetical default scenario and
waterfall analysis, and thereby impair recovery prospects for
bondholders," said Standard & Poor's recovery analyst Florence
Devevey.

In addition, S&P sees some risk that Ladbrokes might have to grant
security or priority ranking to the lenders of the existing
GBP885 million of credit facilities (which carry maintenance
covenants on leverage and interest coverage, to be tested
semiannually) -- enhancing their position in the post-default
waterfall -- in exchange, for example, for a covenant waiver.
Such a scenario could significantly weaken the recovery prospects
for bondholders.

The proposed bonds have financial covenants, in particular a 2.75x
fixed-charge coverage ratio limit for additional debt incurrence.
However, this covenant will not prevent Ladbrokes from raising, in
particular, up to GBP1.1 billion of credit facilities (excluding
overdraft facilities), up to GBP30 million of overdraft
facilities, up to GBP50 million of finance leases, and a general
financial debt basket of up to GBP100 million.  S&P notes that the
documentation for the proposed 2017 bonds includes a change of
control clause, which was not the case for the 2010 and 2012
bonds.

                        Recovery Analysis

S&P has valued Ladbrokes as a going concern, given what S&P see as
its "satisfactory" business risk profile, strong market position,
well-known brand name, and established town center gaming
locations, as well as the business' cash-generative
characteristics.  In addition, the U.K. regulatory framework
creates high barriers to entry.

S&P's hypothetical default scenario is triggered by an
intensification of the current general economic slowdown, with
rising unemployment reducing consumers' discretionary spending and
retail earnings, resulting in a potential inability for Ladbrokes
to refinance the bank facilities maturing in 2013.

At the hypothetical point of default in 2013, S&P has calculated
Ladbrokes' stressed enterprise value to be about GBP1 billion.
This is based on an estimated stressed EBITDA of about
GBP155 million -- which S&P has calculated as the sum of the
company's fixed charges (stressed interest charges and maintenance
capital expenditures) -- and a stressed enterprise value-to-EBITDA
multiple of 6.2x.  This stressed multiple is the same as the one
S&P used for bookmaking peer William Hill PLC (BB+/Stable/--).

After deducting priority debt facilities--mainly enforcement costs
-- and assuming the pari passu ranking of the bonds among
themselves and with the fully drawn bank facilities, S&P has
calculated recovery prospects to be just marginally higher than
70% for the pari passu unsecured instruments at default.  However,
S&P has assigned a recovery rating of '3' to all of the bonds
(recovery prospects in the 50%-70% range) given the potential for
additional debt to be raised that could rank either pari passu or
ahead of the rated instruments.


LVG LIMITED: Lack of Funding & Investment Prompts Administration
----------------------------------------------------------------
Andrew Stoneman and Paul Clark, partners at MCR, were appointed
joint administrators of LVG Limited on February 16, 2010.  It is
one of the UK's largest driving instructor training colleges and
third largest driving school.

The Company's head office is located in Brighton, with its
principal activities carried out under the RED Brand.  This
includes RED Instructor Training, RED Driving School and RED Fleet
Training.  It employees 400 staff with 250 based in the RED
Instructor Training division.

Andrew Stoneman, Partner, MCR, stated: "At present the Company is
trading as normal while a sale of the business and assets as a
going concern are pursued.  We are confident a buyer will be
secured as the most recent financial reports indicate the business
has been quite a healthy and profitable operation.  It only
entered administration due to a lack of funding and investment."

The Company offers accountancy services to driving instructors
under the FBTC brand and publishes ADI News, a monthly Driving
Instructor industry magazine.  A sales memorandum has been
produced and any interested parties should contact Charles Walder
at cwalder@mcr.uk.com as a matter of urgency.


MARRACHE & CO: PwC Gibraltar Appointed Provisional Liquidators
--------------------------------------------------------------
Dominique Searle at Gibraltar Chronicle reports that
Adrian Hyde, a UK accountant and Edgar Lavarello a partner at
PricewaterhouseCoopers Gibraltar, have been appointed as the joint
provisional liquidators to law firm Marrache & Co.

The report relates the move came following an application to the
Supreme Court of Gibraltar by Triay & Triay, the lawyers acting
for a major Irish client seeking to recover money from the firm.

According to the report, the Irish party asserts more than
GBP10 million in claims.

The report says two Marrache brothers, Marrache & Co.'s finance
director Solomon and the firm's senior partner Benjamin, were
arrested earlier last week and charged with falsifying documents
to conceal GBP1.8 million of client money.

Marrache & Co. is an international corporate law firm based in
Gibraltar.


PORTSMOUTH FOOTBALL: Wants to Sell Players to Raise Funds
---------------------------------------------------------
Ben Smith at Times Online reports that Portsmouth Football Club
has asked the Premier League for permission to sell its players
outside of the transfer window.

According to Times Online, Portsmouth will become the first
Premier League club to go into administration unless they can find
new investment or an unexpected injection of cash to pay off a
GBP12.1 million debt to Revenue & Customs.

The club's winding-up petition will be heard at the High Court on
a provisional date of March 1, Times Online discloses.

Times Online relates with no news of substantial new investment,
or a new buyer, Portsmouth have confirmed they are exploring the
possibility of raising funds by selling off a number of the squad
before the end of the season.  In order to do this Portsmouth will
require permission from the Premier League, the FA and Fifa, Times
Online says.

