TCREUR_Public/100308.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, March 8, 2010, Vol. 11, No. 046

                            Headlines



B U L G A R I A

PIRAEUS BANK: Moody's Reviews Deposit Rating for Poss. Downgrade


F R A N C E

VIVENDI SA: Lawyers Want French Investors Excluded in N.Y. Suit


G E R M A N Y

TV-LOONLAND AG: Munich Court Commences Insolvency Proceedings


G R E E C E

* GREECE: Bailout Is EU's Primary Concern, China Fund Says


H U N G A R Y

STYL RUHAGYAR: Berwin and Berwin May Acquire Business


I R E L A N D

AER LINGUS: Cabin Crew Turns Down Rescue Plan
FLEMING GROUP: High Court Appoints Liquidator to Three Firms
HUGHES & HUGHES: Eason to Take Over Seven Airport Outlets
IRISH LIFE: Posts EUR196 Million Operating Loss in 2009
MAGNOLIA FINANCE: Moody's Cuts Rating on Class A Notes to 'Caa3'

TWEEDY GROUP: Fails to Secure Extension of Court Protection


I T A L Y

ATLANTE FINANCE: Fitch Affirms Rating on Class C Notes at 'B'
ISLAND REFINANCING: Moody's Reviews 'Caa2'-Rated Class X Notes
LOCAT SV: S&P Downgrades Rating on Class C Notes to 'B+'
PARMALAT SPA: Prosecutors Want Stiffer Sentence for Tanzi
PARMALAT SPA: Settles EUR1 Bil. PCF Claims

PARMALAT SPA: Creditors Convert Warrants for 107,277 Shares


K A Z A K H S T A N

BTA BANK: Restructuring Receives Recognition in U.S.


L U X E M B O U R G

BERNARD MADOFF: LuxAlpha Investors Can't Sue UBS, E&Y Directly


N E T H E R L A N D S

PANTHER CDO: Fitch Affirms Ratings on Class III Notes at 'CCC'


S P A I N

CONSUMO BANCAJA: Fitch Junks Rating on Class C Notes From 'BB+'
CONSUMO BANCAJA: Fitch Corrects Press Release on Ratings
EMPRESAS HIPOTECARIO: Fitch Affirms 'C' Rating on Class D Notes
LA SEDA: To Use U.K. Insolvency Scheme to Refinance Debt
MADRID ACTIVOS: Moody's Junks Rating on Class D Notes From 'B2'

PRISA: Inks US$900 Mil. Merger Deal with Liberty Acquisition


S W E D E N

SAS AB: Mulls Convertible Bond Issue to Refinance US$280MM Debt


T U R K E Y

EUROBANK TEKFEN: Moody's Reviews 'Ba1' Long-Term Global Rating


U N I T E D   K I N G D O M

BRITISH AIRWAYS: Must Conclude Cabin Crew Talks by Tuesday
CRYSTAL PALACE: Has to Pay GBP1 Mil. Ground Rent Next Month
EMI GROUP: Sungate Files Suit v. Citigroup Over Buyout Deal
MANCHESTER UNITED: Receives Two Offers From Potential Buyers
PACKAGING SCOTLAND: In Administration; KPMG On Board

RANK GROUP: S&P Changes Outlook to Stable; Affirms 'B+' Rating
READER'S DIGEST: UK Arm Attracts Almost 100 Potential Buyers
SWAYFIELDS LIMITED: In Administration; PwC On Board


X X X X X X X X

* Fitch Says EMEA Capital Goods Sector to Remain Resilient

* BOND PRICING: For the Week March 1 to March 5, 2010





                         *********



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


PIRAEUS BANK: Moody's Reviews Deposit Rating for Poss. Downgrade
----------------------------------------------------------------
Moody's Investors Service has placed on review for possible
downgrade the Baa2/Prime-3 long-term and short-term local currency
and Baa3/Prime-3 long-term and short-term foreign currency deposit
ratings of Piraeus Bank Bulgaria AD.  This rating action follows
Moody's decision to place on review for possible downgrade all the
ratings of the Bulgarian bank's Greek parent, Piraeus Bank SA (see
press release dated March 3, 2010).  PBB's D- bank financial
strength rating is not affected by this action.

At present, PBB's Baa2 long-term local currency deposit rating
incorporates a three-notch uplift from its Baseline Credit
Assessment of Ba2 to reflect Moody's assessment of the probability
of support from its parent bank.  The rating review will focus on
reassessing the ability and the willingness of the Greek parent to
support its Bulgarian subsidiary and determining the appropriate
level of uplift to be incorporated into PBB's ratings.

As regards the long-term foreign currency deposit rating of Baa3,
which is currently constrained by the foreign currency deposit
ceiling for Bulgaria, it could become aligned with the local
currency deposit rating, should the latter be lowered.  Any future
downward movement in PBB's local currency rating would then prompt
a movement in the foreign currency deposit rating.

Moody's last rating action on PBB was on January 21, 2010, when
the outlook on the bank's Baa3 long-term foreign currency deposit
ratings was changed to positive from stable, in line with the
positive outlook attached to the foreign currency country ceiling.

Piraeus Bank Bulgaria is headquartered in Sofia and reported
consolidated total assets of BGN3.633 billion (EUR1.858 billion)
at the end of December 2009.


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


VIVENDI SA: Lawyers Want French Investors Excluded in N.Y. Suit
---------------------------------------------------------------
Matthew Campbell and Heather Smith at Bloomberg News report that
Vivendi SA's lawyers told a Paris appeals court that the company's
French investors shouldn't be able to claim damages from a U.S.
class-action verdict.

According to Bloomberg, excluding the French investors from the
New York suit could reduce damages owed by the company, which a
lawyer for plaintiffs said could be as much as US$9.3 billion.
Vivendi has set aside EUR550 million (US$746 million) for a
possible award, Bloomberg notes.

"These shareholders bought shares in France and received
information in France, regulated by the French market
authorities," Bloomberg quoted Vivendi lawyer Herve Pisani as
saying.  "The American system is fundamentally contrary to our
law."

The hearing related to an appeal of a January ruling that allowed
French shareholders to continue to participate in the New York
suit, Bloomberg discloses.  Bloomberg notes Vivendi has argued the
French investors have remedies in their home country.

As reported by the Troubled Company Reporter-Europe on Feb. 2,
2010, Bloomberg said that the Manhattan federal court jury ruled
that Vivendi misled investors 57 times from 2000 to 2002.
Bloomberg disclosed the jury fund that the company misled
investors with upbeat statements that hid a liquidity crisis.
About two-thirds of the investors in the New York case are in
France, Bloomberg said.

                           About Vivendi

Vivendi SA -- http://www.vivendi.com/-- is a France-based company
principally engaged in telecommunications services and media
entertainment.  The Company operates five core subsidiaries:
Activision Blizzard, a 54% subsidiary, is a worldwide pure-play
online and console game publisher; Universal Music Group, a 100%
subsidiary, is a recorded music company; SFR, a telecommunications
operator in France is a 56% subsidiary of Vivendi (the new SFR,
created via a merger with Neuf Cegetel, is a mobile and fixed-line
operator in Europe); Maroc Telecom, a 53% subsidiary, is a mobile
and fixed-line and internet access operator in Morocco; Groupe
Canal+, a 100% subsidiary, offers premium and theme channel
distribution and programming in France.  Vivendi holds 20% of NBC
Universal.  Vivendi Mobile Entertainment was founded as a 100%
subsidiary of Vivendi in 2007, its innovative subscription
service, branded zaOza, was launched in France in 2008.


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


TV-LOONLAND AG: Munich Court Commences Insolvency Proceedings
-------------------------------------------------------------
The Munich insolvency court instituted insolvency proceedings for
TV-Loonland AG on March 1, 2010.  The decision was forwarded to
TV-Loonland on March 4, 2010.

As a result the power of disposition was transferred to the
administrator Wolfgang Ott, who had been previously appointed as
preliminary administrator.  The CEO of TV-Loonland filed for
insolvency on November 30, 2009.

TV-Loonland AG is a German producer of family and children
television programs.


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


* GREECE: Bailout Is EU's Primary Concern, China Fund Says
----------------------------------------------------------
The Wall Street Journal's Victoria Ruan reports that Jesse Wang,
also known as Wang Jianxi, the Executive Vice President of China
Investment Corp., China's US$300 billion sovereign-wealth fund,
said Thursday the responsibility for a bailout of Greece should
fall primarily on the European Union, rather than institutions
such as CIC.

The Journal says this is CIC's first official comment on
speculation that China would help bail out Greece.  According to
the Journal, Mr. Wang issued the comment at the sidelines of the
annual session of the Chinese People's Political Consultative
Conference, an advisory body to the government.

According to the Journal, Mr. Wang reiterated that CIC's main
mission is to have sound financial returns.  "Aiding Greece looks
like a policy goal," he said, according to the Journal.  "If the
EU is unwilling to help, how can you expect others to act as a
white knight and save Greece?"

The Journal notes that news agencies in January reported that
China may buy a large amount of Greek debt.  The Journal says the
Greek Finance Ministry subsequently denied that it had reached a
deal to sell Greek bonds or state-linked assets to Chinese
investors, or that it had mandated any investment bank to
negotiate a sale on its behalf.

The Journal relates Mr. Wang said CIC has little exposure to the
debt crisis related to the European nations.  Instead, CIC focuses
on other risks, such as the impact foreign-exchange swings are
having on its global investments, he said, according to the
Journal.


=============
H U N G A R Y
=============


STYL RUHAGYAR: Berwin and Berwin May Acquire Business
-----------------------------------------------------
ISI - Emerging Markets reports that Styl Ruhagyar could be
purchased by UK clothing manufacturer Berwin and Berwin.

The report recalls Styl went under liquidation in the second half
of 2004.  The bailiff Vectigalis offered the company's assets for
sale at a price of HUF770 million (EUR2.89 million), the report
notes.

Styl Ruhagyar is one of Hungary's biggest clothing manufacturer.


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


AER LINGUS: Cabin Crew Turns Down Rescue Plan
---------------------------------------------
John Murray Brown at The Financial Times reports that Aer Lingus
cabin crew on Friday rejected the carrier's rescue plan, casting
renewed doubt over the company's financial survival.

The FT recalls the company had earlier warned it would make 1,100
compulsory redundancies and a reduction in routes if its cost-
cutting plan was rejected.

The FT relates proposals negotiated between Impact, the trade
union representing cabin crew, and the airline management at the
Labour Relations Commission was on Friday defeated in a ballot of
members by a margin of almost two to one.

According to the FT, the plan, which management says is vital to
secure the company's short term survival, targets savings of EUR97
million including a EUR74 million cut in its wage bill, reducing
the cost base by 10%.  It envisages a 15% cut in staff numbers, a
10% pay cut, with pay increments frozen for 3 years along with
reductions in pension benefits, higher contributions and
productivity improvements, the FT says.

Aer Lingus Group Plc and its subsidiaries --
http://www.aerlingus.com/-- operates as a low fares Irish airline
primarily providing passenger and cargo transportation services
from Ireland to the United Kingdom and Europe (short haul) and
also to the United states (long haul).  The Company is primarily
organized into two segments: passenger, which includes revenues
and costs relating to the carriage of passengers, and cargo, which
relates to the revenues and costs from the transportation of
cargo.  During the year ended December 31, 2008, three group
companies (Seres Limited, Duneast Limited and Crodley Limited)
were put into liquidation and dissolved.


FLEMING GROUP: High Court Appoints Liquidator to Three Firms
------------------------------------------------------------
Mary Carolan at The Irish Times reports that the High Court has
appointed a liquidator to three insolvent firms in the Fleming
building group, which has debts of more than EUR1 billion,
following the Supreme Court's decision to end their court
protection.

The report relates on the application of ACC Bank, Mr. Justice
Brian McGovern on Friday appointed Tom Kavanagh, of Kavanagh
Fennell, liquidator to John J Fleming Construction (JJFC), JJ
Fleming Holdings (JJFH) and Tivway Ltd.

ACC, which is owed EUR22 million by Tivway, previously appointed a
receiver over that company, the report notes.

                         Survival Schemes

The report recalls the five-judge Supreme Court unanimously
refused court protection to the three firms on Thursday after
finding that the proposed survival schemes did not provide a plan
with reasonable prospects for their survival as "going concerns".

The struck-down schemes proposed a sale of the Fleming group's
contracting arm and other assets to a new company, Donban, for
EUR3.6 million, and meant secured bank creditors would have
effective control of Fleming's property development business,
including sites in Sandyford, Co Dublin, with the banks having 10
years to realize their security, the report states.

