TCREUR_Public/101008.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                    E U R O P E

        Friday, October 8, 2010, Vol. 11, No. 199

                      Headlines



F R A N C E

REXEL SA: S&P Puts 'B+' Corp. Rating on CreditWatch Positive


G E R M A N Y

CONTINENTAL AG: Moody's Assigns 'B1' Rating on Secured Notes


I R E L A N D

ALLIED IRISH: Sale of 22.4% Stake in M&T to Raise US$2 Billion
ALLIED IRISH: Robert Wilmers Resigns From Board


I T A L Y

PROGRAMMA DINAMICO: Fitch Affirms Ratings on Notes at 'Csf'
WIND TELECOMUNICAZIONI: Fitch Puts Low-B Ratings on Positive Watch


L U X E M B O U R G

KERNEL HOLDING: Fitch Assigns 'B' LT Issuer Default Ratings


N E T H E R L A N D S

SIRENS BV: Fitch Affirms 'Bsf' Ratings on Four Tranches


R U S S I A

VIMPELCOM OJSC: Weather Deal Cues Moody's Review on 'Ba2' Ratings
* Fitch Assigns 'BB' Rating on Russian City of Krasnoyarsk


S P A I N

AYT COLATERALES: Moody's Puts (P) C (sf) Rating on Class D Notes


T U R K E Y

* Moody's Gives Positive Outlook on Istanbul's 'Ba2' Rating
* Moody's Gives Positive Outlook on Turkey's 'Ba2' Rating


U N I T E D   K I N G D O M

BGROUP: Goes Into Liquidation as Revenues Continue to Drop
BMI BRITISH: Going Concern Doubt Remains; Losses Widen in 2009
BRITISH AIRWAYS: Passenger Traffic Up 1.3% in September 2010
CROWN CURRENCY: MoneySavingExpert.com Hires Insolvency Expert
CRU INVESTMENT: CISX Freezes 11 Arch Cru Sub-Funds

FLOOKS HAULAGE: In Liquidation; Purnells Appointed as Liquidators
LIVERPOOL FOOTBALL: Board Willing to Sell Club for GBP300 Million
TUI AG: TUI Travel's Holiday Bookings Back on Track


* BOOK REVIEW: Dangerous Dreamers - The Financial Innovators


                    *********


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F R A N C E
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REXEL SA: S&P Puts 'B+' Corp. Rating on CreditWatch Positive
------------------------------------------------------------
Standard & Poor's Ratings Services said that it has placed its
'B+' long-term corporate credit rating on France-based electrical
parts distributor Rexel S.A. on CreditWatch with positive
implications.  The recovery rating remains unchanged at '4'.

The 'B' short-term corporate credit rating was affirmed.

"The CreditWatch placement reflects Rexel's operating performance
for the first half of 2010 -- which was somewhat more resilient
than S&P had anticipated -- and its expectations that Rexel should
sustainably be able to meet credit metrics compatible with a
rating above its current 'B+'," said Standard & Poor's credit
analyst Eric Tanguy.  

For the first six months of 2010, the company achieved operating
income of EUR214 million, representing a 3.7% margin on sales, a
noticeable improvement against the relatively low 2.8% reported in
2009.  EBITA margin for first-half 2010 strengthened to 4.5%, from
4.2% in 2009.  

The company reported gross debt of EUR2.8 billion at end-June
2010.  

Credit metrics on a net basis improved in first-half 2010,
reflecting the relative upturn in profitability measures.  S&P's
adjusted debt to EBITDA for the company declined to 5.0x, from
5.6x at year-end 2009; adjusted funds from operations to debt
reached 11.6%.

At this stage, S&P anticipates key credit measures to continue
strengthening slightly this year.  

S&P aims to resolve the CreditWatch placement before the year end,
after further discussion with Rexel's management.  S&P's
assessment will reconsider primarily the financial risk profile of
the company in light of its expectations about future performance
and Rexel's financial policy.  S&P will assess whether S&P thinks
Rexel can sustainably maintain credit metrics commensurate with a
rating in the 'BB' category--most likely in the lower part of the
category.  


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G E R M A N Y
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CONTINENTAL AG: Moody's Assigns 'B1' Rating on Secured Notes
------------------------------------------------------------
Following the review of final documentation Moody's Investors
Service has assigned a definite B1 rating to Continental's both
tranches of secured notes of EUR625 million each maturing 2016 and
2018 issued by Conti-Gummi Finance B.V. guaranteed by Continental
AG and certain subsidiaries of Continental AG.  The corporate
family rating of Conti remains at B1 with a stable outlook.  

                   Ratings Rationale

Proceeds of the notes issuance will be used to refinance part of
the outstanding pro-forma debt of EUR6.0 billion (as per June 30,
2010 taking into account the impact of the usage of the net
proceeds from the issuance of the EUR750 million notes issued in
July 2010 and the EUR1 billion notes issued in September 2010)
drawn under the company's syndicated credit facilities due August
2012.  Given the maturity of 6- and 8-years the notes further
lengthen the uneven debt structure of Conti as well as further
reduce the still high reliance on bank financing.  

Conti's short term liquidity is good reflecting limited debt
maturities for the next 12 months, a sizable cash position (more
than EUR1.2 billion as of June 30, 2010) and notable availability
under its revolving credit facility as well as cash outflows for
capital expenditure.  The headroom under the company's covenant
test is comfortable following the successful rights issue which
was used to reduce indebtedness and the re-setting agreed with its
lending banks in December 2009.  

Both secured senior notes will benefit from the same security
package as the currently outstanding secured bonds and the
existing syndicated credit facility and rank effectively pari
passu with this debt.  All this debt will benefit from guarantees
of subsidiaries of Continental AG representing more than 75% of
consolidated revenues, assets and EBITDA.  Moreover, the notes
will also be secured by shares of operating subsidiaries.  Under
Moody's Loss Given Default Methodology this results in the
provisional B1 rating for senior secured notes which is at the
same level as the existing bond rating as well as the corporate
family rating of Conti.  

Assignments:

Issuer: Conti-Gummi Finance BV

  -- Senior Secured Regular Bond/Debenture, Assigned 51 - LGD4 to
     B1

                Regulatory Disclosures

Information sources used to prepare the credit rating are these:
parties involved in the ratings, public information, 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 maintaining 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 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.  


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I R E L A N D
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ALLIED IRISH: Sale of 22.4% Stake in M&T to Raise US$2 Billion
--------------------------------------------------------------
Joe Brennan at Bloomberg News reports that Allied Irish Banks Plc,
the lender being taken over by Ireland's government, said it will
raise about US$2 billion from the sale of its 22.4% stake in U.S.
lender M&T Bank Corp. to meet stricter capital requirements.

