---

        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

          Thursday, December 2, 2010, Vol. 11, No. 238

                            Headlines


A U S T R I A

A-TEC INDUSTRIES: Posts Loss in 3rd Quarter; Sales Down 8.4%


F R A N C E

BANQUE PALATINE: Fitch Affirms Individual Rating at 'D'
BOARDRIDERS SA: Moody's Assigns 'Ba3' Rating to Senior Notes
SEALY CORP: Divests European Manufacturing Operations


G E R M A N Y

ALMATIS BV: Judge Says Herrick Can't Access Confidential Info
PREPS VEHICLES: Moody's Junks Ratings on Four Classes of Notes
SAARGUMMI DEUTSCHLAND: Administrator to Strike Sale Deal Soon
WILHELM KARMANN: VW to Take Over Technical Development Unit


I R E L A N D

ANGLO IRISH: Secures Costs Orders Against Ex-Chief's Wife
ARLO VIII: S&P Withdraws 'B+ (sf)' Ratings on Series 2007 Notes
SUPPLIERFORCE: Enters Into Voluntary Liquidation
XELO PLC: S&P Downgrades Rating on Secured Notes to 'CC (sf)'
ZOO IV: Partial Buy-Back Won't Affect Ratings on Various Notes


I T A L Y

SEAT PAGINE: Moody's Junks Corporate Family Rating From 'B2'


N E T H E R L A N D S

LYONDELLBASELL INDUSTRIES: Moody's Lifts Corp. Rating to 'Ba3'
ROYAL INVEST: Posts US$1.6 Million Net Loss in Sept. 30 Quarter


P O R T U G A L

* PORTUGAL: May Seek Emergency Loan, Citigroup Predicts
* PORTUGAL: Banks Face "Intolerable Risk", Central Bank Says


R U S S I A

GAZPROMBANK JSC: Moody's Gives Positive Outlook on 'E+' Rating
SURGUTNEFTEGASBANK JSC: S&P Cuts Counterparty Credit Rating to B


S P A I N

TDA FTPYME: Moody's Assigns 'B2 (sf)' Rating to Series B Notes
* SPAIN: Banks May Struggle to Refinance EUR85BB Debt Next Year


S W I T Z E R L A N D

SES SOLAR: Reports US$1.1 Million Net Income in Sept. 30 Quarter


U N I T E D   K I N G D O M

HURST HOUSE: Goes Into Administration for Second Time
KCA DEUTAG: First Reserve Transfers Majority Stake to Pamplona
MILLENNIUM PLAZA: Anglo Irish Puts Firm Into Receivership
RADIO MALDWYN: Faces Liquidation Due to Insolvency
ROUND2 COMMUNICATIONS: Placed Into Administration

SECURETICKET (UK): Director Slapped With 9 Years Disqualification
TRAFALGAR NEW HOMES: Creditors Okay Company Voluntary Arrangement
YELL GROUP: Moody's Downgrades Corporate Family Rating to 'B3'
* UK: Private Equity Interest in Ailing Care Home Sector High
* UK: "Time to Pay" Scheme a Big Threat to Midland Firms, R3 Says


X X X X X X X X

* Upcoming Meetings, Conferences and Seminars




                            *********


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


A-TEC INDUSTRIES: Posts Loss in 3rd Quarter; Sales Down 8.4%
------------------------------------------------------------
Jann Bettinga at Bloomberg News reports that A-Tec Industries AG
said earnings before interest and taxes were "negative" in the
third quarter, without providing a figure.

Bloomberg relates the company said in a statement on its Web site
on Tuesday that sales in the period dropped 8.4% from a year
earlier to EUR618.5 million.

According to Bloomberg, the company said it currently can't make a
forecast for the full-year result.

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,
Austria.


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


BANQUE PALATINE: Fitch Affirms Individual Rating at 'D'
-------------------------------------------------------
Fitch Ratings has affirmed Banque Palatine's Long-term Issuer
Default Rating at 'A+', Short-term IDR at 'F1+, Individual Rating
at 'D' and Support Rating at '1'.  The Outlook for the Long-term
IDR is Stable.  A full rating breakdown is provided at the end of
this comment.

BP's IDRs are aligned to those of Groupe BPCE, due to its
affiliation with GBPCE's central body, BPCE (both rated
'A+'/Stable).  BP's affiliation to BPCE means that legally, BPCE
is responsible for maintaining adequate liquidity and solvency at
all times.  Any change in BPCE's IDRs would be reflected in those
of BP.

BP's Individual Rating reflects its small franchise in French
retail banking, although its share of the SME market is growing, a
low core operating profitability and pressures on asset quality in
a difficult economic environment.  It also factors in the sound
funding profile and adequate capital ratios.  An upgrade of the
Individual Rating is unlikely, given the current difficult
economic environment for SMEs.

BP's operating profitability is improving but remains modest.
Interest margins have suffered from the low interest rate
environment and the improvement in the bank's cost to income ratio
(to 63% in H110) is due to the bank's efforts to control costs.
At the same time, impairment charges have been escalating due to
mounting asset quality problems in the SME portfolio (which
accounts for 40% of BP's loan book).  Fitch expects these trends
to continue into 2011, although the bank's 2011 net income is
expected to be supported by good cost control and improved
performance of BP's equity-accounted real estate-related
subsidiaries.

The impaired loan ratio rose to 7% of gross loans at end-2009
(2008: 3.7%), largely reflecting the impact of a transfer from
BPCE of certain impaired securities.  These are fully guaranteed
by BPCE and intra-group asset transfers are not uncommon.  Without
this transfer, BP's impaired loan ratio would have been 3.9% at
end-2009 and unreserved impaired loans would represent 19% of
equity.  Fitch understands that asset quality within the SME
portfolio has deteriorated further during 2010.

BP's stable customer deposit base means that liquidity risk is
limited.  In addition, liquidity risk is tightly controlled by
BPCE, which is committed to supporting its affiliate's liquidity.
BP's capital base remains adequate, with a Fitch eligible capital
ratio of 10.12% at end-2009.

BP is a French bank specializing in retail and SME lending.  Since
August 2010, it has been fully controlled by GBPCE, split 91.7% to
BPCE and 8.3% to Credit Foncier de France, which is 100%-owned by
BPCE.

The rating actions are:

Banque Palatine:

  -- Long-term IDR: affirmed at 'A+'; Outlook Stable

  -- Short-term IDR: affirmed at 'F1+'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '1'

  -- Certificate of Deposit program: affirmed at 'F1+'

  -- "Bons a Moyen Terme Negociables" program: affirmed
     at 'A+'


BOARDRIDERS SA: Moody's Assigns 'Ba3' Rating to Senior Notes
------------------------------------------------------------
Moody's Investors Service assigned a Ba3 rating to Boardriders
SA's proposed offering of EUR200 million senior unsecured notes
due 2017.  Boardriders SA is a wholly-owned subsidiary of
Quiksilver, Inc.  Proceeds from the notes will be used to
refinance Quiksilver's existing secured European bank credit
facilities.  Moody's also affirmed Quiksilver's B2 Corporate
Family Rating, B2 Probability of Default Rating, and Caa1
US$400 million 6 7/8% senior unsecured notes due 2015.  The
company's Speculative Grade Liquidity rating was raised to SGL-2
from SGL-3.  The rating outlook remains positive.

                        Ratings Rationale

Quiksilver's B2 Corporate Family Rating reflects its moderate
leverage with debt/EBITDA in the mid 4 times range, pro-forma for
the August 2010 exchange of approximately $140 million of secured
term loans for common equity.  The rating also acknowledges that
the proposed note offering -- if completed as planned -- is
leverage neutral, though it will result in a more relaxed debt
maturity profile.  The Corporate Family Rating also takes into
consideration the company's inherent exposure to fashion risk.
Additionally, Quiksilver's product range is generally sold at a
relatively higher price point vis-a-vis other apparel offerings.
As a result the company is vulnerable to weak consumer spending as
shoppers have been focusing on value, which is most evident in the
recent weak performance of Quiksilver's Roxy brand.

The Ba3 rating assigned to the proposed EUR200 million notes
reflects their structural seniority in Quiksilver's capital
structure relative to the company's US$400 million notes.  The
proposed notes will also benefit from domestic and foreign
guarantees while Quiksilver's existing US$400 million notes will
only benefit from guarantees by Quiksilver's US subsidiaries.

The upgrade of the Speculative Grade Liquidity rating to SGL-2
reflects Quiksilver's higher cash balances, as well as Moody's
expectation that the company will continue to generate meaningful
levels of cash flow and maintain this higher level of internal
cash sources.  The SGL-2 rating also reflects the company's good
level of committed availability under its $150 million asset-based
revolver which does not expire until 2014.

The positive outlook reflects recent margin improvements as a
result of cost cutting and better inventory management.  Ratings
could be upgraded if Quiksilver demonstrates sales and margin
stability through the 2011 spring/summer season and continues to
maintain debt/EBITDA in the mid 4 times range and a good liquidity
profile.



The outlook could be revised to stable from positive if there is
an erosion in sales and margins and it appears that debt/EBITDA
was likely to increase to 5.0 times or EBITA/interest likely to
drop to 1.5 times.  Ratings could be downgraded if debt/EBITDA
approached 5.5 times or EBITA/interest coverage approached 1.25
times.  More aggressive financial policies, such as debt financed
acquisitions or other shareholder friendly actions could also lead
to a downgrade.

New rating assigned and subject to receipt and review of final
documentation:

  -- EUR200 million senior unsecured notes due 2017 at Ba3 (LGD
     2, 29%)

Rating upgraded:

  -- Speculative Grade Liquidity rating to SGL-2 from SGL-3

Ratings affirmed and LGD point estimates revised:

  -- Corporate Family Rating at B2

  -- Probability of Default Rating at B2

  -- US$400 million 6 7/8% senior unsecured notes due 2015 at Caa1
     (LGD 5, 78% from LGD 5, 77%)


SEALY CORP: Divests European Manufacturing Operations
-----------------------------------------------------
Sealy Corporation will divest its European manufacturing
operations, which are located in France and Italy.  These
operations will be combined into a separate entity, SAPSA Group
Srl, which will remain a valued Sealy partner through a Sealy
Brand licensing agreement in Europe.  The new entity will be
wholly-owned by a private Italian company.

"After carefully reviewing the alternatives available to us, we
concluded that a divestiture provided the greatest opportunities
for Sealy and SAPSA.  Our decision to divest SAPSA enables us to
better focus our resources on the areas of our business that are
aligned with our greatest growth opportunities.  This divestiture
will also position us to drive improved EBITDA performance and
reduce our net debt position," said Larry Rogers, Sealy's
President and Chief Executive Officer.  "We expect this improved
focus will drive increased shareholder value in both the near and
long-term as SAPSA will continue as a licensee of the Sealy
brand."

