TCREUR_Public/100721.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 21, 2010, Vol. 11, No. 142

                            Headlines



F R A N C E

PEUGEOT SA: Fitch Affirms Low-B IDRs & Sr. Unsecured Debt Ratngs
REMBRANDT I: Fitch Cuts Ratings on Two Classes of Notes to 'D'
RENAULT SA: Fitch Affirms BB Long-Term IDR & S Unsec. Debt Ratng
WENDEL SA: S&P Downgrades Corporate Credit Rating to 'BB-'


G E O R G I A

GEORGIAN RAILWAY: S&P Assigns 'B+' Rating on US$250 Mil. Notes


G E R M A N Y

HYPO REAL ESTATE: Fails Europe-Wide Banking Stress Test


I R E L A N D

ANGLO IRISH: Ex-Chief Withdrew EUR1.75 Million From Pension Pot
ELAN CORP: Agrees to Pay Fine Over Zonegran Marketing Practices
LIMERICK INDEPENDENT: Applications v. Directors to Push Through
SEAGATE TECHNOLOGY: S&P Raises Corporate Credit Rating to 'BB+'

* IRELAND: Did Not Fail to Act on Banking Crisis, Lenihan Says


I T A L Y

FIAT SPA: Fitch Affirms Low-B IDRs & Sr. Unsecured Debt Ratings


K A Z A K H S T A N

ALLIANCE BANK: Fitch Upgrades Issuer Default Rating to 'B-'


S P A I N

FONCAIXA HIPOTECARIO: Moody's Puts (P)B1 Rating on Class C Notes
TDA CAJAMAR: Fitch Affirms Rating on Class D Notes at 'BB+'
TDA UNICAJA: Fitch Downgrades Rating on Class D Notes to 'CC'

* SPAIN: Bad Debt Held by Spanish Banks Tops EUR100 Bil. in May


U K R A I N E

KARYA TOUR: Blames US$2 Million Loss on Sunspot
METINVEST HOLDING: Obtains US$700 Million Loan From Bank Syndicate


U N I T E D   K I N G D O M

BEMROSEBOOTH: Sold to Paragon Group; More Than 160 Jobs Saved
DFS FURNITURE: Seeks to Raise GBP240 Million From Bond Issue
DGM UK: In Administration; Calls in RSM Tenon
EUROSAIL-UK 2007-3: Fitch Puts Note Ratings on Negative Watch
INTERNATIONAL POWER: Mulls Combination of UK & Turkey Assets

LASER ELECTRICAL: Raises GBP767,942 From Closing Down Sale
MARTIN YAFFE: Goes Into Administration

* UK: 2,169 Directors of Insolvent Firms Face Disqualification




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F R A N C E
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PEUGEOT SA: Fitch Affirms Low-B IDRs & Sr. Unsecured Debt Ratngs
----------------------------------------------------------------
Fitch Ratings has affirmed the ratings of its five publicly rated
European car manufacturers, and changed the Outlooks on Peugeot SA
(PSA) and Renault SA to Stable from Negative, on Daimler AG to
Positive from Negative, and on Volkswagen Group to Positive from
Stable.  The Outlook on Fiat SpA is Negative.  A full list of the
rating actions follows below.

"European manufacturers have gained headroom in their ratings
since the rating actions taken in March 2009," says Emmanuel
Bulle, Senior Director in Fitch's European Corporates group.  "The
changes in Outlooks reflect the continuous improvement in European
original equipment manufacturers' financial profiles since 2009,
the faster-than-anticipated recovery in global auto sales and
Fitch's revised expectations for key credit metrics in the next
couple of years."

Daimler AG:

* Outlook changed to Positive from Negative, Long-term Issuer
  Default Rating and senior unsecured debt affirmed at 'BBB+',
  Short-term IDR affirmed at 'F2'

* Daimler Coordination Center SCS: Short-term debt affirmed at
  'F2'

* Daimler International Finance BV: senior unsecured debt affirmed
  at 'BBB+'

* Daimler North America Corporation: senior unsecured debt
  affirmed at 'BBB+', Short-term debt affirmed at 'F2'

* Daimler UK Finance: Short-term debt affirmed at 'F2'

Fiat Spa:

* Long-term IDR and senior unsecured debt affirmed at 'BB+',
  Short-term IDR affirmed at 'B'.  Outlook Negative

* Fiat Finance and Trade Ltd: senior unsecured debt affirmed at
  'BB+', Short-term debt affirmed at 'B'

Peugeot SA:

* Outlook changed to Stable from Negative, Long-term IDR and
  senior unsecured debt affirmed at 'BB+', Short-term IDR affirmed
  at 'B'

Renault SA:

* Outlook changed to Stable from Negative, Long-term IDR and
  senior unsecured debt affirmed at 'BB'

Volkswagen Group:

* Outlook changed to Positive from Stable, Long-term IDR and
  senior unsecured debt affirmed at 'BBB+', Short-term IDR
  affirmed at 'F2'.

Volkswagen has demonstrated strong resilience to external shocks
and maintained positive operating margins and solid net cash
throughout the global financial crisis that hit the industry.
Likewise, although it posted negative operating profit in 2009,
Daimler managed to maintain a substantial net cash position and
low gross leverage in 2008 and 2009.  The change to Positive
Outlooks for these two companies reflects Fitch's expectation of
further improvement in their financial profile by 2011, which
should therefore comfortably position their credit metrics in the
'A' category.  In particular, Fitch expects Daimler and Volkswagen
to report cash flow from operations on total debt in excess of 50%
in the next couple of years, gross EBITDAR-based leverage between
0.5x and 1.5x and further increase in profitability.  However,
Volkswagen's ratings continue to reflect execution risk of the
group's planned merger with Porsche SE in 2011 and the potential
final impact of this transaction on Volkswagen's financial
structure.

The improvement in PSA's, Renault's and Fiat's key financial
metrics through 2011 forecasted by Fitch provides more headroom in
the current ratings and this is reflected in the change in Outlook
to Stable.  However, key credit metrics remain weak and do not
support a return to the investment-grade category at this point.
Although Fiat's operating margins remained resilient in 2009 and
Fitch believes that the group's financial flexibility has
improved, the Negative Outlook reflects the uncertainties
regarding the future financial structure of the group following
Fiat's plan to demerge its agricultural and construction equipment
and truck divisions, and a part of its powertrain division, into a
separate entity.  Fitch also believes that Fiat, Renault and PSA
are the manufacturers most exposed to a double-dip economic
scenario in Europe, due to their exposure to this continent,
notably south European markets.

Overall liquidity of the sector has improved materially compared
with 2009 and lifted some of the pressure on OEMs and their
financial services operations.  All European manufacturers
successfully accessed the market in H209 and H110 and Fitch does
not have particular concern about refinancing their 2010
maturities.

Fitch expects all European manufacturers to report solid H110
figures, as buoyant emerging markets offset the weakness of some
European markets.  However, the environment remains challenging
given the slow global economic recovery and that the effect of the
end of scrapping incentive plans will be fully felt in H210.
Fiscal tightening measures may also affect consumer and corporate
confidence and weigh on new car sales, which are highly correlated
to GDP growth.

Longer-term, European auto manufacturers continue to face numerous
structural issues and challenges.  In spite of a recovery in
global sales, overcapacity remains acute in the sector and will
continue to weigh on profitability.  Pricing has also improved
recently but relentless competition should put further pressure on
revenue and operating margins.  Manufacturers' profitability and
cash generation will also suffer from increased R&D spending, in
particular due to further investment in future powertrains
(hybrids, electric vehicles, fuel cell) to comply with stringent
emission regulations.

Fitch's assumptions include a decline in new vehicles sales by
approximately 7%-8% in Europe in 2010, followed by a rebound of
approximately 5% in 2011.  Pricing should remain firm this year
and mitigate the unit sales decline.  Among key other markets,
Fitch assumes sales to exceed 11.4 million units in the US, and
increase by 20% in China (they were up 48% in H110, but the base
effect should become unfavorable in H210) and 8% in Brazil in
2010.

Separately, Fitch has issued a new sector-specific criteria report
explaining the credit factors the agency uses to analyze global
automotive manufacturers.  As a starting point, Fitch believes
that the characteristics of the global auto industry will lead
most companies to fall naturally into the 'BBB' and 'BB' rating
categories although it is possible that companies could be rated
higher due to strong specific credit characteristics.  The next
step examines company-specific factors which influence ratings,
such as the business and geographic diversification of a company,
its market share and its product positioning.  Finally, the report
cites mid-point financial metrics -- profitability, coverage and
leverage ratios, and cash flow measures -- which are commensurate
with relevant rating categories.


REMBRANDT I: Fitch Cuts Ratings on Two Classes of Notes to 'D'
--------------------------------------------------------------
Fitch Ratings has taken various rating actions on Rembrandt I
Synthetic CDO Limited's notes as detailed below:

  -- EUR7,800,000 class I secured notes (ISIN XS0171178154):
     downgraded to 'A' from 'AA'; removed from Rating Watch
     Negative; assigned Outlook Stable; Loss Severity Rating 'LS-
     5'

  -- EUR19,500,000 class II secured notes (ISIN XS0171178238):
     affirmed at 'BBB'; Outlook revised to Negative from Stable;
     Loss Severity Rating 'LS-4'

  -- EUR11,310,000 class III secured notes (ISIN XS0171178311):
     affirmed at 'BB'; Outlook revised to Negative from Stable;
     Loss Severity Rating 'LS-4'

  -- EUR17,550,000 class IV secured notes (ISIN XS0171178584):
     affirmed at 'CC'; Recovery Rating of 'RR6'

  -- EUR3,250,000 class V-A secured notes (ISIN XS0171178667):
     downgraded to 'D' from 'CC'

  -- EUR1,820,000 class V-B secured notes (ISIN XS0171179046):
     downgraded to 'D' from 'CC'

  -- EUR61,238,121 combination notes (ISIN XS0172108317): affirmed
     at 'BB'; Outlook Stable

The downgrade of the class V-A and class V-B notes reflects the
10% recovery on the settlement of the Ambac Assurance Corporation
credit event.  This loss caused the impairment of the class V
notes.  As a result of the impairment, Fitch has downgraded both
classes of notes to 'D' from 'CC'.

