TCREUR_Public/100324.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Wednesday, March 24, 2010, Vol. 11, No. 058

                            Headlines



A U S T R I A

WIENERBERGER AG: S&P Downgrades Corporate Credit Ratings to 'BB'


G E R M A N Y

DEUTSCHE LUFTHANSA: Pilots to Strike in April 13 After Talks Fail
ESCADA AG: Admin. Claims Bar Date Set for March 31
ESCADA AG: Restated C. Marques Employment Pact Approved
ESCADA AG: U.S. Trustee Wants EUSA Case Converted to Ch. 7
ESCADA AG: U.S. Unit's Motion to Enforce Sale Order on 717 GFC

FLEETSTREET FINANCE: S&P Junks Rating on Class C Notes From BBB
HEIDELBERGCEMENT AG: May Miss 2010 Investment-Grade Rating Goal


I R E L A N D

FERGUS HAYNES: BoSI Seeks EUR8.4 Mil. Summary Judgment v. Owner
HOUSE OF EUROPE: Moody's Cuts Ratings on Class A1 Notes to 'B1'
KEELAGH HOMES: EBS Sued By Businessman Over Loss of Investment


L U X E M B O U R G

LUXEMBOURG INVESTMENT: Liquidators Sue UBS and Ernst & Young


N E T H E R L A N D S

BETULA FUNDING: Fitch Affirms Rating on Class A Notes at 'B'


N O R W A Y

EITZEN MARITIME: Secures Covenant Waiver on NOK400 Mil. Loan


R O M A N I A

* ROMANIA: Suppliers Recover Less From Insolvent Companies
* ROMANIA: Lawyers Feel Thawing of M&A Activity, DLA Piper Says


R U S S I A

* RUSSIAN REPUBLIC OF SAKHA: S&P Affirms BB- Rtng; Outlook Stable


S P A I N

BBVA LEASING: Moody's Junks Ratings on Two Classes of Notes


S W E D E N

FORD MOTOR: Deal to Sell Volvo to Geely May Be Signed on Sunday
GENERAL MOTORS: Spyker Wins US$1.2MM tax Credit for Michigan HQ


U K R A I N E

KB IPOBANK: Faces Liquidation Following Temporary Administration


U N I T E D   K I N G D O M

GAC ENGINEERING: Cash Flow Problems Prompt Administration
GENERAL MOTORS: Nears Deal with Renault to Secure Luton Future
HIT ENTERTAINMENT: Lenders Waive Covenant Test on US$579MM Debt
ICAP PLC: To Shutter Unprofitable Equities Sales & Research Unit
NEUROPHARM PLC: Mulls Liquidation on Lack of NPL-2008 Funding

NORTEL NETWORKS: Court Won't Certify Stay Order on UK Proceeding
PORTSMOUTH FOOTBALL: Chainrai to Waive Right to Advance TV Money

* UK: Business Insolvencies Down 15% Year-On-Year in February


X X X X X X X X

* EUROPE: EU Should Consider "Burden Sharing" on Bank Failures




                         *********



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


WIENERBERGER AG: S&P Downgrades Corporate Credit Ratings to 'BB'
----------------------------------------------------------------
Standard & Poor's Ratings Services said it had lowered its long-
term corporate credit ratings on Austria-based brick manufacturer
Wienerberger AG to 'BB' from 'BB+'.  The 'B' short-term ratings
were affirmed, and the outlook remains negative.  At the same
time, S&P lowered its rating on Wienerberger's hybrid bond to 'B'
from 'B+', and its rating on its unsecured bond to 'BB' from
'BB+'.

The downgrade and negative outlook reflect S&P's revised forecasts
for Wienerberger, which include its assumptions of below-par
credit metrics in 2009, and risks to a timely recovery of credit
metrics to levels S&P feels commensurate with the 'BB' rating,
such as funds from operations to debt of about the high-teens to
20% range.

Given weak fourth-quarter trading in many of Wienerberger's key
markets, S&P anticipates that its funds from operations generation
will be significantly more reduced than initially anticipated.
This will likely result in the FFO-to-debt ratio dropping
significantly below the low- to mid-teens range S&P envisaged
previously at year-end 2009, despite a sizable reported net debt
reduction of about EUR480 million to about EUR410 million.  This
is very weak for the 'BB' rating category and significantly below
S&P's initial expectations.

Nevertheless, S&P's rating assessment also takes into
consideration its belief that Wienerberger's balance sheet should
remain sound and that the FFO-to-debt ratio should improve in
2010.  This is based on S&P's anticipation that Wienerberger's
management will continue to focus on protecting cash flow
generation and limiting spending in 2010.  In addition, S&P thinks
that the several measures taken to date, including cost cutting,
covenant renegotiations, and debt maturity extensions, will
continue to support liquidity and underpin cash flow ratios.

The negative outlook reflects the potential for further ratings
downside if Wienerberger's key cash flow metrics were to remain
below the level S&P views as commensurate for the 'BB' rating for
a prolonged period.  This could happen in the event of broad price
disruptions and/or if key Eastern European markets continue to
fall rapidly this year.  At this stage, S&P does not anticipate
this worst-case scenario to occur, but difficult trading
conditions in the first months of 2010 and an uncertain market
outlook could continue to put pressure on the ratings which is
also reflected in the negative outlook.

S&P could revise the outlook to stable if S&P see evidence of
Wienerberger's credit metrics rebounding in the short term to
sustainable levels that are commensurate with the 'BB' rating
category.  This could include an improvement in the FFO-to-debt
ratio to about 20%.  While such a scenario could occur quickly if
markets recover -- given the group's noticeable operating leverage
-- S&P currently does not believe such a recovery is likely to be
felt before the end of 2010 at the earliest.


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


DEUTSCHE LUFTHANSA: Pilots to Strike in April 13 After Talks Fail
-----------------------------------------------------------------
Ralph Atkins at The Financial Times reports that Deutsche
Lufthansa AG faces a fresh four-day pilots strike in April.
According to the FT, Vereinigung Cockpit, the German pilots' trade
union, announced it would restart industrial action after the
failure of talks on future job security.  The FT relates the union
said its action would start on April 13.

The FT says a shutdown of the airline's services would cost at
least EUR25 million a day.

The FT recalls Cockpit, which started its action last month,
argued that the pay and conditions of Lufthansa pilots were being
undermined by the company's increasing reliance on foreign
subsidiaries such as Austrian Airlines and British Midland, as
well as its Lufthansa Italia operations.

                               Loss

Citing Bloomberg News, the Troubled Company Reporter-Europe
reported on March 4, 2010, that Lufthansa posted a net loss of
EUR112 million (US$152 million) for 2009 compared with restated
net income of EUR542 million in 2008.  Bloomberg disclosed the
carrier said it won't pay a dividend on 2009 earnings because of
the net loss, the first for a full year since 2003.

Deutsche Lufthansa AG -- http://www.lufthansa.com/-- is an
aviation company with operations worldwide.  It operates in five
business segments: Passenger Transportation, Logistics,
Maintenance, Repair and Overhaul (MRO), Information Technology
(IT) services and Catering.  On January 22, 2008, it acquired 19%
of the shares in JetBlue Airways.  In October 2008, Lufthansa
established an Italian company called Lufthansa Italia as it mulls
to make Milan based Malpensa airport its third hub after Frankfurt
and Munich.  In September 2009, Austrian Airlines AG was taken
over by Deutsche Lufthansa AG.  Austrian Airlines will therefore
become part of the Lufthansa Group as of September 2009.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on Sept. 7,
2009, Moody's Investors Service lowered the long-term and short-
term issuer ratings of Deutsche Lufthansa AG to Ba1/Not-prime from
Baa3/Prime-3.  At the same time Moody's withdrew the long-
term issuer rating and assigned a Corporate Family Rating and
Probability of Default Rating at Ba1.  Moody's said the outlook is
stable.


ESCADA AG: Admin. Claims Bar Date Set for March 31
--------------------------------------------------
Bankruptcy Judge Stuart Bernstein established March 31, 2010, as
the final date by which all parties, including governmental units,
must file requests for allowance of administrative expense claims
arising under Sections 503 and 507(a)(1) in the Chapter 11 case of
Debtor EUSA Liquidation Inc., formerly known as Escada (USA), Inc.

An Administrative Claim is any claim with respect to which a
holder intends to seek payment pursuant to Sections 503 and
507(a)(1) of the Bankruptcy Code, incurred from or after
August 14, 2009, through and including January 15, 2010, Judge
Bernstein ruled.

The Court also approved these procedures for filing of
Administrative Claims:

  (1) The Administrative Claim must be in writing, must conform
      to the Bankruptcy Rules and the Local Rules and must be
      filed by either overnight mail, first class mail, or by
      hand delivery to:

       EUSA Liquidation Inc. (f/k/a Escada USA Inc.)
       Claims Processing Center
       c/o Kurtzman Carson Consultants, LLC
       2335 Alaska Avenue
       El Segundo, CA 90245
       (866) 967-0490

      or by hand delivery to:

       United States Bankruptcy Court
       Southern District of New York
       1 Bowling Green, Room 534
       New York, NY 10004

  (2) The Administrative Claim must:

        (i) state the name of the claimant and the nature of the
            claim or interest of the party;

       (ii) specify the name and case number of the Debtor's
            Chapter 11 case;

      (iii) set forth with specificity the grounds for the
            Claim; and

       (iv) include supporting documentation or an explanation
            as to why documentation is not available.