"We are also excited for the SAPSA business as we believe that the
new ownership team, whose management has significant European
operating experience, will provide it with renewed energy.  We
look forward to a profitable long-term relationship with SAPSA and
expect the new relationship to benefit SAPSA's customers,
employees and suppliers," said Mr. Rogers.

The newly appointed President of the SAPSA Group Srl, Andrea
Chalp, said, "I am excited about the opportunity to take over
leadership of SAPSA.  I believe the company has terrific future
growth prospects and look forward to working closely with our
dedicated employees to deliver superior product and service to our
valued customers.  We are committed to developing a long and
productive partnership with Sealy as we continue to build the
Sealy Brand in Europe."

Through the first nine months of fiscal 2010, Sealy's Europe
segment generated net sales to external customers of US$76.8
million and reported a loss of US$25.2 million before interest
expense, income taxes, depreciation and amortization, which
includes an impairment charge of US$23.0 million.

The transaction closed effective November 18, 2010.

Sealy was advised in the transaction by Gianni, Origoni, Grippo &
Partners and SAPSA Group Srl was advised by Orrick, Herrington &
Sutcliffe.

                        About Sealy Corp.

Trinity, North Carolina-based Sealy Corp. (NYSE: ZZ) --
http://www.sealy.com/-- is the largest bedding manufacturer in
the world with sales of US$1.5 billion in fiscal 2008.  The
Company manufactures and markets a broad range of mattresses and
foundations under the Sealy(R), Sealy Posturepedic(R), including
SpringFree(TM), PurEmbrace(TM) and TrueForm(R); Stearns &
Foster(R), and Bassett(R) brands.  Sealy operates 25 plants in
North America, and has the largest market share and highest
consumer awareness of any bedding brand on the continent.  In the
United States, Sealy sells its products to approximately 3,000
customers with more than 7,000 retail outlets.

The Company's balance sheet at Aug. 29, 2010, showed
US$964.88 million in total assets, US$206.78 million in total
current liabilities, US$749.66 million in long-term obligations,
US$58.00 million in other liabilities, US$875,000 in deferred
income tax liabilities, and a stockholders' deficit of US$95.43
million.

Sealy carries 'B' local and issuer credit ratings from Standard &
Poor's.


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


ALMATIS BV: Judge Says Herrick Can't Access Confidential Info
-------------------------------------------------------------
Less than two months after a bankruptcy judge approved Almatis
BV's Chapter 11 plan, three junior lenders have lost their bid
before the U.S. Bankruptcy Court for the Southern District of New
York to retain certain confidential materials related to the
valuation of the Company in order to share them with their new co-
counsel, Herrick Feinstein LLP, Bankruptcy Law360 reports.

                        About Almatis Group

Almatis B.V., operationally headquartered in Frankfurt, Germany,
is a global leader in the development, manufacture and supply of
premium specialty alumina products.  With nearly 900 employees
worldwide, the company's products are used in a wide variety of
industries, including steel production, cement production, non-
ferrous metal production, plastics, paper, ceramics, carpet
manufacturing and electronic industries.  Almatis operates nine
production facilities worldwide and serves customers around the
world.  Until 2004, the business was known as the chemical
business of Alcoa.  Almatis is now owned by Dubai International
Capital LLC, the international investment arm of Dubai Holding.

Almatis B.V., and its affiliates filed for Chapter 11 on April 30,
2010 (Bankr. S.D.N.Y. Lead Case No. 10-12308).  Almatis B.V.
estimated assets of US$500 million to US$1 billion and debts of
more than US$1 billion in its petition.

Michael A. Rosenthal, Esq., at Gibson, Dunn & Crutcher LLP, serves
as counsel to the Debtors in the Chapter 11 cases.  Linklaters LLP
is the special English and German counsel and De Brauw Blackstone
Westbroek N.V. is Dutch counsel.  Epiq Bankruptcy Solutions, LLC,
serves as claims and notice agent.

The Debtors' reorganization plan was declared effective on
September 30, 2010, allowing the Debtors to fully complete their
financial restructuring and emerge from Chapter 11 protection.
The Almatis restructuring plan took effect more than a week after
it was confirmed by Bankruptcy Judge Martin Glenn for the
Southern District of New York.


PREPS VEHICLES: Moody's Junks Ratings on Four Classes of Notes
--------------------------------------------------------------
Moody's Investors Service took these rating actions on 18 classes
of notes issued by six PREPS vehicles:

Issuer: European Private Funding I Limited Partnership

  -- EUR220M Senior Notes Bond, Downgraded to Caa3 (sf);
     previously on Oct 14, 2010 Baa2 (sf) Placed Under Review for
     Possible Downgrade

Issuer: PREPS 2004-2 Limited Partnership

  -- EUR393M A1 Bond, Downgraded to Aa3 (sf); previously on Oct
     14, 2010 Aaa (sf) Placed Under Review for Possible Downgrade

  -- EUR75M A2 Bond, Downgraded to Aa3 (sf); previously on Oct 14,
     2010 Aaa (sf) Placed Under Review for Possible Downgrade

  -- EUR46M B1 Bond, Downgraded to B1 (sf); previously on Oct 14,
     2010 Baa3 (sf) Placed Under Review for Possible Downgrade

  -- EUR40M B2 Bond, Downgraded to B1 (sf); previously on Oct 14,
     2010 Baa3 (sf) Placed Under Review for Possible Downgrade

Issuer: PREPS 2005-1 Limited Partnership

  -- EUR175M A1 Notes, Downgraded to Baa3 (sf); previously on Oct
     14, 2010 Aa3 (sf) Placed Under Review for Possible Downgrade

  -- EUR60M A2 Notes, Downgraded to Baa3 (sf); previously on Oct
     14, 2010 Aa3 (sf) Placed Under Review for Possible Downgrade

  -- EUR47M B Notes, Downgraded to Caa3 (sf); previously on Oct
     14, 2010 B1 (sf) Placed Under Review for Possible Downgrade

Issuer: PREPS 2005-2 plc

  -- EUR217M A1 Notes, Downgraded to B2 (sf); previously on Oct
     14, 2010 Ba1 (sf) Placed Under Review for Possible Downgrade

  -- EUR53M A2 Notes, Downgraded to B2 (sf); previously on Oct 14,
     2010 Ba1 (sf) Placed Under Review for Possible Downgrade

  -- EUR41.5M B1 Notes, Confirmed at Caa3 (sf); previously on Oct
     14, 2010 Caa3 (sf) Placed Under Review for Possible Downgrade

  -- EUR12.5M B2 Notes, Confirmed at Caa3 (sf); previously on Oct
     14, 2010 Caa3 (sf) Placed Under Review for Possible Downgrade

Issuer: PREPS 2006-1 plc

  -- EUR238.1M A1 Notes, Downgraded to Ba1 (sf); previously on Aug
     5, 2010 Aa3 (sf) Placed Under Review for Possible Downgrade

  -- EUR0.9M A2 Notes, Downgraded to Ba1 (sf); previously on Aug
     5, 2010 Aa3 (sf) Placed Under Review for Possible Downgrade

  -- EUR40M B1 Notes, Downgraded to Ca (sf); previously on Aug 5,
     2010 B2 (sf) Placed Under Review for Possible Downgrade

  -- EUR9M B2 Notes, Downgraded to Ca (sf); previously on Aug 5,
     2010 B2 (sf) Placed Under Review for Possible Downgrade

Issuer: PREPS 2007-1 plc

  -- EUR186M A1 Notes, Downgraded to Caa1 (sf); previously on Apr
     21, 2010 Downgraded to Ba1 (sf)

  -- EUR35M B1 Notes, Downgraded to Ca (sf); previously on Apr 21,
     2010 Downgraded to Caa3 (sf)

                        Ratings Rationale

The six PREPS transactions are a cash flow CDOs exposed to
portfolios of profit participation agreements ("Genussrechte")
without loss participations and/or subordinated loan agreements.
All assets included in those portfolios are bullet subordinated
loans primarily extended to German small and medium-sized
obligors.  Capital Efficiency Group is acting as a financial
advisor or investment services provider and CorpRec Advisory AG as
recovery manager in Germany, Austria and Switzerland for those six
transactions.

The rating actions are a response to the credit deterioration of
the underlying pools of the six PREPS transactions beyond Moody's
previous assumptions upon last monitoring action.  This
deterioration is illustrated in detail below for each specific
transaction.  Those actions also reflect the anticipated further
deterioration suggested by most recent information available about
each pool obligors as some of them will have to refinance their
debt in the coming months.

In its analysis, Moody's applied standard assumptions applicable
to CLOs rating methodology and deal specific outlook and pool
characteristics.  Under these assumptions, Moody's applied
stresses including an increase in the default probability of each
obligor to reflect cyclical economic stress and future default
expectations based on past pool performance, name specific forward
looking adjustments, and an increased inter-asset correlation
(from 3% to 5%) in order to reflect the borrower concentration in
Germany.  These assumptions reflect Moody's expectations that
default rates for these six pools are likely to remain at elevated
levels despite improvements in the German economy.  In addition,
due to the subordinated position of the loans in the obligors'
capital structure, Moody's assumes a zero recovery rate upon asset
default.

In reaching its ratings decisions, Moody's took into account the
elevated potential for refinancing difficulties likely to be faced
by a substantial number of the weaker obligors over the coming
years to scheduled maturity.  This risk has been assessed
primarily from qualitative information on individual obligors
provided in the latest investor report and by the investment
services provider and recovery manager.

In addition, Moody's notes that the transactions' ability to
generates material excess spread cash flows has been diminished.
This trend is likely to continue as further defaults materialize.
This will limit substantially the ability of transaction to cure
the substantial PDL balances.  Moody's completed its analysis by
further sensitivity runs, including an additional default
probability stress of one notch per obligor and a less
conservative recovery rate scenario where a 70% loss was assumed
on the obligors modeled as defaulted.  Moody's notes as well that
most of the PREPs portfolios show high concentration levels.  In
order to measure the risk associated with low granularity, Moody's
conducted breakeven analyses by computing the number of borrower
defaults that could be sustained before hitting a given class of
notes.  The volatility of the rating outputs in such sensitivity
runs was deemed consistent with the current ratings in light of
the collateralization levels available on the different tranches.

Sources of additional performance uncertainties for the six PREPs
transactions include:

1) Low portfolio granularity: The performance of the portfolio
   depends to a large extent on the credit conditions of a few
   large obligors that are rated non investment grade, especially
   when they experience jump to default. Due to the pool's lack of
   granularity, Moody's supplements its base case scenario with
   individual scenario analysis.

2) Potential for elevated refinancing difficulty regarding the
   subordinated debt instruments in this portfolio, particularly
   among obligors with weaker credit quality.  This risk is more
   pronounced for the transactions scheduled to mature in the next
   two years.

