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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 18, 2010, Vol. 11, No. 162

                            Headlines



G E R M A N Y

ADAM OPEL: GM to Pay Workers EUR265MM if Investment Plan Fails
BALDA AG: Former Employees File Suit Over Units' Insolvency


I R E L A N D

ANGLO IRISH: Bailout Costly But Manageable, Honohan Says
PREMIER HOTELS: In Dispute Over EUR230,000 VAT Bill


I T A L Y

COMPAGNIA ITALPETROLI: AS Roma Takeover Talks to Start Aug. 23
IT HOLDING: Files Chapter 15 Petition in Manhattan Court


R U S S I A

NIZHNEKAMSKNEFTEKHIM OAO: Fitch Affirms 'B' Issuer Default Rating


U N I T E D   K I N G D O M

QUEEN'S WALK: Faces Shake-Up as Shares Trade at Discount
EDDINGTON CAPITAL: To Liquidate Funds After Assets Dwindle
GREENLIT: Goes Into Administration
HIGH LEGH: In Administration; Country Club Put Up for Sale
JEFFERSON SHEARD: In Administration; Still Owes Wages to Staff

LEHMAN BROTHERS: European Unit Sues Dubai Real-Estate Group
PAG HOTELS: Two Scottish Hotels Put Up for Sale
ST. URSULA'S: Bristol City Council Mulls Acquisition

* UK: Insolvent Football Clubs to Face Tougher Sanctions


X X X X X X X X

* EUROPE: LBOs May Struggle to Refinance Debt, S&P Says




                         *********



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


ADAM OPEL: GM to Pay Workers EUR265MM if Investment Plan Fails
--------------------------------------------------------------
General Motors Co. said in its Aug. 16, 2010 10-Q filing with the
U.S. Securities and Exchange Commission that as part of its
Opel/Vauxhall restructuring plan, agreed to with European labor
representatives, it has committed in principle to achieve
specified milestones associated with planned spending from 2011 to
2014 on certain product programs.

GM said in the filing that if it fails to accomplish the
requirements set out under the expected final agreement, it will
be required to pay certain amounts up to EUR265 million for each
of those years, and/or interest on those amounts, to its
employees.

GM said the management has the intent and believes it has the
ability to meet the requirements under the agreement, which it
expects to be finalized during the three months ended September
30, 2010.

Adam Opel GmbH -- http://www.opel.com/-- is General Motors
Corp.'s German wholly owned subsidiary.  Opel started making cars
in 1899.  Opel makes passenger cars (including the Astra, Corsa,
and Vectra) and light commercial vehicles (Combo and Movano).  Its
high-performance VXR range includes souped-up versions of Opel
models like the Meriva minivan, the Corsa hatchback, and the Astra
sports compact.  Opel is GM's largest subsidiary outside North
America.

                           *     *     *

As reported by the Troubled Company Reporter-Europe, Bloomberg
News said GM decided in June this year to fund Opel's EUR3.3
billion (US$4.3 billion) restructuring itself, after failing to
secure aid from European countries.  As reported by the Troubled
Company Reporter-Europe on June 11, 2010, Bloomberg News said
Germany turned down GM's request for EUR1.1 billion (US$1.3
billion) in aid for its money-losing Opel division, forcing the
automaker to seek new ways to reorganize the unit.  Bloomberg
disclosed Opel sought EUR333 million in guarantees from the U.K.,
EUR437 million from Austria and Spain combined and EUR50 million
in project financing from Poland.  Bloomberg said the Opel-
Vauxhall reorganization program includes eliminating 8,300 jobs
from a European workforce of 48,000 employees.


BALDA AG: Former Employees File Suit Over Units' Insolvency
-----------------------------------------------------------
Julie Cruz at Bloomberg News, citing Handelsblatt, reports that 10
former employees of Balda AG filed a lawsuit related to the sale
and subsequent insolvency of two of the company's subsidiaries.

According to Bloomberg, the newspaper said the company sold the
two units to Hanse Industriekapital in May 2008 and the insolvency
filing followed a year later.

Bloomberg relates Helmut Kunz, the former head of Balda's workers'
co-determination council, told Handelsblatt the ex-employees
believe the units were "deliberately led into insolvency."

Balda AG is a German maker of mobile-phone casings.


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


ANGLO IRISH: Bailout Costly But Manageable, Honohan Says
--------------------------------------------------------
Geoff Percival at Irish Examiner reports that Patrick Honohan, the
governor of Ireland's central bank, has described the exercise of
rescuing Anglo Irish Bank as "costly, but manageable".

According to the report, speaking over the course of the weekend
in Hong Kong, at the start of an Asian lecture tour, Mr. Honohan
also reiterated that the injection of emergency cash into Anglo
will bump Ireland's 2010 budget deficit up to around 17% of GDP,
about 6% higher than initial target.

Anglo's bailout charge rose by nearly EUR1 billion past the
initial EUR22 billion estimate, last week, with government saying
it was still unclear as to how much would be needed overall to
steady the nationalized bank, the report notes.

The report relates over the weekend, Mr. Hononhan said that a
final EUR22 billion-EUR25 billion bailout for Anglo would be a
"shock to the system", but "a manageable sum".

Mr. Honohan also reiterated his feelings regarding the removal of
the bank guarantee, the report recounts.  Both Anglo and AIB have
called for it to remain in place past its December deadline, to
allow for full economic stabilization, the report discloses.

Mr. Honohan has already stated that it is highly likely that the
scheme will overrun its intended deadline, but that it will
probably be wound down sooner rather than later, according to the
report.

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 July 23,
2010, the A3/P-1 bank deposit and senior debt ratings as well as
the Ba1 dated subordinated debt rating and the Caa2 undated
subordinated debt rating of Anglo Irish Bank have been maintained
under review for possible downgrade as the key rating driver in
Moody's Investors Service's view remains the bank's restructuring
plan that is currently waiting EU approval.  Moody's said the
outlook on the bank's E BFSR, mapping to a Caa1 on the long-term
scale, is stable.

On April 7, 2010, the Troubled Company Reporter-Europe reported
that 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'.


PREMIER HOTELS: In Dispute Over EUR230,000 VAT Bill
---------------------------------------------------
Barry O'Halloran at The Irish Times reports that Premier Hotels is
in dispute with the Revenue Commissioners over a EUR230,000 VAT
bill.

The Irish Times relates creditors of the company recently
appointed Thomas L. Keane of Dublin accountancy firm, BKRM,
formerly Bastow Keane, as liquidator.

According to The Irish Times, company documents show that a
dispute with the Revenue Commissioners over a VAT bill related to
some of its previous property dealings emerged at the recent
creditors' meeting of Premier Hotels.

The Revenue's representative, Thomas O'Brien, questioned why the
company, Hotels was responsible for managing the Days Hotel close
to Dublin airport up to last month, was stating that it owed the
tax authority EUR30,000, while the Revenue's own estimate was in
the region of EUR230,000, The Irish Times recounts.

The Irish Times notes Premier's accountant, Anthony Weldon, of
Kieran Ryan Company, said the company was disputing the additional
liability and pointed out that the matter was under appeal.

As reported by the Troubled Company Reporter-Europe on July 23,
2010, The Irish Times reports that directors decided to place
Premier Hotels into liquidation after failing to agree a deal on a
six-figure rent arrears bill with one of its landlords.

Premier Hotels Ltd. is a subsidiary of Prem Group, which manages
hotels in Ireland, Britain, Belgium and France.


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


COMPAGNIA ITALPETROLI: AS Roma Takeover Talks to Start Aug. 23
--------------------------------------------------------------
Giulia Segreti at The Financial Times reports that Italian private
equity firm Clessidra will be joined by lender UniCredit and
Angelini, a pharmaceuticals company in its bid to acquire AS Roma,
one of the country's top Serie A football clubs, owned by the
Sensi family through Italpetroli.

"[We are] interested in examining the Roma dossier within a
consortium," Alessandro Grimaldi, founder and member of Clessidra
as well as supporter of the team, told il Messaggero, a Rome-based
daily, according to the FT.

With equal shares, the three investors could take up to 67% of the
football team, the FT states.  Mr. Grimaldi, as cited by the FT,
said that Rothschild, the advisor appointed in July, has already
been informed and formal talks should commence on August 23.

The operation has to be authorized by Consob, the Italian markets
authority, the FT notes.

According to the FT, analysts say that, before the global
financial crisis, Roma could have been expected to fetch possibly
double its current market value of some EUR150 million.

As reported by the Troubled Company Reporter-Europe on July 12,
2010, The FT said that UniCredit was looking for a new owner to
acquire AS Roma following an agreement reached on July 8 with
Rosella Sensi to settle debts owed to the bank by Italpetroli, her
near-bankrupt family holding company.  The FT disclosed UniCredit
was expected to appoint Rothschild as adviser to look for a buyer
for the capital's biggest club.  Ms. Sensi, whose family has held
a majority stake in Roma since 1993 until July 8  amounting to
67%, was struggling to repay Italpetroli's debts, with some EUR320
million owed to UniCredit and EUR80 million to Monte dei Paschi di
Siena, according to the FT.  In the meantime, Ms. Sensi would
remain part of the management team to ensure continuity for the
club in the build-up to the new season, the FT noted.

Headquartered in Rome, Italy, Compagnia Italpetroli SpA operates
as an oil storage company.  The company also offers petroleum
refining services.


IT HOLDING: Files Chapter 15 Petition in Manhattan Court
--------------------------------------------------------
Tiffany Kary at Bloomberg News reports that IT Holding SpA filed
for court protection in the U.S. to aid its main reorganization in
Italy.

Bloomberg relates a Chapter 15 petition filed in Manhattan court
on Friday listed as much as US$1 billion in assets and
liabilities.  According to Bloomberg, Stanislao Chimenti, an
administrator of the Italian proceeding, was listed as a foreign
representative.

The case is In re Foreign Represenative Stanislao Chimenti,
Commissioner, 10-14354; U.S. Southern District of New York
(Manhattan).

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

                       About IT Holding SpA

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


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


NIZHNEKAMSKNEFTEKHIM OAO: Fitch Affirms 'B' Issuer Default Rating
-----------------------------------------------------------------
Fitch Ratings has affirmed Tatarstan-based chemical producer OAO
Nizhnekamskneftekhim's Long-term Issuer Default Rating and senior
unsecured rating at 'B', respectively, and affirmed the National
Long-term rating at 'BBB-(rus)'.  Fitch has simultaneously removed
these ratings from Rating Watch Negative and assigned Stable
Outlooks to the Long-term IDR and National Long-term rating.  The
Short-term IDR is affirmed at 'B'.  The Recovery Rating on the
senior unsecured notes is 'RR4'.

The rating action reflects management's successful efforts to
access bank funding and address liquidity concerns following the
US$200 million bond restructuring in Q409.  At that time, Fitch
was concerned that NKNK may experience difficulties in refinancing
debt maturities starting in Q210 (for further information, see the
October 7, 2009 comment, entitled 'No Rating Impact on NKNK from
Proposed Bond Exchange Offer', available at www.fitchratings.com).

Notably, these efforts include securing new bank facilities
totalling US$100 million, resulting in RUB4.9 billion
(US$158 million) of undrawn facilities as of June 30, 2010, in
addition to a cash balance of RUB2.3 billion.  The agency expects
NKNK to achieve free cash flow (FCF) of RUB4 billion-5 billion in
H210-2011 which will further support a liquidity profile that is
now adequate to meet near-term maturities of RUB7.7 billion in
this period (out of a total debt RUB15.7 billion).

NKNK delivered strong results in H110 with average capacity
utilization rates of 95% (FY2009: 85%) for its main product lines.
Improved demand from end customers and re-stocking in Russia and
export markets has supported high utilization rates.  In addition,
the weaker rouble continues to support the cost competitiveness of
NKNK's products.  Fitch estimates H110 revenue at RUB46 billion
(H109: RUB28 billion), helped by higher prices and volumes, and an
EBITDAR margin of 15% (H109: 9%).

Fitch expects slightly lower capacity utilization rates in H210 as
a result of seasonal effects and slowing re-stocking demand.  The
agency anticipates that 2010 y-o-y revenue will increase 40%,
before declining to an average growth rate of 5% in 2011-2013
assuming stable product prices, and anticipates an EBITDAR margin
of 10-11% in 2010 and 9%-10% in 2011-2013.  NKNK has restarted its
expansionary capex program, which was delayed in 2008, which Fitch
expects to average RUB2 billion during 2010-2013.  Assuming
dividends payments averaging RUB1 billion a year and no material
working capital outflows, the company should be able to revert to
pre-2008 FCF of above RUB4bn per year from 2012 onwards which
should enable NKNK to continue deleveraging.

NKNK's funds from operations adjusted leverage (net debt/FFO
before interest payments and rental expenses) was 1.4x at end-2009
(end-08: 1.9x).  Fitch now expects leverage to peak in 2010 at
approximately 2.0x before falling to 1.0x in 2012.  Similarly,
Fitch expects the FFO interest coverage (FFO/gross interest
expense) to reach its low point of 6.0x in 2010.

The company's ratings are restricted by the agency's concerns that
NKNK's profitability may not return to pre-2009 levels on a
sustainable basis.  Gross profit margins have been declining since
2003 due to rising raw material prices (mainly feedstock), natural
gas prices and transportation tariffs as a result of market
liberalization.  These price increases, along with general
inflation in Russia, have contributed to falling margins and NKNK
has yet to demonstrate whether it can offset this trend.


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


QUEEN'S WALK: Faces Shake-Up as Shares Trade at Discount
--------------------------------------------------------
Sam Jones at The Financial Times reports that Cheyne Capital, one
of London's most prominent credit hedge funds, is poised to
reorganize its listed vehicle Queen's Walk Investment, which was
an early victim of the global housing slump when it hit in 2007.

The FT says losses at the fund presaged the collapse of Northern
Rock and the spread of problems in the US subprime housing market
into the UK.

According to the FT, in spite of a broad recovery across housing
markets over the past 18 months, shares in Queen's Walk have
traded at a significant discount to the value of the fund's actual
assets, valued at more than EUR100 million (GBP82 million).
Shares have been trading at as much as a 35% discount recently,
the FT notes.

Cheyne aims to refocus the fund on opportunities in more liquid
mortgage-backed assets, the FT says citing people familiar with
the plan.

Shareholders will be presented with a plan to alter the funds'
investment policy and agree to an open offer from Cheyne that will
inject a further EUR25 million into the fund, the FT discloses.
The money will go towards purchasing a new tranche of mezzanine-
level mortgage-backed credit, the FT states.

Queen's Walk Investment specialized in investing in complex
mortgage assets.


EDDINGTON CAPITAL: To Liquidate Funds After Assets Dwindle
----------------------------------------------------------
FINalternatives reports that Eddington Capital will liquidate its
funds and return assets to investors.

The report relates the seven-year-old London fund of hedge funds
shop saw its assets under management dwindle by more than half
over the past two years.  According to the report, the firm's
assets under management have fallen to US$115 million from their
peak of US$265 million in 2008.

"The funds have been losing assets gradually over the last 24
months," CEO Glenn Baggley told Reuters, according to the report.
"They've reached a level that can no longer be sustained."

Eddington is a joint venture of the hedge fund's management and
Caledonia Investments, according to FINaltenatives.


GREENLIT: Goes Into Administration
----------------------------------
Tara Conlan and Mark Sweney at guardian.co.uk report that Greenlit
has gone into administration, after being excluded from parent
company Target Entertainment Group's sale to Metrodome on Monday.

The report, citing MediaGuardian.co.uk, discloses the company's
four staff were informed Monday by BDO Stoy Hayward, the company
appointed by Target in June to oversee the sale of the TV
distributor, that the company is going into administration and
they were being made redundant.

The report relates Greenlit founder, Jill Green, left the company
last month.  The report notes Ms. Green said she felt she had "no
choice", claiming Target failed "to comply with the original terms
of our agreement relating to the sale of the business".  According
to the report, Ms. Green, who sold Greenlit to Target in February
2008 but remained with the company as managing director, revealed
that she was trying to buy back the rights to shows including
Foyle's War.

The report notes Metrodome chairman, Mark Webster, said:
"Metrodome Group very much wanted to include Jill Green and
Greenlit as part of the acquisition, but could not reach an
agreement that suited all parties.

Greenlit is the independent producer behind Foyle's War and
current BBC2 comedy drama Vexed.


HIGH LEGH: In Administration; Country Club Put Up for Sale
----------------------------------------------------------
Manx Radio reports that High Legh Holdings, which the High Legh
Park Country Club in Cheshire, has gone into administration.

Administrators Deloitte LLP, who were called in at the end of last
month, are inviting offers in the region of GBP750,000 for the
country club.

High Legh Holdings is owned by Isle of Man-based businessman
Graham Ferguson Lacey


JEFFERSON SHEARD: In Administration; Still Owes Wages to Staff
--------------------------------------------------------------
David Rogers at bdonline.co.uk reports that Jefferson Sheard
Architects (UK) Limited has gone into administration.

The report relates insolvency specialist P&A Partnership was
appointed administrator for Jefferson Sheard on August 11, a month
after the firm made around 45 of its 50-strong workforce
redundant.

According to the report, former employees are still owed thousands
of pounds in wages and redundancy pay weeks after losing their
jobs.

The report relates that in a letter sent on July 12, managing
director Tom Jones Jones told staff that their employment was
ending with "immediate effect" and added: "Details of any salary
and redundancy monies due, together with payment in lieu of notice
and holiday entitlement that you may have accrued but not taken,
will be sent to you shortly."

Since then former staff say they have received no further
communication from the company -- other than to have their P45s
sent through the post, the report notes.

Jefferson Sheard Architects (UK) Limited was based in Sheffield.
The company was set up in 1958.  As well as its Sheffield base it
had offices in Manchester, Peterborough and Edinburgh, according
to bdonline.co.uk.


LEHMAN BROTHERS: European Unit Sues Dubai Real-Estate Group
-----------------------------------------------------------
Bloomberg News reports that Lehman Brothers International Europe
sued Dubai Holding Commercial Operations Group LLC, a real estate
and hospitality group owned by the emirate's ruler, over the value
of swap transactions.

Bloomberg, citing court documents, relates that LBIE, which is in
administration in the U.K., filed the lawsuit in London Aug. 9.
The case is "a straightforward financial dispute regarding the
valuation of certain swap transactions entered into between the
parties," LBIE's administrators, PricewaterhouseCoopers LLP, said
in an e-mailed statement.

LBIE's parent, Lehman Brothers Holdings Inc., had more than
900,000 derivative contracts outstanding pre-bankruptcy.

The case is Lehman Brothers International Europe (in
administration) v. Dubai Holding Commercial Operations Group LLC,
case no. HC10C02586, High Court of Justice, Chancery Division
(London).

                       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)


PAG HOTELS: Two Scottish Hotels Put Up for Sale
-----------------------------------------------
Rachel Constantine at Business Sale Report reports that two of PAG
Hotels' Scottish hotels have been put up for sale as fully
operational businesses.

According to the report, the 12-bedroom Castle Venlaw Hotel on the
outskirts of Peebles has been put onto the market for offers over
GBP795,000.  The Moffat-based 25-bedroom Auchen Castle Hotel,
which comes complete with 28 acres of land and a private loch has
also been put up for sale at offers over GBP1.25 million, the
report notes.

The report relates accountants KPMG placed PAG Hotels into
administration at the end of June after being called in by
Santander bank.  As a result, more than 30 jobs are at risk, but
both hotels remain open, the report states.

According to the report, Alistair Letham, a director with the
selling agents Colliers International, said, "They both trade at
good levels of turnover and there is an opportunity for new owners
to re-establish the businesses back to the levels of profitability
that were previously enjoyed."

"Both hotels will continue to trade as normal while a buyer is
sought, and the intention is that existing bookings will be
honored," the report quoted David Nimmo, joint administrator and
head of restructuring for KPMG in Scotland, as saying.

PAG Hotels Ltd. owns hotel properties.


ST. URSULA'S: Bristol City Council Mulls Acquisition
----------------------------------------------------
BBC News reports that Bristol City Council has said it intends to
buy St. Ursula's School out of administration.

According to BBC, the council's cabinet will hold a special
meeting on Friday, August 20, to make the decision to purchase the
school.

The council has since been in discussions with the Christian
educational trust Oasis Community Learning, which wants to turn
the school into an academy, BBC notes.

BBC relates Councilor Clare Campion-Smith, cabinet member for
children and young people, said the intention was for the school
to remain fee-paying for the next academic year.

"We cannot open a new school in a few weeks, so we are in
discussions with Oasis Community Learning who have indicated a
willingness to continue fee-paying education on the site for a
period of time," BBC quoted Ms. Campion-Smith as saying.

"We cannot put council money into a private school -- our focus is
on providing much-needed state education on the site as soon as
practically possible.

"There is no guarantee of our offer for the site being accepted,
but we are progressing negotiations speedily and are making this
announcement today to help bring some clarity to the situation for
anxious families."

As reported by the Troubled Company Reporter-Europe on Aug. 13,
2010, BBC News said St. Ursula's went into administration week
after a bid to make it a non-denominational academy was rejected
by the Sisters of Mercy, the Catholic nuns who ran the school.
BBC disclosed it has struggled to remain financially viable
because of falling pupil numbers.  About 160 pupils were left
without schools and 40 staff lost their jobs, BBC noted.

As reported by the Troubled Company Reporter-Europe on Aug. 5,
2010, Evening Post said Nigel Morrison and Trevor O'Sullivan, both
partners of Grant Thornton, were appointed joint administrators of
the school.

St. Ursula's is a Bristol-based independent mixed catholic private
school.


* UK: Insolvent Football Clubs to Face Tougher Sanctions
--------------------------------------------------------
Gavin Mairs at The Daily Telegraph reports that championship clubs
going into insolvency in the new season are to face tougher
sanctions as part of a crackdown by the Rugby Football Union to
prevent financial mismanagement in England's second tier
competition.

The report relates last season three clubs -- London Welsh,
Birmingham-Solihull and relegated Coventry -- all went into
administration or liquidation only to re-emerge as phoenix
companies.  According to the report, although the clubs were hit
with substantial points deductions, there was widespread anger in
the league that these sanctions did not apply to the relegation
play-offs, effectively penalizing clubs that had not spent beyond
their means.  New regulations however will ensure any club that
goes into insolvency will now be automatically demoted to the
relegation play-offs, the report says.

From the start of the new season later this month, the RFU will
also be able to instruct a representative to attend board meetings
of any club they believe to be in financial trouble, the report
discloses.  Clubs will have to produce business plans to the RFU
by next June ahead of the start of the 2011-12 season, the report
states.

"We want to keep clubs alive but we also have got to maintain the
integrity of the competition in fairness to the other clubs," the
report quoted Terry Burwell, RFU tournaments and competitions
director, as saying.

"The hardliners will always say 'why don't you just relegate them
(teams entering insolvency)' but that doesn't necessarily solve
the problem.  We are not in the business of putting clubs out of
the business.  We are in the business of trying to help clubs
manage their business more effectively.

"We need to be able to try to steer clubs through difficult times
because what we are trying to make sure is that we don't lose
clubs during the course of the season.

"The clubs that got into trouble last season have more robust,
rigorous and realistic financial planning but the question is
whether they can manage their cost base sufficiently to ensure the
direction of their club is not prejudiced."


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


* EUROPE: LBOs May Struggle to Refinance Debt, S&P Says
-------------------------------------------------------
Anne-Sylvaine Chassany at Bloomberg News reports that Standard &
Poor's said many European companies acquired in leveraged buyouts
may struggle to refinance their debt in the near to medium term as
revenue and profit failed to meet their owners' original
projections last year.

Bloomberg relates Standard & Poor's said in a study published
Aug. 12 that about 80% of the 78 companies the ratings company
analyzed fell short of their forecast for earnings before
interest, tax, depreciation and amortization at the end of 2009,
compared with 69% a year earlier.

According to Bloomberg, S&P said about 22 percent of LBOs in
Europe have either defaulted or gone through a loan restructuring
since 2008.  Bloomberg notes S&P said a further 33% breached their
banking ratios or had to negotiate looser terms.  Almost one-fifth
of European LBOs have received a cash infusion from their owners,
the company, as cited by Bloomberg, said.  S&P said the injection
didn't prevent a debt restructuring in more than a third of cases,
according to Bloomberg.


                            *********

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

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

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

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

                            *********


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

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

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

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

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

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


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