TCREUR_Public/100623.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Wednesday, June 23, 2010, Vol. 11, No. 122

                            Headlines



F R A N C E

LE MONDE: Set to Choose New Owner Next Week


G E R M A N Y

COGNIS GMBH: BASF Takeover Expected This Week
GENERAL MOTORS: To Launch Campaign to Restore Opel Brand Image
PRIMACOM AG: Second Auction to Close July 5


I R E L A N D

ANGLO IRISH: Seeks Repayment of Brendan Murtagh's EUR26MM Loans

* IRELAND: Needs to Draw Up New Insolvency Procedures for Banks
* IRELAND: Seeks European Union Approval of Bank Guarantees


I T A L Y

FIAT SPA: To Present Spin-Off Details to Bankers by June 30
LOCAT SV: S&P Removes Watch Neg. on 'B+'-Rated Class C Notes


N E T H E R L A N D S

HERTZ HOLDINGS: Moody's Assigns 'B1' Rating on Senior Notes


R O M A N I A

FLY TAXI: Files for Insolvency
TIAGO MALL: Sold to Shopping Center Holding for EUR30.5 Million


R U S S I A

NORTH-WEST TELECOM: S&P Puts BB- Rating on CreditWatch Developing
NOVOLIPETSK STEEL: Moody's Gives Positive Outlook on 'Ba1' Rating
VOLGATELECOM OJSC: S&P Puts 'BB-' Rating on CreditWatch Developing


S P A I N

AYT CAIXA: Fitch Cuts Rating on Class D RMBS Notes to 'B'
FONCAIXA EMPRESAS: S&P Assigns 'BB' Rating on Class C Notes
IM BANCO: S&P Downgrades Ratings on Class C Notes to 'BB'


U N I T E D   K I N G D O M

ALBA 2005-1: Moody's Junks Rating on Class E Notes From 'Ba3'
BEMROSEBOOTH: To Go Into Administration
BRITISH AIRWAYS: Cabin Crew to Vote on Third Strike Action
CARTEL CLIENT: Placed Into Compulsory Liquidation
FORDS BAKERY: In Administration; 67 Jobs Affected

GALA CORAL: Finalizes GBP2.5 Billion Debt Restructuring
LUDGATE FUNDING: S&P Puts BB-Rated Class E Notes on Watch Neg.
MEZZVEST INVESTMENTS: S&P Cuts Rating on Class A-1 Notes to 'BB'
PILKINGTON'S GROUP: Administrators Axe 204 Jobs at Swinton Site
PRIMROSE ASSOCIATES: In Liquidation; Creditors May Get Nothing

STOCKPORT COUNTY: Transfer of Football League Share Approved
VEDANTA RESOURCES: S&P Gives Positive Outlook; Keeps 'BB' Rating




                         *********


===========
F R A N C E
===========


LE MONDE: Set to Choose New Owner Next Week
-------------------------------------------
Ben Hall at The Financial Times reports that Le Monde will choose
next week a new owner from two rival consortia after France
Telecom agreed to inject EUR50 million to EUR60 million (US$62
million to US$74 million) into the daily if its bid wins.

The FT relates a person familiar with the offer said France
Telecom would invest alongside Claude Perdriel, owner of Le Nouvel
Observateur magazine, and Prisa, the Spanish media group, in a
joint bid worth "a little over EUR100 million".  If the bid were
successful, France Telecom would end up owning a direct 20% stake
in the newspaper and would separately buy a 37% stake in Le Monde
Interactive, the daily's Web site operations, from Lagardere, the
French media group, the FT states.

According to the FT, a rival consortium comprising Mathieu
Pigasse, a Lazard banker; Pierre Berge, the former business
partner of Yves Saint Laurent; and Xavier Niel, the telecoms
billionaire, has offered to invest EUR100 million in the
newspaper.

Le Monde's shareholders will examine the bids on Friday, and the
newspaper's supervisory board will choose a new owner on June 28,
the FT notes.

On June 7, 2010, the Troubled Company Reporter-Europe, citing the
FT, 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.


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


COGNIS GMBH: BASF Takeover Expected This Week
---------------------------------------------
Daniel Schafer at The Financial Times reports that BASF is set to
buy Cognis for more than EUR3 billion (US$3.7 billion) to help the
German chemicals maker diversify away from lower margin oil-based
products.

According to the FT, several people close to the situation said
that the deal is expected to be announced in the first half of
this week.

The FT notes that while Goldman and Permira hoped to fetch up to
EUR3.5 billion, BASF, which has been advised by investment bank
Lazard, initially hesitated to pay more than EUR3 billion.  The
two sides have now agreed on a price in the middle of that range
for Cognis, which made revenues of EUR2.6 billion last year, the
FT discloses.

Cognis' net debt of EUR1.9 billion at the end of 2009 will add to
BASF's some EUR13 billion in net debt, the FT states.

Headquartered in Monheim, Germany, Cognis GmbH --
http://www.cognis.com/-- is a specialty chemical company.  The
company operates through three business units: Care Chemicals,
Nutrition and Health, and Functional Products.  Among Cognis'
products are environmentally friendly inks and coatings, synthetic
lubricants, oilfield chemicals, fatty acids, and dietary
supplements.  Once a subsidiary of chemicals giant Henkel, Cognis
is now owned by an investment group led by Permira and Goldman
Sachs.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on May 31,
2010, Fitch Ratings revised Germany-based chemicals company Cognis
GmbH's Outlook to Stable from Negative.  Its Long-term Issuer
Default Rating has been affirmed at 'B'.  The instrument rating
actions applicable to Cognis and related entities are:

Cognis GmbH

  -- Super senior secured revolving credit facility: affirmed at
     'BB'; 'RR1'

  -- Senior secured floating-rate notes and loans: upgraded to
     'BB-' from 'B+'; Recovery Rating revised to 'RR2' from 'RR3'

  -- High-yield notes: affirmed at 'CCC'; 'RR6'

Cognis Holding GmbH

  -- PIK loans: affirmed at 'CC'; 'RR6'

As reported by the Troubled Company Reporter-Europe on May 21,
2010, Moody's Investors Services changed the outlook on all
ratings of Cognis GmbH to Positive from Stable.  All ratings of
the group remain unchanged.  The last rating action was on June
17, 2009, when Cognis was downgraded from B2 to B3.


GENERAL MOTORS: To Launch Campaign to Restore Opel Brand Image
--------------------------------------------------------------
John Reed and Daniel Schafer at The Financial Times report that
General Motors will launch next month a campaign to try to restore
confidence in its European Opel brand, which was damaged during
the lengthy talks with governments and workers about restructuring
and state aid.

According to the FT, the program will include incentives for new
and existing customers of Opel -- the US carmaker's European brand
that trades in the UK as Vauxhall -- and focus on Germany, where
it has its headquarters and where the brand's image has suffered
the most.

As reported by the Troubled Company Reporter-Europe on June 18,
2010, Bloomberg News said GM and its Opel and Vauxhall brands
withdrew all applications across Europe for state loan guarantees
after failing to reach government agreements.  Bloomberg disclosed
GM on June 16 said in a statement that it will "fund the
requirements internally" for a reorganization of Opel and Vauxhall
announced seven months ago.  The company said the amounts and
reasons for the funding haven't changed, according to Bloomberg.

On June 11, 2010, the Troubled Company Reporter-Europe, citing
Bloomberg New, reported that 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 -- http://www.gm.com/-- is one of the
world's largest automakers, tracing its roots back to 1908.  With
its global headquarters in Detroit, GM employs 209,000 people in
every major region of the world and does business in some 140
countries.  GM and its strategic partners produce cars and trucks
in 34 countries, and sell and service these vehicles through these
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel,
Vauxhall and Wuling.  GM's largest national market is the United
States, followed by China, Brazil, the United Kingdom, Canada,
Russia and Germany.  GM's OnStar subsidiary is the industry leader
in vehicle safety, security and information services.

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

At 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.
(http://bankrupt.com/newsstand/or 215/945-7000)


PRIMACOM AG: Second Auction to Close July 5
-------------------------------------------
International Financing Review reports that a second auction of
PrimaCom is set to close on July 5, after management of the
holding company that owns the business filed for insolvency last
week with debts of EUR340 million.

According to IFR, the business can be sold as a going concern to
meet its bank debt but PrimaCom's operating assets are unaffected
by the insolvency filing.

On June 16, 2010, the Troubled Company Reporter-Europe, citing
CommsUpdate, reported that PrimaCom 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.

As reported by the Troubled Company Reporter-Europe on June 3,
2010, Dow Jones said Kabel Deutschland Holding AG is interested in
buying assets from the company.

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.


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


ANGLO IRISH: Seeks Repayment of Brendan Murtagh's EUR26MM Loans
---------------------------------------------------------------
Mary Carolan at The Irish Times reports that Anglo Irish Bank is
seeking judgment for some EUR26 million arising from personal
loans made to insolvent businessman Brendan Murtagh, whose total
liabilities are estimated at some EUR353 million.

According to the report, Anglo is seeking repayment of EUR23.4
million and GBP2.1 million in personal loans made to Mr. Murtagh
between 1999 and 2009 for commercial dealings in shares and
properties.

The report relates the bank said it had given Mr. Murtagh time to
restructure his interests in the hope he might be able to deal
fully with the liability, but no repayments had been made since
March.  It became apparent that the prospect of his being able to
deal with Anglo's loans had receded in the context of his other
financial difficulties, the report states.

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'.


* IRELAND: Needs to Draw Up New Insolvency Procedures for Banks
---------------------------------------------------------------
A Central Bank report said that current insolvency procedures in
Ireland are not suited to dealing with distressed financial
institutions and new legislative options in the area of special
resolution need to be developed, Suzanne Lynch writes for The
Irish Times.

According to The Irish Times, the report points out that the
restructuring of a distressed credit institution is dealt with
through liquidation or examinership, processes that are not suited
to financial institutions, particularly in light of their
responsibilities to depositors.

The Irish Times relates the report states that the Central Bank is
working closely with the Department of Finance to introduce a
Special Resolution Regime which will allow the regulatory system
to deal in a systematic way with distressed financial
institutions.  The Irish Times notes the report states that the
design of a possible SRR for Ireland will involve careful
examination of a range of legislative, policy and commercial
issues over the coming months.


* IRELAND: Seeks European Union Approval of Bank Guarantees
-----------------------------------------------------------
John Murray Brown at The Financial Times reports that Ireland is
seeking European Union approval to extend the blanket state
guarantee for all domestic bank liabilities, as Irish banks
struggle to fund themselves in the sovereign debt crisis.

According to the FT, Brian Lenihan, the finance minister, said he
expects to announce the terms of the new guarantee by the end of
the month, with an extension until the end of December.


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


FIAT SPA: To Present Spin-Off Details to Bankers by June 30
-----------------------------------------------------------
Fiat SpA will present more details of the spin-off of its truck
and tractor units to bankers by June 30, as it seeks to refinance
more than EUR3 billion of debt, Sabrina Cohen and Gilles
Castonguay at Dow Jones Newswires report, citing two people
familiar with the situation.

"Talks between Fiat top executives and officials at the five banks
involved started at the end of last week and will continue until
the end of the month," one of them told Dow Jones on condition of
anonymity.

Fiat, Dow Jones says, needs to refinance the debt, which expires
by year-end.  Dow Jones recalls in a May 26 note, UBS analysts
said Fiat might be forced to postpone the spin-off, planned for
the end of the year, if it doesn't refinance the debt in good
time.

According to Dow Jones, the people familiar with the a matter said
the banks involved in the talks with Fiat are France's BNP Paribas
SA and Credit Agricole SA unit Calyon; Citigroup Inc of the United
States; and Italy's Intesa Sanpaolo SpA and UniCredit Group.

Fiat plans to spin off its CNH tractor and Iveco truck businesses
into a separate company to be called Fiat Industrial, Dow Jones
discloses.

Over the next nine months, Fiat has EUR3.4 billion of loans
maturing, EUR500 million of bonds maturing and EUR800 million of
"other debt" maturing, Dow Jones says, citing the company's
April 21 presentation of its plan for the spin-off.

                         About Fiat SpA

Headquartered in Turin, Italy, Fiat SpA (BIT:F) --
http://www.fiatgroup.com/-- 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
implications.  "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.


LOCAT SV: S&P Removes Watch Neg. on 'B+'-Rated Class C Notes
------------------------------------------------------------
Standard & Poor's Ratings Services took various rating actions on
several Locat transactions.

Specifically S&P:

* Lowered and removed from CreditWatch negative its credit ratings
  on the class B notes in Locat SV S.r.l.'s series 2005 and series
  2006, and on the class C notes in series 2005 and series 2008;

* Affirmed and removed from CreditWatch negative its ratings on
  the class B notes in Locat SV's series 2008 and the class C
  notes in series 2006; and

* Affirmed its ratings on the class A notes in Locat SV's series
  2005, 2006, and 2008.

These rating actions follow a full credit and cash flow analysis
of these transactions, a review of the performance data contained
in the latest investor reports, and the current levels of
available credit enhancement.

In all the transactions, loans in arrears, after the deterioration
experienced in the past year, have decreased compared with the
peak recorded in December 2009.  This follows a marginal
improvement in the economic environment.

At the last interest payment date as of June 2010, these
transactions, after the consistent decrease in their arrears
levels recorded up to the previous IPD in of March 2010, have
reversed that trends.  However, the arrears levels remain lower
than the levels as of the December 2009 IPD.

The current arrears levels are 4.69% for series 2005, 5.97% for
series 2006, and 7.71% for series 2008.

The transactions experienced a rise in defaults last year and
excess spread in series 2005 and 2006 has been insufficient to
clear the principal deficiency ledgers.  This resulted in an
undercollateralization of the rated classes of notes of
EUR14.3 million for series 2005 and EUR31.5 million for series
2006.

These three transactions feature an interest payment deferral
mechanism for the class B and C notes providing additional
protection to the class A notes.  If the net cumulative default
ratio increases beyond 11.5% for the class B notes and 6.5% for
the class C notes -- as a percentage of the total amount of the
original balance and the subsequent portfolios purchased --
payment of interest on the class B and C notes is subordinated to
payment of principal on the class A notes.

The current net cumulative default ratio levels of the
transactions, compared with the previous IPD, are:

* 3.30% versus 3.16% for series 2005;
* 4.37% versus 4.27% for series 2006; and
* 4.08% versus 3.84% for series 2008.

The current net cumulative default level in Series 2008 has
recorded a consistent increase in the last year, taking the
interest-deferral trigger level in line with what recorded in the
most seasoned series 2005 and 2006.

Considering its current seasoning and the current low deleveraging
in S&P's opinion series 2008 presents a higher risk of breaching
the interest-deferral trigger in comparison with series 2005 and
2006.

These rating actions are the result of the current performance of
the transactions, the increases in defaults, and the current net
cumulative defaults ratio in relation to the levels of interest-
deferral triggers.

S&P conducted a cash flow analysis for these transactions, in
which S&P ran a number of scenarios to test the structures'
ability to make timely payment of interest and ultimate repayment
of principal in every rating.

                           Ratings List

      Ratings Lowered and Removed From Creditwatch Negative

                          Locat SV S.r.l.
    EUR2 Billion Asset-Backed Floating-Rate Notes Series 2005

                             Rating
                             ------
             Class     To              From
             -----     --              ----
             B         A-              A/Watch Neg
             C         BB+             BBB/Watch Neg

                          Locat SV S.r.l.
   EUR1.973 Billion Asset-Backed Floating-Rate Notes Series 2006

                             Rating
                             ------
             Class     To              From
             -----     --              ----
             B         A-              A/Watch Neg

                          Locat SV S.r.l.
   EUR2.489 Billion Asset-Backed Floating-Rate Notes Series 2008

                             Rating
                             ------
             Class     To              From
             -----     --              ----
             C         B+              BB/Watch Neg

      Ratings Affirmed and Removed From Creditwatch Negative

                          Locat SV S.r.l.
   EUR1.973 Billion Asset-Backed Floating-Rate Notes Series 2006

                             Rating
                             ------
             Class     To              From
             -----     --              ----
             C         B+              B+/Watch Neg

                          Locat SV S.r.l.
  EUR2.489 Billion Asset-Backed Floating-Rate Notes Series 2008

                             Rating
                             ------
             Class     To              From
             -----     --              ----
             B         A               A/Watch Neg

                         Ratings Affirmed

                          Locat SV S.r.l.
     EUR2 Billion Asset-Backed Floating-Rate Notes Series 2005

                         Class     Rating
                         -----     ------
                         A2        AAA

                          Locat SV S.r.l.
   EUR1.973 Billion Asset-Backed Floating-Rate Notes Series 2006

                         Class     Rating
                         -----     ------
                         A2        AAA

                          Locat SV S.r.l.
   EUR2.489 Billion Asset-Backed Floating-Rate Notes Series 2008

                         Class     Rating
                         -----     ------
                         A1        AAA
                         A2        AAA


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


HERTZ HOLDINGS: Moody's Assigns 'B1' Rating on Senior Notes
-----------------------------------------------------------
Moody's Investors Service assigned a B1 rating to the
EUR275 million senior secured notes of Hertz Holdings Netherlands
B.V. The notes will be guaranteed by The Hertz Corporation and
certain U.S. subsidiaries of Hertz on a senior unsecured basis,
and by certain non-U.S. subsidiaries of Hertz (the Collateral
Guarantors) on a senior secured basis.  All other ratings of Hertz
are affirmed at the current levels.  These ratings include:
Corporate Family Rating and Probability of Default Rating -- B1;
senior secured -- Ba1; senior unsecured -- B2; senior subordinate
-- B3; and Speculative Grade Liquidity rating -- SGL-3.  The
rating outlook remains negative.

The B1 rating of the Hertz B.V. notes reflects Moody's view that
the secured guarantee from the Collateral Guarantors will afford
the notes a degree of recovery protection that is superior to that
of Hertz's B2-rated senior unsecured obligations.  The principal
asset of the Collateral Group (which includes the Issuer, the
Collateral Guarantors, Hertz Luxembourg S.a.r.l and Hertz de
Espana S.L) is its fleet of rental vehicles which the rating
agency expects will retain a relatively high recovery rate.  The
historically strong recovery value of automobile rental fleets,
combined with a borrowing base provision limiting the amount of
secured debt to 80% of secured assets, would typically provide a
very robust level of asset coverage for the secured notes.
However, the degree of asset protection afforded to the notes is
compromised by several factors.  First, the notes will share in
their claim on collateral with a new EUR220 million secured
revolving credit facility.  Although the revolver and the notes
will both have a first-lien security interest in the assets of the
Collateral Guarantors, the revolver has a first-out position and
the notes a second-out position, effectively subordinating the
secured claim of the notes to that of the revolver.  In addition,
legal restrictions in some of the jurisdictions covering members
of the Collateral Group may make the granting of a perfected
security interest in the assets covered by the secured guarantees
onerous or impracticable.  As a result of these factors and the
anticipated usage level of the revolver, Moody's expects that
there would likely be a considerable shortfall in the level of
secured asset coverage of the notes.  Consequently, there is only
a one-notch uplift in the rating of Hertz B.V.'s secured notes
relative to the rating of Hertz's unsecured debt.

The one-notch rating uplift of the Hertz B.V. notes relative to
that of the unsecured debt of Hertz is also supported by the
guarantee structure supporting the obligations.  The Hertz
unsecured debt benefits from a guarantee from its principal US
subsidiaries; the Hertz B.V. notes benefit from the same
guarantee.  However, the holders of the Hertz B.V. notes also have
recourse to a senior unsecured claim against Hertz B.V. to the
extent that there is any shortfall in asset coverage from the
Collateral Guarantors.  Hertz B.V. is a material component of
Hertz's global operations and accounts for approximately 30% of
Hertz's consolidated revenues and 23% of its assets.  In addition,
intercompany loans from Hertz to Hertz B.V. will be subordinated
to the Hertz B.V. notes.  Consequently recourse to the assets of
Hertz B.V. affords an important degree of additional protection to
the Hertz B.V. notes that is not available to the holders of the
Hertz unsecured debt.

Hertz's B1 CFR is supported by positive industry fundamentals that
include fleet levels that are being maintained at conservative
levels, moderate price increases that are occurring in the leisure
sector, used car prices that have rebounded sharply, and
availability of securitization funding that has improved
significantly.  In addition, the major competitors in the car
rental sector are focusing on improving returns through reducing
costs and raising ancillary revenues.  There appears to be less
focus on attempts to gain share through price reductions.
Consequently, the overall pricing environment may be more
favorable.  Finally, with the completion of the proposed note
offering and the revolving credit facility, Hertz will have made
important progress in addressing the EUR1.3 billion funding
requirements of its international operations.

Notwithstanding these positives, Hertz's rating outlook remains
negative largely due to the company's proposed acquisition of
Dollar Thrifty Automotive Group.  Since agreeing to a purchase
price of approximately US$1.3 billion in April, Avis Budget Group,
Inc. has announced that it would be interested in making a
substantially higher offer to acquire Dollar Thrifty.  The
strategic importance that Dollar Thrifty would play in filling
Hertz's portfolio gap in the value segment of the car rental
sector, combined with a potential bidding war for the enterprise,
could stress Hertz's metrics over the intermediate-term.

With US$801 million in unrestricted cash, US$854 million in
availability under an existing revolving credit facility, and the
continued progress in meeting the refinancing needs of its
international operations, Hertz has adequate liquidity as
reflected in its Speculative Grade Liquidity rating of SGL-3.
Moody's notes, however, that the company's ongoing reliance on
significant access to the securitization markets in order to fund
fleet purchases will likely limit any intermediate-term
improvement in the SGL-3 rating.  Moreover, to the extent that
Hertz is able to complete an acquisition of Dollar Thrifty, the
company's liquidity cushion could narrow.

The last rating action on Hertz was an affirmation of the
company's ratings on April 28, 2010.

Hertz Corporation, headquartered in Park Ridge, NJ, is a leading
automobile and equipment rental company.


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


FLY TAXI: Files for Insolvency
------------------------------
Alexandru Anghel at Ziarul Financiar reports that Fly Taxi has
filed for insolvency.  The petition is to be brought before the
Bucharest Court of Law at the end of the month, the report
discloses.

Headquartered in Bucharest, Romania, Fly Taxi is a taxi operator
controlled by Fernando Enciu.  It had a EUR2.3-million turnover
and 126 employees in 2008, according to Ziarul Financiar.


TIAGO MALL: Sold to Shopping Center Holding for EUR30.5 Million
---------------------------------------------------------------
Corina Dumitrescu at Business Review reports that the Tiago Mall
in Oradea, the first mall to have filed for insolvency, has been
sold to Shopping Center Holding for EUR30.5 million.

The mall was put up for sale with an asking price of EUR35.5
million, the report relates.  The auction was organized by the
Transylvania House of Insolvency and the project developer's
liquidator, MLS Project Oradea, the report notes.

Tiago Mall filed for insolvency even before it was finished, the
report states.  The mall market in Romania is becoming over-
saturated in those shopping destinations and, consequentially,
malls from Sibiu and Braila had to be closed due to the lack of
tenants and clients, the report says citing insiders.

The original investment for Tiago Mall was EUR65 million, credit
obtained from UniCredit Austria and UniCredit Tiriac Bank, the
report discloses.


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


NORTH-WEST TELECOM: S&P Puts BB- Rating on CreditWatch Developing
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had placed its
global scale 'BB-' long-term corporate credit and 'ruAA-' Russia
national scale ratings on Russian telecoms operator North-West
Telecom (JSC) on CreditWatch with developing implications.

The CreditWatch placement reflects the uncertaintyes 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 NWT
into the larger Rostelecom entity, assuming the absence of any
technical or actual liquidity concerns coming out of the
reorganization process."

On June 19, 2010, the company's annual shareholders meeting
approved NWT'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 NWT'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 NWT 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, NWT 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 NWT's liquidity
position.

The ratings on North-West Telecom (JSC) are constrained by the
company's exposure to Russia's immature capital markets and
associated weakening liquidity position, intense competition in
the domestic broadband market, limited revenue diversification,
and Russia's worsening economic environment.  Further constraints
on the ratings are what Standard & Poor's regards as risks
associated with ongoing industry and regulatory reform.

At the same time, the ratings continue to benefit from NWT's
leading position in traditional telephony, its improving
operational efficiency, and its strengthening profitability.  Also
taken into account are NWT's moderate debt levels and historically
prudent financial policy.

S&P expects to resolve the CreditWatch placement within the next
three months.  S&P will analyze the impact of the reorganization
on NWT's liquidity position.  S&P will compare the total amount of
financial claims on NWT 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.


NOVOLIPETSK STEEL: Moody's Gives Positive Outlook on 'Ba1' Rating
-----------------------------------------------------------------
Moody's Investors Service has changed the outlook for Novolipetsk
Steel OJSC's Ba1 corporate family rating and the outlook on NLMK's
Aa1.ru national scale rating to positive from stable.

This rating action reflects the fact that the company continues to
demonstrate solid financial results and it maintains conservative
financial policy in 2009 in spite of the challenging global
environment for steel producers.  The resilient performance in
2009 is evidenced by solid EBITDA margin of 22.3% at the bottom of
the cycle, the level of total debt/EBITDA at 2.1x and net
debt/EBITDA at 1.2x, based on Moody's adjusted numbers -- the
lowest among global and domestic peers.  The company continues to
demonstrate improving profitability, sound liquidity profile, and
conservative financial metrics.  The material improvements of the
steel market in the 2H 2009 has continued in 1Q and 2Q 2010 which
should help to further enhance the credit profile of NLMK.


The current rating continues to reflect the company's leading
position in the Russian flat steel market, as well as its globally
competitive production costs as evidenced by its average EBIT
margin of about 28.9% in the past three years, reflecting its
large scale, track record of full-capacity utilization, the
proximity of its facilities to high-grade iron-ore reserves,
efficient logistics, and self-sufficiency in iron-ore and coke.
Vertical integration into iron ore mitigates the risk of currently
rising raw material prices.  Moody's also notes that NLMK has a
comfortable headroom under its financial covenants in addition to
an adequate funding profile for its ongoing capex program.

However, the rating remains constrained by 1) the company's
significant exposure to the sales of semi-finished steel products;
2) high capex requirements that might negatively affect the
current solid cash position and 3) exposure to export markets with
the domestic market only accounting for 30% of sales.

The rating could be moved up if the company continues to
demonstrate conservative financial profile with 1) the ratio of
gross debt/EBITDA maintained below 1.5x on the sustainable basis;
2) CFO-dividends/Debt above 35%; and 3)EBIT margin of around 20%.
Moody's also expects that NLMK's liquidity will be prudently
managed.

The last rating action was on October 26, 2009 when Moody's
Investors Service changed the outlook for NLMK's Ba1 corporate
family rating and the outlook on NLMK's Aa1.ru national scale
rating to stable from negative.  This rating action reflected the
fact that the company was able to show resilient performance and
credit metrics for 2008 and 1H 2009.

NLMK is one of Russia's largest vertically integrated steel
companies both by volume and by assets size.  The company is
located in the central Russian city of Lipetsk nearby the Kursk
Magnetic Anomaly, the largest iron ore basin in Europe which
contains 2/3 of all Russia's iron ore reserves.  NLMK principal
assets include an integrated steel plant in the European part of
Russia, an iron ore mine, a coal deposit and a coke-chemical
production facility, as well as two mini-mills in the Urals region
of Russia, rolling facilities in Russia and in Western Europe and
a mini-mill in USA.

For the financial year 2009, NLMK produced 10.6 mln t of crude
steel, reported US$6.14 billion in revenue and US$1.44 billion in
EBITDA.

The company is beneficially owned by Mr. Vladimir Lisin, Chairman
of the Board of Directors.  Following the recent IPO, Mr. Lisin
still controls 84% of the company.  NLMK shares are traded in
Russia on MICEX and RTS, and GDRs -- on the London Stock Exchange.


VOLGATELECOM OJSC: S&P Puts 'BB-' Rating on CreditWatch Developing
------------------------------------------------------------------
Standard & Poor's Ratings Services said that it placed its global
scale 'BB-' long-term corporate credit and 'ruAA-' Russia national
scale ratings on Russian telecoms operator VolgaTelecom (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/--)," said Standard & Poor's credit
analyst Alexander GriazNov.

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.  At the
same, S&P would view as positive for the ratings a merger of
VolgaTelecom into the larger Rostelecom entity, assuming the
absence of any technical or actual liquidity concerns coming out
of the reorganization process.

On June 21, 2010, the company's annual shareholder meeting
approved VolgaTelecom's reorganization for merger into Rostelecom.
This transaction is part of the restructuring of state-owned
telecoms holding company Svyazinvest OJSC (not rated), which must
also be approved by Rostelecom's shareholders.  In compliance with
Russian legislation, all of VolgaTelecom's debtholders have the
legal right to claim from the company early repayment of their
debt in court -- although S&P has reason to believe that most
debtholders will waive this right.

Standard & Poor's Ratings Services considers the ratings on
VolgaTelecom to be constrained by the company's exposure to
Russia's weak capital markets, a weakening domestic economy, and
intense competition in the mobile telephone segment.  S&P views
uncertainty related to the reorganization of the company's parent,
Svyazinvest, as a further rating constraint.  The ratings continue
to be supported by VolgaTelecom's resilient market position in its
franchise area, increasing revenue diversity, and a superior
network compared with that of its key peers.

"S&P expects to resolve the CreditWatch placement within the next
three months," said Mr. Griaznov, "and S&P will analyze the impact
of the reorganization on VolgaTelecom's liquidity position."


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


AYT CAIXA: Fitch Cuts Rating on Class D RMBS Notes to 'B'
---------------------------------------------------------
Fitch Ratings has downgraded and affirmed AyT Caixa Sabadell
Hipotecario I, FTA's RMBS notes as detailed at the end of this
comment.  The transaction contains first-ranking mortgage loans
originated by Caixa D'Estalvis de Sabadell.

The downgrade of the class D note was driven by concerns over the
level of loans in arrears by three or more months, and the
potential losses that will need to be covered on these loans.  The
rating action further incorporates Fitch's view of the Spanish
housing market, including a 25-30% house price decline from peak.
The transaction also includes several loan characteristics that
Fitch has identified as performing worse than the average loan in
the Spanish mortgage market.  These include the high weighted
average original loan-to-value of the pool (95.5% at closing), as
well as a large proportion of loans (38% at closing) made to
borrowers who are self employed or on temporary contracts.

Loans in arrears by more than three months have experienced an
upward trend since issuance and, as of the May 2010 IPD, stood at
5.44% of the current outstanding balance of the pool.  This
represents an increase of nearly 2% since May 2009.  The
transaction saw its first defaults in May 2010, defined as loans
in arrears by more than 18 months, and a total 0.39% of the
initial pool balance has been defined as defaulted.  Fitch expects
that given the volume of current arrears, and the high roll rate
of loans in arrears to default to date, defaults will rise over
the next year and place further pressure on the deal's
performance.

The transaction, in similarity to most Spanish RMBS, benefits from
a provisioning mechanism whereby defaults are written off using
gross excess spread generated by the cash flow.  This is a
positive feature as it utilizes available excess revenue earlier
rather than waiting for a loss to be realized and reduces the cost
of carry of non-performing loans.  However, as of the latest IPD
the transaction has experienced a reserve fund draw of 5.57% of
its target amount (4.10% of the initial note balance) due to new
defaults being higher than the available excess cash.  This has
reduced the available cash credit enhancement to the notes, which
has been replaced by overcollateralization.  Any recoveries
received on defaulted loans will provide additional revenue to the
transaction.

In Fitch's view further potential reserve fund draws may occur as
the pool trend deteriorates.  This is reflected in the Negative
Outlook on the most junior tranche.

The rating actions are:

AyT Caixa Sabadell Hipotecario I, FTA:

  -- Class A (ISIN ES0312192000) affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity (LS) rating of 'LS-1'

  -- Class B (ISIN ES0312192018) affirmed at 'A'; Outlook Stable;
     assigned 'LS-4'

  -- Class C (ISIN ES0312192026) affirmed at 'BBB-'; Outlook
     Stable; assigned 'LS-4'

  -- Class D (ISIN ES0312192034) downgraded to 'B' from 'BB-';
     Outlook Negative; assigned 'LS-3'


FONCAIXA EMPRESAS: S&P Assigns 'BB' Rating on Class C Notes
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary credit
ratings to Foncaixa Empresas 2, Fondo De Titulizacion De Activos's
EUR2 billion asset-backed floating-rate notes.

At closing, the originator, Caja de Ahorros y Pensiones de
Barcelona (la Caixa), will sell to Foncaixa EmpresaS 2, FTA a
EUR2 billion closed portfolio of loans granted to Spanish
entities.  La Caixa classifies these entities according to their
size: Micro, small, medium-small, medium-big, big, and very big
enterprises.

To fund this purchase, the trustee, Gesticaixa S.G.F.T., S.A.,
will issue four classes of floating-rate, quarterly paying notes
on Foncaixa Empresas 2's behalf.

In terms of S&P's credit and cash flow analyses, its preliminary
ratings are based on the specific characteristics of these types
of loans, the borrower characteristics, and the concentration of
the borrowers.  The ratings on each class of securities are
preliminary as of and subject to change at any time.

                           Ratings List

      Foncaixa Empresas 2, Fondo de Titulizacion de Activos
          EUR2 Billion Asset-Backed Floating-Rate Notes

                                             Prelim.
                              Prelim.        amount
            Class             rating         (mil. EUR)
            -----             -------        ----------
            A1                AAA                500
            A2                AAA              1,220
            B                 A                  100
            C                 BB                 180


IM BANCO: S&P Downgrades Ratings on Class C Notes to 'BB'
---------------------------------------------------------
Standard & Poor's Ratings Services lowered and placed on
CreditWatch negative its credit rating on IM BANCO POPULAR FTPYME
1, Fondo de Titulizacion de Activos' class C notes.  All other
classes of notes were unaffected.

The rating action follows a review of the current performance of
this transaction and the credit enhancement available for each
class of notes.  In particular, the current credit support
available for the class C notes is 0.1%.  The current balance of
the cash reserve is EUR382,614, compared with the required level
of EUR11.5 million.

As of April 2010, the transaction is backed by a pool equivalent
to 17.68% of the original balance.  90+ day delinquency rates
decreased substantially since mid-2009 and currently represent
1.40% of the outstanding pool balance.  At the same time,
cumulative gross defaults steadily increased up to 1.48% of the
original pool balance.  There is a rollover effect of delinquent
loans into more severe arrears buckets.  As the fund has to
amortize the balance of the notes for all new defaulted loans, in
order to meet its obligations it used the cash reserve on payment
dates since January 2009.  As of June 22, 2010, the cash reserve
is 3.32% of its required level.

S&P believes that the fund faces the risk of new defaults, which
will lead to additional amortization in the near future.  Given
the low level of the cash reserve, this might translate into a
principal deficiency amortization.  If this event takes place and
the fund does not benefit from significant excess spread in the
future, in S&P's opinion there is a higher probability that
principal repayment on the class C notes might not occur in full
at the maturity date.

S&P considers that the current credit support for the class C
notes is no longer commensurate with an investment-grade rating
level.  As a consequence, S&P has lowered its rating to 'BB' from
'BBB'.  S&P has placed the class C notes on CreditWatch negative
while S&P fully analyze the credit and cash flow results and
verify whether further actions might be required.

Banco Popular Espanol, S.A. (A/Negative/A-1) originated the loans,
granted to Spanish small and midsize enterprises, that back the
transaction.

                           Ratings List

        Rating Lowered and Placed on Creditwatch Negative

    IM BANCO POPULAR FTPYME 1, Fondo de Titulizacion de Activos
                 EUR2 Billion Floating-Rate Notes

                                   Rating
                                   ------
               Class        To                 From
               -----        --                 ----
               C            BB/Watch Neg       BBB


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


ALBA 2005-1: Moody's Junks Rating on Class E Notes From 'Ba3'
-------------------------------------------------------------
Moody's Investors Service has taken action on three classes of
notes issued by Alba 2005-1 plc.  All the affected tranches listed
at the end of this press release had been placed on review for
possible downgrade on 26 June 2009 due to worse-than-expected
performance as detailed in a press release dated 26 June 2009 when
Moody's placed on review 13 UK Non-Conforming RMBS transactions
and commented on 14 other UK NC RMBS transactions.  The rating
action concludes the review and takes into account increased loss
expectations for the mortgage portfolio.  Moody's notes that the
weak performance of this transaction is the main driver for the
rating action.

                       Transaction Overview

Alba 2005-1 closed in November 2005 and the current pool factor is
approximately 31%.  The assets supporting the notes are non-
conforming mortgage loans secured by residential properties
located in England, Wales and Scotland, with approximately 49.7%
of the outstanding portfolio represented by non-owner occupied
properties.  The loans were originated by Preferred Mortgages
Limited (50.3% of current balance) and Platform Mortgages Limited
(49.7% of current balance).  The current weighted average LTV is
78.2% slightly lower than at closing (79.3%).  The liquidity
facility has been fully drawn since May 2009 when a standby
drawing was made due to a breach of one of the required ratings of
the liquidity facility provider (Danske Bank A/S, Aa3/P-1), and
currently stands at GBP10,985,538.  Moody's has factored in the
additional expense caused by this drawdown in its analysis.

                 Revised Performance Expectations

Moody's has assessed updated loan-by-loan information of the
outstanding portfolio to determine the increase in credit support
needed and the volatility of future losses.  As a consequence,
Moody's has revised its Milan Aaa CE for this transaction to 23.0%
from 18.37% at closing.  The current available credit enhancement
is 10.3%, 4.6%, and 1.2%% for the Class C, Class D and Class E
notes respectively.  The current available credit enhancement for
the Class A3 notes is 39.6%.

Moody's notes that although delinquencies have been decreasing
over the past year (90+ delinquencies have dropped to 12.0% of
current balance versus 19.5% a year ago), the reserve fund remains
drawn and currently stands at 42.6% of its target amount.

Considering the current amount of realized losses and completing a
roll-rate and severity analysis for the non-defaulted portion of
the portfolio, Moody's has also increased its total loss
expectations to 4% of the original portfolio balance, from 2.07%
at closing.  As at the last interest payment date in June 2010,
cumulative losses were equivalent to 2.04% of original portfolio
balance.

                   Servicing and Cash Management

The servicing of the portfolio is split between Homeloan
Management Limited (SQ2+) for the Preferred loans and Western
Mortgage Services Limited (a fully owned subsidiary of the Co-
Operative Bank plc, A2/P-1) for the Platform originated loans.
Oakwood Homeloans Limited (a subsidiary of Credit Suisse Aa1/P-1)
is the special servicer and Bank of New York Mellon (Aaa/P-1) acts
as the Cash Manager and Master Servicer.

Moody's ratings address the expected loss posed to investors by
the legal final maturity of the notes.  Moody's ratings address
only the credit risks associated with the transactions.  Other
non-credit risks have not been addressed, but may have a
significant effect on yield to investors.

List of affected Notes:

  -- GBP10.4 million C notes, downgraded to Baa1; previously A3
     Placed Under Review for possible downgrade on 26 June 2009

  -- GBP5.3 million D notes, downgraded to B3; previously Baa3
     Placed Under Review for Possible Downgrade on 26 June 2009

  -- GBP3.2 million E notes, downgraded to Ca; previously Ba3
     Placed Under Review for Possible Downgrade on 26 June 2009


BEMROSEBOOTH: To Go Into Administration
---------------------------------------
BemroseBooth is to go into administration, thisisderbyshire.co.uk
reports.

According to the report, company directors Jean-Paul Ansel and
Leonard Levie have applied to the High Court with a notice of
intent to appoint an administrator.  It means that for a period of
ten days from the application, no one owed money by the firm can
start or continue any legal action against BemroseBooth to reclaim
what they are owed, the report notes.

BemroseBooth is a print firm based in Derby.  The company employs
180 people, according to thisisderbyshire.co.uk.


BRITISH AIRWAYS: Cabin Crew to Vote on Third Strike Action
----------------------------------------------------------
Gill Plimmer at The Financial Times reports that British Airways
cabin crew members are to be balloted for a third round of strike
action next Tuesday, June 29.

According to the FT, Unite, the union representing 11,000 BA cabin
crew, is expected to notify BA of the vote on Tuesday.  If
successful, the walk-out could begin as soon as August 3, the FT
notes.

The FT notes that while the GBP62.5 million (US$92.3 million)
cost-saving program that sparked the dispute has all but been
resolved, the conflict is now centered on measures introduced by
BA since the strikes began.

Unite, the FT says, is demanding the full reinstatement of travel
perks for staff participating in the strike and the withdrawal of
disciplinary action against 70 cabin crew members.

As reported by the Troubled Company Reporter-Europe on June 18,
2010, Dow Jones Newswires reports that fresh talks between BA and
Unite broke down on June 15 despite a mediator having suggested a
proposal aimed at breaking the deadlock.

                      About British Airways

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

                           *     *     *

As reported in the Troubled Company Reporter-Europe on March 19,
2010, Moody's Investors Service lowered to B1 from Ba3 the
Corporate Family and Probability of Default Ratings of British
Airways plc; and the senior unsecured and subordinate ratings to
B2 and B3, respectively.  Moody's said the outlook is stable.
This concludes the review that was initiated on November 10, 2009.
The rating action reflects Moody's view that credit metrics will
not be commensurate with the previous rating category in the
medium term.  Moody's expect furthermore that metrics will be
burdened in the foreseeable future by the company's significant
pension deficit, which was at GBP2.6 billion for the APS and NAPS
schemes combined as of September 2009 (under IAS).  Moody's
nevertheless understand that under the current agreement with the
trade unions, the cash contributions to these deficits will be
frozen at GBP330 million per year for three years, subject to
approval by the Pensions Regulator and the trustees


CARTEL CLIENT: Placed Into Compulsory Liquidation
-------------------------------------------------
Natalie Martin at Mortgage Strategy reports that Cartel Client
Review has been placed into compulsory liquidation at the Royal
Courts of Justice.

The report relates the move came after a winding-up order was made
by HM Revenue & Customs against the company for an undisclosed
sum.

The report recalls the Ministry of Justice suspended the
authorization of Cartel Client Review in March and the Solicitors
Regulation Authority closed Consumer Credit Litigation Solicitors,
the solicitors' firm that worked on behalf of Cartel, in March.

Cartel Client Review is a claims management firm based in the
United Kingdom.


FORDS BAKERY: In Administration; 67 Jobs Affected
-------------------------------------------------
BBC News reports that Fords Bakery Ltd. has been placed in
administration, with the loss of 67 jobs and a threat to 87 more
jobs.

Fords has faced severe cash flow problems during the economic
downturn, BBC says, citing KPMG administrator Blair Nimmo.  It has
also found it hard to cope with rising costs to raw materials and
has suffered because of inefficient production, BBC notes.

The company's nine shops have ceased trading, BBC discloses.

Fords Bakery is an East Lothian bakery.  The company had an annual
turnover of GBP5 million.  It had been supplying supermarkets,
food service companies and independent bakeries in East and
Central Scotland, according to BBC.


GALA CORAL: Finalizes GBP2.5 Billion Debt Restructuring
-------------------------------------------------------
Anousha Sakoui at The Financial Times reports that Gala Coral has
finalized a restructuring of its GBP2.5 billion (US$3.7 billion)
debt.  According to the FT, as a result, Gala is freed from GBP588
million of mezzanine debt that is being written off in exchange
for giving creditors control of the business.

The FT says the new shareholder group will be led by Apollo
Management, Cerberus, Park Square Capital and York Capital, which
are providing GBP200 million to repay debt.

Gala's net debt will fall by more than GBP700 million to GBP1.9
billion and its senior secured debt will drop to about GBP1.5
billion, which is less than five times the past 12 months'
earnings before interest, tax, depreciation and amortization, of
GBP310 million, the FT notes.

The FT relates Gala said the restructured group will retain more
than GBP200 million of cash within the business, and will invest
for growth in its retail and its online businesses.

Gala Coral Group Ltd. -- http://www.galacoral.co.uk/-- is a
gaming company in the UK, with operations encompassing bingo,
casinos, and sports betting.  It runs more than 150 bingo halls
throughout the country, as well as some 30 casinos.  The company
is also a bookmarker with nearly 1,600 betting shops and online
betting sites.  Gala Coral Group was formed in 2005 when Gala
Group acquired Coral Eurobet.  The company is jointly owned by
private equity firms Cinven Group, Candover Investments, and
Permira.


LUDGATE FUNDING: S&P Puts BB-Rated Class E Notes on Watch Neg.
--------------------------------------------------------------
Standard & Poor's Ratings Services placed its credit ratings on
CreditWatch negative on Ludgate Funding PLC's mortgage-backed
floating-rate notes series 2008-W1.  The rating on the MERCs is
unaffected.

The rating action follows S&P's initial credit analysis of updated
loan level information.  In S&P's opinion, cumulative principal
losses (as a percentage of the initial balance) are high (1.62%)
for a transaction that closed two years ago.  These losses have
lead to six consecutive quarters where the issuer has drawn on the
reserve fund leaving the reserve at 1.13% of the outstanding note
balance and 49.54% of its required amount.

As a consequence, credit enhancement has decreased for the class
Cb, D, and E notes since closing, and S&P has increased its
expectation for losses and loss severities across the rating
spectrum.

Collection rates have improved in the current low interest rate
environment.  However, the stock of repossessions remains
relatively high at 3.45% so further losses, and a risk of further
reserve fund draws, can be expected.

As with most of the U.K. RMBS market, prepayments have remained
low.  The prepayment speed for the quarter to the end of February
2010 was 4.84%.  S&P expects prepayments to remain low, with
borrowers unlikely to remortgage in the current market.  In
particular, this pool contains a high percentage of "buy-to-let"
loans with high loan-to-value ratios.  Therefore, S&P sees little
deleveraging of the structure in the near to medium term.

S&P expects to resolve the CreditWatch placements using data from
the July investor report and updated loan level information for
its credit and cash flow analysis.

Ludgate Funding series 2008-W1 is a U.K. RMBS transaction
securitizing a pool of first-ranking mortgages secured over
freehold and leasehold, owner-occupied, and buy-to-let properties
in the U.K.

                           Ratings List

                       Ludgate Funding PLC
       EUR102.7 Million and GBP321 Million Mortgage-Backed
                Floating-Rate Notes Series 2008-W1

              Ratings Placed on CreditWatch Negative

                                 Rating
                                 ------
                Class       To                From
                -----       --                ----
                A1          AAA/Watch Neg     AAA
                A2b         AAA/Watch Neg     AAA
                Bb          AA/Watch Neg      AA
                Cb          A-/Watch Neg      A-
                D           BBB/Watch Neg     BBB
                E           BB/Watch Neg      BB

                        Rating Unaffected

                       Class       Rating
                       -----       ------
                       MERCs       AAA


MEZZVEST INVESTMENTS: S&P Cuts Rating on Class A-1 Notes to 'BB'
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit rating on
Mezzvest Investments I Ltd.'s class A-1 notes to 'BB' from 'BB+'.

On June 10, 2010, S&P lowered the ratings on the class A-1 notes
following the application of S&P's updated criteria for corporate
CDOs, as well as S&P's assessment of the credit deterioration in
the transaction portfolio.

In taking this rating action, S&P incorrectly lowered the rating
on the class A-1 notes to one notch higher than the rating on the
class A-2 notes on the assumption that the class A-1 notes rank
senior to the class A-2 notes.

S&P has subsequently discovered that both classes of notes rank
equally.  The rating action follows the discovery of this error
and reflects the updated ratings on the class A-1 notes.

Mezzvest Investments I is a cash flow collateralized loan
obligation transaction that securitizes loans to primarily
speculative-grade corporate firms.


PILKINGTON'S GROUP: Administrators Axe 204 Jobs at Swinton Site
---------------------------------------------------------------
The administrators of Pilkington's Group, a manufacturer and
distributer of wall and floor tiles, have confirmed Monday that
204 staff have been made redundant at the Swinton site.

Paul Flint, joint administrator and restructuring associate
partner at KPMG, commented: "Unfortunately, on assessing the
demand for the company's products, it has been necessary to make
204 staff redundant.  Negotiations with customers are ongoing and
we are hopeful that we will be able to recommence production of
terrazzo flooring and the ceramic products in the Swinton factory
in Greater Manchester early next week.

"We continue to work hard on securing a buyer for the business,
either in distinct parts or as a whole.  To date, a great deal of
buyer interest has been shown in the terrazzo and ceramics
production."

Paul Flint and Brian Green from KPMG Restructuring in Manchester
were appointed joint administrators of Pilkington's Group plc,
comprising Pilkington's Tiles Limited and Quiligotti Access
Flooring Limited on June 14, 2010.

Pilkington's Group plc 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.  On
June 16, the administrators confirmed that production at Poole
would not recommence, resulting in the redundancy of 37 employees.
The company also has a showroom and factory shop in Audenshaw,
Tameside.


PRIMROSE ASSOCIATES: In Liquidation; Creditors May Get Nothing
--------------------------------------------------------------
Mortgage Introducer reports that Primrose Associates has been put
into liquidation following concerns about the safety of client
cash and unsustainable levels of debt.

Mortgage Introducer relates Karyn Jones and John Kelmanson from
insolvency specialist accountants KCBS were appointed joint
liquidators on Monday at a meeting of around 60 creditors and the
company's shareholders.

The scale of debt at Primrose is not yet clear but there have been
suggestions it is under water by several million pounds, Mortgage
Introducer notes.  Primrose is reported to have been losing money
for the past few years, and the liquidator has said there may be
nothing left to reimburse creditors, Mortgage Introducer
discloses.

Primrose Associates is a mortgage broker based in London.


STOCKPORT COUNTY: Transfer of Football League Share Approved
------------------------------------------------------------
John Titley and Paul Reeves, Directors at Leonard Curtis, as Joint
Administrators of Stockport County Association Football Club
Limited disclosed that the Football League gave final approval for
the transfer of the Football League Share to the 2015 Group
Sunday.  Following that approval, the sale was completed "thereby
securing the future of the Club," the joint administrators said.

"This is clearly excellent news and an outcome that the team at
Leonard Curtis have worked hard to secure over many months.  We
would like to extend our thanks to the players, staff, fans and
suppliers who have supported the Club during a very difficult 13
months and wish the 2015 Group and all those associated with the
Club every success for the future," the joint administrators said.

Stockport County Association Football Club Limited entered into
administration on April 30, 2009, with the appointment of John
Titley and Paul Reeves, Directors at Leonard Curtis, as Joint
Administrators.


VEDANTA RESOURCES: S&P Gives Positive Outlook; Keeps 'BB' Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised its
outlook on London-based mining and metals company Vedanta
Resources PLC to positive from stable.  At the same time, S&P
affirmed the 'BB' long-term corporate credit rating on the
company.  S&P also affirmed the 'BB' issue rating on the company's
senior unsecured notes.

The positive outlook on the rating reflects S&P's expectation that
Vedanta's operating performance will improve over the next one
year, supported by the progressive commissioning of sizable
capacity expansion projects and benefits from a rebound in metal
and mineral prices.  S&P believes that Vedanta is on track to
successfully commission its various capital expenditure programs
and that metal prices will remain firm.

"S&P anticipate Vedanta's capacity expansion projects to come
onstream progressively over the next one to two years.  The
company's aluminum and power expansion plans are slated for
commissioning over the next four quarters, and will bolster its
production volumes," said Standard & Poor's credit analyst,
Suzanne Smith, managing director, Corporate & Government Ratings,
South and Southeast Asia.

In addition, S&P expects Vedanta's iron ore mining capacity to
increase.  In S&P's opinion, the combination of higher volumes,
favorable prices, and a low cost profile will materially improve
Vedanta's cash flows.

In S&P's view, Vedanta's consolidated liquidity position is
adequate.  The company's cash and liquid investments were about
US$7.2 billion at March 31, 2010, sufficient to meet its short-
term debt of about US$1.0 billion.

"S&P could raise the rating if Vedanta successfully delivers on
its major capital programs especially in its power, aluminum, and
iron ore businesses; satisfactorily executes its recent asset
purchase from Anglo American PLC (BBB/Stable/A-2); and maintains
or improves its financial metrics," said Ms. Smith.

S&P could revise the outlook to stable if: (1) metal prices weaken
substantially, and persistently remain subdued; and (2) major
operating disruptions at existing assets, delays in commissioning
new assets, or any further debt-funded acquisitions significantly
weaken the company's overall financial profile.


                            *********

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,
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Claro, Rousel Elaine T. Fernandez, Frauline S. Abangan and Peter
A. Chapman, Editors.

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

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