Times Online recalls Portsmouth on Wednesday delivered their
statement of affairs to the Companies Court shortly before the
4:00 p.m. deadline.  According to Times Online, the statement,
prepared by Vantis PLC, will only be made public if the hearing
proceeds on March 1.

The club's total debts are understood to be about GBP60 million
and rising, with GBP1.75 million in wages due to players and staff
on the Friday before the hearing, Times Online states.

Portsmouth Football Club Ltd. -- http://www.portsmouthfc.co.uk/--
operates Portsmouth FC, a professional soccer team that plays in
the English Premier League.  Established in 1898, the club boasts
two FA Cups, its last in 2008, and two first division
championships.  Portsmouth FC's home ground is at Fratton Park;
the football team is known to supporters as Pompey.  Dubai
businessman Sulaiman Al-Fahim purchased the club from Alexandre
Gaydamak in 2009.  A French businessman of Russian decent,
Gaydamak had controlled Portsmouth Football Club since 2006.


PRESBYTERIAN MUTUAL: MPs Blame Regulatory Failure for Collapse
--------------------------------------------------------------
A report by The Treasury Select Committee says that regulatory
failure contributed to the collapse of the Presbyterian Mutual
Society, Roland Gribben at Telegraph reports.

The MPs are also highly critical about the lack of action from the
Northern Ireland Department of Enterprise, Trade and Investment,
the Telegraph discloses.

The Telegraph relates the committee said it was surprised and
concerned that the department had access to all the relevant
information about the society but failed to take any action to
prevent it from failing.

The Telegraph notes the committee says the government and Northern
Ireland Executive must move quickly to help savers in urgent need
of funds for medical treatment and others struggling to "meet the
necessities of daily life."

The Telegraph recalls a run on deposits in October 2008 pushed the
society into administration.  At the time depositors had GBP200
million in savings and GBP100 million in shares but so far the
administrator has been able to generate only GBP20 million from
rents and loan repayments for distribution, the Telegraph
recounts.

Presbyterian Mutual Society is a Belfast-based mutual society with
around 9,500 investors, most of whom are members of the
Presbyterian Church in Ireland.


PRINT FACTORY: In Administration; Sells BPO Division
-----------------------------------------------------
Allan Graham and David Standish from KPMG Restructuring were
appointed Joint Administrators of The Print Factory London (1991)
Limited, DSR Group Limited, Reelform 2007 Limited on Wednesday
February 17, 2010.

The business has two divisions known as "BPO" (Business Process
Outsourcing) and "Manuco" (The print business).

Shortly after appointment, the Joint Administrators, in order to
protect the value in the business contracts, sold the trade and
assets of the Business Process Outsourcing (BPO) division to
Access Plus Management Services Ltd., a subsidiary of Office 2
Office Plc.

The print business of The Print Factory and Reelform based in
Northampton and Derby will continue to trade in administration
servicing the BPO business together with other contracts, whilst
the Joint Administrators seek a buyer.  No redundancies have been
made since the appointment.

Joint Administrator David Standish said, "The Print Factory Group
has a long established history and a proven ability to service a
blue chip client base.  We have already, in the first few hours of
our appointment, had a number of expressions of interest in
purchasing the print business.  We are confident that these
expressions will lead to firm offers to acquire the business."

Anyone wishing to express an interest should contact Louise Ingham
at KPMG on 0207 3118582 by no later than Friday, February 26.


REXAM PLC: Posts GBP59 Million Full-Year Loss
---------------------------------------------
Michael Kavanagh at The Financial Times reports that Rexam Plc
swung from a pre-tax profit of GBP240 million to a full-year loss
of GBP59 million after absorbing GBP313 million of exceptional
costs.

According to the FT, the company, which was forced into a GBP351
million (US$550 million) rights issue in July 2009 to protect the
investment-grade status of its debt, saw like-for-like sales fall
7%.

The company's revenue increased from GBP4.62 billion to GBP4.87
billion although underlying profits fell from GBP328 million to
GBP285 million, the FT discloses.

Rexam ended the period with net debt of GBP1.8 billion, down from
GBP2.6 billion, the FT says.

Graham Chipchase, promoted to chief executive following the
departure of predecessor Leslie Van de Walle in January, said
Rexam would continue to concentrate on the "three Cs" of cash
generation, cost control and improved return on capital as it
awaited a recovery of consumer confidence in its key markets, the
Ft notes.

Headquartered in London, Rexam PLC -- http://www.rexam.com/-- is
a global consumer packaging company and a beverage can-maker.  The
Company offers a range of packaging products and solutions for
different industries, using different materials and technologies.
The Company's global operations focus on beverage packaging, as
well as plastic packaging solutions.  Rexam makes beverage cans
used for an array of beverages, including beer, carbonated soft
drinks, juices, sports and energy drinks, water, wine and spirit
mixers.  Its plastic packaging business is focused primarily on
segments, such as pharmaceutical packaging, closures for beverages
and personal care applications and packaging for cosmetics, home
and personal care products, as well as food.  Its products include
spray samplers, lipstick and mascara cases, compacts, closures for
fragrances, lotions and beverages, fine mist and foam pumps, food
containers and drug delivery devices.

