TCREUR_Public/100901.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

         Wednesday, September 1, 2010, Vol. 11, No. 171



HYPO REAL: Fitch Affirms 'CC' Ratings on Hybrid Tier 1 Securities
MAC GEIZ: MTH Acquires 184 Discount Stores in Eastern Germany
TUI AG: Alexei Mordashov Seeks Blocking Minority Stake


HELLENIC SHIPYARDS: May Face Insolvency if Sale Talks Fail


AER ARANN: High Court Wants NI to Recognize Examinership Process
ANGLO IRISH: Green Party Seeks Orderly Wind-Down
BLACKROCK CABS: Meeting to Consider Liquidator Set for Sept. 8
EIRCOM GROUP: Mulls Options to Avert Debt Breach Conditions
MPS GLOBAL: Business Plan a Pyramid Scheme, Affidavit Claims

* IRELAND: Wants Banks Off State Guarantee
* IRELAND: Hotel Sector Struggles as Number of Visitors Dwindles
* IRELAND: Retail Sector Hit Hard by Downturn, RGDATA Says


INTELSAT SA: Says Option Agreements with Managers Amended


* NETHERLANDS: Agricultural Bankruptcies Down in 2nd Qtr. 2010


VOSTOCHNY EXPRESS: Moody's Lifts Long-Term Deposit Ratings to 'B2'


HQ BANK: Liquidator Seeks Buyer for Banking Operation

U N I T E D   K I N G D O M

ENSIGN CRAFT: Put Into Creditors' Voluntary Liquidation
JEFFERSON SHEARD: Bank Freeze Prompted Job Cuts, Ex-Director Says
LEHMAN BROTHERS: Asks for U.S. Stay of UK Pension Proceedings
TRAFALGAR NEW HOMES: Jane Walker Appointed as Administrator



HYPO REAL: Fitch Affirms 'CC' Ratings on Hybrid Tier 1 Securities
Fitch Ratings has affirmed Hypo Real Estate Holding AG's Long-term
Issuer Default Rating and those of its subsidiaries at 'A-' and
Support Ratings at '1'.  The Outlook for the Long-term IDRs is
Stable.  At the same time, the Short-term IDRs were downgraded to
'F1' from 'F1+'.

Fitch has simultaneously affirmed HRE Group's hybrid tier 1
securities at 'CC'.  The Recovery Rating of these notes is 'RR5'.
Also, Fitch has affirmed Deutsche Pfandbriefbank AG's guaranteed
notes at 'F1+', based on the unconditional and irrevocable
guarantee provided by the German Financial Market Stabilization

A full rating breakdown is provided at the end of this commentary.

HRE Holding's and its subsidiaries' ratings are all based on
Fitch's view that there is an extremely high probability of
continued support for the group from its 100% owner, the SoFFin,
which acts on behalf of the Federal Republic of Germany (rated
'AAA'/Outlook Stable).  HRE Holding's Long-term IDR is at the
Support Rating Floor of 'A-'.  The Individual ratings of HRE
Holding and Depfa Bank plc at 'F', reflect the entities' failure
and continued dependence on state support for survival.

The downgrade of the Short-term IDRs reflects the impending run-
off of state liquidity guarantees of EUR40 billion in
December 2010 and EUR62 billion in May 2011.  At 'F1' the Short-
term IDRs correspond to the Long-term IDRs of 'A-'.  The rating
still reflects the strong support from SoFFin for the group which
underlines, in Fitch's view, a strong capacity for timely payment
of financial commitments.  This downgrade does not affect the
rating of outstanding guaranteed notes, which benefit from a
direct, unconditional guarantee from the SoFFin.  These are
affirmed at 'F1+'.

The group is one of the most prominent German bailout cases.
Capital support to date amounts to EUR7.4 billion, on top of the
above-mentioned liquidity support.  In January 2010, the group
applied for a transfer of up to EUR210 billion of non-performing
and distressed assets into a run-off institution as part of its
restructuring plan; these assets predominately stem from Depfa
Bank plc but also from Deutsche Pfandbriefbank AG and other group
entities.  Among others, this asset transfer would reduce the
group's required liquidity support considerably.  The run-off
institution was established in July 2010 (called FMS
Wertmanagement); assets will only be transferred once approval
from the European Commission (EC) has been received.

Deutsche Pfandbriefbank is positioned as the core entity within
the HRE group and continues to conduct new business on a selective
basis; its strategic focus is on real estate and public sector
financing business that is eligible for Pfandbrief refinancing.
Other entities, including Depfa Bank plc and Depfa ACS Bank, do
not conduct material new business and are expected to run-off
their assets as they mature, enhanced through the planned asset
transfer and selective sales.

Due to state aid received (including funding guarantees, capital
support and planned transfer of assets into the run-off
institution), the EC has initiated a formal investigation
procedure, which the HRE group expects to conclude in H210.  As
indicated by other state-aid cases, sanctions beyond the group's
restructuring plan may be imposed.  Theoretically, a wind-down of
the whole group may be suggested by the EC.  If so, Fitch would
expect an orderly wind-down under state ownership.  Once the
group's future is clear, Fitch expects to withdraw HRE Holding's
and Depfa Bank plc's Individual Ratings as they are not expected
to run any material new business under the new setup.

If kept as an operating bank, Fitch expects to assign Deutsche
Pfandbriefbank AG an Individual Rating as soon as its medium-term
funding profile and capitalization become clearer.  The bank's
Long-term IDR is likely to continue to benefit from support as it
is likely to remain under state ownership in the short- to medium-
term, despite a likely requirement for privatization at some

The rating actions of the affected entities are:

Hypo Real Estate Holding AG

  -- Long-term IDR affirmed at 'A-'; Outlook Stable
  -- Short-term IDR downgraded to 'F1' from 'F1+'
  -- Individual Rating affirmed at 'F'
  -- Support Rating affirmed at '1'
  -- Support Rating Floor affirmed at 'A-'

Deutsche Pfandbriefbank AG

  -- Long-term IDR affirmed at 'A-'; Outlook Stable

  -- Short-term IDR downgraded to 'F1' from 'F1+'

  -- Support Rating affirmed at '1'

  -- Support Rating Floor affirmed at 'A-'

  -- SoFFin-guaranteed notes affirmed at 'F1+'

  -- Subordinated notes (lower tier 2) affirmed at 'BBB+'

  -- Hybrid capital instruments affirmed at 'CC'; Recovery Rating

DEPFA Bank plc

  -- Long-term IDR affirmed at 'A-'; Outlook Stable

  -- Short-term IDR downgraded to 'F1' from 'F1+'

  -- Individual Rating affirmed at 'F'

  -- Support Rating affirmed at '1'

  -- Support Rating Floor affirmed at 'A-'

  -- Subordinated notes (lower tier 2) affirmed at 'BBB+'

  -- Hybrid capital instruments affirmed at 'CC'; Recovery Rating


  -- Long-term IDR affirmed at 'A-'; Outlook Stable
  -- Short-term IDR downgraded to 'F1' from 'F1+'
  -- Support Rating affirmed at '1'

Hypo Public Finance Bank puc

  -- Long-term IDR affirmed at 'A-'; Outlook Stable
  -- Short-term IDR downgraded to 'F1' from 'F1+'
  -- Support Rating affirmed at '1'

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

MAC GEIZ: MTH Acquires 184 Discount Stores in Eastern Germany
Property EU reports that Austrian firm Management Trust Holding
has acquired a portfolio of 184 discount stores in eastern Germany
from the insolvent Mac Geiz.  The financial details of the deal
were not disclosed.

The report says the approval of the antitrust authority is
considered secure, with completion of the transaction expected for
mid-September 2010.

According to the report, Mac Geiz, which went into administration
in May this year, said that it expects to be able to reimburse the
creditors as a result of the transaction.

CommerzBank's M&A department advised Mac Geiz on the sale process,
while Lampe Corporate Finance, a subsidiary of Lampe bank, acted
for MTH, the report notes.

Mac Geiz is a German household retail chain.  The company has a
total of 256 stores across the country.

TUI AG: Alexei Mordashov Seeks Blocking Minority Stake
Holger Elfes at Bloomberg News reports that Russian billionaire
Alexei Mordashov told regulators he wants a blocking minority
stake in TUI AG.

Bloomberg relates Mr. Mordashov's S-Group Travel Holding GmbH
investment vehicle filed a plan with Germany's Federal Cartel
Office seeking clearance to raise its holding in Hanover-based TUI
to exceed 25%, from more than 15%.  According to Bloomberg, Kay
Weidner, a spokesman at the Bonn-based regulator, said the office
will decide on the matter by Sept. 27.

Mr. Mordashov and Crawley, England-based TUI Travel Plc, the
German company's tour-package unit, started a Russian joint
venture in 2009 to meet rising demand in the country for foreign
trips, Bloomberg discloses.

TUI AG -- is a Germany-based
company mainly engaged in the tourism sector, focusing on the
markets of Central, Northern and Western Europe.  TUI owns a
network of travel agencies and tour operators, including air
tours, Thomson, First Choice and TUI Deutschland.  It also
operates several airlines, including Corsairfly, Thomsonfly and
First Choice Airways, among others.  The Company is structured
into three segments: TUI Travel, TUI Hotels and Resorts, and
Cruises.  TUI Travel comprises the Company's distribution, tour
operating, airline and incoming activities and services over 30
million customers in 180 countries.  The TUI Hotels and Resorts
division offers a portfolio of 238 hotels, located in Spain,
Greece, Egypt, France, Turkey, Tunisia, the Balearics and the
Caribbean, among others.  The Cruises sector comprises Hapag-Lloyd
Kreuzfahrten GmbH and TUI Cruises which provide luxury cruises,
and cruises within the German-speaking countries, respectively.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Aug. 3,
2010, Standard & Poor's Ratings Services said that it affirmed its
'B-' long-term corporate credit rating on Germany-based tourism
and shipping conglomerate TUI AG and removed it from CreditWatch,
where it was originally placed with negative implications on July
29, 2009.  S&P said the outlook is negative.  At the same time,
the issue ratings of 'CCC+' on the senior unsecured debt, and of
'CCC-' on the junior subordinated debt, were affirmed and removed
from CreditWatch negative.


HELLENIC SHIPYARDS: May Face Insolvency if Sale Talks Fail
Cornelius Rahn at Bloomberg News, citing Boersen-Zeitung, reports
that ThyssenKrupp AG may file for insolvency for its Hellenic
Shipyards submarine-making unit no later than next week if no sale
can be reached with potential buyer Abu Dhabi MAR Group.

Hellenic Shipyards S.A. is a large shipyard in Skaramangas near
Athens, Greece.  The company builds and repairs naval and
commercial ships.  It is a subsidiary of ThyssenKrupp Marine


AER ARANN: High Court Wants NI to Recognize Examinership Process
Aodhan O'Faolain at The Irish Times reports that the High Court is
to send a letter asking its counterpart in Northern Ireland for
recognition of the court protection granted to Aer Arann last

According to The Irish Times, the purpose of the letter is to
ensure that none of Aer Arann's aircraft is seized by anyone owed
money while the airline is in examinership.

The Irish Times relates at the High Court on Monday, Mr. Justice
Peter Charleton agreed to send a letter to the High Court in
Northern Ireland seeking recognition of the examinership process
in this jurisdiction.

The judge was informed that the company was making the request for
judicial assistance amid concerns over Aer Arann's aircraft that
operate flights to and from City of Derry and Belfast airports,
The Irish Times notes.

As reported by the Troubled Company Reporter-Europe on August 30,
2010, The Irish Times said Aer Arann entered interim examinership.
The Irish Times disclosed a High Court sitting on Aug. 26, Ms.
Justice Maureen Clark appointed Michael McAteer of Grant Thornton
as interim examiner to the business.  Fine Gael said the
examinership was necessary to give the airline time to find an
investor and have a future, according to The Irish Times.  The
case will come before the courts for a full hearing on Sept. 8,
when it is expected that the company will enter examinership for a
period of at least 70 days, The Irish Times noted.  In the
interim, the company will operate under the protection of the
courts, The Irish Times said.  The Irish Times disclosed the court
was told that the airline was seeking the protection of the court
because it is currently insolvent and cannot pay its debts.  It is
understood that the decision to petition for examinership was also
prompted by the company's difficulties in servicing its contracts
with aircraft leasing companies, The Irish Times noted.  The court
heard that the airline's creditors include AIB, which is owed
EUR3.9 million, the Revenue Commissioners, the Dublin Airport
Authority, Aer Lingus and the Irish Aviation Authority, The Irish
Times disclosed.

Aer Arann operates 13 aircraft.  It employs 320 people at its
bases in Dublin and Galway, as well as in Shannon, Cork, Waterford
and the Isle of Man.

ANGLO IRISH: Green Party Seeks Orderly Wind-Down
Victoria Thomson at The Scotsman reports that Ireland's government
signaled on Tuesday that gradually winding down Anglo Irish Bank,
Ireland's third-biggest listed bank before it was saved from
collapse by nationalization last year, could be an option.

The report notes until recently, ministers' preference for Anglo
was to split it into "good" and "bad" banks, with managers
proposing the good unit took assets worth EUR10-15 billion (GBP8.2
billion-GBP12.3 billion) while the rest are split between its own
"bad bank" and the state's broader scheme.

The report relates the Green Party said it wanted the bank wound
down slowly.

"What we are not saying is that there can be an immediate shutdown
of Anglo, that is still by far the most expensive option," the
report quoted Green Party chairman Dan Boyle as saying.  "Any
orderly wind-down of a bank will take at least four or five

According to the report, in response, a senior government minister
and the finance ministry both said the good bank-bad bank split
and an orderly wind-down remained options in talks with Brussels.

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'.

BLACKROCK CABS: Meeting to Consider Liquidator Set for Sept. 8
Colm Keena at The Irish Times reports that a meeting of creditors
to consider the appointment of a liquidator has been called by
Blackrock Cabs Ltd., the company associated with the alleged
"pyramid" investment scheme operator Breifne O'Brien.

