TCREUR_Public/100910.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

          Friday, September 10, 2010, Vol. 11, No. 179

                            Headlines



A U S T R I A

GLOUCESTER ENGINEERING: Swiss Winding to Raise Offer for Assets


B E L G I U M

TELENET NV: Fitch Affirms Long-Term IDR at 'BB'


C Z E C H   R E P U B L I C

ODEVNI PODNIK: Posts CZK92.1 Million Loss in May-July 2010
MORITZ ZDEKAUER: 13.5% Bearer Shares Up for Sale on Sept. 17


G E R M A N Y

PROCREDIT HOLDING: Fitch Affirms Tier 1 TruPS at Long-Term 'BB-'


H U N G A R Y

MKB BANK: Fitch Maintains Watch Negative on Support Rating


I R E L A N D

AER ARANN: 14 Groups Eye Investment; Sept. 20 Bid Deadline Set
ANGLO IRISH: To Be Split Into Two, Finance Ministry Says
ANGLO IRISH: Makes Further EUR700MM Provision for Quinn Losses
BANK OF IRELAND: May Opt Out of State Guarantee for EUR50BB Debt
BLACKROCK CABS: Liquidator Appointed; Creditors May Get Nothing

MCINERNEY HOMES: Banks Appoint Receiver to McInerney Services

* IRELAND: Extends Guarantee for Short-Term Bank Liabilities


U N I T E D   K I N G D O M

CONNAUGHT PLC: Retail Investors May Get Nothing Following Demise
DECO SERIES 2005: Fitch Affirms EUR5.7MM Class H Notes at 'CCCsf'
ILKESTON TOWN: High Court Orders Liquidation Over Unpaid Tax Debt
JKRS: In Administration; RSM Tenon Recovery Seeks Buyer
KICKWORLDWIDE: Bought Out of Administration by Founders

LOCAL BILLING: Wound Up Following Insolvency Service Probe
SHEFFIELD WEDNESDAY: Seeks Investors for Long-Term Survival

* Fitch Takes Various Rating Actions on Lehman Currency Swap Deals


X X X X X X X X

* BOOK REVIEW: Competition in the Health Care Sector




                         *********



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


GLOUCESTER ENGINEERING: Swiss Winding to Raise Offer for Assets
---------------------------------------------------------------
European Plastics News reports that Swiss Winding Invention, which
had previously offered EUR530,000 (US$673,700) for the business
assets of Gloucester Engineering Europe, said it is prepared to
double that figure and hopes to block court approval of the
settlement proposal put forward by the Austrian company's U.S.
parent.

As reported by the Troubled Company Reporter-Europe on Sept. 8,
2010, European Plastics News said 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, the Austrian bankruptcy trustee
handling Gloucester Engineering Europe, European Plastic News
disclosed the parent company will make a total contribution of
around EUR403,000 under the proposed settlement.  European Plastic
News noted 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).  Type 2 creditors -- those holding debts emerging
after the bankruptcy date -- will receive 100% (around EUR68,000
in total), according to European Plastic News.

European Plastics News relates Swiss Winding Invention Chairman
Carlos Martinez, who founded the high performance film winding
machinery manufacturer Wintech Winding Technology in the 1990s,
said Sept. 7 that he had raised his bid for the business assets to
EUR1 million (US$1.27 million), and that he was working with a
Gloucester Engineering Europe creditor to file an appeal against
the settlement proposal before the Sept. 14 deadline.

Gloucester Engineering Co. Chairman John Sharood pointed out the
company would not give up on its claim to the intellectual
property, European Plastics News note.

One of the key factors in the creditors' acceptance of the
settlement proposal was that it avoided potential legal argument
over ownership of Gloucester Engineering Europe's intellectual
property and customer lists -- its major assets, European Plastics
News states.

According to European Plastics News, while Rapperswill,
Switzerland-based Swiss Winding Invention's earlier offer
presented a higher return to creditors -- EUR530,000 against
Gloucester Engineering Co.'s EUR360,000 (US$457,600) -- the
trustee could not release the funds until any legal challenge had
been resolved.

Raoul Wagner, the Austrian bankruptcy trustee handling Gloucester
Engineering Europe, told European Plastics News that a raised
offer on the part of Swiss Winding Investment would be more
attractive to creditors, but they would still have to weigh up
whether some money now against the possibility of more money
later.

Gloucester Engineering Europe GmbH is the Vienna-based 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
=============


TELENET NV: Fitch Affirms Long-Term IDR at 'BB'
-----------------------------------------------
Fitch Ratings has affirmed Telenet N.V.'s (Telenet; formerly
Telenet Bidco N.V.) ratings at Long-term Issuer Default 'BB' with
Stable Outlook and at Short-term IDR 'B'.

Fitch has also affirmed Telenet's senior secured bank facility at
'BB+.'

The affirmation reflects Telenet's diversified subscription-based
revenues, its consistently strong operating performance, business
position and financial profile.  The ratings are constrained by
the company's somewhat limited scale but, more importantly, a
financial policy that is influenced by majority shareholder,
Liberty Group International (LGI), which is likely to keep
leverage at speculative-grade levels.

In Fitch's view, Telenet is one of the most effectively managed
cable operators in Europe.  Despite its relatively small scale the
consistency with which management delivers performance targets,
generates free cash flow (FCF) and deleverages the balance sheet,
underlines Fitch's view that were the company (and controlling
shareholder, LGI) to choose a more conservative capital structure,
it could ultimately be upgraded to low investment-grade territory.

While cash flow generation is expected to underpin Telenet's
ability to deleverage on a consistent basis, dividend policy is,
in Fitch's view, likely to result in leverage spikes that keep the
capital structure in speculative-grade territory.  Event risk
associated with M&A as well as the potential for investment in
upcoming mobile spectrum auctions in Belgium, adds further
potential for re-leveraging.

The company continues to up-sell triple-play services, with dual
or triple play customers now representing 55% of the customer
base.  The churn rate of TV customers is under good control, which
Fitch believes is likely to improve as triple play becomes more
pervasive across the customer base.  The company is generating a
well-diversified revenue mix -- including a 27% contribution from
TV and a further 33% from broadband (for 6M10).  Premium or
digital TV now accounts for 11% of total revenues, up from 9% a
year ago.

Cable operators have proven more resilient to the economic
downturn than incumbent telecoms companies in Europe.  This has
proven to be the case in Belgium where the incumbent saw
residential revenues fall 1.1% in H110 while over the same period
Telenet grew at a rate of 10.6%.  While Telenet is effectively the
incumbent in the provision of TV and can therefore only expect to
lose market share to its competitor Belgacom in the TV market, its
success in winning broadband and telephony is more than offsetting
its loss of TV access.

A targeted cap on senior leverage of 4x ensures the business is
unlikely to be leveraged (under normal circumstances) much above
4.5x given that finance leases add about 0.5x of leverage to the
total net debt metric.  Funds from operations (FFO) net adjusted
leverage stood at 3.5x at end-June 2010 (on an LTM basis)
comfortably inside the 4x median identified at the 'BB' rating
level, under Fitch's sector credit factor methodology for the
incumbent telecom and cable sector.  Other financial metrics and
qualitative factors are strong for the rating level.

Telenet's liquidity and its debt profile are supportive of the
current ratings.  The company had almost EUR400 million of cash on
balance sheet at end-H110 and a further EUR175 million of
available under its revolving credit facility, which matures in
2014.  An exchange offer in respect of the secured bank facility,
currently in process, is expected to push the majority of
refinancing risk out to 2017, with the first sizeable maturity of
EUR158 million of bank debt falling due in 2014.


===========================
C Z E C H   R E P U B L I C
===========================


ODEVNI PODNIK: Posts CZK92.1 Million Loss in May-July 2010
----------------------------------------------------------
Odevni podnik Prostejov posted a loss of CZK92.1 million in
May-July, CTK reports, citing information from the insolvency
administrator published in the insolvency register.

The report says OP's net turnover reached CZK103.9 million in
May-July.

According to the report, between January and May, when OP was
declared bankrupt, its loss was CZK211.2 million.  In total, OP's
loss amounts to CZK303.3 million in January-July, the report
notes.

As reported by the Troubled Company Reporter-Europe on July 26,
2010, creditors, whom OP owes around CZK1.6 billion, will decide
on the next steps in the bankruptcy case today, Sept. 10.

Odevni podnik is a clothing manufacturer based in the Czech
Republic.


MORITZ ZDEKAUER: 13.5% Bearer Shares Up for Sale on Sept. 17
------------------------------------------------------------
CTK, citing Jan Mach of Finance Zlin, reports that a package of
13.5% of bearer shares at Czech porcelain maker Starorolsky
porcelan Moritz Zdekauer will be sold at an auction in Uherske
Hradiste, southern Moravia, on Sept. 17.

According to the report, the stake, appraised by an expert at
CZK5.55 million, is sold by Moritz Zdekauer, in liquidation, whose
100% owner is Starorolsky porcelan.


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


PROCREDIT HOLDING: Fitch Affirms Tier 1 TruPS at Long-Term 'BB-'
----------------------------------------------------------------
Fitch Ratings has affirmed ProCredit Holding AG's (PCH Group)
ratings at Long-term Issuer Default 'BBB-', Short-term IDR 'F3',
Individual 'D' and Support '2'.  The Outlook is Stable.  At the
same time, Fitch has affirmed PCH's tier 1, perpetual, non-
cumulative, non-voting trust preferred securities at Long-term
'BB-'.

The IDRs and Support Rating of PCH Group reflect the support it
could expect to receive from its owners, and in particular from a
group of international financial institutions (IFIs) which are key
voting shareholders, due to the group's specialized developmental
focus.  The group's Individual Rating reflects declining
profitability, heightened credit risks and the challenging
operating environment in several of the group's countries of
operation.  However, it also reflects asset quality ratios which
are often better than the average in each country, improvements in
liquidity management, low refinancing risk and improving capital
ratios in recent years.

The group reported declining profitability indicators for H110 and
2009, although it expects a small operating profit in 2010.
Administrative expenses are budgeted to fall.  The group's key
challenges remain managing heightened credit risks, whereby the
group incurs high loan impairment charges (LICs; 100% of pre-
impairment profit in H110), and a slow growth environment, which
puts pressure on revenue.  The group's net interest margin,
although still wide due to the group's focus on small business
financing, is tightening, given the declining share of higher-
yielding micro loans of the group's loan book.  However, it may
benefit from further declines in the cost of customer funding in
several of the group's key operating markets.

Loans past due by 30 days, the group's measure for non-performing
loans (NPLs) -- which in Fitch's view is fairly conservative --
increased to 3.7% of gross loans at end-H110 from 1.7% in at end-
2008.  Despite a decline from higher historical levels, coverage
of NPLs remains adequate, particularly in view of the group's
tightened loan underwriting criteria.  The group has increased its
use of loan restructurings as a risk management tool.
Restructured loans, the performance of which remains to be tested,
accounted for an additional 3.1% of end-H110 gross loans.

Liquidity management across the group has strengthened, with the
Frankfurt-based holding company, PCH, increasingly able to provide
intra-group liquidity support, if needed.  Funding for the group
is sourced locally at the individual bank level from customer
deposits (end-H110: 70% of total funding was retail), with the
remainder primarily provided by IFIs and "socially responsible"
investors.

Frankfurt-based PCH was set up as an equity investment company in
1998 to invest in the global network of PCH Group banks.  These
banks were established by private and public investors to provide
financing for micro and small business customers.  As of end-H110,
the group had total assets of EUR5.2bn and consisted of 21
subsidiaries, primarily banks, in central and eastern Europe (11),
Latin America (seven) and Africa (three).


=============
H U N G A R Y
=============


MKB BANK: Fitch Maintains Watch Negative on Support Rating
----------------------------------------------------------
Fitch Ratings is maintaining Hungary-based MKB Bank Zrt's (MKB)
Support Rating of '2' on Rating Watch Negative.

The rating action follows a periodic review of the RWN that the
agency placed on the Support Rating on December 23, 2009.

The rating is currently driven by potential support for MKB from
its 89.79% parent Bayerische Landesbank (BayernLB, 'A+'/RWN).  As
MKB's parent has yet to obtain the European Commission's (EC)
decision in respect of its restructuring plan the RWN cannot yet
be resolved.  The agency will resolve the RWN once the EC's
decision is announced and there is greater clarity in respect to
BayernLB's plans for MKB.


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


AER ARANN: 14 Groups Eye Investment; Sept. 20 Bid Deadline Set
--------------------------------------------------------------
Ciaran Hancock and Ray Managh at The Irish Times report that the
High Court has been informed that 14 groups have expressed an
interest in investing in Aer Arann and the examiner hopes to have
secured a deal for the airline by Oct. 10.

The Irish Times relates in a report submitted to the court,
Michael McAteer of Grant Thornton, who was confirmed as examiner
of the airline on Wednesday by Ms. Justice Finlay Geoghegan,
states that indicative offers must be lodged on Sept. 20 while
final offers will have to be presented on Oct. 6.

According to The Irish Times, the examiner said he wants to run
the investment process over a "tight timeframe" in light of "cash
constraints within the business".

A scheme of arrangement would then be put to creditors, with a
meeting of creditors pencilled in for Oct. 15, The Irish Times
notes.

Any agreement would be subject to the High Court's approval, The
Irish Times states.

The Irish Times relates Judge Finlay Geoghegan confirmed
Mr. McAteer as examiner after considering reports to the effect
that the company had a reasonable prospect of survival if certain
measures were taken.

According to The Irish Times, Rossa Fanning, counsel for the
examiner, said Mr. McAteer had to report again to the court within
35 days and this would bring the matter up to within four days of
the new law term.  He was granted an extension until Oct. 11 to
present the examiner's next report, The Irish Times says.

As reported by the Troubled Company Reporter-Europe on Aug. 30,
2010, The Irish Times said Aer Arann entered interim examinership.
The Irish Times disclosed the High Court was told on Aug. 26 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, according to The Irish Times.  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: To Be Split Into Two, Finance Ministry Says
--------------------------------------------------------
Joe Brennan and Louisa Fahy at Bloomberg News report that
Ireland's Finance Ministry on Tuesday said Anglo Irish Bank will
be split into a "Funding Bank" and an "Asset Recovery Bank".

"It is intended that in due course the Recovery Bank will be sold
in whole or in part or that its assets will be run off over a
period of time," the Finance Ministry said, according to
Bloomberg.

Bloomberg relates the finance ministry said the central bank will
determine by October how much capital will be needed by the two
Anglo Irish institutions it creates from the split.

According to Bloomberg, Anglo Irish Chief Executive Officer Mike
Aynsley said in an interview earlier Tuesday that clarity from the
government on the future of the bank may help stem a decline in
deposits.  Customer deposits fell by about EUR4 billion to EUR23.1
billion in the first half of the year, Bloomberg discloses.

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'.


ANGLO IRISH: Makes Further EUR700MM Provision for Quinn Losses
--------------------------------------------------------------
Simon Carswell at The Irish Times reports that Anglo Irish Bank
has set aside a further EUR700 million for potential losses on
borrowings to Sean Quinn, bringing to EUR1.7 billion the potential
loss the bank expects to incur on loans of EUR2.8 billion owed by
the businessman and his family.

The report says the increase on the expected loss on the loans to
the Quinn family -- Anglo's biggest borrower -- was taken in its
accounts published last week covering the first six months of the
year but was not disclosed by the nationalized bank.  The
so-called bad loan provision of EUR700 million was included in the
record six-month loss of EUR8.2 billion reported by Anglo,
according to the report.

The uncertainty over the future of Quinn Insurance, the most
profitable part of Mr. Quinn's business, has forced Anglo to lower
its expectation on how much of the loans it is likely to recover,
the report notes.

It's understood that Anglo may be forced to set aside a further
EUR500 million, though this may be the extent of the write-off as
the bank has security worth about EUR600 million over the family's
extensive international property interests, the report states.

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'.


BANK OF IRELAND: May Opt Out of State Guarantee for EUR50BB Debt
----------------------------------------------------------------
Laura Noonan at Irish Independent reports that Bank of Ireland is
considering migrating some of its EUR50 billion short-term
corporate deposits out of the state guarantee scheme at the end of
the month, even though the support has been extended until
Dec. 30.

The report relates the bank's deliberations come amid concerns
about the cost of the extended guarantee, with brokers NCB on
Wednesday warning that the premium demanded "has the potential to
materially erode earnings for Irish banks".

According to the report, BoI chief executive Richie Boucher
recently committed his bank to "disengaging" from bank guarantees,
and market sources on Wednesday night said that the bank was
"likely" not to make full use of this week's extension.

The report notes sources close to the bank confirmed that it was
exploring the potential of not bringing its entire EUR50 billion
corporate debt pile into the guarantee in a bid to minimize cost.
The most likely option is to offer more attractive interest rates
on unguaranteed deposits, the report says.

Headquartered in Dublin, Bank of Ireland --
http://www.bankofireland.com/-- provides a range of banking and
other financial services.  These include checking and deposit
services, overdrafts, term loans, mortgages, business and
corporate lending, international asset financing, leasing,
installment credit, debt factoring, foreign exchange facilities,
interest and exchange rate hedging instruments, executor, trustee,
life assurance and pension and investment fund management, fund
administration and custodial services and financial advisory
services, including mergers and acquisitions and underwriting.
The Company organizes its businesses into Retail Republic of
Ireland, Bank of Ireland Life, Capital Markets, UK Financial
Services and Group Centre.  It has operations throughout Ireland,
the United Kingdom, Europe and the United States.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on July 23,
2010, Moody's Investors Service affirmed Bank of Ireland's long-
term bank deposit and senior debt ratings.  These were 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.  BoI's bank financial
strength rating is D, on review for possible upgrade and this was
also unaffected by the rating action.


BLACKROCK CABS: Liquidator Appointed; Creditors May Get Nothing
---------------------------------------------------------------
Sean McCarthaigh at The Irish Examiner reports that creditors of
insolvent Blackrock Cabs have been told that they are unlikely to
receive any money owed to them.

The report relates Alan Fitzpatrick of Alan Fitzpatrick & Co., was
appointed liquidator to the firm after a meeting of creditors in a
Dublin hotel on Wednesday.  Among the creditors are the Revenue
Commissioners, who are owed EUR77,000, the report notes.

According to the report, Dublin City Sheriff, John Fitzpatrick,
who had the shareholding in Blackrock Cabs transferred to him by
court order, said the firm was "hopelessly insolvent".

Blackrock Cabs is a taxi firm owned by alleged "pyramid"
investment scheme operator Breifne O'Brien.


MCINERNEY HOMES: Banks Appoint Receiver to McInerney Services
-------------------------------------------------------------
Barry O'Halloran at The Irish Times reports that banks have taken
control of McInerney Services, a McInerney Homes subsidiary, that
is not under the High Court's protection from its creditors.

The report relates Bank of Ireland, Anglo Irish and KBC have
appointed a receiver to McInerney Services, a treasury operation
that owes them EUR40 million, but which is not included in the
examinership.

According to the report, the company was used to borrow money from
the banks, which was used to fund some of McInerney's operations
in Britain.  The five Irish companies in interim examinership
guaranteed the loan to McInerney Services, which gave the banks
the right to appoint their receiver, the report discloses.

The report relates the High Court recently appointed Billy
O'Riordan of PricewaterhouseCoopers as interim examiner to a
number of McInerney companies.

The case is set to be heard today, Sept. 10, the report states.
The case was due for a full hearing on Tuesday, Sept. 7, but was
adjourned after it emerged that three banks, to which the building
group owes a total of EUR111 million, are opposing the examiner's
appointment, the report notes.

If the court finalizes the appointment, an examiner will have up
to 100 days to come up with a rescue plan for the company, the
report says.

McInerney Homes is an Irish housebuilder.


* IRELAND: Extends Guarantee for Short-Term Bank Liabilities
------------------------------------------------------------
Carmel Crimmins, John O'Donnell and Padraic Halpin at Reuters
report that Ireland on Tuesday extended its guarantee for short-
term bank liabilities, including corporate and interbank deposits,
as expected as the government sought to reassure investors.

Reuters relates Irish bond spreads hit fresh peaks on Tuesday on
renewed jitters about the health of the European banking sector
exerting more pressure on Ireland.

According to Reuters, analysts said while the guarantee kept
Ireland on the hook for its struggling banks, it at least gave
them breathing space ahead of a crucial month in which they need
to refinance around EUR26 billion of funding.  Reuters says the
move will likely help its main lenders, Allied Irish Banks and
particularly Bank of Ireland test debt markets in the coming
weeks.

The spike in Irish borrowing costs will make it more costly for
Irish banks to refinance this month's debt and wean themselves off
a government guarantee of their funding, Reuters states.

Irish Prime Minister Brian Cowen insisted the economic situation
was manageable, Reuters notes.


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


CONNAUGHT PLC: Retail Investors May Get Nothing Following Demise
----------------------------------------------------------------
Alistair Gray at The Financial Times reports that retail investors
who piled into Connaught stock shortly before the company went
into administration were unlikely to recover any value.

A Financial Times analysis of figures provided by JunctionRDS, the
data provider, shows that several well known institutional
investors, including Fidelity Investments, Aviva Investors, F&C
Asset Management and Scottish Widows Investment Partnership, had
already endured multi-million pound paper losses.

The demise of Connaught also highlights the dangers of passive
investment strategies, the FT notes.

Many professional shareholders bailed out in the days and weeks
after Connaught's first profit warning as the company replaced
senior executives and drafted in Deloitte to conduct an
independent review of its accounting practices, the FT relates.

As reported by the Troubled Company Reporter-Europe on Sept. 9,
2010, Bloomberg News said Connaught appointed partners from KPMG
as administrators after the business as a whole failed to secure
"sufficient support" to trade as a going concern.  Bloomberg
disclosed the company said in a statement on Tuesday that
administrators were appointed to Connaught Plc and Connaught
Partnerships Ltd.  Connaught Compliance Ltd., National Britannia
Holdings Ltd., Fountains Ltd. and Connaught Environmental Ltd. and
their subsidiaries have not been put into administration,
Bloomberg noted.  Connaught was suspended from London trading on
Tuesday after saying an "adequate solution" to its funding
problems was "increasingly uncertain," according to Bloomberg.

Connaught plc -- http://www.connaught.plc.uk/-- is a United
Kingdom-based company engaged in the provision of integrated asset
services to the public and private sectors.  The Company operates
in two business segments: social housing and compliance.  Social
Housing segment provide social housing landlords throughout the
United Kingdom with a range of planned and response maintenance
services, as well as compliance and estate management.  The
Compliance segment provides safety, health and risk management
solutions.  It has information, advisory, training and servicing
capabilities to provide integrated compliance solution throughout
the United Kingdom.  On July 22, 2009, the Company completed the
acquisition of UK Fire (International) Limited and Igrox Limited.
On September 15, 2008, the Company completed the acquisition of
Lowe Group Holdings Ltd.  On November 26, 2008, the Company
completed the acquisition of certain assets of Predator Pest
Control Plc.


DECO SERIES 2005: Fitch Affirms EUR5.7MM Class H Notes at 'CCCsf'
-----------------------------------------------------------------
Fitch Ratings has affirmed DECO Series 2005 - Pan Europe 1 plc
(PE1) and revised the Outlooks on class D and E notes to Stable
from Negative.  The rating actions are:

EUR8.5m class A2 due July 2014 (XS0227107538) affirmed at 'AAAsf';
Outlook Stable
EUR24.2m class B due July 2014 (XS0227110326) affirmed at 'AAAsf';
Outlook Stable
EUR39.2m class C due July 2014 (XS0227112884) affirmed at 'AAAsf';
Outlook Stable
EUR9.8m class D due July 2014 (XS0235684114) affirmed at 'AAsf';
Outlook revised to Stable from Negative
EUR24.5m class E due July 2014 (XS0227113692) affirmed at 'Asf';
Outlook revised to Stable from Negative
EUR19.6m class F due July 2014 (XS0227115630) affirmed at 'BBsf';
Outlook Negative
EUR12.2m class G due July 2014 (XS0227116950) affirmed at 'Bsf';
Outlook Negative
EUR5.7m class H due July 2014 (XS0227117503) affirmed at 'CCCsf';
assigned a Recovery Rating of 'RR5'

The rating action reflects the stable collateral performance since
the review last September and the de-leveraging of the
transaction.  Two loans have repaid. Project Suisse, which repaid
at loan maturity in January 2010, benefited from strong rental
income and long leases.  The other loan to repay at maturity was
Trabrennbahn, whose low balance (EUR12 million) aided refinancing.
Fitch advance rates -- defined as debt outstanding over asset
value -- have improved significantly following these repayments.

Most of these estimates of value will not be tested before 2012,
when there is a spike in loan maturities.  However, the Hanover
loan, which accounts for 22% of the note balance, is due
imminently, in October 2010.  The secondary nature of the charged
assets weakens re-letting prospects, and may hamper their
marketability to investors or other lenders.  This is reflected in
Fitch's estimate of a whole loan-to-value ratio (LTV) of 108%.

With final legal maturity of the bonds in July 2014, the use of
loan extension at maturity is tightly constrained, which raises
the likelihood of enforcement as a workout route for loans that
default at maturity.  Many of the underlying buildings in the
portfolio are secondary in quality and location, and so in spite
of an impressive roll of tenants, few properties will have
materially grown in value since the last rating review.  As a
result, there continues to be significant balloon risk, which
largely offsets the benefits of deleveraging and modest scheduled
loan amortization, especially for junior noteholders.


ILKESTON TOWN: High Court Orders Liquidation Over Unpaid Tax Debt
-----------------------------------------------------------------
BBC News reports that Ilkeston Town Football Club has been wound
up by the High Court over an unpaid tax bill.

BBC relates lawyers acting for the club had pleaded with the court
to give it more time to pay the outstanding GBP0,000 to HM Revenue
and Customs.  But HMRC pressed on with the winding up petition
with the club being described as "plainly insolvent" by the court,
BBC notes.

The court heard Ilkeston Town's chairman, Gary Hodder, was
negotiating with investors interested in purchasing the Blue
Square Bet North club, BBC discloses.

Ilkeston Town Football Club is an English football club based at
the New Manor Ground in Ilkeston, Derbyshire.


JKRS: In Administration; RSM Tenon Recovery Seeks Buyer
-------------------------------------------------------
Neil Gerrard at Caterersearch.com reports that JKRS, which
operates the Links Country Park hotel and golf club in Cromer and
its sister hotel the Peveril of the Peak in Ashbourne, Derbyshire,
has gone into administration.

According to the report, Timothy Dolder and Trevor Binyon of
insolvency practitioners RSM Tenon Recovery are dealing with the
administration of both properties.

The report relates a spokeswoman for RSM Tenon said: "The plan is
indeed to sell the business and this is in progress currently --
any interested parties' details are being passed to our appointed
agents, but nothing has been finalized yet.  There are managing
agents in place running the hotels, so from that perspective it's
very much business as usual."

JKRS is a hotel firm based in the United Kingdom.


KICKWORLDWIDE: Bought Out of Administration by Founders
-------------------------------------------------------
How-Do reports that Kickworldwide's founders, Steve Cartwright and
Steve Bellis, have bought the company out of administration.

"As far as we're concerned it is business as usual," How-Do quoted
Mr. Cartwright as saying.  "The administrator made all of the
staff redundant and although it's early days, we intend to
reemploy them and we'll be meeting with our landlord soon."

As reported by the Troubled Company Reporter-Europe on Sept. 9,
2010, Mark Goldstein Associates was appointed as administrator of
Kickworldwide.

Kickworldwide is the Cheshire-based company behind reality TV
format, Soccer Prince.


LOCAL BILLING: Wound Up Following Insolvency Service Probe
----------------------------------------------------------
Twenty-seven companies involved in the mis-selling of health
supplements have been wound up in the High Court following an
investigation by Company Investigations of the Insolvency Service.

The investigation found that all of the companies had their
registered offices in the County Durham area but traded
internationally, mainly from locations in Barcelona and Malta by
placing "Free Trial Offers" for health supplements on numerous
websites.

Customers responding to a "Free Trial Offer" supplied their
payment card details believing that only a small charge to cover
postage and packaging (typically GBP3.95) was required.  However,
if the customer failed to cancel the "Free Trial Offer" within the
cancellation period (usually 15 days) they were deemed to have
agreed to an ongoing supply of the product from the companies, at
a cost of around GBP70 to GBP80 each month.

Commenting on the case, Stephen Speed, Chief Executive of
The Insolvency Service said; "The Insolvency Service is determined
to come down hard on companies who seek to rip off the public by
mis-selling products.  I urge all consumers to be vigilant when it
comes to 'free trial offers', and remember if it looks to good to
be true, it often is."

Analysis of the available records for just seven of the
companies found that they had turnover in excess of US$19 million
in the period August 2009 to March 2010 which was processed
through merchant accounts based in Germany.

The products offered by the companies included Acai Berry
Detox, Acai Power, Effective Acai, Acai Detox, Absolute Acai,
Colon Cleanse Fresh, Colon Purify, Life Cleanse, Resveratrol,
Resvmax, Miraculous Teeth Whitening, PureClean Teeth,
Dermasensation and Dermainfuse.

The investigation found that there was a serious lack of
transparency as to who controlled the companies with the named
directors being otherwise unconnected individuals residing in
Insolvency Service detoxes the business world of 27 misleading
the Consett area of County Durham.  Those spoken to by the
investigators said they knew nothing about the affairs of the
company of which they were the only director and said their only
task was to forward any post received for the companies to a
local formation agent, Brinken Merchant Incorporations Limited.
Each had been approached to act as a director by Brinken who
paid them around GBP150 a year.

However, the Court heard that 25 of the companies were
found to be under the common control of Local Billing Solutions
Limited ("Local Billing"), a company registered in
Malta.  Local Billing maintained throughout the inquiry that it
acted only as a payment processor and that the beneficial
interest in the companies belonged to Canonizado International,
a company said to be registered in Panama, of which the
investigators could find no trace.  On the documents available,
the investigation established that the beneficiaries of the
companies' trading were most likely to be Local Billing and its
principal Clayton Douglass.

Grounds for winding up the companies included:

    * The Web sites used by the companies misled customers into
      believing that the trial offer was risk free and limited in
      nature;

    * The terms and conditions of the offer were designed to
      confuse the customer and were not provided in any durable
      medium;

    * The length of the trial offer was not made clear.
      Customers were provided with a 30-day supply of the product,
      but had, typically, only 12 days from receipt of the product
      in which to cancel any future supply; and

    * The companies abused the privilege of trading through a
      limited company by effectively continuing the same method of
      operating as that used by Trading Planet Limited, Viv3lab
      Limited and Vivera Limited.  Those three companies having
      previously been wound up by the Court in the public
      interest.

The winding up orders were all made on August 26, 2010.

Winding up petitions were presented on June 21, 2010
against: LB Belvedere Limited, LB Cygnus Media Limited, LB
Deluxepass Limited, LB Eridanus Entertainment Limited, LB Evil
Angel Limited, LB Friendfinder Limited, LB Global Web Solutions
Limited, LB Internet Media Productions Limited, LB Ilogic
Solutions Limited

Winding up petitions were presented on June 22, 2010
against: LB LFP Internet Limited, LB Lyra Entertainment Limited,
LB Nomad Media Limited, LB Pegasus Media Limited, LB Price
Communications Limited, LB RSC Limited, LB Southint Prop
Limited, LB Watt Media Limited

Winding up petitions against the following companies were
presented on June 23, 2010, and on June 25, 2010 the Official
Receiver was appointed as Provisional Liquidator of the
companies: LB Carsed Marketing Limited, LB Nakedsword Limited, LB
Cassiopeia Media Limited, LB Cybernet Entertainment Limited, LB
RHS Limited, LB Pride Studios Limited, Intercontinental
Consignment Logistics Limited and Gillmap Limited

Petitions to wind up Fyso-UK Limited and H5-UK Limited were
presented on July 13, 2010.


SHEFFIELD WEDNESDAY: Seeks Investors for Long-Term Survival
-----------------------------------------------------------
BBC Radio Sheffield reports that Sheffield Wednesday chairman
Howard Wilkinson says any potential investors must be able to
protect the League One club's long-term future.

"When we do get investment they will have to show they can manage
the club properly on a sound basis," Mr. Wilkinson told BBC Radio
Sheffield.  "Investment is crucial, but investment on its own will
not solve the problem."

As reported by the Troubled Company Reporter-Europe on Sept. 9,
2010, BBC Radio Sheffield said Sheffield Wednesday have been saved
from administration after reaching an agreement with their bank
over unpaid tax.  BBC Radio Sheffield disclosed the Owls was due
at the High Court on Wednesday over a GBP1.1 million unpaid bill
to HM Revenue & Customs.  But the League One club brokered a deal
with the Co-operative Bank to secure its immediate future,
according to BBC Radio Sheffield.

On July 26, 2010, the Troubled Company Reporter-Europe, citing the
Financial Times, reported that Sheffield Wednesday had total debts
of about GBP26 million.  The FT disclosed the club owes GBP21.5
million to the Co-Op Bank.  The club has for some time been
seeking buyers, at an asking price in the region of GBP10 million,
according to the FT.

Sheffield Wednesday Football Club is a football club based in
Sheffield, South Yorkshire, England, who will compete in the
Football League One in the 2010/11 season, in England.  Sheffield
Wednesday is one of the oldest professional clubs in the world and
the third oldest in the English league.


* Fitch Takes Various Rating Actions on Lehman Currency Swap Deals
------------------------------------------------------------------
Fitch Ratings has upgraded four and affirmed 39 tranches of seven
UK non-conforming transactions, which no longer have currency
swaps in place due to the bankruptcy of Lehman Brothers in
September 2008.  In addition, the senior tranches carrying ratings
above 'CCC' were removed from Rating Watch Negative.

Tranches of notes carrying a rating above 'CCC' have been affirmed
and removed from Rating Watch Negative, on which they were placed
on July 19, 2010.  The rating action on these tranches follows the
judgment delivered by the English High Court on July 30, 2010 in
the case of BNY Corporate Trustee Services Limited -v- Eurosail UK
2007-3BL PLC.  In his judgment the Chancellor of the English High
Court ruled that Eurosail UK 2007-3BL PLC was not unable to pay
its debts under the UK Insolvency Act 1986.  The Chancellor also
ruled that the existence of a post-enforcement call option in the
transaction had no effect on the solvency of Eurosail UK 07-3 BL
PLC.  On August 20, 2010 the class A3 noteholders filed an appeal
against the Chancellor's judgment that the issuer was not
insolvent under the Act.  Fitch currently has no information on
when the appeal is likely to be heard by the English Court of
Appeal, but the agency expects that the outcome of the appeal may
not be known for the next several months.  The outcome of the
appeal could have an impact on the rating of the notes in all
seven transactions.  Fitch will be publishing a more detailed
comment on the Eurosail Case over the next few days.  The agency
will review any future developments in the Eurosail Case and will
take rating action as necessary.

The upgrades of A1 and A2 notes of EMF UK 2008-1 and B1a notes of
Eurosail UK 07-4 reflect the movement of foreign exchange (FX)
rates in favor of the issuers since December 2008 when Fitch
downgraded the notes and the resulting deleveraging of some of the
senior notes.  Fitch now expects the class A1 notes of the EMF UK
2008-1 transaction to pay in full in December 2010.  The absence
of currency swaps due to the bankruptcy of Lehman Brothers
resulted in Fitch's downgrade in December 2008 as adverse FX
movements left the transactions significantly under-
collateralized.  The issuers of the transactions are exchanging
proceeds received from borrowers at current FX rates, causing a
variance in the repayment of GBP-denominated notes compared with
the EUR- and/or USD-denominated equal ranking notes.

Similarly, the upgrade of the class ETc notes in the Eurosail UK
07-3 transaction is a result of Fitch's expectation that those
notes will pay in full on the upcoming payment dates due to a
stabilisation of underlying collateral performance.  However, on
the past two payment dates the Eurosail UK 07-3 transaction's
ability to generate excess spread has been put under pressure with
a number of properties being sold with resulting losses for the
transaction.  For this reason, the upgrade has been limited to
'CCC'.

The ratings on the transactions remain exposed to further FX
movements, which could eventually move in favour of the issuers.
In the meantime, due to their structures, the EMF UK 2008-1 and
the Mortgage Funding 2008-1 transactions are also more exposed to
the risk of interest shortfalls on the class A notes, as a result
of tightening in excess spread following deterioration in asset
performance.

With the collapse of Lehman Brothers, the transactions also remain
un-hedged for basis and fixed/floating risks.  The hedges put in
place at the closings of the transactions were provided by Lehman
Brothers Special Financing, Inc. (LBSFI).  In Fitch's view the
absence of a basis hedge in these transactions is having a limited
impact on their ability to generate excess spread, as the current
mismatch between Libor and BBR stands at 23bps.  Should the margin
between Libor and BBR reach levels seen in 2008 (in excess of
100bps), the transactions are likely to struggle to generate
sufficient revenue necessary to meet all the payments due in
accordance with the priority of payment schedules.  On the other
hand, most of the loans in the underlying pools have reverted to
variable rates; therefore the absence of a fixed/floating swap
will continue to have little to no impact on the excess spread
levels generated by the transactions.  In addition, Lehman
Brothers Bauhaus AG, London Branch was the liquidity facility
provider on the EMF-UK and the Mortgage Funding UK transactions
and has not been replaced since September 2008.

In October 2009, Danske Bank failed to renew the liquidity
facility agreement on the Eurosail Prime UK 2007-A and the
Eurosail UK 07-5 transactions.  Danske Bank also stated that due
to the issuers' inability to meet the 'no default' representation
of the underlying liquidity facility agreement, these transactions
were unable to make stand-by drawdowns, as indicated in the
transaction documentation in such events.  A similar issue
occurred recently in the Eurosail UK 07-6 and the Eurosail UK 07-4
transactions, leaving Eurosail 07-3 as the only transaction out of
the seven referred to above with a liquidity facility in place.
In Fitch's view, the absence of a liquidity facility does not
affect the ratings of these transactions, as its purpose is to
provide support for short-term liquidity shortfalls, which would
typically occur in higher rating scenarios.

The performance of the underlying assets in most of the
transactions has followed the trends seen in other UK non-
conforming transactions, i.e., arrears have stabilized and the
volume of outstanding repossessions has seen a significant decline
compared with levels seen 12 months earlier.  Loss recognition in
the Eurosail UK 07-3, the Eurosail UK 07-4 and the Mortgage
Funding 2008-1 transactions has, however, remained quite high in
comparison to most other UK non-conforming transactions.  All
three pools contain significant portions of second lien mortgagees
which are partly the cause of the high loss severities reported in
June 2010.  The servicer has proactively been selling high numbers
of repossessed properties with losses, which is another factor
behind the tightening in excess spread levels.  Although this has
caused a reserve fund draw in the Eurosail UK 07-4 transaction,
the sale of properties soon after repossession reduces the cost of
carry for the relevant noteholders.

Most of the loans in the underlying pools have now reverted to
variable rates, and are benefiting from low interest rates.  Fitch
believes that this is the main cause behind the stabilization in
arrears reported by most UK non-conforming issuers.  The agency
expects interest rate rises in 2011, at which stage the ability of
borrowers to meet their monthly payments may be put under
pressure. Fitch also believes that these deals remain exposed to
the effects of unemployment.  Both factors are likely to lead to
another wave of arrears and repossessions, which will impact the
transaction's ability to generate excess spread.

The rating actions are:

Eurosail -- UK 2007-3 BL plc
Class A1b (ISIN XS0308649309) affirmed at 'BBBsf'; removed from
RWN; assigned Stable Outlook; assigned Loss Severity Rating 'LS-2'
Class A1c (ISIN XS0308653244) affirmed at 'BBBsf'; removed from
RWN; assigned Stable Outlook; assigned Loss Severity Rating 'LS-2'
Class A2a (ISIN XS0308648673) affirmed at 'BBsf'; removed from
RWN; assigned Negative Outlook; assigned Loss Severity Rating 'LS-
2'
Class A2b (ISIN XS0308650224) affirmed at 'BBsf'; removed from
RWN; assigned Negative Outlook; assigned Loss Severity Rating 'LS-
2'
Class A2c (ISIN XS0308659795) affirmed at 'BBsf'; removed from
RWN; assigned Negative Outlook; assigned Loss Severity Rating 'LS-
2'
Class A3a (ISIN XS0308666493) affirmed at 'CCsf'; Recovery Rating
revised to 'RR3' from 'RR4'
Class A3c (ISIN XS0308710143) affirmed at 'CCsf'; Recovery Rating
revised to 'RR3' from 'RR4'
Class B1a (ISIN XS0308672384) affirmed at 'Csf'; Recovery Rating
'RR5'
Class B1c (ISIN XS0308716421) affirmed at 'Csf'; Recovery Rating
'RR5'
Class C1a (ISIN XS0308673192) affirmed at 'Csf'; Recovery Rating
'RR5'
Class C1c (ISIN XS0308718047) affirmed at 'Csf'; Recovery Rating
'RR5'
Class D1a (ISIN XS0308673945) affirmed at 'Csf'; Recovery Rating
'RR5'
Class E1c (ISIN XS0308725844) affirmed at 'Csf'; Recovery Rating
'RR5'
Class ETc (ISIN XS0309312543) upgraded to 'CCCsf' from 'Csf';
Recovery Rating revised to 'RR3' from 'RR5'

Eurosail-UK 07-4 BL PLC
Class A1a (ISIN XS0311594740) affirmed at 'BBBsf'; removed from
RWN; assigned Stable Outlook; assigned Loss Severity Rating 'LS-2'
Class A1c (ISIN XS0311598907) affirmed at 'BBBsf'; removed from
RWN; assigned Stable Outlook; assigned Loss Severity Rating 'LS-2'
Class A2a (ISIN XS0311680747) affirmed at 'BBsf'; removed from
RWN; assigned Negative Outlook; assigned Loss Severity Rating 'LS-
2'
Class A3a (ISIN XS0311702657) affirmed at 'CCCsf'; removed from
RWN; Recovery Rating 'RR3'
Class A3c (ISIN XS0311704356) affirmed at 'CCCsf'; removed from
RWN; Recovery Rating 'RR3'
Class B1a (ISIN XS0311705759) upgraded to 'CCsf' from 'Csf';
Recovery Rating revised to 'RR4' from 'RR5'
Class C1a (ISIN XS0311708696) affirmed at 'Csf'; Recovery Rating
'RR5'
Class D1a (ISIN XS0311713001) affirmed at 'Csf'; Recovery Rating
'RR5'
Class E1c (ISIN XS0311717416) affirmed at 'Csf'; Recovery Rating
'RR5'

Eurosail-UK 07-5 NP PLC
Class A1a (ISIN XS0328024608) affirmed at 'CCCsf'; Recovery Rating
'RR3'
Class A1c (ISIN XS0328025241) affirmed at 'CCCsf'; Recovery Rating
'RR3'
Class B1c (ISIN XS0328025324) affirmed at 'Csf'; Recovery Rating
'RR5'
Class C1c (ISIN XS0328025597) affirmed at 'Csf'; Recovery Rating
'RR5'
Class D1c (ISIN XS0328025670) affirmed at 'Csf'; Recovery Rating
'RR5'

Eurosail-UK 07-6 NC PLC
Class A1a (ISIN XS0332284651) affirmed at 'BBsf'; removed from
RWN; assigned Stable Outlook.; assigned Loss Severity Rating 'LS-
2'
Class A2a (ISIN XS0332285039) affirmed at 'Bsf'; removed from RWN;
assigned Negative Outlook; assigned Loss Severity Rating 'LS-2'
Class A3a (ISIN XS0332285971) affirmed at 'CCsf'; Recovery Rating
'RR5'
Class B1a (ISIN XS0332286862) affirmed at 'Csf'; Recovery Rating
'RR5'
Class C1a (ISIN XS0332287084) affirmed at 'Csf'; Recovery Rating
'RR5'
Class D1a (ISIN XS0332287597) affirmed at 'Csf'; Recovery Rating
'RR5'

Eurosail Prime-UK 2007-A plc
Class A (ISIN XS0328494157) affirmed at 'CCCsf'; Recovery Rating
'RR3'
Class M (ISIN XS0328496368) affirmed at 'Csf'; Recovery Rating
'RR6'
Class B (ISIN XS0328504567) affirmed at 'Csf'; Recovery Rating
'RR6'
Class C (ISIN XS0328511265) affirmed at 'Csf'; Recovery Rating
'RR6'
Class D (ISIN XS0328517205) affirmed at 'Csf'; Recovery Rating
'RR6'

EMF-UK 2008-1 Plc
Class A1 (ISIN XS0352307184) upgraded to 'Bsf' from 'CCCsf';
assigned Stable Outlook; assigned Loss Severity Rating 'LS-1'
Class A2 (ISIN XS0352307770) upgraded to 'CCCsf' from 'CCsf';
Recovery Rating revised to 'RR2' from 'RR3'
Class A3 (ISIN XS0352932643) affirmed at 'CCsf'; Recovery Rating
'RR3'

Mortgage Funding 2008-1 plc
Class A (ISIN XS0350039912) affirmed at 'CCCsf'; Recovery Rating
'RR2'


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


* BOOK REVIEW: Competition in the Health Care Sector
----------------------------------------------------
Author: Warren Greenberg, Ph.D.
Publisher: Beard Books
Softcover: 410 pages
List Price: US$34.95
Review by Henry Berry

Competition in the Health Care Sector covers a landmark Federal
Trade Commission (FTC) conference in June 1977.  The conference
was attended by over 600 individuals, including healthcare
administrators, government policymakers, sociologists and other
academics, and medical doctors.  All were present to try to get a
better appreciation for the role and impact of economics in
healthcare services.  At that time (and still true today),
Medicaid and Medicare were growing larger, health maintenance
organizations (HMOs) were assuming a central place in the
healthcare system, payment methods were proliferating and becoming
more complicated, and consumers were becoming more informed about
and involved with their healthcare options.  Both government
agencies and the private sector recognized that economic
principles and phenomena were at work in the healthcare sector.
The FTC conference was called to clarify the economic factors and
their effects in healthcare in order to gain better control over
the sector, particularly its escalating costs.

The 24 chapters in Competition in the Health Care Sector are
presented in four sections.  The first is "Opening Remarks and
Introduction," followed by sections on "Competition in Selected
Sectors," "Insurance, Competition, and Alternative Delivery
Systems," and "Competition and Regulation."  Many of the chapters
are titled "Comment," which contain comments by an individual on
one of the topics presented in the four major sections.  There is
also a detailed index that leads readers to specific subjects of
interest.

Despite its general title, the first section gets right to the
substance of the conference as connoted in the title.  It is a
staff report prepared by the FTC's Bureau of Economics.  At the
time of the conference, Greenberg was a staff economist with the
FTC and presumably he had an appreciable hand in the report.
There is a note that the FTC "has not adopted the report in whole
or part."  But this is a pro forma entry because there is little
to adopt or reject in this government paper.  The staff report is
a summary of the lengthy and often detailed informative and
analytic papers that follow in the remaining 400 pages of
Competition in the Health Care Sector.

In an address opening the conference, Michael Pertschuk, then FTC
chairman, stresses that, "The Federal Trade Commission is not a
health or medical agency . . . [W]e recognize, along with most
Americans, that the delivery of health care is business, an
industry of vast proportions and vital effect.  Health care has
become [the FTC's] business."  That the FTC, charged with
monitoring and regulating businesses, has come to regard the
healthcare industry in the same terms as other business sectors
plainly evidences the nature of modern-day healthcare.

Healthcare executives and administrators as well as doctors and
related health professionals concurred with the perspective of the
FTC Chairman.  Dr. Theodore Cooper, dean of Cornell University's
Medical College at the time, said in his opening remarks that, "I
have to admit that one can no longer discuss health policy without
an appreciation of the importance of economic factors."  Dr.
Cooper also stated that, "the political and technical discussions
about health policy will continue to expand."  And he said that,
"if the conference can clarify how competition fits into the
'scheme of things,' this will be a milestone for doctors,
patients, and hospitals."

The critical issue of competition in the healthcare industry was
omnipresent during the conference.  Most of the topics covered
during the conference addressed, to some degree or another, the
effects of competition.  The impact of competition on physicians,
hospitals, and insurers was analyzed.  Another area of discussion
focused on the interrelationship between competition and
alternative means of payment.  Appropriately for a conference
sponsored by the FTC, the interrelation of competition and
regulation came under study.

Analyses follow the introduction of each topic.  For example,
"Competition Among Physicians," is followed by expert commentary.
The style of the papers is, as is well described by the author, "a
mix of technical jargon and mathematical exposition common to most
economists, and language suitable for non-economists and public
policy-makers."

The conference did not arrive at definite conclusions about the
place and effects of economics on the thriving, sprawling, complex
healthcare industry that encompasses innumerable organizations and
professionals of many different kinds.  It did, however, succeed
in its objective of presenting data, offering illuminating
analyses, providing knowledgeable perspectives, and eliciting
expert commentary.  All this is offered in a reprint of a 1978
book that still has a place on everyone's bookshelf as a
fundamental text and reference on economics in the healthcare
field.

Warren Greenberg has a Ph.D. in economics from Bryn Mawr
University.  Author of many books and articles in the area of
industrial organization economics and healthcare, Greenberg is
also a professor of Health Economics and of Health Care Sciences
at George Washington University.


                            *********

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.

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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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