According to the report, the Supreme Court said these schemes were
a "holding plan" involving the sale of the profitable "engine" of
the group to a new company outside the examinership, leaving
behind an impaired property development business which it was
hoped would improve in 10 years.


HUGHES & HUGHES: Eason to Take Over Seven Airport Outlets
---------------------------------------------------------
Colm Keena at The Irish Times reports that Eason is to acquire the
former Hughes & Hughes outlets at Dublin and Cork airports,
securing up to 120 jobs.

According to the report, the company has negotiated a new five-
year license arrangement for the outlets with the Dublin Airport
Authority and will take over the running of five shops in Dublin
and two in Cork.

The managing director of Eason, Conor Whelan, would not discuss
the terms of the licenses with the authority other than to say
that the parties were able to negotiate terms that were mutually
satisfactory, the report notes.

The report recalls Hughes & Hughes went into receivership on Feb.
26, citing inflexibility on the part of landlords, including the
airport authority, as well as the impact of sterling and of
increasing internet sales, as being among the reasons for its
difficulties.

The receiver, David Carson, of accountancy firm Deloitte, closed
its high-street outlets but kept the airport outlets in business,
the report recounts.  Mr. Carson was appointed by Ulster Bank, the
report relates.

Eason, the report says, has 54 outlets including 16 franchises.
Including the staff at the airport outlets, Eason now employs
1,700 people, full time and part time, the report discloses.

Mr. Carson continues to seek to sell the remaining business and
assets of the Hughes & Hughes group, the report states.

Hughes & Hughes is an Irish bookstore chain.


IRISH LIFE: Posts EUR196 Million Operating Loss in 2009
-------------------------------------------------------
BreakingNews.ie reports that Irish Life & Permanent posted an
operating loss of EUR196 million for 2009.

According to the report, the group said that the main reason for
the loss was the bank's operating loss of EUR270 million which was
put down to EUR376 million for impaired loans in the Group's
mortgage and consumer finance divisions in Ireland and the UK.

Headquartered in Dublin, Irish Life & Permanent plc --
http://www.irishlifepermanent.ie/-- is a provider of personal
financial services to the Irish market.  Its business segments
include banking, which provides retail banking services; insurance
and investment, which includes individual and group life assurance
and investment contracts, pensions and annuity business written in
Irish Life Assurance plc and Irish Life International, and the
investment management business written in Irish Life Investment
Managers Limited; general insurance, which includes property and
casualty insurance carried out through its associate, Allianz-
Irish Life Holdings plc, and other, which includes a number of
small business units.  On June 30, 2008, it acquired the rest of
the 50% interest in Joint Mortgage Holdings No. 1 Limited (the
parent of Springboard Mortgages Limited), resulting in Springboard
Mortgages becoming a wholly owned subsidiary.  On December 23,
2008, it acquired an additional 23% of Cornmarket Group Financial
Services Ltd, bringing its interest to 98%.

                       *     *     *

As reported by the Troubled Company Reporter-Europe on Feb. 12,
2010, Moody's Investors Service concluded the review on the
remaining hybrid debt instruments in Ireland, downgrading the
ratings on Irish Life & Permanent's Upper Tier 2 securities to Ba3
from Ba1, in line with its revised "Guidelines for Rating Bank
Hybrids and Subordinated Debt" published in November 2009.

These were the only rated bank hybrids in Ireland under review for
possible downgrade following the publication of the revised
guidelines.  This concludes the review for possible downgrade
initiated on November 18, 2009.  All other ratings of Irish Life &
Permanent, including its D BFSR, remain unchanged, together with
their negative outlook, in place since July 7, 2009.


MAGNOLIA FINANCE: Moody's Cuts Rating on Class A Notes to 'Caa3'
----------------------------------------------------------------
Moody's Investors Service has downgraded its rating of this class
of notes issued by Magnolia Finance VI plc Series 2007-23:

  -- Class A US$100,000,000 Alpaca Deferrable Interest CPPI Notes
     due 2018, Downgraded to Caa3; previously on April 8, 2008
     Downgraded to Caa2

US$80,000,000 of notes were cancelled previously, such that the
final cancellation affected US$20,000,000 of notes.  At the final
cancellation, the Noteholders received US$ 14,261,173 in cash.
Moody's views this cancellation as a distressed exchange given
that deferred interest won't be paid in the future.  The Caa3
rating is the result of the approximately 29% loss.  The rating
will subsequently be withdrawn.


TWEEDY GROUP: Fails to Secure Extension of Court Protection
-----------------------------------------------------------
The Irish Times reports that the High Court has refused to
continue court protection for the Waterford city-based Tweedy
Group of bars and nightclubs which has debts of EUR6.6 million.

The report relates Ms. Justice Mary Finlay Geoghegan ruled Friday
that survival schemes for the companies proposed by examiner Kevin
Hughes did not demonstrate a reasonable prospect of survival.

According to the report, the judge found the schemes did not
include a binding commitment to invest in the companies due to
issues over guarantees on loans given by the group's directors,
Robert Tweedy and his sister Anne.

The Tweedys had insisted they were prospective creditors because
they had provided guarantees on EUR8.2 million loans given by Bank
of Ireland to two of the group's companies, Eylewood Ltd and
Woodman Ltd., the report states.  The bank, the report says, was
also a secured creditor and was owed more than EUR6.6 million.

Eylewood trades as Muldoons Late Bar and Oxygen Nightclub while
Woodman trades as Woodman Bar and Ruby's Nightclub, both in
Waterford, the report discloses.

The report notes Ms. Justice Finlay Geoghegan said company law
cannot be construed as limiting the indemnity rights of the
Tweedys as guarantors of a company's debts.


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


ATLANTE FINANCE: Fitch Affirms Rating on Class C Notes at 'B'
-------------------------------------------------------------
Fitch Ratings has taken various rating actions with respect to
Atlante Finance S.r.l. as detailed in the table below.

  -- EUR538,879,932.50 class A notes (ISIN IT0004069032):
     downgraded to 'AA' from 'AAA'; removed from RWN; assigned
     Stable Outlook; assigned Loss Severity rating of 'LS-1'

  -- EUR28,800,000 class B notes (ISIN IT0004069040): affirmed at
     'A'; removed from RWN; assigned Stable Outlook; assigned 'LS-
     3'

  -- EUR136,800,000 class C notes (ISIN IT0004069057): affirmed at
     'B'; removed from RWN; assigned Negative Outlook; assigned
     'LS-2'

The notes were placed on RWN in August 2009 pending full analysis
after the implementation of Fitch's revised SME CDO rating
criteria for European granular corporate balance-sheet
securitizations.

The downgrade of the class A notes reflects the high obligor
concentration, with the largest ten obligors accounting for about
28% of the overall collateral pool, and the risk that the
characteristics of the top obligors may deviate from Fitch's
revised view on default probability, recovery and correlation
assumptions as detailed in the SME CDO rating criteria.  The class
A and B notes have been assigned Stable Outlooks due to increased
credit enhancement which has been supported by structural de-
leveraging.

The portfolio has amortized to 58.3% of the initial portfolio
size, or EUR807 million, from an initial pool of EUR1.4 billion as
of March 29, 2006.  Cumulative defaults have reached 4.83% of the
initial portfolio size, while delinquencies stand at 13.1% of the
current portfolio balance.  Defaulted loans and past-due principal
installments of delinquent loans are debited to the Principal
Deficiency Ledger, the balance of which is written down by
diverting excess spread from the portfolio to accelerate the pay
down of the notes in order of priority.  However, the amounts
debited to the PDL have grown significantly during 2009, while
available excess spread has not been large enough to clear its
debit balance, which currently stands at EUR26 million.

In the analysis of the SME pool, which accounts for about 62% of
the overall collateral portfolio, Fitch's view about the one year
probability of default benchmark applicable to Italian SMEs was
used to determine the portfolio's expected default rate.  However,
where assets were in arrears, adjustments were made to their PDs
in line with Fitch's SME criteria to reflect the relative increase
in risk.  From a recovery perspective, all the loans in the SME
pool are secured by economic first-ranking mortgages on real
estate assets with a weighted average LTV of 51%.  These assets
were treated as secured assets in the analysis with the recovery
rate linked to each loan's current LTV.

For the residential pool, which accounts for about 35% of the
overall portfolio, Fitch has estimated a stressed loss as
envisaged in its "EMEA RMBS Surveillance Criteria" and then
compared this loss with the current credit enhancement of the
notes to determine whether it could absorb the expected pool loss.

Looking forward Fitch expects structural de-leveraging to
continue, which will further increase credit enhancement available
to all rated classes of notes.  The local public entity pool has
experienced no defaults to date, and Fitch expects this positive
trend to continue.  The residential pool has experienced defaults
in line with expectations, and the current weighted average LTV of
50% combined with a 92% portion of first home mortgages securing
the loans do not suggest a performance concern.  A more volatile
behavior is to be expected from the SME pool in light of its high
single obligor concentration risk.  However, this is mitigated to
a large extent by the high credit enhancement levels of the rated
notes, particularly at the senior and mezzanine level.

The transaction is a cash flow securitization of an initial
EUR1.4 billion static pool of commercial mortgage loans granted to
Italian SMEs, residential mortgage loans granted to private
households in Italy and unsecured loans granted to Italian local
public entities.  Atlante Finance S.r.l.  is a limited liability
special purpose vehicle incorporated under the laws of Italy.

Fitch has assigned an Issuer Report Grade of Two Stars to Atlante
Finance S.r.l's payment and servicer reports.  An IRG of One Star
indicates poor report quality and an IRG of Five Stars represents
outstanding reports.  The Two Star rating reflects that basic
information is provided by the reports.  While the reports have
some characteristics of higher IRGs, they do not disclose single
obligor, industry or regional concentrations, counterparty rating
triggers and loan-to-value information.


ISLAND REFINANCING: Moody's Reviews 'Caa2'-Rated Class X Notes
--------------------------------------------------------------
Moody's Investors Service has placed on review for possible
downgrade these Notes issued by Island Refinancing S.r.l. (amounts
reflect initial outstandings):

  -- EUR62 million Class B - 2007 Asset-Backed Floating Rate
     Notes due 2025, Baa1 placed under review for possible
     downgrade; previously on 1 December 2008 downgraded to Baa1;

  -- EUR60 million Class C - 2007 Asset-Backed Floating Rate
     Notes due 2025, Ba2 placed under review for possible
     downgrade; previously on 1 December 2008 downgraded Ba2;

  -- EUR32 million Class D - 2007 Asset-Backed Floating Rate
     Notes due 2025, B1 placed under review for possible
     downgrade; previously on 1 December 2008 downgraded to B1;

  -- EUR46 million Class X - 2007 Asset-Backed Floating Rate
     Notes due 2025, Caa2 placed under review for possible
     downgrade; previously on 1 December 2008 downgraded to Caa2.

The Class A Note ratings were not affected by the rating action.
Moody's did not assign ratings to the Class E Notes and Class F
Notes.  The rating review action has been prompted by the slower
than expected collection rate observed in the securitized
portfolio backing the Notes.

1) Transaction Overview

This transaction represents the refinancing of two previous
securitizations, namely Island Finance (ICR4) S.p.A.  and Island
Finance 2 (ICR7) S.r.l.  The closing portfolio of Island
Refinancing consisted of claims over 4,952 non-performing business
plan credit lines secured by mortgages and by 2,872 non-performing
unsecured business plan credit lines.

The Notes' principal source of funds for payment of interest and
repayment of principal by their legal maturity date are the
proceeds arising from the work-out of the non performing claims --
mainly through court actions.  The portfolio of credit lines is
serviced by Pirelli RE Credit Servicing S.p.A through a master
servicing and special servicing agreement with the Issuer.
Portfolio performance is measured against a business plan as
updated from time to time by PRECS.  At the closing date of the
transaction, certain interest deferral triggers were set by
reference to an initial business plan (the "Initial Business
Plan") which contemplated on aggregate approximately
EUR672 million gross recovery proceeds from the portfolio over an
established timeframe.  A later business plan was provided by
PRECS in October 2008, which projected future collections to be
both higher, and more backloaded in timing than the Initial
Business Plan.

2) Transaction Performance Since Closing

The current portfolio of claims is on average, 10 years seasoned,
where seasoning is measured as the time since foreclosure
proceedings began on that credit line.  Of the December 2006
portfolio, which had a mortgage gross book value of
EUR1.601 billion, EUR1.371 billion remains, with regional
concentration : 93% in Sicily, 2.1% in Lazio, 1.7% in
Puglia/Basilicata and the remainder evenly spread across Southern
Italy.

