TCREUR_Public/100702.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

              Friday, July 2, 2010, Vol. 11, No. 129

                            Headlines



B E L G I U M

DEXIA SA: Agrees to Sell 51% Adinfo Stake to Network Research
DEXIA SA: Stops Issuing Government-Guaranteed Debt


E S T O N I A

SWEDBANK AS: Moody's Withdraws D- Bank Financial Strength Rating


F R A N C E

NATIXIS SA: Cleared by Regulator in 2008 Loss Disclosure Probe


G E R M A N Y

PB DOMICILE: Fitch Affirms Rating on Class E Notes at 'BB'
QIMONDA AG: Int'l Trade Proceedings Continue in Bankruptcy
ROHWEDDER AG: ATS Automation Ends Takeover Talks

* GERMANY: Landesbank Sector Agrees to Undergo Stress Tests


G R E E C E

WIND HELLAS: Has Standstill Agreement Until Nov. 5; Mulls Sale


H U N G A R Y

BORSODCHEM NYRT: Creditors Back Financial Restructuring Plan


I R E L A N D

ALLIED IRISH: Secures Interim Charging Order Over Barry's Shares
ANGLO IRISH: Tops List of Biggest Losers in '09, Magazine Says
EMERALD MORTGAGES: Fitch Cuts Rating on Class C Notes to 'B'


I T A L Y

FIAT SPA: Wants Unions to Support Labor Proposals


K A Z A K H S T A N

EURASIAN BANK: Moody's Assigns 'B1' Long-Term Currency Rating


K Y R G Y Z S T A N

ASIAUNIVERSALBANK JSC: Moody's Withdraws 'Caa2' Currency Ratings


L U X E M B O U R G

TRUVO LUXEMBOURG: U.S. Unit Files for Bankruptcy; to Sell Assets


N E T H E R L A N D S

AMSTEL SECURITISATION: S&P Lifts Rating on Class E Notes to BB+
DSB BANK: License Should Have Stricter Conditions, Wellink Says


R U S S I A

INTERNATIONAL INDUSTRIAL: Moody's Junks Deposit Ratings From 'B3'


S P A I N

CAJA GENERAL: Fitch Affirms 'BB+' Preference Share Rating
IM CAJA: Fitch Affirms Rating on Class E Notes at 'CCC'
VALENCIA: Sells World Cup Players to Get Breathing Space


T U R K E Y

ALBARAKA TURK: S&P Gives Stable Outlook; Affirms 'BB/B' Rating


U K R A I N E

FERREXPO PLC: S&P Assigns 'B' Long-Term Corporate Credit Rating


U N I T E D   K I N G D O M

BAKER LTD: Administrators Find Buyer; Around 70 Jobs Saved
BP PLC: Bankruptcy Can Rid of "Perpetual" Liability, Experts Say
BRITISH AIRWAYS: Unite to Take Neutral Stance Over New Pay Offer
BRITISH AIRWAYS: Agrees Details of Merger Plan With Iberia
LLOYDS BANKING: To Close 265 Halifax Agencies; 650 Jobs Affected

LLOYDS TSB: Moody's Corrects Rating on Medium-Term Note From Ba1
VANTIS PLC: Vantis BRS Sold in MBO Following Administration
VANTIS PLC: RSM Tenon Buys Offices for GBP7 Million


X X X X X X X X

* BOOK REVIEW: The Executive Guide to Corporate Bankruptcy




                         *********



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B E L G I U M
=============


DEXIA SA: Agrees to Sell 51% Adinfo Stake to Network Research
-------------------------------------------------------------
A.H. Mooradian at Dow Jones Newswires reports that Dexia SA said
Wednesday it has agreed to sell its 51% stake in IT services
company Adinfo to Network Research Belgium, a Belgian IT service
provider.

Financial terms of the sale weren't disclosed, Dow Jones notes.

According to Dow Jones, Dexia said the disposal is part of the
European Commission's decision on the bank's restructuring plan,
which stipulated it had to dispose of its Adinfo stake by Dec. 31.

                          About Dexia SA

Dexia SA -- http://www.dexia.com/-- is a Belgian bank specialized
in retail banking and local public finance.  The Bank offers a
range of banking services for individual customers, small and
medium-sized enterprises and institutional clients.  It has four
divisions: Asset Management, Personal Financial Services, Treasury
and Financial Markets, and Investor Services.  The Asset
Management division offers products ranging from traditional and
alternative funds to socially responsible investments.  The
Personal Financial Services segment focuses on banking and
insurance products, including both life and non-life insurance
products.  Through its Treasury and Financial Markets division,
Dexia is present in the capital markets and provides support to
the entire Group.  The Investor Services segment offers various
services to shareholders, such as fund and pension administration.
Through its subsidiaries, Dexia SA is active in over 30 countries,
including Belgium, Luxembourg, Slovakia, Turkey, France, Australia
and Japan.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Feb. 16,
2010, Moody's Investors Service upgraded to C- from D+ the bank
financial strength ratings of Dexia Group's main banking entities,
Dexia Bank Belgium, Dexia Credit Local and Dexia Banque
Internationale a Luxembourg.  The rating agency also affirmed the
A1 long-term debt and deposit ratings of DBB, DCL and DBIL.  The
outlooks on the long-term debt and deposit ratings and on the
BFSRs were changed to stable from negative.  The short-term debt
and deposit ratings were affirmed at Prime-1.  Moody's also
affirmed, with a stable outlook, the A2 dated subordinated debt
ratings of DBB, DCL and DBIL.

This rating action follows the agreement reached by Dexia and the
European Commission on the group's restructuring plan, including,
inter alia, Dexia's upcoming exit from the State guarantee scheme,
earlier than previously anticipated, in light of the improvements
in its funding situation.  Moody's rating action also reflects
Dexia's satisfactory capital adequacy according to the rating
agency's stress-test scenario analysis.

In addition, Moody's upgraded to B3 from Caa1 the ratings of the
preferred stock securities issued by DCL and by Dexia Funding
Luxembourg (guaranteed by Dexia Group) and to B1 from Caa1 the
ratings of the preferred stock securities issued by DBIL.  The
rating of the junior subordinated debt issued by DBB was confirmed
at Ba2.  These subordinated debt ratings now carry a stable
outlook.


DEXIA SA: Stops Issuing Government-Guaranteed Debt
--------------------------------------------------
David Whitehouse and Fabio Benedetti-Valentini at Bloomberg News
report that Dexia SA said it stopped issuing government-guaranteed
debt as of Wednesday, June 30, respecting a commitment with the
European Union.

Bloomberg relates Dexia said in an e-mailed statement that the
bank, which raised EUR35.5 billion (US$43.4 billion) of medium-
and long-term debt as of June 30, is close to meeting its long-
term funding target for 2010.

According to Bloomberg, Dexia said the guarantee from France,
Belgium and Luxembourg covers EUR23.2 billion of medium- and long-
term debt as of June 30, while the bank stopped issuing short-term
guaranteed debt at the end of May.

Bloomberg recalls Dexia, which in 2008 received a capital
injection of about EUR6 billion to avoid a collapse, agreed in
February to sell units in Italy, Spain and Slovakia to gain
European Union approval for its taxpayer-funded bailout.

                          About Dexia SA

Dexia SA -- http://www.dexia.com/-- is a Belgian bank specialized
in retail banking and local public finance.  The Bank offers a
range of banking services for individual customers, small and
medium-sized enterprises and institutional clients.  It has four
divisions: Asset Management, Personal Financial Services, Treasury
and Financial Markets, and Investor Services.  The Asset
Management division offers products ranging from traditional and
alternative funds to socially responsible investments.  The
Personal Financial Services segment focuses on banking and
insurance products, including both life and non-life insurance
products.  Through its Treasury and Financial Markets division,
Dexia is present in the capital markets and provides support to
the entire Group.  The Investor Services segment offers various
services to shareholders, such as fund and pension administration.
Through its subsidiaries, Dexia SA is active in over 30 countries,
including Belgium, Luxembourg, Slovakia, Turkey, France, Australia
and Japan.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Feb. 16,
2010, Moody's Investors Service upgraded to C- from D+ the bank
financial strength ratings of Dexia Group's main banking entities,
Dexia Bank Belgium, Dexia Credit Local and Dexia Banque
Internationale a Luxembourg.  The rating agency also affirmed the
A1 long-term debt and deposit ratings of DBB, DCL and DBIL.  The
outlooks on the long-term debt and deposit ratings and on the
BFSRs were changed to stable from negative.  The short-term debt
and deposit ratings were affirmed at Prime-1.  Moody's also
affirmed, with a stable outlook, the A2 dated subordinated debt
ratings of DBB, DCL and DBIL.

This rating action follows the agreement reached by Dexia and the
European Commission on the group's restructuring plan, including,
inter alia, Dexia's upcoming exit from the State guarantee scheme,
earlier than previously anticipated, in light of the improvements
in its funding situation.  Moody's rating action also reflects
Dexia's satisfactory capital adequacy according to the rating
agency's stress-test scenario analysis.

In addition, Moody's upgraded to B3 from Caa1 the ratings of the
preferred stock securities issued by DCL and by Dexia Funding
Luxembourg (guaranteed by Dexia Group) and to B1 from Caa1 the
ratings of the preferred stock securities issued by DBIL.  The
rating of the junior subordinated debt issued by DBB was confirmed
at Ba2.  These subordinated debt ratings now carry a stable
outlook.


=============
E S T O N I A
=============


SWEDBANK AS: Moody's Withdraws D- Bank Financial Strength Rating
----------------------------------------------------------------
Moody's Investors Service has withdrawn all ratings of Swedbank AS
for business reasons following a request from the bank.  The
rating action does not reflect a change in the company's
creditworthiness.  Swedbank AS had no outstanding debt rated by
Moody's at the time of the withdrawal.

These ratings of Swedbank AS have been withdrawn:

* Bank financial strength rating of D- (negative outlook)

* Long-term local currency deposit rating of Baa3 (negative
  outlook)

* Short-term local currency deposit rating of Prime-3

* Long-term foreign currency deposit rating of Baa3 (negative
  outlook)

* Short-term foreign currency deposit rating of Prime-3

* Short-term foreign currency debt rating of Prime-3

Moody's last rating action on Swedbank AS was implemented on 8
September 2009 when the bank's ratings were downgraded to
Baa3/Prime-3/D- from Baa2/Prime-3/D, reflecting Moody's view that
the deterioration in the Baltic operating environment was putting
pressure on the bank's financial fundamentals.

Headquartered in Tallinn, Estonia, Swedbank AS reported
consolidated assets of EEK343 billion (EUR21.9 billion) at the end
of 2009.


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


NATIXIS SA: Cleared by Regulator in 2008 Loss Disclosure Probe
--------------------------------------------------------------
Michael Bathon at Bloomberg News reports that France's financial-
markets regulator has cleared Natixis SA in an investigation into
the disclosure of losses in 2008.

"It doesn't appear that, given the urgency it was under to provide
an immediate response to La Tribune's articles before the market
opening, Natixis misunderstood requirements on exactness, accuracy
and sincerity as stated by the financial- market regulator's
rules," the Autorite des Marches Financiers said in a statement on
its Web site Wednesday, according to Bloomberg.

Bloomberg recalls Natixis shares slid on Nov. 12, 2008, after
French business daily La Tribune said the bank suffered losses on
market trades in October 2008.  Natixis, to answer to La Tribune's
report, said that at the time its corporate- and investment-
banking unit had "negative revenue" of about EUR250 million
(US$307 million) in that month and made risk provisions of about
EUR250 million in the same period, Bloomberg recounts.

                         About Natixis SA

Natixis SA -- http://www.natixis.com/-- is a France-based bank
offering various services and engaged in different activities.
Its main activities comprise corporate and investment banking,
asset management, receivables management, private equity and
private banking, retail banking and other services.  The Bank is
active in a number of countries in Europe, the Americas, Africa,
Asia and Oceania.  As of December 31, 2008, Natixis SA had a
number of subsidiaries, including Ixis Corporate & Investment
Bank, Ixis Asset Management Group, Coface and Natixis Asset
Management, among others.

                           *     *     *

Natixis SA continues to carry a 'D' bank financial strength rating
from Moody's Investors Service with a stable outlook.


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


PB DOMICILE: Fitch Affirms Rating on Class E Notes at 'BB'
----------------------------------------------------------
Fitch Ratings has affirmed PB Domicile 2006-1 PLC's RMBS notes and
CDSs and assigned Loss Severity ratings.  The Outlooks on all
notes and CDSs are Stable.

Following an update of the agency's rating assumptions for German
residential mortgage pools earlier this year, Fitch has evaluated
the transaction PB Domicile 2006-1 PLC under its new assumptions.

As a result of sharper market value declines and higher default
expectations -- which also reflect Fitch's view on the current and
expected stressed economic environment - loss assumptions for the
residential mortgages pool underlying PB Domicile 2006-1 have
increased through all rating scenarios compared to Fitch's initial
analysis.  However, the good performance of PB Domicile 2006-1 and
increased credit enhancement levels have led Fitch to affirm the
ratings.

The aggregate balance of credit events was 1.2% (EUR30 million) of
the initial pool balance on the last payment date in May 2010.
Losses of only 0.06% (EUR1.5 million) of the initial pool balance
have been allocated to the transaction so far.  All losses have
been covered by synthetic excess spread which is provided by
Deutsche Postbank AG ('A+'/Outlook Stable/'F1+') to an amount of
0.57% (p.a.) of the performing collateral balance.  The majority
of excess spread (EUR39.3 million) was not necessary to cover
losses and was released back to Deutsche Postbank AG.

The rating actions are:

  -- Super senior credit default swap: affirmed at 'AAA'; Outlook
     Stable; assigned 'LS-1'

  -- Class A1+ (ISIN DE000A0GYFH9): affirmed at 'AAA'; Outlook
     Stable; assigned 'LS-1'

  -- Super junior credit default swap: affirmed at 'AAA'; Outlook
     Stable; assigned 'LS-3'

  -- Class A2+ (ISIN DE000A0GYGU0): affirmed at 'AAA'; Outlook
     Stable; assigned 'LS-3'

  -- Class B (ISIN DE000A0GYFJ5): affirmed at 'AA'; Outlook
     Stable; assigned 'LS-3'

  -- Class C (ISIN DE000A0GYFK3): affirmed at 'A'; Outlook Stable;
     assigned 'LS-3'

  -- Class D (ISIN DE000A0GYFL1): affirmed at 'BBB'; Outlook
     Stable; assigned 'LS-3'

  -- Class E (ISIN DE000A0GYFM9): affirmed at 'BB'; Outlook
     Stable; assigned 'LS-5'


QIMONDA AG: Int'l Trade Proceedings Continue in Bankruptcy
----------------------------------------------------------
Bill Rochelle at Bloomberg News reports that U.S. District Judge
T.S. Ellis III ruled on June 28, reversing the bankruptcy court,
that although begun by the owner of a patent, a proceeding before
the International Trade Commission to halt the importation of
goods that infringe patents is exempt from the so-called automatic
stay as an exercise by the government of its policy or regulatory
power.

Bloomberg recounts that U.S. Bankruptcy Judge Robert G. Mayer in
Alexandria, Virginia, ruled in February that proceedings in the
ITC aren't police or regulatory actions and thus are automatically
halted when a defendant files for bankruptcy.  He saw the
automatic stay as applicable because the patent holder, not the
ITC, controlled litigation and settlement.

Bloomberg continues that District Judge Ellis disagreed with Judge
Mayer's understanding of federal law regarding the ITC. He saw the
proceedings as initiated by the agency and ultimately controlled
by the government, thus making ITC proceedings a police or
regulatory action not barred by the automatic stay.

                           The Appeal

Insisting that Section 337 investigations are regulatory actions
excluded from automatic stays, the U.S. International Trade
Commission challenged a bankruptcy judge's decision to halt
the agency's probe of Qimonda AG in the wake of the semiconductor
maker's Chapter 15 filing, according to Law360.

                         About Qimonda AG

Qimonda AG (NYSE: QI) -- http://www.qimonda.com/-- is a leading
global memory supplier with a diversified DRAM product portfolio.
The Company generated net sales of EUR1.79 billion in financial
year 2008 and had -- prior to its announcement of a repositioning
of its business -- approximately 12,200 employees worldwide, of
which 1,400 were in Munich, 3,200 in Dresden and 2,800 in Richmond
(Virginia, USA).  The Company provides DRAM products with a focus
on infrastructure and graphics applications, using its power
saving technologies and designs.  Qimonda is an active innovator
and brings high performance, low power consumption and small chip
sizes to the market based on its breakthrough Buried Wordline
technology.

Qimonda AG commenced insolvency proceedings with a local court in
Munich, Germany, on January 23, 2009.  On June 15, 2009, QAG filed
a petition for relief under Chapter 15 of the Bankruptcy Code
(Bankr. E.D. Virginia Case No. 09-14766).

Qimonda North America Corp., an indirect and wholly owned
subsidiary of QAG, is the North American sales and marketing
subsidiary of QAG.  QNA is also the parent company of Qimonda
Richmond LLC.  QNA and QR filed for Chapter 11 on February 20
(Bankr. D. Del. Lead Case No. 09-10589).  Mark D. Collins, Esq.,
Michael J. Merchant, Esq., and Maris J. Finnegan, Esq., at
Richards Layton & Finger PA, represents the Debtors as counsel.
Roberta A. DeAngelis, the United States Trustee for Region 3,
appointed seven creditors to serve on an official committee of
unsecured creditors.  Jones Day and Ashby & Geddes represent the
Committee.  In its bankruptcy petition, Qimonda Richmond, LLC,
listed more than US$1 billion each in assets and debts.  The
information was based on Qimonda Richmond's financial records
which are maintained on a consolidated basis with Qimonda North
America Corp.


ROHWEDDER AG: ATS Automation Ends Takeover Talks
------------------------------------------------
ATS Automation Tooling Systems Inc. has withdrawn from acquisition
discussions relating to its non-binding indicative offer to the
insolvency administrator of Rohwedder AG.

ATS has a stated strategy of actively pursuing acquisition
opportunities.  The Company is continuing to review a number of
opportunities.  The completion and timing of any transaction
resulting from such review is dependent on a number of factors,
including: completion of satisfactory evaluations and due
diligence, negotiation of agreements and requisite board and other
approvals.  There can be no assurance that any such transaction or
transactions will be completed.

As reported by the Troubled Company Reporter-Europe on June 4,
2010, evertiq said that the Konstanz District Court opened
insolvency proceedings in respect of the assets of Rohwedder.
evertiq disclosed Volker Grub was appointed as the insolvency
administrator.

                            About ATS

ATS Automation -- http://www.atsautomation.com/-- provides
innovative, custom designed, built and installed manufacturing
solutions to many of the world's most successful companies.
ATS employs approximately 2,700 people at 17 manufacturing
facilities in Canada, the United States, Europe, Southeast Asia
and China.  The Company's shares are traded on the Toronto Stock
Exchange under the symbol ATA.

                         About Rohwedder

Rohwedder AG -- http://www.rohwedder.de/-- is a Germany-based
company that supplies automation system solutions for the
assembly, production and testing technology within two segments.
Within the Mechatronics Production Solutions segment the Company
concentrates on Assembly Technologies in Europe and North America,
offering automation solutions for the automotive industry; and
Micro Technologies, which specializes in assembly solutions for
the production of micro products.  The Electronics Production
Solutions segment includes MIMOT Surface Mount Technologies, which
provides surface mount device placement technology products;
Mobile Device Solutions, focusing on automation solutions for the
mobile communication industry; Standard Products, which offers
products through the brand JOT Automation; and Customer Specific
Solutions, providing fully automatic and semiautomatic as well as
manual solutions.  The Company operates through numerous direct
and indirect subsidiaries as well as affiliated companies.


* GERMANY: Landesbank Sector Agrees to Undergo Stress Tests
-----------------------------------------------------------
Gerrit Wiesmann, Patrick Jenkins and David Oakley at The Financial
Times report that German policymakers and bankers were on
Wednesday braced for the possibility of emergency capital
injections as the eight members of the troubled Landesbank sector
agreed to undergo stress tests alongside eight other banks.

According to the FT, one Berlin finance-policy expert said he
expected "considerable turbulence" and one senior banker predicted
"two, three or four" calls for capital from the German
government's Soffin bank-rescue fund.

The FT relates that in Germany, representatives from the
Landesbanken, owned by Germany's regional governments and
municipal savings-banks, and other major banks on Wednesday met
with regulators from the Bundesbank and the Bafin markets
watchdog.

Government officials told the FT that there was agreement to
enlarge the number of stress-tested banks from Deutsche Bank,
Commerzbank and Bayerische Landesbank to 16 banks, covering just
over 50% of the market.

Alongside seven additional Landesbanken, officials expected high-
street bank Postbank, co-op banks DZ and WGZ, and specialist
lenders HRE, Aareal and IKB to join the enlarged group, although
changes were still possible, the FT says.

Berlin's initial resistance was in part based on the fear that
stress testing the Landesbanks would expose the weakness of their
capital cushions, but it has since come to view publication as a
tool to force the banks to take action, the FT notes.

The government's bank-rescue fund could easily step in as it still
has EUR250 billion in credit guarantees and EUR52 billion in
capital to disburse, although Landesbanks may look to state
governments for help if these can help quickly enough, the FT
states.


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G R E E C E
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WIND HELLAS: Has Standstill Agreement Until Nov. 5; Mulls Sale
--------------------------------------------------------------
John Glover at Bloomberg News reports that Wind Hellas
Telecommunications SA said it reached a standstill agreement with
lenders and creditors until Nov. 5.  Bloomberg relates a statement
on Thursday said the company will consider options including its
sale.

Wind Hellas will miss EUR40.5 million (US$50 million) of debt
payments due in the next two weeks, Bloomberg News' Kate Heywood
and Mr. Glover reported on June 30, citing the company's owner
Naguib Sawiris.  According to Bloomberg, Mr. Sawiris said in an
interview that creditors were being asked not to push the company
into default as it seeks to reorganize borrowings for the second
time in seven months.  The company's business is being hurt by
falling consumer confidence and spending after the implementation
of austerity measures to ease the Greek budget deficit crisis,
Bloomberg says.

A EUR17.5 million payment was due Wednesday on the company's
EUR250-million revolving-credit facility maturing June 2012,
Bloomberg discloses, citing Standard & Poor's.  The company must
also make a EUR23 million coupon payment on EUR1.2 billion of
floating-rate notes due October 2012 on July 15, Bloomberg states.

According to Bloomberg, four money managers that hold Wind
Hellas bonds said investors holding at least 50% of the floating-
rate notes formed a steering committee to promote their interests
in debt negotiations.  Bloomberg notes the investors said members
of the committee include York Capital Management LLC, Anchorage
Advisors LLC and Mount Kellet Capital Management LLC.

                         About WIND Hellas

Headquartered in Athens, Greece, WIND Hellas Telecommunications
S.A. -- http://www.wind.com.gr/-- provides mobile voice and data
services to about 6 million consumer and business customers
throughout Greece.  The company enables international roaming in
155 countries for travelling subscribers through agreements with
other carriers.  It also provides cellular and satellite-based
vehicle management and tracking services.  WIND Hellas is owned by
investment firm Weather Investments, a company led by Cairo-based
Orascom Telecom's founder and chairman, Naguib Sawiris.


                           *     *     *

As reported by the Troubled Company Reporter-Europe on June 24,
2010, Standard & Poor's Ratings Services said it lowered its long-
term corporate credit ratings on Greek mobile telecommunications
operator WIND Hellas Telecommunications S.A. and related entities
to 'CC' from 'CCC+'.  S&P said the outlook is negative.

On June 21, 2010, the Troubled Company Reporter-Europe reported
that Fitch Ratings 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 was affirmed at 'C'.


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H U N G A R Y
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BORSODCHEM NYRT: Creditors Back Financial Restructuring Plan
------------------------------------------------------------
MTI-Econews reports that BorsodChem said its creditors approved
its financial restructuring plan on Tuesday.

MTI relates BorsodChem said the approval of the plan -- drawn up
in February by Permira Funds, Vienna Capital Partners (VCP) and
China's Wanhua Industrial Group -- ensures the company a high
degree of financial flexibility and lays the foundation for its
long-term growth.

"In exchange for fresh capital, Wanhua will get about 38pc of
First Chemical Holding, the holding company of BorsodChem owned by
First Chemical (Luxembourg) S.a.r.l. (FCL).  Wanhua will get a
call option to purchase the remaining shares in First Chemical
Holding from the remaining shareholders," the statement said,
according to MTI.

Wanhua, MTI says, will make about EUR140 million available to
BorsodChem which it can use to complete new toluene di-isocyanate
and nitric acid plants as well as for general purposes.

MTI notes BorsodChem CEO Wolfgang Buchele said the approval of the
agreement was expected to significantly improve the profitability
of the company.

                      About BorsodChem Nyrt.

Headquartered in Kazincbarcika, Hungary, BorsodChem Nyrt.
(fka BorsodChem Rt) -- http://www.borsodchem.hu/-- produces
chlorine, chloric alkali, hydrochloric acid, caustic lye and PVC
resins, and additives for the plastic and rubber industries.
The Company exports its products mainly to Western Europe.


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I R E L A N D
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ALLIED IRISH: Secures Interim Charging Order Over Barry's Shares
----------------------------------------------------------------
Vivion Kilfeather at The Irish Examiner reports that Allied Irish
Banks has secured an interim charging order over some 90,000
shares in Barry's (Cork) held by one of its directors as part of
the bank's effort to execute an EUR8 million judgment order
obtained against that director and another businessman.

According to the report, Donagh Barry and Michael McCarthy had not
advanced any defense last May to AIB's application for EUR8
million summary judgment orders against them, and Mr. Justice
Peter Kelly granted the judgment orders.

The applications arose from personal guarantees provided by them
in August 2007, up to a maximum of EUR8 million, over loans
provided to Central Plaza Properties Ltd., the report notes.  AIB
brought the proceedings after advancing loans of some EUR18
million to Central Plaza Properties to develop a zoned site in the
Mahon district of Cork city, the report recounts.

Allied Irish Banks, p.l.c., together with its subsidiaries --
http://www.aibgroup.com/-- conducts retail and commercial banking
business in Ireland.  It also provides corporate lending and
capital markets activities from its head office at Bankcentre and
from Dublin's International Financial Services Centre.  The Group
also has overseas branches in the United States, Germany, France
and Australia, among other locations.  The business of AIB Group
is conducted through four operating divisions: AIB Bank Republic
of Ireland division, Capital Markets division, AIB Bank UK
division, and Central & Eastern Europe division.  In February
2008, the Group acquired the AmCredit mortgage business in the
Baltic states of Latvia, Lithuania and Estonia.  In September
2008, the Group also acquired a 49.99% shareholding in BACB.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Dec. 10,
2009, Fitch Ratings affirmed Allied Irish Banks plc's individual
Rating at 'D/E'.


ANGLO IRISH: Tops List of Biggest Losers in '09, Magazine Says
--------------------------------------------------------------
BreakingNews.ie, citing industry magazine The Banker, reports that
Anglo Irish Bank has topped the list of the biggest losses of any
bank worldwide.

According to the report, the now nationalized bank lost EUR15
billion last year.  The bank also makes the list at number 11 with
losses of EUR3.1 billion last year, the report notes.

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'.


EMERALD MORTGAGES: Fitch Cuts Rating on Class C Notes to 'B'
------------------------------------------------------------
Fitch Ratings has downgraded all three tranches of Emerald
Mortgages No. 4 Plc, following a review of the transaction.

The downgrade follows Fitch's assessment of the deal against the
agency's revised criteria assumptions for Irish RMBS transactions
and Fitch's expectations of the future performance of the
underlying assets in the deal.  The transaction comprises
collateral originated by EBS Building Society ('BBB-'/Rating Watch
Positive/'F2').  The revised criteria include higher market value
decline assumptions, both due to expectations on house price
declines and also a forced-sale discount on foreclosed properties.
In addition Fitch has increased its base default probability
assumptions for all loans particularly those with higher loan-to-
value ratios.

The downgrades also reflect the 34% house price decline seen in
Ireland since the market peaked in Q406 and up to Q110.  Fitch
expects a peak-to-trough house price decline in Ireland of 45%.
Fitch includes this expectation within its MVD assumption along
with a forced-sale discount.  Both of these are applied on top of
an updated indexed-valuation of the loans.  Fitch further stresses
the expected house price decline assumption in higher rating
categories.  The result of this is higher expected losses on
foreclosed loans and this will particularly be the case for the
large proportion of high LTV mortgage loans included within the
portfolio.  A total 39% of the pool currently has an indexed
current LTV of over 90%.  The downgrades of the notes reflect this
concern, and Fitch's view that the transaction is likely to
experience a back-loaded default timing, placing more stress on
the most junior notes.

The downgrade also reflects the deteriorating performance of
Emerald 4.  As of the last payment date, loans three or more
months in arrears increased to 3.8% of the outstanding collateral
balance as end of May 2010 from 2.2% as end of May 2009.  This is
comparable with other prime Irish RMBS, however, the higher LTV
profile of the pool means that Fitch expects higher losses are
likely to be realized.  In addition to a larger number of high LTV
loans, Fitch expects that in a downturn scenario that these
borrowers are likely to exhibit a lower willingness to pay and the
performance of the pool will deteriorate more than a lower LTV
pool.

Even though arrears have increased over the last two years, no
loans have been foreclosed to date.  This is a common theme across
Irish RMBS due to forbearance measures instigated by the Irish
government that are being adopted by all Irish lenders.  Fitch
believes that ultimately the lender will either have to foreclose
on some properties or restructure the loans.  Both these courses
of action could result in a loss to the transaction.  For this
reason, Fitch has decided to give limited credit in its analysis
to recent foreclosure performance as it believes that this is not
indicative of future performance in a stressed environment and has
used its standard foreclosure frequency assumptions for loans
currently in arrears.

The transaction benefits from a total return swap from Rabobank
that guarantees a spread of 1.25% over Euribor.  This guaranteed
spread provides significant excess spread that can be used to
cover any losses on foreclosed loans.  However, with no loans
foreclosed the cash generated by this swap has to date been lost.

The rating actions are:

  -- Class A (ISIN XS0260593727) downgraded to 'AA' from 'AAA';
     Outlook Negative; assigned Loss Severity Rating of 'LS-
     1'

  -- Class B (ISIN XS0260595185) downgraded to 'BBB' from 'AA';
     Outlook Negative; assigned 'LS-4'

  -- Class C (ISIN XS0260595854) downgraded to 'B' from 'BBB';
     Outlook Negative; assigned 'LS-4'


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


FIAT SPA: Wants Unions to Support Labor Proposals
-------------------------------------------------
Paul Betts and Ben McLannahan at The Financial Times report that
Fiat group has issued an ultimatum to its Italian unions.
According to the FT, Fiat is telling the unions that they have
until the end of September to decide whether to modernize their
labor practices or risk seeing the company increasingly shift
production to other countries.

The FT recalls the company asked its unions to vote on a plan to
rationalize and improve labor relations and practices and 62% of
Pomigliano's 5,300 workers voted in favor last week.  For Fiat
this is not enough, the FT notes.  According to the FT, the
company feels 62% cannot guarantee that the changes it is seeking
will be introduced in a reliable, long-term fashion.  It wants the
recalcitrant unions to commit to its proposals by the end of
September because it cannot afford to wait forever for them to
make up their minds and delay its overall five-year strategy, the
FT says.

On June 25, 2010, the Troubled Company Reporter-Europe, citing the
FT, reported that Fiat said it would be impossible to find an
agreement with Fiom, the main leftwing metal workers' union
opposed to the proposals.  The FT disclosed Fiat said it would
hold talks with the other unions that had accepted management's
demands as a condition for transferring production from Poland of
the Panda model.  Fiom made clear ahead of the vote that
regardless of the result it would not accept the accord reached by
Fiat and the other unions, the FT said.  On June 18, 2010, the
Troubled Company Reporter-Europe, citing the FT, reported that
Fiom leaders said Fiat's demands, including possible sanctions
against absenteeism and strikers, broke existing labor contracts
and were unconstitutional.

                          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.


===================
K A Z A K H S T A N
===================


EURASIAN BANK: Moody's Assigns 'B1' Long-Term Currency Rating
-------------------------------------------------------------
Moody's Investors Service has assigned a B1 long-term local
currency debt rating to the local currency-denominated bond issue
of Eurasian Bank (Kazakhstan).  The bond represents a senior
unsecured claim on the bank.  The outlook on local currency debt
rating is negative, in line with the negative outlook on the
bank's long-term bank deposit ratings.

The total volume of Eurasian Bank's senior unsecured bond issue is
KZT22 billion (approximately US$149 million), of which
KZT4 billion is already placed, and is listed at Kazakhstan Stock
Exchange; its maturity is seven years, and the interest rate is
fixed at 13% per annum.  The obligations of Eurasian Bank to make
payments under the senior unsecured bond issue will rank -- at all
times -- at least pari-passu with the claims of all other
unsecured and unsubordinated creditors of the bank, except for
those claims that are preferred by any relevant law.

Moody's adds that the negative outlook on Eurasian Bank's debt and
deposit ratings reflects continued pressure on the bank's credit
profile from the still tough credit conditions in Kazakhstan.  The
rating agency notes that the bank's ratings may face downward
pressure from any of these developments: (i) a failure to maintain
adequate capital ratios, as the bank's current level of loan loss
provisioning may not be sufficient to absorb the emerging credit
losses without depleting its capital cushion; (ii) a failure to
reduce concentration in the loan book (20 largest exposures
accounted for more than 400% of the bank's Tier 1 capital as at Q1
2010); or (iii) the bank's inability to improve revenue-generation
capacity, which will further affect its capital (the bank has been
loss-making on a pre-provision basis in 2009).  The plans of the
bank's shareholders to make a capital injection of
US$50-100 million in mid-2011, if realized, would alleviate some
of the pressure on the bank's ratings.

At the same time, if Eurasian Bank's borrower concentration is
significantly reduced and its profitability on a pre-provision
basis is restored, Moody's would consider changing the rating
outlook to stable.

Moody's previous rating action on Eurasian Bank was on 24 February
2009, when the rating agency concluded the ratings review for
possible downgrade and consequently left the bank's BFSR unchanged
at E+ (mapping to a Baseline Credit Assessment of B1); confirmed
the bank's local and foreign currency deposit ratings at B1; and
assigned the negative outlook to the bank's deposit ratings.

Headquartered in Almaty, Kazakhstan, Eurasian Bank reported total
consolidated audited assets of KZT321 billion (US$2.2 billion) at
31 December 2009, while IFRS-compliant net loss for 2009 amounted
to KZT13 billion (US$87 million).


===================
K Y R G Y Z S T A N
===================


ASIAUNIVERSALBANK JSC: Moody's Withdraws 'Caa2' Currency Ratings
----------------------------------------------------------------
Moody's Investors Service has withdrawn all ratings of
Kyrgyzstan's AsiaUniversalBank as the rating agency believes it
lacks adequate information to maintain the ratings.  Prior to the
rating withdrawal, AUB's long-term local and foreign currency Caa2
ratings had been on review for a possible further downgrade, while
the E stand-alone bank financial strength rating, which mapped to
a Caa2 on the long-term scale, carried a stable outlook.

Moody's commented that it was not able to conclude its rating
review due to lack of relevant information.  Moody's notes that on
20 June 2010 AUB was nationalized in accordance with the plan for
the bank's financial rehabilitation.  In accordance with the plan,
the National Bank of the Kyrgyz Republic is to provide liquidity
support in the volume of KGS1.5 billion (US$32.4 million) to the
bank for the term of six months, while the Ministry of Finance is
to recapitalize the bank following its nationalization.  Moody's
also notes that part of AUB's operations, including deposit
withdraws by corporate customers, have remained suspended since
early April 2010 by the National Bank of the Kyrgyz Republic.

Moody's will no longer maintain rating coverage or publish
research on the credit ratings.  These ratings have been
withdrawn:

  -- Bank Financial Strength Rating of E, stable outlook

  -- Foreign and domestic long-term Bank Deposit Ratings of Caa2,
     on review for possible downgrade

  -- Foreign short-term Deposit Rating of Not Prime

Moody's previous rating action on AUB was on 14 April 2010 when
the rating agency downgraded the bank's long-term deposit ratings
to Caa2 from Caa1.  The long-term deposit ratings were placed on
further review for possible further downgrade.  At that time, the
E stand-alone financial strength rating was affirmed with a stable
outlook.

Headquartered in Bishkek, AUB had IFRS total assets of
KGS22.3 billion (US$505 million) and reported shareholders' equity
(including minority interests) of KGS2.9 billion (US$66 million)
as at YE2009.  As at YE2009 AUB operated 36 full-service branches
and 53 point-of-sales across the Kyrgyz Republic.


===================
L U X E M B O U R G
===================


TRUVO LUXEMBOURG: U.S. Unit Files for Bankruptcy; to Sell Assets
----------------------------------------------------------------
Kristina Doss at Dow Jones Daily Bankruptcy Review reports that
Truvo USA LLC filed for bankruptcy protection (Bankr. S.D.N.Y.
Case No. 10-13513) on July 1, 2010, after striking a deal with
senior lenders holding 70% of the company's outstanding loans in a
debt-for-equity swap, according to court papers.

According to Dow Jones, Chief Financial Officer Marc C. F.
Goegebuer said in court papers Thursday that the operating
subsidiaries have been changing their focus from print-centric
directory businesses to the Internet.  But revenues generated by
the subsidiaries' online products have not been "sufficient" to
offset declines in their print business and the company's debt.

The privately owned company and its operating subsidiaries, known
as the Truvo Group, are "highly leveraged," with US$1.9 billion of
"total external financial debt," Mr. Goegebuer said, according to
Dow Jones.

"The debtors believe that a Chapter 11 restructuring, combined
with a sale of TUSA . . . to a newly formed entity to be owned by
certain of the debtors' creditors, will position the Truvo Group
as a viable long-term provider of printed, online and mobile
products," he said.

Dow Jones says Truvo USA listed having between US$500 million and
US$1 billion in assets and more than US$1 billion in debt in its
bankruptcy petition filed Thursday with the U.S. Bankruptcy Court
in Manhattan.

Four other holding companies -- Truvo Parent Corp., Truvo
Intermediate LLC, Truvo Subsidiary Corp., and Truvo Acquisition
Corp. -- have also filed for bankruptcy protection.  Judge Arthur
J. Gonzalez handles the cases.

Truvo USA LLC publishes print and online directories through its
operating subsidiaries.

The operating subsidiaries have not sought protection under
Chapter 11 protection or any other insolvency regime, according to
Goegebuer.

Dow Jones notes the Truvo debtors are owned Truvo Luxembourg
S.a.r.l, which is not a debtor in these Chapter 11 proceedings.
Substantially all of the equity in Truvo Luxembourg is owned by
funds advised by Apax Partners and Cinven Group Ltd.


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


AMSTEL SECURITISATION: S&P Lifts Rating on Class E Notes to BB+
---------------------------------------------------------------
Standard & Poor's Ratings Services raised and removed from
CreditWatch negative its ratings on Amstel Securitisation of
Contingent Obligations 2006-1 B.V.'s class C, D, and E credit-
linked floating-rate notes.  S&P also affirmed and removed from
CreditWatch negative its ratings on classes A+1, A+2, A, and B.

S&P has taken these rating actions following its analysis of the
effect that its updated corporate collateralized debt obligation
criteria have on these ratings.

On Sept. 17, 2009, S&P placed on CreditWatch negative its ratings
on 1,626 European cash flow, hybrid, and synthetic CDO
transactions, in tandem with the publication of S&P's updated
criteria mentioned above.

In this review, S&P considered both the updated criteria and its
assessment of any credit deterioration or improvement the
portfolio has experienced since its last review.

The purpose of this revolving balance-sheet transaction is to
transfer the credit risk associated with a EUR7 billion portfolio
of exposures on counterparties in derivative agreements that The
Royal Bank of Scotland N.V. (formerly known as ABN AMRO Bank N.V.)
had initially entered into.  RBS N.V. entered into a senior credit
default swap with a senior counterparty and a junior CDS with
Amstel SCO 2006-1.  At the same time, Amstel SCO 2006-1 issued
credit-linked notes to back its exposure under the CDS with RBS
N.V.

The revolving period ended in December 2009 and the portfolio has
since experienced, in S&P's view, a significant and unexpected
decrease of its notional amount, to EUR2.1 billion from
EUR7.0 billion.  The reductions in the portfolio corresponded
primarily to migrations and novations of the relevant counterparty
exposures in connection with an exceptional reorganization
involving RBS N.V. as CDS counterparty; and, secondarily, to
standard amortizations.

Any reduction in the amount of the underlying portfolio, aside
from contingent cash settlement payments, is due as principal
payments under the notes once the revolving period ends.  In
accordance with the redemption method, the reduction has been
applied to decrease the notional amount of the senior CDS and pay
down the principal amount of the class A+1 and A+2 notes on a pro
rata and pari passu basis.  This explains why none of the other
classes of notes has been repaid yet.

As a result, the protection provided by subordination under each
class of notes has significantly increased compared with the
levels available at closing.  It is further amplified by the
credit support provided in the form of cash contributions RBS N.V.
pays under the CDS.

S&P's rating actions have taken into account the various forms of
available credit support, the new portfolio characteristics and
concentrations reflected in S&P's supplemental tests, and the
sensitivity of each class of notes to stressed recoveries and
correlations.

For classes A+1, A+2, A, and B, S&P's assessment indicated that
there was sufficient credit enhancement to support the stressed
scenario loss at the current rating levels.  Accordingly, S&P has
affirmed and removed from CreditWatch negative its ratings on
these notes.

For classes C, D, and E, the current credit enhancement proved
sufficient, in S&P's view, to support ratings higher than their
respective current ratings, and S&P consequently raised and
removed from CreditWatch negative its ratings on these classes of
notes.

             Original       Current
             principal    principal       CE (%)    CE (%)
Class          amount       amount*     (closing) (current)
-----       ---------    ----------     --------- ---------
Sr CDS   2,144,694,813   449,797,490
A+1        447,000,000    93,747,316       12.14    40.39
A+2      3,568,305,187   748,364,731       12.14    40.39
A          518,000,000   518,000,000        4.74    16.09
B           70,000,000    70,000,000        3.74    12.81
C           35,000,000    35,000,000        3.24    11.16
D           49,000,000    49,000,000        2.54     8.87
E           70,000,000    70,000,000        1.54     5.58
F           98,000,000    98,000,000         N/A      N/A
Cash reserve         0    19,600,000         N/A      N/A

                    CE -- Credit enhancement.
                      N/A -- Not applicable.
                  * As of the end of May 2010.

Credit enhancement levels take into account the cash contributions
paid by RBS N.V. under the CDS.

                           Ratings List

    Amstel Securitisation of Contingent Obligations 2006-1 B.V.
  EUR1,287 Million and US$4,733 Million Credit-Linked Floating-
     Rate Notes (Including a Further Issuance of EUR152 Million
                        and US$1,715 Million)

       Ratings Raised and Removed From CreditWatch Negative

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

     Ratings Affirmed and Removed From CreditWatch Negative

                                  Rating
                                  ------
     Class                To                   From
     -----                --                   ----
     A+1                  AAA                  AAA/Watch Neg
     A+2                  AAA                  AAA/Watch Neg
     A                    AAA                  AAA/Watch Neg
     B                    AA                   AA/Watch Neg


DSB BANK: License Should Have Stricter Conditions, Wellink Says
---------------------------------------------------------------
Maud van Gaal and Jeroen Molenaar at Bloomberg News report that
Dutch Central Bank Governor Nout Wellink said stricter conditions
should have been attached to the banking license granted to DSB
Bank NV, which went bankrupt last year.

"The license should not have been granted in 2005 in the way we
granted it," Mr. Wellink, who also sits on the European
Central Bank's Governing Council, told members of the Dutch
parliament in The Hague Wednesday, according to Bloomberg.  "We
should have taken the chance to add requirements with regard to
the governance structure.  Whether the license could have been
denied, is questionable."

Bloomberg relates a government-commissioned committee said Tuesday
that the Dutch central bank underestimated flaws in management at
DSB when it granted the lender a banking license in 2005.
Bloomberg notes the committee said in the years leading up to the
collapse, the regulator didn't act forcefully enough.

On Oct. 20, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported that the Amsterdam court on Oct. 19
declared DSB bankrupt after its owner failed to find a buyer.
Bloomberg disclosed the Dutch central bank took control of DSB on
Oct. 12 as an outflow of capital threatened the company's
existence.

DSB Bank -- http://www.dsbbank.com/-- is a fully licensed bank in
the Netherlands, providing mortgages, consumer loans, savings and
insurance products to retail clients.  The bank has a leading
market share in the Dutch market for consumer loans.  DSB Bank
also has operations in Belgium and Germany.  DSB Bank, established
in 1975, is privately owned by Dirk Scheringa, currently CEO of
DSB Bank, Chairman of the Executive Management Board.  Mr.
Scheringa is also 100% owner of AZ Alkmaar football club, which
plays in the Dutch Premier League and president of the Scheringa
Museum for Magic Realism, an international collection of more than
500 works of art.


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


INTERNATIONAL INDUSTRIAL: Moody's Junks Deposit Ratings From 'B3'
-----------------------------------------------------------------
Moody's Investors Service has downgraded these ratings of
International Industrial Bank: long-term debt and deposit ratings
to Caa2 from B3, and bank financial strength rating to E from E+.
The Caa2 long-term ratings have been placed on review with
direction uncertain, while the E BFSR and Not-Prime short-term
debt and deposit ratings carry stable outlook.

The downgrade of IIB's long term deposit ratings as well the BFSR
capture the fact that the bank has defaulted on its customer
transaction obligations upon failing to (i) generate sufficient
cash from its loan book to meet such obligations and (ii)
refinance its short-term funding from the Central Bank of Russia
(CBR) totaling to RUB31 billion as of 1 June 2010.  Moody's
understands that the bank is currently negotiating the
rescheduling of its current financing with the CBR under new terms
and conditions, a development that the rating agency will continue
to closely monitor.

Moody's notes that the rating review with direction uncertain
captures the present uncertainty with regard to the future of IIB.
On the one hand, Moody's would likely upgrade IIB's debt and
deposit ratings if the bank is able to refinance its facilities
with the CBR, balance its liquidity profile and/or finds adequate
collateral to pledge under new facilities.  On the other hand, if
the bank fails to meet CBR requirements for refinancing old
facilities, thus raising the risk of having its banking license
withdrawn, this would merit further rating downgrades.

Moody's previous rating action on IIB was on 17 June 2010 when the
rating agency downgraded the bank's debt and deposit ratings to B3
from B1 and placed it on review for possible further downgrade.

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.


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


CAJA GENERAL: Fitch Affirms 'BB+' Preference Share Rating
---------------------------------------------------------
Fitch Ratings has affirmed Caja General de Ahorros de Granada's
Long-term Issuer Default Rating 'BBB+', Short-term IDR at 'F2',
Individual Rating at 'C', Support Rating at '3' and Support Rating
Floor at 'BB+'.  The Outlook for the Long-term IDR is Stable.

At the same time the agency has affirmed Caja Granada's senior
debt at 'BBB+', preference shares at 'BB' and state-guaranteed
debt at 'AA+'

The ratings reflect Caja Granada's strong retail franchise in its
home territory, which provides it with a solid and low-cost
deposits base, its proactive management, adequate pre-impairment
operating profitability and improved capital ratios.  They also
factor in higher structural costs from its presence in rural
areas, risk concentration to the Spanish real estate and
construction sectors, asset quality deterioration and margin
pressure.

On 2 June 2010, Caja Granada, Caja de Ahorros de Murcia
('A+'/Stable), Caja de Ahorros y Monte de Piedad de Las Baleares
('BBB'/Stable) and Caixa d'Estalvis del Penedes ('BBB+'/Rating
Watch Negative) publicly announced their agreement to integrate
their businesses through an Institutional Protection Scheme (IPS)
with a full cross-guarantee mechanism regarding liquidity and
solvency.  This operation is still subject to various approvals.

The Stable Outlook reflects Fitch's view that, despite Spain's
complex operating environment, Caja Granada's performance should
prove resilient due to its strong retail franchise, wide net
interest margin on the back of a large low cost deposit base, cost
control, large generic reserves and the potential to make
extraordinary gains.  However, downside ratings risk would arise
from a sharper-than-anticipated deterioration in asset quality and
profitability or from a failure to maintain adequate capital
levels.  At the same time, Fitch notes that there could be rating
implications for Caja Granada depending on the developments of the
announced IPS.

Caja Granada's pre-impairment operating profitability held up well
in 2009, but loan impairment charges remained high due to a rise
in impaired loans.  Some write-downs on securities and provisions
for higher foreclosed assets were partly offset by one-off gains.
However, good cost control, interest rate floors on most of the
caja's loan book, generic reserves and potential one-off gains
should help maintain acceptable results.

Caja Granada is mainly at risk from loans (77% of end-2009
assets), while the exposure to construction/real estate sectors
accounted for 23% of total lending.  The caja's risk profile
benefits from slowing loan growth since 2007, limited expansion
outside its home region and granularity provided by 59% of its
loans being granted to individuals (with 81% in residential
mortgages with an average LTV of 60%).  At end-Q110, the
impaired/total loans ratio was 5.25% (9% including foreclosed
assets) with a good 69% coverage.

Liquidity is supported by a sound customer deposit base (74% of
loans at end-Q110) and sizeable ECB-eligible assets.  Capital
ratios improved in 2009 (with a tier 1 capital ratio of 8.7% at
end-2009), helped by balance sheet deleveraging and EUR100m of new
preference shares.

Caja Granada was Spain's 22nd-largest savings bank by end-2009
assets.  Its retail activities are largely based in the Andalusian
provinces of Granada and Jaen.

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


IM CAJA: Fitch Affirms Rating on Class E Notes at 'CCC'
-------------------------------------------------------
Fitch Ratings has taken various rating actions on IM Caja Laboral
1 Fondo de Titulizacion de Activos and IM Caja Laboral 2 Fondo de
Titulizacion de Activos, two Spanish RMBS transactions, which
contain loans originated by Caja Laboral Popular
('A+'/Stable/'F1').

Reserve fund draws in each of the last four interest payment dates
and the increased risk of potential losses due to a high weighted
average original loan-to-value have been the main driver of
negative rating action in Laboral 2.  At origination, 79% of
Laboral 2's pool had an OLTV above 85%.  As a result, the assets
are more exposed to the house price decline seen thus far in
Spain.  Fitch's analysis has taken into account the agency's
current view on the Spanish housing market of a 25%-30% decline
from peak.

The transaction features a provisioning mechanism through which
defaults (defined as loans in arrears by more than 12 months) are
written off using available excess revenue.  As of June 30, 0.85%
of the initial pool balance has been provisioned for.  The
replenishment of the reserve fund, currently at 87% of its target
amount of EUR24.6 million will be highly dependent on future
recoveries and on the speed of arrears rolling into defaults.
Fitch's concerns on Laboral 2's ability to generate enough excess
cash to cover new potential defaults and the expectation of
further reserve fund draws are reflected in the revision of the
Outlook to Negative on the class B and C notes.

Amortization on the notes is currently sequential.  This has
contributed to credit enhancement growth since issuance.  However,
following the reserve fund draws Laboral 2 CE growth has been
limited on the class A and B notes to 17.67% (16.7% on issue date)
and 10.02% (9.7%) respectively, while CE on class C has reduced to
3.9% from 4.1%.

The Laboral 1 pool, on the other hand, has experienced low levels
of arrears and no reserve fund draws to date.  In addition, the
pool has a less risky underlying asset profile.  These factors
have driven positive rating action in the transaction.

At origination, 42.1% of the Laboral 1 pool had an OLTV below 50%.
This leaves the transaction with a strong buffer to further
declines in the Spanish housing market.  Loans in arrears by more
than three months have remained low.  As of the April 2010 IPD
such arrears were 0.18% of the current pool balance after peaking
at 0.32%.  No new defaults have been reported since the November
2009 collection period.  Similarly to Laboral 2, the transaction
would provision for new defaults by using available excess spread.
Fitch has no concerns in this case with regards to the
transaction's ability to continue to generate excess revenue.
This is reflected in the revision of the Outlook to Positive on
the class C notes.

A fully funded reserve fund of EUR10.8 million and a sequential
redemption on the notes have allowed the CE of class A, B, C and D
to build up since issuance.  As of the April 2010 IPD CE was 9.2%
(6.05% at closing), 7.38% (4.86%), 4.86% (3.2%) and 1.82% (1.2%)
respectively.

IM Caja Laboral 1

  -- Class A (ISIN ES 0347565006): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity rating of 'LS-1'

  -- Class B (ISIN ES 0347565014): upgraded to 'AA+' from 'AA';
     Outlook Stable; assigned 'LS-1'

  -- Class C (ISIN ES 0347565022): affirmed at 'A+'; Outlook
     revised to Positive from Stable; assigned 'LS-1'

  -- Class D (ISIN ES 0347565030): affirmed at 'BBB+'; Outlook
     Stable; assigned 'LS-1'

  -- Class E (ISIN ES 0347565048): affirmed at 'CCC'; assigned
     Recovery Rating of 'RR3'

IM Caja Laboral 2

  -- Class A (ISIN ES0347552004): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity rating of 'LS-1'

  -- Class B (ISIN ES0347552012): affirmed at 'A'; Outlook revised
     to Negative from Stable; assigned 'LS-3'

  -- Class C (ISIN ES0347552020): downgraded to 'B' from 'BB+';
     Outlook Negative; assigned 'LS-3'


VALENCIA: Sells World Cup Players to Get Breathing Space
--------------------------------------------------------
Alex Duff at Bloomberg News reports that Valencia is cashing in on
the form of Spain's World Cup players to stay in business.

According to Bloomberg, the soccer club, reeling from a credit
crunch and two years of recession in Spain, agreed to trade
midfielder David Silva to Manchester City on Wednesday, five weeks
after releasing striker David Villa to Barcelona for EUR40 million
(US$49 million).  Bloomberg relates newspaper Marca reported
June 23 that the club will sell forward Juan Mata to Barcelona for
EUR20 million.

The transfer fee for Mr. Silva wasn't revealed but U.K. press
reports say it may be about GBP25 million (US$37.5 million),
Bloomberg notes.

Valencia is among teams that need to slash costs after it
racked up EUR550 million of debt through June 2009, more than six
times its annual income for the previous year, Bloomberg says,
citing a report on Spanish soccer finances by Barcelona University
professor Jose Maria Gay.  Bloomberg recalls last year, the club
halted work on a new stadium when it was denied more credit by
Bancaja, a Spanish savings bank.

"Valencia's debt is deadly, it's technically bankrupt,"
Bloomberg quoted Mr. Gay as saying.  "It's selling its three best
players to get some breathing space while it rebuilds."

Concerned with clubs' debts, the Spanish government plans to
install a financial regulator for its domestic league, secretary
of state for sport Jaime Lissavetzky said May 24, Bloomberg
recounts.

Valencia Club de Futbol (also known as Valencia C.F., Valencia or
Los Che) is a Spanish professional football club based in
Valencia, Spain.  They play in La Liga.


===========
T U R K E Y
===========


ALBARAKA TURK: S&P Gives Stable Outlook; Affirms 'BB/B' Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it has revised its
outlook on Albaraka Turk Katilim Bankasi AS to stable from
positive because S&P believes the bank's loan growth has weakened
capitalization.  At the same time, S&P affirmed its 'BB/B' long-
and short-term counterparty credit ratings and its 'trAA-/trA-1'
long- and short-term Turkey national scale ratings.

"The outlook revision reflects S&P's opinion that Albaraka Turk
has pursued more rapid loan growth than S&P anticipated, weakening
capitalization," said Standard & Poor's credit analyst Goeksenin
Karagoez.

S&P's outlook revision means that the probability of an upgrade is
less likely.

The ratings on Albaraka Turk reflect its good track record in
Turkey's participation (Islamic) banking market, adequate funding
supported by a strong but short-term deposit franchise, and
limited market risk.  The ratings are constrained by the high-risk
operating environment in the Republic of Turkey (foreign currency
ratings BB/Positive/B, local currency ratings BB+/Positive/B), the
bank's small size and market share, high loan leverage, and above-
average credit risk due to its large exposure to small and midsize
enterprises.

Albaraka Turk, like most of its peers in the interest-free banking
segment, continued to rapidly extend loans in 2009, mainly toward
riskier midsize Turkish enterprises.  Indeed, loans increased more
than 25% last year, despite tough economic conditions.  Although
the bank's current asset quality indicators are adequate, S&P
believes that this type of rapid growth could result in more
problematic loans.

The rapid growth came at the expense of capitalization and the
bank's capital adequacy metrics are currently barely adequate, in
S&P's view.  S&P does not expect shareholders to inject additional
capital in the near term, and S&P believes that internal capital
generation will remain barely adequate to support the bank's
projected asset growth.

Albaraka Turk is 56.6% owned and controlled by Bahrain-based
Albaraka Banking Group (B.S.C.) (BBB-/Stable/A-3).  It is ABG's
largest subsidiary and S&P classify the bank as strategically
important to its parent.  Albaraka Turk represented 32.7% and more
than 42.7% of total group assets and profits in 2009,
respectively.  ABG has shown a strong commitment to its
subsidiaries, notably through ongoing capital support and risk
management discipline.  However, S&P believes that in a worst-case
scenario, ABG's capacity to provide extraordinary support to
Albaraka Turk is somewhat limited because the subsidiary
represents a sizable portion of the group.  Therefore, the ratings
on Albaraka Turk reflect its stand-alone credit profile and do not
factor in uplift for extraordinary support.  At the same time, S&P
believes that the ownership structure and resulting ongoing
support are positive factors that S&P incorporate into the bank's.

"The stable outlook reflects S&P's belief that Albaraka Turk will
maintain its asset quality and capitalization at current levels,"
said Mr. Karagoez.

S&P could lower the ratings on the bank if it fails to maintain
adequate quality and capitalization.  An upgrade would require a
significant improvement in the bank's capitalization, further
diversification of its loan book, and less ambitious balance sheet
growth.


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


FERREXPO PLC: S&P Assigns 'B' Long-Term Corporate Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its 'B'
(foreign currency) and 'B+' (local currency) long-term corporate
credit ratings to Ukraine-based iron ore producer Ferrexpo PLC.
At the same time, S&P assigned a 'B' short-term corporate credit
rating to Ferrexpo.  The outlook is stable.

"The ratings on Ferrexpo reflect S&P's opinion of the group's weak
business risk profile and aggressive financial risk profile," said
Standard & Poor's credit analyst Alex Herbert.

Supporting factors include the mid-cost position of the group's
mining operations, long reserve life, proximity to European steel
markets, and attractive industry characteristics including
currently high iron ore prices.  Furthermore, the group is focused
on exports, and profitability is healthy.  In addition, in S&P's
view, Ferrexpo has a moderate financial policy and limited
leverage, which provides it with the financial flexibility to
execute its growth strategy.  S&P also takes a positive view of
the group's public listing, although S&P considers ownership to be
somewhat concentrated, with Ferrexpo's CEO Mr. Zhevago owning 51%
of the shares.

Constraining factors include increased volatility in iron ore
prices, industry cost pressures, and capital intensity.
Furthermore, Ferrexpo is a small producer that typically sells the
majority of its volumes in Europe, although it also sells into
Asia.  The group's sales prices are also typically set by
reference to other producers, which are moving to quarterly
pricing.  Ferrexpo has a narrow diversity of operations in S&P's
view, including a concentration on a single commodity, only one
operating mine complex, and two major customers that account for
about one-half of Ferrexpo's sales volumes.  The group's assets
are all located in the Ukraine (foreign currency B/Stable/B, local
currency B+/Stable/B), where country risks--including a very weak
banking sector, political instability, and delays in value added
tax receipts -- are a constraint, although in S&P's opinion,
Ferrexpo manages these risks adequately.

In S&P's view, Ferrexpo will be able to maintain credit metrics
commensurate with the ratings.  In S&P's credit scenario, S&P
assumes that high iron ore prices will moderate over time, and
that capex will rise as the group invests in and develops its
operations.  S&P nevertheless envisages moderate leverage and
satisfactory credit metrics, and consider ratios of FFO to
adjusted debt of 30% and adjusted debt to EBITDA of 2.5x to be in
line with the ratings.

S&P anticipates upward rating potential of one notch in respect of
the foreign currency rating on Ferrexpo in the event that S&P
raises S&P's ratings and transfer and convertibility assessment on
the Ukraine.  Further rating upside for the ratings on Ferrexpo is
constrained by S&P's view of the risks of its limited
diversification -- in particular, country risks in the Ukraine
where the group's operations are located, volatile iron ore
prices, and capital intensity.

S&P does not anticipate downward rating pressure, but this could
develop if, for example, there was a sharp downturn in iron ore
prices at a time when the group was undertaking significant capex,
leading to weaker credit ratios than indicated.  S&P does not
factor in debt-financed acquisitions.


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


BAKER LTD: Administrators Find Buyer; Around 70 Jobs Saved
----------------------------------------------------------
Smith & Williamson's team of administrators have safeguarded
around 70 jobs after securing a buyer for a troubled car franchise
in Cheshire.

Baker (Crewe) Ltd., trading as Grasmere Vauxhall, operated two
sites in Cheshire -- Brindley Way, Lyme Green Business Park,
Macclesfield, and Macon Way in Crewe.

Retail motor trade specialists David Blenkarn and Greg Palfrey of
accountancy and business services group Smith & Williamson were
appointed administrators when it became apparent the company was
struggling financially.

Both dealerships have now been sold to Vertu Motors Plc, which is
the 8th largest motor retailer in the UK and listed on the
Alternative Investment Market.

The dealerships will operate under the Bristol Street Motors
brand.

Baker (Crewe) Ltd. also operated two separate body shops and three
small service centers, employing 24 people between them, which
have been closed while the administrators seek buyers.

The body shops are in Crewe and Macclesfield, with the service
centres in Cheadle, Nantwich and Congleton.

Mr. Blenkarn, who is based at Smith & Williamson's Southampton
office, said: "We were appointed administrators to Baker (Crewe)
Ltd, trading as Grasmere Vauxhall, after it became apparent the
company was struggling financially because of the tough economic
climate.  The two dealerships have been sold to Vertu Motors and
will in future operate under the Bristol Street Motors name.  We
are delighted that we have been able to preserve a major part of
the business and safeguard the livelihoods of some 70 employees by
selling the two dealerships."

He added: "The company also operated two separate body shops and
three small service centers which have now closed."


BP PLC: Bankruptcy Can Rid of "Perpetual" Liability, Experts Say
----------------------------------------------------------------
Experts looking at a hypothetical bankruptcy filing by BP PLC on
an ABI media teleconference on June 29 said that BP has several
options to explore in dealing with the worst environment disaster
in U.S. history, but the oil giant may consider bankruptcy if it
faces a never-ending flow of claims.

                           About BP Plc

BP Plc -- http://www.bp.com/-- is one of the world's largest
energy companies, providing its customers with fuel for
transportation, energy for heat and light, retail services and
petrochemicals products for everyday items.

Bloomberg's Businessweek notes BP represents 5.6% of the FTSE 100
Index, the second biggest weighting of the top U.K.-listed
companies behind London-based bank HSBC Holdings Plc.  BP also
represents the biggest portion of the FTSE 350 Oil & Gas Producers
Index at 31%, and the MSCI EAFE/Energy Index at 16%.


BRITISH AIRWAYS: Unite to Take Neutral Stance Over New Pay Offer
----------------------------------------------------------------
British Airways Plc's cabin-crew union will depart from its
previous stance by putting the company's latest pay offer to
members without recommending they reject it, Steve Rothwell at
Bloomberg News reports, citing a person with knowledge of the
matter.

According to Bloomberg, the person said the 12,000 flight
attendants will be asked to vote on the package in a ballot
conducted by Electoral Reform Services Ltd. as early as the
weekend.

Bloomberg says BA Chief Executive Officer Willie Walsh's latest
offer would boost allowances for existing cabin crew once new
recruits join their ranks this autumn, drop plans to reduce
benefits in order to fund higher staffing levels on some flights,
and lift salaries for two years starting in 2011.

Bloomberg notes the person said Unite won't directly back the new
proposals because British Airways hasn't compromised on the
punitive measures and the labor group will still look at resuming
the strike should crews reject it.

"We have changed our offer in line with feedback we have received
from crew," BA spokeswoman Amanda Allan said in e-mailed comments,
according to Bloomberg.  "Our offer is fair and reasonable and
provides a genuine opportunity to end this dispute."

As reported by the Troubled Company Reporter-Europe on June 30,
2010, the Financial Times said that British Airways warned its
cabin crew that they face the risk of fresh legal action or even
dismissal if they go ahead with a strike vote that could see
another round of walkouts at the airline this summer.  The FT
disclosed that in a further sign of pressure, BA revealed on June
28 that 4,500 people have formally registered interest in being
hired as Heathrow cabin crew since it started a recruitment drive
last week for 1,250 new staff on sharply reduced salaries at its
main airport base.  Unite postponed a ballot that was scheduled to
start on Tuesday, June 29, to allow its members to vote on a new
offer BA made in which the airline slightly improved a previous
proposal to guarantee existing staff allowances would not be
reduced once the lower-paid recruits started work later this year.

                   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.


BRITISH AIRWAYS: Agrees Details of Merger Plan With Iberia
----------------------------------------------------------
Mark Mulligan at The Financial Times reports that Iberia and
British Airways on Tuesday formally agreed details of a new
corporate holding structure.

The FT relates the two airlines, which began talks almost two
years ago, signed off on a 91-page merger plan document before
filing it with Spain's stock market regulator.

According to the FT, Iberia said on Tuesday its existing assets
and liabilities would be pushed into an operating subsidiary
called Iberia Operadora.  The original entity, with the share
capital, would then be merged with BA Holdco SA, BA's new Spanish
vehicle, and with International Consolidated Airlines Group (AIG),
which will be the holding group for the merger, the FT discloses.

The FT says Tuesday's document confirms the Spanish company's
right to annul the merger agreement if the final accord between BA
and the trustees of its pension funds "is challenged by the UK
pensions regulator or is not satisfactory in the reasonable
opinion of Iberia because it implies a materially detrimental
modification of the economic premises of the merger".

The FT notes the airlines said in the filing that they expected
"to present the transaction for shareholder approval in November
2010, with completion expected . . . one month later."

                       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.


LLOYDS BANKING: To Close 265 Halifax Agencies; 650 Jobs Affected
----------------------------------------------------------------
Patrick Jenkins at The Financial Times reports that Lloyds Banking
Group is to close the last 265 of its Halifax agency as it presses
ahead with the integration of its HBOS acquisition made 18 months
ago.

According to the FT, Lloyds, which is 41% owned by the UK
government, said the closure of an insurance site in Nottingham
and at other offices around the country would result in the net
loss of 650 permanent full-time jobs.

"The number of independent agencies has declined significantly in
recent years.  Following the completion of a strategic review, we
have now taken the difficult decision that the agencies are no
longer integral to our business model," the FT quoted David
Nicholson, managing director of Halifax Community Bank, as saying.

The move signals an attempt to minimize branch costs, though
Lloyds, the FT states.  Eric Daniels, Lloyd's chief executive, is
keen to be the one to deliver the GBP2 billion of targeted cost
savings, increase revenues and slim down the balance sheet,
according to the FT.

The FT notes the Unite union said Lloyds has cut more than 17,700
jobs since the HBOS takeover in January 2009.  The HBOS caused the
bulk of Lloyds losses last year, the FT 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.


LLOYDS TSB: Moody's Corrects Rating on Medium-Term Note From Ba1
----------------------------------------------------------------
Moody's Investors Service has corrected the subordinate shelf
rating of the Medium-Term Note Programme of Lloyds TSB Bank plc to
Baa3 (negative outlook) from Ba1 (Rating Under Review for Possible
Downgrade).  This program had been misclassified as a junior
subordinated program instead of a senior subordinated program
since June 2, 2009.

The corrected rating history for the subordinate shelf rating of
the MTN Programme since that date is:

* 6/22/2009 -- Downgraded from A3 to Baa1
* 11/3/2009 -- Downgraded from Baa1 to Baa3

The ratings of all Lloyds TSB Bank's other senior, subordinated
and hybrid debt securities are unaffected by this
reclassification.

The last rating action on Lloyds TSB Bank plc took place on
November 3, 2009, when Moody's took rating actions on various
subordinated and hybrid capital instruments.

Lloyds TSB Bank plc had total assets of GBP1,027 billion at
December 30, 2009.


VANTIS PLC: Vantis BRS Sold in MBO Following Administration
-----------------------------------------------------------
Following the administration of Vantis plc, Vantis Business
Recovery Services has been sold in a management buy-out to
existing Vantis BRS partners for an undisclosed sum.  The new
firm, FRP Advisory LLP, will be led by partners Geoff Rowley and
Jeremy French.

FRP Advisory retains the staff of previous Vantis BRS offices at 9
locations nationwide, numbering 28 partners and 200 staff and
making it one of the largest independent restructuring, recovery
and insolvency firms in the UK.

Commenting on the deal, FRP Advisory partner and board member
Geoff Rowley said: "Discussions were started with Vantis plc board
members some weeks ago with regards to taking the BRS business
into private ownership, with the transfer of staff.  Ultimately
the board determined that a private sale of BRS, which represented
a valuable asset, would assist in maximizing the worth of the
Vantis group for stakeholders as a part of the administration
process."

FRP Advisory will provide a comprehensive suite of restructuring,
recovery and insolvency solutions to businesses and financial
institutions in the mid-market.  Services include: banking and
business review, personal and corporate insolvency, refinance,
turnaround and crisis management, interim management and asset-
based finance.

Mr. Rowley continued: "FRP Advisory has one of the broadest
service-offerings available for businesses and institutions
operating in the mid-market, with a team that has a strong track
record of delivering solutions to our clients.  With an economic
and business landscape that is changing by the day and the focus
very much on UK plc in the recovery from recession, there's never
been a more crucial time for the mid-market community to have
access to the very best advice.  FRP Advisory is well positioned
to provide that advice and we are very excited about our future."

As reported by the Troubled Company Reporter-Europe on July 1,
2010, the Board of Vantis on Tuesday appointed administrators to
the Group with immediate effect.  Vantis said the directors have
vigorously explored every available option to reduce the level of
debt in the Group.  However, given the lack of progress to date
with these options and the Group's ongoing funding requirements,
the Board on Tuesday appointed Chad Griffin and Simon Granger of
FTI Consulting as Joint Administrators of the Group.

On June 7, 2010, the Troubled Company Reporter-Europe, citing
Times Online, reported that Vantis owes more than GBP50 million to
a consortium of banks, including Lloyds TSB, Barclays and Royal
Bank of Scotland.

Vantis plc -- http://www.vantisplc.com/-- is a UK-based
accounting, tax, business recovery and advisory group focused on
servicing SMEs and owner-managed businesses, as well as private
individuals.


VANTIS PLC: RSM Tenon Buys Offices for GBP7 Million
---------------------------------------------------
RSM Tenon has acquired the London, Epsom, and Leicester advisory
offices, the national Financial Management operations and the
Thames Valley Recovery office of its public competitor, Vantis.

The acquisition sees around 300 staff augment the existing
substantial RSM Tenon teams, adding up to an estimated GBP27
million to the firm's annual fee income, for a total cash
consideration of approximately GBP7 million.

The deal brings significant extra Audit, Tax and Advisory work
across the three locations, especially to RSM Tenon's London
operation, reflecting the Group's commitment to growth in the
Capital.

The acquisition of Vantis's Thames Valley Recovery operation --
offering restructuring, turnaround and insolvency services to mid-
sized corporate businesses -- brings RSM Tenon greater market
share in the important Thames Valley region.

RSM Tenon's Financial Management division, already the largest
Financial Services arm of any UK accountancy firm, will jump to a
Top 20 IFA firm nationally, with over 300 staff operating from
offices across the UK.

Andy Raynor, the Chief Executive of RSM Tenon Group PLC said
"We have always admired the underlying businesses within Vantis,
continuing to deliver outstanding client service to entrepreneurs
despite the difficulties of the holding company.  The resilience
and skill of the people joining our teams is reflected in their
loyal client following.  This is a seamless fit with our own
operations."

The Vantis deal comes less than six months after the merger with
Bentley Jennison at the end of last year, reinforcing RSM Tenon's
reputation for being one of the most dynamic accountancy firms in
the UK today.

Mr. Raynor commented: "With acquisitions in the last six months
totaling almost GBP100 million of potential revenue, RSM Tenon has
demonstrated the ambition for growth that we have always
encouraged in our clients.  Our ability to act quickly in
completing this advantageous transaction has been aided by the
continuing successful integration of our earlier RSM Bentley
Jennison acquisition. Processes created and tested in that merger
will be activated immediately by our dedicated teams."

As reported by the Troubled Company Reporter-Europe on July 1,
2010, the Board of Vantis on Tuesday appointed administrators to
the Group with immediate effect.  Vantis said the directors have
vigorously explored every available option to reduce the level of
debt in the Group.  However, given the lack of progress to date
with these options and the Group's ongoing funding requirements,
the Board on Tuesday appointed Chad Griffin and Simon Granger of
FTI Consulting as Joint Administrators of the Group.

On June 7, 2010, the Troubled Company Reporter-Europe, citing
Times Online, reported that Vantis owes more than GBP50 million to
a consortium of banks, including Lloyds TSB, Barclays and Royal
Bank of Scotland.

                         About RSM Tenon

RSM Tenon provides accounting and business advice in the UK and
internationally. RSM Tenon is the 7th largest accountancy and
business advisory firm in the UK, employing over 3000 people
across 50 offices.  RSM Tenon is the UK member of RSM
International, the 6th largest global accounting network with over
700 offices across more than 70 countries.

                           About Vantis

Vantis plc -- http://www.vantisplc.com/-- is a UK-based
accounting, tax, business recovery and advisory group focused on
servicing SMEs and owner-managed businesses, as well as private
individuals.


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


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

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

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

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

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

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

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



                            *********

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

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

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