TCREUR_Public/110105.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Wednesday, January 5, 2011, Vol. 12, No. 3

                            Headlines



G E R M A N Y

ULM: Declared Insolvent Again Due to Mounting Debts


G R E E C E

PIRAEUS BANK: Unveils Terms of EUR807 Million Rights Issue


H U N G A R Y

HUNGARIAN GOLF: Administrator Puts Assets Up for Sale for HUF3.2BB


I R E L A N D

AEOLUS CDO: S&P Cuts Ratings on Six Classes of Notes to CCC- (sf)
ASGARD CDO: Moody's Upgrades Rating on Series D Notes to 'B3 (sf)'
FUSION BUILDING: Salvesen Insulated Buys Fusion Out of Liquidation
QUINN INSURANCE: Anglo Excludes Sean Quinn's Bid to Acquire Firm
TABERNA EUROPE: Fitch Junks Ratings on Two Classes of Notes

TABERNA EUROPE: Fitch Downgrades Ratings on Six Classes of Notes
* IRELAND: Over 1,500 Firms Collapsed During 2010
* IRELAND: Building Industry's Decline to Continue This Year


I T A L Y

SESTANTE FINANCE: S&P Lowers Rating on Class C2 Notes to 'B+ (sf)'


L U X E M B O U R G

FINSPACE SA: Moody's Withdraws 'B1' Corporate Family Rating


R U S S I A

INTERNATIONAL INDUSTRIAL: S&P Withdraws 'D' Counterparty Ratings
KHANTY-MANSIYSK JSC: S&P Affirms B+ LT Counterparty Credit Rating
* Fitch Takes Various Rating Actions on Four Russian Banks


S L O V E N I A

CESTNO PODJETJE: Files for Compulsory Settlement
MTB: Launches Court-Mandated Debt Restructuring
PRIMORJE: Expected to File for Court-Mandated Debt Restructuring
STAVBAR GRADNJE: Launches Court-Mandated Debt Restructuring
* SLOVENIA: Analyst Sees Tough Outlook for Construction Sector


U K R A I N E

* Fitch Raises City of Odessa's Long-Term Currency Ratings to 'B-'
* S&P Raises Issuer Credit Rating on City of Odessa to 'CCC+'


U N I T E D   K I N G D O M

CRUISE: 9 Jobs Axed Despite Sir Tom Hunter Deal
RB FARQUHAR: Owes GBP10 Million to Bank and Trade Creditors


X X X X X X X X


* EUROPE: Debt Markets Could Be Hit by Second Credit Crisis


                            *********


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


ULM: Declared Insolvent Again Due to Mounting Debts
---------------------------------------------------
FIFA.com reports that former Bundesliga side Ulm has been declared
insolvent for the second time and will be automatically relegated
from the German fourth division.

Ulm spent one season in the top flight of German football in 1999-
2000 after being guided to back-to-back promotions by their then
coach Ralf Rangnick, who repeated that feat more recently with
Hoffenheim, FIFA.com says.

FIFA.com relates that Ulm then slid into obscurity equally
quickly, being declared insolvent in 2001 and recommencing life in
the fifth division.

After immediate promotion back to the fourth division, FIFA.com
says, Ulm only narrowly missed out on promotion to the third
division in each of the last two seasons, but have been forced to
shut down operations again due to spiralling debts and the failure
to find a new investor.

As a consequence, FIFA.com notes, all their results this season
have been declared null and void, although the players have
requested, and been granted, the continuation of their season
until May.  Nevertheless, all results from games involving Ulm
this season will be purely cosmetic and will not count towards the
final league classification, FIFA.com notes.

Ulm join Weiden in automatic relegation after their southern
Germany neighbors were wound up in November.


===========
G R E E C E
===========


PIRAEUS BANK: Unveils Terms of EUR807 Million Rights Issue
----------------------------------------------------------
Dimitris Kontogiannis at The Financial Times reports that Piraeus
Bank unveiled the terms of a rights issue on Monday.

According to the FT, Piraeus Bank said it decided on Monday to go
ahead with a rights issue to raise EUR807 million (US$1.1 billion)
in cash to boost its capital adequacy ratios to comply with a
stricter supervisory framework, cope with challenging economic
conditions in Greece, and explore organic growth opportunities in
neighboring countries.

The subscription price was set at EUR1 per share and the
subscription ratio at 12 new ordinary registered shares for every
five existing ones, the FT discloses.  The FT says the
subscription price was set at a deep discount of 43% based on the
closing price of the bank's shares on the Athens stock exchange on
Monday.

The Piraeus rights issue is fully underwritten by a syndicate of
international banks lead by Barclays Bank, Credit Suisse
Securities (Europe), Goldman Sachs and Morgan Stanley, the FT
states.  The bank said they were acting as joint global
coordinators and joint bookrunners for the international offering,
according to the FT.

Piraeus Bank S.A. -- http://www.piraeusbank.gr-- is an Athens,
Greece-based financial and banking services group.  The Bank
offers its services through three divisions: Individuals, which
includes deposit and investment solutions, loans, cards, insurance
products, wealth management and electronic banking services;
Companies and Professionals, which includes business deposit
solutions, business financing solutions and funds transfer, and
Large Enterprises, which includes financing products, asset
management, risk management and investment banking.  During the
year ended December 31, 2008, the Bank had 358 branches in Greece
and 537 branches internationally, of which 38 were in Greece and
113 were in South-Eastern European countries, Egypt and Cyprus.
Its group companies are active in retail, corporate, international
and investment banking, as well as in asset management and real
estate.

                         *     *     *


On Dec. 22, 2010, the Troubled Company Reporter-Europe reported
that Moody's Investors Service placed on review for possible
downgrade the deposit and senior debt ratings of Ba1, subordinated
debt rating of Ba2, and backed (government-guaranteed) senior
unsecured rating of Ba1 of Piraeus Bank SA and Piraeus Group
Finance plc on review for possible downgrade.

As reported by the Troubled Company Reporter-Europe on Oct. 5,
2010, Fitch Ratings affirmed Athens-based Piraeus Bank's
Individual rating at 'D' and removed it from Rating Watch Negative
following its announcement that it withdrew its bids for stakes in
Agricultural Bank of Greece and TT Hellenic Postbank currently
owned by the Greek government.

Fitch said the Individual rating factors in deteriorating asset
quality and profitability amid a recessionary environment in
Greece, the bank's heavy reliance on funding from the European
Central Bank (28% of non-equity funding at end-H110) and exposure
to the Greek government (rated 'BBB-'/Negative) via its
considerable portfolio of Greek government debt (EUR8.6 billion at
end-H110) and below peer average capital ratios, although these
remain adequate.


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


HUNGARIAN GOLF: Administrator Puts Assets Up for Sale for HUF3.2BB
------------------------------------------------------------------
Hungary Around the Clock reports that the administrator of
Hungarian Golf Development, which owns the unfinished golf resort
in Csakbereny in Fejer, is putting the assets of the company up
for sale for HUF3.2 billion.

HATC relates that the project began in 2006, but ground to a halt
two years later because of the economic crisis, leaving
recreational facilities, hotels and residential properties
unfinished.

According to HATC, the company had racked up HUF1 billion in debt
by 2009 and liquidation procedures were initiated in July.

Hungarian Golf Development is a golf course developer.


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


AEOLUS CDO: S&P Cuts Ratings on Six Classes of Notes to CCC- (sf)
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'BB (sf)' and placed
on CreditWatch negative its credit ratings on the class A notes in
the series COLONNADE II and COLONNADE III transactions of Aeolus
CDO Ltd.  At the same time, S&P lowered to 'CCC- (sf)' its ratings
on six classes in the transactions and affirmed its 'CCC- (sf)'
rating on three classes.

The rating actions follow S&P's assessment of notices published
recently by the Companies Announcement Service of the Irish Stock
Exchange relating to the COLONNADE II and COLONNADE III
transactions.  The notices give details of forthcoming noteholder
meetings, resolutions to redeem the notes in early 2011, and
procedures for voting.  S&P understands that the meetings have not
been called as a result of events of default in the relevant
transactions.

Aeolus CDO's COLONNADE II and III series are hybrid collateralized
debt obligations where the issuers initially took exposure through
a portfolio credit default swap to primarily European structured
finance securities.  In the case of early redemption, termination
payments may be due to the credit default swap counterparty.  If
so, and in accordance with the transactions' priorities of
payment, the issuer makes payments from available collateral
proceeds to the CDS counterparty before distributing remaining
amounts, if any, to noteholders.

In S&P's opinion:

* The issuers have called the meetings because they consider that
  the resolutions will be approved;

* Given the nature of the underlying reference obligations and
  current market conditions, termination payments on early
  redemption would likely be due to the CDS counterparty;

* Termination payments could limit amounts available for
  distribution to noteholders to the extent that some or all
  noteholders might experience principal losses.

In reaching S&P's conclusions, S&P has considered the case of
Aeolus CDO series 2005-3, a similar CDO of ABS transaction that
redeemed in June 2010.  Noteholder meetings approved a resolution
for early redemption.  All noteholders subsequently experienced
principal losses.

S&P has assigned its 'BB (sf)' rating to the class A notes in
COLONNADE II and III.  This rating reflects S&P's current
assessment of the creditworthiness of the notes given the
potential risks to noteholders of early redemption in current
market conditions.  S&P has placed the notes on CreditWatch
negative pending the outcome of the forthcoming noteholder
meetings.

S&P has assigned its 'CCC- (sf)' rating on all other rated classes
in the two transactions, denoting that, in its opinion, the notes
are vulnerable to nonpayment.

                           Ratings List

                          Aeolus CDO Ltd.

                          Ratings Lowered

     GBP89 Million Secured Credit-Linked Floating-Rate Notes
                (Colonnade II) Series COLONNADE II

                                     Rating
                                     ------
          Class           To                      From
          -----           --                      ----
          A               BB (sf)/Watch Neg       BBB+ (sf)
          B               CCC- (sf)               BBB (sf)
          C               CCC- (sf)               BB+ (sf)
          D               CCC- (sf)               CCC+ (sf)

    EUR165.5 Million Secured Credit-Linked Floating-Rate Notes
               (Colonnade III) Series COLONNADE III

                                     Rating
                                     ------
          Class           To                      From
          -----           --                      ----
          A               BB (sf)/Watch Neg       BB+ (sf)
          B               CCC- (sf)               BB- (sf)
          C               CCC- (sf)               B- (sf)
          D               CCC- (sf)               CCC (sf)

                         Ratings Affirmed

     GBP89 Million Secured Credit-Linked Floating-Rate Notes
                (Colonnade II) Series COLONNADE II

                     Class           Rating
                     -----           ------
                     E               CCC- (sf)

    EUR165.5 Million Secured Credit-Linked Floating-Rate Notes
               (Colonnade III) Series COLONNADE III

                     Class           Rating
                     -----           ------
                     E               CCC- (sf)
                     W               CCC- (sf)


ASGARD CDO: Moody's Upgrades Rating on Series D Notes to 'B3 (sf)'
------------------------------------------------------------------
Moody's Investors Service took these rating actions on the notes
issued by Asgard CDO plc.

Issuer: Asgard CDO plc

  -- EUR327M EUR327,000,000 Series A Euro Floating Rate Credit
     Linked Secured Notes due 2011 Bond, Upgraded to Ba3 (sf);
     previously on Jun 25, 2009 Downgraded to Caa1 (sf)

  -- GBP2M GBP2,000,000 Series A Sterling Floating Rate Credit
     Linked Secured Notes due 2011 Bond, Upgraded to Ba3 (sf);
     previously on Jun 25, 2009 Downgraded to Caa1 (sf)

  -- EUR125M EUR125,000,000 Series B Euro Floating Rate Credit
     Linked Secured Notes due 2011 Bond, Upgraded to B1 (sf);
     previously on Jun 25, 2009 Downgraded to Caa1 (sf)

  -- GBP2M GBP2,000,000 Series B Sterling Floating Rate Credit
     Linked Secured Notes due 2011 Bond, Upgraded to B1 (sf);
     previously on Jun 25, 2009 Downgraded to Caa1 (sf)

  -- NZ$10M NZD10,000,000 Series B New Zealand Dollar Floating
     Rate Credit Linked Secured Notes due 2011 Bond, Upgraded to
     B1 (sf); previously on Jun 25, 2009 Downgraded to Caa1 (sf)

  -- US$20M US$20,000,000 Series B Dollar Floating Rate Credit
     Linked Secured Notes due 2011 Bond, Upgraded to B1 (sf);
     previously on Jun 25, 2009 Downgraded to Caa1 (sf)

  -- US$10M US$10,000,000 Series C Dollar Floating Rate Credit
     Linked Secured Notes due 2011 Bond, Upgraded to B2 (sf);
     previously on Jun 25, 2009 Downgraded to Caa2 (sf)

  -- SwFr5M CHF5,000,000 Series C Swiss Franc Floating Rate
     Credit Linked Secured Notes due 2011 Bond, Upgraded to B2
      (sf); previously on Jun 25, 2009 Downgraded to Caa2 (sf)

  -- EUR7.5M EUR7,500,000 Series D Euro Fixed Rate Credit Linked
     Secured Notes due 2011 Bond, Upgraded to B3 (sf); previously
     on Jun 25, 2009 Downgraded to Caa3 (sf)

                         Ratings Rationale

Asgard CDO plc is a synthetic CDO-squared referencing six managed
bespoke corporate CDOs and a static ABS portfolio comprised of
RMBS assets.  The rating upgrade actions are the result of the
overall credit improvement of the bespoke corporate inner CDOs and
the reduction of the time to maturity of the transaction.

There are several reference entities which have been upgraded by
more than 4 notches since the last rating action of this
transaction in June 2009.  Most significant upgrade was Ford Motor
Company, which is referenced in five out of six bespoke inner
CDOs, rated Ca in June 2009 and is currently rated Ba3, resulting
in a change of seven notches.  Overall credit quality of each
inner CDO has improved by 1-3 notches since the last action.

The ABS portfolio has also decreased its size almost by half since
the last review due to amortization, leaving only five RMBS assets
in the portfolio.  Currently all assets are rated Aaa although one
asset is currently on review for possible downgrade.  Credit
quality of the ABS portfolio has also improved by 1 notch since
the last action.

The notes are scheduled to be redeemed in August 2011, leaving
less than 1 year for maturity.  The short maturity is another
significant factor which gives uplifting pressure to the ratings
of the notes.

Moody's performed a number of sensitivity analyses in addition to
the standard notching assumption applied to assets under review
for possible downgrade.  In particular, Moody's considered a model
run where all Caa rated reference entities are treated as
defaulted in order to test the deal sensitivity to the lowest
rated entities in the portfolio.  This run generated a result that
were lower by 4-5 notches than the one modelled under the base
case.

Taking into considerations the result of sensitivity analyses and
other factors such as the impact of short time to maturity on the
model, the rating committee vote resulted in upgrades of all
classes of notes to a level three notches lower than the base case
result.

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.


FUSION BUILDING: Salvesen Insulated Buys Fusion Out of Liquidation
------------------------------------------------------------------
Gavin Daly at The Post.IE reports that Fusion Building Systems,
one of the main companies in the Fleming building group, has been
bought out of liquidation and reopened for business in England.
Fusion Building was acquired by Salvesen Insulated Frames in
Northampton, The Post.IE says.

According to the report, the company's equipment and machinery has
been moved from Ringaskiddy to Northampton, while Liam Morrissey,
the operations manager of Fusion, has moved to join the firm in
Britain.

The Post.IE quoted Salvesen Insulated owner Tom Salvesen as saying
that Fusion was "in an exceptionally strong financial position"
following the takeover.  "The company was set up with EUR2 million
capital and has guaranteed access to further funding without
needing to resort to any bank borrowing.  Neither working capital
nor capacity is a problem for us," Mr. Salvesen added.

Mr. Salvesen said that a number of former employees of Fusion had
rejoined the business in Northampton, where it has fitted out an
80,000 square foot premises.

Fusion has been in liquidation since April last year, after the
Supreme Court rejected an examinership application for Fleming's
group of building and development companies, which have debts of
more than EUR1 billion.

Fusion Building Systems has been in business since 2000 and its
steel framework systems have been used in the building of houses,
apartment blocks, hotels and care homes.


QUINN INSURANCE: Anglo Excludes Sean Quinn's Bid to Acquire Firm
----------------------------------------------------------------
Gavin Daly at The Sunday Business Post Online reports that Anglo
Irish Bank excluded businessman Sean Quinn from taking control of
Quinn Insurance.

Mr. Quinn believed he was part of a joint bid for the insurance
business alongside Anglo and U.S. insurance firm Liberty Mutual,
according to The Sunday Business Post Online.  However, the report
relates, the final bid submitted for Quinn Insurance in recent
weeks did not include Mr. Quinn, leading to a significant
disagreement between him and the bank.

Anglo Irish is owed EUR2.8 billion by the Quinn Group and Quinn
family, and is keen to protect its interests by having some
ownership of Quinn Insurance, according to The Sunday Business
Post Online.  The report relates Mr. Quinn had argued that he
could repay all his debts within eight years if he was left in
control of the insurance firm, but the bank has rejected that
view.

The Sunday Business Post Online discloses that there are also
tensions within the Quinn Group, with differences emerging between
the Sean Quinn-led shareholder board in the Republic and an
independent Quinn board in the North.  The board in the North
includes restructuring expert Murdoch McKillop, who was appointed
last April after Quinn Insurance went into administration, the
report notes.

The Sunday Business Post Online says that the tensions have
emerged at a sensitive time, as the Quinn Group is still in talks
with banks and bondholders about refinancing EUR1.3 billion of
debt.

The talks are likely to continue for at least another month and
have been complicated by the fact that some of the lenders have
sold on their debt at a discount to several new owners, the report
relates.

The Sunday Business Post Online notes that the latest moves mean
that Quinn is set to lose all control and involvement in Quinn
Insurance, which has been the most profitable part of his group.

The regulator, who fined both Quinn Insurance and Quinn himself
for alleged regulatory breaches in 2008, is understood to oppose
any ongoing involvement by Quinn in the insurance firm, The Sunday
Business Post Online states.

The report relates that the sale of Quinn Insurance, which is
being managed by investment bank Macquarie, is likely to be
finalized in the coming weeks.

The Sunday Business Post Online notes that there are three parties
left in the running for the general insurance business and at
least three bidding solely for Quinn's healthcare business.  The
report relates that apart from Anglo and Liberty Mutual, the firms
linked to a takeover include Swiss insurer Zurich, German firm
Allianz and U.S. firm Travelers.

                      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.

                       About Quinn Insurance

Quinn Insurance is owned by Sean Quinn, Ireland's richest man, and
his family.  The company has more than 20% of the motor and health
insurance market in Ireland.  Employing almost 2,800 people in
Britain and Ireland, it was founded in 1996 and entered the UK
market in 2004.

As reported by the Troubled Company Reporter-Europe, The Irish
Times said the Financial Regulator put Quinn Insurance into
administration in March 2010 after his office discovered
guarantees had been provided by the insurer's subsidiaries as far
back as 2005 on Quinn Group debts of more than EUR1.2 billion.
The regulator said the guarantees reduced the amount the firm had
in reserve to protect policyholders against possible claims,
putting 1.3 million customers at risk, according to The Irish
Times.