The portfolio of mortgage claims are currently undergoing
different stages of enforcement as defined by PRECS (December 2006
percentages are provided in brackets): 32.6% (40.4%) is in auction
phase, 28.9% (19.4%) in the distribution phase, 15.0% (20.8%) in
documentary phase and first hearing and 6.6% (14.2%) in court
valuation phase.  The remainder of claims had their enforcement
proceedings suspended due to the agreement to other forms of
resolutions, but are not yet resolved.  Out of the current EUR
gross book value 462.77 million of mortgages in the distribution
phase, the courts are due to release EUR103.2 million but have not
yet done so.

In order to draw comparisons, as of July 2009, the net collections
for the previous 6 month collection period were EUR20.25 million
versus the Initial Business Plan of EUR65.96 million, and the 2008
business plan of EUR45.74 million.  In January 2010, net
collections for the prior 6 month period were EUR18.8 million
which compares with the Initial Business Plan of EUR59.9 million
(71% below) and the revised business plan of EUR55.0 (66% below).
On a cumulative basis, the net collections of EUR158.16 million
are 56.5% of the Initial Business Plan.

The slower than anticipated collection rate, has been mainly due
to a slowing down in the rate at which the regional courts of
Italy have been able to process legal enforcement claims, and to
release recovery amounts after the phases of auction have ended.
As a result, Moody's expects that a revised business plan will be
made available by PRECS over the next few months.

For the resolved claims, the net amounts collected on a claim-by-
claim basis, when compared with the Initial Business Plan have
been 106% of the initially predicted amount.

3) Rating Rationale

The rating review action has been prompted by the slower than
expected collection rate observed in the securitized portfolio
backing the Notes.  The timing of collections versus the Initial
Business Plan determines when the Notes interest deferral
mechanism is triggered.  Interest payments can be deferred for any
class of Notes provided it is not the most senior class of Notes
then outstanding.  The test to defer Class B Notes interest is met
when on two consecutive payment dates the cumulative net
collections as a percentage of the cumulative Initial Business
Plan collections for those dates are less than 60.0% (the
"Collection Target").  The Collection Target for the Class C Notes
is 75.0%, for the Class D Notes 83.0% and for the Class X Notes
95%.

Interest deferral is currently occurring on all but the Class B
Notes.  Moody's considers there to be an increased likelihood that
Class B Notes' interest will be deferred at the next interest
payment date in July 2010.  Amounts which are deferred are
channeled towards accelerating principal redemption of the most
senior class of Notes then outstanding, in this case, the Class A
Notes.

The effect of the deferral trigger combined with the slower than
anticipated collection rate, is that ratings of all but the most
senior class of Notes are adversely affected.  The average life of
the more junior classes of Notes increases, while the average life
of the most senior class of Notes decreases.  The diversion of
cash from the more junior class of Notes, towards turbo principal
redemption of the most senior class of Notes, is credit positive
for the most senior class of Notes.

As the collection rate slows down on the portfolio, the higher is
the potential for interest deferral being built up over time, and
consequently, the higher becomes the Notes' reliance on the
portfolio out-performing versus its Initial Business Plan in the
future.  The increased uncertainty about the timing of repayment
and the possibility of reduced profitability in the future has an
overall adverse impact on the outstanding ratings of the Notes.

As a consequence of this additional uncertainty, Moody's has
placed the ratings of the Class B Notes, the Class C Notes, the
Class D Notes and the Class X Notes on review for possible
downgrade.  The review will be concluded once Moody's has received
and reviewed the updated business plan from PRECS.


LOCAT SV: S&P Downgrades Rating on Class C Notes to 'B+'
--------------------------------------------------------
Standard & Poor's Ratings Services took various rating actions on
several Locat transactions.

Specifically S&P:

  -- Lowered and placed on CreditWatch negative its credit ratings
     on Locat SV S.r.l.'s series 2006 and series 2008 class C
     notes;

  -- Placed on CreditWatch negative its ratings on Locat SV's
     series 2005 class B and C notes, and the class B notes in
     series 2006 and series 2008; and

  -- Affirmed its ratings on Locat Securitization Vehicle 2
     S.r.l.'s class A and B notes, and the class A notes in Locat
     SV's series 2005, 2006, and 2008.

These rating actions follow a credit and cash flow analysis of
these transactions, the performance data contained in the latest
investor reports, and current levels of available credit
enhancement.

In all the transactions, the performance of the underlying
collateral has deteriorated due to the weak economic environment.
Defaults and delinquencies are increasing and the level of excess
spread in Locat SV's series 2005 and 2006 was insufficient to
clear the principal deficiency ledger over the past two interest
payment dates.  This resulted in an undercollateralization of
EUR11.8 million for series 2005 and EUR30.3 million for series
2006.

Due the current economic environment all the Locat transactions
are also experimenting with a structural increase in arrears
levels.  The current arrears levels are:

  -- 6.81% for Locat Securitisation Vehicle 2;
  -- 6.28% for Locat SV series 2005;
  -- 6.99% for Locat SV series 2006; and
  -- 9.37% for Locat SV series 2008.

All the Locat transactions feature a deferral mechanism of payment
of interest on the class B and C note to give additional
protection to the class A notes.  If the net cumulative default
ratio increases beyond a certain level, payment of interest on the
class B and C notes is subordinated to payment of principal on the
class A.

These are the interest deferral trigger cumulative default ratio
levels and the current performance of the transactions:

  -- 11% for class B in Locat Securitization vehicle 2, with a
     current net cumulative default at 2.44 % from 2.10% recorded
     on the previous IPD;

  -- 11.5% for class B and 6.5% for class C in Locat SV series
     2005, with a current net cumulative default at 2.85% from
     2.69% (for both classes) recorded in the previous IPD;

  -- 11.5% for class B and 6.5% for class C in Locat SV series
     2006, with a current net cumulative default at 4.01 % from
     3.39% (for both classes) recorded on the previous IPD; and

  -- 11.5% for class B and 6.5% for class C in Locat SV series
     2008, with a current net cumulative default at 2.87 % from
     1.41% (for both classes) recorded on the previous IPD

These rating actions are the result of the deterioration of the
transactions' performance, the current excess spread available,
and the current increases in the net cumulative defaults.

S&P conducted a cash flow analysis for all the listed
transactions, in which S&P ran a number of scenarios to test the
structures' ability to make timely payment of interest and
ultimate repayment of principal in every scenario.

                           Ratings List

        Ratings Lowered and Placed on Creditwatch Negative

                          Locat SV S.r.l.
   EUR1.973 Billion Asset-Backed Floating-Rate Notes Series 2006

                                Rating
                                ------
               Class     To                   From
               -----     --                   ----
               C         B+/Watch Neg         BBB

                          Locat SV S.r.l.
   EUR 2.489 Billion Asset-Backed Floating-Rate Notes Series 2008

                                Rating
                                ------
               Class     To                   From
               -----     --                   ----
               C         BB/Watch Neg         BBB

              Ratings Placed On Creditwatch Negative

                         Locat SV S.r.l.
     EUR2 Billion Asset-Backed Floating-Rate Notes Series 2005

                                Rating
                                ------
               Class     To                   From
               -----     --                   ----
               B         A/Watch Neg          A
               C         BBB/Watch Neg        BBB

                          Locat SV S.r.l.
   EUR1.973 Billion Asset-Backed Floating-Rate Notes Series 2006

                                Rating
                                ------
               Class     To                   From
               -----     --                   ----
               B         A/Watch Neg          A

                         Locat SV S.r.l.
   EUR 2.489 Billion Asset-Backed Floating-Rate Notes Series 2008

                                Rating
                                ------
               Class     To                   From
               -----     --                   ----
               B         A/Watch Neg           A

                         Ratings Affirmed

               Locat Securitisation Vehicle 2 S.r.l.
          EUR2.5 Billion Asset-Backed Floating-Rate Notes

                         Class     Rating
                         -----     ------
                         A         AAA
                         B         A

                         Locat SV S.r.l.
     EUR2 Billion Asset-Backed Floating-Rate Notes Series 2005

                         Class     Rating
                         -----     ------
                         A2        AAA

                         Locat SV S.r.l.
   EUR1.973 Billion Asset-Backed Floating-Rate Notes Series 2006

                         Class     Rating
                         -----     ------
                         A2        AAA

                         Locat SV S.r.l.
   EUR 2.489 Billion Asset-Backed Floating-Rate Notes Series 2008

                         Class     Rating
                         -----     ------
                         A1        AAA
                         A2        AAA


PARMALAT SPA: Prosecutors Want Stiffer Sentence for Tanzi
---------------------------------------------------------
Prosecutors for the Italian government have asked on February 10,
2010, for a stiffer sentence for Parmalat's founder and former
chief executive officer, Calisto Tanzi, the Agence France Presse
reports.

Mr. Tanzi was sentenced to 10 years in prison for securities-laws
violations, leading to Parmalat's collapse in 2003.  He is
currently appealing that conviction.  AFP reports that the
prosecutors told the appeal court that the term should be
increased to 11 years and one month.

Prosecutor Elena Maria Visconti has argued that Mr. Tanzi was the
"main actor (and) beneficiary" in the Parmalat fraud scandal, AFP
says, citing Italian news agencies as source.  The report also
says that the prosecutors also sought jail terms of between three
and five years for six other defendants that include three
officials of the Bank of America, who were acquitted by the lower
court.

                   About Parmalat S.p.A.

Headquartered in Milan, Italy, Parmalat S.p.A. --
http://www.parmalat.net/-- sells nameplate milk products
that can be stored at room temperature for months.  It also has
about 40 brand product lines, which include yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices.

The Company's U.S. operations filed for Chapter 11 protection on
February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139).  Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors.  When the U.S. Debtors filed
for bankruptcy protection, they reported more than US$200 million
in assets and debts.  The U.S. Debtors emerged from bankruptcy on
April 13, 2005.

Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on December 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases.  The Parma Court has declared the units
insolvent.

On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.

Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd.  Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A.  The Finance Companies are under
separate winding up petitions before the Grand Court of the Cayman
Islands.  Gordon I. MacRae and James Cleaver of Kroll (Cayman)
Ltd. serve as Joint Provisional Liquidators in the cases.  On
January 20, 2004, the Liquidators filed Sec. 304 petition, Case
No. 04-10362, in the United States Bankruptcy Court for the
Southern District of New York.  In May 2006, the Cayman Island
Court appointed Messrs. MacRae and Cleaver as Joint Official
Liquidators.  Gregory M. Petrick, Esq., at Cadwalader, Wickersham
& Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon,
Herlands Randolph, represent the Finance Companies in the Sec. 304
case.

The Honorable Robert D. Drain presided over the Parmalat Debtors'
U.S. cases.  On June 21, 2007, the U.S. Court granted Parmalat
permanent injunction.


PARMALAT SPA: Settles EUR1 Bil. PCF Claims
------------------------------------------
Parmalat has settled over one billion euros in claims made
against it by Parmalat Capital Finance (presently in liquidation
in the Cayman Islands).  Pursuant to the terms of the settlement,
Parmalat will allocate 5.6 million shares of stock already issued
to PCF and currently frozen by order of the Parma court.  Parmalat
will also issue 12.4 million new shares of stock to PCF and
release claims it had asserted against PCF in the Cayman Islands.

PCF will, in turn, release all of its claims against Parmalat and
assign to Parmalat its rights in a US$45 million debt from
Parmalat de Venezuela, together with certain other claims.

The assignment of the Parmalat de Venezuela debt means that
Parmalat now owns all debt and equity interests in Parmalat de
Venezuela.

The settlement is subject to approval by the Cayman Court
supervising the liquidation of PCF.

                   About Parmalat S.p.A.

Headquartered in Milan, Italy, Parmalat S.p.A. --
http://www.parmalat.net/-- sells nameplate milk products
that can be stored at room temperature for months.  It also has
about 40 brand product lines, which include yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices.

The Company's U.S. operations filed for Chapter 11 protection on
February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139).  Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors.  When the U.S. Debtors filed
for bankruptcy protection, they reported more than US$200 million
in assets and debts.  The U.S. Debtors emerged from bankruptcy on
April 13, 2005.

Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on December 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases.  The Parma Court has declared the units
insolvent.

On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.

Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd.  Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A.  The Finance Companies are under
separate winding up petitions before the Grand Court of the Cayman
Islands.  Gordon I. MacRae and James Cleaver of Kroll (Cayman)
Ltd. serve as Joint Provisional Liquidators in the cases.  On
January 20, 2004, the Liquidators filed Sec. 304 petition, Case
No. 04-10362, in the United States Bankruptcy Court for the
Southern District of New York.  In May 2006, the Cayman Island
Court appointed Messrs. MacRae and Cleaver as Joint Official
Liquidators.  Gregory M. Petrick, Esq., at Cadwalader, Wickersham
& Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon,
Herlands Randolph, represent the Finance Companies in the Sec. 304
case.

The Honorable Robert D. Drain presided over the Parmalat Debtors'
U.S. cases.  On June 21, 2007, the U.S. Court granted Parmalat
permanent injunction.


PARMALAT SPA: Creditors Convert Warrants for 107,277 Shares
-----------------------------------------------------------
Parmalat S.p.A. said February 24 that, following the allocation of
shares to creditors of the Parmalat Group, the subscribed and
fully paid up share capital has now been increased by 12,985,810
euros to 1,727,300,338 euros from 1,714,314,528 euros.  The share
capital increase is due to the exercise of 107,277 warrant and to
the allocation of 12,878,533 shares.

    [The latest status of the share allotment is]:

    -- 35,726,611 shares representing approximately 2.1% of the
       share capital are still in a deposit account c/o Parmalat
       S.p.A., of which:

       * 25,295,947 or 1.5% of the share capital, registered in
         the name of individually identified commercial
         creditors, are still deposited in the intermediary
         account of Parmalat S.p.A. centrally managed by Monte
         Titoli (compared with 12,897,953 shares as at
         January 29, 2010);

       * 10,430,664 or 0.6% of the share capital registered in
         the name of the Foundation -- Fondazione Creditori
         Parmalat -- of which:

          (i) 120,000 shares representing the initial share
              capital of Parmalat S.p.A. (unchanged);

         (ii) 10,310,664 or 0.6% of the share capital that
              pertain to currently undisclosed creditors
              (compared with 10,499,597 shares as at January 29,
              2010).

At January 29, Parmalat S.p.A. said that following the allocation
of shares to creditors of the Parmalat Group, the subscribed and
fully paid up share capital has now been increased by 1,674,665
euros to 1,714,314,528 euros from 1,712,558,142 euros.

                   About Parmalat S.p.A.

Headquartered in Milan, Italy, Parmalat S.p.A. --
http://www.parmalat.net/-- sells nameplate milk products
that can be stored at room temperature for months.  It also has
about 40 brand product lines, which include yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices.

The Company's U.S. operations filed for Chapter 11 protection on
February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139).  Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors.  When the U.S. Debtors filed
for bankruptcy protection, they reported more than US$200 million
in assets and debts.  The U.S. Debtors emerged from bankruptcy on
April 13, 2005.

Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on December 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases.  The Parma Court has declared the units
insolvent.

On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.

Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd.  Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A.  The Finance Companies are under
separate winding up petitions before the Grand Court of the Cayman
Islands.  Gordon I. MacRae and James Cleaver of Kroll (Cayman)
Ltd. serve as Joint Provisional Liquidators in the cases.  On
January 20, 2004, the Liquidators filed Sec. 304 petition, Case
No. 04-10362, in the United States Bankruptcy Court for the
Southern District of New York.  In May 2006, the Cayman Island
Court appointed Messrs. MacRae and Cleaver as Joint Official
Liquidators.  Gregory M. Petrick, Esq., at Cadwalader, Wickersham
& Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon,
Herlands Randolph, represent the Finance Companies in the Sec. 304
case.

The Honorable Robert D. Drain presided over the Parmalat Debtors'
U.S. cases.  On June 21, 2007, the U.S. Court granted Parmalat
permanent injunction.


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


BTA BANK: Restructuring Receives Recognition in U.S.
----------------------------------------------------
Anvar Saidenov, the chairman of JSC BTA Bank, said that on March 2
the U.S. Bankruptcy Court for the Southern District of New York
entered an order granting BTA's application for recognition under
Chapter 15 of its current restructuring proceeding in Kazakhstan
as a "foreign main proceeding".

This order imposes a stay on, among other things, any proceedings
against BTA or against its property in the U.S.

BTA Bank earlier said a court in Kiev, Ukraine, on February 17
issued a ruling "recognizing" the legitimacy of its debt
restructuring process.  BTA Bank also said Dec. 22 the High Court
of Justice of England and Wales recognized the bank's
restructuring, giving the bank a suspension of proceedings against
its assets.

                          About BTA Bank

BTA Bank AO (BTA Bank JSC), formerly Bank TuranAlem AO --
http://bta.kz/-- is a Kazakhstan-based financial institution,
which is involved in the provision of banking and financial
products for private and corporate clients.

The BTA Group is one of the leading banking groups in the
Commonwealth of Independent States and has affiliated banks in
Russia, Ukraine, Belarus, Georgia, Armenia, Kyrgyzstan and Turkey.
In addition, the Bank maintains representative offices in Russia,
Ukraine, China, the United Arab Emirates and the United Kingdom.
The Bank has no branch or agency in the United States, and its
primary assets in the United States consist of balances in
accounts with correspondent banks in New York City.

As of 30 November 2009 the Bank employed 5,043 people inside and 4
people outside Kazakhstan. It has no employees in the United
States.  Most of the Bank's assets, and nearly all its tangible
assets, are located in Kazakhstan.

JSC BTA Bank, also known as BTA Bank of Kazakhstan, filed for
Chapter 15 bankruptcy protection in New York on Feb. 4, 2010
(Bankr. S.D.N.Y. Case No. 10-10638), listing more than US$1
billion in both assets and debt.

BTA Bank wants the Bankruptcy Court in Manhattan to enter an order
recognizing the voluntary judicial restructuring proceeding that
was initiated by the bank in the Specialized Financial Court of
Almaty City in Kazakhstan and opened pursuant to an Oct. 16, 2009
decision of the Financial Court, as a foreign main proceeding
pursuant to 11 U.S.C. Secs. 1515 and 1517.

BTA Bank is represented in the Chapter 15 proceedings by White &
Case LLP.


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


BERNARD MADOFF: LuxAlpha Investors Can't Sue UBS, E&Y Directly
--------------------------------------------------------------
Brooke Masters and Stanley Pignal at The Financial Times report
that the Luxembourg Commercial Court has ruled that victims of the
Bernard Madoff scandal who invested through the US$1.4 billion
LuxAlpha fund set up by UBS cannot sue the Swiss bank and auditor
Ernst & Young directly.

According to the FT, a judge said on Thursday in a test case
involving 10 investors they must file claims via the liquidators
of the Luxembourg-based fund.

The FT relates more than 100 lawsuits have been filed against UBS,
which served as custodian for the LuxAlpha fund, claiming it
neglected its duties by delegating control of the assets to Mr.
Madoff.

The FT notes lawyers said the 27-page ruling is a blow to the
investors because it limits their ability to recover assets from
UBS as individuals and is likely to make it harder for them to
press their claims that they were misled as to the nature of the
fund.

                      About Bernard L. Madoff

Bernard L. Madoff Investment Securities LLC and Bernard L.
Madoff orchestrated the largest Ponzi scheme in history, with
losses topping US$50 billion.

On December 15, 2008, the Honorable Louis A. Stanton of the
U.S. District Court for the Southern District of New York granted
the application of the Securities Investor Protection Corporation
for a decree adjudicating that the customers of BLMIS are in need
of the protection afforded by the Securities Investor Protection
Act of 1970.  The District Court's Protective Order (i) appointed
Irving H. Picard, Esq., as trustee for the liquidation of BLMIS,
(ii) appointed Baker & Hostetler LLP as his counsel, and (iii)
removed the SIPA Liquidation proceeding to the Bankruptcy Court
(Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.).

On April 13, 2009, former BLMIS clients filed an involuntary
Chapter 7 bankruptcy petition against Bernard Madoff (Bankr.
S.D.N.Y. 09-11893).  The case is before Hon. Burton Lifland.  The
petitioning creditors -- Blumenthal & Associates Florida General
Partnership, Martin Rappaport Charitable Remainder Unitrust,
Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert
$64 million in claims against Mr. Madoff based on the balances
contained in the last statements they got from BLMIS.

On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff
Securities International Limited in London under bankruptcy
protection pursuant to Chapter 15 of the U.S. Bankruptcy Code
(Bankr. S.D. Fla. 09-16751).

The Chapter 15 case was later transferred to Manhattan.  In June
2009, Judge Lifland approved the consolidation of the Madoff SIPA
proceedings and the bankruptcy case.

Judge Denny Chin of the U.S. District Court for the Southern
District of New York on June 29, 2009, sentenced Mr. Madoff to
150 years of life imprisonment for defrauding investors in
United States v. Madoff, No. 09-CR-213 (S.D.N.Y.)


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


PANTHER CDO: Fitch Affirms Ratings on Class III Notes at 'CCC'
--------------------------------------------------------------
Fitch Ratings has affirmed all three classes of Panther CDO I
B.V.'s notes, as detailed below.

  -- Class I (XS0124334763) affirmed at 'AAA'; Outlook Stable;
     Loss Severity Rating 'LS-1'

  -- Class II (XS0124334847) affirmed at 'BB'; Outlook Negative;
     'LS-3'

  -- Class III (XS0124335497) affirmed at 'CCC'

Panther I currently has two defaulted assets that represent 2.7%
of the target par amount of the transaction.  In addition, 8.7% of
the portfolio is rated 'CCC' or lower.  Panther I has exited its
re-investment period and any principal proceeds are used to redeem
class I notes.  As a result, 47% of class I's original balance has
been redeemed.  Following the continuous de-leveraging of the
transaction, the class I, II and III notes have been affirmed.

Looking forward, some of the underlying structured finance sector
assets may experience negative rating migration.  However, within
the transaction's diverse portfolio of corporate and structured
finance assets, Fitch believes that the leveraged loans portion of
the portfolio is most likely to cause the credit profile of the
transaction to deteriorate.  This view is based on the 'CCC' and
below rated bucket being primarily composed of leveraged loans.
From a structural view, Fitch expects the transaction to continue
to delever and for the class I notes to benefit from increasing
over-collateralization.  In addition, as there are no ratings-
based haircuts applied to the notional balance of the obligations
for the purpose of calculating the over-collateralization ratios
and given the current OC level, the agency believes the
transaction's under-collateralization event of default trigger is
unlikely to be breached.

The agency has assigned an Issuer Report Grade of "satisfactory"
(three stars) to the transaction.  The reporting characteristics
that helped the transaction earn an IRG of "satisfactory" include
reports that are produced on a monthly basis and provide coverage
test calculation steps.  Reporting characteristics that prevent
the transaction from earning an IRG higher than "satisfactory"
include the under-collateralization EOD trigger not being
provided.

Fitch employed its global rating criteria for corporate CDOs and
global criteria for SF CDOs to analyze the quality of the
underlying assets.  In accordance with the agency's cash flow
analysis criteria, Fitch also modeled the transaction's priority
of payments, including relevant structural features such as the
excess spread-trapping mechanism and coverage tests.


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


CONSUMO BANCAJA: Fitch Junks Rating on Class C Notes From 'BB+'
---------------------------------------------------------------
Fitch Ratings has downgraded the senior and mezzanine note
tranches issued by Consumo Bancaja 1 - Fondo de Titulizacion de
Activos.  Two of the downgraded tranches have Negative Outlooks.
The downgrades have mainly been driven by a further deterioration
in the pool performance as a result of Spain's ongoing economic
downturn.

The rating actions are:

  -- EUR199.8 million class A notes: downgraded to 'AA' from
     'AAA'; Outlook Negative, 'LS-1'

  -- EUR14.7 million class B notes: downgraded to 'A' from 'AA-';
     Outlook Negative; Loss Severity rating revised to 'LS-2' from
     'LS-3'

  -- EUR19.2 million class C notes: downgraded to 'CCC' from
     'BB+'; assigned Recovery Rating of 'RR3'

  -- EUR12.9 million class D notes: affirmed at 'CC'; Recovery
     Rating revised to 'RR6' from 'RR4'

The collateral is backed by a mixed pool of unsecured consumer and
auto loans with assets primarily concentrated in the Spanish
region of Valencia, representing approximately 73% of the pool at
end 2009, making it more vulnerable to the economic crisis in the
country.

Asset performance has continued to worsen since the previous
review in July 2009 with current gross defaults, as percentage of
the remaining pool, registering 8.8% in December 2009.  As a
result of the low recoveries achieved to date, the net loss rate
reached 7.9% at YE2009.  The transaction has to continue relying
on drawing from the reserve fund to cover the extent of the loan
losses that can not be offset by the guaranteed excess spread in
the structure.  As of November 2009, the reserve had a remaining
balance of EUR4.57 million compared with EUR12.9 million at
closing.  The credit enhancement of the junior tranche has been
weakened as a consequence of the continuing decline in the
reserve.