Bloomberg relates the Dublin-based bank said in a statement late
Tuesday it will offer 26.7 million notes at US$77.50 apiece that
will be exchanged for shares in M&T by Nov. 15.  It plans to hold
a meeting of shareholders on Nov. 1 to seek their approval,
Bloomberg discloses.

The government said last week it would take majority ownership of
Allied Irish, which has been directed by the nation's financial
regulator to raise EUR10.4 billion by the year-end to meet new
capital standards, Bloomberg recounts.

According to Bloomberg, the bank said exchange of the notes,
consisting of Allied Irish debt, into Buffalo, New York-based M&T
shares will be mandatory.  The proposed disposal is expected to
generate about EUR900 million of "equivalent equity capital," the
bank, as cited by Bloomberg, said.

Morgan Stanley and Citigroup Inc. are underwriters for the notes
offering, Bloomberg discloses.

Allied Irish Banks, p.l.c., together with its subsidiaries --
<http://www.aibgroup.com/>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.


ALLIED IRISH: Robert Wilmers Resigns From Board
-----------------------------------------------
Bloomberg News reports that Allied Irish Banks Plc said Robert
Wilmers resigned from the board, effective immediately.

According to Bloomberg, Kieran Crowley also indicated his
intention to resign from the board on Oct. 13.

Allied Irish Banks, p.l.c., together with its subsidiaries --
<http://www.aibgroup.com/>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.


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I T A L Y
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PROGRAMMA DINAMICO: Fitch Affirms Ratings on Notes at 'Csf'
-----------------------------------------------------------
Fitch Ratings has affirmed Programma Dinamico S.p.A.'s notes, due
May 14, 2012, and assigned a Recovery Rating:

  -- EUR4,542,000, Programma Dinamico S.p.A.'s (CSFB PV2) notes,
     due 14 May 2012, (ISIN IT0003288120): affirmed at 'Csf';
     assigned a recovery rating of 'RR2'.  

Following the default of two of the transaction's three charged
assets, Eolo 2006-2 and Eolo 2006-3, on 24 September 2009, Fitch
views a default of the transaction as inevitable (as per Fitch's
first dollar of loss rating definition).  The charged assets were
purchased with the initial proceeds from the transaction's
issuance.  Losses have been realized on the charged assets;
therefore, regardless of how the credit default swap portfolio
performs, a loss on the rated note at maturity seems inevitable.  
The remaining charged asset is rated 'AAA' by Fitch.  

The vast majority of rated notes have been redeemed at the option
of the noteholders.  Approximately EUR4.5 million of the initial
EUR230 million of notes is currently outstanding.  

The remaining total amount of charged assets, EUR3.4 million, is
currently sufficient to redeem approximately 75% of the remaining
par amount of EUR4.5 million.  Further credit losses on the credit
default swap or a loss on the remaining charged asset could push
the recovery lower.  The charged assets are supplemented by an
equity option that has been disregarded in Fitch's analysis.  

Programma Dinamico S.p.A. is a joint stock company with limited
liability incorporated under the laws of Italy.  At close in May
2002, it issued EUR230 million credit-linked notes due 2012.  It
used the proceeds to collateralize a credit default swap with
Credit Suisse International.  The swap initially referenced an
equally weighted reference portfolio of 284 corporate reference
entities.

Fitch has assigned an Issuer Report Grade of 'One Star' to the
issuer to reflect its poor investor reporting.  Fitch does not
receive any regular reporting for this transaction.  It only
receives ad hoc notifications such as buyback notices and
information on charged assets upon request.  


WIND TELECOMUNICAZIONI: Fitch Puts Low-B Ratings on Positive Watch
------------------------------------------------------------------
Fitch Ratings has placed Wind Telecomunicazioni Spa on Rating
Watch Positive.  Debt issued by Wind Finance SL S.A, Wind
Acquisition Finance S.A and Wind Acquisition Holdings Finance Spa
have also been put on RWP.  This follows VimpelCom's announced
plan to acquire Weather Investments, which is a 100% shareholder
in Wind.  A full breakdown of ratings is provided at the end of
this commentary.

VimpelCom Ltd., a telecoms company primarily operating in Russia
and CIS, will acquire Weather Investments except some minor assets
that are to be spun off.  As a result of this transaction,
VimpelCom will acquire full control over Wind.  VimpelCom is
seeking to turn itself into an integrated international telecoms
operator which makes Wind - the third largest mobile operator and
the largest fixed-line alternative operator in Italy - a strategic
asset for VimpelCom.  

VimpelCom estimates that pro-forma leverage, as of end-June 2010,
would have risen to 2.3x-2.5x net debt/EBITDA.  Notwithstanding
the acquisition VimpelCom will remain strongly free cash flow-
generative, retaining substantial flexibility to deleverage to its
target below 2x net debt/EBITDA.  VimpelCom's credit profile is
also likely to remain significantly stronger than that of Wind.  

Wind creditors will be entitled to a change of control put option
if the transaction proceeds as planned.  However, in view of
VimpelCom's stronger credit quality than that of Wind stand-alone,
creditors may economically benefit if they do not exercise,
mitigating refinancing risks for VimpelCom.  VimpelCom and Weather
Investment will be seeking waivers from Wind creditors in the
coming weeks.

Wind will remain a partially ring-fenced entity protecting
creditors from excessive shareholder distributions but also
limiting VimpelCom's access to Wind's cash flows which, Fitch
believes, VimpelCom is likely to be interested in changing.  
VimpelCom did not disclose its strategy regarding debt at Wind
level.  However, given Wind's strategic importance to VimpelCom
and likely cross-default provisions in VimpelCom's debt (Wind will
be consolidated into VimpelCom's accounts), VimpelCom is likely to
help address refinancing issues at Wind level and at some point
may engineer a switch to funding at the parent level as it seeks
to reduce interest payments across the group.  

The transaction is subject to regulatory approvals, and both
VimpelCom and Weather Investments shareholders can abandon this
deal at no penalty.  Fitch will resolve the watch once the
transaction is finalized and there is more information on
VimpelCom's strategy regarding Wind's debt and how much debt has
been accelerated due to change of control provisions.  

These ratings have been put on RWP:

  -- Wind Telecomunicazioni Spa's Long-term Issuer Default Rating
     'BB-', Short-term IDR 'B', senior secured facilities 'BB+'

  -- Wind Finance SL S.A's second lien facilities 'BB+'

  -- Wind Acquisition Finance S.A's senior notes 'B+'

  -- Wind Acquisition Holdings Finance S.A.'s senior PIK notes 'B'


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KERNEL HOLDING: Fitch Assigns 'B' LT Issuer Default Ratings
-----------------------------------------------------------
Fitch Ratings has assigned Luxembourg-incorporated agricultural
commodity producer and exporter Kernel Holding S.A. Long-term
foreign and local currency Issuer Default Ratings of 'B' and 'B+',
respectively.  Fitch has also assigned Kernel a National Long-term
rating of 'AA+'(ukr).  The Outlooks for the Long-term IDRs and
National Long-term rating are Stable.  