                           *     *     *

Rexam Plc continues to carry a 'Ba2' junior subordinated debt
rating from Moody's Investors Service with stable outlook.


SPEEDWELL REINFORCEMENTS: In Administration; 50-70 Jobs Affected
----------------------------------------------------------------
Sheffield Telegraph reports that Speedwell Reinforcements Ltd. has
gone into administration, resulting in the loss of dozens of jobs.

The firm is understood to have employed between 50 and 70 staff,
the report says.  The report recalls that managing director Terry
Moorwood last year sold a majority stake in the company to
Sheffield entrepreneur Andrew Eyre.

The report notes accountants the P&A Partnership, who have been
appointed administrators for Speedwell, were unavailable for
comment.

Sheffield-based Speedwell Reinforcements Ltd. --
http://www.speedwellreinforcement.co.uk/-- manufactures steel
reinforcement mesh and prefabricated cages.


* UK: CVAs Not Suitable for All Companies, KPMG Says
----------------------------------------------------
Erikka Askeland at Scotland On Sunday reports that companies have
been warned not to rely on new insolvency legislation to rescue
them when they are about to go bust.

According to the report, the government is planning to extend the
time companies can remain protected from creditors while
negotiating a company voluntary agreement which is a "debtor-
friendly process" similar to the US-style "chapter 11" where
companies can continue  trading while being protected from
creditors.

"This would mean that going into administration is not the only
option when seeking protection from creditors and could see the
use of CVAs increase significantly," the report quoted Blair
Nimmo, head of restructuring at KPMG in Scotland, as saying. "It
would certainly bring about a shift in the 'center of gravity' of
corporate rescue and would see CVAs become a key restructuring
option for distressed UK companies."

The report notes Mr. Nimmo said the CVas will not be suitable for
all companies, particularly those that fail to persuade creditors
they will stand by their agreement.

"People should not go away thinking that liquidation, receivership
and administration no longer exist and suddenly we have a panacea
for all ills.  That is not the case," Mr. Nimmo said, according to
the report. "The vast majority of cases will still not be
appropriate for a CVA, but in certain cases they will be.  The CVA
has to create proposals that can make the future of that company
viable."


* UK: Commercial Property Meltdown to Hit Banks' Balance Sheets
---------------------------------------------------------------
BBC News reports that all over the UK, negative equity is now
widespread in the whole of the commercial property sector.

According to the report, one informed estimate says it could be as
much as GBP50 billion.

The report notes in the case of shopping centers, it is now common
for centers to be worth less than the cash loaned by banks to
allow the owners to buy them during the boom.

"GBP10 billion worth of shopping centers are capable of being put
into receivership, should the banks so wish," the report quoted
Mark Williams, of consultancy DTZ, who charts the buying and
selling of shopping centers for BCSC (British Council of Shopping
Centres), as saying.

The report relates William Newsom of property consultancy Savills
said the losses would devastate the balance sheets of the banks
who offered the loans.  The alternative is that if the company
goes bust, the losses on the loans will turn up on the bank's
accounts, the report says.

The report states banks have been renegotiating loan terms and
extending loan periods hoping that the problems would be resolved
in what is known as "extend, amend and pretend" or "delay and
pray".

The report recalls during the boom a large number of so-called
securitized loans were issued for property investors, and Conor
Downey, a specialist banking and commercial property lawyer with
city firm Paul Hastings said, they were far less flexible.  He
warned that a spate of forced sales was likely when these complex
loans mature in the next two years, the report relates.  According
to the report, as the number of these forced sales grows this will
further depress prices in the commercial property sector making it
harder for banks to cover their losses, squeezing the cash they
have available to lend to businesses.


* UK: To Face Challenges in Unwinding Support Programs for Banks
----------------------------------------------------------------
Gonzalo Vina and Caroline Binham at Bloomberg News report that
Chancellor of the Exchequer Alistair Darling on Feb. 12 said
unwinding support programs for U.K. banks is one of the biggest
challenges facing the government as lenders seek to refinance GBP1
trillion (US$1.56 trillion) of debt by 2015.

Mr. Darling saw "three main strands of work" for the Treasury,
central bank and regulators, the minutes, published on the
Treasury's Web site Feb. 12, show, according to Bloomberg.  "An
orderly exit from government and central bank schemes designed to
underpin financial stability; continuing the repair work and
monitoring the health of the financial system; and structural
change which needed to strengthen the banking system."

Bloomberg relates Financial Services Authority Chairman Adair
Turner said banks need to "increase capital reserves and decrease
leverage steadily" and that stress tests carried out by the
regulator "had already had an impact and would continue to do so."
Mr. Turner, as cited by Bloomberg, said in some cases the amount
banks wanted to pay out in bonuses had to be altered to take into
account changes to regulations forcing banks to horde more capital
of better quality.


* UK: Banks Need to Draw Up Refinancing Plans, Mervyn King Says
---------------------------------------------------------------
Gonzalo Vina at Bloomberg News reports that Bank of England
Governor Mervyn King on Feb. 12 said British banks need to publish
plans on how they will refinance debt as they exit government
support programs.

"More than 1 trillion pounds needed to be refinanced in private
markets in the next five years and banks internationally have
considerable work still to do to deal with this issue," Bloomberg
notes, citing minutes of the Financial Stability Council published
in London Feb. 12.  "The U.K. authorities should require all banks
to draw up concrete refinancing plans.  International co-operation
would be required to monitor progress."