Fitch has revised its assumptions on the expected defaults and
recoveries in its forecast model to reflect the current loss
severity incorporating the current delinquency trend.  Various
scenarios have been assessed with different stresses applied for
the next 18 months.  The expected default rate of 7% of the
remaining collateral, has been applied, and in each case
recoveries of 15% to 25% have been assumed.  The expected losses
will be compared with the current available credit enhancement at
each rating level in accordance with Fitch's 'EMEA Consumer ABS
Rating Criteria'.  Although the defaults and recoveries are the
key factors driving the rating actions, other factors such as
collateral composition, pool de-leveraging and the prepayment rate
have also been taken into account.

The class C and D notes have been assigned with a Recovery Rating
that is commensurate with its current expected losses which may or
may not be recovered by the notes final legal maturity date.


CONSUMO BANCAJA: Fitch Corrects Press Release on Ratings
--------------------------------------------------------
Fitch Ratings has revised the Loss Severity rating of the class B
notes to 'LS-3' from 'LS-2' and not as previously stated.

Fitch Ratings has downgraded the senior and mezzanine note
tranches issued by Consumo Bancaja 1 - Fondo de Titulizacion de
Activos.  Two of the downgraded tranches have Negative Outlooks.
The downgrades have mainly been driven by a further deterioration
in the pool performance as a result of Spain's ongoing economic
downturn.

The rating actions are:

  -- EUR199.8 million class A notes: downgraded to 'AA' from
     'AAA'; Outlook Negative, 'LS-1'

  -- EUR14.7 million class B notes: downgraded to 'A' from 'AA-';
     Outlook Negative; Loss Severity rating revised to 'LS-3' from
     'LS-2'

  -- EUR19.2 million class C notes: downgraded to 'CCC' from
     'BB+'; assigned Recovery Rating of 'RR3'

  -- EUR12.9 million class D notes: affirmed at 'CC'; Recovery
     Rating revised to 'RR6' from 'RR4'

The collateral is backed by a mixed pool of unsecured consumer and
auto loans with assets primarily concentrated in the Spanish
region of Valencia, representing approximately 73% of the pool at
end 2009, making it more vulnerable to the economic crisis in the
country.

Asset performance has continued to worsen since the previous
review in July 2009 with current gross defaults, as percentage of
the remaining pool, registering 8.8% in December 2009.  As a
result of the low recoveries achieved to date, the net loss rate
reached 7.9% at YE2009.  The transaction has to continue relying
on drawing from the reserve fund to cover the extent of the loan
losses that can not be offset by the guaranteed excess spread in
the structure.  As of November 2009, the reserve had a remaining
balance of EUR4.57 million compared with EUR12.9 million at
closing.  The credit enhancement of the junior tranche has been
weakened as a consequence of the continuing decline in the
reserve.

Fitch has revised its assumptions on the expected defaults and
recoveries in its forecast model to reflect the current loss
severity incorporating the current delinquency trend.  Various
scenarios have been assessed with different stresses applied for
the next 18 months.  The expected default rate of 7% of the
remaining collateral, has been applied, and in each case
recoveries of 15% to 25% have been assumed.  The expected losses
will be compared with the current available credit enhancement at
each rating level in accordance with Fitch's 'EMEA Consumer ABS
Rating Criteria'.  Although the defaults and recoveries are the
key factors driving the rating actions, other factors such as
collateral composition, pool de-leveraging and the prepayment rate
have also been taken into account.

The class C and D notes have been assigned with a Recovery Rating
that is commensurate with its current expected losses which may or
may not be recovered by the notes final legal maturity date.


EMPRESAS HIPOTECARIO: Fitch Affirms 'C' Rating on Class D Notes
---------------------------------------------------------------
Fitch Ratings has affirmed all five tranches of Empresas
Hipotecario TDA CAM 5, Fondo de Titulizacion de Activos following
a satisfactory performance review.

The transaction is a collateralized debt obligation of loans to
Spanish small- and medium-sized enterprises originated by Caja de
Ahorros del Mediterraneo (rated 'A-'/'F2'/Stable).

The rating actions are:

  -- Class A2 (ISIN ES0330877012) affirmed at 'A+'; Outlook
     Stable; 'LS-1'

  -- Class A3 (ISIN ES0330877020) affirmed at 'A+'; Outlook Stable
     'LS-2'

  -- Class B (ISIN ES0330877038) affirmed at 'BB'; Outlook
     Negative 'LS-1'

  -- Class C (ISIN ES0330877046) affirmed at 'CCC'

  -- Class D (ISIN ES0330877053) affirmed at 'C'

The rating affirmation reflects the increasing credit enhancement
on the senior and mezzanine notes, the transaction's stabilizing
delinquency trend and the slight improvement in the reserve fund
balance as of the last payment date on the February 26, 2010.

The rating review was prompted by a further erosion of the reserve
fund balance from the level observed at the last rating review and
a spike in loan delinquencies in November 2009.

At the payment date in November 2009, the reserve fund had
decreased to EUR5.4 million from EUR7 million, falling further
below its required minimum amount of EUR30.8 million.

At the same time, total delinquencies had significantly increased
to 29% of the outstanding balance in November 2009 from 14% in
October 2009, driven by short-term delinquencies (loans in arrears
for less than one month).  However, more than three quarters of
short-term delinquencies cured during the following month
resulting in a drop of total delinquencies in December 2009 to
17%, and further reducing to 12% in January 2010.  The more
significant figure of loans in arrears for more than 90+ days
exhibited a less volatile, but similar pattern with an increase to
3.6% in November 2009 from 3.1% in October 2009, and a subsequent
decrease to 2.3% in December 2009 and decline to 1.7% in January
2010.

Defaults increased to 2.9% of the initial portfolio balance from
2.2% over the same horizon October 2009 to January 2010, but Fitch
deems the pipeline for further defaults to be limited now due to
the stabilization of the delinquencies.

At the most recent payment date in February 2010, the reserve fund
did not deteriorate any further, but recovered slightly to
EUR5.5 million.  Coupled with the further amortization of the
class A2 balance (now at 58% of its initial balance), credit
enhancement has increased to 14.1% from 11.4% in October 2009 for
the class A2 and A3 notes and to 6.5% from 5.4% for class B.
Credit enhancement for class C remains minimal with 0.7%.  Class
D' s repayment is entirely dependent on the reserve fund being
fully restored by the final maturity.  The class D notes do not
presently receive any interest payments.  As of the last payment
date, the accrued interest totaled EUR3.6 million.  Due to the
high level of reserve fund erosion, coupled with the level of
delinquencies observed and the limited amount of excess spread in
the transaction, Fitch deems the full repayment of class D notes
to be unlikely.

Fitch has assigned an Issuer Report Grade of two stars to TDA CAM
5's investor reports.  An IRG of one star indicates poor report
quality and an IRG of five stars represents outstanding reports.
The two star rating reflects that basic information is provided by
the report.  While TDA CAM 5's reports do have several
characteristics of higher IRGs, the reports are lacking
counterparty information, the pro-rata trigger test and provide
only limited detail regarding the priority of payments.


LA SEDA: To Use U.K. Insolvency Scheme to Refinance Debt
--------------------------------------------------------
Ana Garcia, Christopher Bjork and Ainsley Thomson at EFE Dow Jones
report that La Seda de Barcelona SA on March 2 said more than 75%
of its creditors had agreed to a lockup agreement that allows the
loss-making company to use a scheme of arrangement, a U.K. court-
supervised insolvency tool, to refinance its debt.

According to the report, the company is trying to get its lenders
to agree to the restructuring of EUR600 million of its debt by
converting EUR150 million into equity, extending the maturity of
EUR250 million by eight years, and the remaining EUR200 million by
five years.

The report relates a La Seda spokeswoman said the syndicated loan
was signed in London in June 2006, allowing the company to employ
the U.K. "scheme of arrangement" clause.  Under Spanish law, the
company would need all creditors to agree to refinance for a deal
to go ahead, the report notes.

The report says a scheme of arrangement requires the consent of
75% of a company's creditors rather than the traditional 100%.

According to the report, La Seda said in a press release that it
expects a U.K. Court to approve the scheme of arrangement soon.

In addition to the refinancing, La Seda plans to raise EUR300
million by selling new shares in the company to its creditors.
Banks are expected to hold 41% of the company's equity following
this deal, the report states.

La Seda de Barcelona SA -- http://www.laseda.es/-- is a Spain-
based company primarily engaged in the the production and
marketing of plastics and textiles.  The Company is structured in
six business divisions: PET, PTA, Chemical, Packaging,
Technological and PET Recycling.  The PET division is active in
the manufacturing of PET polymers.  The unit operates under the
brand name Artenius and has production plants mainly in Spain,
Portugal, Italy, Greece, Turkey, Romania and the United Kingdom.
PTA and Chemical divisions are engaged respectively in the
production of polyesters as well as ethylene oxide and glycols,
among others.  Packaging division produces materials for
packaging, mainly for food and beverages sectors.  PET Recycling
division is dedicated to the area of biofuels and Technological
division operates in the area of the rights licenses and patents.
La Seda de Barcelona SA is a parent company of Grupo Seda.  The
Company's main subsidiaries are Slir SL, Petrolest SL and Artenius
Prat PET SL, among others.


MADRID ACTIVOS: Moody's Junks Rating on Class D Notes From 'B2'
---------------------------------------------------------------
Moody's Investors Service has taken these rating actions on four
classes of notes issued by Madrid Activos Corporativos I Fondo de
Titulizacion de Activos.

  -- EUR1342M Class A (current balance EUR 686,628,395),
     Downgraded to A1; previously on Oct 1, 2009 Downgraded to Aa1
     and Remained On Review for Possible Downgrade

  -- EUR120.25M Class B, Downgraded to Baa3; previously on Oct 1,
     2009 Downgraded to A3 and Remained On Review for Possible
     Downgrade

  -- EUR86.8M Class C, Downgraded to B2; previously on Oct 1, 2009
     Downgraded to Ba1 and Remained On Review for Possible
     Downgrade

  -- EUR36M Class D, Downgraded to Caa2; previously on Oct 1, 2009
     Downgraded to B2 and Remained On Review for Possible
     Downgrade

There is no rating change for the EUR96,750,000 Class E Notes
currently rated Caa3.  The transaction is a balance sheet cash CLO
of a static EUR1,026.4 million pool of Spanish and French
corporate loans which closed in February 2008, and whose notes
were downgraded and left on watch for possible further downgrade
on October 1, 2009.  A reserve fund of EUR106.8 million
established at closing provides subordination for the issued
notes.

The rating action incorporates updated information on the assets
in the portfolio, which reflects deterioration in the credit
quality of the portfolio as measured by the estimated WARF of 2540
as at December 2009 compared to a WARF of 1147 at closing.  Assets
rated Caa1 or lower comprise 25% of the portfolio and are the main
driver of the Caa2 rating of Class D and Caa3 rating of the Class
E notes.

The portfolio has significant sectoral and obligor concentrations.
Only 4 assets (17.1% by value) have public ratings, the credit
quality of 7 assets (52.1% by value) is obtained through Credit
Estimates, while 23 assets (28.7% by value) are mapped from KMV
RiskCalc data, with the balance 2.1% being cash.  In terms of
Moody's rating methodology paper "Updated Approach to the Usage of
Credit Estimates in Rated Transactions" published October 2009,
Moody's have applied the stress test for concentrated pools.
Accordingly, the largest credit estimates representing 30% of the
pool were subject to a two notch haircut, and the notched down
credit estimates were used in the models and methodology employed
for the rating of the transaction.  The December 2009 portfolio
data also reveals that one asset in the construction and building
sector representing 1.3% of the total portfolio was in arrears for
both interest and principal and Moody's are advised that these
arrears have not to date been repaid.  In Moody's analysis Moody's
have considered this asset as defaulted.


PRISA: Inks US$900 Mil. Merger Deal with Liberty Acquisition
------------------------------------------------------------
Mark Mulligan and Andrew Edgecliffe-Johnson at The Financial
Times report that Prisa has secured an injection of up to
US$900 million under a merger deal with Liberty Acquisition, a
US-listed special purpose acquisition company run by Nicolas
Berggruen and Martin Franklin.

According to the FT, the deal will see the 70% stake held by the
Polanco family and its affiliates cut in half.

