TCREUR_Public/101011.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

           Monday, October 11, 2010, Vol. 11, No. 200

                            Headlines



B U L G A R I A

KREMIKOVTZI AD: Second Auction Scheduled for November 5
MOSTSTROY AD: Inability to Pay Debts Cues Insolvency Filing


G E R M A N Y

FLEET STREET: Fitch Affirms 'Bsf' Rating on Class B Notes
SPACE CANON: Files for Liquidation; 47 Employees Affected


H U N G A R Y

RAIL CARGO: Ongoing Union Dispute May Prompt Liquidation
VERTESI EROMU: Creditors Okay Bankruptcy Protection Extension
* HUNGARY: Mandatory Liquidations Up 35% in September 2010


I R E L A N D

ANGLO IRISH: Taoiseach 'Did Not Know' About 2008 Insolvency
MERCATOR CLO: S&P Cuts Rating Class B-2 Tranche to CCC- (sf)
OPERA FINANCE: Fitch Junks Rating on Class D Notes From 'Bsf'
WINDMILL CLO: S&P Raises Rating on Class E Notes to 'B (sf)'


I T A L Y

BANCO POPOLARE: Mulls 800 Job Cuts to Reduce Costs


R U S S I A

VIMPEL-COMMUNICATIONS JSC: S&P Puts 'BB+' Rating on Negative Watch
* NIZHNIY NOVGOROD: Fitch Assigns 'B+' Ratings on Domestic Bonds


S W E D E N

* SWEDEN: Business Failures Up 15% in September 2010


U N I T E D   K I N G D O M

BLACKPOOL FOOTBALL CLUB: To Go Into Administration
DECO 8: Fitch Affirms 'CCsf' Ratings on Two Classes of Notes
FUSION GLASS: Assets Sold to Chelsea Artisans
MCKINSTRIE WILDE: Placed in Compulsory Liquidation
NORTH PARK (BRADFORD) LIMITED: Goes Into Administration

LIVERPOOL FOOTBALL CLUB: At Risk of Points Penalty
P&A DAVIES: Goes Into Administration After 111 Years
POLYGON INVESTMENT: To Return Investors' Money by March 31
PRELUDE CDO: S&P Raises Rating on Series 2005-4 Notes to B+p (sf)
RESIDENTIAL MORTGAGE: S&P Puts Prelim. BB- Rating Class B3 Notes

TITAN EUROPE: S&P Puts Low-B Ratings on CreditWatch Positive
WINNIE CARE: Goes Into Administration
* UK: No Second Round of Bailouts for Banks, Chancellor Says
* UK: Torbay Tops Insolvency List in 2009


X X X X X X X X

* EUROPE: Banking Regulators Favor "Bail-In" Measures

* EUROPE: Bond Refinancings May Overshadow Spending Cuts in 2011

* EUROPE: Germany to Draw Up Permanent Euro Insolvency Mechanism

* BOND PRICING: For the Week October 4 to October 8, 2010




                         *********


===============
B U L G A R I A
===============


KREMIKOVTZI AD: Second Auction Scheduled for November 5
-------------------------------------------------------
Kremikovtzi AD's receiver said the second auction of the company
will take place on November 5, novinite.com reports.

According to novinite.com, unlike the first closed-bid auction,
which failed in the middle of September, the second auction will
be with direct bidding.  The starting price will be
BGN452,414,008, down by 20% over the initial tag, novinite.com.
novinite.com says a 10% deposit is to be paid in advance.  The
bidder with the highest offer will be selected as buyer,
novinite.com notes.

The total debts of Bulgaria's former largest steel-maker amount to
BGN1.9 billion, whereas the market value of all of its assets has
been estimated at BGN837 million, novinite.com discloses.

The first closed-bid auction of Kremikovtzi failed to attract any
bidders in the middle of September, novinite.com.  It started at
BGN565,517,510, which according to trade unions and analysts is
far below the market price, novinite.com relates.  Prospective
investors were invited to deliver sealed bids between noon and
1:00 p.m. on September 13, with a 10% deposit to be paid in
advance, but no one turned up, according to novinite.com.

                        About Kremikovtzi

Kremikovtzi AD Sofia -- http://www.kremikovtzi.com/-- is a
Bulgaria-based company principally engaged in the steel industry.
Its production capacity includes a complete steel production
cycle, from ore mining to finished products, such as hot rolled
and cold rolled products (coils, slabs, plates, blooms and
billets), different thickness wire rods and tubes.  The Company's
product range also includes coke and chemical products, flat
products, ferro-alloys and metallurgical lime, and other products.
The Company operates through a number of subsidiaries, including
Ferosplaven zavod EOOD, NLA 2000 EOOD, Kremikovtzi Rudodobiv AD,
Metalresource OOD and others.  The Company is 71%-owned by
Finmetals Holding AD.


MOSTSTROY AD: Inability to Pay Debts Cues Insolvency Filing
-----------------------------------------------------------
Elizabeth Konstantinova at Bloomberg News reports that Moststroy
AD has filed for insolvency after all its bank accounts were
frozen because of unpaid debts.

According to Bloomberg, Moststroy said it has no funds to repay a
loan borrowed from the United Bulgarian Bank, a unit of the
National Bank of Greece SA, which was due on May 31.  Its
construction machines and other equipment leased from Interlease
EAD have been seized by Interlease, which has canceled the
contracts, Moststroy said.

Moststroy AD is a construction company controlled by Bulgarian
billionaire Vassil Bozhkov.  The company participates in the
construction of the country?s high-profile Trakiya motorway.


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


FLEET STREET: Fitch Affirms 'Bsf' Rating on Class B Notes
---------------------------------------------------------
Fitch Ratings has affirmed the ratings of classes A1, A2 and B of
Fleet Street Finance Three plc.  The Outlooks for all three
classes remain Negative.  The ratings are:

  -- EUR682.9m class A1 due October 2016 (XS0302957062): affirmed
     at 'Asf'; Outlook Negative

  -- EUR85.2m class A2 due October 2016 (XS0302957575): affirmed
     at 'BBsf'; Outlook Negative

  -- EUR67.2m class B due October 2016 (XS0302958110): affirmed at
     'Bsf'; Outlook Negative

The affirmation reflects the relatively unchanged collateral
performance since the last review in October 2009, in line with
Fitch's expectations.

Corleone, the largest loan (44% of the portfolio), is secured by a
mixed-use secondary property portfolio located across Germany.  At
closing, the sponsor envisaged that all the assets would be sold
prior to loan maturity in April 2012; to date, only 30 of the 95
properties have been sold.  In addition, not only has the vacancy
not been reduced from its closing level of 24% (initially targeted
at 8%), it has further increased to 33%.  The unsuccessful
implementation of the sponsor's business plan and declining asset
values have led Fitch to believe that this loan will not repay at
its scheduled maturity.  Fitch estimates an LTV of 105%.

The second-largest loan, the GSW loan, is scheduled to mature in
August 2011.  The loan structure incorporates two one-year
extension options, which the borrower may exercise if the loan is
not in default or in breach of its financial covenants.  The loan
has seen improvements in rental income, driven by a combination of
increased average rents and decreased vacancy rates.  Coupled with
stable cost levels, this has maintained strong coverage on the
loan.  The loan is hedged via a cap and therefore benefits from
current low interest rates: the interest coverage ratio currently
stands at 8x.

Balloon risk remains a major concern for the Orange loan (8% of
the portfolio).  Sharp declines in occupancy and income
experienced in the last few quarters on the secondary quality
collateral have further weakened the refinancing prospects of the
loan.  Fitch remains doubtful about the ability of the borrower to
pay back the Orange loan at the scheduled maturity in January
2011.  The Fitch LTV for the securitized A-note is 104%, while it
is 115% for the whole loan.


SPACE CANON: Files for Liquidation; 47 Employees Affected
---------------------------------------------------------
Space Cannon VH SRL's shareholder has filed for liquidation.  The
workforce was informed of the decision at a staff meeting on
Thursday.  Operations will be discontinued.  The measure affects
47 employees.

Space Cannon was founded in 1988 by Bruno Baiardi who died
suddenly in August 2007.  In the spring of 2008 Space Cannon was
acquired by the Zumtobel Group.  At this point, Space Cannon
reported annual sales of around EUR7 million.

The main reason for the company's loss-making position is the
failure of the acquired product portfolio to comply with
international norms and standards -- a state of affairs not known
to the Zumtobel Group at the time of the acquisition.  After
discovering the substantial product deficiencies in recent months,
the owners decided to apply for liquidation due to frustration of
contract.

"While we regret this step, particularly in view of the highly
motivated workforce at Space Cannon, we have no alternative.
Given the substantial negative legacy of Space Cannon, we were
forced to admit that the company is no longer viable.  We have
therefore decided to make no further funds available to Space
Cannon," explained Zumtobel Group CEO Harald Sommerer.

Space Cannon VH SRL, based in Fubine (Piedmont), is a specialist
in facade and event lighting.


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


RAIL CARGO: Ongoing Union Dispute May Prompt Liquidation
--------------------------------------------------------
Budapest Business Journal, citing Austrian daily Der Standard,
reports that Austrian railway company OBB may wind up its
Hungarian subsidiary Rail Cargo Hungaria if local unions are
unwilling to accept its lay-off plans.

RCH on Tuesday announced letting go as many as 460 staff but this
is "most likely only the beginning, company insiders talk of
2,000," the paper reported, according to Budapest Business
Journal.

Budapest Business Journal relates OBB may be better off "giving
up" RCH altogether if unions do not stop their protests against
OBB's restructuring and lay-off plans as the company's book value
has significantly dropped since it was acquired by OBB in 2008.

RCH logged an operating loss of EUR16.3 million last year, which
is expected to swell to EUR26.5 million in 2010, Budapest Business
Journal discloses.

Rail Cargo Hungaria is a Hungarian rail freight company.


VERTESI EROMU: Creditors Okay Bankruptcy Protection Extension
-------------------------------------------------------------
Creditors have approved a 90-day extension of bankruptcy
protection for power plant Vertesi Eromu, MTI-Econews reports,
citing the plant's PR agency Noguchi Porter Novelli.

MTI relates Vertesi Ermomu filed for bankruptcy protection in late
August.

The plant would have had to pay more than EUR6 million to energy
traders by the end of August had it not filed for bankruptcy
protection, MTI notes.

Vertesi Ermomu is a unit of the state-owned Hungarian Electricity
Works.


* HUNGARY: Mandatory Liquidations Up 35% in September 2010
----------------------------------------------------------
MTI-Econews, citing company information provider Opten, reports
that the number of mandatory liquidations reached a record high of
1,914 in Hungary in September 2010, 35% more than in the same
month in 2009.

According to MTI, the number of voluntary liquidation procedures
started in September was also up considerably, at 1,333, 33% more
than in the same month of last year.

MTI notes Opten said there were 4,127 new companies registered in
Hungary in September, a very high number.


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


ANGLO IRISH: Taoiseach 'Did Not Know' About 2008 Insolvency
-----------------------------------------------------------
Marie O'Halloran at The Irish Times reports that Taoiseach Brian
Cowen insisted he did not know Anglo Irish Bank was facing
insolvency the night the Irish government issued a blanket bank
guarantee, despite attending an earlier meeting at which officials
discussed the bank's situation.

Mr. Cowen told Labour Party leader Eamon Gilmore "No, I didn't"
when asked if he knew about Anglo's insolvency that night in
September 2008 when the guarantee was issued, Ms. O'Halloran
writes.

The Irish Times recounts Bank of Ireland and AIB had emergency
talks with the government after Anglo told Bank of Ireland it was
facing insolvency and sought a takeover.

The Irish Times notes Mr. Cowen insisted the government "took all
necessary steps to preserve our economic system in this country in
making that decision" to issue the blanket guarantee and he
insisted "Anglo Irish Bank was a bank of systemic importance".
According to The Irish Times, he said that if they had followed
Labour Party policy at the time "it would have brought about a
meltdown of the financial system, a nuclear winter in this
country, hundreds of thousands of jobs would have been lost".

Mr. Gilmore, as cited by The Irish Times, said it was "very
strange" that AIB and Bank of Ireland would not have disclosed
Anglo's insolvency to Mr. Cowen that night after they rushed to
Government Buildings and "when senior Government officials were
talking about solvency issues in Anglo".

The Irish Times relates Mr. Gilmore said that on September 29,
2008, Anglo's senior executives had told Bank of Ireland they were
facing insolvency, might not be able to open their doors the next
day and sought a takeover by Bank of Ireland.

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.


MERCATOR CLO: S&P Cuts Rating Class B-2 Tranche to CCC- (sf)
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
Mercator CLO III Ltd.'s outstanding EUR266.5 million notes.

The rating actions follow S&P's assessment of negative rating
migration in the transaction portfolio.  Of the ratings S&P
lowered, the class B-1 and B-2 tranche ratings were constrained by
the application of the largest obligor default test, a
supplemental stress test S&P introduced as part of its criteria
update.  None of the ratings was affected by the largest industry
default test, another of S&P's supplemental stress tests.

Mercator CLO III is a cash flow collateralized loan obligation
transaction that closed in August 2007.  NAC Management (Cayman)
Ltd. manages the portfolio of primarily European senior secured
loans, senior bonds, second-lien loans, and mezzanine loans.

                          Ratings List

                      Mercator CLO III Ltd.
               EUR307.7 Million Floating-Rate Notes

                         Ratings Lowered

                                Rating
                                ------
            Class       To                  From
            -----       --                  ----
            A-1         AA (sf)             AA+ (sf)
            A-2         A- (sf)             A+ (sf)
            A-3 def     BBB- (sf)           BBB+ (sf)
            B-1 def     B+ (sf)             BB+ (sf)
            B-2 def     CCC- (sf)           CCC (sf)


OPERA FINANCE: Fitch Junks Rating on Class D Notes From 'Bsf'
-------------------------------------------------------------
Fitch Ratings has downgraded Opera Finance plc's EUR375 million
commercial mortgage-backed floating-rate notes due 2015:

  -- EUR250m Class A (ISIN: XS0241931442): downgraded to 'AAsf'
     from 'AAAsf'; Outlook Negative

  -- EUR50m Class B (ISIN: XS0241934628): downgraded to 'BBBsf'
     from 'Asf'; Outlook Negative

  -- EUR40m Class C (ISIN: XS0241935195): downgraded to 'Bsf' from
     'BBB-sf'; Outlook Negative

  -- EUR35m Class D (ISIN: XS0241935609): downgraded to 'CCCsf'
     from 'Bsf'; assigned a Recovery Rating of 'RR6'

The downgrades are driven by the continued deterioration in
collateral value, as evidenced by two portfolio revaluations in
the past 12 months that have resulted in a 46% market value
decline from the peak in August 2008.  Fitch's own estimate of
value has further decreased since the last review a year ago.  The
ongoing weakness of the Irish commercial property market, as well
as the broader deterioration of the Irish macroeconomic situation,
drives the Negative Outlooks on all classes of the notes.
However, the rating action is not directly linked to Fitch's
downgrade of the Republic of Ireland's Long-term foreign and local
currency Issuer Default Ratings to 'A+' from 'AA-', respectively,
that occurred earlier.

Fitch understands that the reductions in value also resulted in a
junior event of default in March 2010; following the breach of the
junior LTV covenant, the junior loan was transferred to NAMA.
However, the absence of a senior loan covenant means that there
has been no change to the payment waterfall.  Whilst excess cash
is not being released to the borrower and is being trapped in a
reserve account, it cannot be used to amortize the senior loan.

The properties are of good to average quality and are primarily
located in Dublin, with a single retail asset in Cork.  The
Stillorgan Shopping Centre, the largest asset in the portfolio
(28% of MV), is a secondary shopping centre located in the suburbs
of Dublin, while the second-largest property in the portfolio is a
grade A office property located in Dublin (17% of MV).  With the
exception of the shopping centre property, there is no vacancy in
the portfolio (the WA vacancy stands at 2.5%).  In general, the
collateral benefits from a good lease rollover profile, with a
weighted average lease term-to-break of 14.6 years that extends
over 10 years after the maturity of the loan.

As the portfolio displays a strong income profile, which largely
insulates it from term default risk, Fitch's key concern relates
to the balloon risk at loan maturity in January 2013.  With the
whole loan LTV at 134% and considering Fitch's broader outlook,
the agency expects the loan to fail to repay at its scheduled
maturity.

Fitch will continue to monitor the performance of the transaction.


WINDMILL CLO: S&P Raises Rating on Class E Notes to 'B (sf)'
------------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
Windmill CLO I Ltd.'s class B and E notes.  At the same time, S&P
affirmed its ratings on the class A-1, A-2, and C notes.

Since S&P last took rating action on Windmill CLO I in February
2010, S&P has observed an increase in the balance of performing
assets.  In S&P's opinion, this increase is due to higher overall
recoveries on defaulted assets than S&P assumed in its analysis at
that time.  In S&P's view, the increase in the balance of
performing assets has increased the credit enhancement available
to all classes of notes.

The increase in credit enhancement for the class B and E notes is
consistent with higher ratings than those currently assigned, and
S&P has therefore raised its ratings on these classes.  However,
S&P considers that the credit enhancement currently available to
the other classes is not consistent with higher ratings, and S&P
has therefore affirmed its ratings on the class A-1, A-2, and C
notes.

Windmill CLO I is a cash flow collateralized loan obligation
securitizing a pool of loans to primarily speculative-grade
corporate firms.  The transaction closed in October 2007 and is
managed by Mizuho Investment Management (U.K.) Ltd.

                           Ratings List

                       Windmill CLO I Ltd.
         EUR600 Million Fixed- and Floating-Rate Notes
                     and Subordinated Notes

                          Ratings Raised

                                Rating
                                ------
              Class       To               From
              -----       --               ----
              B           A- (sf)          BBB+ (sf)
              E           B (sf)           CCC+ (sf)

                         Ratings Affirmed

                       Class       Rating
                       -----       ------
                       A-1R        AAA (sf)
                       A-1T        AAA (sf)
                       A-2A        AA+ (sf)
                       A-2B        AA+ (sf)
                       C           BB+ (sf)


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


BANCO POPOLARE: Mulls 800 Job Cuts to Reduce Costs
--------------------------------------------------
Chiara Remondini at Bloomberg News, citing daily Il Sole 24 Ore,
reports that Banco Popolare SC may cut about 800 jobs this year
and next as it seeks to reduce costs.

According to Bloomberg, Il Sole said Banco Popolare presented the
proposal to labor unions in a preview of its plan, which includes
300 reductions this year and 500 in 2011.

Banco Popolare Societa Cooperativa is an Italy-based banking
company.  It offers a range of banking products and services,
including current and savings accounts, online banking, telephone
banking, investments, mutual funds, financial advice, credit and
debit cards and insurance.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on Sept. 30,
2010, Moody's Investor Services changed the outlook to negative
from stable on the A2 long-term deposit rating and on the Prime-1
short-term deposit rating of Banco Popolare Societa Cooperativa
and has downgraded the bank financial strength rating to D+ from
C- (which now translates to a Baa3 on the long-term rating scale).

Moody's commented that the downgrade and the negative outlook on
the deposit ratings of Banco Popolare reflect the significant
challenges that it faces.  Against an operating environment that
has become less accommodating for most Italian banks, Banco
Popolare needs to finalize the restructuring and integration of
its acquisitions, while at the same time it needs to establish a
profitable, well capitalized business model.  The obstacles it
faces towards this are significant: it has low capital levels, and
its internal capital generation is constrained by its low
profitability, whereas external capital raising in the market is
difficult with the company's corporate structure.  Disposal of
non-core assets could strengthen capital levels, but further
impact the bank's ability to generate sustainable profit and
weaken its franchise, according to Moody's.

While the bank is continuing to take measures aimed at de-risking
its operations and improving profitability, efficiency and
capital, Moody's believes that the achievement of these goals
however remains a significant challenge, and that further downward
rating pressure cannot be excluded if no visible progress is made.

Moody's said any lack of improvement in the bank's financial
profile, and a failure to reach a Core Tier 1 ratio above 7% in a
short timeframe in particular, could prompt Banco Popolare's BFSR
to become more weakly positioned in the D+ category, or even
result in a further lowering of the BFSR itself.


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


VIMPEL-COMMUNICATIONS JSC: S&P Puts 'BB+' Rating on Negative Watch
------------------------------------------------------------------
Standard & Poor's Ratings Services said it placed its 'BB+' long-
term corporate credit rating on Russian telecommunications
operator Vimpel-Communications (JSC) and its related debt ratings
on CreditWatch with negative implications.

The CreditWatch placement follows the announcement by Vimpel-
Communications' parent VimpelCom Ltd. (not rated) that it plans to
merge with Weather Investments SpA, the holding company that owns
51.7% of Orascom Telecom Holdings S.A.E., 100% of Wind
Telecomunicazioni SpA, and a number of other telecom operators in
several other countries.

"S&P understands that the perimeter for the potential merger, as
well as some of its conditions, are yet to be defined," said
Standard & Poor's credit analyst Alexander Griaznov.
"Nevertheless, it is already clear to us that following the
merger, the consolidated debt leverage at VimpelCom Ltd. will
increase significantly."

S&P estimates that the ratio of debt to EBITDA will likely
approach 3x on a fully adjusted basis, a figure that is not
factored into the existing rating on Vimpel-Communications.

S&P also understands that in order to finance the transaction, the
VimpelCom group will have to raise new debt and spend a
significant part of its cash balances, which creates uncertainty
about liquidity and its capital structure after the
reorganization.

"Because S&P views the credit quality of Vimpel-Communications and
that of VimpelCom Ltd. as closely correlated, S&P believes that
the proposed transaction could significantly increase financial
pressure on Vimpel-Communications, including, primarily, lower
flexibility of free cash flow generation and increased dividend
distributions," Mr.  Griavnov added.

The rating on Vimpel-Communications reflects S&P's view of the
company's aggressive growth orientation, reduced financial
flexibility, and intense competition in the Russian mobile
telephony market.  The rating is supported, in S&P's view, by the
company's sound market position, robust profitability, and strong
cash generation.

S&P expects to resolve the CreditWatch status after the proposed
transaction takes place.  S&P could lower the rating by one or
more notches, depending on S&P's assessment of the impact of the
merger on Vimpel-Communications' financial profile, including
clarification of its capital structure and changes to its
financial policy.

Should the transaction not take place, S&P would likely affirm the
rating.


* NIZHNIY NOVGOROD: Fitch Assigns 'B+' Ratings on Domestic Bonds
----------------------------------------------------------------
Fitch Ratings has assigned the Nizhniy Novgorod Region's upcoming
RUB5 billion domestic bond, due 7 October 2015, expected ratings
of Long-term local currency 'B+' and National Long-term 'A(rus)'.

The region's Long-term foreign and local currency ratings are both
'B+'.  The region has a Short-term foreign currency rating of 'B',
and a National Long-term rating of 'A(rus)'.  The Outlooks on the
Long-term ratings are Stable.

The bond has a fixed step-down coupon.  The coupon rate will be
set at the auction on 7 October 2010.  The principal will be
amortized by 30% of the initial bond issue value on 3 October
2013, and by another 40% on 2 October 2014.  The remaining 30%
will be redeemed on 7 October 2015.  The proceeds from the bond
will be used to refinance maturing debt and to fund capital
expenditure.

The final rating is contingent upon the receipt of final documents
conforming to information already received.

The Nizhniy Novgorod Region is located in the central part of the
Russian Federation.  It contributed 1.74% of the RF's GDP in 2008,
and accounted for 2.35% of the country's population.


===========
S W E D E N
===========


* SWEDEN: Business Failures Up 15% in September 2010
----------------------------------------------------
Vivian Tse at The Local, citing business and credit information
agency UC, reports that bankruptcies rose 15% in Sweden in
September.

According to The Local, bankruptcies increased particularly in
metropolitan counties, which earlier had been the driving force
behind the decrease in bankruptcies.  However, the number of
bankruptcies in 2010 so far has declined by 12% overall, The Local
notes.

The Local relates the number of business failures rose to 487, an
increase of 64 or 15% compared with same month in 2009.

"Primarily, small companies with few employees and revenues of
several million kronor have been hardest hit by the recession,
with bankruptcies as a result.  Many of them have fought their way
through the crisis, but some of them have now reached a point
where they can no longer run the company," The Local quoted Roland
Sigbladh, market director at UC, as saying.

In the first three quarters of 2010, 4,547 businesses have gone
bankrupt, compared with 5,146 in the first three quarters of 2009,
The Local discloses.  In particular, Stockholm and Skane counties
experienced a sharp increase in corporate bankruptcies in
September, The Local relates.

The growing number of bankruptcies in September can be mainly
attributed to the construction industry and trade and private
service companies, The Local says.


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


BLACKPOOL FOOTBALL CLUB: To Go Into Administration
--------------------------------------------------
Blackpool Football Club to go into administration.

Wakefield News reports that the Championship One club went within
one match of the promotion play-off final last month but has
struggled off the pitch since the resignation of Chairman Bobby
Hope in June.  The report relates that the Panthers, who have been
tenants at Fylde RFC for the last four seasons, owe a considerable
but undisclosed sum to the Inland Revenue.

Wakefield News notes Chairman John Chadwick told the Blackpool
Gazette: "We have had to call in the administrators and the Rugby
Football League have been notified.  There are individuals who
would be interested in possibly forming a new company and meetings
will be held as soon as possible.  But this is a sad day.  The
crowds have never picked up despite our steady improvement in the
league."

The club, Wakefield News relates, made a big investment in players
this year in a concerted bid for promotion but were docked 10
points by the RFL for financial irregularities.

                       About Blackpool Football

Blackpool Football Club are an English football club founded in
1887 from the Lancashire seaside town of Blackpool.  They are
competing the 2010?11 season in the Premier League, the top tier
of professional football in England, having won the Football
League Championship play-off Final at the end of the 2009?10
campaign, their 100th consecutive season in the Football League.


DECO 8: Fitch Affirms 'CCsf' Ratings on Two Classes of Notes
------------------------------------------------------------
Fitch Ratings has affirmed all eight classes of DECO 8 - UK
Conduit 2 plc's commercial mortgage-backed notes.  At the same
time, Fitch removed classes A2, B, C and D from Rating Watch
Negative and assigned a Negative Outlook.  The rating actions are:

  -- GBP143.9m class A1 (XS0251885603): affirmed at 'AAAsf';
     Outlook Stable

  -- GBP255.8m class A2 (XS0251886163): affirmed at 'BBB-sf'; RWN
     removed, assigned Negative Outlook

  -- GBP32.3m class B (XS0251886833): affirmed at 'BBsf'; RWN
     removed, assigned Negative Outlook

  -- GBP33.9m class C (XS0251887211): affirmed at 'B+sf'; RWN
     removed, assigned Negative Outlook GBP23.4m class D
     (XS0251887724): affirmed at 'Bsf'; RWN removed, assigned
     Negative Outlook GBP60.9m class E (XS0251889696): affirmed at
     'CCsf'; assigned Recovery Rating 'RR4'

  -- GBP14.2m class F (XS0251890199): affirmed at 'CCsf'; assigned
     Recovery Rating 'RR6'

  -- GBP8.3m class G (XS0251890868): affirmed at 'CCsf'; assigned
     Recovery Rating 'RR6'

Following the publication of the servicer's special notice
regarding the new Microsoft lease terms, Fitch has removed four
classes of the DECO 8 notes from RWN and affirmed all the classes
of the notes.  The three new leases (for the entire Microsoft
Campus property in Reading, comprising three buildings) are for a
15-year term with passing rent of GBP5.6 million per annum.  There
are no break options; however, the leases contain a 14-month rent-
free period spread over the first six years.  The leases are
subject to rent reviews at the end of year five and year ten.


FUSION GLASS: Assets Sold to Chelsea Artisans
---------------------------------------------
Fusion Glass Limited, which entered into administration on
September 27 with the appointment of Joint Administrators Jason
Baker and Geoff Rowley, partners at FRP Advisory LLP, the
specialist restructuring, recovery and insolvency firm, has been
sold for an undisclosed sum to Chelsea Artisans (Contracting)
Limited.

Fusion Glass went into administration following the economic
downturn in the construction sector.

Following their appointment, the Joint Administrators secured a
refinance, enabling the business to be traded through
administration while a buyer was sought.

Commenting on the deal, Jason Baker said: "The construction sector
was one of the biggest casualties of the recession and Fusion
Glass suffered the knock-on effects.  Ultimately, trading losses
led to severe cashflow difficulties which, in turn, led to the
business' insolvency.

"To ensure the business could be traded as a going concern during
administration, protecting goodwill while a buyer was sought, we
sadly had to make 16 of the total 48 employees redundant.  We were
able to secure funding in Administration, so the remaining
business could be traded while marketing it to potential buyers.

"Having successfully secured the sale of Fusion Glass, we are now
working with the new management team to ensure all redundancy
claims are processed as quickly as possible and that appropriate
levels of support are provided."

The combined business will have an annual turnover of
approximately GBP4.5 million and operate from sites in Croydon and
Esher, employing more than 45 design, sales, support, production
and installation staff.

The new company, which will trade as both the Chelsea Artisans and
Fusion Glass Design brands, will be headed by joint managing
directors Jeremy John and Cliff McIntee.  They added: "It has
undoubtedly been a tough few years for the construction sector;
however, we are now starting to see an increased appetite for both
new and refurbishment contracts.  This acquisition has greatly
strengthened our architectural glass offering and we feel
confident it will significantly fuel our continued growth."

Fusion Glass Limited designs decorative glass for large scale
architectural projects and one-off commissions for clients
including Berkeley Homes, Laing O'Rourke and Morgan Lovell.


MCKINSTRIE WILDE: Placed in Compulsory Liquidation
--------------------------------------------------
The Drum reports that Edinburgh graphic design house McKinstrie
Wilde has been placed into compulsory liquidation following two
winding up orders being placed against it.  Donald Iain McNaught
of Invocas Financial has been appointed as the liquidator.

According to the report, the company, run by Aird McKinstrie who
acted as both creative director and managing director since
founding it in 1999 alongside Monica Wilde, had a net worth of
GBP14,407 as April 2009.

CreditSafe said four directors were involved in the business, Aird
McKinstrie, Graham MacReady, Alison McKinstrie and Monica Wilde.
All four were shareholders in the business alongside Brian Murphy
and Elizabeth Sanders, the report adds.


NORTH PARK (BRADFORD) LIMITED: Goes Into Administration
-------------------------------------------------------
Will Kilner at Telegraph & Argus reports that North Park
(Bradford) Limited has gone into administration, owing its bank
about GBP8 million.

According to the report, the company has fallen victim to the
property market slump and is now in the hands of joint
administrators Adrian Berry and Daniel Butters, of Deloitte's
Leeds office.  The report relates the administrators are pushing
ahead with a strategy to rent and sell the apartments in a bid to
recover money for creditors, including the Yorkshire Bank, which
provided the original development funding.

The report notes North Park (Bradford) Limited was set up as a
consortium to carry out the first phase of the Woolston Warehouse
project, which saw the creation of 106 apartments off Sunbridge
Road, in the Goitside area of the city centre.

Simon Mantle, case manager for Deloitte, stressed that it was
"business as usual" in terms of apartment sales and rentals at
Woolston Warehouse, despite the administration, the report
relates.

"North Park (Bradford) owns a block of flats in Bradford city
centre and has succumbed to the downturn in the property market.
The bank has asked us to step in, with the directors' co-
operation.  We are in there professionalizing the process and
delivering a rental and sales strategy.  We have been advising the
bank on this for some time.  It just got to a point where it
wasn't really going anywhere and the bank wanted to take control,
but that was done via a director's appointment.  Although they are
in administration, it's very much business as usual.  The
properties are up for sale and rent. That's how we are looking to
recover the position for the bank and creditors," Telegraph &
Argus quoted Mr. Mantle as saying.

North Park (Bradford) Limited is a property developer.


LIVERPOOL FOOTBALL CLUB: At Risk of Points Penalty
--------------------------------------------------
Liverpool Football Club and Athletic Grounds would be at risk of a
nine-point deduction if the owners' holding company is put into
administration, it emerged on October 7, 2010, The Press
Association reports.

According to the report, initially it had been thought the Premier
League would not penalize the club for Kop Holdings becoming
insolvent, but now the threat of a points deduction has become a
serious one.  The Press Association relates that the Royal Bank of
Scotland could put Kop Holdings, the company owned by Tom Hicks
and George Gillett, into administration if the Americans continue
to block a takeover by New England Sports Ventures and have not
paid off their GBP280 million debts to the bank by October 15.

Under Premier League rules, the report notes, the fact that the
holding company is solely concerned with the ownership of
Liverpool and football-related matters could trigger the nine-
point penalty.

"It is not completely clear whether the nine-point penalty would
come into play but it would be a risk," the report quoted an
unnamed insider as saying.

                      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.


P&A DAVIES: Goes Into Administration After 111 Years
----------------------------------------------------
P&A Davies Ltd has gone into administration.

Allison Dickinson at Chester Chronicle reports that P&A Davies
closed its shops in Bridge Street, Brook Street, Charles Street in
Hoole, Cliveden Road in Lache, The Parade in Blacon and Hope Farm
Precinct in Great Sutton October 1, 2010.

According to the report, a statement in the company's Bridge
Street store window read: "The bakery in Hawarden has been
acquired by Frank Roberts and Sons and will continue to produce
for wholesale customers whilst a review of the business is
conducted.  The retail shops will close from October 1 whilst new
owners complete the negotiations.  All outstanding cake orders
will be honoured, please contact the bakery on 01244 381567.
Any creditor enquiries should be addressed to Alex Koffman, Baker
Tilly on 0161 830 4000."

Chester Chronicle notes that Nantwich-based Chatwins, who have 20
shops and six coffee lounges throughout Cheshire and
Staffordshire, are currently in talks to try and thrash out a deal
to take over the six stores and help staff keep their jobs.  The
report relates Chatwins Chief Executive Edward Chatwin said: "It
is our intention to take over the shops, but at this stage it is
still in the hands of the legal teams.  We have approached the
staff and hope that we can take on a majority of those who have
been made redundant."

The report notes that P&A Davies' Hawarden-based bakery has
already been sold to Northwich-based bakers Frank Roberts and
Sons.

Meanwhile, Chester Chronicle says, Managing director Mike Braddock
confirmed that staff at the site has retained their jobs.
"Roberts Bakery has taken on 93 staff from P&A Davies.  We are
unable to confirm any plans for the future, including projected
staffing levels, until we have completed a full strategic
evaluation of the business," the report quoted Mr. Braddock as
saying.

P&A Davies Ltd is a family-run bakery business in Chester for 111
years.


POLYGON INVESTMENT: To Return Investors' Money by March 31
----------------------------------------------------------
Katherine Burton at Bloomberg News reports that Polygon Investment
Partners LLP, run by Reade Griffith and Paddy Dear, will return
all investors' money in its Global Opportunities fund by March 31.

Investors, including UBS AG, dropped a petition that in August
asked a Cayman Islands court to appoint an independent liquidator
for the fund, Bloomberg says, citing an Oct. 4 letter signed by
Messrs. Griffith and Dear that was sent to clients.

The Polygon Global Opportunities Master Fund, which manage about
US$8 billion at its peak, has returned about 60% of its assets to
investors since being shut in late 2008, Bloomberg relates.  It
lost almost half its assets as convertible bonds, loans and stocks
tumbled in the wake of Lehman Brothers Holdings Inc.'s bankruptcy,
Bloomberg discloses.

According to Bloomberg, about half of the current US$1.2 billion
in the fund is in easier-to-sell assets that will be liquidated
between now and the end of the first quarter.  The remainder is in
more illiquid assets that will be sold by auction by the beginning
of 2011, according to the letter, Bloomberg notes.  Investors will
have the option of getting all their money back, or keeping their
stake in the harder-to-sell investments, which will be put into a
new fund managed by the Polygon team, Bloomberg states.

Polygon Investment Partners LLP is based in London.


PRELUDE CDO: S&P Raises Rating on Series 2005-4 Notes to B+p (sf)
-----------------------------------------------------------------
Standard & Poor's Ratings Services took various CreditWatch and
rating actions on seven CDO tranches.

Specifically, S&P has:

* Raised the rating on one CDO tranche.

* Removed from CreditWatch negative the ratings on two CDO
  tranches;

* Placed on CreditWatch negative the ratings on two CDO tranches;

* Placed on CreditWatch positive the rating on one CDO tranche;
  and

* Affirmed the rating on one CDO tranche.

The CreditWatch and rating actions follow S&P's recent rating
actions on the underlying collateral.  According to the
transaction documents, the ratings on these tranches are weak-
linked to the rating on the underlying collateral.  Under S&P's
criteria applicable to transactions such as these, S&P would
generally reflect changes to the rating on the collateral in its
rating on the tranche.

                          Ratings List

                          Rating Raised

                     Prelude Europe CDO Ltd.
   A$40 Million Credit-Linked Notes Series 2005-4 (Credit Sail)

                          Rating
                          ------
                 To                      From
                 --                      ----
                 B+p (sf)                Bp (sf)

            Ratings Removed From Creditwatch Negative

                       Helium Capital Ltd.
EUR25 Mil. Limited Recourse Secured Floating-Rate Notes Series 75

                       Rating
                       ------
              To                      From
              --                      ----
              BB+                     BB+/Watch Neg

                        Helium Capital Ltd.
EUR25 Mil. Limited Recourse Secured Floating-Rate Notes Series 76

                       Rating
                       ------
              To                      From
              --                      ----
              BB+                     BB+/Watch Neg

             Ratings Placed on Creditwatch Negative

                 Cheyne Credit SPI (Ireland) PLC
   EUR17 Million Coupon Paying Cheyne Managed CSO Fund-Linked SPI
                         Notes Series 9

                          Rating
                          ------
                 To                      From
                 --                      ----
                 AAAp (sf)/Watch Neg     AAAp (sf)

                 Cheyne Credit SPI (Ireland) PLC
EUR6 Million Non-Coupon Paying Cheyne Managed CSO Fund-Linked SPI
                         Notes Series 10

                          Rating
                          ------
                 To                      From
                 --                      ----
                 AAAp (sf)/Watch Neg     AAAp (sf)

               Rating Placed on Creditwatch Positive

                       Lunar Funding I Ltd.
      EUR15 Million Secured Asset-Backed Deferrable Fixed-Rate
                        Instalment Notes

                            Rating
                            ------
                   To                      From
                   --                      ----
                   AA/Watch Pos            AA

                         Rating Affirmed

                    Willow No.2 (Ireland) PLC
     EUR3.77 Million Secured Limited Recourse Notes Series 29

                            Rating
                            ------
                   To                      From
                   --                      ----
                   AAA (sf)                AAA (sf)


RESIDENTIAL MORTGAGE: S&P Puts Prelim. BB- Rating Class B3 Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary credit
ratings to Residential Mortgage Securities 25 PLC's class A1, A2,
M1, M2, B1, B2, and B3 notes.

RMS 25 will be the 24th transaction to carry the RMS epithet.

The collateral pool consists primarily of U.K. nonconforming
residential and buy-to-let mortgage loans originated in or before
2008.  In addition, a proportion of the pool (about 6%) has been
recently originated by Kensington Mortgage Co. Ltd.

On the closing date, RMS 25 will issue the class A1, A2, M1, M2,
B1, B2, and B3 rated notes.  At the same time, the issuer will
issue the unrated class R notes.  S&P understands the issuer will
use the class R notes, among other things, to fund the general
reserve fund to 3.8% of the collateralized note balance at closing
and will redeem them from residual interest income.  Subject to a
number of trigger events, the general reserve fund may amortize.

The notes will be collateralized by a pool of first-ranking,
nonconforming, buy-to-let, and prime residential mortgage loans
secured against property located in England, Scotland, and Wales.

                           Ratings List

              Residential Mortgage Securities 25 PLC
      Up to EUR186 Million Mortgage-Backed Floating-Rate Notes

                       Prelim.            Prelim.
        Class          rating             amount (mil. EUR)
        -----          -------            -----------------
        A1             AAA (sf)            130.3
        A2             AAA (sf)              3.7
        M1-Dfrd        AA (sf)              18.6
        M2-Dfrd        A (sf)               10.2
        B1-Dfrd        BBB (sf)             12.6
        B2-Dfrd        BB (sf)               9.7
        B3-Dfrd        BB- (sf)              0.9


TITAN EUROPE: S&P Puts Low-B Ratings on CreditWatch Positive
------------------------------------------------------------
Standard & Poor's Ratings Services placed its credit ratings on
Titan Europe 2007-3 Ltd.'s class A1, A2, and B notes on
CreditWatch positive.  At the same time, S&P removed its ratings
on the class A1 and A2 notes from CreditWatch negative.

Interest on some of the notes has been deferred since October
2008.  As a result of this ongoing interest shortfall and its
expectation of principal losses, S&P previously lowered its
ratings on the class D to G notes to 'D (sf)' and lowered its
rating on the class C notes to 'CCC- (sf)' (see "Related Criteria
And Research").  At that time, S&P also lowered the ratings on the
more highly rated classes of notes because they either did not
receive full interest payments or were at risk of receiving only
partial interest.  A payment default with regard to the most
senior class of notes outstanding would result in a note event of
default, according to the terms and conditions of the notes.  S&P
would likely lower all its ratings to 'D (sf)' in this scenario.

Hudson Advisors Germany GmbH (which S&P currently rank as ABOVE
AVERAGE, with a stable outlook), acting as special servicer for
the Metro loan (securitized loan outstanding balance:
EUR39,140,227), completed in August 2010 the disposal of the
property backing the loan.  The special servicer reported a sale
price of EUR12,250,000.  S&P expects a portion of the net recovery
proceeds to be available to service the notes on the next note
interest payment date, with the remainder being allocated toward
partial principal repayment.

S&P understands that Hudson Advisors Germany is in the process of
assessing prior-ranking costs.  This would determine the amount of
cash available to service the notes on the next IPD (October
2010).  However, S&P believes there will be sufficient income to
make up the interest shortfalls on the class A2 and B notes.

The resolution of the Metro loan will also result, in S&P's view,
in reducing the size of any future interest shortfalls.  All else
being equal and as long as the Bacchus loan remains in special
servicing, S&P anticipate interest shortfalls to remain with the
class C and D notes, which S&P rate 'D (sf)' and 'CCC- (sf)',
respectively.  S&P could take further rating actions if the class
C notes continue to accrue deferred interest.  In S&P's view, the
risk of a payment default on the class A notes, which would
trigger a note event of default, has significantly reduced as a
consequence.

The resolution of the Metro loan will also result in crystallizing
losses.  In S&P's view, the class D and E notes will most likely
be partially and fully written off, respectively.  S&P's current
rating on both classes of notes is 'D (sf)'.

S&P expects to resolve the CreditWatch placements in due course.

Titan Europe 2007-3 is a true-sale commercial mortgage-backed
securities transaction secured against 15 U.K. loans.  The
transaction's expected maturity date and legal maturity date are
October 2013 and October 2016, respectively.

                          Ratings List

                     Titan Europe 2007-3 Ltd.
   EUR778.822 mil commercial mortgage-backed floating-rate notes

     Ratings Removed From Creditwatch Negative and Placed on
                      Creditwatch Positive

                            Rating
                            ------
      Class     To                         From
      -----     --                         ----
      A1        BB (sf)/Watch Pos          BB (sf)/Watch Neg
      A2        B (sf)/Watch Pos           B (sf)/Watch Neg

             Ratings Placed on Creditwatch Positive

                                 Rating
                                 ------
           Class     To                         From
           -----     --                         ----
           B         B- (sf)/Watch Pos          B- (sf)


WINNIE CARE: Goes Into Administration
-------------------------------------
Lee Peace at South Yorkshire Times reports that Winnie Care
Highgrove Limited is now under the control of administrators.

According to the report, the firm's staff has been told the
business is hoped to be sold as a going concern.  However, the
report relates, this week some were on the verge of revolt over
unpaid wages, despite reassurances from administrators to process
lost pay and find a buyer for the three homes.

The report notes that an unnamed angry whistleblower has lifted
the lid on the turmoil faced by workers and residents.  The report
relates she claimed that:

* Workers fear the homes could close within months, leaving them
  jobless at Christmas.

* One home hired a singer to entertain residents, but staff has
  not been paid for over a month,

* Staff has been gagged from talking to the press.

Winnie Care Highgrove Limited runs Highgrove in Mexborough, along
with The Beeches and Sandygate care homes in Wath.


* UK: No Second Round of Bailouts for Banks, Chancellor Says
------------------------------------------------------------
Harry Wilson at The Daily Telegraph reports that the prospect of a
second round of bailouts for the UK's banks has been dismissed by
Chancellor George Osborne and the industry's main trade body.

The Daily Telegraph relates responding to a report from the New
Economics Foundation (NEF), Mr. Osborne said he saw "no
indication" of a need for new capital injections to support the
British banking sector.

According to The Daily Telegraph, Mr. Osborne's remarks were
supported by the British Bankers' Association, which said UK banks
were "well placed to weather any financial problems that may arise
in the future".


* UK: Torbay Tops Insolvency List in 2009
-----------------------------------------
Emily Pearce at the Isle of Wight County Press reports that the
Island was placed 19th in a list of insolvency hotspots with 361
new cases of bankruptcy and personal insolvency declared last
year.

Citing figures published by insolvency trade body R3, IWCP
discloses that Torbay tops the list, with 470 new personal
insolvencies last year, closely followed by Mansfield, Weston-
Super-Mare and Newcastle.

Personal insolvency reached record levels in 2009, with more than
134,000 in England and Wales, IWCP reports.

IWCP relates R3 President Steven Law said the rate was expected to
continue rising over the next few years.

"Over the course of the last decade personal insolvencies have
increased by 350 per cent and our research also shows that 42 per
cent of the British population are currently finding it a struggle
financially to get through the month," IWCP quoted Mr. Law as
saying.


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


* EUROPE: Banking Regulators Favor "Bail-In" Measures
-----------------------------------------------------
Brooke Masters at The Financial Times reports that Jochen Sanio,
head of the German regulator The Federal Financial Supervisory
Authority (BaFin), said banking regulators are "light years away"
from agreeing an international framework for winding up large
failing banks, so more government bail-outs may be inevitable.

The FT says as a result, Mr. Sanio and other European regulators
are enthusiastic about "bail-in" measures, which would force
creditors to share the cost of propping up large banks before
taxpayers have to foot the bill.

The FT notes that while US regulators are pushing for a
cross-border resolution regime that would allow a large global
bank to collapse without having it take the entire financial
system with it, many European regulators have the opposite view.
According to the FT, European regulators believe a global regime
is years away and would prefer to focus on what can be done to
shift the costs of bank rescues away from their taxpayers.

The Financial Stability Board, made up of 24 countries, the
International Monetary Fund and other global groups, is supposed
to make recommendations to the leaders of the Group of 20 nations
next month, the FT discloses.  But participants say the group is
split over resolution plans, bail-ins and whether to impose extra
capital requirements on the biggest banks, the FT states.


* EUROPE: Bond Refinancings May Overshadow Spending Cuts in 2011
----------------------------------------------------------------
Anchalee Worrachate at Bloomberg News reports that record
refinancing needs for Europe's highest-deficit nations may
overshadow spending cuts next year and increase the risk that more
countries will follow Greece in requiring a rescue to avoid
default.

Euro-region governments have to repay EUR582 billion (US$803
billion) of debt in 2011, up from EUR521 billion this year,
according to estimates from ING Groep NV, Bloomberg notes.

Bloomberg relates government figures show Spain has to roll over
almost 20% of its outstanding loans.  Portugal has EUR23 billion
of debt coming due and Ireland has more than EUR10 billion,
according to data compiled by Bloomberg.

Bloomberg says a EUR750 billion backstop arranged by the European
Union and the International Monetary Fund has failed to allay
investor concern that some of the so-called euro-peripheral
countries may buckle under the weight of their debt.

Euro nations are struggling to implement spending cuts needed to
trim deficits to the 3% limit demanded of the common currency
members, Bloomberg states.


* EUROPE: Germany to Draw Up Permanent Euro Insolvency Mechanism
----------------------------------------------------------------
John Simpson at Bloomberg News, citing Financial Times, reports
that Germany next month will propose the establishment of rules
for emergency funds for euro region member states facing debt
crisis.

According to Bloomberg, the newspaper said the proposal is
expected to require changes to the European Union's Lisbon treaty,
and is likely to spur strong opposition from several states,
including the U.K., which is not a euro member.

Bloomberg notes the FT said the German government maintains that a
permanent mechanism is needed to force private lenders to
participate in paying for the consequences of a future financial
crisis.


* BOND PRICING: For the Week October 4 to October 8, 2010
---------------------------------------------------------

Issuer                Coupon    Maturity   Currency    Price
------                ------    --------   --------    -----

AUSTRIA
-------
RAIFF ZENTRALBK         4.500   9/28/2035       EUR     64.76

BELGIUM
-------
FORTIS BANK             8.750   12/7/2010       EUR     14.61

FINLAND
-------
MUNI FINANCE PLC        1.000   6/30/2017       ZAR     66.98
MUNI FINANCE PLC        1.000   2/27/2018       AUD     68.59
MUNI FINANCE PLC        0.500   9/24/2020       CAD     70.85
MUNI FINANCE PLC        0.500   3/17/2025       CAD     56.31
MUNI FINANCE PLC        0.250   6/28/2040       CAD     23.99

FRANCE
------
AIR FRANCE-KLM          4.970    4/1/2015       EUR     15.04
ALCATEL SA              4.750    1/1/2011       EUR     16.65
ALCATEL-LUCENT          5.000    1/1/2015       EUR      3.53
ALTRAN TECHNOLOG        6.720    1/1/2015       EUR      4.79
ATOS ORIGIN SA          2.500    1/1/2016       EUR     52.24
BNP PARIBAS            10.050   7/24/2012       USD     64.27
CALYON                  6.000   6/18/2047       EUR     52.89
CAP GEMINI SOGET        3.500    1/1/2014       EUR     44.00
CAP GEMINI SOGET        1.000    1/1/2012       EUR     43.95
CLUB MEDITERRANE        4.375   11/1/2010       EUR     49.94
CLUB MEDITERRANE        6.110   11/1/2015       EUR     16.64
EURAZEO                 6.250   6/10/2014       EUR     56.93
FAURECIA                4.500    1/1/2015       EUR     22.26
GROUPE VIAL             2.500    1/1/2014       EUR     20.79
MAUREL ET PROM          7.125   7/31/2015       EUR     13.60
MAUREL ET PROM          7.125   7/31/2014       EUR     16.13
NEXANS SA               4.000    1/1/2016       EUR     64.64
PEUGEOT SA              4.450    1/1/2016       EUR     31.61
PUBLICIS GROUPE         3.125   7/30/2014       EUR     38.27
PUBLICIS GROUPE         1.000   1/18/2018       EUR     47.45
RHODIA SA               0.500    1/1/2014       EUR     47.88
SOC AIR FRANCE          2.750    4/1/2020       EUR     20.97
SOITEC                  6.250    9/9/2014       EUR      9.22
TEM                     4.250    1/1/2015       EUR     54.91
THEOLIA                 2.700    1/1/2041       EUR     12.11
VALEO                   2.375    1/1/2011       EUR     46.95
ZLOMREX INT FIN         8.500    2/1/2014       EUR     57.63
ZLOMREX INT FIN         8.500    2/1/2014       EUR     57.63

GERMANY
-------
DEUTSCHE BK LOND        3.000   5/18/2012       CHF     61.69
DEUTSCHE BK LOND        0.500   8/25/2017       BRL     52.73
ESCADA AG               7.500    4/1/2012       EUR     17.99
L-BANK FOERDERBK        0.500   5/10/2027       CAD     50.96
QIMONDA FINANCE         6.750   3/22/2013       USD      3.69
RENTENBANK              1.000   3/29/2017       NZD     75.17
SOLON AG SOLAR          1.375   12/6/2012       EUR     37.62

GREECE
------
ATHENS URBAN TRN        5.008   7/18/2017       EUR     70.00
ATHENS URBAN TRN        4.851   9/19/2016       EUR     73.25
HELLENIC REP I/L        2.300   7/25/2030       EUR     51.48
HELLENIC REP I/L        2.900   7/25/2025       EUR     55.50
HELLENIC REPUB          5.250    2/1/2016       JPY     71.15
HELLENIC REPUB          5.000   8/22/2016       JPY     67.43
HELLENIC REPUB          5.200   7/17/2034       EUR     67.06
HELLENIC REPUBLI        3.600   7/20/2016       EUR     73.14
HELLENIC REPUBLI        4.300   7/20/2017       EUR     71.39
HELLENIC REPUBLI        4.600   7/20/2018       EUR     70.68
HELLENIC REPUBLI        6.000   7/19/2019       EUR     75.14
HELLENIC REPUBLI        4.700   3/20/2024       EUR     65.44
HELLENIC REPUBLI        5.300   3/20/2026       EUR     66.70
HELLENIC REPUBLI        4.500   9/20/2037       EUR     58.87
HELLENIC REPUBLI        4.600   9/20/2040       EUR     58.72
NATIONAL BK GREE        3.875   10/7/2016       EUR     76.01
YIOULA GLASSWORK        9.000   12/1/2015       EUR     75.39
YIOULA GLASSWORK        9.000   12/1/2015       EUR     75.13

IRELAND
-------
ALLIED IRISH BKS        5.250   3/10/2025       GBP     61.02
ALLIED IRISH BKS        7.875    7/5/2023       GBP     77.72
BANK OF IRELAND         4.625   2/27/2019       EUR     73.92
DEPFA ACS BANK          0.500    3/3/2025       CAD     35.74
DEPFA ACS BANK          3.250   7/31/2031       CHF     73.30
DEPFA ACS BANK          4.900   8/24/2035       CAD     66.30
DEPFA ACS BANK          1.920    5/9/2020       JPY     73.88
DEPFA BANK PLC          3.150    4/3/2018       EUR     72.82
IRISH NATIONWIDE        5.500   1/10/2018       GBP     44.93
IRISH NATIONWIDE       13.000   8/12/2016       GBP     41.63

ITALY
-----
COMUNE DI MILANO        4.019   6/29/2035       EUR     73.05

LUXEMBOURG
----------
ARCELORMITTAL           7.250    4/1/2014       EUR     28.96
CRC BREEZE              5.290    5/8/2026       EUR     63.50
GLOBAL YATIRIM H        9.250   7/31/2012       USD     72.88
IIB LUXEMBOURG         11.000   2/19/2013       USD     60.00
INTL INDUST BANK        9.000    7/6/2011       EUR     12.75
LIGHTHOUSE INTL         8.000   4/30/2014       EUR     58.14
LIGHTHOUSE INTL         8.000   4/30/2014       EUR     58.87

NETHERLANDS
-----------
APP INTL FINANCE       11.750   10/1/2005       USD      0.01
ARPENI PR INVEST        8.750    5/3/2013       USD     43.50
ARPENI PR INVEST        8.750    5/3/2013       USD     39.42
ASTANA FINANCE          7.875    6/8/2010       EUR     11.98
BK NED GEMEENTEN        0.500   2/24/2025       CAD     55.55
BRIT INSURANCE          6.625   12/9/2030       GBP     67.69
ELEC DE CAR FIN         8.500   4/10/2018       USD     55.50
INDAH KIAT INTL        12.500   6/15/2006       USD      0.01
IVG FINANCE BV          1.750   3/29/2017       EUR     74.31
NATL INVESTER BK       25.983    5/7/2029       EUR     31.06
NED WATERSCHAPBK        0.500   3/11/2025       CAD     55.26
RBS NV EX-ABN NV        6.316   6/29/2035       EUR     70.48
SIDETUR FINANCE        10.000   4/20/2016       USD     65.50
TJIWI KIMIA FIN        13.250    8/1/2001       USD      0.01

NORWAY
------
EKSPORTFINANS           0.500    5/9/2030       CAD     44.10
KOMMUNALBANKEN          0.500   9/24/2014       BRL     71.47
NORSKE SKOGIND          7.000   6/26/2017       EUR     74.61

POLAND
------
REP OF POLAND           3.300   6/16/2038       JPY     74.47
REP OF POLAND           2.648   3/29/2034       JPY     67.29

PORTUGAL
--------
METRO DE LISBOA         4.061   12/4/2026       EUR     74.82
PARPUBLICA              3.567   9/22/2020       EUR     69.96
PORTUGUESE OT'S         4.100   4/15/2037       EUR     71.76

RUSSIA
------
ACBK-INVEST             9.500   4/14/2011       RUB     70.00
AGROKOM GROUP          10.000   6/21/2011       RUB     95.00
AGROSOYUZ              17.000   3/28/2012       RUB     95.00
APK ARKADA             17.500   5/23/2012       RUB      0.38
ARKTEL-INVEST          12.000    4/9/2012       RUB      2.00
ATOMSTROYEXPORT-        7.750   5/24/2011       RUB     98.00
BANK SOYUZ             16.000    5/2/2011       RUB     99.00
BANK SOYUZ              9.500   2/23/2011       RUB    106.00
BARENTSEV FINANS       20.000    7/4/2011       RUB      0.02
BASHKIRENERGO           8.300    3/9/2011       RUB     99.50
CREDIT EUROPE BA       11.500   6/28/2011       RUB    103.80
DALUR-FINANS           14.000    2/5/2013       RUB     99.05
DVTG-FINANS            17.000   8/29/2013       RUB     18.00
EMALIANS-FINANS        10.970    7/8/2011       RUB     75.00
ENERGOSTROY-FINA       12.000   5/20/2011       RUB    100.00
EUROKOMMERZ            16.000   3/15/2011       RUB      0.01
FAR EASTERN GENE       10.500    3/8/2013       RUB     75.00
FINANCEBUSINESSG       10.000    7/1/2013       RUB     75.50
FORTUM OJSC             7.600    2/6/2013       RUB     99.00
GRACE DIAMOND          15.000    6/7/2012       RUB    110.47
GRADOSTROY-INVES       11.000    3/3/2011       RUB     75.00
IART                   12.000    8/4/2013       RUB      5.00
IAZS                   11.000   12/8/2010       RUB      2.00
INPROM                  9.500   5/18/2011       RUB     40.13
INTL INDUST BANK       13.250    1/3/2018       RUB    100.00
IZHAVTO                18.000    6/9/2011       RUB     11.31
KARUSEL FINANS         12.000   9/12/2013       RUB    100.00
KRAYINVESTBANK          8.500    8/5/2011       RUB     75.00
LADYA FINANS           13.750   9/13/2012       RUB     75.00
LEKSTROY                0.100   7/22/2011       RUB      8.89
M-INDUSTRIYA           14.250   7/10/2013       RUB     55.00
M-INDUSTRIYA           12.250   8/16/2011       RUB     30.10
MACROMIR-FINANS         7.750    7/3/2012       RUB      0.02
MAIN ROAD OJSC         10.200    6/3/2011       RUB     33.00
MIG-FINANS              0.100    9/6/2011       RUB      1.02
MIRAX                  14.990   5/17/2011       RUB     36.00
MIRAX                  17.000   9/17/2012       RUB     35.00
MORTON-RSO             12.000   2/28/2011       RUB    100.00
MOSMART FINANS          0.010   4/12/2012       RUB      2.00
MOSOBLGAZ              12.000   5/17/2011       RUB     72.50
MOSOBLTRUSTINVES       20.000   3/26/2011       RUB      6.99
MY BANK                10.000    8/7/2012       RUB     75.00
NATIONAL CAPITAL       13.000   9/25/2012       RUB    100.00
NAUKA-SVYAZ            15.000   6/27/2013       RUB    109.00
NEW INVESTMENTS        12.000    7/7/2011       RUB     75.00
NOK                    12.500   8/26/2014       RUB      3.00
NOK                    10.000   9/22/2011       RUB      1.00
NOMOS-LEASING          12.000    7/8/2011       RUB    100.00
NOVOROSSIYSK           13.000   12/9/2011       RUB      3.00
NUTRINVESTHOLDIN       11.000   6/30/2014       RUB     11.00
OBYEDINEONNYE KO        3.000   5/16/2012       RUB     99.80
OSMO KAPITAL           10.200    3/7/2011       RUB     21.20
PENSION FUND REA        5.000    5/7/2019       RUB     23.00
PROM TECH              16.000   4/25/2011       RUB    100.00
RAZGULYAY-FINANS       17.000   9/27/2011       RUB     70.00
RFA-INVEST             10.000   11/4/2011       RUB     75.00
RMK PARK PLAZA         10.000    1/8/2013       RUB     75.00
RYBINSKKABEL            0.010   2/28/2012       RUB      0.50
SAHO                   15.000   5/21/2012       RUB     50.00
SATURN                 10.000    6/6/2014       RUB      5.00
SENATOR                14.000   5/18/2012       RUB     75.00
SETL GROUP             11.700   5/15/2012       RUB     75.00
SEVENTH CONTINE         9.250   6/14/2012       RUB      2.28
SEVKABEL-FINANS        10.500   3/27/2012       RUB      3.40
SIBUR                  10.470   11/1/2012       RUB     75.00
SIBUR                   7.300   3/13/2015       RUB     75.00
SIBUR                   9.000   3/13/2015       RUB     75.00
SIBUR                   9.250   3/13/2015       RUB     75.00
SIBUR                  13.500   3/13/2015       RUB     75.00
SISTEMA-HALS            8.500   4/15/2014       RUB     90.00
SISTEMA-HALS            8.500    4/8/2014       RUB     90.00
SVOBODNY SOKOL         18.000   5/24/2011       RUB     30.00
SVYAZ BANK             16.000   4/21/2011       RUB     75.00
SYNTERRA                0.010    8/1/2013       RUB     75.00
TALIO-PRINCEPS         16.000   5/17/2012       RUB      3.76
TECHNONICOL-FINA       13.500   9/11/2013       RUB     24.02
TERNA-FINANS            1.000   11/4/2011       RUB      1.00
TGK-2                   9.000   9/17/2013       RUB     75.00
TGK-4                   8.000   5/31/2012       RUB     75.50
TOP-KNIGA              20.000   12/9/2010       RUB     75.00
TRANSCREDITFACTO       12.000   6/11/2012       RUB    103.85
TRANSFIN-M             10.750   8/10/2012       RUB     75.00
TRANSFIN-M             14.000   7/10/2014       RUB    100.00
TRANSNEFT               9.750   5/13/2019       RUB    101.75
URALCHIMPLAST           8.000   1/21/2011       RUB     97.00
VESTER-FINANS          15.250   8/11/2011       RUB      2.01
VKM-LEASING FINA        1.000   5/18/2011       RUB      1.10
VLADPROMBANK           12.000    3/8/2011       RUB     23.00
ZAO EUROPLAN           10.000   8/11/2011       RUB     75.00
ZHELEZOBETON           10.000   5/27/2011       RUB     95.00
ZHILSOTSIPOTEKA-        9.000   7/26/2011       RUB    100.00

SPAIN
-----
AYT CEDULAS CAJA        3.750   6/30/2025       EUR     74.10
BANCAJA                 1.500   5/22/2018       EUR     63.94
BANCAJA EMI SA          2.755   5/11/2037       JPY     43.31
BANCO GUIPUZCOAN        1.500   4/18/2022       EUR     64.68
CAIXA TERRASSA          1.500   3/12/2022       EUR     56.29
CAJA CASTIL-MAN         1.500   6/23/2021       EUR     56.58
CEDULAS TDA 6           3.875   5/23/2025       EUR     75.37
CEDULAS TDA A-6         4.250   4/10/2031       EUR     72.53
GENERAL DE ALQUI        2.750   8/20/2012       EUR     74.15

SWEDEN
------
SWEDISH EXP CRED        0.500   9/29/2015       BRL     64.15
SWEDISH EXP CRED        9.000   8/28/2011       USD      9.56
SWEDISH EXP CRED        9.000   8/12/2011       USD      9.59

SWITZERLAND
-----------
UBS AG                 14.000   5/23/2012       USD      8.83
UBS AG                 10.580   6/29/2011       USD     38.77
UBS AG                 13.300   5/23/2012       USD      4.05
UBS AG JERSEY          10.820   4/21/2011       USD     21.34
UBS AG JERSEY          11.000   2/28/2011       USD     68.49
UBS AG JERSEY          11.030   4/21/2011       USD     20.51
UBS AG JERSEY           3.220   7/31/2012       EUR     56.06
UBS AG JERSEY          10.280   8/19/2011       USD     35.91
UBS AG JERSEY          10.990   3/31/2011       USD     31.46
UBS AG JERSEY          13.900   1/31/2011       USD     34.74
UBS AG JERSEY          14.640   1/31/2011       USD     37.08
UBS AG JERSEY          11.150   8/31/2011       USD     38.18
UBS AG JERSEY          16.170   1/31/2011       USD     13.05
UBS AG JERSEY          10.000   2/11/2011       USD     59.90
UBS AG JERSEY          15.250   2/11/2011       USD     11.63
UBS AG JERSEY           9.350   9/21/2011       USD     64.71
UBS AG JERSEY           9.450   9/21/2011       USD     50.04
UBS AG JERSEY          12.800   2/28/2011       USD     34.09
UBS AG JERSEY          10.360   8/19/2011       USD     52.66

UNITED KINGDOM
--------------
BANK OF SCOTLAND        6.984    2/7/2035       EUR     71.76
BARCLAYS BK PLC         9.400   7/31/2012       USD     11.07
BARCLAYS BK PLC        12.950   4/20/2012       USD     22.60
BARCLAYS BK PLC        13.800   5/27/2011       USD     52.08
BARCLAYS BK PLC         7.610   6/30/2011       USD     52.50
BARCLAYS BK PLC        10.800   7/31/2012       USD     27.45
BARCLAYS BK PLC        10.650   1/31/2012       USD     41.50
BARCLAYS BK PLC         8.550   1/23/2012       USD     11.50
BARCLAYS BK PLC        10.350   1/23/2012       USD     20.10
BRADFORD&BIN BLD        4.910    2/1/2047       EUR     61.86
BRADFORD&BIN BLD        5.500   1/15/2018       GBP     41.98
BRADFORD&BIN PLC        7.625   2/16/2049       GBP     46.45
BRADFORD&BIN PLC        6.625   6/16/2023       GBP     45.22
EFG HELLAS PLC          5.400   11/2/2047       EUR     66.00
EFG HELLAS PLC          6.010    1/9/2036       EUR     33.38
ENTERPRISE INNS         6.375   9/26/2031       GBP     72.88
HBOS PLC                6.000   11/1/2033       USD     70.06
HBOS PLC                6.000   11/1/2033       USD     70.06
NORTHERN ROCK           5.750   2/28/2017       GBP     75.45
PUNCH TAVERNS           6.468   4/15/2033       GBP     71.87
ROYAL BK SCOTLND        6.316   6/29/2030       EUR     69.30
ROYAL BK SCOTLND       10.000   2/15/2045       USD     74.13
TXU EASTERN FNDG        6.750   5/15/2009       USD      2.48
TXU EASTERN FNDG        6.450   5/15/2005       USD      2.38
UNIQUE PUB FIN          6.464   3/30/2032       GBP     65.23
WESSEX WATER FIN        1.369   7/31/2057       GBP     33.55


                            *********

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

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

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

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

                            *********


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

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  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 * * *