TABERNA EUROPE: Fitch Junks Ratings on Two Classes of Notes
-----------------------------------------------------------
Fitch Ratings has downgraded two classes of notes issued by
Taberna Europe CDO II, P.L.C.:

-- EUR462,402,492 class A1 notes to 'CCCsf' from 'BBB-sf';
-- EUR95,000,000 class A2 notes to 'CCsf' from 'BBsf'.

The rating actions are due to credit deterioration of the
underlying collateral and increased portfolio concentration since
Fitch's last review in January 2009.

This review was conducted under the framework described in the
report 'Global Rating Criteria for Structured Finance CDOs' using
the Structured Finance Portfolio Credit Model (SF PCM) for
projecting future default levels for the underlying portfolio.
These default levels were then compared to the breakeven levels
generated by Fitch's cash flow model of the CDO under various
default timing and interest rate stress scenarios, as described in
the report 'Global Criteria for Cash Flow Analysis in CDOs'.
Fitch also considered additional qualitative factors.

The downgrades of the notes reflect the credit deterioration
characterized by defaults and rating downgrades on the underlying
securities and concerns related to high obligor concentration.
Since Fitch's last rating action, Taberna Europe II has
experienced three additional defaults.  Defaulted assets, as
defined in the transaction documents, currently represent
approximately US$104.6 million or 14.4% of the total portfolio.
Based on Fitch's public and shadow ratings, the average credit
quality of the portfolio migrated to 'B-' from 'BB-/B+', causing a
failure of the transaction's weighted average rating factor
covenant and all of the overcollateralization tests.  As
a result, the Collateral Manager must maintain or improve the
collateral quality tests before the substitution of any CMBS or
B-notes is permitted during the five-year substitution period.
Currently, 29% of the portfolio is publicly or shadow rated in the
'CCC' category or below with 66.8% rated below investment grade.
Approximately 32.4% of the portfolio has experienced negative
credit migration since last review, net of upgrades.  Furthermore,
9.6% of the underlying collateral is currently on Rating Watch
Negative, and 19.9% has been assigned a Negative Outlook.

Additionally, Fitch considers the current portfolio to be
concentrated with only 37 obligors remaining in the pool, of which
32 are performing obligors.  Exposure to the largest obligor and
top five borrowers has increased and now stands at 3.7% and 18.5%
of the total portfolio, respectively.

Presently, the class A1 notes are amortizing due to the failing
coverage tests.  Since the transaction's restructuring in
September 2008, the class A1 notes received approximately
EUR25.2 million (4.3%) in principal amortizations.  The class A2
notes continue to receive timely interest payments.  However, the
ability to receive timely interest by both classes is threatened
by the trend of diminishing interest proceeds.  Fitch believes a
default is likely on the class A1 notes and highly probable for
the class A2 notes, at or prior to maturity.

Taberna Europe II is a collateralized debt obligation that closed
on Sept. 13, 2007.  In May 2010, TP Management LLC, a wholly owned
entity of Fortress Investment Group LLC, replaced Taberna Capital
Management, LLC, as a manager for the transaction.  The notes are
backed by senior and subordinated debentures issued by
subsidiaries of real estate investment trusts and real estate
operating companies, as well as financial institution debt,
commercial mortgage-backed securities and commercial mortgage B-
notes.


TABERNA EUROPE: Fitch Downgrades Ratings on Six Classes of Notes
----------------------------------------------------------------
Fitch Ratings has downgraded six classes of notes issued by
Taberna Europe CDO I, P.L.C., and revised the Rating Outlook on
one class:

-- EUR319,450,642 class A1 notes to 'BBsf/LS3' from 'BBB+sf';
    Outlook to Negative from Stable;

-- EUR90,500,000 class A2 notes to 'CCCsf' from 'BBsf';

-- EUR48,316,128 class B notes to 'Csf' from 'B+sf';

-- EUR29,512,915 class C notes to 'Csf' from 'B-sf';

-- EUR30,865,976 class D notes to 'Csf' from 'CCCsf';

-- EUR20,852,406 class E notes to 'Csf' from 'CCsf'.

The rating actions are due to credit deterioration of the
underlying collateral and increased portfolio concentration since
Fitch's last review in January 2009.

This review was conducted under the framework described in the
report 'Global Rating Criteria for Structured Finance CDOs' using
the Structured Finance Portfolio Credit Model for projecting
future default levels for the underlying portfolio.  These default
levels were then compared to the breakeven levels generated by
Fitch's cash flow model of the CDO under various default timing
and interest rate stress scenarios, as described in the report
'Global Criteria for Cash Flow Analysis in CDOs'.  Fitch also
considered additional qualitative factors.

The downgrades of the notes reflect the credit deterioration
characterized by defaults and rating downgrades on the underlying
securities and concerns related to high obligor concentration.
Since Fitch's last rating action, Taberna Europe I has experienced
five defaults, as defined by the transaction documents, which
represent approximately US$96.3 million or 17.1% of the portfolio.
Based on Fitch's public and shadow ratings, the average credit
quality of the portfolio migrated to 'B-' from 'BB-/B+', causing a
failure of the transaction's weighted average rating factor
covenant and the class B, C, D and E OC tests.  As a result, the
Collateral Manager must maintain or improve the collateral quality
tests before the substitution of any CMBS or B-notes is permitted
during the five-year substitution period.  Currently, 27.6% of the
portfolio is publicly or shadow rated in the 'CCC' category or
below, with 69.1% rated below investment grade.  Approximately
36.3% of the portfolio has experienced negative credit migration
since last review, net of upgrades.  Furthermore, 10.8% of the
underlying collateral is currently on Rating Watch Negative, and
14.5% has been assigned a Negative Outlook.

Additionally, Fitch considers the current portfolio to be
concentrated with only 35 obligors remaining in the pool, of which
29 are performing obligors.  Exposure to the largest obligor and
top five borrowers has increased and now stands at 4.5% and 19.4%
of the total portfolio, respectively.

Presently, the class A1 notes are amortizing due to the failing
class B OC test.  As of the November 2010 distribution date,
approximately 11.8% (EUR42.5 million) of the class A1 notes'
original balance has amortized down.  Fitch expects this gradual
pace of amortization to continue in the foreseeable future.

The revision of the Outlook to Negative from Stable on the class
A1 notes reflects Fitch's concerns over future performance of the
underlying collateral and the increasing obligor concentration in
the underlying portfolio.  The Loss Severity rating of 'LS3' for
the class A1 notes indicates the tranches' potential loss severity
given default, as evidenced by the ratio of tranche size to the
base-case loss expectation for the collateral, as explained in
Fitch's 'Criteria for Structured Finance Loss Severity Ratings'.
The LS rating should always be considered in conjunction with the
notes' long-term credit rating.  Fitch does not assign LS ratings
to tranches rated 'CCC' and below.