* UK: Building Societies to Face GBP300 Bil. Funding Shortfall
--------------------------------------------------------------
BBC News reports that Moody's ratings agency has warned some
building societies face a "possibly life-threatening" fight for
savers' money.

According to the report, mortgage lenders said they would face a
shortfall of more than GBP300 billion when banks had to start
repaying emergency government finance.

Moody's said this would force some building societies to merge or
seek a buyer as funding from savers dried up, the report notes.

The report relates the Council of Mortgage Lenders had warned that
in the next three years, the UK's banks would have to repay about
GBP319 billion of emergency funding that the government advanced
during the height of the credit crunch.

"Building societies have been the main victims of this distortion,
experiencing a net deposit outflow of nearly GBP8 billion in 2009
and forcing them to scale back lending and cut costs," the report
quoted Moody's as saying.  "Without access to cheaper government-
backed funding, many societies will find it increasingly difficult
to survive."


* UK: Solicitors Must Report Insolvency Risk to SRA, KPMG Says
--------------------------------------------------------------
KPMG recommends that solicitors should be under a duty to notify
the Solicitors Regulation Authority when they get into financial
difficulties, Rachel Rothwell writes for Law Society Gazette.

At present, firms are not obliged to notify the SRA until they
actually become insolvent, Law Society Gazette notes.

According to Law Society Gazette, KPMG in its report also proposes
that there should be a new core duty on financial management as
part of the solicitors' rules.

KPMG head of regulatory services Marcus Sephton said firms should
have a duty to tell the SRA when they are at risk of becoming
insolvent, but there should not be any capital adequacy
requirements.


* Conrad Bigham Joins MCR as New Director for Hotel Sector
----------------------------------------------------------
Conrad Bigham has joined MCR, the corporate restructuring and
insolvency specialists, as director with a brief to develop the
company's hotel and leisure related business.

Prior to joining MCR, he worked in a wide variety of roles,
including turnaround specialist, non-executive director, interim
finance director, hotel real estate agent and, more recently, as a
hotel investment and debt advisory consultant.  In this capacity
Mr. Bigham has not only acted for hotel owners in arranging bank
debt finance but also undertaken reviews of distressed hotels on
behalf of lenders.

Andrew Stoneman, Senior Partner, MCR, stated: "Conrad has a hands-
on approach to management and we are keen to see him develop what
is already a team of high performing individuals.  We are very
pleased to have him join MCR at a time when we are experiencing
steady growth across our business.  Conrad will be helping to
drive our existing business within the hotels and leisure sectors
and with his talent and skill, we anticipate great success."

Having been called to the Bar, Mr. Bigham spent 20 years working
in corporate banking, initially for Barclays and subsequently for
the Royal Bank of Scotland, where he headed the London based hotel
and leisure team.  He also had two periods in the pub industry as
interim finance director at both Inn Kent Leisure Ltd and Geronimo
Inns Ltd, where he was also a non-executive director.

During the last 10 years, Mr. Bigham has performed senior roles at
two of the largest global real estate services firms and has
undertaken hotel related assignments across Europe.

Mr. Bigham is a non-practicing barrister, an Associate of
Chartered Institute of Bankers and an Associate of the British
Association of Hospitality Accountants.

                            About MCR

MCR -- http://www.mcr.uk.com/-- was formed in April 2001 to offer
turnaround, restructuring and insolvency services of outstanding
quality to banks, lenders, business owners and individuals in the
mid-market sector.  It aims to provide the most practicable ways
to resolve issues affecting business performance.

The firm has 12 partners who practice an ethos of high-level
involvement to ensure that each assignment capitalizes upon the
expertise and knowledge of the whole team.

MCR regularly handles significant projects across a range of
sectors and has been involved in a number of high profile cases.
MCR is increasingly being asked to restructure businesses and find
turnaround solutions to help companies avoid formal insolvency.
Sectors include property, retail, financial services,
manufacturing, printing, recruitment, hotels, leisure, automotive,
telecommunications, music, entertainment and construction.


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


* S&P Withdraws Ratings on 15 Collateralized Debt Obligations
-------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its credit ratings on
15 collateralized debt obligation tranches.  At the same time, S&P
assigned portfolio swap risk "srp" ratings to these tranches based
on its analysis using the latest applicable CDO Evaluator model.

The rating withdrawals reflect its view that S&P lacks adequate
information to continue to provide opinions on the
creditworthiness of these 15 tranches.  This follows S&P's
withdrawal of the credit rating on the dependent party in the
related transactions.

Following the withdrawals, S&P assigned portfolio swap risk "srp"
ratings to all 15 tranches.  This type of rating takes into
consideration only the creditworthiness of the reference
portfolio.  It does not address either counterparty risk
(protection buyer/seller) or the specific amount of termination
payments that would be payable under the swap transaction.