An Administrative Claim will be deemed filed only if actually
filed in conformity with the Procedures and when received by
Kurtzman, as the Debtor's Claims and Noticing Agent, or the
Court.

Administrative Claims of professionals retained pursuant to
Sections 327 and 328 of the Bankruptcy Code and all fees payable
and unpaid under Section 1930 of the Judiciary and Judicial
Procedures Code need not be filed, the Court clarified.

All entities that are required, but fail, to file Administrative
Claims on or before the Administrative Claims Bar Date will be
forever barred, estopped, and enjoined from asserting those
Claims against the Debtor.  In such a case, the holder will not
be permitted to participate in any distribution in the Debtor's
Chapter 11 case on account of the Administrative Claim or to
receive further notices, and the Debtor will be forever
discharged from any and all indebtedness or liability with
respect to that Administrative Claim.

At the Court's directive, the Debtor published an Administrative
Claims Bar Date Notice in Women's Wear Daily on March 1, 2010.
Edward Jenner Jr., an authorized designee of Women's Wear Daily,
submitted to the Court an affidavit confirming the publication.

                        About Escada AG

The ESCADA Group -- http://www.escada.com/-- is an international
fashion group for women's apparel and accessories, which is active
on the international luxury goods market.  It has pursued a course
of steady expansion since its founding in 1976 by Margaretha and
Wolfgang Ley and today has 182 own shops and 225 franchise
shops/corners in more than 60 countries.

As of August 10, 2009, the Escada Group operated 176 owned stores
and so-called shop in shops, of which 26 owned stores are located
in the United States and operated by Escada (USA) Inc. and 2
stores are planned to be opened in the United States before year
end.  Escada Group products are also sold in 163 stores worldwide
which are operated by franchisees.  Escada Group had total assets
of EUR322.2 million against total liabilities of EUR338.9 million
as of April 30, 2009.

Wholly owned subsidiary Escada (USA) Inc. filed for Chapter 11 on
August 14, 2009 (Bankr. S.D.N.Y. Case No. 09-15008).  Judge Stuart
M. Bernstein handles the case.  O'Melveny & Myers LLP has been
tapped as bankruptcy counsel.  Kurtzman Carson Consultants serves
as claims and notice agent.  Escada US listed US$50 million to
US$100 million in assets and US$100 million to US$500 million in
debts in its petition.

Bankruptcy Creditors' Service, Inc., publishes Escada USA
Bankruptcy News.  The newsletter tracks the Chapter 11 proceedings
of Escada USA, and the insolvency proceedings of ESCADA AG and its
units.  (http://bankrupt.com/newsstand/or 215/945-7000)


ESCADA AG: Restated C. Marques Employment Pact Approved
-------------------------------------------------------
Judge Stuart M. Bernstein of the U.S. Bankruptcy Court for the
Southern District of New York approved amended and restated
versions of:

  (i) the Employment Agreement between Debtor EUSA Liquidation
      Inc., formerly known as Escada (USA), Inc., and Christian
      D. Marques, for the retention of Mr. Marquez as the
      Debtor's president and treasurer and for Mr. Marquez to
      provide assistance to the Debtor with its continuing
      obligations; and

(ii) the Cost-Sharing Agreement, under which ESCADA Subco LLC
      has agreed to share the costs of Mr. Marques' retention.

ESCADA Subco purchased substantially all of the Debtor's assets,
and successfully closed the Sale transaction on January 15, 2010.
Consequently, the Debtor terminated all of its employees on
January 14, and Escada AG, the sole stockholder of the Debtor,
removed members of the Debtor's board of directors from their
positions and appointed Mr. Marques as sole director.

ESCADA Subco subsequently hired substantially all of the Debtor's
former employees, including its senior management team other than
Mr. Marques, the Debtor's former executive vice president, chief
financial officer and treasurer on January 15.  In his capacity
as sole director, Mr. Marques then appointed himself as President
and Treasurer of the Debtor.

The Debtor has indicated that the Amended and Restated Employment
Agreement and the Amended and Restated Cost-Sharing Agreement
reflect adjustments that addressed the U.S. Trustee's concerns.
As previously reported, the U.S. Trustee argued that the
severance payments contemplated by the Original Agreements were:

  (i) hinged on issues relating to payment to insiders, as that
      term is defined under Section 101(31) of the Bankruptcy
      Code; and

(ii) "unclear" on whether severance payments were made during
      the first two weeks of 2010, prior to the closing of the
      Sale Transaction.

The Amended and Restated Agreements will be deemed to amend,
modify and supersede all prior agreements, Judge Bernstein ruled.

Full-text copies of the Amended and Restated Agreements are
available at no charge at:

http://bankrupt.com/misc/Escada_Amended&RestatedCostSharing.pdf
http://bankrupt.com/misc/Escada_Amended&RestatedEmployment.pdf

                        About Escada AG

The ESCADA Group -- http://www.escada.com/-- is an international
fashion group for women's apparel and accessories, which is active
on the international luxury goods market.  It has pursued a course
of steady expansion since its founding in 1976 by Margaretha and
Wolfgang Ley and today has 182 own shops and 225 franchise
shops/corners in more than 60 countries.

As of August 10, 2009, the Escada Group operated 176 owned stores
and so-called shop in shops, of which 26 owned stores are located
in the United States and operated by Escada (USA) Inc. and 2
stores are planned to be opened in the United States before year
end.  Escada Group products are also sold in 163 stores worldwide
which are operated by franchisees.  Escada Group had total assets
of EUR322.2 million against total liabilities of EUR338.9 million
as of April 30, 2009.

Wholly owned subsidiary Escada (USA) Inc. filed for Chapter 11 on
August 14, 2009 (Bankr. S.D.N.Y. Case No. 09-15008).  Judge Stuart
M. Bernstein handles the case.  O'Melveny & Myers LLP has been
tapped as bankruptcy counsel.  Kurtzman Carson Consultants serves
as claims and notice agent.  Escada US listed US$50 million to
US$100 million in assets and US$100 million to US$500 million in
debts in its petition.

Bankruptcy Creditors' Service, Inc., publishes Escada USA
Bankruptcy News.  The newsletter tracks the Chapter 11 proceedings
of Escada USA, and the insolvency proceedings of ESCADA AG and its
units.  (http://bankrupt.com/newsstand/or 215/945-7000)


ESCADA AG: U.S. Trustee Wants EUSA Case Converted to Ch. 7
----------------------------------------------------------
Diana G. Adams, the U.S. Trustee for Region 2, asks Judge Stuart
M. Bernstein of the U.S. Bankruptcy Court for the Southern
District of New York, to convert the Chapter 11 case of EUSA
Liquidation Inc., formerly known as Escada (USA) Inc., into a
proceeding under Chapter 7.

Section 1112(b) of the Bankruptcy Code governs the conversion or
dismissal of a Chapter 11 case and grants bankruptcy courts the
power to promptly administer chapter 11 cases on their docket.
Among other things, "cause" to convert a Chapter 11 case to
Chapter 7 includes:

  -- "substantial or continuing loss to or diminution of the
     estate and the absence of a reasonable likelihood of
     rehabilitation; and

  -- "failure timely to provide information or attend meetings
     reasonably required by the United States Trustee."

The U.S. Trustee filed her Chapter 7 Conversion Motion in light
of the recently concluded sale of the Debtor's assets to ESCADA
US Subco, LLC, pursuant to an Asset Purchase and Sale Agreement
among the parties.  Under the deal, ESCADA USA received
US$6 million; had certain of its liabilities assumed by the
Purchaser; and received reimbursement for new inventory it
purchased from and after the execution of the Agreement.  The Sale
was approved by Bankruptcy Judge Gonzales on January 7, 2010, and
the closing of the Sale subsequently occurred on January 15.

On behalf of the U.S. Trustee, Elisabetta G. Gasparini, Esq., in
New York, says that the Debtor's business is presently not
operating and all that remains to be done in the case is possibly
pursue some causes of action -- to the extent any claim exist --
and distribute the limited "pot" of funds to the various
creditors.

Ms. Gasparini tells the Court that the continuing loss to or
diminution to the Debtor's estate cannot be disputed.  "The last
monthly operating report that was filed with the Court reflects
that the overall value of the Debtor's assets has diminished by
over US$15 million.  Moreover . . . the Debtor has operated at a
loss since the Petition Date, and the cumulative net losses in
this case are amount to over US$22 million as of the end of 2009,"
she elaborates.

Moreover, while the Official Committee of Unsecured Creditors has
indicated that they are prepared to file a plan and disclosure
statement, proceeding with the confirmation of a plan as opposed
to a conversion to Chapter 7 does not appear to benefit the
unsecured creditors, Ms. Gasparini reasons.  In fact, since the
Sale was consummated, the constituencies have retained or are
seeking to retain additional professionals, she tells Judge
Bernstein.