The underlying portfolio of European Private Funding I currently
totals EUR198 million with exposure to 29 obligors as per the
investors report dated 30 September 2010.  The senior classes have
received amortization payments.  The collateral obligations mature
in May 2011 European Private Funding I has EUR15 million uncured
principal deficiencies and EUR39 million of principal deficiencies
have previously been cured.  Principal deficiencies include early
terminations repaid at par.  6% of the initial pool are insolvent
to date and EUR15 million of distressed sales have been reported.
Moody's considers a further 14.1% of assets in the original pool
to be at acute risk of default or likely to experience elevated
difficulties in refinancing the PREPS loans.  In addition, the
weighted average credit quality of the remaining portfolio is
currently at B1.  The credit quality is based on KMV RiskCalc
Credit Estimates notched to Moody's rating scale and further
notching as detailed above to account for Moody's pool specific
outlook.

The underlying portfolio of PREPS 2004-2 currently totals
EUR533 million with exposure to 64 obligors as per the investors
report dated September 10, 2010.  The senior classes have received
amortization payments.  The collateral obligations mature in
December 2011.  PREPS 2004-2 has EUR10 million uncured principal
deficiencies and EUR73 million of principal deficiencies have
previously been cured.  Principal deficiencies include early
terminations repaid at par.  8.6% of the initial pool are
insolvent to date and EUR25 million of distressed sales have been
reported.  Moody's considers a further 4.1% of assets in the
original pool to be at acute risk of default or likely to
experience elevated difficulties in refinancing the PREPS loans.
In addition, the weighted average credit quality of the remaining
portfolio is currently at B1.  The credit quality is based on KMV
RiskCalc Credit Estimates notched to Moody's rating scale and
further notching as detailed above to account for Moody's pool
specific outlook.

The underlying portfolio of PREPS 2005-1 currently totals EUR253
million with exposure to 47 obligors as per the investors report
dated 4 November 2010.  The senior classes have received
amortization payments.  The collateral obligations mature in
August 2012.  PREPS 2005-1 has EUR26 million uncured principal
deficiencies and EUR35 million of principal deficiencies have
previously been cured.  Principal deficiencies include early
terminations repaid at par.  10.2% of the initial pool are
insolvent to date and EUR13 million of distressed sales have been
reported.  Moody's considers a further 9.9% of assets in the
original pool to be at acute risk of default or likely to
experience elevated difficulties in refinancing the PREPS loans.
In addition, the weighted average credit quality of the remaining
portfolio is currently at B2.  The credit quality is based on KMV
RiskCalc Credit Estimates notched to Moody's rating scale and
further notching as detailed above to account for Moody's pool
specific outlook.

The underlying portfolio of PREPS 2005-2 currently totals EUR282
million with exposure to 59 obligors as per the investors report
dated 8 September 2010.  The senior classes have received
amortization payments.  The collateral obligations mature in
December 2012.  PREPS 2005-2 has EUR42 million uncured principal
deficiencies and EUR36 million of principal deficiencies have
previously been cured.  Principal deficiencies include early
terminations repaid at par.  13.1% of the initial pool are
insolvent to date and EUR13 million of distressed exchanges have
been reported.  Moody's considers a further 12% of assets in the
original pool to be at acute risk of default or are likely to
experience elevated difficulties in refinancing the PREPS loans.
In addition, the weighted average credit quality of the remaining
portfolio is currently at B2.  The credit quality is based on KMV
RiskCalc Credit Estimates notched to Moody's rating scale and
further notching as detailed above to account for Moody's pool
specific outlook.

The underlying portfolio of PREPS 2006-1 currently totals EUR265
million with exposure to 58 obligors as per the investors report
dated 18 October 2010.  The senior classes have received
amortization payments.  The collateral obligations mature in July
2013.  PREPS 2006-1 has EUR46 million uncured principal
deficiencies and EUR20 million of principal deficiencies have
previously been cured.  Principal deficiencies include early
terminations repaid at par.  11.2% of the initial pool are
insolvent to date and EUR19 million of distressed sales and
exchanges have been reported.  Moody's considers a further 4.1% of
assets in the original pool to be at acute risk of default or
likely to experience elevated difficulties in refinancing the
PREPS loans.  In addition, the weighted average credit quality of
the remaining portfolio is currently at B1.  The credit quality is
based on KMV RiskCalc Credit Estimates notched to Moody's rating
scale and further notching as detailed above to account for
Moody's pool specific outlook.

The underlying portfolio of PREPS 2007-1 currently totals
EUR189 million with exposure to 48 obligors as per the investors
report dated September 7, 2010.  The senior classes have received
amortization payments.  The collateral obligations mature in March
2014.  PREPS 2007-1 has EUR41 million uncured principal
deficiencies and EUR18 million of principal deficiencies have
previously been cured.  Principal deficiencies include early
terminations repaid at par.  15.3% of the initial pool are
insolvent to date and EUR6 million of distressed sales have been
reported.  Moody's considers a further 8.4% of assets in the
original pool to be at acute risk of default or likely to
experience elevated difficulties in refinancing the PREPS loans.
In addition, the weighted average credit quality of the remaining
portfolio is currently at B2.  The credit quality is based on KMV
RiskCalc Credit Estimates notched to Moody's rating scale and
further notching as detailed above to account for Moody's pool
specific outlook.

Moody's Investors Service did not receive or take into account a
third party due diligence report on the underlying assets or
financial instruments related to the monitoring of this
transaction in the past six months.


SAARGUMMI DEUTSCHLAND: Administrator to Strike Sale Deal Soon
-------------------------------------------------------------
Plasteurope.com reports that provisional insolvency administrator
Jean-Olivier Boghossian intends to hand the Saargummi group over
to a new investor within the next few months.

Plasteurope.com says that in view of the strong interest from
prospective buyers, the administrator sees "good prospects for
restructuring."

According to Plasteurope.com, more than 15 potential investors,
including several competitors, have expressed an interest in the
company including Toyota supplier Toyoda Gosei and Saargummi's
competitors Henniges Automotive and Cooper-Standard Automotive.

Mr. Boghossian has retained PricewaterhouseCoopers to conduct the
sale, Plasteurope.com adds.

As reported in the Troubled Company Reporter-Europe on Nov. 17,
2010, Plasteurope.com said SaarGummi Deutschland, part of
SaarGummi group, filed for insolvency on November 5, 2010.  The
court in Saarbrucken has appointed Udo Groner of law firm Heimes &
Muller and Jean-Olivier Boghossian of specialist insolvency
lawyers Schultze & Braun to act as provisional insolvency
administrators.  The holding company, SaarGummi Technologies, and
its other sites and subsidiaries are not yet affected.  The
management cited the failure of its longstanding efforts to
restructure the company as the reason for the insolvency.

                          About SaarGummi Group

Germany-based SaarGummi Group produces EPDM and TPE sealing
profiles and mouldings for the automotive industry.  The group has
3,300 employees, 850 of whom work at its largest site in
Buschfeld.  Its principal customers are VW (25%), Daimler (21%)
and BMW (19%).


WILHELM KARMANN: VW to Take Over Technical Development Unit
-----------------------------------------------------------
Volkswagen AG will take over Wilhelm Karmann GmbH's technical
development unit, preserving almost 300 of 427 jobs at the
Osnabrueck site, from Dec. 1, Angela Cullen at Bloomberg News
reports, citing Karmann's insolvency administrator Ottmar Hermann.

As reported by the Troubled Company Reporter-Europe, Karmann filed
for bankruptcy protection in April 2009 as the worst slump in
automotive markets for decades left the manufacturer unable to pay
workers.

Headquartered in Osnabrueck, Wilhelm Karmann GmbH --
http://www.karmann.com/-- is a car parts supplier.


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


ANGLO IRISH: Secures Costs Orders Against Ex-Chief's Wife
---------------------------------------------------------
Vivion Kilfeather at The Irish Examiner reports that Anglo Irish
Bank has secured costs orders against Lorraine Drumm, wife of its
former chief executive David Drumm, arising from the effective
settlement of proceedings against her over the transfer of the
Drumm's former family home in Malahide, Co Dublin, into her sole
ownership.

The Irish Examiner relates the costs orders were made by Mr.
Justice Peter Kelly at the Commercial Court on Tuesday on the
application of Paul Sreenan, who is representing Anglo, with the
consent of Gary McCarthy, for Ms. Drumm, who is living in the US
with her husband and family.  The judge also placed a stay on the
costs orders for seven days, The Irish Examiner discloses.

According to The Irish Examiner, Mr. Sreenan asked Tuesday,
pending the outcome of the High Court decision, to continue for
another two weeks an injunction granted to the bank last month
restraining Ms. Drumm from certain dealings in relation to the
former family home at Abington.  The judge did so, The Irish
Examiner states.  In the circumstances, Mr. Justice Kelly again
deferred decisions on whether and how the action by Anglo against
Mr. Drumm over unpaid loans of EUR8 million may proceed in the
Irish courts, The Irish Times says.

The Irish Times notes Anglo, in its proceedings against David and
Lorraine Drumm over the Abington transfer, had claimed the
May 2009 transfer was "a fraud on creditors" of Mr Drumm while the
couple insisted it was for "taxation reasons".

As reported by the Troubled Company Reporter-Europe on Oct. 19,
2010, Bloomberg News said Mr. Drumm filed for bankruptcy, months
after the bank sought repayment of loans from him.  Bloomberg
disclosed Mr. Drumm, who resigned from the Dublin-based bank in
December 2008, listed assets and liabilities at US$1 million to
US$10 million on Oct. 14 in U.S. Bankruptcy Court in Boston.
Anglo Irish Bank's lawyers told a court in Dublin in December that
the bank is seeking repayment of loans valued at about EUR8
million (US$11.3 million) from Mr. Drumm, according to Bloomberg.
His liabilities are primarily business debts, Bloomberg said,
citing the Oct. 14 filing under Chapter 7 of the U.S. Bankruptcy
Code.

                      About Anglo Irish Bank

Anglo Irish Bank Corp PLC -- http://www.angloirishbank.com/--
operates in three core areas: business lending, treasury and
private banking.  The Bank's non-retail business is made up of
more than 11,000 commercial depositors spanning commercial
entities, charities, public sector bodies, pension funds, credit
unions and other non-bank financial institutions.  The Company's
retail deposits comprise demand, notice and fixed term deposit
accounts from personal savers with maturities of up to two years.
Non-retail deposits are sourced from commercial entities,
charities, public sector bodies, pension funds, credit unions and
other non-bank financial institutions.  In addition, at Sept. 30,
2008, its non-retail deposits included deposits from Irish
Life Assurance plc.  The Private Bank offers tailored products and
solutions for high net worth clients and operates the Bank's
lending business in Ireland and the United Kingdom.

                         *     *     *

As reported by the Troubled Company Reporter-Europe on Oct. 29,
2010, 2010, Standard & Poor's Ratings Services lowered its rating
on Anglo Irish Bank Corp. Ltd.'s nondeferrable dated subordinated
debt (lower Tier 2) securities to 'D' from 'CCC'.  The downgrade
of the lower Tier 2 debt rating reflects S&P's opinion that the
bank's exchange offer is a "distressed exchange" and tantamount to
default in accordance with its criteria.