The Long-term IDRs reflect the vertically integrated nature of the
company, its conservative approach to trading market risk, as well
as its track record of maintaining stable operating profit margins
of approximately 16-17% in the past three financial years despite
swings in market prices over the period FY07-FY09.  Additionally,
leadership market positions in the Ukraine in the concentrated
industries of grain procurement and export, bottled sunflower oil
sold domestically and exported bulk oil; a well balanced position
between cash flow and debt by currency; as well as adequate
liquidity to deal with seasonal working capital peaks, support the
rating.  

Conversely, the ratings also take into account the high reliance
of Kernel's sales on a limited number of large customers, high
seasonal peaks for working capital and the company's growth
ambitions, which could cause an increase of debt.  Also, given its
reliance on sourcing products in a single country, the company's
profits are vulnerable in the event of a very weak harvest for
grains and sunflower seed in the Ukraine, and are also vulnerable
to a drop in international prices of grains and sunflower oil.  

Since 2006, the company has successfully grown the scale of its
business by adding to its grain trading businesses an important
network of silos in the fertile central-eastern part of Ukraine
and two port facilities with direct access to the Black Sea.  This
infrastructure enables Kernel to better control both the
procurement of grain and sunflower seed in the country as well as
the export of grains and sunflower oil.  Kernel is by far the
largest producer of sunflower oil in the country, as it is close
to reaching 2.3 million tonnes of sunflower seed annual crushing
capacity in 2011.  This manufacturing capacity, which operates for
the export market of bulk product and for the local distribution
of bottled oil for family consumption, gives the company pricing
power and stability on profits.  

With FY10 (ending 30 June 2010) net lease adjusted leverage of
1.8x, Op. EBITDAR to fixed charges of 5.4x and an expected
improvement in these metrics during FY11, the group's financial
risk is considered average for its ratings.  FY11 Op. EBITDAR
should benefit from the first time full consolidation of the
acquisition of Allseeds (completed in March 2010) and the gradual
coming on-stream of the Bandurka crushing plant, thus potentially
raising Op. EBITDAR to around US$230-US$250m (FY10: US$190m).  

The ratings assigned incorporate headroom for moderate acquisition
spending and for the seasonal working capital peaks that the
company typically experiences in December and March due to the
build-up of sunflower seed inventories.  Fitch calculates that the
effect of working capital on debt at these dates can be as much as
1.0x annual EBITDA higher than fiscal year-end levels.  In
assessing the effect of these seasonal debt requirements on
Kernel's leverage, the agency takes some comfort from the
company's practice of signing a large proportion of annual oil
sales contracts in conjunction with its oilseed purchases taking
place between September and March.

The Long-term foreign and local currency IDRs could benefit from a
permanent reduction of gross lease adjusted leverage below 1.0x
(excluding seasonal working capital-related debt peaks),
maintenance of the current integrated business profile,
reassurance that the company can maintain a good degree of
positive annual FCF generation despite capex plans.

A negative rating action could follow if gross lease adjusted
leverage rises above 2.5x, as a result of debt-funded acquisition
activity or, above 3.5x if calculated during the company's
seasonal inventory peaks.  Alternatively, a similar increase of
leverage derived from a shock in the commodity markets and not
normalizing back to credit metrics commensurate with the current
'B+' in the following 12 months, or a shortage of liquidity with
respect to the company's projected peak requirements of working
capital could also lead to a downgrade.  


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SIRENS BV: Fitch Affirms 'Bsf' Ratings on Four Tranches
-------------------------------------------------------
Fitch Ratings has affirmed all outstanding tranches of SIRENS B.V.
Series 2007-2, (Cargo II) notes as listed below.  The transactions
are commodities-linked credit obligations referencing 17 diverse
commodities through a portfolio of 100 long and 100 short trigger
swaps.  

-- AUD4 million class B1.a due 2012: affirmed at 'Bsf'; 'LS-5'
-- US$31.5 million class B1.c due 2012: affirmed at 'Bsf'; 'LS-5'
-- EUR50,000 class B1.d due 2012: affirmed at 'Bsf'; 'LS-5'
-- EUR5 million class B1.e due 2012: affirmed at 'Bsf'; 'LS-5'

The affirmation follows the stable performance of the transaction.  
Although none of the triggers are currently in breach, extreme
price movements on just one commodity could cause the transaction
to underperform.  There is significant exposure to base metals in
this transaction and they have not performed very well in the
recent past.  Base metals such as copper (11 long triggers in this
transaction), lead (14 long triggers), nickel (15 long triggers),
tin (13 long triggers) and zinc (14 long triggers) fell to their
lowest levels (since deal closing) in Q4 2008 to Q1 2009.  Prices
of these base metals have since somewhat recovered; however, with
1.5 years remaining to maturity, a significant number of triggers
could be in breach if prices were to fall back to similar levels.

At closing, the issuer entered into commodities-linked trigger
swaps with the swap counterparty, Credit Suisse International
(CSI, 'AA-'/Outlook Stable/'F1+'), based on the provisions of the
2005 ISDA commodity definitions.  Each trigger swap references a
specific percentage of the closing price level of a single
commodity, as specified in the documentation.  The trigger swap
portfolio comprises: (i) 100 European-style trigger swaps, for
which the issuer sold protection to CSI (the long portfolio); and
(ii) 100 European-style trigger swaps, for which the issuer bought
protection from CSI (the short portfolio).  Interest on the notes
is derived from swap payments made by CSI under the agreement of
the portfolio commodities swap.  Investors are exposed to the risk
of large negative price movements on the reference commodities
with long triggers.  

The ratings address the payment of timely interest and ultimate
repayment of principal by final maturity, according to the
transaction documentation.

Fitch has assigned an Issuer Report Grade of 'One Star' to the
issuer to reflect its poor investor reporting.  Fitch does not
receive any regular reporting for this transaction.  It only
receives information from the arranger on redemptions and charged
assets upon request.  


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VIMPELCOM OJSC: Weather Deal Cues Moody's Review on 'Ba2' Ratings
-----------------------------------------------------------------
Moody's Investors Service has placed the Ba2 ratings of VimpelCom
OJSC on review for possible downgrade in response to the recent
announcement about the merger between VimpelCom Limited (which
owns VimpelCom OJSC) and Weather Investments SpA (not rated) to
create the world's fifth-largest mobile telecoms company by number
of subscribers.  At the same time, Moody's has also taken these
rating actions on the rated subsidiaries of Weather: the B2 rating
of Orascom Telecom Holdings s.a.e. has been placed on review with
direction uncertain, having previously been on review for
downgrade; and the outlook on the Ba3 rating of Wind
Telecomunicazioni SpA has been changed to developing from
negative.  

