TCREUR_Public/100922.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 22, 2010, Vol. 11, No. 187

                            Headlines



A U S T R I A

KA FINANZ: Fitch Affirms Rating on Jr. Sub. Notes at 'C'/'RR5'


D E N M A R K

TDC AS: CVC Capital and Sunrise Deal Cues Moody's Rating Reviews
TDC AS: S&P Puts 'BB' Corp. Rating on CreditWatch Positive


F R A N C E

NATIXIS SA: Has Yet to Decide on Coface's Fate, CEO Says
PICARD BONDCO: Moody's Assigns 'B1' Corporate Family Rating
PICARD BONDCO: Fitch Assigns 'B+' Issuer Default Rating
PICARD GROUPE: S&P Assigns 'B' Long-Term Corporate Credit Rating


G E R M A N Y

BAYERISCHE LANDESBANK: Examines Possible Merger With WestLB
COMMERZBANK AG: Hires UBS & Citigroup as Equity Advisers
HYPO REAL: Government Says Extra Staff Payments Not Inappropriate
WESTLB AG: Examines Possible Merger With Bayerische Landesbank

* GERMANY: Soffin Bank-Rescue Fund to Close at Year-End as Planned


G R E E C E

* GREECE: German Finance Minister Rules Out Sovereign Default
* GREECE: Prime Minister Rules Out Debt Restructuring Plan


I R E L A N D

ALLIED IRISH: M&T May Give Up Stake to Santander Through Merger
ANGLO IRISH: Bondholders Must Bear Costs to Restore Confidence
ANGLO IRISH: Irish Government Disputes FT Claim on Split Plan
FAIRLEE PROPERTIES: Receiver Seeks Possession of Firm's Premises

* IRELAND: Credit Unions Call for Establishment of Bailout Fund


I T A L Y

ALITALIA SPA: Mulls Up to 1,400 Job Cuts Under Restructuring Plan
NATIONAL FACTORING: Moody's Gives Stable Outlook on 'B3' Rating


K A Z A K H S T A N

EASTCOMTRANS LLP: Fitch Assigns 'B-' Issuer Default Ratings


L U X E M B O U R G

INTELSAT SA: Unit Launches Tender Offers for 9.25% Senior Notes
INTELSAT SA: Jackson Holdings Plans to Offer US$900 Mil. Sr. Notes
INTELSAT SA: Prices US$1 Billion of 7-1/4% Senior Notes Due 2010


U N I T E D   K I N G D O M

BRITISH MIDLAND: Set to Begin Pay Talks With Unite Union
CONNAUGHT PLC: Staff Didn't Receive Promised Wage Back-Payments
CONNAUGHT PLC: Repairs Backlog to Take Several Weeks to Shift
FOUR SEASONS: Put Up for Sale Following GBP1.7 Million Losses
GENERAL MOTORS: Work in Vauxhall's Factory in Luton Will Continue

KENT CRICKET: Chairman Denies Rumors of Possible Administration
LLOYDS BANKING: Chief Executive Eric Daniels to Retire Next Year
NATIONWIDE PUBLISHING: Easyfairs UK Buys Business Shows
STONE FIRMS: Might Go Into Administration
UK SPV: Fitch Assigns 'B' Rating on Limited Recourse Notes

VAMOSA LIMITED: Collapsed Into Administration


X X X X X X X X

* XTRACT EUROPE: Hires James Slessenger to Lead London Team




                         *********



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A U S T R I A
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KA FINANZ: Fitch Affirms Rating on Jr. Sub. Notes at 'C'/'RR5'
-------------------------------------------------------------
Fitch Ratings has affirmed Cyprus-based Kommunalkredit
International Bank's ratings at Long-term Issuer Default 'A+' with
Stable Outlook, Short-term IDR 'F1+' and Support '1'.  All of
KIB's ratings have simultaneously been withdrawn.

At the same time, the agency has affirmed KIB's Austria-based
parent KA Finanz AG at Long-term IDR 'A+' with Stable Outlook,
Short-term IDR 'F1+', Support Rating '1' and Support Rating Floor
'A+'.  A full breakdown of rating actions is provided at the end
of this comment.

Effective 18 September 2010, KIB has been absorbed by KAF and
ceases to exist as a separate legal entity.  This merger is part
of KAF's wind-down process, initiated in late 2008.

KAF itself is the legal successor of former Kommunalkredit Austria
AG (old KA), a public sector lender that was nationalised in
November 2008.  KAF holds old KA's non-strategic assets; it is in
wind-down mode and is no longer acquiring new business.  KIB was
old KA's (and subsequently KAF's) Cypriot subsidiary, holding much
of the group's CDSs and bond and non-core loan portfolios.  Old
KA's core business, essentially public sector lending and advisory
in Austria and neighbouring countries, has been transferred to
Kommunalkredit Austria AG (rated Long-term IDR 'A', Stable
Outlook; see separate update, published 15 March 2010).

KAF's ratings are based on its 99.78% ownership by the Republic of
Austria (rated 'AAA'/Outlook Stable) and Fitch's assumption that
there will be no change to the ultimate ownership and the
willingness of Austria to support KAF.  Given KAF's sole purpose
is to ensure an orderly run-off of its assets base, Fitch no
longer assigns an Individual Ratings.

KAF's financial performance under IFRS is significantly affected
by volatility in bond and CDS prices.  After a EUR545.1m positive
mark-to-market swing during 2009 resulted in a EUR447.6m pre-tax
profit at end-2009, negative CDS and bond valuation movements
during H110 affected KAF's performance and contributed to a
EUR493.1m operating loss.  Given that the quality of KAF's CDS and
bond portfolios is generally good and KAF intends to wind-down the
portfolio in an orderly way, CDS and bond valuation volatility is,
in Fitch's opinion, less concerning.

KAF's regulatory capital ratios are based on Austrian GAAP which
does not mark to market fixed income securities held as fixed
assets nor CDSs.  Consequently, KAF's tier 1 ratio remained stable
at 7.9% at end-H110.

The ratings affected by the rating action are:

KA Finanz AG

  -- Long-term IDR affirmed at 'A+'; Outlook Stable
  -- Short-term IDR affirmed at 'F1+'
  -- Support Rating affirmed at '1'
  -- Support Rating Floor affirmed at 'A+'
  -- Senior notes affirmed at 'A+'
  -- Subordinated (lower Tier 2) notes affirmed at 'A'
  -- Junior subordinated notes affirmed at 'C'/'RR5'
  -- Government-guaranteed notes unaffected at 'AAA'

Kommunalkredit International Bank Ltd.

  -- Long-term IDR affirmed at 'A+'; withdrawn

  -- Short-term IDR affirmed at 'F1+'; withdrawn

  -- Support Rating affirmed at '1'; withdrawn

  -- Commercial paper program ratings affirmed at 'F1+';
     withdrawn


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D E N M A R K
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TDC AS: CVC Capital and Sunrise Deal Cues Moody's Rating Reviews
----------------------------------------------------------------
Moody's Investors Service has placed all the ratings of TDC A/S
and TDC's immediate parent, Angel Lux Common S.A., on review for
possible upgrade, following the company's announcement of an
agreement to sell its Swiss subsidiary Sunrise AG to CVC Capital
Partners for around EUR2.5 billion in cash.

The review for possible upgrade affects Angel Lux Common S.A.'s
Ba2 corporate family rating, PDR of Ba2 and the B1/LGD5 rating on
the senior bonds as well as TDC's Ba2 CFR, Ba1/LGD2 rating on its
senior secured bank facility, short-term NP, and the Ba3/LGD5
rating on TDC's Euro Medium Term Note Program.

Moody's review will focus on the use of the cash proceeds and the
financial implications depending on the deleveraging strategy to
be considered and the long-term objectives of the current owners.
The review could potentially result in an upgrade depending on the
sustainability of the resulting financing plan.

The transaction is subject to Swiss regulatory approval and
antitrust clearance and it is expected to close in Q4 2010.
Moody's aims to conclude the review within a maximum of three
months.

Moody's has previously stated that TDC could experience upward
rating pressure in the event of (i) continued growth in EBITDA,
and (ii) improvements in credit metrics with Debt to EBITDA
decreasing to below 3.5x in combination with solid free cash flow
generation and RCF to Debt in the high teens.

Moody's last rating action on TDC was implemented on 30 January
2009, when the rating agency upgraded the CFR of Nordic Telephone
Company Holdings ApS, a holding company of TDC, to Ba2 from Ba3.
At the time, Moody's also upgraded ratings on the existing debt
instruments and applied a stable outlook to all ratings.

Headquartered in Copenhagen, Denmark, TDC is the principal
provider of fixed and mobile voice communications, Internet
broadband data services and cable TV offerings in Denmark.  The
company also provides telecom services to business customers
throughout the Nordic region.  TDC is 88% owned by a private
equity consortium comprising Kravis, Kohlberg, Roberts & Co.,
Permira, Apax Partners, Blackstone Group and Providence Equity
Partners through Angel Lux Common S.A. The buyout firms acquired
TDC in 2006 for EUR13 billion.

MOODY'S adopts all necessary measures so that the information it
uses in assigning a credit rating is of sufficient quality and
from sources MOODY'S considers to be reliable including, when
appropriate, independent third-party sources.  However, MOODY'S is
not an auditor and cannot in every instance independently verify
or validate information received in the rating process.


TDC AS: S&P Puts 'BB' Corp. Rating on CreditWatch Positive
----------------------------------------------------------
Standard & Poor's Ratings Services said it placed its 'BB' long-
term corporate credit ratings on Danish telecom operator TDC A/S
and its immediate parent company Angel Lux Common S.A. on
CreditWatch with positive implications.  S&P affirmed the 'B'
short-term ratings on TDC, which S&P is not placing on
CreditWatch.