ARLO VIII: S&P Withdraws 'B+ (sf)' Ratings on Series 2007 Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its 'B+ (sf)' credit
ratings on Arlo VIII Ltd.'s EUR100 million credit-linked notes
series 2007 (Weibull CDO-A) and EUR50 million credit-linked notes
series 2007 (Weibull CDO-B).  Subsequently, S&P assigned 'B+srp
(sf)' portfolio swap risk ratings to these swaps.

A swap risk rating takes into consideration only the
creditworthiness of the reference portfolio.  It does not address
either counterparty risk (protection buyer/seller) or the specific
amount of termination payments that would be payable under the
swap transaction.

The swap risk ratings assigned are the result of the restructuring
of the special-purpose entity notes into an unfunded format.  The
noteholder has agreed to surrender the notes to the issuer for
redemption.  The swaps between the swap counterparty (Barclays
Bank PLC) and the issuer have been novated to the noteholder,
NRW.Bank (the new protection seller).

The transactions will be renamed to these:

* Credit Default Swap EUR100 Million Unfunded Swap Risk Rating
  (Weibull CDO 2-A).

* Credit Default Swap EUR50 Million Unfunded Swap Risk Rating
  (Weibull CDO 2-B).

There has been no amendment to the underlying reference portfolio
or attachment points.  In S&P's opinion, the attachment points are
sufficient to support a 'B+srp (sf)' rating.  The synthetic rated
overcollateralization level achieved at the 'B+' rating level is
100.3677%.

S&P based its 'srp' ratings on its analysis using the latest
applicable CDO Evaluator model version 5.1.


SUPPLIERFORCE: Enters Into Voluntary Liquidation
------------------------------------------------
Spend Matters reports that Supplierforce has entered voluntary
liquidation.

Supplierforce's founder and CEO Declan Kearney told Spend Matters
that the funding of Supplierforce "has been impacted by the
economic issues of the past year."

Spend Matters relates Mr. Kearney said this leaves Supplierforce
in a situation where "the liquidator will now sell the business as
a going concern, that sale to include the Intellectual Property of
the business and customer base."

Mr. Kearney told Spend Matters that "there is strong commitment to
the business from stakeholders (staff, creditors and
shareholders)" and that "a number of parties have expressed strong
interest in acquiring the business" over a process which will take
3 to 4 weeks to complete.  Other interested parties should reach
out to Supplierforce immediately to be included in the process,
Spend Matters relates.

Supplierforce is a Dublin-based supplier information management
provider.


XELO PLC: S&P Downgrades Rating on Secured Notes to 'CC (sf)'
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit rating to
'CC (sf)' from 'CCC- (sf)' on Xelo PLC's EUR140 million secured
limited-recourse credit-linked notes series 2007 (Ferras CDO).
S&P then withdrew the rating at the issuer's request.

The downgrade to 'CC (sf)' follows S&P's view that losses from
credit events in the underlying portfolio have exceeded the
available credit enhancement.  This means that, at maturity, S&P
believes the noteholders will not receive full principal.

S&P subsequently withdrew the rating at the issuer's request.


ZOO IV: Partial Buy-Back Won't Affect Ratings on Various Notes
--------------------------------------------------------------
Fitch Ratings says that the recently proposed partial buy-back of
Zoo IV ABS Plc class A1-B notes will not in itself impact the
ratings of the notes:

  -- EUR150,000,000 class A1-A: 'BBBsf'; Outlook Negative; Loss
     Severity (LS) Rating 'LS2'

  -- EUR115,700,000 class A1-B: 'BBBsf'; Outlook Negative; LS
     Rating 'LS2'

  -- EUR100,000,000 class A1-R: 'BBBsf'; Outlook Negative; LS
     Rating 'LS2'

  -- EUR20m class A2: 'BBsf'; Outlook Negative; LS Rating 'LS5'

  -- EUR30m class B: 'Bsf'; Outlook Negative; LS Rating 'LS4'

  -- EUR35 class C: 'CCsf'; Recover Rating 'RR5'

  -- EUR28 class D: 'Csf'; Recovery Rating 'RR6'

  -- EUR8.5m class E: 'Csf'; Recovery Rating 'RR6'

  -- EUR20m class F: Not rated

  -- EUR7,137,215.85 combo class P: 'CCsf'; Recovery Rating 'RR5'

The partial buy-back of class A1-B notes was passed by an
extraordinary resolution, which approved that the funds used for
the buy-back will be applied exclusively to the class A1-B notes,
and will not be applied towards pro-rata redemption of the class
A1-A, A1-B and A1-R notes.

The proposed buyback of EUR10.5m of the class A1-B notes will be
undertaken at a discounted purchase price.  The repurchased notes
will subsequently be cancelled, thereby marginally increasing the
available credit enhancement to all rated notes.


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


SEAT PAGINE: Moody's Junks Corporate Family Rating From 'B2'
------------------------------------------------------------
Moody's Investors Service has downgraded to Caa1 from B2 the
corporate family rating of SEAT Pagine Gialle SpA.  Concurrently
Moody's has downgraded to B3 from B1 the rating on SEAT's EUR550
million senior secured notes due in 2017 and to Caa2 from Caa1 the
rating of its EUR1.3 billion 8% senior notes due 2014, issued by
Lighthouse International Company SA.  The Outlook on the ratings
is negative.

                        Ratings Rationale

The two-notch CFR downgrade to Caa1 reflects Moody's view of (i)
the challenges that the industry faces stemming from a continued
structural decline in the print-directory segment; (ii) the
challenges SEAT faces in its efforts to curb the resulting
negative pressure on its revenues and EBITDA from a loss in
customers, by shifting its business model towards local on-line
advertising and marketing services in Italy; (iii) a highly
leveraged capital structure, with a debt/EBITDA ratio of around
6.0x; (iv) the refinancing risk that arises from the need to repay
debt falling due from 2012 under the senior credit facilities and
the associated high funding costs and; (v) potential liquidity
pressures arising from the need to fund part or all of the
receivables under SEAT's asset-backed securitization program,
which will be terminated in June 2011.

In the nine months of September 2010, SEAT reported an
acceleration in the decline in revenues from the print advertising
segment when compared to 2009, to over 20% while at the same time
a strong acceleration in the growth from on-line advertising
revenues to over 50%, notably thanks to its aggressive sales
strategy of multimedia packages at lower price entry points.
Italian core revenues declined by 5.9% in the period.

SEAT's strategy focuses on: (i) stabilizing its declining customer
base; (ii) bringing innovative services to market; (iii)
continuing to pursue cost-cutting measures; and (iv) implementing
working capital optimization in order to preserve cash flows.
Moody's understands that SEAT's commercial strategy may have to be
achieved at the expense of a lower ARPA (average revenue per
advertiser) as the company intends to increase penetration of
local on-line advertising and marketing services, by enhancing the
range of price-entry points.  Once SEAT's customer base
stabilizes, the company will benefit from better scope to market
additional products and services and build growth in the business.

Whilst Moody's recognizes the merits in SEAT's business strategy,
the rating agency believes that: (i) it entails execution risk,
particularly given the significantly higher degree of competition
and still relatively low market share of SEAT in the local on-line
marketing business; and (ii) could take some time to translate
into revenue and EBITDA growth.  In Moody's view there is still
limited visibility with regards to the evolution of the markets in
which SEAT operates and the company's ultimate competitive
position in the on-line segment.

Moody's expects SEAT's leverage to remain high at the end of 2010,
reflected by a debt/EBITDA ratio around 6.0x.  Moreover, in the
rating agency's view, the potential for de-leveraging over 2011 is
limited.  Given the need for SEAT to repay significant amounts of
debt from 2012 onwards, Moody's understands that the company will
have to undertake major refinancing steps which might come at a
cost, potentially further weighing on the company's limited free
cash flow generation capacity.  The ratings of SEAT reflect the
possibility that, over the medium term, the company may need to
revise its capital structure such that it is more sustainable, in
the context of the trends and challenges the business currently
faces.

The negative outlook on SEAT's ratings reflects the ongoing
pressure on the company's business and liquidity profiles.

Moody's would consider a further downgrade of the ratings if: (i)
SEAT were to experience continued pressure on its revenue, EBITDA
and free cash flow generation; (ii) the company's liquidity were
to become clearly impaired, potentially arising from the need to
fund working capital requirements as a result of the termination
of its securitization program; or (iii) there were clearer signs
that SEAT were unable to avoid a restructuring of its current
capital structure, which would lead to losses for the company's
creditors.  A downgrade of the ratings could also occur if the
company does not de-leverage over the next 12-18 months such that
its debt/EBITDA ratio is 5.5x or below.

In Moody's view, a positive rating action is currently unlikely.
However, to achieve positive rating pressure over the longer term,
SEAT would need to successfully turn around the business and
address its significant refinancing needs from 2011 onwards.

Moody's assigned SEAT's ratings by evaluating factors that the
rating agency believes are relevant to the credit profile of the
issuer, such as: (i) the business risk and competitive position of
SEAT; (ii) the capital structure and financial risk profile of the
company; (iii) the projected performance of the company over the
short to medium term; and (iv) management's track record and
tolerance for risk.  Having compared SEAT's attributes with those
of other issuers both within and outside of its core industry,
Moody's believes the company's ratings to be comparable to those
of other issuers of similar credit risk.

Moody's previous rating action on SEAT was implemented on
January 18, 2010, when the rating agency assigned a provisional
(P)B1 rating to the proposed senior secured notes, due in 2017.

Headquartered in Turin, Italy, SEAT is the leading publisher and
provider of directory services in Italy and, through its wholly-
owned subsidiary, TDL, is the number three directories publisher
in the UK.  SEAT also has a presence in Germany through Telegate,
the second-largest player in the German directory-assistance
market.


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


LYONDELLBASELL INDUSTRIES: Moody's Lifts Corp. Rating to 'Ba3'
--------------------------------------------------------------
Moody's Investors Service has upgraded the Corporate Family Rating
of LyondellBasell Industries N.V. to Ba3 from B1 following the
company's recent announcement that it plans to repay approximately
US$775 million of debt prior to year-end.  Moody's also raised
LYB's Speculative Grade Liquidity Rating to SGL-1 from SGL-2 given
the large increase in its cash balance in the third quarter.  The
rating outlook is positive.

Moody's also raised LYB's guaranteed senior secured first lien
term loan and notes to Ba2 from Ba3, its guaranteed senior secured
third lien notes to B2 from B3.

                        Ratings Rationale

"LyondellBasell has substantially outperformed Moody's
expectations over the last two quarters, which has greatly
improved their financial flexibility; this should allow management
to maintain very conservative financial metrics over the next year
or two, at a minimum," stated John Rogers Senior Vice President at
Moody's.

LyondellBasell's Ba3 CFR reflects its limited operating history
post-bankruptcy, lack of an independent board of directors and the
disproportionate control afforded to three shareholders at the
current time.  Moody's also believes that the company will need to
rationalize additional capacity in Europe and maintain capex at
elevated levels to improve the performance and reliability of all
of its facilities.  The ratings upgrade also reflects the
expectation that LYB will address some of its governance issues at
its shareholders meeting in the second quarter of 2011.

The company's large size, significant vertical integration,
operational diversity, leading market positions in key commodities
and a management team with a track record of conservative
financial management in the petrochemical industry are likely to
provide upside to the rating over time.  Management has stated
that it is seeking to achieve an investment grade rating and
Moody's noted that LYB has an investment grade Business Profile
according to Moody's Chemicals Industry Methodology.  However, due
to LYB's limited operating history, aforementioned governance
issues and secured debt structure, this is unlikely over the near
term.

The positive outlook reflects Moody's assumption that LYB will
address its governance issues at its first public shareholders
meeting next spring.  To the extent that the company can establish
an independent board and dilute the influence of minority
shareholders that have disproportionate board representation,
Moody's would likely raise the company's CFR to Ba2.  This
potential upgrade assumes that management policies and industry
conditions remain supportive of the higher rating.  Further
upgrades to the rating are possible once the company is further
along in addressing its operating issues and has developed a
viable plan to refinance its secured capital structure.

U.S. feedstock prices are likely to continue to have a positive
impact on LYB's financial performance over the next several years.
As U.S. exploration and production companies focus their drilling
on wet gas or natural gas liquids and mid-stream companies build
more pipelines and fractionation capacity.  Moody's expects the
price of ethane relative to natural gas prices to decline over the
next two years as new fractionation capacity is brought online and
pipeline projects are completed.  Ethane currently trades at a 70-
90% premium to natural gas.  Moody's expects that the ethane
premium in the U.S. will fall back below 50% by 2012 as increased
ethane supplies outstrip demand.  The decline in U.S. feedstocks
is expected to allow the company to maintain solid margins in the
U.S. olefins business despite additional pressure on international
polyolefin pricing in 2011.  The combination of good margins in
U.S. olefins and stable refining margins should allow LYB to
generate a meaningful level of free cash flow in 2011 despite
elevated capex and moderate increases in oil prices.

The upgrade of the speculative grade liquidity rating to SGL-1
reflects the company's large cash balance as of the end of the
third quarter, the expectation that LYB will generate strong
earnings and additional cash in the fourth quarter, very limited
use of the ABL revolver and no covenants (the ABL expires in 2014
and currently has no covenants unless availability falls below
US$300 million; in April 2012 the threshold rises to US$400
million).

Ratings upgraded:

LyondellBasell Industries N.V. (Guarantor of the rated debt)

  -- Corporate Family Rating to Ba3 from B1
  -- Probability of Default Rating to Ba3 from B1
  -- Speculative Grade Liquidity Rating to SGL-1 from SGL-2

Lyondell Chemical Company

  -- Guaranteed Senior Secured 1st lien term loan due 2016 to
     Ba2(LGD 3/37%) from Ba3 (LGD 3/37%)

  -- Guaranteed Senior Secured 1st lien notes due 2017 to Ba2(LGD
     3/37%) from Ba3 (LGD 3/37%)

  -- Guaranteed Senior Secured 3rd lien notes due 2018 B2(LGD
     5/81%) from B3 (LGD 5/88%)

LyondellBasell Industries N.V. is one of the world's largest
independent petrochemicals companies.  LYB is a leading
manufacturer of olefins, polyolefins, propylene oxide and related
derivatives; it also has a large global licensing and catalyst
business (primarily related to polyolefins production
technologies).  LYB also has two refineries with a total capacity
of over 370 thousand barrels per day.  LYB had revenues of roughly
US$39 billion for the last four quarters ending September 30,
2010.


ROYAL INVEST: Posts US$1.6 Million Net Loss in Sept. 30 Quarter
---------------------------------------------------------------
Royal Invest International Corp. filed its quarterly report on
Form 10-Q, reporting a net loss of US$1.6 million on US$1.7
million of revenue for the three months ended September 30, 2010,
compared with a net loss of US$1.2 million on US$2.9 million of
revenue for the same period of 2009.

The Company has incurred a net loss of US$6.4 million for the nine
months ended September 30, 2010, has an accumulated deficit of
US$71.5 million at September 30, 2010, and is in default of its
mortgage payable and related debt covenants at September 30, 2010.

The Company's balance sheet as of September 30, 2010, showed
US$85.6 million in total assets, US$144.9 million in total
liabilities, and a stockholders' deficit of US$59.3 million.

As reported in the Troubled Company Reporter on April 21, 2010,
Meyler & Company, LLC, in Middletown, N.J., expressed substantial
doubt about the Company's ability to continue as a going concern.
The independent auditors noted that the Company had a net loss of
US$44.0 million for the year ended December 31, 2009, an
accumulated deficit of US$65.1 million at December 31, 2009, is in
default of one of the mortgages payable and related debt covenants
at December 31, 2009, and there are existing uncertain conditions
which the Company faces relative to its obtaining financing and
capital in the equity markets.

A full-text copy of the Form 10-Q is available for free at:

               http://researcharchives.com/t/s?701e

Shelton, Conn.-based Royal Invest International Corp. (OTC BB:
RIIC) -- http://www.royalinvestinternational.com/ -- owns,
operates and manages real estate, in Europe.  At September 30,
2010, the Company owned 17 properties located in the Netherlands.
The properties aggregate approximately 77,594 square meters
(approximately 835,215 square feet), which are comprised of office
buildings and business centers.  Effective June 30, 2010, the
Company sold its majority ownership in Royal Invest Germany
Properties 1 B.V. ("RIGP1"), a wholly-owned subsidiary which owned
the Company's sole property in Germany.


===============
P O R T U G A L
===============


* PORTUGAL: May Seek Emergency Loan, Citigroup Predicts
-------------------------------------------------------
Portugal is "insolvent" and will probably need soon to join the
emergency-loan program from the European Union and the
International Monetary Fund that's available to Greece and
Ireland, Krystof Chamonikolas at Bloomberg News reports, citing
Willem Buiter, Citigroup Inc.'s chief economist.

"The market's attention is likely to turn to Portugal's
sovereign, which at current levels of interest rates and growth
rates is less dramatically but quietly insolvent," Mr. Buiter
wrote in a report dated Nov. 29, according to Bloomberg.  "We
consider it likely that it will need to access the European
Financial Stability Facility soon."

Bloomberg relates the euro weakened for a third day, on concern
that the region's debt crisis is deepening.  Portugal's government
bonds fell and the cost of insuring the country's debt against
non-payment with credit-default swaps rose 17 basis points to an
all-time high of 557 basis points, Bloomberg says, citing CMA
data.


* PORTUGAL: Banks Face "Intolerable Risk", Central Bank Says
------------------------------------------------------------
Emma Rowley at The Daily Telegraph reports that Portugal's central
bank has given warning that the country's banking sector faces
"intolerable" risk unless its government implements planned
austerity measures.

Failure to consolidate the public finances will put the country's
banks in danger, the Bank of Portugal said in a report, which
followed Prime Minister Jose Socrates last week pushing through an
austerity budget, according to The Daily Telegraph.

The Daily Telegraph notes ratings agencies have downgraded
Portugal's sovereign debt, leaving its banks shut out from market
funding and reliant on the European Central Bank (ECB) for their
borrowing needs.

The Daily Telegraph relates the banks must address this
dependency, the central bank said, as "large-scale and permanent
use of financing from the Eurosystem is unsustainable".


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


GAZPROMBANK JSC: Moody's Gives Positive Outlook on 'E+' Rating
--------------------------------------------------------------
Moody's Investors Service has changed to positive from stable the
outlook on the E+ bank financial strength rating of Gazprombank,
and raised its Baseline Credit Assessment to B1 from B2.  Long-
term local and foreign currency debt and deposit ratings of Baa3
were affirmed with a stable outlook, and short-term foreign
currency bank deposit rating of Prime-3 was also affirmed.
Concurrently, Moody's Interfax Rating Agency (which is majority
owned by Moody's) has affirmed Gazprombank's long-term National
Scale Rating of Aaa.ru.  The NSR carries no specific outlook.

                        Ratings Rationale

Moody's said that change of outlook to positive reflects the
improved capital position of Gazprombank which restored its Tier 1
and Total capital ratios to 9.6% and 14.8%, respectively, at year-
end 2009 (year-end 2008: 7.8% and 9.2%) according to audited IFRS
financial statements.  In H1 2010, the capital ratios improved
further (Tier 1: 10.8%; Total: 16.6%) thanks to strong recurring
income as well as reversal of former accounting losses on
derivatives transactions incurred in 2008.

The change of outlook and the upward adjustment of the BCA to B1
also take into account significant improvements in Gazprombank's
standalone risk profile as a result of decreased appetite for
market risks whereby derivatives transactions are significantly
restricted, as well as the stricter limits of speculative
operations on securities markets -- although Moody's cautions that
the track record of operating under the lowered market risk
appetite is still limited.  Furthermore, the bank's funding
profile has improved significantly following substitution of
substantial Central Bank of Russia funding with customer deposits.

Moody's also observes that Gazprombank's asset quality remained
better-than-average for the banking system, with NPLs accounting
for only 3.3% of the total loan portfolio at end-H1 2010 -- much
better than system average -- thanks to (i) lower involvement in
lending to higher-risk segments (e.g. construction and real
estate), (ii) the dominance of large corporates in the corporate
loan book and (iii) the significant presence of employees of
corporate customers in the retail portfolio.

According to Moody's, in order for the positive outlook to
translate into upgrade of the bank's BFSR, Gazprombank's total
capitalization and quality of capital should improve on a
consistent basis, as a result of: (i) continuing strong income
generation and (ii) improvement in asset quality as reflected in
decrease in provisions.  The positive outlook also incorporates
Moody's expectations of an improved track record of capital
management and the bank's ability to maintain adequate capital
positions against unexpected losses from credit and market risks.
Sustainability of reduced market risk appetite -- with no
significant rise in credit risks and evidence of improvement in
asset quality -- is also likely to lead to an upgrade of
Gazprombank's BFSR to the D- level.

Concurrently, Moody's has also reconsidered support positions from
Gazprombank's parent, state-controlled energy conglomerate
Gazprom, to "moderate" from "very high".  Such considerations
reflect Moody's view that Gazprom's ability to provide ongoing
Tier 1 equity is reduced as it needs resources to develop its
primary investment projects.  Although shareholders provided RUB40
billion (US$1.3 billion) of Tier 2 equity during Q4 2008-2009, the
Tier 1 equity requirement was covered only via internal capital
generation, and support from Gazprom was not correspondent to the
needs of Gazprombank whereby, during this perod, the state had to
step in as a first layer of support.

At the same time, Gazprombank is the main settlement centre of
Gazprom group (servicing over 90% of all group cash flows) and the
holder of salary accounts of Gazprom group employees (with branch
networks in the locations where Gazprom's operations are present).
Therefore, Moody's observes potential for extraordinary support
(if state support is absent) remains, as was reflected in the Tier
2 capital contribution and over 50% increase in balances to the
bank compared to pre-crisis levels.

Moody's notes that the outlook on Gazprombank's long-term ratings
is stable because positive pressure on the bank's BFSR will not be
sufficient to drive the long-term rating upwards.

The previous rating action on Gazprombank was on September 21,
2009, when Moody's downgraded these ratings: bank financial
strength rating to E+ from D-, long-term foreign and local
currency deposit and debt ratings to Baa3 from Baa2, as well as
the short-term foreign currency bank deposit rating to Prime-3
from Prime-2.

Headquartered in Moscow, Russian Federation, Gazprombank -- the
country's third-largest bank -- reported total assets of
US$56.0 billion, equity of US$7.3 billion and profit of US$1.1
billion under (unaudited) IFRS at end-H1 2010.  The parent,
Gazprom, is a monopoly in the natural resources sector, controlled
by the government of Russia.  Gazprombank is the main settlement
vehicle within Gazprom Group, and handles over 90% of the group's
settlements.  In addition, the bank actively participates in
Gazprom's investment projects, and a large share of its deposits
(ca.  20% at end-H1 2010) is related to the group.  Gazprombank is
an important payroll agent for the group, and its branch network
is in suitable locations in order to best conduct these
operations.


SURGUTNEFTEGASBANK JSC: S&P Cuts Counterparty Credit Rating to B
----------------------------------------------------------------
On Nov. 29, 2010, Standard & Poor's Ratings Services lowered its
long-term counterparty credit ratings on Russia-based
Surgutneftegasbank to 'B' from 'B+' while affirming the 'B' short-
term ratings.  The outlook is stable.  S&P then withdrew the
ratings at the bank's request.  The bank had no outstanding rated
debt at the time of the rating withdrawal.

The downgrade reflects a sharp deterioration in
Surgutneftegasbank's asset quality in 2009 and 2010 that was much
greater than S&P previously expected.  The need for new
provisioning constricts the bank's profitability and places heavy
downward pressure on its capitalization.

Surgutneftegasbank's nonperforming loans under International
Financial Reporting Standards (overdue by more than 90 days)
reached 32% of its total loan portfolio on Dec. 31, 2009 and its
asset quality remained poor in 2010.  Despite an increase in
reserve coverage, nonperforming loans remain a major negative
factor impacting the bank's stand-alone credit profile, pressuring
its profitability and capital.  The bank reported losses of about
RUB260.8 million (US$8.62 million) for 2009 and is likely to
report losses in 2010 due to continuing need for new provisions in
2010.  S&P believes that this will place further downward pressure
on the bank's capitalization.


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


TDA FTPYME: Moody's Assigns 'B2 (sf)' Rating to Series B Notes
--------------------------------------------------------------
Moody's Investors Service has assigned definitive ratings to three
classes of Notes issued by TDA FTPYME Pastor 9, FTA:

  -- EUR62.5 M Series A1 Note, Assigned Aaa (sf)
  -- EUR250.0 M Series A2(G) Note, Assigned Aaa (sf)
  -- EUR127.5 M Series B Note, Assigned B2 (sf)

                        Ratings Rationale

TDA FTPYME Pastor 9, FTA is a securitization of loans granted to
self-employed and small- and medium-sized enterprise by Banco
Pastor (A3/P-2).  The securitization is done under the FTPYME
program following the Spanish Ministry of Economy's allocation of
a new guarantee budget for such transactions for the current year.

The portfolio will be serviced by Banco Pastor.  The provisional
pool of underlying assets was, as of October 2010, composed of a
portfolio of 3,782 contracts granted to obligors located in Spain.
The loans were originated between 2005 and 2010, with a weighted
average seasoning of 1.3 years and a weighted average remaining
life of 9.74 years.  Around 49% of the outstanding of the
portfolio is secured by first-lien mortgage guarantees over
different types of properties.  Geographically, the pool is
concentrated mostly in Galicia (23.6%), Madrid (13.7%) and in
Catalonia (13.2%).

According to Moody's, this deal benefits from several credit
strengths.  (i) Series A2(G) benefits from the guarantee of the
Kingdom of Spain for interest and principal payments.
Nevertheless, the expected loss associated with Series A2(G) notes
is consistent with a Aaa (sf) rating regardless of the Spanish
Treasury guarantees A2(G), (ii) a total credit enhancement,
including the reserve fund, over series A1 and A2(G) of 44.78%;
(iii) an upfront-funded reserve fund of EUR69.5 million.  However,
Moody's notes that the transaction features a number of credit
weaknesses, including: (a) a concentration of around 29% in the
Construction and Building according to Moody's industry
classification; (b) exposure to basis and interest rate risk given
the absence of an interest rate hedging agreement.  These
characteristics were reflected in Moody's analysis and provisional
ratings, where several simulations tested the available credit
enhancement and 15.80% reserve fund to cover potential shortfalls
in interest or principal envisioned in the transaction structure.

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

Moody's analysis focused primarily on (i) an evaluation of the
underlying portfolio of loans; (ii) historical performance
information and other statistical information; (iii) the credit
enhancement provided by the pool spread, the cash reserve and the
subordination of the notes.

Moody's assumed a mean default rate of 23.44% with a coefficient
of variation of 33.76% and a stochastic mean recovery rate of 50%
as the main input parameters for Moody's cash-flow model ABSROM.

The ratings address the expected loss posed to investors by the
legal final maturity of the notes (July 2053).  In Moody's
opinion, the structure allows for timely payment of interest and
ultimate payment of principal on Series A1, A2(G) and B at par on
or before the rated final legal maturity date.  Moody's ratings
address only the credit risks associated with the transaction.
Other non-credit risks have not been addressed, but may have a
significant effect on yield to investors.

The V Score for this transaction is Medium/High same as the
Medium/High score assigned for the Spanish ABS sector.  The
breakdown for this transaction indicates a lower score in
"Transaction Complexitey" as the absence of a swap in the
structure increases the analytical complexity of the transaction
where both basis and interest rate risks need to be taken into
account.

Moody's also ran sensitivities around key parameters for the rated
notes.  For instance, if the assumed default probability of 23.44%
used in determining the initial rating was changed to 34.9% and
the recovery rate of 50% was changed to 30%, the model-indicated
rating for the Series A1 Notes would remain Aaa, while the Series
A2(G) and Series B model indicated ratings would change from Aaa
to Baa1 and from B2 to Caa3, respectively.  The sensitivity for
Series A2(G) does not take into consideration the benefit from the
Spanish government guarantee.


* SPAIN: Banks May Struggle to Refinance EUR85BB Debt Next Year
---------------------------------------------------------------
Charles Penty and Gavin Finch at Bloomberg News report that
Spain's banks may struggle to refinance about EUR85 billion
(US$111 billion) in debt next year as costs surge on concern
continental Europe's fourth-biggest economy may need an Irish-
style bailout.

"There's a universal dumping of Spain going on," said Andrea
Williams, who helps manage about 623 million pounds (US$968
million), including shares in Banco Santander SA, at Royal London
Asset Management, according to Bloomberg.  "The fear is that
Portugal, Spain and Italy are now in line after what happened in
Ireland."

Bloomberg says anxiety over Spain's ability to bring down the
euro-region's third-highest budget deficit after Europe handed
Ireland an EUR85 billion aid package has driven up financing costs
for the country's lenders already battered by rising bad loans and
falling revenue.

As the cost of insuring the country's debt against default rose to
its highest level, Spanish lenders now pay the biggest premium
ever on their debt relative to other banks in Europe, Bloomberg
notes.

The risk for Europe is that Spain's economy is twice as big as
that of Greece, Ireland and Portugal combined, meaning the euro
region's EUR750 billion bailout fund may not be big enough if the
country resorts to aid, Bloomberg states.

The European Central Bank may have to step up purchases of Spanish
government bonds and backstop its banking system if the country
runs into financing difficulties, Willem Buiter, Citigroup Inc.'s
chief economist, said in a note to investors on Monday, according
to Bloomberg.  "Once Spain needs assistance, the support of the
ECB will be critical," Mr. Buiter wrote.

                           Savings Banks

Investor concerns are most likely to focus on the needs of Spain's
savings banks, Daragh Quinn, an analyst at Nomura International in
Madrid, as cited by Bloomberg, said.

Savings banks, immersed in a restructuring process that will see
their number shrink by almost two-thirds as the central bank
coaxes them into cost-saving mergers, have about EUR30 billion of
debt coming due next year, according to Bloomberg data.

Spanish banks had loans from the ECB of EUR67.9 billion in
October, a 30% drop from the previous month, Bloomberg discloses.
Spanish ECB loans as a proportion of banking assets stand at about
2%, compared with about 7.8% for Ireland, Bloomberg notes.

                       Investors' Mistrust

Meanwhile, Aaron Kirchfeld at Bloomberg News reports Deutsche Bank
AG Chief Executive Officer Josef Ackermann said investors'
mistrust of Spain is unjustified and problems in the banking
industry are "manageable."

The fundamental economic data "in no way justifies the apparent
mistrust that exists in the case of Spain, though not only there,"
Mr. Ackermann, who also heads the Institute of International
Finance, a global industry group with more than 400 members, said
Monday n response to a request by Bloomberg News.  "Spain can deal
with its problems by itself."

Bloomberg relates Spanish and Italian government bonds fell on
Monday, driving the extra yield investors demand to hold the
securities instead of German bunds to euro-era records.


=====================
S W I T Z E R L A N D
=====================


SES SOLAR: Reports US$1.1 Million Net Income in Sept. 30 Quarter
----------------------------------------------------------------
SES Solar Inc. filed its quarterly report on Form 10-Q, reporting
net income of US$1.1 million on US$4.1 million of revenue for the
three months ended September 30, 2010, compared with a net loss of
US$120,799 on US$38,046 of revenue for the same period of 2009.

"The change to net income for the three months ended September 30,
2010 from a net loss for the three months ended September 30,
2009, is mainly attributable to a reduction of the operating
expenses," the Company said in the filing.

The Company's balance sheet as of June 30, 2010, showed
US$19.7 million in total assets, US$16.7 million in total
liabilities, and stockholders' equity of US$3.0 million.

As reported in the Troubled Company Reporter on April 21, 2010,
BDO Ltd., in Zurich, Switzerland, expressed substantial doubt
about SES Solar Inc.'s ability to continue as a going concern,
following the Company's 2009 results.  The independent auditors
noted that the Company has suffered recurring losses from
operations.

A full-text copy of the Form 10-Q is available for free at:

               http://researcharchives.com/t/s?701d

Based in Geneva, Switzerland, SES Solar Inc. is a Delaware
corporation engaged in the business of designing, engineering,
producing and installing solar panels or modules and solar tiles
for generating electricity.  The Company conducts its operations
through two wholly owned subsidiaries, SES Prod. S.A. and SES
Societe d'Energie Solaire S.A.  The Company's shares are quoted
on the OTC Bulletin Board under the symbol "SESI.OB".


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


HURST HOUSE: Goes Into Administration for Second Time
-----------------------------------------------------
Janet Harmer at Cateresearch reports that the 17-bedroom Hurst
House, near Laugharne, Carmarthenshire, has been placed in
administration for the second time in just over two years.

According to the report, Hurst House first went into
administration in August 2008.  It was bought out of
administration by Neil Morrissey's former business partner Matt
Roberts, with the help of private investors including Jeremy
Stone, a bioscience entrepreneur.

Former Michelin-starred chef Martin Blunos was executive chef at
the hotel, but left several months ago, the report notes.

Hurst House is situated in a converted 16th century Grade II-
listed dairy farm.  The hotel first came to prominence when it was
owned by the actor Neil Morrissey.


KCA DEUTAG: First Reserve Transfers Majority Stake to Pamplona
--------------------------------------------------------------
Martin Arnold and Anousha Sakoui at The Financial Times report
that First Reserve Corp., the energy-focused US private equity
group, has suffered its biggest single loss after handing over its
majority stake in KCA Deutag Drilling Group Ltd. to its Russian-
backed minority partner Pamplona Capital Management LLP.

The FT says the unusual move leaves First Reserve nursing several
hundred million pounds of losses on the deal.  According to the
FT, it left Pamplona in position to make a sweetened debt
restructuring proposal to KCA's lenders, offering to inject
US$400 million of fresh equity.

KCA Deutag, formerly known as Abbot Group, was taken private in a
GBP906 million buy-out by the private equity groups just as the
debt bubble was bursting in December 2007, the FT discloses.

The FT notes burdened with more than US$2 billion in debt, the
company has struggled to respect its loan covenants, especially
since the fall out from the BP oil spill in the gulf of Mexico
caused delays to new oil rigs and hit the company's earnings.

First Reserve initially took a majority stake in the deal, while
Pamplona owned only about 20%, the FT recounts.  But KCA said on
Tuesday that First Reserve had transferred all its interests in
the company to Pamplona, which now owned all of its equity, the FT
relates.

Pamplona, advised by Rothschild, hopes to have an advantage in the
debt restructuring talks as it is linked to TNK BP, the Russian
oil group that is one of KCA's biggest customers, through Russia's
Alfa Group, its biggest investor, the FT states.

Aberdeen-based KCA DEUTAG Drilling Limited is a major land driller
with more than 60 land rigs operating worldwide and is the largest
offshore drilling contractor in the UK sector of the North Sea.
KCA DEUTAG has more than 30 offshore platforms and 10 mobile
offshore drilling rigs (including jackups) in the North Sea, the
Caspian Sea, Angola, and Sakhalin.  It is also active in the
Middle East, Africa, and Asia.  Not just a contractor, it also
designs, engineers, and constructs platform rigs.  KCA DEUTAG
delivers rigs primarily to large international operators in the
oil and gas industry.  The company is a subsidiary of Abbot Group,
a major UK-based oil field services concern.


MILLENNIUM PLAZA: Anglo Irish Puts Firm Into Receivership
---------------------------------------------------------
Sion Barry at Western Mail reports one of South Wales' best-known
leisure and retail developments has been put into receivership.

According to the report, the Millennium Plaza scheme, which is
next to the Millennium Stadium in the centre of Cardiff, was owned
by Crown Investments of Jersey, a wholly-owned subsidiary of
Cardiff-headquartered property development company Hawtin.

According to Wales Online, Millennium Plaza had initially agreed
with its lender Anglo Irish Banking Corporation to try to sell the
132,658 sq ft scheme -- which resulted in the appointment of
property agents CB Richard Ellis.  The report relates loss-making
Hawtin, which announced in October it was pulling out of the
property investment sector, said marketing efforts had produced a
number of cash offers of GBP12 million -- some GBP1 million above
the scheme's current book value.

In a statement Hawtin said that Crown has also received an offer
from a related party that could achieve a deferred consideration
in excess of GBP15 million, the report notes.  The Crown was
pursuing these offers in light of "extremely positive"
developments in the potential future use of the building, Wales
Online added.

However, Anglo Irish has now appointed Allsop as receiver and
manager of Millennium Plaza, Wales Online reports.

Wales Online notes that Crown's liability to AIBC totals some
GBP29 million, comprising the term loan of GBP23.5 million, as
well as interest and a swap instrument with a current negative
position.

Wales Online discloses Hawtin Chairman Bob Carlton-Porter said:
"The marketing of Millennium Plaza was going very well in a
difficult market.  We had a number of tangible offers on the
table, so we are surprised and disappointed that AIBC, which is
now largely owned by the Irish Government, has chosen to take this
step.  We can only assume that the bank is confident that a sale
value in excess of the amounts tendered can be achieved.  Last
year was a difficult one for Millennium Plaza.  Two tenants --
both considered strong covenants -- went into pre-pack
administration and a number of other occupiers have been trading
on a license.  However, Crown has been looking at ways to
reorganize the scheme to meet the changing demands of major
leisure attractions.  A number of excellent asset management
opportunities have been identified to add value, including new
lettings; extending and reconfiguring the building; changing the
use of the space and adding a car park."


RADIO MALDWYN: Faces Liquidation Due to Insolvency
--------------------------------------------------
BBC News reports that Radio Maldwyn, a Newtown, Powys-based radio
station, have been sent a notice of insolvency and could go out of
business.

BBC News relates that shareholders of Radio Maldwyn will hold an
extraordinary general meeting on December 13, 2010, to discuss the
station's future.

A shareholder, who did not want to be named, told BBC News that
the shareholders would be asked to consider two resolutions -- to
wind up the company and to appoint liquidators.

According to BBC News, MP Glyn Davies, who is a shareholder, said
the station must have "local input" if it is to have a future.

Radio Maldwyn presenters have stopped broadcasting and the station
is currently playing back-to-back music.


ROUND2 COMMUNICATIONS: Placed Into Administration
-------------------------------------------------
Integrated media company Round2 Communications UK group, including
Newcastle agency Robson Brown, has been placed into
administration, The Drum reports.

According to the report, staff at the Newcastle agency was made
aware of the situation, and a statement from the company explained
that the agency would look to enter into partnerships with "a well
established media partner".

"The financial structure which Round 2 adopted was based on
leveraging significant debt into those businesses has been wholly
inappropriate and totally unworkable.  This has created
unsustainable financial stress into the group which has resulted
in the group going into administration," the report quoted an
unnamed spokesperson for Robson Brown as saying.

Round2 made three acquisitions in the UK in 2010, beginning with
Robson Brown in March, and then London media group AW
Communications the following month, The Drum notes.

The report discloses that last month it completed the acquisition
of Bath-based agency Attinger Jack Advertising for an undisclosed
fee.

Round2 Communications, which specialised in media planning and
buying services, was founded in Los Angeles in 1993.


SECURETICKET (UK): Director Slapped With 9 Years Disqualification
-----------------------------------------------------------------
Michael John Joseph Barnard, one of the directors of Secureticket
(UK) Ltd, has been disqualified from being the director of a
company for nine years, following an investigation by the
Insolvency Service, creditman.co.uk reports.

Company Investigations of the Insolvency Service found that while
Mr. Barnard was a director of Secureticket, the company collected
over GBP600,000 from on-line ticket sales for the Cambridge Folk
Festival but failed to pay these to Cambridge City Council (CCC)
in accordance with the contract between the two organizations.

According to creditman.co.uk, the investigation found that the
company failed to keep the monies in the "protected" account but
were kept in a general Secureticket customer account with another
bank.  Monies from this account were used to make payments to
other customers and into Secureticket's own current account.  The
company had originally entered into a contract with CCC, which
stipulated that any monies collected in relation to the sale of
tickets for the Cambridge Folk Festival should be kept in a
"protected client" account, with a specific bank.

Secureticket (UK) Ltd is an on-line ticket agency.  Secureticket
was incorporated on July 14, 2003, and commenced trading in
February 2007.  Its registered office was at Secure Park, Nine
Mile Water, Nether Wallop, Stockbridge Hampshire SO 80 8DR.
The company was placed into voluntary liquidation on January 19,
2009.


TRAFALGAR NEW HOMES: Creditors Okay Company Voluntary Arrangement
-----------------------------------------------------------------
Trafalgar New Homes Plc disclosed that at the Creditors Meeting
held on Tuesday, all of the resolutions proposed were duly passed.

The Company further disclosed that at the General Meeting on
Tuesday all of the resolutions proposed were also duly passed.  As
such the proposed Company Voluntary Arrangement, dated October 21,
2010, has been approved.

Further announcements will be made as and when appropriate.

As reported by the Troubled Company Reporter-Europe, Jane Walker
of Errington Walker Limited was appointed as administrator to
Trafalgar New Homes PLC on August 26, 2010, pursuant to a filing
at court.  As announced on July 12, 2010, certain events have led
to the worsening of the Company's financial position, which led
the company to seek insolvency advice.  Dealings in the company's
ordinary shares were suspended on July 7, 2010.

Trafalgar New Homes Plc is a United Kingdom-based company.  The
company is engaged in property development.


YELL GROUP: Moody's Downgrades Corporate Family Rating to 'B3'
--------------------------------------------------------------
Moody's Investors Service has downgraded Yell Group Plc's
corporate family rating to B3 from B2 and its probability-of-
default rating to Caa1 from B3.  The outlook on the ratings is
negative.

                        Ratings Rationale

"Moody's downgrade of Yell's CFR to B3 and the negative ratings
outlook reflect: (i) the recessionary and structural pressures
faced by the company, leading to continued marked deterioration in
its operating performance; and (ii) the lack of visibility with
regard to the likely timing of a meaningful and sustained recovery
in Yell's operating performance, which remains closely linked to
the return of confidence amongst small and medium-sized
enterprises," says Gunjan Dixit, the lead analyst for Yell.

Having registered a decline in revenues of 14% at constant
currencies in FY 2009/10, Yell's revenues fell by 11% in H1
2010/11.  While the decline in Yell's revenues in Q1 2010/11 was
in line with the company's guidance at around 11%, the drop in
revenues in Q2 2010/11 was worse than its initial guidance, at
12%.  The revenue decline remains in particular driven by the
continued difficult economic environment in Yell's operating
markets which is forcing SMEs to delay their investments in
marketing efforts.  In addition, structural pressures on Yell's
business associated with the transition to online advertising
continue to pose challenges.  Moody's notes that the company has
revised its revenue guidance for Q3 2010/11 downwards to around
12% (on an organic basis at constant currencies), from its
original guidance of 9% for the quarter.  Moreover, the company
does not expect there to be any improvement in its revenues in Q4
2010/11 from Q3 2010/11.

The rating agency acknowledges that amid a particularly difficult
operating environment, Yell has continued to invest in the
business to keep pace with changing customer requirements, in line
with its business strategy.  This is reflected in the increased
capital expenditures as a percentage of sales (at 4.9%) in H1
2010/11 year-on-year and management guidance of an increase in
this ratio to c. 3% to 4% from historical levels of c. 2.5%.
Internet growth has been the main area of investment, with a focus
on the development of the website design product for SMEs,
acquisition of increased search engine traffic, and improving
mobile internet usage through the launch of new products.  Whilst
Moody's recognizes the merits in Yell's strategy, in the agency's
opinion, it currently remains extremely difficult to assess (i)
the degree (and sustainability) of demand take-up for such
products over time as well as (ii) Yell's medium to long-term
competitive position in the online as well as the mobile market
segments.

Moody's notes that Yell has maintained its focus on cost control
and cash conservation.  During H1 2010/11, Yell was able to
maintain its adjusted EBITDA margin (as defined by Yell) at around
the same level as the previous year -- approximately 30% --
largely as a result of its cost-control measures.  Moody's also
notes that company remains confident of achieving adjusted EBITDA
(as defined by Yell) of around GBP530-540 million at current
exchange rates, helped by additional restructuring steps planned
in H2 2010/11.

Although Yell reported a net debt/EBITDA ratio of 4.9x for the
last 12 months ending September 30, 2010, the rating agency
expects this ratio to trend close to 5.5x by the end of FY
2010/11.  Yell enjoyed comfortable headroom of 29% under its bank
financial leverage covenant at the end of September 2010.
However, as the covenants begin to step down from September 2011
onwards, Yell's covenant headroom is also likely to tighten
rapidly if the declines in the company's revenues and EBITDA
continue unabated.

Moody's regards Yell's current liquidity position as adequate for
its requirements.  The company had cash and cash equivalents of
GBP261 million as of September 30, 2010.  In addition, Yell
benefits from GBP197 million worth of largely undrawn and
committed revolving credit facilities (due in 2014).  Moody's
notes that, despite the tough operating environment, Yell has been
generating meaningful free cash flow (GBP161 million before
exceptional items in H1 2010/11) and the company's cash conversion
rate stood at 115% in H1 2010/11.  Following the completion of its
equity increase and the refinancing of the majority of its senior
credit facilities in late 2009, Yell has only moderate amounts of
debt amortization (approximately GBP103 million due in the next 12
months excluding excess cash flow sweep) until 2014.  Given the
current share price, Moody's believes that access to any
additional equity funding would prove challenging for the company.

Moody's notes that Yell remains focused on using the majority of
its internally generated cash flow (including most of the existing
cash on balance sheet) for debt reduction over the short to medium
term.

               What Could Change the Rating -- Down

Downward pressure on the ratings could result from continued
decline in Yell's revenues and EBITDA leading either to a
deterioration in Gross Debt/ EBITDA (as defined by Moody's) of
around 6x and/or a significant reduction in bank covenant
headroom.

                What Could Change the Rating -- Up

While upward rating pressure is unlikely in the short term, over
time it could result from (i) a visible and sustained recovery in
Yell's revenue and EBITDA growth, with a commensurate improvement
in the Gross debt/EBITDA (as defined by Moody's) at or below 5.0x
and continued improvement in the ratio going forward (with
meaningful bank covenant headroom at all times); and (ii) healthy
free cash flow generation.

Moody's assigned Yell's ratings by evaluating factors that the
rating agency believes are relevant to the credit profile of the
issuer, such as: (i) the business risk and competitive position of
Yell; (ii) the capital structure and financial risk profile of the
company; (iii) the projected performance of the company over the
short to medium term; and (iv) management's track record and
tolerance for risk.  Having compared Yell's attributes with those
of other issuers both within and outside of its core industry,
Moody's believes the company's ratings to be comparable to those
of other issuers of similar credit risk.  The principal
methodology used in this rating was Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.

Moody's most recent rating action on Yell was implemented on
November 23, 2009, when the rating agency confirmed the company's
B2 CFR and B3 PDR.

Yell Group plc is the leading publisher of classified directories
in the UK and, through its subsidiary, Yellow Book, is a leading
independent directories publisher in the US.  Yell also owns 100%
of TPI (renamed "Yell Publicidad"), the largest publisher of
yellow and white pages in Spain, with operations in certain
countries in Latin America.  Yell's revenue for FYE March 31, 2010
was GBP2.1 billion and its adjusted EBITDA (as defined by the
company) was GBP619.6 million.


* UK: Private Equity Interest in Ailing Care Home Sector High
-------------------------------------------------------------
Sarah Mishkin and Martin Arnold at The Financial Times report that
the care home industry is facing a financial squeeze.

The FT says residential and nursing homes that care for the
elderly, disabled and the terminally ill are stuck between falling
income from cash-strapped local authorities and rising costs for
rent and staff.  Yet private equity groups are circling some of
the UK's biggest care home operators, such as Southern Cross, Four
Seasons, The Priory and Barchester, looking for an opportunity to
take control in return for injecting fresh funding, the FT notes.

According to the FT, in spite of the problems faced by the sector,
the private equity houses believe there are still profits to be
made.

At the root of the problems faced by companies such as Southern
Cross, which has seen its shares fall from more than 600p in 2007
to under 20p in recent weeks, are public sector spending cuts that
are putting fees under pressure, the FT discloses.

Public sector funding is critical for most operators as 60 per
cent of UK care home residents are placed and funded by their
local council or primary care trust, the FT says, citing
consultancy firm Laing & Buisson.

The cuts hit a sector struggling as inflation has grown faster
than their fees for the past few years, driven by rent rises that
are written into leases and staffing costs that have been pushed
up by rises in the minimum wage, the FT states.

At least five care home companies went bankrupt in the second
quarter of this year, the FT says, citing a study by accountancy
firm Wilkins Kennedy.  However, private equity interest in the
sector remains high, according to the FT.


* UK: "Time to Pay" Scheme a Big Threat to Midland Firms, R3 Says
-----------------------------------------------------------------
Insider Media Limited reports that new research from insolvency
body R3 shows almost a third (29 per cent) of insolvency experts
think a squeeze of the Time To Pay facility could be the biggest
threat to vulnerable Midlands businesses in 2011, closely followed
by the public sector cutbacks and a modest rise in interest rates
(both 23 per cent).

"Our members have seen how invaluable the Time To Pay scheme has
been to businesses. We believe that it is important that it
remains available as a breathing space for viable organisations
and that it is not used as an alternative credit facility for
companies needing constant bailouts in order to operate," Insider
Media quoted R3 Midlands chairman Matthew Hammond, a partner at
PwC in the Midlands, as saying.

Insider Media relates the survey also revealed that almost half of
R3's members (48 per cent) believe the construction industry will
bear the brunt of the impending public sector cuts, with a
considerable reduction in spending on education and social
housing.


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


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
Dec. 9-11, 2010
  AMERICAN BANKRUPTCY INSTITUTE
     Winter Leadership Conference
        Camelback Inn, a JW Marriott Resort & Spa,
        Scottsdale, Ariz.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Dec. 2-4, 2010
  AMERICAN BANKRUPTCY INSTITUTE
     22nd Annual Winter Leadership Conference
        Camelback Inn, Scottsdale, Arizona
           Contact: 1-703-739-0800; http://www.abiworld.org/

January 26-28, 2011
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Distressed Investing Conference
        Aria Las Vegas
           Contact: http://www.turnaround.org/

Jan. 27-28, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Rocky Mountain Bankruptcy Conference
        Westin Tabor Center, Denver, Colo.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Feb. 3-5, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Caribbean Insolvency Symposium
        Westin Casuarina Resort & Spa, Grand Cayman Island
           Contact: 1-703-739-0800; http://www.abiworld.org/

Feb. 24-25, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Valcon
        Four Seasons Las Vegas, Las Vegas, Nev.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 4, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Bankruptcy Battleground West
        Hyatt Regency Century Plaza, Los Angeles, Calif.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 7-9, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Conrad Duberstein Moot Court Competition
        Duberstein U.S. Courthouse, New York, N.Y.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 10, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Nuts and Bolts - Florida
        Tampa, Fla.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 10-12, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     SUCL/ Alexander L. Paskay Seminar on
     Bankruptcy Law and Practice
        Marriott Tampa Waterside, Tampa, Fla.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 17-19, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Byrne Judicial Clerkship Institute
        Pepperdine University School of Law, Malibu, Calif.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 31-Apr. 3, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Annual Spring Meeting
        Gaylord National Resort & Convention Center,
        National Harbor, Md.
           Contact: 1-703-739-0800; http://www.abiworld.org/

April 27-29, 2011
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Spring Conference
        JW Marriott, Chicago, IL
           Contact: http://www.turnaround.org/

May 5, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Nuts and Bolts - New York City
        Association of the Bar of the City of New York,
        New York, N.Y.
           Contact: 1-703-739-0800; http://www.abiworld.org/

May 6, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     New York City Bankruptcy Conference
        Hilton New York, New York, N.Y.
           Contact: 1-703-739-0800; http://www.abiworld.org/

June 6, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Canadian-American Cross-Border Insolvency Symposium
        Fairmont Royal York, Toronto, Ont.
           Contact: 1-703-739-0800; http://www.abiworld.org/

June 9-12, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Central States Bankruptcy Workshop
        Grand Traverse Resort and Spa, Traverse City, Mich.
              Contact: http://www.abiworld.org/

July 21-24, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Northeast Bankruptcy Conference
        Hyatt Regency Newport, Newport, R.I.
           Contact: 1-703-739-0800; http://www.abiworld.org/

July 27-30, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Southeast Bankruptcy Workshop
        The Sanctuary at Kiawah Island, Kiawah Island, S.C.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Aug. 4-6, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Mid-Atlantic Bankruptcy Workshop
        Hotel Hershey, Hershey, Pa.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 14, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     NCBJ/ABI Educational Program
        Tampa Convention Center, Tampa, Fla.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. __, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     International Insolvency Symposium
        Dublin, Ireland
           Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 25-27, 2011
  TURNAROUND MANAGEMENT ASSOCIATION
     Hilton San Diego Bayfront, San Diego, CA
        Contact: http://www.turnaround.org/

Dec. 1-3, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     23rd Annual Winter Leadership Conference
        La Quinta Resort & Spa, La Quinta, Calif.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Apr. 19-22, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Annual Spring Meeting
        Gaylord National Resort & Convention Center,
        National Harbor, Md.
           Contact: 1-703-739-0800; http://www.abiworld.org/

July 14-17, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Southeast Bankruptcy Workshop
        The Ritz-Carlton Amelia Island, Amelia Island, Fla.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Aug. 2-4, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Mid-Atlantic Bankruptcy Workshop
        Hyatt Regency Chesapeake Bay, Cambridge, Md.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Nov. 29 - Dec. 2, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Winter Leadership Conference
        JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
           Contact: 1-703-739-0800; http://www.abiworld.org/


                            *********

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

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

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

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


                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *