TCREUR_Public/100707.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Wednesday, July 7, 2010, Vol. 11, No. 132

                            Headlines



B E L G I U M

TRUVO SUBSIDIARY: Moody's Cuts Probability of Default Rating to D


C Y P R U S

REMEDIAL CYPRUS: Has More Exclusivity, More Funding
SL CAPITAL: S&P Raises Counterparty Credit Rating to 'B-'


G E R M A N Y

CONTINENTAL AG: Mulls US$626 Million High-Yield Bond Sale
CONTINENTAL AG: Moody's Assigns 'B1' Rating on High Yield Bonds
CONTINENTAL AG: S&P Assigns 'B' Rating on Senior Secured Notes
PHOENIX PHARMAHANDEL: Moody's Assigns 'B1' Corporate Family Rating
PHOENIX PHARMAHANDEL: S&P Assigns 'CCC' Corporate Credit Rating

PRIMACOM GROUP: Completes First Phase of Restructuring


G R E E C E


MARFIN EGNATIA: Moody's Cuts Subordinated Debt Ratings to 'Ba1'
WIND HELLAS: S&P Downgrades Corporate Credit Ratings to 'SD'


I C E L A N D

ICESAVE: Talks Over Settlement of GBP2.3 Billion Dispute Held


I R E L A N D

PAT KEOGH: BMW Car Garage Sold for EUR2.6 Million


I T A L Y

IT HOLDING: Deadline for Ferre Bids Extended Until August 2

* ITALY: At Risk of Default; Banks to Face Losses


N E T H E R L A N D S

VAN DER MOOLEN: Court Orders Investigation


P O R T U G A L

ATLANTES MORTGAGES: Fitch Lifts Rating on Class D Notes From BB


R U S S I A

GAZPROMBANK OAO: S&P Gives Positive Outlook; Affirms 'BB' Rating
GE MONEY: Moody's Assigns 'Ba3' Long-Term Currency Deposit Ratings
MDM BANK: Moody's Changes Outlook on 'D' Rating to Stable


T U R K E Y

AKBANK TAS: Moody's Assigns 'Ba1' Rating on Senior Unsec. Debt


U K R A I N E

* UKRAINE: Kiev to Restructure US$450 Million International Bonds


U N I T E D   K I N G D O M

ARLO IV: Moody's Downgrades Rating on Series 2006 Notes to 'C'
BNP PARIBAS: Moody's Withdraws 'Caa3' Rating on Swap Notes
BRADFORD & BINGLEY: Former Shareholders May Get No Compensation
EDINBURGH ACADEMY: Acquired by Invista From Administrators
GALA CORAL: To Seek Consent From Lenders to Sell Junk Bonds

GLOBUS MARITIME: May Seek Delisting of Shares From AIM
LLOYDS BANKING: To Sell BoS Integrated Finance Investment Unit
ODYSSEY PAVILION: Developer Files Suit v. Anglo Irish Bank
PUNCH TAVERNS: Profits Hit by Concessions to Tenanted Estate
ROYAL BANK: Markets Strategist & Markets Economist Quit Posts

ST. MARGARET'S: EIS Union Examines Finances Following Closure
VISTEON UK: Unite Mulls Legal Action Against Ford Over Pensions


X X X X X X X X

* EUROPE: Banks' Hidden Bad Loans May Threaten Stress Tests




                         *********



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B E L G I U M
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TRUVO SUBSIDIARY: Moody's Cuts Probability of Default Rating to D
-----------------------------------------------------------------
Moody's Investors Service has downgraded Truvo Subsidiary Corp's
Probability of Default Rating to D from Ca.  The Corporate Family
Rating remains unchanged at Ca and the ratings for the
EUR395 million and US$200 million senior notes due 2014 also
remain unchanged at C.  The outlook on the ratings is stable.

The PDR downgrade to D is prompted by Truvo's filing for an
insolvency petition on 1 July 2010 in the United States Bankruptcy
Court for the Southern District of New York.  Moody's notes that
only the U.S. holding companies of Truvo are included in the
chapter 11 proceedings, while Truvo's operating companies
domiciled outside of the U.S., including the operating companies
in Belgium, Ireland, and Portugal will not partake in the filing.

The filing for insolvency follows the failure of the company to
make the 1 June 2010 interest payment due on the senior notes
prior to the expiration of the 30-day grace period.

Moody's notes that 75% of the senior secured lenders have agreed
to the plan support agreement which describes the key terms of the
proposed re-organization plan.  Moody's would currently expect to
reconsider Truvo's CFR once (i) the debt restructuring is
complete; (ii) there is sufficient clarity on company's new
capital structure; and (iii) there is information pertaining to
company's new business plan.

The instrument ratings of C (LGD6) on the senior notes due 2014
are in line with the proposed debt restructuring and reflect the
very low recovery expected on the notes.

Downgrades:

Issuer: Truvo Subsidiary Corp

* Probability of Default Rating, Downgraded to D from Ca.
* Outlook is stable.

The last rating action was implemented on 27 May 2010, when
Moody's downgraded Truvo's CFR to Ca from Caa3; its PDR to Ca from
Caa2; and the ratings on the EUR395 million and US$200 million
senior notes due 2014 to C from Ca.

Truvo's ratings were assigned by evaluating factors Moody's
believe are relevant to the credit profile of the issuer, such as:
(i) the business risk and competitive position of the company
versus others within its industry; (ii) the capital structure and
financial risk profile of the company; (iii) the projected
performance of the company over the near to intermediate term; and
(iv) management's track record and tolerance for risk.  These
attributes were compared against other issuers both within and
outside Truvo's core industry and Truvo's ratings are believed to
be comparable with those of other issuers with similar credit
risk.

Truvo Intermediate Corp., the parent of Truvo Subsidiary Corp.,
is, through its subsidiaries, the leading directory publisher in
Belgium and Ireland.  Through its joint venture with Portugal
Telecom, the company is the leading directory publisher in
Portugal and, through its minority interests, holds leading
positions in the directory markets in South Africa and Puerto
Rico.


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C Y P R U S
===========


REMEDIAL CYPRUS: Has More Exclusivity, More Funding
---------------------------------------------------
Bill Rochelle at Bloomberg News reports that Remedial (Cyprus)
Public Co. sought and obtained an extension until Sept. 15 of the
exclusive right to propose a Chapter 11 plan.  The judge also
approved an increase in financing given by bondholders to
US$6.5 million from US$5 million.

Remedial previously received approval to sell two elevated support
vessels to secured bondholders owed a net of $177 million.  There
were no bids submitted topping the offer from secured bondholders,
owed US$230 million, to purchase the vessels in exchange for
US$120 million in debt plus whatever is outstanding on the
US$5 million post-bankruptcy loan.

                       About Remedial (Cyprus)

Based in Limassol, Cyprus, Remedial (Cyprus) Public Company owns
and operates self-propelled jack up rigs called Elevating Support
Vessels. The vessels facilitate offshore well intervention
activities and work-over services.

Remedial (Cyprus) Public Company Ltd. -- dba Brufani
Shipmanagement Limited and Remedial Cyprus Limited -- filed for
Chapter 11 bankruptcy protection on February 17, 2010 (Bankr.
S.D.N.Y. Case No. 10-10782).  Kenneth A. Rosen, Esq., at
Lowenstein Sandler, P.C., assists the Company in its restructuring
effort.  The Company estimated its assets and debts at
US$100,000,001 to US$500,000,000.


SL CAPITAL: S&P Raises Counterparty Credit Rating to 'B-'
---------------------------------------------------------
Standard & Poor's Ratings Services said that it had raised its
long-term counterparty credit rating on Cyprus-based S.L. Capital
Services Ltd. to 'B-' from 'CCC+'.  At the same time, S&P affirmed
the 'C' short-term rating.  The outlook is stable.

"The upgrade reflects S&P's revision of the group status of S.L.
Capital Services Ltd. to "core" from "nonstrategically
important"," said Standard & Poor's credit analyst Sergey
Voronenko.

S&P believes that S.L. Capital has increasingly become important
to the business profile and is highly integrated within the
operations of its ultimate parent, Russian Aljba Alliance (B-
/Stable/C).

The long-term counterparty credit rating on S.L. Capital is one
notch higher than its stand-alone credit profile, which S&P has
raised to 'CCC+' from 'CCC'.  The notching reflects S&P's
expectation of the likelihood of an almost certain probability of
extraordinary parental support.  In S&P's view, S.L. Capital has
increasingly become an important part of the Aljba group, given
the company's high operational and business integration, the local
operation's alignment with the group's strategy, and the company's
increasingly important role in the group's financial results.
S.L. Capital contributed almost one-half of the group's after-tax
profit in 2009.

The ratings also reflect S.L. Capital's very high dependence on
Aljba for business, operational support, funding, and financial
continuity.  The ratings are constrained by S.L. Capital's very
limited business and client base, and the inherently high
volatility of its financial results due to market shifts.  These
factors are partly mitigated by parental financial and operating
support, an adequate level of capitalization and liquid assets,
and the company's relationship-driven niche customer and funding
profile, which shelters the company from adverse market
developments.

The stable outlook on S.L. Capital mirrors that on Aljba and
balances market volatility against continued group support.
Moreover, S&P considers the current absolute amount of equity to
be adequate to protect the company from potential market
imbalances in the medium term.

"Given the company's "core" status, strong link with, and high
dependence on the parent, future changes to the ratings on S.L.
Capital will largely follow changes in Aljba's credit standing and
support for S.L. Capital," said Mr. Voronenko.  "A downgrade of
Aljba would likely result in a downgrade of S.L. Capital; likewise
an upgrade of Aljba, a scenario that S&P currently consider
unlikely in the near term, would likely result in an upgrade of
S.L. Capital."

If the company strengthened, specifically through a sustained good
capital position, reduced volatility in earnings, and lower
concentrations, S&P might raise its assessment of its stand-alone
credit profile, but not to higher than one notch below the long-
term credit rating on Aljba.

S&P could lower the ratings on S.L. Capital if the Aljba group
evolves in a way that weakens the company's "core" status within
the group.


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


CONTINENTAL AG: Mulls US$626 Million High-Yield Bond Sale
---------------------------------------------------------
Sonja Cheung at Bloomberg News reports that Continental AG is
raising at least EUR500 million (US$626 million) with a debut
issue of high-yield bonds from the company.

The new bonds are part of a refinancing that follows a EUR1.1-
billion share sale and a EUR2.5-billion loan agreement, Bloomberg
says, citing Antje Lewe, a spokeswoman for the company.

According to Bloomberg, bankers involved in the sale said
Citigroup Inc. and Royal Bank of Scotland Group Plc are managing
the transaction, along with Commerzbank AG, Deutsche Bank AG, ING
Groep NV, Landesbank Baden-Wuerttemberg and UniCredit SpA.
Bloomberg notes the bankers said DZ Bank, Landesbank Hessen-
Thueringen Girozentrale, Banca IMI SpA and WestLB AG have been
hired as co-managers on the sale.

                       About Continental AG

Hanover, Germany-based Continental AG (OTC:CTTAY) --
http://www.conti-online.com/-- is an automotive industry
supplier.  The Company focuses its activities on the development,
production and distribution of products that improve driving
safety, driving dynamics and ride comfort.  It operates in six
divisions.  Chassis and Safety provides active and passive driving
safety, safety and chassis sensor systems, as well as chassis
components.  Powertrain focuses on engine systems, hybrid electric
drives, injection technology, and sensors and actuators, among
others.  Interior manufactures information management modules and
wireless mobile devices.  Passenger and Light Truck Tires provides
tires for passenger cars, motorcycles and bicycles.  Commercial
Vehicle Tires offers tires for trucks, as well as industrial and
off-the-road vehicles.  ContiTech specializes in the rubber and
plastics technology, offering parts, components and systems for
the automotive industry and other sectors.  In January 2009,
Schaeffler KG acquired 49.9% interest in the Company.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on Jan. 25,
2010, Standard & Poor's Ratings Services said that the 'B+' long-
term corporate credit rating on Germany-based automotive supplier
Continental AG remained on CreditWatch with negative implications,
where it was originally placed on June 10, 2009.  The 'B' short-
term rating was affirmed.

"S&P remain concerned about the potential negative influence on
Continental's credit quality from its 42% owner, the Schaeffler
group (not rated)," said Standard & Poor's credit analyst Werner
Staeblein.  "In S&P's view, the nature of the relationship between
Schaeffler and Continental make S&P's parent-
subsidiary criteria applicable, and the relationship between
Continental and Schaeffler remains the key risk for the rating."

While Continental's bank loan documentation provides some
protection for Continental at this stage, S&P viewed this as
likely temporary in nature.  From the limited available public
information about Schaeffler, S&P concluded that there is a high
probability that Schaeffler's financial situation is weaker than
that of Continental, implying an overall credit quality lower than
that of Continental.


CONTINENTAL AG: Moody's Assigns 'B1' Rating on High Yield Bonds
---------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P) B1 rating
to Continental's proposed secured high yield benchmark bond.  The
corporate family rating of Conti remains at B1 with a negative
outlook.

Proceeds of the proposed bond issuance are planned to be used to
refinance part of the outstanding debt of EUR8.2 billion drawn
under the company's syndicated credit facility due August 2012.
Given the 5 and 7 year maturities of the proposed tranches a
successful issue would somewhat lengthen the uneven debt structure
of Conti as well as diversify the funding of the company which is
currently solely reliant on bank financing, which would be a
positive development for the credit overall as it would be an
indicator that the company would have regained a broader access to
financial markets though only chipping away at the large bulk
refinancing due in 2012.

Falk Frey, Senior Vice President and lead analyst at Moody's for
Continental AG, commented: "A successful placement of Conti's
benchmark secured bond issue would demonstrate the company's
ability to diversify its funding sources away from a pure bank
lending debt structure while at the same time starting to lengthen
the uneven debt maturity profile in August 2012.  Such a step in
combination with Conti's stronger than expected recovery in
operating performance anticipated for the current fiscal year
could result in an outlook change to stable from negative shortly
after a successful placement of the bond."

On Friday, July 2nd Conti announced its preliminary revenues for
the first half 2010 increased by 38% to approx. EUR12.5 billion
and adjusted EBIT is expected to amount to at least EUR1.2 billion
equal to an adjusted EBIT margin of approx. 10%.  Based on these
preliminary results for the first six months, Conti believes that
an increase of approximately 15% in consolidated sales would be
realistic for 2010 full year 2010.  The adjusted EBIT margin is
anticipated to be between 8.0% and 8.5% including a burden of
EUR250 million from higher raw material costs in H2 2010.  The
company is expected to release its financial report for the first
six months on July 29, 2010.

In addition to the operating performance improvements above, Conti
has initiated and finalized various initiatives over the last
months, targeting an improved liquidity profile which also had a
beneficial impact to the company's credit profile.  Those
initiatives include (i) an amendment to the existing
EUR10.0 billion syndicated loan facility including the resetting
of financial covenants (ii) the syndication of a new EUR2.5
billion Forward Start Facility as well as (iii) an equity capital
increase for EUR1.1 billion and (iv) the issuance of a secured
bond.

Frey went on to say: "Despite the solid recovery in Conti's
operating performance Moody's nonetheless see the corporate family
rating effectively limited due to the uncertainty associated with
the possible form and pace of a larger integration of Continental
AG's into its major shareholder Schaeffler, which has reportedly a
heavy debt load following its investment in Conti.  At this time
Moody's continue to see the position of Conti's lenders protected
by a set of restrictive covenants in the company's credit
facilities.  However, these facilities expire as early as 2012.
If and when a larger strategic reorganization or combination of
all or parts of the enlarged Schaeffler/Continental group was to
happen, the position of Conti's current lenders as well as the
group total debt at that time might have to be reassessed."

Conti's short term liquidity is good reflecting limited debt
maturities for the next 12 months, a sizable cash position (more
than EUR1.4 billion as of March 31, 2010) and notable headroom
under its revolving credit facility as well as cash outflows for
capital expenditure.  The headroom under the company's covenant
test is sufficient following the successful rights issue which is
used to reduce indebtedness and the re-setting agreed with its
lending banks in December 2009.

The proposed secured senior notes will benefit from the same
security package as the existing syndicated credit facility and
rank effectively pari passu with this bank debt.  Both will
benefit from guarantees of subsidiaries of Continental AG
representing more than 75% of consolidated revenues, assets and
EBITDA.  Moreover, both senior secured notes and the syndicated
credit facility will be secured by shares of operating
subsidiaries.  Under Moody's Loss Given Default Methodology this
results in the provisional (P)B1 rating for the proposed senior
secured notes which is at the same level than the corporate family
rating of Conti.

The provisional ratings are based on the preliminary terms and
conditions received so far and are subject to Moody's satisfactory
review of the final documentation.

Moody's last rating action on Conti was a downgrade to B1
(negative outlook) from Ba3 (negative outlook) on August 14, 2009.

Headquartered in Hanover, Germany, Continental AG is one of the
top automotive suppliers worldwide in the areas of brake systems,
systems and components for powertrains and chassis,
instrumentation, infotainment solutions, vehicle electronics,
technical elastomers as well as the world's fourth-largest
manufacturer of passenger and commercial vehicle tires.  In 2009
Continental generated consolidated sales of EUR20.1 billion.


CONTINENTAL AG: S&P Assigns 'B' Rating on Senior Secured Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its 'B'
debt rating to the proposed senior secured notes to be issued by
Germany-based auto supplier Continental AG's (B/Stable/B)
financial subsidiary Conti-Gummi Finance B.V. (not rated).  At the
same time, S&P assigned a recovery rating of '3' to this debt,
indicating S&P's expectation of meaningful (50%-70%) recovery in
the event of a payment default.  S&P expects the proposed notes to
total at least EUR500 million.

The rating on the proposed notes reflects S&P's view of their
position in Continental's capital structure, as they rank pari
passu with the group's existing EUR9.5 million syndicated bank
facilities and a EUR2.5 billion forward-start facility.  S&P
believes that the proposed notes and these facilities benefit from
the same security package, comprising extensive share pledges from
material subsidiaries and security over cash pooling accounts, and
also have security over intercompany loans.  Furthermore, the bank
debt also benefits from upstream guarantees from material
subsidiaries.  Under S&P's simulated default scenario, a
hypothetical default would be triggered by refinancing risk on the
syndicated bank debt maturing in August 2012.  Therefore, S&P does
not anticipate the bank lenders to be in a position effectively to
gain a senior position prior to simulated default.

                         Recovery Analysis

The recovery rating on the proposed notes is '3' indicating S&P's
expectation of meaningful (50%-70%) recovery for creditors in the
event of a payment default.

For the purposes of S&P's analysis S&P has valued the business on
a going-concern basis because S&P believes that Continental's
leading global market position, "satisfactory" business risk
profile, and specific industry characteristics -- such as what S&P
views as a well-diversified customer base and the cash-generative
nature of the business -- would be recognized by potential buyers,
even under distressed circumstances.  Balance-sheet asset values
underpin S&P's assessment of the group's enterprise value, and S&P
estimates the distressed valuation at about EUR9.5 billion.

S&P's recovery ratings and default scenario are based on the
assumption that, following completion of the bond issue, the
proceeds of the bond would be used, as announced by the group, to
partially repay EUR2.45 billion outstanding under the group's term
loan B facility due August 2010.

S&P assumes that a deterioration in sales, along with lower
capacity utilization, would squeeze the group's margins.  In S&P's
opinion, this would, in turn, lead to reduced EBITDA and then a
payment default that S&P expects would occur by 2012.  S&P
believes that the hypothetical default would most likely be
triggered by the group's inability to refinance its syndicated
bank debt at maturity in August 2012.

From S&P's stressed enterprise value of approximately
EUR9.5 billion, S&P deducts priority claims comprising 50% of the
current net pension deficit, European Investment Bank
(AAA/Stable/A-1+) loans, and other senior liabilities of
approximately EUR1.2 billion, such as a factoring line and the
debt of operating subsidiaries, including committed, but undrawn,
facilities.  This leaves sufficient value to provide meaningful
recovery prospects (50%-70%) for the proposed noteholders, leading
us to assign a recovery rating of '3' to the notes.

The recovery rating is based on the Continental group's current
capital structure, and S&P considers that the proposed notes rank
pari passu with the syndicated bank debt, which could change
materially on the path to default.  Any material change in the
group's capital structure, such as a significant reduction of
prior-ranking debt, could affect the outcome and recovery
prospects.

S&P's rating on the proposed notes is based on preliminary
information and is subject to S&P's satisfactory review of the
final documentation.  In the event of any changes to the amount or
terms of the bond, the recovery and issue ratings will be subject
to further review.

S&P expects to publish a detailed recovery report shortly.

                           Ratings List

                            New Rating

                     Conti-Gummi Finance B.V.

            Senior secured notes (proposed)*         B
             Recovery rating                         3

                  * Guaranteed by Continental AG


PHOENIX PHARMAHANDEL: Moody's Assigns 'B1' Corporate Family Rating
------------------------------------------------------------------
Moody's Investors Service has assigned B1 corporate family and
probability of default ratings to PHOENIX Pharmahandel GmbH & Co.
KG.  Moody's has also assigned a (P)B1 rating to the proposed
issue of EUR500 million Guaranteed Senior Unsecured Notes due in
2014 by PHOENIX PIB Finance B.V.  The outlook on the ratings is
stable.  This is the first time that Moody's rates the company.

Moody's issues provisional ratings in advance of the final sale of
securities and these reflect Moody's credit opinion regarding the
transaction only.  Upon a conclusive review of the final
documentation, Moody's will endeavor to assign a definitive rating
to the notes.  A definitive rating may differ from a provisional
rating.  Moody's also notes that the B1 corporate family rating
assumes a successful refinancing of PHOENIX, including the
issuance of the EUR500 million notes.  Furthermore, the
refinancing includes inter alia the repayment of a loan made
available to VEM Vermoegensverwaltungs GmbH, an affiliate of the
company's shareholder, which will be repaid with funds from the
disposal of ratiopharm, which is expected to close in August 2010
subject to regulatory approval.

The B1 rating incorporates PHOENIX' position as a leading European
pharmaceutical wholesaler.  The company has a strong market
position in key markets such as Germany, Italy and Scandinavia.
Furthermore, PHOENIX has a strong retail base across a number of
selected geographies with mature markets and high margins, e.g.
Norway, UK and Switzerland.

PHOENIX generates c.  70-80% of its revenues with prescription
drugs, for which prices and margins are regulated providing a
certain visibility with regard to profitability and cash flow
generation.  In recent years, the European pharmaceutical
wholesale market showed solid growth rates of c. 3.5% p.a. on
average, a trend that is likely to continue on the back of an
increasing demand from an ageing and more health-conscious
population and high growth rates seen in Eastern Europe.  However,
while Moody's acknowledges the benefits from operating in a
regulated environment and the crucial rule pharmaceutical
wholesalers and retailers play in the pharmaceutical supply chain,
it also noted that PHOENIX' performance could be impacted by
changes to existing health care regulations though the impact of
such potential developments may be moderate and progressive.

In the years 2008 and 2009 PHOENIX suffered from an instable
financing base, which was primarily driven by the financial
distress at the level of its owner, the Merckle family.  Following
refinancing measures, which include the setup of a new mid-term
EUR2.6 billion bank financing, the issuance of the notes and a
EUR500 million capital injection from its shareholder, as well as
a repayment of a loan granted to VEM Vermoegensverwaltungs GmbH,
an affiliate of the company's shareholder, and the disposal of
certain non-core assets, PHOENIX is expected to still show a
relatively high pro-forma leverage of c. 5.1x adjusted debt/EBITDA
(based on EBITDA as expected for FY end 2010/11).  Leverage is
expected to gradually improve over time as parts of free cash flow
will be used for debt repayments.  Moody's notes that PHOENIX is
subject to relatively significant seasonal swings in working
capital leading to fluctuations in leverage metrics throughout the
year, which are likely to reach lowest levels at financial year
end.

Given the history of the company, the rating also takes into
account that the documentation of the loan agreement and the
proposed notes limits payments to the company's direct or indirect
shareholders.

In recent years, PHOENIX has embarked on a few acquisitions to
grow the company's presence in the wholesale and retail markets in
several European countries.  Moody's considers eventual future
acquisitions to come through as opportunistic bolt-on acquisitions
and remain rather limited in size.

With the announced refinancing measures PHOENIX will have a good
liquidity profile.  PHOENIX will benefit from a EUR625 million
Revolving Credit Facility, which would be undrawn at the time of
the refinancing and provide an additional cushion to liquidity to
cover inter alia seasonal swings in working capital.  However,
given that all debt instruments made available during the
refinancing will mature in 2013 (bank debt) or 2014 (notes),
PHOENIX is in Moody's view exposed to a certain degree of mid-term
refinancing risk.  The RCF will be subject to financial covenants
under which PHOENIX should have satisfactory leeway, as well as to
a Material Adverse Change Clause.

Both, the notes and the bank debt benefit from upstream guarantees
provided by the major operating subsidiaries, which however do not
constitute guarantees upon first demand.  The notes will rank
equally to the obligations under the new bank credit facility with
the same type of guarantee.  However, they could be effectively
subordinated if the lenders of the new bank facility would be in a
position to draw under the guarantees prior to the holders of the
notes.  Moody's would expect that in such situation the guarantors
would suspend payment and file for insolvency or pay pro rata to
both sides, hence avoiding banks being in a better situation.  In
addition bank lenders benefit from share pledges over the major
subsidiaries, the pledge of intercompany receivables, and the
pledge over certain bank accounts.  Although Moody's notes that
this structure will put bank lenders slightly ahead of the holders
of the notes, this does, at this time, not justify a full notch
difference between the CFR and the rating of the notes.

An upgrade to Ba3 could be considered if PHOENIX is able to reach
a Debt/EBITDA of well below 5.0x and a CFO/Debt in the low teens
on a sustained basis.  At the same time, Moody's would expect the
EBITDA Margin to be above 3.0%.

Downward pressure could arise if leverage would move towards 6.0x
Debt/EBITDA, CFO/Debt would sustainably be below 10% or in case of
major debt financed acquisition or any major impact on the
company's performance stemming from health care reforms.

PHOENIX' ratings were assigned by evaluating factors Moody's
believe are relevant to the credit profile of the issuer, such as
i) the business risk and competitive position of the company
versus others within its industry, ii) the capital structure and
financial risk of the company, iii) the projected performance of
the company over the near to intermediate term, and iv)
management's track record and tolerance for risk.  These
attributes were compared against other issuers both within and
outside of PHOENIX' core industry and PHOENIX' ratings are
believed to be comparable to those of other issuers of similar
credit risk.

PHOENIX Pharmahandel GmbH & Co. KG is one of the leading European
pharmaceutical wholesalers with activities in 23 countries and
leading market positions in major markets such as Germany, Italy,
Sweden, Finland and the UK.  In the financial year ended January
2010 PHOENIX generated revenues of EUR21.3 billion and operating
profit of EUR546 million.  It is almost 100% owned by the Merckle
family.


PHOENIX PHARMAHANDEL: S&P Assigns 'CCC' Corporate Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its 'CCC'
long-term corporate credit rating to Germany-based pharmaceuticals
wholesaling company Phoenix Pharmahandel GmbH & Co. KG.  S&P
placed the rating on CreditWatch with developing implications.

At the same time, S&P assigned an issue rating of 'CCC' to
Phoenix's proposed EUR2.6 billion senior secured syndicated bank
facilities (proposed facilities) due 2013, in line with the
corporate credit rating on Phoenix.  S&P placed the proposed
facilities on CreditWatch with developing implications.  S&P also
assigned a recovery rating of '4' to the proposed facilities,
indicating S&P's expectation of average (30%-50%) recovery
prospects for senior lenders in the event of a payment default.

In addition, S&P assigned an issue rating of 'CC' to Phoenix's
proposed EUR500 million unsecured bonds (proposed bonds), two
notches below Phoenix's corporate credit rating.  S&P placed the
proposed bonds on CreditWatch with developing implications.  The
recovery rating on the proposed bonds is '6', indicating S&P's
expectation of negligible (0%-10%) recovery in the event of a
payment default.

"The assigned long-term rating reflects Phoenix's currently high
level of debt," said Standard & Poor's credit analyst Silvia
Ortolan.  "This is a consequence of the financial distress of an
entity controlled by the Merckle family -- Phoenix's 98% majority
owner -- in 2009, which resulted in Phoenix giving direct and
indirect support of about EUR850 million to its parent.  In
financial 2009, Phoenix reportedly breached certain financial
covenants in its bank loan facilities, which led to it entering
into a standstill agreement with its banks.  S&P understands that
the standstill agreement provides protection from the early
payback threat of existing debt until Jan. 31, 2011."

The Merckle family-controlled entity has since substantially
reduced its indebtedness by reducing its stake in HeidelbergCement
AG (BB-/Stable/B).  The Merckle family-controlled entities reached
a further substantial milestone in March, with the announced sale
of generic pharmaceuticals manufacturer ratiopharm GmbH for
EUR3.7 billion on an enterprise value basis to Teva Pharmaceutical
Industries Ltd. (A-/Stable/--).  At the end of January 2010,
Phoenix's financial debt was about EUR3.9 billion, or 7.4x
Standard & Poor's-adjusted debt to EBITDA.

S&P understand that the ratiopharm divestiture is a trigger for a
EUR500 million equity injection into Phoenix.  S&P further
understand that Phoenix then plans to use those funds to refinance
its bank debt and resolve the standstill agreement with its banks.
S&P believes that this financial restructuring is likely to result
in significant deleveraging.  "The current rating does not take
account of the potential restructuring and is therefore reflective
of Phoenix's present levels of debt and weak liquidity," said Ms.
Ortolan.  The rating is additionally tempered by Phoenix's
relatively low margins, and its lack of pricing power in its
regulated pharmaceuticals market.

S&P could raise Phoenix's credit rating to 'B+' if these
refinancing-related events take place over the next few months:

* Phoenix is successful in raising EUR500 million in the bond
  markets.

* Phoenix receives the planned EUR500 million equity injection
  triggered by the ratiopharm divestiture.

* Phoenix refinances its bank debt and resolves the standstill
  agreement with its banks.

The CreditWatch developing placement reflects S&P's view of
Phoenix's present standstill agreement with its banks and the
pending closure of the ratiopharm divestiture.  S&P expects to
resolve the CreditWatch upon the successful execution of the
refinancing and subsequent deleveraging of Phoenix, or otherwise
within the next 90 days.

S&P could upgrade the rating on Phoenix should the equity
injection and bank loan refinancing lead to significant
deleveraging of its balance sheet.  Conversely, if Phoenix does
not refinance as it envisages, this would likely be negative for
the rating.  S&P might revise its view on future rating
progression if Phoenix's operating fundamentals did not appear to
support a debt-to-EBITDA ratio of about 5.5x, which S&P considers
commensurate with a 'B+' rating.


PRIMACOM GROUP: Completes First Phase of Restructuring
------------------------------------------------------
Robert Briel at Broadband TV News reports that PrimaCom Group said
it has successfully completed the first phase of restructuring of
the company to secure its long-term future.

The report relates that on Monday July 5, the shareholders' rights
to the Primacom Management GmbH were transferred to Luxembourg-
based Medfort S.ar.l. for an undisclosed sum.  This company is a
financial holding owned by private investors and independent of
the creditors and the former majority shareholders, the report
discloses.  With this step, the first phase of the restructuring
is over, the report notes.

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

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


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


MARFIN EGNATIA: Moody's Cuts Subordinated Debt Ratings to 'Ba1'
---------------------------------------------------------------
Moody's Investors Service has downgraded the deposit and senior
debt ratings of Marfin Egnatia Bank SA to Baa3/Prime-3 from
Baa2/Prime-2 and subordinated debt ratings to Ba1 from Baa3.  The
deposit and debt ratings carry a positive outlook.  The bank's
stand-alone financial strength ratings are not affected by the
rating action.

The rating action by Moody's follows the downgrade of the ratings
of Marfin Popular Bank -- MEB's Cyprus-based parent bank -- to
Baa2/Prime-2/D+ with a negative outlook.  The change in MEB's
deposit and debt ratings reflects the weakened ability of the
parent to provide support in case of need, as captured by the
parent bank's lower standalone rating of D+, that Moody's uses as
credit reference to impute parental support into MEB's ratings.
The positive outlook on the ratings charts the path for
convergence of these ratings with those of its parent when the
legal absorption process is completed.  Under this scenario --
which has already received shareholder approval, but is awaiting
the District Court of Cyprus approval of the cross-border merger -
- MEB's obligations would become obligations of MPB.

Moody's last rating action for Marfin Egnatia Bank was implemented
on 15 June 2010, when the long-term deposit and debt ratings were
placed on review with direction uncertain, and the short-term
ratings were placed on review for possible downgrade.

Headquartered in Athens, Greece, Marfin Egnatia Bank SA reported
total assets of EUR23.4 billion as of March 2010.


WIND HELLAS: S&P Downgrades Corporate Credit Ratings to 'SD'
------------------------------------------------------------
Standard & Poor's Ratings Services said that it has lowered its
long-term corporate credit ratings on Greek mobile
telecommunications operator WIND Hellas Telecommunications S.A.
and related entities to 'SD' from 'CC'.

At the same time, S&P affirmed its 'CC' debt ratings on the
EUR1.2 billion senior secured notes due 2012 issued by WIND
Hellas' wholly owned financial subsidiary Hellas
Telecommunications (Luxembourg) V S.C.A.  The recovery rating on
the notes is unchanged at '4', indicating S&P's expectation of
average (30%-50%) recovery in the event of a payment default.

S&P also affirmed its 'C' debt ratings on the EUR355 million notes
issued by Hellas Telecommunications (Luxembourg) III S.C.A. due
2013.  The recovery rating on the notes is unchanged at '6',
indicating S&P's expectation of negligible (0%-10%) recovery for
unsecured creditors in the event of a payment default.

The downgrade to 'SD' (selective default) mainly reflects the
group's agreement with some of its lenders to defer until Nov. 5,
2010, under the terms of the standstill agreement, a
EUR17.5 million amortization payment under its RCF and payments
due on July 15, 2010 relating to hedging contracts.  The downgrade
also reflects S&P's view that the group's capital structure has
become unsustainable in the short to medium term, and consequently
that WIND Hellas is highly likely to undergo a capital
restructuring in the very short term, the second in about eight
months.

The standstill agreement with the group's RCF lenders and hedging
banks became effective on July 1, 2010, and was approved by about
88% of RCF lenders and 100% of the hedging banks.  The standstill
agreement has also been submitted to senior secured noteholders,
and requires that 75% of the latter, holding more than 75% in
principal amount of notes, approve it by July 20, 2010.  As of
July 1, 2010, senior secured noteholders holding only about 48% of
the principal amount of the notes have approved the agreement.
Under the current senior secured notes' indentures, WIND Hellas
has to pay interest on these notes on July 15, 2010.  The
EUR355 million unsecured notes have not been included in the
standstill agreement.

As part of the agreement, management has also announced that it
will pursue strategic alternatives for its capital structure, and
plans to receive final binding offers for the group's assets by
Sept. 15, 2010, after which a preferred bidder would be chosen by
Oct. 14, 2010.

"S&P would lower its debt ratings on the senior secured notes to
'D' if the standstill agreement is approved by the required
majority of senior secured noteholders, or if the group fails to
pay interest on the notes on July 15, 2010," said Standard &
Poor's credit analyst Melvyn Cooke.


=============
I C E L A N D
=============


ICESAVE: Talks Over Settlement of GBP2.3 Billion Dispute Held
-------------------------------------------------------------
BBC News reports that Officials from Iceland, the Netherlands and
the UK have held two days of talks in Iceland's capital Reykjavik
over the settlement of a GBP2.3 billion banking dispute.

The report recalls the money was lost in Iceland's banking crash
in 2008, when British and Dutch depositors were affected after the
Icesave bank collapsed.

The latest talks, on hold due to elections in the UK and
Netherlands, were the first since March, the report relates.
It is hoped that further talks can be held at the end of the
summer, the report notes.

Iceland has said it will honor its commitments, but the nation's
voters rejected an agreement at a referendum in March the report
recounts.

                           About Icesave

Icesave was an online savings account brand owned and operated by
Landsbanki from 2006-2008 that offered savings accounts.  It
operated in two countries -- the United Kingdom (since October
2006) and the Netherlands (since May 2008).


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


PAT KEOGH: BMW Car Garage Sold for EUR2.6 Million
-------------------------------------------------
Nick Rabbitts of Limerick Leader reports that the Ballysimon Road
car garage owned by Pat Keogh, whose company Pat Keogh Ltd. was
placed in voluntary liquidation, was sold for EUR2.6 million.

The report recalls BMW dealer Mr. Keogh closed his premises in the
city in March 2009 after 44 years in business, with the loss of
some 45 jobs, due to the difficult trading environment.

According to the report, documents filed with the Companies
Registration Office show that the BMW garage was sold to Kildare
businessman Nicholas Conlan, who reopened the site last October,
for EUR2,651,152.

The documents show overall costs recovered from the liquidation of
the firm amount to more than EUR3.4 million, the report discloses.
But the monies paid out was only slightly less at EUR3.2 million,
the report states.

The report notes the receipts and payments account, lodged this
week with the CRO, also show the liquidator, Michael O'Regan of
PriceWaterhouse Coopers, was paid EUR30,000, with solicitors fees
running to EUR20,244.

Pat Keogh Ltd. was a Limerick-based car dealership.


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


IT HOLDING: Deadline for Ferre Bids Extended Until August 2
-----------------------------------------------------------
Andrew Roberts at Bloomberg News reports that administrators for
IT Holding SpA, the Italian fashion company being reorganized
under government-backed bankruptcy protection, extended the
deadline for binding offers for the Gianfranco Ferre label until
Aug. 2.

Bloomberg relates the administrators said Monday in a statement
the previous deadline was July 6.

Bloomberg recalls the administrators started the auction of the
unit on June 16.

As reported by the Troubled Company Reporter-Europe, IT Holding
sought bankruptcy protection in February 2009 after failing to
make payments to lenders and suppliers.

                       About IT Holding SpA

IT Holding SpA -- http://www.itholding.com/-- is a Milan, Italy-
based company operating in the luxury goods market.  The Company
and its subsidiaries design, produce and distribute apparel,
accessories, eyewear and perfumes.  Its brand portfolio embraces:
owned brands, Gianfranco Ferre, Malo, Exte, as well as licensed
brands, Versace Jeans Couture, Versace Sport, Just Cavalli, C'N'C
Costume National and Galliano. The Company's production facilities
are located in Italy.  IT Holding SpA has a worldwide distribution
network, including 39 directly operated stores, 274 monobrand
stores and over 6,000 department and specialty stores.  In order
to be present in the most significant markets, IT Holding SpA has
dedicated market companies: ITTIERRE SpA, ITTIERRE France SA,
ITTIERRE Moden GmbH, IT USA HOLDING Inc and IT Asia Pacific
Limited, among others.


* ITALY: At Risk of Default; Banks to Face Losses
-------------------------------------------------
Andrew Davis at Bloomberg News reports that Capital Economics said
Italy's debt, the highest in the euro region last year, remains a
"potential time bomb" and the country is at risk of default unless
it boosts productivity.

"We think the size of the government's debts will eventually
prompt the markets to turn their sights on Italy," Bloomberg
quoted Capital Markets Managing Director Roger Bootle and chief
European economist Jonathan Loynes as saying in a report Monday.
"A default is a distinct possibility."  According to Bloomberg,
they said Italian banks would be hard hit by a default and foreign
investors would face losses of EUR400 million (US$500 million) if
Italy defaulted and forced bondholders to take a so-called haircut
of 50% of their investments.

Italy's debt is almost twice the European Union limit of 60% of
GDP, Bloomberg notes.  To reduce it to 100% of GDP in the next 15
years, the country would have to run a primary surplus -- the
budget balance less interest payment -- of 5 percent of GDP,
Bloomberg states.


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


VAN DER MOOLEN: Court Orders Investigation
------------------------------------------
Jurjen van de Pol at Bloomberg News reports that the Enterprise
Chamber of the Amsterdam Appeals Court ordered an investigation
into the management of Van der Moolen Holding NV.

According to Bloomberg, the court said Monday in a faxed statement
that the probe was requested by Dutch investor group VEB and
insurer ASR Schadeverzekering NV.

                       About Van der Moolen

Headquartered in Amsterdam, Netherlands, Van der Moolen Holding
N.V. -- http://www.vandermoolen.com/-- is an international
securities trading and brokerage firm that specializes in
providing low-cost liquidity in markets worldwide.  Its business
is to make money on financial markets, as a broker and proprietary
trader in securities, futures, derivatives indexes and exchange
traded funds.

Van der Moolen, once the fourth-biggest market maker on the New
York Stock Exchange, was declared bankrupt in September 2009 after
posting three consecutive years of losses.


===============
P O R T U G A L
===============


ATLANTES MORTGAGES: Fitch Lifts Rating on Class D Notes From BB
---------------------------------------------------------------
Fitch Ratings has upgraded three tranches of the Atlantes
Mortgages Series and affirmed the four other note classes.  The
rating actions reflect Fitch's assessment of the current ratings
against the agency's revised criteria assumptions for Portuguese
RMBS transactions, and Fitch's expectations of the future
performance of the underlying assets.

The Atlantes Mortgages series consists of Portuguese RMBS
transactions with mortgage loans originated by Banif Banco
Internacional do Funchal ('BBB+'/Negative/'F2').  Although arrears
have been above the average seen in other Fitch-rated Portuguese
RMBS transactions and are currently on a clear upward trend, the
expected loss as a result of poor performance is not expected to
affect the notes' ratings.  Fitch expects the prevailing macro
economic environment in Portugal could cause delinquency levels to
increase further and has revised the Outlook on the class C note
of Atlantes 2 to Negative to reflect this concern.

The rating actions are:

Atlantes Mortgages No. 1 Plc:

  -- Class A (ISIN XS0161394324): affirmed at 'AAA'; Outlook
     Stable; Loss Severity rating of 'LS-1'

  -- Class B (ISIN XS0161394910): upgraded to 'AA' from 'A+';
     Outlook Positive; Loss Severity rating of 'LS-1'

  -- Class C (ISIN XS0161395305): upgraded to 'A' from 'BBB';
     Outlook Positive;; Loss Severity rating of 'LS-1'

  -- Class D (ISIN XS0161395560): upgraded to 'BBB' from 'BB';
     Outlook Stable; Loss Severity rating of 'LS-2'

Atlantes Mortgages No. 2:

  -- Class A (ISIN XS0348690651): affirmed at 'AAA'; Outlook
     Stable; Loss Severity rating of 'LS-1'

  -- Class B (ISIN XS0348690735): affirmed at 'A'; Outlook
     Stable; Loss Severity rating of 'LS-3'

  -- Class C (ISIN XS0348691972): affirmed at 'BBB'; Outlook
     revised to Negative from Stable; Loss Severity rating of 'LS-
     3'

Atlantes Mortgages 1 closed seven years ago and because its
reserve fund does not amortize and the notes pay down
sequentially, the level of credit enhancement has grown
significantly.  In addition, non-performing loans have been
provisioned in a timely manner, resulting in over
collateralization.  Consequently, three tranches have been
upgraded.  The Positive Outlooks indicate that future CE growth is
expected, and the Stable Outlook on the class D note reflects the
possibility that the reserve fund may be utilized, but to a
limited degree.

Atlantes Mortgages 2 closed in 2008 and due to low prepayments
rates the CE growth of this transaction has been limited.
Nevertheless, current CE levels are enough to provide sufficient
protection in comparison to the agency's higher losses
expectations.  On the other hand, only two years after closing,
there are high levels of loans needing to being provisioned per
quarter.  This has caused the excess spread to be low, increasing
the possibilities of a reserve fund draw.

Although the delinquencies of both transactions stand well above
of the average level seen in Fitch-rated Portuguese RMBS, the
upward trend of arrears in Atlantes Mortgages 2 has been more
severe.  Atlantes Mortgage 2 had, at closing, a higher loan-to-
value distribution than Atlantes 1, and Fitch believes this key
factor explains the higher arrears of this transaction.

The transactions, like most Portuguese RMBS, provision loans
between 12 months and 36 months or more in arrears.  Provisioning
loans before losses occur efficiently traps excess spread,
creating over-collateralization.  Fitch expects recoveries on
loans between three and five years after legal actions have been
started.


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


GAZPROMBANK OAO: S&P Gives Positive Outlook; Affirms 'BB' Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it has revised the
outlook to positive from stable on Russia-based Gazprombank.  At
the same time, S&P has affirmed the 'BB' long-term and 'B' short-
term counterparty credit and 'ruAA' long-term Russia national
scale ratings on GPB.

"The rating action reflects S&P's opinion of the bank's
strengthening risk management and control, reduced appetite for
market risk and exposures, improved -- albeit still low --
capitalization, and better asset quality performance than the
sector average," said Standard & Poor's credit analyst Ekaterina
Trofimova.

The ratings on GPB, Russia's third-largest bank, are still
constrained by what S&P see as a challenging operating
environment; GPB's material market risk exposures, which have led
to highly volatile financials; relatively weak, albeit improving,
capitalization and core profitability; and high credit risk costs,
resulting from deteriorated asset quality.

However, the ratings also continue to take into account GPB's
status as a government-related entity, reflecting its high
systemic importance to the Russian banking system.  S&P believes
that there is still a high probability that the bank would receive
extraordinary support from the Russian Federation (foreign
currency BBB/Stable/A-3; local currency BBB+/Stable/A-2; Russia
national scale long-term 'ruAAA') as well as from the bank's main
shareholder OAO Gazprom (BBB/Negative/A-3).  The ratings also
benefit from GPB's below-market-average liquidity risk and
moderate short-term foreign debt repayments.

S&P give the long-term ratings three notches of uplift above S&P's
assessment of GPB's stand-alone credit profile, which mainly
reflects GPB's status as a GRE, and its parental support.

In S&P's view, Russia's gradually stabilizing operating
environment, coupled with the bank's more cautious risk management
and controls, and greatly downsized market risk exposures should
help it improve its risk profile and financial performance.

"The positive outlook reflects S&P's view that GPB's financial
profile will continue to improve over the next 12 months, because
of its risk management and control enhancements," said Ms.
Trofimova.  S&P believes that the bank's asset quality problems
are stabilizing at the current fairly manageable levels and
driving down credit costs.  S&P believes that GPB will also manage
to keep its loss-absorption capacity and liquidity at levels
appropriate for the current ratings, despite the still-difficult
operating environment.

S&P would consider an upgrade if S&P sees continued improvement in
asset quality that approaches pre-2008 levels.  This is
particularly with respect to the overall portfolio, including
restructured loans, which S&P believes will lead to more robust
profitability and capitalization.  A reduction or loss of this
positive momentum and of GPB's risk management focus would result
in a revision of the outlook back to stable.

Although this is not S&P's base case expectation, S&P would
consider lowering the ratings if S&P were to see a substantial
deterioration of the bank's asset quality or more aggressive
market risk policy, which in turn would again erode
capitalization.  A lower probability of extraordinary state or
parent support could also lead to a negative rating action.


GE MONEY: Moody's Assigns 'Ba3' Long-Term Currency Deposit Ratings
------------------------------------------------------------------
Moody's Investors Service has assigned these global scale ratings
to GE Money Bank CJSC: a Ba3 long-term and Not Prime short-term
local and foreign currency deposit ratings, and an E+ bank
financial strength rating.  Concurrently, Moody's Interfax Rating
Agency assigned a Aa3.ru long-term National Scale Rating to the
bank.  Moscow-based Moody's Interfax is majority owned by Moody's,
a leading global rating agency.  The outlook on the long-term
global scale ratings is stable, while the NSR carries no specific
outlook.

GEMB's E+ BFSR, which translates into a Baseline Credit Assessment
of B2, is constrained by the bank's moderate commercial franchise
and its exposure to high credit risk in retail lending, which is
typical for this market.  The bank mostly relies on parental
funding, which makes its funding base concentrated.  The operating
environment for banks in Russia remains volatile, which adds to
uncertainties about GEMB's new funding plans (through wholesale
borrowings and deposits) and weights on its loan quality.  At the
same time, the BFSR is supported by GEMB's good capitalization,
adequate collections function, and a stable and experienced
management team.  The loan book is very granular, however focused
on a handful of products.

GEMB's global local currency deposit rating of Ba3 is based on the
bank's BCA of B2 of two notches of support from parent U.S.-based
GE Capital (Aa2/Stable).  Moody's expect a moderate probability of
support to GEMB from GE Capital in case of need, based on the
former's full integration into the parent's operations, limited
size, and reputation considerations.  Moody's does not incorporate
any probability of systemic support in GEMB's ratings, because the
bank has limited systemic importance.

GEMB's BFSR/BCA ratings have limited upside potential in the
current volatile environment.  In the longer run, positive rating
actions would depend on the bank's success in building a more
profitable and well diversified franchise, while keeping credit
risks under control.  Sound capitalization, continuous
profitability, and a more diversified funding base are also
necessary upgrade prerequisites.  A downgrade of the bank's
BFSR/BCA could follow a significant deterioration in the bank's
capitalization, liquidity or asset quality.  A significant loss of
market share and material contraction in business volumes would
also weaken the bank's franchise, possibly triggering negative
rating actions.

Deposit ratings could be upgraded if GE Capital's strategic
commitment towards GEMB is significantly strengthened.  Signs of
weaker strategic commitment from GE Capital will lead to a
decrease of parental support uplift.  Parental support notches
from GE Capital will be fully eliminated should the shareholder
dispose of its controlling stake at GEMB.

Headquartered in Moscow, GEMB is a consumer finance bank with
assets of US$680 million as at 31 December 2009.  The bank
operated through 41 offices and around 100 kiosks in 10 Russian
regions.  GEMB is fully owned by GE Capital, the financial arm of
General Electric Corporation.


MDM BANK: Moody's Changes Outlook on 'D' Rating to Stable
---------------------------------------------------------
Moody's Investors Service has changed to stable from negative the
outlook on the D bank financial strength rating and the Ba2 long-
term local and foreign currency deposit ratings of MDM Bank.  The
outlook was also changed to stable from negative on the bank's Ba2
senior unsecured and Ba3 subordinated debt ratings.  The bank's
Not-Prime short-term local and foreign currency deposit rating was
affirmed.  Concurrently, Moody's Interfax Rating Agency affirmed
MDM's Aa2.ru national scale rating, as well as the Aa2.ru NSR of
its senior unsecured domestic debt.  National scale ratings carry
no specific outlook.

According to Moody's, the rating action reflects (i) MDM's
strengthened liquidity profile, with its net loans-to-deposits
ratio just slightly exceeding 100% at Q1 2010, and (ii) the bank's
high capitalization level, with the Basel I Tier 1 ratio and total
capital adequacy ratio standing at 18.8% and 21.1%, respectively,
as at the same date.  The weakening trend of MDM's asset quality
still persists, with 90+ days overdue delinquent loans comprising
19.2% of the gross loan book at Q1 2010 and the renegotiated loans
accounting for another 11.2% of the gross loans at the same date;
however, the current level of loan loss reserves of 16.87% of the
gross loan book appears to be sufficient to address the credit
losses that have emerged so far, while the potential further
credit losses are expected to be absorbed by MDM's revenue-
generating capacity.

Another rating driver supporting the rating action is the
completion of all major phases of integration of 'pre-merger MDM
Bank' with URSA Bank, whereby the resulting institution preserved
and, in some areas, improved its corporate profile and financial
fundamentals.  MDM's market franchise and brand recognition, as
well as its corporate governance and risk management practices
generally benefited from the merger.

"MDM's financial strength is underpinned by its recurring earnings
generation, sound operational efficiency and ample liquidity
cushion," said Ms.  Olga Ulyanova, a Moody's Assistant Vice-
President and the lead analyst for the bank.  "At the same time,
Moody's still expects to see some deterioration of MDM's asset
quality indicators in 2010, which will continue to suppress the
bank's profitability; therefore, the rating agency expects that
the bank's bottom-line financial result will hover around break-
even point this year," Ms. Ulyanova added.

Moody's previous rating action on MDM was on 23 November 2009 when
the rating agency assigned a Ba2 long-term local currency debt
rating (with negative outlook) to the bank's local currency-
denominated exchange-traded bond program.  Concurrently, Moody's
Interfax Rating Agency assigned a long-term NSR of Aa2.ru to this
program.

Headquartered in the city of Novosibirsk, the Russian Federation,
MDM reported -- as at 31 December 2009 -- total assets of
US$13.3 billion, total equity of US$2.0 billion and net IFRS loss
of US$46 million.


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


AKBANK TAS: Moody's Assigns 'Ba1' Rating on Senior Unsec. Debt
--------------------------------------------------------------
Moody's Investors Service has assigned a provisional foreign
currency senior unsecured debt rating of (P)Ba1 to the proposed
Eurobond issuance (the notes) by Akbank T.A.S.  The outlook on the
rating is stable.

This is Akbank's first debt issuance and it is being offered under
144A -- DTC, Regulation S.  The terms and conditions of the notes
include (amongst other things) a negative pledge and a cross-
default clause.  The notes will be unconditional, unsubordinated
and unsecured obligations and will rank pari passu with all
Akbank's other senior unsecured obligations.  The rating of the
notes is in line with Akbank's senior unsecured foreign currency
debt rating.

Foreign currency debt ratings are subject to the foreign currency
bond ceiling.  As a result, even though Akbank's global local
currency deposit rating of Baa1 is higher than the foreign
currency bond ceiling for Turkey, the Akbank's foreign currency
senior unsecured debt rating is constrained by and thus equal to
this ceiling.

Moody's notes that Akbank's foreign currency debt rating is higher
than its Ba3 foreign currency deposit rating, since the foreign
currency deposit rating is constrained by the lower Ba3 foreign
currency country ceiling for deposits for Turkey.  The higher
foreign currency debt rating is primarily driven by the evaluation
of the moratorium risk on foreign debt liabilities for the private
sector.  The lower foreign-currency deposits rating is constraint
by the Turkish government bond rating of Ba2 and the evaluation of
foreign currency deposit freeze risk at time of stress.

An upgrade of the foreign currency bond ceiling would result in an
upgrade of the rating of the notes since it is constrained by its
applicable ceiling.  A downgrade of the foreign currency bond
ceiling or a downgrade of the Akbank's GLC deposit rating below
that of the foreign currency bond ceiling for Turkey would result
in a downgrade of the rating of the notes.

The rating of the notes is provisional and represents Moody's
preliminary opinion only.  Upon a conclusive review of the
documentation, Moody's will endeavor to assign a definitive rating
to the notes.  A definitive rating may differ from a provisional
rating.  A rating is not a recommendation to purchase, sell or
invest in any securities.

Moody's previous rating action on Akbank was on January 8, 2010,
when it upgraded the bank's foreign currency deposit ratings to
Ba3.

Akbank is headquartered in Istanbul, Turkey, and at the end of
December 2009 had total assets of US$67.8 billion.


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


* UKRAINE: Kiev to Restructure US$450 Million International Bonds
-----------------------------------------------------------------
Kiev is seeking to restructure US$450 million of international
bonds due in the next two years, Kateryna Choursina and Daryna
Krasnolutska at Bloomberg News report, citing a person with
knowledge of the matter in the Ukrainian capital city's
administration.

According to Bloomberg, the person said Kiev is likely to
restructure its US$200 million of notes due 2011 and US$250
million of bonds due 2012, while continuing to meet interest
payments.  Bloomberg relates the city council planned make a full
coupon payment yesterday ahead of schedule on the 2011 bond.

The person, as cited by Bloomberg, said Kiev will decide on the
restructuring before mid-September to allow time for the city
council and the Finance Ministry to approve it.

Ukraine's biggest city has suffered dwindling revenues since the
global credit crisis undermined investment and left about 20 banks
reliant on state aid, forcing the country to turn to the
International Monetary Fund for support in 2008, Bloomberg
discloses.

Bloomberg recalls Standard & Poor's raised Ukraine's credit
ratings on May 17 to B from B- following an agreement with Russia
on lower prices for imported natural gas.  Kiev city bonds are
rated B- by Fitch, Bloomberg notes.


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


ARLO IV: Moody's Downgrades Rating on Series 2006 Notes to 'C'
--------------------------------------------------------------
Moody's Investors Service took this rating action on notes issued
by Arlo IV 2006 -- Lemar & Rosenheim I CDO, a synthetic CDO backed
by a portfolio of structured finance securities and corporates.

Issuer: ARLO IV 2006 - Lemar & Rosenheim I CDO

  -- EUR5M Series 2006 (Rosenheim I - Class B-3E) EUR5,000,000
     Secured Limited Recourse Credit-Linked Notes due 2013 Notes,
     Downgraded to C and Withdrawn; previously on Feb. 20, 2009
     Downgraded to Caa3

The above tranche was fully repurchased in November 2009 at a
purchase price corresponding to recovery rate expected in C rated
securities.  Moody's views this as distressed exchange.  The
rating withdrawal follows the subsequent cancellation of the
notes.


BNP PARIBAS: Moody's Withdraws 'Caa3' Rating on Swap Notes
----------------------------------------------------------
Moody's Investors Service withdrew its credit rating on a credit
default swap entered into by BNP Paribas, London Branch.

The swap, BNP Paribas - Faraya 2004-5 Mezzanine Credit Default
Swap, was terminated by the parties to the agreement.

  -- US$15M US$ 15,000,000 mezzanine credit default swap Notes,
     Withdrawn; previously on March 6, 2009 Downgraded to Caa3


BRADFORD & BINGLEY: Former Shareholders May Get No Compensation
---------------------------------------------------------------
BBC News reports that independent valuer Peter Clokey has
recommended that the Treasury offer no compensation to former
shareholders of Bradford & Bingley.

According to BBC, The B&B Shareholders Action Group plans to
appeal against the decision by Mr. Clokey of
PricewaterhouseCoopers.  BBC says the decision would affect
935,000 investors.

BBC recalls the bank was split into "good" and "bad" parts in the
aftermath of the banking crisis, with the better half sold to
Santander.  The "bad" part of the bank stayed with the government,
BBC notes.

BBC recounts in the two days before administration, some GBP173
million was taken out of B&B.  Mr. Clokey, as cited by BBC, said
that, without nationalization, the bank would have fallen into
administration, leaving nothing for shareholders.

                     About Bradford & Bingley

Headquartered in Bingley, United Kingdom, Bradford & Bingley plc
provided specialist mortgages and savings products.  It operated
197 branches and 141 agencies spread across the UK.  Its market
share of net new mortgage lending at the end of the 2007 was 7.7%.


EDINBURGH ACADEMY: Acquired by Invista From Administrators
----------------------------------------------------------
PropertyEU reports that Invista Real Estate Opportunity Fund has
acquired the Edinburgh Academy Boarding Houses in Edinburgh from
administrators PWC.  The investment volume for the acquisition of
site was not disclosed, the report notes.

According to the report, Scottish Land Holdings advised Invista in
the deal.

The former boarding houses of the well-known Scottish public
school were purchased by Heritor's Residential Property at the
height of the market in 2007, however, it has been lying vacant
since the company went into administration the following year, the
report notes.


GALA CORAL: To Seek Consent From Lenders to Sell Junk Bonds
-----------------------------------------------------------
Gala Coral Group Ltd. is seeking permission from lenders to sell
as much as GBP600 million (US$907 million) of high-yield bonds,
Kate Haywood and John Glover at Bloomberg News report, citing two
people familiar with the situation.

According to Bloomberg, the people said Gala would use the money
to repay senior debt.  Bloomberg notes the people said the company
would have a year to complete the sale if consent is granted.

Anousha Sakoui at The Financial Times reports Gala is paying its
banks GBP3 million in fees in order to win more than two-thirds of
their support for the bond sale, which would be rated below
investment grade -- known as high yield or junk.

Goldman Sachs is advising Gala on the consent process, the FT
discloses.

According to the FT, the bond would rank behind the banks in the
order of priority of lenders.

As reported by the Troubled Company Reporter-Europe on June 23,
2010, the FT said that Gala finalized a restructuring of its
GBP2.5 billion (US$3.7 billion) debt.  The FT disclosed as a
result, Gala is freed from GBP588 million of mezzanine debt that
is being written off in exchange for giving creditors control of
the business.  The FT said the new shareholder group will be led
by Apollo Management, Cerberus, Park Square Capital and York
Capital, which are providing GBP200 million to repay debt.

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


GLOBUS MARITIME: May Seek Delisting of Shares From AIM
------------------------------------------------------
Globus Maritime Ltd. said that its Board of Directors has noted
that the Company's shares have been consistently trading at a
substantial discount to its net asset value, which is a hindrance
to the Company's plans for growth.  Accordingly, with a view to
maximizing Shareholder value, the Board has considered whether the
Company should maintain its listing on AIM or seek a listing on
another Stock Exchange.

Although no final decision has been made in this regard, following
discussions with the Company's advisers, the Board believes that
it may be in the interests of the Company and its shareholders as
a whole for it to seek a listing on a Stock Exchange in the United
States in the near future.  Were the Company to achieve such a
listing, it would seek to delist its shares from AIM as soon as
reasonably practicable so as to avoid the unnecessary expense of
maintaining dual listings.  The Board is therefore planning to
seek shareholder approval at the AGM in respect of certain matters
to facilitate such a listing in a timely manner should it choose
to proceed with it. Further details are set out in the Circular.

                   Posting of the Notice of AGM

The Company has today posted a circular to its shareholders
containing a notice of the Annual General Meeting of the Company
together with a form of proxy and a CD-Rom containing the 2009
Annual Report and Accounts and new articles of incorporation and
by-laws proposed to be adopted by the Company if the Board
determines to seek a listing on a Stock Exchange in the United
States.  The AGM will be held on July 28, 2010 at 12:00 BST or
14:00 local Greek time at the offices of Globus Shipmanagement
Corp., the Company's wholly-owned subsidiary, 3rd Floor, 128
Vouliagmenis Avenue, Glyfada, Athens 16674 Greece.

The full notice of AGM contained in the circular, together with
the 2009 Annual Report and Accounts, is available to be downloaded
from the Company's website http://www.globusmaritime.gr.

The resolutions to be proposed at the AGM include:

-- Resolution 1: Approval of Annual Report and Accounts for the
    Period ended 31 December 2009

-- Resolutions 2, 3 and 4: Reappointment of Directors

-- Resolutions 5 and 6: Reappointment and remuneration of
    Auditors

-- Resolution 7: Removal of pre-emption rights

-- Resolution 8: Reduction in the notice period for general
    meetings

-- Resolutions 9, 10 and 11: Preparation for a possible listing
    on a Stock Exchange in the United States

Resolutions 9, 10 and 11 seek approval for certain matters which
the Company would be required to undertake, were it to seek a
listing on a US Stock Exchange.  In this regard, the Company
announces that, with a view to maximizing shareholder value, it is
exploring alternatives to its current Stock Exchange listing.

Resolutions 1 to 6 (inclusive) comprise the ordinary business of
the meeting and will be proposed as ordinary resolutions of the
Company, and resolutions 7 to 11 (inclusive) are to be dealt with
as special business and will be proposed as special resolutions of
the Company.

              Appointment of Jeffrey Owen Parry as
                    Non-Executive Director

The Company appointed Jeffery Owen Parry as a non-executive
director with immediate effect.

Mr. Parry has 26 years' experience in the shipping sector.  He is
currently President of Mystic Marine Advisors LLC, a Connecticut-
based advisory firm specializing in turnaround and emerging
shipping companies.  Formerly, he was CEO of NASDAQ-listed Aries
Maritime Transport Limited (now NewLead Holdings Ltd.), where he
led the turnaround and sale of the company.  Mr. Parry has also
served as the Managing Director of A.G. Pappadakis & Co. Ltd, an
Athens-based shipowner, and Managing Director of Poten Capital
Services LLC, a U.S. broker/dealer firm specializing in shipping,
member of FINRA/SIPC.  Mr. Parry holds a BA from Brown University
and an MBA from Columbia University. He started his career as a
stevedore on the New York waterfront.

Mr. George Feidakis, Chairman of Globus, commented: "All of us
welcome Jeff Parry to the Company's Board of Directors.  We are
confident that his expertise and counsel will be valuable assets
as we continue to grow our Company."

Jeff Parry fills the seat made vacant by the resignation of Mr.
Arjun Batra who had been a director of Globus since May 2007. Mr.
Feidakis commented: "Arjun Batra played an important role in the
development and success of Globus and we thank him for his years
of good service."

Mr. Parry does not currently hold any shares in the Company.

Save as disclosed herein there are no additional disclosures to be
made in accordance with Rule 17 and paragraph (g) of Schedule 2 of
the AIM rules for Jeffrey Parry.

For further information:

Globus Maritime Limited         +30 210 960 8300
George Karageorgiou, CEO        info@globusmaritime.gr

Jefferies International
Limited                         +44 (0) 20 7029 8000
Oliver Griffiths
Anne Dovigen

Capital Link - London           +44 (0) 20 3206
1322/globus@capitallink.com
Annie Evangeli

Capital Link - New York         +1 212 661
7566/globus@capitallink.com
Ramnique Grewal

                    About Globus Maritime Limited

Globus is a global provider of seaborne transportation services
for dry bulk cargoes, including among others iron ire, coal,
grain, cement and fertilizers, along worldwide shipping routes.
Globus owns and operates one Panamax, one Kamsarmax, and three
Supramax vessels, with a weighted average age of 3.4 years as at
June 30, 2010, and a total carrying capacity of 319,952 DWT.

Globus is listed on the AIM market of the London Stock Exchange
under ticker GLBS.  Jefferies International Limited is acting as
nominated adviser and broker to the Company.


LLOYDS BANKING: To Sell BoS Integrated Finance Investment Unit
--------------------------------------------------------------
Jon Menon and Andrew MacAskill at Bloomberg News report that
Lloyds Banking Group Plc, the 41% British government-owned lender,
is to sell its Bank of Scotland Integrated Finance investment unit
to private equity firm Coller Capital for GBP332 million (US$504
million).

According to Bloomberg, Lloyds said in a statement Monday that the
bank will retain a stake of about 30% in a new joint venture
called Cavendish Square Partners LP.  Lloyds, as cited by
Bloomberg said it values the total business at GBP480 million, a
"small premium" to its book value.

Lloyds is shedding assets after the bank was bailed out by the
government and ordered to sell divisions by the European Union
last year as a consequence of receiving more than GBP20 billion in
state aid, Bloomberg notes.

                 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.


ODYSSEY PAVILION: Developer Files Suit v. Anglo Irish Bank
----------------------------------------------------------
Business World reports that Peter Curistan, who lost control of
Belfast's best known entertainment complex, The Odyssey Pavilion,
has launched legal action against Anglo Irish Bank over a GBP70
million (EUR85 million) debt.

Mr. Curistan, the report says, is seeking damages over a collapsed
sale of part of the entertainment complex in Belfast.
The report notes a writ lodged at the High Court in Belfast
alleges the bank has been negligent.

According to the report, to address the debt, Anglo had been
attempting to broker the sale of the Odyssey Pavilion's long-term
lease for almost two years, but without success.  The report
recalls KPMG were appointed administrators in May and are
searching for a buyer to take over the lease.

The report relates an Odyssey spokesman said: "This is a matter
between the former tenant of the Pavilion and Anglo Irish bank and
does not involve the Odyssey Trust.  Our interest as the guardians
of the entire Odyssey complex is to ensure that the administrator
is given the opportunity to conclude his work so that the Pavilion
can receive new investment under new ownership as quickly as
possible."

The accountancy firm KPMG has been appointed to find a buyer for
the Pavilion part of the Odyssey complex, the report discloses.

Anglo moved to place the company into administration over the
debts, but has been accused of acting in "bad faith" by Mr.
Curistan, the report states.

An offer for the Pavillion of GBP62 million, which is understood
to have been made by property company PBN Developments several
months ago, was turned down by Anglo Irish; but now fears are
growing that the Odyssey Pavilion may now be worth as little as
GBP50 million, which would leave the bank owners, the Irish
taxpayers, to face the shortfall, the report notes.


PUNCH TAVERNS: Profits Hit by Concessions to Tenanted Estate
------------------------------------------------------------
Adam Jones at The Financial Times reports that Punch Taverns said
on Tuesday that the cost of supporting struggling publicans in its
leased and tenanted business continued to run at just under GBP2
million a month.

The FT relates the firm gave the update in a trading statement
that showed a recent improvement in sales at its managed pubs arm
but no easing of the decline in underlying profitability at its
leased and tenanted outlets.

According to the FT, as the UK's economic boom turned into
recession, Punch had to give substantial financial concessions to
the lessees and tenants running its weakest pubs, eroding group
profits.  The FT notes that in its leased and tenanted division,
Punch said the like-for-like decline in earnings before interest,
tax, depreciation and amortization (ebitda) for the 44 weeks to
June 26 was similar to the 11% year-on-year drop it posted for the
first half of its financial year.

As reported by the Troubled Company Reporter-Europe on April 1,
2010, the FT said Punch Taverns, in common with many others in the
UK's pub sector, has suffered a torrid few years as the smoking
ban and then recession hurt sales and profits.  The FT disclosed
Punch's debt mountain, accumulated during several years of rapid
expansion, means it has had less flexibility than its rivals to
respond to the downturn.  The company has sought to tackle its
narrowing headroom on loan covenants by scrapping its dividend,
raising GBP375 million through an emergency share issue, disposing
of assets and using the money to buy back some of its debt at a
discount, according to the FT.  The FT noted that while net debt,
which peaked at GBP4.9 billion in 2007, has fallen to GBP3.3
billion, this still represents about seven times group earnings
before interest, tax, depreciation and amortization and six times
the group's equity value.  The FT said the company remains highly
leveraged.  Punch's balance sheet stress has been further
compounded by continued weak trading at its core leased and
tenanted business, according to the FT.  Such has been the state
of trading that Moody's, the ratings agency, warned in the autumn
that Punch's credit position was likely to worsen as it would be
difficult to pay back debt at the pace that earnings fell, the FT
said.

Punch Taverns plc -- http://www.punchtaverns.com/-- is a pub
company in the United Kingdom, with over 8,400 pubs across its
leased and managed portfolio.  The Company is engaged in the
trading activities in the operation of public houses either under
the leased model or as directly managed by the Company.  The
leased model involves the granting of leases to tenants who
operate the pub as their own business, paying rent to the Company,
purchasing beer and other drinks from it and entering into profit
sharing arrangements for income from leisure machines.  Pubs that
are directly managed involve the employment of a manager to
operate each managed pub and the Group receives all revenues
generated by the pub and is responsible for costs.  During the
fiscal year ended August 23, 2008, Punch Taverns plc acquired 20
pubs and 39 pubs were sold.


ROYAL BANK: Markets Strategist & Markets Economist Quit Posts
-------------------------------------------------------------
Jon Menon at Bloomberg News reports that Royal Bank of Scotland
Group Plc said Chief Markets Strategist Bob Janjuah and Chief
Markets Economist Kevin Gaynor have left the bank.

RBS said Monday in a statement that the bank will continue to
provide research with its team of strategists based in London, the
Asia Pacific region and the U.S.  According to Bloomberg, global
economic research will be led by Chief European Economist Jacques
Cailloux.

                            About RBS

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

                           *     *     *

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


ST. MARGARET'S: EIS Union Examines Finances Following Closure
-------------------------------------------------------------
Gemma Fraser at Edinburgh Evening News reports that the EIS
teaching union is investigating whether pension contributions,
student loan repayments and registration fees deducted from the
salaries of axed staff at St. Margaret's school actually went
where they were meant to go.

According to the report, the union has been called in to
investigate whether the pension provider, the Student Loans
Company and the General Teaching Council Scotland (GTCS) received
the payments deducted from staff salaries between September last
year until the school went into administration last month.

The report notes it is understood staff became suspicious after
receiving a letter from administrators KPMG which advised teachers
who had opted to pay their annual registration fee to the GTCS
from their salary that the deductions were "not forwarded to
GTCS".

The report says staff also became worried about their pension when
the letter stated KPMG is "liaising with the pension provider to
establish if there are any pension contribution arrears up to the
date of insolvency".

The report recalls the school closed its doors on June 29 after a
fundraising campaign set up by parents in a bid to take ownership
of the school failed.  They ran out of time to raise the GBP2.5
million needed to pay off its existing creditors, the report
recounts.

As reported by the Troubled Company Reporter-Europe on June 14,
2010, Blair Nimmo of KPMG was appointed Provisional Liquidator of
St Margaret's School (Edinburgh) Limited and of its 100%
subsidiary St Hilary's House Limited on June 10, 2010.

The Edinburgh-based School, which had charitable status and was
incorporated in 1960, provided private education for girls at
nursery, primary and secondary level (from 18 months to 18-years-
old) and for boys at nursery and primary level (from 18 months to
10-years-old).

St. Hilary's provided boarding facilities during term and operates
as a hotel and youth hostel during the School holidays.  The
School had been affected by a sustained decline in pupil numbers
over recent years and despite actions taken by the Board of
Governors, the School could not continue to operate viably.

At the time of the Provisional Liquidator's appointment the School
and nursery comprised 397 pupils and 143 staff (69 teaching and 74
non-teaching).


VISTEON UK: Unite Mulls Legal Action Against Ford Over Pensions
---------------------------------------------------------------
BBC News reports that former Visteon UK workers should find out
within days if their union will take legal action over their
pension fund.

BBC recalls the Swansea car parts factory went into administration
last year, nine years after it was spun out of Ford, and many who
transferred have seen their pensions hit.

Unite's advisers are considering legal action against Ford, BBC
says.  The union will decide in the next few days whether to
proceed, BBC states.

BBC relates Ford has said it will resist any legal action.
According to BBC, Ford has said it met every obligation to workers
when contracts and conditions were taken on by Visteon.  BBC notes
in a statement the company insisted that it had "met or exceeded
its obligations under the 2000 agreement when Visteon became fully
independent".

"Ford's obligations to its former employees were fully discharged
and Ford believes there is no basis for resuming liability for
benefits transferred to Visteon," the statement added, according
to BBC.

As reported in the Troubled Company Reporter, Visteon Corp. said
Visteon UK, a company organized under the laws of England and
Wales and an indirect, wholly-owned subsidiary of the company,
filed on March 31, 2009, for administration under the United
Kingdom Insolvency Act of 1986 with the High Court of Justice,
Chancery division in London, England.  The UK administration was
initiated in response to continuing operating losses of the
Visteon UK and mounting labor costs and their related demand on
the company's cash flows.

Visteon UK operated in Enfield, UK, Basildon, UK, and
Belfast, UK and recorded sales of US$250 million for the year
ended December 31, 2008.  It had total assets of US$153
million as of December 31, 2008.


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


* EUROPE: Banks' Hidden Bad Loans May Threaten Stress Tests
-----------------------------------------------------------
Andrew MacAskill and Aaron Kirchfeld at Bloomberg News report that
Europe's bank stress tests may not be as successful as the U.S.
government's.

According to Bloomberg, investors say they don't know if some
banks are hiding bad loans, whether they have enough capital to
withstand a debt default by a European state and whether
governments can afford to rescue them.

The European Union still hasn't disclosed the tests' criteria,
including if they contain a sovereign default, Bloomberg notes.

"There won't be a rebound in European banks unless we have stress
tests," Bloomberg quoted Dirk Hoffmann-Becking, a senior research
analyst at Sanford C. Bernstein in London who tracks European
banks including Barclays Plc, Deutsche Bank AG and UBS AG, as
saying.  "But stress tests won't resolve the sovereign debt
crisis."

Bloomberg says Europe's 20 largest lenders are trading at about
10% less than the net value of their assets, while the 20 biggest
U.S. banks trade at a 10% premium.

Bloomberg notes unlike the U.S. government, EU governments haven't
said if they'll provide cash to banks that fail the tests, and
economists say countries including Spain and Portugal could
struggle to fund any bailout.  European lenders had US$2.29
trillion at risk in Greece, Italy, Portugal and Spain at the end
of 2009, including loans to governments, Bloomberg says, citing
the Bank for International Settlements.

"You can't just have stress tests, you'd better prescribe some
medicine as well, which is going be more capital-raising," said
Hank Calenti, a credit analyst at Royal Bank of Canada in London,
according to Bloomberg.  "If some institutions need access to
government recapitalization or other improvements, the market
needs to know how that's going to happen."

Bloomberg recalls concern about banks' potential losses on bonds
sold by the governments of Greece, Italy, Portugal and Spain
helped to increase borrowing costs for European banks this year.


                            *********

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.

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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.


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