TCREUR_Public/100621.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Monday, June 21, 2010, Vol. 11, No. 120

                            Headlines



G E R M A N Y

WESTLB AG: Sale to Start by Sept. 30; Merz Appointed Supervisor


G R E E C E

WIND HELLAS: Fitch Downgrades Issuer Default Rating to 'C'


H U N G A R Y

* HUNGARY: Liquidations in Construction Sector Up 9.9% in May


I R E L A N D

ANGLO IRISH: Has Two Weeks to Reconsider Claim of Privilege
ANGLO IRISH: Agreed to Balance Sheet Transactions with Banks
ARGON CAPITAL: Fitch Lowers Ratings on Series 63 Notes to 'D'
DUNCANNON CRE: Partial Repurchase Won't Affect Fitch's Ratings
RESIDENCE CLUB: Judge Cuts Interim Examiner Fees by 16%

CARRICKMINES GREEN: Sold First Tranche of Apartments
CEDAR GROVE: 15 Apartment Units Sold by DNG


I T A L Y

LUCCHINI SPA: Moody's Downgrades Corporate Family Rating to 'B3'


N E T H E R L A N D S

FIETSFABRIEK: Declared Bankrupt; In Takeover Talks


R U S S I A

INTERNATIONAL INDUSTRIAL: Moody's Cuts Deposit Rating to 'B3'
INTERNATIONAL INDUSTRIAL: Fitch Junks Issuer Default Rating
SOUTHERN TELECOM: S&P Puts B Rating on Developing Watch


U K R A I N E

NAFTOGAZ UKRAINY: Limits Gas Supply to Companies with Arrears


U N I T E D   K I N G D O M

AVEBURY FINANCE: S&P Affirms D Ratings on Three Classes of Notes
BOUDICHE: June 24 Deadline Set for Bids; Gets 20 Inquiries
CDC LEISURE: In Administration; KPMG Appointed
COVE BAY: Guy Craig Acquires Business; 34 Jobs Secured
ETON GROUP: KPMG Appointed as Administrators

LAISHLEY LTD: In Administration; Owes Up to GBP12 Million
LLOYDS BANKING: Mulls Stock-Market Flotation for 600 Branches
ORACLE GROUP: Four Companies Put Into Liquidation
PILKINGTON'S GROUP: In Administration; KPMG Appointed
PORTSMOUTH: To Exit Administration After Creditors Back CVA Deal

ROYAL BANK: JPMorgan Gets EU Approval for Sempra Unit Purchase
STUDIOSMART LTD: In Administration; RSM Tenon Seeks Buyers
WHITE TOWER: Fitch Affirms 'C' Ratings on Two Classes of Notes

* UK: Disqualification Actions v. Insolvent Company Directors Up
* UK: Banks Face Further Write-downs, Moelis & Co. Warns


X X X X X X X X

* BOND PRICING: For the Week June 14 to June 18, 2010




                         *********



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


WESTLB AG: Sale to Start by Sept. 30; Merz Appointed Supervisor
---------------------------------------------------------------
Aaron Kirchfeld at Bloomberg News reports that Germany's Soffin
bank rescue fund said the sale of WestLB AG will start by Sept. 30
at the latest after it appointed Friedrich Merz to oversee the
process.

According to Bloomberg, WestLB, the bank's owners and government
authority responsible for financial market stability agreed to
name an official to oversee the sale.

Bloomberg recalls Germany's bank-rescue fund agreed last year to
provide WestLB with EUR3 billion (US$3.7 billion) in capital to
help the lender restructure, improving its chances of finding a
buyer.  The bank was ordered to reduce its assets, shed risky
businesses and sell itself by the end of 2011 under conditions
imposed by the European Commission for approving the state aid,
Bloomberg notes.

                          About WestLB

Headquartered in Duesseldorf, Germany, WestLB AG (DAX:WESTLB)
-- http://www.westlb.com/-- provides financial advisory,
lending, structured finance, project finance, capital markets
and private equity products, asset management, transaction
services and real estate finance to institutions.

In the United States, certain securities, trading, brokerage and
advisory services are provided by WestLB AG's wholly owned
subsidiary WestLB Securities Inc., a registered broker-dealer
and member of the NASD and SIPC.

WestLB's shareholders are the two savings banks associations in
NRW (25.15% each), two regional associations (0.52% each), the
state of NRW (17.47%) and NRW.BANK (31.18%), which is owned by
NRW (64.7%) and two regional associations (35.3%).

                           *     *     *

As reported by the Troubled Company Reporter-Europe on May 6,
2010, Moody's Investors said the E+ bank financial strength rating
(BFSR, which maps directly to a B2 baseline credit assessment,
BCA), was affirmed and the outlook on this rating changed to
stable from developing.

Moody's affirmation of the E+ BFSR and the change of its outlook
to stable reflects that, despite positive developments,
the BFSR remains constrained by the bank's weak franchise, which
includes several core segments that do not (or only
insufficiently) contribute to group profits, thus resulting in the
bank's continued dependence on volatile, wholesale-focused sources
of income.  Moody's does not rule out that the bank could be split
up and unwound if efforts to divest the bank were to prove
unsuccessful.


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


WIND HELLAS: Fitch Downgrades Issuer Default Rating to 'C'
----------------------------------------------------------
Fitch Ratings has downgraded Greek mobile operator WIND Hellas
Telecommunications S.A.'s Long-term Issuer Default Rating to 'C'
from 'CCC'.  The company's Short-term IDR is affirmed at 'C'.  The
full list of rating actions is detailed below.

The downgrade follows the company's announcement, concurrent with
the publication of its Q110 results, that it has started
discussions with certain creditors and its shareholder Weather
Investments to evaluate strategic options and that its capital
structure is presently unsustainable.

The downgrade reflects Fitch's view that a potential default is
imminent, given that the company has debt repayment and coupon
payments totaling approximately EUR40 million at end-June and mid-
July, set against a cash balance of just EUR35 million as at 10
June 2010.  The downgrade also reflects the lack of clarity on
potential shareholder support to avert a liquidity crunch.

"A combination of continued competitive pressures and consumer
spending weakness led to a cash burn of EUR33.7 million in just
two months in April and May, reducing the benefits of last year's
restructuring," said Richard Petit, Associate Director in Fitch's
EURopean TMT team.  "Even though it has not formally launched a
debt restructuring or yet defaulted on its obligations, Fitch is
of the opinion that, unless it receives an injection of new
liquidity or otherwise reschedules its revolving credit facility,
the company will face a liquidity crunch by 15 July 2010."

Although Fitch believes that WIND Hellas is a strategic asset for
its parent, the absence of clear statement from Weather
Investments on how and when it would step in to support its
subsidiary lends further weight to the strong likelihood of some
form of restructuring or a default.

In Q110, WIND Hellas continued to report weak performance with
revenues and EBITDA respectively down 18.5% and 31.4% year-on-
year.  Furthermore, the preview on trading performance for April
and May saw a material deterioration in revenues and profitability
due to the ongoing aggressive competitive climate but, more
importantly, due to a visible reduction in consumer spending for
Wind Hellas' telecoms services and a visible increase in late
payments from subscribers.  Given the volatile and unpredictable
environment, management declined to provide further earnings
guidance.  The acceleration of cash consumption in April and May
leaves the company with virtually no financial flexibility to meet
its short-term debt obligations and to invest in the business for
the long-term.

WIND Hellas' debt instrument ratings have been downgraded and
affirmed:

* Hellas Telecommunications (Luxembourg) V senior revolving credit
  facility: downgraded to 'CC' from 'B-'; Recovery Rating is 'RR3'

* Hellas Telecommunications (Luxembourg) V senior secured
  floating-rate notes due 2012: downgraded to 'C' from 'B-';
  Recovery Rating revised to 'RR4' from 'RR3'

* Hellas Telecommunications (Luxembourg) III senior notes due
  2013: affirmed at 'C'; Recovery Rating is 'RR6'


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


* HUNGARY: Liquidations in Construction Sector Up 9.9% in May
-------------------------------------------------------------
MTI-Econews, citing company-information service Opten, reports
that creditors initiated liquidation procedures against 342
companies in Hungary's construction sector in May, up 9.9% year-
on-year.  According to the report, the number of liquidation
procedures initiated in May rose 8.7% year-on-year throughout all
sectors of Hungary's economy.

The number of liquidations in the construction sector rose 12%
year-on-year in the first five months of the year, the report
notes.  Voluntary liquidation procedures in the construction
sector increased 51% year-on-year to 210 in May, compared to a
rise of 23.4% year-on-year in all sectors of the economy last
month, the report discloses.


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


ANGLO IRISH: Has Two Weeks to Reconsider Claim of Privilege
-----------------------------------------------------------
BreakingNews.ie reports that the High Court has given Anglo Irish
Bank two weeks to reconsider a claim of privilege over documents
seized as part of an investigation into the collapse of the bank.

BreakingNews.ie relates Mr. Justice Peter Kelly asked the
nationalized lender to consider its position as it was impeding
the probe by the Director of Corporate Enforcement.  The judge was
informed on Thursday that following his comments, the bank had
received a letter from the Minister for Finance asking it to
consider a number of issues and that this would require some time,
BreakingNews.ie notes.

As reported by the Troubled Company Reporter-Europe on May 31,
2010, The Irish Times reported that Paul Appleby, the Director for
Corporate Enforcement, said that the probe will be finished in
"months rather than years".  The Irish Times disclosed the Anglo
inquiry is the most complex conducted to date by the office, and
involves a number of matters including:

    * the provision by Anglo in 2008 of financial assistance for
      the purchase of its shares;

    * matters associated with the loans made by Anglo to its
      directors over a number of years, and

    * matters relating to the declared level of customer deposits
      at Anglo in 2008.

Anglo Irish Bank Corp PLC -- http://www.angloirishbank.com/--
operates in three core areas: business lending, treasury and
private banking.  The Bank's non-retail business is made up of
more than 11,000 commercial depositors spanning commercial
entities, charities, public sector bodies, pension funds, credit
unions and other non-bank financial institutions.  The Company's
retail deposits comprise demand, notice and fixed term deposit
accounts from personal savers with maturities of up to two years.
Non-retail deposits are sourced from commercial entities,
charities, public sector bodies, pension funds, credit unions and
other non-bank financial institutions.  In addition, at September
30, 2008, its non-retail deposits included deposits from Irish
Life Assurance plc.  The Private Bank offers tailored products and
solutions for high net worth clients and operates the Bank's
lending business in Ireland and the United Kingdom.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on April 7,
2010, Fitch Ratings affirmed Anglo Irish Bank Corporation's lower
Tier 2 subordinated debt downgraded to 'CCC' from 'BBB+'.  Fitch
affirmed the rating on the bank's Upper Tier 2 subordinated notes
at 'CC'.  It also affirmed the rating on the bank's Tier 1 notes
at 'C'.


ANGLO IRISH: Agreed to Balance Sheet Transactions with Banks
------------------------------------------------------------
Simon Carswell at The Irish Times reports that Anglo Irish Bank
agreed to a short-term reciprocal transaction with U.K. bank Royal
Bank of Scotland in the turbulent run-up to the end of the bank's
half-year in March 2008 to make the bank's balance sheet look
healthier.

According to the report, an internal memo prepared by Anglo
shortly after its nationalization in January 2009 says the bank
agreed to "balance sheet management transactions" with Irish Life
Permanent, RBS, Merrill Lynch, German bank Hypo and U.S. insurance
giant AIG.  According to the report, the memo says that Anglo
provided "reciprocal arrangements" with these counterparties.

Anglo completed the transaction with the global banking and
markets division of RBS in London in March 2008 with the approval
of the Financial Regulator, the report states.  The sum is
believed to have been less than EUR1 billion, the report
discloses.

Anglo Irish Bank Corp PLC -- http://www.angloirishbank.com/--
operates in three core areas: business lending, treasury and
private banking.  The Bank's non-retail business is made up of
more than 11,000 commercial depositors spanning commercial
entities, charities, public sector bodies, pension funds, credit
unions and other non-bank financial institutions.  The Company's
retail deposits comprise demand, notice and fixed term deposit
accounts from personal savers with maturities of up to two years.
Non-retail deposits are sourced from commercial entities,
charities, public sector bodies, pension funds, credit unions and
other non-bank financial institutions.  In addition, at September
30, 2008, its non-retail deposits included deposits from Irish
Life Assurance plc.  The Private Bank offers tailored products and
solutions for high net worth clients and operates the Bank's
lending business in Ireland and the United Kingdom.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on April 7,
2010, Fitch Ratings affirmed Anglo Irish Bank Corporation's lower
Tier 2 subordinated debt downgraded to 'CCC' from 'BBB+'.  Fitch
affirmed the rating on the bank's Upper Tier 2 subordinated notes
at 'CC'.  It also affirmed the rating on the bank's Tier 1 notes
at 'C'.


ARGON CAPITAL: Fitch Lowers Ratings on Series 63 Notes to 'D'
-------------------------------------------------------------
Fitch Ratings has downgraded Argon Capital Plc Series 63's note:

  -- Argon Capital Plc Series 63's note (ISIN: XS0264207092):
     downgraded to 'D' from 'C'

Following the valuation of the credit events in the portfolio, the
cumulative portfolio loss amount is EUR38,853,896.29.  This loss
amount exceeds the credit enhancement of the notes, which was set
at EUR25,000,000, and the combined credit enhancement and tranche
thickness amount of EUR34,000,000.

As a consequence, the charged asset has been liquidated and the
Series 63 note has been fully written down, resulting in Fitch's
downgrade of the note.

The Argon Capital Series 63 synthetic CDO references a
substitutable portfolio of asset-backed securities obligations
with a maximum notional amount of EUR1 billion.  At closing, the
proceeds from the issuance of the notes were used to collateralize
a credit default swap between the issuer and Merrill Lynch
International, the CDS counterparty (guaranteed by Merrill Lynch &
Co., Inc., rated 'A+'/Outlook Stable/'F1+').


DUNCANNON CRE: Partial Repurchase Won't Affect Fitch's Ratings
--------------------------------------------------------------
Fitch Ratings said that the recently proposed partial repurchase
of Duncannon CRE CDO I PLC's class A notes will not in itself
impact the rating of the notes.

The notes are rated:

  -- EUR5,416,667 class X: 'B'; Outlook Negative

  -- EUR226,961,181 class A: 'B-'; Outlook Negative; Loss Severity
     Rating 'LS-3'

  -- EUR96,872,680 class RCF: 'B-'; Outlook Negative; 'LS-4'

  -- EUR40m class B: 'CCC'

  -- EUR40,352,437 class C-1: 'CC'

  -- EUR20,201,615 class C-2: 'CC'

  -- EUR20,552,634 class D-1: 'C'

  -- EUR20,583,866 class D-2: 'C'

  -- EUR20,635,999 class D-3: 'C'

  -- EUR20,950,880 class E-1: 'C'

  -- EUR21,003,709 class E-2: 'C'

As per Condition 7 (h) of the Duncannon CRE CDO I PLC Prospectus,
the issuer may at any time, at the direction of the portfolio
manager, purchase senior or mezzanine notes in the open market or
in privately negotiated transactions, at a price not exceeding 100
per cent.  Under the proposed buyback, the repurchase of EUR30.89
million of the class A notes will be undertaken at a discounted
purchase price.  The EUR30.89 million class A notes repurchased
will subsequently be cancelled, thereby increasing the available
credit enhancement to all rated notes.  The proposed buyback
follows earlier buybacks of class A notes in 2009 and 2010.

The repurchase will be funded using cash available in the
principal collection account.  As of June 2010, approximately
EUR22.6 million is available in the principal collection account.
Generally, proceeds in the principal collection account can be
used by the portfolio manager to invest in new portfolio assets,
limited by the eligibility criteria, or they may be distributed to
noteholders, if no investment opportunity exists.  Due to the
funding of the proposed repurchase of the class A notes, the
amount of principal proceeds available for immediate distribution
to the remaining noteholders will be lower.  At the same time,
noteholders will benefit from an increase in credit enhancement
due to the relative increase of assets compared to liabilities in
the structure.

Currently the senior, second senior and mezzanine par value tests
are breaching their limits.  Fitch notes that all par value ratios
will improve as a result of the repurchase.  Consequently, the
amount of interest required to be diverted on future payment dates
to the senior notes to cure the par value tests may be reduced.


RESIDENCE CLUB: Judge Cuts Interim Examiner Fees by 16%
-------------------------------------------------------
Mary Carolan at The Irish Times reports that the High Court's
Mr. Justice Peter Kelly has imposed a 16% cut on fees for Jim
Stafford of Friel Stafford Corporate Recovery, the interim
examiner of the Residence private members club.

According to The Irish Times, Mr. Stafford had sought fees based
on an hourly charge of EUR425 for himself, and EUR210, EUR185,
EUR150 and EUR100 per hour for other members of his staff.  He
sought approval of total costs of EUR111,000, made up of EUR62,000
examinership costs and expenses and EUR50,000 legal costs, The
Irish Times discloses.

The Irish Times relates Mr. Justice Kelly on Thursday ruled the
hourly charges were too high in the current economic climate and
in circumstances where many professionals had suffered cuts of up
to one-third in their income.  He also ruled Mr. Stafford and his
team had, "for the best of motives", including concerns the
Residence management did not properly understand or operate their
business, carried out work in excess of powers granted by the
court, The Irish Times discloses.

The Irish Times says the judge calculated at least 15% of the time
worked was spent on fulfilling a role beyond the terms of the
court order and Mr. Stafford was therefore only entitled to
payment for 51 of the 60 hours he actually worked.  Hours worked
by his team were also reduced by 15%, The Irish Times notes.

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

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


CARRICKMINES GREEN: Sold First Tranche of Apartments
----------------------------------------------------
The Irish Times reports that the first tranche of the nearly 50
apartments of Carrickmines Green put up for sale on the
instruction of receivers were sold quickly.

According to the report, the prices -- EUR135,000 for a one-bed
unit attracted a crowd -- with more than 2,000 people visiting the
site.  The apartments had been mothballed for nearly two years,
while the developer went out of business, the report notes.

The report relates selling agents HT Meagher O'Reilly were able to
pluck another unsold batch of apartments out of the development,
and in total 82 deposits were taken in the end.

As reported by the Troubled Company Reporter-Europe, The Irish
Times said Carrickmines Green, an apartment scheme in south County
Dublin, was put up for sale by Anglo Irish Bank on June 10.  The
Irish Times disclosed Carrickmines Green hit the headlines last
year when early buyers lost their deposits after developer Laragan
went into examinership.

Carrickmines Green is located at exit 15 of the M50, beside
Carrickmines Retail Park, and close to the Luas Green Line,
according to The Irish Times.


CEDAR GROVE: 15 Apartment Units Sold by DNG
-------------------------------------------
The Irish Times reports that Douglas Newman Good New Homes sold
15 of the 18 Cedar Grove units put up for sale on the instruction
of receivers.

The units were priced from EUR275,000, the report notes.

As reported by the Troubled Company Reporter-Europe, the Irish
Times said the units were put for sale on June 10.  Cedar Grove is
an apartment scheme located at Firhouse Road.  It was completed in
2007.  The scheme was being offered at discounted prices by its
receivers, according to the Irish Times.


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


LUCCHINI SPA: Moody's Downgrades Corporate Family Rating to 'B3'
----------------------------------------------------------------
Moody's Investors Service has downgraded the Corporate Family
Rating for Lucchini S.p.A. from B1 to B3, the outlook was moved to
negative.

The rating action was triggered by the unfavorable performance of
the company in 2009, the continuation in 2010 of a challenging
environment for a lowly vertically integrated steel producer --
even if materially improved versus 2009 -- and the uncertainties
associated with its future capital structure as the company is
currently being held by its owner Severstal (Ba3, negative) as an
assets for sale with possible disposal over the next few quarters.
At the same time the rating continues to recognize the business
positions of the company as one of the largest European producer
of specialty quality long products, its disciplined financial
management during the 2009 crisis and its good cash position.

In Moody's view the potential disposal by its 100 %-owner comes at
a point when the company still has to recover from a very
difficult 2009 year for the industry.  In that context the current
financial performance of the company does not support a B1 rating.
The 2009 financial results indicate the fact that the company
operated below break-even level with negative EBITDA generation
and Moody's comments that the existing cost structure of the
company and the recent volatility in raw materials may challenge
and possible delay the recovery plans of the company.  Volumes are
expected to improve significantly in 2010 but pressure is likely
to remain on operating profitability with credit metrics not
expected to recover before some time.  Though Moody's recognizes
that the company has some material cash at hand, the recent
financial performance characterized by negative free cash flow --
if not corrected over time -- could dent the accumulated cash in
the next few quarters unless the company strengthen its capital
base or raise new funds.  At the same time the agency anticipates
the banking group to remain supportive in the transition period.
Moody's further commented that the rating (as well as the outlook)
will be reassessed when the final owner and capital structure will
be determined.

The last rating action was on June 29, 2009, when Moody's
downgraded the Ba3 Corporate Family Rating for Lucchini to B1.
The outlook was left unchanged at stable.

Lucchini is Italy's second largest steel producer with an output
in 2009 of 1.6 million tons of steel down from 2.7 mt in 2008
including of 1.3 million tones of long and rolled products
(FYE08:2.1mt).  The company is one of the largest European
producers of special quality long products by volume of production
and has several plants and service centers throughout Europe,
primarily in Italy and France.

For the year ending 31 December 2009, the company's revenues and
Gross Margin from Operation (EBITDA) were EUR1.3 billion and
negative EUR140 million, respectively.

Severstal controls at this time 100% of Lucchini's shares.


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


FIETSFABRIEK: Declared Bankrupt; In Takeover Talks
--------------------------------------------------
Bike Europe reports that the Amsterdam 'FietsFabriek' (Bike
Factory) has been declared bankrupt.  The report relates owners
Yalcin Chihangir and Dave Deutsch applied for insolvency after the
company was burdened with huge debts.

Citing receiver De Vos & Partners, the report says FietsFabriek's
debts stood at more than EUR1 million.

"Our first priority is a new start," the report quoted a spokesman
for the receiver as saying.  "The settlement of the bankruptcy
will follow."  According to the report, the spokesman said there
are currently talks with 'some candidates' to take over the
company.  "It is important to re-start as soon as possible.  The
likelihood of this is real," the spokesman, as cited in the
report, said.

FietsFabriek is a bike manufacturer based in the Netherlands.  The
company employs 60 people.  It has yearly revenues of EUR3
million, according to Bike Europe.


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


INTERNATIONAL INDUSTRIAL: Moody's Cuts Deposit Rating to 'B3'
-------------------------------------------------------------
Moody's Investors Service has downgraded the deposit and debt
ratings of International Industrial Bank to B3 from B1.  IIB's
bank financial strength rating remains unchanged at E+, but it now
maps to a Baseline Credit Assessment of B3, down from B1.  All
ratings have been placed on review for possible further downgrade.

The rating actions have been driven by IIB's considerably weakened
liquidity profile, as the volume of liquid assets was on a
declining trend over recent months.  Liquid assets represented
less than 5% of total assets as of 1 June 2010 -- much lower
compared to the system average.  The rating actions also reflect
IIB's high dependence on market funding and on deposits from the
Central Bank of Russia.  Moody's notes that over 60% of funding is
coming due in the next three months.  The volume of liquid assets
currently held by the bank is reportedly insufficient to fulfill
these repayment obligations, and the rating agency expresses
concerns about whether the loan book will generate sufficient
cashflow to meet payments due given that the ability of IIB's
borrowers to repay their loans without refinancing remains
constrained by the still challenging credit conditions in Russia.

Moody's also notes that the bank's deposit base was historically
highly concentrated, raising concerns about the sustainability and
tolerance of the bank's clientele.  Going forward, without access
to refinancing facilities, the bank would need to cut its loan
book by up to 50% in three months, which would have a severe
effect on its franchise and earnings generation capacity.

Moody's will monitor the progress of the actual cash flow
performance of IIB's loan book together with its ability to
refinance its wholesale funding and decrease dependence on one
source facilities.  Proven ability to generate cash from the loan
book that matches its repayment schedule, accompanied with
decreased reliance on CBR funding, are likely to lead to
confirmation of the ratings.  Conversely, a failure to accumulate
sufficient liquidity to meet its obligations, and growing reliance
on CBR deposits -- and, thus, increase in refinancing risks --
could prompt Moody's to downgrade the bank's ratings, possibly by
more than one notch.

Moody's previous rating action on IIB was on 8 February 2010 when
the rating agency assigned B1 rating to the bank's senior
unsecured notes with a Negative outlook.

Headquartered in Moscow, Russia, IIB reported total unaudited IFRS
assets of RUB167 billion (US$5.5 billion) and net income of
RUB8.5 billion (US$281 million) as at 31 December 2009.


INTERNATIONAL INDUSTRIAL: Fitch Junks Issuer Default Rating
-----------------------------------------------------------
Fitch Ratings has downgraded Russia-based International Industrial
Bank's Long-term foreign and local currency Issuer Default Ratings
to 'CCC' from 'B', and maintained the ratings on Rating Watch
Negative.  A full rating breakdown is provided at the end of this
comment.

The downgrade reflects the absence of any resolution of the bank's
liquidity problems since Fitch placed the ratings on RWN on 9 June
2010, or the clarification of a coherent plan to strengthen
liquidity ahead of the bank's upcoming debt repayments including
the EUR200 million (RUB7.2 billion) EURobond repayment due on
6 July 2010.  The downgrade also considers the reportedly stricter
position of the Central Bank of Russia, which may consider not
rolling over existing unsecured loans to IIB.  The latter amounted
to RUB32 billion, or 32% of IIB's liabilities, at 9 June 2010,
comprising several tranches maturing in June-August 2010.

Liquid assets (cash and the net short-term interbank position)
comprised a small 6% of liabilities, or RUB6.2 billion, as at
9 June 2010 (the latest balance sheet available to Fitch).  That
represented a slight improvement compared to end-May 2010 (when
liquid assets comprised 3% of liabilities), but is still
significantly less than that required to service near-term
obligations, and does not take account of any funding outflows
which the bank could have faced in recent days.  This implies that
IIB may not be able to honor its maturing obligations without
external support (e.g. from its shareholder), given the apparently
low cash generation from the loan book.

Fitch will continue to review IIB's liquidity position over the
coming weeks.  IIB's ratings could be downgraded further if a
default on the bank's upcoming EURobond and/or Central Bank
facilities appears unavoidable.  However, if the bank receives
support from its shareholder or from other sources, and meets
near-term obligations, its ratings could be affirmed at their
current levels.

At end-Q110, IIB was the 28th-largest bank in Russia by total
assets.  Sergey Pugachev, a member of the upper house of the
Russian Parliament, controls an 81% stake.  Fitch placed IIB's
ratings on Rating Watch Negative on 9 June 2010, reflecting the
bank's weak liquidity position ahead of upcoming debt repayments.

The rating actions are:

  -- Long-term foreign currency IDR: downgraded to 'CCC' from 'B',
     maintained on Rating Watch Negative

  -- Long-term local currency IDR: downgraded to 'CCC' from 'B';
     maintained on RWN

  -- Senior unsecured debt: downgraded to 'CCC' from 'B';
     maintained on RWN; Recovery Rating 'RR4'

  -- Short-term foreign currency IDR: downgraded to 'C' from 'B';
     removed from RWN

  -- Individual Rating: downgraded to 'E' from 'D', removed from
     RWN

  -- Support Rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

  -- National Long-term Rating: downgraded to 'CCC(rus)' from
     'BBB(rus)'; maintained on RWN


SOUTHERN TELECOM: S&P Puts B Rating on Developing Watch
-------------------------------------------------------
Standard & Poor's Ratings Services said that it had placed its
global scale 'B' long-term corporate credit and 'ruA-' Russia
national scale ratings on Russian telecoms operator Southern
Telecommunications Co. (OJSC) on CreditWatch with developing
implications.

The CreditWatch placement reflects the uncertainties triggered by
the company's decision to reorganize in order to be merged into
OJSC Rostelecom (BB/Stable/--).

"S&P is particularly concerned about the potential impact of
reorganization on the company's liquidity position which, if it
deteriorates, could put downward pressure on the ratings," said
Standard & Poor's credit analyst Alexander GriazNov.  "At the
same, S&P would view as positive for the ratings a merger of STC
into the larger Rostelecom entity, assuming the absence of any
technical or actual liquidity concerns coming out of the
reorganization process."

On June 16, 2010, the company's annual shareholders meeting
approved STC's reorganization for merger into Rostelecom.  This
transaction is part of the restructuring of state-owned telecoms
holding company Svyazinvest OJSC and must also be approved by
Rostelecom's shareholders.  In compliance with Russian
legislation, all of STC's debt holders have the legal right to
claim from the company early repayment of their debt in court.

Although S&P has reasons to believe that most debt holders will
waive this right, as their STC debt will be swapped into debt of
Rostelecom -- a company S&P considers to be a stronger entity --
the amount of these potential claims remains an uncertainty.  In
addition, STC shareholders opposing the reorganization have the
right to sell their stock to the company.  Although the latter
right is limited to 10% of the company's net assets, it
potentially creates additional pressure on STC's liquidity
position.

The ratings on STC are constrained by the company's persistent
exposure to liquidity risk, high financial leverage, and limited
revenue diversity.  Uncertainties related to reorganization of the
company's parent company, Svyazinvest, act as an additional
ratings constraint.

The ratings are supported by STC's resilient market share (more
than 80% of the fixed-line market), its resilient cash flow, and
improving network capabilities.

S&P expects to resolve the CreditWatch placement within the next
three months.  S&P will analyze the impact of the reorganization
on STC's liquidity position.  S&P will compare the total amount of
financial claims on STC from debtholders and shareholders with the
available liquidity resources.

"Based on this information, S&P could affirm, lower, or raise the
ratings," said Mr. Griaznov.


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


NAFTOGAZ UKRAINY: Limits Gas Supply to Companies with Arrears
-------------------------------------------------------------
Kateryna Choursina at Bloomberg News reports that NAK Naftogaz
Ukrainy, Ukraine's state energy company, is limiting natural gas
supplies to industrial companies with "significant" arrears on
their energy bills.

"Constantly increasing debt to Naftogaz by consumers makes it
impossible for the company to pay for gas imports," Bloomberg
quoted Naftogaz as saying in e-mailed statement on June 10.

According to Bloomberg, the company said debt of industrial
companies for 2008, 2009 and for four months this year totals
UAH4.9 billion (US$619 million).

Bloomberg relates Naftogaz said it plans "severe measures" for
companies which do not pay arrears.

As reported by the Troubled Company Reporter-Europe, Bloomberg
News said Naftogaz was forced to reschedule payments on US$500
million of loan participation notes and US$1.15 billion of
outstanding loans last year after running out of cash as prices of
Russian imported gas jumped.  Bloomberg disclosed Russia, which
supplies almost 50% of Ukraine's energy needs, agreed on April 21
to cut the price by 30% this year.

                 About NJSC Naftogaz of Ukraine

Headquartered in Kiev, Ukraine, NJSC Naftogaz of Ukraine --
http://www.naftogaz.com/-- is a vertically integrated oil and gas
company engaged in full cycle of operations in gas and oil field
exploration and development, production and exploratory drilling,
gas and oil transport and storage, supply of natural gas and LPG
to consumers.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on Nov. 18,
2009, Fitch Ratings affirmed NJSC Naftogaz of Ukraine's long-term
foreign currency and local currency issuer default ratings at
'CCC'.  Fitch said the outlook is negative.


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


AVEBURY FINANCE: S&P Affirms D Ratings on Three Classes of Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its credit ratings on
Avebury Finance CDO PLC's class X, A-2, B, C, D, and E notes.  At
the same time, S&P withdrew its rating on the class A-1A notes.

S&P has affirmed the 'D' ratings on the class X, A-2, and B notes
as S&P believes interest payments on these notes could again be
missed in the future.

Avebury has refinanced the class A-1A notes through the issuance
of class A-1B notes.  As a consequence, S&P has withdrawn its
rating on the class A-1A notes.

On the Oct. 8, 2009 payment date all classes of notes missed their
interest payments.  However, at that time S&P did not default the
ratings on the class C, D, and E notes because these notes can
defer interest payments until final maturity.  Instead, S&P
affirmed its ratings on these classes at 'CC' and, for this same
reason, S&P is again affirming these ratings.

Avebury is a cash flow collateralized debt obligation that
securitizes a portfolio of primarily U.S. residential mortgage-
backed securities and CDO assets.  KBC Financial Products UK Ltd.
manages the transaction, which closed in June 2006.

                           Ratings List

                         Ratings Affirmed

                        Class      Rating
                        -----      ------
                        X          D
                        A-2        D
                        B          D
                        C          CC
                        D          CC
                        E          CC

                         Rating Withdrawn

                                   Rating
                                   ------
                   Class       To          From
                   -----       --          ----
                   A-1A rev   NR         D

                         NR - Not rated.


BOUDICHE: June 24 Deadline Set for Bids; Gets 20 Inquiries
----------------------------------------------------------
Due to considerable interest in Boudiche, the luxury lingerie
business that went into administration on Friday, June 11, the
joint administrators have set a deadline for offers at 5:00 p.m.
on Thursday, June 24.

RSM Tenon has already received around 20 inquiries from a variety
of sources, including local entrepreneurs and businesses already
operating within the retail and lingerie trades.

Boudiche was placed in administration by the company's directors
as a result of cash flow problems stemming from the downturn in
consumer spending.

Despite the recent trading difficulties, Boudiche had grown
quickly since launch into a high profile brand in the luxury
lingerie market.  The online business in particular was trading
well and the company was selling to over 50 countries.  Given the
potential of the business, RSM Tenon is urging interested parties
to come forward quickly.

Commenting, joint administrator Tom MacLennan said: "The level of
interest is very encouraging and reflects our view that the
administration presents an excellent opportunity to acquire the
brand and assets of a highly regarded business, and to take it
forward to the next level of development."

Interested parties can contact RSM Tenon's Edinburgh office on
0131-221-8820.


CDC LEISURE: In Administration; KPMG Appointed
----------------------------------------------
BBC News reports that John Hansen of KPMG was appointed
administrator of pub chains CDC Leisure Ltd. and Tarwood Ltd. on
June 15.  According to the report, the business includes Auntie
Annies, Katy Dalys, The Limelight and The Spring & Airbrake.

The report relates the administrator said the venues in Belfast
would continue to trade as normal while "we assess all potential
future options".

The report recalls rumors over the future of CDC Leisure began in
January when a winding-up petition was filed against it, but the
matter never went to court.


COVE BAY: Guy Craig Acquires Business; 34 Jobs Secured
------------------------------------------------------
The future of one of the North East's landmark hotels, The Cove
Bay Hotel, has been secured after local hotelier, Guy Craig,
acquired the business from administrators RSM Tenon for an
undisclosed sum.

The sale, which was managed by Christie + Co., will also secure 34
full and part-time jobs at the hotel.  Mr. Craig, who previously
owned the award-winning Udny Arms Hotel in Newburgh,
Aberdeenshire, plans a major refurbishment of the 14 room
Victorian building.

The Cove Bay Hotel had been in administration for almost a year
during which time the administrators and selling agents undertook
an extensive marketing campaign to find a buyer.  The hotel is
located in the heart of the village of Cove Bay, a fast-growing
suburb on the South East edge of Aberdeen.

Kenny Craig, Director of Recovery with RSM Tenon, said, "We are
delighted the hotel has been sold to Guy, who has exciting plans
to revitalize the business.  The local community will also be
delighted with the news."

Ken Sims, Director at Christie + Co., who dealt with the sale,
said, "This is an excellent business which was affected by the
administration of the parent company Dark Star.  There was
significant interest in this business and we are pleased that an
experienced operator such as Guy will now build on what was
already a sound and profitable business."


ETON GROUP: KPMG Appointed as Administrators
--------------------------------------------
Jane Moriarty and Allan Graham at KPMG were appointed joint
administrators to the Eton Group Ltd., Academy Town House Hotel
Ltd., Colonnade Town House Hotel Ltd., Threadneedle Town House
Hotel Ltd., Quebec Town House Hotel Ltd and The Glasshouse Hotel
Ltd., on June 16, 2010.

The companies comprise five luxury boutique hotels, which form
part of the Eton Collection.

    * The Academy, based in Bloomsbury in London;

    * The Colonnade, based in Little Venice in London, including
ebar restaurant;

    * Threadneedles Hotel, based in the City of London, including
Bonds restaurant;

    * The Glasshouse, in Edinburgh;

    * Quebecs, in Leeds.

Two other hotels in the Eton Collection -- 42 The Calls in Leeds
and the Scotsman, including Northbridge restaurant, in Edinburgh
-- are not within the parameters of the administration.

No redundancies have been made on appointment.

Jane Moriarty, joint administrator and restructuring partner at
KPMG, commented: "We are continuing to trade the business while we
assess the position of the hotels.  Historically, however, the
hotels have traded successfully and are well regarded at the
luxury end of the market so we are hopeful of securing a
successful resolution to this situation."

The group employs approximately 250 staff.

Creditors should contact Amy Waldron at KPMG on 020-7694-1067.

Parties interested in the sale of business should contact David
Davidson at KPMG on 020-7311-8425.


LAISHLEY LTD: In Administration; Owes Up to GBP12 Million
---------------------------------------------------------
Rachel Constantine at Business Sale reports that Laishley Ltd. has
gone into administration, owing creditors up to GBP12 million.

The report relates Laishley had been issued with a winding-up
order from its creditors.  The administrators at Vantis have made
the workforce redundant, the report notes.

According to the report, administrator Frank Wessely said mounting
problems at the company included the loss of a contract, which led
to poor cashflow; while severe weather conditions in December last
year and January this year caused crippling periods of inactivity
meaning time and cost overruns.  The influx of new orders has also
been hit by the recession, the report states.

The most recent accounts for the firm published for 2007, reveal a
loss of GBP279,000 on revenues of GBP8.5 million, the report
discloses.

Patrick Gower at Construction News reports that the administrators
do not expect to sell the business.

Established in 1985, Laishley Ltd. is a construction firm based in
Hampshire.


LLOYDS BANKING: Mulls Stock-Market Flotation for 600 Branches
-------------------------------------------------------------
Ben Marlow and Iain Dey at The Irish Times report that the Lloyds
Banking Group is working on plans for a stock-market flotation of
the chain of 600 branches it is being forced to sell by the
European Commission.

According to the report, the float would create a new British bank
with 5% of the retail banking sector and an estimated market value
of between GBP3 billion and GBP4 billion.

Lloyds, 42% owned by taxpayers, has been given four years to sell
the business, which it was ordered to divest as the price for
receiving state aid at the peak of the financial crisis, the
report notes.  The report says fears have been mounting that it
will struggle to find a buyer.  Lloyds is now examining the float
as a back-up plan, the report states.  Advisers at UBS and Merrill
Lynch are working on the potential listing, codenamed Project
Verdi, the report relates.

Under the plan, Lloyds would fund the new company until it was
strong enough to support itself, the report discloses.  The
package of businesses up for sale includes former TSB branches in
Scotland, large parts of its Cheltenham & Gloucester network, its
internet bank, Intelligent Finance, and GBP65 billion of customer
mortgages, the report discloses.

                  About Lloyds Banking Group PLC

Lloyds Banking Group PLC, formerly Lloyds TSB Group plc,
(LON:LLOY) -- http://www.lloydsbankinggroup.com/-- is a United
Kingdom-based financial services group providing a range of
banking and financial services, primarily in the United Kingdom,
to personal and corporate customers.  The Company operates in
three divisions: UK Retail Banking, Insurance and Investments, and
Wholesale and International Banking.  Its main business activities
are retail, commercial and corporate banking, general insurance,
and life, pensions and investment provision.  The Company also
operates an international banking business with a global footprint
in 40 countries.  Services are offered through a number of brands,
including Lloyds TSB, Halifax, Bank of Scotland, Scottish Widows,
Clerical Medical and Cheltenham & Gloucester.  On January 16,
2009, Lloyds Banking Group plc acquired HBOS plc.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on March 17,
2010, Standard & Poor's Ratings Services said that it lowered its
rating on a GBP56.472 million 6.475% preference share issue by
Lloyds Banking Group (A/Stable/A-1) to 'C' from 'CC' following the
first missed coupon payment.  The counterparty credit ratings on
Lloyds are unaffected by this action.  The rating action is the
first of S&P's forthcoming rating actions on over 40 hybrid
instruments issued by Lloyds and related entities with
discretionary coupon payments.  Each security will be lowered to
'C' from 'CC' on the date of the first coupon payment to be
missed.


ORACLE GROUP: Four Companies Put Into Liquidation
-------------------------------------------------
Deirdre Hipwell at PropertyWeek.com reports that four companies
controlled by Oracle Group have gone into liquidation as part of
ongoing restructuring of the company.

The report relates insolvency and restructuring adviser MCR was
appointed liquidator to four companies -- Oracle Group, Oracle
Epsom, Oracle Residential and Hillstone -- on June 7.  According
to the report, MCR partner Paul Clarke was put in charge if the
liquidation by the directors of Oracle Group after creditors
ratified the decision.

The report says it is thought the decision to appoint MCR to
liquidate the companies was taken to streamline the Oracle
business and reduce audit costs and other subsidiary company
administration costs.

Like other many residential development companies, Oracle Group
has been affected by the downturn, the lack of available finance
and the fall in house prices and development land values, the
report notes.

Oracle Group is a residential developer founded by David Burke.


PILKINGTON'S GROUP: In Administration; KPMG Appointed
-----------------------------------------------------
Paul Flint and Brian Green from KPMG Restructuring in Manchester
have been appointed as joint administrators of Pilkington's Group
plc, the leading manufacturer and distributor of wall and floor
tiles.

In addition, Messrs. Flint and Green have been appointed joint
administrators to Pilkington's Tiles (Ireland) Limited,
Pilkington's Tiles Limited and Quiligotti Access Flooring Limited.

Pilkington's Group plc, which employs 380 people, is headquartered
in Swinton, Greater Manchester.  The company also has a site in
Poole, Dorset, which includes a quarry with the capacity for
350,000 tons of heavy clay which is used in the manufacture of
vitrified floor tiles.  It also has a showroom and factory shop in
Audenshaw, Tameside, and a facility in Swords, Dublin.

There have been no immediate staff redundancies while the
administrators assess the position of the company.

Mr. Flint, joint administrator and associate partner at KPMG
Restructuring, commented, "Pilkington's Group has suffered intense
cash flow pressures as a result of recent adverse trading
conditions.  Indeed, it's no coincidence that the latest BRC-KPMG
Retail Sales Monitor indicated that furniture and floor coverings
were the worst-performing sectors within retail, highlighting the
reluctance of consumers to commit to big-ticket purchases while
uncertainty over the future looms."

He added, "We intend to trade the Pilkington's Group business
while we seek purchaser for the company and its assets, and would
encourage any interested parties to contact us as soon as
possible."


PORTSMOUTH: To Exit Administration After Creditors Back CVA Deal
----------------------------------------------------------------
Matt Slater at BBC Sport reports that Portsmouth Football Club is
expected to exit administration this summer after its creditors
voted in favor of a company voluntary arrangement.

According to the report, Pompey's proposed CVA got 81.3% of the
vote.

The report says the administrator will now press on with the plan
to repay creditors at least 20p in the pound over five years.
Unsecured creditors of the club are owed a total of GBP105
million, the report notes.

The report relates HM Revenue and Customs, which opposed the CVA,
has 28 days to appeal against the decision.

"HMRC notes that the result of [Thurs]day's vote was to accept the
CVA proposals.  We will now be carefully considering our
position," the repot quoted the HMRC as saying.  "HMRC stands by
the full amount of its claim (GBP37 million).  We will now
carefully consider our position following (the administrator's)
decision to reduce the amount of our claim for voting purposes."

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

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


ROYAL BANK: JPMorgan Gets EU Approval for Sempra Unit Purchase
--------------------------------------------------------------
Reuters reports that the European Commission has cleared
JPMorgan's US$1.7 billion purchase of the non-U.S. assets of
commodities joint venture RBS Sempra from Royal Bank of Scotland
and Sempra Energy.

According to the report, JPMorgan, keen to expand its commodities
arm, will take the RBS Sempra global oil and metals and European
power and gas assets.

The report relates Sempra has said it may buy RBS's stake in the
U.S. operations of the joint venture, in which it holds a 49%
stake and RBS the remaining shares.

"The (European) Commission's examination of the deal showed that
the horizontal overlaps between the activities of JPMorgan and
those of Sempra are limited," the report quoted European Union
executive as saying in a statement.

The report notes part-nationalized RBS is selling off assets in
return for EU regulatory approval for state aid received during
the financial crisis.

                            About RBS

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

                           *     *     *

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


STUDIOSMART LTD: In Administration; RSM Tenon Seeks Buyers
----------------------------------------------------------
A secured creditor of Studiosmart Limited, a manufacturer and
printer of polythene and paper bags, appointed Andy Pear and Ian
Cadlock of RSM Tenon as Joint Administrators of the Company on
June 8, 2010.

Based in Ebbw Vale, South Wales, Studiosmart Limited is a major
supplier of carrier bags to blue chip retail and communications
clients, such as Guinness, T-Mobile, Pedigree Chum and Sky.  It is
unique within the sector for its ability to sell its products
directly to customers (rather than relying on third parties) and
has a specialist account management team to ensure that individual
requirements, such as needing carrier bags to promote a particular
offer or sale, can be met quickly.

The Company, which has an annual turnover of GBP5.4 million, will
continue to trade under the Administrators while a buyer is found
for the business and its assets.

Mr. Pear, Recovery Director of RSM Tenon, said, "While some
industry sectors are returning to pre-crunch levels, the effects
of the recession are being acutely felt in others.  Businesses in
the marketing, consulting, printing and packaging sectors have
been particularly poorly affected as clients tighten their belts
and reduce marketing expenditure."

"Studiosmart Limited has a track record of providing outstanding
service to some of the country's leading retailers.  We are
continuing to trade the business as normal while new investment is
sought and we urge anyone who is interested to get in contact."


WHITE TOWER: Fitch Affirms 'C' Ratings on Two Classes of Notes
--------------------------------------------------------------
Fitch Ratings has upgraded two tranches of White Tower 2006-3
plc's CMBS note classes, due 2012.  Fitch has simultaneously
placed the class A, B and C on Rating Watch Positive.  The rating
actions are:

  -- GBP632.1m class A (XS0275770914) upgraded to 'AA' from 'A';
     placed on RWP

  -- GBP171.5m class B (XS0275771649) upgraded to 'BB' from 'B';
     placed on RWP

  -- GBP116m class C (XS0275772704): 'CCC'; placed on RWP

  -- GBP116m class D (XS0275773181) affirmed at 'C'; Recovery
     Rating revised to 'RR4' from 'RR6'

  -- GBP68m class E (XS0275774072) affirmed at 'C'; Recovery
     Rating is 'RR6'

The upgrades reflect the announcement by special servicer CB
Richard Ellis Loan Servicing that two of the underlying properties
being marketed as individual assets have been exchanged for sale
at prices well in excess of both their June 2009 values and
Fitch's own estimate of value.  The RWP on the class A, B and C
notes indicates the prospect of an upgrade in the coming months if
the sale prices of the other assets currently for sale also exceed
Fitch's expectations.

Fitch considers CBRELS's sales strategy to be a positive for the
transaction as it allows sufficient time to achieve an orderly
sale of the assets before the legal final maturity of the bonds in
October 2012.  It also capitalizes on current investor interest in
prime London properties; this is especially expected to benefit
the Alban Gate property, which is considered prime in nature and
one of the strongest in the total portfolio with a lease to JP
Morgan Chase Bank until March 2025.

The remainder of the assets being marketed are included in a
GBP466m "Thames portfolio".  Fitch's key concern for the sale of
both this portfolio and the standalone Alban Gate property is the
large lot size.  Given the continued limited availability of
large-ticket bank funding for commercial property acquisitions, it
is uncertain whether prospective purchasers will be able to secure
funding for such significant amounts.  Should they not be able to
do so, the sales prices will be negatively impacted.  This was
less of a consideration for the two assets sold to date, which
traded at GBP60 million and GBP62 million, respectively.

While interest rates remain low the transaction and, in
particular, the class A notes will continue to benefit from the
significant excess cash that is being generated from the
properties, either via sale or rental income, and which is applied
sequentially to amortize the notes.  This is especially the case
for the Aviva Tower, which is currently not being marketed for
sale and will therefore continue to generate excess cash from
rental income even after the other properties are sold.


* UK: Disqualification Actions v. Insolvent Company Directors Up
----------------------------------------------------------------
Contractor UK reports that a growing number of directors of
insolvent companies are the target of disqualification proceedings
launched by HM Revenue & Customs.

According to the report, for failing to pay their company's taxes,
813 directors had proceedings brought against them in court by
HMRC, compared with 654 in the previous year.  That represents a
24% leap in disqualification actions, casting doubt on the
Revenue's claim that it is taking a more lenient approach to firms
with cash flow issues, the report notes.

"This is a huge increase in court proceedings against directors,"
the report quoted Philip White, chief executive of Syscap, a
financing company, which obtained the figures, as saying.

The report relates Mr. White said the figures were a "wake-up
call" for directors of limited companies with cash flow problems,
partly because the fragility of the UK's recovery might make them
expect a sympathetic response from HMRC.


* UK: Banks Face Further Write-downs, Moelis & Co. Warns
--------------------------------------------------------
Harry Wilson and Helia Ebrahimi at The Daily Telegraph report that
the amount of debt backed by European commercial real estate
requiring refinancing is expected more than double this year to in
excess of GBP4 billion, before rising to GBP12 billion next year
and nearly GBP20 billion by 2013.

According to the report, Matthew Prest, head of European
restructuring at US investment bank Moelis & Co., warns that many
lenders are "asleep at the wheel" and do not realize the problems
ahead for them.

"The bid/offer spreads are huge at the moment, so these are very
illiquid markets, but banks are not liking what they are seeing
when they try to find out what the price of these assets are," the
report quoted Mr. Prest as saying.

With so much debt coming up for repayment the worry, Mr. Prest, as
cited in the report, said banks could be forced into another round
of fire-sales and write downs that could damage their balance
sheets which have only recently begun to strengthen.


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


* BOND PRICING: For the Week June 14 to June 18, 2010
-----------------------------------------------------

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

AUSTRIA
-------
BA CREDITANSTALT      5.470  8/28/2013     EUR   69.38

BELGIUM
-------
FORTIS BANK           8.750  12/7/2010     EUR   14.42

FINLAND
-------
MUNI FINANCE PLC      0.500  9/24/2020     CAD   65.65
MUNI FINANCE PLC      0.500  3/17/2025     CAD   51.42
MUNI FINANCE PLC      0.250  6/28/2040     CAD   23.08
MUNI FINANCE PLC      1.000  2/27/2018     AUD   64.86
MUNI FINANCE PLC      1.000  6/30/2017     ZAR   66.68

FRANCE
------
AIR FRANCE-KLM        4.970   4/1/2015     EUR   14.01
ALCATEL SA            4.750   1/1/2011     EUR   16.27
ALCATEL-LUCENT        5.000   1/1/2015     EUR    3.17
ALTRAN TECHNOLOG      6.720   1/1/2015     EUR    4.74
ATOS ORIGIN SA        2.500   1/1/2016     EUR   51.44
CALYON                6.000  6/18/2047     EUR   49.43
CAP GEMINI SOGET      3.500   1/1/2014     EUR   44.31
CAP GEMINI SOGET      1.000   1/1/2012     EUR   44.99
CLUB MEDITERRANE      4.375  11/1/2010     EUR   49.32
EURAZEO               6.250  6/10/2014     EUR   54.45
FAURECIA              4.500   1/1/2015     EUR   20.20
GROUPE VIAL           2.500   1/1/2014     EUR   18.05
MAUREL ET PROM        7.125  7/31/2014     EUR   16.51
NEXANS SA             4.000   1/1/2016     EUR   63.34
PEUGEOT SA            4.450   1/1/2016     EUR   30.33
PUBLICIS GROUPE       1.000  1/18/2018     EUR   46.57
PUBLICIS GROUPE       3.125  7/30/2014     EUR   38.33
RHODIA SA             0.500   1/1/2014     EUR   44.20
SOC AIR FRANCE        2.750   4/1/2020     EUR   20.08
SOITEC                6.250   9/9/2014     EUR   10.07
TEM                   4.250   1/1/2015     EUR   54.62
THEOLIA               2.000   1/1/2014     EUR   13.01
VALEO                 2.375   1/1/2011     EUR   46.59
ZLOMREX INT FIN       8.500   2/1/2014     EUR   49.00
ZLOMREX INT FIN       8.500   2/1/2014     EUR   49.00

GERMANY
-------
DEUTSCHE BK LOND      3.000  5/18/2012     CHF   66.31
ESCADA AG             7.500   4/1/2012     EUR   17.02
EUROHYPO AG           5.000  5/15/2027     EUR   94.35
HSH NORDBANK AG       4.375  2/14/2017     EUR   67.02
HYPO REAL ESTATE      5.440  4/13/2034     EUR   70.40
L-BANK FOERDERBK      0.500  5/10/2027     CAD   46.37
LB BADEN-WUERTT       2.500  1/30/2034     EUR   74.16
QIMONDA FINANCE       6.750  3/22/2013     USD    2.38
RENTENBANK            1.000  3/29/2017     NZD   72.67
SOLON AG SOLAR        1.375  12/6/2012     EUR   41.63
VPV LEBENSVERSIC      7.250  8/17/2026     EUR   66.13

GREECE
------
HELLENIC RAILWAY      4.500  12/6/2016     JPY   65.90
HELLENIC REP I/L      2.900  7/25/2025     EUR   44.51
HELLENIC REP I/L      2.300  7/25/2030     EUR   48.27
HELLENIC REPUB        2.125   7/5/2013     CHF   73.70
HELLENIC REPUB        5.250   2/1/2016     JPY   74.42
HELLENIC REPUB        5.200  7/17/2034     EUR   64.30
HELLENIC REPUB        6.140  4/14/2028     EUR   73.44
HELLENIC REPUB        5.000  3/11/2019     EUR   68.75
HELLENIC REPUB        7.000  7/13/2020     EUR   65.03
HELLENIC REPUB        5.000  8/22/2016     JPY   70.27
HELLENIC REPUBLI      4.600  9/20/2040     EUR   51.75
HELLENIC REPUBLI      4.500  9/20/2037     EUR   51.54
HELLENIC REPUBLI      4.300  7/20/2017     EUR   72.73
HELLENIC REPUBLI      4.700  3/20/2024     EUR   61.92
HELLENIC REPUBLI      4.600  7/20/2018     EUR   72.95
HELLENIC REPUBLI      5.300  3/20/2026     EUR   62.38
HELLENIC REPUBLI      3.600  7/20/2016     EUR   73.55
NATIONAL BK GREE      3.875  10/7/2016     EUR   74.52
YIOULA GLASSWORK      9.000  12/1/2015     EUR   56.93
YIOULA GLASSWORK      9.000  12/1/2015     EUR   54.75

IRELAND
-------
ALLIED IRISH BKS      5.250  3/10/2025     GBP   62.80
DEPFA ACS BANK        5.125  3/16/2037     USD   70.00
DEPFA ACS BANK        4.900  8/24/2035     CAD   70.47
DEPFA ACS BANK        5.125  3/16/2037     USD   69.93
DEPFA ACS BANK        5.250  3/31/2025     CAD   74.93
DEPFA ACS BANK        0.500   3/3/2025     CAD   32.39
DEPFA ACS BANK        1.920   5/9/2020     JPY   71.80
IRISH NATIONWIDE     13.000  8/12/2016     GBP   81.79
IRISH PERM PLC        7.284  2/15/2035     EUR   66.13
ONO FINANCE II        8.000  5/16/2014     EUR   74.00
ONO FINANCE II        8.000  5/16/2014     EUR   76.00

ITALY
-----
UT2 FUNDING PLC       5.321  6/30/2016     EUR   69.39
BANCA INTESA SPA      6.984   2/7/2035     EUR   73.13
CITY OF TURIN         5.270  6/26/2038     EUR   71.07

LUXEMBOURG
----------
ARCELORMITTAL         7.250   4/1/2014     EUR   29.49
BREEZE FINANCE        4.524  4/19/2027     EUR   68.08
GLOBAL YATIRIM H      9.250  7/31/2012     USD   69.38
LIGHTHOUSE INTL       8.000  4/30/2014     EUR   59.36
LIGHTHOUSE INTL       8.000  4/30/2014     EUR   58.50

NETHERLANDS
-----------
AI FINANCE B.V.      10.875  7/15/2012     USD   73.50
APP INTL FINANCE     11.750  10/1/2005     USD    0.25
ARPENI PR INVEST      8.750   5/3/2013     USD   50.13
ARPENI PR INVEST      8.750   5/3/2013     USD   50.13
ASTANA FINANCE        7.875   6/8/2010     EUR   25.40
BK NED GEMEENTEN      0.500  6/27/2018     CAD   73.63
BK NED GEMEENTEN      0.500  2/24/2025     CAD   51.03
BLT FINANCE BV        7.500  5/15/2014     USD   68.13
BLT FINANCE BV        7.500  5/15/2014     USD   68.00
BRIT INSURANCE        6.625  12/9/2030     GBP   70.67
DGS INTL FIN BV      10.000   6/1/2007     USD    0.01
ELEC DE CAR FIN       8.500  4/10/2018     USD   51.88
EM.TV FINANCE BV      5.250   5/8/2013     EUR    5.44
FRIESLAND BANK        4.125   1/8/2016     EUR   43.43
IVG FINANCE BV        1.750  3/29/2017     EUR   67.94
NATL INVESTER BK     25.983   5/7/2029     EUR   47.20
NED WATERSCHAPBK      0.500  3/11/2025     CAD   50.14
Q-CELLS INTERNAT      1.375  2/28/2012     EUR   67.17
Q-CELLS INTERNAT      5.750  5/26/2014     EUR   64.52
RBS NV EX-ABN NV      3.355  1/13/2020     USD   75.00
TEMIR CAPITAL         9.500  5/21/2014     USD   33.00
TJIWI KIMIA FIN      13.250   8/1/2001     USD    0.01
TURANALEM FIN BV      7.875   6/2/2010     USD   44.13
TURANALEM FIN BV      8.000  3/24/2014     USD   50.22
TURANALEM FIN BV      8.000  3/24/2014     USD   45.00
TURANALEM FIN BV      7.750  4/25/2013     USD   44.99
TURANALEM FIN BV      8.250  1/22/2037     USD   46.57
TURANALEM FIN BV      6.250  9/27/2011     EUR   44.46
TURANALEM FIN BV      8.500  2/10/2015     USD   45.55

NORWAY
------
EKSPORTFINANS         0.500   5/9/2030     CAD   39.69
NORSKE SKOGIND        7.000  6/26/2017     EUR   64.11

POLAND
------
REP OF POLAND         2.648  3/29/2034     JPY   72.50

PORTUGAL
--------
PORTUGUESE OT'S       4.100  4/15/2037     EUR   75.32

RUSSIA
------
ACBK-INVEST           9.500  4/14/2011     RUB    4.00
AGROSOYUZ            17.000  3/28/2012     RUB    4.00
ALLIANCE FINANS       8.750  6/20/2012     RUB   29.99
APK ARKADA           17.500  5/23/2012     RUB    0.38
APK OGO              16.000   7/9/2010     RUB   35.00
ARKTEL-INVEST        12.000   4/9/2012     RUB    1.00
ATOMSTROYEXPORT-      7.750  5/24/2011     RUB    7.01
BALTINVESTBANK       11.000  4/26/2011     RUB   19.03
BANK OF MOSCOW        7.500   2/1/2013     RUB    3.10
BANK OF MOSCOW       10.640  7/29/2011     RUB    2.00
BANK SOYUZ            9.500  2/23/2011     RUB    5.00
BANK SOYUZ           16.000   5/2/2011     RUB    5.00
BARENTSEV FINANS     20.000   7/4/2011     RUB    2.02
CB STROYCREDIT       14.000   8/1/2011     RUB   26.01
CREDIT EUROPE BA     11.500  6/28/2011     RUB    4.00
DALUR-FINANS         14.000   2/5/2013     RUB    5.00
DERZHAVA-FINANS      16.500  7/27/2010     RUB    0.01
DOMOTSENTR           20.000   7/8/2010     RUB   23.01
DVTG-FINANS          14.500   8/3/2010     RUB   10.00
DVTG-FINANS          14.500  7/18/2013     RUB   12.00
DVTG-FINANS          17.000  8/29/2013     RUB   19.00
EESK                  8.740   4/5/2012     RUB   22.01
EMALIANS-FINANS      18.000   7/8/2011     RUB    3.00
ENERGOCENTRE         25.000  7/11/2010     RUB    3.00
ENERGOINVEST-200     11.000  7/21/2010     RUB    5.00
ENERGOSTROY-FINA     12.000  5/20/2011     RUB    3.01
EUROKOMMERZ          16.000  6/10/2010     RUB    1.22
EUROKOMMERZ          16.000  3/15/2011     RUB    0.01
EUROKOMMERZ          16.000  6/18/2010     RUB    1.53
FAR EASTERN GENE     10.500   3/8/2013     RUB   24.01
FINANCEBUSINESSG     10.000   7/5/2010     RUB    4.00
FORTUM OJSC           9.750   2/6/2013     RUB    4.00
GLOBEX-FINANS         0.100  4/26/2011     RUB    4.01
GRACE DIAMOND        15.000   6/7/2012     RUB    0.11
GRADOSTROY-INVES     11.000   3/3/2011     RUB    4.00
HCF BANK             12.200  6/10/2014     RUB    3.02
IART                 17.000   8/4/2013     RUB   25.00
IAZS                 11.000  12/8/2010     RUB    3.01
INPROM               13.000  7/15/2010     RUB   38.70
INPROM                9.500  5/18/2011     RUB   30.12
INTERGRAD            15.000   7/9/2014     RUB    4.00
INTL INDUST BANK     13.250   1/3/2018     RUB   33.00
IZHAVTO              18.000   6/9/2011     RUB   11.31
KARUSEL FINANS       12.000  9/12/2013     RUB    4.00
KOMOS GROUP          18.000  7/21/2011     RUB   22.01
KOSMOS-FINANS        10.200  6/16/2011     RUB   15.50
KRAYINVESTBANK       13.750   8/5/2011     RUB    4.00
KUBANSKAYA NIVA      15.500  2/20/2014     RUB    2.80
LADYA FINANS         13.750  9/13/2012     RUB    5.00
LEKSTROY              0.100  7/22/2011     RUB    6.01
LR-INVEST            13.750  7/17/2012     RUB    5.00
LSR-INVEST           17.000  7/14/2011     RUB   25.01
M-INDUSTRIYA         12.250  8/16/2011     RUB   34.00
M-INDUSTRIYA         16.000  7/10/2013     RUB    5.01
M.O.R.E.-PLAZA       15.500   8/3/2010     RUB    4.00
MACROMIR-FINANS      10.000   7/3/2012     RUB    2.00
MAGNOLIYA            19.000  7/22/2010     RUB    6.00
MDM BANK              9.000   4/9/2015     RUB    7.01
MEDVED-FINANS        16.500   9/1/2010     RUB    3.01
METROSTROY INVES     10.500  9/23/2011     RUB    8.01
MIA                  12.500  10/1/2015     RUB    5.01
MIA                   7.950  2/23/2012     RUB    5.02
MIA                  13.500  7/17/2014     RUB    5.01
MIG-FINANS            0.100   9/6/2011     RUB    3.00
MIRAX                14.990  5/17/2011     RUB   15.10
MIRAX                17.000  9/17/2012     RUB   30.00
MORTON-RSO           12.000  2/28/2011     RUB    5.00
MOSKOMMERTSBANK      12.000  2/15/2011     RUB    4.00
MOSKOMMERTSBANK       1.000  6/12/2013     RUB   15.41
MOSMART FINANS        0.010  4/12/2012     RUB    5.20
MOSOBLTRUSTINVES     20.000  3/26/2011     RUB    6.99
NATIONAL CAPITAL     12.500  5/20/2011     RUB    6.01
NATIONAL CAPITAL     13.000  9/25/2012     RUB    4.00
NATIONAL FACTORI     11.500   5/3/2011     RUB    5.00
NAUKA-SVYAZ          15.000  6/27/2013     RUB    4.00
NEW INVESTMENTS      14.000   7/7/2011     RUB    4.00
NOK                  17.000  8/26/2014     RUB    1.40
NOMOS-LEASING        12.000   7/8/2011     RUB    5.00
NOVOROSSIYSK         13.000  12/9/2011     RUB    3.01
NUTRINVESTHOLDIN     11.000  6/30/2014     RUB   15.20
OBYEDINEONNYE KO     15.000  4/17/2013     RUB    6.00
OBYEDINEONNYE KO      3.000  5/16/2012     RUB    4.01
OJSC FCB             11.000   8/7/2012     RUB    3.00
OSMO KAPITAL         10.200   3/7/2011     RUB    6.01
PEB LEASING          14.000  9/12/2014     RUB    5.00
PENSION FUND REA      5.000   5/7/2019     RUB    4.00
PROM TECH            16.000  4/25/2011     RUB    2.00
PROMNESTESERVICE      9.500  12/5/2014     RUB    2.01
PROMTRACTOR-FINA     18.000  7/24/2013     RUB   65.64
PROTEK-FINANS        12.000  11/2/2011     RUB   18.01
RAF-LEASING          12.500  2/21/2012     RUB    4.00
RAILTRANSAUTO        17.500  12/4/2013     RUB    4.00
RFA-INVEST           10.000  11/4/2011     RUB    5.00
RIATO                13.750   6/3/2013     RUB    7.01
RMK PARK PLAZA       10.000   1/8/2013     RUB   19.01
ROSSKAT-CAPITAL      18.000  7/21/2010     RUB    4.00
RUSSIAN RAILWAYS     13.500   7/8/2024     RUB    1.00
RUSSIAN STANDARD     14.750   9/9/2010     RUB    3.00
RUSSIAN STANDARD      7.800  9/20/2011     RUB    1.00
RYBINSKKABEL          0.010  2/28/2012     RUB    1.00
SATURN               10.000   6/6/2014     RUB    2.11
SENATOR              14.000  5/18/2012     RUB   17.01
SETL GROUP           11.700  5/15/2012     RUB   55.00
SEVKABEL-FINANS      10.500  3/27/2012     RUB    8.29
SIBACADEMINVEST      18.000  7/30/2010     RUB    5.01
SIBUR                10.470  11/1/2012     RUB    6.00
SIBUR                 9.000  3/13/2015     RUB    4.00
SIBUR                 9.000  3/13/2015     RUB    4.00
SIBUR                13.500  3/13/2015     RUB    4.00
SIBUR                 9.250  3/13/2015     RUB    4.00
SISTEMA-HALS          8.500  4/15/2014     RUB    5.00
SISTEMA-HALS          8.500   4/8/2014     RUB    6.00
SOUTHERN STOCK C     15.750  4/29/2014     RUB    2.00
STROYTRANSGAZ         8.500  4/11/2013     RUB   28.11
SVOBODNY SOKOL       18.000  5/24/2011     RUB   11.00
SVYAZ BANK           16.000  4/21/2011     RUB    2.00
TAIF-FINANS           8.420   9/9/2010     RUB    4.00
TALIO-PRINCEPS       16.000  5/17/2012     RUB    4.00
TECHNONICOL-FINA     17.000   3/7/2012     RUB   15.65
TECHNOSILA-INVES      7.000  5/26/2011     RUB   16.01
TERNA-FINANS          1.000  11/4/2011     RUB   10.01
TK FINANS            12.600   9/5/2011     RUB    6.00
TOP-KNIGA            20.000  12/9/2010     RUB   52.00
TRANSCREDITFACTO     12.000  6/11/2012     RUB    3.00
TRANSCREDITFACTO     12.000  11/1/2012     RUB    5.00
TRANSFIN-M           11.000  12/3/2015     RUB    5.01
TRANSFIN-M           10.750  8/10/2012     RUB    5.01
TRANSFIN-M           14.000  7/10/2014     RUB    5.00
TRANSFIN-M           11.000  12/3/2014     RUB    5.01
TRANSFIN-M           11.000  12/3/2014     RUB    5.01
TRANSFIN-M           11.000  12/3/2014     RUB    5.01
TRANSFIN-M           11.000  12/3/2014     RUB    5.01
TRANSFIN-M           11.000  12/3/2015     RUB    4.01
TRANSFIN-M           11.000  12/3/2015     RUB    4.01
TRANSFIN-M           11.000  12/3/2015     RUB    4.01
TRANSNEFT            11.750  10/1/2019     RUB    4.00
TVER VAGONOSTRO       7.000  6/12/2013     RUB    0.01
UNITED HEAVY MAC     13.000  8/30/2011     RUB   20.03
URALCHIMPLAST        12.750  1/21/2011     RUB    3.00
URALSVYAZINFORM       7.500   4/2/2013     RUB    6.01
UTK                   7.800  5/30/2012     RUB    2.85
VKM-LEASING FINA      1.000  5/18/2011     RUB    4.01
VLADPROMBANK         12.000   3/8/2011     RUB    1.00
VMK-FINANCE          16.000  5/21/2014     RUB    5.01
VOLGATELECOM         12.000   9/3/2013     RUB    0.01
VTB 24                7.350   2/5/2013     RUB    1.00
XM STROYRESURS       10.000  7/12/2011     RUB   23.01
YUGFINSERVICE        15.250  5/20/2014     RUB    4.01
ZAO EUROPLAN         14.500  8/11/2011     RUB    2.01
ZAPSIBCOMBANK        11.000  9/15/2011     RUB    4.00
ZHELEZOBETON         12.000  5/27/2011     RUB    4.01
ZHILSOTSIPOTEKA-      9.000  7/26/2011     RUB    5.00

SPAIN
-----
AYT CEDULAS CAJA      3.750  6/30/2025     EUR   74.04
BANCAJA EMI SA        2.755  5/11/2037     JPY   30.79
CEDULAS TDA 6         3.875  5/23/2025     EUR   76.11
CEDULAS TDA A-6       4.250  4/10/2031     EUR   73.69
JUNTA LA MANCHA       3.875  1/31/2036     EUR   72.94

SWITZERLAND
-----------
CYTOS BIOTECH         2.875  2/20/2012     CHF   71.50
UBS AG               13.300  5/23/2012     USD    3.46
UBS AG JERSEY         9.000  7/19/2010     USD   54.00
UBS AG JERSEY         9.350  7/27/2010     USD   54.50
UBS AG JERSEY         9.000  8/13/2010     USD   58.90
UBS AG JERSEY         9.500  8/31/2010     USD   60.90
UBS AG JERSEY         3.220  7/31/2012     EUR   51.72
UBS AG JERSEY         9.450  9/21/2011     USD   48.71
UBS AG JERSEY         9.350  9/21/2011     USD   66.32
UBS AG JERSEY        11.150  8/31/2011     USD   39.45
UBS AG JERSEY        10.360  8/19/2011     USD   51.39
UBS AG JERSEY        13.000  6/16/2011     USD   47.93
UBS AG JERSEY        10.650  4/29/2011     USD   15.88
UBS AG JERSEY        10.500  6/16/2011     USD   72.54
UBS AG JERSEY        11.030  4/21/2011     USD   20.79
UBS AG JERSEY        10.820  4/21/2011     USD   21.63
UBS AG JERSEY        16.160  3/31/2011     USD   42.97
UBS AG JERSEY        10.990  3/31/2011     USD   30.99
UBS AG JERSEY        11.400  3/18/2011     USD   25.67
UBS AG JERSEY        11.330  3/18/2011     USD   18.08
UBS AG JERSEY        12.800  2/28/2011     USD   34.71
UBS AG JERSEY        11.000  2/28/2011     USD   67.55
UBS AG JERSEY        15.250  2/11/2011     USD   11.78
UBS AG JERSEY        10.000  2/11/2011     USD   61.78
UBS AG JERSEY        16.170  1/31/2011     USD   13.06
UBS AG JERSEY        14.640  1/31/2011     USD   38.31
UBS AG JERSEY        13.900  1/31/2011     USD   35.44
UBS AG JERSEY         9.000   7/2/2010     USD   54.15

UNITED KINGDOM
--------------
BANK OF SCOTLAND      6.984   2/7/2035     EUR   72.31
BANK OF SCOTLAND      2.359  3/27/2029     JPY   74.52
BARCLAYS BK PLC       8.550  1/23/2012     USD   11.55
BARCLAYS BK PLC      10.600  7/21/2011     USD   40.76
BARCLAYS BK PLC       7.610  6/30/2011     USD   53.15
BARCLAYS BK PLC      10.950  5/23/2011     USD   59.50
BARCLAYS BK PLC      10.650  1/31/2012     USD   44.80
BARCLAYS BK PLC      10.350  1/23/2012     USD   23.10
BRADFORD&BIN BLD      4.910   2/1/2047     EUR   53.95
BRADFORD&BIN BLD      5.500  1/15/2018     GBP   44.15
BRADFORD&BIN PLC      7.625  2/16/2049     GBP   46.68
BRADFORD&BIN PLC      6.625  6/16/2023     GBP   44.27
BROADGATE FINANC      5.098   4/5/2033     GBP   72.10
CO-OPERATIVE BNK      5.875  3/28/2033     GBP   75.52
EFG HELLAS PLC        4.375  2/11/2013     EUR   74.09
EFG HELLAS PLC        5.400  11/2/2047     EUR   70.50
EFG HELLAS PLC        6.010   1/9/2036     EUR   20.13
ENTERPRISE INNS       6.375  9/26/2031     GBP   75.12
HBOS PLC              6.000  11/1/2033     USD   52.91
HBOS PLC              6.000  11/1/2033     USD   52.91
HBOS PLC              4.500  3/18/2030     EUR   68.35
INEOS GRP HLDG        7.875  2/15/2016     EUR   74.32
INEOS GRP HLDG        8.500  2/15/2016     USD   74.72
INEOS GRP HLDG        7.875  2/15/2016     EUR   74.13
LBG CAPITAL NO.1      7.375  3/12/2020     EUR   77.08
LBG CAPITAL NO.1      7.588  5/12/2020     GBP   76.25
LBG CAPITAL NO.1      6.439  5/23/2020     EUR   71.20
LBG CAPITAL NO.1      7.975  9/15/2024     GBP   75.30
LBG CAPITAL NO.2      8.500   6/7/2032     GBP   74.88
LBG CAPITAL NO.2      6.385  5/12/2020     EUR   71.20
LBG CAPITAL NO.2      7.625  12/9/2019     GBP   75.88
NATL GRID GAS         1.771  3/30/2037     GBP   46.71
NORTHERN ROCK         5.750  2/28/2017     GBP   60.47
OJSC BANK NADRA       9.250  6/28/2010     USD   32.50
PIRAEUS GRP FIN       4.000  9/17/2012     EUR   72.05
PRINCIPALITY BLD      5.375   7/8/2016     GBP   64.93
PUNCH TAVERNS         6.468  4/15/2033     GBP   70.40
ROYAL BK SCOTLND      4.243  1/12/2046     EUR   70.15
ROYAL BK SCOTLND      6.620   6/9/2025     EUR   74.68
TXU EASTERN FNDG      6.450  5/15/2005     USD    1.00
TXU EASTERN FNDG      6.750  5/15/2009     USD    2.38
UNIQUE PUB FIN        6.464  3/30/2032     GBP   66.37
WESSEX WATER FIN      1.369  7/31/2057     GBP   23.30

                            *********

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

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

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

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

                            *********


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

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Joy A. Agravante, Valerie U. Pascual, Marites O.
Claro, Rousel Elaine T. Fernandez, Frauline S. Abangan and Peter
A. Chapman, Editors.

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

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

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

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


                 * * * End of Transmission * * *