TCREUR_Public/100609.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, June 9, 2010, Vol. 11, No. 112



KA FINANZ: Moody's Withdraws 'E' Bank Financial Strength Rating


RESERVE INVEST: Moody's Changes Outlook on 'B3' Rating to Stable

C Z E C H   R E P U B L I C

* CZECH REPUBLIC: One in Five Firms Faces Bankruptcy Threat


SCANBECH A/S: Files for Insolvency in Helsingor


ARCANDOR AG: Berggruen Wins Bidding for Karstadt Unit


LISLOUGHREY LODGE: Put Into Receivership by Ulster Bank


FIAT SPA: Union Junks Labor Demands at Pomigliano Plant


BERNARD L. MADOFF: Liquidators Spar Over LuxAlpha Assets


* ROMANIA: Tax Hikes May Push 50,000 Companies Into Bankruptcy


LSR OJSC: Fitch Changes Outlook to Stable; Affirms 'B-' Rating
NOVOSIBIRSK INTEGRATED: Seeks Bankruptcy; Owes RUR1.18BB in Q1

U N I T E D   K I N G D O M

3 STEP: Faces Liquidation Following Insolvency Service Probe
CLEAR PLC: Moody's Cuts Ratings on Five Classes of Notes to 'C'
MANCHESTER UNITED: Owner's Debts Stood at GBP1.1 Billion
PORTSMOUTH FOOTBALL: Creditors to Get More Under Griffins Offer
RADAMANTIS PLC: Fitch Affirms Rating on Class G Notes at 'BB'

ST JOHN STREET: Administrator Appointed Following Loan Default
WORKSPACE GROUP: Nears Debt Refinancing Deal; Trading Profit Up

* UK: Corporate Insolvencies Set to Rise, Begbies Traynor Says



KA FINANZ: Moody's Withdraws 'E' Bank Financial Strength Rating
Moody's Investors Service has withdrawn the Baa3/Prime-3/E ratings
of KA Finanz AG, Austria, as well as the Ba1/Not-Prime/E ratings
of its subsidiary Kommunalkredit International Bank Ltd., Cyprus,
both for business reasons.

Before the rating withdrawal, the outlook on the E stand-alone
bank financial strength ratings was stable, and the outlook on the
long-term debt and deposit ratings was negative for both entities.
The E BFSRs translated to Caa3 on Moody's long-term scale.

Moody's affirmed the Aaa rating on the debt guaranteed by the
Republic of Austria with a stable outlook; this rating is not
being withdrawn.

These ratings were withdrawn:

KA Finanz AG:

  -- BFSR: E, stable outlook
  -- Long-term bank debt and deposits: Baa3, negative outlook
  -- Short-term bank debt and deposits: Prime-3
  -- Subordinated debt: Ba1, negative outlook

Outstanding debt of KA Finanz affected by the rating withdrawal:

* XS0140045302
* XS0144772927
* XS0185015541
* AT0000441209
* XS0255270380
* XS0257275098
* XS0267751245
* XS0286975973
* XS0279423775

Moody's has also withdrawn the rating of several hybrid
instruments of KA Finanz which were rated C with a stable outlook:

  -- Participation capital notes; ISINs: XS0252707624,
     XS0285503248 ;

  -- Ergaenzungskapital; ISINs: XS0270579856, XS0284217709;

  -- Capital notes issued by Kommunalkredit Capital I Limited;
     ISIN: DE000A0DHT43

Kommunalkredit International Bank Ltd:

  -- BFSR: E, stable outlook
  -- Long-term bank debt and deposits: Ba1, negative outlook
  -- Short-term bank debt and deposits: Not-Prime

KIB has no debt outstanding affected by the rating withdrawals.

Moody's most recent rating action on these credits was implemented
on December 2, 2009, when Moody's downgraded KA Finanz's ratings
(the renamed former Kommunalkredit Austria AG and its legal
successor) to Baa3 and the ratings of KA Finanz's subsidiary, KIB,
to Ba1, and also downgraded various hybrid instruments of KA
Finanz.  The rating actions followed the break-up of the former
Kommunalkredit Austria AG ("old Kommunalkredit") on 28 November

Headquartered in Vienna, Austria, KA Finanz reported total assets
of EUR21.4 billion as of December 31, 2009.  Headquartered in
Limassol, Cyprus, KIB reported total assets of EUR8.9 billion as
of December 31, 2009.


RESERVE INVEST: Moody's Changes Outlook on 'B3' Rating to Stable
Moody's Investors Service has changed the outlook on the B3 long-
term foreign currency issuer rating of Reserve Invest Cyprus to
stable from negative.

The outlook change is driven by improvement in the company's
liquidity, as reflected in the decrease in leverage to 0.2x of
equity at year-end 2009 from 1x at H1 2008.  Such improvement was
a result of the decrease in the company's risk appetite in Q4 2008
(e.g.  in the aftermath of the 50% reduction in the share price of
LUKoil -- in which RIC holds a strategic stake) when the
shareholders provided financial assistance for RIC in order to
meet liquidity needs.  The outlook change is also the result of a
more established history of the company's performance under the
less benign operating environment which enabled greater
predictability of the response to new potential shocks.

RIC's largest asset is a sizeable stake in LUKoil ADRs, which the
firm uses to build up leverage and finance other operations in the
repo market, primarily with Western counterparties.  As a result,
its performance is closely linked to the market performance of
LUKoil shares and remains volatile, albeit compensated by high
capital cushion.  In terms of liquidity, however, Moody's has
assessed that RIC remains exposed to the tail risk reflected in
the probability of significant further market downturn to the
extent it requires additional support from the shareholders.
Moody's recognises that shareholders' support has been provided in
the past but have not incorporated further support in RIC's rating
because it cannot be assessed with a good degree of confidence due
to the lack of insight about the overall financial strength of the
shareholders (not rated).

Moody's notes that an upgrade in RIC's rating is unlikely in the
near term.  However, in the longer term, sustainable improvement
in the operating environment accompanied by diversification of
business -- with no deterioration in financial fundamentals --
might exert upward pressure on the rating.  Any liquidity problems
and a significant rise in leverage -- including from negative
revaluation of LUKoil's share value -- might negatively impact
RIC's rating.

RIC's rating was initially assigned by evaluating factors Moody's
considers relevant to the credit profile of the issuer, such as
analysis of the market value of collateral, largely in LUKoil ADRs
and market risk of other liquid securities which the company has
in its portfolio.  This analysis also takes into account franchise
value, expected leverage and liquidity as well as company
performance.  These attributes were compared against those of
other companies, and Moody's considers RIC's rating to be
comparable to ratings assigned to other issuers of similar risk.

The previous rating action on RIC was on 20 March 2009 when
Moody's confirmed the company's B3 long-term foreign currency
issuer rating with a negative outlook.

RIC is a Cyprus-based financial company with total assets of
US$1.8 billion and equity of US$1.5 billion at year-end 2009
(2008: US$1.2 billion and US$909 million, respectively).  The
company reported income of ca. US$679 million in 2009 vs. losses
of US$430 million in 2008.  Its LUKoil stake is valued at
US$1.3 billion having grown by 1.9x during 2009, mainly as a
result of revaluation effect.

C Z E C H   R E P U B L I C

* CZECH REPUBLIC: One in Five Firms Faces Bankruptcy Threat
CTK reports that an analysis of agency Ceska kapitalova informacni
agentura (CEKIA) reports that one in five companies operating in
the Czech Republic is at risk of going bankrupt.

The share of risky companies with the bad C rating grew from less
than 6% in 2006 to 21.4% in 2009, the report says the analysis
which uses the company's own rating model CEKIA Stability Rating.

"This year should probably be the worst in terms of the risk of
companies' bankruptcies, the outlook for the following months and
years is unfortunately blurred by the problems of many European
countries saddled with debts, and Czech state finances are not in
a good shape, either," the report quoted Patria Finance chief
economist David Marek as saying.


SCANBECH A/S: Files for Insolvency in Helsingor
----------------------------------------------- reports that Scanbech A/S filed for insolvency
with a court in Helsingor.  According to, reports
indicate that the Danish facility and a plant in Ghana have since
been closed.

Scanbech manufactures bottles, closures as well as pumps made of
PE, PP, PET and other plastics, earmarked for customers from the
cosmetics, food and pharmaceutical businesses.


ARCANDOR AG: Berggruen Wins Bidding for Karstadt Unit
Holger Elfes and Patrick Donahue at Bloomberg News report that
investment firm Berggruen Holdings Ltd. won the bidding for
Karstadt AG, Arcandor AG's insolvent German department store
operator, over private equity company Triton and the Highstreet
partnership, which owns most of Karstadt's real estate.

According to Bloomberg, insolvency administrator Klaus Hubert
Goerg said in an e-mailed statement Monday that Berggruen's offer
was chosen by a "significant majority" of the committee's members.
No financial details were disclosed, Bloomberg states.

Bloomberg notes that while the other bidders wanted Karstadt's
25,000 workers to agree on wage cuts or more flexible working
hours, Berggruen had pledged he wouldn't ask the employees to
contribute beyond salary reductions they have already accepted and
which are worth about EUR150 million (US$179 million) over three

Bloomberg relates the Ver.di labor union, which represents some
Karstadt workers, said Monday it supports Berggruen's bid.

                        About Arcandor AG

Germany-based Arcandor AG (FRA:ARO) --
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, 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.


LISLOUGHREY LODGE: Put Into Receivership by Ulster Bank
Ian Kehoe at The Sunday Business Post reports that Lisloughrey
Lodge has been put into receivership by Ulster Bank.

According to the report, the bank has a EUR10 million exposure to
the hotel.

The report relates Kieran Wallace, head of insolvency with KPMG
accountants, has been installed as receiver over the property.

The hotel's management team, headed by Marc MacCloskey and Hilde
Stuiver, has secured the leasehold on the property, and will
continue to manage the hotel, the report notes.

Lisloughrey Lodge is a country house hotel next to Ashford Castle
in Cong, Co Mayo.  It is backed by businessmen Paddy Kelly and
Niall McFadden.


FIAT SPA: Union Junks Labor Demands at Pomigliano Plant
Giulia Segreti at The Financial Times reports that Italy's main
car workers' union on Sunday rejected demands by Fiat for more
flexible work practices at its Pomigliano d'Arco plant near Naples
as part of its plans to invest EUR20 billion (US$24 billion) and
double production in Italy by 2014.

"We are absolutely interested in negotiations that will be able to
reinforce Fiat production in Italy and avoid closing Italian
plants, as long as these respect the laws," the FT quoted said
Maurizio Landini, the newly elected leader of the Fiom union, as
the two sides prepared to renew negotiations in Turin, as saying.

The FT recalls last week Sergio Marchionne, chief executive of
Fiat and Chrysler, warned that time was running out for agreement
and said that protracted talks had already delayed the necessary

"If there is an agreement we can start with production in 2011.
Otherwise, we'll do it somewhere else.  The car [Panda] must be
done, we have no choice," Mr. Marchionne said, according to the

Mr. Marchionne first announced his plans for Italy when he
presented his five-year business strategy in April, the FT
recounts.  The two main pillars are to close a plant in Sicily but
substantially increase production at Naples by initially shifting
output of the Panda model from Poland, the FT notes.

The FT says Fiat was said to be asking to reduce hours between
shifts, to be able to use lunch hours for overtime work, to impose
timing of 120 hours of overtime work instead of the current 40
hours, and to stop paying sickness leave if average absenteeism
rates are too high.  Sanctions are also considered in the case of
strike action by individuals and groups, the FT discloses.

The FT notes according to Fiom, these conditions, as explained in
a document given to all the main unions last Friday, are not
acceptable as they breach Italian law and the current national
contract between employers and unions.

The Pomigliano d'Arco plant employs more than 5,000 workers but
many have been on redundancy payments for almost two years, the FT
discloses.  In the next months, 500 are expected to retire, the FT

                         About Fiat SpA

Headquartered in Turin, Italy, Fiat SpA (BIT:F) -- is principally engaged in the design,
manufacture and sale of automobiles, trucks, wheel loaders,
excavators, telehandlers, tractors and combine harvesters.
Through its subsidiaries, Fiat operates mainly in five business
areas: Automobiles, including sectors led by Maserati SpA, Ferrari
SpA and Fiat Group Automobiles SpA, which design, produce and sell
cars under the Fiat, Alfa Romeo, Lancia, Fiat Professional,
Abarth, Ferrari and Maserati brands; Agricultural and Construction
Equipment, which is led by Case New Holland Global NV; Trucks and
Commercial Vehicles, which is led by Iveco SpA; Components and
Production Systems, which includes the sectors led by Magneti
Marelli Holding SpA, Teksid SpA, Comau SpA and Fiat Powertrain
Technologies SpA, and Other Businesses, which includes the sectors
led by Fiat Services SpA, a publishing house Editrice La Stampa
SpA and an advertising agency Publikompass SpA.  With operations
in over 190 countries, the Group has 203 plants, 118 research
centers, 633 companies and more than 198,000 employees.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on April 27,
2010, Standard & Poor's Ratings Services said that it placed its
'BB+' long-term corporate credit rating on Italian industrial
group Fiat SpA on CreditWatch with negative implications.  At the
same time, the 'B' short-term credit rating on Fiat was affirmed.
In addition, S&P placed the 'BB+' long-term rating on Fiat's
subsidiary CNH Global N.V. on CreditWatch with developing

"The CreditWatch placement reflects S&P's view that Fiat's credit
quality could weaken due to increased business risk as a
consequence of the proposed demerger of CNH, Iveco SpA (not
rated), and the industrial and marine divisions of Fiat Powertrain
Technologies into the newly created entity Fiat Industrial SpA,"
said Standard & Poor's credit analyst Barbara Castellano.


BERNARD L. MADOFF: Liquidators Spar Over LuxAlpha Assets
Stephanie Bodoni at Bloomberg News reports that LuxAlpha's
liquidators said they will oppose any U.S. moves to reduce
recoveries for European investors.

"The actions of the trustee are prone to have a significant effect
on the recovery rate for the shareholders," Bloomberg quoted
LuxAlpha's liquidators as saying in a May 20 letter sent to the
fund's shareholders.  "A substantial loss in the shareholders'
investments cannot be excluded.  The liquidators will vigorously
resist such an eventuality."

LuxAlpha had US$1.4 billion in net assets, according to Bloomberg
data, a month before Madoff was arrested in December 2008.
Bloomberg relates the LuxAlpha liquidators have sued UBS AG, the
fund's custodian, and Ernst & Young LLP, the fund's auditor,
seeking more than US$1.3 billion to repay investors.

Irving Picard, who is unwinding Bernard L. Madoff Investment
Securities LLC, is seeking about US$752 million, Bloomberg says,
citing the liquidators.  Bloomberg notes Mr. Picard says U.S. law
allows him to "to recover all of the funds paid by BMIS" to

"A possible reimbursement of the BMIS funds is conditioned by the
liquidation ruling and Luxembourg law," the liquidators said,
according to Bloomberg.

                     About Bernard L. Madoff

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

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

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

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

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

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


* ROMANIA: Tax Hikes May Push 50,000 Companies Into Bankruptcy
-------------------------------------------------------------- reports that Romanian Prime Minister Emil Boc on
Monday said results of various scenarios conducted by the National
Prognosis Commission revealed that hiking VAT and the flat tax
would have pushed at least 50,000 companies into bankruptcy,
increased inflation to 10% and "significantly" depreciated the
Romanian leu against the euro.

According to the report, the data presented by Mr. Boc also
indicate that tax hikes would have lowered end consumption by
4.4%, compared to a 2.6% decrease triggered by salary and pension
cuts, would have increased the number of jobless people to
850,000, compared to the current estimate of 750,000 jobless
people triggered by salary and pension cuts, and would have
increased the number of employees for whom contributions are not
paid by an additional 90,000 people.


LSR OJSC: Fitch Changes Outlook to Stable; Affirms 'B-' Rating
Fitch Ratings has revised the Outlook for Russia-based OJSC LSR
Group to Stable from Negative.  Fitch has simultaneously affirmed
LSR's Long-term foreign currency Issuer Default Rating at 'B-'.

The Outlook revision reflects the on-going stabilization in
Russia's construction and development sectors, although growth is
anaemic.  The revision further reflects Fitch's expectations of a
reduced risk of non-payment of material short-term debt
obligations due to the improvement in LSR's short-term liquidity
position.  In addition, there is now a lessened likelihood of
potential covenant (total debt/EBITDA and EBIT/interest expense)
breaches at testing, based on H110 and FY10 financial statements,
due to recent adjustments of certain debt covenants.

In May 2010, LSR completed a secondary public offering (SPO) which
resulted in net proceeds of US$385 million, of which around 47%
was used for repayment of outstanding indebtedness.  Fitch also
notes that in first five months of 2010 LSR has continued to
attract new short and medium-term debt financing to improve its
short-term liquidity.  In addition, LSR anticipates attracting
additional debt financing in the coming months.

Fitch notes that all the above mentioned steps will help LSR to
reduce absolute leverage, lower its cost of debt and improve
short-term liquidity.  The agency forecasts that the company's
leverage (gross debt/EBITDAR) at end-2010 may be reduced to 3.1x-
3.3x from Fitch's previous expectation of 3.6x.  Fitch expects the
cost of debt could be cut by 20% which may result in EBIT/gross
interest of 1.8x-2.0x at end-2010 compared with Fitch's previous
expectations of 1.6x-1.7x.  Fitch also forecasts an improvement of
LSR's 2010 liquidity score (sources of liquidity to uses of
liquidity) to a satisfactory 1.1x-1.8x against the agency's
previous expectation of 0.7x-0.9x.

LSR has successfully adjusted its debt covenants for the testing
periods up to H1 2011, which reduces the risks of covenant
breaches during this period.  Nevertheless, the agency observes
that covenant headroom remains low and in case of continuing
distress on Russian real estate and construction markets, the
adjusted level of covenants may prove challenging.  However, LSR
has a history of successful covenant adjustments during 2009 and
Fitch expects the company will be able to re-negotiate its
covenant level if it feels that the level is not achievable.

Fitch finally notes the on-going stabilization and anaemic growth
of construction and real estate developments in LSR's key markets
of St. Petersburg and Moscow.  LSR has strong positions in the
mass-market segment, where the fastest recovery is expected, and
could benefit from on-going infrastructural projects in the St.
Petersburg area as a supplier of building materials and
aggregates.  Fitch also notes that the expected commissioning of
LSR's cement plant in 2010 could make a positive contribution to
operating performance in 2011 given the cheaper internal sourcing
and likely sales to third parties.  The agency expects LSR's
revenues to stabilize in 2010 and grow 3%-5% in 2011.  The agency
expects LSR to achieve an EBITDAR margin of 21%-23% in 2010 and
27%-33% in 2011.  Fitch continues to have concern regarding the
potential volatility in LSR's trading outlook in 2010-2012 and
forecasts weak cash generation for LSR over the next three years.

The current rating level continues to reflect concerns about
liquidity in 2011 and 2012 and a high indebtedness level with
gross debt/EBITDAR greater than 3.0x in 2010.  LSR is scheduled to
repay about 40% of total debt in 2011 while its expected free cash
flow in 2011 will likely continue to be negative.  This could
result in a liquidity score below 1.0x.  Therefore additional
steps will be required by LSR to extend its debt maturity profile
in 2011 and to improve its liquidity position.

NOVOSIBIRSK INTEGRATED: Seeks Bankruptcy; Owes RUR1.18BB in Q1
Novosibirsk Integrated Tin Works is seeking to be declared
bankrupt, Natalya Shurmina at Reuters reports, citing a regional
arbitration court's Web site on Monday.

According to Reuters, the Web site said Novosibirsk's total debt
was RUR1.18 billion (US$38 million) in the first quarter of this
year, of which RUR356 million were overdue.

Reuters recalls the company defaulted on a rouble bond in the 2008
liquidity crunch, and sought to restructure this debt.

Novosibirskiy olovyannyi kombinat OAO (NOK OAO or Novosibirsk Tin
Integrated Works JSC or NOK-inc) -- is a
Russia-based company, the main activity of which is the production
of tin, various kinds of tin alloys and solders.  The Company has
in its offer lead, bismuth, as well as indium solders shaped as
tubes, wire, short rods, cylinders and bars, tin powders, various
kinds of solders and others.  NOK OAO sells its products on the
domestic market, as well as exports its production to the
Commonwealth Independent States countries, among others.  The
Company has one branch located in Karakol, five subsidiaries and
seven affiliated companies.  Novosibirskiy olovyannyi kombinat OAO
is in 86.1%-owned by Depozitarno-Kliringovaya Kompaniya ZAO (DKK

U N I T E D   K I N G D O M

3 STEP: Faces Liquidation Following Insolvency Service Probe
3 Step Finance Ltd., previously known as Global Debt Solutions
Ltd., and 123 Finance Ltd. based in the Bolton area were wound up
in High Court following an investigation by the Company
Investigations team of the Insolvency Service.

The companies contacted members of the public who had indicated
that they were having difficulties paying their debts on time and
offered their services, which included negotiating with creditors
to freeze interest and trying to reduce the amount payable.  In
return, the companies took fees from the payments made to them by
their clients.

Investigators found that 3 Step Finance Ltd ceased to trade in
late 2009, at which time it had insufficient assets to make
payments to clients' creditors as it was required to do.  Shortly
thereafter, 123 Finance Ltd started to trade and 3 Step Finance
Ltd subsequently went into voluntary liquidation on November 25,
2009, declaring that it owed more than GBP51,000 to clients.  Many
clients were transferred to the successor company, but
investigators found that neither took proper steps to monitor
payments to client creditors to ensure that they were made as
expected and that, due to shortcomings in their accounting
records, it wasn't possible to ascertain the full extent of the
shortfall.  However, it was discovered that after 3 Step Finance
Ltd had ceased to trade the directors declared dividends totaling
GBP70,000 to themselves and took arrears of wages of GBP9,600 in
order to reduce their own overdrawn loan accounts.

The directors of 123 Finance Ltd were initially directors of 3
Step Finance Ltd, but resigned in early November 2009, while
remaining in positions of authority which enabled them to exert
control over the company.  In winding the companies up the Court
found that 123 Finance Ltd had continued the failures of the
earlier company and that, amongst other things, both had operated
an unsustainable business model and had traded in a manner which
was misleading and of little or no commercial benefit.

In summary, the grounds for winding up the companies included:

    * Failure to maintain and/or deliver up adequate accounting
      books and records,

    * Lack of transparency in relation to the ownership/control
      of the company,

    * Continuing the operation of an unsustainable business

    * Abuse of limited liability,

    * Failure to cooperate with Company Investigations of
      The Insolvency Service, and

    * Lack of commercial benefit.

3 Step Finance Ltd was incorporated on January 11, 2007, under the
name Global Debt Solutions Ltd.  Its name was changed to its
present name on September 17, 2009.  Its registered office is at 7
St Petersgate, Stockport, SK1 1EB, the address of the voluntary
liquidator, but was previously at Albion Works, Albion Street,
Bury, BL8 2AD.

123 Finance Ltd was incorporated on June 17, 2009.  Its registered
office is at Oceanic House, Waters Meeting Road, Bolton BL1 8SW,
as of November 13, 2009.  Previously, the registered office was at
20 Spring Vale, Edgeworth, Bolton.

The petitions were presented under s124A of the Insolvency Act
1986 on March 16, 2010 and the Winding-up Orders were made on 01
June 1, 2010.  The Official Receiver was previously appointed as
provisional liquidator of 123 Finance Ltd on March 23, 2010.

All public inquiries concerning the affairs of the company should
be made to:

          The Official Receiver
          Public Interest Unit
          Telephone: 0207 637 1110:

CLEAR PLC: Moody's Cuts Ratings on Five Classes of Notes to 'C'
Moody's Investors Service took these rating actions on notes
issued by Clear plc, a collateralized debt obligation transaction
referencing a managed portfolio of corporate entities.

Issuer: Clear PLC

  -- Series 22: US$ 30,000,000 Limited Recourse Secured Floating
     Rate Credit-Linked Notes due 2017, Downgraded to C;
     previously on Mar 10, 2009 Downgraded to Ca

  -- Series 24: US$ 13,000,000 Limited Recourse Secured Floating
     Rate Credit-Linked Notes due 2017, Downgraded to Ca;
     previously on Mar 10, 2009 Downgraded to Caa3

  -- Series 25: US$ 1,000,000 Limited Recourse Secured Fixed Rate
     Credit-Linked Notes due 2017, Downgraded to C; previously on
     Mar 10, 2009 Downgraded to Ca

  -- Series 26: US$ 1,500,000 Limited Recourse Secured Fixed Rate
     Credit-Linked Notes due 2017, Downgraded to C; previously on
     Mar 10, 2009 Downgraded to Ca

  -- Series 27: US$ 3,000,000 Limited Recourse Secured Floating
     Rate Credit-Linked Notes due 2017, Downgraded to C;
     previously on Mar 10, 2009 Downgraded to Ca

  -- Series 29: US$ 40,000,000 Limited Recourse Secured Floating
     Rate Credit-Linked Notes due 2017, Upgraded to Caa2;
     previously on Oct 19, 2009 Downgraded to Ca

  -- Series 45: US$ 10,000,000 Limited Recourse Secured Floating
     Rate Credit Linked Notes due 2017, Downgraded to Caa3;
     previously on May 26, 2009 Downgraded to Caa1

  -- Series 46: US$ 10,000,000 Limited Recourse Secured Floating
     Rate Credit Linked Notes due 2017, Downgraded to C;
     previously on Mar 10, 2009 Downgraded to Ca

Moody's explained that the downgrades effected are the result of
the deterioration of the credit quality of the reference
portfolio.  In particular the reference portfolio includes an
exposure to iStar Financial Inc. which has experienced substantial
credit migration in the past few months, and is now rated Ca.
Since inception, the subordination of the rated tranches has been
reduced due to credit events on, among others, Lehman Brothers
Inc., Washington Mutual, Federal Home Loan Mortgage Corporation,
and Federal National Mortgage Association.  These credit events
lead to a substantial decrease, and in some cases a complete loss
of the subordination of the series of notes.  Moody's also stated
that, in upgrading the rating of Series 29 from Ca to Caa2, it has
taken into account the tranche's current level of subordination of
1.99%.  In its analysis Moody's has adopted a 40% digital recovery
rate for all of the series of notes except for Series 29 for which
a floating recovery rate has been assumed.  The Banking, Insurance
and Sovereign & Public Finance sectors are the most represented,
weighting 22.2%, 10%, and 7.9%, respectively, of the portfolio

Moody's monitors this transaction using primarily the methodology
and its supplements for CSOs as described in Moody's Rating
Methodology papers:

  -- Moody's Approach to Rating Corporate Collateralized Synthetic
     Obligations (April 2009)

  -- Framework for De-Linking Hedge Counterparty Risks from Global
     Structured Finance Cashflow Transactions (May 2007)

Moody's also announced that it has withdrawn the rating on these
series of notes.

Issuer: Clear PLC

  -- Series 21: JPY 1,000,000,000 Limited Recourse Secured
     Floating Rate Credit Linked Notes due 2017, Withdrawn;
     previously on Mar 10, 2009 Downgraded to Ca

  -- Series 43: US$ 25,000,000 Limited Recourse Secured Variable
     Rate Credit Linked Notes due 2017, Withdrawn; previously on
     May 26, 2009 Downgraded to Ca

  -- Series 47: JPY 2,000,000,000 Limited Recourse Secured
     Floating Rate Credit Linked Notes due 2017, Withdrawn;
     previously on Mar 10, 2009 Downgraded to Ca

  -- Series 50: US$ 13,000,000 Limited Recourse Secured Fixed Rate
     Credit Linked Notes due 2017, Withdrawn; previously on
     May 26, 2009 Downgraded to Ca

MANCHESTER UNITED: Owner's Debts Stood at GBP1.1 Billion
BBC News reports that Manchester United's owners are GBP1.1
billion in debt -- GBP400 million more than previously known --
after borrowing extensively against their shopping mall business.

According to the report, BBC Panorama has found evidence that the
Glazer family's debt levels may threaten their hold on the club.

The report says mortgage documents show that the Glazers have
borrowed GBP388 million (US$570 million) against shopping malls
and GBP66 million (US$95 million) against their American National
Football League team, the Tampa Bay Buccaneers.  In addition to
their mortgages in the U.S., a portion of the Glazer family's
GBP700 million Manchester United debt will soon see them charged
interest at a rate of 16.25%, the report notes.

The report recalls when they bought Manchester United in 2005, the
Glazer family borrowed GBP500 million and paid the remaining
GBP272 million in cash.

The report relates City analyst Andy Green found that the Glazers
had remortgaged 25 of their shopping centers in the six months
before the takeover.  But with properties now worth about GBP380
million (US$550 million) but mortgages valued at GBP395 million
(US$570 million), the shopping mall company now appears to be
worth next to nothing, the report states.  That financial picture
has analyst Mr. Green questioning how the Glazers will service
their GBP1.1 billion debt, the report notes.

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

PORTSMOUTH FOOTBALL: Creditors to Get More Under Griffins Offer
John Sinnott at BBC News reports that Portsmouth Football Club's
creditors Portsmouth creditors have been offered potentially 99
pence in the pound, a figure far in excess of the one on the table
from the administrator.

According to BBC, the rival offer has been put together by
insolvency experts Griffins, which represents some of Pompey's
creditors.  Pompey administrator Andrew Andronikou is offering a
maximum 25 pence in the pound, BBC notes.

BBC relates Griffins says creditors could receive a minimum 65
pence in the pound, but if former owner Sacha Gaydamak drops his
GBP32 million claim against Pompey that rises to 99 pence.

Griffins' proposal refers to the possibility that Gaydamak could
be liable for a claim of over GBP50 million if there was evidence
he had breached his duties -- for example if he was found to have
allowed Portsmouth to trade while insolvent before entering
administration, BBC states.

Griffins' proposal is based on the principle that Pompey's
creditors, who have funded the struggling club over the last few
years, should have the first claim to the future income generated
by the club, BBC discloses.

"It's the creditors' choice how and when the club will emerge from
administration, not the current administrators," BBC quoted
insolvency lawyer Guy Thomas of SA Law LLP as saying.  "If, having
considered both documents carefully, they choose Griffins'
analysis over Andronikou's then they will likely reject the
current administrator's CVA proposal.

The creditors are due to meet on June 17 to vote on the CVA with
Portsmouth needing the support of 75% of creditors to have it
approved, BBC notes.

BBC states failure to secure a CVA could result in the club
incurring future points deductions in the Football League.

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

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

RADAMANTIS PLC: Fitch Affirms Rating on Class G Notes at 'BB'
Fitch Ratings has affirmed all eight tranches of Radamantis
(European Loan Conduit No. 24) plc.  The Outlooks for the class B
to G notes are Negative while the class A note Outlook is Stable.
The rating actions are:

  -- GBP315m class A (XS0263691346) affirmed at 'AAA'; Outlook

  -- Class X certificate (XS0263696172) affirmed at 'AAA'; Outlook

  -- GBP64m class B (XS0263697111) affirmed at 'AA+'; Outlook

  -- GBP25m class C (XS0263697970) affirmed at 'AA-'; Outlook

  -- GBP18.4m class D (XS0263698945) affirmed at 'A+'; Outlook

  -- GBP39.1m class E (XS0263700279) affirmed at 'BBB+'; Outlook

  -- GBP14m class F (XS0263700782) affirmed at 'BBB'; Outlook

  -- GBP18m class G (XS0263701244) affirmed at 'BB'; Outlook

The affirmation is driven by the stable performance of the
portfolio over the past year.  The Negative Outlooks reflect the
continued balloon risk of the CMBS transaction, with all loans
maturing between 2011 and 2012.

The largest loan, Milton & Shire Houses (54% of the pool), is
secured by a London City office building which is fully let to
Linklaters, a global law firm.  In February 2010, the loan was
restructured.  The main changes include an 18-month extension of
the loan term to October 2012 and a five-year extension of the
lease term to September 2026.  In exchange for the lease
extension, the borrower has agreed to a cumulative GBP15m rent
reduction over five years.  However, this is not expected to
impact debt service payments as the sponsor has made a GBP7m cash
deposit that can be used to cover any shortfalls.  Overall, Fitch
believes that the restructuring has improved the loan's exit
position, as the residual lease term will be longer and the loan
term will be marginally reduced through the introduction of
scheduled amortization.

The Westferry Circus and Hayes Park loans (31% of pool) are both
secured by assets let on long leases.  Consequently, collateral
income and interest coverage ratios have remained virtually
unchanged since closing.  However, both loans are interest-only
which exposes them to significant balloon risk at their respective
maturities.  This is exacerbated by the presence of B-notes that
increase overall leverage and are likely to complicate potential
re-financings of the loans.

The South Quay loan (15% of the pool) is secured predominantly by
multi-let office accommodation in Canary Wharf, London.  The
tenant quality is strong, with the top two tenants (55%) being
rated 'AA' or above.  However, the remaining weighted-average
lease term is 3.7 years, only a few months longer than the loan
term (2.5 years).  This indicates that the collateral value is
highly dependent on whether the in-place tenants decide to renew
their leases and/or the space is successfully relet.

ST JOHN STREET: Administrator Appointed Following Loan Default
John Mulligan at Irish Independent reports that an administrator
has been appointed to St John Street Ltd after it defaulted on a
GBP30 million (EUR36 million) loan used to build a high-spec
London residential and commercial development.

The report recalls when the firm defaulted on the loan last year,
Anglo Irish had a receiver appointed to the development so that
construction work could continue.

According to the report, a Jersey court has now agreed to allow
Anglo to appoint an administrator to the company so it can better
deal with the claims of unsecured creditors.

The report notes an administrator can also take possession of the
failed company's statutory books.

St John Street Ltd is a Jersey-based property developer.  Two of
the three main shareholders of the company are Irish businessmen
Conor Meehan, of Ennis, Co Clare, and Denis O'Reilly, of
Glenageary in Dublin, according to Irish Independent.

WORKSPACE GROUP: Nears Debt Refinancing Deal; Trading Profit Up
Daniel Thomas at The Financial Times reports that Workspace is
close to completing a GBP200 million (US$290 million) debt

According to the FT, Workspace said that a GBP199 million debt
facility with GE would be refinanced ahead of its August 2010
extension date.  It is in discussions with a group of lenders for
a new five-year facility of GBP200 million, the FT says.

The FT relates the company, which typically lets its London office
space to small and medium-sized enterprises on flexible leases,
said that operating performance had improved over the past year
amid renewed demand from tenants.

The FT says like-for-like occupancy increased to 84.7%, from 82.9%
in March 2009, which led to an 8% rise in trading profit to
GBP10.8 million.  Pre-tax profit was GBP26 million, compared with
a loss of GBP360 million in 2009, the FT discloses.

Workspace Group PLC -- is a
United Kingdom-based company that is engaged in property
investment in the form of letting of business accommodation to
small and medium-sized enterprises located in London and the South
East of England.  As of March 31, 2008, the Company had seven
active subsidiaries, four of which are engaged in the Company's
core activities.  LI Property Services Limited procures insurance
on behalf of Workspace Group PLC.  Workspace Management Limited
acts as manager for all the Company's property investment
companies.  Workspace Holdings Limited is an intermediate holding

* UK: Corporate Insolvencies Set to Rise, Begbies Traynor Says
The Financial Times reports that Begbies Traynor said despite the
proportion of corporate insolvencies in the insolvency
specialist's second half to April 30 being relatively flat in
comparison to the first half, it remained confident of a rise in
companies becoming insolvent due to the recession.

According to the FT, Begbies Executive Chairman Ric Traynor said
there are many "zombie businesses, which are effectively the
walking dead and have no chance of actually coming back to life".


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

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

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

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


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

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  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 * * *