Fitch has additionally downgraded the class I notes due to the
U.S. Bankruptcy Court's rulings in respect of the former Lehman
Brothers.  Fitch had placed the class I tranche on Rating Watch
Negative in March 2010 due to the U.S. Bankruptcy Court's ruling
earlier in the year.  The ruling stated that transaction
documentation clauses which subordinated swap termination payments
below the payments due to rated noteholders upon an event of
default triggered by the counterparty's bankruptcy (flip clause)
were unenforceable.  While the ruling may ultimately be subject to
an appeal, Fitch no longer takes sufficient comfort that the flip
clause provides appropriate mitigation to CDS counterparty default
risk.  The agency has therefore capped the rating of the class I
note at 'A'/Outlook Stable, which is based on the rating of Morgan
Stanley ('A'/Stable/'F1') as CDS counterparty.

Fitch expects the class IV notes, rated 'CC', to experience
impairment upon any further portfolio defaults.  The portfolio
contains two 'CCC'-rated and lower rated exposures, and Fitch
considers 14.6% of the portfolio sub-investment grade.  The class
IV notes can only withstand approximately 0.5% of additional
portfolio losses before defaulting.

Fitch views the credit enhancement of the class II and III notes
to be sufficient to support their current respective ratings of
'BBB' and 'BB'.  Due to the number of sub-investment grade names
and Negative Outlooks within the underlying portfolio, Fitch has
revised the Outlooks on the class II and III tranches to Negative,
indicating that the notes could experience further negative rating
migration before maturity in June 2011.

The combination notes consist of the full nominal amount of
classes I to V-A and the sub-A piece.  The combination notes are
rated for the repayment of the initial principal balance only.
The current rated balance represents 52% of the initial
combination notes balance.  Fitch projects the cash flows
generated by the combination notes will redeem the remaining rated
balance in a 'BB' rating stress.

The transaction is a synthetic collateralized debt obligation
backed by collateral securities funded from the net issuance
proceeds of the class I to V notes.  The reference portfolio is
subject to substitutions which are made by Fortis Investment
Management France S.A. as investment manager.  The notes have a
scheduled maturity in June 2011 and credit risk is mitigated by a
credit default swap with Morgan Stanley Capital Services, Inc.  In
addition, Rembrandt, a special purpose vehicle incorporated under
the laws of Jersey, issued combination notes consisting of the
full notional balance of class I, II, III, IV, V-A and the unrated
subordinated-A notes.  The combination notes have identical rights
to the underlying notes.

The ratings of the class I to V-B notes address the full and
timely payment of interest and ultimate repayment of principal by
scheduled maturity in June 2011.  The rating of the combination
notes addresses the ultimate repayment of the initial investment
by scheduled maturity in June 2011.


RENAULT SA: Fitch Affirms BB Long-Term IDR & S Unsec. Debt Ratng
----------------------------------------------------------------
Fitch Ratings has affirmed the ratings of its five publicly rated
European car manufacturers, and changed the Outlooks on Peugeot SA
(PSA) and Renault SA to Stable from Negative, on Daimler AG to
Positive from Negative, and on Volkswagen Group to Positive from
Stable.  The Outlook on Fiat SpA is Negative.  A full list of the
rating actions follows below.

"European manufacturers have gained headroom in their ratings
since the rating actions taken in March 2009," says Emmanuel
Bulle, Senior Director in Fitch's European Corporates group.  "The
changes in Outlooks reflect the continuous improvement in European
original equipment manufacturers' financial profiles since 2009,
the faster-than-anticipated recovery in global auto sales and
Fitch's revised expectations for key credit metrics in the next
couple of years."

Daimler AG:

* Outlook changed to Positive from Negative, Long-term Issuer
  Default Rating and senior unsecured debt affirmed at 'BBB+',
  Short-term IDR affirmed at 'F2'

* Daimler Coordination Center SCS: Short-term debt affirmed at
  'F2'

* Daimler International Finance BV: senior unsecured debt affirmed
  at 'BBB+'

* Daimler North America Corporation: senior unsecured debt
  affirmed at 'BBB+', Short-term debt affirmed at 'F2'

* Daimler UK Finance: Short-term debt affirmed at 'F2'

Fiat Spa:

* Long-term IDR and senior unsecured debt affirmed at 'BB+',
  Short-term IDR affirmed at 'B'.  Outlook Negative

* Fiat Finance and Trade Ltd: senior unsecured debt affirmed at
  'BB+', Short-term debt affirmed at 'B'

Peugeot SA:

* Outlook changed to Stable from Negative, Long-term IDR and
  senior unsecured debt affirmed at 'BB+', Short-term IDR affirmed
  at 'B'

Renault SA:

* Outlook changed to Stable from Negative, Long-term IDR and
  senior unsecured debt affirmed at 'BB'

Volkswagen Group:

* Outlook changed to Positive from Stable, Long-term IDR and
  senior unsecured debt affirmed at 'BBB+', Short-term IDR
  affirmed at 'F2'.

Volkswagen has demonstrated strong resilience to external shocks
and maintained positive operating margins and solid net cash
throughout the global financial crisis that hit the industry.
Likewise, although it posted negative operating profit in 2009,
Daimler managed to maintain a substantial net cash position and
low gross leverage in 2008 and 2009.  The change to Positive
Outlooks for these two companies reflects Fitch's expectation of
further improvement in their financial profile by 2011, which
should therefore comfortably position their credit metrics in the
'A' category.  In particular, Fitch expects Daimler and Volkswagen
to report cash flow from operations on total debt in excess of 50%
in the next couple of years, gross EBITDAR-based leverage between
0.5x and 1.5x and further increase in profitability.  However,
Volkswagen's ratings continue to reflect execution risk of the
group's planned merger with Porsche SE in 2011 and the potential
final impact of this transaction on Volkswagen's financial
structure.

The improvement in PSA's, Renault's and Fiat's key financial
metrics through 2011 forecasted by Fitch provides more headroom in
the current ratings and this is reflected in the change in Outlook
to Stable.  However, key credit metrics remain weak and do not
support a return to the investment-grade category at this point.
Although Fiat's operating margins remained resilient in 2009 and
Fitch believes that the group's financial flexibility has
improved, the Negative Outlook reflects the uncertainties
regarding the future financial structure of the group following
Fiat's plan to demerge its agricultural and construction equipment
and truck divisions, and a part of its powertrain division, into a
separate entity.  Fitch also believes that Fiat, Renault and PSA
are the manufacturers most exposed to a double-dip economic
scenario in Europe, due to their exposure to this continent,
notably south European markets.

Overall liquidity of the sector has improved materially compared
with 2009 and lifted some of the pressure on OEMs and their
financial services operations.  All European manufacturers
successfully accessed the market in H209 and H110 and Fitch does
not have particular concern about refinancing their 2010
maturities.

Fitch expects all European manufacturers to report solid H110
figures, as buoyant emerging markets offset the weakness of some
European markets.  However, the environment remains challenging
given the slow global economic recovery and that the effect of the
end of scrapping incentive plans will be fully felt in H210.
Fiscal tightening measures may also affect consumer and corporate
confidence and weigh on new car sales, which are highly correlated
to GDP growth.

Longer-term, European auto manufacturers continue to face numerous
structural issues and challenges.  In spite of a recovery in
global sales, overcapacity remains acute in the sector and will
continue to weigh on profitability.  Pricing has also improved
recently but relentless competition should put further pressure on
revenue and operating margins.  Manufacturers' profitability and
cash generation will also suffer from increased R&D spending, in
particular due to further investment in future powertrains
(hybrids, electric vehicles, fuel cell) to comply with stringent
emission regulations.

Fitch's assumptions include a decline in new vehicles sales by
approximately 7%-8% in Europe in 2010, followed by a rebound of
approximately 5% in 2011.  Pricing should remain firm this year
and mitigate the unit sales decline.  Among key other markets,
Fitch assumes sales to exceed 11.4 million units in the US, and
increase by 20% in China (they were up 48% in H110, but the base
effect should become unfavorable in H210) and 8% in Brazil in
2010.

Separately, Fitch has issued a new sector-specific criteria report
explaining the credit factors the agency uses to analyze global
automotive manufacturers.  As a starting point, Fitch believes
that the characteristics of the global auto industry will lead
most companies to fall naturally into the 'BBB' and 'BB' rating
categories although it is possible that companies could be rated
higher due to strong specific credit characteristics.  The next
step examines company-specific factors which influence ratings,
such as the business and geographic diversification of a company,
its market share and its product positioning.  Finally, the report
cites mid-point financial metrics -- profitability, coverage and
leverage ratios, and cash flow measures -- which are commensurate
with relevant rating categories.


WENDEL SA: S&P Downgrades Corporate Credit Rating to 'BB-'
----------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
corporate credit rating on France-based operating holding company
Wendel to 'BB-' from 'BB'.  At the same time, S&P affirmed its 'B'
short-term rating on the company.  The outlook is stable.

S&P also lowered its issue ratings on Wendel's EUR2.6 billion
bonds and EUR1.2 billion revolving credit facility to 'BB-' from
'BB', in line with the corporate credit rating.  The recovery
rating is unchanged at '3', indicating S&P's expectation of
meaningful (50%-70%) recovery in an event of payment default.

"The rating action reflects that Standard & Poor's adjusted loan-
to-value ratio for Wendel has exceeded levels commensurate with a
'BB' rating for an extended time period -- namely 45% on a
sustainable basis through the first half of 2010," said Standard &
Poor's credit analyst Eric Tanguy.

At end-May 2010, Wendel's LTV ratio stood at around 54%.  S&P
thinks it remained above 50% as of end June and that it will
likely continue to exceed this mark in the third quarter.  Despite
asset disposals and a relative improvement in equity prices over
the past 12 months, the LTV ratio remains persistently high and
above that of Wendel's European peers.  Still, S&P expects Wendel
to take further actions to restore its LTV ratio to 50% by early
2011, bringing it in line with S&P's 'BB-' rating based on the
company's current portfolio composition.

"The stable outlook reflects S&P's view that Wendel will take
action to deleverage and bring its LTV ratio to 50% by early
2011," added Mr. Tanguy.

A material deterioration in the share prices of Wendel's key
investments could weaken its credit metrics beyond what S&P
incorporates in the current ratings, however.  This would in turn
likely lead to a downgrade, barring any disposals that Wendel
would potentially undertake to mitigate such negative share price
movements.

Alternatively, sizable disposals associated with redeeming
existing debt or a significant increase in asset value could lead
to an improvement in Wendel's financial risk profile.


=============
G E O R G I A
=============


GEORGIAN RAILWAY: S&P Assigns 'B+' Rating on US$250 Mil. Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' rating to the
proposed US$250 million senior unsecured bond due 2015 issued by
Georgian Railway LLC (B+/Stable/B).  The rating on the bond is
subject to final documentation.  On June 14, 2010 S&P assigned
ratings to Georgian Railway, a vertically integrated rail
infrastructure operator wholly owned by the Government of Georgia
(B+/Stable/B).

The bond proceeds will part-fund Georgian Railway's very high
capital expenditure program, which includes a railway construction
project to bypass the capital Tbilisi and a modernization project
to optimize operations, increase freight transit capacity, and
reduce operating costs.  S&P understand that Georgian Railway will
secure further sources of funding from internally generated free
cash flow and, from 2011, a recently signed Swiss franc
(CHF)146 million (US$139 million) loan granted by the European
Bank for Reconstruction and Development (AAA/Stable/A-1).

The company has not finalized its hedging strategy with respect to
increased mismatches resulting from the U.S. dollar-denominated
bond and revenue that is predominantly in Swiss francs.  However,
S&P understand that Georgian Railway plans to maintain the unused
portion of the bond proceeds in U.S. dollars, which helps to
offset the short-term foreign currency risk.

According to management, revenue for the first five months of 2010
amounted to Georgian lari (GEL) 151 million (US$82 million), which
is 39% more than in the corresponding period of 2009, and 15% more
than the amount budgeted by Georgian Railway.  For full-year 2010,
management expects the company's ratio of debt to EBITDA to not
exceed 3x and EBITDA to reach at least GEL160 million (EBITDA for
the first five months of 2010 was GEL75 million).  S&P notes that
these estimates are slightly more than S&P's current full-year
expectations.  However, S&P expects the company's funds from
operations-to-adjusted debt ratio to remain at about 20% in 2011-
2013.

The documentation for the proposed bond contains a clause in which
Georgian Railway must not exceed a ratio of debt to EBITDA of 4x.
S&P understands that Georgian Railway's current financial policy
provides adequate headroom under this covenant.  The bond
documentation also includes a covenant triggered by the loss of
majority ownership by the government.  This mirrors S&P's view
that the government will remain the company's dominant
shareholder.

S&P could lower the ratings on Georgian Railway if S&P believed
that the pace of its capital expenditure could exceed its
financial and operational performance, which could potentially
threaten the company's expected debt ratios.  S&P has capped the
ratings on Georgian Railway using the local currency long-term
rating on the Government of Georgia.  However, if S&P were to
raise the sovereign rating or revise the outlook to positive the
ratings on Georgian Railway would not necessarily move in line.
Any such move would likely depend on S&P's view of the company's
stand-alone credit profile at that time.


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


HYPO REAL ESTATE: Fails Europe-Wide Banking Stress Test
-------------------------------------------------------
Hypo Real Estate Holding AG, the German lender taken over by the
government following the financial crisis, failed a Europe-wide
banking stress test, Aaron Kirchfeld, Oliver Suess and Jann
Bettinga at Bloomberg News report, citing two people familiar with
the results.

According to Bloomberg, the people, who declined to be identified
before an announcement on July 23, said Hypo Real Estate didn't
pass a stress scenario on its capital that assumes an economic
slowdown and sovereign-debt losses.  Bloomberg notes one person
said the Munich-based lender is probably the only German bank to
fail the test.

Bloomberg recalls Germany's Soffin bank-rescue fund had provided
Hypo Real Estate with EUR7.87 billion in funds by the end of
March.  Bloomberg relates the state-owned lender has said it may
require a total of EUR10 billion from the fund.  Bloomberg
recounts the lender said on July 8 that it received approval to
establish a so-called bad bank to transfer as much as EuR210
billion of investments consisting of "non-strategic assets and
risk positions."  The assets will be transferred in the second
half of this year, Bloomberg says, citing the German Financial
Markets Stabilization Agency, which manages the bank-rescue fund.

As reported by the Troubled Company Reporter-Europe on May 25,
2010, Bloomberg News said that Soffin posted a full-year loss of
EUR4.26 billion (US$5.34 billion) from the bailout of Hypo Real
Estate, whose potential collapse "threatened the stability" of the
German economy.  Bloomberg disclosed Soffin said in an e-mailed
statement that it wrote down the value of its investments in Hypo
Real Estate and its Deutsche Pfandbriefbank AG unit by EUR4.75
billion, erasing an operating profit of EUR497 million.  Bloomberg
recalled Germany took over Hypo Real Estate in 2009 after its
Dublin-based Depfa Bank Plc unit couldn't raise financing when the
bankruptcy of Lehman Brothers Holdings Inc. froze credit markets.
The German bank needed a total of EUR102 billion in credit lines
and debt guarantees from government and financial institutions to
stave off collapse, according to Bloomberg.

                      About Hypo Real Estate

Germany-based Hypo Real Estate Holding AG (FRA:HRXG) --
http://www.hyporealestate.com/-- is a German holding company for
the Hypo Real Estate Group.  It is an international real estate
financing company, combining commercial real estate financing
products with investment banking.  The Company divides its
operations into three business units: Commercial Real Estate,
which provides real estate financing on the international and
German market; Public Sector & Infrastructure Finance, and Capital
Markets & Asset Management.  Hypo Real Estate Group operates
through a number of subsidiaries, including, among others, Hypo
Real Estate Bank International AG that focuses on Pfandbrief-based
commercial real estate financing in all international markets, and
offers large-volume investment banking and structured finance
transactions; Hypo Real Estate Bank AG that focuses on the
commercial real estate financing and refinancing business in
Germany, and DEPFA Bank plc in Dublin, Ireland, which is a
provider of public finance.


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


ANGLO IRISH: Ex-Chief Withdrew EUR1.75 Million From Pension Pot
---------------------------------------------------------------
Michael O'Farrell at Mail Online reports that Sean FitzPatrick
withdrew EUR1.75 million from his pension pot to buy a life
insurance plan that will guarantee his wife an extra EUR55,000 a
year.

Mail Online relates the former chairman of Anglo Irish Bank was
declared bankrupt on Monday, meaning any income or assets could be
confiscated and given to creditors who are owed some EUR150
million.

However, his wife's income cannot be touched; and so he moved last
year to ensure that he put some of his cash into her name in a way
that would prevent it being recouped, Mail Online notes.
According to Mail Online, knowing that half of their joint pension
would be seized by the Bankruptcy Court, he took EUR1.7 million
from the pot and put it into an annuity bearing only her name.  He
made the move a month after Anglo had begun demanding repayment of
his outstanding loans, Mail Online recounts.

According to Mail Online, the Bankruptcy Court can overturn
transactions which it believes have been undertaken to reduce the
bankrupt person's assets.  However it can only go back six months
-- so the annuity purchased by FitzPatrick last December, seven
months ago, is almost certainly untouchable, Mail Online notes.

At the same time, FitzPatrick also withdrew a further EUR900,000
from his pension savings for an unknown purpose, further reducing
the amount of assets available to repay creditors, Mail Online
says.

The pension fund withdrawals -- amounting to more than EUR2.2
million -- all took place after Anglo had demanded repayment of
all debts from him, Mail Online notes.  As a result, the value of
his pension fund was reduced from EUR9.1 million to the current
figure of EUR6.8 million, Mail Online states.

As reported by the Troubled Company Reporter-Europe on July 14,
2010, Irish Independent said on July 12 all of Mr. FitzPatrick'
assets and debts fell under the control of special court official
Chris Lehane.  Irish Independent disclosed Mr. Lehane 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.

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'.


ELAN CORP: Agrees to Pay Fine Over Zonegran Marketing Practices
---------------------------------------------------------------
John O'Doherty at The Financial Times reports that Elan has agreed
to pay a US$204 million (GBP133 million) fine over its marketing
practices for its anti-epilepsy drug Zonegran, in a settlement
reached with US prosecutors.

According to the FT, the Ireland-based drugmaker divested the
product in 2004, selling it to the Japanese group Eisai for US$130
million, with the potential for further earnings of US$110 million
on the sale.  But in 2006, Elan received a subpoena from the U.S.
Department of Justice and an investigation was launched into the
company's marketing of the drug before the divestment as a therapy
for conditions for which it had not been approved, the FT recalls.

Elan has not disclosed what the nature of this marketing activity
was or what the unapproved conditions for which the drug was
marketed were, the FT notes.

As part of the agreement, Elan will pay US$203.5 million to settle
all the claims against it from the US government and from state
healthcare groups, the FT discloses.  Elan will also plead guilty
to a misdemeanor violation of the U.S. Federal Food, Drug and
Cosmetic Act, and will enter into a "corporate integrity
agreement" with the U.S. Office of Inspector General of the
Department of Health and Human Services, the FT states.

The FT notes Elan cautioned that the resolution of the current
Zonegran litigation could potentially expose the company to "other
litigation by state government entities or private parties".

                      About Elan Corporation

Headquartered in Dublin, Ireland, Elan Corporation, plc --
http://www.elan.com/-- is a neuroscience-based biotechnology
company.  Its principal research and development, manufacturing
and marketing facilities are located in Ireland and the United
States.  Elan's operations are organized into two business units:
Biopharmaceuticals and Elan Drug Technologies.  Biopharmaceuticals
engages in research, development and commercial activities
primarily in neuroscience, autoimmune and severe chronic pain.
EDT focuses on the specialty pharmaceutical industry, including
specialized drug delivery and manufacturing.

Elan shares trade on the New York, London and Dublin Stock
Exchanges.

                           *     *     *

Elan Corporation plc is currently rated B2 (Corporate Family
Rating) with a positive rating outlook by Moody's Investors
Service.


LIMERICK INDEPENDENT: Applications v. Directors to Push Through
---------------------------------------------------------------
Limerick Leader reports that at the High Court in Dublin this
Monday, Ms. Justice Finlay granted Limerick Independent Newspapers
Ltd.'s liquidator, Brian McEnery of accountancy firm Horwatch,
Bastow, Charleton, permission to bring separate applications
against the company's directors.

Limerick Leader relates Karen McDonnell, representing Connolly-
Sellors-Geraghty solicitors, sought permission to make the
applications in relation to Declan and Susan Moylan as early as
possible as there is "some urgency" in the matter.  According to
Limerick Leader, the judge agreed and she said she would hear the
applications on September 7.  The nature of applications was not
disclosed to the court as formal legal documents have not yet been
filed, Limerick Leader notes.

The court was previously told that an application under Section
160 of the Companies Act may be brought against Mr. and Mrs.
Moylan, Limerick Leader states.  If granted, they would be
disqualified from acting as a director or managing a company for
five years, Limerick Leader says.

As reported by the Troubled Company Reporter on May 3, 2010,
Limerick Post said the High Court's Mr. Justice Roderick Murphy
ordered the winding up of Limerick Independent Newspapers over
substantial unpaid debts.  Limerick Post disclosed the winding-up
petition was lodged by the company's former printers Webprint
Concepts Ltd., which was owed more than EUR90,000.  The petition
was supported by the Revenue Commissioners who were owed by the
company of over a quarter of a million euro in VAT, PAYE and PRSI,
according to Limerick Post.

Limerick Independent Newspapers Ltd. is an Irish weekly newspaper.


SEAGATE TECHNOLOGY: S&P Raises Corporate Credit Rating to 'BB+'
---------------------------------------------------------------
Standard & Poor's Ratings Services said it raised its corporate
credit rating on Ireland-based hard disk drive manufacturer
Seagate Technology to 'BB+' from 'BB-' and removed the ratings
from CreditWatch Positive, where S&P placed them on April 26,
2010.

S&P also raised its senior secured rating on Seagate Technology
International to 'BBB' from 'BB+'.  The recovery rating on second-
lien debt issued by this subsidiary is '1', indicating very high
expectations of full (90%-100%) recovery prospects in the event of
a payment default.  In addition, S&P raised its senior unsecured
rating on Seagate HDD Cayman to 'BB+' from 'B+'.  S&P revised the
recovery rating on the senior unsecured debt to '3' from '5'.  The
'3' recovery rating indicates expectations of average (30%-50%)
recovery in the event of a payment default.  Issue-level ratings
at Seagate Technology (US) Holdings Inc. are 'NR', as the company
has called for redemption all debt at that subsidiary.

"The rating actions reflect Seagate's currently strong financial
profile that results from strong demand for personal computers and
notebooks, allowing for high utilization of capacity and good
pricing," said Standard & Poor's credit analyst Lucy Patricola.
The company's improved penetration in the notebook segment has
also contributed to stronger profitability.  Standard & Poor's
adjusted EBITDA margins have surpassed pre-downturn levels in the
past two quarters, at about 26%, and are likely to remain at that
level for the next two to three quarters.


* IRELAND: Did Not Fail to Act on Banking Crisis, Lenihan Says
--------------------------------------------------------------
The Irish Times reports that Minister for Finance Brian Lenihan
has rejected claims by Fine Gael that the Irish government failed
to act on official advice on the banking crisis.

The report relates Fine Gael's finance spokesman Michael Noonan
earlier said Taoiseach Brian Cowen, in his former role as minister
for finance, had been "asleep on the job" and that he had not made
the necessary hard decisions.

According to the report, a final piece of written advice given to
the government by outside consultants Merrill Lynch in the run-up
to the bank guarantee in September 2008 recommended a EUR20
billion emergency lending fund and highlighted serious concerns
about a blanket guarantee.

The report notes Mr. Lenihan said the 54 documents published by
the Dail Committee of Public Accounts supported the government's
decision to introduce the guarantee in September 2008.

"Contrary to what Deputy Noonan claims, the documents released
indicate that the Government was aware of the turbulence in the
international financial markets," the report quoted Mr. Lenihan as
saying Saturday.  "The documents show the Government and its
officials were actively engaged in contingency planning in
response to the fast changing financial crisis and alive to its
possible implications for the Irish financial system."

The report relates Mr. Noonan on Saturday said the Department of
Finance had warned of a possible banking crisis in January 2008,
nine months before the government introduced the blanket guarantee
to the banks.  According to the report, he said the Department
advocated that the legal mechanisms should be put in place so that
banks could be put into examinership, the report notes.  Mr.
Noonan said a month later the Department advised against a global
guarantee, the report notes.


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


FIAT SPA: Fitch Affirms Low-B IDRs & Sr. Unsecured Debt Ratings
---------------------------------------------------------------
Fitch Ratings has affirmed the ratings of its five publicly rated
European car manufacturers, and changed the Outlooks on Peugeot SA
(PSA) and Renault SA to Stable from Negative, on Daimler AG to
Positive from Negative, and on Volkswagen Group to Positive from
Stable.  The Outlook on Fiat SpA is Negative.  A full list of the
rating actions follows below.

"European manufacturers have gained headroom in their ratings
since the rating actions taken in March 2009," says Emmanuel
Bulle, Senior Director in Fitch's European Corporates group.  "The
changes in Outlooks reflect the continuous improvement in European
original equipment manufacturers' financial profiles since 2009,
the faster-than-anticipated recovery in global auto sales and
Fitch's revised expectations for key credit metrics in the next
couple of years."

Daimler AG:

* Outlook changed to Positive from Negative, Long-term Issuer
  Default Rating and senior unsecured debt affirmed at 'BBB+',
  Short-term IDR affirmed at 'F2'

* Daimler Coordination Center SCS: Short-term debt affirmed at
  'F2'

* Daimler International Finance BV: senior unsecured debt affirmed
  at 'BBB+'

* Daimler North America Corporation: senior unsecured debt
  affirmed at 'BBB+', Short-term debt affirmed at 'F2'

* Daimler UK Finance: Short-term debt affirmed at 'F2'

Fiat Spa:

* Long-term IDR and senior unsecured debt affirmed at 'BB+',
  Short-term IDR affirmed at 'B'.  Outlook Negative

* Fiat Finance and Trade Ltd: senior unsecured debt affirmed at
  'BB+', Short-term debt affirmed at 'B'

Peugeot SA:

* Outlook changed to Stable from Negative, Long-term IDR and
  senior unsecured debt affirmed at 'BB+', Short-term IDR affirmed
  at 'B'

Renault SA:

* Outlook changed to Stable from Negative, Long-term IDR and
  senior unsecured debt affirmed at 'BB'

Volkswagen Group:

* Outlook changed to Positive from Stable, Long-term IDR and
  senior unsecured debt affirmed at 'BBB+', Short-term IDR
  affirmed at 'F2'.

Volkswagen has demonstrated strong resilience to external shocks
and maintained positive operating margins and solid net cash
throughout the global financial crisis that hit the industry.
Likewise, although it posted negative operating profit in 2009,
Daimler managed to maintain a substantial net cash position and
low gross leverage in 2008 and 2009.  The change to Positive
Outlooks for these two companies reflects Fitch's expectation of
further improvement in their financial profile by 2011, which
should therefore comfortably position their credit metrics in the
'A' category.  In particular, Fitch expects Daimler and Volkswagen
to report cash flow from operations on total debt in excess of 50%
in the next couple of years, gross EBITDAR-based leverage between
0.5x and 1.5x and further increase in profitability.  However,
Volkswagen's ratings continue to reflect execution risk of the
group's planned merger with Porsche SE in 2011 and the potential
final impact of this transaction on Volkswagen's financial
structure.

The improvement in PSA's, Renault's and Fiat's key financial
metrics through 2011 forecasted by Fitch provides more headroom in
the current ratings and this is reflected in the change in Outlook
to Stable.  However, key credit metrics remain weak and do not
support a return to the investment-grade category at this point.
Although Fiat's operating margins remained resilient in 2009 and
Fitch believes that the group's financial flexibility has
improved, the Negative Outlook reflects the uncertainties
regarding the future financial structure of the group following
Fiat's plan to demerge its agricultural and construction equipment
and truck divisions, and a part of its powertrain division, into a
separate entity.  Fitch also believes that Fiat, Renault and PSA
are the manufacturers most exposed to a double-dip economic
scenario in Europe, due to their exposure to this continent,
notably south European markets.

Overall liquidity of the sector has improved materially compared
with 2009 and lifted some of the pressure on OEMs and their
financial services operations.  All European manufacturers
successfully accessed the market in H209 and H110 and Fitch does
not have particular concern about refinancing their 2010
maturities.

Fitch expects all European manufacturers to report solid H110
figures, as buoyant emerging markets offset the weakness of some
European markets.  However, the environment remains challenging
given the slow global economic recovery and that the effect of the
end of scrapping incentive plans will be fully felt in H210.
Fiscal tightening measures may also affect consumer and corporate
confidence and weigh on new car sales, which are highly correlated
to GDP growth.

Longer-term, European auto manufacturers continue to face numerous
structural issues and challenges.  In spite of a recovery in
global sales, overcapacity remains acute in the sector and will
continue to weigh on profitability.  Pricing has also improved
recently but relentless competition should put further pressure on
revenue and operating margins.  Manufacturers' profitability and
cash generation will also suffer from increased R&D spending, in
particular due to further investment in future powertrains
(hybrids, electric vehicles, fuel cell) to comply with stringent
emission regulations.

Fitch's assumptions include a decline in new vehicles sales by
approximately 7%-8% in Europe in 2010, followed by a rebound of
approximately 5% in 2011.  Pricing should remain firm this year
and mitigate the unit sales decline.  Among key other markets,
Fitch assumes sales to exceed 11.4 million units in the US, and
increase by 20% in China (they were up 48% in H110, but the base
effect should become unfavorable in H210) and 8% in Brazil in
2010.

Separately, Fitch has issued a new sector-specific criteria report
explaining the credit factors the agency uses to analyze global
automotive manufacturers.  As a starting point, Fitch believes
that the characteristics of the global auto industry will lead
most companies to fall naturally into the 'BBB' and 'BB' rating
categories although it is possible that companies could be rated
higher due to strong specific credit characteristics.  The next
step examines company-specific factors which influence ratings,
such as the business and geographic diversification of a company,
its market share and its product positioning.  Finally, the report
cites mid-point financial metrics -- profitability, coverage and
leverage ratios, and cash flow measures -- which are commensurate
with relevant rating categories.


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


ALLIANCE BANK: Fitch Upgrades Issuer Default Rating to 'B-'
-----------------------------------------------------------
Fitch Ratings has upgraded Kazakhstan-based Alliance Bank's Long-
term foreign currency Issuer Default Rating to 'B-' from 'RD'
('Restricted Default'), and assigned a Stable Outlook.  The rating
action follows the completion of the restructuring of Alliance's
liabilities and concludes the review of the bank's ratings
initiated by Fitch on 31 March 2010.

Alliance's ratings reflect its weak asset quality, negative equity
under IFRS, the challenges of refocusing the bank's business, weak
revenue generation, still heavy reliance on wholesale funding and
the absence of any track record following the completion of its
debt restructuring.  However, the ratings also consider the
benefits of government control of the bank, including the
potential for moderate further government support, in case of
need.

As of April 1, 2010, Alliance's asset quality was poor, with
impairment reserves equal to about 70% of the loan book.  The bank
has established an internal division of its loan book into 'good'
and 'bad' portfolios, with the latter, comprising 77% of the book
at end-Q110, including all loans showing signs of impairment or
having some potentially problematic features.  Fitch does not rule
out the possibility that the bank is over-provisioned, and
recoveries may ultimately exceed those suggested by current
reserve levels; however, this is a medium-term prospect.  In
particular, Fitch notes that a substantial number of borrowers in
the 'bad' portfolio are subject to criminal investigations and
legal proceedings involving the bank's former owners and
management.

Although following restructuring Alliance is in compliance with
Kazakh regulatory capital requirements, reported equity under end-
Q110 management IFRS accounts was negative.  This is explained by
the fact that KZT111 billion of preference shares held by
government agency Samruk-Kazyna and the bank's restructured
creditors are accounted for as liabilities, rather than equity,
under IFRS.  Achieving sustained internal capital generation will
be one of the bank's most critical and potentially difficult
challenges, especially given what Fitch expects to be only weakly
positive recurring pre-impairment profit in 2010.  Bottom line
performance will, to a significant degree, be impacted by loan
recoveries and impairment charges.

Although Alliance's funding structure has stabilized after
restructuring, re-shaping and improving the quality of its funding
will pose a challenge, as competition for depositors intensifies
and the bank is covenanted not to raise new wholesale funding in
the medium term.  Fitch does not rule out the possibility that the
bank may benefit from additional Kazakh state funding, in addition
to funds already provided by Samruk-Kazyna and the Development
Bank of Kazakhstan ('BBB-'/Stable).  Positive structural maturity
mismatches and less burdensome repayments in H210 support
liquidity in the short term.

Fitch incorporates into Alliance's ratings a moderate probability
that support would be provided to the bank by the Kazakh
government in case of need.  However, Alliance's ratings also
reflect Fitch's view that the bank does not represent a strategic
investment for Samruk-Kazyna, and Fitch's expectation that
potential state support is likely to diminish as the government
proceeds with the planned sale of the bank in the medium term.  A
sale of the bank would lead Fitch to review the IDRs.

Alliance's credit profile could benefit from evidence of greater
financial sustainability following restructuring, including
through restoration of the capital base, improvement in
performance and greater funding base diversification.  However, a
withdrawal of government funding support or further unreserved
loan losses, if incurred, could put downward pressure on the
ratings.

Alliance is now the 6th largest bank in Kazakhstan.  The bank
defaulted in 2009 due mainly to a high level of bad loans, and
following restructuring is now controlled by government-owned
National Welfare Fund Samruk-Kazyna (67% of both common and
preferred shares), with the other 33% held by creditors affected
by the restructuring.

The rating actions are:

  -- Long-term foreign currency IDR: upgraded to 'B-' from 'RD';
     Outlook Stable

  -- Long-term local currency IDR: assigned at 'B-'; Outlook
     Stable

  -- Short-term foreign currency IDR: upgraded to 'B' from 'RD';

  -- Individual Rating: upgraded to 'E' from 'F'

  -- Support Rating: affirmed at '5';

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

  -- Senior unsecured debt: upgraded to 'B-' from 'C'; Recovery
     Rating is 'RR4'

  -- Subordinated debt: assigned at 'CC'; Recovery Rating is 'RR6'

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


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


FONCAIXA HIPOTECARIO: Moody's Puts (P)B1 Rating on Class C Notes
----------------------------------------------------------------
Moody's Investors Service assigned provisional credit ratings to
these class of Notes issued by Foncaixa Hipotecario 11, Fondo de
Titulizacion de Activos:

* (P) Aaa to the EUR6,110,000,000 Class A due 2053
* (P) A1 to the EUR97,500,000 Class B due 2053
* (P) B1 to the EUR292,500,000 Class C due 2053

The transaction represents the securitization of Spanish mortgage
loans originated by la "Caixa".  The weighted-average current LTV
(based on valuation at origination) is 51.61%, and its seasoning
is 4.87 years for the provisional portfolio as of June 27, 2010.
Delinquencies reported on prior transactions of this issuer are
better than the average delinquency reported in the Spain index.
The portfolio will be serviced by la "Caixa".

The strengths of the transaction are (i) a reserve fund fully
funded upfront equal to 2% of the notes to cover potential
shortfall in interest and principal, and (ii) a strong interest
rate swap in place to provide a guaranteed excess spread (0.50%)
above Euribor to the transaction.  The key weaknesses Moody's
committees particularly focused on were the risky characteristics
of the portfolio being securitized, including flexible mortgages
with the possibility of further additional draw downs and payment
holidays.  This was taken into consideration in Moody's collateral
loss assumptions, whereby the expected portfolio loss of 1.5% and
the MILAN Aaa required credit enhancement of 6.0% serve as input
parameters for Moody's cash flow model, which is based on a
probabilistic lognormal distribution as described in the report
"The Lognormal Method Applied to ABS Analysis", published in
September 2000.

The V Score for this transaction is Medium, which is in line with
the V score assigned for the Spanish RMBS sector.  Only one sub
component underlying the V Score have been assessed lower than the
average for the Spanish RMBS sector.  Issuer/Sponsor/Originator's
Historical Performance Variability is Low/Medium, which is lower
than the Medium V score assigned for the Spanish RMBS sector for
this sub component because the Foncaixa Hipotecario securitization
program have historically lower defaults and arrears than
traditional mortgages pools in Spain.  V-Scores are a relative
assessment of the quality of available credit information and of
the degree of dependence on various assumptions used in
determining the rating.  High variability in key assumptions could
expose a rating to more likelihood of rating changes.  The V-Score
has been assigned accordingly to the report "V-Scores and
Parameter Sensitivities in the Major EMEA RMBS Sectors" published
in April 2009.

The provisional rating addresses the expected loss posed to
investors by the legal final maturity.  The structure allows for
timely payment of interest on Classes A, B and C Notes and
ultimate payment of principal at par on or before the legal final
maturity date for all the Notes.  Moody's ratings address only the
credit risks associated with the transaction.  Other non-credit
risks have not been addressed but may have a significant effect on
the yield to investors.


TDA CAJAMAR: Fitch Affirms Rating on Class D Notes at 'BB+'
-----------------------------------------------------------
Fitch Ratings has upgraded two and affirmed three tranches of TDA
Cajamar 2, Fondo de Titulizacion de Activos, a Spanish RMBS
transaction.  The rating actions taken are:

  -- Class A2 (ISIN ES0377965019) affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class A3 (ISIN ES0377965027) affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class B (ISIN ES0377965035) upgraded to 'AA' from 'A+';
     Outlook Stable; assigned Loss Severity Rating 'LS-2'

  -- Class C (ISIN ES0377965043) upgraded to 'A' from 'A-';
     Outlook Stable; assigned Loss Severity Rating 'LS-3'

  -- Class D (ISIN ES0377965050) affirmed at 'BB+'; Outlook
     Stable; assigned Loss Severity Rating 'LS-2'

Historically, loans in arrears by more than three months have been
below 1% of the current portfolio outstanding.  The good
performance to date is also reflected in the low level of
defaulted loans, compared with most other Fitch-rated Spanish RMBS
transactions.  As a result the notes were able to switch to pro-
rata amortization in June 2010.

The reserve fund draws seen between December 2006 and September
2007 were a result of an increase in the level of defaults.  These
were cured in September 2008.  Since then the issuer has been able
to generate sufficient gross excess spread necessary for
provisioning for defaulted loans in arrears by more than 12
months.  Consequently, in March 2010 the reserve fund amortization
triggers were met, but no reserve fund amortization has yet been
reported.

Recoveries on defaulted loans reported to date remain quite low
(6% of the total amount defaulted to date).  The weighted-average
seasoning of the pool is more than six years, while the weighted-
average current loan-to-value ratio is low at 53.8%.  Taking into
account Fitch's house view of 30% peak-to-trough house price
decline, the agency believes that losses on the sale of the
underlying properties are expected to remain low, if any.

The transaction structure also includes a liquidity line endowment
which ranks subordinate to the reserve fund in the priority of
payments and captures the excess spread available at the bottom of
the waterfall.  It currently stands at EUR1.7 million compared
with EUR3.4 million, which would need to be repaid once the pool
reaches 10% of its original balance.  Fitch sees this feature as a
positive for the transaction, as it is cash available to the
issuer in times of need.

Fitch believes that the pipeline of loans that are expected to
default in the upcoming payment dates will remain at amounts seen
in the past five months.  For this reason, the agency also
believes that the transaction is not likely to see reserve fund
draws.  The decline in credit support available to the junior
notes will come from the amortization of the reserve fund, which
is why the class D notes have been affirmed instead of being
upgraded.  Meanwhile, the sequential amortization of the notes has
resulted in a strong build-up in credit support available to the
senior and mezzanine tranches, which is reflected in the upgrade
of the class B and C notes.

Fitch is currently assessing the impact of a recent US Bankruptcy
Court decision on the enforceability of 'flip clauses' that
subordinate swap termination payments below payments due to rated
note-holders upon an event of default triggered by the
counterparty's bankruptcy.  JP Morgan Chase ('AA-'/Stable/'F1+'),
is the interest rate swap counterparty and guarantor on TDA
Cajamar 2.  This court decision may impact the rating of some of
the transaction notes.


TDA UNICAJA: Fitch Downgrades Rating on Class D Notes to 'CC'
-------------------------------------------------------------
Fitch Ratings has downgraded the class D notes of TDA Unicaja 1,
Fondo de Titulizacion de Activos, a Spanish RMBS transaction.  It
has also revised the Outlook on class C notes to Negative from
Stable.  The rating actions taken are:

  -- Class A (ISIN ES0338456009) affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class B (ISIN ES0338456017) affirmed at 'A'; Outlook Stable;
     assigned Loss Severity Rating 'LS-3'

  -- Class C (ISIN ES0338456025) affirmed at 'BBB'; Outlook
     revised to Negative from Stable; assigned Loss Severity
     Rating 'LS-3'

  -- Class D (ISIN ES0338456033) downgraded to 'CC' from 'CCC';
     assigned Recover Rating 'RR5'

Following four consecutive reserve fund draws, in May 2010 the
issuer reported a replenishment of EUR18,281.  The replenishment
was possible due to the decline in the rate of default of loans
and presence of recoveries.  At present the cumulative level of
defaults in TDA Unicaja 1 stands at 2% of the original pool, of
which 32.4% have been recovered by the servicer.  With the
stabilization in the level of loans in arrears by more than three
months, Fitch expects the level of defaults to remain within the
amounts seen in the past.  Further reserve fund draws will depend
on the level of recoveries received from defaulted borrowers.  The
agency believes the reserve fund draws will remain within the
amounts seen to date, and are not expected to lead to a
significant decline in the credit support available to the class C
notes.  This view is reflected in the revision of Outlook to
Negative on the class C notes, which also indicates that if
performance of the underlying assets deteriorates further,
negative rating actions may be taken on this junior tranche.

Since the first reserve fund draw occurred in May 2009, the
bondholders of the class D notes have seen their interest payments
deferred.  The payment of interest will not resume until the
reserve fund is fully replenished.  In addition, the principal
payments on the un-collateralized class D notes are made from
funds released due to the amortization of the reserve fund, which,
in Fitch's view, is unlikely to occur in the upcoming payment
dates, as further reserve fund draws are expected.  For this
reason, Fitch has downgraded the un-collateralized tranche to 'CC'
and assigned a Recovery Rate of 'RR5'.

The future performance of the underlying assets of TDA Unicaja 1
remains exposed to the lagging effect of unemployment, as well as
the inevitable increase in interest rates, both of which are
expected to affect borrower affordability.  The pool comprises
loans with high loan-to-value ratios (weighted average CLTV is
currently at 82%) and self-employed borrowers.  With Fitch's
expected house price decline of 30% peak-to-trough, defaulted
loans with high LTVs expose the issuer to potential losses upon
the sale of the underlying property.


* SPAIN: Bad Debt Held by Spanish Banks Tops EUR100 Bil. in May
---------------------------------------------------------------
Christopher Bjork at Dow Jones Newswires reports that bad debt
held by Spanish banks topped EUR100 billion for the first time in
May, as more companies filed for bankruptcy and unemployment
continued to rise in the economic downturn.

According to Dow Jones, data published by the Bank of Spain Monday
showed total past-due loans rose to EUR100.37 billion in May from
EUR99.89 billion in April, and from EUR86.74 billion a year
earlier.  The May figure equates to 5.5% of total loans, roughly
the same as in April, Dow Jones states.

Spain during the decade-long construction and real estate boom
came to rely heavily on financing from abroad to finance its
strong growth, Dow Jones notes.  That trend was quickly reversed
when the housing bubble bust and the economy fell into recession
two years ago, Dow Jones recounts.

"The economy needs to continue to deleverage," Dow Jones quoted
Laura Velasco, an economist with Banesto Bolsa in Madrid, as
saying.  "Banks need to refocus their lending activity to other
sectors than construction, and they have to weigh the risks
carefully when they do give loans."

Citing the latest data on corporate failures from the National
Statistics Institute, or INE, Dow Jones says one out of every
three companies that filed for bankruptcy in Spain in the first
quarter were construction or real estate companies.  Some 1,623
companies sought protection from creditors in Spain in the first
quarter, Dow Jones discloses.


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


KARYA TOUR: Blames US$2 Million Loss on Sunspot
-----------------------------------------------
UkrainianJournal.com reports that Karya Tour travel agency said
that its Turkish partner Sunspot caused a US$2 million loss to the
company.  Citing Monday's Segondnya newspaper, the report says the
sum was sent by Karya Tour to its partner to reserve rooms in
hotels, flights and other services.

The report recalls Kiev Economic Court on July 5 declared the
travel agency bankrupt and started liquidation procedures.

"We're trying to clear up where money is, but we are not able to
contact Sunspot representatives.  However, this does not mean that
we'll wait until we return these millions [of dollars].  We want
to return money to travel agencies irrespective of this fact;
we'll check the firm's assets, accounts," the travel agency's
management told the publication, according to the report.

Karya Tour's management said the company received 280 applications
from Ukrainian travel agencies asking for the return of money for
defaulted tours, the report notes.

Karya Tour travel agency is based in Kiev.


METINVEST HOLDING: Obtains US$700 Million Loan From Bank Syndicate
------------------------------------------------------------------
Daryna Krasnolutska at Bloomberg News, citing Kommersant, reports
that Metinvest Holding LLC obtained a US$700 million loan from a
group of lenders organized by Deutsche Bank AG.

According to Bloomberg, the newspaper said the five-year
syndicated loan, completed last week, will pay interest at 3
percentage points more than the London interbank offered rate.

Metinvest B.V., a company set up under Dutch law, but with major
operations in the Ukraine is the largest steel and iron ore
producer in the Ukraine.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on July 13,
2010, Moody's Investors Service changed the outlook on the B2
corporate family rating of Ukrainian steel producer Metinvest B.V.
to stable from positive.  Moody's said despite the strong expected
cash flow generation and high cash balance helped by a bond issue
of US$500 million in April 2010 Metinvest's liquidity profile
remains just sufficient for the next 4 quarters.  If the company
were not to continue to refinance progressively its short-term
debt maturities, cash sources particularly consisting of cash and
funds from operations might not be sufficient to fully cover cash
outflows for working capital, capex, debt repayments, dividends,
possible purchase consideration for Ilyich and cash for day-to-day
needs.


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


BEMROSEBOOTH: Sold to Paragon Group; More Than 160 Jobs Saved
-------------------------------------------------------------
BBC News reports that BemroseBooth has been sold to the Paragon
Group, saving more than 160 jobs.

According to the report, administrators said several offers were
received and considered before the sale was finalized.

The company employs 125 people in Hull and 34 in Thornaby on Tees,
the report discloses.

As reported by the Troubled Company Reporter-Europe on July 1,
2010, Bemrosebooth appointed David Rubin and Henry Lan of David
Rubin & Partners as joint administrators on June 28.  PrintWeek
disclosed Mr. Rubin said BemroseBooth suffered from "over-capacity
prevailing in the printing market," as well as declining
profitability in the telecom scratch cards market.

On June 24, the Troubled Company Reporter-Europe, citing
PrintWeek, reported that some 120 employees were made redundant
from Bemrosebooth's Derby plant on June 21, 40 from its Derby-
based head office and 26 from its Hull site on June 22.

BemroseBooth was the largest supplier of car parking tickets in
the UK and also produced rail and event tickets, phone cards,
business diaries and calendars, according to BBC News.


DFS FURNITURE: Seeks to Raise GBP240 Million From Bond Issue
------------------------------------------------------------
Andrea Felsted, Martin Arnold and Anousha Sakoui at The Financial
Times report that DFS is hoping to raise GBP240 million (US$367
million) from a bond issue to repay the GBP182 million the company
was loaned by Lord Kirkham, its founder, in a buy-out in April by
Advent International, the private equity group.

According to the FT, repayment of the vendor loan completes the
balance of the more than GBP300 million that Lord Kirkham earned
from selling the company to Advent.  Lord Kirkham also retained
DFS Properties, which owns about a third of the DFS store estate,
the FT notes.

The FT says Advent plans to use some proceeds from the bond issue
to pay itself back GBP60 million of its initial GBP262.5 million
equity investment in DFS.

DFS seeks to raise GBP240 million in secured seven-year bonds, the
FT discloses.  Goldman Sachs and JPMorgan are to arrange the sale,
the FT states.

DFS, formerly Direct Furnishing Supplies, is a national furniture
retailer in the United Kingdom which specializes in sofas and soft
furnishings.  It serves the lower end of the furniture market and
offers credit terms on its goods.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on July, 2010,
2010, Moody's Investors Service assigned a provisional (P) B1
corporate family rating and Probability of Default Rating to DFS
Furniture Holdings plc and a (P) B1 to the senior secured notes
maturing in 2017 and issued at DFS Furniture Holdings plc.
Moody's said the outlook is stable.  Moody's said the rating is
constrained, however, by the relatively high adjusted pro forma
leverage following the most recent acquisition by private equity
firm Advent International, and the company's relatively small
scale and geographic scope.

As reported by the Troubled Company Reporter-Europe on July, 2010,
2010, Standard & Poor's Ratings Services said that it assigned its
'B' long-term corporate credit rating to DFS Furniture Holdings
PLC.  S&P said the outlook is stable.  At the same time, S&P
assigned a 'B' issue rating to the proposed GBP240 million senior
secured notes (proposed notes) to be issued by DFS.  S&P also
assigned a recovery rating of '3' to the proposed notes,
indicating S&P's expectation of meaningful (50%-70%) recovery in
the event of a payment default.  "The rating reflects S&P's view
of DFS' relatively high leverage under the proposed capital
structure following a leveraged buyout by private equity group
Advent International in April 2010," said Standard & Poor's credit
analyst Marketa Horkova.


DGM UK: In Administration; Calls in RSM Tenon
---------------------------------------------
DGM UK has gone into administration, new media age reports.

The report relates the company has called in financial specialist
RSM Tenon and is in the process of informing creditors.

DGM was founded in 1999 and has a UK staff of approximately 50.
The company has been a pioneer in performance marketing, with many
key members of the UK affiliate sector having previously worked
there.  The company has worked with brands including Vodafone,
Tiscali and JD Williams, according to new media age.


EUROSAIL-UK 2007-3: Fitch Puts Note Ratings on Negative Watch
-------------------------------------------------------------
Fitch Ratings has placed Eurosail-UK 2007-3 BL PLC's senior A1 to
A2 notes on Rating Watch Negative following the start of a High
Court legal action by the trustee to obtain an interpretation of
certain provisions of the transaction documentation.

Two other Eurosail transactions, Eurosail-UK 2007-4 NP and
Eurosail-UK 2007-6 NC, have similar profiles to Eurosail-UK 2007-3
BL PLC and so the outcome of the legal proceedings could also
negatively affect these transactions.  As a result, Fitch has also
placed the class A1 to A2 notes of these two transactions on
Rating Watch Negative.  A total of ten tranches have been placed
on RWN.  A full rating breakdown is provided at the end of this
comment.

Eurosail-UK 2007-3 BL, Eurosail-UK 2007-4 NP and Eurosail-UK 2007-
6 NC are non-conforming UK RMBS transactions with collateral
originated primarily by the former UK mortgage lending
subsidiaries of Lehman Brothers.  The transactions have note
series denominated in sterling (GBP), US dollars (US$) and euros
(EUR).  The class A notes of the transactions consist of faster
paying class A1 notes, as well as 'time-subordinated' class A2 and
A3 notes that are scheduled to receive principal repayments
sequentially after the class A1 notes are paid in full.  At
closing, the transactions' interest rate and currency exposures
were hedged by interest rate and foreign exchange swaps provided
by Lehman Brothers Special Financing Inc.  LBSFI was a subsidiary
of Lehman Brothers and, following Lehman's insolvency in September
2008, LBSFI ceased performing on its swap obligations to the
transactions, leaving interest rate and foreign exchange exposures
effectively unhedged.

Fitch understands that certain class A3 noteholders of Eurosail-UK
2007-3 BL are claiming that the issuer is unable to pay its debts
under the UK Insolvency Act 1986, as the value of the issuer's
assets are less than its liabilities.  Consequently, these
noteholders believe that the trustee should serve a notice on the
issuer that an event of default has occurred, which could affect
all the outstanding notes.  However, the issuer contends that the
existence of a post enforcement call option means that the issuer
cannot be deemed unable to pay its debts within the provisions of
the Insolvency Act.

The parties filed factual evidence at a preliminary court hearing
on 19 May 2010, including expert evidence regarding the accounting
methods and principles used in the preparation of Eurosail-UK
2007-3 issuer's accounts.  The trustee issued proceedings in April
2010 to obtain an interpretation by the High Court of the
provisions of the transaction documentation.  The issuer says the
hearing, commencing July 19, 2010, is expected to last three days.

If an event of default were declared, it would result in the
application of the post-enforcement priority of payments and the
class A1, A2 and A3 noteholders being repaid on a pro-rata basis,
rather than sequentially in accordance with the currently
applicable pre-enforcement priority of payments.  A switch to the
post-enforcement priority of payments could also result in
enforcement of the security for the notes, which could involve a
liquidation of the underlying collateral to repay the notes.

Upon an event of default being declared, Fitch would downgrade all
the notes of the three transactions to 'D'.  Fitch has
consequently placed the senior tranches of the three transactions
which are rated above 'CCC' on RWN.  The resolution of the RWN
status will depend upon the outcome of the court proceedings and
the subsequent reactions of the transaction parties and
noteholders.

As 'CCC' ratings and below already demonstrate substantial credit
risk with a real possibility of default, Fitch does not place such
distressed rating categories on RWN.  This is why the agency has
not taken any rating actions on some note classes of the three
deals.  However, such ratings would be downgraded to 'D' if an
event of default is declared.

A further Lehman Brothers originated transaction, EMF-UK 2008-1,
also has unhedged foreign currency liabilities and 'time-
subordinated' class A note sub-categories.  However, in the case
of this transaction, the highest-rated notes are at 'CCC' and so
have not been placed on RWN.  Three other Lehman Brothers
originated transactions also had currency swaps that were provided
by LBSFI and now have liabilities that are effectively unhedged
due to LBSFI ceasing to meet its swap obligations.  However, these
transactions do not include any 'time-subordinated' sub-categories
of class A notes.

Fitch will seek to resolve the RWN on the Eurosail transactions
once there is greater clarity on whether an event of default will
be declared or not.  It is unclear at this stage when the
interpretation of the court will become available and what the
subsequent actions of the transaction parties and noteholders
would be.  Fitch will monitor the outcome of the legal case and
will comment further as appropriate.

The rating actions are:

Eurosail - UK 2007-3 BL plc

  -- Class A1b (ISIN XS0308649309) 'BBB'; placed on RWN
  -- Class A1c (ISIN XS0308653244) 'BBB'; placed on RWN
  -- Class A2a (ISIN XS0308648673) 'BB'; placed on RWN
  -- Class A2b (ISIN XS0308650224) 'BB'; placed RWN
  -- Class A2c (ISIN XS0308659795) 'BB'; placed RWN
  -- Class A3a (ISIN XS0308666493) 'CC'; Recovery Rating 'RR4'
  -- Class A3c (ISIN XS0308710143) 'CC'; Recovery Rating 'RR4'
  -- Class B1a (ISIN XS0308672384) 'C'; Recovery Rating 'RR5'
  -- Class B1c (ISIN XS0308716421) 'C'; Recovery Rating 'RR5'
  -- Class C1a (ISIN XS0308673192) 'C'; Recovery Rating 'RR5'
  -- Class C1c (ISIN XS0308718047) 'C'; Recovery Rating 'RR5'
  -- Class D1a (ISIN XS0308673945) 'C'; Recovery Rating 'RR5'
  -- Class E1c (ISIN XS0308725844) 'C'; Recovery Rating 'RR5'
  -- Class ETc (ISIN XS0309312543) 'C'; Recovery Rating 'RR5'

Eurosail-UK 07-4 BL PLC

  -- Class A1a (ISIN XS0311594740) 'BBB'; placed on RWN
  -- Class A1c (ISIN XS0311598907) 'BBB'; placed on RWN
  -- Class A2a (ISIN XS0311680747) 'BB'; placed on RWN
  -- Class A3a (ISIN XS0311702657) 'CCC'; Recovery Rating 'RR3'
  -- Class A3c (ISIN XS0311704356) 'CCC'; Recovery Rating 'RR3'
  -- Class B1a (ISIN XS0311705759) 'C'; Recovery Rating 'RR5'
  -- Class C1a (ISIN XS0311708696) 'C'; Recovery Rating 'RR5'
  -- Class D1a (ISIN XS0311713001) 'C'; Recovery Rating 'RR5'
  -- Class E1c (ISIN XS0311717416) 'C'; Recovery Rating 'RR5'

Eurosail-UK 07-6 NC PLC

  -- Class A1a (ISIN XS0332284651) 'BB'; placed on RWN
  -- Class A2a (ISIN XS0332285039) 'B'; placed on RWN
  -- Class A3a (ISIN XS0332285971) 'CC'; Recovery Rating 'RR5'
  -- Class B1a (ISIN XS0332286862) 'C'; Recovery Rating 'RR5'
  -- Class C1a (ISIN XS0332287084) 'C'; Recovery Rating 'RR5'
  -- Class D1a (ISIN XS0332287597) 'C'; Recovery Rating 'RR5'


INTERNATIONAL POWER: Mulls Combination of UK & Turkey Assets
------------------------------------------------------------
The Board of International Power is in preliminary discussions
with GDF Suez SA regarding a possible combination of International
Power and GDF Suez's Energy International Business Areas (outside
Europe) and certain assets in the UK and Turkey to create an
enlarged International Power which would be listed on the Official
List of the Financial Services Authority and traded on the Main
Market of the London Stock Exchange.

The Board of International Power believes that the possible
combination warrants consideration given the strategic rationale
and potential for synergies as a result of the combination and
discussions are continuing between the two parties regarding the
terms of the proposed combination (including the amount of net
debt that would be contributed with GDF Suez Energy
International).  If the combination were to be completed, it is
expected that shares in International Power would be issued to GDF
Suez and that, as a result, GDF Suez would be the majority
shareholder in the enlarged International Power.

The Board of International Power also confirms that, until such
time that a prospectus is published in relation to the potential
combination, or discussions between the parties are terminated or
such other date as required by the UK Listing Authority,
International Power will make any announcement that would be
required in order to be compliant with its obligation under the
FSA Disclosure and Transparency Rules on developments in relation
to the assets that it intends to acquire from GDF Suez, as if
those assets were already part of an enlarged International Power.

As the proposed combination, if completed, would be classified as
a reverse takeover of International Power under the Listing Rules
of the UK Listing Authority, applications would need to be
made in due course to the UK Listing Authority and the London
Stock Exchange for the Ordinary Shares of enlarged International
Power to be admitted to the Official List and to trading on the
London Stock Exchange respectively.  The eligibility of the
enlarged International Power to be admitted to the Official List
has not yet been agreed with the UK Listing Authority, although an
application regarding the eligibility of the combined
International Power and GDF Suez Energy International will be made
in the event agreement is reached in relation to a combination.

Should the proposed combination proceed, a prospectus will be
required to be published in relation to the application for
admission to the Official List of the new and existing shares in
International Power.  In accordance with the Listing Rules and the
Prospectus Rules of the UK Listing Authority, such a prospectus
would include audited financial statements of GDF Suez
Energy International prepared in accordance with such rules.  It
is possible that the financial information contained in any such
prospectus may differ from the audited combined accounts for GDF
Suez Energy International.

Shareholders are advised that there can be no certainty that the
discussions between International Power and GDF Suez will lead to
any agreement concerning the possible combination or as to the
timing or terms of any such agreement and there can be no
assurance that, even if reached, any such agreement would be
completed.  Any transaction would be subject, inter alia, to
International Power shareholder approval.  A further announcement
will be made as and when appropriate.

International Power plc -- http://www.ipplc.com/-- is a U.K.-
based global power developer.  International Power has power
plants in operation or under construction in Australia, the United
States of America, the United Kingdom, the Czech Republic, France,
Germany, Italy, the Netherlands, Portugal, Spain, Turkey, Bahrain,
Oman, Qatar, Saudi Arabia, the UAE, Indonesia, Pakistan, Puerto
Rico and Thailand.  International Power is listed on the London
Stock Exchange with ticker symbol IPR.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on May 6,
2010, Standard & Poor's Ratings Services said that it affirmed the
long-term corporate credit rating of 'BB' on U.K.-based power
developer International Power.  S&P said the outlook is stable.
At the same time, S&P assigned a 'BB' rating to the proposed
EUR250 million senior unsecured bond to be issued by International
Power Finance (2010) PLC.

As reported by the Troubled Company Reporter-Europe on May 6,
2010, Moody's Investors Service assigned a Ba3 rating to the
EUR250 million senior unsecured bonds due 2017 to be issued by
International Power plc.  At the same time, Moody's affirmed the
issuer rating at Ba3: the outlook remains stable.


LASER ELECTRICAL: Raises GBP767,942 From Closing Down Sale
----------------------------------------------------------
BBC News reports that the closing down sale of the Laser
electrical goods chain raised GBP767,942.

According to BBC, the administrators' report has shown that after
expenses and commission, just over GBP650,000 was available to be
returned to creditors.  BBC relates the administrators' report
noted that increasing competition from online and multi-national
retailers as well as the economic downturn led to the company's
demise.

BBC recalls the company collapsed in April with the closure of ten
stores and the loss of 140 jobs.  The administrators from
financial consultancy KPMG held a closing down sale shortly
afterwards, BBC recounts.

The administrators hope to raise a further GBP750,000 from the
sale of property, BBC notes.  BBC says the bulk of that money will
go to Ulster Bank, which was Laser's source of finance.

BBC states dozens of unsecured creditors who are owed more than
GBP2 million between them have been warned they are unlikely to
get anything.

Laser Electrical Ltd. was based in Northern Ireland.


MARTIN YAFFE: Goes Into Administration
--------------------------------------
Rochdale Online reports that Martin Yaffe International has been
placed into administration.

The report relates administrators at Manchester-based Leonard
Curtis have been appointed.

Based in Rochdale, Martin Yaffe International is a family-owned
toy distributor.  The firm manufactured and supplied a range of
character licensed toy products, featuring popular children's
characters such as Bob the Builder, Thomas & Friends, Waybuloo and
Dora the Explorer, according to Rochdale Online.


* UK: 2,169 Directors of Insolvent Firms Face Disqualification
--------------------------------------------------------------
Gary Howes at Director of Finance online, citing City law firm
Wedlake Bell, reports that the number of cases launched to ban
company directors has jumped by 17% over the last year as credit
crunch related insolvency and fraud started to feed through the
system.

According to the report, 2,169 directors of insolvent companies
faced disqualification proceedings in the year to March 31, 2010,
up 17% from 1,852 the year before.

"These figures suggest that the authorities are not accepting the
recession as an excuse for behavior that is considered to be unfit
by a director," the report quoted Edward Starling, Partner and
Head of the Rescue and Restructuring team at Wedlake Bell, as
saying.  "A recession traditionally leads some directors to break
the law in a last ditch attempt to save their business or their
own personal financial situation.  When a company goes bust and an
insolvency practitioner gets appointed these irregularities are
uncovered."

Wedlake Bell explains that the number of directors from each
insolvent company facing disqualification proceedings increased
21% last year, the report discloses.  The report notes Wedlake
Bell said the biggest increase in proceedings against directors
was for making non-commercial transactions while the company was
insolvent (up 56%, from 249 to 388).  Disqualification proceedings
could increase further, the report states.

The report relates Edward Starling points out that the recent
change of government could spur more proceedings next year if
funding is not cut.  He explains that if an insolvency
practitioner believes a company director has engaged in activity
deemed unfit of their position, a report is submitted to the
Department of Business, Innovation and Skills which decides
whether or not to launch disqualification proceedings, the report
discloses.



                            *********

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,
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                 * * * End of Transmission * * *