Ms. Gasparini points out that under Chapter 11, quarterly fees
owed to the U.S. Trustee would continue to accrue, and even after
confirmation of a plan, professional fees would continue.  There
is also a possibility that the plan administrator would hire
additional professionals -- all causing the administrative
expenses related to the wind-down of the Debtor under Chapter 11
to be undoubtedly higher than those related to a Chapter 7.

Ms. Gasparini further asserts that the Debtor's case does not
have any prospect of successfully reorganizing its business.
"This is a case where there is a finite 'pot' of funds for
distribution to creditors, and all that is left to do is
investigate and pursue any possible causes of action that would
reduce claims asserted against the estate and possibly bring
money into the estate, object to claims, and finally, distribute
the remaining funds to the various creditors."

"All this can be done by a Chapter 7 trustee without having to
pay the related administrative costs of the Chapter 11
proceeding," Ms. Gasparini maintains.

The Court is set to convene a hearing on April 29, 2010, to hear
the U.S. Trustee's request.

                        About Escada AG

The ESCADA Group -- http://www.escada.com/-- is an international
fashion group for women's apparel and accessories, which is active
on the international luxury goods market.  It has pursued a course
of steady expansion since its founding in 1976 by Margaretha and
Wolfgang Ley and today has 182 own shops and 225 franchise
shops/corners in more than 60 countries.

As of August 10, 2009, the Escada Group operated 176 owned stores
and so-called shop in shops, of which 26 owned stores are located
in the United States and operated by Escada (USA) Inc. and 2
stores are planned to be opened in the United States before year
end.  Escada Group products are also sold in 163 stores worldwide
which are operated by franchisees.  Escada Group had total assets
of EUR322.2 million against total liabilities of EUR338.9 million
as of April 30, 2009.

Wholly owned subsidiary Escada (USA) Inc. filed for Chapter 11 on
August 14, 2009 (Bankr. S.D.N.Y. Case No. 09-15008).  Judge Stuart
M. Bernstein handles the case.  O'Melveny & Myers LLP has been
tapped as bankruptcy counsel.  Kurtzman Carson Consultants serves
as claims and notice agent.  Escada US listed US$50 million to
US$100 million in assets and US$100 million to US$500 million in
debts in its petition.

Bankruptcy Creditors' Service, Inc., publishes Escada USA
Bankruptcy News.  The newsletter tracks the Chapter 11 proceedings
of Escada USA, and the insolvency proceedings of ESCADA AG and its
units.  (http://bankrupt.com/newsstand/or 215/945-7000)


ESCADA AG: U.S. Unit's Motion to Enforce Sale Order on 717 GFC
--------------------------------------------------------------
ESCADA US Subco, LLC, formerly Escada (USA) Inc., asks Judge
Stuart M. Bernstein of the U.S. Bankruptcy Court for the Southern
District of New York to enjoin Landlord 717 GFC LLC from taking
any action to terminate the lease related to Subco's flagship
retail store located at 717 Fifth Avenue, in New York.

ESCADA Subco is the purchaser of substantially all of the assets
of Debtor ESCADA (USA) Inc., now known as EUSA Liquidation Inc.,
pursuant to an Asset Purchase and Sale Agreement among the
parties dated December 21, 2010.  Under the Asset Sale Agreement,
ESCADA USA was contemplated to (i) receive US$6 million;
(ii) have certain of its liabilities assumed by the Purchaser; and
(iii) receive reimbursement for new inventory it purchased from
and after the execution of the Agreement.  The Sale was approved
by Bankruptcy Judge Arthur J. Gonzales for the Southern District
of New York on January 7, 2010.  The closing of the Sale occurred
on January 15.

Among the Assets transferred to Purchaser under the Asset Sale
Agreement was the Fifth Avenue Lease between a predecessor-in-
interest to the Landlord and the Debtor dated as of September 29,
2000, as amended.

The Landlord previously said it engaged in discussions with the
Purchaser, which was expected to offer the Landlord a new
guarantor with "over EUR30 million in cash" plus "other assets,
given that the present guarantor, ESCADA AG, is bankrupt.  The
parties also discussed that the Purchaser, as the new tenant,
would become subject, under the existing Lease, to a separate and
ongoing duty to replace the guaranty.  The Landlord later related
that no agreement was ultimately reached.  Instead, the Fifth
Avenue Lease was not rejected, but was assumed and assigned the
Purchaser as of the Sale Closing.

Against this backdrop, ESCADA Subco asks the Bankruptcy Court to
prevent the Landlord from:

  -- using any purported inadequacy of a replacement guaranty
     executed and delivered by ESCADA Luxembourg, S.a.r.l., the
     Purchaser's parent, in connection with the closing of the
     sale approved by the Sale Order;

  -- draw on the Irrevocable Standby Letter of Credit dated
     January 15, 2010, issued by Deutsche Bank in favor of the
     Landlord on behalf of the Purchaser;

  -- assert damages or other remedies under the Fifth Avenue
     Lease; or

  -- interfere with the Purchaser's use and enjoyment of the
     premises subject to the Fifth Avenue Lease.

Meghan M. Sercombe, Esq., at Cleary Gottlieb Steen & Hamilton
LLP, in New York, on behalf of ESCADA Subco, delivered to the
Court exhibits relating to ESCADA Subco's request, including,
copies of the Replacement Guaranty and the Letter of Credit.

ESCADA Subco asserts that the Sale Order approved all purchase
agreements related to the transfer of Assets and explicitly
determined that all counterparties to assumed contracts had
received adequate assurance of future performance within the
meaning of Sections 365(b)(1)(C) and 365(f)(2)(B) of the
Bankruptcy Code.  Thus, Sean A. O'Neal, Esq., at Cleary Gottlieb
Steen & Hamilton LLP, in New York, contends that contrary to the
Landlord's assertion, the Court has already determined that the
Purchaser has provided adequate assurance to the Landlord by,
among other things, delivering the Replacement Guaranty executed
by ESCADA Lux.

The Landlord was given every opportunity to contest the adequacy
of the Replacement Guaranty but chose to take no action, Mr.
O'Neal laments.  Instead, he notes, weeks after the Sale Closing,
the Landlord is "threatening" to terminate the Fifth Avenue
Lease.

The Court should require the Landlord to comply with the terms of
the Sale Order and cease its interference with the Purchaser's
right to continue performance under the terms of the Fifth Avenue
Lease, Mr. O'Neil remains.

Echoing ESCADA Subco's arguments, the Official Committee of
Unsecured Creditors reiterates that the Landlord had the
opportunity to object to the Sale Motion, but did not.  "At this
point, in the absence of any appeal having been taken, the Sale
Order is final," maintains Melanie L. Cyganowski, Esq., at
Otterbour, Steindler, Houston & Rosen, P.C., in New York, on
behalf of the Committee.

Ms. Cyganowski elaborates that pursuant to the Sale Order, the
Fifth Avenue Lease was assumed and assigned to ESCADA Subco, all
without objection, and subject to the Replacement Guarantee.
Thus, any termination of the Lease predicated on the
insufficiency of the Guarantee violates the Sale Order, she says.
Moreover, to the extent any violation gives rise to claims
against the Debtor's estate, those claims only serve to prejudice
the Debtor's creditors, she adds.

                         Landlord Reacts

"The problem here is that . . . [ESCADA Subco's] parent or
principals have, in subsequent negotiations with Landlord . . .
have refused to proffer a meaningful parent guaranty, by instead
'loading' the parent's balance sheet with a 'shareholder loan'
that virtually erases all the assets, and leaves the parent as a
shell with almost no net worth," Richard Claman, Esq., at Stempel
Bennet Claman & Hochberg, P.C., in New York, argues.

A "shell" guaranty is plainly inadequate in regard to a Lease
whose term, at Landlord's option, can extend into 2026, where the
total rent due, net of all concessions, is in excess of
$55 million, Mr. Claman explains.

Mr. Claman relates that as of January 15, 2010, ESCADA Subco has
been occupying the Lease as assignee-tenant.  As of January 27,
however, ESCADA Subco had not proffered any current guaranty --
let alone a meaningful one.  Accordingly, the Landlord served
upon ESCADA Subco, as new tenant, on January 27, 2010, a 30-day
notice to cure the Fifth Avenue Lease to "keep good" the Guaranty
which ESCADA Subco promised as "security," says Mr. Claman.

ESCADA Subco proffered the Replacement Guaranty, but "did not
include any attempt to show that the 'guarantor' had any assets,"
Mr. Claman discloses.  "It appeared that the [Replacement]
Guaranty was just a piece of paper of no real meaning."

Mr. Claman contends that ESCADA Subco has available -- if they
want to so commit -- the financial resources to provide the
Landlord with a proper current guaranty.  There must be at least
"an implicit commitment that it will further devote additional
[and available] resources to make the new venture [with the
Landlord] work," Mr. Claman asserts.

                         *     *     *

At ESCADA Subco's behest, Judge Bernstein will convene an
expedited hearing on the ESCADA Subco's request, today, March 19,
2010.

Mr. O'Neil related in a declaration filed with the Court that the
Landlord has consented to the Debtor's request for an expedited
hearing.

                        About Escada AG

The ESCADA Group -- http://www.escada.com/-- is an international
fashion group for women's apparel and accessories, which is active
on the international luxury goods market.  It has pursued a course
of steady expansion since its founding in 1976 by Margaretha and
Wolfgang Ley and today has 182 own shops and 225 franchise
shops/corners in more than 60 countries.

