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        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, August 4, 2010, Vol. 11, No. 152

                            Headlines



B U L G A R I A

MUNICIPAL BANK: S&P Gives Negative Outlook; Affirms 'B+/B' Rating


G E O R G I A

* GEORGIA: Russia May Provoke Default on Foreign Debts


G E R M A N Y

ALMATIS BV: Oaktree Says DIC Plan Leaves Too Much Debt
ALMATIS GROUP: Gets U.S. Nod to Enter Into Plan Deal with DIC
ARCANDOR AG: Maurizio Borletti Makes Bid for Karstadt Unit
SKY DEUTSCHLAND: Issues Profit Warning; Unveils Refinancing Offer


G R E E C E

DANAOS CORP: Posts US$79.8 Million Net Loss in Q1 Ended March 31


I C E L A N D

GLITNIR BANK: Secures New Freezing Order for Asgeir Johannesson


I R E L A N D

ALLIED IRISH: Pretax Losses May Hit EUR3 Billion, Analysts Say

* IRELAND: Lack of Credit Access Puts Small Businesses at Risk


I T A L Y

SAFILO GROUP: Net Loss Narrows to EUR3.3 Mil. in First Half 2010


K A Z A K H S T A N

ZHAIKMUNAI LP: S&P Affirms 'B-' Long-Term Corporate Credit Rating


N O R W A Y

PETROLEUM GEO-SERVICES: Moody's Upgrades Senior Rating to 'Ba1'


R U S S I A

ALLIANCE OIL: Fitch Assigns 'B' Senior Unsecured Rating
COMSTAR UNITED: S&P Gives Positive Outlook; Affirms 'BB' Rating
MOBILE TELESYSTEMS: S&P Gives Positive Outlook; Keeps 'BB' Rating


S P A I N

INAER AVIATION: S&P Raises Corporate Credit Rating to 'B+'


S W E D E N

FORD MOTOR: Completes Sale of Volvo Cars to Geely for US$1.5BB


U N I T E D   K I N G D O M

BLUE CITY: Fitch Downgrades Rating on Class B1/B2 Notes to 'C'
BRITISH AIRWAYS: Talks With Unite to Resume Next Week
DUNFERMLINE PRESS: Lloyds Banking Group May Acquire Stake
HULL CITY: Owner Russell Bartlett Rules Out Administration
LEHMAN BROTHERS: Eurosail Bond Not in Default, U.K. Court Rules

LEHMAN BROTHERS: Court of Appeal Overturns Client Money Judgments
SOPHOS PLC: S&P Assigns 'B' Long-Term Corporate Credit Rating
SOUTHEND UNITED: Settles Tax Debts; Averts Administration

* UK: Illegal Dividend Payments by Insolvent Firms Spark Probe
* UK: Car Sector Insolvency Down in June; Late Payments Rise


X X X X X X X X

* EUROPE: Banks Need to Refinance US$122 Billion Bonds This Year
* EUROPE: Basel Committee Softens Bank Capital & Liquidity Rules




                         *********



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B U L G A R I A
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MUNICIPAL BANK: S&P Gives Negative Outlook; Affirms 'B+/B' Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
outlook on Bulgaria-based Municipal Bank A.D. to negative from
stable.  At the same time, S&P affirmed its 'B+/B' counterparty
credit ratings on the bank.

The ratings on Municipal Bank reflect S&P's assessment of the
bank's ability to cope with continued asset quality deterioration,
in light of its modest financial flexibility and capitalization,
relatively small domestic franchise, limited provisioning, and
poor profitability.  They also reflect the increased economic
risks in the Republic of Bulgaria (BBB/Stable/A-3) and S&P's
concerns about their adverse impact on Bulgaria's banking sector.

Supporting rating factors include: the bank's leading position in
municipal financing, which in S&P's view seems well secured in the
foreseeable future, and adequate liquidity and funding.

The ratings on Municipal Bank reflect its stand-alone credit
profile, which S&P assesses at 'B', as well as its opinion that
there is a "moderate" likelihood that the City of Sofia
(BB+/Positive/--) would provide timely and sufficient
extraordinary support to the bank in the event of financial
distress.  S&P add one notch of uplift to the stand-alone credit
profile of Municipal Bank, which mainly reflects its status as a
government-related entity, and its parental support.  In
accordance with S&P's criteria for GREs, its view of a "moderate"
likelihood of extraordinary government support is based on its
assessment of Municipal Bank's:

  * "Strong" link with Sofia, given its 67% stake in the bank; and
  * "Limited" role in servicing Sofia's municipal budget.

The negative outlook on Municipal Bank reflects S&P's concerns
about the bank's ability to cope with the impact of the
deteriorated domestic environment and economic growth prospects on
its stand-alone credit profile, particularly asset quality.  It
also reflects S&P's belief that the bank's loss absorption
cushions in the form of credit provision, earnings, and capital
remain limited.

S&P would consider a negative rating action if the bank's stand-
alone credit profile, especially in terms of its asset quality and
capitalization, deteriorated beyond S&P's expectations; if its
"strong" link with Sofia weakened; or if the bank lost Sofia's
budgetary funds.

S&P could revise the outlook on the bank back to stable if there
is evidence that asset quality pressures are easing and that a
better provisioning cushion exists.  This is also conditional on a
considerable easing of pressures in the operating environment and
the bank demonstrating adequate resilience to these new
conditions.  This would mean maintaining adequate liquidity and
asset quality, improving capitalization, and reducing
concentrations; or being acquired by a more supportive strategic
investor with higher creditworthiness that is committed to
developing the bank's franchise and providing capital.


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G E O R G I A
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* GEORGIA: Russia May Provoke Default on Foreign Debts
------------------------------------------------------
ABC.az reports that Russia may provoke a default of Georgia on
foreign debts as it tries to obtain the country's consent to its
membership in the World Trade Organization.

Citing a National Bank of Georgia report, ABC.az says the
country's overall external debt stood at US$8.6 billion or 80.3%
of GDP.

According to ABC.az, in order to avoid technical default, Georgia
should have in an asset just over US$500 million for the provision
of a grace period on payments, but it had not such money.  ABC.az
says in these circumstances, Russia, which once gave Georgia
US$117.4 million, may require immediate repayment of debt that
will cause a default of Georgia.  As the Georgian government did
not fulfill the requirements of the IMF and World Bank to reduce
the budget deficit, this state can save itself from the Russian
financial threat only in one way: by taking a loan from
Azerbaijan, which this year has already rescued Belarus from the
technical default before the Russian Gazprom, ABC.az notes.


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


ALMATIS BV: Oaktree Says DIC Plan Leaves Too Much Debt
------------------------------------------------------
Bill Rochelle at Bloomberg News reports that first-lien lender
Oaktree Capital Management LLC is arguing that Almatis BV will be
saddled with too much debt if a revised reorganization plan goes
through.  Oaktree's bid to buy Almatis fell by the wayside when
Almatis' owner, Dubai International Capital LLC, produced a
substitute plan giving more to second-lien lenders.  Oaktree said
in papers filed July 29 that the new plan is based on "an inflated
valuation" and will leave the Company with "too much debt."  DIC,
which is to provide some of the new financing, "has proven to be
unreliable," Oaktree said.  Oaktree also has "grave concern" about
whether the new plan can be confirmed.

As reported by the TCR on July 29, Almatis B.V. is asking for
approval of a "plan support agreement" on a revised restructuring
proposal arranged by DIC.  DIC arranged the restructuring proposal
after obtaining an underwritten US$535 million debt financing.
The financing would help fully repay Almatis' senior lenders and
would allow Almatis' junior lenders to recover more than under the
existing prepackaged restructuring plan proposed by Oaktree
Capital Management L.P. for the Company.

The Oaktree-led prepackaged restructuring plan filed in late
April has the support of Almatis' senior lenders.  Oaktree
particularly owns 46% of the Company's senior debt.  The
prepackaged plan contemplates that Oaktree would get an 80% stake
in Almatis upon the Company's emergence from bankruptcy.  In
turn, Almatis' debts would be to halve to about US$422 million,
with senior lenders which are owed about US$680 million, being
offered options under the plan.  The Company also executed a plan
support agreement in relation to the Oaktree-led plan.

DIC and the Company's junior lenders, however, have vigorously
opposed the initial prepackaged plan, asserting that it would
wipe out DIC's equity stake in the Company and the debt claims of
more subordinated mezzanine and second-lien lenders.

DIC's discontent of the Initial Plan led it to come up with an
alternative plan for Almatis that would preserve its interest in
the Company.

If approved, the DIC Plan Support Agreement will pave the way for
Almatis to withdraw its prepackaged plan that pays senior
creditors somewhere in the 85% range and junior creditors hardly
anything, according to New York-based Gibson Dunn & Crutcher LLP,
which represents Almatis.

                      About Almatis Group

Alamtis B.V., and its affiliates filed for Chapter 11 on April 30,
2010 (Bankr. S.D.N.Y. Lead Case No. 10-12308).  Almatis B.V.
estimated assets of US$500 million to US$1 billion and debts of
more than US$1 billion as of the bankruptcy filing.

Almatis, operationally headquartered in Frankfurt, Germany, is a
global leader in the development, manufacture and supply of
premium specialty alumina products.  With nearly 900 employees
worldwide, the company's products are used in a wide variety of
industries, including steel production, cement production, non-
ferrous metal production, plastics, paper, ceramics, carpet
manufacturing and electronic industries.  Almatis operates nine
production facilities worldwide and serves customers around the
world.  Until 2004, the business was known as the chemical
business of Alcoa.  Almatis is now owned by Dubai International
Capital LLC, the international investment arm of Dubai Holding.

Michael A. Rosenthal, Esq., at Gibson, Dunn & Crutcher LLP, serves
as counsel to the Debtors in the Chapter 11 cases.  Linklaters LLP
is the special English and German counsel and De Brauw Blackstone
Westbroek N.V. is Dutch counsel.  Epiq Bankruptcy Solutions, LLC,
serves as claims and notice agent.

Bankruptcy Creditors' Service, Inc., publishes Almatis Bankruptcy
News.  The newsletter tracks the Chapter 11 proceeding and
ancillary foreign proceedings undertaken by Almatis B.V., and its
affiliates.  (http://bankrupt.com/newsstand/or 215/945-7000)


ALMATIS GROUP: Gets U.S. Nod to Enter Into Plan Deal with DIC
-------------------------------------------------------------
The Almatis Group has received authority to enter into a Plan
Support Agreement with DIC and certain holders of the second lien,
mezzanine and junior mezzanine debt of the Almatis Group.  The
Plan Support Agreement paves the way for the Almatis Group, before
the end of the week, to withdraw its currently pending pre-
packaged plan and file the New Plan, a DIC-led fully committed
refinancing, in the reorganization cases under Chapter 11 of the
United States Bankruptcy Code pending in the United States
Bankruptcy Court for the Southern District of New York.  The Group
will also file later this week a Disclosure Statement related to
the New Plan.

The New Plan has the support of Almatis Group's largest
shareholder, Dubai International Capital, the international
investment arm of Dubai Holding, and requisite holders of the
Almatis Group's second lien, mezzanine and junior mezzanine debt.
Pursuant to a settlement also announced by the Almatis Group
today, Oaktree Capital Management, the largest single holder of
the Group's senior debt has agreed to support the New Plan.  The
settlement with Oaktree Capital Management is subject to approval
of the Bankruptcy Court.

The DIC-led refinancing provides for the full repayment of the
Group's senior first lien debt, and also proposes significantly
enhanced distributions to the junior creditors of the Group.
Funding for the New Plan will come from a US$100 million equity
contribution that DIC has already escrowed for this purpose with
JP Morgan and from approximately US$600 million of debt financing
to be provided by a consortium of JP Morgan, Bank of America
Merrill, GSO Capital Partners, GoldenTree Asset Management and
Sankaty Credit Opportunities IV.

The court has scheduled the hearing to consider approval of the
Disclosure Statement related to the New Plan, and the settlement
with Oaktree Capital Management, for August 23, 2010.  Almatis
anticipates the confirmation of the new plan of reorganization in
late September.

While the New Plan is being considered by the Court, the court
approval that enables the Group to continue to operate in the
ordinary course of business led by the current management team
remains in place.  This includes the approval to use its cash to
continue wage, salary and benefit payments and to pay all vendors
in the ordinary course for goods and services delivered after the
filing.  In addition, the Company received court authority to pay
prepetition claims of employees and non-US trade vendors and
prepetition claims of critical US trade vendors.

The financial restructuring will enable Almatis to regain
financial flexibility, support future growth and protect the
Company from future volatility in its marketplace.

"We have spent the last several weeks carefully evaluating the
opportunity presented by the New Plan, finalizing the terms of the
funding to be provided by DIC, GSO Capital Partners, GoldenTree,
Sankaty and JPMorgan/ BoA. We are confident that the refinancing
implemented by the New Plan is in the interests of all
stakeholders, including employees, customers, lenders and other
business partners," said Remco de Jong, CEO of Almatis.  "We
remain committed to concluding the Chapter 11 process as quickly
as possible and look forward to pursuing growth opportunities with
the support of our shareholders in the near future."

The consolidated case number for the chapter 11 filings by the
Group is 10-12308.

                       About Almatis Group

Alamtis B.V., and its affiliates filed for Chapter 11 on April 30,
2010 (Bankr. S.D.N.Y. Lead Case No. 10-12308).  Almatis B.V.
estimated assets of USUS$500 million to USUS$1 billion and debts
of more than USUS$1 billion as of the bankruptcy filing.

Almatis, operationally headquartered in Frankfurt, Germany, is a
global leader in the development, manufacture and supply of
premium specialty alumina products.  With nearly 900 employees
worldwide, the company's products are used in a wide variety of
industries, including steel production, cement production, non-
ferrous metal production, plastics, paper, ceramics, carpet
manufacturing and electronic industries.  Almatis operates nine
production facilities worldwide and serves customers around the
world.  Until 2004, the business was known as the chemical
business of Alcoa.  Almatis is now owned by Dubai International
Capital LLC, the international investment arm of Dubai Holding.

Michael A. Rosenthal, Esq., at Gibson, Dunn & Crutcher LLP, serves
as counsel to the Debtors in the Chapter 11 cases.  Linklaters LLP
is the special English and German counsel and De Brauw Blackstone
Westbroek N.V. is Dutch counsel.  Epiq Bankruptcy Solutions, LLC,
serves as claims and notice agent.

Bankruptcy Creditors' Service, Inc., publishes Almatis Bankruptcy
News.  The newsletter tracks the Chapter 11 proceeding and
ancillary foreign proceedings undertaken by Almatis B.V., and its
affiliates.  (http://bankrupt.com/newsstand/or 215/945-7000)


ARCANDOR AG: Maurizio Borletti Makes Bid for Karstadt Unit
----------------------------------------------------------
Holger Elfes at Bloomberg News reports that Maurizio Borletti, the
owner of Italy's La Rinascente and France's Printemps department
stores, made an approach for insolvent German competitor Karstadt
AG.

Bloomberg relates Mr. Borletti on Monday said in a telephone
interview that he submitted the offer, worth EUR100 million
(US$131.8 million) on July 29 to administrator Klaus Hubert Goerg.
According to Bloomberg, Mr. Borletti said U.S. retail liquidator
Gordon Brothers Group LLC will finance the deal.

"Our offer is the best on the table for all parties involved,"
Mr. Borletti told Bloomberg, adding that his bid isn't contingent
on closing stores, cutting wages or selling any of Karstadt's
assets.

Bloomberg notes Mr. Borletti said he would like his offer to be
considered if Berggruen fails, as a "breakup is no alternative."
According to Bloomberg, the Italian entrepreneur said he won't
take any money out of Karstadt within the next five years.

Bloomberg relates administrator's spokesman Thomas Schulz on
Monday said Karstadt's administrator won't consider Mr. Borletti's
approach as long as discussions with potential buyer Berggruen
Holdings Ltd. are ongoing.

                        About Arcandor AG

Germany-based Arcandor AG (FRA:ARO) -- http://www.arcandor.com/--
formerly KarstadtQuelle AG, is a tourism and retail group.  Its
three core business areas are tourism, mail order services and
department store retail.  The Company's business areas are covered
by its three operating segments: Thomas Cook, Primondo and
Karstadt.  Thomas Cook Group plc is a tour operator with
operations in Europe and North America, set up as a result of a
merger between MyTravel and Thomas Cook AG.  It also operates the
e-commerce platform, Thomas Cook, supporting travel services.
Primondo has a portfolio of European universal and specialty mail
order companies, including the core brand Quelle.  Karstadt
operates a range of department stores, such as cosmopolitan
stores, including KaDeWe (Kaufhaus des Westens), Karstadt
Oberpollinger and Alsterhaus; Karstadt brand department stores;
Karstadt sports department stores, offering sports goods in a
variety of retail outlets, and a portal, karstadt.de that offers
online shopping, among others.

As reported by the Troubled Company Reporter-Europe, a local court
in Essen formally opened insolvency proceedings for Arcandor on
September 1, 2009.  The proceedings started for the Arcandor
holding company and for 14 units, including the Karstadt
department-store chain and Primondo mail-order division.  Arcandor
filed for bankruptcy protection after the German government turned
down its request for loan guarantees.  On June 8, 2009, the
government rejected two applications for help by the company,
which employs 43,000 people.  The retailer sought loan guarantees
of EUR650 million (US$904 million) from Germany's Economy Fund
program.  It also sought a further EUR437 million from a state-
owned bank.


SKY DEUTSCHLAND: Issues Profit Warning; Unveils Refinancing Offer
-----------------------------------------------------------------
Ben Fenton at The Financial Times reports that Sky Deutschland AG,
the struggling German satellite broadcaster, issued a profit
warning on Monday night and announced a refinancing offer of
shares of at least EUR340 million, backed by News Corp, which owns
45% of the group's equity.

According to the FT, the money will be raised from a combination
of a rights issue and a loan or convertible bond "backstopped" by
News Corp., which has said it will take up shares to the point
where it becomes a 49.9% shareholder, but no further.

The FT says if other investors do not follow suit, leaving Sky
Deutschland short of its total, News Corp. will lend the rest of
the money either in the form of a convertible bond or as an inter-
company loan.  The money will be used to invest in such additional
services as high-definition channels and marketing personal video
recorders (SkyPlus), the FT discloses.

The FT relates in a statement that warned of earnings below
expectations, the company said that the full-year 2010 loss before
interest, tax, depreciation and amortization would be
"significantly" greater than the previously indicated level of
EUR130 million-EUR170 million.  It blamed "slower than expected
subscriber development and increased investment in key
initiatives," the FT notes.

Sky Deutschland, known until last year as Premiere, has been in
difficulties for several years because of the reluctance of German
consumers to pay for television, the FT states.

As reported by the Troubled Company Reporter-Europe on March 4,
2010, Bloomberg News said Sky Deutschland, controlled by Rupert
Murdoch's News Corp., was raised to "hold" from "sell" at
Commerzbank AG.  Bloomberg disclosed Commerzbank said "the weak
news flow is already known and the risk of insolvency looks low
given that Murdoch remains committed to financial support."

Sky Deutschland AG, formerly known as Premiere AG, --
http://info.sky.de/-- is a Germany-based company, which operates
a subscription television network in Germany and Austria.  Its
network is available via satellite, cable and Internet protocol
television.  Sky Deutschland's service offers channels to cater
for all audiences, including themed channels dedicated to
broadcasting feature films, live sporting events, foreign language
content, children's programming and interactive betting.  Sky
Deutschland's high definition television (HDTV) package shows
selected content derived from Sky Deutschland's other channels and
the Discovery Channel in HDTV format.  One of the Company's core
competencies is pay-per-view television.  The Company also markets
advertising space and promotional opportunities.  As of December
31, 2009, Sky Deutschland AG operates through its eight domestic
and three foreign subsidiaries.


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DANAOS CORP: Posts US$79.8 Million Net Loss in Q1 Ended March 31
----------------------------------------------------------------
Danaos Corporation reported a net loss of US$79.8 million on
US$79.7 of revenue for the three months ended March 31, 2010,
compared with net income of US$20.0 million on US$75.3 million of
revenue for the same period of 2009.  Financial statements are
unadited.

As of December 31, 2009, the Company was in breach of various
covenants in its credit facilities, for some of which it had
obtained waivers and for others it had not.  The waivers the
Company has obtained are for a period through October 1, 2010.
Furthermore, as of March 31, 2010, there were further breaches for
which the Company has not obtained waivers.  In addition, although
the Company was in compliance with the covenants in its credit
facility with KEXIM, and has obtained waivers of non-compliance
with certain other covenants under other credit facilities as
noted above, under the cross default provisions of its credit
facilities the lenders could require immediate repayment of the
related outstanding debt.

The Company continues to pay loan installments and accumulated or
accrued interest as they fall due under the existing credit
facilities.

The Company has reached an agreement in principle, but it has not
obtained yet formal approvals from all of the credit committees of
the respective banks, for an agreement that will supersede, amend
and supplement the terms of each of its existing credit facilities
(other than its credit facilities with KEXIM and KEXIM Fortis) and
provide for, among other things, revised amortization schedules,
interest rates, financial covenants, events of defaults, guarantee
and security packages, as well as New Credit Facilities available
for certain of its currently non-financed newbuildings.

The Company's balance sheet at March 31, 2010, showed
US$3.130 billion in assets, US$2.837 billion of liabilities, and
US$292.8 million of stockholders' equity.

A full-text copy of the "Operating and Financial Review and
Prospects and Condensed Consolidated Financial Statements
(Unaudited) for the Three Months Ended March 31, 2010", is
available for free at http://researcharchives.com/t/s?6790

                     About Danaos Corporation

Headquartered in Piraeus, Greece, Danaos Corporation (NYSE: DAC)
-- http://danaos.com/-- is an international owner of
containerships, chartering its vessels to many of the world's
largest liner companies.  The Company operates through a number of
subsidiaries incorporated in Liberia and Cyprus.  As of May 31,
2010, the Company had a fleet of 45 containerships aggregating
193,629 TEUs, making the Company among the largest containership
charter owners in the world, based on total TEU capacity.

As reported in the Troubled Company Reporter on June 22, 2010,
PricewaterhouseCoopers S.A., in Athens, Greece, expressed
substantial doubt about the Company's ability to continue as a
going concern after auditing the Company's financial statements
for the year ended December 31, 2009.  The Company noted that of
the Company's inability to comply with financial covenants under
its current debt agreements as of December 31, 2009, and its
negative working capital deficit.


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GLITNIR BANK: Secures New Freezing Order for Asgeir Johannesson
---------------------------------------------------------------
Rowena Mason at The Daily Telegraph reports that more than
GBP500,000 was transferred out of the accounts of Jon Asgeir
Johannesson, the former Baugur boss and ex-House of Fraser
director, after a worldwide freezing order on his assets.

The Daily Telegraph relates the High Court has frozen another
GBP585,648 sent by Mr. Johannesson to four different accounts,
following a freezing order on May 11 this year.  The new order was
made at the request of Glitnir, the collapsed Icelandic bank suing
him and a number of his associates for US$2 billion (GBP1.4
billion), The Daily Telegraph discloses.

According to The Daily Telegraph, Mr. Johannesson, who was the
biggest shareholder in Glitnir, argued in court that transfer
requests had been put through before the first order and were made
to pay off debts -- but a judge ordered the assets to be frozen.

Separately, Erik Larson at Bloomberg News reports Mr. Johannesson
said he was "surprised" by the bank's decision to use a U.K. court
to win the freeze.  Bloomberg notes he also said Glitnir
wrongfully claims he has GBP202 million (US$320 million) in
Britain.

"Glitnir is using the U.K. court system to obtain an order against
me which is not available to them in any other jurisdiction,"
Bloomberg quoted Mr. Johannesson, who lives in London, as saying
in an e-mail.  "I have not hidden any assets, and if Glitnir had
made any effort to contact me, I would have been pleased to
provide them with the requested information."

Bloomberg recalls Glitnir, which collapsed in October 2008, sued
Mr. Johannesson in New York in May, claiming he led a group that
drained Glitnir of US$2 billion.  Mr. Johannesson, as cited by
Bloomberg, said the suit is "just politics."

The bank's freeze order against Mr. Johannesson covers two
apartments in Manhattan's Gramercy Park neighborhood, for which he
paid US$25 million, Bloomberg discloses.  Mr. Johannesson last
month lost an appeal to lift the order, Bloomberg recounts.  The
Daily Telegraph relates in a court hearing last month, he claimed
that he had only has GBP1 million in assets left, after his
personal wealth was devastated during the Icelandic banking crash.

                       About Glitnir Banki

Headquartered in Reykjavik, Iceland, Glitnir banki hf --
http://www.glitnir.is/-- offers an array of financial services to
corporation, financial institutions, investors and individuals.

