TCREUR_Public/100618.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

               Friday, June 18, 2010, Vol. 11, No. 119



BULGARIAN AMERICAN: S&P Cuts Counterparty Credit Rating to 'B+'


LE MONDE: France Telecom to Bid with SFA PAR for 65% Stake
REMY COINTREAU: To Meet with Investors to Propose Junk-Bond Sale


GENERAL MOTORS: Withdraws State Aid Requests for Opel-Vauxhall
PHOENIX GROUP: Close to Securing EUR3.6-Bil. in Financing
PRIMACOM AG: Unit Secures EUR30 Mil. in Liquidity From Lenders
WILHELM KARMANN: Vorwerk Renews Interest in Roof Business


HELLENIC SECURITISATION: Moody's Cuts Rating on Notes to 'Ba1'


ARGON CAPITAL: S&P Withdraws Ratings on Two European CDO Tranches
CONWAY PARTNERSHIP: Court to Rule on Summary Judgment Today
CREDIT-LINKED ENHANCED: S&P Downgrades Rating on CDO Notes to 'D'
DONAL RIGNEY: Bank of Scotland Secures EUR1.5MM Summary Judgment
EVANWOOD DEV'T: Court Enters EUR34.57MM Summary Judgment Order

FUTURE PRINT: Faces Closure; 110 Jobs Affected
MTS INTERNATIONAL: S&P Assigns 'BB' Rating on US$750 Mil. Notes
MURRAYS RENT-A-CAR: Pays EUR1.56 Million in Tax Settlement


FIAT SPA: Fiom Union Balks at Labor Demands at Pomigliano Plant


SILVER BIRCH: Moody's Cuts Rating on Class E Notes to 'Caa3'


* Fitch Affirms 'B+' Rating on Romanian Metro Area of Oradea


ALFA-BANK OJSC: S&P Affirms 'B+' Counterparty Credit Rating
MOBILE TELESYSTEMS: Raises US$750 Mil. in Dollar-Bond Sale
MOBILE TELESYSTEMS: Moody's Puts 'Ba2' Rating on US$750 Mil. Notes


CAJA SAN FERNANDO: S&P Junks Rating on Class A1 Notes From 'BB'
MEDIAPRODUCCION SL: Soccer Rights Row Prompts Bankruptcy Filing

* SPAIN: To Publish Results of Stress Tests on Banks
* SPAIN: Risk Premium on 10-Year Bonds Rises to Decade High

U N I T E D   K I N G D O M

BRITISH AIRWAYS: Talks With Cabin Crew Union Collapse
HIGHGATE & DAVENPORTS: In Liquidation; 18 Jobs Affected
ROYAL BANK: Raises GBP100-Mil. From Pakistan, UAE Units Sale

* UK: Launches Review That May Trigger Bank Break-Ups
* UK: Creditors to Be Hit as Insolvency Service Shuts IT System


* S&P Takes Various Rating Actions on 16 European CDO Tranches

* BOOK REVIEW: The Executive Guide to Corporate Bankruptcy



BULGARIAN AMERICAN: S&P Cuts Counterparty Credit Rating to 'B+'
Standard & Poor's Ratings Services said that it lowered its long-
term counterparty credit rating on Bulgaria-based Bulgarian
American Credit Bank to 'B+' from 'BB-'.  At the same time, S&P
affirmed the short-term rating of 'B'.  The outlook is negative.

"The downgrade results from S&P's view of the continued
deterioration in BACB's loan portfolio in 2010, and its view that
the bank's asset quality is likely to remain under pressure in
light of the still-tough market conditions in the Republic of
Bulgaria (BBB/Stable/A-3)," said Standard & Poor's credit analyst
Austen Koles-Boudreaux.

The bank's loan portfolio is concentrated in the domestic real
estate and construction sector, which S&P view as higher risk, and
which has resulted in strong credit deterioration.

By March 31, 2010, nonperforming loans (90 days or more overdue)
at BACB had increased to 12.5% of the loan portfolio (compared
with 9.6% on Dec. 31, 2009, and 5.8% at the previous year-end),
with total classified loans now representing almost 40% of total
lending.  Asset quality deterioration follows sustained growth in
the loan portfolio in the years up to 2008, and reflects the
significant concentration of BACB's credit exposures toward the
real estate development and construction, tourism, and mortgage
sectors, which have been particularly affected by the domestic
downturn.  Credit risks are high and, in S&P's view, only partly
mitigated by the bank's good knowledge of its customer base, close
monitoring, and active workout of problem loans.

The ratings on BACB continue to factor in the bank's niche
franchise focused on secured lending to small- and medium-sized
enterprises in Bulgaria, its concentrated loan portfolio,
deteriorating asset quality indicators, and structurally high
liquidity risk profile.  The ratings also reflect BACB's strong
capitalization and traditionally high profitability, as well as
the bank's ownership by, and financial support received from, its
main shareholder, Allied Irish Banks PLC (A-/Negative/A-2).

"The negative outlook reflects S&P's view that the difficult
operating environment in Bulgaria is likely to pressure BACB's
asset quality and financial performance, particularly given the
bank's concentrated exposure to the domestic real estate sector
and local SMEs," said Mr. Koles-Boudreaux.

Downward pressure on the ratings would result from a further
deterioration in asset quality and increase in provisioning
requirements that resulted in a financial loss meaningfully
eroding capitalization.  Evidence of liquidity and/or cash flow
strain would also weigh on BACB's ratings.  Weakening support from
AIB would, in turn, likely lead us to remove the one-notch uplift
in the ratings on BACB.

S&P could revise its outlook on BACB to stable if the market
environment in Bulgaria were to improve and pressure on the bank's
financial profile were to ease, particularly regarding asset
quality.  Improved granularity and diversification in the loan
portfolio would be positive for the ratings on BACB, as would
reduced dependence on wholesale funding.


LE MONDE: France Telecom to Bid with SFA PAR for 65% Stake
Max Colchester at The Wall Street Journal reports that France
Telecom SA and Groupe SFA PAR, which controls titles including
leftwing weekly Le Nouvel Observateur, will bid around EUR80
million (US$98.8 million) for a 65% stake in Le Monde SA.
According to the WSJ, SFA owner Claude Perdriel said that, of this
total, France Telecom will offer to pay between EUR20 million and
EUR25 million.

"We will make a definitive offer next Monday," the WSJ quoted Mr.
Perdriel as saying.  "By 2011 we can make the paper break even."

The WSJ recalls two weeks ago a majority stake in Le Monde was put
up for sale as the company struggles to repay debts of around
EUR100 million.

According to the WSJ, France Telecom and Mr. Perdriel will be
bidding against a consortium made up of Lazard France banker
Matthieu Pigasse; Xavier Niel, the billionaire founder of
telecommunications group Iliad SA; and Pierre Berge, partner of
the late fashion designer Yves Saint Laurent.  This group is
planning to make an offer of between EUR80 million and EUR100
million for a majority stake, the WSJ discloses.

Le Monde's supervisory board will announce its preferred bidder on
June 28, 2010, the WSJ notes.

As reported by the Troubled Company Reporter-Europe on June 4,
2010, Bloomberg News said Le Monde extended a deadline for
investors to June 21 after French President Nicolas Sarkozy
weighed in on the bids.  Bloomberg disclosed that Le Monde
spokeswoman Anne Hartenstein on Monday said Mr. Sarkozy last week
met with the afternoon daily's chief executive officer, Eric
Fottorino, to discuss the newspaper's future.  According to
Bloomberg, Adrien de Tricornot, vice president of the Society of
Editors labor group, said Mr. Fottorino told colleagues that Mr.
Sarkozy expressed opposition to the bid from a group that includes

On June 7, 2010, the Troubled Company Reporter-Europe, citing The
Financial Times, reported that Le Monde is in a race against time
to find new investors and faces insolvency by the end of July if
it fails to recapitalize.

Le Monde is a French newspaper.

REMY COINTREAU: To Meet with Investors to Propose Junk-Bond Sale
Sonja Cheung at Bloomberg News reports that Remy Cointreau SA is
meeting with high-yield debt investors to propose what may be
Europe's first junk-bond sale in more than a month.

Citing people with knowledge of the matter, Bloomberg says Remy
Cointreau hired Credit Suisse Group AG and Credit Agricole CIB to
organize the Paris meetings.

"There's likely to be appetite for Remy bonds as investors remain
hungry for yield and have seen very little issuance," Bloomberg
quoted Alex Moss, a fund manager at Insight Investment Management
in London, which manages GBP100 billion (US$148 billion) of
assets, as saying.  "Remy is a good quality name, and will be a
good test of the market."

According to Bloomberg, bond sales by companies rated below Baa3
at Moody's Investors Service and BBB- by Standard & Poor's have
stalled on investor concerns that Europe's debt crisis will hurt
economic growth, making it harder for borrowers to repay debt.

Headquartered in Cognac, France, Remy Cointreau -- offers a range of premium wine
and spirit brands, known and recognized throughout the world.
These brands include, among others, Remy Martin, Cointreau,
Passoa, Metaxa, Mount Gay Rum, Charles Heidsieck and Piper-

                          *     *     *

As reported by the Troubled Company Reporter-Europe on Jan. 28,
2010, Standard & Poor's Ratings Services said that it has revised
its outlook on French spirits manufacturer and distributor Remy
Cointreau S.A. to stable from negative.  Remy's 'BB-' long-term
corporate credit rating was affirmed.

At the same time, Moody's Investors Service changed the outlook on
Remy Cointreau S.A.'s Ba2 Corporate Family Rating and senior
unsecured rating to stable from negative.


GENERAL MOTORS: Withdraws State Aid Requests for Opel-Vauxhall
Andreas Cremer and Angela Cullen at Bloomberg News report that
General Motors Co. and its Opel and Vauxhall brands withdrew all
applications across Europe for state loan guarantees after failing
to reach government agreements.

According to Bloomberg, GM said Wednesday in a statement that it
will "fund the requirements internally" for a reorganization of
Opel and Vauxhall announced seven months ago.  Bloomberg notes the
company said the amounts and reasons for the funding haven't

Bloomberg relates GM Europe President Nick Reilly said Wednesday
on a conference call the Opel-Vauxhall operation is sticking to
its reorganization plan, funded by GM's improved earnings, and it
may return to profit in 2011.  Bloomberg notes Mr. Reilly said
reorganizing Ruesselsheim, Germany-based Opel and the Vauxhall
division in the U.K. will cost EUR3.3 billion.  Mr. Reilly, as
cited by Bloomberg, said in the absence of the guarantees, GM will
provide an additional EUR1.4 billion to Opel and Vauxhall.  The
Opel-Vauxhall reorganization program includes eliminating 8,300
jobs from a European workforce of 48,000 employees, Bloomberg

Bloomberg recounts the four German states with Opel factories
started talks about possible separate guarantees after Chancellor
Angela Merkel said the carmaker may seek their help following the
federal authorities' rejection of GM's request.  The state
governments held a first round of discussions Tuesday without
giving any commitment to aiding Opel, Bloomberg discloses.

"The decision by the German government was a disappointment for
us," while arranging help from the states would have delayed
financing further, Bloomberg quoted Mr. Reilly as saying.  "We
cannot afford to wait for government decisions any longer."

As reported by the Troubled Company Reporter-Europe on June 11,
2010, Bloomberg News said Germany turned down GM's request for
EUR1.1 billion (US$1.3 billion) in aid for its money-losing Opel
division, forcing the automaker to seek new ways to reorganize the
unit.  "I'm convinced GM has sufficient financial resources,"
Bloomberg quoted Economy Minister Rainer Bruederle, a Free
Democrat, as saying in Berlin on June 9, in explaining why he
rejected GM.  "The state is not the better entrepreneur."
According to Bloomberg, Mr. Bruederle said GM has about EUR10
billion in free liquidity after paying back credits from the U.S.
and Canadian governments.  Opel is seeking EUR333 million in
guarantees from the U.K., EUR437 million from Austria and Spain
combined and EUR50 million in project financing from Poland,
Bloomberg disclosed, citing a PricewaterhouseCoopers report last
month commissioned by the German government.

                       About General Motors

General Motors Company -- 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

At March 31, 2010, GM had US$136.021 billion in total assets,
total liabilities of US$105.970 billion and preferred stock of
US$6.998 billion, and non-controlling interests of US$814 million,
resulting in total equity of US$23.053 billion.

                   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.
( 215/945-7000)

PHOENIX GROUP: Close to Securing EUR3.6-Bil. in Financing
Phoenix Group is close to obtaining as much as EUR3.6 billion
(US$4.4 billion) in financing, Aaron Kirchfeld and Angela Cullen
at Bloomberg News report, citing two people familiar with the

According to Bloomberg, the people said the company may reach an
agreement with banks by early next month on EUR2.6 billion in
syndicated loans to refinance existing debt.  Bloomberg notes the
people said the company also has plans to sell as much as EUR1
billion in hybrid bonds.

Bloomberg relates the people said that as part of the refinancing
plan, Ludwig Merckle, Adolf Merckle's sole son and heir, agreed to
inject EUR500 million in cash and repay a loan to Phoenix.
Sources told Bloomberg Mr. Merckle's VEM Vermoegensverwaltung GmbH
investment vehicle borrowed as much as EUR500 million from Phoenix
as the family patriarch sought to stem his losses.

Bloomberg notes one of the people said the refinancing is aimed at
bolstering Phoenix's credit standing as it considers selling as
much as 25% of Phoenix in an initial public offering in the next

Phoenix Group is a drug wholesaler based in Mannheim, Germany.
The company was started by deceased billionaire Adolf Merckle.

PRIMACOM AG: Unit Secures EUR30 Mil. in Liquidity From Lenders
Aaron Kirchfeld at Bloomberg News reports that PrimaCom GmbH, a
subsidiary of PrimaCom AG, has secured about EUR30 million in
liquidity from lenders, allowing it to continue operations.

On June 16, 2010, the Troubled Company Reporter-Europe, citing
CommsUpdate, reported that the parent company said it will file
for insolvency protection, after its shareholders failed to come
to an agreement with creditors regarding repayment of a EUR29.2
million (US$35.7 million) loan.

PrimaCom AG is a Germany-based holding company engaged in owning
and operating cable television (TV) network in Germany.  Its
subscribers are offered digital television, pay-per-view, video-
on-demand, telephone and high-speed Internet services to
complement the Company's basic cable television offering. The
Company's customers are connected to the 862 megahertz (MHz)
networks and have access to more than 100 TV and radio programs.
PrimaCom passes 1.4 million homes and serves approximately one
million subscribers.  The Company is 90.52% owned by Escaline
Sarl, Luxembourg, through its indirect subsidiary Omega I Sarl.
It operates mainly in six German states, including Berlin,
Brandenburg, Sachsen, Sachsen-Anhalt, Thueringen, and Mecklenburg-
Vorpommern.  As of December 31, 2008, the Company had 28 wholly
owned subsidiaries in Germany and Austria, as well as two majority
owned subsidiaries in Germany, and one affiliate in Germany.

WILHELM KARMANN: Vorwerk Renews Interest in Roof Business
Jan Schwartz at Reuters reports that Vorwerk Autotec has renewed
its interest in Karmann's roof business, having lost out in a
previous auction earlier this year.

"We have been offered the opportunity to do due diligence and we
want to take advantage of this," Vorwerk managing director Peter
Coellen told Reuters on Wednesday.

Citing German daily Neue Osnabruecker Zeitung, Reuters notes that
in addition to Vorwerk Autotec's renewed interest, the company's
insolvency administrator, Ottmar Hermann, is discussing possible
bids with troubled French niche car and equipment maker Heuliez,
and Finnish engineering group Metso Oyj.

Financial group Nordwind Capital has also expressed an interest in
this round of negotiations, Reuters discloses.

As reported by the Troubled Company Reporter-Europe, Karmann filed
for bankruptcy protection in April 2009 as the worst slump in
automotive markets for decades left the manufacturer unable to pay

Headquartered in Osnabrueck, Wilhelm Karmann GmbH -- is a car parts supplier.


HELLENIC SECURITISATION: Moody's Cuts Rating on Notes to 'Ba1'
Moody's Investors Service announced this rating action on repack
notes issued by Hellenic Securitisation S.A. Series 2

  -- EUR295M Hellenic Securitisation S.A. - Series 2 EUR
     295,000,000 5.875 per cent Asset Backed Notes due 2011 Notes,
     Downgraded to Ba1; previously on Apr 27, 2010 Downgraded to
     A3 and Placed Under Review for Possible Downgrade

This rating is based on the ability of the Hellenic Republic to
guarantee the obligations due under the notes as per the
receivables purchase agreement.  The Hellenic Republic
unconditionally undertakes to pays sufficient funds to the issuer
and trustee to enable the issuer to make up any shortfalls in
funds to pay debt service.  The underlying receivables are the
dividends that the CDLF (Consignment Deposits and Loans Fund) of
Greece pays each year to the Greek State.  The CDLF comprises of
loans granted to civil servants and municipalities.

Moody's explained that the rating action taken is the result of
the Greek Government been downgraded to Ba1 on June 14, 2010.


ARGON CAPITAL: S&P Withdraws Ratings on Two European CDO Tranches
Standard & Poor's Ratings Services withdrew its credit ratings on
two of Argon Capital PLC's European collateralized debt obligation

The withdrawals follow Merrill Lynch's -- the arranger's -- recent
notification to us that the notes were fully repurchased.

                           Ratings List

                        Ratings Withdrawn

                        Argon Capital PLC
      EUR100 Million Limited Recourse Secured Variable-Rate
                   Credit-Linked Notes Series 89

                      To               From
                      --               ----
                      NR               CCC-

                        Argon Capital PLC
EUR50 Million Limited Recourse Secured Credit-Linked Variable-Rate
                         Notes Series 90

                      To               From
                      --               ----
                      NR               CCC-

                         NR -- Not Rated.

CONWAY PARTNERSHIP: Court to Rule on Summary Judgment Today
Vivion Kilfeather at The Irish Examiner reports that the
Commercial Court's Mr. Justice Peter Kelly adjourned Bank of
Ireland's application for summary judgment orders for about EUR63
million against Michael Conway Sr., Michael Conway Jr., Kieran
Conway, Burkes Hill and Paudie Dennehy.

The report says the bank claims EUR24.3 million is owed under
loans advanced to the defendants, trading together as the Conway
Partnership, while another EUR38.5 million is due under guarantees
allegedly provided by them over the liabilities of Rumex Ltd. and
Daphne Investments Ltd., trading as the Dee Partnership.

The report relates in response to issues raised by Hugh O'Keeffe,
for the defendants, John Hennessy, who is representing BOI, said
the receiver had not sold any of the properties and none of the
issues raised amounted to a defense.

According to the report, Mr. Justice Kelly will rule today, June
18, whether to send the matter to plenary hearing or enter
judgment for the sums sought.

CREDIT-LINKED ENHANCED: S&P Downgrades Rating on CDO Notes to 'D'
Standard & Poor's Ratings Services lowered to 'D' from 'CCC-' and
then withdrew its credit rating on Credit-Linked Enhanced Asset
Repackagings (C.L.E.A.R.) PLC's collateralized debt obligation
series 7 notes.

The withdrawal follows the arranger's recent notification to us
that the transaction redeemed early.  On the early termination
date, the noteholders received zero principal payment.

                           Ratings List

                   Rating Lowered and Withdrawn

    Credit-Linked Enhanced Asset Repackagings (C.L.E.A.R) PLC
US$2 Billion Credit Assessment on the Principal Portfolio Series 7

                       To               From
                       --               ----
                       D                CCC-
                       NR               D

                          NR -- Not Rated.

DONAL RIGNEY: Bank of Scotland Secures EUR1.5MM Summary Judgment
Vivion Kilfeather at The Irish Examiner reports that Bank of
Scotland Ireland secured summary judgment for about EUR1.5 million
against Donal Rigney and his company Donal Rigney Ltd.

Donal Rigney Ltd. is based at Mountpleasant, Bluebell, Tullamore.

EVANWOOD DEV'T: Court Enters EUR34.57MM Summary Judgment Order
Vivion Kilfeather at the Irish Examiner reports that the
Commercial Court's Mr. Justice Peter Kelly made summary judgment
orders against Gerard Clohessy arising from six loan accounts
operated by the Limerick developer with the Irish Nationwide
Building Society.

According to the report, INBS claimed the total amount owed under
the various accounts, plus interest, was EUR34.57 million.

The report notes the society said the loan arrangements were
principally connected with the Evanwood development being carried
out by Mr. Clohessy at Golf Links Road, Castletroy, Limerick, the
Drominbeg Housing Estate development at Rhebogue, Co Limerick and
the purchase of other investment properties at Rhebogue.

The report relates the society said it learned for the first time
in November 2009 that judgment mortgages had been registered
against Mr. Clohessy's property interests which were not notified
to it, constituting a major event of default of the conditions of
the loan facilities.

The report recalls that in March 2010, it issued letters of demand
and also appointed a receiver over several properties.  Mr.
Clohessy entered no appearance or defense to the claims and in
those circumstances summary judgment was entered, the report

FUTURE PRINT: Faces Closure; 110 Jobs Affected
Colm Keena at The Irish Times reports that Future Print, which was
placed in examinership in March, is to close with the loss of 110
jobs after efforts to find new investors failed.  The report
recalls David Carson of Deloitte was appointed examiner to the
company in April.

According to the report, notes for the company's accounts, which
are dated June 2009, state that conditions had deteriorated
acutely, margins had been much reduced, and competition had
increased.  The company's premises were valued at EUR7.75 million,
the report discloses.

The report says group borrowings were EUR7 million with some of
the borrowings being the subject of personal guarantees from the
directors, Chris and Jacqueline Jameson.

A subsidiary, Fodhla Printing Company, had gone into liquidation,
the report relates.

Future Print is a printing company based in Baldoyle, Dublin 13.

MTS INTERNATIONAL: S&P Assigns 'BB' Rating on US$750 Mil. Notes
Standard & Poor's Ratings Services said that it assigned its 'BB'
issue rating to the proposed US$750 million loan participation
notes to be issued by the special purpose vehicle MTS
International Funding Ltd., which is incorporated as a company
limited by shares under the laws of the Republic of Ireland and
owned 100% by a charitable trust.  S&P has not assigned a
corporate credit rating to MTS International Funding, nor have S&P
assigned a recovery rating to the proposed notes.

The proceeds of the proposed notes will be used to fund a proposed
loan facility for the largest provider of mobile telecoms services
in Russia and the Commonwealth of Independent States, Mobile
TeleSystems (OJSC) (BB/Stable/--).  S&P has assigned a debt rating
of 'BB' to the proposed loan facility (in line with the corporate
credit rating on MTS).  The recovery rating on this facility is
'3', indicating S&P's expectation of meaningful (50%-70%) recovery
for creditors of the loan in the event of a payment default.

The ratings on the proposed notes and on the proposed loan
facility are based on preliminary information and are subject to
S&P's satisfactory review of the final documentation.  In the
event of any changes to the amount and terms of the notes or the
facility, the recovery and issue ratings might be subject to
further review.

The rating on the proposed loan facility is predicated on S&P's
understanding that this facility will have an unsecured claim on
MTS, thereby ranking pari passu with the existing unsecured
creditors at MTS.

The rating on the proposed notes is based on the direct pass-
through of the economic benefit of the loan facility to the
noteholders, through notes whose terms are back to back with those
of the loan facility.  MTS International Funding is an orphan SPV,
whose activity is limited only to the issue of the notes and the
onlending of the proceeds to MTS.  These features offset the facts
that neither MTS nor any of its subsidiaries will either guarantee
or provide any credit support to MTS International Funding, and
that the notes will not have a direct claim on the cash flows and
assets of MTS and its subsidiaries.

The rating on the proposed notes reflects the rating on the
proposed loan facility.  Any change to the preliminary
documentation relating to the pass-through features and other
legal aspects of the transaction could have a material impact on
the rating on the proposed notes.

                        Recovery Analysis

The proposed loan facility has a recovery rating of '3',
indicating S&P's expectation of meaningful (50%-70%) recovery for
creditors of the loan in the event of a payment default.  S&P
value the MTS group on a going-concern basis.

Given MTS' leading market positions in Russia and the CIS,
established network assets, and valuable customer base, S&P
believes that a default would most likely result from excessive
leverage as a result of operating underperformance.  At the
hypothetical point of default, S&P values the company at about
US$6.2 billion.

The issue and recovery ratings on the proposed loan facility take
into account the nature of MTS' assets, the probability of a
restructuring or going-concern sale, and the likelihood of
insolvency proceedings being adversely influenced by MTS being
domiciled in Russia, which S&P considers to be a relatively
unfavorable jurisdiction for creditors.

With regard to the pass-through transaction, although S&P has not
assigned a recovery rating to the proposed notes, S&P believes
that recovery prospects for these notes are intrinsically linked
to those for the loan facility, based on S&P's understanding that
the noteholders will be granted the same rights as those under the
loan facility.  As a result, S&P considers that potential
recoveries for noteholders would rely entirely on the effective
operation of the pass-through structure between MTS and the
issuer, MTS International Funding.  In addition, S&P foresees a
risk that enforcement costs at the issuer level could create an
additional layer of expense that may slightly reduce the recovery
prospects for noteholders versus the direct recovery prospects for
the loan facility lender.

                           Ratings List

                           New Ratings

                   MTS International Funding Ltd.

  US$750 mil. loan participation notes (proposed)           BB

                     Mobile TeleSystems (OJSC)

     Loan facility (proposed)                               BB
     Recovery Rating

MURRAYS RENT-A-CAR: Pays EUR1.56 Million in Tax Settlement
Colm Keena at The Irish Times reports that Murrays Rent-a-Car Ltd.
for a period, made a settlement of EUR1.56 million arising from
the under-declaration of VAT.  The company went into examinership
in 2009.


FIAT SPA: Fiom Union Balks at Labor Demands at Pomigliano Plant
Guy Dinmore at The Financial Times reports that Fiat car workers
at a plant in Naples came under intense pressure on Wednesday to
vote in favor of management proposals for sweeping changes in work
practices and labor rights.

The FT relates four unions agreed on Tuesday to Fiat's proposals
-- a precondition for investing EUR700 million in the Pomigliano
D'Arco plant -- but the largest metalworkers union, Fiom, refused
to sign and denounced the proposed ballot next week as

According to the FT, Guglielmo Epifani, leader of the leftwing
CIGL federation which includes Fiom, said on Wednesday that it was
important for all workers to take part in the June 22 ballot at
the plant and declared that he believed a majority would vote in
favor of the reforms.

Fiat's investment plans for Italy focus on closing a plant in
Sicily but expanding output at Pomigliano by transferring
production of the Panda model from Poland, the FT states.  Sergio
Marchionne, Fiat chief executive, has indicated that Pomigliano
would have no future if all the unions did not come on board, the
FT notes.

Fiom leaders say Fiat's demands, including possible sanctions
against absenteeism and strikers, broke existing labor contracts
and were unconstitutional, the FT discloses.

                          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.


SILVER BIRCH: Moody's Cuts Rating on Class E Notes to 'Caa3'
Moody's Investors Service has taken these rating actions on notes
issued by Silver Birch CLO I B.V.:

  -- EUR205.5M Class A Senior Secured Floating Rate Notes due 2020
     Notes, Aa1 Placed Under Review for Possible Downgrade;
     previously on Nov 18, 2009 Downgraded to Aa1

  -- EUR18M Class B Senior Secured Floating Rate Notes due 2020
     Notes, A2 Placed Under Review for Possible Downgrade;
     previously on Nov 18, 2009 Downgraded to A2

  -- EUR21M Class C Senior Secured Deferrable Floating Rate Notes
     due 2020 Notes, Downgraded to Ba1 and Placed Under Review for
     Possible Downgrade; previously on Nov 18, 2009 Confirmed at

  -- EUR18M Class D Senior Secured Deferrable Floating Rate Notes
     due 2020 Notes, Downgraded to B2 and Placed Under Review for
     Possible Downgrade; previously on Nov 18, 2009 Downgraded to

  -- EUR7.5M Class E Senior Secured Deferrable Floating Rate Notes
     due 2020 Notes, Downgraded to Caa3; previously on Nov 18,
     2009 Downgraded to Caa1

This transaction is a managed cash leveraged loan collateralized
loan obligation with exposure to predominantly European senior
secured loans.

The rating actions reflect further deterioration in the credit
quality of the portfolio.  This is observed through a decline in
the portfolio weighted average rating factor 'WARF' (3100 in April
2010, compared to 2627 in September 2009) and an increase in the
proportion of securities rated Caa1 and below in the portfolio
(25.35% in April 2010, compared to 16.62% in September 2009).

Moody's notes a significant amount of cash in the principal
account, currently EUR36.7 million (approximately 13% of the pool)
as per the April 2010 trustee report.  Moody's assumed in its
analysis full reinvestment of the cash and looked at several
scenarios of WARF, diversity score and par changes (taking into
account WARF projections provided by the collateral manager).
This includes a number of sensitivity analyses, including
consideration of an improvement in portfolio WARF.

Further, Moody's has taken into consideration West LB's decision
to exit the transaction, in their role as collateral manager.
West LB informed us of a back-up plan to ensure complete
reinvestment of the cash if the appointment of a successor
collateral manager fails to take place before the end of the
reinvestment period.  Moody's will closely monitor the evolution
of the portfolio in the coming months and will conclude its review
for downgrade once the transition to a new collateral manager and
reinvestment of cash has been completed.


* Fitch Affirms 'B+' Rating on Romanian Metro Area of Oradea
Fitch Ratings has affirmed the Romanian Metropolitan Area of
Oradea's Long-term foreign and local currency ratings at 'B+',
respectively, and its Short-term foreign currency rating at 'B'.
The Outlooks on the Long-term ratings are Stable.

The ratings reflect OMA's main objective of providing economic and
infrastructure development to the metropolitan area which is of
high importance to its 12 local authority members.  The ratings
also factor in the importance of the City of Oradea ('BB+'/Stable)
to the metropolitan area as its main sponsor and revenue
contributor.  The ratings also take into account OMA's limited
revenue flexibility and small budget.

A clear commitment by Bihor County Council to the obligations of
OMA's members in the form of a guarantee, and/or an improvement of
the Romanian economy, positively affecting the creditworthiness of
Romanian local authorities and Oradea in particular, would be
positive for OMA's ratings.  Further deterioration in OMA's
budgetary performance and an operating margin turning to negative,
which could stem from delays in member contributions, and/or
deterioration in Oradea's ratings would be negative for OMA's

OMA has a short track record although its performance to date has
been good with reported overall surpluses.  According to Fitch's
calculations, the operating margin declined to 8.9% in 2009,
significantly below the average margin of 38.6% for 2005-2009.
This development is driven by expanding business and associated
higher personnel and administrative expenditure, while fees
remained rather stable.  In Fitch's' view, contributions should
remain sufficient to run the association's administration.  OMA's
limited budget size, with total revenue of just RON1.39 million in
2009, is a rating constraint but is mitigated somewhat by its
sound liquidity position with cash-balance covering operating
expenditure by almost 100% at end-2009.

Romania's highly centralized budgetary system ensures adequate
support and control from the central government, as the state
supervises local authorities' accounts and financial positions
including debt approval, but it also limits their budgetary
flexibility.  In addition, the current mayor of Oradea has clearly
stated the importance of OMA with respect to economic and
infrastructure development and the improvement of Oradea and its
associated communes, ensuring the necessary support for annual
contributions to the association's operating and business

OMA was founded in 2005 as an association of nine -- since
increased to 12 -- local authorities for the purpose of
implementing common projects to benefit the economic and
infrastructural development of the metropolitan area.  OMA's total
population is about 250,000 inhabitants, most of whom (205,000)
are located in Oradea which is the capital and largest city of
Bihor County located in north-west Romania.


ALFA-BANK OJSC: S&P Affirms 'B+' Counterparty Credit Rating
Standard & Poor's Ratings Services said that it had affirmed its
'B+' long-term and 'B' short-term global scale counterparty credit
ratings and its 'ruA+' Russia national scale rating on Russia-
based OJSC Alfa-Bank.  At the same time S&P revised the outlook to
positive from stable.

"The outlook revision reflects Alfa-Bank's improving financial
profile, namely its stronger balance sheet liquidity; the
stabilization of asset quality and core revenues; and maintenance
of capitalization at an adequate level," said Standard & Poor's
credit analyst Elena Romanova.

Although the bank's financial profile has begun to recover
somewhat ahead of those of domestic peers, the improvements
largely depend on a sustained recovery in Russia's economy and
markets.  In addition, S&P has observed that the bank's management
follows a conservative development strategy, which it has been
implementing since 2009, which S&P believes should help it
mitigate to some extent the continuing high risks that banks in
Russia are exposed to.

The ratings reflect Alfa-Bank's stand-alone credit profile and do
not include any uplift for potential extraordinary external
support, either from owners or the government.

The bank's financial and business profiles have suffered as a
result of the more challenging conditions in Russia and global
markets.  Alfa-Bank's loans overdue by more than 90 days stood at
13% of its loan portfolio at year-end 2009, but had fallen to 9%
by March 31, 2010, as it has continued to restructure problem
loans.  Restructured loans amounted to 11.5% of total loans on
Jan. 1, 2010.

Credit risks are exacerbated by high single-name and industry
concentrations, especially in the high-risk construction sector,
representing 14% of total loans on Jan. 1, 2010.  Even though S&P
anticipates a large share of restructured loans to turn
performing, S&P still expects provisioning costs to remain high in
2010, and margins to come under pressure from tougher competition
for deposits and good-quality borrowers.  Consequently,
profitability is likely to remain constrained, in S&P's view.

The positive outlook reflects S&P's view that Alfa-Bank's
financial profile will continue to improve over the next 12
months, with asset quality and subsequent credit losses reducing
to more manageable levels.  Preprovision operating income is
therefore likely to stabilize with a reduced cost of risk and
enhance the bank's internal capital-generation capacity.  S&P
anticipate that the bank's current adequate capitalization will be
sustained, given the bank's more conservative asset growth targets
in 2010.

"S&P would consider an upgrade if S&P see continued improvement in
asset quality closer to pre-2008 levels, particularly with respect
to the overall portfolio (including restructured loans), which S&P
believes will lead to more robust profitability and
capitalization," said Ms. Romanova.

A reduction or loss of this positive momentum would result in a
revision of the outlook back to stable.

S&P could lower the ratings if S&P sees a weakening of Alfa-Bank's
credit profile, with a negative spillover onto the bank's
financial and credit standing and liquidity and capitalization,
although this is not S&P's base-case expectation.

MOBILE TELESYSTEMS: Raises US$750 Mil. in Dollar-Bond Sale
Tim Catts and Denis Maternovsky at Bloomberg News report that
OAO Mobile TeleSystems raised US$750 million in the biggest
dollar-bond sale by an emerging-market company in almost two
months.  The 10-year notes were priced at par to yield 8.625%, or
531.7 basis points more than similar-maturity Treasuries,
Bloomberg data show.

"With longer-term financing unavailable on the domestic market we
believe a limited portion of our debt portfolio should be in hard
currencies providing longer tenure," Chief Financial Officer
Alexei Kornya said in an e-mailed response to questions from
Bloomberg.  "Any deal around US$1 billion with tenure of 10 years
extends the average maturity of our debt outstanding by one year."
Mr. Kornya, as cited by Bloomberg, said the company seeks to limit
the share of foreign- currency debt to no more than 30%.

The bond sale was organized by Bank of America Merrill Lynch,
Credit Suisse Group AG and Royal Bank of Scotland Group Plc,
Bloomberg discloses.

Headquartered in Moscow, Mobile TeleSystems OJSC -- is a provider of mobile cellular
communications services in Russia, Uzbekistan, Turkmenistan and
Armenia and Ukraine.  During the year ended December 31, 2008, the
Company had a subscriber base of 91.33 million (64.63 million in
Russia, 18.12 million in Ukraine, 5.65 million in Uzbekistan, 0.93
million in Turkmenistan and 2.02 million in Armenia).  In addition
to standard voice services, the Company offers its subscribers
value added services, including voice mail, short message service
(SMS), general packet radio service (GPRS), augmented by enhanced
data rates for GSM evolution (EDGE), high-speed downlink packet
access (HSDPA), and various SMS- and GPRS/EDGE/HSDPA-based
information and entertainment services (including multi media
message service (MMS)).  It also offers its subscribers the
ability to roam automatically throughout Europe and in much of the
rest of the world.

                           *      *      *

Mobile Telesystems' debt is rated Ba2, two levels below investment
grade, by Moody's Investors Service and an equivalent BB at
Standard & Poor's, according to Bloomberg News.

MOBILE TELESYSTEMS: Moody's Puts 'Ba2' Rating on US$750 Mil. Notes
Moody's Investors Service has assigned a (P) Ba2, LGD4/58% rating
to Mobile TeleSystems OSJC's issuance of US$750 million 8.625%
Loan Participation Notes due 2020.  MTS's other ratings remain
unchanged (Ba2 corporate family and Ba2 senior unsecured ratings).
The outlook for all ratings is stable.

On June 15, 2010, MTS priced the Notes to refinance its foreign
currency (non-ruble) denominated liabilities and for general
corporate purposes.  The Notes will be issued through a special
purpose finance vehicle, MTS International Funding Limited,
created for the sole purpose of on-lending the proceeds to MTS.

The Notes will represent a secured limited recourse obligation of
the Issuer.  The Notes will be secured on all the rights to
principal, interest and additional amounts payable from MTS to the
Issuer pursuant to a loan agreement between MTS and the Issuer.
The provisional (P) Ba2 rating reflects the fact that the claim of
the Issuer on MTS's assets by virtue of the loan to it will rank
pari passu with other unsecured liabilities of MTS.  The Notes
will not benefit from financial covenants.  Certain covenants,
including, inter-alia, the sale of assets and the merger,
consolidation and disposition of assets covenant would disappear
if MTS acquires investment grade status.

Moody's issues provisional ratings in advance of the final issue
of securities, and these ratings only represent Moody's
preliminary opinion.  Upon a conclusive review of the transaction
and associated documentation, Moody's will endeavor to assign a
definitive rating to the securities.  A definitive rating may
differ from a provisional rating.

Moody's last rating action was implemented on October 14, 2009,
when it confirmed all MTS's ratings.

MTS is the largest wireless telecommunication operator in Russia
with US$9.8 billion in revenues and US$4.5 billion in reported
OIBDA (45.5% margin) at December 31, 2009.


CAJA SAN FERNANDO: S&P Junks Rating on Class A1 Notes From 'BB'
Standard & Poor's Rating Services lowered and removed from
CreditWatch negative its credit rating on the class A1 notes in
Caja San Fernando CDO I Fondo de Titulizacion de Activos series
USD.  The ratings on the class A2, B, C, and D notes remain

S&P placed the class A1 notes on CreditWatch negative on Sept. 17,
2009, as a result of S&P's revised corporate collateralized debt
obligation criteria.

The rating actions follow a review of this transaction under S&P's
updated CDO criteria, which apply to corporate CDOs and
transactions that are backed by pools of corporate CDO securities,
as well as S&P's assessment of the credit deterioration in the
transaction portfolio.

The underlying portfolio comprises primarily 2002 and 2003 vintage
U.S. CDOs of asset-backed securities.  According to S&P's
analysis, the number of performing assets remaining in the
portfolio is very limited, with up to 48% of the portfolio
currently rated 'CC' or 'D'.  S&P's analysis also shows that a
further 17.5% of the portfolio is currently rated within the 'CCC'
rating category.

In S&P's view, the portfolio is highly concentrated with the five
largest obligors together accounting for about 22.5% of the

As a result of these developments, the existing rating on the
class A1 notes is, in S&P's opinion, no longer commensurate with
the available credit enhancement, and S&P has therefore lowered
the rating on them.

                           Ratings List

     Caja San Fernando CDO I Fondo de Titulizacion de Activos
     US$171 Million Fixed- And Floating-Rate Notes Series USD

       Rating Lowered and Removed From CreditWatch Negative

         Class        To                     From
         -----        --                     ----
         A1           CCC-                   BB/Watch Neg

                        Ratings Unaffected

                      Class        Rating
                      -----        ------
                      A2           CCC-
                      B            CC
                      C            CC
                      D            CC

MEDIAPRODUCCION SL: Soccer Rights Row Prompts Bankruptcy Filing
Paul Tobin at Bloomberg News reports that Mediaproduccion SL said
Wednesday it was seeking protection from creditors after Sogecable
SA failed to make a payment to broadcast games next season.

Madrid-based pay-television company Sogecable and Mediaproduccion
were locked in a dispute over control of soccer broadcast rights
in recent years, Bloomberg relates.  Bloomberg recalls the battle
led to legal challenges and in March a court ruled that
Mediaproduccion had to pay EUR97 million (US$119.3 million) in
damages to Audiovisual Sport, a unit of Sogecable.

According to Bloomberg, Sogecable said in a statement late
Wednesday that it had demanded the execution of the March ruling
on June 9.

Based in Barcelona Mediaproduccion SL is the owner of the
broadcast rights for the Spanish soccer league.

* SPAIN: To Publish Results of Stress Tests on Banks
Gavin Finch and Simon Clark at Bloomberg News report that the Bank
of Spain's decision to publish the results of stress tests on the
nation's lenders may force European neighbors to follow suit as
investors demand more disclosure of the risks on banks' books.

"Pressure is increasing and now European countries need to
consider whether to follow Spain," Bloomberg quoted Daniel Hupfer,
who helps manage US$40 billion at M.M. Warburg in Hamburg,
including shares of Deutsche Bank AG, BNP Paribas SA and Banco
Santander SA, as saying.  "Whether they will is hard to predict.
Europe isn't really seeing eye-to-eye right now."

Bloomberg relates Miguel Angel Fernandez Ordonez, the central bank
governor, said in a speech Wednesday that the Bank of Spain will
make the findings public to give investors more information on the
state of the banks.

The Bank of Spain intends "to reveal the deterioration estimated,
the consequent capital requirements and the capital funding
committed, to provide the markets with a perfectly clear idea of
the situation of the Spanish banking system," Mr. Fernandez
Ordonez said in the text of the speech delivered in Madrid,
according to Bloomberg.

Greece's sovereign debt woes have focused attention on Spain's
public finances and the costs of buttressing the country's banks,
including the foundation-based lenders known as "cajas" that have
been hobbled by a surge in bad debts, Bloomberg notes.

* SPAIN: Risk Premium on 10-Year Bonds Rises to Decade High
Emma Ross-Thomas at Bloomberg News reports that Spain, which faces
EUR24.7 billion of maturing debt in July, has seen the risk
premium on its 10-year bonds rise to a decade high on concern it
may need to tap a European Union financial lifeline.

According to Bloomberg, the Treasury said Spain plans to sell as
much as EUR3.5 billion (US$4.3 billion) of 10- and 30-year bonds.
Bloomberg says the yield on the country's benchmark 10-year bond
rose to 4.939% at auctions on Thursday, June 17, the highest in
almost eight years and 89 basis points more than the 4.045% it
paid at the last 10-year auction on May 20.

Spain is trying to convince investors it can cut the third-
largest deficit in the euro region, while propping up the
country's savings banks and lifting the economy out of a two-year
slump, Bloomberg states.

Bloomberg relates the auction comes as EU leaders meet in Brussels
to advance their plan to establish a EUR750-billion financial
backstop to support high-deficit nations such as Spain and defend
the euro.

Bloomberg notes concern is also mounting that Spain will need
funds to pump liquidity into its banking system.  Spanish lenders
have been hit by a surge in bad loans stemming from the collapse
of its real- estate market, and the Bank of Spain has had to seize
two savings banks, Bloomberg discloses.  Short-term lending has
dried up as confidence in the banks wanes, Bloomberg states.

U N I T E D   K I N G D O M

BRITISH AIRWAYS: Talks With Cabin Crew Union Collapse
Kaveri Niththyananthan at Dow Jones Newswires reports that
fresh talks between British Airways PLC and Unite, the union
representing cabin crew broke, down Tuesday despite a mediator
having suggested a proposal aimed at breaking the deadlock.

"Having given the parties time to reflect upon this initiative,
ACAS met separately with the parties [Tues]day," Dow Jones quoted
a spokesperson for the Advisory, Conciliation and Arbitration
Service, which has been mediating the dispute, as saying.
"Regrettably, the parties were unable to move closer to an

Dow Jones notes ACAS said no further meetings are planned but it
will monitor developments.  According to Dow Jones, a spokesman
for BA said it remains available for further talks.

Dow Jones relates BA and Unite have been in dispute for 16 months
over changes to working practices, and tensions have flared in
recent months after the carrier removed travel perks for those
cabin crew who joined the picket lines in strikes earlier this


On June 11, 2010, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported that BA's cabin-crew union said it will
ballot members on further strike action, with the timing of the
vote the only issue to be resolved.  Bloomberg disclosed Brian
Boyd, the Unite union's national officer for aviation, said that
in addition to contract terms, the vote will concern the removal
of travel perks for striking workers and disciplinary action taken
during the dispute.  The union, Bloomberg said, estimates the
strike has cost the carrier GBP7 million (US$10.2 million) a day.

                      About British Airways

Headquartered in Harmondsworth, England, British Airways Plc,
along with its subsidiaries, (LON:BAY) -- 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,

                           *     *     *

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

HIGHGATE & DAVENPORTS: In Liquidation; 18 Jobs Affected
Martyn Leek at M&C reports that Highgate & Davenports has gone
into liquidation, with the loss of 18 jobs.  According to the
report, the company, which entered into a pre-pack administration
less than a year ago, will be liquidated on Friday.  The company
owes in the region of GBP0.5 million in unpaid excise duty, the
report says.

The report relates Peter Darcy, of KJ Watkin & Co, an Aldridge-
based insolvency practitioner, said: "The company has ceased
trading and all employees have been made redundant."

Highgate & Davenports is the operator of the historic Walsall-
based brewery.  It produced beers including Davenports IPA,
according to M&C.

ROYAL BANK: Raises GBP100-Mil. From Pakistan, UAE Units Sale
Jennifer Hill at The Scotsman reports that Royal Bank of Scotland
had raised more than GBP100 million by selling units in Pakistan
and the UAE.  According to the report, the bank said it had sold
its Pakistan unit for GBP34 million to Faysal Bank, owned by
Bahraini company Ithmaar.

The report relates RBS said it was also disposing of its retail
banking business in the UAE to Abu Dhabi Commercial Bank.  It will
pay a cash sum equal to the net asset value of the unit on
completion plus a premium of around GBP31 million, the report

The two transactions, collectively worth GBP102 million, are
subject to regulatory approval, the report notes.

The Pakistan deal is expected to complete in the third quarter of
the year, with the UAE disposal in the fourth quarter, the report

                            About RBS

The Royal Bank of Scotland Group plc (NYSE:RBS) -- 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.

* UK: Launches Review That May Trigger Bank Break-Ups
Jeff Salway at The Scotsman reports that a year-long review that
could trigger the break-up of the UK's biggest banks was launched

According to the report, the Independent Commission on Banking
will examine if the risks posed by banks of "different size, scale
and function" demand the separation of investment and retail
banking operations.  The commission will be chaired by Sir John
Vickers, former head of the Office of Fair Trading, once chief
economist of the Bank of England and a member of the Bank's
monetary policy committee between 1998 and 2000, the report

The report says the commission, which will make its
recommendations to the cabinet committee on banking by September
2011, will also examine the extent to which the biggest banks
benefit competitively from being perceived as too big to fail and
look at how to reduce the impact of bank failure.

Breaking up banks would eliminate conflicts of interest and
contribute to a safer system, according to the commission, which
also recommended the establishment of "living wills" to manage
future bank collapses and a ban on commissions or bonuses not
linked to performance, the report states.

* UK: Creditors to Be Hit as Insolvency Service Shuts IT System
Rachael Singh at Accountancy Age reports that creditors could find
themselves more than GBP19 million out of pocket while the
Insolvency Service shuts its IT system down for 10 days.

According to the report, insolvency practitioners will be unable
to request payments, on behalf of creditors, from the Official
Receivers' offices, as the government agency upgrades its
technology system in an GBP82 million project.

The report notes the government agency had given insolvency
practitioners "as much notice as possible", equating to around six
weeks, and said it has made provisions for the extra payments
required for creditors when the upgrade is completed.

The Insolvency Service expects all its major online based
services, including insolvency notices sent to the London Gazette
and support services, to be disrupted during this period, the
report states.


* S&P Takes Various Rating Actions on 16 European CDO Tranches
Standard & Poor's Ratings Services took various rating actions on
16 European synthetic collateralized debt obligation tranches.

Specifically, S&P:

* Removed from CreditWatch negative its ratings on eight tranches;

* Lowered and removed from CreditWatch negative its rating on one

* Raised and removed from CreditWatch positive its ratings on six
  tranches; and

* Raised and kept on CreditWatch positive its rating on one

The rating actions follow S&P's recent rating actions on the
underlying collateral, reference obligor, or guarantor to which
these transactions are weak-linked.

According to the transaction documents, the ratings on these
tranches are linked to the rating on the underlying collateral,
reference obligor, or guarantor.  Under S&P's criteria, changes to
the weak-linked rating should be reflected in its rating on the
CDO tranche.

                           Ratings List

            Ratings Removed From Creditwatch Negative

                           Aria CDO II
US$50 Million Class L-2U7 Accreting Composite Security Secured
       Portfolio Credit-Linked Notes (Issued By Aria CDO II
                           (Ireland) PLC)

                To                   From
                --                   ----
                AAAp                 AAAp/Watch Neg

                 Cheyne Credit SPI (Ireland) PLC
US$5 Million Non-Coupon Paying Cheyne Managed CSO Fund-Linked SPI
                          Notes Series 21

                To                   From
                --                   ----
                AAAp                 AAAp/Watch Neg

                          Eirles Four Ltd.
      EUR79.2 Million Variable Coupon Secured Notes Series 68

                To                   From
                --                   ----
                AAA                  AAA/Watch Neg

                          Eirles Two Ltd.
               EUR15.75 Million Variable Coupon And
            Redemption Amount Secured Notes Series 142

                To                   From
                --                   ----
                AAA                  AAA/Watch Neg

                    Far East Funding I SPC Ltd.
    US$100 Million Principal Protected Notes Series 2007-04

                To                   From
                --                   ----
                Ap                   Ap/Watch Neg

                       Modjeska Canyon S.A.
         US$15 Million Mezzanine Notes Series 2005-02U

                To                   From
                --                   ----
                AAA                  AAA/Watch Neg

                        Modjeska Canyon S.A.
         US$5 Million Combination Notes Series 2005-06U

                To                   From
                --                   ----
                AAA                  AAA/Watch Neg

                        Pisces Finance Ltd.
    CLP2.7 Billion Secured Inflation-Linked and Credit-Linked
                  Fixed-Rate Notes Series 2006-02

                To                   From
                --                   ----
                BBB-                 BBB-/Watch Neg

      Rating Lowered and Removed From Creditwatch Negative

                          Coriolanus Ltd.
      EUR6 Million Pass-Through Floating-Rate Secured Notes
                             Series 28

                To                   From
                --                   ----
                B-                   B+/Watch Neg

      Ratings Raised and Removed From Creditwatch Positive

                            Aria CDO I
         CHF58.4 Million, EUR31.5 Million, GBP0.4 Million,
           US$17.4 Million Floating-Rate Secured Notes
       (Issued By Aria CDO I (Cayman Islands) Ltd.) Series 7

                To                   From
                --                   ----
                BBB+                 BBB-/Watch Pos

                            Aria CDO I
         CHF58.4 Million, EUR31.5 Million, GBP0.4 Million,
           US$17.4 Million Floating-Rate Secured Notes
       (Issued By Aria CDO I (Cayman Islands) Ltd.) Series 6

                To                   From
                --                   ----
                BBB+                 BBB-/Watch Pos

                       Edam Funding One Ltd.
EUR20 Million Limited Recourse Floating-Rate Credit-Linked Notes
                           Series 2006-1

                To                   From
                --                   ----
                B+                  B-/Watch Pos

                       Edam Funding One Ltd.
EUR25 Million Limited Recourse Floating-Rate Credit-Linked Notes
                           Series 2006-02

                To                   From
                --                   ----
                B+                  B-/Watch Pos

                       Edam Funding One Ltd.
EUR20 Million Limited-Recourse Floating-Rate Credit-Linked Notes
                          Series 2006-03

                To                   From
                --                   ----
                B+                  B-/Watch Pos

                          Eirles Two Ltd.
     US$50 Million Floating-Rate Secured Notes Series 120

                To                   From
                --                   ----
                BBB-                 BB+/Watch Pos

          Rating Raised and Kept on Creditwatch Positive

                      Prelude Europe CDO Ltd.
   A$40 Million Credit-Linked Notes Series 2005-4 (Credit Sail)

                To                   From
                --                   ----
                B-/Watch Pos         CCC+/Watch Pos

* BOOK REVIEW: The Executive Guide to Corporate Bankruptcy
Authors: Thomas J. Salerno; Craig D. Hansen; Jordan A. Kroop
Publisher: Beard Books
Hardcover: 728 pages
List Price: US$174.95

The newly revised edition of The Executive Guide To Corporate
Bankruptcy is perfectly timed.  As the global economy continues to
deteriorate, more and more companies are sinking into insolvency
with executives at their helm who need a crash course in
bankruptcy realities.  This excellent book will quickly get both
the seasoned executive and the uninitiated lawyer up to speed on
the bankruptcy process.

Salerno, Kroop and Hansen understand that the reorganization
process can be intimidating, puzzling, and generally unpleasant.
They penetrate the opaque gloom that some lawyers tend to
perpetuate.  Each chapter of this book addresses a different
aspect of the reorganization process, beginning with an overview
of the origins and purpose of US bankruptcy laws and ending with a
debunking of common myths about reorganization.  In between, they
discuss each chapter of the bankruptcy code; discussing the gamut
from liquidations through Chapter 11 sales and full-blown
reorganizations.  The authors' ability to distill the bankruptcy
code's complex language into comprehensible and manageable blocks
of information makes the book extremely readable.

The Executive Guide is full of pragmatic advice.  After laying out
the essential elements and key players in the restructuring
process, the authors get down to the nitty gritty of navigating a
distressed company through reorganization.  They realistically
assess the challenges that an executive should expect to face in
Chapter 11.  They discuss how to assuage and balance the concerns
of employees and key vendors, address the inevitable creditor
dissatisfaction with executive compensation, deal with members of
their professional team and work effectively as an executive whose
actions will be constantly scrutinized and second-guessed.  The
authors also provide the cautionary note that "executives
preparing to embark on a reorganization are usually too
preoccupied with business emergencies to think about the personal
toll that the process will exact."

One common flaw in books that try to be accessible while dealing
with technical topics is that they fall short in providing the
reader with a substantive understanding of the subject matter.
The Executive Guide to Corporate Bankruptcy avoids this pitfall.
The book's fourth and fifth chapters provide in-depth analysis of
the strategic decisions and steps that should be taken during the
restructuring process.  The authors explain the importance that
venue can have a case, the intricacies of first day motions and
how to prepare for confirmation.  There is a detailed discussion
of the sale of assets during the course of a Chapter 11
restructuring and the importance of making sure that major
constituencies are a part of the decision-making process.  They
also walk the reader through the specifics of a plan of a
reorganization, explaining the dynamics of the negotiation
process, especially how to understand and appreciate the needs of
your constituents and how to get a plan confirmed.

The icing on the cake for this book is the excellent appendix.
The final section of the book includes a user-friendly glossary of
commonly used bankruptcy terms and a reorganization timeline.  It
also includes sample documents such as debtor-in-possession (DIP)
financing agreements, operating reports, first day motions and
orders, management severance agreements, and more.  The summary of
management incentive stock plans implemented in recent
restructuring transactions is particularly informative.

This is a terrific book.  While geared to the non-lawyer
executive, it will also be a useful resource for any lawyer who
wants to gain practical familiarity with the bankruptcy process.
This should be a best seller in today's environment, though it may
need to be delivered to most executives in a brown paper wrapper.


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 * * *