TCREUR_Public/100826.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Thursday, August 26, 2010, Vol. 11, No. 168



* S&P Raises Issuer Rating on Bulgarian Capital City of Sofia


HAPAG-LLOYD AG: Considers Returning State Loan Guarantees


VERTESI EROMU: Files for Bankruptcy Protection


LANDSBANKI ISLANDS: General Creditors Won't Get Anything


ALLIED IRISH: To Choose Buyer for Zachodni Stake Within 7 Days
ANGLO IRISH: McKillen Loans Excluded From Second NAMA Transfer

* IRELAND: Hotel-Linked Debt Transferred to NAMA Surges


ARES EUROPEAN: S&P Lowers Rating on Class C Notes to 'BB+'
OMEGA CAPITAL: S&P Cuts Ratings on Two Classes of Notes to CCC+


FLANCO GROUP: Seeks Creditor Support on Reorganization Plan


NOMOS BANK: Fitch Assigns 'BB-' Long-Term Rating on Bonds

* Fitch Gives Negative Outlook on City of Kazan; Keeps B+ Rating
* Fitch Assigns 'BB-' Rating on Republic of Khakassia's Bonds


AVANGARDCO INVESTMENTS: Fitch Puts 'B' Issuer Default Ratings

U N I T E D   K I N G D O M

BURGESS DORLING: Acquired by Denby; Set to Exit CVA Next Month
LUMINAR GROUP: At Least 11 Venues Shut Since February
PUNCH TAVERNS: Year-End Earnings Slightly Higher Than Expected
ROYAL BANK: Should Not Get Second Taxpayer Bailout, CEO Says


* EUROPE: Banks to Face More Frequent Stress Tests, Rehn Says

* Upcoming Meetings, Conferences and Seminars



* S&P Raises Issuer Rating on Bulgarian Capital City of Sofia
Standard & Poor's Ratings Services said that it had raised its
long-term issuer credit rating on the Bulgarian capital City of
Sofia to investment grade 'BBB-' from 'BB+'.  The outlook is

"The upgrade reflects the resilience of Sofia's solid operating
budgetary performance to ongoing economic difficulties and S&P's
expectation that significant confirmed funds from the EU will help
the city complete its major infrastructure projects with slower
debt accumulation," said Standard & Poor's credit analyst Felix

The rating reflects Sofia's strategic position as the
administrative, financial, and commercial center of the Republic
of Bulgaria (BBB/Stable/A-3); consistently high operating surplus;
modest debt burden; strong liquidity position; and strong support
from the central government.

The rating is constrained by the city's still limited financial
predictability, continued expenditure pressure from urgent
infrastructure requirements, only sluggish economic growth
projected for 2010-2012, and sizable contingent liabilities
related to its main transport and utility companies.

The stable outlook reflects S&P's expectation that slow but steady
economic recovery, combined with the city's ability to establish
tight control over operating spending and to benefit from large
state and EU cofunding, will help the city gradually improve its
deficit after capital expenditures in line with S&P's medium-term

S&P could raise the rating if the city manages to improve its
budgetary performance faster than S&P currently expects, and if
loss-making heating utility Toploficatsiya's potential debt burden
is relieved, while maintaining its cash cushion and capital
expenditures at their currently high levels.

"S&P might lower the rating if Bulgaria's economic contraction
continues beyond 2010, with a concomitant negative impact on
Sofia's revenue growth and operating balances," said Mr. Ejgel.

Other rating pressures would arise if the anticipated EU and state
cofunding were not forthcoming, but planned capital expenditures
were not consequently adjusted downward, which would likely prompt
the city to increase its debt significantly beyond forecasts.


HAPAG-LLOYD AG: Considers Returning State Loan Guarantees
Nikolaj Gammeltoft at Bloomberg News, citing Financial Times
Deutschland, reports that Hapag-Lloyd AG, the shipping company of
which TUI owns about 43%, is considering returning state loan

As reported by the Troubled Company Reporter-Europe on Oct. 6,
2009, Bloomberg News said that the German government approved
Hapag-Lloyd AG's application for EUR1.2 billion in loan
guarantees.  Bloomberg disclosed Chancellor Angela Merkel's
government agreed to share 90% of the guarantee costs with the
Hamburg city government.

As reported by the Troubled Company Reporter-Europe on July 21,
2009, the Financial Times said Hapag-Lloyd was one of many
container lines worldwide struggling to cope with a slump in the
sector brought on by an oversupply of ships and rapid falls in
movements of the manufactured goods on which the trade depends.