                           Ratings List

    Ratings Withdrawn and Portfolio Swap Risk Ratings Assigned

                            Aria CDO I
                A$154.3 Million, CHF74.17 Million,
                 EUR494.6 Million, JPY9.3 Billion,
             US$35 Million Fixed-Rate, Floating-Rate,
          and Inflation-Indexed Managed Portfolio Notes
               (Issued By Aria CDO I (Ireland) PLC)

                                      Rating
                                      ------
          Class              To                     From
          -----              --                     ----
          C-1U10             NR                     B+
                             B+srp                  NR
          A-1C7              NR                     A+
                             A+srp                  NR
          B-1C7              NR                     BBB-
                             BBB-srp                NR
          C-1C7              NR                     BB-p
                             BB-srp                 NR
          A-1E7K             NR                     A+
                             A+srp                  NR
          B-1E7K             NR                     BBB-
                             BBB-srp                NR

                            Aria CDO I
US$3 Million Composite Security Secured Notes (Issued By Aria
CDO I (Jersey No.10) Ltd.)

                                      Rating
                                      ------
          Class              To                     From
          -----              --                     ----
          M-4U7              NR                     B+
                             B+srp                  NR

                            Aria CDO I
US$23.69 Million Fixed-Rate Managed Portfolio Notes (Issued By
Aria CDO I (Jersey No.8) Ltd. and Aria CDO I (Delaware No.8)
Corp.)

                                      Rating
                                      ------
          Class              To                     From
          -----              --                     ----
          C-2U7              NR                     B+
                             B+srp                  NR

                            Aria CDO I
US$15 Million Accreting Composite Security Secured Portfolio Notes
    (Issued By Aria CDO I (Jersey No. 11) Ltd. and Aria CDO I
                    (Delaware No. 11) Corp.)

                                      Rating
                                      ------
          Class              To                     From
          -----              --                     ----
          N-4U7              NR                     CCC+
                             CCC+srp                NR

                            Aria CDO I
US$17.64 Million Floating-Rate Managed Portfolio Notes (Issued By
          Aria CDO I (Jersey No. 2) Ltd. and Aria CDO I
                   (Delaware No. 2) Corp.)

                                      Rating
                                      ------
          Class              To                     From
          -----              --                     ----
          A-1U7              NR                     A+
                             A+srp                  NR

                            Aria CDO I
US$116.12 Million Floating-Rate Managed Portfolio Notes (Issued By
          Aria CDO I (Jersey No. 5) Ltd. and Aria CDO I
                     (Delaware No. 5) Corp.)

                                      Rating
                                      ------
          Class              To                     From
          -----              --                     ----
          B-1U7              NR                     BBB-
                             BBB-srp                NR

                     Quartz CDO (Ireland) PLC
EUR20 Million Fixed-Rate Secured Substitutable Portfolio Credit-
                      Linked Notes Series 2

                            Rating
                            ------
                   To                     From
                   --                     ----
                   NR                     BB+
                   BB+srp                 NR

                     Quartz CDO (Ireland) PLC
     US$150 Million Floating-Rate Secured Substitutable Managed
            Portfolio Credit-Linked Notes Series 6

                            Rating
                            ------
                   To                     From
                   --                     ----
                   NR                     CCC-
                   CCC-srp                NR

                    Saphir CDO (Ireland) PLC
      EUR22 Million Floating-Rate Secured Managed Portfolio
                  Credit-Linked Notes Series 3

                            Rating
                            ------
                   To                     From
                   --                     ----
                   NR                     BB+
                   BB+srp                 NR

                    Saphir CDO (Ireland) PLC
     US$120 Million Floating-Rate Secured Managed Portfolio
                  Credit-Linked Notes Series 4

                            Rating
                            ------
                   To                     From
                   --                     ----
                   NR                     CCC
                   CCCsrp                 NR

                         NR -- Not rated.


* BOND PRICING: For the Week February 15 to February 19, 2010
-------------------------------------------------------------

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

AUSTRIA
-------
HAA-BANK INTL AG      5.250   10/27/2015     EUR   73.00
KOMMUNALKREDIT        4.440   12/20/2030     EUR   63.13
KOMMUNALKREDIT        4.900    6/23/2031     EUR   67.13
OESTER VOLKSBK        4.170    7/29/2015     EUR   47.25
OESTER VOLKSBK        5.450     8/2/2019     EUR   60.50
OESTER VOLKSBK        4.810    7/29/2025     EUR   30.63
OESTER VOLKSBK        5.270     2/8/2027     EUR   93.98
RAIFF ZENTRALBK       4.500    9/28/2035     EUR   89.00

BELGIUM
-------
FORTIS BANK           8.750    12/7/2010     EUR   19.07

BULGARIA
--------
PETROL AD-SOFIA       8.375   10/26/2011     EUR   45.67

CZECH REPUBLIC
--------------
CZECH REPUBLIC        2.750    1/16/2036     JPY   72.57

DENMARK
-------
DANMARK SKIBSKRD      2.000   11/15/2024     DKK   73.27
TRYG FORSIKRING       4.500   12/19/2025     EUR   68.28

FINLAND
-------
MUNI FINANCE PLC      0.500    9/24/2020     CAD   62.21
MUNI FINANCE PLC      0.250    6/28/2040     CAD   21.46
MUNI FINANCE PLC      0.500    3/17/2025     CAD   48.01
MUNI FINANCE PLC      1.000    2/27/2018     AUD   63.76
MUNI FINANCE PLC      1.000   10/30/2017     AUD   64.93
MUNI FINANCE PLC      1.000   11/21/2016     NZD   71.11
STORA ENSO OYJ        7.250    4/15/2036     USD   75.05

FRANCE
------
AIR FRANCE-KLM        4.970     4/1/2015     EUR   14.86
ALCATEL SA            4.750     1/1/2011     EUR   16.09
ALCATEL-LUCENT        5.000     1/1/2015     EUR    3.22
ALTRAN TECHNOLOG      6.720     1/1/2015     EUR    4.65
ATOS ORIGIN SA        2.500     1/1/2016     EUR   51.47
CALYON                6.000    6/18/2047     EUR   42.65
CAP GEMINI SOGET      3.500     1/1/2014     EUR   43.05
CAP GEMINI SOGET      1.000     1/1/2012     EUR   43.38
CLUB MEDITERRANE      4.375    11/1/2010     EUR   48.78
CMA CGM               5.500    5/16/2012     EUR   63.42
CMA CGM SA            7.250     2/1/2013     USD   64.06
DEXIA MUNI AGNCY      4.680     3/9/2029     CAD   74.59
DEXIA MUNI AGNCY      1.000   12/23/2024     EUR   60.39
EURAZEO               6.250    6/10/2014     EUR   57.78
FAURECIA              4.500     1/1/2015     EUR   19.08
GROUPE VIAL           2.500     1/1/2014     EUR   18.60
MAUREL ET PROM        7.125    7/31/2014     EUR   18.08
NEXANS SA             4.000     1/1/2016     EUR   62.29
PEUGEOT SA            4.450     1/1/2016     EUR   29.70
PUBLICIS GROUPE       1.000    1/18/2018     EUR   45.70
PUBLICIS GROUPE       3.125    7/30/2014     EUR   35.20
RHODIA SA             0.500     1/1/2014     EUR   43.46
SOC AIR FRANCE        2.750     4/1/2020     EUR   20.60
SOITEC                6.250     9/9/2014     EUR   11.16
TEM                   4.250     1/1/2015     EUR   55.60
THEOLIA               2.000     1/1/2014     EUR   14.00
VALEO                 2.375     1/1/2011     EUR   46.28
ZLOMREX INT FIN       8.500     2/1/2014     EUR   35.38
ZLOMREX INT FIN       8.500     2/1/2014     EUR   35.00
DEPFA PFANDBRIEF      6.759    2/22/2019     EUR   64.91

GERMANY
-------
DEUTSCHE BK LOND      1.000    3/31/2027     USD   48.97
ESCADA AG             7.500     4/1/2012     EUR   18.11
EUROHYPO AG           5.000    5/15/2027     EUR   93.34
HSH NORDBANK AG       4.375    2/14/2017     EUR   66.47
HYPOREAL INTL AG      4.770    8/11/2021     EUR   72.99
HYPOREAL INTL AG      4.560    3/28/2021     EUR   72.22
HYPOREAL INTL AG      4.675    9/13/2021     EUR   72.12
KFW                   5.000   10/17/2035     EUR   73.81
L-BANK FOERDERBK      0.500    5/10/2027     CAD   43.45
LB BADEN-WUERTT       2.500    1/30/2034     EUR   62.27
LB BADEN-WUERTT       5.250   10/20/2015     EUR   34.44
RENTENBANK            1.000    3/29/2017     NZD   70.93
SOLON AG SOLAR        1.375    12/6/2012     EUR   36.66
VAC FINANZ            9.250    4/15/2016     EUR   50.00
VAC FINANZ            9.250    4/15/2016     EUR   50.00

GREECE
------
HELLENIC REP I/L      2.300    7/25/2030     EUR   68.94
HELLENIC REPUB        3.000    4/30/2019     JPY   69.03
HELLENIC REPUBLI      4.500    9/20/2037     EUR   74.51
HELLENIC REPUBLI      4.600    9/20/2040     EUR   74.48
YIOULA GLASSWORK      9.000    12/1/2015     EUR   54.75
YIOULA GLASSWORK      9.000    12/1/2015     EUR   54.94

HUNGARY
-------
REP OF HUNGARY        2.110   10/26/2017     JPY   73.24

IRELAND
-------
ALLIED IRISH BKS      7.875     7/5/2023     GBP   80.96
ALLIED IRISH BKS      5.250    3/10/2025     GBP   63.65
ALLIED IRISH BKS      5.625   11/29/2030     GBP   61.21
DEPFA ACS BANK        5.125    3/16/2037     USD   74.63
DEPFA ACS BANK        0.500     3/3/2025     CAD   30.07
DEPFA ACS BANK        4.900    8/24/2035     CAD   62.64
DEPFA ACS BANK        5.125    3/16/2037     USD   74.24
DEPFA ACS BANK        5.250    3/31/2025     CAD   71.95
IRISH NATIONWIDE     13.000    8/12/2016     GBP   75.24
UT2 FUNDING PLC       5.321    6/30/2016     EUR   66.23

ITALY
-----
COMUNE DI MILANO      4.019    6/29/2035     EUR   73.95

LUXEMBOURG
----------
ARCELORMITTAL         7.250     4/1/2014     EUR   33.67
BREEZE                4.524    4/19/2027     EUR   82.98
CRC BREEZE            5.290     5/8/2026     EUR   73.89
GLOBAL YATIRIM H      9.250    7/31/2012     USD   69.38
HELLAS III            8.500   10/15/2013     EUR   50.58
LIGHTHOUSE INTL       8.000    4/30/2014     EUR   64.50
LIGHTHOUSE INTL       8.000    4/30/2014     EUR   65.29
TALANX FINANZ         4.500    6/30/2025     EUR   84.64

NETHERLANDS
-----------
AI FINANCE B.V.      10.875    7/15/2012     USD   61.50
ALB FINANCE BV        9.000   11/22/2010     USD   32.00
ALB FINANCE BV        8.750    4/20/2011     USD   31.99
ALB FINANCE BV        9.250    9/25/2013     USD   31.95
ARPENI PR INVEST      8.750     5/3/2013     USD   55.50
ARPENI PR INVEST      8.750     5/3/2013     USD   55.50
ASTANA FINANCE        9.000   11/16/2011     USD   23.97
BK NED GEMEENTEN      0.500    2/24/2025     CAD   47.89
BK NED GEMEENTEN      0.500    6/27/2018     CAD   69.17
BLT FINANCE BV        7.500    5/15/2014     USD   71.00
BLT FINANCE BV        7.500    5/15/2014     USD   69.50
BRIT INSURANCE        6.625    12/9/2030     GBP   71.56
DGS INTL FIN BV      10.000     6/1/2007     USD    0.01
ELEC DE CAR FIN       8.500    4/10/2018     USD   66.08
EM.TV FINANCE BV      5.250     5/8/2013     EUR    5.21
FINANCE & CREDIT     10.500    1/25/2014     USD   74.84
IVG FINANCE BV        1.750    3/29/2017     EUR   65.30
LEHMAN BROS TSY       7.250    10/5/2035     EUR   11.00
NATL INVESTER BK     25.983     5/7/2029     EUR   36.68
NED WATERSCHAPBK      0.500    3/11/2025     CAD   46.75
NXP BV/NXP FUNDI      8.625   10/15/2015     EUR   80.50
Q-CELLS INTERNAT      1.375    2/28/2012     EUR   50.29
Q-CELLS INTERNAT      5.750    5/26/2014     EUR   50.78
RBS NV EX-ABN NV      6.000    3/16/2035     EUR   71.21
TEMIR CAPITAL         9.500    5/21/2014     USD   27.88
TEMIR CAPITAL         9.000   11/24/2011     USD   27.98
TEMIR CAPITAL         9.500    5/21/2014     USD   26.50
TJIWI KIMIA FIN      13.250     8/1/2001     USD    0.01
TURANALEM FIN BV      8.500    2/10/2015     USD   37.58
TURANALEM FIN BV      8.250    1/22/2037     USD   38.51
TURANALEM FIN BV      8.000    3/24/2014     USD   41.00
TURANALEM FIN BV      7.750    4/25/2013     USD   37.40
TURANALEM FIN BV      6.250    9/27/2011     EUR   37.47
TURANALEM FIN BV      7.875     6/2/2010     USD   37.50

NORWAY
------
EKSPORTFINANS         0.500     5/9/2030     CAD   36.49
NORSKE SKOGIND        7.000    6/26/2017     EUR   63.47

POLAND
------
POLAND GOVT BOND      3.300    6/16/2038     JPY   70.42
POLAND-REGD-RSTA      2.810   11/16/2037     JPY   62.43
REP OF POLAND         2.620   11/13/2026     JPY   72.41
REP OF POLAND         3.220     8/4/2034     JPY   71.85
REP OF POLAND         2.648    3/29/2034     JPY   63.67

RUSSIA
------
MRSK URALA            8.150    5/22/2012     RUB   51.68
ROSSELKHOZBANK       11.500    9/27/2017     RUB    2.00
TGK-4                 7.600    5/31/2012     RUB   64.49
UTK                   7.550    5/30/2012     RUB    1.90

SPAIN
-----
BANCAJA EMI SA        2.755    5/11/2037     JPY   65.54
BBVA SUB CAP UNI      2.750   10/22/2035     JPY   70.09
GENERAL DE ALQUI      2.750    8/20/2012     EUR   57.14
MINICENTRALES         4.810   11/29/2034     EUR   61.76

SWEDEN
------
SWEDISH EXP CRED      0.500   12/17/2027     USD   47.43

SWITZERLAND
-----------
CYTOS BIOTECH         2.875    2/20/2012     CHF   52.94
UBS AG JERSEY        10.820    4/21/2011     USD   22.16
UBS AG JERSEY         9.000     3/9/2010     USD   58.44
UBS AG JERSEY         9.000    5/18/2010     USD   58.39
UBS AG JERSEY         9.000    6/11/2010     USD   57.15
UBS AG JERSEY         9.000     7/2/2010     USD   57.50
UBS AG JERSEY         9.000    7/19/2010     USD   57.30
UBS AG JERSEY         9.350    7/27/2010     USD   57.90
UBS AG JERSEY         9.000    8/13/2010     USD   62.10
UBS AG JERSEY         9.500    8/31/2010     USD   64.10
UBS AG JERSEY        10.000   10/25/2010     USD   64.00
UBS AG JERSEY        13.900    1/31/2011     USD   36.36
UBS AG JERSEY        14.640    1/31/2011     USD   38.44
UBS AG JERSEY        16.170    1/31/2011     USD   13.75
UBS AG JERSEY        10.000    2/11/2011     USD   60.95
UBS AG JERSEY        15.250    2/11/2011     USD   12.35
UBS AG JERSEY         8.250    2/28/2011     USD   68.94
UBS AG JERSEY        12.800    2/28/2011     USD   35.28
UBS AG JERSEY        11.330    3/18/2011     USD   18.23
UBS AG JERSEY        11.400    3/18/2011     USD   25.45
UBS AG JERSEY        10.990    3/31/2011     USD   30.20
UBS AG JERSEY        16.160    3/31/2011     USD   44.06
UBS AG JERSEY        11.030    4/21/2011     USD   21.49
UBS AG JERSEY        10.650    4/29/2011     USD   16.35
UBS AG JERSEY        10.500    6/16/2011     USD   72.18
UBS AG JERSEY        13.000    6/16/2011     USD   50.53
UBS AG JERSEY        10.280    8/19/2011     USD   33.99
UBS AG JERSEY        10.360    8/19/2011     USD   52.79
UBS AG JERSEY        11.150    8/31/2011     USD   37.74
UBS AG JERSEY         9.350    9/21/2011     USD   66.49
UBS AG JERSEY         3.220    7/31/2012     EUR   56.89

UNITED KINGDOM
--------------
ALPHA CREDIT GRP      2.940     3/4/2035     JPY   72.02
AMDOCS LIMITED        0.500    3/15/2024     USD   74.00
BANK OF SCOTLAND      2.359    3/27/2029     JPY   75.00
BARCLAYS BK PLC       7.610    6/30/2011     USD   54.37
BARCLAYS BK PLC      10.600    7/21/2011     USD   42.09
BARCLAYS BK PLC      11.650    5/20/2010     USD   43.66
BARCLAYS BK PLC       8.550    1/23/2012     USD   10.82
BARCLAYS BK PLC      10.350    1/23/2012     USD   25.77
BRADFORD&BIN BLD      5.750   12/12/2022     GBP   16.58
BRADFORD&BIN BLD      2.875   10/16/2031     CHF   74.08
BROADGATE FINANC      5.098     4/5/2033     GBP   73.23
CITY OF KIEV          8.000    11/6/2015     USD   73.13
CITY OF KIEV          8.000    11/6/2015     USD   72.54
CO-OPERATIVE BNK      5.875    3/28/2033     GBP   76.89
EFG HELLAS PLC        2.760    5/11/2035     JPY   67.94
ENTERPRISE INNS       6.500    12/6/2018     GBP   84.34
ENTERPRISE INNS       6.875     5/9/2025     GBP   80.34
ENTERPRISE INNS       6.375    9/26/2031     GBP   73.42
EXIM OF UKRAINE       8.400     2/9/2016     USD   84.96
F&C ASSET MNGMT       6.750   12/20/2026     GBP   67.27
HBOS PLC              4.500    3/18/2030     EUR   70.13
INEOS GRP HLDG        7.875    2/15/2016     EUR   61.75
INEOS GRP HLDG        8.500    2/15/2016     USD   61.93
INEOS GRP HLDG        8.500    2/15/2016     USD   61.06
INEOS GRP HLDG        7.875    2/15/2016     EUR   62.05
LBG CAPITAL NO.1      6.439    5/23/2020     EUR   74.94
LBG CAPITAL NO.2      6.385    5/12/2020     EUR   74.69
LOUIS NO1 PLC        10.000    12/1/2016     EUR   69.92
LOUIS NO1 PLC        10.000    12/1/2016     EUR   70.00
MARSTONS ISSUER       5.641    7/15/2035     GBP   74.27
NATL GRID GAS         1.754   10/17/2036     GBP   45.46
NATL GRID GAS         1.771    3/30/2037     GBP   44.22
NBG FINANCE PLC       2.755    6/28/2035     JPY   67.06
NOMURA BANK INTL      0.800   12/21/2020     EUR   58.06
NORTHERN ROCK         4.574    1/13/2015     GBP   57.02
NORTHERN ROCK         5.750    2/28/2017     GBP   51.19
NORTHERN ROCK         9.375   10/17/2021     GBP   62.22
OJSC BANK NADRA       9.250    6/28/2010     USD   25.50
PRINCIPALITY BLD      5.375     7/8/2016     GBP   63.08
PRIVATBANK            8.750     2/9/2016     USD   78.92
PUNCH TAVERNS         6.468    4/15/2033     GBP   70.37
ROYAL BK SCOTLND      4.625    9/22/2021     EUR   75.20
ROYAL BK SCOTLND     10.000    2/15/2045     USD   64.69
ROYAL BK SCOTLND      4.243    1/12/2046     EUR   59.07
SPIRIT ISSUER         5.472   12/28/2028     GBP   71.92
cccc                  6.450    5/15/2005     USD    2.00
UNIQUE PUB FIN        7.395    3/28/2024     GBP   74.29
UNIQUE PUB FIN        6.464    3/30/2032     GBP   60.98
WESSEX WATER FIN      1.369    7/31/2057     GBP   20.65


                            *********

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-Fernandez, Joy A. Agravante and Peter A. Chapman,
Editors.

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

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

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

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


                 * * * End of Transmission * * *