In addition, S&P placed these ratings on CreditWatch with
developing implications: the 'BBB-' issue ratings on TDC's senior
secured facilities, the 'BB' issue ratings on TDC's euro medium-
term notes due 2012 and 2015, and the 'BB' issue ratings on ALC's
subordinated notes due 2016.

"The CreditWatch Positive placement for the corporate credit
ratings on TDC and ALC reflects the possibility of a future one-
notch upgrade," said Standard & Poor's credit analyst Matthias
Raab, "because S&P expects that the group is likely to apply a
significant portion of the sales proceeds from the announced
divestment of its Swiss subsidiary Sunrise Communications AG to
reduce its indebtedness."  On Sept. 17, 2010, TDC announced that
it had entered into a share purchase agreement with funds advised
by private-equity firm CVC Capital Partners to divest Sunrise for
a total cash consideration of CHF3.3 billion (?2.5 billion).

An upgrade could also reflect increased visibility of the group's
long-term shareholder remuneration policy and capital structure.
However, as TDC is 88%-owned by a consortium of private-equity
funds, S&P think that any possible upgrade would be limited to a
maximum of one notch, that is, below investment-grade.

The transaction is subject to Swiss regulatory approval and
antitrust clearance and TDC expects it to close in the fourth
quarter of 2010.

"S&P expects to resolve the CreditWatch in the next two to three
months, after meeting with TDC's management," said Mr. Raab.  At
this stage, S&P believes that S&P could raise the long-term
corporate credit rating on TDC and ALC by one notch if the group
applies a significant portion of the expected sales proceeds to
debt reduction.

An upgrade could also reflect increased visibility of the group's
long-term shareholder remuneration policy and capital structure.
However, as TDC is 88%-owned by a consortium of private-equity
funds, S&P think that a potential upgrade would be limited to a
maximum of one notch, that is, below investment-grade.


===========
F R A N C E
===========


NATIXIS SA: Has Yet to Decide on Coface's Fate, CEO Says
--------------------------------------------------------
Heather Smith and Sarah Jones at Bloomberg News, citing Le Journal
des Finances, report that Natixis SA Chief Executive Officer
Laurent Mignon said it is "too soon" to decide what to do with its
Coface credit-insurance unit.

As reported by the Troubled Company Reporter-Europe on Feb. 26,
2010, Bloomberg News said Natixis SA was seeking to sell the
unprofitable credit-insurance unit for as much as EUR1.5 billion
(US$2.03 billion).

                         About Natixis SA

Natixis SA -- http://www.natixis.com/-- is a France-based bank
offering various services and engaged in different activities.
Its main activities comprise corporate and investment banking,
asset management, receivables management, private equity and
private banking, retail banking and other services.  The Bank is
active in a number of countries in Europe, the Americas, Africa,
Asia and Oceania.  As of December 31, 2008, Natixis SA had a
number of subsidiaries, including Ixis Corporate & Investment
Bank, Ixis Asset Management Group, Coface and Natixis Asset
Management, among others.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on March 1,
2010, Moody's Investors Service upgraded the bank financial
strength rating of Natixis to D+ (stable outlook) from D (negative
outlook) and changed the outlook on the C- BFSR of BPCE SA, the
central body of Groupe BPCE, to stable from negative.  At the same
time, Moody's affirmed the senior debt ratings of BPCE and Natixis
at Aa3 with a stable outlook.  The short-term ratings were
affirmed at Prime-1.


PICARD BONDCO: Moody's Assigns 'B1' Corporate Family Rating
-----------------------------------------------------------
Moody's Investors Service has assigned for the first time a B1
Corporate Family Rating and Probability of Default Rating to
Picard Bondco S.A., and a provisional (P) B3 rating to the senior
notes maturing in 2018, to be issued by Picard Bondco S.A.
(Picard's bond issuing vehicle).  The outlook on the CFR is
stable.

This is the first time Moody's has assigned a rating to the
company.  Moody's issues provisional ratings in advance of the
final sale of securities and these ratings reflect Moody's
preliminary credit opinion regarding the transaction only.  Upon a
conclusive review of the final documentation, Moody's will
endeavor to assign a definitive rating to the notes.  A definitive
rating may differ from a provisional rating.

                         Rating Rationale

The B1 CFR reflects Picard's leading position in the French frozen
food market, its strong brand recognition and its record of
continuous market share gains.  Picard's market benefits from
relatively high entry barriers and proved resilient during the
recent economic downturn.  Its business model, which is focused
almost exclusively on private label products, enables it to
generate high margins.

The B1 CFR is expected to be constrained, however, by the
relatively high adjusted pro forma leverage once the acquisition
of Picard by Lion Capital is finalized, and by Picard's relatively
small scale and geographic scope.  Moody's estimates that on a pro
forma basis for this transaction, gross leverage, as adjusted by
Moody's and principally for lease commitments, should be around
6.3x.

Moody's expects that under its new ownership, Picard will focus on
growing its presence in its French core market, in particular
through opening stores in Paris and in large provincial
agglomerations.  Picard also targets potential marketing
efficiencies, an increase of on-line sales and an extended product
range to support its future growth.

Picard's liquidity is expected to be satisfactory.  Further to the
issuance of the senior notes (to finance Lion Capital's
acquisition of Picard), Picard's liquidity will consist
principally of an undrawn EUR50 million revolving credit facility
maturing in 2016.  Moody's notes the strong seasonality of cash
flows, with a peak during the Christmas period.  This is mitigated
by Picard's adequate liquidity position throughout the year
(historically, it has not used its RCF).  Picard has consistently
generated free cash flow in the past as a result of limited
capital expenditures and modest working capital requirements.

Picard's bank debt (Term Loan A, Term Loan B and the RCF) will be
secured on a first-ranking basis by pledges over shares and
benefit from first-ranking guarantees.  The senior notes will be
secured on a second-ranking basis by pledges over shares and
benefit from guarantees on a senior subordinated basis as set out
in the Intercreditor Agreement.  The senior notes are therefore
rated two notches below Picard's CFR at (P)B3.  The notes'
indentures include a change of control clause as well as
restrictions on, inter alia, certain payments, additional debt,
liens and sale of assets.

To maintain the B1 CFR, Moody's would expect Picard to de-leverage
to below 6.0x in the next 18 months, to maintain its EBITA-to-
interest ratio at around 2.0x, and to generate at least EUR50
million of free cash flow annually.  The stable outlook reflects
Moody's view that, while the leverage ratio is considered somewhat
high immediately following the transaction, Picard will be able to
improve this largely through internally generated growth and cash
flows used for term loan amortization and cash sweeps.  While not
expected in the short term, upward pressure could result if gross
leverage decreases towards 5.0x and EBITA-to-Interest increases
towards 2.5x.  Alternatively, downward pressure could evolve if:
(i) Picard cannot demonstrate a trajectory of deleveraging to
below 6.0x in the next 18 months; (ii) EBITA-to-interest decreases
towards 1.5x; or (iii) its liquidity profile deteriorates.

In July 2010, private equity firm Lion Capital was granted a
period of exclusivity for the purposes of reaching a definitive
agreement to acquire Picard through a tertiary buy-out from BC
Partners, which had owned the company from 2004.

Picard, based in Issy-les-Moulineaux, is the leading specialist
retailer of frozen foods operating mostly in France through a
network of 842 stores as of March 2010.  The company generated
EUR1.1 billion and EUR158 million in revenues and EBITDA,
respectively, in the financial year ending 31 March 2010 based on
French GAAP (EUR1.2 billion and EUR164 million in revenues and
EBITDA, respectively, based on LTM 30 June 2010 IFRS figures).

                     Regulatory Disclosures

Information sources used to prepare the credit rating are these:
parties involved in the ratings, parties not involved in the
ratings, confidential and proprietary Moody's Investors Service's
information.

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

The rating has been disclosed to the rated entity or its
designated agents and issued with no amendment resulting from that
disclosure.

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

MOODY'S adopts all necessary measures so that the information it
uses in assigning a credit rating is of sufficient quality and
from sources MOODY'S considers to be reliable including, when
appropriate, independent third-party sources.  However, MOODY'S is
not an auditor and cannot in every instance independently verify
or validate information received in the rating process.


PICARD BONDCO: Fitch Assigns 'B+' Issuer Default Rating
-------------------------------------------------------
Fitch Ratings has assigned Picard BondCo S.A. a Long-term Issuer
Default Rating of 'B+' with a Stable Outlook.  The rating is based
on Picard's acquisition by Lion Capital.  Fitch also assigned to
Lion Polaris SAS senior secured bank debt an expected instrument
rating of 'BB' with a Recovery Rating of 'RR2', in addition to
assigning the company's senior notes an expected instrument rating
of 'B-'; RR6.

The assigned Long-term IDR of 'B+' reflects Picard's leading
position in the French frozen food market, its unique
characteristics as a retailer and recognized brand in this niche,
as well as management's strong track record at expanding the
concept organically in France.  It also takes into account the
company's ability to repay its debt through a high level of cash
generation and a track record of deleveraging under previous
structures.  Leverage on a lease-adjusted basis, after the
expected bond issuance of EUR300m, is considered high for the
assigned rating.  However, the rating is also based on the
prospects for cash generation and deleveraging over the next one-
to-two years.

Fitch notes that EBITDA levels have remained relatively static
despite new store openings and revenue growth since 2007, while
margins have eroded by 1.6ppt between FY07 (15.3%) and FY10
(13.7%) because of the increase in rents and the introduction of
new taxes such as those on fish or on retailer chains that have a
total of more than 4,000sqm in stores.  Going forward the agency
still expects some margin erosion through an increased level of
sales cannibalization coming from the new stores.  However this
should be partly offset by a better product mix through the new
customer relationship tools as well as cost savings on the supply
side.