Hapag-Lloyd AG -- is the
transportation arm of German tourism giant TUI.  Subsidiary Hapag-
Lloyd Container Line, which accounts for most of Hapag-Lloyd's
sales, operates a fleet of about 135 containerships.  Overall,
Hapag-Lloyd Container Line's vessels have a capacity of more than
490,000 twenty-foot equivalent units (TEU).  The unit's routes
link Europe, Asia, the Americas, and Africa.  In addition to
freight transportation, Hapag-Lloyd offers luxury ocean and river
cruises under its Hapag-Lloyd Cruises brand.  TUI sold Hapag-
Lloyd's container operations to a German investment group in March


VERTESI EROMU: Files for Bankruptcy Protection
MTI Eco-News reports that Vertesi Eromu has filed for bankruptcy

According to the report, the company said a general meeting of the
shareholders made the decision in the interest of remunerating its
workers, supplying the region with district heating and repaying
loans with state guarantees.  Vertesi will prepare a program
designed to make it solvent as well as make proposals to its
creditors and workers during the 90 days it is under bankruptcy
protection, the report says.

The report notes the company said had it not filed for bankruptcy
protection, it would have had to pay more than EUR6 million to
energy traders by the end of August.

Vertesi Eromu is a Hungarian power plant.  It is a unit of the
state-owned Hungarian Electricity Works.


LANDSBANKI ISLANDS: General Creditors Won't Get Anything
Omar R. Valdimarsson at Bloomberg News reports that Iceland
Finance Minister Steingrimur Sigfusson said that creditors of
Landsbanki Islands hf will get next to nothing back from their
investments after assets are sold to cover the bank's priority

"The general claimants in Landsbanki are not likely to get much,
if anything," Bloomberg quoted Mr. Sigfusson as saying in an
interview in Reykjavik Monday.  "In the other banks, the situation
is better and they will get some return," he said, referring to
bond holders in Kaupthing Bank hf and Glitnir Bank hf.

Bloomberg says the comments end hopes creditors, including BNP
Paribas SA and Nordea Bank AB, may have had of recouping their
share of US$27.4 billion in debt owed to them since Landsbanki's
collapse in October 2008.

According to Bloomberg, Mr. Sigfusson said the government is
considering guaranteeing a portion of US$5.2 billion in
Landsbanki's depositor claims that won't be covered by asset
liquidations, estimated at about 10%.  That includes Icesave
deposits and other claims against collateral, Bloomberg notes.

                     About Landsbanki Islands

Landsbanki Islands hf, also commonly known as Landsbankinn in
Iceland, is an Icelandic bank.  The bank offered online savings
accounts under the "Icesave" brand.  On October 7, 2008, the
Icelandic Financial Supervisory Authority took control of
Landsbanki and two other major banks.

Landsbanki filed for Chapter 15 protection on Dec. 9, 2008 (Bankr.
S.D. N.Y. Case No.: 08-14921).  Gary S. Lee, Esq., at Morrison &
Foerster LLP, represents the Debtor.  When it filed for protection
from its creditors, it listed assets and debts of more than
US$1 billion each.

As reported by the Troubled Company Reporter-Europe, on June 15,
2009, British authorities revoked the October 2008 Freezing Order
on the assets of Landsbanki in Britain, which were set using anti-
terrorism legislation.  Following the fall of Iceland's three
largest banks, Icelandic banking assets in the UK were frozen on
October 8, 2008 using anti-terrorism laws.  The Icelandic
government has ever since protested the application of
this legislation against Iceland.


ALLIED IRISH: To Choose Buyer for Zachodni Stake Within 7 Days
Maciej Martewicz at Bloomberg News, citing Rzeczpospolita, reports
that Allied Irish Banks Plc is set to choose the buyer of its
stake in Poland's Bank Zachodni WBK SA within seven days.

According to Bloomberg, the Warsaw-based newspaper said Banco
Santander SA of Spain, France's BNP Paribas, and Poland's PKO Bank
Polski SA all placed offers to buy 66% of Zachodni, or less than
70% that AIB owns.

Bloomberg notes Rzeczpospolita said bidding for a lower holding
helps the potential buyer avoid an obligation in the Polish law to
announce public tender for the remaining shares in case of
exceeding this threshold.

As reported by the Troubled Company Reporter-Europe, Bloomberg
said Allied Irish is selling the stake in Zachodni as it seeks to
raise EUR7.4 billion (US$9.4 billion) to reach new capital

Allied Irish Banks, p.l.c., together with its subsidiaries -- 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.

ANGLO IRISH: McKillen Loans Excluded From Second NAMA Transfer
Simon Carswell at The Irish Times reports that the second tranche
of assets purchased by the National Asset Management Agency from
Anglo Irish Bank does not include some of the bank's loans to
developer Paddy McKillen who is challenging the agency in the

According to the report, Mr. McKillen has loans totaling EUR800
million with Anglo, which were earmarked for transfer in the
second tranche.  It's understood that the transfer of most of his
loans to Nama are on hold, pending the outcome of his judicial
review against their sale, the report states.

The case is due to be heard by the Commercial Court in October,
the report notes.

Nama had originally planned to purchase loans with a face value of
EUR8 billion from Anglo in the second tranche, but the agency on
Monday said that it had purchased loans with a face value of
EUR6.75 billion from Anglo, paying EUR2.57 billion or a discount
of 61.9%.

Anglo Irish Bank Corp PLC --
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'.

* IRELAND: Hotel-Linked Debt Transferred to NAMA Surges
Laura Noonan at Irish Independent reports that the National Asset
Management Agency is now kingmaker for 35 Irish hotels after a
dramatic surge in the level of hotel-linked debt parked with the
bad bank.

According to the report, a quarter of the entire EUR11.9 billion
sent over in the second batch of NAMA transfers was secured on 31
hotels, including 22 in Ireland.  The picture is in stark contrast
to the first tranche of transfers, when just 4% of the EUR27.2
billion transferred over was secured on hotels, the report notes.
The extra 22 Irish hotels brought into NAMA's reach by the latest
transfers brings the total number of NAMA-linked hotels to 35,
while NAMA also has a claim on 13 non-Irish hotels, the report

The State's bad bank doesn't own or directly operate the hotels,
but it can have a major say in their futures, the report

According to the report, developers will be required to include
detailed strategies for the hotels when they present their
business plans to NAMA over the coming months.

NAMA will have the power to interrogate aspects of the plans, and
can also suggest borrowers sell their hotels to pay debts, the
report notes.  The report says since the hotels are being used as
security for loans, NAMA is also empowered to seize the hotels in
the event of developers defaulting on their debts.

The report relates in its business plan, NAMA hints that it may
close hotels where a "number of NAMA-funded hotels are competing
in a location where there is only potential for a single


ARES EUROPEAN: S&P Lowers Rating on Class C Notes to 'BB+'
Standard & Poor's Ratings Services lowered its credit rating on
Ares European CLO II B.V.'s class C notes.  At the same time, S&P
affirmed the ratings on the class A, B, and D notes.

The rating action follows S&P's review of the transaction, taking
into account recent developments and assuming early repayment and
cancellation of the liquidity facility.  S&P understand that under
the liquidity facility agreement as currently documented, the
termination of the facility was triggered by the downgrade of the
transaction's junior notes by another rating agency.

In S&P's opinion, the results of its analysis for the class C
notes are now consistent with a rating of 'BB+ (sf)' and S&P has
therefore lowered its rating on that class from the previous
rating of 'BBB- (sf)'.  However, S&P's analysis indicates that the
ratings on class A, B, and D notes remain appropriate, and S&P has
therefore affirmed its ratings on these classes.

Ares European CLO II is a cash flow collateralized loan obligation
transaction that securitizes loans to primarily speculative-grade
corporate firms and closed in May 2006.

                           Ratings List

                     Ares European CLO II B.V.
    ?400 Million Secured Floating-Rate And Subordinated Notes

                          Rating Lowered

                Class       To            From
                -----       --            ----
                C           BB+ (sf)      BBB- (sf)

                         Ratings Affirmed

                        Class       Rating
                        -----       ------
                        A           A+ (sf)
                        B           BBB+ (sf)
                        D           BB- (sf)

OMEGA CAPITAL: S&P Cuts Ratings on Two Classes of Notes to CCC+
Standard & Poor's Ratings Services corrected by lowering its
credit ratings on Omega Capital Investments PLC's series 17 class
A CDO notes and ELM B.V.'s series 65, 67, 70, 71, 75, 81, 83, and
84 synthetic CDO notes.

The errors were due to the incorrect input of portfolio maturity
dates.  Based on the incorrect maturity dates, S&P erroneously
raised the ratings on the Omega notes on July 19, 2010, and on the
ELM notes on June 17, 2010.

The corrections follow the discovery and resolution of the errors.

                           Ratings List

                         Ratings Lowered

                   Omega Capital Investments PLC
CHF75 Million, ?15 Million Secured Floating-Rate Notes Series 17

                         To                     From
                         --                     ----
            Class A      CCC+ (sf)              B- (sf)

                              ELM B.V.

     $18 Million Class H Secured Credit-Linked Notes Series 65
                        (Morro Bay Notes)

                   To                     From
                   --                     ----
                   CCC+ (sf)              BB- (sf)

     $2 Million Class J Secured Credit-Linked Notes Series 67
                        (Morro Bay Notes)

                   To                     From
                   --                     ----
                   B (sf)                 BB+ (sf)

    $9.5 Million Class G Secured Credit-Linked Notes Series 75
                        (Morro Bay Notes)

                   To                     From
                   --                     ----
                   B (sf)                 BB+ (sf)

$2 Million Secured Credit-Linked Notes Series 70 (Morro Bay Notes)

                   To                     From
                   --                     ----
                   BB- (sf)               BBB- (sf)

     $2 Million Class L Secured Credit-Linked Notes Series 71
                        (Morro Bay Notes)

                   To                     From
                   --                     ----
                   BB- (sf)               BBB- (sf)

$10 Million Class L Secured Short-Strategy Linked Variable Coupon
                  Credit-Linked Notes Series 83
                        (Morro Bay Notes)

                   To                     From
                   --                     ----
                   BB- (sf)               BBB- (sf)

    $10 Million Class L Secured Credit-Linked Notes Series 84
                        (Morro Bay Notes)

                   To                     From
                   --                     ----
                   BB- (sf)               BBB- (sf)

    ?10 Million Class JSS Secured Credit-Linked Notes Series 81
                        (Morro Bay Notes)

                   To                     From
                   --                     ----
                   BBB+ (sf)              AA- (sf)


FLANCO GROUP: Seeks Creditor Support on Reorganization Plan
Mihaela Popescu at Ziarul Financiar reports that Flanco Group's
creditors were scheduled on Aug. 24 to vote on the reorganization
plan of the company.

According to the report, the plan entails a capital inflow from a
new investor in this business in order to repay the debt to banks.

The administrators of the company that has been insolvent for
about eight months recommend the transfer of the stores to a newly
established company, which should later get a capital inflow from
a financially powerful investor, the report states.

The biggest creditors of Flanco, ING, Unicredit Tiriac Bank and
BRD-Groupe Societe Generale have about EUR12 million to recover
from the retailer, the report discloses.

Flanco's shareholders and administrators are currently in talks
with two investors that could buy into the company via a capital
inflow, according to the report.

The short list of those interested might include Dan Adamescu, one
of the shareholders; Lorand Szarvadi, the minority shareholder of
competitor TechnoMarket Domo or an Asian trade group, and the deal
could put the company's value at tens of millions of euros, the
report says citing market sources.

Flanco Group is a Romanian retail store chain selling consumer
electronics with over 100 stores in Romania.  It is owned by
Romanian company Flamingo International SA.


NOMOS BANK: Fitch Assigns 'BB-' Long-Term Rating on Bonds
Fitch Ratings has assigned Nomos Bank's series 12 RUB5 billion
bonds final ratings of Long-term local currency 'BB-' and National
Long-term 'A+(rus)'.  The ratings are in line with the bank's
Long-term local currency Issuer Default Rating 'BB-' and National
Long-term rating 'A+(rus)'.  The Outlooks on both ratings are

The senior unsecured notes have a 7-year maturity with a put
option in three years, and a coupon of 8.5%.

At end-H110, Nomos ranked 15th by assets among Russian banks with
a 1% market share.  Group of local businessmen, some also
beneficiaries of the ICT industrial group, controls 50.1%; the
remainder is owned by Peter Kellner and Roman Korbacka.

* Fitch Gives Negative Outlook on City of Kazan; Keeps B+ Rating
Fitch Ratings has changed the Russian City of Kazan's Outlooks to
Negative from Stable.  Its ratings have been affirmed at Long-term
foreign and local currency 'B+' respectively, and Short-term
foreign currency 'B'.  The agency has also affirmed its National
Long-term rating at 'A(rus)'.  The action affects RUB1.6bn of
outstanding bonds.

The revision of the Outlooks reflects Fitch's concern on the
city's growing direct risk.  The ratings reflect its well-
diversified local economy and potential support from the Republic
of Tatarstan ('BBB-'/Stable/'F3').  The ratings also take into
account weakened budgetary performance in 2009.

Kazan's direct risk increased to RUB17.2 billion as of August 1,
2010 from RUB5.5 billion at the beginning of 2009, after capital
grants from Tatarstan to fund investments were replaced by budget
loans.  During 2009-2010, Kazan took up RUB12 billion loans from
the Tatarstan Republic, of which RUB10 billion are sub-loans from
federal governments for funding road and infrastructure
modernization ahead of Universiade 2013, an international sport
event to be held in Kazan.  Direct risk is expected to be RUB17.1
billion in 2011, which exceeds forecasted current revenue by 1.5x.
However, with the loans being earmarked for the federal project,
the city administration expects the loans to be written off by
Tatarstan.  In the event that the loans are not written off,
Kazan's ratings will come under pressure.

Kazan also has a RUB1.6 billion domestic bond maturing in 2011 and
RUB3.4 billion short-term bank loans as of August 1, 2010.  The
city intends to refinance the short-term bank loans with a planned
RUB2 billion 2014 domestic bond issue towards end-2010.  This will
extend the city's debt maturity profile and reduce short-term
refinancing risk.

The city's operating balance deteriorated in 2009 to 1% of
operating revenue due to stagnation of taxes and lower current
transfers from the Tatarstan Republic.  This is compared to the
average 14% of 2005-2008.  However, Fitch expects operating margin
will restore gradually to 6%-8% during the next three years due to
an improving economic environment and plans for operating
expenditure restraint over the medium-term.

Kazan is located in central Russia.  The city has a strong
industrial sector, which is dominated be petrochemicals, aircraft
and food.  The city's population totaled 1.14 million in 2009,
making it the eighth largest Russian city.

* Fitch Assigns 'BB-' Rating on Republic of Khakassia's Bonds
Fitch Ratings has assigned the Republic of Khakassia's upcoming
RUB1.2 billion domestic bond, due August 25, 2013, expected
ratings of Long-term local currency 'BB-' and National Long-term

The Republic has Long-term local and foreign currency ratings of
'BB-', respectively, and a National Long-term rating of 'A+(rus)'.
The Long-term ratings both have Stable Outlooks.  The Republic's
Short-term foreign currency rating is 'B'.

The bond has a 8.2% fixed-rate coupon.  The principal will be
amortized by 45% of the initial bond issue value on August 22,
2012.  The remaining 55% will be redeemed on August 25, 2013.  The
proceeds from the bond issue will be used to refinance maturing
debt and to fund capital expenditure.

The final rating is contingent upon the receipt of final documents
conforming to information already received.

Khakassia is located in southwest Siberia.  Its GRP accounts for
0.2% of national GDP, and the republic has 538,000 inhabitants,
representing 0.4% of the national population.


AVANGARDCO INVESTMENTS: Fitch Puts 'B' Issuer Default Ratings
Fitch Ratings has assigned Avangardco Investments Public Limited
Long-term foreign and local currency Issuer Default Ratings of 'B'
respectively.  Fitch has also assigned Avangardco a National Long-
term Rating of 'A+'(ukr).  The Outlooks for the Long-term IDRs and
National Long-term rating are Stable.

Avangardco's assigned Long-term IDRs reflect its average business
risks and concentration on one product line (poultry/eggs).  This
factor is mitigated by the opportunities derived from increasing
market shares in the Ukrainian industrial eggs market, considering
the high market fragmentation, and from export markets.  In
addition, the level of vertical integration into fodder production
and distribution, along with proven pricing power, provides
sustainable profit margins compared to peers.

However, Fitch notes that the group is not fully insulated from
higher feed costs as Avangardco does not cultivate grain in any
significant amounts.  As animal feed accounts for a significant
portion of the cost of production, the company's profit margins
could be negatively affected in the event of sustained increases
in the prices of feed grain if such costs cannot be passed through
onto customers in a timely manner.  Fitch also views positively
the recent use of equity to finance the group's growth plans.

Although the Long-term foreign currency IDR is capped by Ukraine's
current sovereign rating ('B'/Stable Outlook), the rating is
constrained by the existence of sizeable related-party
transactions particularly in relation to borrowings from, and cash
deposited in, an unrated bank owned by Avangardco's main
shareholder.  Avangardco also intends to comply with certain
corporate governance structures and procedures, including the
appointment of two independent directors to the board in
accordance with UK listing rules, and plans to establish an Audit
Committee and a Nomination and Remuneration Committee, both of
which will include independent directors.  The increased
transparency, along with management's plans to reduce exposure to
the related-party bank, would be viewed positively by Fitch.
Therefore, corporate governance standards can be considered rather
weak albeit with a declared commitment to improve in future.

Avangardco's financial risk is considered below-average, assuming
gross lease-adjusted leverage does not exceed 2.5x and EBITDAR to
fixed charges remains comfortably above 3.5x.  The group has a
moderate level of foreign currency risk exposure, although this
could increase depending on the future level of foreign currency
debt and the pace of expansion of its revenue growth from exports.
Fitch's assessment is also constrained by expected negative free
cash flow generation in 2010 and 2011 driven by large capital
investment plans.  This is mitigated by the flexible investment
plan which provides a cushion against unfavorable market trends.

The rating also takes into account the company's short-term debt
maturity profile at present.  Servicing this debt relies on the
use of existing cash or other refinancing activities.  Fitch
acknowledges the options highlighted by management in this regard,
including the procurement of new credit lines from Ukrainian banks
which is currently under discussion, the rollover of debt with
existing banks and/or partial refinancing by way of issuing a
long-term bond in the capital markets.

Avangardco is a leading agroindustrial company in Ukraine,
specializing in the production of shell eggs and egg products.  In
2009, the company had a market share of approximately 23% of all
shell eggs, 39% of industrially produced shell eggs, a segment
which is growing at the expense of local household production, and
52% of all dry egg products in Ukraine.  In 2009, net sales and
EBITDA were US$320 million and US$133 million respectively (41.6%
EBITDA margin).

A potential positive rating action on the Long-term foreign
currency IDR is capped by the sovereign rating at present, while
the Long-term local currency IDR is constrained by limited
business diversification and weak corporate governance.

A negative rating action could follow in the event of evidence of
a sustained increase in feed costs along with weakening pricing
power driving the EBITDA margin down, and lease-adjusted gross
debt/EBITDAR consistently above 3.0x, especially if this was
combined with negative free cash flow generation weakening the
group's liquidity profile.

U N I T E D   K I N G D O M

BURGESS DORLING: Acquired by Denby; Set to Exit CVA Next Month
Denby has acquired Burgess, Dorling & Leigh, securing the future
of the company, reports.

The report relates the company went bust two years ago after its
accountant, Louise Shingler, stole some GBP16,000 from the
business.  The company was forced to make redundancies and to
enter into a Company Voluntary Arrangement with its creditors, the
report recounts.

According to the report, new owner Denby says that the company
should exit its CVA within the next month.

Burgess, Dorling & Leigh is a Stoke-on-Trent-based pottery

LUMINAR GROUP: At Least 11 Venues Shut Since February
Chris Kay and Peter Evans at Bloomberg News report that Luminar
Group Holdings Plc has shut at least 11 venues since February and
its shares have plunged 74% this year.

Bloomberg relates Luminar said in July it had 76 clubs, down from
87 on Feb. 25.  It reported a record net loss of GBP123 million
for the year ended that day, according to Bloomberg.  Bloomberg
notes the company said the World Cup soccer tournament cut
admissions revenue by 26% in the 19-week period ended July 8.
Sales fell 20%, Bloomberg discloses.

According to Bloomberg, British nightclubs are closing as rising
unemployment and the allure of cheap supermarket booze means more
revelers stay home.  Dwindling disposable income during the
recession has left nightclubs, which typically charge an entry
fee, relying on cut-price tickets and drinks promotions to keep
hold of partygoers, Bloomberg notes.

As reported by the Troubled Company Reporter-Europe on June 22,
2010, the Financial Times said Luminar was close to appointing
Deloitte to consider strategic options for a restructuring of its
debts, including a potential resetting of covenants.  Luminar has
net debt of GBP100.6 million, according to the FT.  The FT
disclosed in May, Luminar warned that it could breach covenants
linked to its debt should trading deteriorate further as it
reported a 78% drop in underlying profits to GBP4.4 million for
the year to February.  Goldman Sachs on June 15 ceased coverage of
the company, saying Luminar would be in danger of breaching
covenants when it was tested in August, the FT said.  PwC,
Luminar's auditors, has also been helping the company with its
finances, the FT stated.

Based in Milton Keynes, United Kingdom, Luminar Group Holdings plc
-- is engaged in the ownership,
development and operation of nightclubs and themed bars.  Its main
branded venues are Oceana, Liquid, and Lava & Ignite.  The
Company's product brands include Big Night Out, Vibe, Red Carpet
Moments and UK Club Culture (UKCC).  Oceana has five bars, two
clubs, and one amazing night.  The Liquid brand has a main room
with lighting, sound and laser technology.  Liquids also have a
secondary room called envy.  Envys provide clubbers with music
varying from disco to rhythm and blues (RnB) and the like.  Lava &
Ignite has a classic twin-scene format.  The main room includes
sound and lighting technology, and can be transformed to a venue
for corporate events, live music and televised sporting events.
Life caters to local pub, local club and local people.  Life is a
bar and club concept.  It is designed to fit into smaller towns.
The Company's subsidiaries include Luminar Holdings Limited,
Luminar Oceana Limited, and Luminar Lava Ignite Limited.

PUNCH TAVERNS: Year-End Earnings Slightly Higher Than Expected
Rose Jacobs at The Financial Times reports that Punch Taverns'
year-end earnings should be slightly higher than expected after a
warm summer drew more Britons to its 800-plus managed pubs.

According to the FT, a year-end trading statement shows sales at
pubs run by Punch and open at least a year were up 2.6% in the
final quarter from the same period last year -- in contrast to a
full-year decline of 2%.  The FT notes Phil Dutton, finance
director, said that will push earnings before tax and exceptional
items "marginally ahead of our previous expectations".

Analysts' estimates for full-year pre-tax profits were GBP130
million, the FT states.

The FT says at the group's 6,300-strong leased division, where
Punch spends about GBP2 million a month in rent concessions and
beer discounts, like-for-like profits are expected to have fallen
about 10%, in line with previous estimates.  Mr. Dutton, the FT
discloses, did not see rents improving for 12 to 18 months,
although he has seen "improving rates of decline".

Net debt remains high at the company at GBP3.1 billion, according
to the FT.  It has almost GBP300 million in cash and bonds, giving
it an annual interest cover of 6.6 times, the FT states.
Mr. Dutton, as cited by the FT, said the company will use money
from disposals to continue to pay down debt.

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

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

ROYAL BANK: Should Not Get Second Taxpayer Bailout, CEO Says
Nathalie Thomas at The Scotsman reports that Stephen Hester, Royal
Bank of Scotland's chief executive, said that the bank should not
be given a second chance of a taxpayer bailout if it is involved
in another financial crisis.

The report relates in a bold admission that the public would not
tolerate further handouts, Mr. Hester said all financial
institutions -- including RBS -- should be allowed to fail and
suffer the consequences without the state rushing to their aid.

The report notes Mr. Hester said allowing banks to fail is an
important feature of a healthy financial system, otherwise bankers
will once again believe that they can take excessive risks with
savers' and companies' money as the government will bail them out,
whatever the cost.

Mr. Hester was drafted in when RBS sank under a mountain of debt
after the meltdown that followed its disastrous takeover of the
Dutch bank ABN Amro before the credit crunch, the report

                            About RBS

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

                           *     *     *

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


* EUROPE: Banks to Face More Frequent Stress Tests, Rehn Says
Ben Moshinsky and Sara Eisen at Bloomberg News report that EU
commissioner for economic and monetary affairs Olli Rehn said
lenders in Europe may face more frequent stress tests to bolster
confidence in the region's banking industry.

Mr. Rehn said Monday in a Bloomberg Television interview in New
York that the European Union is considering at what "kind of
interval" to repeat the bank stress-testing exercise that ended
last month.

EU regulators carry out yearly stress tests on the biggest lenders
in the region, Bloomberg notes.  Last month 91 banks, accounting
for 65% of Europe's banking industry, were examined on their
resilience in the event of a shrinking economy and a drop in
government bond values, Bloomberg discloses.

Only Germany's Hypo Real Estate Holding AG, Agricultural Bank of
Greece SA and five Spanish savings banks lacked adequate reserves
to maintain a Tier 1 capital ratio of at least 6% under the worst-
case scenarios, Bloomberg says, citing results published on
July 23.

Bloomberg notes that while the July test results provided greater
transparency about lenders' holdings of sovereign debt, they were
criticized for not being stringent enough.  European banks were
shown to need only EUR3.5 billion (US$4.4 billion) of new capital,
about a tenth of the lowest analyst estimate, according to

* Upcoming Meetings, Conferences and Seminars

Sept. 14, 2010
     ABI/NYIC Golf and Tennis Fundraiser
        Maplewood Golf Club, Maplewood, N.J.
           Contact: 1-703-739-0800;

Sept. 20, 2010 (tentative)
     Complex Financial Restructuring Program
        Fordham Law School, New York, N.Y.
           Contact: 1-703-739-0800;

Sept. 22-23, 2010 (tentative)
     ABI/NYU Bankruptcy and Business Reorganization Workshop
        New York University School of Law, New York, N.Y.
           Contact: 1-703-739-0800;

Sept. 23-25, 2010
     Southwest Bankruptcy Conference
        Four Seasons Las Vegas, Las Vegas, Nev.
           Contact: 1-703-739-0800;

Oct. 1, 2010
     ABI/UMKC Midwestern Bankruptcy Institute
        Kansas City Marriott Downtown, Kansas City, Kan.
           Contact: 1-703-739-0800;

Oct. 1, 2010
     ABI/GULC "Views from the Bench"
        Georgetown University Law Center, Washington, D.C.
           Contact: 1-703-739-0800;

Oct. 6-8, 2010
     TMA Annual Convention
        JW Marriott Grande Lakes, Orlando, Florida

Oct. 11, 2010
     Chicago Consumer Bankruptcy Conference
        Standard Club, Chicago, Ill.
           Contact: 1-703-739-0800;

Oct. 15, 2010
     NCBJ/ABI Educational Program
        Hilton New Orleans Riverside, New Orleans, La.
           Contact: 1-703-739-0800;

Oct. 28, 2010
     Mid-Level Professional Development Program
        Weil, Gotshal & Manges LLP, New York, N.Y.
           Contact: 1-703-739-0800;

Oct. 29, 2010 (tentative)
     International Insolvency Symposium
        The Savoy, London, England
           Contact: 1-703-739-0800;

Nov. __, 2010
     Delaware Views from the Bench and Bankruptcy Bar
        Hotel du Pont, Wilmington, Del.
           Contact: 1-703-739-0800;

Nov. 11, 2010
     Detroit Consumer Bankruptcy Conference
        Hyatt Regency Dearborn, Dearborn, Mich.
           Contact: 1-703-739-0800;

Nov. 29, 2010
     17th Annual Distressed Investing Conference
        The Helmsley Park Lane Hotel, New York City
           Contact: 1-903-595-3800;

Dec. 9-11, 2010
     Winter Leadership Conference
        Camelback Inn, a JW Marriott Resort & Spa,
        Scottsdale, Ariz.
           Contact: 1-703-739-0800;

Dec. 2-4, 2010
     22nd Annual Winter Leadership Conference
        Camelback Inn, Scottsdale, Arizona
           Contact: 1-703-739-0800;

January 26-28, 2011
     TMA Distressed Investing Conference
        Aria Las Vegas

Jan. 27-28, 2011
     Rocky Mountain Bankruptcy Conference
        Westin Tabor Center, Denver, Colo.
           Contact: 1-703-739-0800;

Feb. 3-5, 2011
     Caribbean Insolvency Symposium
        Westin Casuarina Resort & Spa, Grand Cayman Island
           Contact: 1-703-739-0800;

Feb. 24-25, 2011
        Four Seasons Las Vegas, Las Vegas, Nev.
           Contact: 1-703-739-0800;

Mar. 4, 2011
     Bankruptcy Battleground West
        Hyatt Regency Century Plaza, Los Angeles, Calif.
           Contact: 1-703-739-0800;

Mar. 7-9, 2011
     Conrad Duberstein Moot Court Competition
        Duberstein U.S. Courthouse, New York, N.Y.
           Contact: 1-703-739-0800;

Mar. 10, 2011
     Nuts and Bolts - Florida
        Tampa, Fla.
           Contact: 1-703-739-0800;

Mar. 10-12, 2011
     SUCL/ Alexander L. Paskay Seminar on
     Bankruptcy Law and Practice
        Marriott Tampa Waterside, Tampa, Fla.
           Contact: 1-703-739-0800;

Mar. 17-19, 2011
     Byrne Judicial Clerkship Institute
        Pepperdine University School of Law, Malibu, Calif.
           Contact: 1-703-739-0800;

Mar. 31-Apr. 3, 2011
     Annual Spring Meeting
        Gaylord National Resort & Convention Center,
        National Harbor, Md.
           Contact: 1-703-739-0800;

April 27-29, 2011
     TMA Spring Conference
        JW Marriott, Chicago, IL

May 5, 2011
     Nuts and Bolts - New York City
        Association of the Bar of the City of New York,
        New York, N.Y.
           Contact: 1-703-739-0800;

May 6, 2011
     New York City Bankruptcy Conference
        Hilton New York, New York, N.Y.
           Contact: 1-703-739-0800;

June 6, 2011
     Canadian-American Cross-Border Insolvency Symposium
        Fairmont Royal York, Toronto, Ont.
           Contact: 1-703-739-0800;

June 9-12, 2011
     Central States Bankruptcy Workshop
        Grand Traverse Resort and Spa, Traverse City, Mich.

July 21-24, 2011
     Northeast Bankruptcy Conference
        Hyatt Regency Newport, Newport, R.I.
           Contact: 1-703-739-0800;

July 27-30, 2011
     Southeast Bankruptcy Workshop
        The Sanctuary at Kiawah Island, Kiawah Island, S.C.
           Contact: 1-703-739-0800;

Aug. 4-6, 2011
     Mid-Atlantic Bankruptcy Workshop
        Hotel Hershey, Hershey, Pa.
           Contact: 1-703-739-0800;

Oct. 14, 2011
     NCBJ/ABI Educational Program
        Tampa Convention Center, Tampa, Fla.
           Contact: 1-703-739-0800;

Oct. __, 2011
     International Insolvency Symposium
        Dublin, Ireland
           Contact: 1-703-739-0800;

Oct. 25-27, 2011
     Hilton San Diego Bayfront, San Diego, CA

Dec. 1-3, 2011
     23rd Annual Winter Leadership Conference
        La Quinta Resort & Spa, La Quinta, Calif.
           Contact: 1-703-739-0800;

Apr. 19-22, 2012
     Annual Spring Meeting
        Gaylord National Resort & Convention Center,
        National Harbor, Md.
           Contact: 1-703-739-0800;

July 14-17, 2012
     Southeast Bankruptcy Workshop
        The Ritz-Carlton Amelia Island, Amelia Island, Fla.
           Contact: 1-703-739-0800;

Aug. 2-4, 2012
     Mid-Atlantic Bankruptcy Workshop
        Hyatt Regency Chesapeake Bay, Cambridge, Md.
           Contact: 1-703-739-0800;

Nov. 29 - Dec. 2, 2012
     Winter Leadership Conference
        JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
           Contact: 1-703-739-0800;


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

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  Go to 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 * * *