TCREUR_Public/100519.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, May 19, 2010, Vol. 11, No. 097

                            Headlines



B E L A R U S

BPS-BANK: Moody's Affirms B2 Long-Term Foreign Currency Rating


C Y P R U S

TRANSPORTATION INVESTMENTS: Moody's Keeps Ba3 Corp. Family Rating


G E R M A N Y

ALMATIS BV: Seeks U.S. Nod to Pay Claims of Foreign Creditors
ARCANDOR AG: Triton to Reassess Karstadt Bid; Union Talks Fail
GENERAL MOTORS: Expects Decision on Opel State Aid "Shortly"


G R E E C E

MARFIN EGNATIA: Moody's Corrects Report on Ratings

* GREECE: May Take Legal Action v. U.S. Banks Over Debt Crisis


H U N G A R Y

* HUNGARY: Creditor-Debtor Out-Of-Court Agreements Proposed


I C E L A N D

GLITNIR BANK: Johannesson Quits Post at House of Fraser


I R E L A N D

AWAS AVIATION: Moody's Assigns Ba2 Rating to Proposed Term Loan
RESIDENCE MEMBERS CLUB: Olivia Gaynor Long Mulls Acquisition


I T A L Y

* Moody's: Italian Leasing ABS Performance Continues to Decline


N E T H E R L A N D S

HEAD NV: S&P Raises Long-Term Corporate Credit Rating to CCC+


R U S S I A

CREDIT EUROPE: Fitch Assigns BB- Long-Term Rating on Sr. Eurobond


U K R A I N E

MKS/EKVIN: Court Commences Liquidation Proceedings
UKRTELECOM: Ukraine Has Initial Deal with Russia on Stake Sale


U N I T E D   K I N G D O M

BRITISH AIRWAYS: Secures Injunction to Stop Cabin Crew Strikes
ENTERPRISE INNS: Moody's Confirms CFR at B1; Outlook Negative
GARLANDS CALL CENTRES: In Administration; 1,158 Jobs Affected
KENSINGTON MORTGAGE: Moody's Say Servicer Infrastructure Retained
PLATINUM HOMES: In Receivership; Deloitte Appointed

RANGERS FOOTBALL: At Risk of Going Into Administration
ROYAL BANK: American Express Joins Bidding Race for WorldPay
ROYAL BANK: Toughens Bonus Package for Executives
SACKVILLE PROPERTIES: May Seek Waiver From RBS on GBP63MM Loan
SCOTTISH WIDOWS: Fitch Affirms 'BB+' Rating on Subordinated Debt

TUI AG: Volcanic Ash Disruption Cost Travel Unit Around GBP90MM


X X X X X X X X

* ALVAREZ & MARSAL: Thomas Kolaja Joins as Head of Poland Office




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B E L A R U S
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BPS-BANK: Moody's Affirms B2 Long-Term Foreign Currency Rating
--------------------------------------------------------------
Moody's Investors Service has upgraded the long-term global local
currency deposit rating of Belpromstroibank (BPS-Bank) to Ba3 from
B1.  The bank's B2 long-term foreign currency deposit rating, Not
Prime short-term local and foreign currency deposit ratings were
affirmed, while the E+ BFSR remained unchanged.  The B2 ratings
and the BFSR were not subject to the rating review.  All ratings
now carry a stable outlook.

This rating action concludes the rating review initiated by
Moody's in December 2009 following the acquisition of a 93.27%
stake in BPS-Bank by Russia's Sberbank (rated Baa1/Prime-2).  The
bank's foreign currency deposit rating of B2 was unaffected by the
rating review since it is constrained by the foreign currency
deposit ceiling for Belarus of B2.

"The upgrade of BPS-Bank's global local currency deposit rating
reflects Moody's view of the prospective level of parental support
for the bank on the part of its new shareholder.  At the same
time, the rating agency does not expect the acquisition to have
any immediate effect on BPS-Bank's intrinsic financial strength,"
said Maxim Bogdashkin, Lead Analyst at Moody's for BPS-Bank.

Moody's assessment of the probability of parental support is high,
which is driven by Sberbank's majority control over the issuer,
high strategic fit, which is evidenced by Sberbank's previously
announced capital and funding plans towards BPS-Bank and by the
possible reputational risks for the parent.

"Although some of the capital and funding objectives have already
materialised in BPS-Bank's business plan for 2010, Sberbank has
not yet officially disclosed its overall strategy for BPS-Bank and
the Belarussian market," added Mr. Bogdashkin.

Moody's previous rating action on BPS-Bank's ratings was on 14
December 2009, when the agency placed the B1 long-term local
currency deposit rating on review for possible upgrade following
an official announcement that Sberbank would acquire a 93.27%
stake in BPS-Bank by year-end 2009.

The principal methodologies used in rating BPS-Bank were "Bank
Financial Strength Ratings: Global Methodology" (February 2007)
and "Incorporation of Joint-Default Analysis into Moody's Bank
Ratings: A Refined Methodology" (March 2007), which are available
on www.moodys.com in the Rating Methodologies sub-directory under
the Research & Ratings tab.  Other methodologies and factors that
may have been considered in the process of rating this issuer can
also be found in the Rating Methodologies sub-directory on Moody's
website.

Headquartered in Minsk, Belarus, BPS-Bank reported audited total
consolidated assets and net profit in accordance with IFRS of
US$1.7 billion and US$36.0 million, respectively, as of YE2009.

Incorporated in Russia, Sberbank is the largest bank in the
Central and Eastern Europe (CEE) and is majority owned by the
Central Bank of Russia.  It reported total assets of US$235
billion at YE2009.


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C Y P R U S
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TRANSPORTATION INVESTMENTS: Moody's Keeps Ba3 Corp. Family Rating
-----------------------------------------------------------------
Moody's Investors Service affirmed the Ba3 corporate family rating
of Transportation Investments Holding Ltd., which is the parent
company of National Transportation Group, or N-Trans.  The outlook
has been changed to stable from negative.

The change in rating outlook reflects N-Trans' resilient operating
performance, reasonable cash generation and ability to limit
deterioration of its credit metrics in the challenging economic
environment of 2009.  The action additionally considers the
group's extended debt maturity profile and improved liquidity.
Though the on-going recovery of the demand for the group's rail-
based transportation and port terminal services is yet to be
proved sustainable, Moody's believes that the group is well-
positioned in the Russian market to restore a reasonable cushion
under its financial metrics within its current rating category by
the end of 2010.  The outlook stabilization also factors in (i)
Moody's understanding that significant dividend payments in 2008-
2009 were decided by the group's private shareholders based on
large cash proceeds from investing activities and (ii) the
shareholders' stated commitment to adjust, if necessary, dividend
policy to prioritize debt repayments and de-leveraging.

N-Trans has benefited from its sustainable rail-based oil
transportation and oil terminal services in the crisis
environment, while its engagement in general cargo transportation
and container terminal business should drive its growth in an
economic recovery going forward. Based on its capex flexibility,
tight cost control, reasonable cost pass-through and disciplined
working capital management, the group has continued to generate
cash flow from operations significantly exceeding its capex.  With
its 2009 significant dividend payments driven by extraordinary
proceeds from sale of subsidiaries, the group managed to preserve
considerable cash amount.  In 2009, the group's 2009 EBITA margin
is expected to remain reasonably close to 25%, Debt to EBITDA is
estimated at 2.4x, which is slightly higher than expected, FFO to
Net Debt should be at around 40%; all the ratios incorporate
Moody's standard and specific analytical adjustments. N-Trans'
2009 RCF to Net Debt adjusted in line with the agency's
methodology may be formally even negative, taken into account the
significant dividend payments.  So far as the payments were driven
by the extraordinary cash proceeds from investing activities, the
ratio was considered as accommodated within the rating category.
However, the agency notes that significant dividend payments, if
continued, would threaten the rating.

N-trans improved its debt maturity and currency profile and
arranged for new bank backup facilities to support its funding
requirements.  As of the end of Q1 2010, its liquidity was sound,
with all the requirements covered, factoring in reasonably
expected cash generation, available cash reserves and long-term
committed unused bank facilities.  The cash reserves and unused
facilities more than covered short-term debt obligations.

The stable outlook reflects Moody's expectation that N-trans will
see at least a moderate growth in freight volumes and port
terminal throughput over the upcoming months and must be able
build up a reasonable cushion under its financial metrics by end-
2010 in line with its own projections, with its leverage to
restore to 2.0x and RCF to Net Debt to significantly improve
towards mid thirties.  The agency expects the group to sustain the
strong liquidity.

The last rating action on N-Trans was implemented on December 29,
2008, when Moody's changed the outlook on the group's Ba3 rating
to negative.

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

Cyprus-based Transportation Investments Holding Ltd. is the parent
company of N-Trans, which is one of the largest private rail
transportation businesses and port terminal operators in Russia.
The group's key business segments (rail transportation services
and port terminal operations) consolidated under two Cyprus-
domiciled subsidiaries - Globaltrans Investment PLC and Global
Ports Investments PLC, respectively.  N-Trans' 2009 revenue is
estimated at around US$1.5 billion, with Globaltrans' contribution
of 76% and Global Ports' share of 18%.