Prisa, the FT says, will take control of Liberty Acquisition
through a share swap.

Prisa would be listed as American depositary receipts on the New
York exchange, the FT notes.

The FT relates the group plans to offer new shares, at a 12.5%
discount to the value of the Liberty deal, to minority
shareholders representing about 30% of the existing capital.

Prisa, which owns the Santillana publishing house, has been under
stress since it was forced to buy all of Sogecable, its TV holding
group, just before the financial crisis hit, driving up the cost
of corporate debt, the FT relates.

"The deal with Liberty will allow Prisa to consolidate its
financial situation," the FT quoted Juan Luis Cebrian, chief
executive, as saying.

The FT recalls Prisa has reached a deal with seven banks to extend
until 2013 a EUR1.8-billion bridge loan used to buy out Sogecable
minorities.

Citing the FT, the Troubled Company Reporter-Europe reported Feb.
25, 2010, that Prisa was in talks with foreign investors about
selling a large stake to help pay down net debts of about EUR4.9
billion (US$6.6 billion).   The FT noted pressure from lenders has
forced the group to sell stakes in most of its business divisions,
including a total of 44% of the pay-TV business Digital Plus to
Mediaset, the Italian media group controlled by Silvio Berlusconi,
and Telefonica, the Spanish telecommunications group.  According
to the FT, while the company had concluded its divestment program,
it would continue the debt restructuring as it sought to "develop
a stable capital structure in the medium and long-term".

PRISA (Promotora de Informaciones, S.A), (BMAD: PRS) --
http://www.prisa.es/-- is a media conglomerate and the biggest
publisher in Spain.  The group was founded in 1972 by Jesus de
Polanco.


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


SAS AB: Mulls Convertible Bond Issue to Refinance US$280MM Debt
---------------------------------------------------------------
Nicholas Vinocur at Reuters reports that SAS AB said on Friday it
was to seek shareholder approval to refinance US$280 million of
debt through a convertible bond issue.

Reuters notes SAS, half-owned by Denmark, Norway and Sweden, said
a refinancing of bonds maturing this year was one of the criteria
that key shareholders had stipulated for supporting a planned
rights issue.

According to Reuters, the airline said conditions in the
convertible bond market were favorable and it would seek approval
for the debt rollover at its annual general meeting on April 7.

Reuters recalls last month, SAS called on shareholders for a
SEK5 billion (US$700 million) rights issue to keep it flying after
one of the worst years ever for the aviation industry.  All three
Nordic governments which supported the right issue in February
have said they would sell their stake if a suitable buyer came
along once the group was back on its feet, Reuters relates.

SAS AB -- http://www.sasgroup.net/-- is a Sweden-based company,
engaged in the air transport services.  It is a parent company
within SAS Group, which operates within two business areas.  The
Core SAS segment encompasses airline services in the Nordic
countries, as well as intercontinental flights through SAS
Scandinavian Airlines, as well regional airlines in Norway through
Wideroe and in Finland through Blue1.  The SAS Individual Holdings
segment comprises operations of Estonian Air, bmi, All Cargo,
Skyways, Air Greenland, Spirit and Trust.  SAS AB's fleet
encompasses ten planes.  In addition, the Company offers ground
handling services and technical maintenance for the aircraft, as
well as air freight solutions and cargo capacity on passenger
aircraft, purely cargo aircraft and cargo handling.  The Group is
also involved in the trainings within the technical aviation
field.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Feb. 15,
2010, Moody's Investors Service lowered to Caa2 from Caa1 the
Probability of Default Rating of SAS AB.  At the same time, the
Caa1 Corporate Family Rating, the Caa2 Probability of Default
Rating and the Caa3 subordinate ratings are placed under review
for possible downgrade.

Moody's said the rating action follows the company's weakened
results for the final quarter of 2009, with reported pre-tax
income before exceptional items falling to negative SEK940 million
from negative SEK289 million the prior year, on account of
continued yield pressure, which has further weakened liquidity.
The rating action also reflects Moody's view that the company's
announcement that it intends to refinance or extend its bond
maturities in 2010 could potentially classify as a distressed
exchange under Moody's definition.


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


EUROBANK TEKFEN: Moody's Reviews 'Ba1' Long-Term Global Rating
--------------------------------------------------------------
Moody's Investors Service has placed on review for downgrade the
Ba1 long-term global local currency deposit rating of Eurobank
Tekfen A.S. (Turkey).  Eurobank Tekfen's other ratings remain
unaffected by this action.

This rating action is the direct result of Moody's placing the C-
(mapping into a baseline credit assessment "BCA" of Baa1)
financial strength rating of the EFG Eurobank Ergasias on review
for down grade.  EFG is Eurobank Tekfen A.S.'s controlling
shareholder with 70% ownership.  For further details on the rating
actions on parent bank EFG, refer to Moody's press release dated
March 3, 2009.

Moody's indicated that Eurobank's Ba1 (with a stable outlook) GLC
deposit rating incorporates its standalone strength (BCA of Ba3 --
mapped from the BFSR of D-), and benefits from two-notch uplift
due to imputed parental support from EFG.  The uplift is a result
of Moody's assessment of a high probability of parental support
from EFG given Eurobank Tekfen's integral role in the group's
franchise and earnings performance.


The review for downgrade of Eurobank Tekfens GLC indicates that
any downward rating action on its parent's BFSR (which is the
imputed parental support from EFG) would lead to the reduction of
the number of notch uplift provided on Eurobank Tekfen's GLC
deposit rating from its BCA.

Moody's adds that Eurobank A.S. has adequate liquidity, even
though the bank operates at comfortable liquidity ratios with
loans to deposits at 68% and liquid assets to total assets of
33.5% (as of Q3-2009) and is not a concern.  EFG share of total
deposits in Eurobank Tekfen is 3.9%.  Furthermore, the bank has
unutilized diversified funding sources, which should ensure that
its liquidity remains sound going forward.

This rating action was taken:

  -- Eurobank Tekfen AS: the Ba1 with stable outlook long-term
     local currency deposit rating was placed on review for
     downgrade.  Its other ratings were unaffected.

The last rating action on Eurobank Tekfen A.S. was implemented on
January 8, 2010, when the long-term foreign currency deposit
rating was upgraded to Ba3 from B1.  Its other ratings were
unaffected.


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


BRITISH AIRWAYS: Must Conclude Cabin Crew Talks by Tuesday
----------------------------------------------------------
BBC News reports that the TUC says talks aimed at averting strike
action by British Airways cabin crew must conclude by the end of
Tuesday.

According to BBC, the TUC, which is chairing the meetings, has set
the deadline for the "close of play" on Tuesday, March 9.

BBC says should talks end without a resolution and the union
decide to name strike dates immediately, industrial action could
begin as early as Tuesday March 16.

"Extensive talks have been taking place over the last seven weeks
under the chairmanship of TUC general secretary Brendan Barber in
an attempt to resolve the current dispute between British Airways
and Unite cabin crew," TUC said in a statement Friday, according
to BBC.  "On the initiative of Brendan Barber, both Unite and
British Airways have now committed to the objective of completing
these negotiations by close of play on Tuesday 9 March to
determine whether or not a mutually acceptable settlement can be
achieved."

As reported by the Troubled Company Reporter-Europe on Feb. 24,
2010, Bloomberg News said BA's 12,000 cabin crew voted in favor of
a walkout in a dispute over staffing levels.  Bloomberg disclosed
the Unite union on Feb. 22 said almost 81% of those voting at BA
backed a stoppage, with the turnout at 79%.  According to
Bloomberg, BA Chief Executive Officer Willie Walsh is at
loggerheads with flight attendants after cutting crew levels
without union agreement.  The carrier aims to trim costs after
posting a GBP245-million (US$379 million) loss in the nine months
ended Dec. 31, 2009, Bloomberg said.

                       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.


CRYSTAL PALACE: Has to Pay GBP1 Mil. Ground Rent Next Month
-----------------------------------------------------------
Owen Gibson at The Observer reports that Crystal Palace will have
to pay an unforeseen one-off charge of GBP1 million on their
ground next month.

The report notes it is understood that the administrator in charge
of the freehold of the ground, PricewaterhouseCoopers, has
rejected calls from its counterpart overseeing the club for the
charge -- effectively a deferred payment from when the previous
owner, Simon Jordan, signed up to the lease -- to be waived.

The report says because the administrator, Brendan Guilfoyle, of
P&A Partners, is working on a tight budget to see the club through
to the end of the season, the payment on top of the GBP1.2 million
a year rent could prove pivotal.

According to the report, PwC is believed to have come to an
agreement with Mr. Guilfoyle to reduce the rent on the ground to a
more market-friendly rate.  It was feared that the punitive rent
on the stadium would put off potential purchasers, the report
states.

The report recalls on Feb. 26, Mr. Guilfoyle announced that he
planned to extend the closing date for bidders to March 12,
claiming that he had received 36 expressions of interest.

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

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


EMI GROUP: Sungate Files Suit v. Citigroup Over Buyout Deal
-----------------------------------------------------------
James Quinn at The Daily Telegraph reports that Colorado-based
Sungate Securities, which has US$2 million (GBP1.3 million)
invested with Terra Firma, has filed a lawsuit in New York
accusing the Citigroup of hiding conflicts of interest it had
during the GBP4 billion deal to sell EMI Group.

According to the report, Sungate's lawsuit also accuses the bank
of encouraging Terra Firma, Guy Hands' private equity house, to
buy the music company.

Terra Firma's deal to buy EMI was reliant on funding from
Citigroup, which now holds approximately GBP2.5 billion of EMI
debt as the music company's financial position has worsened.

Meanwhile, late on Thursday, a hearing into Citigroup's request to
move its pending trial with Terra Firma from New York to London
ended without conclusion, the report relates.  A decision on venue
is expected in April, the report says.

                        Going Concern Doubt

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

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


MANCHESTER UNITED: Receives Two Offers From Potential Buyers
------------------------------------------------------------
Red Knights, the wealthy financiers raising funds from Manchester
United fans to bid for the football club, has received two offers
from individuals, each promising GBP500 million to the pool, Roger
Blitz at The Financial Times reports, citing people close to the
situation.

The FT relates said one person with knowledge of the situation
said in its campaign to wrest control of the club from the Glazer
family and put it in the hands of the fans, Red Knights want to
ensure that any successful bid would be beneficial across social
income groups.

Red Knights also issued a statement to damp speculation about the
size of bid they were expected to put before the Glazers, the FT
notes.

"No specific discussions have been held in relation to the value
of Manchester United, and all numbers circulating in the media are
purely speculation," the Red Knights said, according to the FT.
"People are talking about putting their own money in and are only
going to do so if it's a fair and reasonable price -- every penny
over a fair price that goes to the Glazers in profit is less money
that can be spent on putting the club on a sound financial
footing."

The size of the bid will depend on how many supporters are
prepared to commit funds, the FT says.

As reported by the Troubled Company Reporter-Europe on March 3,
2010, BBC Sport said a group of financiers -- dubbed the "Red
Knights" -- has met to discuss a billion-pound takeover of
Manchester United.  According to BBC Sport, Goldman Sachs
economist Jim O'Neill, who was acting in a personal capacity,
lawyer Mark Rawlinson and financier Keith Harris were at the
meeting.  A spokesman for the Glazers told BBC Sport: "United is
not for sale."

United is owned by the Glazer family, but the club's high level of
debt -- now at GBP716.5 million -- has prompted much unease, BBC
Sport noted.

Manchester United Limited -- http://www.manutd.com/-- operates
Manchester United Football Club, one of the most popular and
successful soccer teams in the world.  Man U is currently the top
soccer team the UK's Premier League, boasting 18 championships and
11 FA Cup titles.  Manchester United generates revenue primarily
through ticket sales at venerable Old Trafford stadium, as well as
through broadcasting rights and sales of Red Devils merchandise.
Man U was founded as Newton Heath in 1878 before changing its name
in 1902.  It is owned by American tycoon Malcolm Glazer, whose
holdings include the Tampa Bay Buccaneers NFL team and a majority
stake in Zapata.


PACKAGING SCOTLAND: In Administration; KPMG On Board
----------------------------------------------------
Jill Park at Packaging News reports that Packaging Scotland has
entered administration.

The report relates Mark Simpson of KPMG in Glasgow has been
appointed administrator.

It is as yet unclear as to why the company entered administration
and what the plans are for the business, the report notes.

Based in Cumbernauld, Packaging Scotland is a supplier of tape,
foam, stretch films, air cushion, Flopak, bubble, void fill and
all types of polythene, corrugated paper, edge protection and
strapping lines, according to Packaging News.