Under the terms of the transaction with Weather, VimpelCom Limited
will own 51.7% of Orascom Telecom and 100% of Wind in exchange for
a cash consideration of US$1.8 billion and a 20% economic interest
in the enlarged VimpelCom group.  The cash considerations will be
financed from VimpelCom's existing cash and new debt.  A number of
assets -- including the 35% stake in ECMS (Egypt), 75% stake in
Koryolink (North Korea) and some of Orascom Telecom's sub-sea
cable and internet portal assets, also including the Libero
internet portal, Wind International Services, and one of Wind's
sub-sea cable operation -- will be de-merged after the transaction
has closed.  

Although the financing structures at Wind and Orascom Telecom have
not yet been clearly defined, Moody's notes that the merger
announcement stipulates the retention of existing ring-fencing
structures as well as the refinancing of certain debt within the
Weather group.  Specifically, VimpelCom plans to refinance part of
Orascom Telecom's holding company debt with an Intercompany loan.  
In addition, Moody's understands that the transaction will trigger
certain change of control provisions over existing debt within the
Weather group and that waivers will consequently be sought.  

The companies expect the transaction to be completed in Q1 2011,
and the de-merger of Orascom Telecom and Wind assets to be
finalized by Q3 2011.  

Moody's review for the possible downgrade of VimpelCom's ratings
will focus on the extent to which the numerous benefits of the
deal for VimpelCom will offset the potentially higher business
risk associated with some of Weather's assets, as well as the
financial implications for VimpelCom OJSC of the funding and
future cash flow needs within the group structure.  The merger
will be positive for VimpelCom in terms of the enhancement of the
scale and scope of the combined operations, the exposure of
VimpelCom to an international footprint and the potential
synergies and deleveraging to be achieved.  Moreover, Moody's also
notes that the transaction is priced at relatively moderate
multiples compared with recent industry deals.  

Moody's decision to change the outlook on Wind's ratings to
developing from negative reflects the potential benefits that Wind
will derive from being part of a more stable and financially sound
telecoms group.  The developing outlook also reflects the
company's continued limited financial flexibility and headroom
within the existing rating category.  Moody's has decided not to
place the group on review at this stage in light of the
announcement that the existing financial arrangements (and ring-
fencing) within Wind will be retained.  Moody's will continue to
closely monitor the operating performance of the company going
forward and will resolve the outlook once there is sufficient
clarity on the progress of the transaction.  

Moody's decision to change Orascom Telecom's status from being on
review for possible downgrade to being on review with direction
uncertain reflects the potential for wider rating changes compared
to Wind.  Orascom Telecom's previous status of review for possible
downgrade was based on concerns about the immediate parent's (OTH)
liquidity profile, but the change in the review status indicates
that these concerns could potentially be alleviated upon the
completion of the transaction and associated refinancing
initiatives at the Orascom Telecom level.  Should the deal fail to
succeed or completion be materially delayed, then Moody's believes
that the existing liquidity pressures on Orascom Telecom's ratings
would likely result in a downgrade.  The review process will focus
on (i) the implications of the transaction on Orascom Telecom's
standalone financial risk profile following the refinancing of
Orascom Telecom's existing debt and the disposal of assets -- the
proceeds of which will flow out of the group -- and (ii) the
impact of the ring-fencing from VimpelCom.  

The rating review process will also closely monitor the
consent/waiver process that will need to be resolved with the
Weather Group's existing creditors as a result of the trigger of
the change in the control clauses.  Moody's says that there could
potentially be further rating actions as further clarity on the
transaction materializes, particularly with regard to financial
policies or the assumptions made in these actions.  

Headquartered in Moscow, Russia, VimpelCom OJSC is a leading
Russian telecommunications operator, providing voice and data
services through a range of wireless, fixed and broadband
technologies.  VimpelCom is the second-largest mobile operator in
Russia, a leading operator in Kazakhstan and has a presence in
Ukraine, Uzbekistan, Tajikistan, Armenia and Georgia.  In 2009,
the company launched operations in Vietnam and Cambodia.  
Following the acquisition of the leading Russian altnet, Golden
Telecom, in early 2008, VimpelCom became one of Russia's largest
integrated nationwide telecommunications providers.  In 2009,
VimpelCom OJSC generated approximately US$8.7 billion in revenues
and US$4.3 billion in reported EBITDA.  

Based in Italy, Wind Telecomunicazioni S.p.A is the country's
leading integrated telecoms operator, active in the wireless
market, the fixed-line voice, broadband and data services markets
and the internet services market, including narrowband and portal
services.  The company's mobile business is the third-largest in
Italy based on the number of subscribers.  Wind is Italy's second-
largest fixed-line operator in terms of revenue, and the country's
second largest broadband provider, ranking behind Telecom Italia.  
In 2009, Wind generated approximately EUR5.7 billion in revenues
EUR2.1 billion in EBITDA.  

Orascom Telecom Holding S.A.E. is a holding company with
controlling interests in leading GSM mobile telecoms operations in
Algeria, Egypt, Pakistan, Tunisia, Bangladesh, North Korea, and
Africa (i.e. Zimbabwe, Burundi, the Central African Republic and
Namibia).  In addition, Orascom Telecom indirectly owns equity in
Globalive Wireless, a Canadian entity that launched operations in
December 2009.  In 2009, Orascom Telecom generated approximately
US$5.1 billion in revenues and US$2.2 billion in reported EBITDA.  

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.  


* Fitch Assigns 'BB' Rating on Russian City of Krasnoyarsk
----------------------------------------------------------
Fitch Ratings has assigned the Russian City of Krasnoyarsk's Long-
term foreign and local currency ratings of 'BB', a Short-term
foreign currency rating of 'B' and a National Long-term rating of
'AA-(rus)'.  The Outlooks for the Long-term ratings are Stable.

The ratings reflect the strong economy of Krasnoyarsk, its sound
budgetary performance, relatively high capital expenditure and
potential financial support from the Krasnoyarsk region
('BB+'/Stable).  However, they also factor in the temporary
deterioration in budgetary performance in 2009 and short-term
direct risk.  Continuous deterioration in budgetary performance
and/or a significant weakening of debt coverage would be negative
for the ratings.  On the other hand, stabilization of budgetary
performance at operating margins above 15%, coupled with
manageable debt levels, would be positive for the ratings.  

Krasnoyarsk recorded sound, albeit volatile, budgetary performance
with operating margin averaging 17.8% in 2005-2008.  Declining tax
revenue in 2009, due to a weaker economy, caused the operating
balance to shrink to RUB1.7 billion from RUB3.8 billion a year
earlier.  However, the city still recorded a robust 9.2% operating
margin in 2009.  Fitch expects the city to restore its operating
margin to 13%-14% in 2010 and further improve it to 15% over the
2011-2012 as the economy improves.  

The city recorded high capital expenditure in 2007-2008, which was
partially funded by capital transfers from the regional budget.  
This helped to mitigate the negative revenue shock of 2009,
although the city's capex cut by 35% during the same period helped
contain further debt increase.  Nevertheless, capex accounted for
a still high 23.8% of total expenditure in 2009.  Rigid
expenditure items (staff costs and social subsidies) totaled 64%
of operating expenditure in 2009, which was partly offset by the
earmarked grants from the Krasnoyarsk region.

The city's direct risk increased since 2008 but remained
manageable at 23% of current revenue at end-2009.  The city
managed to reduce debt during Q1-Q310 to RUB3.1 billion, down from
RUB4.1 billion at the beginning of 2010.  Most of its liabilities
consist of budget loans from the Krasnoyarsk region, which bear
low interest.  The majority of its debt matures within 18 months
although the city has a RUB3.6 billion unused bank credit line,
mitigating refinancing risk.  Fitch expects Krasnoyarsk's direct
risk to amount to about 25% of current revenue in 2010 and to
gradually decline to 22% over the next three years.

Krasnoyarsk is located in eastern Siberia on the Yenisei River.  
The city is the capital of the of Krasnoyarsk region, one of the
top 10 Russian regions by gross regional product and the second-
largest Russian region by area.  With a population about 964,700
the City of Krasnoyarsk is one of the largest in the eastern part
of Russian Federation.


=========
S P A I N
=========


AYT COLATERALES: Moody's Puts (P) C (sf) Rating on Class D Notes
----------------------------------------------------------------
Moody's Investors Service has assigned provisional credit ratings
to these classes of notes issued by AyT Colaterales Global
Hipotecario Caja Vital I, FTA:

  -- (P) Aaa (sf) to the euro 175,300,000 Class A Mortgage Backed
     Floating Rate Notes due 2047

  -- (P) Ba3 (sf) to the euro 12,600,000 Class B Mortgage Backed
     Floating Rate Notes due 2047

  -- (P) B3 (sf) to the euro 8,200,000 Class C Mortgage Backed
     Floating Rate Notes due 2047

  -- (P) C (sf) to the euro 3,800,000 Class D Mortgage Backed
     Floating Rate Notes due 2047

                   Ratings Rationale

The ratings of the notes takes into account the credit quality of
the underlying mortgage loan pool, from which Moody's determined
the MILAN Aaa Credit Enhancement and the portfolio expected loss,
as well as the transaction structure and any legal considerations
as assessed in Moody's cash flow analysis.  The expected portfolio
loss of 3.50% and the MILAN Aaa required Credit Enhancement of
14.00% served as input parameters for Moody's cash flow model,
which is based on a probabilistic lognormal distribution as
described in the report "The Lognormal Method Applied to ABS
Analysis", published in September 2000.  

The key drivers for the MILAN Aaa Credit Enhancement number, which
is lower than other prime Spanish RMBS deals with High Loan to
Value (HLTV) ratios, are (i) the weighted-average current LTV of
83.14%, with 67.86% of loans above 80% LTV and 21.93% of loans
above 90% LTV (no loans above 100% LTV), (ii) the relatively high
borrower concentration (top 20 represents 4.53%) and geographical
concentration (Basque Country represents 56.92%) and (iii) the
weighted average seasoning of 5.13 years.  

The key drivers for the expected loss are (i) the already
available performance for this very same transaction, which is
better than the average reported in the Spain index, (ii) the
static historical information on delinquencies and recoveries
received from the originator for its global mortgage book and
(iii) the weak economic conditions in Spain.  Given the historical
performance of the transaction and the originator's mortgage book,
Moody's believes the assumed expected loss is appropriate for this
transaction.  

The strengths of the structure are (i) a reserve fund fully funded
upfront equal to 1.57% of the initial notes balance (it currently
represents 1.79% of the outstanding balance of the notes) to cover
potential shortfall in interest and principal, and (ii) a strong
interest rate swap in place which provides a guaranteed excess
spread (0.50%) above Euribor to the transaction.  

The rating addresses the expected loss posed to investors by the
legal final maturity of the notes.  In Moody's opinion, the
structure allows for timely payment of interest and principal with
respect of the classes of notes A, B and C by the legal final
maturity, and payment of interest and principal with respect of
the class of notes D by the legal final maturity.  Moody's ratings
only address the credit risk associated with the transaction.  
Other non-credit risks have not been addressed, but may have a
significant effect on yield to investors.  

The transaction closed in July 2007 and was initially not rated by
Moody's.  The initial notes balance issued at closing (shown above
next to the assigned rating)) amounted to EUR199 million.  The
outstanding notes balance as of the last payment date in May 2010
amounts to EUR175 million.  

Moody's rating analysis of the notes is based on the transaction
structure after the last payment date in May 2010.  The next
payment date will take place in November 2010.  

The V Score for this transaction is Medium, which is in line with
the V score assigned for the Spanish RMBS sector.  Only three sub
components underlying the V Score deviate from the average for the
Spanish RMBS sector.  Issuer/Sponsor/Originator's Historical
Performance Variability is Low/Medium, which is lower than the
Medium V score assigned for the Spanish RMBS sector for this sub
component because the performance is better than the average
reported in the Spain index.  The Sector's Historical Downgrade
Rate and Transaction Complexity are assessed as Medium, which are
higher than the Low/Medium V score assigned for the Spanish RMBS
sector for those sub components.  This is due to the exposure of
the transaction to HLTV's which have suffered more downgrades than
traditional mortgages pools in recent years and because HLTV loans
are more exposed to house price declines.  V-Scores are a relative
assessment of the quality of available credit information and of
the degree of dependence on various assumptions used in
determining the rating.  High variability in key assumptions could
expose a rating to more likelihood of rating changes.  The V-Score
has been assigned accordingly to the report "V-Scores and
Parameter Sensitivities in the Major EMEA RMBS Sectors" published
in April 2009.  

Moody's Parameter Sensitivities: the model output indicated that
Class A would have achieved Aaa even if expected loss was as high
as 10.5% (3.0x base case) assuming Milan Aaa CE at 14.0% (base
case) and all other factors remained the same.  Classes B, C and D
would have achieved
The model output further indicated that the Class A would not have
achieved Aaa with Milan Aaa CE of 16.8% (1.2x base case), and
expected loss of 3.5% (base case).  Classes B, C and D would have
achieved Ba3, B3 and
Moody's Parameter Sensitivities provide a quantitative/model-
indicated calculation of the number of rating notches that a
Moody's structured finance security may vary if certain input
parameters used in the initial rating process differed.  The
analysis assumes that the deal has not aged and is not intended to
measure how the rating of the security might migrate over time,
but rather how the initial rating of the security might have
differed if key rating input parameters were varied.  Parameter
Sensitivities for the typical EMEA RMBS transaction are calculated
by stressing key variable inputs in Moody's primary rating model.  

Moody's Investors Service received and took into account a third
party due diligence report on the underlying assets or financial
instruments in this transaction and the due diligence reports had
a neutral impact on the rating.  

                Regulatory Disclosures

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

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

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.  


===========
T U R K E Y
===========


* Moody's Gives Positive Outlook on Istanbul's 'Ba2' Rating
-----------------------------------------------------------
Moody's Investors Service has changed the outlook on the Ba2
issuer rating of Istanbul Metropolitan Municipality to positive
from stable.  At the same time, Moody's has also changed the
outlook on the Ba2/A3.tr issuer ratings of Turkey's Housing
Development Administration (Toplu Konut Idaresi Baskanligi) to
positive from stable.  

The rating action follows the recent decision of Moody's Sovereign
Risk Group to change the outlook on Turkey's sovereign rating of
Ba2 to positive from stable.  "The action on Turkey's sovereign
rating impacts the ratings of both Istanbul and TOKI, because they
display close operating and financial links with the Turkish
government" says Francesco Soldi, Moody's sub-sovereign analyst.  

Istanbul's rating reflects its strategic role in the national
economy, its active fiscal management and some fiscal flexibility,
mainly on the capital side of its budget.  Furthermore, Istanbul
has a robust balance sheet, including valuable real and financial
assets.  Growing state resources and the active management of
municipal-related companies have so far helped Istanbul to manage
expenditure pressures and to consolidate robust operating
surpluses.  Notwithstanding the large operating surpluses, the
implementation of its large investment program has led to a high
and rapidly growing debt burden (both direct and indirect).  At
year-end 2009, Istanbul direct debt amounted to US$2.1 billion,
equivalent to approximately 80% of operating revenue for the year.  

TOKI is a not-for-profit public sector entity that operates under
a mandate from the central government and direction of the prime
minister's office.  TOKI's ratings are underpinned by its public
status and strategic role in executing the government's housing
policies.  Furthermore, the current ratings reflect the positive
financial results recorded in the past few years, which were
supported by the substantial expansion of the company's assets.  
Cash reserves have been partially reconstituted in 2009, following
a recent depletion, and the company has been able to contain its
borrowing requirements.  Going forward, Moody's expects that TOKI
will manage the execution of its large investment program and the
projected increase in leverage without significantly impairing its
finances, in a context of a stable legal framework and continued
sponsorship and oversight by the central government.  

Moody's last rating action on Istanbul was implemented on
January 8, 2010, when the rating agency upgraded the issuer rating
to Ba2 from Ba3, with a stable outlook.  Moody's last rating
action for TOKI was also implemented on January 8, 2010, when its
issuer ratings were upgraded to Ba2/A3.tr from Ba3/Baa1.tr, with
stable outlook.  


* Moody's Gives Positive Outlook on Turkey's 'Ba2' Rating
---------------------------------------------------------
Moody's Investors Service has changed the outlook on Turkey's Ba2
local and foreign currency government bond ratings to positive
from stable.  

Moody's decision to change the outlook was prompted by
improvements in the country's economic and fiscal resilience,
relative to when the rating agency last upgraded Turkey's rating
in January 2010.  

In a related action, Moody's has also changed the outlooks on
Turkey's Ba1 foreign currency bond ceiling and the Ba3 foreign
currency deposit ceiling to positive from stable.  The foreign
currency bond and deposit ceilings are the highest possible
ratings that may be assigned to Turkish foreign currency bonds and
deposits, respectively.  

              Rationale for Outlook Change

"Turkey's economy has proven to be unexpectedly robust and has
recovered to pre-crisis levels," says Sarah Carlson, Moody's Vice
President - Senior Analyst and lead sovereign analyst for Turkey.  
"Moody's is revising upwards its forecasts for real GDP growth to
6.5% this year and 5% in 2011."  Accordingly, the country's
deficit and debt levels have improved beyond the targets set in
the government's 2010-12 Medium-Term Plan.  

Ms. Carlson explains that a potential upgrade to Ba1 is contingent
upon a further strengthening of Turkey's fiscal fundamentals,
particularly in light of the country's significant external
vulnerabilities, such as its large current account deficit and its
reliance on portfolio investment flows, rather than foreign direct
investment, to fund the current account deficit.  "The challenge
now is for Turkey to once again register larger primary surpluses
and continue to reduce its debt levels in order to further bolster
its resilience to external shocks," says Ms. Carlson.  

Moody's last rating action on Turkey was implemented on January 8,
2010, when the rating agency upgraded Turkey's government bond
rating to Ba2 from Ba3, the foreign currency bank deposit ceiling
was raised to Ba3 from B1, and the outlook on all the ratings and
ceilings was changed to stable from positive.  Prior to that,
Moody's last rating action on Turkey was implemented on September
18, 2009, when the rating agency assigned a positive outlook to
the Turkish government's Ba3 foreign and local currency ratings
and the B1 country ceiling for foreign currency bank deposits.  


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


BGROUP: Goes Into Liquidation as Revenues Continue to Drop
----------------------------------------------------------
Peter McCusker at The Journal reports that creative and marketing
agency the bgroup has been placed into voluntary liquidation amid
plummeting revenues.

The Journal says the Newcastle office of business recovery experts
Begbies Traynor is handling the insolvency with owner Si Bales
saying it has no "massive debts" and its largest creditor is owed
"around GBP5,000".

"I have had the agency for ten years and we continued to grow as
the public sector grew.  However, the massive cuts in the public
sector have presented severe challenges to the business," The
Journal quoted Ms. Bales as saying.  "At our peak we employed over
20 people but numbers have gradually declined and the liquidation
saw four people made redundant," Ms. Bales added.

The Journal relates Andrew Haslam, North East partner at Begbies
Traynor, said it will be holding a creditors meeting in the coming
weeks.

According to the Journal, bgroup's sister company bdaily, which
operates a business events Web site, continues to trade after
moving into new offices.

Bgroup is a Newcastle-based creative and marketing agency.


BMI BRITISH: Going Concern Doubt Remains; Losses Widen in 2009
--------------------------------------------------------------
BMI British Midland Airways has warned there are still doubts
about whether it can continue as a going concern after it reported
losses had widened to just under GBP200 million (US$317 million),
Pilita Clark writes for The Financial Times.

According to the FT, previously unpublished accounts released on
Wednesday showed that the Lufthansa-owned airline made a pre-tax
loss of GBP198 million in the year to the end of December 2009,
compared with a GBP181 million loss in 2008.

The airline issued a similar warning about its ability to continue
when it reported its 2008 annual results, the FT notes.

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/>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.


BRITISH AIRWAYS: Passenger Traffic Up 1.3% in September 2010
------------------------------------------------------------
British Airways reported some of its strongest passenger numbers
since 2008, Pilita Clark writes for The Financial Times.  
According to the FT, overall passenger traffic as measured by
revenue passenger kilometer, or the number of fare-paying
passengers multiplied by the distances they fly, rose 1.3% in
September compared with a year earlier.

More importantly for investors, there was a 4.3% increase in BA?s
profitable first and business class traffic, which make up about
13% of all passengers but more than 40% of revenues, the FT says.

The FT notes analysts noted that these premium traffic figures
were always expected to be strong because they were being compared
with a weak month last year.

                  About British Airways

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

                    *   *   *

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


CROWN CURRENCY: MoneySavingExpert.com Hires Insolvency Expert
-------------------------------------------------------------
MoneySavingExpert.com has hired an insolvency expert to help
victims of the collapsed Crown Currency Exchange fight for their
GBP20 million back, Guy Anker at MoneySavingExpert.com reports.

"Our move is a result of swathes of worried customers asking for
help on our forum as the sector is unregulated and there is no
compensation scheme to refund victims," MoneySavingExpert.com
said.  "There is also no chance of refunds via card companies as
Crown only accepted payment by bank transfer, cash or cheque."

According to MoneySavingExpert.com, the joint administrators, MCR
and SPW, will place consumers among those at the bottom of the
list of creditors when the companies' assets are dished out by a
liquidator (normally the same firm doing the administration).  The
process of distributing those assets could take more than six
months, MoneySavingExpert.com says.

MoneySavingExpert.com said: "Preliminary findings suggest the
chances of increasing that payout via our action are limited but
our aim is to ensure no stone is left unturned in the pursuit of
refunds."

"David Kaye, from insolvency firm Crawfords, will produce an
independent report for us, which we will publish on this site,
within the next two weeks," MoneySavingExpert.com added.

As reported in the Troubled Company Reporter-Europe on Oct. 6,
2010, BBC News said thousands of people face uncertainty over
travel money after Crown Currency Exchange went into
administration.  Crown Currency blamed the downturn in the travel
market.  Administrators from MCR and SPW were appointed on Oct. 4,
2010.  Administrators MCR said that an estimated 13,000 consumers
would be directly affected.  The administrators said that these
people should not expect an early resolution in the case and a
quick return of money.

                About Crown Currency

Headquartered in Hayle, Cornwall, Crown Currency Exchange is one
of the UK's biggest foreign exchange websites.  The business was
established by husband and wife Peter and Susan Benstead five
years ago.


CRU INVESTMENT: CISX Freezes 11 Arch Cru Sub-Funds
--------------------------------------------------
John Kenchington at MoneyMarketing reports that the administrators
of Arch Cru fund, marketed by Cru Investment Management, are
furious after the Channel Islands Stock Exchange froze trading in
11 sub-funds, throwing plans to recover UK investors' savings into
chaos.

MoneyMarketing says the suspensions -- announced on October 5 --
have derailed tender processes to sell the funds' assets off that
have been worked on over a number of months.

According to MoneyMarketing, sources said the administrators were
on the brink of tendering the assets of five of the 11 funds in a
move that would have returned as much as GBP18 million to Arch Cru
investors.

MoneyMarketing relates the share freeze also makes it difficult
for the administrators to engineer tender offers to liquidate the
other six funds, as such work requires the funds to be actively
trading.

MoneyMarketing discloses that the suspension came after Ernst &
Young issued a report and accounts for the year to March 30, 2010,
for the sub-funds on September 30.  The accountancy firm,
according to MoneyMarketing, said it was confident of its
valuation of the assets as at March 30, 2010, but qualified that
it could not be confident of previous work carried out for year to
March 30, 2009.

This triggered the alarm at the CISX which suspended the funds on
October 5 despite frantic talks with the Arch Cru board who
insisted the 2009 accounts are no longer relevant, MoneyMarketing
notes.

MoneyMarketing discloses that investors placed GBP400 million in
the Arch Cru fund range, which was invested in questionable assets
including ships, property and private equity via a series of sub-
funds listed on the CISX.  However, MoneyMarketing relates, the
funds were suspended by their administrator Capita in 2009 amid a
lack of liquidity.

According to MoneyMarketing, some of the funds have now been
liquidated by administrators but it is thought it could now take
months to sell off the remaining 11 now they have been suspended.

As reported in the Troubled Company Reporter-Europe in March 12,
2010, Cru Investment Management has been wound up in the High
Court.  The court decided to subject the firm to a creditors
voluntary liquidation order.  Investec Asset Finance asked to
withdraw a winding-up petition it filed against Cru because it was
advised that the company had filed for voluntary liquidation on
February 12.  Had Investec not withdrawn the request, an official
receiver would have been appointed and the government would have
taken a 17% cut of any assets realized from the company.


FLOOKS HAULAGE: In Liquidation; Purnells Appointed as Liquidators
-----------------------------------------------------------------
Joanna Bourke at Roadtransport.com reports that Flooks Haulage has
entered into liquidation with a total deficiency of GBP138,073,
after suffering a slump in work.  The Company appointed Leigh-Jane
Homes and Susan Purnell of Purnells as joint liquidators of the
business on September 23.  

Roadtransport.com, citing the Flooks Haulage's statement of
affairs filed at Companies House, discloses that just GBP1,877 in
assets were available for preferential creditors.

"The main reason for us going under was a dramatic decline in work
available to us.  Sadly all nine employees were made redundant," a
spokesman for Flooks Haulage told Roadtransport.com.

Blaenavon-based Flooks Haulage -- <http://www.flookshaulage.co.uk/>http://www.flookshaulage.co.uk/
-- offers nationwide distribution and both same day and next day
courier services throughout the UK.  


LIVERPOOL FOOTBALL: Board Willing to Sell Club for GBP300 Million
-----------------------------------------------------------------
Tariq Panja at Bloomberg News reports that Liverpool Football
Club's board agreed to sell the soccer club to John W. Henry's
Boston Red Sox holding company over the objections of owners Tom
Hicks and George Gillett, who vowed to resist an offer they said
is too low.

Bloomberg relates the board reviewed two offers on Wednesday, and
accepted the one from New England Sports Ventures.  It will pay
about GBP300 million (US$476 million) for the club, Liverpool
Chairman Martin Broughton said in an interview, adding he expected
to deal to be completed in about a week, according to Bloomberg.

Bloomberg says the sale is subject to Premier League approval and
a legal challenge from Messrs. Hicks and Gillett.  The owners said
earlier on Wednesday that the offers "dramatically undervalue the
club" and they will "resist any attempt" to sell without their
agreement.

Bloomberg notes Liverpool said NESV's offer wipes out the
acquisition debt.  In April that figure was GBP237 million and had
ballooned to GBP280 million because of penalty fees linked to an
extension granted to the owners by Royal Bank of Scotland Group,
Bloomberg states.

NESV will pay down all the GBP200 million Messrs. Hicks and
Gillett raised from RBS to buy the club, Bloomberg discloses.  The
remaining GBP37 million will remain on the bank's books in ongoing
credit facilities, Bloomberg says.

Messrs. Hicks and Gillett remain liable for the GBP40 million in
penalty fees and it's unclear what will happen to the GBP144.4
million loaned to the club by its current owners, Bloomberg
discloses.

Messrs. Hicks and Gillett, who said they've invested US$270
million in cash since buying the club, face a mid-October deadline
to sell or refinance their GBP280 million debt to RBS, Bloomberg
relates.

The government-controlled lender could have taken control of the
club had a sale agreement not been reached, Bloomberg notes.

                About Liverpool Football

Liverpool Football Club and Athletic Grounds owns and operates one
of the more popular and most successful franchises in the UK
Premier League.  Known as The Reds, Liverpool has won 18 first
division titles and seven FA Cups since it was founded by John
Houlding in 1892.  In addition to the football club, the company
owns and operates Anfield Stadium, Liverpool's home ground.  The
company generates revenue primarily through sponsorships,
broadcasting fees, and ticket sales.  The company was acquired by
US businessmen George Gillett and Tom Hicks in 2007.


TUI AG: TUI Travel's Holiday Bookings Back on Track
---------------------------------------------------
BBC News reports that TUI Travel, a unit of TUI AG, has said that
holiday bookings are back on track, thanks to poor north European
weather and the failure of rivals.

According to BBC, the travel firm has seen particularly strong
growth in Scandinavia, with bookings up 17% on a year ago.

In the UK, bookings are up 5%, with Brits tending to leave booking
their holidays until later in the year, BBC says.

BBC notes TUI said the majority of its programs were now almost
fully sold and it was confident of hitting year-end targets.

As reported by the Company Reporter-Europe on Sept. 3, 2010,
Bloomberg News, citing Financial Times Deutschland, said that TUI
AG is weighing the purchase of the shares it doesn't already own
in TUI Travel.  Bloomberg disclosed FTD said TUI Travel is on the
agenda for a Sept. 9 board meeting of TUI, where directors of the
German company will also discuss options for the possible sale of
TUI's stake in the Hapag-Lloyd container line.  TUI owns about 55%
of the Crawley, England-based travel company, Bloomberg noted.

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

                    *   *   *

As reported by the Troubled Company Reporter-Europe on Sept. 29,
2010, Moody's Investors Service affirmed the Corporate Family
Rating and Probability of Default Rating of TUI AG at Caa1; the
unsecured rating and the subordinated ratings are also affirmed at
Caa2 and Caa3, respectively.  Moody's said the outlook is changed
to stable from negative.


* BOOK REVIEW: Dangerous Dreamers - The Financial Innovators
------------------------------------------------------------
Author: Robert Sobel
Publisher: Beard Books, Washington, D.C. 2001
(reprint of book first published by John Wiley in 1993).
Pages: 260+xi
Price: US$34.95 trade paper
ISBN 1-58798-029-0

"For the rest of his life, Milken will be accused of crimes for
which he was not charged and to which he did not plead guilty."  
The Milken is -- as anyone familiar with "junk bonds" and the
scandals surrounding them in the 1980s knows -- Michael Milken of
the Drexel Burnham banking and investment firm.  So does the noted
business writer Robert Sobel (d. 1999) analyze and in so doing
clarify not only the Milken criminal case, but also many other
phenomena of the period laying the basis for the modern-day
financial industry.  Mr. Sobels' perspective is broader than the
sensationalistic excesses and purported crimes of Mr. Milken and
the like.  He's interested as well in individuals and businesses
that introduced and developed financial concepts, vehicles, and
transactions which secured and increased the wealth of millions of
average persons.

Mr. Sobel's topic of financial innovation is necessarily
ambivalent, as is any which concerns historical and economic
change.  For a perspective on the relatively recent phase of
financial innovation Milken was involved in, he brings up previous
such phases as the Gilded Age of the latter 1800s/early 1900s.  
This was a time when as Jim Fisk, Jay Gould, and others were
making fortunes through skulduggery and manipulations in the
financial markets, Cornelius Vanderbilt and others were building
the "world's finest railroad system."  Similarly, in the "Junk
Decade of the 1980s," as Ivan Boesky and others were arrogantly
reaping fortunes on "dubious" transactions, financial firms such
as Forstmann Little and Kohlberg Kravis Roberts "played major
positive roles in the largest restructuring of American industry
since the turn of the century."

The analysis is done and subsequent picture formed through the
author's protrayals of the activities of individuals and
particular companies within the larger framework of the overall
financial industry of the time.  While Mr. dSobel does not try to
defend the excesses, liberties, and illegalties of individuals and
companies, basically he sees Mr. Milken, Mr. Boesky, and ones like
them and many companies in diverse sectors as "vehicles through
which the phenomena of junk finance and leveraged buyouts played
themselves out."  This was the "Conglomerate Era."  Mergers and
acquisitions were at the center of financial and economic
activity, and CEOs at major corporations were in competition to
grow their corporations in this way.  Mr. Milken, Mr. Boesky, and
such were originally seen as providing ideas and means for this
phenomena to corporate CEOs and others in the highest levels of
big business.  Mr. Milken, etc., did not originate the mergers and
acquisition phenomenon.

At first, Mr. Milken, etc., were much appreciated by the major
corporations and the financial industry.  In 1989, the Wall Street
Journal saw Mr. Milken as the financier who had the greatest
influence on Wall Street since J.P. Morgan.  In leading the
financial innovation of the time, which entails introducing the
new, often unproven, and taking risks, Milken left himself
vulnerable.  Thus he was a prime target for Federal prosecutors
when the downside of the mergers and acquisitions came about.  He
and his banking and investment company Drexel Burnham took the
brunt of government, business, and public indignation and search
for villains when their dreams did not pan out just as envisioned.

Mr. Sobel follows the transition of perspective on and behavior of
many companies as well as many individuals during this period.  
Such transition with respect to Mr. Milken, for example, cannot be
unraveled from that of a company such as Beatrice.  Starting in
1960, the food company Beatrice started making large-scale
acquisitions.  Beatrice corporation heads succeeding the CEO
Williams Karnes who "ran a tight, lean ship, with a small office
staff" brought in corporate jets and limousines, greatly increased
staff, and moved to regal office space.  James Dutt of Beatrice is
pointed out as symptomatic of the heedless, dazzled mindset which
crept into corporate America in the 1980's age of mergers-and-
acquisitions.

Mr. Sobol's renders the complexities and ambivalence of this
transitional period comprehensible by memorable portraits of key
players and companies.  In so doing, he demonstrates once more why
he has long been recognized as one of the country's most important
business writers.

Robert Sobol (1931-99) was an author or editor of more than 50
books and hundreds of articles.  For more than 40 years, he was a
professor of business history at Hofstra University.

                            
                      *********

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

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

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

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

                      *********


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

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

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

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

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

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


              * * * End of Transmission * * *