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G E R M A N Y
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ALMATIS BV: Seeks U.S. Nod to Pay Claims of Foreign Creditors
-------------------------------------------------------------
Almatis B.V. and its affiliated debtors sought and obtained
interim approval from the U.S. Bankruptcy Court to earmark as much
as US$23 million to pay the pre-bankruptcy claims of their foreign
creditors.

The claims are on account of goods and services provided by the
Foreign Creditors for the production and transportation of
specialty alumina products for the Debtors' customers located
throughout the world.  The creditors include suppliers, brokers,
and duty collectors, among others.

The Debtors proposed to pay their Foreign Creditors to prevent
the latter from withholding goods, asserting liens or terminating
service agreements or other actions detrimental to the Debtors'
operations, according to Michael Rosenthal, Esq., at Gibson Dunn
& Crutcher LLP, in New York.

Mr. Rosenthal said that several of the Foreign Creditors are not
likely to be subject to the jurisdiction of the U.S. Bankruptcy
Court, which oversees the Debtors' Chapter 11 cases.  "Foreign
creditors may consider themselves to be beyond the jurisdiction
of this Court, disregard the automatic stay and engage in conduct
that disrupts the Debtors' domestic and international
operations."

Judge Glenn also authorized the Debtors' banks and other
financial institutions to honor checks and transfers in relation
to the Foreign Creditor Claims payment.

In addition to the payment of the Foreign Creditors' claims, the
Debtors also obtained Court approval to continue a volume
purchase rebate program and pay all pre-bankruptcy claims
outstanding under that program.

Under the Rebate Program, the Debtors provide bulk rebates to
about 10 customers, which may qualify as foreign creditors, in
the form of a credit that may be applied against additional
orders.  The cost of maintaining the Program will not exceed
EUR200,000 for 2010 based on the Debtors' estimate.

In connection with the Program, the Court also authorized the
Debtors to reconcile accounts with suppliers and customers in the
ordinary course of their businesses regardless of the prepetition
or postpetition nature of any debit or credit involved in the
reconciliation.

The Court will consider final approval of the Debtors' request on
May 17, 2010.

                       About Almatis Group

Alamtis B.V., and its affiliates filed for Chapter 11 on April 30,
2010 (Bankr. S.D.N.Y. Lead Case No. 10-12308).  Almatis B.V.
estimated assets of US$500 million to US$1 billion and debts of
more than US$1 billion as of the bankruptcy filing.

Almatis, operationally headquartered in Frankfurt, Germany, is a
global leader in the development, manufacture and supply of
premium specialty alumina products.  With nearly 900 employees
worldwide, the company's products are used in a wide variety of
industries, including steel production, cement production, non-
ferrous metal production, plastics, paper, ceramics, carpet
manufacturing and electronic industries.  Almatis operates nine
production facilities worldwide and serves customers around the
world.  Until 2004, the business was known as the chemical
business of Alcoa.  Almatis is now owned by Dubai International
Capital LLC, the international investment arm of Dubai Holding.

Michael A. Rosenthal, Esq., at Gibson, Dunn & Crutcher LLP, serves
as counsel to the Debtors in the Chapter 11 cases.  & German
Counsel: Linklaters LLP is the special English and German counsel
and De Brauw Blackstone Westbroek N.V. is Dutch counsel.  Epiq
Bankruptcy Solutions, LLC, serves as claims and notice agent.


ARCANDOR AG: Triton to Reassess Karstadt Bid; Union Talks Fail
--------------------------------------------------------------
Holger Elfes at Bloomberg News reports that private equity company
Triton is reassessing whether to buy insolvent German department-
store chain Karstadt, as its plan may become "obsolete" after
talks with the Ver.di trade union failed.

Bloomberg relates Ver.di said earlier Monday talks with the
potential buyer ended last week without agreement because Triton
insisted on further wage cuts.

Workers at Karstadt, a unit of Arcandor AG, have accepted pay cuts
worth EUR150 million (US$186 million) and rejected further
concessions, Bloomberg notes.

The Troubled Company Reporter-Europe, citing Reuters, reported on
April 30, 2010, that Triton won more time to negotiate a deal to
buy Karstadt after asking for further concessions from workers and
landlords.  Reuters disclosed Mr. Goerg said the creditor
committee of Karstadt agreed to extend the deadline for the sale
to May 28, having initially aimed to close the deal by the end of
April.

                         About Arcandor AG

Germany-based Arcandor AG (FRA:ARO) -- http://www.arcandor.com/--
formerly KarstadtQuelle AG, is a tourism and retail group.  Its
three core business areas are tourism, mail order services and
department store retail.  The Company's business areas are covered
by its three operating segments: Thomas Cook, Primondo and
Karstadt.  Thomas Cook Group plc is a tour operator with
operations in Europe and North America, set up as a result of a
merger between MyTravel and Thomas Cook AG.  It also operates the
e-commerce platform, Thomas Cook, supporting travel services.
Primondo has a portfolio of European universal and specialty mail
order companies, including the core brand Quelle.  Karstadt
operates a range of department stores, such as cosmopolitan
stores, including KaDeWe (Kaufhaus des Westens), Karstadt
Oberpollinger and Alsterhaus; Karstadt brand department stores;
Karstadt sports department stores, offering sports goods in a
variety of retail outlets, and a portal, karstadt.de that offers
online shopping, among others.

As reported by the Troubled Company Reporter-Europe, a local court
in Essen formally opened insolvency proceedings for Arcandor on
September 1, 2009.  The proceedings started for the Arcandor
holding company and for 14 units, including the Karstadt
department-store chain and Primondo mail-order division.

Arcandor filed for bankruptcy protection after the German
government turned down its request for loan guarantees.  On
June 8, 2009, the government rejected two applications for help by
the company, which employs 43,000 people.  The retailer sought
loan guarantees of EUR650 million (US$904 million) from Germany's
Economy Fund program.  It also sought a further EUR437 million
from a state-owned bank.


GENERAL MOTORS: Expects Decision on Opel State Aid "Shortly"
------------------------------------------------------------
Nick Reilly, the chief executive of General Motors Co.'s European
Opel and Vauxhall brands, expects to hear from governments in
Germany, Spain, Poland and Austria "very shortly" on possible
state aid to help finance the company's turnaround plan, Christoph
Rauwald and Nico Schmidt at Dow Jones Newswire report, citing a
letter to staff.

Dow Jones notes the letter said a final agreement with European
labor unions over cost savings worth "over US$300 million
annually" is also expected to be reached in due course.

GM Europe's financing need for the planned restructuring and
investment is EUR3.7 billion, Dow Jones discloses.  GM pledged to
provide EUR1.9 billion, while the remaining financing is expected
to come from European governments through loans and loan
guarantees, Dow Jones states.

According to Dow Jones, a document from the German economy
ministry, dated May 17 said "important conditions for the support
of Opel's restructuring plan still haven't been fulfilled."

"The company hasn't provided a complete financing (plan) yet," the
document said, noting that decisions on the magnitude of state aid
from other European countries as well as the exact cost savings
from workers are still pending, Dow Jones relates.

"Opel so far hasn't named a bank, which would be ready to provide
the guaranteed loan, but plans (to do this) in the short term,"
the document said, Dow Jones notes.

                               Loss

Dow Jones relates GM Monday posted a US$506 million first-quarter
loss before interest and income tax for its European operations
after a US$1.99 billion loss in the same period last year.
According to Dow Jones, Mr. Reilly noted that the first-quarter
loss was "an improvement of US$300 million versus the fourth
quarter last year."

                       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 December 31, 2009, GM had total assets of US$136.295 billion
against total liabilities of US$107.340 billion.  At December 31,
2009, total equity was US$21.249 million.

                     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)


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G R E E C E
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MARFIN EGNATIA: Moody's Corrects Report on Ratings
--------------------------------------------------
Moody's Investors Service released a report on April 30, 2010,
regarding its downgrade of 9 Greek banks.  Moody's is correcting
the report as to Marfin Egnatia Bank SA, Egnatia Finance plc.  The
correct release states:

Moody's has downgraded the bank financial strength ratings (BFSRs)
as well as the deposit and debt ratings of nine Greek banks to
reflect their weakening stand-alone financial strength and the
anticipated additional pressures stemming from the country's
challenged economic prospects.  The banks' deposit and debt
ratings remain on review for possible downgrade and will be
concluded at the same time as Moody's ongoing review of the
country's sovereign rating, which serves as a reference point with
which to impute bank rating uplift as a result of possible
systemic support.

The banks affected by the rating action are: National Bank of
Greece, EFG Eurobank Ergasias SA, Alpha Bank AE, Piraeus Bank,
Emporiki Bank of Greece, Agricultural Bank of Greece, General Bank
of Greece, Marfin Egnatia Bank and Attica Bank.  A detailed list
of the rating actions is provided at the end of this release.

Moody's says that the acute economic strain facing Greece is
materially impacting the banking sector's financial condition,
requiring it to be further supported.  "Increasingly challenging
economic prospects point to low business growth, increased loan
quality problems and continued pressure on margins.  Based on the
events of the past few weeks, Moody's expects the Greek banking
system to face heightened challenges, thus necessitating a
fundamental repositioning of the banks' ratings", said Mardig
Haladjian, Senior Vice President.