The class A2 and B notes continue to receive timely interest
payments, while the class C, D and E notes are not receiving any
distributions due to the failing coverage tests.  Based on the
modeling results, credit quality and concentrated nature of the
portfolio, Fitch believes that a default is likely for the class
A2 notes and inevitable for the class B, C, D and E notes.

Taberna Europe I is a collateralized debt obligation that closed
on Jan. 31, 2007.  In May 2010, TP Management LLC, a wholly owned
entity of Fortress Investment Group LLC, replaced Taberna Capital
Management, LLC as a manager for the transaction.  The notes are
backed by senior and subordinated debentures issued by
subsidiaries of real estate investment trusts and real estate
operating companies, as well as financial institution debt,
commercial mortgage-backed securities and commercial mortgage B-
notes.


* IRELAND: Over 1,500 Firms Collapsed During 2010
-------------------------------------------------
Barry O'Halloran at The Irish Times reports that more than 1,500
firms went into liquidation, receivership or examinership in the
Republic because they were unable to pay debts, according to
information compiled by corporate restructuring specialists
Kavanagh Fennell, publishers of the Insolvency Journal.

The Irish Times says business lobby group the Small Firms
Association said more than 60,000 redundancies were notified to
the Department of Enterprise during the year.

According to the Irish Times, Ken Fennell, partner with Kavanagh
Fennell, said there was no relief in the rate at which companies
were declared insolvent last year.  However, he noted that the
increase of 8% over the 2009 total was not as big as had been
expected.

The Irish Times reports that construction headed the list, with
472 casualties, close to 30% of the total.  Mr. Fennell, as cited
by The Irish Times, said this had a knock-on effect on the next
worst-hit sector, services, where there were 279 insolvencies and
businesses such as architects and quantity surveyors suffered.

Sectors which depend heavily on consumer spending were next in the
firing line followed by hospitality and tourism sector which had
194 insolvencies, The Irish Times relates.

The Irish Times notes that retailing was similarly badly hit with
177 failures on the high street.

Mr. Fennell predicted that hospitality and retailing could expect
to have further closures this year, The Irish Times adds.


* IRELAND: Building Industry's Decline to Continue This Year
------------------------------------------------------------
Barry O'Halloran at The Irish Times reports that Irish building
industry's decline entered its fourth year over the last couple of
months, but there is no sign of any real let-up in the recession,
while there is a fear that it could intensify as the State cuts
back on capital spending.

According to The Irish Times, at the peak of the property boom in
2006, close to 90,000 new homes were built in the Republic.  In
June, DKM Economic Consultants, an independent firm that regularly
produces reports on the sector for the State, among other clients,
predicted that this year's total could be 7,500 and 2011 could
struggle to match even that, The Irish Times discloses.

"The industry is in a really bad place at the moment," Annette
Hughes, a DKM director acknowledged at the time, according to The
Irish Times.  She noted that employment had fallen by two-thirds
over three years to under 100,000 people, while the industry's
value to the economy had slumped from EUR40 billion to
EUR17 billion, The Irish Times states.  In 2011, this is likely to
shrink to EUR11 billion, The Irish Times says.

Against the background of this decline, the State's toxic assets
agency, Nama, finally began the job of taking over EUR80 billion
or so of commercial property loans from the five Irish banks
guaranteed by the State: AIB, Anglo Irish, Bank of Ireland, EBS
and Irish Nationwide, The Irish Times relates.  This had immediate
ramifications for the developers who owe that money, some of whose
businesses, such as Liam Carroll's Danninger-Zoe Developments
empire and John Fleming's Fleming Construction, were already going
through insolvency, The Irish Times says.

According to The Irish Times, Nama's job is to take over property-
related loans and, as such, it should be removed from nuts-and-
bolts construction.  However, some building companies had become
so tied into development that it was impossible to separate them,
The Irish Times states.  The consequences were terminal for two,
Michael McNamara Company and Pierse Contracting, which went into
receivership in November, The Irish Times recounts.

It is unlikely that 2011 will pass without other similar failures
and property-related debt is likely to take center stage in any
that occur, The Irish Times says.

For much of the building industry, the State remains the only show
in town, but the Republic's finances are in such a mess, thanks to
the banking crisis, brought on by the property boom, that it is
cutting its budgets in this area drastically, The Irish Times
notes.  According to The Irish Times, while the Government is
committed to spending money on such areas as schools and water-
treatment plants, few projects are going into the planning
process, while those that are under way are coming to an end.

A moribund industry at home means that those with the wherewithal
are looking abroad, The Irish Times says.


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


SESTANTE FINANCE: S&P Lowers Rating on Class C2 Notes to 'B+ (sf)'
------------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on Sestante Finance
S.r.l.'s class C1 and C2 notes series 2.  S&P's ratings on the
class A and B notes remain unaffected.

The rating action follows S&P's cash flow analysis of the
transaction in light of the ongoing weak performance of the
underlying asset pool and an increase in the unpaid principal
deficiency ledger.

As of the October 2010 interest payment date, mortgage loans in
arrears for more than 90 days were 3.60%, down from 4.40%, and the
cumulative gross defaults were 5.39%, up from 4.95%.  Existing
arrears are, in S&P's opinion, not being cleared but age over
time, resulting in an increase in the level of severe delinquency
arrears.

Sestante Finance series 2 features a structural mechanism that
requires excess spread to cover the full balance of defaulted
mortgage loans, which are defined as 12 months in arrears.  Due to
the lack of available excess spread and higher-than-expected
defaults driven by the weak performance, the transaction had fully
depleted the reserve fund on the October 2009 IPD.  This has
resulted in an increase in unpaid PDL, which at the last IPD in
October 2010, accounted for about EUR5 million.  The unpaid PDL
affects the adjusted credit enhancement for the class C1 notes.

The reserve fund's full depletion has resulted in a lower level of
funds available to redeem the class C2 excess spread-backed notes.
In addition, the issuer must first cover the total amount of the
unpaid PDL in order to support the class C1 notes, before starting
to redeem the outstanding amount of the class C2 notes.  Thus, the
relative creditworthiness of both the class C1 and C2 notes has
deteriorated in S&P's opinion, which has resulted in the rating
action.

Sestante Finance series 2 is an Italian residential mortgage-
backed securities transaction that securitizes a pool of
Meliorbanca SpA-originated mortgage loans secured over residential
properties in Italy.  The transaction closed in December 2004.

                           Ratings List

                      Sestante Finance S.r.l.
    EUR647.2 Million Asset-Backed Floating-Rate Notes Series 2

       Ratings Lowered and Removed From CreditWatch Negative

                             Rating
                             ------
        Class         To               From
        -----         --               ----
        C1            BB+ (sf)         BBB (sf)/Watch Neg
        C2            B+ (sf)          BBB (sf)/Watch Neg


===================
L U X E M B O U R G
===================


FINSPACE SA: Moody's Withdraws 'B1' Corporate Family Rating
-----------------------------------------------------------
Moody's Investors Service has withdrawn its B1 corporate family
rating on Finspace S.A.

                         Ratings Rationale

The credit rating has been withdrawn because Moody's Investors
Service will not have sufficient or otherwise adequate information
to support the maintenance of the credit rating.

Moody's last rating action on Finspace took place on July 20,
2010, when the corporate family rating was affirmed at B1, and the
bond rating was withdrawn because the company's proposed US$ notes
were not issued as planned.

Finspace's rating was assigned based on factors that Moody's
believe are relevant to the risk profile of Finspace, such as 1)
business risk and the competitive position compared with other
firms within the industry; 2) capital structure and financial
risk; 3) the projected performance over the near to intermediate
term; and 4) management's track record and tolerance for risk.
These attributes were compared against other issuers both in and
outside Finspace's core industry; Moody's believes the company's
ratings are comparable with those of other issuers of similar
credit risk.

Finspace S.A., also known as the Canadoil Group, produces
specialized pipes, vessels, and fittings for oil and gas,
chemical, refining, power, water, and infrastructure projects
worldwide.  As a global company that can provide end-customers
one-stop shopping integrated solutions, Finspace is unique.  The
group has manufacturing facilities in Thailand, Canada, and Italy,
with sales offices in Thailand, Korea, Dubai, Canada, and Italy.


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


INTERNATIONAL INDUSTRIAL: S&P Withdraws 'D' Counterparty Ratings
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it has affirmed and
withdrawn its 'D' long-term and 'D' short-term counterparty credit
ratings on Russia-based International Industrial Bank.

Standard & Poor's withdrew the ratings because of a Russian court
ruling that started the liquidation of IIB.  On Nov. 30, 2010, the
Moscow arbitration court declared IIB bankrupt, following a claim
from the Central Bank of Russia.  Subsequently, the court
appointed the Deposit Insurance Agency as a bankruptcy
administrator, which initiated the liquidation proceedings against
IIB.


KHANTY-MANSIYSK JSC: S&P Affirms B+ LT Counterparty Credit Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'B+' long-
term and 'B' short-term counterparty credit ratings on Russia-
based Bank of Khanty-Mansiysk (JSC).  The ratings were then
withdrawn at the bank's request.  The outlook was positive before
the withdrawal.

At the same time, all S&P's ratings on BKM's outstanding debt were
withdrawn.

The rating affirmation reflects S&P's view of the challenging
operating environment in Russia and uncertainties regarding BKM's
privatization.  The ratings benefited from BKM's role for the
Khanty-Mansiysk Autonomous Okrug (BBB-/Stable/--; Russia national
scale 'ruAAA'); good market position in its home region; and
fairly resilient financial profile, with improved liquidity, and
better asset quality indicators than peers," said Standard &
Poor's credit analyst Maria Malyukova.

BKM is one of the largest regional banks, ranking among the top 30
in Russia, with total assets of RUB159 billion (about US$5.3
billion) as of June 30, 2010.  It operates in KMAO, which is one
of Russia's wealthiest regions and accounts for 60% of the
country's oil production.

KMAO decreased its ownership in the bank to 44.2% from 66.3% after
a RUB3.5 billion share issue in 2009 in line with the ongoing
privatization process.  In third-quarter 2010, Nomos Bank (not
rated) announced its plans to acquire a majority stake in BKM and,
in November this year, it purchased a 100% stake in ICT-Capital,
which owns 19.98% of BKM's shares.  Nomos attained another 31.31%
of BKM on Dec. 16, bringing its total stake in BKM to 51.29%.

S&P classify BKM as a government-related entity.  Under S&P's
criteria for GREs, BKM performs an "important" role for KMAO
because of its ongoing servicing of companies linked to KMAO and
its participation in regional investment programs.  S&P considers
the bank's link with KMAO as "limited", reflecting the ownership
stake of 44%.  It remains uncertain whether KMAO will further
reduce its ownership of BKM in line with the ongoing privatization
process.  Given S&P's current view of BKM's role for and link with
KMAO, S&P added one notch of uplift above its assessment of BKM's
stand-alone credit profile to reflect S&P's view that there is a
moderate likelihood that KMAO would provide extraordinary support
in case of need.

"The positive outlook on BKM at the time of the rating withdrawal
reflected S&P's opinion that the market pressures on the bank's
stand-alone credit profile have receded," said Ms. Malyukova.
"This is despite uncertainties regarding the ongoing privatization
process and the lessening of BKM's status as a government-related
entity over a longer term perspective than the rating outlook."


* Fitch Takes Various Rating Actions on Four Russian Banks
----------------------------------------------------------
Fitch Ratings has downgraded CIB Bank Zrt's Long-term Issuer
Default Rating to 'A-' from 'A' and OTP Bank Plc's Support Rating
to '3' from '2'.  The agency has also revised the Outlook of
Kereskedelmi es Hitelbank Zrt's to Negative from Stable and
affirmed the Long-term IDR of Russia-based OJSC OTP Bank's at 'BB'
with a Negative Outlook.  The rating actions follow the recent
downgrade of Hungary's Long-term foreign currency IDR to 'BBB-'
from 'BBB'.  A full list of the rating actions is provided at the
end of this commentary.

The downgrade of CIB's Long-term IDR reflects the downgrade of
Hungary's Country Ceiling to 'A-' from 'A'.  The Long-term IDR of
CIB is currently constrained by the Country Ceiling for Hungary.
The Country Ceiling captures Fitch's view on transfer and
convertibility risks and limits the extent to which support from
the shareholders of these banks can be factored into the banks'
Long-term IDRs.  Both CIB and K&H share the Negative Outlook of
the sovereign's Long-term foreign currency IDR of 'BBB-'.

The IDRs of CIB and K&H reflect the extremely high probability
that support would be provided to by their parents, should this be
necessary.  The Individual Ratings of CIB and K&H remain
unaffected by the rating action.

CIB is fully owned by Italy's Intesa Sanpaolo ('AA-'/Stable).  At
end-Q310, CIB was Hungary's fifth-largest universal bank by total
assets.  The bank has a strong focus on corporate lending, but is
also ranked second by its share in the retail deposit market at
end-Q310.  K&H is fully owned by Belgium's KBC Bank ('A'/Stable).
K&H offers a full range of banking leasing and fund management
services.  Fitch estimates that K&H was the second-largest banking
group in Hungary by total assets at end-Q310.

The downgrade of OTPH's Support Rating reflects the downgrade of
Hungary's Long-term IDR to 'BBB-' and thus lower ability of the
state to provide support to the bank, if required.  However, Fitch
believes that the propensity to support remains unchanged due to
OTPH's importance to the Hungarian banking system and its dominant
share of retail deposits.  OTP, Hungary's largest universal bank
by total assets at end-Q310, has a strong focus on retail
business.  At the same time, it had almost 25% and 30% of the
domestic system assets and deposits respectively.

The Long- and Short-term IDRs and Support rating of OTPR are
driven by potential support from OTPH, which holds a 95.8% stake
in OTPR.  Fitch believes that the parent has high propensity to
support OTPR in case of need, but its ability to do so must be
considered in the context of its own creditworthiness.

The Individual rating of OTPR reflects the improved Russian
operating environment, the recent increase of consumer lending
volumes, the diversification of its funding base, its sound
profitability as well as its moderate asset quality and
capitalization.  At end-Q310 OTPR estimates that loans overdue for
more than 90 days accounted for 16.6% of gross loan portfolio,
which is 82% provisioned.  The statutory capital adequacy ratio at
end-Q310 equaled to only 16.7% but improvement in pre-impairment
profits should help support capitalization in the context of
current asset growth and possible further asset quality
deterioration.  With total consolidated assets of US$3 billion,
OTPR is within the top-50 largest Russian banks at end-Q310 and is
focused on retail lending.

Rating actions are:

CIB

  -- Long-term foreign currency IDR: downgraded to 'A-' from 'A';
     Outlook Negative

  -- Short-term foreign currency IDR: downgraded to 'F2'

  -- Individual Rating: unaffected at 'D'

  -- Support Rating: affirmed at '1'

K&H

  -- Long-term foreign currency IDR: affirmed at 'A-'; Outlook
     revised to Negative from Stable

  -- Short-term foreign currency IDR: affirmed at 'F2'

  -- Individual Rating: unaffected at 'D'

  -- Support Rating: affirmed at '1'

OTPH

  -- Support Rating: downgraded to '3' from '2'

OTPR

  -- Long-term foreign currency IDR: affirmed at 'BB'; Outlook
     Negative

  -- Long-term local currency IDR: affirmed at 'BB'; Outlook
     Negative

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Support Rating: affirmed at '3'

  -- Individual Rating: affirmed at 'D'

  -- National Long-term rating: affirmed at 'AA-(rus)'; Outlook
     Negative


===============
S L O V E N I A
===============


CESTNO PODJETJE: Files for Compulsory Settlement
------------------------------------------------
Georgi Georgiev at SeeNews, citing Matej Justin, an analyst with
Slovenia's Alta Invest, reports that Cestno podjetje Maribor filed
an application for a compulsory settlement on December 31 as the
company is insolvent and their bank accounts have been blocked for
months.

"According to the plan, their creditors should be repaid a third
of their receivables in three years," SeeNews quoted Mr. Justin as
saying.

CPM is a construction company based in Maribor.


MTB: Launches Court-Mandated Debt Restructuring
-----------------------------------------------
STA reports that MTB has filed for court-mandated debt
restructuring.

MTB is a Slovenia-based construction company.


PRIMORJE: Expected to File for Court-Mandated Debt Restructuring
----------------------------------------------------------------
Georgi Georgiev at SeeNews, citing Matej Justin, an analyst with
Slovenia's Alta Invest, reports that Primorje is expected to file
for compulsory settlement shortly.

According to SeeNews, Mr. Justin said the company is not in as bad
a financial position as SCT, Slovenia's biggest construction
company, because it has a lot of unsold residential property.

A TV report said on Dec. 31 that Primorje is to file for court-
mandated debt restructuring, according to STA.

Primorje is a construction company based in Ajdovscina.


STAVBAR GRADNJE: Launches Court-Mandated Debt Restructuring
-----------------------------------------------------------
STA reports that Stavbar Gradnje has filed for court-mandated debt
restructuring.

Stavbar Gradnje is a Slovenia-based construction company.


* SLOVENIA: Analyst Sees Tough Outlook for Construction Sector
--------------------------------------------------------------
Georgi Georgiev at SeeNews, citing Matej Justin, an analyst with
Slovenia's Alta Invest, reports that Slovenia's construction
industry is facing a tough 2011 as major civil infrastructure
projects are completed and the government is keeping public
spending tight.

According to SeeNews, the plight of the sector is further
compounded by the financial woes of some of its heavyweights.

"This year will be very difficult for entire construction sector
as major works on highways have ended.  Given the high level of
budged deficit the government is running, the country simply
cannot afford any big investments," Mr. Justin told SeeNews in an
emailed statement.

Mr. Justin added that there is also a high number of unsold
apartments which has dampened plans for further residential
developments, SeeNews notes.

In the third quarter of 2010, residential property prices in
Slovenia were 0.8% lower than in the previous quarter, SeeNews
discloses.  According to SeeNews, the Slovenian Statistics Office
has said the number of dwellings sold in the three months to
September was rather low both in and outside Ljubljana, the lowest
in the past year.

The value of construction put in place in Slovenia in October 2010
fell 17.6% on the year, SeeNews states.  As regards buildings it
dropped by an annual 16.3% and as regards civil engineering it was
down 18.3%, SeeNews discloses, citing latest official data.


=============
U K R A I N E
=============


* Fitch Raises City of Odessa's Long-Term Currency Ratings to 'B-'
------------------------------------------------------------------
Fitch Ratings has upgraded Ukraine's the City of Odessa's ratings
and removed them from Rating Watch Negative on which they were
placed on December 15, 2010.  The ratings have been assigned
Stable Outlook and simultaneously withdrawn.

The Long-term foreign and local currency ratings were upgraded to
'B-' from 'CC', respectively and the National Long-term rating to
'BBB+(ukr)' from 'B-(ukr)'.  The Short-term foreign currency
rating was also upgraded to 'B' from 'C'.

The ratings were withdrawn as Fitch will not be able to assess
Odessa's credit quality going forward due to insufficient
information.  Accordingly, Fitch will no longer provide ratings or
analytical coverage of the City of Odessa.

The upgrade follows Odessa's timely full repayment of a CHF10
million bank loan provided by BNP Paribas due on December 29,
2010, which Odessa had previously intended to extend by eight
months without changes to the original terms of the agreement.


* S&P Raises Issuer Credit Rating on City of Odessa to 'CCC+'
-------------------------------------------------------------
Standard & Poor's Ratings Services said it raised its long-term
issuer credit rating on the City of Odessa to 'CCC+' from 'CCC-'
and the Ukraine national scale rating to 'uaBB' from 'uaCCC-'.
S&P removed the ratings from CreditWatch, where they had been
placed with negative implications on Dec. 13, 2010.  The outlook
is negative.

The rating action follows Odessa's full and timely repayment on
Dec. 29, 2010, of its foreign currency-denominated bank loan
bullet and the remaining tranche of a 2005 domestic bond issue.

"S&P understands that the debt repayment was made by delaying
other nondebt-related expenditures as well as tapping free cash on
the accounts of one of its government-related entities (GREs), and
without recourse to refinancing and/or debt restructuring, as the
city had initially planned," said Standard & Poor's credit analyst
Karen Vartapetov.

"Nevertheless, S&P notes that Odessa's newly elected management
continues to face a material rise in debt service of up to 20% of
operating revenues in 2012 stemming from the remaining bullet of
its foreign currency-denominated debt due in December 2012," said
Mr. Vartapetov.

S&P's base-case scenario assumes a moderate recovery of revenues
and tight liquidity for Odessa.  This will, in S&P's view, require
Odessa to resort to borrowing from the market as well as the state
budget, leading to tax-supported debt staying above 25% of
operating revenues in 2011-2012.

Odessa's debt repayment needs are exacerbated, in S&P's view, by
its low fiscal flexibility due to Ukraine's evolving
interbudgetary relations and the central government's control of
the city's major revenues and expenditure responsibilities.

"The negative outlook reflects S&P's view of Odessa's high
refinancing risks stemming from still weak budgetary performance,
very weak liquidity, and a hike in debt service of up to 20% of
operating revenues in 2012 to repay its remaining bullet of
foreign currency-denominated bank loan," said Mr. Vartapetov.

S&P could revise the outlook to stable if the city's budgetary
performance improves, enabling it to secure a comfortable cash
cushion, or if the city secures a realistic and viable debt-
refinancing plan to tackle the peak of debt repayments in 2012.


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


CRUISE: 9 Jobs Axed Despite Sir Tom Hunter Deal
-----------------------------------------------
The Courier reports that nine jobs have been lost with the closure
of the Cruise store in Dundee's Overgate despite the firm
concluding a deal with entrepreneur Sir Tom Hunter.

As reported in the Troubled Company Reporter-Europe on January 3,
2010, The Press Association said that entrepreneur Sir Tom Hunter
has bought fashion chain Cruise, which went into administration
earlier in December.  The report related Mr. Hunter has acquired
the ten-store Cruise group from administrators Deloitte for an
undisclosed sum and will continue to trade from all the shops.
The Press Association notes that Cruise was bought by business
restructuring firm Hilco from HBOS in early December, but then
went into administration and was bought by Sir Tom on December 29,
2010.  Sir Tom's spokesman said the move would save around 300
jobs, the report noted.

However, The Courier discloses that the Dundee and Livingston
stores are not being retained and staff was made redundant by
joint administrators John Reid and Lee Manning of Deloitte.

Cruise is a fashion chain in the United Kingdom.


RB FARQUHAR: Owes GBP10 Million to Bank and Trade Creditors
-----------------------------------------------------------
Keith Findlay at Press and Journal reports that new documents
reveal that F.B. Farquhar (Holdings) slid into administration
owing nearly GBP10 million to bank and trade creditors.  The
report relates that the company owed around GBP9.4 million to Bank
of Scotland and GBP491,187 to other organizations and businesses.

The debts are set out in a statement of affairs lodged by the
joint administrators -- Blair Nimmo and Gary Fraser of accountant
and business adviser KPMG -- at Companies House, according to
Press and Journal.

Press and Journal notes that larger creditors include HM Revenue
and Customs, owed GBP330,140, and Aberdeenshire Council, which was
due GBP34,610.50.  More than 30 other creditors are claiming sums
ranging from GBP22 to nearly GBP26,000, the report relates.

As reported in the Troubled Company Reporter-Europe on November 8,
2010, The Scotsman said that the directors of RB Farquhar
(Holdings) and three of its subsidiaries appointed Blair Nimmo and
Gary Fraser of KPMG Restructuring as joint administrators, putting
112 jobs at risk.  According to The Scotsman, the company's hires
and storage divisions, RB Farquhar (Hires) and Simply Self
Storage, which employ 77 and four staff respectively, will
continue to trade as normal while KPMG seeks a buyer.  However, RB
Farquhar (Manufacturing) has stopped trading, though KPMG said "a
number of" remaining contracts were expected to be fulfilled, The
Scotsman related.  It and the holding company employ 31 staff and,
while no redundancies were made, a question mark hangs over those
posts, The Scotsman noted.

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


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


* EUROPE: Debt Markets Could Be Hit by Second Credit Crisis
-----------------------------------------------------------
Harry Wilson at The Telegraph reports that European debt markets
could be hit by a second credit crisis within months as fears grow
over the huge volume of new bonds that must be sold by governments
and banks in 2011.

According to The Telegraph, banks alone must refinance about
EUR400 billion (GBP343 billion) of debt in the first half of the
year, but add in the more than EUR500 billion European governments
must replace over the same period, as well as further hundreds of
billions of euros of mortgage-backed debt maturing and there is
the potential for chaos in the credit markets.

"What we are looking at here clearly has the potential to become a
second credit crunch.  However, this time it would be much worse
than before," The Telegraph quoted Celestino Amore, founder of
IlliquidX, which specializes in trading hard-to-price debt, as
saying.  "Governments have been able to slow down the process, but
the problems did not go away.  There remains trillions of dollars
of debt that must be refinanced or sold."

Mr. Amore predicts a rush to sell assets, much like that which
kicked off the first credit crunch in the summer of 2007, The
Telegraph relates.  However, many fund managers and other large
institutional investors are looking to reduce their exposure to
bonds, leading to warnings that there will not be enough demand to
buy all the debt banks and governments will need to sell, The
Telegraph states.


                            *********

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, Ivy B. Magdadaro, Frauline S. Abangan and
Peter A. Chapman, Editors.

Copyright 2011.  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 * * *