Iceland's government took control of Glitnir, along with two other
financial institutions -- Landsbanki Islands hf and Kaupthing Bank
hf -- after it failed to obtain short-term funding.  The District
Court of Reykjavik granted a Moratorium order on Glitnir on
Nov. 24 2008.  Glitnir said the Moratorium is not a bankruptcy
proceeding and does not affect its banking licenses or its ability
to operate as a bank.  The Moratorium is a specialized proceeding
under Icelandic law designed to provide it with appropriate global
protection from legal action taken by its creditors, Glitnir
pointed out.

Steinunn Gudbjarsdottir, as the duly authorized foreign
representative for Glitnir banki hf, sought creditor protection
for the bank under Chapter 15 of the U.S. Bankruptcy Code on
November 26, 2008 (Bankr. S.D.N.Y. Case No. 08-14757).  According
to Bloomberg, Glitnir's assets in the United States comprised of
bank accounts and loan provided to U.S. companies.  The company,
Bloomberg citing papers filed with the Court, issued 22 short- and
long-term notes for about US$7 billion in the country.

Judge Stuart M. Bernstein presides over the case.  Gary S. Lee,
Esq., at Morrison & Foerster LLP in New York, serves as counsel to
the foreign representative.  The Chapter 15 petition estimated
both assets and debts to be more than US$1 billion.

On January 6, 2009, Judge Bernstein issued an order recognizing
the bank's restructuring proceedings in Iceland.


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ALLIED IRISH: Pretax Losses May Hit EUR3 Billion, Analysts Say
--------------------------------------------------------------
Laura Slattery at The Irish Times reports that Allied Irish Bank's
pretax losses could be as high as EUR3 billion when the bank
releases its interim results this week.

The pretax losses at AIB -- estimated to reach EUR3 billion,
according to a forecast by banking analysts at NCB Stockbrokers --
will be the highest in the bank's history and double the loss
recorded in the same period last year, the report says.  According
to the report, NCB suggests the estimate is based on AIB
announcing total impairment charges of EUR4.2 billion, with EUR1.2
billion of this relating to non-Nama loans.

The report notes Davy Research analyst Stephen Lyons expects AIB's
pre-provision operating profits to be about EUR700 million, down
from EUR1.2 billion in the first half of 2009, while NCB expects a
slightly lower decline to EUR750 million.

The report notes AIB indicated in May that its pre-provision
profits and net interest margins were under pressure as a result
of factors including competition on deposits, elevated funding
costs, reduced income on Nama loans and Nama administration costs.

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

                           *     *     *

As reported by the Troubled Company Reporter-Europe on July 23,
2010, Moody's Investors Service affirmed AIB's long-term bank
deposit and debt ratings.  These are A1 for long-term bank
deposits and senior debt, A2 for dated subordinated debt, Ba3 for
undated subordinated debt, B1 for cumulative tier 1 securities and
Caa1 for non-cumulative tier 1 securities.  Moody's said the
outlook on these ratings is stable.  AIB's bank financial strength
rating of D, which maps to Ba2 on the long term rating scale, with
a positive outlook was unaffected by the rating action.


* IRELAND: Lack of Credit Access Puts Small Businesses at Risk
--------------------------------------------------------------
Brian O'Mahony at The Irish Examiner reports that Avine McNally,
director of the Small Firms Association, has called on the Irish
government to deliver the 3 Cs -- confidence, cash flow and
competitiveness to the economy.

According to the report, Ms. McNally said that without radical
action 50,000 small businesses are at risk and 160,000 jobs are on
the line.

The report relates The SFA's autumn economic statement warned that
access to credit remains a serious challenge, with 20% of small
businesses not getting enough funding to survive.  The report says
borrowing costs are increasing with 15% saying they are paying
more for working capital in the last three months while capital
investment interest has gone up by 8%.  Ms. McNally called for "a
greater understanding" in that area, the report discloses.  She
said more flexibility was needed and to assess businesses risks,
and relying on recent track records would condemn too many firms
to failure, the report notes.


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


SAFILO GROUP: Net Loss Narrows to EUR3.3 Mil. in First Half 2010
----------------------------------------------------------------
Chiara Vasarri at Dow Jones Newswires reports that Safilo Group
SpA's first-half net loss narrowed to EUR3.3 million from EUR136
million a year earlier, as sales rose 3.2% to EUR580.3 million and
after it booked an impairment loss on goodwill of EUR120.7 million
last year.

Dow Jones relates Safilo Chief Executive Roberto Vedovotto called
the company's results "positive" but said the group maintains a
"cautious stance" for the remainder of the year, due to the
challenging conditions in its core European markets and the
resilience of consumers spending growth in the U.S.

According to Dow Jones, the company's net debt at the end of June
was EUR269.4 million from EUR588.0 million in December 2009.

As reported by the Troubled Company Reporter-Europe on Feb. 9,
2010, Bloomberg News said Safilo reached a restructuring agreement
with creditor banks to modify terms of a EUR400-million financing
loan signed in 2006.

Italy-based Safilo Group SpA -- http://www.safilo.com/-- designs,
produces and distributes eyewear products like frames for reading
glasses, sunglasses, glasses for sport, ski masks, goggles and
visors.  Its products are primarily manufactured in four plants in
Italy, one in Slovenia and China and are marketed in 130 countries
worldwide through 39 direct commercial subsidiaries and more than
130,000 retail distributors.  The Group has 38 principal brands of
which 10 directly owned and 28 licensed.  Brands include Safilo,
Oxydo, Carrera, Smith, Alexander McQueen, A/X Armani Exchange,
Banana Republic, BOSS - Hugo Boss, Bottega Veneta, Diesel,
Valentino, Dior, Emporio Armani and others.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on April 12,
2010, Standard & Poor's Ratings Services said that it raised to
'CCC+' from 'D' (Default) its long-term corporate credit rating on
Italy-based eyewear manufacturer Safilo SpA.  S&P said the outlook
is stable.  At the same time, S&P raised the issue rating on the
EUR195 million 9.625% second-lien notes due 2013 issued by fully
owned finance subsidiary Safilo Capital International S.A. to
'CCC' from 'D'.  The recovery rating on the second lien notes is
unchanged at '5', indicating S&P's expectation of modest (10%-30%)
recovery in the event of a payment default.  According to S&P, the
rating action follows the announcement by Safilo on March 26,
2010, of the completion of a recapitalization plan, which led to
the change of the group's reference shareholder, to the
strengthening of its capital structure, and to the improvement of
its liquidity position.


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


ZHAIKMUNAI LP: S&P Affirms 'B-' Long-Term Corporate Credit Rating
-----------------------------------------------------------------
Standard & Poor's Rating Services said it has affirmed its 'B-'
long-term corporate credit rating on Kazakhstan-based crude oil
producer Zhaikmunai LP.  At the same time, S&P has removed the
rating from CreditWatch where it had been placed with positive
implications on April 22, 2010, pending a proposed bond issue.
The outlook is stable.

"S&P removed the preliminary debt rating on the proposed notes
issue which S&P understand did not occur because of market
conditions.  If and when it proceeds, S&P expects to reevaluate
the terms and conditions and reassign a rating," said Standard &
Poor's credit analyst Lucas Sevenin.

Zhaikmunai reported 2009 sales of US$116 million and EBITDA of
about US$50 million.  Its market capitalization reached about
US$1.2 billion on July 30, 2010.

S&P classify Zhaikmunai's business risk profile as "vulnerable"
given the company's:

* Low production: 7,500 barrels per day, all oil, in first-quarter
  2010.

* Exposure to volatile oil prices, mitigated to some extent by
  hedges.

* Remaining uncertainty and execution risks with respect to the
  major production step-up plan.  Notably, the core
  infrastructure -- the gas treatment unit -- is not yet fully
  complete.

* High transportation costs that reduce realized prices.

* Modest share of producing reserves -- 19% of proven reserves in
  July 2009.

* Only 49% were developed.

* Reserves concentration in northern Kazakhstan, in a single
  field.

* Exposure to country risk, notably with risks of changes to
  currently favorable taxation.

The majority owner's not yet complete sale of a 27% stake in
Zhaikmunai to KazStroyServices.  In terms of gas price and country
risk, S&P thinks this change in ownership structure could help
improve Zhaikmunai's business profile since KSS is an influential
Kazakh company.

These constraints are mitigated by:

* S&P's expectations for a material near-term increase in
  production and cash flow in 2011, which factor in recent company
  statements that near-term completion of the GTU remains on
  track.

* The company's midsize resource base.

* The company's profitability stemming chiefly from oil and oil
  condensates, which carry higher prices than gas, combined with
  good quality, more expensive crude oil.

S&P's favorable view of the company's track record, including
several years of small but rising crude oil production, strongly
increased reserves, and the building and ownership of key,
efficient infrastructure, notably including a gas pipeline from
the condensate fields to Kazakhstan's major pipeline network.

"The stable outlook factors in S&P's assumption that the company
will succeed in completing the GTU on time and materially increase
production toward the end of 2010," said Mr. Sevenin.

Therefore, S&P would expect EBITDA of at least US$140 million in
2010 and FFO to debt in the 15%-20% range.

S&P could consider lowering the rating if KSS' purchase of the 27%
stake in Zhaikmunai, which S&P expects to happen in the coming
months, is materially delayed; or if production does not
materially increase by the expected timetable, due to delays in
GTU completion or in signing the gas pricing agreement.  In case
of delays, Zhaikmunai would likely breach covenants at year-end
2010, which if not waived could increase the likelihood of a
downgrade.

If the company can issue a bond that materially enhances the debt
amortization schedule and the financial covenant headroom, S&P
could raise the rating by one notch.


===========
N O R W A Y
===========


PETROLEUM GEO-SERVICES: Moody's Upgrades Senior Rating to 'Ba1'
---------------------------------------------------------------
Moody's Investors Service upgraded Petroleum Geo-Services ASA
senior secured rating to Ba1 from Ba2 and affirmed its Ba2
Corporate Family Rating and SGL-2 Speculative Grade Liquidity
Rating.  The outlook is stable.

"Within the offshore seismic acquisition sub-sector Moody's
consider PGS to be a well-run firm that is a technological leader
in reservoir and geophysical services" commented Francis J.
Messina, Moody's Vice-President/Senior Analyst.  "The company's
strong liquidity and improving balance sheet bode well for the
rating."

The affirmation of PGS' Ba2 CFR reflects its size and scale, its
leading market position, its geographic diversification, and its
high quality fleet.  PGS' high-end specification fleet provides
greater earnings stability since it positions PGS within the
strongest demand segment of the seismic acquisition business
sector.  However, the rating also considers that seismic
acquisition is a highly cyclical business directly related to
capital spending by oil and gas producers, which is highly
volatile and dependent on oil and natural gas prices.  Also, as
the ability to provide newer technologies becomes increasingly
important to customers, despite its strong intellectual property
position, PGS is under continuous competitive pressure to enhance
it product slate.  The announced 20% growth in number of vessels
entering the market over the next two years, despite expected
cancellations, may put downward pressure on margins.

Additionally, PGS' rating reflects the company's strengthened
financial profile following the approximately US$119 million
equity offering in May 2009 supplemented by close to US$279
million of asset divestitures in 2009 and US$100 million term loan
repayment in May 2010.  As a measurement of financial strength
Moody's uses debt/ (EBITDA - MC investments) instead of the more
traditional debt/EBITDA because nearly all of the costs associated
with multi-client activities are capitalized and amortized.  As of
June 30, 2010, including the US$100 million term loan repayment,
PGS adjusted debt/ (EBITDA - MC investments) was approximately 4x.
Moody's expect that PGS will maintain its current leverage profile
while generating positive cash flow over the next year-and-a-half,
barring any acquisition opportunity that PGS may pursue.

Under Moody's Loss Given Default methodology, the one notch uplift
between the Ba2 CFR and the Ba1 (LGD 2, 29%, previously LGD 4,
53%) senior secured rating is due to its position in PGS' capital
structure and uplift provided by its unsecured debt, including its
convertible note debt.

The SGL-2 rating reflects PGS' strong liquidity.  As of June 30,
2010, its cash balance is approximately US$160 million and its
US$350 million senior secured revolving credit facility remains
fully available.  PGS is expected to generate free cash flow over
the next twelve months despite the weaker operating environment.
The company intends to fund all capital expenditures for the next
twelve months from cash flow.  Also, the company expects to
realize US$50 - US$100 million of cash refunds from termination of
vessel newbuilds in Spain (the higher amount depends on whether
the company uses its right to terminate the last vessel in Q3
2010).  As of June 30, 2010, PGS was in compliance with all
maintenance covenants and following the recent credit agreement
amendment in May 2010, PGS is expected to remain in compliance
with all new covenants for the next twelve months.

The last rating action on PGS was June 14, 2007, when Moody's
upgraded to Ba2 the company's CFR and assigned a SGL-2 rating.

Petroleum Geo-Services ASA is an oilfield services company
headquartered in Lysaker, Norway, specializing in reservoir and
geophysical services, including seismic data acquisition,
processing and interpretation, and field evaluation.


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


ALLIANCE OIL: Fitch Assigns 'B' Senior Unsecured Rating
-------------------------------------------------------
Fitch Ratings has assigned Russia-based OJSC Alliance Oil
Company's 9.75% RUB5 billion domestic bonds due 2020 a final local
currency senior unsecured rating of 'B', a final Recovery Rating
of 'RR4', and a final National senior unsecured rating of
'BBB(rus)'.

The bonds represent a senior unsecured obligation of OJSC Alliance
Oil Company and are guaranteed by Alliance Oil Company Ltd.  Fitch
notes that a cross-default provision in the draft bond documents
relates to other capital market instruments, including Alliance
Oil's outstanding senior unsecured bonds and existing loans.

Alliance Oil's existing ratings are:

* Long-term foreign and local currency Issuer Default Ratings
  'B'; Outlook Stable; Short-term foreign and local currency IDRs:
  'B';

* National Long-term rating: 'BBB(rus)'; Outlook Stable


COMSTAR UNITED: S&P Gives Positive Outlook; Affirms 'BB' Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services said it revised its outlooks on
Russian telecoms operator Comstar United TeleSystems (JSC) and its
subsidiary Moscow City Telephone Network (JSC) to positive from
stable.  At the same time, the 'BB' long-term corporate credit and
'ruAA' Russia national scale ratings on Comstar and MGTS were
affirmed.

The action on Comstar and MGTS mirrors that on Comstar's parent
Mobile TeleSystems (OJSC) (BB/Positive/--), which already owns 63%
of Comstar.  MTS has recently initiated a process aimed at
increasing its stake in Comstar to 100%.  According to the plan,
Comstar will be merged into MTS and in due course will cease to
exist as a separate legal entity.  The merger needs approval of
75% of MTS' and Comstar's shareholders.  The companies expect to
close the transaction in the second quarter of 2011.

"The equalization of the Comstar rating with that on its parent
reflects S&P's view that its credit quality will be enhanced by
being owned by a company with more favorable credit
characteristics, both from a business and a financial profile
standpoint," said Standard & Poor's credit analyst Alexander
Griaznov.

MTS' management has already started integrating Comstar into its
business.  The management relies heavily on cost and revenue
synergies, confirming the strategic importance of Comstar for MTS.

Comstar posted 7% year-on-year revenue growth in the first quarter
of 2010, reflecting growth in regulated and unregulated prices and
also recovery in telecom traffic volumes.  Over the next 12
months, Standard & Poor's estimates that the company will be able
to achieve revenue growth close to 10%, supported by further
regional expansion outside Moscow.  At the same time, S&P believes
that the increasingly saturated broadband market in Moscow,
characterized by increasing competition, is constraining revenue
growth, which will result in the need for the company to lower its
tariffs.  Nevertheless, S&P note that Comstar's consolidated
margin of operating income before depreciation and amortization is
relatively strong at about 40% and S&P expects it to remain
resilient over the next 12 months, supported by the large-scale
operations of MGTS.  In 2010, Comstar has already signed
agreements to sell its 25% stake in Svyazinvest to OJSC Rostelecom
(BB/Stable/--), which if realized will strengthen Comstar's stand-
alone financial metrics, in S&P's view.

"The positive outlook of Comstar mirrors that on its parent MTS,"
said Mr. Griaznov.  "Any future rating action on Comstar would
also mirror that on MTS."


MOBILE TELESYSTEMS: S&P Gives Positive Outlook; Keeps 'BB' Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
outlook on Russia-based telecoms operator Mobile TeleSystems
(OJSC) to positive from stable.  At the same time, S&P affirmed
the 'BB' long-term corporate credit rating on MTS.

"The outlook revision reflects S&P's expectation that MTS'
financial metrics will remain solid over the medium term, despite
the company's acquisition of Comstar United TeleSystems (JSC)
(BB/Positive/--) and a continuously high level of investments,"
said Standard & Poor's credit analyst Alexander Griaznov.  "MTS'
robust operating performance and proactive debt portfolio
management also support the outlook revision, in S&P's opinion."

MTS recently decided to increase its stake in Comstar by means of
a merger, which S&P believes will not lead to meaningful cash
outflow and will not require additional debt financing.
Consequently, MTS' ratio of debt to EBITDA, which was 1.7x for the
12 months ended March 31, 2010, is unlikely to increase to more
than 2x over the next 12 months.  Moreover, S&P believes that MTS
has the potential to deleverage in the longer term, given that its
operating performance remains robust and its market positions
strong.

"The outlook is positive because it reflects S&P's view that an
upgrade is possible in the next 12 to 18 months if MTS achieves a
ratio of adjusted debt to EBTIDA consistently below 2x and
moderates its investment appetite and/or shareholder
distributions, thereby giving the company greater financial
flexibility," said Mr. Griaznov.  "To be commensurate with a
higher rating, S&P would also expect that MTS could maintain
adequate liquidity on a continuous basis, and that its liquidity
position would not weaken because of the merger with Comstar."


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


INAER AVIATION: S&P Raises Corporate Credit Rating to 'B+'
----------------------------------------------------------
Standard and Poor's Rating Services said that it raised to 'B+'
from 'B' its long-term corporate credit rating on Spain-based
Inaer Aviation Group, S.L.U., a leader in the European mission-
critical helicopter services market.  S&P also removed the rating
from CreditWatch, where it had been placed with positive
implications on July 15, 2010.  The outlook is stable.

At the same time, S&P assigned a 'B' issue rating to Inaer's
EUR470 million senior secured high-yield notes, maturing 2017,
issued through Inaer Aviation Finance Ltd. (Inaer Finance).  S&P
also assigned a 'B' issue rating to a back-to-back loan facility
to Proiris Aviation Spain, S.L.U., a wholly owned subsidiary of
Inaer.  The recovery rating on this loan facility is '5',
reflecting S&P's expectation of modest (10%-30%) recovery for
lenders in the event of a payment default.

In addition, S&P assigned a 'BB-' rating to Inaer's EUR100 million
super-senior revolving credit facility.  The recovery rating on
the RCF is '2', reflecting S&P's expectation of substantial (70%-
90%) recovery for lenders in the event of a payment default.

"The upgrade reflects the successful issue of Inaer's
EUR470 million high-yield notes, which are senior secured and
mature in 2017, and the raising of a new six-year EUR100 million
super-senior RCF," said Standard & Poor's credit analyst Menique
Smit.

"Inaer has refinanced its outstanding debt, thereby improving its
debt maturity profile.  The upgrade also reflects S&P's
understanding that Inaer will receive an equity injection of at
least EUR37 million, which, together with some of the proceeds of
the senior secured notes, it will use to acquire Australian
Helicopters Pty. Ltd., and to buy back a significant proportion of
its outstanding operating-lease commitments.  The company has
received about EUR15 million of new equity to date, and S&P
understand that the outstanding amount will be transferred to
Inaer when the acquisition of Australian Helicopters is
completed."

In S&P's view, Inaer will continue to perform resiliently, at
least maintaining its EBITDA margin at current levels.  In S&P's
opinion, an increase in profitability is likely if synergies from
the acquisition of Australian Helicopters are fully realized.
However, it is also S&P's opinion that significant deleveraging is
unlikely over the short to medium term due to the lack of
amortizing debt in the capital structure.  S&P anticipates that
the company's funds from operations to Standard & Poor's-adjusted
fully adjusted debt will be in excess of 10%, a level S&P
considers commensurate with the 'B+' rating on Inaer.

S&P thinks that downside rating risk is most likely to arise from
a significant decline in revenues caused by a loss of multi-year
contracts.  This could lead to a weakening of the company's cash
flows, credit metrics, and liquidity below levels that S&P
considers commensurate with the rating.

In S&P's opinion, Inaer's high leverage currently makes an upgrade
unlikely in the near term.


===========
S W E D E N
===========


FORD MOTOR: Completes Sale of Volvo Cars to Geely for US$1.5BB
--------------------------------------------------------------
John Reed at The Financial Times reports that Ford Motor said it
had completed the sale of Volvo Cars, its Swedish marque, to
Chinese carmaking group Geely for US$1.5 billion.

The FT relates Ford said that Zhejiang Geely Holding Group had on
Monday paid US$1.3 billion in cash and issued a US$200 million
note to complete the sale -- a lower amount than the US$1.8
billion the US carmaker said it planned to raise from the deal
when it was agreed in March.

According to the FT, Geely said that Stefan Jacoby, formerly chief
executive of Volkswagen of America, would become Volvo's new chief
executive on August 19, replacing Stephen Odell, who will now
become chief executive of Ford's European arm.  Li Shufu, Geely's
chairman, will become Volvo's new chairman, the FT discloses.

The FT says Volvo will retain its headquarters in Gothenburg and
manufacturing presence in Sweden and Belgium, but Geely said its
new management "will have the autonomy to execute on its business
plan under the strategic direction of the board."

Ford will continue to supply Volvo with engines and parts for
defined periods, but is selling 100% of the carmaker to Geely, the
FT notes.

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles
across six continents.  With about 200,000 employees and about 90
plants worldwide, the company's automotive brands include Ford,
Lincoln, Mercury and Volvo.  The Company provides financial
services through Ford Motor Credit Company.

At December 31, 2009, the Company had US$194.85 billion in total
assets against US$201.37 billion in total liabilities.  Total
deficit attributable to Ford Motor at December 31, 2009, was
US$7.82 billion.

As reported by the Troubled Company Reporter on June 7, 2010,
Moody's released an Issuer Comment stating that the ratings and
outlook of Ford Motor Company are being maintained following the
company's announcement that it will end production of Mercury
vehicles during the fourth quarter of this year.  Ford's ratings
include: B1 Corporate Family Rating and Probability of Default
Rating; Ba1 secured rating; B2 unsecured rating; and SGL-2
Speculative Grade Liquidity Rating.  The rating outlook is stable.

The last rating action on Ford was an upgrade of the company's
Corporate Family Rating to B1 on May 18, 2010.


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


BLUE CITY: Fitch Downgrades Rating on Class B1/B2 Notes to 'C'
--------------------------------------------------------------
Fitch Ratings has downgraded Blue City Investments 1 Ltd's class B
notes and affirmed the rest:

* US$262.5m class A3/A4 due October 2016 (XS0267260346) affirmed
  at 'CCC'; Recovery Rating is 'RR4';

* US$143m class B1/B2 due October 2016 (XS0259701018) downgraded
  to 'C' from 'CCC'; Recovery Rating is 'RR6';

* US$50.5m class C due October 2016 (XS0272445726) affirmed at
  'C'; Recovery Rating is 'RR6';

* US$70m class D due October 2016 (XS0273296243) affirmed at 'C';
  Recovery Rating is 'RR6'.

The transaction is a securitization of a US$925 million financing
package granted to Blue City Company 1 for the development of an
upmarket residential, hotel and leisure resort on the coast of the
Indian Ocean at Al Sawadi, located 90km to the west of Muscat, the
capital of The Sultanate of Oman.

Since Fitch's last rating action in June 2009, the transaction has
continued to show poor and deteriorating performance as expected.

As at the May 2010 interest payment date, cumulative net sales
proceeds to date of off-plan villas and apartments stood at
US$75.27 million (compared with US$53.6 million as at the May 2009
IPD) versus US$860 million required by the 'sales test 5' trigger
within the transaction and US$1.319 billion envisaged by the
original business plan.  Construction came to a standstill in
January 2010 due to the borrower's inability to fund construction
costs.  The borrower is also struggling to fund its own corporate
overheads and has made the majority of its staff redundant,
although no changes have occurred to senior management.  At the
same time, the long-running legal dispute between the project's
shareholders is still ongoing.

As Fitch expected, the transaction breached the 'sales test 5' on
the November 2009 IPD and all subsequent IPDs.  While such a
breach calls for an immediate acceleration and mandatory repayment
of all of the transaction's debt and, in the event of non-payment,
an event of default under the inter-company loan, the issuer note
trustee has thus far not served the borrower with a notice
demanding immediate debt repayment.

The Recovery Ratings continue to be based on interest payments
funded by escrowed reserve amounts, with no explicit value being
ascribed to the transaction's real estate collateral.  In the
absence of a comprehensive restructuring of the transaction, Fitch
continues to consider an eventual default of all note classes a
distinct possibility as the escrowed reserves are being depleted.
Current escrowed reserves available to the class A3/A4 notes are
sufficient to cover approximately 18 quarters of interest at their
capped interest rate of 7.723%, and for the class B1/B2 notes
approximately three quarters of interest at their fixed interest
rate of 13.75%.  This means that, within a relatively short time
period, the class B1/B2 notes will likely stop receiving interest,
leading to the downgrade.  No reserves are available to the class
C and D notes, and no interest has been paid on these classes for
several quarters; however, they are not currently in default as
interest on them is deferrable as per the transaction's
documentation.

According to media reports, Essdar Investments Ltd, an Abu Dhabi
based investment group, increased its holdings in the unrated
class A1 and A3/A4 notes to 99% via a tender offer in June 2010,
and is now seeking to purchase a controlling interest in the class
B1/B2 and C notes.  To date, Essdar is understood to have invested
in excess of US$400 million in the transaction's notes.  The
agency has not been in contact with Essdar and does not have any
concrete information on the strategy for its investment.  However,
Essdar's apparent interest in acquiring materially all of the
transaction's debt may be a precursor to a comprehensive
restructuring, or potential winding down, of the securitization.


BRITISH AIRWAYS: Talks With Unite to Resume Next Week
-----------------------------------------------------
Kaveri Niththyananthan at Dow Jones Newswires reports that talks
between British Airways PLC and labor union Unite over an ongoing
dispute with cabin crew ended Monday but hopes of a resolution
remain after the two sides agreed to meet again next week.

According to Dow Jones, a BA spokesman said, "There was a short
meeting at ACAS and there are plans to meet again next week."

Dow Jones relates BA and Unite met under the auspices of mediator
Advisory, Conciliation and Arbitration Service or ACAS.

Unite Joint General Secretaries Tony Woodley and Derek Simpson
will be negotiating on behalf of cabin crew, while BA Chief
Executive Willie Walsh will be representing the airline, Dow Jones
discloses.

Dow Jones notes one of the main sticking points centers around the
loss of staff travel perks.  Dow Jones says conditions for
returning travel perks come at a cost of seniority, which the
union has rejected.

                      About British Airways

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

                           *     *     *

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


DUNFERMLINE PRESS: Lloyds Banking Group May Acquire Stake
---------------------------------------------------------
Nathalie Thomas at The Scotsman reports that Lloyds Banking Group
is believed to be mulling a stake in Dunfermline Press.

According to the report, it is understood that the state-backed
bank is preparing to take a stake as part of a major debt-for-
equity restructuring of the business.

The report says questions have surrounded the heavily-indebted
publisher since the death of Deirdre Romanes, the group's majority
shareholder and chief executive, in May.

According to the report, the most recent available accounts show
that for the 12 months to the end of March 2009, the publisher had
bank debt of GBP29.7 million -- most of which was repayable after
five years.  It posted a loss of GBP77,700 after tax during the
year although this was an improvement on 2008 when its balance
sheet was dented by a pre-tax loss of GBP1 million, the report
discloses.

The report notes a spokesman for Lloyds declined to comment
although a source close to the institution confirmed it was
Dunfermline's lender.

The report relates like many other media groups, the firm was hit
by a slump in advertising during the economic downturn.

Dunfermline Press publishes more than 30 local papers in the UK
and Ireland.


HULL CITY: Owner Russell Bartlett Rules Out Administration
----------------------------------------------------------
The Mail reports that Hull City owner Russell Bartlett has denied
speculations that the football club is set to be plunged into
administration.

According to the Mail, reports on Radio Humberside Monday night
claimed the club was on the verge of entering administration
because the Premier League will withhold their first parachute
payment of GBP9 million.

Mr. Bartlett on Monday tonight told the Mail that is simply not
true, meaning City will not kick-off the new Championship season
with a ten-point penalty when they face Swansea on Saturday.

As reported by the Troubled Company Reporter-Europe on May 14,
2010, BBC News said the club was to reshuffle its boardroom as it
tries to address its financial problems and avoid administration.
BBC disclosed the club, which owes GBP35 million, was to appoint
an insolvency expert.

Hull City Chairman Adam Pearson, as cited by BBC, said, "It is a
real short-term goal to try to get the debt down and get some
shape on it.  Hopefully we will do that without going into a
formal process.  There is always that threat there but our aim is
to avoid that 10-point penalty and that formal process of
administration if at all possible.  I came in the first week of
November and the debt was GBP35 million.  It is exactly the same
now and we don't want it to go up any more.  We need to start
restructuring that debt, pushing it out to give us enough room to
breathe for next season."

Mr. Pearson also said that tackling the debts would take short-
term precedence over the appointment of a new manager, BBC noted.

The Troubled Company Reporter-Europe, citing Accountancy Age,
reported on April, 28, 2008, that Deloitte, following its last
audit, warned the club it could struggle to continue as a going
concern.

Hull City Association Football Club is an English football club
based in Kingston upon Hull, East Riding of Yorkshire.  The club
was founded in 1904.


LEHMAN BROTHERS: Eurosail Bond Not in Default, U.K. Court Rules
---------------------------------------------------------------
Lindsay Fortado and Esteban Duarte at Bloomberg News report that
investors in a mortgage-backed security sold by Lehman Brothers
Holdings Inc. have lost their application for the notes to be
declared in default.

Bloomberg relates a court in London ruled against holders of bonds
that were part of the Eurosail-UK 2007-3BL PLC transaction.

"Eurosail is not unable to pay its debts" under U.K. bankruptcy
law, according to a July 30 judgment, Bloomberg notes.

The investors in A3 notes claimed that the securitization's assets
are worth less than its liabilities, Bloomberg says, citing a
Fitch Ratings report on July 19.  According to Bloomberg, Fitch
said the ruling may affect other Lehman Brothers transactions
known as Eurosail-UK 2007-4 NP and Eurosail-UK 2007-6 NC.

                      About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.

Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555).  Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history.  Several other affiliates followed thereafter.

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)).  James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI

The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion.  Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees.  Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008.  The joint administrators have
been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.

Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


LEHMAN BROTHERS: Court of Appeal Overturns Client Money Judgments
-----------------------------------------------------------------
On August 2, 2010, the Court of Appeal handed down its judgment on
the appeals made against Mr. Justice Briggs' judgments in an
application for directions brought by the Joint Administrators of
Lehman Brothers International (Europe) (in administration).  The
Administrators' application concerned LBIE's obligations in
relation to client money held by it prior to the time of
administration.

Significantly, the Court of Appeal's decision has overturned
Mr. Justice Briggs' judgments on these two issues:

   1. The FSA's client money rules require identifiable client
      money held by LBIE (at the time of administration) outside
      LBIE's segregated accounts to be pooled with the client
      money held in its segregated accounts, with that pool then
      to be distributed to all of the clients entitled to claim
      against it.

      Mr. Justice Briggs' judgments had held that (a) the pool was
      comprised only of the client money in LBIE's segregated
      accounts, and (b) that identifiable client money held
      outside such accounts should be returned to the specific
      clients for whom it was held.

   2. All clients who ought to have had money segregated for them
      by LBIE as client money prior to administration are now
      entitled to share in the client money pool, regardless of
      whether or not LBIE did in fact segregate client money for
      them.

      Mr. Justice Briggs' judgments had held that only those
      client money claimants for whom LBIE had segregated client
      money prior to administration were entitled to claim against
      the pool.

The Joint Administrators are considering the judgment carefully to
assess its implications for LBIE's client money claimants and
creditors.

Tony Lomas, a partner at PricewaterhouseCoopers LLP and one of
LBIE's joint administrators, commented: "What is significant about
the judgment is that it not only widens the pre-administration
client money that must be pooled, but also the number of clients
entitled to claim against that pool.  This is likely to have a
significant knock-on effect both on the timing and level of any
distribution of client money to LBIE's clients.  The proper and
prompt return of client money is a key priority for the
administration, and we remain committed towards achieving that
objective."

Stephen Fletcher, a partner at Linklaters LLP, the administrators'
legal advisers, commented that: "The appeal demonstrates the
problems that can be faced by liquidators and administrators in
dealing with the client money affairs of FSA-regulated firms.  The
Court of Appeal has given us new answers to some of the acute
legal difficulties experienced in LBIE's administration.  We now
need to see how we can move forward and resolve the remaining
issues."

It is not yet known whether any party to the appeal proceedings
intends to seek permission to appeal to the Supreme Court.

                      About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.

Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555).  Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history.  Several other affiliates followed thereafter.

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)).  James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI

The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion.  Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees.  Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008.  The joint administrators have
been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.

Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


SOPHOS PLC: S&P Assigns 'B' Long-Term Corporate Credit Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its 'B'
long-term corporate credit rating to U.K.-domiciled Sophos PLC, a
leading provider of integrated IT security and data protection
software and applications.  The outlook is stable.

The issue ratings of 'B+', and the recovery ratings of '2', on two
term loans and a revolving credit facility issued by Shield
Finance Co. S.A.R.L., remain preliminary, as the security package
has not yet been finalized.  It is S&P's understanding that this
will occur within the next 28 days.

"The corporate credit rating on Sophos is constrained by S&P's
view of the group's highly leveraged financial risk profile and
its anticipation of modest cash generation after sizeable interest
charges," said Standard & Poor's credit analyst Helen O'Toole.
"Further constraints on the rating are the highly competitive
market for IT security software and antimalware technologies
worldwide; the constantly evolving industry and developments in
security technology; and the relatively high operational leverage
at Sophos, which S&P think would result in much weaker
profitability if revenues were to decline."

These constraints are partially mitigated by the group's well-
established business position as a leading provider of integrated
IT security and data protection software and applications;
continued strong worldwide demand for sophisticated IT security
and antimalware technology and applications; high levels of
recurring revenues; and S&P's anticipation of Sophos' adequate
liquidity now that the bank financing and the acquisition of a 70%
stake in Sophos by private equity investment group Apax Partners
has closed.

S&P believes that Sophos will maintain its business position and
that demand for its product offerings will continue to grow in
line with market trends.

In S&P's view, the ratings could come under pressure if the
group's liquidity were to deteriorate, or if operating performance
were lower than planned, resulting in deterioration in
profitability and credit metrics.  Equally, the ratings could come
under pressure in the event of a significant tightening in
covenant headroom.

S&P could raise the ratings if Sophos were to increase cash EBITDA
in line with its plan and apply its cash generation to paying down
debt, thereby reducing leverage to levels that S&P considers
commensurate with a higher rating.


SOUTHEND UNITED: Settles Tax Debts; Averts Administration
---------------------------------------------------------
The Press Association reports that Southend United has avoided
going into administration after settling its tax debts with the
Inland Revenue.

The report relates Southend Chairman Ron Martin confirmed that
everything has been settled with the tax office and that the
football club's debts are now up to date.  The report says the
club has been busy signing new players on pre-contract agreements
and Mr. Martin now expects those deals to go through after
settling their debts.

"We've paid off the entire debt," Mr. Martin told Sky Sports News,
according to the report.  "It was more than a quarter of a million
pounds, it was GBP340,000, so that's now discharged.  All the
club's debts are now up to date."

Southend United Football Club is an English football club based at
Roots Hall Stadium, Prittlewell, Southend-on-Sea, Essex, who
currently play in League One of the English Football League.


* UK: Illegal Dividend Payments by Insolvent Firms Spark Probe
--------------------------------------------------------------
Accountancy Age reports that a warning has been issued that many
company insolvency cases are sparking investigations because of
suspicions of illegal dividend payments being made.

Citing contractor accountancy firm Wilkins Kennedy, the report
says that HM Revenue & Customs is aware of a sharp increase in
potentially unlawful loans and distributions.  According to the
report, the firm said that the last eight out 10 insolvency cases
taken on have led to investigations because of alleged
illegitimate actions by directors.


* UK: Car Sector Insolvency Down in June; Late Payments Rise
------------------------------------------------------------
CarDealer magazine, citing information firm Experian, reports that
while car industry business failure rates have continued to fall
in June 2010, the number of late payments has actually risen to
the highest point since December 2008.

"Although the insolvency rate is much better than this time last
year, there's no doubt poor payment performance in June had an
adverse affect on the financial strength of the industry," the
report quoted Experian's Joe Myers as saying.

According to the report, the number of insolvent businesses in
June was 31 -- a big drop on 2009's figure of 44.  But the number
of "days late" after finance payments were due has increased to
17.01 -- and that hasn't been this high since December 2008, the
report notes.


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


* EUROPE: Banks Need to Refinance US$122 Billion Bonds This Year
----------------------------------------------------------------
Bryan Keogh and Kate Haywood at Bloomberg News report that banks
in Europe's most indebted nations need to refinance US$122 billion
of bonds this year, likely paying high interest costs even after
receiving a clean bill of health from regulators.

Italy's Intesa Sanpaolo SpA has the most debt coming due at US$28
billion, followed by UniCredit SpA with US$21 billion, according
to data compiled by Bloomberg.  Bloomberg says Italian banks must
refinance a total US$69 billion of bonds this year and US$157
billion in 2011, while Spanish lenders have US$28 billion and
US$73 billion of debt that needs to be paid this year and 2011.

Banks in so-called peripheral European countries from Greece to
Ireland have been largely shut out of debt markets since April
amid concern their governments will struggle to cut budget
deficits, Bloomberg notes.

The 24 lenders in the benchmark Stoxx 600 Banks Index that are
from Portugal, Italy, Ireland, Greece and Spain have US$271
billion of debt to refinance next year and US$230 billion in 2012,
Bloomberg data show.

Bank of Ireland Plc and Allied Irish Banks Plc, the country's two
biggest lenders, have EUR16.7 billion of debt maturing this year,
according to data compiled by Bloomberg.

Portuguese banks have EUR1.4 billion of bonds coming due this year
and EUR8.6 billion in 2011, while Greek lenders have EUR1.1
billion and EUR11.4 billion.


* EUROPE: Basel Committee Softens Bank Capital & Liquidity Rules
----------------------------------------------------------------
Yalman Onaran at Bloomberg News reports that the Basel Committee
on Banking Supervision softened some of its proposed capital and
liquidity rules while introducing new restrictions on how much
lenders can borrow in order to rein in their risk-taking.

Bloomberg relates the panel on July 26 agreed to allow certain
assets, including minority stakes in other financial firms, to
count as capital, according to a statement.  The committee set a
leverage ratio to apply to banks globally for the first time,
which could become binding by 2018, pending further adjustments to
the method of calculating banks' assets, Bloomberg notes.

The Basel committee, which represents central banks and regulators
in 27 nations and sets capital standards for banks worldwide, was
asked by Group of 20 leaders to draft rules after the worst
financial crisis in 70 years.  According to Bloomberg, the Basel
committee's board said some of its proposals might not be
completed by the end of this year, the deadline set by the G-20.
Bloomberg notes liquidity requirements for how much cash and
cashable securities banks need to hold against their longer-term
liabilities and counter- cyclical buffers, which would raise
minimum capital requirements in times of faster economic growth,
have to be worked on longer.

Bloomberg relates European banks lobbied against the proposed
exclusion of minority interests that banks hold in other financial
institutions.

Bloomberg notes that while the capital ratios allow banks to
assign weights to assets based on their risks, the new leverage
figure considers all assets without a risk assessment.  The
committee initially set it at 3% -- meaning a bank's total assets
cannot be more than 33 times its Tier 1 capital, which includes
securities that could help a lender cover unexpected losses,
Bloomberg discloses.  According to Bloomberg, banks currently need
to hold capital equal to a minimum of 8% of risk-weighted assets.
Half of that must be Tier 1, and half of the Tier 1 needs to be
common stock, Bloomberg says.  The Basel committee is also
revising how the risk weighting will be done, Bloomberg relates.

Bloomberg says like the leverage ratio, the liquidity rules are
new to the Basel standards.  The liquidity coverage ratio sets the
amount of cash that needs to be held by a lender against any
payment coming due within a month, while the net stable funding
ratio considers liabilities up to 12 months, Bloomberg states.

The committee announced several modifications to the definition of
liquid assets and of how to measure the safety of different types
of funding, Bloomberg 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.


                 * * * End of Transmission * * *