As of August 10, 2009, the Escada Group operated 176 owned stores
and so-called shop in shops, of which 26 owned stores are located
in the United States and operated by Escada (USA) Inc. and 2
stores are planned to be opened in the United States before year
end.  Escada Group products are also sold in 163 stores worldwide
which are operated by franchisees.  Escada Group had total assets
of EUR322.2 million against total liabilities of EUR338.9 million
as of April 30, 2009.

Wholly owned subsidiary Escada (USA) Inc. filed for Chapter 11 on
August 14, 2009 (Bankr. S.D.N.Y. Case No. 09-15008).  Judge Stuart
M. Bernstein handles the case.  O'Melveny & Myers LLP has been
tapped as bankruptcy counsel.  Kurtzman Carson Consultants serves
as claims and notice agent.  Escada US listed US$50 million to
US$100 million in assets and US$100 million to US$500 million in
debts in its petition.

Bankruptcy Creditors' Service, Inc., publishes Escada USA
Bankruptcy News.  The newsletter tracks the Chapter 11 proceedings
of Escada USA, and the insolvency proceedings of ESCADA AG and its
units.  (http://bankrupt.com/newsstand/or 215/945-7000)


FLEETSTREET FINANCE: S&P Junks Rating on Class C Notes From BBB
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on FleetStreet Finance Two
PLC's class A to D notes.

At closing in October 2006, Fleet Street Two acquired a
EUR1,192 million loan secured on a KarstadtQuelle group sale- and
lease-back portfolio comprising mostly department stores located
across Germany.  The outstanding loan balance subsequently reduced
to EUR1,128 million as a result of prepayments (from property
disposals) and quarterly scheduled amortizations.  There are 96
properties remaining in the pool.

Karstadt and Quelle both filed for insolvency in June 2009.

The borrower has delivered an updated valuation of EUR713 million
based on the assumption that the properties are fully vacant on
sale.  The property valuer, Cushman & Wakefield, prepared this
valuation in December 2009.  This updated valuation indicates that
the securitized loan-to-vacant possession value has risen to 158%.

S&P's ratings reflected its view of the likely level of recoveries
following an insolvency of Karstadt and Quelle.  In light of the
lower-than-anticipated liquidation scenario valuation, S&P
recently placed its ratings on CreditWatch negative pending review
of its recovery analysis in light of the new information.

Immediate disposals would, in S&P's view, be likely to result in
higher proceeds than EUR713 million.  S&P understands that the
updated valuation includes some generic assumptions, such as
stressed void periods, that may not, in its view, reflect the
likely value achievable in a sale.  S&P notes, however, that the
updated vacant possession value -- which S&P considers as a
distressed valuation -- may affect the marketability of the
properties in a disposal scenario.

S&P understands that the liquidity facility should be available to
cover loan-level interest shortfalls, which could occur if there
is insufficient rental income.  S&P believes, however, that there
are scenarios where, if no rental income is received, the
liquidity facility may not be available to cover interest
shortfalls to the class C and D notes as a result of the
application of the appraisal reduction mechanism.

These rating actions reflect S&P's opinion of the creditworthiness
of the notes based on the original terms and conditions of the
transaction.  S&P understands the transaction is being
restructured at the borrower's request but, as yet, this has not
been completed.  S&P is considering the proposed terms of the
restructuring pending final confirmation of all the related
documentation.

                           Ratings List

                   Fleet Street Finance Two PLC
EUR1.192 Billion Commercial Mortgage-Backed Floating-Rate Notes

      Ratings Lowered and Removed From CreditWatch Negative

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


HEIDELBERGCEMENT AG: May Miss 2010 Investment-Grade Rating Goal
---------------------------------------------------------------
Richard Weiss at Bloomberg News reports that HeidelbergCement AG
signaled it may miss this year's goal of getting finances in line
with an investment-grade credit rating.

According to Bloomberg, Ozan Kacar, HeidelbergCement's investor
relations manager, said operating profit of more than EUR3 billion
(US$4 billion), and a debt-to-earnings ratio of below 2.8 are
"mid-cycle" targets.

"Whether we will be able to reach that this year, or 2011, or 2012
will depend on the global markets," Bloomberg quoted Mr. Kacar as
saying.

HeidelbergCement's long-term rating is BB- at Standard & Poor's
and Ba3 at Moody's Investors Service, three levels below
investment grade, Bloomberg notes.  It was rated as low as B-
until Oct. 15 at S&P, six levels below investment grade, after it
inflated borrowings with its US$12 billion takeover of rival
Hanson Plc, Bloomberg recalls.

                       Credit-Default Swaps

Credit-default swaps on HeidelbergCement rose 21 basis points to
310, Bloomberg says citing CMA DataVision prices at 11:30 a.m. on
March 22 in London.  An increase signals declining perceptions of
credit quality, Bloomberg states.

The company probably won't reach its targets "in the foreseeable
future," Unicredit equity analyst Kerstin Vitvar wrote in a
March 19 note, according to Bloomberg.

                       About HeidelbergCement

Based in Heidelberg, Germany, HeidelbergCement AG (FRA:HEI) --
http://www.heidelbergcement.com/-- is a global producer of
cement, concrete and building materials.  The Company's core
activities include the production and distribution of cement and
aggregates, the two raw materials for concrete.  It is also
engaged in the provision of such products as ready-mixed concrete,
as well as concrete products and elements.  It divides its
activities into four group areas: Europe-Central Asia, North
America, Asia-Australia-Africa-Mediterranean and Group Services.
It divides its products into three lines: cement, aggregates and
concrete and building products.  Its products include sand,
gravel, crushed stone, white cement, trass cement, masonry cement,
aquament and portland cement for hydraulic engineering, as well as
light, heavy and aerated concrete building blocks, pavers,
prefabricated ceilings and walls, prefabricated cellar units and
prefabricated sewage works units, among others.  In 2007, the
Company took over Hanson Group.


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


FERGUS HAYNES: BoSI Seeks EUR8.4 Mil. Summary Judgment v. Owner
---------------------------------------------------------------
The Irish Times reports that Bank of Scotland (Ireland) Ltd. is
seeking EUR8.4 million summary judgment orders against Charles
Fergus, a Co Donegal businessman and property developer.

According to the Irish Times, the bank's claim arises under
personal guarantees which were allegedly executed by Mr. Fergus
from 2004 to 2008 over liabilities to BoSI of Fergus Haynes
Developments Ltd.

The Irish Times relates the bank moved on foot of the guarantee in
December 2009 after the company failed in September 2008 to repay
EUR7.7 million then due and owing.

The bank claims that EUR8.47 million was due and owing from Mr.
Fergus as of March 15, the Irish Times notes.

The action by BoSI against Mr. Fergus was admitted to the
Commercial Court Monday by Ms. Justice Mary Finlay Geoghegan.
Ms. Justice Finlay Geoghegan adjourned the proceedings to
April 19, the Irish Times discloses.

Citing Property Week, the Troubled Company Reporter-Europe
reported on Sept. 24, 2008, that Fergus Haynes Developments went
into receivership after racking up debts of more than EUR15
million (GBP11.9 million).  Property Week disclosed Grant Thornton
Ireland was appointed receivers to the company.  Creditors of the
company founded by Mr. Fergus included Bank of Scotland, Bank of
Ireland and National Irish Bank, according to Property Week.  The
Sunday Business Post said Bank of Scotland took control of the
company's sites in Co Donegal after the High Court rejected a
petition by the firm's directors for it to be placed into
examinership.


HOUSE OF EUROPE: Moody's Cuts Ratings on Class A1 Notes to 'B1'
---------------------------------------------------------------
Moody's Investors Service has downgraded the ratings of two
classes of Notes issued by House of Europe Funding V PLC.  The
Notes affected by the rating actions are:

  -- EUR200,000,000 Class A1 House of Europe Funding V PLC
     Delayed Draw Note due 2090; Downgraded to B1; Previously on
     March 18, 2009 Downgraded to Ba2;

  -- EUR580,000,000 Class A1 House of Europe Funding V PLC
     Floating Rate Notes due 2090; Downgraded to B1; Previously on
     March 18, 2009 Downgraded to Ba2.

House of Europe Funding V is a collateralized debt obligation
backed primarily by a portfolio of Euro denominated Structured
Finance securities, with approximately 30% of the portfolio
consisting of RMBS and 40% CMBS.  The rating downgrade actions
reflect deterioration in the credit quality of the underlying
portfolio as indicated by rating actions taken with respect to
underlying assets.  Credit deterioration of the collateral pool is
observed through a decline in the average credit rating (as
measured by an increase in the weighted average rating factor) and
failure of the coverage tests, among other measures.

The weighted average rating factor, as reported by the trustee,
has increased from 128 in February 2009 to 474 in March 2010.
During this same time, defaulted securities increased by
~EUR 9.8 million and the Class A/B Overcollateralization Ratio
decreased from 97.04% to 89.32%.  In excess of 11% of the ratings
assigned to underlying portfolio securities are currently on
review for downgrade and since last rating action more than 40% of
the portfolio has experienced negative downgrade action.


