TCREUR_Public/100714.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 14, 2010, Vol. 11, No. 137

                            Headlines



E S T O N I A

Q VARA: Declared Bankrupt by the Harju County Court


F R A N C E

PEUGEOT CITROEN: Inks EUR2.4BB Revolving Syndicated Credit Deal


H U N G A R Y

SZEVIEP: Has 13 Days to Reach Agreement with Creditors


I R E L A N D

ANGLO IRISH: Ex-Chief Sean FitzPatrick Declared Bankrupt
FLEMING ENERGY: Opposes AIB Claim for EUR26MM Summary Judgment


L U X E M B O U R G

ORCO PROPERTY: Gets EUR6.7 Million Cash From Loan Restructuring


R O M A N I A

IMPACT DEVELOPER: Enters Insolvency Proceedings; Owes RON1.3MM


R U S S I A

ALROSA ZAO: May Buy Back Diamonds From Russian Government


T U R K E Y

KARYA TOUR: Declares Bankruptcy; Thousands of Tourists Stranded


U K R A I N E

NAFTOGAZ: Yanukovych's Explanations on Natural Gas Probe Sought

* UKRAINE: To Help Kiev Repay Domestic, Foreign Debts This Year


U N I T E D   K I N G D O M

ALEXANDRA PLC: In Administration; KPMG in Sale Talks
MOSS END: Put Into Liquidation; Garden Center Has New Owner
SLUMBERDOWN ENTERPRISES: In Administration; 60 Jobs at Risk

* UK: PwC Says Long-Term Health of Pub Industry Still Uncertain


X X X X X X X X

* EUROPE: Banks Must Raise Money Before Seeking State Aid
* EUROPE: Haircut Part of German Insolvency Plan, Spiegel Says
* EUROPE: CEA Has Concerns Over EC Insurance Guarantee Schemes




                         *********



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


Q VARA: Declared Bankrupt by the Harju County Court
---------------------------------------------------
Ott Ummelas at Bloomberg News reports that the Harju County Court
on July 9 declared AS Q Vara bankrupt at the request of the tax
and customs office.

The tax office filed for Q Vara bankruptcy on May 25, the
Bloomberg says, citing the court's website.

Bloomberg recalls the company had a EUR5-million (US$6.3 million)
bond delisted from Tallinn stock exchange last year, citing
solvency issues.

Bloomberg, citing the website of Krediidiinfo AS, notes
Q Vara has a tax debt of ESK26.4 million (US$2.1 million) and
interest debt of ESK951,486 as of July 12.

AS Q Vara is an Estonian property developer.


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


PEUGEOT CITROEN: Inks EUR2.4BB Revolving Syndicated Credit Deal
---------------------------------------------------------------
Adam Mitchell at Dow Jones Newswires reports that PSA Peugeot
Citroen said Monday it has signed a revolving syndicated credit
deal with 21 banks for a sum of EUR2.4 billion.

Peugeot has "anticipated refinancing deadlines in 2011, in
favorable conditions, extending the average maturity of its debt
and thus strengthening its balance sheet," Dow Jones quoted the
company as saying in a statement.

PSA Peugeot Citroen S.A. -- http://www.psa-peugeot-citroen.com/
-- is a France-based manufacturer of passenger cars and light
commercial vehicles.  It produces vehicles under the Peugeot and
Citroen brands.  In addition to its automobile division, the
Company includes Banque PSA Finance, which supports the sale of
Peugeot and Citroen vehicles by financing new vehicle and
replacement parts inventory for dealers and offering financing and
related services to car buyers; Faurecia, an automotive equipment
manufacturer focused on four component families: seats, vehicle
interior, front end and exhaust systems; Gefco, which offers
logistics services covering the entire supply chain, including
overland, sea and air transport, industrial logistics, container
management, vehicle preparation and distribution, and customs and
value added tax (VAT) representation, and Peugeot Motocycles,
which manufactures scooters and motorcycles.  In 2008, PSA Peugeot
Citroen S.A. sold more than 3.2 million vehicles in 150 countries
worldwide.

                           *     *     *

PSA Peugeot Citroen is rated BB+ by Standard & Poor's.


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H U N G A R Y
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SZEVIEP: Has 13 Days to Reach Agreement with Creditors
------------------------------------------------------
Szeviep, which has been under bankruptcy protection since
April 29, has 13 days to reach an agreement with its creditors,
MTI-Econews reports, citing chairman Sandor Baranyi.

According to the report, Mr. Baranyi said most of the company's
creditors want to reach an agreement on the company's debts, but
two banks still want to make changes to "marginal questions"
concerning the agreement.  The report notes the company's chairman
said if changes can be made that satisfy the banks, they will
support the agreement.

Szeviep is a construction company based in Hungary.


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I R E L A N D
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ANGLO IRISH: Ex-Chief Sean FitzPatrick Declared Bankrupt
--------------------------------------------------------
Dearbhail McDonald and Emmet Oliver at Irish Independent report
that former Anglo Irish Bank chief Sean FitzPatrick will be forced
to rely on his wife's EUR3.6 million share of his property and
pension assets after being declared bankrupt by the High Court.

The report relates on Monday all of the ex-banker's assets and
debts fell under the control of special court official Chris
Lehane.  He has the power to sell all of Mr FitzPatrick's assets,
including his half-share of a EUR3.4 million pension, to his
creditors including Anglo Irish Bank, the report says.

Mr. FitzPatrick, who revealed in court papers that he has only
EUR5,500 in hard cash available to him, will now be dependent on
his wife for his future income, the report notes.  He has
has debts of almost EUR150 million, including EUR110 million to
his former employers, the report discloses.

The report recalls the former banker and chartered accountant
devised a plan for his creditors that would include the sale of
his half-share in his family home and pension to avoid bankruptcy.
Several creditors spoke in favor of the proposals, but Anglo,
which holds some 85% of his debts, denied that the proposed scheme
of arrangement put to creditors by Mr. FitzPatrick would result in
a more favorable outcome, the report discloses.

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

                           *     *     *

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


FLEMING ENERGY: Opposes AIB Claim for EUR26MM Summary Judgment
--------------------------------------------------------------
Mary Carolan at The Irish Times reports that the Commercial Court
heard Friday that the John Fleming is opposing a claim by AIB for
EUR26 million summary judgment orders against him over guarantees
of loans to Fleming Energy to a buy a 51% shareholding in Plymouth
Energy LLC, a company registered in the US and established to
purchase and develop a 57-acre site in Iowa.

According the report, AIB claims the guarantee was part of the
security provided for credit facilities advanced to Fleming
Energy.

The report relates Sarah McKechnie, for Mr. Fleming, told
Mr. Justice Peter Kelly her client wants to defend the claim on
several grounds, including that he had borrowed as a consumer in
the transaction and was entitled to the protections under the
Consumer Credit Act.  Mr. Fleming is alleging irregularities in
relation to how the guarantee was executed, the report says. He
claims he had agreements with the bank that certain assets of his
would be protected, including his family home, the report
discloses.

According to the report, Dermot Cahill, for AIB, said none of the
points advanced presented any defense.  The bank would supply an
affidavit concerning how the guarantee was provided, including
that Mr. Fleming had been sent the guarantee by post and had
returned it signed and witnessed, the report says.

The report notes Mr. Justice Kelly said he had no idea if any of
the grounds of defence advanced were valid but would give Mr.
Fleming an opportunity to put matters on affidavit.  He made
directions for the exchange of affidavits between the sides and
returned the summary judgment application to later this month, the
report states.

Fleming Energy is a renewable and alternative energy provider with
registered offices at New Cork Road, Bandon, Co Cork.


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


ORCO PROPERTY: Gets EUR6.7 Million Cash From Loan Restructuring
---------------------------------------------------------------
Krystof Chamonikolas at Bloomberg News reports that Orco Property
Group SA said Monday it completed the sale of a commercial
development in Warsaw for EUR5.2 million and received EUR6.7
million in cash from a loan restructuring at a joint venture with
AIG Global Real Estate Europe.

"It is important that they managed to sell the Warsaw project as
this shows some market activity and some demand," Bloomberg quoted
analyst Miroslav Adamkovic at Komercni Banka AS as saying in
Prague Monday.  "Overall it's slightly positive news."

                        Creditor Protection

As reported by the Troubled Company Reporter-Europe, on May 19,
Reuters' Jason Hovet said that a Paris court had approved a plan
exiting Orco from its more than year-long creditor protection
period.  Reuters disclosed Orco said the plan includes the
repayment of 100% of the company's admitted claims over 10 years.
The court protection in place since March last year had protected
EUR1.5 billion (US$1.9 billion) in bank debts and bonds, according
to Reuters.  Reuters said Orco proposed a 10 year rescheduling
plan to restructure more than EUR400 million in debt held by
bondholders through a scheme that looks to extend the average
maturity of its bonds to eight years from three.

Orco Property Group SA -- http://www.orcogroup.com/-- is a
Luxembourg-based real estate company, specializing in the
development, rental and management of properties in Central and
Eastern Europe.  Through its fully consolidated subsidiaries, Orco
Property Group SA operates in several countries, including the
Czech Republic, Slovakia, Germany, Hungary, Poland, Croatia and
Russia.  The Company rents and manages real estate and hotels
properties composed of office buildings, apartments with services,
luxury hotels and hotel residences; it also develops real estate
projects as promoter.


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R O M A N I A
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IMPACT DEVELOPER: Enters Insolvency Proceedings; Owes RON1.3MM
--------------------------------------------------------------
Cristi Moga at Ziarul Financiar reports that Impact Developer &
Contractor has entered insolvency proceedings at the request of
Ploiesti-based construction firm Romconstruct.

According to the report, Romconstruct is demanding repayment of a
RON1.3 million (EUR308,000) debt.

The report relates the representatives of Impact have organized a
press conference to announce they will challenge the ruling of the
Bucharest Court of Law.  Impact has the financial capability to
pay the debt, the report says, citing the company's
representatives.

"I don't think we will get to the reorganization stage, and even
if we do, the company's assets are worth around RON480 million,
while the overall debts amount to just RON150 million," the report
quoted Carmen Sandulescu, CFO and minority shareholder of Impact,
as saying.

Impact Developer & Contractor is a Romanian real estate developer.
The company was founded in the early '90s by businessman Dan Ioan
Popp.


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


ALROSA ZAO: May Buy Back Diamonds From Russian Government
---------------------------------------------------------
Ilya Khrennikov and Maria Kolesnikova at Bloomberg News report
that ZAO Alrosa Chief Executive Officer Fyodor Andreev said
that the company may buy back some gems that it sold to the
government for US$1 billion last year as prices rebound.

According to Bloomberg, Finance Minister Alexei Kudrin said at a
meeting of the World Diamond Congress that Russia's government
bought the diamonds from Alrosa last year to support the company.

"The mechanism is now being discussed," Bloomberg quoted
Mr. Andreev as saying.  Mr. Andreev, as cited by Bloomberg, said
diamond prices have rebounded and are back to "pre-crisis levels".

Bloomberg recalls Russia's government bought the diamonds from
Alrosa last year to support the company.  Mr. Andreev, as cited by
Bloomberg, said Gokhran, Russia's state repository, may choose to
sell the diamonds on its own or offer Alrosa "some kind of swap".

Bloomberg notes Mr. Andreev said in the interview that Alrosa may
sell US$1 billion in 10-year eurobonds in October or November.

                          About Alrosa

ALROSA Company Ltd. -- http://eng.alrosa.ru/eng/-- is Russia's
largest diamond company engaged in the exploration, mining,
manufacture and sales of diamonds and one of the world's major
rough diamond producers.  ALROSA produces about 20% of the world's
rough diamond output and accounts for almost 100% of all rough
diamonds produced in Russia.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Feb. 4,
2010, Standard & Poor's Ratings Services said that it had
reinstated its long-term corporate credit rating on Russian
diamond miner ALROSA Co. Ltd. at 'B+' and the short-term rating at
'B'.  S&P suspended the ratings on April 7, 2009.  S&P said the
outlook is positive.  S&P also reinstated its 'B+' rating on
Alrosa's US$500 million Eurobond and 'B' short-term rating on
Alrosa's commercial paper program.  The '4' recovery ratings on
the Eurobond was also reinstated.  The Eurobond and commercial
paper program are issued by ALROSA Finance S.A. and guaranteed by
Alrosa.

"The 'B+' long-term rating is based on Alrosa's stand-alone credit
profile, which S&P assesses at 'CCC+', as well as on S&P's opinion
that there is a "high" likelihood that the government of the
Russian Federation (foreign currency BBB/Stable/A-3, local
currency BBB+/Stable/A-2; Russia national scale 'ruAAA') would
provide timely and sufficient extraordinary support to Alrosa in
the event of financial distress," said Standard & Poor's credit
analyst Andrey Nikolaev.


S&P's view of a 'CCC+' stand-alone credit profile is based on its
assessment of Alrosa's business risk profile as "weak" and its
financial risk profile as "highly leveraged".

S&P said Alrosa's business risk profile is constrained by the
commodity-type nature and capital-intensiveness of the diamond-
mining industry.  Business risk is further constrained by the
harsh operating conditions in Yakutia, according to S&P.


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T U R K E Y
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KARYA TOUR: Declares Bankruptcy; Thousands of Tourists Stranded
---------------------------------------------------------------
Hurriyet Daily News & Economic Review reports that Karya Tour
declared bankruptcy Friday, leaving thousands of tourists stranded
in the Mediterranean country.

According to the report, nearly 3,600 tourists have come to
Turkish tourism resorts from Slovakia, Poland, Hungary and Ukraine
with Karya.

"Tough market conditions and increasing competition have resulted
in our bankruptcy," the report quoted Ozgur Ekinci, a partner of
Karya Tour, as saying.  "We could not fill the seats in airplanes
we rented.  We tried to resist and sold tickets at a loss.  But we
could not achieve the desired sales, and we have gone bankrupt."

The report relates Mr. Ekinci said the main problem of the
bankrupt company now is to find a solution for taking tourists
back to their countries.

"We are working with representatives of hotels and officials,"
Mr. Ekinci said, according to the report.  "We are in contact with
the provincial tourism directorate.  We have been holding talks on
the difficult situation of hotelkeepers also."

Karya Tour is one of the biggest Turkish tour operators with
affiliates in many countries worldwide.


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U K R A I N E
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NAFTOGAZ: Yanukovych's Explanations on Natural Gas Probe Sought
---------------------------------------------------------------
Interfax-Ukraine reports that BYT leader Yulia Tymoshenko has
asked the parliament commission investigating the adoption by the
Stockholm Arbitration Tribunal of a ruling obliging Naftogaz to
return 11 billion cubic meters of natural gas to RosUkrEnergo to
invite Ukrainian President Viktor Yanukovych to a meeting to
provide explanations.

"I think it's necessary to invite President Viktor Yanukovych to
provide explanations to the investigative commission," the report
quoted Ms. Tymoshenk as saying on Monday.

"If they are ready to testify, they will come and defend their
position," Ms. Tymoshenko, as cited in the report, said, adding
that a commission meeting should also be attended by everybody
involved in the work of RosUkrEnergo, in particular, its co-owner
Dmytro Firtash, the head of the Ukrainian presidential
administration, Serhiy Liovochkin, Fuel and Energy Minister Yuriy
Boiko and Naftogaz CEO Yevhen Bakulin.

The report notes Ms. Tymoshenko said that current decisions by the
authorities, which are trying to implement the ruling of the
Stockholm Arbitration Tribunal, would try not only to return
RosUkrEnergo's money, but also to bring Naftogaz Ukrainy to
bankruptcy.

                  About NJSC Naftogaz of Ukraine

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

                          *     *     *


As reported by the Troubled Company Reporter-Europe on July 9,
2010, Fitch Ratings affirmed Naftogaz of Ukraine's long-term
foreign and local currency IDRs: affirmed at 'CCC'.  The negative
outlook on the ratings was withdrawn.  Fitch also upgraded the
company's senior unsecured rating to 'B' from 'B-', based on the
unconditional and irrevocable guarantee from the government of
Ukraine.  The recovery rating is 'RR4'.


* UKRAINE: To Help Kiev Repay Domestic, Foreign Debts This Year
---------------------------------------------------------------
Ukraine's Finance Ministry said it will help the capital, Kiev,
repay its domestic and foreign debt this year, Kateryna Choursina
and Daryna Krasnolutska at Bloomberg News report, citing First
Deputy Minister Vadym Kopylov.

"Ukraine's Cabinet and the Kiev administration will further take
steps to ensure Kiev city's budget has enough funds to hold an
efficient debt policy," Bloomberg quoted Mr. Kopylov as saying in
a statement, e-mailed by the ministry press office Monday.

On July 7, 2010, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported that a person with knowledge of the
matter in the Ukrainian capital city's administration 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.  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.
Bloomberg disclosed 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.

                           *     *     *

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, according to Bloomberg News.  Kiev city
bonds are rated B- by Fitch, Bloomberg notes.


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


ALEXANDRA PLC: In Administration; KPMG in Sale Talks
----------------------------------------------------
Rob Lewis, Rob Hunt and Derek Howell of PricewaterhouseCoopers LLP
were appointed joint administrators of Alexandra PLC on July 12,
2010.  The appointment was made by the directors of the company
following their announcement on 9 July that the company no longer
had sufficient funding to enable it to continue to trade.  This
was one of several issues faced by the company.

The company is a supplier of work clothing to a broad range of
industries including travel, hospitality, healthcare, industrial
and retail.  The company is based in Thornbury South
Gloucestershire, and directly employs 484 people at locations
including Thornbury, Bristol, Swindon, Langley, Edinburgh and
Uddingston, near Glasgow.

Until recently, the directors of the company had been pursuing an
equity fund raising.  Following recent discussions with a number
of parties, however, the directors concluded that it would not be
possible to deliver a successful fund raising and therefore the
process was abandoned.  Following the public announcement that the
fund raising had been abandoned, pressures on the company's
working capital requirements meant that the company could not
continue to trade without the protection of an insolvency process.

Following their appointment, the joint administrators are seeking
to sell the business as a going concern, and the administrators
are in discussions with a number of interested parties.

The company's subsidiaries are not currently subject to insolvency
procedures, although their affairs are being reviewed by the
administrators.  The subsidiaries employ 174 full time equivalent
staff in Morocco, seven in the UK, eight in Southern Ireland and
eight in Holland.

Rob Lewis, joint administrator and partner at
PricewaterhouseCoopers LLP said: "It is regrettable that the
company was unable to complete the equity raising process.
However, the Alexandra name is a strong one in the workwear market
and the market share that the business has in the UK will make it
an attractive prospect for interested parties.  We are already in
discussions with a significant number of interested parties,
although inevitably those discussions will take some time to
conclude.

"In the meantime, the company will continue to trade and we are
going to need the support of everyone associated with the
business.  We have already met with most of the company's
employees and have been pleased with the level of commitment given
to achieving a sale of the business, and initial conversations
with customers and suppliers have also gone well."

Prospective buyers should contact Roger Hale at:
roger.hale@uk.pwc.com

Alexandra Plc first started as a small shop in Bristol, in 1854.
The company started to sell work wear in the 1950s and was first
floated on the stock market in 1985.


MOSS END: Put Into Liquidation; Garden Center Has New Owner
-----------------------------------------------------------
Moss End Garden Centre has been put into liquidation, resulting in
the loss of 16 jobs, getbracknell reports.

The report relates the Tony and Vanessa Day, the company's owners,
were forced to place it in liquidation last week after the
recession, a tough winter and an ongoing planning wrangle took
their toll on the business.

According to the report, the garden center is still open because
landlord Schyde Investments was quickly able to find a new owner
to take it on.

"The concession went into liquidation but the new guy was
interested and we've managed to keep the center open.  He was keen
to get started straight away," the report quoted
Mike Edmund, director of Schyde Investments, as saying.

"He's kept a number of the staff and at the moment the center is
still open but they're in the process of moving things around and
giving it a fresh new look.

"It is still called Moss End Garden Centre and it will remain open
although there are signs up apologizing for any disturbance while
they work on the interior of the center."

Moss End Garden Centre is based in Warfield.


SLUMBERDOWN ENTERPRISES: In Administration; 60 Jobs at Risk
-----------------------------------------------------------
STV reports that Slumberdown Enterprises Ltd. has gone into
administration, putting 60 jobs at risk.

According to the report, Tony Trench, of the Unite union, said:
"This is really disappointing news especially with the staff
bending over backwards to help the firm.  But they have been
betrayed by the management who have failed to communicate with us
despite constant requests."

No-one from administrators Ernst & Young was available to comment
on the Slumberdown situation, the report notes.

Slumberdown Enterprises Ltd. is a bedding company based in Hawick.


* UK: PwC Says Long-Term Health of Pub Industry Still Uncertain
---------------------------------------------------------------
Pub company insolvencies are down a third from the peak of the
recession but fears of further Government spending cuts, potential
interest rate rises, and a reduction in discretionary spend could
slow recovery -- causing a further wave of restructuring and
insolvency.

The insolvency rate appears to have peaked in the last quarter of
2009 when 88 pubs businesses failed. (The PricewaterhouseCoopers
LLP insolvency statistics monitor pub companies as opposed to
individual units.)  The rate of failure has now (Q2 2010) dropped
by 32 per cent.  However, the level of collapse is still
comparatively high -- nearly ten per cent up on just two years
ago.

In the first half of 2010 London based companies such as London
Town, Capital City Brewing Company Ltd, and Globe pub management
became insolvent, as did several large late night venues such as
Fabric nightclub and the Budha Bar.

David Chubb, partner, PricewaterhouseCoopers LLP, said: "Pub
company insolvency rates have fallen from where we were a year ago
-- but trading remains difficult and further failures are expected
as lenders consolidate their positions.  The insolvency stats do
not fully illustrate the extent of the problems in the sector as
much underlying restructuring activity continues.  Even without
entering insolvency creditors may still experience pain."

Despite talks of public sector cuts and an uncertain unemployment
market, 22 per cent of consumers polled anticipate having more
disposable income over the next 12 months, up from 17 per cent a
year ago.  Economists are currently speculating that interest
rates could be raised to 1.5% or even 2.5% by the end of the year.

"Any interest rate rise this year will increase the cost of
mortgage repayments, squeezing discretionary spend on leisure
activities.  Even the uncertainty around interest rates causes
people to hold back," Mr. Chubb explained.

The pub trade is still operating under duress and although the
Coalition have scrapped the review of the smoking ban (which was
thought to include plans to expand the law to cover beer gardens
and other communal areas), alcohol consumption will remain on the
public health agenda.

Mr. Chubb continued, "we have just seen the first World Cup since
the smoking ban came into force -- which might explain the high
volumes of people who watched the England games (and other
matches) at home."

"Generally insolvency rates increase as an economy clambers out of
recession -- due to working capital pressures.  However, as pubs
are not vulnerable to working capital any signs of a UK recovery,
when they come, will be good news for the pub industry."

Restaurant company insolvency levels in Q2 2010 are up five per
cent on the first three months of the year, but down 30 per cent
from their peak of 183 in Q1 2009.

"While the propensity to dine out is still very much a part of UK
culture, the pursuit of value for money by the consumer has led to
even high end restaurants in London laying on fixed menus and
other offers usually seen in casual dining."

"Restaurants must use their customer data to analyze whether such
offers are bringing new customers through the door or whether
their regulars, who would dine regardless, are just doing so and
paying less," he expanded.

Such levels of discounting are unsustainable, another factor
adding to the insolvency rate in this sector which is still 30 per
cent higher than it was just two years ago.

Mr. Chubb concluded: "While restaurant closures have slowed both
regional and London eateries are still very reliant on promotions
and as a result profit margins remain under pressure.  Consumers
are likely to demand even greater value for money in the coming
months as the impact of higher taxes and interest rates take
hold."

                   About PricewaterhouseCoopers

PricewaterhouseCoopers provides industry-focused assurance, tax
and advisory services.


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


* EUROPE: Banks Must Raise Money Before Seeking State Aid
---------------------------------------------------------
Emma Ross-Thomas and Jurjen van de Pol at Bloomberg News report
that European officials want banks to try to raise money
themselves before seeking state support if stress tests by
regulators reveal "vulnerabilities".

"It is firstly up to the banks themselves," Bloomberg quoted Dutch
Finance Minister Jan Kees de Jager as saying in Brussels Sunday
after a meeting with euro-area counterparts.  "They will get a
certain period to refinance themselves in the market, but the
countries will immediately announce that there is a certain
backstop."

Bloomberg relates European Union Economic and Monetary Affairs
Commissioner Olli Rehn said banks should first look at "financing
from the markets" to build up capital buffers.  Bloomberg notes
Mr. Rehn said if that fails, the "first public line of defense"
will be national funds.  "Vulnerabilities" will be examined "case
by case," Mr. Rehn said, according to Bloomberg.

EU regulators are examining the strength of 91 banks in an attempt
to reassure investors about their resilience to potential losses
as the debt crisis pummels the bonds of Greece, Spain and
Portugal, Bloomberg discloses.

The banks being tested account for 65% of Europe's banking
industry, Bloomberg states.  They include Deutsche Bank AG of
Germany, France's BNP Paribas SA and ING Bank of the Netherlands,
Bloomberg says, citing the Committee of European Banking
Supervisors, which is organizing the tests.

Separately, Niklas Magnusson at Bloomberg News reports that Credit
Suisse Group AG said that Deutsche Postbank AG, Banca Monte dei
Paschi di Siena SpA and most of Greece's largest lenders are the
only publicly traded banks that may fail European stress tests and
be forced to raise capital.

According to Bloomberg, Credit Suisse analysts led by Daniel
Davies wrote in a note to clients on July 8 that an economic
downturn combined with losses on government bonds would force
Deutsche Postbank to raise EUR1.36 billion (US$1.72 billion) in
capital to meet Tier 1 capital requirements of 6%, while Banca
Monte dei Paschi would need EUR592 million.  Bloomberg relates
Credit Suisse said National Bank of Greece SA, Piraeus Bank SA,
Agricultural Bank of Greece SA and TT Hellenic Postbank SA would
together need a total of EUR2.61 billion.

Bloomberg notes Deutsche Bank AG analyst Matt Spick in London said
a number of banks, including Allied Irish Banks Plc and Bank of
Ireland Plc, Germany's Commerzbank AG, Greece's National Bank and
Eurobank and Italy's Banca Monte dei Paschi die Siena and Banco
Popolare SC may fail the European stress tests because they
wouldn't meet the required Tier 1 ratio of 6%.


* EUROPE: Haircut Part of German Insolvency Plan, Spiegel Says
--------------------------------------------------------------
Tony Czuczka at Bloomberg News, citing German magazine Der
Spiegel, reports that Germany's plan to allow the "orderly
insolvency" of indebted euro-area countries would force
bondholders to give up part of their claims.

According to Bloomberg, the magazine reported in an e-mailed
advance copy of an article for its July 12 edition that the
proposal, drafted by the German Finance and Justice Ministries,
calls for setting up a "Berlin Club" of governments to oversee
such insolvencies.

Bloomberg notes Spiegel said that holders of sovereign bonds,
while taking a so-called haircut, would be guaranteed half the
bond's face value as an incentive to take part in debt
restructuring.


* EUROPE: CEA Has Concerns Over EC Insurance Guarantee Schemes
--------------------------------------------------------------
Jonathan Swift at Post Online reports that the CEA, the European
insurance and reinsurance federation, has concerns over the
European Commission's proposals for EU legislation to create
guarantee schemes to fund potential insurer insolvencies.

The report relates EC has published a white paper setting out a
framework for EU action on insurance guarantee schemes.  This
proposes a Directive to ensure that all EU member states have an
IGS that complies with a set of minimum requirements, the report
notes.

According to the report, the CEA questions pre-funding of IGS as
suggested by the EC, and believes that the decision on how to fund
schemes should be left to individual EU member states provided
that equivalent protection is given to policyholders.

The EC is running a consultation until November 30 and the CEA
will be providing the Commission with detailed comments on its
proposals, the report notes.



                            *********

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

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

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

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

                            *********


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

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

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

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

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

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


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