TCREUR_Public/100908.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 8, 2010, Vol. 11, No. 177

                            Headlines



A U S T R I A

GLOUCESTER ENGINEERING: Has Debt Settlement Deal With Creditors


B E L G I U M

TRUVO USA: U.S. Plan Outline Hearing Resumes Today


G E R M A N Y

ADAM OPEL: Troubled Operations Likely to Affect GM IPO
BOWE SYSTEC: Axentum Capital to Take Over European & Japanese Biz


G R E E C E

ATTIKAT SA: Files for Creditor Protection

* GREECE: Faces "Substantial" Default Risk, Fund Manager Says


H U N G A R Y

MALEV ZRT: ILFC to Forbid Use of Airplanes if Fees Not Paid

* HUNGARY: Company Liquidations Up 19.2% in First Eight Months


I R E L A N D

ANGLO IRISH: Bailout Won't Bankrupt Ireland, Lenihan Says


R O M A N I A

* ROMANIA: Real Estate Projects Face Insolvencies


U N I T E D   K I N G D O M

BLIGHT AND SCOBLE: Faces Liquidation; 50 Jobs Affected
BRITISH AIRWAYS: Still Open to Qantas Merger, CEO Says
BRITISH AIRWAYS: Unite Mulls Fresh Industrial Action
CALYX GROUP: In Administration; FRP Advisory Seeks Buyer
RAB CAPITAL: CEO Stephen Couttie Steps Down


X X X X X X X X

* EUROPE: Ailing State Should Not Be Bailed Out, Slovak PM Says




                         *********



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A U S T R I A
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GLOUCESTER ENGINEERING: Has Debt Settlement Deal With Creditors
---------------------------------------------------------------
Chris Smith at European Plastics News reports that creditors of
Gloucester Engineering Europe voted in the Austrian bankruptcy
court on Sept. 1 to accept a settlement proposal put forward by US
parent Gloucester Engineering Co that will pay out 30% of money
owed to them.

Citing Raoul Wagner, bankruptcy trustee for the Vienna-based
Gloucester Engineering Europe business, the report says the parent
company will make a total contribution of around EUR403,000 under
the proposed settlement.

According to the report, the deal, which will become final if no
creditor files an appeal before Sept. 14, will see Type 1
creditors -- those owed money prior to the company filing for
bankruptcy on February 18 of this year -- receive 30% of the
EUR935,000 owed to them (around EUR280,000).  The report says Type
2 creditors -- those holding debts emerging after the bankruptcy
date -- will receive 100% (around EUR68,000 in total).  The parent
company will also cover legal fees amounting to EUR54,000, the
report notes.

Gloucester Engineering Europe GmbH is a subsidiary of Gloucester
Engineering Co. Inc., a blown and cast film machinery maker in
Gloucester, Massachusetts.

GEC manufactures its equipment from its headquarters in
Gloucester, MA, USA and through its joint-venture company in
Damman, India, Kabra Gloucester Engineering.

Gloucester Engineering's Chapter 7 case -- filed on March 23, 2010
-- was converted to Chapter 11 bankruptcy protection on June 25,
2010 (Bankr. D. Mass. Case No. 10-12967).


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B E L G I U M
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TRUVO USA: U.S. Plan Outline Hearing Resumes Today
--------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the U.S. Bankruptcy Court for the Southern District
of New York held a hearing on September 1 to consider approval of
the disclosure statement explaining the Chapter 11 plan for Truvo
Luxemburg Sarl.  Truvo will make changes in the disclosure
statement prior to another hearing on Sept. 8.

The Plan is opposed by the unsecured creditors' committee
comprised of two holders of second-lien debt and their indenture
trustee. The members are AllianceBernstein LP, Normandy Hill
Capital LP, and Bank of New York Mellon-London Branch as indenture
trustee.

Under the Plan, the senior lenders under are to receive the new
equity plus EUR600 million new debt.  In return for the EUR595
million on two issues of second-priority notes, the holders are to
be given EUR15 million and warrants for 14% of the stock at a
EUR150 million price.  If the second lien lenders vote against the
plan, they are to receive nothing.  For the EUR174 million on pay-
in- kind third-priority notes, holders will receive warrants for 1
percent of the stock.  If the class votes against the plan, they
are to receive nothing.  The new debt for the senior lenders is to
consist of EUR350 million in first-lien debt, EUR100 million in
second-lien debt, and EUR150 million in pay-in-kind debt.

A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/TruvoUSA_DS.pdf

                          About Truvo USA

Wilmington, Delaware-based Truvo USA LLC is a non-operating
subsidiary of Belgium-based Truvo Luxembourg S.a.r.l, which
publishes print and online directories through its operating
subsidiaries.

Truvo USA and other non-operating affiliates filed for Chapter 11
bankruptcy protection on July 1, 2010 (Bankr. S.D.N.Y. Lead Case
No. 10-13513). The Company estimated US$500 million to US$1
billion in assets and more than US$1 billion in debts in its
Chapter 11 petition.

Sean A. O'Neal, Esq., and Thomas J. Moloney, Esq., at Cleary
Gottlieb Steen & Hamilton, LLP, and Vincent Edward Lazar, Esq., at
Jenner & Block LLP, assist the Company in its restructuring
effort.  Jenner & Block LLP and Simpson Thacher & Bartlett LLP are
the Company's special counsel.  Houlihan Lokey Howard & Zukin
(Europe), Limited, is the Company's restructuring and financial
advisor.

Truvo Luxembourg and its operating subsidiaries have not sought
protection under Chapter 11 protection or any other insolvency
regime.


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G E R M A N Y
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ADAM OPEL: Troubled Operations Likely to Affect GM IPO
------------------------------------------------------
Vanessa Fuhrmans at The Wall Street Journal reports that General
Motors Co.'s troubled Opel operations in Europe is likely to
prompt concern by investors as the U.S. auto maker plans to go
public.

The Journal says one of the tougher tasks GM faces is making the
case that its Opel operations in Europe can be fixed.

According to the Journal, while the U.S. auto maker has reported
two consecutive quarters of profit since emerging from bankruptcy
last year, its Opel/Vauxhall unit -- the backbone of GM's European
operations -- continues to lose money and remains caught between
high production costs and a brand image badly bruised by nearly
two years of financial uncertainty.

Opel's market share keeps sliding in an already declining European
car market, adding to pressure on GM and Opel's management to show
would-be investors that it has an effective turnaround strategy
for Europe in place, the Journal states.  Car registration figures
released last week show new registrations for Opel in Germany have
fallen 39% through August of this year, the Journal discloses.  As
a result, its German market share has slipped to 7.7% from 9% in
2009, the report notes.  Across Western Europe, Opel's share fell
to 7% through the year's first half, down from 7.4% last year, the
Journal says, citing the ACEA European Automobile Manufacturers'
Association.

According to WSJ, analysts say Opel faces a daunting battle in
returning to sustainable profitability.  Even in the midst of a
broad restructuring that involves shedding 8,000 jobs, all but one
of Opel's 13 plants will stay open and most of its production will
remain concentrated in relatively high-cost Western Europe, the
report states.

The Journal notes that despite plans to move into new markets such
as China and Israel, the auto maker said it would take
considerable time to build a substantial presence outside Europe.
Opel lacks the image or products to command higher prices charged
by rivals such as BMW AG to help boost its profit margins, said
Juergen Pieper, an auto analyst at Bankhaus Metzler in Frankfurt,
according to WSJ.

WSJ relates analysts and dealers say Opel's most pressing problem
is restoring its image, particularly in Germany, where it has been
battered by months of questions over its survival, ownership and
financing for its turnaround.

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

                           *     *     *

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


BOWE SYSTEC: Axentum Capital to Take Over European & Japanese Biz
-----------------------------------------------------------------
The European and non-European business of the insolvent BOWE
SYSTEC AG, in particular its Japanese business, is to continue
under new ownership, the company said in a news release.

On Sept. 2, the Swiss private equity firm Axentum Capital AG came
to an agreement with the auditor Werner Schneider, acting as
insolvency administrator, regarding a takeover of BOWE SYSTEC.
This company incorporates the German and other European activities
of the Augsburg mailroom systems manufacturer as well as its non-
European business (excluding the USA).  Both parties have agreed
not to disclose the purchase price.

"Having the signature at the bottom of the purchase contract and
the notary certification means we have assured the continuation of
essential parts of the insolvent BOWE SYSTEC AG under a new
structure," said Werner Schneider, auditor and insolvency
administrator from the law firm Schneider, Geiwitz & Partner in
Neu-Ulm.  This was made possible thanks to a quick approval from
the relevant banks, which agreed to a release of collateral as a
condition of the quick sale.  Another important condition for the
conclusion of the contract was the willingness of IG-Metall and
the Works Council to come to a restructuring wage agreement which
accommodates the necessary labor-cost requirements of the BOWE
NewCo.  The complete financing of the transaction has been
secured, which means that there are no contractual conditions to
be met in this regard.

"By quickly reaching agreement with a reliable investor, we have
managed to ensure that the company's operations can continue,"
continued Mr. Schneider.  This meant that the maximum number of
jobs could be saved.  Since filing for insolvency in May of this
year, Mr. Schneider has been maintaining the operational business
of BOWE SYSTEC.

There is a works meeting planned for Sept. 1 where the Swiss
investor will present its strategy for BOWE SYSTEC to the
employees in Augsburg.  Production is due to begin again at BOWE
SYSTEC, the leading supplier of complete solutions for processing
large volumes of post, when the works holidays end on Sept. 1,
2010.

Following a thorough legal examination of the transaction, the
buyers do not anticipate any concerns from the cartel office
regarding the acquisition of BOWE SYSTEC.

The existing North American business of BOWE SYSTEC is not
included in the sale package for the time being.  However, Axentum
has been granted an option to acquire the shares of BOWE BELL
HOWELL (BBH), the North American subsidiary of BOWE SYSTEC.

                         About BOWE SYSTEC

BOWE SYSTEC claims to be the European market leader in mailroom
systems.  While the public corporation (AG) affected by the
insolvency employs around 600 people, the group has around 3,300
employees worldwide.  In 2009 the Group generated consolidated
revenues of EUR367.1 million, which was 13.5% down on the previous
year as a result of the recession. Although the new top management
of BOWE SYSTEC AG has introduced dramatic restructuring measures
since early 2009, the company had to file for insolvency by mid-
May because it lacked a sound financing concept.


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G R E E C E
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ATTIKAT SA: Files for Creditor Protection
-----------------------------------------
Tim Farrand at Bloomberg News, citing an Athens bourse filing,
reports that Attikat SA filed for creditor protection as it faces
liquidity problems on delayed payments arising from Greece's
economic crisis.

According to Bloomberg, Attikat said in the filing it will begin
"immediate" discussions with its creditors and present a business
and debt restructuring plan.

Attikat SA is a Greece-based construction company mainly engaged
in the public works sector.  Its principal activity is the
construction of roads, tunnels and bridges, railway, sewage
network, dams and buildings, including housing complexes, sport
facilities and hospitals.


* GREECE: Faces "Substantial" Default Risk, Fund Manager Says
-------------------------------------------------------------
Josiane Kremer at Bloomberg News reports that Pacific Investment
Management Co. fund manager Andrew Bosomworth said Greece still
faces a "substantial" default risk as insolvency prevents the
nation from repaying its debt when its bailout program expires in
three years.

"Greece is insolvent," Bloomberg quoted Mr. Bosomworth, Munich-
based head of portfolio management at Pimco, which oversees the
world's largest bond fund, as saying in a telephone interview on
Monday.  "I see it as being quite a substantial risk that Greece
eventually defaults or restructures."

According to Bloomberg, Mr. Bosomworth said in a best-case
scenario, Greece's government debt will swell to 150% of gross
domestic product.  Mr. Bosomworth, as cited by Bloomberg, said the
European Union-led rescue package assumes the Athens-based
government will tap investors for EUR82 billion (US$106 billion)
during the life of the bailout program, "and that's I think going
to be very difficult."

"Debt servicing as a share of government revenue will increase
substantially, particularly if current yield levels do not
decline," Mr. Bosomworth said, according to Bloomberg.


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H U N G A R Y
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MALEV ZRT: ILFC to Forbid Use of Airplanes if Fees Not Paid
-----------------------------------------------------------
Jan Mainka at The Budapest Times reports that US-based
International Lease Finance Corporation, one of Malev's leasing
partners, threatened to forbid use of some of the airplanes it
owns if outstanding leasing fees were not paid without delay.

According to The Budapest Times, four independent sources told
weekly Figyelo about the ultimatum, and one informant even
revealed that the sum, which if not paid would have kept the Malev
planes on the tarmac, was around HUF3 billion (EUR10.59 million).

Of the two sources of The Budapest Times one suggested the amount
was HUF2 billion and the other HUF2.5 billion, resulting primarily
from several unpaid leasing installments.  Whatever the amount, it
was transferred by the Hungarian state and flight operations
continued unaffected, The Budapest Times notes.

The case highlights the fact that the company's liquidity problems
continue to be severe and its creditors are on edge, The Budapest
Times states.

Malev Zrt. is the flag carrier and principal airline of Hungary.


* HUNGARY: Company Liquidations Up 19.2% in First Eight Months
--------------------------------------------------------------
MTI-Econews reports that information compiled by Opten shows
liquidation procedures were initiated against 11,512 companies in
Hungary during the first eight months of 2010, up 19.2% year on
year.

The report relates Opten Strategic Director Hajnalka Csorbai noted
that liquidation procedures were initiated against more companies
in the first eight months of 2010 than during all of 2008, when a
total of 11,451 companies underwent liquidation.

According to the report, liquidation procedures were initiated
against 857 companies in August of this year, up from 576 in
August of last year.


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I R E L A N D
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ANGLO IRISH: Bailout Won't Bankrupt Ireland, Lenihan Says
---------------------------------------------------------
Finbarr Flynn at Bloomberg News reports that Ireland's Finance
Minister Brian Lenihan said the bailout of Anglo Irish Bank Corp.
won't bankrupt the country and the costs are "manageable."

"I was a bit concerned at the suggestion a lot of public opinion
believe that Anglo Irish will bankrupt the country," the minister
said in an interview with national broadcaster RTE on Monday,
according to Bloomberg.  "That's simply not the case."

Bloomberg relates Mr. Lenihan discussed Anglo Irish with European
Union Antitrust Commissioner Joaquin Almunia in Brussels on
Monday.  The government has injected EUR22.9 billion (US$29.5
billion) into Anglo Irish since the lender's nationalization in
January 2009, and Ireland's borrowing costs have risen in the past
month on concern that the bailout costs will continue to increase,
Bloomberg notes.

James O'Brien at IrishCentral.com reports that a poll in the
Sunday Independent shows that 73% of Irish people believe that the
Anglo-Irish bank crisis will bankrupt the country and bring down
the government.

As reported by the Troubled Company Reporter-Europe on Sept. 6,
2010, Herald.ie said that the European Commission is growing
increasingly concerned about the cost of rescuing Anglo Irish
Bank.  Herald.ie disclosed officials in Brussels now want clear
reassurances that there will be no further escalation in the cost
of keeping the bank afloat if they approve its restructuring plan,
despite claims made by Anglo chief Mike Aynsley.  Mr. Aynsley said
that the price of recapitalizing the nationalized lender can be
contained at that level of the EUR25 billion plan to restructure
the bank's ailing business, according to Herald.ie.  It's
understood that the commission would not object on competition if
the decision was taken to liquidate the bank, Herald.ie noted.

Anglo Irish Bank Corp PLC -- http://www.angloirishbank.com/--
operates in three core areas: business lending, treasury and
private banking.  The Bank's non-retail business is made up of
more than 11,000 commercial depositors spanning commercial
entities, charities, public sector bodies, pension funds, credit
unions and other non-bank financial institutions.  The Company's
retail deposits comprise demand, notice and fixed term deposit
accounts from personal savers with maturities of up to two years.
Non-retail deposits are sourced from commercial entities,
charities, public sector bodies, pension funds, credit unions and
other non-bank financial institutions.  In addition, at September
30, 2008, its non-retail deposits included deposits from Irish
Life Assurance plc.  The Private Bank offers tailored products and
solutions for high net worth clients and operates the Bank's
lending business in Ireland and the United Kingdom.

                           *     *     *

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

On April 7, 2010, the Troubled Company Reporter-Europe reported
that Fitch Ratings affirmed Anglo Irish Bank Corporation's lower
Tier 2 subordinated debt downgraded to 'CCC' from 'BBB+'.  Fitch
affirmed the rating on the bank's Upper Tier 2 subordinated notes
at 'CC'.  It also affirmed the rating on the bank's Tier 1 notes
at 'C'.


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R O M A N I A
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* ROMANIA: Real Estate Projects Face Insolvencies
-------------------------------------------------
Cristi Moga at Ziarul Financiar, citing BUSINESS CONSTRUCT
magazine, reports that real estate mega-projects in Romania are
facing insolvencies.

According to the report, as there are few funds now for real
estate investments, after developers have been under the sign of
insolvency in the past year, the next stage could be that of
bankruptcies.

Colentina is the district with the highest number of frozen
projects in Bucharest, the report notes.

Banks will no longer rush to turn insolvencies into bankruptcies,
but developers also have to find new funding solutions and bring
apartment prices at the level where they can find buyers, the
report states.


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U N I T E D   K I N G D O M
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BLIGHT AND SCOBLE: Faces Liquidation; 50 Jobs Affected
------------------------------------------------------
BBC News reports that Blight and Scoble will go into formal
liquidation at a creditors meeting today, Sept. 8.

According to the report, the company, which employed 50 people,
said its financial problems had been caused by the difficult
trading climate for property developers.

Bishop Fleming Chartered Accountants has been appointed as
liquidator, the report relates.

In a statement the liquidator said: "Due to difficult trading
conditions the company ceased to trade on 26 August 2010 and all
employees were made redundant at that time."

Blight and Scoble was a building firm based in Buckfastleigh.


BRITISH AIRWAYS: Still Open to Qantas Merger, CEO Says
------------------------------------------------------
Wendy Pugh at Bloomberg News, citing the Australian Financial
Review, reports that British Airways Plc Chief Executive Officer
Willie Walsh said he would resume merger talks with Qantas Airways
Ltd. if the Australian company was interested.

Bloomberg relates Mr. Walsh said in an interview with the
newspaper that still there wasn't "any evidence" that Qantas Chief
Executive Officer Alan Joyce wanted to pursue a deal at this
stage.

On Sept. 7, 2010, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported that British Airways Plc said it has
identified about 12 airlines that would be attractive to
International Airlines Group, the company being formed by the U.K.
carrier's merger with Iberia Lineas Aereas de Espana SA.

                       About British Airways

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

                           *     *     *

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


BRITISH AIRWAYS: Unite Mulls Fresh Industrial Action
----------------------------------------------------
Martin Shankleman at BBC News reports that union leaders have
warned that BA faces fresh industrial action unless a negotiated
settlement is reached to end the long-running dispute.

The report relates Brendan Gold, national officer for Unite, said
the union would ballot for action "at the right time" because of
issues that remain unresolved.

BA cabin crew has already staged 22 days of strike action this
year, the report discloses.  Talks between the two sides ended
without agreement last month, the report recounts.  According to
the report, more than 60 members have been suspended and a further
13 sacked.

Unite is calling for the restoration of travel concessions removed
from strikers, and the end of what it claims to be the
victimization of union members, the report says.

The report notes BA said it had concluded disciplinary hearings
into 65 cabin crew -- 49 had returned to work and 16 had been
sacked.

                       About British Airways

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

                           *     *     *

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


CALYX GROUP: In Administration; FRP Advisory Seeks Buyer
--------------------------------------------------------
The Calyx Group and its subsidiaries were placed into
administration on Sept. 3 with the appointment to the UK and
Northern Ireland entities of Joint Administrators Geoff Rowley and
Phil Armstrong, partners at FRP Advisory LLP, the restructuring,
recovery and insolvency firm.

The Irish entities within the Calyx Group have been placed into
receivership, with the appointment of Tom Kavanagh of Irish
insolvency practice, KavanaghFennell.

No redundancies have been made and the group, which supplies
managed ICT services from operations in the UK and Ireland, will
be traded as a going-concern while a buyer of the business and
assets is sought in very short order.

Commenting on the case, Geoff Rowley said: "Though Calyx Group has
an annual turnover of around GBP75 million; it was carrying a debt
on the balance sheet in excess of the annual turnover.  The group
went into administration after it was unable to repay a secured
creditor."

Calyx Group employs more than 500 staff based in the UK, Northern
Ireland and Ireland.  The business has been trading under the
Calyx brand since 2002, following the management buy-out of the
voice, data and training businesses of Alphyra Plc.  Calyx floated
on AIM in 2004, but the group was taken into private ownership
again in 2007.

"The group has a solid reputation and a good customer base,"
continues Mr. Rowley, "as such we're hopeful of finding a trade
buyer.  While we undertake this exercise, the business will
continue to run as normal, with no interruption to customer
service."

Interested parties in the UK business and assets should contact
Alastair Massey, FRP Advisory, on +44 (0)207 467 4279.

Interested parties in the Irish business and assets should contact
Tom Kavanagh, KavanaghFennell on +353 (0)1 206 0800.


RAB CAPITAL: CEO Stephen Couttie Steps Down
-------------------------------------------
Sam Jones at The Financial Times reports that Stephen Couttie has
resigned as chief executive of RAB Capital, raising fresh
questions over the future of the beleaguered hedge fund.

The FT says the move is the latest setback to blight the FTSE-
listed group, which has been struggling to recover from a near-
disastrous collapse in assets as a result of the financial crisis.

According to the FT, Charles Kirwan-Taylor, RAB Capital's chief
investment officer, is to take over Mr. Couttie's role.

The FT relates at its peak in 2007, RAB Capital was one of the
City of London's most successful hedge funds, with more than US$7
billion (GBP4.6 billion) under management and a track record of
stellar annual returns for investors.

Collapsing confidence in markets and a series of ill-timed
investments, including an 8% stake in the doomed Northern Rock,
hit hard and prompted a wave of investor redemptions that saw RAB
Capital's assets shrink to a total of about US$1.2 billion, the FT
discloses.

RAB Capital plc -- http://www.rabcap.com-- is a United Kingdom-
based company. The Company is the parent company of a specialist
investment management group (the Group).  The wholly owned
subsidiaries of the Company are RAB Partners Limited, RAB Capital
(Asia) Limited, 2006 Acquisition Limited, Cross Asset Management
Limited, I2S Limited and Leumas (Jersey) Limited. The principal
activities of its subsidiaries include provision of investment
management and investment advisory services.  In June 2009, the
Company announced that it does not hold any interest in African
Eagle Resources plc.  In July 2009, the Company held 54.37% in RAB
Innovations Fund Limited.


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


* EUROPE: Ailing State Should Not Be Bailed Out, Slovak PM Says
---------------------------------------------------------------
CTK reports that Slovak Prime Minister Iveta Radicova told The
Wall Street Journal on Sept. 2 that overly indebted countries
should be forced into bankruptcy, not bailed out.

According to the report, Ms. Radicova said the so-called stability
fund set up this year in case a European country needs financial
rescue, is likely to cause more problems than it will solve.

The report relates Ms. Radicova, as cited by WSJ, said the EU
needs to overhaul its institutions so it can prevent crises like
the one that enveloped Greece.  She said the euro zone needs to
create "an orderly bankruptcy process" for nations that default on
debts, according to the report.


                             *********

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

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

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

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

                            *********


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

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

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

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

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

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


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