Although additional measures taken to address fiscal imbalances at
the national level are positive for the sovereign's
creditworthiness, they may come at a cost of depressing economic
growth over the short to medium term.  Negative growth will in
turn give rise to unemployment, lower consumer disposable income
and reduced profitability in the small- and medium-sized
enterprise (SME) and corporate sectors.  Mr. Haladjian added that
"Moody's expects the upward trend in non-performing loans, which
began in 2008, to continue in 2010 and 2011. Taken together, these
factors will place significant additional pressure on the banking
sector's already weakened asset quality and profitability."

The banks' funding franchises have also weakened over the past few
months.  The erosion of market confidence caused by the country's
fiscal problems has curtailed the banks' access to the interbank
and bond markets.  As a result, the banks have had to rely
increasingly on the ECB to manage their liquidity needs -- indeed,
ECB funding now accounts for approximately 15% of Greek commercial
banks' total liabilities.  Moody's expects that, over the
foreseeable future, Greek banks are likely to face very difficult
conditions in the wholesale markets and will therefore continue to
rely on ECB funding.  In this regard, Moody's takes comfort that
the ECB will remain a reliable source of funding for the banks
until market confidence can be restored.  However, access to ECB
funding is not unlimited and Moody's will continue to closely
monitor each bank's funding needs and the assets available to post
as collateral for ECB funding.

The banks' BFSRs carry a negative outlook to capture the
possibility of further deterioration in the country's economic
conditions, which would necessitate additional liquidity and
solvency support.

The specific rating changes implemented are as follows:

National Bank of Greece SA, NBG Finance plc, and National Bank of
Greece Funding Limited:

- Bank financial strength rating downgraded to D+ from C- (mapping
into a baseline credit assessment (BCA) of Ba1); rating remains on
negative outlook

- Deposit ratings downgraded to Baa2/Prime-2 from A3/Prime-2;
ratings remain on review for downgrade

- Senior unsecured debt rating downgraded to Baa2 from A3; rating
remains on review for downgrade

- Subordinated debt ratings downgraded to Baa3 from Baa1; rating
remains on review for downgrade

- Backed (government-guaranteed) senior unsecured MTN remains
unchanged at A3 on review for downgrade

- Preferred Stock (Hybrid Tier 1) downgraded to B1 from Ba1;
rating remains on negative outlook

EFG Eurobank Ergasias SA, EFG Hellas plc, EFG Hellas (Cayman
Islands) Limited, and EFG Hellas Funding Limited:

- Bank financial strength rating downgraded to D from C- (mapping
into a BCA of Ba2); rating remains on negative outlook

- Deposit ratings and senior unsecured debt ratings downgraded to
Baa3/Prime-3 from A3/Prime-2; ratings remain on review for
downgrade

- Commercial paper downgraded to Prime-3 from Prime-2; rating
remains on review for downgrade

- Subordinated debt ratings downgraded to Ba1 from Baa1; rating
remains on review for downgrade

- Backed (government-guaranteed) senior unsecured MTN unchanged at
A3 on review for downgrade

- Preferred Stock (Hybrid Tier 1) downgraded to B2 from Ba2;
rating remains on negative outlook

Alpha Bank AE, Alpha Credit Group plc, Alpha Group Jersey Limited:

- Bank financial strength rating downgraded to D from C- (mapping
into a BCA of Ba2); rating remains on negative outlook

- Deposit and senior unsecured debt ratings downgraded to
Baa3/Prime-3 from A3/Prime-2; ratings remain on review for
downgrade

- Commercial Paper downgraded to Prime-3 from Prime-2; rating
remains on review for downgrade

- Backed (government-guaranteed) senior unsecured unchanged at A3
on review for downgrade

- Subordinated debt ratings downgraded to Ba1 from Baa1; rating
remains on review for downgrade

- Preferred Stock (Hybrid Tier 1) downgraded to B2 from Ba2;
rating remains on negative outlook

Piraeus Bank SA, Piraeus Group Finance plc, and Piraeus Group
Capital Limited:

- Bank financial strength rating downgraded to E+ from D+ (mapping
into a BCA of B1); rating remains on negative outlook

- Deposit and senior unsecured debt ratings downgraded to Ba1/Not
Prime from Baa1/Prime-2; long-term rating remains on review for
downgrade

- Backed (government-guaranteed) senior unsecured unchanged at A3
on review for downgrade

- Subordinated debt ratings downgraded to Ba2 from Baa2; rating
remains on review for downgrade

- Commercial Paper downgraded to Not-prime from Prime-2

- Preferred Stock (Hybrid Tier 1) downgraded to Caa1 from Ba3;
rating remains on negative outlook

Agricultural Bank of Greece SA, ABG Finance International plc:

- Bank financial strength ratings downgraded to E+ from D (mapping
into a BCA of B2); rating remains on negative outlook

- Deposit and senior unsecured debt ratings downgraded to
Baa3/Prime-3 from Baa1/Prime-2; ratings remain on review for
downgrade

- Subordinated debt ratings downgraded to Ba1 from Baa2; rating
remains on review for downgrade

Emporiki Bank of Greece SA, Emporiki Group Finance plc:

- Bank financial strength ratings downgraded to E+ from D (mapping
into a BCA of B1); rating remains on negative outlook

- Deposit and senior unsecured debt ratings downgraded to
Baa2/Prime-2 from A3/Prime-2; ratings remain on review for
downgrade

The ratings of Emporiki Bank impute support from its French parent
bank, Credit Agricole SA.

- Subordinated debt rating downgraded to Baa3 from Baa1; rating
remains on review for downgrade

Marfin Egnatia Bank SA, Egnatia Finance plc:

- Bank financial strength ratings downgraded to E+ from D (mapping
into a BCA of B1); ratings remain on negative outlook

- Deposit and senior unsecured debt ratings downgraded to
Baa2/Prime-2 from Baa1/Prime-2; outlook changed to developing

On the down side, the rating could be lowered if the bank's BCA
were to be downgraded due to further weakening of the Greek
franchise, while on the upside the rating could converge with that
of its higher-rated Cyprus-based parent bank, once the merger is
concluded.

- Subordinated debt ratings downgraded to Baa3 from Baa2, with
developing outlook

Bank of Attica SA, Attica Funds plc:

- Bank financial strength ratings downgraded to E+ from D (mapping
into a BCA of B1); outlook changed to negative

- Deposit and senior unsecured debt ratings downgraded to Ba2 from
Ba1; rating remains on review for downgrade

- Subordinated debt rating downgraded to Ba3 from Ba2; rating
remains on review for downgrade

General Bank of Greece SA:

- Bank financial strength ratings downgraded to E+ from D (mapping
into a BCA of B1); rating remains on negative outlook

- Deposit ratings downgraded to Baa2/Prime-2 from Baa1/ Prime-2;
ratings remain on review for downgrade

The ratings of General Bank impute support from its French parent
bank, Societe Generale.

The previous rating actions on National Bank of Greece, EFG
Eurobank Ergasias, Alpha Bank, Piraeus Bank, Agricultural Bank of
Greece and Emporiki Bank of Greece, were implemented on 23 April
2010, when ratings were placed on review for possible downgrade.
The last rating action on Marfin Egnatia Bank SA was on 23
September 2009 when the BFSR was downgraded to D from D+.  The
last rating action on Bank of Attica SA was implemented on 24
April 2007 when Moody's assigned global local currency deposit
ratings.  The last rating action on General Bank of Greece SA was
implemented on 15 December 2009 when Moody's downgraded the bank's
BFSR to D.

The principal methodologies used in rating these issuers are
Moody's "Bank Financial Strength Ratings: Global Methodology",
published in February 2007, and "Incorporation of Joint-Default
Analysis into Moody's Bank Ratings: A Refined Methodology",
published in March 2007, and "Moody's Guidelines for Rating Bank
Hybrid Securities and Subordinated Debt", published in November
2009, which are available on www.moodys.com in the Rating
Methodologies sub-directory under the Research & Ratings tab.
Other methodologies and factors that may have been considered in
the process of rating these issuers can also be found in the
Rating Methodologies sub-directory on Moody's website.

All of the nine rated banks affected by today' rating actions are
headquartered in Athens, Greece.

National Bank of Greece SA reported total assets of EUR113.4
billion at the end of December 2009.

EFG Eurobank Ergasias reported total assets of EUR84.3 billion at
the end of December 2009.

Alpha Bank SA reported total assets of EUR69.6 billion at the end
of December 2009.

Piraeus Bank SA reported total assets of EUR54.3 billion at the
end of December 2009.

Agricultural Bank of Greece SA reported total assets of EUR32.8
billion at the end of December 2009.

Emporiki Bank of Greece SA reported total assets of EUR28.4
billion at the end of December 2009.

Marfin Egnatia Bank SA reported total assets of EUR23.2 billion at
the end of December 2009.

Bank of Attica SA reported total assets of EUR5.6 billion at the
end of December 2009.

General Bank of Greece SA reported total assets of EUR4.8 billion
at the end of December 2009.


* GREECE: May Take Legal Action v. U.S. Banks Over Debt Crisis
--------------------------------------------------------------
Timothy R. Homan at Bloomberg News reports that Greek Prime
Minister George Papandreou said that Greece is considering taking
legal action against U.S. investment banks that might have
contributed to the country's debt crisis.

"I wouldn't rule out that this may be a recourse," Mr. Papandreou,
as cited by Bloomberg, said, in response to questions about the
role of U.S. banks in the crisis, in an interview on CNN's "Fareed
Zakaria GPS."

According to Bloomberg, Mr. Papandreou said the decision on
whether to go after U.S. banks will be made after a Greek
parliamentary investigation into the cause of the crisis.

"Greece will look into the past and see how things went,"
Bloomberg quoted Mr. Papandreou as saying.  "There are similar
investigations going on in other countries and in the United
States.  This is where I think, yes, the financial sector, I hear
the words fraud and lack of transparency.  So yes, yes, there is
great responsibility here."

Bloomberg says in the days leading up to the May 10 announcement
of a loan package worth almost US$1 trillion to halt the spread of
Greece's fiscal woes, European Union regulators were examining
whether speculators manipulated the prices of bonds and equities
and contributed to the crisis.

Bloomberg recalls the Committee of European Securities Regulators
said on May 7 it was investigating "exceptional volatility" in the
markets and would work with other regulators, including the U.S.
Securities and Exchange Commission, as part of a coordinated
clampdown.

                           Debt Service

Separately, Jann Bettinga and Christian Vits at Bloomberg News
report that Deutsche Bank AG Chief Executive Officer Josef
Ackermann said Greece may not be able to repay its debt in full,
arguing it would require "incredible efforts".

"I would doubt that Greece over time will be in a position to come
up with the economic potential" to pay all it owes," Bloomberg
quoted Mr. Ackermann, as saying in an interview with ZDF
television aired late Thursday.  Greece needs to be stabilized as
a collapse of the country would most likely trigger a contagion of
other countries and lead to "a form of meltdown."

According to Bloomberg, Mr. Ackermann said in the interview a
restructuring of Greece's debt must be prevented and pressure
should be increased on the country to tackle its budget problems.
Bloomberg notes Mr. Ackermann said if the measures taken to aid
Greece turn out not to be fully sufficient, then debt
restructuring "may still be considered".


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


* HUNGARY: Creditor-Debtor Out-Of-Court Agreements Proposed
-----------------------------------------------------------
MTI-Econews reports that the business daily Vilaggazdasag on
Monday said that it could become easier for companies to avoid
bankruptcy or liquidation if the Hungarian Banking Association
approves what is known as the "Budapest principles".  Under the
"Budapest principles," creditors and debtors could reach out-of-
court agreements to settle or reschedule claims.

The Hungarian Banking Association is currently considering
the document, which has been drawn up by experts from
Ridge Road Financial Consulting, CMS Cameron McKenna and
PricewaterhouseCoopers with the involvement of banking experts.


=============
I C E L A N D
=============


GLITNIR BANK: Johannesson Quits Post at House of Fraser
-------------------------------------------------------
Andrew Ward at The Financial Times reports that Jon Asgeir
Johannesson, who was Glitnir Bank's largest shareholder before it
collapsed in 2008, is to step down as director of House of Fraser
after he was hit by a US$2 billion U.S. lawsuit accusing him of
fraud.

The FT relates people close to the British fashion retailer said
Mr. Johannesson tendered his resignation on Thursday, nearly four
years after leading a consortium that took the company private.

According to the FT, people familiar with the situation said his
position on the House of Fraser board had become untenable after
the UK High Court issued a freezing order on his worldwide assets
in connection with the U.S. lawsuit.

                              Lawsuit

As reported by the Troubled Company Reporter-Europe on May 14,
2010, Glitnir Bank commenced legal action in the Supreme Court of
the State of New York against Mr. Johannesson, formerly its
principal shareholder; Larus Welding, previously Glitnir's Chief
Executive; Thorsteinn Jonsson, its former Chairman; and other
former directors, shareholders and third parties associated with
Johannesson, for fraudulently and unlawfully draining more than
$2 billion out of the Bank.

Glitnir is also taking action against its former auditors
PricewaterhouseCoopers, for facilitating and helping to conceal
the fraudulent transactions engineered by Johannesson and his
associates, which ultimately led to the Bank's collapse in October
2008.

Glitnir has also secured a freezing order from the High Court in
London against Mr. Johannesson's worldwide assets, including two
apartments in Manhattan's exclusive Gramercy Park neighborhood,
for which he paid approximately $25 million.

Mr. Johannesson -- beneficial owner of the now-defunct Baugur
investment group -- is understood to be domiciled in the United
Kingdom, and still holds a number of high-profile directorships
there, including Iceland Foods and House of Fraser, two of the
UK's best-known retailers.

The lawsuit, filed in New York on May 11, shows:

    * How a cabal of businessmen led by Mr. Johannesson conspired
      to systematically loot Glitnir Bank in order to prop up
      their own failing companies

    * How Mr. Johannesson and his co-conspirators seized control
      of Glitnir, removing or sidelining experienced Bank
      employees -- and abused this control to place the Bank in
      extreme financial peril

    * How Mr. Johannesson, Mr. Welding and the other Defendants
      facilitated and concealed their diversions from the Bank by
      overriding Glitner's financial risk controls, violating
      Iceland's banking laws, and orchestrating a blizzard of
      convoluted stock "parking" transactions

    * How the individual Defendants, with the complicity of
      Glitnir's auditor PwC, raised $1bn from investors in New
      York without revealing the truth about the Bank's financial
      exposures to Mr. Johannesson and his co-conspirators
    * How the Defendants' transactions cost Glitnir more than $2bn
      and contributed significantly to the Bank's collapse

A full copy of the New York court action will be available at
http://www.glitnirbank.com/

The litigation is being piloted by Glitnir's Winding-Up Board,
which was appointed by the Icelandic Court to supervise the
liquidation of the Bank.  It follows a thorough forensic review of
Glitnir's management and transactions in the years leading up to
the Bank's collapse.

On behalf of Glitnir's creditors, the Winding-Up Board is
determined to pursue recovery of assets looted from Glitnir by
Johannesson and the other Defendants, and believes that the New
York court is the most suitable forum for doing so.  Central to
the case is the $1bn bond issue sold in September 2007 to New York
investors who were misled as to Glitnir's financial exposures.
Around 90% of Glitnir Bank's estimated 9,000 creditors are thought
to be based outside Iceland.

"There is evidence supporting the allegation that Glitnir Bank was
robbed from the inside," said Steinunn Gudbjartsdottir, chair of
the Glitnir Winding-Up Board.  "Today's legal action is a positive
step aimed at making accountable the small number of people whose
intent or negligence contributed significantly to Glitnir's
demise."

Glitnir has already filed separate litigation against some of the
individual Defendants in Iceland.  It has also made a relevant
submission to Iceland's Special Prosecutor and Icelandic
authorities.  The Icelandic Government has also been notified
about today's litigation.

Last month, a report from Iceland's Special Investigation
Commission ruled that Iceland's financial collapse was partly
caused by the disproportionate exercise influenced over the
country's banks by a small group of businessmen, including Mr.
Johannesson.

Glitnir Bank's Winding-Up Board's legal representation is Steptoe
& Johnson, LLP (New York) and Slaughter and May (London).


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


AWAS AVIATION: Moody's Assigns Ba2 Rating to Proposed Term Loan
---------------------------------------------------------------
Moody's Investors Service assigned a Ba3 Corporate Family Rating
to AWAS Aviation Capital Limited, well as a Ba2 rating to the
company's proposed US$530M six-year Secured Term Loan issuance.

The rating reflects AWAS' monoline nature, asset impairments,
aggressive growth strategy and reliance on secured funding.  The
rating also considers the company's strong capital levels,
relatively well-balanced risk exposures (geographic, aircraft and
customer), and experienced management team.

The monoline nature of AWAS' operations represents a key
constraint on the rating.  Although the company has benefited from
growth in emerging markets air travel, the airline industry is
cyclical in nature.  The current down cycle has been accompanied
by weakened aircraft demand, lower lease renewal rates and
declines in aircraft utilization levels.  These conditions have
led to declining aircraft values, resulting in AWAS recording
sizeable asset impairment charges during the past two years,
determined under IFRS accounting rules that are more stringent in
this regard than U.S. GAAP.  These factors have imposed lower
profitability on the firm, and also have potential adverse
consequences for access to funding, in Moody's view.

AWAS' high projected growth rate, manifest by its relatively large
order book and increasing new aircraft deliveries over the next
few years, is an important risk factor influencing the rating.  In
Moody's experience, rapid growth implies increased lease placement
and funding related risks, as aircraft are generally acquired on a
speculative basis.  Like other industry participants, AWAS has
successfully placed most upcoming new deliveries (through mid-
2011), but maintaining this posture in the face of rising aircraft
deliveries could become challenging if demand factors stall or
weaken unexpectedly.  Moody's also notes that there are risks
associated with remarketing or sale of older aircraft as the
company continues to transform the composition of its fleet
through new aircraft acquisitions.

In addition, AWAS' dependence on secured debt results in a high
level of encumbered assets that limits the firm's financial and
operational flexibility.  Market sensitivity regarding expected
volatility of aircraft leasing rates and utilization increases the
risk of interruption of the firm's access to funding.  As a
partially offsetting strength, AWAS has maintained a satisfactory
capital position, aided by supportive parent, Terra Firma
Investment Group.   Furthermore, AWAS' improved debt maturity
profile subsequent to the Term Loan issuance, associated repayment
of certain debt facilities with near-term maturities, as well as
expected working capital support from Terra Firma, mitigate
liquidity concerns.  As AWAS has historically generated limited
internal capital, the rating incorporates Moody's expectation that
management will continue to rely on Terra Firma while also
employing prudent capital and liquidity strategies.

The company's concentrated ownership structure provides additional
uncertainty regarding the stability of AWAS' franchise-building,
capital and liquidity management efforts going forward. Given
Terra Firma's ownership of the company, monetization of this
investment could impact AWAS' credit profile.

AWAS' proposed Term Loan is rated Ba2, one notch above the CFR.
This reflects the Term Loan facility's stronger LTV coverage in
comparison with most of the firm's other secured debt, well as a
maximum 65% loan-to-value covenant and additional operational
covenant enhancements that also protect creditors.  Moody's notes
that the magnitude of the notching uplift assigned to the new loan
is affected by the presence of another sizeable debt facility
that, in Moody's estimation, also provides strong creditor
protections.  Together, this facility and the new loan represent
nearly 40% of the AWAS' total indebtedness.  If AWAS were to
increase the proportion of secured debt that features similar
asset protection and terms as the proposed transaction, the
ratings for all the secured debt would likely converge with the
firm's corporate family rating because the differentiation among
creditors would be lower.

The rating outlook is stable, based on expectations that the
company is reasonably well-positioned to profitably grow its
leasing operations in an improving operating environment and that
leverage, liquidity and access to capital will continue to be
carefully managed.

AWAS Aviation Capital Limited, headquartered in Dublin, Ireland,
is a major owner and lessor of commercial aircraft.


RESIDENCE MEMBERS CLUB: Olivia Gaynor Long Mulls Acquisition
------------------------------------------------------------
Olivia Gaynor Long, the wife of IT entrepreneur Brian Long, is in
"advanced exclusive discussions" with Residence's receiver Jim
Stafford to acquire the exclusive private members' club, Irish
Independent reports, citing a spokesman for the businesswoman.

According to Irish Independent, Ms. Gaynor Long is looking at
investing in Residence on behalf of her Jersey-based investment
company Tarrango Limited.

It's understood that if the deal is finalized, management of the
club will remain in the hands of twins Christian and Simon Stokes,
Irish Independent notes.

Citing The Irish Times, the Troubled Company Reporter-Europe
reported on Jan. 22, 2010, that Zurich Bank appointed a receiver
to the club after the High Court refused to extend it court
protection.  The Irish Times disclosed the bank is owed EUR2.3
million secured on charges over the club premises, insurance
policies and personal guarantees of the Stokes brothers, the
club's former owners.  The club racked up liabilities of more than
EUR4 million, according to The Irish Times.

Residence -- http://www.residence.ie/-- is a modern members club
for men and women.  The club is situated at number 41 St.
Stephen's Green, Dublin 2, in a listed building dating back to the
1700's.


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


* Moody's: Italian Leasing ABS Performance Continues to Decline
---------------------------------------------------------------
The performance of the Italian leasing asset-backed securities
(ABS) market continued to deteriorate in Q1 2010, says Moody's
Investors Service in its latest index report for the sector.
Moody's net default index increased again in Q1 to 2.8% from 2.5%
in December 2009, which is an increase of 52% over the past 12
months.  Moody's delinquency trend declined in Q1 2010 to 5.2%
from 5.8%, but this is still an increase of 11% over the past
year.  The average constant prepayment rate (CPR) remained
unchanged to 2.3%, which constitutes a decrease of 18% over the
past 12 months.

On 10 May, Moody's placed six Italian leasing transactions on
review for possible downgrade as they have shown a material
negative deviation from Moody's performance expectations.  The
review for downgrade was prompted by either cumulative defaults as
a percentage of the total securitized receivables exceeding
Moody's initial or previously revised assumption, the existence of
a principal deficiency ledger (PDL) or constant high periodic
defaults, or a combination of these.

Italy's economic recovery is fragile. GDP contracted in the three
months to December before it rose slightly in the period to March.
Private consumption, which accounts for around 60% of GDP, is
weighing on the recovery.  Consumer confidence fell in March for
the third month in a row to its lowest level since mid-2009.
Moreover, inflation remained on an increasing trend in April,
largely on the back of higher transportation prices.
Moodys.Economy.com expects it to gradually increase in the coming
months.  However, Italy's rising unemployment rate has kept
domestic demand-driven inflationary pressures subdued.  The
seasonally adjusted unemployment rate has been on an upward trend
for over two years and hit its highest rate since the data series
began in 2004 in February.

Government spending is contributing to the economic recovery.
However, with market pressure across the EU encouraging
governments to maintain fiscal restraint, this source of economic
growth may slow and the financial position of small-to-medium
sized enterprises may be negatively affected if taxes increase.

Moody's outlook for Italian leasing ABS is negative (see the
report "EMEA ABS & RMBS: 2009 Review and 2010 Outlook", January
2010).  A large portion of leasing contracts is floating rate and
hence benefit from the record low EURIBOR rates.

As of March 2010, the total outstanding pool balance in the
Italian leasing ABS market stood at EUR14.5 billion which
constitutes a decline of 27% over the past year.


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


HEAD NV: S&P Raises Long-Term Corporate Credit Rating to CCC+
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on Austria-based and The Netherlands-incorporated
sports equipment manufacturer Head N.V. to 'CCC+' from 'CCC-'.
The outlook is stable.

"At the same time, we raised our issue rating on the 10% senior
secured notes due August 2012 issued by HTM Sport GmbH (HTM), a
100%-owned subsidiary of Head, to 'CCC+' from 'CCC-'.  In
addition, we raised our issue rating on the 8.5% senior unsecured
notes due February 2014, issued by HTM, to 'CCC' from 'CC'."

The upgrades reflect Head's improved operating performance and
cash conversion, which have had a positive impact on the group's
debt protection metrics.

"The significant improvement in Head's operating cash flow
generation is primarily due to management's strict focus on
preserving cash through operating efficiencies, tight working
capital, and lower interest costs as a result of a bond exchange
offer in August 2009. In the 12 months ended March 30, 2010,
reported cash flow from operations was ?42.0 million against
negative ?3.6 million in the same period of 2009. We note that
reported operating cash flow generation included a one-off inflow
from the disposal of noncore trademarks."

"In our view, the group is adequately funded to operate through
the 2010 working capital cycle.  We believe that the group will
continue to manage working capital outflows strictly when building
inventories and to maintain minimum levels of capital expenditure,
financed with internal cash."

"We think that the ratings on Head remain highly sensitive to the
trading outcome in the third and fourth quarters of 2010.  We
could lower the ratings if the group were to encounter
difficulties that resulted in a declining operating performance or
consistently negative free cash flow generation.  This could
result from continuing negative top-line growth due to weakness in
demand from reduced consumer spending; from further pressure on
margins due to declining volumes; or from negative operating cash
flow due to excessive working capital outflows.  In our view,
rating upside is contingent on growth in profitability and more
headroom under working capital funding provisions."


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


CREDIT EUROPE: Fitch Assigns BB- Long-Term Rating on Sr. Eurobond
-----------------------------------------------------------------
Fitch Ratings has assigned CEB Capital S.A.'s upcoming issue of
USD-denominated limited recourse loan participation notes an
expected Long-term "BB-"rating.  The final rating is contingent on
the receipt of documents conforming materially to information
already received.  The size of the issuance is expected to be
US$300 million with a three-year maturity.

The proceeds are to be used solely for financing a loan to
Russia's Credit Europe Bank Ltd.  (CEBR), rated Long-term foreign
and local currency Issuer Default (IDR) 'BB-', Short-term foreign
currency IDR 'B', Support '3', Individual 'D', and National Long-
term 'A+(rus)'.  The Outlooks for CEBR's Long-term IDRs and
National Long-term rating are Stable.

The lender's claims in relation to the repayment of the loan will
rank at least equally with the claims of other senior unsecured
creditors, save those preferred by relevant (bankruptcy,
liquidation, etc.) laws.  Under Russian law, the claims of retail
depositors rank above those of other senior unsecured creditors.
At end-2009, retail deposits accounted for 12% of CEBR's total
liabilities, according to the bank's International Financial
Reporting Standards-audited accounts.

CEBR (former Finansbank Russia Ltd.) is a relatively small (but
one of top 50 in Russia commercial bank with a strong retail
focus.  CEBR is controlled by Credit Europe Bank N.V. (rated
'BB'/Stable), which is part of Credit Europe Group (CEG).  CEG is
part of a larger FIBA Holding A.S. (FIBAH), a Turkish conglomerate
owned by Husnu Ozyegin, a prominent Turkish banker and
businessman.

In Fitch's rating criteria, a bank's standalone risk is reflected
in Fitch's Individual ratings and the prospect of external support
is reflected in Fitch's Support ratings.  Collectively these
ratings drive Fitch's Long- and Short-term IDRs.


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


MKS/EKVIN: Court Commences Liquidation Proceedings
--------------------------------------------------
BG Capital reports that the Kharkiv Regional Economic Court has
commenced liquidation proceedings against MKS/Ekvin after
declaring the company bankrupt.

BG Capital recalls bankruptcy proceedings were first launched in
May 2009 after VTB Bank claimed early repayment on outstanding
debt.

According to Concorde Capital, MKS said in November 2009 it
cleared its debt to VTB Bank by transferring control of two
outlets in Kharkiv, which were named as collateral in a loan
agreement.


UKRTELECOM: Ukraine Has Initial Deal with Russia on Stake Sale
--------------------------------------------------------------
Kateryna Choursina at Bloomberg News, citing Delo, reports that
Ukrainian Deputy Prime Minister Serhiy Tigipko and Boris Titov,
chairman of Business Russia, reached preliminary agreement on the
participation of Russian capital in the purchase of stakes in
Ukraine's VAT Ukrtelecom, VAT Luhanskteplovoz and ZAT
Teploheneratsia.

As reported by the Troubled Company Reporter-Europe on Feb. 25,
2010, Bloomberg News, citing Interfax, said that Ukrtelecom sought
to delay its payment on a US$500 million loan from Deutsche Bank
AG and Credit Suisse Group AG.  Bloomberg disclosed Interfax,
citing a letter from Ukrtelecom Chief Executive Officer Heorhiy
Dzekon to the head of Ukraine's communications agency, said the
company wanted to extend the deadline for 75% of the payment by at
least three months.  According to Bloomberg, the news agency said
Ukrtelecom didn't have enough funds and wanted to avoid taking
more expensive short-term loans to pay the debt on time.

Ukrtelecom VAT (Ukrtelecom JSC) -- http://www.ukrtelecom.ua/-- is
a Ukraine-based national telecommunication operator.  It provides
telephone communication services throughout Ukraine, rendering all
kinds of telecommunication services: international, long-distance
and local telephony; data transmission including based on
Asynchronous Transfer Mode (ATM)/Frame Relay technology; Internet
network access including dial-up and broadband access based on
digital subscriber line (xDSL) technologies; granting dedicated
switched circuits for use; Integrated Services Digital Network
(ISDN); video-conference communication; satellite and wire
communication; technical maintenance of radio and television
broadcasting networks, telegraph and telex communication.  The
Company operates through 33 branches locates countrywide.


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


BRITISH AIRWAYS: Secures Injunction to Stop Cabin Crew Strikes
--------------------------------------------------------------
Judith Evans at Times Online reports that British Airways has been
granted an injunction to stop the Unite union from carrying out
cabin crew strikes that had been due to start Monday midnight.

Times Online says the High Court ruling, based on a technicality
in the balloting procedure, is set to delay the start of the first
of four five-day strikes planned for May and June.

Unite conceded it would have to call off Monday night's strikes
but said it would appeal immediately, Times Online notes.

The injunction offers temporary respite to BA in its long-running
dispute with Unite over jobs, pay and staffing, Times Online
states.

According to Times Online, the High Court found that the union
failed to comply with the legal requirement to "send everyone
eligible to vote details of the exact breakdown of the ballot
result".

James Lumley and Steven Rothwell at Bloomberg News report Tony
Woodley, Unite's joint general secretary, said the court ruling
brought a "premature end" to separate settlement talks in the
15-month-old dispute.

                       About British Airways

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

                           *     *     *

As reported in the Troubled Company Reporter-Europe on March 19,
2010, Moody's Investors Service lowered to B1 from Ba3 the
Corporate Family and Probability of Default Ratings of British
Airways plc; and the senior unsecured and subordinate ratings to
B2 and B3, respectively.  Moody's said the outlook is stable.
This concludes the review that was initiated on November 10, 2009.

The rating action reflects Moody's view that credit metrics will
not be commensurate with the previous rating category in the
medium term.  Moody's expect furthermore that metrics will be
burdened in the foreseeable future by the company's significant
pension deficit, which was at GBP2.6 billion for the APS and NAPS
schemes combined as of September 2009 (under IAS).  Moody's
nevertheless understand that under the current agreement with the
trade unions, the cash contributions to these deficits will be
frozen at GBP330 million per year for three years, subject to
approval by the Pensions Regulator and the trustees.


ENTERPRISE INNS: Moody's Confirms CFR at B1; Outlook Negative
-------------------------------------------------------------
Moody's Investors Service today confirmed Enterprise Inns plc
Corporate Family Rating (CFR) at B1, the Probability of Default
Rating at B2 and the rating of GBP275 million senior secured
floating-rate notes due 2031 at Ba2 and assigned a negative
outlook.  This concludes the review for possible downgrade
commenced 16 February 2010.

The rating has been confirmed following the conclusion of
Enterprise Inns' refinancing of its GBP1 billion bank facility
that was due to mature in May 2011.  ETI has now entered into a
forward-start facilities agreement; the total committed principal
amount in a year's time will be GBP625 million.  Enterprise Inns
intends to reduce the GBP792 million outstanding at H1 2009/10
under its existing facility to a level which would leave room for
drawings under the revolving portion of the new facility.  It
plans to reach that level by applying the net proceeds of its
asset sales program and free cash flow generation.  While Moody's
believes that Enterprise Inns will be able to meet its target in
view of its successful track record of asset sales, GBP103 million
over FY 2008/09 and GBP135 million in H1 09/10, and of reducing
net debt by GBP144 million in FY 2008/09 and by a further GBP163
million in H1 2009/10 there exists, in our opinion, considerable
execution risk.

The B1 CFR is supported by ETI's active management of a
predominantly good-quality portfolio of freehold public houses.
About half of its cash flow is generated from rental agreements
and the other half is generated from the wholesale profits earned
by supplying beer and other drinks to its tenants under tied
leasing arrangements.  The large pub estate provides geographic
diversification to revenues that are underpinned by substantive
leases for 86% of the estate.  Nevertheless, due to a challenging
operating environment that is marked by weak consumer spending,
ETI's beer sales and net rental income remain under pressure.
While the majority of its pubs perform well under the
circumstances, a minority of pubs face considerable difficulties.
The cost to ETI to support these pubs, the cost of closed pubs and
the impact of disposals resulted in a reduction of reported
consolidated EBITDA (before exceptional items) by 12% during FY
2008/09 compared to the previous fiscal year and by 9.7% in H1
2009/10 compared to H1 2008/09.

"Our outlook on the rating is negative because we expect ETI's
EBITDA to remain depressed with limited visibility in terms of
pace or duration.  This puts pressure on financial covenants that
already have limited headroom.  Furthermore, the timely reduction
of bank debt carries execution risk.  Free cash flow is
insufficient to meet the required reduction of bank debt down to
the forward-start facility amount over the next 12 months and the
success of this refinancing is largely dependent on the sale of
assets."

Given the negative outlook, there is little upside pressure on the
ratings at present.  Downward pressure could result from (i) a
slowdown in the pace of asset sales, indicating a heightened risk
of ETI not reaching the forward-start facility amount as agreed
with the banks; (ii) headroom tightening under any of Enterprise
Inns' various financial covenants; (iii) consolidated net debt to
EBITDA trending towards 8.5x or (iv) conversion to REIT status -
although this appears unlikely in the near term.

Moody's last rating action was implemented on 16 February 2010,
when Moody's downgraded Enterprise Inns' CFR to B1 from Ba3 and
placed the rating on review for possible further downgrade.

The principal methodology used in rating Enterprise Inns was the
Rating Methodology for REITs and Other Commercial Property Firms,
published in January 2006 and available on www.moodys.com in the
Rating Methodologies sub-directory under the Research & Ratings
tab.  Other methodologies and factors that may have been
considered in the process of rating this issuer can also be found
in the Rating Methodologies sub-directory on Moody's website.

Headquartered in Solihull, Enterprise Inns plc is the second-
largest pub operator in the UK.  Enterprise Inns and its wholly-
owned subsidiary Unique Pub Company have a large estate of around
7,100 tenanted pubs in England and Wales with a value of GBP5.2
billion at the quarter ending 31 March 2010.


GARLANDS CALL CENTRES: In Administration; 1,158 Jobs Affected
-------------------------------------------------------------
Contact-Centers reports that Outsourcer Garlands Call Centres has
gone into administration.

The report relates PricewaterhouseCoopers LLP were appointed to
handle the business affairs of CJ Garland & Co. and its trading
name of Garlands Call Centres on May 17.

It is thought that the loss of major contracts with Vodafone,
TalkTalk and Orange was the key factor affecting 178 staff at its
South Shields center, 621 staff at its Hartlepool center and 359
staff at its Middlesbrough center, the report says.

"Garlands Call Centres has experienced very challenging trading
conditions and more recently received notice from a number of key
clients of their intention to move their customer service work.
The Garlands' board were unable to identify a viable way forward
given the significant deterioration in contract work and high
infrastructure costs.  As such, they were left with no option than
to appoint administrators," the report quoted Nick Reed, joint
administrator at PricewaterhouseCoopers LLP, as saying.


KENSINGTON MORTGAGE: Moody's Say Servicer Infrastructure Retained
-----------------------------------------------------------------
Moody's Investors Service said that Kensington Mortgage Company's
(Kensington, not rated) servicer infrastructure was maintained
since Moody's previous visit in 2008, despite a higher dynamic
delinquency rate compared to its peers.

As part of Moody's surveillance process of residential mortgage-
backed securities transactions, it regularly meets with servicers
to monitor their quality and discuss any changes to the servicing
infrastructure since Moody's previous visit.  On March 22, Moody's
met with Kensington Mortgage Company Ltd., which is the special
servicer for 11 Moody's-rated outstanding RMBS transactions:

- Seven Residential Mortgage Securities (RMS) transactions (RMS
   16 plc through RMS 22 plc)

- Three Money Partners Securities (MPS) transactions (MPS 2, 3
   and 4 plc)

- Kensington Mortgage Securities plc Series 2007-1 (KMS).

As of February 2010, the total outstanding balance of these 11
transactions was GBP2.4 billion.

As special servicer for these transactions, Kensington's
responsibilities include: (i) overseeing the day-to-day operations
of Homeloan Management Ltd (HML, SQ2+), which is acting as the
loan administrator for these transactions; (ii) determining the
servicer's strategy; (iii) making decisions on cases that are
outside HML's mandates; and (iv) managing the repossession and
sale process of the real estate property, which includes
overseeing the third parties involved in these processes (e.g.
solicitors, asset management).

    Moody's Updated Opinion on Kensington's Servicing Operation

Since Moody's prior review, Kensington has continued to invest in
its servicing operations to strengthen its infrastructure and
controls.  Moody's continues to view positively Kensington's
behavioral score and data mining infrastructure, which drives its
call collection campaigns.  In Moody's opinion, this further
assists the servicer in developing collection strategies, which
ultimately aim at maximizing recovery.

From Moody's review, it appears that the opening hours of
Kensington's call centre (operated by HML) are slightly longer
than its peers and that it starts calling its borrowers (i.e.
after a failed direct debit) in some circumstances slightly later
than some of its peers (within 4 days vs. 48 hours).  Moody's
views positively the use of extended opening hours as it increases
the likelihood of reaching a borrower.

Kensington does not use updated credit bureau information when
assessing a borrower's financial condition in order to offer an
arrangement-to-pay or a loan modification.  Moody's would welcome
the use of credit bureau data as it validates a borrower's
indebtedness and provides additional comfort that the proposed
repayment plan (e.g. ATP or loan modification) may be sustainable.

Moody's observes that the number of months that a borrower is
delinquent at repossession has continuously increased between
November 2008 and the beginning of 2010 (2009 average: 14 months).
Moody's considers that this increase is mainly attributable to the
forbearance tools introduced by Kensington in response to the
changing economic climate and regulatory environment and the
various initiatives implemented by the government since the start
of the financial crisis to ensure that all the solutions have been
considered before beginning the foreclosure process.

Although Kensington seems to take longer to sell a repossessed
property than some of its peers (Moody's calculated UK non-
conforming 2009 average: 170 days), it seems to achieve a slightly
higher sale price as a percentage of the asking price in
comparison to Moody's calculated UK non-conforming 2009 market
average of 92%.

Moody's views positively the standardization and automation of
management information from Kensington's third parties, as it
ensures that information is comparable and has also enhanced the
overall monitoring and control framework. The work has been
completed for its asset managers and is under way for its
solicitors.

Moody's also views positively the very low turnover rate and the
experience of the staff (which we have estimated to be on average
more than five years).  Moody's further notes that the ratio of
loans per collector in the direct special servicing team is
slightly higher than some of its peers.  However, Kensington plans
to increase the number of staff within this department.

Finally, Moody's considers that the fine imposed by the Financial
Services Authority (FSA) on 12 April 2010 has no impact on its
analysis as it appears that most of the FSA's concerns have now
been addressed.

               Securitized Portfolio Performance

As of February 2010, the 90+ delinquency rate as a percentage of
the current balance was 31.15%, 32.69% and 29.27% for RMS, MPS and
KMS, respectively, which is 62%, 70% and 52% higher than the UK
non-conforming index (19.22%).  Cumulative losses as a percentage
of the original pool balance were 1.86% (RMS), 3.31% (MPS) and
2.95% (KMS), which is 22%, 118% and 94% higher than the UK non-
conforming index (1.52%).

           Kensington Servicing Infrastructure - Update

Kensington's special servicing infrastructure changed
significantly since Moody's prior review in February 2008.  During
this period, the department has grown from nine to 43 staff,
mainly as a result of the establishment of the direct special
servicing team.  A new head of department and two direct reports
were externally recruited to support the growth.  The vast
majority of the staff have prior work experience in financial
services gained as a collector, underwriter, mortgage sale or
field agent.

The department comprises two sub-departments: the special
servicing team and the possessions and asset managers team.  The
special servicing activities include all the activities which are
linked to the loan administrator (e.g. defining servicing and
collection strategy, monitoring servicer level agreement and
taking decision on cases which fell outside their mandate) and the
direct special servicing activities (i.e. Kensington takes over
the special servicing of cases of key segments of its portfolio
where more intense customer focus is required, including cases
prior to the commencement of possession proceedings, customers
with more than one facility, sensitive cases and complaints).

In addition to handling the repossession and sale processes, the
possessions and asset managers team has a customer liaison team
performing face-to-face visits at the borrower's home.  In common
with most UK servicers, the litigations, repossession and sale
activities are outsourced to third parties, with the servicer
making the key decisions (e.g. setting the asking price).  Since
Moody's prior review, Kensington has strengthened its control
infrastructure in regards to its third-party panels.


PLATINUM HOMES: In Receivership; Deloitte Appointed
---------------------------------------------------
Jennifer Rigby at Property Week reports that fixed charge
receivers have been appointed to Platinum Homes.  Property Week
relates Matt Cowlishaw and David Langton of Deloitte were
appointed on May 11.

According to Property Week, the scheme comprises 12 apartments --
3 are sold, 1 is under offer, 5 are let to tenants and 3 units are
vacant and being marketed for let.

Platinum Homes is a Milton Keynes-based residential development.


RANGERS FOOTBALL: At Risk of Going Into Administration
------------------------------------------------------
Goal.com, citing The Scotsman, reports that Rangers Football Club
could be forced into administration with debts as high as GBP80
million after being hit with a GBP24 million tax bill.

According to the report, the fine, handed by HM Revenue & Customs
after an investigation into offshore payments made to players
during the past decade, coupled with interest of GBP12 million,
could reach up to GBP54 million.

According to the report, The Scotsman said a source from the club
indicated that: "We're already struggling to pay GBP30 million we
owe the bank.  Another GBP50 million could tip us in to the abyss
of administration.

"We've been hit with a GBP24 million 'assessment' from the taxman.
The implications are horrifying.  The interest could be GBP12
million and there may also be a penalty element of between GBP12
million and GBP18 million.  This is a desperate situation."

The club is expected to appeal in a process that could take a
year, the report notes.

Rangers Football Club PLC -- http://www.rangers.premiumtv.co.uk/
-- is a United Kingdom-based company engaged in the operation of a
professional football club.  The Company has launched its own
Internet television station, RANGERSTV.tv.  The station combines
the use of Internet television programming alongside traditional
Web-based services.  Services offered include the streaming of
home matches and on-demand streaming of domestic and European
games, which include dedicated pre-match, half-time and post-match
commentary.  The Company will produce dedicated news magazine and
feature programs, while the fans can also access a library of
classic European, Old Firm and Scottish Premier League (SPL)
action.  Its own dedicated television studio at Ibrox provides
onsite production, editing and encoding facilities to produce
content for distribution on all media platforms.


ROYAL BANK: American Express Joins Bidding Race for WorldPay
------------------------------------------------------------
Caroline Copley at Reuters, citing the Financial Times, reports
American Express Co. has teamed up with U.K. private equity firm
Permira to bid for Royal Bank of Scotland's payment-processing
unit.

According to Reuters, the FT said French software firm Atos Origin
has also joined the private equity consortium of CVC Capital
Partners and Welsh Carson Anderson & Stowe to bid for RBS's Global
Merchant Services unit, which includes the WorldPay business.

RBS, 84% state-owned, is being forced by European competition
authorities to sell WorldPay and other assets, including a network
of 318 branches and its commodities business, to compensate for
billions of pounds of taxpayer money injected during the financial
crisis, Reuters discloses.

Reuters notes industry sources have said the unit is expected to
fetch GBP2.5 billion to GBP3 billion (US$4 billion to US$4.8
billion).

                            About RBS

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

                           *     *     *

As reported by the Troubled Company Reporter-Europe on March 29,
2010, Standard & Poor's Ratings Services said that it lowered its
ratings on "may pay" Tier 1 securities issued or guaranteed by The
Royal Bank of Scotland Group PLC (A/Stable/A-1) to 'C' from 'CC'.
At the same time, the rating on the RBSG-related security issued
by Argon Capital PLC was similarly lowered to 'C' from 'CC'.  The
counterparty credit ratings and stand-alone credit profiles of
RBSG and subsidiaries, and the ratings on other debt securities
issued by these entities, are unaffected.


ROYAL BANK: Toughens Bonus Package for Executives
-------------------------------------------------
Terry Murden at The Scotsman reports that Royal Bank of Scotland
agreed to toughen up its bonus package on Thursday night in
response to shareholder concerns that the initial targets set were
too easy to achieve.

According to the report, while RBS Chief executive Stephen
Hester's total potential package will barely change under the new
plan, which will entitle him to GBP6.7 million if he meets all the
criteria, the bank has revised the terms so that it will be harder
for him and the rest of the board to claim their full bonuses.

The report says the new three-year plan will mean the first set of
share options will vest at 57.5p instead of 50p under the previous
scheme, a 15% increase, and will have to hit 77.5p for the full
allocation to be awarded.

Nine executives will qualify under the new scheme, the report
notes.

                            About RBS

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

                           *     *     *

As reported by the Troubled Company Reporter-Europe on March 29,
2010, Standard & Poor's Ratings Services said that it lowered its
ratings on "may pay" Tier 1 securities issued or guaranteed by The
Royal Bank of Scotland Group PLC (A/Stable/A-1) to 'C' from 'CC'.
At the same time, the rating on the RBSG-related security issued
by Argon Capital PLC was similarly lowered to 'C' from 'CC'.  The
counterparty credit ratings and stand-alone credit profiles of
RBSG and subsidiaries, and the ratings on other debt securities
issued by these entities, are unaffected.


SACKVILLE PROPERTIES: May Seek Waiver From RBS on GBP63MM Loan
--------------------------------------------------------------
Helen Power and Rebecca O'Connor at The Times report that
Sir John Madejski is in talks with lenders over the future of one
of his biggest companies Sackville Properties.

According to the report, Mr. Madejski is in negotiations with the
Royal Bank of Scotland to safeguard Sackville's future in
expectation of a covenant breach on July 1, which would give the
bank the right to take control.

The report says Mr. Madejski is likely to press for a waiver or an
amendment to the terms of the bank's GBP63 million loan.

The property Sackville's shareholders, of which Mr. Madejski is
the biggest, are facing losses of more than GBP30 million, the
report notes.

The report relates Sackville has been hit hard by the recession
and the collapse in British property values.

Sackville owns industrial and business park properties across the
United Kingdom.


SCOTTISH WIDOWS: Fitch Affirms 'BB+' Rating on Subordinated Debt
----------------------------------------------------------------
Fitch Ratings has affirmed Scottish Widows plc's (SW) Insurer
Financial Strength Rating (IFS) at 'AA-', and Long-term Issuer
Default Rating (IDR) at 'A+'.  Both ratings have Stable Outlooks.
Fitch has additionally affirmed Clerical Medical Investment Group
Ltd's (CMIG) IFS rating at 'A+' and Long-term IDR at 'A', both of
which have Negative Outlooks.  The agency has also affirmed
Scottish Widows' and Clerical Medical Finance plc's subordinated
debt ratings at 'BB+'.

The affirmation of SW and CMIG's ratings reflects the good
capitalization of both companies and the continued strong
franchise value of SW in particular.  The potential for group
support provides some uplift to CMIG's rating which Fitch sees as
having the weaker standalone profile.

The agency's view of the two companies, on a standalone basis,
considers the greater new business prospects for SW, as well as
its stronger capitalization and brand recognition.

"Already a major UK player in terms of sales through bank
channels, Scottish Widows is well placed to benefit from any
market shift favoring bank distribution resulting from the
regulator's forthcoming Retail Distribution Review," said Philip
Wright, Associate Director in Fitch's Insurance Group.

The ultimate parent of each company is Lloyds Banking Group (LBG;
Long-term IDR 'AA-'/Outlook Stable; Individual Rating 'C').  SW
has been selected as the preferred brand for IFA-distributed
business and the CMIG brand will, over time, no longer be used.

In the context of Fitch's insurance group rating methodology, the
agency views CMIG as being "important" to the wider group, while
SW is assessed as being 'very important'.  Given SW's strength on
a standalone basis, Fitch considers that the impact of group
support would not provide significant additional protection to the
financial strength of the company, but such support provides some
uplift to CMIG's rating.  The Negative Outlook on CMIG reflects
the relative uncertainty, in Fitch's opinion, of its continued
role within the group.

The affirmation of both companies' subordinated debt issues at
'BB+' takes account of the Individual Rating of LBG of 'C' as a
negative driver of possible future payment deferral.

The ratings actions are as follows:

Scottish Widows plc:

-- Long-term IDR: affirmed at 'A+'; Outlook Stable;
-- IFS rating: affirmed at 'AA-'; Outlook Stable;
-- Subordinated debt:
    XS0230493842: affirmed at 'BB+'

Clerical Medical Investment Group Ltd:

-- Long-term IDR: affirmed at 'A+'; Outlook Negative;
-- IFS rating: affirmed at 'AA-'; Outlook Negative;
-- Subordinated debt:
    XS0132169672: affirmed at 'BB+'
    XS0103961743: affirmed at 'BB+'
    XS0222798661: affirmed at 'BB+'


TUI AG: Volcanic Ash Disruption Cost Travel Unit Around GBP90MM
---------------------------------------------------------------
Amy Wilson at The Daily Telegraph reports that volcanic ash from
Iceland has cost TUI Travel, a unit of TUI AG, around GBP90
million after the flight ban disrupted its services for 12 days
last month.

According to the report, about 175,000 holiday trips had to be
cancelled after the volcanic eruption caused regulators to impose
a no-fly zone over all of Europe.

The report relates TUI Travel made a GBP419 million loss in the
six months to the end of March, its first half, down from a GBP456
million loss a year ago.  Revenue for the half fell 8% to GBP4.93
billion, the report notes.

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

                           *     *     *

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


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


* ALVAREZ & MARSAL: Thomas Kolaja Joins as Head of Poland Office
----------------------------------------------------------------
Alvarez & Marsal has expanded its presence in Central and Eastern
Europe with the opening of a Warsaw, Poland office.  Thomas
Kolaja, founder of Warsaw-based Kolaja & Partners, an interim
management and restructuring firm dedicated to serving Central and
Eastern Europe, has joined Alvarez & Marsal as a managing director
and head of A&M's restructuring practice in Poland.

The announcement signals A&M's growing commitment to the region
with Warsaw serving as an integral connection between the firm's
teams in Moscow and Germany.

"Poland's emergence as a center for global and regional business
underscores the importance of our ongoing efforts to build a
strong A&M presence in Central and Eastern Europe," said Peter
Briggs, a managing director and head of Alvarez & Marsal's
turnaround and performance improvement practices in Germany,
Russia/CIS and Central and Eastern Europe.  "Tom's proven track
record combined with A&M's global reach will be a powerful
combination for clients of our firm and will enable Tom to
leverage A&M's established market leadership in restructuring
through a vastly expanded global network of resources."

"A&M's operational and restructuring expertise coupled with my
experience in Poland and the Central and Eastern European region
generally, will be significant as we work with companies with an
interest in the region -- both new investors and incumbents -- and
help them to become competitive on a global scale," said
Mr. Kolaja.

Mr. Kolaja specializes in corporate restructuring and interim
management developing and structuring operational and financial
solutions to maximize values in corporate turnarounds.  With two
decades of experience in restructuring, business strategy and
operational improvement, he has worked with private equity funds,
banks and multinationals across a range of industries, including
manufacturing, chemical, pharmaceuticals and energy.

Prior to joining A&M, Mr. Kolaja served as an investor, manager
and advisor for companies across Central and Eastern Europe
including in Serbia, Hungary, Romania, Ukraine and the Czech
Republic.  As founder and partner of Kolaja & Partners, Mr. Kolaja
served in a number of notable interim management roles including
as chief operating officer of Frantschach Swiecie S.A. and as vice
president of operations of Carlsberg Okocim S.A. Previously, as a
member of both the emerging markets and the chemicals teams at
Goldman Sachs, he was responsible for the development of
transactions in Poland and the Czech Republic.  Earlier in his
career, he developed strategies for the Central European markets
advising industrial companies on how to increase their
competitiveness as well as leading the restructuring of a major
Polish bank with McKinsey & Company.

Mr. Kolaja is a member of the Board of Trustees of the American
School of Warsaw, and a member of the Polish Business Roundtable
and YPO.  He has also served on the supervisory board of TRACE
(Transparent Agents and Contracting Entities), an anti-corruption
non-profit organization based in the U.S. serving blue-chip global
corporations.

Mr. Kolaja earned bachelor's degrees in chemistry and Russian from
Ohio State University, a master's degree in engineering from the
McCormick School of Engineering at Northwestern University and a
master's degree in business administration with a focus on
manufacturing from the Kellogg School of Management at
Northwestern University.  Mr. Kolaja was a Fulbright fellow at the
University of Warsaw and is fluent in English, Polish and German
and has a working knowledge of Czech and Russian.

                     About Alvarez & Marsal

Alvarez & Marsal is an independent global professional services
firm specializing in performance improvement, turnaround
management and business advisory services.


                            *********

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.  Joy A. Agravante, Valerie U. Pascual, Marites O.
Claro, Rousel Elaine T. Fernandez, Frauline S. Abangan 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 * * *