TCREUR_Public/101110.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

         Wednesday, November 10, 2010, Vol. 11, No. 222

                            Headlines



G E R M A N Y

DECO 15: Fitch Affirms Rating on Class E Notes at 'CC'
PROMISE-I MOBILITY: Moody's Reviews Ratings on Various Notes


I C E L A N D

* ICELAND: Investor Group Threatens Legal Action Over Failed Banks


I R E L A N D

IRISH LIFE: Moody's Corrects Rating on EUR50 Mil. Floating Notes
KESTREL FUNDING: S&P Affirms 'CC' Rating on Capital Notes
MCINERNEY HOMES: Under Court Protection for Another Month
TBS INT'L: Unveils Q3 Results; Forbearance Expires Nov. 14
* IRELAND: One Restaurant Shuts Down Each Day

* IRELAND: Four Belfast Law Firms Join Nama Advisory Panel
* IRELAND: NAMA Stops Banks From Filing Insolvency v. Developers


N E T H E R L A N D S

SENSATA TECHNOLOGIES: To Buy Honeywell's Sensors Biz for US$140MM


S P A I N

CAJASUR: Restructuring Aid Wins European Union Approval


S W E D E N

BORAS WAFVERI: Goes Into Liquidation; 500 Jobs at Risk


U N I T E D   K I N G D O M

BAA SH: Moody's Assigns 'Ba3' Rating to Senior Secured Notes
CREST NICHOLSON: May Face Second Round of Loan Writedowns
EMI GROUP: May Attract Bids From BMG Rights & Warner Music
NIGHTINGALE FINANCE: S&P Affirms 'CC' Rating on Capital Notes
R.B. FARQUHAR: Companies Vying to Take Over Firm

ROK PLC: Mears Eyes Social Housing Business
ROK PLC: Dundee Workers Assured They Will Get Paid
ROK PLC: Administration Affecting Work on Trowbridge Civic Hall
ROYAL BANK: Posts GBP1.4 Billion Pre-Tax Loss in Qtr. Ended Sept.
SPICERS: Inability to Finance Debts Spurs Voluntary Liquidation

* UK: Banks Expect Rise in Small Business Insolvencies Next Year


X X X X X X X X

* EUROPE: Bank Bail-Ins Dangerous & Unworkable, Rabobank Says
* Moody's: Global Default Rate Falls to 3.7% in October
* S&P's 2010 Global Corporate Defaults Tally Now at 73




                            *********


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


DECO 15: Fitch Affirms Rating on Class E Notes at 'CC'
------------------------------------------------------
Fitch Ratings has affirmed DECO 15 - Pan Europe 6 Ltd, a
commercial mortgage-backed securitization.  The rating actions
are;

  -- EUR622.0m class A1 due July 2014 (XS0307398841) affirmed at
     'AAA'; Outlook Stable

  -- EUR294.0m class A2 due July 2014 (XS0307400258) affirmed at
     'AA'; Outlook revised to Stable from Negative

  -- EUR147.0m class A3 due July 2014 (XS0307400506) affirmed at
     'A'; Outlook revised to Stable from Negative

  -- EUR86.1m class B due July 2014 (XS0307401140) affirmed at
     'BBB-'; Outlook revised to Stable from Negative

  -- EUR87.6m class C due July 2014 (XS0307405133) affirmed at
     'B'; Outlook Negative

  -- EUR56.8m class D due July 2014 (XS0307405729) affirmed at
     'CCC'; assigned Recovery Rating 'RR5'

  -- EUR21.5m class E due July 2014 (XS0307406453) affirmed at
     'CC'; assigned Recovery Rating 'RR6'

The affirmation and Stable Outlooks on the class A1 to B notes
reflect the relatively stable collateral performance since the
last review in October 2009, despite three of the loans being in
breach of their debt service coverage ratio triggers.  The
portfolio benefits from above-average interest coverage: the
weighted-average A-note interest coverage ratio has improved to
1.6x from 1.4x at closing.

The Negative Outlook on the class C notes is driven by continued
balloon risk.  Approximately 80% of the portfolio is due to mature
in 2014, leaving the transaction exposed to refinancing conditions
at that point.  In addition, five of the ten loans have a Fitch A-
note loan-to-value in excess of 100%.  The presence of B-notes in
four of the loans further increases leverage.

The CentrO loan accounts for 56% of the portfolio and is secured
by a super-regional shopping centre located in Oberhausen, in
western Germany.  Loan performance has been stable since closing,
mainly as a result of the length of the leases that are in place.
30% of rental income is scheduled to expire by end-2012; however,
a EUR5.2 million reserve was put in place at closing to mitigate
potential interest shortfalls.  Given the high quality of the
centre, Fitch expects that a significant proportion of the space
will either be renewed or relet.  As 75% of all surplus cash is
used to amortize the A-note, Fitch expects the exit position to
improve significantly from the current 100% Fitch LTV by loan
maturity in October 2014.


PROMISE-I MOBILITY: Moody's Reviews Ratings on Various Notes
------------------------------------------------------------
Moody's Investors Service has placed under review for possible
downgrade the ratings of 23 classes of notes issued by 4 Promise-I
Mobility transactions and the rating of 1 credit default swap
between KfW and Promise-I Mobility 2006-1.

The 4 transactions are synthetic balance sheet collateralized loan
obligations of senior corporate loans to borrowers mainly
incorporated in Germany.  All loans were originated by IKB
Deutsche Industriebank AG.

The affected notes and credit default swap are listed below:

Issuer: Promise-I-Mobility 2005-1 plc

  -- EUR27.8M A Notes, A1 (sf) Placed Under Review for Possible
     Downgrade; previously on May 12, 2009 Downgraded to A1 (sf)

  -- EUR8.3M B Notes, Baa2 (sf) Placed Under Review for Possible
     Downgrade; previously on May 12, 2009 Downgraded to Baa2 (sf)

  -- EUR7.5M C Notes, Ba1 (sf) Placed Under Review for Possible
     Downgrade; previously on May 12, 2009 Downgraded to Ba1 (sf)

  -- EUR5.3M D Notes, B1 (sf) Placed Under Review for Possible
     Downgrade; previously on May 12, 2009 Downgraded to B1 (sf)

  -- EUR5.3M E Notes, Caa1 (sf) Placed Under Review for Possible
     Downgrade; previously on May 12, 2009 Downgraded to Caa1 (sf)

The Aaa rating of class A+ issued under Promise-I Mobility 2005-1
was not put on watch for possible downgrade given the short
weighted average life of that tranche (0.6 year) and the
strengthening of its credit enhancement following the substantial
amortization of the portfolio.

Issuer: PROMISE-I Mobility 2005-2 PLC

  -- EUR0.5M Class A+ Floating Rate Credit Linked Notes Notes
     (currently EUR 0.2M outstanding), Aaa (sf) Placed Under
     Review for Possible Downgrade; previously on Dec 19, 2005
     Definitive Rating Assigned Aaa (sf)

  -- EUR54.9M Class A Floating Rate Credit Linked Notes Notes, A3
     (sf) Placed Under Review for Possible Downgrade; previously
     on May 12, 2009 Downgraded to A3 (sf)

  -- EUR21.6M Class B Floating Rate Credit Linked Notes Notes,
     Baa3 (sf) Placed Under Review for Possible Downgrade;
     previously on May 12, 2009 Downgraded to Baa3 (sf)

  -- EUR22.5M Class C Floating Rate Credit Linked Notes Notes, Ba2
     (sf) Placed Under Review for Possible Downgrade; previously
     on May 12, 2009 Downgraded to Ba2 (sf)

  -- EUR21.6M Class D Floating Rate Credit Linked Notes Notes, B2
     (sf) Placed Under Review for Possible Downgrade; previously
     on May 12, 2009 Downgraded to B2 (sf)

  -- EUR14.4M Class E Floating Rate Credit Linked Notes-2 Notes,
     Caa2 (sf) Placed Under Review for Possible Downgrade;
     previously on May 12, 2009 Downgraded to Caa2 (sf)

Issuer: IKB Promise-I Mobility 2006-1 GmbH

  -- EUR2159.5M Credit Derivative Transaction, Aaa (sf) Placed
     Under Review for Possible Downgrade; previously on Dec 18,
     2006 Definitive Rating Assigned Aaa (sf)

  -- EUR0.5M Class A+ Notes, Aaa (sf) Placed Under Review for
     Possible Downgrade; previously on Dec 18, 2006 Definitive
     Rating Assigned Aaa (sf)

  -- EUR67.2M Class A Notes, A3 (sf) Placed Under Review for
     Possible Downgrade; previously on May 12, 2009 Downgraded to
     A3 (sf)

  -- EUR21.6M Class B Notes, Baa3 (sf) Placed Under Review for
     Possible Downgrade; previously on May 12, 2009 Downgraded to
     Baa3 (sf)

  -- EUR36M Class C Notes, Ba2 (sf) Placed Under Review for
     Possible Downgrade; previously on May 12, 2009 Downgraded to
     Ba2 (sf)

  -- EUR46.8M Class D Notes, Caa1 (sf) Placed Under Review for
     Possible Downgrade; previously on May 12, 2009 Downgraded to
     Caa1 (sf)

  -- EUR10.8M Class E Notes, Caa3 (sf) Placed Under Review for
     Possible Downgrade; previously on May 12, 2009 Downgraded to
     Caa3 (sf)

Issuer: Promise-I Mobility 2008-1 GmbH

  -- EUR0.5M A1+ Notes (currently EUR 0.3M outstanding), Aaa (sf)
     Placed Under Review for Possible Downgrade; previously on Mar
     26, 2008 Assigned Aaa (sf)

  -- EUR0.5M A2+ Notes, Aa3 (sf) Placed Under Review for Possible
     Downgrade; previously on May 12, 2009 Downgraded to Aa3 (sf)

  -- EUR16.9M B Notes, Baa1 (sf) Placed Under Review for Possible
     Downgrade; previously on May 12, 2009 Downgraded to Baa1 (sf)

  -- EUR11.7M C Notes, Baa3 (sf) Placed Under Review for Possible
     Downgrade; previously on May 12, 2009 Downgraded to Baa3 (sf)

  -- EUR15.1M D Notes, Ba2 (sf) Placed Under Review for Possible
     Downgrade; previously on May 12, 2009 Downgraded to Ba2 (sf)

  -- EUR13.5M E Notes, B2 (sf) Placed Under Review for Possible
     Downgrade; previously on May 12, 2009 Downgraded to B2 (sf)

This review is mainly driven by: 1) the deterioration of the asset
pools reflected in the occurrence of additional credit events,
delinquencies and negative credit migration since the last rating
actions in May 2009 as evident from the latest investor reports
and 2) the revision of IKB's internal rating scale and process
used to assess the creditworthiness of SME borrowers.

In order to assess the default probabilities of each of the
borrowers in the pools, Moody's relies on the internal credit
scores assigned to each borrower by IKB as originator of the
transactions.  Following the recent revision by IKB of its
internal credit score scale which provides a more detailed
assessment of credit risk levels, Moody's is currently revisiting
the way IKB's internal credit scores are translated into Moody's
idealized default probabilities (a mapping).  Moody's anticipates
that the greater conservativeness embedded in IKB's revised credit
scores will map to higher Moody's default probabilities and
therefore could have a negative impact on the ratings of the
notes.

Moody's expects to resolve its review in the coming weeks
following the completion by Moody's of the credit mapping based on
IKB's recently revised internal rating scale.


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I C E L A N D
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* ICELAND: Investor Group Threatens Legal Action Over Failed Banks
------------------------------------------------------------------
Simon Goodley at guardian.co.uk reports that the Icelandic
government has been threatened with legal action by a group of
investors in the country's crippled banking system, in a move that
could delay efforts to recoup billions of pounds of UK taxpayer
funds held on the island.

The report relates bondholders in the three main collapsed banks
-- Landsbanki, Kaupthing and Glitnir -- were relegated behind
depositors in the queue of creditors as part of emergency
legislation in 2008, which in effect nationalized the Icelandic
banking system.

According to the report, the group argues that the government's
move was unlawful and any litigation could frustrate the
Treasury's efforts to persuade Iceland to reimburse the
compensation it paid to British savers after the collapse of
Landsbanki's Icesave internet brand.  The threat could also hamper
efforts by UK local authorities to recoup millions in council tax
revenues deposited with Landsbanki and Glitnir, the report notes.

"We may be forced to sue Iceland to reverse 'depositor priority'.
The assumptions that inform any Icesave deal then may all go out
the window, and any deal to pay the UK would no longer work.  We
think our cause of action is strong, though it would likely drag
through the courts for a lot of years, which itself would be
damaging for Iceland," the report quoted Tim DeSieno, a partner at
Bingham McCutchen, the US law firm representing the bondholders,
as saying.

The report says while Mr. DeSieno may be preparing a negotiating
position, he represents a group of about 100 heavyweight ins
titutions made up of international investors, pension funds and
banks.  The 84% taxpayer-owned Royal Bank of Scotland is thought
to be among the group, the report states.


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


IRISH LIFE: Moody's Corrects Rating on EUR50 Mil. Floating Notes
----------------------------------------------------------------
Moody's Investors Service has corrected the rating of the EUR50
million Subordinate Floating Rate Notes due November 7, 2016,
issued by Irish Life & Permanent plc from A3 to Ba3.

This particular security is an issuance under the issuer's
EUR15bln Euro Medium Term Note Programme and was rated by Moody's
on 8 November 2006.  Moody's originally misclassified this
instrument as senior unsecured.  Based on a review of the terms,
the instrument has been reclassified as a subordinate note and the
rating has been corrected to Ba3.  The corrected rating history
for the re-classified note is:

* 11/08/2006 -- A2 rating assigned
* 4/20/2007 -- A2 rating upgraded to A1
* 2/17/2009 -- A1 rating downgraded to A2
* 6/4/2009 -- A2 rating placed on watch for possible downgrade
* 7/7/2009 -- A2 rating downgraded to A3
* 7/21/2010 -- A3 rating downgraded to Baa1
* 10/6/2010 -- Baa1 rating downgraded to Ba3.

The last rating action was on October 6, 2010, when the backed-Aa2
government guaranteed debt rating and the A3 long-term bank
deposit and senior debt ratings were placed on review for possible
downgrade, the dated subordinated debt rating was downgraded to
Ba3 from Baa1 and the undated subordinated debt rating was
downgraded to B1 from Ba3.


KESTREL FUNDING: S&P Affirms 'CC' Rating on Capital Notes
---------------------------------------------------------
Standard & Poor's Ratings Services affirmed its issuer credit
ratings and senior liability ratings on the structured investment
vehicles listed below, following a review.  At the same time, S&P
affirmed the ratings on the capital notes listed below.

The rating affirmations follow S&P's assessment of the support
arrangements of each SIV.  In each case, the SIV's ICR and senior
liabilities ratings are linked to the rating on the relevant
support provider, which has not changed.

At the same time, S&P has affirmed the 'CC' rating on the capital
notes to reflect S&P's opinion of the likelihood of their
repayment.  The relevant support arrangements do not include the
repayment of capital notes, and S&P is of the view that the
capital notes are highly vulnerable to nonpayment.

S&P has also published more information on the support
arrangements of the vehicles affected by these rating actions.

                        Ratings Affirmed

                         Centauri Corp.

                ICR              A+/Negative/A-1
                CP               A-1
                MTN              A+

                          CC (USA) Inc.

                ICR              A+/Negative/A-1
                CP               A-1
                MTN              A+

                        Five Finance Corp.

                ICR              A+/Negative/A-1
                CP               A-1
                MTN              A+

                        Five Finance Inc.

                       CP               A-1
                       MTN              A+

                       Links Finance Corp.

                ICR              A+/Stable/A-1
                CP               A-1
                MTN              A+

                        Links Finance LLC

                ICR              A+/Stable/A-1
                CP               A-1
                MTN              A+

                      Parkland Finance Corp.

                ICR              A+/Stable/A-1
                CP               A-1
                MTN              A+

                       Parkland (USA) LLC

                       CP               A-1
                       MTN              A+

                   Harrier Finance Funding Ltd.

                ICR              BBB+/Negative/A-2
                CP               A-2
                MTN              BBB+

                Harrier Finance Funding (U.S.) LLC

                      CP               A-2
                      MTN              BBB+

                       Kestrel Funding PLC

                ICR              BBB+/Negative/A-2
                CP               A-2
                MTN              BBB+
                Capital notes    CC

                     Nightingale Finance Ltd.

                ICR              A-/Negative/A-1
                CP               A-1
                MTN              A-
                Capital notes    CC

                     Nightingale Finance LLC

                      CP               A-1
                      MTN              A-

                  ICR -- Issuer credit rating.
                    CP -- Commercial paper.
                   MTN -- Medium-term notes.


MCINERNEY HOMES: Under Court Protection for Another Month
---------------------------------------------------------
The Irish Times reports that McInerney Homes will remain under the
High Court's protection from its creditors, including a three-bank
syndicate to which it owes EUR115 million, for another four weeks.
The report relates that the court continued court protection for
McInerney Homes and a number of related group companies until
December 3, 2010.

According to The Irish Times, Justice Frank Clarke said he was
extending the period of examinership with "considerable
reluctance".  The report relates Justice Clarke had not concluded
there was no realistic chance of the examiner coming up with a
survival scheme which could succeed.  It might be possible that
the examiner, Bill O'Riordan of PricewaterhouseCoopers, could come
up with a better scheme if examinership was extended, he added.

The Irish Times notes that a report from Lisney's indicates that
the group's properties and work in progress are worth between
EUR25 million and EUR30 million.  The Irish Times relates that
this is against EUR40 million when the group first had an examiner
appointed and was placed under court protection in August.  The
report notes that Lisney's calculation is based on what it
believes the properties would be worth in a situation where they
were being sold in a liquidation or receivership, and not as a
going concern.

The group, The Irish Times says, owes EUR115 million to a
syndicate of three banks -- KBC, Bank of Ireland and Anglo Irish
-- which is opposed to the examinership.

The Irish Times discloses that U.S. private equity house Oaktree
Capital is poised to take a stake in the group, which has
businesses in the Republic and England, for EUR40 million.  It is
committed to investing at least EUR10 million in the Irish
operation, the report relates.

Justice Clarke, The Irish Times posts, said that the key question
on whether court protection should be continued was whether any
proposed survival scheme would be unfair to the syndicate of
banks.  The report relates that the court was told a survival plan
would be ready by Friday and there would be a meeting of
McInerney's creditors on November 19, 2010.

Once the examiner's plan has the backing of at least one group of
creditors whose rights are being affected, it can then go to the
High Court for approval, The Irish Times says.

McInerney Homes is an Irish housebuilder.


TBS INT'L: Unveils Q3 Results; Forbearance Expires Nov. 14
----------------------------------------------------------
TBS International plc reports that for the third quarter ended
September 30, 2010, total revenues were US$99.8 million, an
increase of 34.3% compared to total revenues of US$74.3 million
for the same period in 2009.  Net loss for the third quarter 2010
was US$10.4 million, after loss attributable to the non-
controlling interests, which is an improvement of 42.5% compared
to an US$18.1 million loss for the same period in 2009.

For the nine months ended September 30, 2010, total revenues were
US$311.1 million, an increase of 42.9% compared to the US$217.7
million for the same period 2009.  Net loss for the nine months
2010 was US$27.9 million, after loss attributable to the non-
controlling interests, which is an improvement of 50.4% compared
to a loss of US$56.3 million for the same period in 2009.  Net
loss for the nine months ended September 30, 2010 reflects a
US$5.2 million loss on the sale of the M/V Savannah Belle and a
US$5.9 million expense for non-cash equity compensation.

At September 30, 2010, TBS had total assets of US$906.794 million,
total debt, including current portion of US$328.259 million, and
shareholders' equity of US$513.154 million.  TBS had working
capital deficit of US$297.663 million at September 30.

A copy of TBS's earnings release dated November 8 is available
at http://is.gd/gQRTf

On October 1, 2010, TBS said it has entered into forbearance
agreements with its lenders expiring on November 14, 2010.  As a
result, during this 45-day period, TBS will not be making the
principal payments due on such facilities.  The lenders have
agreed to forbear from exercising their rights and remedies that
arise from the failure to make these principal payments when due.
TBS is in discussions with its banks to restructure the repayment
terms of certain facilities and modify its loan covenants.

During the forbearance period, TBS has continued to operate its
business as usual, including paying vendors and paying interest on
debt.

                     About TBS International

Based in Dublin, Ireland, TBS International plc --
http://www.tbsship.com/-- is a fully-integrated transportation
service company that provides worldwide shipping solutions to a
diverse client base of industrial shippers.  Through the TBS Five
Star Service consisting of ocean transportation, operations,
logistics, port services, and strategic planning, TBS offers total
project coordination and door-to-door supply chain management.
The TBS shipping network operates liner, parcel and dry bulk
services, supported by a fleet of multipurpose tweendeckers and
handysize and handymax bulk carriers, including specialized heavy-
lift vessels and newbuild tonnage.  TBS has developed its business
around key trade routes between Latin America and China, Japan and
South Korea, as well as select ports in North America, Africa, the
Caribbean and the Middle East.


* IRELAND: One Restaurant Shuts Down Each Day
---------------------------------------------
The Sunday Business Post Online reports that on average one Irish
restaurant is closing its doors each day.

According to the report, the Restaurants Association of Ireland
fear more could close if something is not done.  The report notes
it also said the closures could cost Ireland's economy dearly,
resulting in a EUR700 million loss.


* IRELAND: Four Belfast Law Firms Join Nama Advisory Panel
----------------------------------------------------------
Four Belfast law firms have been appointed to the panel of lawyers
providing advice to the Irish government's National Asset
Management Agency (Nama), BBC News reports.  The law firms are:

   -- Carson McDowell,
   -- Tughans,
   -- CH Jefferson, and
   -- John McKee and Son.

According to the report, they will advise Nama on enforcement
proceedings, such as receivership and refinancing.

Nama, the report notes, was set up to rescue the ailing Irish
banks by buying, at a discount, all their major property loans.

In Northern Ireland the agency will be buying loans with an
original value of more than GBP3 billion, relating to more than
100 firms or individuals, BBC reports.

BBC discloses that Nama has a relatively small staff so will be
spending hundreds of millions of euros on advisers and
consultants.  The report notes in addition to the law firms
several other Belfast-based companies are already providing
services to the agency.

Keenan Corporate Finance, BBC notes, is one of the firms helping
to assess the business plans put forward by developers.

Valuations, in what Nama calls the Ulster area, are being carried
out by property agents BTW Shiells, Osborne King, Frazer Kidd and
Colliers CRE, the report adds.


* IRELAND: NAMA Stops Banks From Filing Insolvency v. Developers
----------------------------------------------------------------
InsolvencyJournal.ie, citing the Sunday Business Post's James
Enright, reports the National Asset Management Agency has stopped
the banks from filing for insolvency against property developers
in 15 cases.

InsolvencyJournal.ie relates NAMA's chairman, Frank Daly, as cited
by The Business Post, said that the agency prefers to work with
developers because they have "expertise and experience" which "can
add value to the business," and this is what NAMA is "expected to
do for the taxpayer."

InsolvencyJournal.ie notes the chairman added that the threat of
insolvency is often enough to get people to "engage realistically"
with NAMA.

According to InsolvencyJournal.ie, Business Post said the transfer
of all loans from financial institutions to NAMA will be completed
in the next six or seven weeks.


=====================
N E T H E R L A N D S
=====================


SENSATA TECHNOLOGIES: To Buy Honeywell's Sensors Biz for US$140MM
-----------------------------------------------------------------
Sensata Technologies Holding N.V. has reached a definitive
agreement to acquire the "Automotive on Board" sensors business of
Honeywell International for $140 million in cash.

"This acquisition further expands our leadership in the global
automotive sensors market and complements our already strong
organic growth in the powertrain segment for our existing pressure
products," said Tom Wroe, Sensata Technologies Chairman and Chief
Executive Officer.  "It also adds new capabilities in light
vehicle speed and position sensing and builds Sensata's market
share in Asia -- specifically in China, the world's fastest
growing automotive sensors market."

Sensata expects to fund the purchase from available cash resources
and anticipates that this transaction will be neutral to 2010
earnings, excluding transaction costs in the range of $3-4 million
that will be incurred in Q4 2010.  The transaction, which is
subject to regulatory review, is expected to close in early 2011.
It is expected that the acquisition will contribute to both
revenue and Adjusted Net Income growth in 2011 and beyond.  The
Automotive on Board sensors business has annual sales of
approximately $130 million.

"We believe this purchase represents a strategic use of our
cash on-hand and meets all our strategic and investment return
criteria," said Sensata Technologies Chief Financial Officer Jeff
Cote.  "We expect to realize synergies on the integration
activities over 18 to 24 months."

                           About Sensata

Almelo, Netherlands-based Sensata Technologies B.V. --
http://www.sensata.com/-- supplies sensing, electrical
protection, control and power management solutions.  Majority-
owned by affiliates of Bain Capital Partners, LLC, a leading
global private investment firm, and its co-investors, Sensata
employs approximately 9,500 people in nine countries.  Sensata's
products improve safety, efficiency and comfort for millions of
people every day in automotive, appliance, aircraft, industrial,
military, heavy vehicle, heating, air-conditioning, data,
telecommunications, recreational vehicle and marine applications.

As reported by the TCR on December 7, 2009, Moody's Investors
Service has upgraded Sensata Technologies B.V.'s Corporate Family
and Probability of Default ratings to Caa1 from Caa2, as well as
the company's senior secured credit facility to B2, senior
unsecured notes to Caa2, and senior subordinated notes to Caa3.
In a related rating action, Moody's affirmed the Company's
Speculative Grade Liquidity rating at SGL-3.  The outlook is
positive.

The TCR on Nov. 4, 2009, said that Standard & Poor's affirmed the
ratings on Attleboro, Massachusetts-based Sensata Technologies,
Inc., including the 'CCC+' corporate credit rating.  At the same
time, S&P revised the outlook on the company to stable from
negative.

Standard & Poor's Ratings Services raised its ratings on sensors
and controls manufacturer Sensata Technologies B.V., including the
corporate credit rating, to 'B+' from 'B'.  The outlook is
positive.

Moody's Investors Service has upgraded Sensata Technologies B.V.'s
Corporate Family and Probability of Default ratings to B2 from B3.
In a related action, the company's senior secured credit facility
was affirmed B1, senior unsecured notes affirmed Caa1, and senior
subordinated notes upgraded to Caa1 from Caa2.  Moody's also
upgraded the company's Speculative Grade Liquidity rating to SGL-2
from SGL-3.  The rating outlook is positive.

Moody's Investors Service said that Sensata Technologies B.V. B2
Corporate Family Rating and positive outlook remain unchanged
following the announcement of its public holding company, Sensata
Technologies Holding N.V., that it has reached a definitive
agreement to acquire the "Automotive on Board" sensors business of
Honeywell International for US$140 million in cash.


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


CAJASUR: Restructuring Aid Wins European Union Approval
-------------------------------------------------------
Aoife White at Bloomberg News reports that CajaSur's restructuring
aid and sale to Bilbao Bizkaia Kutxa won European Union approval.

Bloomberg relates the European Commission said Monday in an
e-mailed statement that it was satisfied that the Spanish
government's capital injection of EUR800 million (US$1.1 billion),
loan guarantees and a liquidity line was compensated by an asset
sale and restructuring that "ensures the viability of the banking
activity and limits the distortions of competition."

As reported by the Troubled Company Reporter-Europe on May 25,
2010, The Financial Times said that the Bank of Spain seized
control of CajaSur after the savings bank failed to reach
agreement on a merger with Unicaja, another savings bank, despite
an ultimatum from the central bank.  The FT disclosed the Bank of
Spain said CajaSur was seized because it had "viability problems"
and because of the failure to agree the deal with Unicaja.

CajaSur is a savings bank previously run by Roman Catholic priests
in Cordoba.


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


BORAS WAFVERI: Goes Into Liquidation; 500 Jobs at Risk
------------------------------------------------------
Boras Wafveri, the Swedish textile company running the 153-year-
old Kreenholm textile factory, is going into liquidation,
Fibre2fashion News reports.

According to Fibre2fashion, the company recently announced that it
is filing for bankruptcy for its Narva subsidiary, Kreenholmi
Valduse AS, which could render around 500 employees jobless.

Fibre2fashion News relates that the factory is still running at
loss, despite adopting cost-cutting measures.  Fibre2fashion News
says that increasing cotton prices and decreasing orders are the
key issues which are creating trouble for the company.  The
company had a loss of EUR3.3 million in the year 2007 and
EUR50,000 in 2008.

Kreenholm textile factory was established in the year 1857 and
became nationalized during the Soviet period.  In the year 1980,
it had employed over 11,000 workers and had been among the largest
enterprises in northeast Estonia.


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


BAA SH: Moody's Assigns 'Ba3' Rating to Senior Secured Notes
------------------------------------------------------------
Moody's Investors Service has assigned a definitive Ba3 rating to
the GBP325 million 7.125% Senior Secured Notes due 2017 to be
issued by BAA (SH) plc.  In addition Moody's has assigned a
definitive Ba1 Corporate Family Rating, and a definitive Ba2
Probability of Default Rating to BAA SH.  The 35% Family-wide Loss
Given Default assumption applying to BAA SH, and the LGD-5 (85%)
Loss given default assessment assigned to the BAA SH Notes are
affirmed.  The rating outlook is stable.

The above definitive ratings confirm the prospective ratings
assigned on 27 October 2010.

                        Ratings Rationale

The Ba1 Corporate Family Rating of BAA SH reflects a Probability
of Default Rating of Ba2 and a 35% Family-wide Loss Given Default
assumption.  The Corporate Family Rating is an opinion of the BAA
SH group's ability to honor its financial obligations and is
assigned to BAA SH as if it had a single class of debt and a
single consolidated legal structure.  The Ba3 / LGD5(85%) rating
of the BAA SH Notes reflects the structural subordination of the
BAA SH Notes in the BAA SH group structure.

The only asset of BAA SH is its shares in BAA (SP) Limited, whch
in turn owns London Heathrow Airport, and London Stansted Airport.
The BAA SP group is financed via debt provided through a ring-
fenced secured debt financing structure.  BAA SP can only service
debt at BAA SH if it complies with the financial terms of the BAA
ring-fenced secured debt financing structure.  BAA SH debt in turn
benefits from a security interest in its ownership of BAA SP.

BAA SH's Ba1 Corporate Family Rating reflects (i) BAA SP's
ownership of LHR, which is one of the world's most important hub
airports and the largest European airport, (ii) the relatively
resilient traffic characteristics of LHR which together with the
STN traffic profile affords some portfolio benefits, (iii) the
long established framework of economic regulation that pertains to
LHR which will evidence some changes but which is not expected to
be fundamentally altered, (iv) the significant capital expenditure
program at LHR, (v) the debt levels carried by the BAA SH group
together with the features of the BAA ring-fenced secured debt
financing structure which puts certain constraints around
management activity, and (vi) the protective features of the BAA
SH Notes which effectively limits BAA SH's activities to its
investment in BAA SP.

The rating outlook is stable.  This reflects Moody's expectation
that BAA's London airports will see a modest recovery in business
volumes, and that the capital expenditure program will continue to
be managed effectively to accommodate the ramp up in work at LHR
over the coming few years, both of which should ensure a financial
profile in line with the current rating category.  The outlook
further assumes that BAA SP will continue to manage its debt
raising program in a way that minimizes refinancing risk and
allows it to comfortably meet new funding requirements.  Although
there is headroom under the BAA SH debt documentation to increase
indebtedness at the BAA SH level, this is not expected to
materialize over the time horizon of the rating.

The Corporate Family Rating and rating of the BAA SH Notes could
move up if the BAA SH group were to exhibit a financial profile
that evidenced materially lower leverage than currently expected.
This could be suggested by a Net Debt to RAB ratio likely to be
permanently below 80% and an Adjusted Interest Cover Ratio of
permanently more than 1.2 times.

The Corporate Family Rating and rating of the BAA SH Notes could
move down if the BAA SH group were to exhibit a financial profile
that evidenced materially higher leverage than currently expected.
This could be suggested by a Net Debt to RAB ratio consistently in
the high 80s and an Adjusted Interest Cover Ratio of less than 1.0
times.

A sale of Stansted Airport, if required, would not likely cause a
downwards move in the rating.


CREST NICHOLSON: May Face Second Round of Loan Writedowns
---------------------------------------------------------
Ed Hammond and Anousha Sakoui at The Financial Times report that
lenders to Crest Nicholson are facing the prospect of a second
round of writedowns on the value of their loans as concerns about
a double-dip recession dog the property market.

According to the FT, the proposed debt-for-equity swap, which has
been tabled by Varde, the US investment fund that holds a third of
the housebuilder's debt, would leave lenders holding about 15% --
or GBP175 million (US$282 million) -- of the original GBP1.1
billion in loans made to the company.

The FT says Varde's proposal would see roughly half of the GBP350
million of senior debt swapped for equity and the balance --
GBP150 million of subordinated debt -- wiped out.

The restructuring would represent a severe "haircut" for the
lenders and there is understood to be some discord among the
group, which includes HSBC and Allied Irish Banks, about how much
of the debt should be written off, the FT states.

It is understood that a potential alternative option is being
discussed between a leading committee of the lenders, Crest and
Varde -- which has acquired 35% of Crest's debt in the past few
months, including the entire 29% stake held by Lloyds Banking
Group, the FT notes.

That option would involve lenders being offered a cash pay-out
equivalent to about 60 pence in the pound on their entire debt
claim, the FT says, citing people with knowledge of the talks.
Under the cash exit, the senior debt claims of lenders would be
repaid almost in full, according to the FT.

Crest Nicholson -- http://www.crestnicholson.com/-- is a
residential development company with property interests primarily
in central and southern England.  The firm focuses on developing
sustainable master-planned communities and mixed-use developments,
along with urban regeneration and commercial property
developments.


EMI GROUP: May Attract Bids From BMG Rights & Warner Music
----------------------------------------------------------
Kristen Schweizer and Anne-Sylvaine Chassany at Bloomberg News
report that EMI Group Ltd. may attract bids from BMG Rights and
Warner Music Group Corp. after owner Guy Hands' defeat in a court
battle raised speculation he will come under pressure to sell
assets.

Bloomberg says Warner and BMG Rights are among companies that have
expressed an interest in buying EMI's publishing and recorded
assets.

Bloomberg relates EMI, a 110-year-old record company, held talks
with rival record labels and private equity firms earlier this
year about selling off assets as its loan repayments neared.  If
Hands's Terra Firma Capital Partners Ltd., which controls EMI,
can't pay its debts, creditor Citigroup Inc. could seize control,
Bloomberg notes.

"The next breach of covenant, which is probably imminent, will
lead to Citi taking over EMI," said Claire Enders, chief executive
officer of Enders Analysis Ltd., a London-based music and
entertainment industry research firm, according to Bloomberg.
"There was no pot of money gained in this lawsuit."

As reported by the Troubled Company Reporter-Europe on Nov. 8,
2010, The Financial Times said Citigroup  won its courtroom battle
with Terra Firma's Mr. Hands over the GBP4.2-billion buy-out of
EMI in 2007.  The FT disclosed a New York jury found unanimously
for the bank at the end of a three-week trial that had seen the
British private equity investor trade allegations with David
Wormsley, the senior Citi figure he once counted as his closest
friend and adviser.  Terra Firma, as cited by the FT, said it
reserved its right to appeal and would focus on securing a
financial restructuring of EMI with Citi.  The impact on EMI will
become clearer over the next five months, as the next test of its
ability to meet covenants in its GBP3 billion of loans from
Citigroup comes up at the end of March, according to the FT.  The
FT disclosed the music group has failed these regular tests for
the past couple of years, but Mr. Hands has been able to keep
control by putting more of his investors' money into the company
as "equity cures", allowing the extra cash to be counted as
profits.  The FT noted it seems unlikely investors will give Mr.
Hands more money in March, making it possible that the business
will default on its debt and be taken over by its only creditor,
Citigroup.  If that happens, the bank is expected to seek a rapid
sale of EMI, probably by splitting it into two parts: music
publishing, with its valuable back catalogue of songs, and
recorded music, the loss-making business of producing new music,
according to the FT.

EMI Group Ltd. -- http://www.emigroup.com/-- is the fourth
largest record company in terms of market share (behind Universal
Music Group, Sony Music Entertainment, and Warner Music Group).
It houses recorded music segment EMI Music and EMI Music
Publishing.  EMI Music distributes CDs, videos, and other formats
primarily through imprints and divisions such as Capitol Records
and Virgin, and sports a roster of artists such as The Beastie
Boys, Norah Jones, and Lenny Kravitz.  EMI Music Publishing, the
world's largest music publisher, handles the rights to more than a
million songs.  EMI Music operates through regional divisions (EMI
Music North America, International, and UK & Ireland).  Private
equity firm Terra Firma owns EMI.


NIGHTINGALE FINANCE: S&P Affirms 'CC' Rating on Capital Notes
-------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its issuer credit
ratings and senior liability ratings on the structured investment
vehicles listed below, following a review.  At the same time, S&P
affirmed the ratings on the capital notes listed below.

The rating affirmations follow S&P's assessment of the support
arrangements of each SIV.  In each case, the SIV's ICR and senior
liabilities ratings are linked to the rating on the relevant
support provider, which has not changed.

At the same time, S&P has affirmed the 'CC' rating on the capital
notes to reflect S&P's opinion of the likelihood of their
repayment.  The relevant support arrangements do not include the
repayment of capital notes, and S&P is of the view that the
capital notes are highly vulnerable to nonpayment.

S&P has also published more information on the support
arrangements of the vehicles affected by these rating actions.

                        Ratings Affirmed

                         Centauri Corp.

                ICR              A+/Negative/A-1
                CP               A-1
                MTN              A+

                          CC (USA) Inc.

                ICR              A+/Negative/A-1
                CP               A-1
                MTN              A+

                        Five Finance Corp.

                ICR              A+/Negative/A-1
                CP               A-1
                MTN              A+

                        Five Finance Inc.

                       CP               A-1
                       MTN              A+

                       Links Finance Corp.

                ICR              A+/Stable/A-1
                CP               A-1
                MTN              A+

                        Links Finance LLC

                ICR              A+/Stable/A-1
                CP               A-1
                MTN              A+

                      Parkland Finance Corp.

                ICR              A+/Stable/A-1
                CP               A-1
                MTN              A+

                       Parkland (USA) LLC

                       CP               A-1
                       MTN              A+

                   Harrier Finance Funding Ltd.

                ICR              BBB+/Negative/A-2
                CP               A-2
                MTN              BBB+

                Harrier Finance Funding (U.S.) LLC

                      CP               A-2
                      MTN              BBB+

                       Kestrel Funding PLC

                ICR              BBB+/Negative/A-2
                CP               A-2
                MTN              BBB+
                Capital notes    CC

                     Nightingale Finance Ltd.

                ICR              A-/Negative/A-1
                CP               A-1
                MTN              A-
                Capital notes    CC

                     Nightingale Finance LLC

                      CP               A-1
                      MTN              A-

                  ICR -- Issuer credit rating.
                    CP -- Commercial paper.
                   MTN -- Medium-term notes.


R.B. FARQUHAR: Companies Vying to Take Over Firm
------------------------------------------------
Gillian Duncan at The Press and Journal reports that companies are
lining up to bid for RB Farquhar (Holdings).

As reported in the Troubled Company Reporter-Europe on November 8,
2010, The Scotsman said that the directors of RB Farquhar and
three of its subsidiaries appointed Blair Nimmo and Gary Fraser of
KPMG Restructuring as joint administrators, putting 112 jobs at
risk.  According to The Scotsman, the company's hires and storage
divisions, RB Farquhar (Hires) and Simply Self Storage, which
employ 77 and four staff respectively, will continue to trade as
normal while KPMG seeks a buyer.

According to the Press and Journal, Mr. Nimmo and Mr. Fraser have
been brought in to sell off the firm's self-storage and hire
businesses, which will continue to trade.  The report relates that
it is understood both arms of the company have attracted strong
interest.

The report notes that Gordon MP Malcolm Bruce said it did not look
like the business would be sold as a going concern, but in
different components, although that could change if someone made
an offer for the lot.  Mr. Bruce said administrators told him they
were in no rush to sell, the Press and Journal adds.

Based in Huntly, RB Farquhar (Holdings) produces prefabricated
bathroom pods.


ROK PLC: Mears Eyes Social Housing Business
-------------------------------------------
Ed Hammond and Mark Wembridge at The Financial Times report
that Mears looks to have put itself in pole position to take on
the social housing business of Rok plc just hours after its
building services rival collapsed into administration on Monday.

The FT relates Mears met PwC administrators to discuss acquiring
the rights to carry out Rok's obligations to maintain and repair
social housing stock in the UK.

According to the FT, Mike Jervis, running the administration for
PwC, said there was a possibility of a rival taking on Rok's
entire order book, which includes construction, maintenance and
insurance response contracts.

The social housing business was rumored to have also attracted the
interest of Rok rivals, Kinetics and Leadbitter, although neither
company could be reached for comment, the FT notes.

ROK Plc -- http://www.rokgroup.com/-- is a holding company of a
group of companies providing response maintenance, planned repairs
and refurbishment and new build services in the United Kingdom.
The Company operates in three segments: response maintenance;
planned repairs and refurbishment, and new build.  Rok Plc
provides a range of plumbing, heating and electrical (PHE)
services.  The Company's wholly owned subsidiaries include Rok
Building Limited, Rok Development Limited, Richardson Projects
Limited, LAS Plant Limited, Rok Civil Engineering Limited and
Tulloch Transport Limited.


ROK PLC: Dundee Workers Assured They Will Get Paid
--------------------------------------------------
Workers with ROK in Dundee were assured they would still be paid,
despite the building services company going into administration,
Evening Telegraph and Post reports.

As reported in the Troubled Company Reporter-Europe on November 9,
2010, Rok boss Garvis Snook has placed the company into
administration.  Construction Inquirer related that a stock
exchange announcement said: "The board of Rok announces that it
has resolved to put the Company into administration and to make an
application to the Financial Services Authority to suspend the
listing and trading of the Company's Ordinary Shares on the Stock
Exchange.  It is anticipated that the administration and
suspension will become effective shortly."  According to the
report, the move follows weeks of rumors that the company was
struggling in the maintenance sector which has already been hit by
the collapse of Connaught.

ROK Plc -- http://www.rokgroup.com/-- is a holding company of a
group of companies providing response maintenance, planned repairs
and refurbishment and new build services in the United Kingdom.
The Company operates in three segments: response maintenance;
planned repairs and refurbishment, and new build.  Rok Plc
provides a range of plumbing, heating and electrical (PHE)
services.  The Company's wholly owned subsidiaries include Rok
Building Limited, Rok Development Limited, Richardson Projects
Limited, LAS Plant Limited, Rok Civil Engineering Limited and
Tulloch Transport Limited.


ROK PLC: Administration Affecting Work on Trowbridge Civic Hall
---------------------------------------------------------------
Wiltshire Times reports that the future of the new Civic Hall in
Trowbridge hangs in the balance after Rok have gone into
administration.  The report relates that development had been well
underway at the civic hall site adjacent to Trowbridge Park until
news broke that the firm had gone into administration, causing the
few sub contractors who were at the site to leave earlier.

According to the report, work has ground to a halt at the site and
a delivery of steel fabrication which was due to arrive was not
delivered.

Wiltshire Times relates Trowbridge town clerk Lance Allan said:
"None of us had any inkling that this would happen.  I heard from
various sources about Rok going into administration this morning.
I was just completely surprised.  We have to find out what the
administrators are intending to do.  The situation at the moment
is that no work is taking place on site and the only sub
contractors who were on site have left."

Mr. Allan, the report notes, explained that if the administrators
do not find someone to take over the business or the projects it
has contracted out to then the town council will have to re-tender
the project, which could cost substantially more.

Rok plc and Rok Building Limited went into administration and
Robert Hunt, Michael Jarvis, and Robert Lewis and Jeremy Webb, all
of PricewaterhouseCoopers, were appointed as joint administrators,
Wiltshire Times notes.

ROK Plc -- http://www.rokgroup.com/-- is a holding company of a
group of companies providing response maintenance, planned repairs
and refurbishment and new build services in the United Kingdom.
The Company operates in three segments: response maintenance;
planned repairs and refurbishment, and new build.  Rok Plc
provides a range of plumbing, heating and electrical (PHE)
services.  The Company's wholly owned subsidiaries include Rok
Building Limited, Rok Development Limited, Richardson Projects
Limited, LAS Plant Limited, Rok Civil Engineering Limited and
Tulloch Transport Limited.


ROYAL BANK: Posts GBP1.4 Billion Pre-Tax Loss in Qtr. Ended Sept.
-----------------------------------------------------------------
BBC News reports that Royal Bank of Scotland has plunged back into
the red with a GBP1.4 billion (US$2.3 billion) pre-tax loss during
the three months to September.

BBC relates RBS blamed the loss on changes to the "fair value" of
its own debt, but said it was making "tangible progress".

According to BBC, RBS said market conditions would remain
challenging.

BBC notes RBS Chief executive Stephen Hester said the bank was
making "good progress in our recovery", but that highly volatile
accounting charges could "obscure our underlying story".

RBS, as cited by BBC, said while bad debt provisions were
improving, changes to the "fair value of own debt" had caused the
losses.

                             Bailout

As reported by the Troubled Company Reporter-Europe on Aug. 26,
2010, Stephen Hester, Royal Bank of Scotland's chief executive, as
cited by The Scotsman, said that the bank should not be given a
second chance of a taxpayer bailout if it is involved in another
financial crisis.  In a bold admission that the public would not
tolerate further handouts, Mr. Hester said all financial
institutions -- including RBS -- should be allowed to fail and
suffer the consequences without the state rushing to their aid,
according to The Scotsman.  The Scotsman disclosed Mr. Hester was
drafted in when RBS sank under a mountain of debt after the
meltdown that followed its disastrous takeover of the Dutch bank
ABN Amro before the credit crunch.

                           About RBS

The Royal Bank of Scotland Group plc (NYSE:RBS) --
http://www.rbs.com -- is a holding company of The Royal Bank of
Scotland plc (Royal Bank) and National Westminster Bank Plc
(NatWest), which are United Kingdom-based clearing banks.  The
company's activities are organized in six business divisions:
Corporate Markets (comprising Global Banking and Markets and
United Kingdom Corporate Banking), Retail Markets (comprising
Retail and Wealth Management), Ulster Bank, Citizens, RBS
Insurance and Manufacturing.  On October 17, 2007, RFS Holdings
B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V.,
Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and
controlled by RBS, completed the acquisition of ABN AMRO Holding
N.V. (ABN AMRO).  In July 2008, the company disposed of its entire
interest in Global Voice Group Ltd.


SPICERS: Inability to Finance Debts Spurs Voluntary Liquidation
---------------------------------------------------------------
Spicers (Builders) Ltd has gone into liquidation with the loss of
50 jobs, buildersmerchantsjournal.net reports.

According to buildersmerchantsjournal.net, managing director
Nick Weaver told staff that the company had run out of work and
was unable to finance its debts.

The company, buildersmerchantsjournal.net says, has instructed
recovery and insolvency specialist Smith and Williamson to advise
it on going into liquidation.

buildersmerchantsjournal.net relates Neil Hickling, director of
insolvency at Smith and Williamson, said he was aiming to sell
Spicers' one outstanding contract to another contractor to recoup
some money.

A meeting with shareholders and creditors has been set for
November 24, 2010.

Established in 1929, Spicers built Worcester Porcelain Museum, the
King's School library and the local swimming pool.  It was founded
by Ernest V Spicer and developed into a local contractor taking on
jobs of between GBP1 million and GBP2 million with a joinery and
plant business.


* UK: Banks Expect Rise in Small Business Insolvencies Next Year
----------------------------------------------------------------
Alan Purkiss at Bloomberg News, citing the Financial Times,
reports U.K. banks such as Barclays Plc, Lloyds Banking Group Plc
and Royal Bank of Scotland Group Plc expect the number of small
companies becoming insolvent and reorganizing in the next year to
increase or stay at the present high level.

According to the FT, the newspaper said insolvency practitioners
represented by R3, a trade group, predict that corporate failures
will rise to 27,500 next year, from last year's 26,400.


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


* EUROPE: Bank Bail-Ins Dangerous & Unworkable, Rabobank Says
-------------------------------------------------------------
Jennifer Hughes at The Financial Times reports that Rabobank, the
mutually owned Dutch lender, has warned that proposals to dock
bondholders' investments to recapitalize failing banks -- known as
"bail-ins" -- are dangerous and unworkable.

The so-called bail-in plan is one of two main ideas for forcing
bondholders to share the burden of rescuing failing banks in an
effort to protect taxpayers and to encourage investors to be
choosier about their investments, the FT discloses.

According to the FT, Bert Bruggink, Rabobank's chief financial
officer, has instead backed a second idea: creating special bonds
known as contingent capital, nicknamed "Cocos", to help absorb
losses.  The FT relates rather than a bail-in, which would create
uncertainty about the scale of losses for all investors, he said
it would be simpler to sell bonds specifically designed to absorb
losses to investors able to bear that risk.


* Moody's: Global Default Rate Falls to 3.7% in October
-------------------------------------------------------
The trailing 12-month global speculative-grade default rate
dropped to 3.7% in October 2010, down from a level of 4.0% in
September, said Moody's Investors Service in a new report.  A year
ago, the global default rate was much higher at 13.4%.  The
ratings agency's default rate forecasting model now predicts that
the global speculative-grade default rate will fall to 2.8% by the
end of this year before declining to 1.9% by October 2011.

"Defaults continue to come in near, but generally below, our
expectations," said Albert Metz, Moody's Director of Credit Policy
Research.  "Issuers are able to find the liquidity they need when
they need it."

In the U.S., the speculative-grade default rate fell to 3.6% in
October from 4.0% in September, while in Europe, the default rate
declined to 2.8% in October from 3.5% in October.  The U.S. and
European default rate stood at 14.6% and 10.6% respectively, at
this time last year.  Among U.S. speculative-grade issuers,
Moody's forecasting model foresees the default falling to 2.9% by
December 2010 and then declining to 2.2% a year from now. In
Europe, the forecasting model projects the speculative-grade
default rate will end the year at 2.1% before dropping to 1.2% by
October 2011.

A total of five Moody's-rated corporate debt issuers defaulted in
October, which sends the year-to-date default count to 45.  This
is below Moody's January projection that 63 defaults would have
been recorded through the first ten months of the year.  In
comparison, a total of 247 defaults were recorded in the
comparable time period last year.  Across regions, all of
October's defaults were by North American issuers except for
Hipotecaria Su Casita, S.A. de C.V., which is based in Latin
America.

Across industries over the coming year, default rates are expected
to be highest in the Hotel, Gaming, & Leisure sector in the U.S.
and the Durable Consumer Goods sector in Europe.

Measured on a dollar volume basis, the global speculative-grade
bond default rate edged lower to 1.4% in October, down from 2.0%
in September.

Last year, the global dollar-weighted default rate was noticeably
higher at 19.3%.

In the U.S., the dollar-weighted speculative-grade bond default
rate ended at 1.1% in October, down from the level of 1.8% in
September.  The comparable rate was 20.1% in October 2009. In
Europe, the dollar-weighted speculative-grade bond default rate
edged lower to 2.4% in October from 2.6% in September.  At this
time last year, the European speculative-grade bond default rate
was 12.0%.

Moody's speculative-grade corporate distress index -- which
measures the percentage of rated issuers that have debt trading at
distressed levels -- came in at 14.1% in October, down from the
level of 15.0% in September.  A year ago, the index was much
higher at 27.2%.  In the leveraged loan market, no Moody's-rated
loan defaulters defaulted in October.  Therefore the year-to-date
loan default count remained unchanged at 19.  The trailing 12-
month U.S. leveraged loan default rate fell from 4.1% in September
to 3.6% in October.  A year ago, the loan default rate was 11.5%.


* S&P's 2010 Global Corporate Defaults Tally Now at 73
------------------------------------------------------
Four U.S.-based corporate issuers defaulted last week, raising the
year-to-date 2010 global corporate default tally to 73, according
to a report published by Standard & Poor's.  By region, the
current year-to-date default tallies are 50 in the U.S., three in
Europe, nine in the emerging markets, and 11 in the other
developed region (Australia, Canada, Japan, and New Zealand).

According to the report, titled "Global Corporate Default Update
(Oct. 29 - Nov. 4, 2010) (Premium)," so far this year, missed
interest or principal payments are responsible for 27 defaults,
Chapter 11 and foreign bankruptcy filings account for 22,
distressed exchanges account for 19, receiverships account for
three, regulatory directives and administration account for one
default each.

Of the global corporate defaulters in 2010, 42% of issues with
available recovery ratings had recovery ratings of '6' (indicating
our expectation for negligible recovery of 0% to 10%), 12% of the
issues had recovery ratings of '5' (modest recovery prospects of
10% to 30%), 8% had recovery ratings of '4' (average recovery
prospects of 30% to 50%), and 17% had recovery ratings of '3'
(meaningful recovery prospects of 50% to 70%).  And for the
remaining two rating categories, 12% of the issues had recovery
ratings of '2' (substantial recovery prospects of 70% to 90%) and
10% had recovery ratings of '1' (very high recovery prospects of
90% to 100%).


                            *********

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.




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