RANK GROUP: S&P Changes Outlook to Stable; Affirms 'B+' Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
outlook on U.K. gaming operator The Rank Group PLC to stable from
negative.  At the same time, S&P affirmed the 'B+' long-term
corporate credit rating and 'B' senior unsecured debt ratings on
the group.

"The outlook revision reflects Rank's progress in deleveraging,
such that lease-adjusted net debt to EBITDA fell to 4.6x in 2009
from 5.0x in 2008," said Standard & Poor's credit analyst Philip
Temme.  "In addition, the group has announced a revised financial
policy targeting unadjusted net debt to EBITDA of about 2.5x,
compared with its former target of 3.5x-4.0x."

Nonetheless, its substantial portfolio of operating leases makes
it likely that the group will retain a relatively aggressive
capital structure, in S&P's view.  Rank will resume paying modest
dividends from May 2010 and intends to move to dividend coverage
of 3.0x over time.

Group sales rose 3.0% in 2009, with top-line growth in both Mecca
Bingo and Grosvenor Casinos, but lease-adjusted EBITDA fell 4.4%,
largely as a result of adverse gaming taxation changes.  (Duty on
club-based bingo was raised from 15% to 22% in 2009, at an
annualized cost to Rank of GBP6 million, although the duty is set
to drop to 20% from 2010.)  Despite positive developments in
footfall, growth in spend-per-visit at Mecca, the installation of
additional B3 gaming machines, and tight cost and capital spending
controls, the group's lease-adjusted EBITDA margin fell to 20.6%
in 2009 from 21.5% in 2008 (although changes in value-added tax
{VAT} accounted for some of this margin erosion).  S&P anticipates
margins will remain under pressure from challenging operating
conditions for U.K. consumer-facing businesses in 2010.

Lower cash tax (after legacy tax losses) and interest charges in
2009 helped the company report positive cash flows and contributed
to a 17% fall in reported net debt during 2009.  Lease-adjusted
earnings before interest, taxes, depreciation, amortization, and
rent fixed-charge coverage improved to 2.4x from 2.0x.

Rank booked a GBP59.1 million gross VAT refund in 2008 in respect
of interval bingo and anticipates receiving up to GBP35.0 million
(plus interest) for a separate claim for interval bingo VAT during
2010.  Other claims for a combined amount of up to GBP42 million
plus interest have also been lodged.  Although VAT Tribunal and
High Court cases have gone in the group's favor, U.K. tax
authority appeals against these repayments will be heard by the
Court of Appeal shortly.  S&P anticipates that significant
contingent tax assets and liabilities will remain outstanding for
some years and in the meantime intend to focus on Rank's credit
metrics excluding these items.

The stable outlook reflects Rank's recent improved operating
performance and the group's commitment to a less aggressive
financial policy.  Although weak U.K. consumer confidence and the
adverse gaming taxation changes already announced will likely
continue to weigh on performance, tight cost controls and low cash
tax and interest charges should enable the group to continue to
maintain positive operating cash flows and to remain within its
banking covenants.

Contingent tax assets and liabilities are likely to have a
significant impact on future credit metrics.  S&P does not
anticipate any short-term final resolution of ongoing tax
litigation and anticipate that the company will seek to ring-fence
any further tax refunds received, to guard against future adverse
legal developments.

S&P views lease-adjusted leverage of less than 5.5x and the
maintenance of adequate liquidity and covenant headroom as
consistent with the 'B+' rating.  S&P is unlikely to consider
upgrading Rank unless adjusted debt to EBITDA approaches 4.0x and
adjusted EBITDA interest coverage exceeds 3.0x, excluding cash
balances arising from tax refunds which may be repayable to the
U.K. tax authorities.


READER'S DIGEST: UK Arm Attracts Almost 100 Potential Buyers
------------------------------------------------------------
Rupert Neate at The Daily Telegraph reports that almost 100
potential buyers approached the administrators of Reader's Digest
Association Inc.'s UK unit, Reader's Digest Association, Ltd.,
after it collapsed last month.

According to the report, Moore Stephens, the accountants appointed
to manage the affairs of the 72-year-old magazine, said at least
25 of the offers were from "potential buyers with a clear and
credible interest".

The administrators have confirmed that the April edition of the
magazine will be published later this month, the report notes.

As reported by the Troubled Company Reporter-Europe on Feb. 18,
2010, Reader's Digest Association, Ltd., commenced an
administration proceeding in the UK.  The decision by the RDA UK
board to place the UK company into an orderly insolvency process
follows the recent decision by the UK Pensions Regulator that it
would not support an agreement already reached between RDA UK, the
trustees of its pension plan and the UK Pension Protection Fund to
settle a longstanding pension plan liability.

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

              About The Reader's Digest Association

RDA is a global multi-brand media and marketing company that
educates, entertains and connects audiences around the world.  The
company builds multi-platform communities based on branded
content.  With offices in 44 countries, it markets books,
magazines, and music, video and educational products reaching a
customer base of 130 million in 78 countries.  It publishes 94
magazines, including 50 editions of Reader's Digest, the world's
largest-circulation magazine, operates 65 branded Web sites
generating 22 million unique visitors per month, and sells
40 million books, music and video products across the world each
year.  Its global headquarters are in Pleasantville, N.Y.

Reader's Digest said that as of June 30, 2009, it had total assets
of US$2.2 billion against total debts of US$3.4 billion.

Reader's Digest, together with its 47 affiliates, filed for
Chapter 11 on August 24, 2010 (Bankr. S.D.N.Y. Case No. 09-23529).
Kirkland & Ellis LLP served as general restructuring counsel.
Mallet-Prevost, Colt & Mosle LLP was tapped as conflicts counsel.
Ernst & Young LLP served as auditor.  Miller Buckfire & Co, LLC,
served as financial advisor.  AlixPartners, LLC, served as
restructuring consultant.  Kurtzman Carson Consultants served as
notice and claims agent.

The Official Committee of Unsecured Creditors tapped BDO Seidman,
LLP, as financial advisor, Trenwith Securities, LLP, as investment
banker and Otterbourg, Steindler, Houston & Rosen, P.C., as
counsel.

The U.S. Bankruptcy Court confirmed RDA's Chapter 11 plan on
January 15, 2010.  On February 1, RDA elected to temporarily delay
emergence from Chapter 11 to allow additional time for the UK
pension issue to be addressed.  RDA ultimately emerged from
Chapter 11 on February 22.

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


SWAYFIELDS LIMITED: In Administration; PwC On Board
---------------------------------------------------
Ian Green, Rob Hunt and Ed Macnamara of PricewaterhouseCoopers LLP
were appointed joint administrators to Swayfields Limited and
Swayfields Extra MSA Holdings Limited (the Group) on Friday,
March 5, 2010.

The Group, headquartered in Lincoln with an annual turnover of
approximately GBP13 million, operates 11 roadside service areas
(six motorway service areas, two trunk-road service areas and
three forecourts) across England.  The individual sites are not
subject to any insolvency process and are continuing to trade as
normal.

Ian Green, joint administrator and partner at PwC, said: "The
Group has successfully expanded its operations significantly over
recent years but at a Group level has struggled to service its
increasing debt commitments.  Consequently, with limited options
available to it, the Group has sought the protection of
Administration to enable a restructuring and re-financing of its
profitable operations to be pursued.

"Our immediate priority now is to review all options and
immediately seek a buyer for the shares of the operating
companies. We are confident of a sale being completed with
minimal, if any, impact on the operating sites.  While a buyer for
the shares is sought, we expect the operating sites to continue to
trade profitably.  We will look to work with the Groups existing
management team, suppliers, employees and customers to try and
find a solution to take the business forward.


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


* Fitch Says EMEA Capital Goods Sector to Remain Resilient
----------------------------------------------------------
Fitch Ratings says in a special report released that credit
ratings across the EMEA capital goods sector are forecast to
remain broadly stable during the remainder of 2010.  Credit
profiles of Fitch-rated issuers should remain resilient despite an
expectation that end-market demand will remain historically weak
during 2010 and 2011.

"Although economic conditions remain difficult, recently published
full-year 2009 results have underlined the resilience of Europe's
larger capital goods' manufacturers," said Ewan Macaulay, Director
in Fitch's Industrial Team.  "Fitch expects this resilience to
continue during the rest of 2010, supported by issuers' strong
business profiles, ongoing cost cutting, healthy cash generation,
conservative credit metrics, and solid liquidity profiles."

There are clear signs emerging that many capital goods end-markets
have now troughed following severe weakness in 2009.  Credit
profiles across the sector may gain further support in 2010/11
should this stabilization transform into a fully-fledged recovery.
However, macroeconomic conditions remain the key uncertainty
facing the sector.  Although not Fitch's central assumption,
economic conditions could worsen again during 2010/11, and
depending on the severity, could create a degree of ratings
pressure.

Even if, as expected, economic conditions continue to slowly
improve during the rest of 2010, Fitch does not expect all capital
goods sub-sectors to recover simultaneously.  A quicker recovery
is expected for capital goods companies exposed to short-cycle
markets, producing high-value-added products and with a low
exposure to public-sector customers.  Manufacturers with
considerable exposure to high-growth emerging markets should also
benefit in 2010.  Conversely, companies with a sizable exposure to
troubled construction markets and/or those reliant on reduced
order books may experience a slower recovery in sales than their
peers.

Fitch also notes that a clear divergence in credit trends has
emerged between larger and smaller capital goods manufacturers.
Although larger players continue to exhibit stability, smaller
players have struggled, experiencing far greater falls in sales
and profitability during 2009.  Fitch expects that credit trends
within the largely unrated small- and medium-sized segment of the
capital goods universe will continue to be more negative than in
the upper-end of the sector in 2010, reflecting the less
diversified nature of these companies, their weaker market
positions, and reliance on highly-rationed bank financing.

Fitch's EMEA capital goods rating universe incorporates Siemens AG
('A+'/ Stable); Royal Philips Electronics NV ('A-'/Stable);
Schneider Electric SA ('A-'/Rating Watch Negative); ABB Ltd
('BBB+'/Positive); Legrand SA ('BBB'/Stable); AB Electrolux ('BBB-
'/Stable); GEA Group Aktiengesellschaft ('BBB-'/Stable); Arcelik
('BB-'/Positive) and Vestel Elekronik AS ('B'/Stable).


* BOND PRICING: For the Week March 1 to March 5, 2010
-----------------------------------------------------

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

AUSTRIA
-------
HAA-BANK INTL AG        5.250  10/27/2015       EUR   74.75
KOMMUNALKREDIT          4.900   6/23/2031       EUR   67.75
KOMMUNALKREDIT          4.440  12/20/2030       EUR   64.38
OESTER VOLKSBK          5.450    8/2/2019       EUR   59.88
OESTER VOLKSBK          5.270    2/8/2027       EUR   95.61
RAIFF ZENTRALBK         4.500   9/28/2035       EUR   90.10
REPUBLIC OF AUST        2.516  10/10/2025       EUR   75.54

BELGIUM
-------
FORTIS BANK             8.750   12/7/2010       EUR   20.22

BULGARIA
--------
PETROL AD-SOFIA         8.375  10/26/2011       EUR   47.55

CZECH REPUBLIC
--------------
CZECH REPUBLIC          2.750   1/16/2036       JPY   75.26

DENMARK
-------
DANMARK SKIBSKRD        2.000  11/15/2024       DKK   74.33
TRYG FORSIKRING         4.500  12/19/2025       EUR   74.08

FINLAND
-------
MUNI FINANCE PLC        0.500   3/17/2025       CAD   49.32
MUNI FINANCE PLC        0.250   6/28/2040       CAD   22.18
MUNI FINANCE PLC        0.500   9/24/2020       CAD   63.64
MUNI FINANCE PLC        1.000  10/30/2017       AUD   65.48
MUNI FINANCE PLC        1.000  11/21/2016       NZD   71.74
MUNI FINANCE PLC        1.000   2/27/2018       AUD   64.36
STORA ENSO OYJ          7.250   4/15/2036       USD   74.05

FRANCE
------
AIR FRANCE-KLM          4.970    4/1/2015       EUR   15.10
ALCATEL SA              4.750    1/1/2011       EUR   16.17
ALCATEL-LUCENT          5.000    1/1/2015       EUR    3.48
ALTRAN TECHNOLOG        6.720    1/1/2015       EUR    4.94
ATOS ORIGIN SA          2.500    1/1/2016       EUR   52.38
CALYON                  6.000   6/18/2047       EUR   44.10
CAP GEMINI SOGET        3.500    1/1/2014       EUR   43.85
CAP GEMINI SOGET        1.000    1/1/2012       EUR   43.85
CLUB MEDITERRANE        4.375   11/1/2010       EUR   49.11
CMA CGM                 5.500   5/16/2012       EUR   61.33
CMA CGM SA              7.250    2/1/2013       USD   63.23
DEXIA MUNI AGNCY        4.680    3/9/2029       CAD   74.33
DEXIA MUNI AGNCY        1.000  12/23/2024       EUR   61.40
EURAZEO                 6.250   6/10/2014       EUR   58.31
FAURECIA                4.500    1/1/2015       EUR   19.99
GROUPE VIAL             2.500    1/1/2014       EUR   18.79
MAUREL ET PROM          7.125   7/31/2014       EUR   18.32
NEXANS SA               4.000    1/1/2016       EUR   64.88
PEUGEOT SA              4.450    1/1/2016       EUR   30.71
PUBLICIS GROUPE         3.125   7/30/2014       EUR   36.05
PUBLICIS GROUPE         1.000   1/18/2018       EUR   45.97
RHODIA SA               0.500    1/1/2014       EUR   44.15
SOC AIR FRANCE          2.750    4/1/2020       EUR   20.80
SOITEC                  6.250    9/9/2014       EUR   11.76
TEM                     4.250    1/1/2015       EUR   57.29
THEOLIA                 2.000    1/1/2014       EUR   13.89
VALEO                   2.375    1/1/2011       EUR   46.46
ZLOMREX INT FIN         8.500    2/1/2014       EUR   35.00
ZLOMREX INT FIN         8.500    2/1/2014       EUR   34.50

GERMANY
-------
DEPFA PFANDBRIEF        6.759   2/22/2019       EUR   65.39
DEUTSCHE BK LOND        1.000   3/31/2027       USD   43.56
ESCADA AG               7.500    4/1/2012       EUR   17.74
EUROHYPO AG             5.000   5/15/2027       EUR   93.73
HSH NORDBANK AG         4.375   2/14/2017       EUR   66.01
HYPOREAL INTL AG        4.675   9/13/2021       EUR   73.55
HYPOREAL INTL AG        4.560   3/28/2021       EUR   73.70
HYPOREAL INTL AG        4.770   8/11/2021       EUR   74.42
L-BANK FOERDERBK        0.500   5/10/2027       CAD   44.53
LB BADEN-WUERTT         5.250  10/20/2015       EUR   34.06
LB BADEN-WUERTT         2.500   1/30/2034       EUR   66.33
QIMONDA FINANCE         6.750   3/22/2013       USD    5.25
RENTENBANK              1.000   3/29/2017       NZD   71.58
SOLON AG SOLAR          1.375   12/6/2012       EUR   31.66
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   72.60
HELLENIC REPUB          3.000   4/30/2019       JPY   71.22
YIOULA GLASSWORK        9.000   12/1/2015       EUR   55.56
YIOULA GLASSWORK        9.000   12/1/2015       EUR   54.00
AMDOCS LIMITED          0.500   3/15/2024       USD   75.00

HUNGARY
-------
REP OF HUNGARY          2.110  10/26/2017       JPY   72.49

IRELAND
-------
ALLIED IRISH BKS        5.625  11/29/2030       GBP   69.76
ALLIED IRISH BKS        5.250   3/10/2025       GBP   68.64
DEPFA ACS BANK          5.125   3/16/2037       USD   72.80
DEPFA ACS BANK          0.500    3/3/2025       CAD   31.52
DEPFA ACS BANK          4.900   8/24/2035       CAD   63.27
DEPFA ACS BANK          5.125   3/16/2037       USD   74.32
IRISH NATIONWIDE       13.000   8/12/2016       GBP   75.07
IRISH PERM PLC          7.284   2/15/2035       EUR   59.04
UT2 FUNDING PLC         5.321   6/30/2016       EUR   69.77

ITALY
-----
BANCA INTESA SPA        6.984    2/7/2035       EUR   57.88

LUXEMBOURG
----------
ARCELORMITTAL           7.250    4/1/2014       EUR   35.38
BREEZE                  4.524   4/19/2027       EUR   84.68
GLOBAL YATIRIM H        9.250   7/31/2012       USD   69.63
HELLAS III              8.500  10/15/2013       EUR   46.25
IT HOLDING FIN          9.875  11/15/2012       EUR   17.48
LIGHTHOUSE INTL         8.000   4/30/2014       EUR   67.76
LIGHTHOUSE INTL         8.000   4/30/2014       EUR   68.10
NELL AF SARL            8.375   8/15/2015       EUR   22.58

NETHERLANDS
-----------
AI FINANCE B.V.        10.875   7/15/2012       USD   66.88
APP INTL FINANCE       11.750   10/1/2005       USD    0.01
ARPENI PR INVEST        8.750    5/3/2013       USD   63.63
ARPENI PR INVEST        8.750    5/3/2013       USD   64.18
ASTANA FINANCE          7.875    6/8/2010       EUR   24.00
ASTANA FINANCE          9.000  11/16/2011       USD   23.97
BK NED GEMEENTEN        0.500   6/27/2018       CAD   71.90
BK NED GEMEENTEN        0.500   2/24/2025       CAD   48.74
BLT FINANCE BV          7.500   5/15/2014       USD   69.75
BLT FINANCE BV          7.500   5/15/2014       USD   70.38
BRIT INSURANCE          6.625   12/9/2030       GBP   71.46
DGS INTL FIN BV        10.000    6/1/2007       USD    0.01
ELEC DE CAR FIN         8.500   4/10/2018       USD   62.25
EM.TV FINANCE BV        5.250    5/8/2013       EUR    5.19
IVG FINANCE BV          1.750   3/29/2017       EUR   66.08
NATL INVESTER BK       25.983    5/7/2029       EUR   39.48
NED WATERSCHAPBK        0.500   3/11/2025       CAD   48.94
Q-CELLS INTERNAT        5.750   5/26/2014       EUR   51.07
Q-CELLS INTERNAT        1.375   2/28/2012       EUR   51.27
RBS NV EX-ABN NV        6.000   3/16/2035       EUR   70.69
RBS NV EX-ABN NV        7.540   6/29/2035       EUR   76.88
TEMIR CAPITAL           9.000  11/24/2011       USD   28.47
TEMIR CAPITAL           9.500   5/21/2014       USD   29.00
TEMIR CAPITAL           9.500   5/21/2014       USD   29.00
TURANALEM FIN BV        8.250   1/22/2037       USD   38.23
TURANALEM FIN BV        8.250   1/22/2037       USD   37.85
TURANALEM FIN BV        7.875    6/2/2010       USD   37.50
TURANALEM FIN BV        8.500   2/10/2015       USD   37.62
TURANALEM FIN BV        8.000   3/24/2014       USD   37.10
TURANALEM FIN BV        6.250   9/27/2011       EUR   37.47
TURANALEM FIN BV        7.750   4/25/2013       USD   36.58

NORWAY
------
EKSPORTFINANS           0.500    5/9/2030       CAD   37.91
NORSKE SKOGIND          7.000   6/26/2017       EUR   66.64

POLAND
------
POLAND GOVT BOND        3.300   6/16/2038       JPY   72.51
POLAND-REGD-RSTA        2.810  11/16/2037       JPY   63.25
REP OF POLAND           2.620  11/13/2026       JPY   72.98
REP OF POLAND           2.648   3/29/2034       JPY   65.62
REP OF POLAND           3.220    8/4/2034       JPY   73.99

SPAIN
-----
BANCAJA EMI SA          2.755   5/11/2037       JPY   66.58
COMUN AUTO CANAR        3.900  11/30/2035       EUR   73.84
GENERAL DE ALQUI        2.750   8/20/2012       EUR   57.16
MINICENTRALES           4.810  11/29/2034       EUR   64.41

SWEDEN
------
SWEDISH EXP CRED        0.500  12/17/2027       USD   48.33

SWITZERLAND
-----------
CYTOS BIOTECH           2.875   2/20/2012       CHF   56.50
UBS AG JERSEY           9.500   8/31/2010       USD   65.45
UBS AG JERSEY          10.000  10/25/2010       USD   65.25
UBS AG JERSEY          13.900   1/31/2011       USD   36.49
UBS AG JERSEY          14.640   1/31/2011       USD   38.93
UBS AG JERSEY          10.000   2/11/2011       USD   61.42
UBS AG JERSEY          15.250   2/11/2011       USD   12.37
UBS AG JERSEY          16.170   1/31/2011       USD   13.89
UBS AG JERSEY          12.800   2/28/2011       USD   35.35
UBS AG JERSEY          11.330   3/18/2011       USD   18.23
UBS AG JERSEY           8.250   2/28/2011       USD   68.94
UBS AG JERSEY          10.990   3/31/2011       USD   30.20
UBS AG JERSEY          16.160   3/31/2011       USD   44.82
UBS AG JERSEY          10.820   4/21/2011       USD   22.16
UBS AG JERSEY          11.400   3/18/2011       USD   25.45
UBS AG JERSEY          10.650   4/29/2011       USD   16.22
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          10.360   8/19/2011       USD   53.59
UBS AG JERSEY          11.030   4/21/2011       USD   21.50
UBS AG JERSEY           9.350   9/21/2011       USD   67.10
UBS AG JERSEY           9.000   6/11/2010       USD   58.52
UBS AG JERSEY           3.220   7/31/2012       EUR   58.05
UBS AG JERSEY           9.000   5/18/2010       USD   59.82
UBS AG JERSEY           9.000    7/2/2010       USD   58.80
UBS AG JERSEY           9.000   7/19/2010       USD   58.60
UBS AG JERSEY           9.350   7/27/2010       USD   59.25
UBS AG JERSEY           9.000   8/13/2010       USD   63.50
UBS AG JERSEY          11.150   8/31/2011       USD   37.74

UNITED KINGDOM
--------------
ALPHA CREDIT GRP        2.940    3/4/2035       JPY   66.72
BANK OF SCOTLAND        6.984    2/7/2035       EUR   71.00
BARCLAYS BK PLC        11.650   5/20/2010       USD   47.04
BARCLAYS BK PLC         7.610   6/30/2011       USD   54.15
BARCLAYS BK PLC        10.600   7/21/2011       USD   42.09
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   16.25
BROADGATE FINANC        5.098    4/5/2033       GBP   74.38
EFG HELLAS PLC          2.760   5/11/2035       JPY   68.76
ENTERPRISE INNS         6.875    5/9/2025       GBP   80.56
ENTERPRISE INNS         6.500   12/6/2018       GBP   85.18
ENTERPRISE INNS         6.375   9/26/2031       GBP   73.70
F&C ASSET MNGMT         6.750  12/20/2026       GBP   67.32
GLOBAL CROSS FIN       10.750  12/15/2014       USD  103.25
HBOS PLC                4.500   3/18/2030       EUR   71.54
INEOS GRP HLDG          7.875   2/15/2016       EUR   70.38
INEOS GRP HLDG          7.875   2/15/2016       EUR   68.33
LOUIS NO1 PLC          10.000   12/1/2016       EUR   71.92
NATL GRID GAS           1.771   3/30/2037       GBP   45.44
NATL GRID GAS           1.754  10/17/2036       GBP   46.84
NBG FINANCE PLC         2.755   6/28/2035       JPY   68.25
NOMURA BANK INTL        0.800  12/21/2020       EUR   61.17
NORTHERN ROCK           5.750   2/28/2017       GBP   52.55
NORTHERN ROCK           9.375  10/17/2021       GBP   64.97
OJSC BANK NADRA         9.250   6/28/2010       USD   25.50
PUNCH TAVERNS           6.468   4/15/2033       GBP   70.73
ROYAL BK SCOTLND        4.700    7/3/2018       USD   73.00
ROYAL BK SCOTLND        7.472    6/9/2025       EUR   74.51
ROYAL BK SCOTLND        4.243   1/12/2046       EUR   61.44
RSL COMM PLC            9.875  11/15/2009       USD    3.00
SPIRIT ISSUER           5.472  12/28/2028       GBP   72.27
TXU EASTERN FNDG        6.750   5/15/2009       USD    3.13
TXU EASTERN FNDG        6.450   5/15/2005       USD    0.02
UNIQUE PUB FIN          7.395   3/28/2024       GBP   75.81
UNIQUE PUB FIN          5.659   6/30/2027       GBP   78.43
UNIQUE PUB FIN          6.464   3/30/2032       GBP   63.26
WESSEX WATER FIN        1.369   7/31/2057       GBP   21.11


                            *********

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

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

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

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

                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *