TCREUR_Public/101112.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Friday, November 12, 2010, Vol. 11, No. 224



A-TEC INDUSTRIES: Lenders to Decide on AE&E Financing This Weekend


DEXIA SA: Third Qtr. Profits Decline; Short-Term Funding Down


STORA ENSO: Moody's Gives Positive Outlook; Affirms 'Ba2' Rating


BANQUE ESPIRITO: Fitch Affirms Individual Rating at 'D/E'
DOUX SA: Moody's Assigns (P)'B2' Rating to EUR400M Senior Notes
DOUX SA: Fitch Assigns 'B-' Long-Term Issuer Default Rating
TEREOS UNION: S&P Affirms 'BB' Long-Term Corporate Credit Rating


HSH NORDBANK: Majority Owners Want Chief Executive Ousted
KUKA AG: Moody's Assigns (P)'B2' Corporate Family Rating
KUKA AG: S&P Assigns 'B' Long-Term Corporate Credit Rating


CLOVERIE PLC: Fitch Downgrades Rating on 2004-27 Series to 'Dsf'
EPIC PLC: Fitch Affirms Ratings on Two Class of Notes at 'CCC'
POSTBANK IRELAND: Posts EUR73.4 Million Loss During Wind-Down

* IRELAND: Bank Default Swaps Soar on Bailout Cost Concerns
* IRELAND: Foreign Ownership of Ailing Banks Not Ruled Out
* IRELAND: European Commission Extends Bank Guarantee Scheme


F-E GOLD: Fitch Downgrades Rating on Class C Notes to 'BBsf'


POLSKI KONCERN: Moody's Gives Stable Outlook on 'Ba1' Rating


ALROSA FINANCE: Fitch Assigns 'BB-' Rating to US$1BB Eurobonds


NORIEGA SA: Files for Creditor Protection; Has EUR1 Billion Debt


SUNRISE COMMUNICATIONS: Bond Offering Won't Move Moody's Rating

U N I T E D   K I N G D O M

BELLATRIX PLC: S&P Downgrades Rating on Class E Notes to 'D'
GATENBY: Enters Administration
JARVIS PLC: Unit Prosecuted Over 2002 Railway Collision
NORTHERN ROCK: S&P Junks Rating on Tier One Notes From 'B'
PROPERTY BUREAU: Company Directors Face Disqualification

ROK PLC: Rivals Seek to Take Over Contracts Directly
ROK PLC: Last Ditch Talks to Save Firm Collapsed
ROK PLC: Administration Affects Brewery Square Development
UNITED BUSINESS: Placed Into Voluntary Liquidation


* BOOK REVIEW: Insull - The Rise and Fall of a Billionaire Utility



A-TEC INDUSTRIES: Lenders to Decide on AE&E Financing This Weekend
Boris Groendahl at Bloomberg News, citing national news agency
APA, reports that lenders of A-Tec Industries AG's AE&E power
plant unit may need until the weekend to approve a plan to
continue financing AE&E.

According to Bloomberg, APA said the banks can't agree on how to
split further AE&E financing between them.

As reported by the Troubled Company Reporter-Europe on Nov. 8,
2010, Bloomberg News said A-Tec's creditor committee "broadly
accepted" a proposal by the AE&E power-plant unit's lending banks
on financing the division.

As reported by the Troubled Company Reporter-Europe on Nov. 5,
2010, Bloomberg News, citing a member of A-Tec's creditor
committee, said lenders to the AE&E power plant unit asked for
a stake as collateral in exchange for a bridge loan intended to
keep the unit operating.  "The banks would like to have 40% of
AE&E as a security for the loan," Wolfgang Hrobar of creditor
protection association Alpenlaendischer Kreditorenverband said on
the phone from Vienna, according to Bloomberg. Bloomberg disclosed
two groups of creditors are in talks about restructuring A-Tec's
debt since the group filed for insolvency on Oct. 20.   Bloomberg
said rescuing AE&E is crucial for A-Tec and its creditors.  The
unit, which builds power plants for clients such as utilities or
steel makers, is A-Tec's biggest unit with 60% of the group's
revenue and 83% of pretax profit in 2009, Bloomberg stated.
Failure to keep it afloat would diminish the funds for creditors,
Bloomberg noted.

As reported by the Troubled Company Reporter-Europe on Nov. 4,
2010, Bloomberg News, citing Wirtschaftsblatt, said that creditors
of the AE&E unit offered a EUR97 million (US$136 million)
bridge financing facility until Jan. 31.  Bloomberg disclosed the
newspaper said A-Tec's creditor committee had asked for EUR140

On Oct. 22, 2010, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported that A-Tec sought court clearance to
reorganize debt after losing access to its line of credit because
of an Australian power-station project's financial difficulties.
Bloomberg disclosed A-Tec said in a statement on Oct. 20 that the
company filed for self-administered reorganization proceedings at
the Vienna Commercial Court and appointed trustees for
bondholders.  Bloomberg said A-Tec has 90 days under Austrian law
to seek an agreement with lenders, after which it can seek full
protection from creditors.  The company has a EUR798 million
(US$1.11 billion) revolving credit facility and EUR302 million of
outstanding bonds, according to Bloomberg data.

A-Tec Industries AG is an engineering company based in Vienna,


DEXIA SA: Third Qtr. Profits Decline; Short-Term Funding Down
Stanley Pignal at The Financial Times reports that Dexia SA moved
further away from its reliance on short-term funding in the third
quarter as it unveiled declining third-quarter profits.

According to the FT, sliding revenue and costs linked to
restructuring hurt caused net profits to fall to EUR203 million in
the three months to end September, compared to EUR274 million
(US$377 million) a year ago.

Dexia, the FT says, is in the midst of a restructuring imposed
upon it by the European Commission, which wants it to reduce its
balance sheet size to mitigate having received a EUR6 billion
bail-out at the height of the financial crisis.

It has warned that its future profits would be dented by a large-
scale deleveraging and divestment plan imposed on it by Brussels,
the FT notes.

Among the measures undertaken by Dexia is an overhaul of its
liquidity profile, after its reliance on short-term funding was
exposed as credit markets dried up in 2008, according to the FT.

Short-term funding is down from EUR260 billion at the end of
October 2008 to EUR121 billion at the end of September 2010, it
announced after markets closed on Wednesday, the FT discloses.

The FT relates in a presentation, the group also said the
outstanding portion of its remaining short-term government
guaranteed funding was "almost nil" at the end of September.
Dexia is moving to replace its funding with medium- and long-term
bonds, some of which were state-backed until earlier this year,
the FT discloses.

                          About Dexia SA

Dexia SA -- is a Belgian bank specialized
in retail banking and local public finance.  The Bank offers a
range of banking services for individual customers, small and
medium-sized enterprises and institutional clients.  It has four
divisions: Asset Management, Personal Financial Services, Treasury
and Financial Markets, and Investor Services.  The Asset
Management division offers products ranging from traditional and
alternative funds to socially responsible investments.  The
Personal Financial Services segment focuses on banking and
insurance products, including both life and non-life insurance
products.  Through its Treasury and Financial Markets division,
Dexia is present in the capital markets and provides support to
the entire Group.  The Investor Services segment offers various
services to shareholders, such as fund and pension administration.
Through its subsidiaries, Dexia SA is active in over 30 countries,
including Belgium, Luxembourg, Slovakia, Turkey, France, Australia
and Japan.


STORA ENSO: Moody's Gives Positive Outlook; Affirms 'Ba2' Rating
Moody's Investors Service has changed the outlook on the ratings
of Stora Enso Oyj to positive from stable.  At the same time,
Moody's affirmed Stora Enso's Ba2 Corporate Family Rating, its Ba2
Probability of Default Rating, the Ba2 Senior Unsecured Notes
Ratings and the Not Prime short-term rating.

                        Ratings Rationale

"The outlook change to positive reflects continued improvements in
Stora Enso's performance and credit metrics, meaning that an
upgrade to Ba1 over the next few quarters is likely to the extent
that these advances are sustained", says Christian Hendker,
Moody's lead analyst for the European Paper and Forest Products
sectors.  "Stora Enso's performance and leverage has shown a
significant recovery from the trough levels in 2009, which
reflects both a recovery of market conditions in the paper, forest
products and packaging market as well as Stora Enso's ongoing
disciplined capacity management and proactive cost management,
which is aimed at improving earnings quality as well as a
financial policy focused on cash preservation", continues
Mr.  Hendker.  Retained cash flow-to-debt has recovered to around
20% in the last twelve months ending September 2010, compared to a
level of only 10.7% in 2009.

Moody's notes that although the current cyclical recovery is
beneficial for a turnaround in Stora Enso's performance, the
company remains exposed to some structural challenges in the paper
industry; overcapacity in some paper grades remains unsolved and
some of the recent recovery in demand may only reflect an
inventory-restocking of end-customers.  In addition, elevated
input costs remain a burden for profitability levels going
forward, unless recently increased pricing levels for paper,
packaging and wood products cannot be maintained.

The positive outlook reflects the increasing likelihood of a
rating upgrade over the next 6 to 12 months, if the recent
improvement in credit metrics are sustained, on the back of rising
demand, ongoing realization of efficiency improvements and a
financial policy focused on cash preservation applied to de-

The ratings could be upgraded if Stora Enso improves operating
profitability on a sustainable basis as indicated by EBITDA
margins in the mid-teens and retained cash flow-to-debt
approaching 20%.

The ratings could be downgraded were Stora Enso unable to improve
profitability and operating cash flow generation, as indicated by
EBITDA margin below 10% and RCF-to-debt below 13%.  In addition,
should free cash flow generation turn negative on an LTM basis,
this would put pressure onto the rating.

Stora Enso's liquidity position benefits from continued strong
free cash flow generation, with the company generating FCF of
around EUR657 million in the last twelve months ending September
2010, driven largely by a strong recovery of funds from
operations.  The company currently has a cash position of around
EUR1.1 billion and access to credit facilities of around EUR1.4
billion.  Moody's anticipates that the EUR1.4 billion revolving
credit facility, which matures in 2012, will be proactively
refinanced well ahead of its maturity.

The last rating action on Stora Enso was implemented on 29 April
2010, when the outlook was changed to stable from negative.

Outlook Actions:

Issuer: Stora Enso Oyj

  -- Outlook, Changed To Positive From Stable

Headquartered in Helsinki, Finland, Stora Enso is among the
world's largest paper and forest products companies, with sales in
the last twelve months ending September 2010 of approximately
EUR10 billion.  Core activities include publication and fine
papers, paper packaging products and solid wood products.


BANQUE ESPIRITO: Fitch Affirms Individual Rating at 'D/E'
Fitch Ratings has downgraded Banque Espirito Santo et de la
Venetie's Long-term Issuer Default Rating to 'BBB-' from 'BBB;
Negative Outlook.  Fitch has also downgraded BESV's EUR350 million
medium-term program (Bons a Moyen Terme Negociables) to 'BBB-'
from 'BBB'.

BESV's other ratings have been affirmed:

  -- Short-term IDR: affirmed at 'F3'
  -- Support Rating: affirmed at '2'
  -- Individual Rating: affirmed at 'D/E'
  -- Certificate of deposit program: affirmed at 'F3'.

The downgrade and Negative Outlook reflects the downgrade of Banco
Espirito Santo's Long-term IDR (rated 'BBB+'/Negative/'F2'), which
controls 42.7% of BESV.  Espirito Santo Financial Group ('BBB-
'/Negative/'F3') controls a further 44.8% and Italy's Intesa
Sanpaolo ('AA-'/Stable/'F1+') owns 12.5%.  BES is Portugal's
third-largest banking group.

BESV's IDRs are based on the support Fitch believes it could
expect to receive from BES, if needed.  BESV is not strategic for
BES, but it shares the group name and BES appoints the bank's
senior management.  The affirmation of BESV's Support Rating
reflects the agency's belief that there is still a high
probability that BES would provide support to BESV, should this be
required.  BESV is reliant on committed funding lines from BES.
In H208, BES injected additional capital into BESV and in 2008 and
2009 it subscribed to undated subordinated debt issued by BESV.

The Individual Rating reflects some pressure on BESV's operating
profitability, its niche focus and persistent difficulties in
funding itself independently.

In the event that BESV's IDRs are downgraded in the future, its
Support Rating would also be downgraded.

In Fitch's rating criteria, a bank's standalone risk is reflected
in Fitch's Individual ratings and the prospect of external support
is reflected in Fitch's Support ratings.  Collectively these
ratings drive Fitch's Long- and Short-term IDRs.

DOUX SA: Moody's Assigns (P)'B2' Rating to EUR400M Senior Notes
Moody's Investors Service has assigned a provisional (P)B2, LGD4
(52%) long-term senior unsecured rating to the proposed EUR400
million worth of senior unsecured notes, maturing in 2017, to be
issued by DOUX SA.  Concurrently, Moody's has assigned a
provisional (P)B2 corporate family rating and (P)B2 probability-
of-default-rating to DOUX SA.  The outlook on the ratings is

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

The notes will be guaranteed by DOUX SA's principal subsidiaries.
The proceeds from the proposed issuance will be used to refinance
the company's existing indebtedness.

The (P)(B2) CFR is contingent upon the successful issuance of the
proposed EUR400 million senior unsecured notes.

                        Ratings Rationale

"Whilst the (P)B2 CFR incorporates DOUX's efforts in rationalizing
its production and cost structure, which helped cushion it against
the negative effects of difficult trading conditions in 2009, it
is constrained by: (i) structurally challenging, and recently more
volatile, conditions within the industry, including its commodity-
driven nature and exposure to food safety issues; (ii) DOUX's
concentration on chicken protein; and (iii) the company's
currently weak, albeit improving, credit metrics," says Yasmina
Serghini-Douvin, a Moody's Assistant Vice President and lead
analyst for DOUX.

"However, the rating also reflects: (i) the company's position as
one of the world's leading poultry producers, with production
operations chiefly in France and Brazil; (ii) its robust market
positions in the competitive and fragmented French poultry market,
as well as in the growing Brazilian and export markets (especially
in the Middle East); and (iii) its portfolio of well-known brands
of raw and processed products," adds Ms. Douvin.

DOUX has been exposed to many challenges over the past three
years, which have put a strain on its profitability and cash flow
generation.  These include unusually high commodity prices (DOUX
has historically purchased feed grains on the spot market),
volatile foreign exchange rates, constrained consumer spending and
pressures on export prices.  The company's profitability has
improved since 2009, as export prices somewhat recovered,
commodity prices came down from their record highs and the company
reaped the benefits from its ongoing restructuring program.  The
current ratings factor in Moody's expectation of somewhat
stabilized industry conditions in 2010, which, together with
DOUX's ongoing cost-cutting initiatives, should result in the
company achieving better operating margins and lower leverage.  In
this respect, the first months of 2010 were encouraging for the
company, given that it exhibited improved profit trends, notably
on the back of better export prices, and the ability to pass on
some of the recent cereal price increases to its customers.

At the same time, Moody's cautions that DOUX has yet to confirm
the positive trends seen in 2009 and the first months of 2010, and
more evidence of sustained improvement in performance is required
for the company's ratings to be more comfortably positioned in the
category.  Compared with its rated peers, DOUX is smaller in size
and concentrated on a single protein, although it is comparatively
more exposed to growing export markets in the Middle East and
Eastern Europe, and displays somewhat weaker margins and debt
protection ratios (calculated on a three-year-average basis).
Moody's also note that the company's earnings have historically
been impacted by fluctuations in currencies, given that its main
functional currencies are the euro and Brazilian real, but that
exports sales and debt incurred in Brazil are denominated in US

The proposed EUR400 million notes issuance is an essential part of
the company's debt restructuring as the net proceeds will be used
to refinance almost all of its existing bank debt of which (i)
EUR123 million under its medium-term credit facility with Barclays
at the level of DOUX SA; (ii) approximately EUR245 million of
senior credit facilities and EUR11 million in short-term export
credits at the level of DOUX Frangosul in Brazil.

The (P)B2, LGD4 (52%) long-term senior unsecured rating is in line
with the (P)CFR, as DOUX's proposed senior unsecured notes will
represent the single most important item in the company's
liability structure.  The notes will be jointly and severally
guaranteed by the material subsidiaries of DOUX SA, which
represented more than 95% of its consolidated EBITDA and revenue
and more than 90% of its net assets in 2009.

However, Moody's expects the proposed notes to be contractually
subordinated to approximately EUR32 million worth of secured bank
facilities (on a pro forma basis at June 2010), consisting of
EUR25 million under the French medium-term facility and a US$9
million term loan entered into by DOUX Frangosul.

The liquidity profile of DOUX will improve if and when the company
successfully closes its proposed refinancing exercise, thus
reducing its scheduled debt repayments in the coming years and
lengthening its debt maturity profile, which is currently composed
of a large proportion of short-term bank lines in Brazil.  Moody's
would then expect the company to finance its day-to-day business
needs using principally cash flow generated from its operations,
the factoring of receivables in France and Brazil and uncommitted
short-term export lines.  The business is subject to seasonality,
with the second half of the year usually more favorable in terms
of revenue and requiring fewer liquidity resources and borrowings
than the first quarter.

Furthermore, in light of stabilizing industry conditions, the
absence of major projects requiring capital investments and the
expectation of limited dividend payments to shareholders, Moody's
expects DOUX to deliver modestly positive free cash flow in the
current financial year.  The company's FCF generation will
nevertheless be affected by the normalization in trade payables
that occurred in the first half of 2010, which resulted in a
somewhat large working capital outflow.

The stable outlook is based on Moody's expectation that DOUX will
continue in its efforts to improve its profitability and maintain
positive FCF and comfortable liquidity with sufficient covenant
headroom.  It also factors in the rating agency's expectation that
the company will achieve lower leverage during the course of 2010,
evidenced by a debt-to-EBITDA (on a three-year average basis)
ratio moving towards 5.0x.

The ratings or outlook could come under pressure if: (i) adverse
market conditions depress DOUX's volumes or operating margin, or
if the company fails to deliver an improved operational
performance, resulting in negative FCF generation; (ii) if the
company fails to reduce its financial leverage below 6.0x (on a
three-year average) and to improve its retained cash flow (RCF)-
to-net debt ratio towards 10%; or (iii) if any liquidity concerns
develop notably if DOUX fails to maintain a comfortable covenant
headroom in the next few quarters.

Upward pressure on the group's ratings or outlook would result
from: (i) an improvement in (adjusted) EBITA margin above 5% on a
sustainable basis; (ii) clear evidence of a sustainable reduction
in financial leverage towards 4.0x (on a three-year average); and
(iii) an RCF/net debt ratio above 10%.

DOUX SA, headquartered in Chateaulin, France, is one of the
world's largest poultry producers, with production facilities
principally in France and Brazil.  DOUX SA is a privately owned
company that posted revenues of approximately EUR1.3 billion in
2009.  The company produces, prepares, packages and delivers
fresh, chilled and processed poultry and poultry processed
products to customers in various countries in Europe, Brazil and
the Middle East.

DOUX SA: Fitch Assigns 'B-' Long-Term Issuer Default Rating
Fitch Ratings has assigned France-based poultry producer Doux S.A.
a Long-term Issuer Default Rating of 'B-' and a Short-term IDR of
'B'.  The ratings are all on Rating Watch Negative, reflecting the
company's need to procure longer-dated debt which a successful
issue of the proposed bond is expected to address.  A successful
bond offering would alleviate any liquidity concerns and, hence
the agency expects to remove the RWN and assign a stable outlook
upon evidence of the company's receipt of minimum expected
proceeds of EUR350 million.

The agency has also assigned Doux's prospective EUR400 million
senior unsecured guaranteed bond an expected rating of 'B-' and a
Recovery Rating of 'RR4'.  The final rating for the bond is
contingent on the receipt of final documents conforming to
information already received.  Failure to raise bond proceeds of
at least EUR350 million along with secured debt (fully drawn)
remaining above EUR100 million (or equivalent in other currencies)
can adversely affect the senior unsecured rating.

After the proposed bond issue, Doux is expected to benefit from a
stronger capital structure, reducing its exposure on short-term
financing.  However, funds from operation adjusted leverage is
expected to remain high at approximately 6.2x for FY10.  Doux will
remain exposed to foreign currency risk in so far as debt would be
denominated in Euros whereas profits are largely derived from
Brazil and are linked to US$.  A rating upgrade could result from
sustained FFO-adjusted leverage below 4.5x, along with a permanent
improvement in free cash flow cover ratios and an EBITDA margin
above 8.5% on a sustainable basis.

Doux's Long-term IDR reflects its integrated model in the
production cycle for poultry, its multi-approach towards sourcing
(both from Brazil and Europe), the diversity of its end-markets
(retail, food service and agri-food industries) and positive long-
term growth fundamentals as poultry remains the cheapest source of
protein.  Fitch also recognizes the group's rationalization of its
business operations, as well as the shift towards more value-added
products, although this is not yet fully developed.

"Although Fitch recognizes the strategic decision to concentrate
on poultry, the lack of protein product diversification is
considered a weakness relative to some of Doux's larger peers,
mainly in Brazil," says Pablo Mazzini, Senior Director at Fitch's
EMEA Food & Consumer Products group.

The company's rating also reflects the low profitability of its
domestic European and Brazilian operations.  It also captures the
inherent volatility in cereal costs (used for feed production) and
international poultry prices which have been historically
mitigated largely by the group's pricing power in relation to its
export clients.  Exports, representing the majority of group's
EBITDA, are generated from Brazil, which enjoys competitive cost
advantages in the production of proteins, and France.  However,
French exports outside the EU are subject to EU subsidies which
are due to end by 2016 under guidelines from the WTO.

The company's financial flexibility is considered limited compared
to other protein producers such as JBS ('BB-'/Stable), Brasil
Foods or Marfrig Alimentos ('B+'/Stable), which benefit from
higher liquidity cushions.  Furthermore, Doux's corporate
governance principles are considered below standard in certain
aspects, such as its lack of an audit committee and independent
board directors.

Fitch recognizes the good financial performance in H110 although
profit margins could decline in H2 due to rising commodity prices
used for feed.  In addition, if the bond offering does not proceed
as expected, Doux's liquidity could be constrained given the debt
amortization commitments under a term loan in France (in the order
of EUR20 million per annum) and reliance on short-term secured
debt financing.

Fitch also notes that the company has been in restructuring
negotiations with its lending banks following certain violations
of some of its loan financial covenants.  However this situation
has been solved successfully.  After the bond issue, the company
expects to obtain working capital facilities in Brazil for a total
amount of EUR40 million (equivalent) to improve its liquidity

Fitch has assigned an expected 'RR4' rating to the planned
unsecured bond, reflecting average recovery expectations (31%-50%)
in the event of default.  Although Doux will retain some secured
debt in its Brazilian subsidiary (Doux Frangosul S.A.), debt at
the bond issuer level (Doux S.A.) will benefit from guarantees
from the majority of the cash-generating companies (accounting for
at least 95% of consolidated EBITDA).  This, together with certain
restrictions to incur additional indebtedness under the draft
conditions of the bond, aside from a carve-out of up to
EUR20 million, should, in Fitch's view, avoid structural
subordination for the prospective bondholders.

TEREOS UNION: S&P Affirms 'BB' Long-Term Corporate Credit Rating
Standard & Poor's Ratings Services said that it has affirmed its
'BB' long-term corporate credit rating on French sugar and sugar
derivatives producer Tereos Union de Cooperatives Agricoles -
Capital Variable.  The outlook is stable.

At the same time, S&P affirmed its 'BB' issue rating on the
company's senior bonds.  The recovery rating on this instrument
remains unchanged at '3', indicating Standard & Poor's expectation
of meaningful (50%-70%) recovery for bondholders in the event of a
payment default.  That said, S&P sees recovery prospects at the
low end of the range.

Both ratings were removed from CreditWatch, where they were placed
on March 30, 2010, with developing implications.

The affirmation and CreditWatch resolution follow Tereos'
corporate reorganization and the successful refinancing of most of
its debt.

"The rating actions reflect S&P's view that Tereos will likely
finance its investment projects with internal free cash flows and
equity," said Standard & Poor's credit analyst Florence Devevey.
"Consequently, these projects should not, in S&P's opinion, weaken
the company's financial metrics."

In particular, Standard & Poor's believes that Tereos should be
able to maintain fully adjusted debt to EBITDA of about 3.5x over
the next couple of years.

The company has reorganized its corporate structure.  S&P believes
that, while still complex, it is now a better fit with Tereos'
more diversified business activities.  Under the new structure,
European sugar beet operations are under Tereos France, while the
cereal and Brazilian businesses are under Tereos Internacional.
Tereos Internacional is the parent company of Tereos EU (cereals
and Indian Ocean assets) and the majority-owned Brazilian sugar
cane and biofuel producer Guarani.

Tereos has successfully refinanced its syndicated loan with two
separate financings: one at Tereos France and one at Tereos EU.
S&P believes that these new financings have improved Tereos' debt
maturity profile and liquidity.

S&P understands that Tereos wants to develop existing and new
businesses, focusing particularly on Brazil.

"The stable outlook reflects S&P's view that, despite material
improvement in Tereos' cash flow generation capacity, deleveraging
will likely be limited because of the company's track record of
acquisitions and its expansion ambitions," said Ms.  Devevey.

S&P views adjusted debt to EBITDA of about 3.5x and adjusted funds
from operations to debt in the 15%-20% range as commensurate with
the current rating.

A positive rating action would be possible if deleveraging were
sustainable in S&P's view (adjusted debt to EBITDA of close to
3.0x), adjusted FFO to debt exceeded 20%, and the company ran what
S&P would consider to be a consistently less leveraged financial

S&P could lower the rating if Tereos were unable to generate
positive free cash flow, especially owing to an unexpected, sharp
spike in raw material costs.  A downgrade would also be possible
if the company failed to maintain what S&P views as "adequate"
liquidity at all times, in particular if covenant headroom were
below 15% as from September 2011 (the current rating incorporates
S&P's estimate that covenant tests in September 2010 and March
2011 will likely show headroom of 10%-15%).


HSH NORDBANK: Majority Owners Want Chief Executive Ousted
James Wilson and Robert Wright at The Financial Times report that
HSH Nordbank has been told by its majority owners to get rid of
its chief executive in an attempt to draw a line under a series of
scandals that have compounded the German bank's problems in
recovering from the financial crisis.

The FT relates the state governments of Hamburg and Schleswig-
Holstein on Tuesday demanded that Dirk-Jens Nonnenmacher be
removed from the bank, where he has been chief executive for two
years.  "Both governments look upon this step as necessary to win
back trust," said a statement from the two states, which own 85
percent of the bank, according to the FT.

Mr. Nonnenmacher has been under pressure since allegations emerged
this year of the illegal surveillance of some staff, the FT says.
The bank's supervisory board has said it has not found evidence of
wrongdoing by Mr. Nonnenmacher, after inquiries by law firms, the
FT discloses.

HSH Nordbank, as cited by the FT, said Mr. Nonnenmacher would
remain until further notice and the supervisory board would
discuss the matter next month.

HSH Nordbank needed a bail-out from Hamburg and Schleswig-Holstein
after it lost billions of euros in the crisis through toxic
investments, the FT relates.  The bank is awaiting notice from EU
competition authorities of the remedies demanded to compensate for
state aid, which are likely to include a large reduction in assets
and withdrawal from some lines of business, steps set in train by
Mr. Nonnenmacher, the FT says.

The bank still faces the problem of financing huge numbers of ship
orders placed during the industry's 2002 to 2008 boom, even though
many of the ships are now worth far less than the amount the bank
agreed to lend against them, the FT states.

The bank has been severely hit by its exposure to Germany's KG
funds, shipping investment funds raised from citizens, the FT
notes.  Many organizers of KG funds can no longer afford to meet
their obligations to raise cash towards the cost of new ships and
the obligation has reverted to lenders such as HSH Nordbank,
according to the FT.

HSH Nordbank -- is a commercial
bank in northern Europe with headquarters in Hamburg as well as
Kiel, Germany.  It is active in corporate and private banking.
HSH's main focus is on shipping, transportation, real estate and
renewable energy.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on Sept. 29,
2010, Fitch Ratings maintained the Rating Watch Negatives on the
Long- and Short-term Issuer Default Ratings of Bayerische
Landesbank, HSH Nordbank AG, Landesbank Saar and WestLB AG.  In
addition, Fitch has maintained the RWNs on the Support Rating
Floors of all four banks.  At the same time, Fitch upgraded the
Individual Rating of WestLB to 'D' from 'E', and BayernLB's
Individual Rating to 'D' from 'D/E'.

KUKA AG: Moody's Assigns (P)'B2' Corporate Family Rating
Moody's Investors Service has assigned a provisional (P)B2
corporate family rating and a (P)B2 probability of default rating
to KUKA AG.  At the same time, Moody's has assigned a provisional
(P)B3, LGD4 (60%) rating to KUKA's proposed EUR200 million senior
secured notes.  The rating outlook is stable.  This is the first
time that Moody's has rated KUKA.

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

                        Ratings Rationale

The (P)B2 CFR reflects KUKA's (i) solid market position in its key
segments, namely Robotics (in which it ranks No.1 worldwide, with
a 27% market share) and Systems (body-in-white, No.2 in Europe and
US); (ii) its high level of innovation and technology leadership;
(iii) its long-standing customer relationships, which mitigate the
company's high level of customer concentration; as well as (iv) a
streamlined cost base as a result of its ongoing cost reduction
programme, which is expected to yield approximately EUR70 million
in recurring cost savings by the end of 2010.

The rating also takes into account KUKA's successful
implementation of a capital increase in June 2010, which resulted
in proceeds of EUR45 million.  Additionally, the rating considers
the company's earnings recovery in the first 9 months 2010, when
KUKA reported a positive EBIT of EUR13.3 million.  This compares
with KUKA's negative EBIT of EUR28.0 million in the same period
2009, also as a result of restructuring costs.  Looking ahead,
Moody's expects the company's earnings recovery to continue in Q4
2010 and beyond.

However, Moody's points out that KUKA's rating is constrained by a
high reliance on the automotive sector, which is characterized by
a limited number of large OEMs that exercise strong pricing power
over its customers.  Also, capital investments of the automotive
OEMs are even more volatile than the highly cyclical industry
itself and strongly exposed to the overall economic environment.
Furthermore, the rating reflects KUKA's limited diversification in
terms of geography (around 70% of 2009 revenues were generated in
Europe) as well as existing overcapacities in the robotics sector,
resulting in persistent pricing pressure.  Moreover, the rating
takes into account the company's limited scale relative to its
much larger and more diversified key competitors, often large

Moody's rating assessment is based on the expectation that KUKA
can broadly sustain the performance shown in H1 2010 and therefore
achieve consolidated revenues of more than EUR1.0 billion and
reported EBIT for FY 2010 in the range of EUR20-30 million (before
restructuring costs and Moody's standard adjustments).

Moody's says that the assignment of a definitive B2 CFR to KUKA
would be contingent upon the successful execution of the company's
re-financing package that will include, among other factors, a
committed three-year EUR50 million secured Revolving Credit
Facility with comfortable headroom under its financial covenants
(leverage, interest cover, gearing) as well as the successful
placement of the proposed EUR200 million bond.

Subsequent to the finalization of this re-financing, Moody's says
that KUKA's liquidity profile -- including its cash position, the
new revolving credit facility as well as funds from operations --
would be expected to fully cover all anticipated liquidity needs
over the next 12 months, comprising debt maturities, working
capital and day-to-day needs as well as capital expenditures.

The stable rating outlook incorporates Moody's expectation that
KUKA will (i) successfully execute its refinancing plan, including
a high-yield bond issue as well as a renewed syndicated credit
facility with comfortable headroom under its covenants; (ii) be
able to halt its cash burn in the current year, generate positive
free cash flows thereafter and use the generated cash to reduce
debt; and (iii) sustainably improve its operating performance and
cash flow generation.

Moody's would consider downgrading KUKA's ratings in the event of
(i) a continued cash burn evidenced by a negative free cash flow
through H2 2010 and beyond; or (ii) the company's inability to
improve the EBITA margin above 2.5% in the current year and/or an
inability to further improve it above 4% in 2011; or (iii) a
failure to de-leverage significantly with debt/EBITDA to be
reduced to around 4.5x in 2011 and well below 4.0x thereafter.

Moody's would consider upgrading the ratings over the medium term
if KUKA demonstrates continued improvements in operating and cash
generation and a more robust performance through the cycle, as
evidenced by (i) a sustained EBITA margin of above 5%; (ii) an
interest coverage (EBIT/interest expenses) of at least 2.0x; as
well as (iii) a positive free cash flow generation of EUR10
million a year or more.

The proposed EUR200 million senior secured notes will be issued by
KUKA AG, the ultimate holding company, and will benefit from (i)
guarantees provided by all material subsidiaries representing
individually 5% or more of total assets, sales and EBITDA, with a
minimum guarantor coverage of 80% of assets, sales and EBITDA; as
well as (ii) certain receivables, inventories and intellectual
property rights (iii) share pledges of larger sub-holdings and the
pledge of bank accounts.  The collateral for the notes will
effectively rank as second liens behind the planned credit
facility with super-priority ranking.

The rating agency believes that a family recovery rate of 50%
(Moody's standard assumption for debt structures including bond
and bank debt) is the most appropriate assumption for KUKA when
applying Moody's Loss-Given-Default Methodology.  This view is
based on the rating agency's estimate of a distressed enterprise
value in case of default.  Given these assumptions, Moody's Loss-
Given-Default Methodology results in a (P)B3 instrument rating for
the EUR200 million senior secured notes with LGD4(60%).  This
provisional (P)B3 rating is based on draft documentation received
so far and is subject to Moody's satisfactory review of final

Moody's understands that KUKA intends to use the proceeds of the
EUR200 million notes (i) to refinance the outstanding convertible
notes amounting to a nominal amount of approximately EUR69 million
maturing in November 2011; (ii) as additional liquidity of
approximately EUR120 million and (iii) to cover transaction


Issuer: KUKA AG

* Probability of Default Rating, Assigned (P)B2

* Corporate Family Rating, Assigned (P)B2

* Senior Secured Regular Bond/Debenture, Assigned a range of 60
  - LGD4 to (P)B3

Headquartered in Augsburg, Germany, KUKA AG focuses on robot-
supported automation of manufacturing processes and is thus active
in the mechanical and plant engineering sector.  The company has
two divisions: KUKA Robotics and KUKA Systems, with the latter
being by far the most important in terms of revenues, to which it
contributed around 65% in 2009.

KUKA AG: S&P Assigns 'B' Long-Term Corporate Credit Rating
Standard & Poor's Ratings Services said that it assigned its
preliminary 'B' long-term corporate credit rating to Germany-based
industrial automation and robotics manufacturer KUKA AG.  The
outlook is stable.

At the same time, S&P assigned a preliminary 'B-' issue rating to
KUKA's proposed EUR200 million second-lien secured notes.  The
preliminary recovery rating on this debt instrument is '5',
indicating S&P's expectation of modest (10%-30%) recovery in the
event of a payment default.

The EUR200 million note issue is part of a EUR400 million
refinancing undertaken by KUKA.  The remaining EUR200 million
senior secured bank facilities comprise a EUR50 million revolving
credit facility and a EUR150 million bank guarantee line, both of
which are likely to mature in March 2014.

The preliminary ratings on the proposed notes are based on draft
documentation dated Oct. 29, 2010.  The ratings are subject to a
successful completion of the proposed EUR200 million notes issue
and a EUR200 million bank line refinancing.

Final ratings will depend upon receipt and satisfactory review of
all final transaction documentation.  Accordingly, the preliminary
rating should not be construed as evidence of a final rating.  If
Standard & Poor's does not receive final documentation within a
reasonable time frame, or if final documentation departs from
materials reviewed, Standard & Poor's reserves the right to
withdraw or revise its rating.

"The preliminary ratings on Germany-based industrial automation
and robotics manufacturer KUKA AG are constrained by the company's
high exposure to the cyclical auto industry and, consequently,
weak and volatile operating margins," said Standard & Poor's
credit analyst Abigail Klimovitch.  "Further constraints include
KUKA's difficult position as a supplier to price-aggressive
original equipment manufacturers; and limited geographic, end-
market, and customer diversity.

"These constraints are partly offset by KUKA's strong and leading
market positions in its niche markets and longstanding
relationships with OEMs, which provide high barriers to entry for
competitors.  In addition, KUKA benefits from end-market
diversity, albeit on a weak level, and its main customer OEMs'
plans to expand into emerging markets, one of the main engines for
growth in the auto industry."

According to S&P's calculations (and pro forma for the proposed
refinancing), KUKA's total debt, as adjusted by Standard & Poor's,
was EUR276 million on Sept. 30, 2010.  This translates into a high
adjusted total debt-to-EBITDA ratio of 6.7x that S&P anticipate
KUKA should achieve by the end of 2010.  On a net basis, adjusting
for EUR95 million surplus cash (with EUR50 million cash reserved
for ongoing operational needs), S&P calculate that adjusted debt
and leverage would be EUR181 million and 4.4x, respectively, by
the end of 2010.

In S&P's view, KUKA is likely to generate about EUR34 million of
funds from operations in 2010 and achieve positive EBITDA.
Furthermore, S&P think that KUKA should post high double-digit
EBITDA growth in the next 18 months.  As a result, S&P anticipate
that KUKA's adjusted ratio of net debt to EBITDA will be below
4.5x, and FFO to debt will be in the low to mid-double-digit
territory, by the end of 2011.  S&P views these two ratios as
compatible with the rating over the medium term, provided that
KUKA's operating performance and cash flow generation do not


CLOVERIE PLC: Fitch Downgrades Rating on 2004-27 Series to 'Dsf'
Fitch Ratings has downgraded six tranches and affirmed 34 tranches
of Cloverie, Tempo, Delta, Claudius, Claris, High Tide and
Brooklands structured finance CDO transactions.

These transactions continue to be highly distressed, due to
considerable exposure to assets rated 'CCCsf' and below and
overall low available credit enhancement to sustain potential
losses.  Recovery expectations for the underlying structured
finance assets are generally poor as most assets are thin
mezzanine tranches which would likely suffer heavy losses upon

The rating downgrades follow the settlement of certain credit
events.  The Series 2004-27 of Cloverie PLC Ghibli CDO and
Brooklands Euro Referenced Linked Notes 2001-1 Ltd's Class C have
been written down and downgraded to 'Dsf'.

Fitch has assigned an Issuer Report Grade of 'Two Stars' to each
transaction to reflect its basic investor reporting.  Fitch notes
that the investor reports provide consistent reporting with credit
events and portfolio profile tests.  However, the reports lack
information on transaction counterparties and do not report
charged assets.

The related transactions are synthetic collateralized debt
obligations referencing portfolios of primarily US structured
finance assets.

Cloverie PLC is domiciled in Ireland.

EPIC PLC: Fitch Affirms Ratings on Two Class of Notes at 'CCC'
Fitch Ratings has affirmed Epic (Brodie) plc's EUR305 million
commercial mortgage-backed floating-rate notes, due 2016:

  -- EUR181.0m class A: affirmed at 'AAA'; Outlook Stable
  -- EUR33.5m class B: affirmed at 'AA'; Outlook Stable
  -- EUR22.8m class C: affirmed at 'A'; Outlook Stable
  -- EUR26.7m class D: affirmed at 'BBB'; Outlook Stable
  -- EUR22.6m class E: affirmed at 'B'; Outlook Negative
  -- EUR12.0m class F: affirmed at 'CCC'; RR4
  -- EUR6.4m class G: affirmed at 'CCC'; RR6

The affirmation reflects the stable performance of the pool's
collateral income over the past 12 months.

The two remaining loans in the pool continue to perform soundly
from an income perspective, with both loans maintaining adequate
interest cover ratios.  This is due to the stability of the
collateral income generated by both loans and the individual asset
manager's ability to re-let vacant space to maintain occupancy

Updated valuations on the Terry loan in March 2010 resulted in a
market value decline of 19%, causing a breach of the whole loan
loan-to-value covenant and a subsequent event of default under the
loan.  The current whole loan LTV is 107.5%, compared with a
covenant LTV of 90%.  The 90-day cure period has elapsed without
remedy and the loan's waterfall remains unchanged, according to
the transaction documents.  The servicer remains in discussions
with the borrower about an appropriate future strategy.  The loan
is scheduled to mature in April 2011, at which point it may be
accelerated or extended.

Over the past 12 months, the Kenmore loan's borrower has
successfully continued its asset disposal strategy.  The
outstanding balance has reduced to EUR57.7 million from
EUR114.1 million at closing, as a result of the sale of 30 assets.
However, an updated valuation dated September 2009 resulted in an
MVD of 19%.  The current reported weighted-average LTV for the
portfolio is 63.5%, compared with a Fitch WA LTV of 75%.

POSTBANK IRELAND: Posts EUR73.4 Million Loss During Wind-Down
Ciaran Hancock at The Irish Times reports that Postbank Ireland
Ltd., the financial institution being wound down by its joint
owners -- An Post and BGL BNP Paribas -- made a loss of EUR73.4
million in the 18 months to the end of June 2010.

According to The Irish Times, the loss comprised a trading loss of
EUR26.6 million and a financial charge of EUR46.7 million relating
to the closure of the bank, which was announced in February.

The wind-down costs include EUR3 million in redundancy payments
for 140 staff who were laid off, The Irish Times says.

The Irish Times relates a spokesman for An Post said the full
costs of the wind-down process have been accounted for in the
latest accounts.  The spokesman added all of its customer accounts
have been closed and the bank will cease operation by the year
end, The Irish Times notes.

As reported by the Troubled Company Reporter-Europe on March 1,
2010, Thierry Schuman, chairman of the Postbank board, as cited by
The Irish Times, said a number of factors have led the
shareholders to this decision.  "They include the unprecedented
circumstances in which the financial services sector finds itself,
the highly competitive savings market within Ireland and the
absence of a perspective of profitability in current market
circumstances," The Irish Times quoted Mr. Schuman as saying.

Postbank offered current accounts, and savings and investment
products, which were available through 980 post offices.

* IRELAND: Bank Default Swaps Soar on Bailout Cost Concerns
John Glover and Michael Shanahan at Bloomberg News report that the
cost of insuring the bonds of Irish banks soared to distressed
levels amid concern that the government won't be able to afford
the cost of bailing out the nation's banks.

Irish and international banks' loan losses in the country may
total least EUR85 billion (US$117 billion), central bank Governor
Patrick Honohan said in a speech in Dublin on Wednesday, according
to Bloomberg.

Bloomberg relates Morgan Kelly, an economics professor dubbed
"Doctor Doom," said on Nov. 8 that mortgage defaults may push the
cost of Ireland's bank bailout to EUR70 billion, more than the
government's estimate of EuR50 billion.

According to Bloomberg, swaps on subordinated debt of Allied Irish
Banks Plc, the nation's second-largest lender, jumped 2 percentage
points to 55.7% upfront and 5% a year, meaning it costs EUR5.57
million in advance and EUR500,000 annually to insure EUR10 million
of the bank's debt for five years.  Subordinated swaps on Bank of
Ireland, the country's biggest bank, jumped 2.5 percentage points
to 31% upfront and 5% a year, Bloomberg discloses.

* IRELAND: Foreign Ownership of Ailing Banks Not Ruled Out
John Murray Brown at The Financial Times reports that Patrick
Honohan, Ireland's central bank governor, on Wednesday put a "For
Sale" sign over the country's ailing banks, stressing that foreign
ownership of the troubled sector was "not as far-fetched a
scenario as it might appear to some".

The FT relates speaking at Dublin's International Financial
Services Summit, Mr. Honohan said: "From a national point of view,
the entry of foreign purchasers for some or all of the banks would
help transfer both credit and liquidity risk to those in a better
position to bear them."

"Astute bankers recognize there is profitable banking business to
be done in Ireland in the years to come, though they will differ
on the optimal timing and the pricing of entry," Mr. Honohan, as
cited by the FT, said.

The government has provided EUR29 billion for the scandal-racked
Anglo Irish Bank and the two smaller building societies Irish
Nationwide and Educational Building Society -- with all three now
state owned, the FT discloses.  It has also invested EUR3.5
billion worth of preference shares in each of the two big banks,
Bank of Ireland and Allied Irish Banks, the FT states.

Mr. Honohan calculated that if losses incurred at the local
operations of Lloyds and Royal Bank of Scotland are also included,
Ireland's property crash has resulted in losses across the six
main lenders of EUR85 billion or 55% of gross domestic product,
the FT notes.

"In addition to the state's share in injecting funds to meet these
estimated losses, the remainder has in effect been absorbed by the
shareholders.  I mention this . . . to dispel any impression that
the policy and shareholder response in restoring capital levels
might have grossly low-balled loss estimates," Mr. Honohan said,
according to the FT.

* IRELAND: European Commission Extends Bank Guarantee Scheme
RTE News reports that the European Commission on Wednesday said
that it had approved the extension of an Irish bank guarantee
system until June 30 next year.

RTE relates the Commission said in a statement the guarantees,
which are aimed at reassuring investors, were 'adequate means to
remedy a serious disturbance in the Irish economy'.

The Eligible Liabilities Guarantee covers Irish retail, corporate
and interbank deposits, RTE discloses.  It has been in existence
for almost a year and replaced the blanket guarantee which was
brought in September 2008.  It does not cover subordinated debt or
asset covered securities, RTE notes.

The banks covered under the ELG scheme are Irish Life and
Permanent, Bank of Ireland, AIB, ICS Building Society, Anglo Irish
Bank, EBS Building Society, Irish Nationwide Building Society and
Irish Nationwide Isle of Man, RTE says.

The state has earned more than EUR1 billion by charging the banks
for providing the guarantee, RTE states.

It has to be reviewed and approved by the European Commission
every six months, and was due to have expired on December 31,
according to RTE.


F-E GOLD: Fitch Downgrades Rating on Class C Notes to 'BBsf'
Fitch Ratings has taken various rating actions and also assigned
Loss Severity ratings on four Italian mixed-lease receivables-
backed transactions:

F-E Blue S.r.l.

  -- EUR73.1m class B notes affirmed at 'AA-sf'; Outlook revised
     to Negative from Stable; assigned 'LS-1'

  -- EUR35.1m class C notes affirmed at 'BBB+sf'; Outlook revised
     to Negative from Stable; assigned 'LS-2'
The F-E Blue class A notes redeemed on 14 October 2010.

F-E Green S.r.l.

  -- EUR94.7m class A notes affirmed at 'AAAsf'; Outlook Stable;
     assigned 'LS-2'

  -- EUR108.5m class B notes affirmed at 'AAAsf'; Outlook Stable;
     assigned 'LS-1'

F-E Gold S.r.l.

  -- EUR360.5m class A2 notes affirmed at 'AAAsf'; Outlook revised
     to Negative from Stable; assigned 'LS-1'

  -- EUR56m class B notes downgraded to 'BBBsf' from 'A+sf';
     Outlook Negative; assigned 'LS-3'

  -- EUR10.2m class C notes downgraded to 'BBsf' from 'BBBsf';
     Outlook Negative; assigned 'LS-4'

F-E Red S.r.l.

  -- EUR1321.4m class A notes affirmed at 'AAAsf'; Outlook Stable;
     assigned 'LS-1'

As at end October 2010, the Fitch Cumulative Gross Default Rate
was 4.2% for F-E Blue, 4.3% for F-E Green, 6.2% for F-E Gold and
3.1% for F-E Red.  The Fitch Delinquency Rate (DR) was 5.7% for F-
E Blue, 2.3% for F-E Green, 4.7% for F-E Gold and 4.3% for F-E

With the exception of F-E Red, all the transactions have CGDR
values which are now above Fitch's base case default assumptions.
The F-E Gold transaction, in particular, continues to exhibit
sharp increases in gross defaults resulting in an appreciable
divergence between observed CGDR and Fitch base case expectations.

Cumulative net default rates, which take into account recoveries,
have been performing more favorably in comparison to the Fitch
base case default projections.  As at October 2010, CNDR is 2.3%
for F-E Blue, 2.6% for F-E Green, 4.3% for F-E Gold and 2.5% for
F-E Red.  Only the F-E Gold CNDR is higher than the Fitch base
case; both F-E Blue and F-E Red have CNDR values which are lower
than the Fitch base case and the CNDR for F-E Green is in line
with the base case assumptions.

The transactions benefit from interest on the residual value of
the lease contracts which have not been securitized.  These
proceeds count towards excess spread.

All four transactions have a sizeable proportion of the collateral
pool on the principal payment holiday program which was introduced
in Italy in October 2009.  As at October 2010, F-E Blue had 25.8%
of the outstanding balance of receivables, excluding defaults, on
the PPH program; F-E Green had 15.4%, F-E Gold had 18.8% and F-E
Red had 15.5%.  The scheme was due to expire in June 2010 but has
been extended till January 2011.  Fitch is concerned about the
risk of increased charge-offs resulting from the deterioration of
accounts on the PPH program once the scheme expires.

The cash reserve fund for F-E Gold underwent an instant
amortization in April 2010 after the outstanding balance of class
A notes fell below 50% of the balance at closing, as per the
transaction documents.  Reserve funds have been kept in line with
required levels for all other transactions.

The F-E Green class B notes' principal and interest payments are
guaranteed by the European Investment Fund (AAA/Stable/F1+).

The amortizing collateral pools for the first three F-E
transactions (Blue, Green and Red) have become dominated by real
estate leases as auto leases and equipment leases tend to have
shorter maturities.  As at October 2010, real estate leases make
up these percentages of the respective transaction pools: 99% (F-E
Blue), 98% (F-E Green), 92%(F-E Gold) and 67% (F-E Red).

Obligor concentration remains a concern to Fitch for some of the
older F-E transactions with the top 10 lessees in the pool
accounting for 12.3% and 5.6% of the total outstanding collateral
balance for F-E Blue and F-E Green respectively.  Any future
deterioration should be mitigated by the availability of credit
enhancement as well as the cash reserve funds, however, the
evolution of obligor concentration in the transaction pools will
continue to be closely monitored.


POLSKI KONCERN: Moody's Gives Stable Outlook on 'Ba1' Rating
Moody's Investors Service has changed its outlook on all ratings
of Polski Koncern Naftowy Orlen S.A. to stable from negative
(Issuer Rating: Ba1).  All ratings of the group remain unaffected.

The change in the outlook was prompted by continued robust
operating performance and an improvement in the financial profile
of PKN Orlen since Moody's downgraded the group's ratings by-one
notch to Ba1 with a negative outlook back in May 2009.  PKN Orlen
benefited from an improvement in petrochemicals market conditions
in H2 2009 and YTD September 2010 while refining margins and Light
/ Sour crude differentials remained volatile and depressed
throughout fiscal year 2009 before recovering modestly during H1
2010.  In light of stabilizing refining & marketing market
conditions at a pretty low level compared to peak 2007-H1 2008
market conditions, PKN Orlen performed above expectation.
Reported EBIT (according to LIFO) jumped to PLN1,467 million YTD
Sept. 2010 from PLN-226 million in previous year leading to PLN989
million of free cash flow (PLN -695 in previous year).  The
improvement in operating performance of the group reflects PKN
Orlen's (i) high complexity refining assets offering strong
leverage to gradually improving crude differentials, (ii) focus on
middle distillates with the improvement in diesel cracks largely
outpacing structurally weak gasoline margins, and (iii) operating
efficiency measures across all assets with welcomed improvements
at Orlen Lietuva and Unipetrol.  The financial profile of PKN
Orlen improved with CFO / Debt and FCF / Debt increasing from
20.4% and -9.6% respectively at FYE 2008 to around 36% and 15% on
an LTM September 2010 basis.

Going forward Moody's expects that market conditions in the
European refining market environment will remain challenging and
volatile.  Refining cracks and differentials should however
continue to recover very gradually from the trough reached in H2
2009 supported by a modestly improving macroeconomic environment.
Structural overcapacities in North America and Europe will only be
gradually reduced limiting the beneficial impact of a recovering
demand for distillates products.  Against this backdrop PKN Orlen
should be able to sustain its credit profile through at least
neutral free cash flow generation.  Moody's notes that PKN Orlen
will be facing a heavier maintenance turnaround schedule in fiscal
year 2011 impacting the overall refining throughput of the group
and hence reducing the positive impact of moderately stronger
refining cracks and differentials expected for 2011.

PKN Orlen is seen as relatively comfortably positioned in its
current rating category.  Further positive rating pressure would
be predicated upon a combination of continued sound operating
performance, finalization of asset sales to further reduce
leverage and prudent balance sheet management.  PKN Orlen's
ability to maintain RCF / Net debt in the mid twenties on a
sustainable basis and to consistently generate free cash flow
would be key in restoring an investment grade rating.

Negative rating pressure has largely abated over the last nine
months.  An unexpected pullback in refining market conditions
leading to a deterioration in operating performance and cash flow
generation and to resurging financial covenant pressure could
exert negative pressure on the ratings.  Failure to maintain RCF /
Debt metrics in the low double digits and to avert negative free
cash flow generation would lead to negative pressure on the

The liquidity profile of PKN Orlen is adequate.  The issuer had
PLN1.2 billion of cash & cash equivalents on balance sheet and
access to approximately PLN4 billion of various undrawn bank lines
at 30th September 2010.  The main cash flow needs over the next
twelve months consisting of working capital requirements, capex
and dividends to minority shareholders are expected to be covered
from operating cash flows.  PKN is expected to have comfortable
headroom under its financial covenants at fiscal year-end 2010.
Moody's highlights the strong reliance of the group on bank
lending (including financial covenants) to fund its business as a
source of weakness in assessing the liquidity profile of the

The last rating action was on 19 May 2009, when Moody's downgraded
PKN Orlen by one-notch to Ba1 and changed the outlook to negative
on all ratings.

PKN ORLEN, headquartered in Plock, is the largest oil refining and
retail group in Poland and one of the leading companies in this
sector in Central Eastern Europe.  The company is engaged in
processing of crude oil into a broad range of petroleum products,
transportation, wholesale and retail distribution of such
products.  PKN ORLEN reported revenues of PLN67.9 billion and an
EBITDA of PLN3.7 billion for the fiscal year ended 31st December


ALROSA FINANCE: Fitch Assigns 'BB-' Rating to US$1BB Eurobonds
Fitch Ratings has assigned Alrosa Finance S.A.'s US$1bn 10-year
Eurobonds a final 'BB-' rating.  The bonds are guaranteed by
Russian diamond producer Alrosa Company Limited ('BB-'/Stable).

Fitch notes the improvement in Alrosa's credit profile following
measures taken by new management in H209-H110 to reduce
operational and financial risks, and stabilization of the global
rough diamond mining industry.  The company has continued to build
its sales network and increased the share of sales under long-term
contracts with major international and Russian clients to 51% in
H110 from 21% in 2009.  This increase will help secure the
company's EBITDAR and operational cash flow in cyclical downturns.
The company targets to increase the share of sales under long-term
contracts to 70% in 2011.

Alrosa's measures to reduce financial risk included reducing debt
by 30% in the 12 months to October 2010, increasing long-term debt
as a share of the total debt portfolio to 55% as of 1 October 2010
from 20% as of 31 December 2009, refinancing short-term bank loans
with RUB26 billion five-year rouble bonds and reducing average
debt cost to 8.3% p.a. as of 1 October 2010 from 12.4% p.a. as of
31 December 2009.  Alrosa's 9M10 total debt totalled RUB104.7
billion (US$3.4 billion), including RUB47.3 billion (US$1.6
billion) of short-term debt.  Fitch estimates 2010 gross leverage
(gross debt/EBITDAR) at 2.7x-2.9x, and net leverage (net
debt/EBITDAR) at 2.6x-2.8x.  These figures are projected by the
agency to rise to 3.2x-3.4x, and 3x-3.2x, respectively, in 2011.

Alrosa plans to use the net proceeds from the Eurobond issue to
refinance and extend the tenor of existing debt, which will
further lengthen its debt maturity profile with the majority of
debt maturing post 2011.


NORIEGA SA: Files for Creditor Protection; Has EUR1 Billion Debt
Sharon Smyth at Bloomberg News, citing Cinco Dias, reports that
Noriega SA filed for protection from creditors.

According to Bloomberg, the newspaper said the company, which is
the Sanchez-Ramade family's property unit, has about EUR1 billion
(US$1.4 billion) of debt; its main creditors are Banco Bilbao
Vizcaya Argentaria SA, Banco Espanol de Credito SA and Caja

Noriega SA is a privately held Spanish real-estate company.


SUNRISE COMMUNICATIONS: Bond Offering Won't Move Moody's Rating
Moody's Investors Service said that the ratings of Sunrise
Communications Holdings S.A. and related subsidiaries remain
unchanged following the announcement that it has launched a tap
bond offering of its existing 8.5% senior unsecured notes due 2018
for an aggregate principal amount of EUR56 million.  The outlook
on the ratings is stable.

Sunrise is expected to use the net proceeds from the offering to
reduce the equity, which has been contributed by funds managed by
CVC Capital Partners in the form of preferred equity certificates
and, to the extent that any proceeds remain, for general corporate

According to Moody's, the small bond offering has no impact on the
ratings because of the marginal increase in the company's
leverage.  Leverage, on an Adjusted debt/EBITDA basis, is expected
to increase by only 0.1x.

Sunrise remains well positioned in the B1 rating category despite
the company's high leverage, with credit metrics expected to
gradually improve overtime, while there is no major competitive,
macro or regulatory threat envisaged over the near to medium term.

Moody's last rating action on Sunrise was implemented on 4 October
2010, when the rating agency assigned the company a B1 corporate
family rating.

Headquartered in Zurich, Switzerland, Sunrise is the country's
second-largest integrated telecommunications operator, with CHF2.0
billion of revenues and CHF500 million of EBITDA in FY 2009.  In a
market dominated by the incumbent, Sunrise is the leading
challenger with a reported 23% market share in mobile telephony, a
segment that is the largest contributor to the company's
consolidated revenues (58% of FY 2009 revenues).  The company has
an estimated 16% market share in the fixed voice segment and a 12%
market share in the asymmetric digital subscriber line segment.

U N I T E D   K I N G D O M

BELLATRIX PLC: S&P Downgrades Rating on Class E Notes to 'D'
Standard & Poor's Ratings Services lowered its credit rating on
Bellatrix (Eclipse 2005-2) PLC's class E notes to 'D (sf)' from
'CCC- (sf)'.

On Oct. 18, 2010, the Law of Property Act receiver sold the
property that secured the Market Way loan for GBP6.3 million, of
which it made available to Bellatrix (Eclipse 2005-2) net sale
proceeds of ?6.0 million.  After deducting for outstanding
expenses, including swap breakage costs, loan interest, and
default interest, and adding the retention balance in the
receiver's account, ?5.1 million remained to repay the notes.  The
outstanding balance on the Market Way loan was GBP7.7 million.

On the Oct. 26, note interest payment date, Bellatrix (Eclipse
2005-2) used the remaining net sale proceeds of GBP5.1 million to
partially repay the class A notes.  It also allocated the Market
Way loan losses of GBP2.5 million to the class E notes.  As a
consequence of the loss allocation, Bellatrix (Eclipse 2005-2)
reduced the principal balance of the class E notes by 14% to
GBP15.0 million.

Because S&P's ratings address ultimate repayment of the note
principal (alongside timely payment of interest), S&P has lowered
its rating on the class E notes to 'D (sf)'.

Bellatrix (Eclipse 2005-2) closed in 2005 with notes totaling
GBP393.7 million.  The notes have a legal final maturity of
January 2017.  Of the 13 loans that originally backed the
transaction, seven have prepaid and one has now been liquidated.
The note balance has reduced to GBP44.3 million.

GATENBY: Enters Administration
Gatenby has gone into administration.

Andy Richardson at North-East Business News reports that
electrical and household goods chain Gatenby almost went bust
three years ago after its bookkeeper, Fiona Dove, was jailed after
gambling away hundreds of thousands of pounds of the company's
money.  The report relates Ms. Dove admitted theft and was jailed
for a total of two years and eight months in November 2007 after
taking an estimated GBP353,733.89 from the retailers.  However,
the report notes, Ms. Dove was only instructed to repay about
GBP16,000 of the money that she had squandered in casinos, which
included a spending spree in Monte Carlo.

North-East Business News notes that the Gatenby family ploughed
their own money into the company to keep it afloat, but difficult
trading conditions during the recession have hit many high street
retailers.  North-East Business News says that administrators RSM
Tenon, of Sunderland, have been called in, signaling what could be
the end of half a century of Gatenby trading in the region.

The administrators are expected to issue instructions to customers
who owe outstanding payments or have orders in place, the report

Gatenby is an electrical and household goods chain that operated
six shops across County Durham and employed about 40 workers.

JARVIS PLC: Unit Prosecuted Over 2002 Railway Collision
James Lumley at Bloomberg News reports that Network Rail Ltd. and
a unit of Jarvis Plc will be prosecuted over their part in a
railway collision that killed seven people.

According to Bloomberg, the Office of the Rail Regulator,
Britain's railway watchdog, said in an e-mailed statement
Wednesday that it had started criminal proceedings against the
companies for breaches of health and safety law.

Bloomberg relates six passengers and one pedestrian died in May
2002 when a train left the tracks at Potters Bar, north of London.
At least 70 people were injured, Bloomberg recounts.  Jarvis,
whose Jarvis Rail maintenance unit was found partly responsible
for the crash by investigators, entered administration in March,
Bloomberg notes.

Jamie Harley, a spokesman for Jarvis's administrators at
Deloitte LLP, declined to comment, according to Bloomberg.

The first hearing in the case will take place in January,
Bloomberg says, citing the regulator.  If convicted, the companies
face unlimited fines, Bloomberg states.

Jarvis plc -- is a United Kingdom-
based company engaged in rail infrastructure renewal and
enhancement, plant hire, freight and facilities management.  The
Company is organized into three segments: Rail, Plant and
Accommodation Services.  Rail segment provides rail infrastructure
works to the United Kingdom rail industry, including rail renewal,
major track development, electrical and signaling services.  Plant
segment provides on-track machinery, small plant equipment and
manages a fleet of purpose-built vehicles for the rail and other
industries; provides bulk haulage and container freight services.
Accommodation Services segment undertakes facilities management
operations.  Jarvis Rail Limited (Jarvis Rail) is the rail
engineering arm of the business, which undertakes rail enhancement
projects, signaling and telecommunications, overhead line and
track renewals nationwide.

NORTHERN ROCK: S&P Junks Rating on Tier One Notes From 'B'
Standard & Poor's Ratings Services said that it has lowered
its rating on the GBP200 million 7.053% callable perpetual
Tier One Notes issued by Northern Rock (Asset Management) PLC
(A/Stable/A-1) to 'C' from 'B'.  This rating action follows the
tender offers launched by NRAM and Bradford & Bingley PLC
(--/--/A-1) for a total of six of their Tier 1 and Upper Tier 2
issues, including the TONs.  Nationalized U.K. mortgage lenders
NRAM and B&B have been owned by the same holding company (U.K.
Asset Resolution Ltd. (not rated)) since Oct. 1, 2010, and have
coordinated the timing of their offers.  The counterparty credit
ratings on NRAM and B&B, and the issue ratings on their other debt
securities, are unaffected.

The tender offers are targeted at hybrid issues that were excluded
from the offers which NRAM and B&B completed in June 2010.  The
prices offered for each issue range between 25% and 57% of par.
The securities included in the new offers include two rated
issues: NRAM's ?300 million 8.399% reserve capital instruments,
which are currently rated 'C' due to coupon suspension, and its

S&P considers that the tender offers are "distressed" under its
criteria, for two reasons.  First, bondholders would receive a
material discount to par if they accept the offers.  Second, S&P
considers that the offers are closer to a debt restructuring than
a purely opportunistic repurchase.  NRAM and B&B have already
suspended coupons on four of the six issues included in the
offers.  The two exceptions are NRAM's TONs, on which coupon
payments resumed in September 2010, and the Bradford & Bingley
Capital Funding L.P. GBP150 million 6.462% perpetual preferred
securities (not rated).  However, S&P see material uncertainty
regarding NRAM's and B&B's ability to repay junior subordinated
obligations such as these two issues in full when their wind downs
are complete.

The downgrade of NRAM's TONs reflects S&P's conclusion that the
tender offers are "distressed".  If some TONs remain outstanding
once the tender offers have been completed, S&P will review the
issue rating and would likely raise it back to 'B'.  This rating
level would reflect S&P's view that NRAM would continue to pay
TONs coupons for the foreseeable future.

The counterparty credit ratings on NRAM and B&B are unaffected by
the tender offers.  The gains they would generate from the offers
would improve the quality of capital, in S&P's view.  Although
their overall capital bases would decline, S&P considers that they
would retain comfortable surpluses over the minimum regulatory
requirement, which is materially lower for mortgage providers such
as NRAM and B&B than for deposit-taking banks.  S&P also consider
that their liquidity positions would remain "satisfactory".  The
counterparty credit ratings on NRAM and B&B principally reflect
S&P's view of the material, long-term support provided to them by
the U.K. government.  Accordingly, S&P categorize NRAM and B&B as
government-related entities under S&P's criteria.

                           Ratings List

               Northern Rock (Asset Management) PLC

      GBP200mn 7.053% callable perp core tier one nts hybrid
                       (ISIN XS0152710439)

                       To            From
                       --            ----
                       C             B

PROPERTY BUREAU: Company Directors Face Disqualification
Michael Gill, 39, of Enfield has become the second director of The
Property Bureau (UK) Ltd, a letting agency, to receive a company
directors disqualification following an investigation by The
Insolvency Service.  The seven-year ban follows that of fellow
director, 50-year old Tracy Gill, also from Enfield and known as
Tracy Tyler, whose three year ban commenced on October 12, 2010.

The investigation found that Mr. Gill, who was in charge of the
day to day running of the company, failed to correctly pay rents
collected from tenants to landlords or to repay deposits at the
end of a tenancy.  In addition, investigators found The Property
Bureau had repeatedly failed to correctly file its annual accounts
over a number of years.  While Mrs. Gill took no part in the day
to day running of the company, she failed to carry out her duties
as a director of The Property Bureau (UK) Ltd.

The Property Bureau (UK) Ltd entered into liquidation in May 2008
with debts of over GBP2 million.

In signing their disqualification undertakings Mr. Gill and
Ms. Gill (Ms. Tyler) did not dispute that:

    * They failed to ensure that TPB took adequate steps to
safeguard rent monies collected on behalf of landlords and / or
deposits taken from tenants from at least October 31, 2006,
resulting in losses of at least GBP331,784 to landlords and

    * Their failure to take these safeguards meant that TPB owed
landlords and tenants almost GBP800,000 at the time it went into

    * Of the total amount, over GBP300,000 was for rent collected
dating back to 2006, which they never forwarded to landlords;

    * They failed to ensure TPB paid back to tenants almost
GBP14,000 that landlords had secured with a government back
deposit protection scheme;

    * They failed to ensure that the company submitted its annual
accounts from 2002 through to 2006.

Commenting on the disqualifications, Vicky Bagnall, Director of
Investigations, said: "The public should be reassured that The
Insolvency Service works hard to remove dishonest, reckless and
irresponsible people from the business environment.  The action
taken on this matter sends a clear and simple message to company
directors; if you run a business that cheats its customers you
will be prevented from running a company."

ROK PLC: Rivals Seek to Take Over Contracts Directly
Alan Purkiss at Bloomberg News, citing the Financial Times,
reports that U.K. construction companies are contacting commercial
customers of Rok Plc in the hope of securing contracts before
administrators sell the business.

According to Bloomberg, several companies, which the newspaper
didn't identify, said they aim to take on Rok's repair and
maintenance work directly, rather than deal with the
administrators from PricewaterhouseCoopers LLP.

As reported by the Troubled Company Reporter-Europe on Nov. 10,
2010, the FT said 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
Nov. 8.  The FT disclosed 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.  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,
according to the FT.

ROK Plc -- 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: Last Ditch Talks to Save Firm Collapsed
Graham Ruddick at The Telegraph reports that unnamed sources close
to Rok Plc said that directors from the company held talks with
its banks over the weekend in an attempt to secure emergency
finance of around GBP20 million in order to meet its obligations.

However, the report notes, the proposals "did not stack up" for
the banks or Rok's directors, and PricewaterhouseCoopers (PwC) was
called in as administrator.

According to The Telegraph, the source said: "In these situations
the company and banks look at the requirement in the short term
and long term, and the available assets to pledge against and
value in the business."

Rok, The Telegraph notes, is understood to have suffered a
"tightening of credit" from suppliers and customers after issuing
a profits warning in August.  The report relates some suppliers
are thought to have demanded earlier payments.

PwC said that it was appointed administrator to Rok "due to
difficulties in meeting the company's financial obligations," The
Telegraph discloses.  The report says that about 3,800 jobs are
under threat at Rok.

Its banks, Royal Bank of Scotland, HSBC and Clydesdale, have been
left with more than GBP60 million of debt, The Telegraph adds.

ROK Plc -- 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 Affects Brewery Square Development
Harry Hogger at Dorset Echo reports that work on the second stage
of the Brewery Square development in Dorchester is likely to be
delayed after Rok Plc went into administration.

As reported in the Troubled Company Reporter-Europe on November 9,
2010, Rok boss Garvis Snook 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.

According to Dorset Echo, Brewery Square co-director Andrew
Wadsworth described the move as "disappointing" and "surprising".
The report relates that Rok was due to start work imminently on
the second phase of the Dorchester development.

Mr. Wadsworth, Dorset Echo notes, admitted that the latest turn of
events was likely to cause delays to the start of construction but
said he was hopeful a speedy resolution could be found.

ROK Plc -- 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.

UNITED BUSINESS: Placed Into Voluntary Liquidation
James Graham at reports that partners at the
Birmingham office of Begbies Traynor have been appointed
liquidators to United Business Centres Ltd.

James Martin and John Kelly have been named as joint liquidators
of United Business Centres Ltd and United Business Centres
(Management), discloses. says the creditors' voluntary liquidation
affects sites across the country but United Business Centres
(Midlands), which runs offices in Bromsgrove, Stafford and
Worcester, as well as seven other locations, will continue to

United Business Centres Ltd offers Serviced Office and Conference
facilities to customers.  Set-up in 1999, the business is based in
Milton Keynes, Buckinghamshire, England.


* BOOK REVIEW: Insull - The Rise and Fall of a Billionaire Utility
Author: Forrest McDonald
Publisher: BeardBooks
Softcover: 366 pages
List Price: US$34.95
Review by Henry Berry

Few people today have heard of Samuel Insull.  Yet in the 1920s
and 1930s he was as well-known and, in the end, as infamous as Ken
Lay, Bernie Ebbers, and other disgraced corporate executives.  Mr.
Insull was brought to trial by the U.S. government, his reputation
destroyed, and his fortune lost.  Through it all, the political
and legal drama was played out in the leading newspapers.

After an education at Oxford, Mr. Insull worked at a London bank
that was the European representative of Thomas Edison.  In that
position, Mr. Insull familiarized himself with the latest
inventions and operations in the growing field of electricity.
Before long, he was headed to the United States to become the
famous inventor's secretary.  Mr. Insull proved himself invaluable
to Edison.  He managed Edison's business affairs and financial
matters, becoming one of the "Edison" men on the board of
directors of the Edison General Electric Company (now General
Electric Company) founded in 1889.  In 1892, Mr. Insull became the
president of the Chicago Edison Company.

In the 1890s, Chicago aspired to be recognized as America's
leading city.  This aspiration was not unrealistic considering
Chicago was the host city for the World's Fair of 1893.  Mr.
Insull's inexhaustible energy and bold ambition and ideas were a
good match for Chicago's vision.  In was at the World's Fair that
Mr. Insull was able to demonstrate the central role that
electrical energy could play in the growth of a modern city.
Mr. Insull parlayed the fame and success of the World's Fair to
become one of the most important figures in Chicago and the United
States.  He formed relationships with local and national
politicians, bankers, top business leaders, and investors.  In
pursuit of his outsized ambitions for himself, his company, and
electrical energy, he became involved in increasingly complex
financial transactions with an increasingly wider circle of
individuals.  Acquiring and merging with other electric companies
and related businesses, Mr. Insull received more and more
publicity as an influential, forward-thinking corporate executive.
Innovative ideas introduced by Mr. Insull included open-end
mortgages for business expansion, rigorous cost-accounting
standards, recognition of labor unions, and mass marketing.
As is the case with many failed businesspersons, Mr. Insull's
downfall was brought on by tangled, questionable financial
transactions.  In 1930, a Chicago grand jury indicted Mr. Insull,
his son, and some associates.  Mr. Insull was eventually acquitted
of all charges, but his downfall was complete.  A Chicago
newspaper summed up the trials as: "Mr. Insull and his fellow
defendants -- not guilty; the old order -- guilty."

In this masterful biography, Mr. Insull is presented as a flesh-
and-blood character with magnified yet recognizable talents,
dreams, and flaws.  He became enmeshed in political and economic
forces beyond his control and became a scapegoat for the Great
Depression that was unfolding.

Forrest McDonald is the author of a book on the Constitution which
was a finalist for a Pulitzer Prize and other books on history and
biography.  Now retired, he taught in these areas for more than 40
years at Brown University and other places.


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

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  Go to 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,

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 * * *