The Recovery Rating of 'RR2' assigned to the senior bank debt
indicates expected recoveries in the range of 71-90%.  This
reflects relatively moderate last-twelve-month IFRS June 2010
senior leverage of approximately 4.0x.  Driving these recovery
expectations is an estimated post-restructuring EBITDA of
approximately 20% below the group's adjusted LTM June 2010 EBITDA
of EUR164m to reflect a hypothetical adverse scenario of a
significant shock to the issuer's profitability.  This, in
combination with an estimated going concern multiple of 6x
enterprise value/EBITDA, results in a more favorable valuation
than the agency's alternative estimation of a liquidation
scenario.  As most of the borrowing group's assets are in France,
the Recovery ratings are capped at 'RR2'.

Following the payment waterfall, the senior notes have been
assigned an 'RR6' Recovery Rating, indicating expected recoveries
in the range of 0-10%.

The high lease-adjusted leverage leaves little headroom for an
upgrade of the IDR in the near future.  Conditions for an upgrade
would include sustained deleveraging through debt repayment rather
than increase in EBITDA and cash generation.

On the contrary, evidence of a lack in sales growth and EBITDA
margin erosion coupled with a lease-adjusted leverage above 6.5x
and lease adjusted interest cover below 1.5x would cause a
negative rating action.

The final rating of the transaction remains subject to completion
of the deal, which is expected by October 2010, and all final
terms conforming to the information received so far.


PICARD GROUPE: S&P Assigns 'B' Long-Term Corporate Credit Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services said it has assigned its 'B'
long-term corporate credit rating to French frozen food retailer
Picard Groupe S.A.  The outlook is stable.

At the same time, S&P assigned the proposed ?300 million senior
notes due in 2018 issued by parent company LION/POLARIS Lux 2 S.A.
(Picard BondCo) a 'B-' issue rating, one notch below S&P's
corporate credit rating on Picard.  The recovery rating on the
proposed notes is '5', indicating S&P's expectation of modest
(10%-30%) recovery for noteholders in the event of a payment
default.

"The ratings reflect S&P's view of Picard's financial risk profile
as highly leveraged, following its ownership by private equity
groups since 2001, in addition to the proposed debt-financed
acquisition by Lion Capital, scheduled to close in October 2010,"
said Standard & Poor's credit analyst Michael Seewald.

After the transaction, Picard will have consolidated gross
financial debt of ?1.3 billion, including ?390 million in
mandatory redeemable preference shares with accruing interest.

In its analysis, S&P considers the MRPS in Picard's capital
structure as debt-like, because they feature accruing non-cash
preferred dividends.  Therefore, S&P expects the company's
leverage to exceed 8x adjusted debt to EBITDA by its fiscal
yearend in March 30, 2011.  Excluding the MRPS, S&P see Picard's
leverage at about 6x adjusted debt to EBITDA at fiscal yearend.

As a mitigating point, S&P believes that the noncash payment
nature of the MRPS supports the company's financial flexibility.
Under the contemplated structure, S&P believes Picard should be
able to maintain adjusted EBITDA cash interest cover of 2.0x-2.5x,
and to generate sustainable positive free cash flow.

S&P see Picard's highly leveraged financial profile in the context
of its business risk profile, which S&P considers fair.  This
reflects S&P's view of the company's positioning as a midsize
player in the mature French retail market, and its leading market
position in the domestic frozen food subsegment.

"The stable outlook reflects S&P's view that Picard will at least
sustain its good operating performance track record, based on its
leading position in the French frozen food market, despite current
still-fragile household consumption," said Mr. Seewald.

Moreover, S&P believes that Picard's operating resilience will
enable it to sustain positive free operating cash flow generation
and adequate liquidity, despite S&P's expectation of ongoing high
leverage.

S&P could lower the ratings if unexpected adverse operating
developments cause Picard's EBITDA cash interest cover to slip
below 1.5x, or if its free operating cash flow turns negative as
the result of operating shortfalls or higher-than-anticipated
investment.  S&P could consider upgrading Picard if its adjusted
debt to EBITDA ratio moves below 5x, which S&P nevertheless
consider to be a remote scenario.


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G E R M A N Y
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BAYERISCHE LANDESBANK: Examines Possible Merger With WestLB
-----------------------------------------------------------
Oliver Suess and Aaron Kirchfeld at Bloomberg News report that
Bayerische Landesbank and WestLB AG, two German state-owned
lenders that needed government aid during the financial crisis,
are examining a possible merger that would create the country's
third-biggest bank.

"The goal is to have a joint understanding by the end of the year
on whether a merger makes economic sense," Munich-based BayernLB
and Dusseldorf-based WestLB said in a joint e-mailed statement to
Bloomberg on Monday.

"Combining two weak lenders has never formed a strong one," said
Dirk Becker, a Frankfurt-based analyst at Kepler Capital Markets,
according to Bloomberg.  "WestLB is in a difficult situation as it
needs to find a buyer or merger partner to avoid being shut down
by the European Commission."

                              WestLB

Bloomberg says as part of its restructuring, WestLB has to sell
itself by the end of 2011 under conditions imposed by the EU
Commission.  The lender has received several bailouts, including
EUR3 billion (US$3.9 billion) in capital from Germany's Soffin
bank-rescue fund, Bloomberg discloses.  It set up a separate bad
bank to rid itself of about a third of its assets, including toxic
securities, Bloomberg notes.

                            BayernLB

According to Bloomberg, BayernLB, Germany's second-biggest state-
owned lender after Stuttgart-based Landesbank Baden-Wuerttemberg,
needed EUR10 billion in fresh capital and a EUR4.8 billion risk
shield for its portfolio of asset-backed securities from the
German state of Bavaria, which now owns 95.8% of the bank.

Bayerische Landesbank a.k.a BayernLB -- http://www.bayernlb.de/--
acts as the principal bank to the state of Bavaria and as the
central clearing house for the 75 Bavarian sparkassen (savings
banks).  Also serving corporations, national and local
governments, financial institutions, and real estate firms, the
bank offers a variety of services, including financing, security
underwriting and trading, and risk management.  It provides retail
and private banking services for individuals through its Internet
bank, Deutsche Kreditbank, and through banking subsidiaries in
central and southeastern Europe.  BayernLB's Landesbank Saar
subsidiary (75% owned) provides financing to small and midsized
businesses in the German state of Saarland and in France.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on March 4,
2010, Moody's Investors Service downgraded the ratings of
Bayerische Landesbank's profit participation certificates Series
11("Genussscheine Series 11") to Ca from Caa1 and Series 12
("Genussscheine Series 12") to Caa1 from B2.  In addition, the
Tier 1 securities issued by BayernLB Capital Trust I were
downgraded to Caa2 from Caa1.  All ratings carry a stable outlook.

The last rating action on BayernLB was on May 13, 2009, when
Moody's downgraded the bank's BFSR to D- from C-, the long-term
senior debt and deposit ratings to A1 from Aa2 and the
subordinated liabilities to A2 from Aa3 while the Prime-1 short-
term deposit rating was affirmed.


COMMERZBANK AG: Hires UBS & Citigroup as Equity Advisers
--------------------------------------------------------
Commerzbank AG hired UBS AG and Citigroup Inc. as equity advisers
to help gauge investor interest in the stock as it considers a
share sale, Aaron Kirchfeld and Jann Bettinga at Bloomberg News
report, citing four people with knowledge of the matter.

According to Bloomberg, the people said the securities firms were
selected in June as the Frankfurt-based lender weighs options to
help pay back state aid.  UBS and Citigroup are advising the firm
on relationships with existing and prospective investors, acting
similar to corporate brokers in the U.K., Bloomberg discloses.

Bloomberg relates Chief Executive Officer Martin Blessing
reiterated that a share sale is among options under consideration
to return EUR16.4 billion (US$21.5 billion) in government capital.
Bloomberg notes the people said that while management hasn't
decided when to sell new shares, the naming of equity advisers may
signal the lender is laying the groundwork for a capital increase.

Bloomberg notes the two banks said they haven't been hired to
arrange a stock offering.

Headquartered in Frankfurt am Main, Germany, Commerzbank AG --
http://www.commerzbank.com/-- is the parent company of a
financial services group active around the world.  The group's
operating business is organized into six segments providing each
other with mutually beneficial synergies: Private and Business
Customers, Mittelstandsbank, Central and Eastern Europe,
Corporates & Markets, Commercial Real Estate and Public Finance
and Treasury.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on May 6,
2010, Fitch Ratings affirmed Germany-based Commerzbank AG's Long-
term Issuer Default Rating at 'A+' with a Stable Outlook and
Short-term IDR at 'F1+'.  At the same time, the Individual rating
was upgraded to 'D' from 'D/E'.

Fitch disclosed downside risks to performance in 2010 remain
material given the bank's remaining substantial exposure to the
commercial real estate sector, its sizeable portfolio of
structured credit investments and exposure to the shipping
industry.  It is also exposed to central and eastern Europe, where
economic conditions remain difficult, and to other more risky
activities in leveraged and acquisition finance.  In addition,
there remains execution risk from the integration of Dresdner and
the re-positioning of its investment-banking activities.


HYPO REAL: Government Says Extra Staff Payments Not Inappropriate
-----------------------------------------------------------------
Rainer Buergin at Bloomberg News reports that the German
government said extra staff payments at Hypo Real Estate Holding
AG were "not inappropriate".

Hypo Real Estate's transfer of almost EUR200 billion (US$262
billion) of toxic assets into a so-called bad bank is one of "the
most complex transactions in German financial history," Finance
Ministry spokesman Michael Offer told reporters in Berlin on
Monday, according to Bloomberg.  "For this operation, the bank
needs experienced and good employees."

Bloomberg relates spokesman Walter Allwicher said in an e-mail on
Sept. 18 Hypo Real Estate paid out a total of EUR25 million in
one-time extra payments for last year.  According to Bloomberg,
Mr. Allwicher said executives were excluded from the payments,
which were in lieu of bonuses, and employees' total annual
compensation didn't exceed EUR500,000.

The payments are a "scandal," Reiner Holznagel, vice chairman of
the taxpayers' lobby group, said in Monday's Handelsblatt
newspaper, according to Bloomberg.  He blamed the government for
having failed to execute its supervisory duties, Bloomberg notes.

As reported by the Troubled Company Reporter-Europe on Sept. 13,
2010, the Soffin bank-rescue fund, as cited by Bloomberg News,
said Hypo Real Estate will get EUR40 billion (US$50.7 billion) of
state guarantees to safeguard restructuring efforts.  Bloomberg
disclosed Soffin said in a statement on Friday the infusion will
swell government guarantees to the Munich-based lender to EUR142
billion.

                     About Hypo Real Estate

Germany-based Hypo Real Estate Holding AG (FRA:HRXG) --
http://www.hyporealestate.com/-- is a German holding company for
the Hypo Real Estate Group.  It is an international real estate
financing company, combining commercial real estate financing
products with investment banking.  The Company divides its
operations into three business units: Commercial Real Estate,
which provides real estate financing on the international and
German market; Public Sector & Infrastructure Finance, and Capital
Markets & Asset Management.  Hypo Real Estate Group operates
through a number of subsidiaries, including, among others, Hypo
Real Estate Bank International AG that focuses on Pfandbrief-based
commercial real estate financing in all international markets, and
offers large-volume investment banking and structured finance
transactions; Hypo Real Estate Bank AG that focuses on the
commercial real estate financing and refinancing business in
Germany, and DEPFA Bank plc in Dublin, Ireland, which is a
provider of public finance.

                           *     *     *

As reported by the Troubled Company Reporter-Europe, Bloomberg
News said Chancellor Angela Merkel's government took over Hypo
Real Estate in 2009 after the lender's Dublin-based Depfa Bank Plc
unit couldn't raise financing when the bankruptcy of Lehman
Brothers Holdings Inc. froze credit markets.  Hypo Real was one of
seven banks to fail stress tests on 91 of Europe's biggest lenders
in July, according to Bloomberg.


WESTLB AG: Examines Possible Merger With Bayerische Landesbank
--------------------------------------------------------------
Oliver Suess and Aaron Kirchfeld at Bloomberg News report that
Bayerische Landesbank and WestLB AG, two German state-owned
lenders that needed government aid during the financial crisis,
are examining a possible merger that would create the country's
third-biggest bank.

"The goal is to have a joint understanding by the end of the year
on whether a merger makes economic sense," Munich-based BayernLB
and Dusseldorf-based WestLB said in a joint e-mailed statement to
Bloomberg on Monday.

"Combining two weak lenders has never formed a strong one," said
Dirk Becker, a Frankfurt-based analyst at Kepler Capital Markets,
according to Bloomberg.  "WestLB is in a difficult situation as it
needs to find a buyer or merger partner to avoid being shut down
by the European Commission."

                              WestLB

Bloomberg says as part of its restructuring, WestLB has to sell
itself by the end of 2011 under conditions imposed by the EU
Commission.  The lender has received several bailouts, including
EUR3 billion (US$3.9 billion) in capital from Germany's Soffin
bank-rescue fund, Bloomberg discloses.  It set up a separate bad
bank to rid itself of about a third of its assets, including toxic
securities, Bloomberg notes.

                             BayernLB

According to Bloomberg, BayernLB, Germany's second-biggest state-
owned lender after Stuttgart-based Landesbank Baden-Wuerttemberg,
needed EUR10 billion in fresh capital and a EUR4.8 billion risk
shield for its portfolio of asset-backed securities from the
German state of Bavaria, which now owns 95.8% of the bank.

                           About WestLB

Headquartered in Duesseldorf, Germany, WestLB AG (DAX:WESTLB)
-- http://www.westlb.com/-- provides financial advisory, lending,
structured finance, project finance, capital markets and private
equity products, asset management, transaction services and real
estate finance to institutions.  In the United States, certain
securities, trading, brokerage and advisory services are provided
by WestLB AG's wholly owned subsidiary WestLB Securities Inc., a
registered broker-dealer and member of the NASD and SIPC.
WestLB's shareholders are the two savings banks associations in
NRW (25.15% each), two regional associations (0.52% each), the
state of NRW (17.47%) and NRW.BANK (31.18%), which is owned by NRW
(64.7%) and two regional associations (35.3%).

                           *     *     *

As reported by the Troubled Company Reporter-Europe on May 6,
2010, Moody's Investors said the E+ bank financial strength rating
(BFSR, which maps directly to a B2 baseline credit assessment,
BCA), was affirmed and the outlook on this rating changed to
stable from developing.  Moody's affirmation of the E+ BFSR and
the change of its outlook to stable reflects that, despite
positive developments, the BFSR remains constrained by the bank's
weak franchise, which includes several core segments that do not
(or only insufficiently) contribute to group profits, thus
resulting in the bank's continued dependence on volatile,
wholesale-focused sources of income.  Moody's does not rule out
that the bank could be split up and unwound if efforts to divest
the bank were to prove unsuccessful.


* GERMANY: Soffin Bank-Rescue Fund to Close at Year-End as Planned
------------------------------------------------------------------
Rainer Buergin at Bloomberg News reports that the German Finance
Ministry on Thursday said that the country's Soffin bank-rescue
fund will close at the end of the year as planned.

"Measures using Soffin funds will be possible after Dec. 31 only
to support existing stabilization measures," the ministry said in
an e-mailed statement, according to Bloomberg.  "New measures
using Soffin funds won't be possible from 2011."

Bloomberg relates Finance Minister Wolfgang Schaeuble's spokesaman
Michael Offer on Sept. 15 said Mr. Schaeuble will "intensify his
attempts" to solve "problems" at Landesbanks after new capital
rules were agreed by a group of regulators and central bankers.

Separately, Bloomberg News' Hellmuth Tromm, citing Handelsblatt
newspaper, reports that Mr. Schaeuble is planning to hold a summit
on revamping the Landesbanks, the country's state-owned banks, at
the end of this month.

According to Bloomberg, Handelsblatt, citing unidentified finance
ministry officials, said participants will include finance
ministers from Germany's individual states and banking heads.


===========
G R E E C E
===========


* GREECE: German Finance Minister Rules Out Sovereign Default
-------------------------------------------------------------
Rainer Buergin at Bloomberg News reports that German Finance
Minister Wolfgang Schaeuble said he "doesn't think" that Greece
faces a sovereign default.

Bloomberg relates Mr. Schaeuble said in a speech in Mannhein his
proposal of orderly insolvency procedures for over-indebted euro
region members only refer to "future cases".


* GREECE: Prime Minister Rules Out Debt Restructuring Plan
----------------------------------------------------------
Daniel Kruger at Bloomberg News reports that Greece's Prime
Minister George Papandreou renewed the country's pledge to return
to international capital markets as soon as possible and ruled out
any plans to restructure debt.

"If we were going to default we would have decided that many
months ago," Bloomberg quoted Mr. Papandreou as saying on Sept. 14
during an interview with Betty Liu at the New York Stock Exchange.
"It would be wrong for the Greek economy, it would be wrong for
the European economy, it would make things worse in the end.
That's why we're taking the pain and making these structural
reforms, and we're on target."

The economy will likely contract 4% this year, according to
European Union, International Monetary Fund and government
forecasts, Bloomberg notes.

Bloomberg relates Greece imposed a series of austerity measures
this year, including wage and pension cuts and higher sales taxes
in exchange for a EUR110 billion (US$142 billion) rescue package
from the EU and IMF.  The country was shut out of the bond market
after a surge in its yields made the cost of selling long-term
debt prohibitive, Bloomberg recounts.  There is no timetable for
issuing debt, Mr. Papandreou said, according to Bloomberg.

Choosing to default rather than take austerity measures "could
have a contagion effect in the European Union and in the end it
would also be creating much more pain for the people of Greece,"
Mr. Papandreou, as cited by Bloomberg, said.


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


ALLIED IRISH: M&T May Give Up Stake to Santander Through Merger
---------------------------------------------------------------
Zachary R. Mider, Jacqueline Simmons and Jeffrey McCracken at
Bloomberg News report, citing people with knowledge of the matter,
that Banco Santander SA is in talks to acquire Allied Irish Banks
Plc's 22.5% stake in M&T Bank Corp.

Bloomberg adds the people also said that M&T may give up a
majority stake to Banco Santander through a merger with the
Spanish lender's U.S. unit, while retaining some elements of
control.  According to Bloomberg, the people said the banks are
also in informal talks with the U.S. Federal Reserve to gauge how
such a deal would be received, and expect to hear back within two
weeks.

Bloomberg notes the people said an agreement would allow Santander
to put its Sovereign Bank unit, which had pretax losses for the
past three years, under the management of M&T Chief Executive
Officer Robert Wilmers, 76, and his team.

M&T has a market value of more than US$10 billion, Bloomberg
discloses.  Together, M&T and Sovereign, which are about the same
size, would become the ninth-largest U.S. savings institution by
deposits, Bloomberg states.

Allied Irish Banks, p.l.c., together with its subsidiaries --
http://www.aibgroup.com/-- conducts retail and commercial banking
business in Ireland.  It also provides corporate lending and
capital markets activities from its head office at Bankcentre and
from Dublin's International Financial Services Centre.  The Group
also has overseas branches in the United States, Germany, France
and Australia, among other locations.  The business of AIB Group
is conducted through four operating divisions: AIB Bank Republic
of Ireland division, Capital Markets division, AIB Bank UK
division, and Central & Eastern Europe division.  In February
2008, the Group acquired the AmCredit mortgage business in the
Baltic states of Latvia, Lithuania and Estonia.  In September
2008, the Group also acquired a 49.99% shareholding in BACB.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on July 23,
2010, Moody's Investors Service affirmed AIB's long-term bank
deposit and debt ratings.  These are A1 for long-term bank
deposits and senior debt, A2 for dated subordinated debt, Ba3 for
undated subordinated debt, B1 for cumulative tier 1 securities and
Caa1 for non-cumulative tier 1 securities.  Moody's said the
outlook on these ratings is stable.  AIB's bank financial strength
rating of D, which maps to Ba2 on the long term rating scale, with
a positive outlook was unaffected by the rating action.



ANGLO IRISH: Bondholders Must Bear Costs to Restore Confidence
--------------------------------------------------------------
The Irish Times reports that investment bank Barclays Capital said
the Irish government could consider letting bond holders in Anglo
Irish Bank absorb part of the losses at the bank to restore
confidence in the economy.

The Irish Times relates the bank argues that one of the main
factors undermining confidence in the Irish economy is fear over
the government's ability to bear the EUR25 million-plus cost of
bailing out Anglo Irish.

The Irish Times says making bondholders bear some of these losses
could engender confidence if it was combined with the provision of
additional capital to viable banks such as Bank of Ireland and AIB
to reassure financial markets they were creditworthy.

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 Sept. 17,
2010, Fitch Ratings affirmed Anglo Irish Bank Corporation Ltd.'s
Individual Rating at 'E'.  It also affirmed its ratings on the
bank's Lower Tier 2 Subordinated Notes at 'CCC' and Tier 1 Notes
at 'C'.

As reported by the Troubled Company Reporter-Europe on Sept. 15,
2010, Moody's Investors Service said that it is maintaining its
review for possible downgrade on the A3/P-1 deposit and senior
debt ratings, and on the Ba1 subordinated debt rating of Anglo
Irish Bank Corporation.  The junior subordinated debt is
downgraded to C from Caa2.  The backed-Aa2 rating (stable outlook)
on the government guaranteed debt, the C rating on the bank's tier
1 securities and the E bank financial strength rating -- mapping
to Caa1 on the long-term scale -- are unaffected by this rating
action.


ANGLO IRISH: Irish Government Disputes FT Claim on Split Plan
-------------------------------------------------------------
Simon Carswell at The Irish Times reports that the Department of
Finance has disputed a claim by the Financial Times that it was
trying to bring the State's most distressed bank, Anglo Irish
Bank, "Lazarus-like", back to life as asserted in an editorial
earlier this week.

According to The Irish Times, the FT editorial claimed the Irish
government was "prolonging the uncertainty in the hope that zombie
banks will, Lazarus-like, come back to life".  The Irish Times
notes it argued the government's plan to split Anglo into a
funding bank and an asset recovery bank didn't clarify the final
cost of the bank to the State and "continues to make citizens
protect bondholders from their own folly".

The Irish Times relates in a replying letter published on
Thursday, the department's press officer said the FT's views were
"not in accordance with the facts" and that Anglo's loan book
would be "worked out over time in an asset-recovery bank".

According to The Irish Times, the department also disputed a
figure of EUR776 billion cited by the FT as the size of the
domestic banking balance sheet, saying the figure was EUR523
billion at the end of June.

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 Sept. 17,
2010, Fitch Ratings affirmed Anglo Irish Bank Corporation Ltd.'s
Individual Rating at 'E'.  It also affirmed its ratings on the
bank's Lower Tier 2 Subordinated Notes at 'CCC' and Tier 1 Notes
at 'C'.

As reported by the Troubled Company Reporter-Europe on Sept. 15,
2010, Moody's Investors Service said that it is maintaining its
review for possible downgrade on the A3/P-1 deposit and senior
debt ratings, and on the Ba1 subordinated debt rating of Anglo
Irish Bank Corporation.  The junior subordinated debt is
downgraded to C from Caa2.  The backed-Aa2 rating (stable outlook)
on the government guaranteed debt, the C rating on the bank's tier
1 securities and the E bank financial strength rating -- mapping
to Caa1 on the long-term scale -- are unaffected by this rating
action.


FAIRLEE PROPERTIES: Receiver Seeks Possession of Firm's Premises
----------------------------------------------------------------
The High Court has heard that ACC Bank court-appointed receiver,
Kieran Wallace, is seeking orders for possession of premises
belonging to Fairlee Properties Ltd, controlled by businessman and
Fianna Fail National Executive Member Jerry Beades,
BreakingNews.ie reports.  Mr. Wallace was appointed by ACC Bank as
receiver to Fairlee Properties in July after the firm failed to
repay a loan of EUR1.5 million.

According to the report, Mr. Wallace claims that Mr. Beades, also
the managing director of Fairlee Properties, is trying to
frustrate the receivership and has preventing him from taking
vacant possession of the properties.  However, opposing the move,
Mr. Beades denied the claims and told the court that 20 people
"face the prospect" of losing their jobs should the receiver take
possession of the properties and evict them, the report relates.

Mr. Beades, the report notes, accused ACC Bank of using the
Commercial Court as "an administrative tool" and claimed he has
been "frustrated and bullied" by the receiver.  Mr. Wallace is not
entitled to proceed as receiver as both his and the tenancy rights
of the various companies that occupy the premises have not been
sufficiently regarded, he added, the report relates.

The report says that Mr. Wallace is seeking High Court orders for
possession of the properties, which were charged by the defendant
to ACC Bank.

On September 20, 2010, Justice Frank Clarke at the High Court
agreed to Mr. Wallace's application to have the matter transferred
to the Commercial Court, the big business division of the High
Court.

Fairlee Properties is a property developer based in Ireland.


* IRELAND: Credit Unions Call for Establishment of Bailout Fund
---------------------------------------------------------------
Conor Keane at The Irish Examiner reports that the Irish League of
Credit Unions is to campaign for the establishment of an all-
Ireland fund to bail out credit unions when they get into
financial difficulty.

The Irish Examiner relates on Saturday more that 600 delegates
from the 505 credit unions affiliated to the ILCU voted
overwhelmingly to push for the a cross-border stabilization fund
to support all credit unions, including those not affiliated to
the ILCU.

According to The Irish Examiner, the private meeting in the
O'Reilly Hall at University College Dublin rejected all options
outlined by the Central Bank's Registrar of Credit Unions James
O'Brien in a consultation paper in June, proposing a statutory
bailout fund for credit unions that become insolvent.

The ILCU will submit its proposal on the Registrar's paper by next
Friday before making public comment, The Irish Examiner discloses.

The Irish Examiner can confirm that delegates at the special
general meeting in Dublin have adopted a strategy which puts them
on a collision course with the Registrar and involves opening up
the ILCU's existing EUR125 million savings protection scheme (SPS)
to all credit unions.

The ILCU delegates approved a draft submission to the Registrar
which rejects Mr. O'Brien's options and favors giving the ILCU
full ownership and control of any new scheme, imposing full
responsibility for funding the scheme on the credit union
movement, The Irish Examiner notes.


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


ALITALIA SPA: Mulls Up to 1,400 Job Cuts Under Restructuring Plan
-----------------------------------------------------------------
The China Post, citing Italian newspaper Corriere della Sera,
reports that Alitalia is considering cutting as many as 1,400 jobs
by the end of the year and may not renew the contracts of 600
temporary staff.

The China Post relates Corriere della Sera reported the head of
the airline, Rocco Sabelli, hinted at a reduction of 1,200 to
1,400 positions on Sept. 2 during a meeting with staff, in which
he discussed "outsourcing and improvements in efficiency" under a
restructuring plan.

According to The China Post, the ongoing restructuring plan calls
for Alitalia to reduce staff numbers to 12,600, a reduction of
1,400 from the current level.

The China Post notes the newspaper, citing a dossier presented by
Sabelli, reported the executive also discussed plans to save
EUR108 million (US$141 million) in the second half of the year by
selling off maintenance services and equipment.

Based in Rome, Alitalia S.p.A. -- http://www.alitalia.it/--
provides air travel services for passengers and air transport of
cargo on national, international and inter-continental routes,
including United States, Canada, Japan and Argentina.  The Italian
government owns 49.9% of Alitalia.

On August 29, 2008, Alitalia declared insolvency and commenced
extraordinary administration procedure at the Tribunal of Rome.
Italian Prime Minister Silvio Berlusconi appointed Mr. Fantozzi as
extraordinary commissioner.  Under the Bankruptcy Bill, the
Administrator has supplanted the directors and other management of
Alitalia.

As reported in the Troubled Company Reporter-Europe on November 7,
2008, Alitalia filed for Chapter 15 protection with the U.S.
Bankruptcy Court in the Southern District of New York.  Italy's
national airline experienced financial difficulties for a number
of years caused, in large measure, by a combination of competition
from low-cost air carriers, poor management and onerous union
obligations, according to papers filed with the court.

In the petition filed October 29, 2008, Prof. Augusto Fantozzi,
the appointed administrator, said the airline's financial
difficulties had been and exacerbated by spiraling fuel prices.

Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million in
2000 and 2001 respectively.  Alitalia posted EUR93 million in net
profits in 2002 after a EUR1.4 billion capital injection.  The
carrier booked annual net losses of EUR520 million in 2003, EUR813
million in 2004, EUR168 million in 2005, EUR625.6 million in 2006,
and EUR494.64 million in 2007.


NATIONAL FACTORING: Moody's Gives Stable Outlook on 'B3' Rating
---------------------------------------------------------------
Moody's Investors Service has changed to stable from negative the
outlook on the B3 long-term foreign and local currency deposit
ratings as well as the E+ Bank Financial Strength Rating of
National Factoring Company CJSC.  All global scale ratings are
affirmed at current levels.  At the same time, Moody's Interfax
Rating Agency, which is majority owned by Moody's, has affirmed
NFC's long-term National Scale Rating at Baa3.ru.

                         Rating Rationale

The change in outlook reflects the stabilization and improvements
of NFC's funding base, profitability, asset quality and franchise,
and hence the reduced likelihood of default of NFC.  Whilst the
bank recorded a significant level of non-performing loans that
accounted for ca.  20% of the factoring book, it has also reported
a reasonably high level of LLR/NPL coverage by 77% at year-end
2009.  Moody's also notes that NFC has remained profitable with
ROA at 1% in 2009, and asset quality has started to demonstrate an
improving trend thanks to improving conditions in the sectors of
the economy where the bank operates (trade).

Despite the repayment of a significant portion of liabilities in
2009, whereby NFC had to reduce its total assets by 43% compared
to year-end 2008, liquidity remained adequate and the bank was
able to meet all repayments thanks to (i) the short-term nature of
the factoring book issued under adequate risk standards, and (ii)
significant funding from sister Bank Uralsib (one of the top 10
banks in Russia as at end-H1-2010) and the Central Bank of Russia.
Although its factoring book is mainly being financed by equity and
Bank Uralsib funding, third-party funding sources have started to
emerge.  At the same time, despite a reduction in financing, NFC
retained a significant portion of its franchise and distribution
network, thus enabling it to maintain profitable operations, and
its factoring book has now started to grow.  Due to its de-
leveraging strategy, NFC now demonstrates fairly high capital
adequacy (with the Tier 1 ratio exceeding 51% at end-H1-2010)
which is more than adequate to cover credit and market risks, and
Moody's believes this will be maintained at adequate levels
despite planned growth.

At the same time, Moody's notes NFC's narrow franchise, and
highlights that the company's ability to significantly grow its
factoring book remains questionable due to intense competition and
the weak competitive advantage in the low-risk sectors.  In
addition, its funding base is potentially vulnerable to market
sentiment in the event of growing dependence on third-party
funding while asset quality remains vulnerable to potential
deterioration in the operating environment.

Moody's previous rating action on NFC was on 13 May 2009 when the
rating agency downgraded the company's long-term global local
currency ratings to B3 from B2 and changed the outlook on NFC's
ratings to negative from stable.

Based in Moscow, NFC is one of the largest companies operating in
the Russian factoring sector.  The company reported total
consolidated assets of US$172 million and total equity of US$86
million under audited IFRS at year-end-2009.  NFC and its sister
Bank Uralsib are controlled by the same owner.


===================
K A Z A K H S T A N
===================


EASTCOMTRANS LLP: Fitch Assigns 'B-' Issuer Default Ratings
-----------------------------------------------------------
Fitch Ratings has assigned Kazakhstan-based Eastcomtrans LLP Long-
term foreign and local currency Issuer Default Ratings of 'B-',
and a National Long-term Rating of 'B+(kaz)'.  The Outlook on the
ratings is Stable.

The ratings reflect ECT's strong position in the Kazakh rolling
stock market and its young wagon fleet and flexibility to address
variable demand through sub-lease contracts.  They also reflect
its lean business model supporting profitability as well as growth
prospects stemming from increasing domestic production of oil &
gas and an expected shortage of pipeline transport capacity in the
country.

These strengths are offset by ECT's business concentration on a
single large customer, which accounts for more than 80% of its
annual revenues.  Other constraints are key man risk (in the form
of a single owner), short lease contracts, a weak net book value
to secured debt ratio (expected to remain below 1.5x) and a short
revenue pipeline.  Fitch also notes ECT's small size relative to
international peers, while limited equity/liquidity back-up
support from its sole shareholder leaves ECT exposed to
unfavorable market shifts.

ECT is a well-positioned rolling stock provider within the Kazakh
oil & gas transportation sector with a fleet of over 3,000 wagons
serving, through leasing contracts, one of the country's largest
oil & gas producers, Tengizchevronoil (TCO, its secured notes are
rated 'BBB-'/Stable by Fitch).  ECT also provides freight-
forwarding services to the sea-port of Aktau.  Although the latter
activity is currently provided only as an ancillary service to
TCO, it is expected to grow on the back of increasing oil
production in the country.

Despite a strong market position and competitive advantages over
Russian competitors, concentration risk on TCO and a short
residual average lease life are the principal negative credit
factors challenging ECT's earnings visibility.  Lack of back-up
long term contracts and limited transparency on lease rates
contribute volatility to the company's cash flow.

The Stable Outlook reflects Fitch's view that the company is
comfortably placed at the current rating level.  Re-financing of
expensive debt facilities, lengthening of its debt maturity
profile and an improvement of its liquidity position, would be
seen by Fitch as credit-enhancing factors.  Diversification of the
customer base and /or an extension of ECT's principal lease
contracts would also be positive for the ratings.

ECT's debt (term loans and financing leases) is more than 90%
secured against its rolling stock.  The future contracted lease
rentals as of September 2010 amount to around 83% of total debt
outstanding at end-June 2010.  The current net book value to
secured debt value ratio is tight (1.3x as of FYE09).  Financial
flexibility is limited and liquidity pressure was exacerbated in
2009 by the local currency devaluation and increase of interest
rates.  ECT's liquidity position has improved in the first half of
2010, thanks to US$5.8m of new committed and available bank
facilities.

In 2009 ECT generated US$61.8m equivalent of revenues and US$43.6m
of EBITDA, while total Fitch adjusted gross debt (including
shareholder loans and six times multiple of annual operating
leases) amounted to US$125.8m.


===================
L U X E M B O U R G
===================


INTELSAT SA: Unit Launches Tender Offers for 9.25% Senior Notes
---------------------------------------------------------------
Intelsat S.A. said that its subsidiary, Intelsat Corporation, has
commenced a tender offer to purchase for cash any and all of its
outstanding US$658.1 million aggregate principal amount of 9 1/4%
Senior Notes due 2014 on and subject to the terms and conditions
set forth in Intelsat Corp's Offer to Purchase and Consent
Solicitation Statement dated September 16, 2010 relating thereto.

In connection with the 2014 Tender Offer, Intelsat Corp is also
soliciting the consent of the holders of the 2014 Notes to certain
proposed amendments to the indenture governing the 2014 Notes,
among other things, to eliminate substantially all of the
restrictive covenants, certain events of default and certain other
provisions contained in that indenture.

Intelsat Corp. has also commenced a tender offer to purchase for
cash any and all of its outstanding US$125.0 million aggregate
principal amount of 6 7/8% Senior Secured Debentures due 2028 on
and subject to the terms and conditions set forth in Intelsat
Corp's Offer to Purchase and Consent Solicitation Statement dated
September 16, 2010 relating thereto.

In connection with the 2028 Tender Offer, Intelsat Corp is also
soliciting the consent of the holders of the 2028 Notes to certain
proposed amendments to the indenture governing the 2028 Notes,
among other things, to eliminate substantially all of the
restrictive covenants, certain events of default and certain other
provisions contained in that indenture.

A full-text copy of the the tender offer documents is available
for free at http://ResearchArchives.com/t/s?6b62

                       About Intelsat S.A.

Based in Luxembourg, Intelsat S.A. provides fixed satellite
services worldwide.  Its unit Intelsat Corporation, --
http://www.intelsat.com/-- formerly known as PanAmSat
Corporation, is a global provider of video, corporate, Internet,
voice and government communications services with a fleet of 25
satellites in-orbit.

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

Intelsat S.A. reported revenue of US$635.3 million and a net loss
of US$180.6 million for the three months ended June 30, 2010.

Intelsat S.A., formerly Intelsat, Ltd., carries a 'Caa1' corporate
family rating from Standard & Poor's.


INTELSAT SA: Jackson Holdings Plans to Offer US$900 Mil. Sr. Notes
------------------------------------------------------------------
Intelsat S.A. said that its subsidiary, Intelsat Jackson Holdings
S.A., intends to offer US$900 million aggregate principal amount
of senior notes due 2020.

Intelsat Jackson's obligations under the notes will be guaranteed
by certain of its parent and subsidiary companies.  Part of the
net proceeds of the notes are expected to be contributed or loaned
to Intelsat Jackson's indirect subsidiary, Intelsat Corporation,
to be used to purchase any and all of Intelsat Corp's outstanding
US$658.1 million aggregate principal amount of 9 1/4% Senior Notes
due 2014 and any and all of Intelsat Corp's outstanding US$125.0
million aggregate principal amount of 6 7/8% Senior Secured
Debentures due 2028, in each case, that are validly tendered in
connection with the Intelsat Corp. tender offers and consent
solicitations announced today and to pay related fees and
expenses.  The remainder of the net proceeds from the offering are
expected to be used for general corporate purposes, which could
include the repayment, redemption, retirement or repurchase in the
open market of other indebtedness of Intelsat S.A. or its
subsidiaries.

                       About Intelsat S.A.

Based in Luxembourg, Intelsat S.A. provides fixed satellite
services worldwide.  Its unit Intelsat Corporation, --
http://www.intelsat.com/-- formerly known as PanAmSat
Corporation, is a global provider of video, corporate, Internet,
voice and government communications services with a fleet of 25
satellites in-orbit.

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

Intelsat S.A. reported revenue of US$635.3 million and a net loss
of US$180.6 million for the three months ended June 30, 2010.

Intelsat S.A., formerly Intelsat, Ltd., carries a 'Caa1' corporate
family rating from Standard & Poor's.


INTELSAT SA: Prices US$1 Billion of 7-1/4% Senior Notes Due 2010
----------------------------------------------------------------
Intelsat S.A. said that its subsidiary, Intelsat Jackson Holdings
S.A., priced US$1 billion aggregate principal amount of 7 1/4%
senior notes due 2020 at an issue price of 100.0%.

Intelsat Jackson's obligations under the notes will be guaranteed
by certain of its parent and subsidiary companies.  Part of the
net proceeds of the notes are expected to be contributed or loaned
to Intelsat Jackson's indirect subsidiary, Intelsat Corporation,
to be used to purchase any and all of Intelsat Corp's outstanding
US$658.1 million aggregate principal amount of 9 1/4% Senior Notes
due 2014 and any and all of Intelsat Corp's outstanding
US$125.0 million aggregate principal amount of 6 7/8% Senior
Secured Debentures due 2028, in each case, that are validly
tendered in connection with the Intelsat Corp tender offers and
consent solicitations announced today and to pay related fees and
expenses.  The remainder of the net proceeds from the offering
are expected to be used for general corporate purposes, which
could include the repayment, redemption, retirement or repurchase
in the open market of other indebtedness of Intelsat S.A. or its
subsidiaries.  The notes offering is expected to close on
September 30, 2010.

                       About Intelsat S.A.

Based in Luxembourg, Intelsat S.A. provides fixed satellite
services worldwide.  Its unit Intelsat Corporation, --
http://www.intelsat.com/-- formerly known as PanAmSat
Corporation, is a global provider of video, corporate, Internet,
voice and government communications services with a fleet of 25
satellites in-orbit.

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

Intelsat S.A. reported revenue of US$635.3 million and a net loss
of US$180.6 million for the three months ended June 30, 2010.

Intelsat S.A., formerly Intelsat, Ltd., carries a 'Caa1' corporate
family rating from Standard & Poor's.


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


BRITISH MIDLAND: Set to Begin Pay Talks With Unite Union
--------------------------------------------------------
Chris Jasper and Steve Rothwell at Bloomberg News report that
British Midland Airways is poised to begin pay talks with the
Unite union against a backdrop of threatened legal action by the
labor organization.

Talks over a pay freeze imposed since April 2009 will resume this
month, BMI spokesman Aaron Lupton on Monday said in a telephone
interview from the carrier's headquarters in Castle Donington,
central England, according to Bloomberg.

"Constructive talks between BMI and Unite union representatives
are ongoing," Bloomberg quoted Mr. Lupton as saying.

Unite wrote to BMI Chief Executive Officer Wolfgang Prock-Shauer
on Sept. 8 saying it would begin High Court proceedings against
the carrier if it failed to make progress on a new pay agreement
within 30 says, Bloomberg discloses, citing the union's
spokeswoman Pauline Doyle.

BMI and Unite agreed to defer a pay increase due for 2009-2010
after the recession undermined demand for air travel, Bloomberg
discloses.  According to Bloomberg, the union said the accord
doesn't apply to the current fiscal year that began on April 1.

                       Going Concern Doubt

As reported by the Troubled Company Reporter-Europe on April 15,
2010, The Financial Times said speculation that loss-making BMI
might be dismembered or sold off rose last year after its auditors
cast doubt on its ability to continue as a going concern.  The FT
disclosed Wolfgang Prock-Schauer, the new chief executive of BMI
British Midland, said he could not rule out a possible sale of BMI
at some point in the future, given the constantly changing state
of the aviation industry.  The FT noted Mr. Prock-Schauer
confirmed that, as part of its recovery plans, BMI had sold a
number of slots to other airlines in the Lufthansa group, which
recently acquired Brussels Airlines and Austrian Airlines, having
taken over Swiss in 2005.  Mr. Prock-Schauer, as cited by the FT,
said BMI is focusing on a GBP100 million (US$154 million)
restructuring plan aimed at turning the carrier round after it
suffered a GBP156 million loss in 2008 and an even worse deficit
in 2009.  The plan involves 800 redundancies, cutting the aircraft
fleet by 10 and eliminating unprofitable routes, according to the
FT.

British Midland Airways, which does business as bmi, --
http://www.iflybritishmidland.com/-- carries passengers to some
30 countries, mainly in the UK but also in continental Europe, the
Middle East, Asia, and Africa.  It operates a fleet of about 50
jets, including Airbus and Embraer models.  Low-fare subsidiary
bmibaby serves about 30 destinations in Europe with a fleet of
about 20 Boeing 737s.  bmi is a member of the Star Alliance global
marketing group, which includes UAL's United Airlines, Air Canada,
and Singapore Airlines.  In mid-2009, fellow Star Alliance member
and global airline giant Lufthansa acquired majority ownership of
bmi.


CONNAUGHT PLC: Staff Didn't Receive Promised Wage Back-Payments
---------------------------------------------------------------
Lisa Ettridge at The Gazette reports that Connaught plc staff are
struggling to pay their bills after promised wage back-payments
were not received.  The report relates that Connaught plc went
into administration this month leaving a question mark hanging
over around 40 Fylde coast jobs.

According to the report, the staff was hopeful when talks opened
to hand the firm's contracts to home builder Lovells.  However,
the report relates, the contracts have not yet been signed leaving
staff facing an uncertain future.

The report notes that despite assurances from Lovell that staff
wages would be paid on September 24, 2010, alarmed workers are
still facing empty bank balances and unanswered questions.

"We have been told Lovells are definitely taking us over, but we
just don't know who has got jobs.  It's very poor not to have been
paid for this amount of time and we deserve to know what's going
on," the report quoted a Connaught worker, Freddie Walton, as
saying.

The Gazette discloses that an unnamed Lovell spokeswoman said:
"The payroll is being administered by the Connaught administrator
KPMG.  The funds have been put in place by Lovell and we
understand that staff should receive payment."

                       About Connaught plc

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.


CONNAUGHT PLC: Repairs Backlog to Take Several Weeks to Shift
-------------------------------------------------------------
Matt Watts at Your Local Guardian reports that a repairs backlog
caused by the collapsed Connaught plc will take several weeks to
shift.

According to the report, Morrison, the firm which was already
responsible for 65% of the repairs program for council housing,
has been given the contract to do repairs on 8,000 homes after
Connaught plc went into administration on September 7.  The report
relates that Connaught Plc fired 24 of its Lambeth staff on
September 10, but Morrison was not installed as the new contractor
until the evening of September 13.

The report notes that the service gap has left a backlog of scores
of jobs, despite assertions given by Lambeth Living -- the company
managing Lambeth Council's housing stock -- the situation would be
carefully monitored.  The report relates that it has led to
criticism Lambeth Living and Lambeth Council were not ready for
the firm's collapse, despite weeks of reports of its financial
difficulty.

Lambeth Tory leader John Whelan said they had "sleepwalked" into
the situation, the report adds.

                       About Connaught plc

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.


FOUR SEASONS: Put Up for Sale Following GBP1.7 Million Losses
-------------------------------------------------------------
Belfast Telegraph reports that Four Seasons Hotel in Ballsbridge,
Dublin, is up for sale after posting losses of GBP1.7 million.

According to Belfast Telegraph, the hotel has been badly hit by
the recession and the decline in the number of American business
guests.

Despite implementing a cost-cutting plan this year to save GBP1.6
million, the hotel lost the same amount in profits last year,
Belfast Telegraph discloses.

Belfast Telegraph relates investors on Sunday night confirmed that
they had appointed property consultant CBRE to put the hotel on
the market.

It is understood that the Four Seasons hotel chain will continue
to run the hotel as part of its long-term management contract,
Belfast Telegraph notes.

Four Seasons Hotel is situated in Ballsbridge, Dublin.


GENERAL MOTORS: Work in Vauxhall's Factory in Luton Will Continue
-----------------------------------------------------------------
BBC News reports that the future of Vauxhall's factory in Luton
looks to have been secured after an announcement that work on vans
will continue.

According to BBC, Vauxhall and Renault said they will continue to
work together on the next generation of the Vivaro van.  The
existing joint venture had been due to run out in 2013, BBC notes.

There had been fears that the Vauxhall factory in Luton could
close under job cut plans outlined by owner General Motors in
November 2009, BBC discloses.

In May, workers at Vauxhall's plants in Luton and Ellesmere Port
agreed a two-year pay freeze as part of a Europe-wide
restructuring deal, BBC recounts.

                      About General Motors

With its global headquarters in Detroit, Michigan, General Motors
Company -- http://www.gm.com/-- is one of the world's largest
automakers.  GM employs 205,000 people in every major region of
the world and does business in some 157 countries.  GM and its
strategic partners produce cars and trucks in 31 countries, and
sell and service these vehicles through the following brands:
Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang,
Opel, Vauxhall and Wuling.  GM's largest national market is China,
followed by the United States, Brazil, Germany, the United
Kingdom, Canada, and Italy.  GM's OnStar subsidiary is the
industry leader in vehicle safety, security and information
services.

General Motors Co. is 60.8% owned by the U.S. Government.  It was
formed to acquire the operations of General Motors Corporation
through a sale under 11 U.S.C. Sec. 363 following Old GM's
bankruptcy filing.  The deal was closed on July 10, 2009, and Old
GM changed its name to Motors Liquidation Co.  Old GM remains
subject to a pending Chapter 11 reorganization case before the
U.S. Bankruptcy Court for the Southern District of New York.

At June 30, 2010, GM had $131.899 billion in total assets,
US$101.00 billion in total liabilities, US$6.998 billion in
preferred stock, and US$23.901 billion in stockholders' equity.

                     About Motors Liquidation

General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case
No. 09-50026).  The Honorable Robert E. Gerber presides over the
Chapter 11 cases.  Harvey R. Miller, Esq., Stephen Karotkin, Esq.,
and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP,
assist the Debtors in their restructuring efforts.  Al Koch at AP
Services, LLC, an affiliate of AlixPartners, LLP, serves as the
Chief Executive Officer for Motors Liquidation Company.  GM is
also represented by Jenner & Block LLP and Honigman Miller
Schwartz and Cohn LLP as counsel.  Cravath, Swaine, & Moore LLP is
providing legal advice to the GM Board of Directors.  GM's
financial advisors are Morgan Stanley, Evercore Partners and the
Blackstone Group LLP.

The U.S. Trustee has appointed an Official Committee of Unsecured
Creditors and a separate Official Committee of Unsecured Creditors
Holding Asbestos-Related Claims.  Lawyers at Kramer Levin Naftalis
& Frankel LLP serve as bankruptcy counsel to the Creditors
Committee.  Attorneys at Butzel Long serve as counsel regarding
supplier contract matters.  FTI Consulting, Inc., serves as
financial advisors to the Creditors Committee.  Elihu Inselbuch,
Esq., at Caplin & Drysdale, Chartered, represents the Asbestos
Committee.  Legal Analysis Systems, Inc., serves as asbestos
valuation analyst.

Bankruptcy Creditors' Service, Inc., publishes General Motors
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by General Motors Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


KENT CRICKET: Chairman Denies Rumors of Possible Administration
---------------------------------------------------------------
Kent Online reports that Kent Cricket Club chairman George Kennedy
has denied rumors it could go into administration, despite another
deficit this year.

According to Kent Online, the club's continued financial woes and
release bowler Amjad Khan as they could not afford to offer him a
new contract have led to rumors about Kent's long-term viability.

"It is nonsense.  I'm utterly convinced that will not happen.  The
loss will be lower this year and the next two years will be tough,
with the ground set to look like a huge building site," Kent
Online quoted Mr. Kennedy as saying.

Kent County Cricket Club is one of the 18 first class county
cricket clubs which make up the English domestic cricket
structure, representing the county of Kent.


LLOYDS BANKING: Chief Executive Eric Daniels to Retire Next Year
----------------------------------------------------------------
Patrick Jenkins and Sharlene Goff at The Financial Times report
that Eric Daniels has ended months of uncertainty about his future
by announcing his retirement as Lloyds Banking Group's chief
executive.

The FT relates Mr. Daniels, 59, said on Monday he intended to
retire "in a year's time" but senior bankers involved in the
process of finding his successor said he could step down within
five months.

Lloyds said it would search for a successor to Mr. Daniels both
internally and externally, the FT notes.

The FT says Mr. Daniels will leave the bank with no pay-off but is
contractually entitled to as much as 7.77 million shares from
ongoing long-term incentives, currently worth GBP6 million, as
well as an annual pension of GBP192,000.

Mr. Daniels, credited for years with implementing a stable,
sometimes boring strategy of steady growth, lost that reputation
during the crisis, when he acquired troubled rival HBOS, following
government pressure, according to the FT.

Mr. Daniels, who has led the bank for seven years, has defended
the takeover, insisting it would create a powerhouse in retail
banking, the FT notes.

Since then he has come under relentless fire from the bank's
shareholders who were keen to bring in a fresh management team
following the HBOS deal, and earlier this year fought off a
botched bid by Sir Win Bischoff, Lloyds' chairman, to oust him,
the FT recounts.

                  About Lloyds Banking Group PLC

Lloyds Banking Group PLC, formerly Lloyds TSB Group plc,
(LON:LLOY) -- http://www.lloydsbankinggroup.com/-- is a United
Kingdom-based financial services group providing a range of
banking and financial services, primarily in the United Kingdom,
to personal and corporate customers.  The Company operates in
three divisions: UK Retail Banking, Insurance and Investments, and
Wholesale and International Banking.  Its main business activities
are retail, commercial and corporate banking, general insurance,
and life, pensions and investment provision.  The Company also
operates an international banking business with a global footprint
in 40 countries.  Services are offered through a number of brands,
including Lloyds TSB, Halifax, Bank of Scotland, Scottish Widows,
Clerical Medical and Cheltenham & Gloucester.  On January 16,
2009, Lloyds Banking Group plc acquired HBOS plc.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on March 17,
2010, Standard & Poor's Ratings Services said that it lowered its
rating on a GBP56.472 million 6.475% preference share issue by
Lloyds Banking Group (A/Stable/A-1) to 'C' from 'CC' following the
first missed coupon payment.  The rating action was the
first of S&P's forthcoming rating actions on over 40 hybrid
instruments issued by Lloyds and related entities with
discretionary coupon payments.  According to S&P, each security
would be lowered to 'C' from 'CC' on the date of the first coupon
payment to be missed.


NATIONWIDE PUBLISHING: Easyfairs UK Buys Business Shows
-------------------------------------------------------
David Quainton at Event magazine reports that Business North West
and Business Midlands exhibition have been bought by Easyfairs UK
for an undisclosed sum.

According to Event magazine, the shows were purchased, along with
the brands, Web sites and data from the liquidator of Nationwide
Publishing, which owned the brands.

Nationwide Publishing is based in the United Kingdom.


STONE FIRMS: Might Go Into Administration
-----------------------------------------
Arron Hendy at Dorset Echo reports that about 60 workers at Stone
Firms Ltd's Bumpers Lane factory in Portland are hoping to find
out if they still have their jobs when administrators are expected
to be called in.  The report relates that the staff has had no
work this week since repossession notices went up at the factory.

According to the report, the Bumpers Lane factory and the offices
at Easton Street is presently closed.  "At the moment it's too
early to say as we've only just found out ourselves that it's
going into administration.  The business has got to look into its
options.  It's not gone into administration yet but it's likely to
today, [September 21, 2010]," the report quoted Neil Fuller,
director of Stone Firms, as saying.  The report relates that Mr.
Fuller could not say whether some workers would be retained but
said there was no work being carried out at the moment.

The report adds that Mr. Fuller said: "When we've had a chance to
talk to our administrators we'll see what our options are.  There
are no definite plans at the moment."

Stone Firms Ltd is a quarry company in Portland.


UK SPV: Fitch Assigns 'B' Rating on Limited Recourse Notes
----------------------------------------------------------
Fitch Ratings has assigned UK SPV Credit Finance plc's US$200m
9.375% issue of limited recourse notes, due on 23 September 2015,
a final Long-term rating of 'B' and a Recovery Rating of 'RR4'.

The notes are to be used solely for financing a loan to Ukraine-
based PJSC CB PRIVATBANK.


VAMOSA LIMITED: Collapsed Into Administration
---------------------------------------------
Ian McConnell at The Herald Scotland reports that Vamosa Limited,
which was among the first recipients of funding under the previous
Government's flagship Capital for Enterprise scheme, has collapsed
into administration.

The report relates that joint administrator Fraser Gray, partner
of accountancy firm Zolfo Cooper, cited "quite a lot of creditor
pressure" in the run-up to his appointment to Vamosa Limited, with
a number of winding-up petitions being considered.

According to the report, Mr. Gray said that directors of the
company had with the agreement of Maven Capital Partners, the
Glasgow private equity firm which manages the GBP1 million of
Capital for Enterprise funds invested in the software business,
decided to place the company in administration to protect it while
a buyer was sought.

The Herald Scotland notes that Vamosa Limited last year obtained
GBP1 million of mezzanine finance from the Capital for Enterprise
fund, set up by former Business Secretary Lord Peter Mandelson to
assist viable and promising companies struggling to obtain bank
funding because of the credit crisis.

Mr. Gray, the report relates, confirmed that he had been appointed
as joint administrator of Vamosa Limited on September 9, 2010.
There had been 11 redundancies among the 19-strong workforce at
this operation, leaving a core of eight people to service existing
customer contracts while he tries to sell the business as a going
concern, he said, the report relates.

Meanwhile, the Herald Scotland discloses that Mr. Gray said that
the wholly-owned US subsidiary of Vamosa Limited, which employs
about 25 people, continued to trade as normal.  However, the
report says Mr. Gray emphasized that, as administrator of the
parent company, he would be pursuing a sale of both the Glasgow-
based operation and the 100% shareholding in the US subsidiary, to
a single buyer or to different parties.

Mr. Gray, who is seeking firm indications of interest in Vamosa
Limited from potential buyers this week and cited demand from
several parties for information memoranda on the business, said it
was "too early to say" whether or not there would be full or
partial recovery of the GBP1 million of Capital for Enterprise
funds, the report adds.

Vamosa Limited is a software company in Glasgow.


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


* XTRACT EUROPE: Hires James Slessenger to Lead London Team
-----------------------------------------------------------
Xtract Europe has hired James Slessenger to head up its legal team
in London.  Mr. Slessenger brings over 25 years of experience in
the European loan market, including 12 years as a partner at
Herbert Smith LLP, one of London's leading international law
firms.

Xtract Europe successfully launched its European High Yield and
Convertible bond covenant analysis service in May of this year.
Mr. Mr. Slessenger has been added to the team to build on the
strength of the High Yield bond service and provide the expertise
for the launch of Xtract Europe's Bank Loan covenant service.

Mike Knox, Founder of Xtract Research LLC said "The hiring of
James will be extremely significant for our European business.
James is one of the most experienced debt finance lawyers in the
market and will offer our clients great insight into covenant
related issues in high yield through to distressed situations,
restructurings and bank debt."

During Mr. Slessenger's time at Herbert Smith, he was most notably
the lead partner on the debt side for Eurotunnel on the
restructuring of its GBP9.5 billion debt that had started in
September 1995 and was completed in May 1998.  He was further
involved in Eurotunnel in 2001 and 2002 on innovative repackaging
of its post-1998 debt instruments.  He has worked on numerous
other debt financings, many of them multi-layered, in the UK,
France and Germany where he was seconded for part of his career
and has substantial cross border knowledge.

Xtract Europe is a division of Xtract Research LLC, a leading
provider of covenant oriented fixed income research and data.
Xtract has a significant presence in the United States,
particularly in the syndicated loan space through its partnership
with the LSTA.  Xtract was acquired earlier this year by an
affiliate of the FT Group in order to further its expansion into
Europe.   Xtract's clients consist of many of the world's largest
hedge funds, investment managers, insurance companies, private
equity firms and investment banks.


                            *********

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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