KEELAGH HOMES: EBS Sued By Businessman Over Loss of Investment
--------------------------------------------------------------
Mary Carolan at The Irish Times reports that businessman Tommy
Kelly has sued EBS Building Society, alleging its negligence and
misrepresentation led to his investing and losing EUR6 million in
a major property development in Co Louth financed by the EBS.

According to the report, Mr. Kelly alleges EBS head of development
finance Martha Widger had advised him about the development
involving property company Keelagh Homes Ltd. (KHL), now
insolvent, but never disclosed at meetings that her family had an
interest in the Keelagh group "and therefore a vested interest" in
its financial survival.

At no stage had EBS disclosed Ms. Widger's personal involvement
with the Keelagh group to Mr. Kelly, the report states.  The
report notes Mr. Kelly said had he been aware of "this conflict of
interest", he would never have proceeded with the investment.

According to the report, Mr. Kelly said it appeared the Widger
family has an interest in the Keelagh group and a subsidiary,
Keelagh Homes (South) Ltd. was formed to acquire and develop lands
in Waterford, he said.  He added KHL holds a 67% interest in KHSL
and members of the Widger family hold the remaining 33% interest,
the report notes.

The report relates on the application of John Hennessy SC, who
represents Mr. Kelly, the proceedings against the EBS were
admitted to the Commercial Court Monday by Ms. Justice Mary Finlay
Geoghegan.


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


LUXEMBOURG INVESTMENT: Liquidators Sue UBS and Ernst & Young
------------------------------------------------------------
Stephanie Bodoni at Bloomberg News reports that liquidators for
the Luxembourg Investment Fund, one of three local funds dissolved
after investing with Bernard Madoff, are suing UBS, the fund's
custodian bank, and Ernst & Young's local unit, which acted as
auditor.

Bloomberg recalls a Luxembourg court this month handed liquidators
for local funds tied to Mr. Madoff the "exclusive" right to
recover assets, potentially blocking hundreds of lawsuits by
investors.

"We filed the lawsuit [Mon]day seeking the return of some US$426
million," Bloomberg quoted Alain Rukavina, one of the liquidators
for the fund, as saying.

Luxembourg Investment Fund had US$419 million in net assets,
according to Bloomberg data, before Mr. Madoff's investment firm
collapsed following his December 2008 arrest.  The fund was among
17 Luxembourg funds forced to suspend customer redemptions due to
Madoff-related losses, Bloomberg notes.  A Luxembourg court in
April dissolved the fund and ordered its liquidation, Bloomberg
recounts.

UBS's Luxembourg unit served as the custodian for Luxembourg
Investment Fund and LuxAlpha, Bloomberg notes.  Custodians are
responsible for oversight of funds and manage deposits and
payments to investors, Bloomberg discloses.

                     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
=====================


BETULA FUNDING: Fitch Affirms Rating on Class A Notes at 'B'
------------------------------------------------------------
Fitch Ratings has affirmed Betula Funding 1 BV.'s EUR673,878,092
class A notes at 'B' and removed them from Rating Watch Negative.
A Stable Outlook and a Loss Severity Rating of 'LS-2' are
assigned.

Fitch placed the note on RWN in February 2009 because after the
default of Landesbanki Islands hf. as swap counterparty there is
no transaction party responsible for converting the non-euro
proceeds to pay the euro-denominated debt.  Deutsche Bank, the
trustee, started to exchange the non-euro proceeds last year and
has continued to do so.  Although Deutsche Bank is under no
commitment to continue in this role it is Fitch's opinion that it
will, therefore Fitch has removed the transaction from RWN.

The affirmation reflects Fitch's view that, despite significant
levels of unhedged currency risk, the transaction will continue to
generate sufficient proceeds to service the class A notes.  The
March 2010 trustee report shows assets of EUR957.7 million
relative to the Class A note balance of EUR673.9 million -- which
translates to a robust over-collateralization ratio of 142.1%.
However, since approximately two-thirds of the portfolio balance
comprises non-euro assets, the level of over-collateralization is
likely subject to significant volatility.  Fitch has applied 'B'
currency stresses to the portfolio and estimates that euro
appreciation against the USD and GBP would result in a 10%
reduction of the current portfolio value.  Currently approximately
36% of the portfolio is dominated in EUR, 31% in GBP, 20% in USD,
with the remaining 13% in AUD, CHF, SEK, and NZD.

In addition to over-collateralization, the transaction benefits
from significant levels of excess spread.  On the March 2010
payment, EUR4.1 million of excess interest proceeds were used to
de-leverage the class A notes.  Due to the unhedged FX risk, the
level of excess spread is expected to be volatile; however, Fitch
expects that excess spread will continue to support the credit
profile of the class A notes.

Regarding portfolio credit performance, the assets continue to
perform within Fitch's expectations.  According to the March
report, there is one defaulted obligor and less than 1% exposure
to 'CCC'-rated assets.  The majority of the portfolio consists of
senior secured loans with approximately 42% rated 'B' and 48%
rated 'B-'.  Fitch expects portfolio defaults to be limited and
that, unless the euro significantly strengthens against the USD
and GBP, the rating of the class A notes is likely to be stable.

Betula is a cash flow collateralized debt obligation which closed
on 16 June 2008.  The transaction was initially placed on RWN on
10 October 2008, following the transfer of control of Landsbanki
Islands hf to FME on October 7, 2008, and the subsequent downgrade
of Landsbanki's Long-term Issuer Default Rating to 'D'.  Following
the default of Landsbanki Islands hf. on October 7, 2008, Fitch
issued multiple rating action comments in 2008 highlighting the
uncertainties regarding Betula 1 BV.'s ability to make interests
payments on the class A notes.  Although sufficient interest
proceeds were available to pay the senior notes on the December
payment date, this coupon was withheld following a written
resolution signed by noteholders.  The proceeds were retained by
the account bank and were released on the March 16, 2009 payment
date.

The agency has assigned an Issuer Report Grade of "basic" (two
stars) to Betula.  Reporting characteristics that prevent the
transaction from earning an IRG higher than "basic" include low
reporting frequency of quarterly.

The rating on the class A notes addresses the likelihood that
investors will receive full and timely payments of interest, as
per the governing documents, as well as the stated balance of
principal by the maturity date.


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


EITZEN MARITIME: Secures Covenant Waiver on NOK400 Mil. Loan
------------------------------------------------------------
Lloyd's List reports that Eitzen Maritime Services has received a
temporary waiver of financial covenants related to its NOK400
million (US$67 million) bond loans.  According to Lloyd's List,
the company issued the bonds in September to help refinance US$90
million debts.

Lloyd's List relates the company reported a fourth-quarter net
loss of US$18.3 million.

Headquartered in Oslo, Norway, Eitzen Maritime Services ASA,
formerly Stromme ASA, -- http://www.eitzen-maritime.com/-- is
active in the shipping industry.  The Company operates through its
three principal divisions: EMS Ship Supply, which provides marine
and offshore supplies, marine equipment, spare parts and services;
EMS Insurance Brokers, which provide marine insurance programs to
ship owners, charterers, cargo owners and other operators in the
marine industry, and EMS Ship Management, which offers which
offers ship management services, such as technical management and
crew management services, as well as port agency services.  The
Company's subsidiaries include companies located in Singapore,
Norway, Germany, the Netherlands, Spain, Denmark, Russia and
India, among others.


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


* ROMANIA: Suppliers Recover Less From Insolvent Companies
----------------------------------------------------------
Izabela Badarau at Ziarul Financiar reports that Arin Stanescu,
chairman of the National Association of Insolvency Practitioners
in Romania, said suppliers are the last to be considered when
assets of insolvent companies are divided, after the state, banks,
and employees.

"The degree of debt recovery from an insolvent company is a lot
lower than 12% in Romania.  World Bank data reveal that in the
European Union this percentage is of around 20%.  We are faring
somewhat worse.  The only ones who get their money back are state-
owned creditors and those with guarantees, maybe the employees, as
well, if they are insured by the Fund for guaranteeing salary
debt," the report quoted Mr. Stanescu as saying at the
International Conference dedicated to CFOs, organized by Forum
Invest.  "Unsecured creditors, mainly suppliers, manage to recover
very little, if at all."

Citing UNPIR data, the report discloses EUR150 million in debt
were recovered in the first half of 2009 from insolvent companies,
while only EUR50 million were recovered in the second half of the
year.


* ROMANIA: Lawyers Feel Thawing of M&A Activity, DLA Piper Says
---------------------------------------------------------------
Cristi Moga at Ziarul Financiar reports that lawyers are starting
to feel the thawing of the M&A field.  According to the report,
involved sums are no longer as high as they were from 2006 through
2008, with some investment targets being put out for sale with the
very end of avoiding the start of insolvency procedures that can
lead to bankruptcy.

"We've been feeling a thawing of trading activity, so that we now
have six contracts of real mergers and acquisitions underway.  One
of these contracts is rather a distressed M&A, with a business for
which the alternative is insolvency," the report quoted Marian
Dinu, country managing partner with DLA Piper law firm, as saying.
"It is about a company with a turnover in the range of tens of
millions of euros, in the case of which the shareholders have to
admit they lost."

According to the report, in the past 18 months, since the
financial crisis has intensified domestically, the number of deals
has been low and the more so in the case of deals with troubled
firms.


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


* RUSSIAN REPUBLIC OF SAKHA: S&P Affirms BB- Rtng; Outlook Stable
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised its
outlook on the Russian Republic of Sakha (Yakutia) to stable from
negative and affirmed the 'BB-' long-term issuer credit and
'ruAA-' Russian national scale ratings.

At the same time, 'BB-' and 'ruAA-' senior unsecured debt ratings
were assigned to the republic's planned three-and-one-half year
amortizing Russian ruble 2 billion (US$69 million) bond, which the
region intends to place on March 25, 2010.  The bond will have 14
quarterly, fixed coupons and an amortizing repayment schedule.  In
2012, 40% of the bond is scheduled to be redeemed, with the
remaining 60% set to be repaid in 2013.

"The outlook revision reflects the republic's expected stronger
financial performance, supported by higher-than-forecast tax
revenues, substantial transfers from the federal budget, and a
proven ability to control expenditure growth," said Standard &
Poor's credit analyst Alexandra Balod.

The ratings on Sakha reflect its status as a vast, isolated
region, with an economy highly concentrated on natural resources
extraction and exposed to the volatility of commodity markets.
The severe subarctic climate, a remote location, and the need for
further development of transport infrastructure require high
operating and capital spending, which is difficult to reduce.  The
republic also suffers from its low revenue-raising capacity and
its dependence on federal decisions on intergovernmental relations
and tax regimes.

On the positive side, the republic demonstrates a commitment to
tight fiscal discipline and a cautious debt policy, which have so
far resulted in a low debt burden and consistent sound budgetary
performance amidst economic difficulties.  Sakha benefits from its
wealthy economy and declining dependence on tax proceeds from a
single taxpayer, as well as massive investment in local
infrastructure.

The stable outlook reflects S&P's expectation that Sakha's
conservative financial planning and good cost-containment measures
will allow the republic to achieve sound budgetary performance in
2010-2012, along with the general economic recovery.  S&P also
factors in the republic's continued prudent debt management, with
debt service remaining relatively low due to its smooth debt
amortizing profile.

"S&P might lower the ratings if the republic is unable to adjust
expenditure growth to volatile revenues and if there is a further
economic downturn," said Ms. Balod.  "Subsequent deteriorating
operating balances and higher borrowing -- especially short-term
debt accumulation -- which might expose Sakha to refinancing
risks, could also result in S&P's lowering the ratings."

Faster revival of revenues and additional transfers, resulting in
better-than-forecast budgetary performance, and the implementation
of a cautious liquidity policy could lead us to raise the ratings.


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


BBVA LEASING: Moody's Junks Ratings on Two Classes of Notes
-----------------------------------------------------------
Moody's Investors Service has downgraded these classes of notes
issued by BBVA Leasing 1, FTA:

  -- EUR379.8 million A1 Certificate, Downgraded to Baa3 from Aaa;
     previously on 9 December 2009 placed under review for
     possible downgrade

  -- EUR813.3 million A2 Certificate, Downgraded to Baa3 from Aaa;
     previously on 9 December 2009 placed under review for
     possible downgrade

  -- EUR82.5 million B Certificate, Downgraded to Ca from A3;
     previously on 9 December 2009 placed under review for
     possible downgrade

  -- EUR61.3 million C Certificate, Downgraded to C from Baa3;
     previously on 9 December 2009 placed under review for
     possible downgrade

Moody's says that the downgrades were prompted by the worse than
expected collateral performance and the weakening of macro-
economic conditions in Spain during the past year, which prompted
Moody's to revise its assumptions for the transaction.  The
magnitude of the downgrades reflects the current credit
enhancement levels, which, combined with the revised assumptions,
lead to a higher expected loss on the rated notes.

The rapid deterioration in performance is evidenced by the sharp
increase in the artificial write-offs from EUR5.5 million in
February 2009 to EUR61.0 million in February 2010 or 0.15% and
1.64% of the total securitized pool respectively.  The cumulative
amount of loans in arrears exceeding 90 days increased from 2.2%
in February 2009 to 4.1% in February 2010.  The structure
initially benefited from a fully funded reserve account of
EUR41.25 million, which has been partially drawn to cover write-
offs on the previous interest payments dates and was fully
depleted on the interest payment date in February 2010.

As of February 2010, the pool factor was 53% based on the notes'
amount.

During its analysis, Moody's assessed macro-economic indicators as
well as information made available from the management company
Europea de Titulizacion.

Moody's assumptions for the cumulative mean default rate have been
raised to 12% of current pool balance, which translates into 9% of
the total securitized pool balance (vs. 2.0% initially).  Moody's
considers the debtors in this transaction to be SME and
accordingly used its SME approach to determine the expected mean
default rate.  Moody's first revised its assumption for the
default probability of the Spanish SME debtors to an equivalent
rating in the single B-range for debtors operating in the building
and real estate sector, and in the low Ba-range for non-real-
estate debtors.

In addition, Moody's made DP adjustments to reflect the size of
the debtors' companies, notching down its rating proxy on a
portion of the debtors to reflect additional default risk
associated with micro-sized SMEs and self-employed borrowers.

Moody's equivalent rating for loans in arrears for more than 30
days was also notched down depending on the length of time the
loans had been in arrears, and it was notched up for those
performing loans not in the building and real estate sector
originated prior to 2006, depending on their actual seasoning.

Following these adjustments, the portfolio's overall DP equivalent
rating was assumed at B2, which, over a weighted average life of
2.8 years, results in a DP of 12% on current pool balance.

This is also in line with levels observed using a roll rate
analysis based on delinquent loans.  The roll rate analysis was
based on the level of 90+ delinquencies as well as doubtful loans.

Based on recovery data received, the recovery rate was lowered to
30% (vs. 40% initially).  Lastly, the coefficient of variation was
reduced to 35% from 45% initially given the increased mean
default, the relative uncertainty around this trend could be
viewed lower than at closing.

The combination of the revised assumptions with the current levels
of credit enhancement led to the downgrade of all tranches.  In
particular, the credit enhancement below the pro-rata amortizing
tranches A1 and A2 currently stands at 10.5%.  This level of
credit enhancement is considered to be only in line with a Baa3
rating, given the future expected losses of 8.4% calculated as the
product of mean default on current balance and a recovery rate of
30%.

BBVA Leasing 1, FTA closed in June 2007.  The originator is Banco
Bilbao Vizcaya Argentaria (rated Aa2/Prime-1).  This transaction
is backed by a portfolio of credit rights derived from real estate
and equipment leasing of SMEs and self-employed individuals in
Spain.

Moody's sector outlook for Spanish SME ABS is negative.

The ratings address the expected loss posed to investors by the
legal final maturity date (May 2031).  In Moody's opinion, the
structure allows for timely payment of interest and ultimate
payment of principal at par on or before the final legal maturity
date.


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


FORD MOTOR: Deal to Sell Volvo to Geely May Be Signed on Sunday
---------------------------------------------------------------
Ford Motor Co. will sign a deal to sell its Volvo cars business to
Zhejiang Geely Holding Group as soon as this Sunday, March 28,
John Reed at The Financial Times reports, citing three people
close to the transaction.

Geely, the FT says, will pay US$1.8 billion for Volvo.  Another
US$750 million of working capital is being raised for the Swedish
marque, the FT notes.

According to the FT, one of the people who declined to be named
because the announcement was pending, said about half of the
financing for the overall deal is due to come from European banks
and the other half from China.

About US$500 million to US$800 million of the financing for the
deal will come from the European Investment Bank, to be guaranteed
by the governments of Sweden and Belgium, where Volvo has
production plants, the FT discloses.  Roughly US$500 million will
come from Swedish banks, the FT states.  The remainder will come
from Chinese banks, local governments and Geely itself, the FT
notes.

The FT relates one of the people said the deal would probably be
signed on Sunday or Monday.

The deal is expected to include many long- and short-term supply
agreements between Ford and Volvo, which supply each other with
engines and parts, the FT states.

                         About Ford Motor

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles
across six continents.  With about 200,000 employees and about 90
plants worldwide, the company's automotive brands include Ford,
Lincoln, Mercury and Volvo.  The Company provides financial
services through Ford Motor Credit Company.

At Sept. 30, 2009, the Company had US$203.106 billion in total
assets against US$210.376 billion in total liabilities.

On March 4, 2009, Ford deferred future interest payments on its
6.50% Junior Subordinated Convertible Debentures due January 15,
2032, beginning with the April 15, 2009 quarterly interest
payment.

As reported by the Troubled Company Reporter on March 18, 2010,
Moody's Investors Service raised Ford's Corporate Family Rating
(CFR) and Probability of Default Rating (PDR) to B2 from B3,
secured credit facility to Ba2 from Ba3, senior unsecured debt to
B3 from Caa1, trust preferred to Caa1 from Caa2, and Speculative
Grade Liquidity rating to SGL-2 from SGL-3. Also raised is Ford
Credit's senior debt rating to B1 from B2.

On Nov. 3, 2009, S&P raised the corporate credit ratings on Ford
Motor Co. and Ford Motor Credit Co. LLC to 'B-' from 'CCC+'.  Ford
Motor Co. carries a long-term issuer default rating of 'CCC', with
a positive outlook, from Fitch Ratings.


GENERAL MOTORS: Spyker Wins US$1.2MM tax Credit for Michigan HQ
---------------------------------------------------------------
The Michigan Economic Growth Authority granted Spyker Cars N.V.
US$1.2 million worth of tax credits on March 16, 2010, allowing
the company to locate its Saab Cars North America headquarters in
Detroit suburb.  Spyker had asked for the financial support in
exchange for moving Saab's headquarters to Royal Oak, reported The
Wall Street Journal.

According to Saab Chief Operating Officer Mike Colleran, the
Company plans to move employees from Saab's current offices in
downtown Detroit into the new site by the end of March 2010.
Spyker also plans to initially employ about 60 people, with an
average weekly wage of US$1,693, the Journal reported.

Saab and Spyker will act as one company with Saab headquartered in
the U.S. and Spyker retaining its current home in Zeewolde, the
Netherlands, the report added.

Spyker finalized on February 23, 2010, the deal with General
Motors Company to purchase Saab.  Going forward, Saab Automobile
and Spyker Cars will operate as sister companies under the
umbrella of the Amsterdam Euronext-listed parent company Spyker
Cars N.V.

                       About General Motors

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

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

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

                    About Motors Liquidation

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

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

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


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


KB IPOBANK: Faces Liquidation Following Temporary Administration
----------------------------------------------------------------
Daryna Krasnolutska at Bloomberg News reports that Ukraine's
central bank said it will liquidate VAT KB Ipobank after imposing
temporary administration in October and failing to find an
investor for the bank.

According to Bloomberg, the Kiev-based Natsionalnyi Bank Ukrainy
said in a statement on its Web site it made the decision to end
the bank's operations Monday.

Andriy Kyyak was appointed to supervise the liquidation, Bloomberg
says citing the statement.

Headquartered in Kiev, Ukraine, KB Ipobank VAT (JSC Commercial
Bank Hypobank) -- http://www.hypobank-ua.com/-- provides banking
products and services, including current accounts and saving
accounts, deposits, credit cards, non-trade transactions with
currency values, organization of buying and selling securities on
behalf of clients, individual safes and others.  KB Ipobank VAT
offers also internet banking, mobile banking and self-service
terminals.  The Bank has its branches in Kiev, Kharkov, Donetsk,
Odessa, Zaporozhe and Dnepropetrovsk.


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


GAC ENGINEERING: Cash Flow Problems Prompt Administration
---------------------------------------------------------
Farhana Haque and Luke Gray at Evening Courier Main report that
GAC Engineering Group has gone into administration, putting some
jobs at the company at risk.  According to the report, the company
is expected to close down in the next few weeks due to cash flow
problems, after it has fulfilled some existing contracts.

The report relates Hunter Kelly and Charles King, of Ernst & Young
LLP in Leeds, were appointed joint administrators on March 18.

"GAC Engineering has experienced losses on a number of new, large
contracts that the company is unable to recover from, the report
quoted Mr. King as saying.

Burnley Road, Sowerby Bridge-based GAC Engineering Group
manufactures and repairs machine tools.  The company employs 34
people.  It has worked with customers across the globe in a number
of sectors, including steel, defence, oil, rail, shipbuilding,
automotive and paper, according to Evening Courier Main.


GENERAL MOTORS: Nears Deal with Renault to Secure Luton Future
--------------------------------------------------------------
Graham Ruddick at The Daily Telegraph reports that General Motors
Co. is close to reaching a joint-venture agreement that will keep
its van plant at Luton open beyond 2013.

According to the report, Luton is operated through a partnership
between GM Europe and Renault until 2013, but its future beyond
that has looked bleak since GM crashed into Chapter 11 bankruptcy
protection in the U.S. last year and began a major restructuring
of its European operations.

The report relates Nick Reilly, chief executive of GM Europe, said
in an interview on Monday that he was "pretty near the end" of
discussions with Renault about extending their deal.

The report notes Mr. Reilly also disclosed that the UK Government
only provided loan guarantees of EUR300 million (GBP270 million)
to safeguard the future of GM-owned Vauxhall, which employs 5,000
people in the UK, after asking the American parent company to
commit an extra EUR400 million to the business.

The Government also asked for other terms, which Mr. Reilly would
not disclose, and reassurances about the future of Vauxhall's
plants, the report states.

The report says Luton, which employs 1,500 staff, has faced
serious doubts about its future because sales of vans slumped in
the recession and it was not clear whether Renault wanted to
extend the venture.  More than 350 jobs will go at the plant in
GM's European restructuring, the report discloses.

                      About General Motors

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

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

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

                    About Motors Liquidation

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

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

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


HIT ENTERTAINMENT: Lenders Waive Covenant Test on US$579MM Debt
---------------------------------------------------------------
HIT Entertainment has reached a forbearance agreement with lenders
that waives a covenant test on its US$579 million debt, Ainsley
Thomson at Dow Jones Newswires, citing a person familiar with the
matter.

According to Dow Jones, the person said the debt negotiations will
continue, with the preferred option being for HIT Entertainment to
reach an amend-and-extend arrangement with lenders.

The company's debt consists of a US$327 million term loan, a
US$175 million second lien facility and a US$77 million revolving
credit facility, Dow Jones says, citing a report from ratings
agency Standard & Poor's Corp. in January.

Headquartered in London, United Kingdom, HIT Entertainment --
http://www.hitentertainment.com/-- is a producer of children's TV
programming, including such shows as Barney & Friends, Bob the
Builder, and Thomas & Friends.  The company's vault features more
than 1,500 hours of programming that its distributes to more than
240 countries; it also distributes content for the home
entertainment market and licenses its characters for use in books
and other consumer products.  In addition to children's
programming, HIT Entertainment owns the Guinness World Records
publishing and television property.  Private equity firm Apax
Partners owns the company.

                       *     *     *

As reported by the Troubled Company Reporter-Europe on Jan. 7,
2010, Standard & Poor's Ratings Services said that it lowered its
long-term corporate credit ratings on U.K.-headquartered HIT
Entertainment Ltd. and related entities to 'CC' from 'CCC+'.  S&P
said the outlook is negative.  At the same time, S&P lowered the
issue-level ratings on related entity HIT Entertainment Inc.'s
US$404 million first-lien debt facilities (US$77 million revolving
credit facility -- RCF -- and US$327 million term loan B) to
'CCC', one notch higher than the corporate credit rating.


ICAP PLC: To Shutter Unprofitable Equities Sales & Research Unit
----------------------------------------------------------------
Bryan Keogh and Alexis Xydias at Bloomberg News report that
ICAP Plc is shuttering its unprofitable equities sales and
research unit after failing to find a buyer or partner for the
operation.  According to Bloomberg, ICAP will report operating
losses of about GBP25 million for the discontinued operation in
the year ended March 31 as a separate item.

ICAP tried to find a partner or buyer for the unit, which employs
114 people, and held talks with State Street Corp. about
cooperating in recent months, Bloomberg discloses, citing five
people close to the matter who declined to be identified because
the talks were private.

Bloomberg says the collapse in credit markets in 2008 spurred
ICAP's customers to increase trading, boosting the amount of
business it handles.  As markets calmed last year amid
unprecedented government efforts, trading in some of ICAP's
markets slowed, Bloomberg notes.

"While a number of our cash equities businesses are performing
well, the expansion into full service agency cash equities in
Europe and Asia has failed to match up to our expectations,"
Bloomberg quoted ICAP Chief Executive Officer and founder Michael
Spencer as saying in Monday's statement.  "After a thorough review
we have therefore decided to withdraw from the full service
offering."

ICAP plc -- http://www.icap.com/-- is a voice and electronic
interdealer broker, delivering specialist intermediary broking
services to trading professionals in the wholesale financial
markets.  The Company covers a range of over-the-counter financial
products and services in commodities, foreign exchange, interest
rates, credit and equity markets, as well as data, commentary and
indices.  It is active in both established and emerging markets.
Its electronic networks deliver global connectivity to customers
seeking unparalleled liquidity and flow in an orderly marketplace.
ICAP provides a specialist service by matching up buyers and
sellers in the wholesale financial markets.  Its customers include
investment and commercial banks and they pay a commission to use
them to complete a transaction.  On April 7, 2008, the Company
acquired Link. On April 1, 2008, the Company acquired a 78% of
ICAP Equities Limited.  In August 2008, it acquired Escorfin SA.
In July 2008, it acquired Moving Pictures and Television LLC.


NEUROPHARM PLC: Mulls Liquidation on Lack of NPL-2008 Funding
-------------------------------------------------------------
Phil Serafino at Bloomberg News reports that Neuropharm Plc said
in a Regulatory News Service statement that it is considering
liquidation because it lacks funding for further studies of its
NPL-2008 compound.  The company has given notice to all employees,
Bloomberg notes.  According to Bloomberg, talks over a sale of
Neuropharm or its assets are ongoing, but are at an early stage.

Neuropharm Group plc -- http://www.neuropharm.co.uk/-- is a
United Kingdom-based specialty pharmaceutical company.  The
Company is focused on the discovery, development and
commercialization of products for the treatment and management of
neurodevelopmental disorders.  Neuropharm's wholly owned
subsidiaries include Neuropharm Limited and Neuropharm Inc.