According to the report, the meeting is to be held in the Harcourt
Hotel, Harcourt Street, Dublin, on Sept. 8.

The report relates farmers Louis and Robert Dowley, Carrick-on-
Suir, Co Tipperary, secured transfer orders against Mr. O'Brien in
November 2009 over his failure to repay the vast bulk of judgment
orders for EUR3 million granted against Mr. O'Brien earlier
arising from their giving him sums to invest.

Mr. Justice Peter Kelly made orders transferring to the sheriff
the shareholdings by Mr. O'Brien in several companies including
Independent News and Media, AIB, Merrion Pharmaceuticals, CRH and
Blackrock Cabs, the report recounts.

The Dowleys are among several investors who secured judgment for
sums totaling some EUR18 million against Mr. O'Brien, over
allegedly operating a "pyramid" investment scheme over some 15
years, misappropriating millions from several investors to fund
his personal lifestyle and business interests, the report notes.

Mr. Justice Kelly referred papers in the case to the Garda Fraud
Squad, the report states.

EIRCOM GROUP: Mulls Options to Avert Debt Breach Conditions
Kate Haywood at Bloomberg News reports that Eircom Group Ltd. said
it's "actively reviewing" options to prevent it breaching
conditions on its debt.

Bloomberg relates the company said in a statement on Tuesday that
generated cash flows of EUR136 million (US$172 million) in the
year ending June 30 and had a cash balance of "almost" EUR400
million.  According to Bloomberg, the statement said still, net
debt remains "very high and in the absence of action by Eircom,
the associated financial covenants may be breached within the
coming 12 to 18 months".

The company, as cited by Bloomberg, said it faces EUR342 million
of debt payments over the next three years, including EUR101
million coming due before June 2011.

Bloomberg notes Chief Financial Officer Peter Cross said on a
conference call he's confident Eircom will be able to avoid a
default, and that the company is considering options including
raising equity from shareholders and renegotiating debt covenants
with lenders.

Headquartered in Dublin, Ireland, Eircom Group -- is an Irish telecommunications company,
and former state-owned incumbent.  It is currently the largest
telecommunications operator in the Republic of Ireland and
operates primarily on the island of Ireland, with a point of
presence in Great Britain.

MPS GLOBAL: Business Plan a Pyramid Scheme, Affidavit Claims
Ian Kehoe at The Sunday Business Post Online reports that High
Court pleadings allege that the business plan of MPS Global was
merely a pyramid scheme.

According to the report, the company took EUR4.4 million from
almost 60 individuals on the pretext of investing in foreign
properties.  However, its liquidator has told the High Court that
some of the company's assets appeared to have vanished, while
others could not be located, the report notes.

The report says evidence has emerged that investor funds were used
to pay interest to earlier investors, and to meet the ongoing
expenses of the company.  Investor funds were also used to service
directors' loans, the report states.

"The fund was used to service what amounted to a classic pyramid
scheme," an affidavit filed by the liquidator of MPS Global, Myles
Kirby, a partner with accountancy firm Martin Ferris & Associates,
said, according to the report.

The report relates the affidavit was lodged to support a court
action taken by the liquidator in relation to Jal Kalsi, the main
architect of MPS business and a former president of the Ennis
Chamber of Commerce in Co Clare.  Mr. Kalsi has been ordered by
the court not to reduce his assets, in Ireland and abroad, below
EUR4.4million, the report recounts.

A full petition will be heard in the coming days, the report

MPS Global was a Clare-based investment and development company.

* IRELAND: Wants Banks Off State Guarantee
John Murray Brown and Jennifer Hughes at The Financial Times
report that Ireland's banking sector will not have to go it
entirely alone when the country's guarantee scheme for bank debt
wears off at the end of next month.

The existing guarantee, which covered all liabilities, has already
been replaced by a more limited scheme that was agreed with the
European Commission in June and runs until the end of December,
the FT discloses.  It covers bank borrowings of between one and
five years, the FT notes.

The FT says for the banks, the guarantee should allow them to
refinance what they need from the EUR25 billion (US$32 billion) of
debt coming due next month.

Ireland's quandary is that, because of the state guarantee, the
financing problems of the commercial banks have a direct impact on
perceptions of the creditworthiness of its sovereign debt, the FT
states.  At the same time, any precipitate withdrawal of the
guarantee could create a fresh liquidity crisis for the banks,
possibly causing the state to have to step in again, according to
the FT.

The FT relates the heads of two of Ireland's biggest banks, AIB
and Anglo Irish Bank, have called for an extension of the
guarantee beyond the end of the year.

Analysts expect all the banks to issue debt before the end of the
year, the FT notes.  The FT says what will be crucial for the
banks is how they meet the redemptions in September.  All are
believed to have liquidity on hand to cover the outflows but the
extent of their ability instead to tap the markets for the cash
will be a gauge of investor sentiment, the FT states.

According to the FT, Brian Lenihan, finance minister, told Irish
radio last week: "We want to see them [the banks] off the
guarantee as soon as possible.  What we're talking about here is
the phasing out of the guarantee over time."

The FT notes Patrick Honohan, governor of the Central Bank of
Ireland, says he is "not in a rush" to remove the guarantee, but
any extension should be on a quarterly basis, rather than for
another year "because if they've done the job properly, that won't
be necessary".

* IRELAND: Hotel Sector Struggles as Number of Visitors Dwindles
Louisa Fahy at Bloomberg News reports that at least 200 hotels
opened during Ireland's decade-long economic boom but now as the
number of visitors dwindles all that's left are empty rooms and a
mountain of debt.

Bloomberg notes that while some establishments cut their losses
and shut, others are lowering prices to stay in business and avoid
repaying tax breaks if they were to close.

According to Bloomberg, the Irish Hotels Federation said Irish
hotel occupancy slumped to about 54% in 2009, the lowest level
since the early 1980s, as the economy fell into its worst
recession on record.

Bloomberg relates the Central Statistics Office said on Aug. 27
that the numbers of trips to Ireland fell 20% in the two years
through June 2010.  Hotels have almost EUR7 billion (US$9 billion)
in bank borrowings, equivalent to about EUR111,000 per bedroom,
Bloomberg says, citing figures from the industry group.

Bloomberg notes Allied Irish Banks PlcManaging Director Colm
Doherty said Aug. 4 60% of hotel loans at the bank are classed as
"criticized," either closely watched or in trouble.

Many hotels that opened as Ireland's economy tripled in size
between 1997 and 2007 were given tax breaks provided they remained
open for at least seven years, Bloomberg discloses.  Such hotels
are slashing prices in a bid to stay open, undermining longer-
established venues, said Joe O'Flynn, owner of the Rathsallagh
Country House Hotel, south of Dublin, according to Bloomberg.

Bloomberg notes hoteliers said that in other cases, banks are
keeping alive hotels to avoid crystallizing losses on loans.

"The big problem that the industry faces at the moment is that
banks are keeping hotels open that would not normally survive,"
Bloomberg quoted Charlie Sheil, manager at Dublin's four-star
Gibson Hotel, as saying.  "They are being propped up by the banks,
which is causing major damage to a lot of the good hotels."

* IRELAND: Retail Sector Hit Hard by Downturn, RGDATA Says
Claire Hartnett at reports that the retail
trade has been hit hard by the downturn in consumer spending with
a massive 124 firms collapsing already this year.

According to the report, Tara Buckley, Director General of RGDATA,
which has been representing Ireland's independent retail grocers
for the past 65 years and is the longest established trade
association in the sector, said the past two years have been
particularly difficult for the sector.

"About 40 of our members closed down over the last two years, some
of which were shops owned by older members in rural areas who
decided to close because their business was too small to be
attractive anymore," the report quoted Ms. Buckley as saying.

The report says a whole host of problems are making life difficult
for Ireland's independent grocers.

According to the report, under terms set down by the Joint Labour
Committee (JLC) in relation to workers in the grocery trade, a
wage higher than the national minimum wage is legally imposed on
retailers.  The wage issue puts even more pressure on independent
retailers who are struggling to survive in the face of stiff
competition and margin pressures, the report says.

The cost of doing business in Ireland has also spiraled, further
eroding retailers' profits, the report notes.

The burden of regulation is also strangling many retailers with
economist Jim Power estimating that the total cost of compliance
for the 4,000 members of RGDATA comes in at EUR26.54 million, the
report discloses.


INTELSAT SA: Says Option Agreements with Managers Amended
Intelsat S.A. said the Option Agreements between Intelsat Global
S.A. and David McGlade, Phillip Spector and Michael McDonnell
dated May 6, 2009 and the Option Agreements between the Company
and Steven Spengler, Thierry Guillemin and certain management
employees dated May 8, 2009 were amended effective Aug. 5, 2010.

The Option Agreements previously provided that if certain
specified shareholders sell all their shares in the Company, a
certain portion of the shares subject to each option will be
eligible to vest if the total cash proceeds received by such
shareholders is equal to at least 4.1 times their initial
investment.  Each Amendment provides that if the certain specified
shareholders sell all their shares in the Company and do not
achieve at least 4.1 times their initial investment, a portion of
the Performance Exit Options will be eligible to vest if the total
cash proceeds received by such shareholders is greater than 3.3
times their initial investment and greater than the investment
return achieved on an earlier measurement date.

                      Unallocated Bonus Plan

On Aug. 20, 2010, the Company implemented a new Unallocated Bonus
Plan and, in connection with the Bonus Plan, entered into letter
agreements with Mr. McGlade, Mr. Spector and Mr. McDonnell
providing that the Bonus Plan may not be amended in any manner
that would adversely affect the rights of Mr. McGlade, Mr. Spector
or Mr. McDonnell without his prior consent.

Pursuant to the Intelsat Global, Ltd. 2008 Share Incentive Plan,
approximately 10% of the shares of the Company may be awarded to
management as options and restricted shares.  The Bonus Plan
provides for the distribution of the value of any unallocated
shares that remain of the Pool, and that otherwise would have
been vested, on certain measurement dates to the Equity Plan
participants who remain employed by the Company at that time.

Each such participant will be eligible to receive a pro-rata share
of the value of the unallocated Pool, based on the percentage of
allocated shares held by such participant and the length of time
elapsed since such participant was granted the underlying award.
The bonus will be payable in the form of cash or shares of the
Company, as set forth in the Bonus Plan.  If the Equity Plan
participants do not become eligible to receive a bonus on or prior
to Feb. 4, 2015, the Bonus Plan expires and no bonuses will be
payable under the Bonus Plan.

A full-text copy of the Amendment To Option Agreement is available
for free at

A full-text copy of the Unallocated Bonus Plan is available for
free at

A full-text copy of the Form Of Letter Of Agreement is available
for free at

                       About Intelsat S.A.

Based in Luxembourg, Intelsat S.A. provides fixed satellite
services worldwide.

The Company's balance sheet at June 30, 2010, showed
US$17.34 billion in total assets, US$814.64 million in total
current liabilities, US$15.22 billion in long term debt, US$128.77
million in deferred revenue, US$254.63 million in deferred
satellite perfomance, US$548.71 million in deferred income taxes,
US$239.87 million in accrued retirement benefits, a US$335.15
million redeemable non-controlling interest, US$8.88 million
commitment and contingencies, and a stockholders' deficit of
US$210.76 million.


* NETHERLANDS: Agricultural Bankruptcies Down in 2nd Qtr. 2010
Rudy Ruitenberg at Bloomberg News reports that the number of Dutch
agricultural bankruptcies dropped in the three months through
June, the second quarterly decline after having jumped to the
highest level in five years in the last three months of 2009.

According to Bloomberg, the government statistics office said in a
report on its Web site on Monday that farm bankruptcies in the
Netherlands fell to 27 in the second quarter, down from 40 in the
previous three months and compared with 46 in the last quarter of

Bloomberg notes the statistics office said that within
agriculture, horticultural operations accounted for the majority
of bankruptcies, with 19 growers of vegetables, flowers or
mushrooms going bust, compared with 14 a year earlier.

Bloomberg relates the agency said that in the first half,
agricultural bankruptcies totaled 67, the third-highest since


VOSTOCHNY EXPRESS: Moody's Lifts Long-Term Deposit Ratings to 'B2'
Moody's Investors Service has upgraded the long-term foreign and
local currency deposit ratings of Vostochny Express Bank to B2
from B3.  Consequently, Moody's Interfax has upgraded the bank's
National Scale Rating to from  At the same time,
Moody's has affirmed these global scale ratings at the current
levels: Not-Prime short-term foreign and local currency deposit
ratings, and E+ bank financial strength rating (mapping to a
Baseline Credit Assessment of B2).  The outlook for all long-term
ratings is stable.  Moscow-based Moody's Interfax is majority
owned by Moody's, a leading global rating agency.

                        Ratings Rationale

According to Moody's, the rating action reflects material
improvements to VE's franchise since February 2007 when the
ratings were assigned, as well as VE's track record of
satisfactory financial performance.  The rating action also
reflects the bank's proven resilience to a global crisis without
experiencing any reduction in business activity, or impairing its

Moody's notes that since year-end 2007 VE has substantially grown
its balance sheet, ranking among the top 50 banks in Russia in
terms of total assets as at 30 June 2010.  As a result of VE's
regional expansion through organic and M&A growth in 2009, its
loan portfolio increased by 66% to RUB37.6 billion (US$1.2
billion), according to audited IFRS financial statements, and the
rating agency expects the bank to further improve its regional
presence and further increase distribution capacities.

Moody's observes that despite VE's focus on the high-risk segments
of consumer lending, the share of non-performing loans (NPLs --
defined as loans overdue for at least 90 days) remains adequate
for consumer lending business, and reported NPLs at 7.6% of gross
loans at YE2009 under IFRS.

VE's capitalization is adequate-, with a Tier 1 ratio of 17.7 % at
December 31, 2009, and largely sufficient to absorb expected
credit losses under Moody's base-case scenario.  VE's liquidity
position has been supported by growing retail deposits -- VE's
deposit base doubled in 2009, compared to a system-average growth
of 20%.  Moody's also says that VE demonstrated reasonable
financial performance in 2009 as the bank was able to generate a
stable flow of interest and commission income sufficient to cover
an increased level of provisioning which, in Moody's opinion,
should stabilize in 2010, reflecting Moody's expectations that the
level of problem loans is not expected to materially grow until
the end of the year.  With the stabilizing operating environment
in Russia, Moody's believes VE's asset quality to gradually
improve.  Most of the current problem loans are currently covered
by loan-loss provisions which accounted for 90% of problem loans
at year-end 2009, according to IFRS.

At the same time, Moody's notes that VE has a high appetite for
credit risk, reflected by the bank's aggressive growth strategy in
recent years in its home region and outside of its boundaries, and
by its emphasis on the riskiest segment of the retail loan market
-- unsecured consumer lending.  Moody's also notes that its new
pursuit of M&A growth could be a source of additional credit and
operational risk.

Moody's previous rating action on VE was on September 23, 2008,
when the rating agency changed the outlook on the long-term
deposit ratings to stable from positive.

Headquartered in Khabarovsk, Russia, VE reported -- at
December 31, 2009 -- total consolidated assets of RUB52.4 billion
(US$1.7 billion) and total shareholders' equity of RUB7.6 billion
(US$252 million) Under IFRS.  VE's net income for 2009 was RUB80
million (US$2.6 million).

                      Regulatory Disclosures

Information sources used to prepare the credit rating are these:
parties involved in the ratings, parties not involved in the
ratings, public information.

Moody's Investors Service considers the quality of information
available on the issuer or obligation satisfactory for the
purposes of maintaining a credit rating.

Moody's Investors Service may have provided Ancillary or Other
Permissible Service(s) to the rated entity or its related third
parties within the three years preceding the Credit Rating Action.

Moody's Investors Service adopts all necessary measures so that
the information it uses in assigning a credit rating is of
sufficient quality and from reliable sources; however, Moody's
Investors Service does not and cannot in every instance
independently verify, audit or validate information received in
the rating process.


HQ BANK: Liquidator Seeks Buyer for Banking Operation
Janina Pfalzer at Bloomberg News reports that Bjoern Riese, who
was appointed as liquidator of HQ Bank by a Swedish court on
Monday, said HQ's banking operation may be sold after its license
was revoked.

"The main objective is to find a buyer who will continue to
operate HQ Bank's business," Mr. Riese, partner at law firm
Mannheimer Swartling Advokatbyraa AB, told reporters on Monday at
HQ Bank's office in Stockholm, according to Bloomberg.

Bloomberg notes spokesman Andreas Koch said in an interview that
Carnegie Investment Bank AB may be interested in buying the bank's
assets, after failing to reach agreement in talks with HQ over the
weekend.  Mr. Koch, as cited by Bloomberg, said further interest
"cannot be ruled out".

Bloomberg relates HQ Bank was closed on Monday to give Mr. Riese
time to assess the situation, after the liquidation request
submitted by the regulator to Stockholm District Court made him
acting chief executive officer and chairman of the bank.

As reported by the Troubled Company Reporter-Europe on Aug. 31,
2010, Bloomberg News said Sweden's Financial Supervisory Authority
on Aug. 28 revoked HQ Bank's license to operate and applied for
its liquidation, saying the company broke regulations.  "HQ Bank
has demonstrated serious deficiencies in its trading operations,"
Bloomberg quoted the FSA as saying in a statement on its Web site
Saturday.  "HQ Bank has overvalued its trading portfolio for a
long time" and reported its financial position inaccurately.

HQ Bank is an investment bank based in Sweden.  It is owned owned
by securities broker HQ AB.

U N I T E D   K I N G D O M

ENSIGN CRAFT: Put Into Creditors' Voluntary Liquidation
Lorraine Price at Daily Gazette reports that Ensign Craft, the
company behind the Harwich Powerboat Festival, has called in

According to the report, Ensign Craft was formed to organize the
European powerboat racing competition and a series of other events
in July.  But it is understood disappointing ticket sales for
concerts staged in Cliff Park on the Friday and Saturday nights
left the company unable to pay bills, and forced directors Barbara
and Chris Spraggons to pull the plug, the report notes.

The board has resolved to place the company into a creditors'
voluntary liquidation and has instructed Bridge Business Recovery,
the report says, citing a letter from Mrs. Spraggons to one of
Ensign Craft's creditors.

JEFFERSON SHEARD: Bank Freeze Prompted Job Cuts, Ex-Director Says
David Rogers at reports that Tom Jones, the man in
charge of Jefferson Sheard Architects (UK) Limited when it plunged
into administration earlier this month, said he was forced to take
the action because its bank refused to lend it any more money.

The report relates the company, which axed 45 jobs on July 12,
appointed insolvency expert P&A Partnership on August 11 after its
bank, the Co-op, froze its account and cut its overdraft limit by

According to the report, Mr. Jones said the firm had been caught
out by last year's Learning & Skills Council debacle -- which saw
a host of planned college projects dumped when it ran out of money
-- and the government's decision to scrap the BSF program.

"We approached the bank in spring but we were asked to provide a
huge security that was beyond the limit of what the directors were
able to provide," the report quoted Mr. Jones as saying.  "The BSF
decision took away our confidence in the future and as a
consequence the directors weren't able to agree to the onerous
conditions for refinancing.  The bank froze our account and we
literally could not pay our staff."

The report notes administrator Christopher White said employees
made redundant would only be able to "claim some of their
entitlements up to certain statutory limits" via the government's
Redundancy Payments Service.

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

LEHMAN BROTHERS: Asks for U.S. Stay of UK Pension Proceedings
Lehman Brothers Holdings Inc. asks the U.S. Bankruptcy Court for
the Southern District of New York to enforce the automatic stay
as to certain administrative proceedings, which are not carved
out by Section 362(b)(4) of the Bankruptcy Code, and enjoin the
United Kingdom Pensions Regulator, the trustees of the Lehman
Brothers Pension Scheme, and the Board of the Pension Protection
Fund -- the Claimants -- from attempting to liquidate or enforce
remedies on their prepetition claims in violation of the
automatic stay.

The Claimants filed proofs of claim against LBHI as contingent
and unliquidated claims in undetermined amounts arising from a
guarantee, dated June 27, 2008, made by LBHI in favor of the
Trustees, as to obligations by Lehman Brothers Limited and any
other participating employer of the Pension Scheme.  TPR
commenced proceedings in a United Kingdom court against LBHI and
certain debtors based on a purported funding shortfall in the
Pension Scheme.

TPR's and the Claimants' violations of the automatic stay should
not be countenanced, and its actions should be deemed void ab
initio, Shai Y. Waisman, Esq., at Weil, Gotshal & Manges LLP, in
New York, argues.  TPR and the Claimants should also be subject
to sanctions if they participate in the UK Pension Proceedings in
any manner that affects LBHI's assets, estates, or the
administration of its Chapter 11 case, he adds.

Mr. Waisman explains that LBHI's estate is comprised of property
of the estate "wherever located and by whomever held" under
Section 541(a) of the Bankruptcy Code and, thus, is within the
exclusive jurisdiction of the U.S. Bankruptcy Court.  The UK
Pension Proceedings affect the assets of LBHI's estate, he says.
He points out that the decision of the United States Bankruptcy
Court for the District of Delaware in In re Nortel Networks
Corp., 426 B.R. 84 (Bankr. D. Del. 2010), provided TPR with
notice that it was required to request relief from the automatic
stay in order to commence the UK Pension Proceedings against any
U.S. debtor, and the Nortel decision provided the Claimants with
notice that they would violating the automatic stay by
participating in the UK Pension Proceedings.  Further, the Nortel
decision provided notice that the UK Pension Proceedings are not
subject to the exception to the automatic stay in Section
362(b)(4).  Nevertheless, rather than seeking relief from the
automatic stay, TPR commenced the UK Pension Proceedings by
issuing a warning notice to LBHI and certain of its non-Debtor
affiliates, he says.

In order to protect its rights, assets, estate, and creditors,
LBHI has participated in the UK Pension Proceedings to date.  On
August 9, 2010, LBHI submitted written representations to a panel
appointed by TPR.  Other parties, including the Trustees, and a
U.S. attorney for the Claimants, despite notice from Nortel that
doing so would violate the automatic stay, have also submitted
written representations and a witness statement to the
Determinations Panel.  "Skeleton arguments" are due from each
side on August 31, 2010, and an oral hearing before the
Determinations Panel has been scheduled for September 8-9, 2010.

The Bankruptcy Court will convene a hearing on the Debtors'
request on September 1, 2010.  Objections are due August 30.

                        About Lehman Brothers

Lehman Brothers Holdings Inc. -- 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

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.
( 215/945-7000)

TRAFALGAR NEW HOMES: Jane Walker Appointed as Administrator
Jane Walker of Errington Walker Limited was appointed as
administrator to Trafalgar New Homes PLC on August 26, 2010,
pursuant to a filing at court.

As announced on July 12, 2010, certain events have led to the
worsening of the Company's financial position, which led the
company to seek insolvency advice.  Dealings in the company's
ordinary shares were suspended on July 7, 2010.

Further announcements will be made as and when appropriate.

Trafalgar New Homes Plc is a United Kingdom-based company.  The
company is engaged in property development.


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.

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