NORTEL NETWORKS: Court Won't Certify Stay Order on UK Proceeding
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware denied
certification for its prior order that blocked the U.K. pension
authorities from participating in an administrative proceeding to
recover claims from Nortel Networks Inc.

Nortel Networks UK Pension Trust Ltd. and the Board of the
Pension Protection Fund earlier filed a motion, asking the
Bankruptcy Court to certify its February 26 order for immediate
appeal to the U.S. Court of Appeals.  The U.K. pension
authorities want the Court of Appeals to determine whether the
Bankruptcy Court erred in its decision to bar them from
participating in the administrative case on grounds that the case
would prejudice NNI.

The administrative proceeding seeks to recover as much as
GBP2.1 billion in connection with Nortel Networks UK Ltd.'s
pension plan that was allegedly left underfunded following NNUK's
bankruptcy filing.

In a March 18, 2010 order, Bankruptcy Judge Kevin Gross did not
agree with the U.K. pension authorities that the appeal would
advance the bankruptcy cases of NNI and its affiliated debtors.

"The logical and certain way to advance the bankruptcy case is to
permit the allocation process to proceed," Judge Gross said,
referring to the process of allocating proceeds from the sale of
Nortel's assets that would determine the amount available for
distribution to creditors.

Judge Gross earlier issued a memorandum opinion, explaining his
basis for barring the U.K. pension authorities from participating
in the administrative case.  He said the case is premature and
will prejudice the resolution of the Debtors' bankruptcy cases.

Judge Gross' stance echoes the position of NNI and the Official
Committee of Unsecured Creditors, both of which opposed the U.K.
pension authorities' move to seek certification of the
February 26 order.  NNI and the Creditors Committee argued that
no basis exists to support that the authorities' immediate direct
appeal would materially advance the progress of the bankruptcy
cases.

                       About Nortel Networks

Nortel Networks (OTCBB:NRTLQ) -- http://www.nortel.com/--
delivers communications capabilities that make the promise of
Business Made Simple a reality for the Company's customers.  The
Company's next-generation technologies, for both service provider
and enterprise networks, support multimedia and business-critical
applications.  Nortel's technologies are designed to help
eliminate the barriers to efficiency, speed and performance by
simplifying networks and connecting people to the information they
need, when they need it.

Nortel Networks Corp., Nortel Networks Inc., and other affiliated
corporations in Canada sought insolvency protection under the
Companies' Creditors Arrangement Act in the Ontario Superior Court
of Justice (Commercial List).  Ernst & Young was appointed to
serve as monitor and foreign representative of the Canadian Nortel
Group.

The Monitor sought recognition of the CCAA Proceedings in the U.S.
by filing a bankruptcy petition under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 09-10164).  Mary Caloway,
Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney
PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's
counsel.

Nortel Networks Inc. and 14 affiliates filed separate Chapter 11
petitions on January 14, 2009 (Bankr. D. Del. Case No. 09-10138).
Judge Kevin Gross presides over the case.  James L. Bromley, Esq.,
at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as
general bankruptcy counsel; Derek C. Abbott, Esq., at Morris
Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware
counsel.  The Chapter 11 Debtors' other professionals are Lazard
Freres & Co. LLC as financial advisors; and Epiq Bankruptcy
Solutions LLC as claims and notice agent.

Certain of Nortel's European subsidiaries also made consequential
filings for creditor protection.  The Nortel Companies related in
a press release that Nortel Networks UK Limited and certain
subsidiaries of the Nortel group incorporated in the EMEA region
have each obtained an administration order from the English High
Court of Justice under the Insolvency Act 1986.  The applications
were made by the EMEA Subsidiaries under the provisions of the
European Union's Council Regulation (EC) No. 1346/2000 on
Insolvency Proceedings and on the basis that each EMEA
Subsidiary's centre of main interests is in England.  Under the
terms of the orders, representatives of Ernst & Young LLP have
been appointed as administrators of each of the EMEA Companies and
will continue to manage the EMEA Companies and operate their
businesses under the jurisdiction of the English Court and in
accordance with the applicable provisions of the Insolvency Act.

Several entities, particularly, Nortel Government Solutions
Incorporated have material operations and are not part of the
bankruptcy proceedings.

As of September 30, 2008, Nortel Networks Corp. reported
consolidated assets of US$11.6 billion and consolidated
liabilities of US$11.8 billion.  The Nortel Companies' U.S.
businesses are primarily conducted through Nortel Networks Inc.,
which is the parent of majority of the U.S. Nortel Companies.  As
of September 30, 2008, NNI had assets of about US$9 billion and
liabilities of US$3.2 billion, which do not include NNI's
guarantee of some or all of the Nortel Companies' about
US$4.2 billion of unsecured public debt.

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


PORTSMOUTH FOOTBALL: Chainrai to Waive Right to Advance TV Money
----------------------------------------------------------------
Owen Gibson at The Guardian reports that Portsmouth Football Club
owner Balram Chainrai will assure the Premier League he is
prepared to waive his right to advance TV money.

According to the report, it is believed that the Premier League
had been told that the GBP6 million Portsmouth's administrator is
seeking in advance television money would be paid directly to Mr.
Chainrai's Portpin Ltd. in part repayment of a GBP13.5 million
loan that he made to the club last year.  The report says Mr.
Chainrai had partly secured the loan on future television
revenues.  The Premier League will not hand over any advance until
it is sure it will be used to pay football creditors and keep
Portsmouth running, the report notes.

The report relates a spokesman for Mr. Chainrai, who has extended
a GBP15 million overdraft to the administrator to help see
Portsmouth through to the end of the season, confirmed that he had
agreed to waive his claim on the cash.  He also insisted that the
club's fourth owner of the season had no desire to buy Pompey out
of administration after persistent rumors that he was putting
together a bid with Terry Brady, father of West Ham United's vice-
chairman Karren, resurfaced, the report states.

As reported by the Troubled Company Reporter-Europe, Bloomberg
News said Portsmouth on Feb. 26 became the first team in England's
Premier League to go into administration after U.K. authorities
tried to force its closure over unpaid tax of GBP12.1 million.

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


* UK: Business Insolvencies Down 15% Year-On-Year in February
-------------------------------------------------------------
The latest Insolvency Index from Experian(R), the global
information services company, has revealed a year-on-year fall in
business insolvencies during February.

The total number of insolvencies fell by 15.1% during February
compared to the same month last year -- from 2,160 in February
2009 to 1,834 in February 2010 bringing the rate of insolvencies
down from 0.11% to 0.10%.

In comparison to the insolvency rate recorded in January (0.08%),
it was an increase.  However, January has in previous years been a
quiet month for insolvencies and despite the January to February
increase, it still follows an overall downward trend.

The overall financial strength score[1] of UK businesses continued
to improve, from 79.76 in February 2009 to 81.18 in February this
year.  The score also saw a small month-on-month improvement from
81.16 in January.

Rolf Hickmann, Managing Director of pH, an Experian company, said:
"Small businesses have far more flexibility than any other
business type.  It is easier for smaller businesses, with just one
or two employees, to easily make adjustments to their operations
and pull in the reins when times are difficult.  For larger
business, there is the security that comes with size and a well
established structure, so insolvency rates among these business
types are also low.

"However, mid sized businesses, which are seeing the highest rates
of insolvencies, are too large to be flexible and too small to
rely on a strong and established structure."

Other key highlights include:

    * Although the North East region saw the highest rate of
insolvencies, it was also one of two regions to see the highest
improvement, from an insolvency rate of 0.20% in February 2009 to
0.15% in February 2010. The other region to see the biggest
year-on-year improvement was Wales (from 0.14% to 0.08%).

    * The Greater London region continued to be the region where
businesses had the lowest financial strength score compared to
other regions.  However, it was also the region to see the biggest
year-on-year improvement from 78.11 in February 2009 to 79.99 in
February 2010.

    * The largest companies, those with 501 or more employees, saw
the greatest improvement year-on-year in the insolvency rate (from
0.20 % in February 2009 to 0.10 %).

    * The smallest businesses (with 1 to 2 employees) saw the most
improvement in their financial strength scores from 80.50 in
February 2009 to 82.48 February 2010.

    * The financial strength of businesses in the IT industry rose
from 80.61 in February 2009 to 83.60 the biggest improvement
compared to other sectors.

    * Businesses in the oil industry held the highest financial
strength score during February 86.31.

[1]The financial strength score predicts the likelihood of a
business failing in the next 12 months, with 100 being the least
likely to default and 1 being the most likely.


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


* EUROPE: EU Should Consider "Burden Sharing" on Bank Failures
--------------------------------------------------------------
Joseph Heaven and Ben Moshinsky at Bloomberg News report that
Michel Barnier, the European Union's financial services
commissioner, said EU member states should consider "burden
sharing" on bank failures through a European resolution fund.

Bloomberg relates Mr. Barnier said at a Brussels conference that
financial institutions should be called on to contribute to the
fund, citing the example of the "polluter pays" principle in
other industries.

"We have to ensure that those involved assume their
responsibility," Bloomberg quoted Mr. Barnier as saying.  "Why
should the taxpayer foot the bill?"

                            *********

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

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

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

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

                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *