TCREUR_Public/110113.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

           Thursday, January 13, 2011, Vol. 12, No. 9



RADIO 101: Declared Bankrupt; May Shut Down


REXPLO 21: Goes Into Liquidation Amid Sales Difficulties


ALLIED IRISH: Latest Bailout Blamed on Market Deterioration
ANGLO IRISH: PM Under Pressure to Clarify 2008 Funding Crisis
* IRELAND: Urgent Restructuring of Sovereign Debt Needed


DAHLIA TV: Mediaset Eyes Dahlia's TV Soccer Rights


EXIDE TECHNOLOGIES: Moody's Assigns 'B2' Rating to US$675MM Notes


* SPAIN: Banks' Higher Financing Costs to Weigh on Profitability


HURRIYET GAZETECILIK: Fitch Keeps Issuer Default Rating at 'B+'

U N I T E D   K I N G D O M

CONSTAR INT'L: Returns to Ch. 11 to Implement Debt-for-Equity Swap
CONSTAR INT'L: Case Summary & 30 Largest Unsecured Creditors
EMI GROUP: Guy Hands Appeals Ruling in Citigroup Case Over Buyout
HALLIWELLS: Ex-partners Still "at War" Over GBP3MM Rent Guarantee
LEO'S: Formally Dissolved 2 Years After Going Into Administration

ROK PLC: Mears Group Acquires Firm's Bristol Arm for GBP1.5-Mil.


* Upcoming Meetings, Conferences and Seminars



RADIO 101: Declared Bankrupt; May Shut Down
Associated Press reports that Radio 101 has been declared bankrupt
and could be shut down.

AP relates that the Zagreb Commercial Court has ruled that
bankruptcy proceedings should begin, as the station's debt of
HRK25 million (US$4.4 million), greatly exceeds its value.

According to AP, a bankruptcy administrator was appointed Tuesday
and the station will stay on air for a month.  If no one buys it,
its frequency will be given to another station, AP notes.

Radio 101 is an independent radio station based in Zagreb,


REXPLO 21: Goes Into Liquidation Amid Sales Difficulties
Business daily Napi Gazdasag reported that Rexplo 21 Kft is
closing down due to sales and financing difficulties, according to
the Budapest Business Journal.  Rexplo's liquidation was initiated
by creditors and is led by consultant and liquidator company Ceres

BBJ relates that the paper said Rexplo's debts are estimated to
reach up to HUF300 million.  In 2008, the paper added, the company
had a net income above HUF165 million and also hired new staff.
The increasing Chinese competition, however, has hit Rexplo hard
and the company lost HUF30 million of orders by 2009, while
production costs were up, BBJ adds.

Based in Balatonfuzfo, Hungary, Rexplo 21 Kft is a 90-year-old
gunpowder producer company.


ALLIED IRISH: Latest Bailout Blamed on Market Deterioration
Arthur Beesley at The Irish Times reports that EU Competition
commissioner Joaquin Almunia said increased State funding for
Allied Irish Banks plc was the "only available option" after the
National Asset Management Agency's discount on its loans increased
and the sale of its British unit was delayed.

The Irish Times relates that in a letter to Labour MEP Alan Kelly,
Mr. Almunia said the serious deterioration in market perceptions
of Ireland and AIB itself made it "impossible" for the bank to
secure new capital on the markets.

Mr. Kelly, who is standing in the Tipperary North constituency in
the general election, said the Nama was to blame for the latest
AIB bailout.

"What amounts to a saving for the taxpayer by Nama becomes a loss
to the taxpayer as the Government pumps pension funds into banks
that will never return," The Irish Times quoted Mr. Kelly as
saying.  "The Government's failure to identify the problem early
enough resulted in AIB passing the stress test, only for Nama to
come along and see the mess the loan book was in."

According to The Irish Times, the commissioner attributed AIB's
increasing requirement for State capital to developments
"unforeseen" in March last year when the bank passed Irish stress

As reported by the Troubled Company Reporter-Europe Dec. 29, 2010,
The Financial Times said that the Irish government took a further
step towards complete ownership of AIB as it won court approval on
Dec. 23 to inject EUR3.7 billion (US$4.85 billion) into the bank.
Finance Minister Brian Lenihan said the capital injection from the
country's National Pension Reserve Fund would effectively raise
the government's stake to 92.8% in AIB early next year from the
18.6% it holds after last year's investment of EUR3.5 billion,
according to the FT.  The FT noted that while the move had been
widely expected since the broader EUR35 billion European-backed
bail-out of Ireland was concluded at the end of November, it still
leaves AIB needing to raise a further EUR6.1 billion to meet
capital requirements imposed as a condition of the bail-out.

Allied Irish Banks, p.l.c., together with its subsidiaries -- conducts retail and commercial banking
business in Ireland.  It also provides corporate lending and
capital markets activities from its head office at Bankcentre and
from Dublin's International Financial Services Centre.  The Group
also has overseas branches in the United States, Germany, France
and Australia, among other locations.  The business of AIB Group
is conducted through four operating divisions: AIB Bank Republic
of Ireland division, Capital Markets division, AIB Bank UK
division, and Central & Eastern Europe division.  In February
2008, the Group acquired the AmCredit mortgage business in the
Baltic states of Latvia, Lithuania and Estonia.  In September
2008, the Group also acquired a 49.99% shareholding in BACB.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Dec. 22,
2010, Standard & Poor's Ratings Services said that lowered its
rating on Allied Irish Banks PLC's nondeferrable subordinated debt
(lower Tier 2) securities to 'CCC' from 'B'.  S&P said he 'BBB/A-
2' counterparty credit ratings on AIB remain on CreditWatch with
negative implications where they were placed on Nov. 26, 2010.
Issuance guaranteed by the Republic of Ireland (A/Watch Neg/A-1)
is not affected by the rating action.  "The downgrade reflects
S&P's opinion that the likelihood of a liability management
exercise by AIB in respect of its lower Tier 2 instruments has
increased.  If the bank announces an exchange offer, S&P would
expect to characterize it as a "distressed exchange," said
Standard & Poor's credit analyst Nigel Greenwood.

ANGLO IRISH: PM Under Pressure to Clarify 2008 Funding Crisis
John Murray Brown at The Financial Times reports that Brian Cowen,
Ireland's prime minister, is under mounting pressure to clarify
what he knew about the funding crisis facing Anglo Irish Bank,
which led to the government's decision to offer a blanket
guarantee to all six Irish lenders in September 2008.

According to the FT, the Fine Gael and Labour opposition parties
say there are important inconsistencies in Mr. Cowen's original
statement to parliament and claims by Sean Fitzpatrick, the former
Anglo Irish chairman, of previously undisclosed contacts with the
prime minister in the run-up to the crisis.

The FT relates in a statement issued late on Monday, Mr. Cowen
confirmed that he took a phone call from Mr. Fitzpatrick in March
2008 when he was still finance minister and at a time when Anglo
Irish shares were being targeted by short sellers in what local
traders dubbed the "St Patrick's massacre".  He also confirmed he
had played golf with Mr. Fitzpatrick in July that year but
insisted this was a "social outing in full public view", and he
was "quite clear" no discussion about Anglo Irish Bank had taken
place, the FT notes.

Mr. Cowen described as "malicious" and "unfounded" the allegations
that he had acted inappropriately, the FT states.

Anglo Irish Bank was nationalized in January 2009, after incurring
huge losses on its loan book as a result of the property crash,
the FT recounts.  The government is committed to winding down the
bank but in the meantime has had to pump in close to EUR30 billion
(US$38.8 billion) in fresh capital or close to two-thirds of the
amounts provided to the Irish banks by the taxpayer in the current
crisis, the FT discloses.

                      About Anglo Irish Bank

Anglo Irish Bank Corp PLC --
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 Dec. 1,
2010, DBRS downgraded the ratings of the Euro Dated Subordinated
Notes (specifically the EUR325.2 million Floating Rate
Subordinated Notes due 2014, EUR500 million Callable Subordinated
Floating Rate Notes due 2016 and the EUR750 million Dated
Subordinated Floating Rate Notes due 2017) (collectively referred
to as the 2017 Notes) issued by Anglo Irish Bank Corporation
Limited (Anglo Irish or the Bank) to 'D' from 'C'.  DBRS said the
downgrade follows the execution of the Bank's note exchange offer.
The default status for the exchanged and now-extinguished 2017
Notes reflects DBRS's view that bondholders were offered limited
options, which, as discussed in DBRS's press release dated
October 25, 2010, is considered a default per DBRS policy.

On Oct. 29, 2010, the Troubled Company Reporter-Europe reported
that Standard & Poor's Ratings Services lowered its rating on
Anglo Irish Bank Corp. Ltd.'s non-deferrable 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.

* IRELAND: Urgent Restructuring of Sovereign Debt Needed
Laura Slattery at The Irish Times reports that Willem Buiter,
chief economist at Citigroup, said Ireland should restructure its
banks and perhaps its sovereign debt "as quickly as possible" to
avoid a "crisis overhang trap."

According to The Irish Times, Mr. Buiter said restructuring of
both the banking sector and sovereign debt was "the likely
eventual option" in a number of countries.  Mr. Buiter, as cited
by The Irish Times, said Ireland is likely to become the first
European state to go down this route.

The Irish Times relates Mr. Buiter said that he expected that, if
Fine Gael and Labour were to form the next government, they would
introduce an element of burden-sharing for senior unsecured
creditors "quite soon after they come into office", unless
persuaded otherwise by the European Central Bank, the European
Commission and the International Monetary Fund.

The Irish "won't wait" until there is a Europe-wide special
resolution regime, which could take until 2014 to implement, The
Irish Times states.

"The political pressures to let the creditors of the banks and
indeed the creditors of the Government share the pain that
taxpayers and the beneficiaries of public spending have felt for
this two years-plus now is going to be very hard to resist," The
Irish Times quoted Mr. Buiter as saying.


DAHLIA TV: Mediaset Eyes Dahlia's TV Soccer Rights
Reuters reports that Italian broadcaster Mediaset said it would
consider buying TV soccer rights from Dahlia TV should the
opportunity arise in the liquidation of its smaller pay-TV rival.

Reuters relates that loss-making Dahlia's shareholders on Monday
mandated a receiver to prepare a liquidation plan shortly.

"I don't know.  We'll think about it," Reuters quoted Mediaset
Chairman Fedele Confalonieri as saying.

According to Reuters, Mediaset, controlled by Prime Minister
Silvio Berlusconi, is competing aggressively with market leader
Sky Italia, a unit of Rupert Murdoch's News Corp, for pay-TV
audiences in Italy, a market worth more than EUR4 billion.

Based in Italy, Dahlia TV is a pay-TV operator with sports and
adult content programs.  Dahlia is 78.2% controlled by Airplus TV,
whose investors include Sweden's Investor AB.  Telecom Italia
Media has 10.1% in Dahlia.


EXIDE TECHNOLOGIES: Moody's Assigns 'B2' Rating to US$675MM Notes
Moody's Investors Service assigned a B2 rating to Exide
Technologies' proposed US$675 million of senior secured notes and
affirmed the B3 Corporate Family and Probability of Default
Ratings of Exide.  In a related action, the ratings on the
company's existing debt were affirmed and will be withdrawn upon
repayment from the net proceeds of the new senior secured note.
The rating outlook is positive.

The US$675 million of new senior secured notes will mature in
2018.  The net proceeds from the proposed notes will be used to
repay Exide's existing senior secured term loans, redeem the
outstanding 10.5% senior secured junior-lien notes, and for
general corporate purposes.  The consummation of the notes
offering is expected to be conditioned upon the company
concurrently entering into a new US$200 million senior secured
asset-based revolving credit facility, as well as other customary

Ratings assigned:

Exide Technologies

* B2 (LGD3 33%) to the new US$675 million of senior secured notes
   due 2018;

Ratings affirmed:

Exide Technologies

* B3, Corporate Family Rating;
* B3, Probability of Default Rating;

Positive Rating Outlook

* Ba2, to the existing US$200 million asset based revolving
   facility, this rating will be withdrawn upon replacement;

* B3 (LGD3, 45%), to the US$290 million of senior secured junior-
   lien notes due March 2013, this rating will be withdrawn upon

Exide Technologies and its foreign subsidiary Exide Global
Holdings Netherlands CV:

* Ba3 (LGD2, 17%), to the US$130 million senior secured term loan
   at Exide Technologies, this rating will be withdrawn upon

* Ba3 (LGD2, 17%), to the US$165 million senior secured term loan
   at Exide Global Holdings Netherlands CV, this rating will be
   withdrawn upon repayment.

Exide's B3 Corporate Family Rating continues to incorporate the
company's leveraged profile, cyclical industry characteristics,
and raw material pricing pressure.  Upon completion of the
discussed refinancing, Debt/EBITDA will increase slightly to about
5.0x from about 4.6x, pro forma for the LTM period ending
September 30, 2010.  Approximately 65% of Exide's revenues are
derived in the transportation segment with about 85% of this
business related to the more stable replacement aftermarket.

However, the remainder of Exide revenues are affected by the
cyclical industrial industries in Europe and ROW and North
America.  The ratings benefit from most of Exide's North American
lead requirements being supplied by owned lead recycling plants.
However, the company's European operations are largely supplied
through third parties, exposing the company to increasing lead
prices.  The rating also incorporates the challenges the company
faces to replace lost business to competitors with profitable
relationships with new customers.

The positive rating outlook reflects Moody's expectation of
generally improving global economic conditions, particularly in
the U.S., combined with Exide's improved cost structure following
prior year restructuring actions, and the company's ability to
mitigate raw material cost through price escalating arrangements
with its OEM customers and other pricing action.  These factors
along with additional business should generate improving credit
metrics over the intermediate-term.

Exide's liquidity as of September 30, 2010 consisted of cash of
approximately US$77.4 million and US$126.6 million of availability
under the existing US$200 million asset based revolving credit
facility maturing May 2012.  Upon completion of the proposed note
offering Exide's cash balances are expected to increase by about
US$73 million.  Moody's anticipates that Exide will generate
breakeven to modestly positive free cash flow over the next twelve
months as global economies recover.  Exide's existing credit
agreement does not contain any financial maintenance covenants,
although a springing fixed charge covenant of 1.0x becomes
effective if availability under the asset based revolving credit
facility falls below US$40 million.  Moody's does not anticipate
availability falling below this level over the next twelve-month
period.  The new senior secured notes are not expected to have
financial maintenance covenants and the new asset based revolving
credit facility is expected to have financial covenants similar to
the existing facility. The proposed senior secured notes and asset
based revolving credit facility are expected to have similar

The last rating action was on August 13, 2010, when the B3
Corporate Family rating was affirmed.

Exide Technologies' existing US$60 million floating rate
convertible subordinated note due September 2013 is not rated by

Future favorable rating events include further operational
improvements resulting in higher margins and cash flow, and the
achievement of debt reduction.  Consideration for upward rating
migration would arise if any combination of these factors were to
increase EBIT/interest coverage consistently over 1.7x and result
in leverage approaching 4.0x.

Future events that have the potential to lower Exide's outlook or
ratings include lower global demand in the company's end markets,
an inability to manage commodity cost fluctuations, lower
operating performance due to the inability to offset lower demand
with restructuring savings, market share losses, or a more
competitive pricing environment.  Consideration for a lower
outlook or rating also could result from a deteriorating liquidity
profile, or EBIT/interest coverage consistently below 1.0x.

The principal methodologies used in this rating were Global
Automotive Supplier Industry published in January 2009, and Loss
Given Default for Speculative-Grade Non-Financial Companies in the
U.S., Canada and EMEA published in June 2009.

Exide, headquartered in Milton, GA, is one of the largest global
manufacturers of lead acid batteries.  The company manufactures
and supplies lead acid batteries for transportation and industrial
applications worldwide.  Revenues for the fiscal year ending
March 31, 2010, were US$2.7 billion.


* SPAIN: Banks' Higher Financing Costs to Weigh on Profitability
Charles Penty at Bloomberg News reports that Spanish banks have
more than EUR30 billion (US$39 billion) in debt coming due in the
next four months.  Bloomberg says that's spurring investor doubt
on the bank's future profitability as higher financing costs eat
into margins.

According to Bloomberg, concern that Spain won't be able to reduce
the euro region's third-highest budget deficit and avoid a
European Union bailout has driven up financing expenses for banks.

"I'm not expecting financing conditions will ease for Spanish
banks any time soon and that will just mean more pressure on
revenue and margins," Bloomberg quoted Peter Braendle, who helps
manage about US$62 billion, including shares of Banesto's parent
Banco Santander SA, at Swisscanto Asset Management in Zurich, as
saying.  "It looks like an already tough environment will just get

Spanish lenders have boosted deposit-taking from customers and
reined in lending in a bid to blunt their need for wholesale
financing, Bloomberg relates.  This year the country's banks have
a total of about EUR85 billion of debt that's coming due for
refinancing, data compiled by Bloomberg show, Bloomberg notes.

Spanish lenders are already contending with losses on loans to
property developers and real-estate assets taken on their books
during the property crash, Bloomberg discloses.  Moody's estimated
on Dec. 13 that banks had recognized only half of the estimated
EUR176 billion of losses they will have to absorb on their loans.

Rising speculation that Portugal may need a bailout from the EU is
also on weighing on financing costs for Spanish banks, Bloomberg
notes.  Lenders in Spain had US$78 billion in foreign claims
relating to the neighboring country in June last year, Bloomberg
says, citing the Bank for International Settlements.

According to Bloomberg, Zoso Davies, a credit strategist at
Barclays Capital in London, said a prolonged period of high
funding costs will fuel concern that profit growth will slow as
lenders trim lending and some banks may risk going bankrupt.

"If funding costs stay at current levels for a long period,
solvency is really the underlying issue," Bloomberg quoted
Mr. Davis as saying.


HURRIYET GAZETECILIK: Fitch Keeps Issuer Default Rating at 'B+'
Fitch Ratings is maintaining Hurriyet Gazetecilik ve Matbaacilik
A.S.'s, a newspaper subsidiary of Dogan Yayin Holding AS (DYH,
'B'/RWN), Long-term foreign and local currency Issuer Default
Ratings of 'B+' on Rating Watch Negative.  Hurriyet's National
Long-term rating of 'A(tur)' also remains on RWN.

The maintained RWNs are related to Hurriyet's exposure to DYH
group-wide risks that is a credit constraint on its ratings given
the rating linkage between the company and DYH.  However, Fitch
sees Hurriyet as a stronger entity than DYH on a stand-alone basis
given its strong market position as Turkey's leading national
newspaper and robust cash flow generation.  This is despite the
structural decline of the newspaper industry which is expected to
have an adverse effect on Hurriyet's revenues over the next five
to 10 years.

Hurriyet's Long-term IDRs are rated one-notch above the IDRs of
its parent company, Dogan Yayin Holding AS.  On a stand-alone
basis, Hurriyet's ratings would be higher but they are constrained
by the linkage with DYH.  These linkages include Hurriyet being
DYH's main operating subsidiary and the key driver of DYH's
creditworthiness, and management overlap.  This is despite weak
links between DYH and Hurriyet due to inherent dividend
restrictions.  Although DYH's guarantee over Hurriyet's debt only
relates to the acquisition of TME, Hurriyet does not provide any
cross-guarantees for other DYH group companies.  This approach is
consistent with Fitch's Parent and Subsidiary Rating Linkage
criteria, and results in the one notch differential between
Hurriyet's and DYH ratings.

A downgrade or upgrade of DYH's rating would have direct
implications for Hurriyet's ratings.  A reduction of consolidated
net debt/EBITDA to less than 2x as a result of stronger free cash
flow (FCF) generation and higher EBITDA margins -- would also be
positive for the ratings.

The ratings also reflect Hurriyet's proven strong FCF generation
capability, improved EBITDA margins at 9M10 in line with the pick-
up in the ad market and its leading newspaper market position.
The company has a 12.5% share of daily newspaper sales in Turkey
and 37% of domestic newspaper advertising revenue.  Hurriyet's FCF
generation has remained strong despite historically low EBITDA
margins.  The company is not expected to pay any dividends before
2012, as it concentrates on generating FCF and reducing
consolidated leverage following an increase in leverage metrics to
well above historical levels in 2008-2009.  Fitch expects the
company to report consolidated net debt of less than 2.2x at end-

Hurriyet faces limited competition due to the oligopolistic nature
of the local market, but Fitch notes the underlying trend of
falling circulation and the declining share of newspapers in total
ad market spending relative to TVs and internet since 2008.  Fitch
expects this trend to continue in the medium-term as internet
increases its share in ad spending to double digits from the
current 5%. Fitch also notes that Hurriyet's international
subsidiary TME faces pricing pressure and serious competition over
the long term from internet, mainly from Russia.  Therefore, a
further decline in TME's revenues and possibly margins is in

U N I T E D   K I N G D O M

CONSTAR INT'L: Returns to Ch. 11 to Implement Debt-for-Equity Swap
Constar International Inc. and its affiliates filed for Chapter 11
protection on January 11, 2011 (Bankr. D. Del. Case No. 11-10109),
with a Chapter 11 plan negotiated with 75% of noteholders.

Constar reached an agreement with the holders of more than 75% of
its Senior Secured Floating Rate Noteholders regarding the terms
of a consensual restructuring transaction that will significantly
deleverage its balance sheet.

A subgroup of the Noteholders have also committed to provide
US$55 million of debtor-in-possession financing to permit the
Company to continue to operate in the ordinary course of business
during the pendancy of its restructuring, which will take place
through implementation of a pre-arranged chapter 11 case.  In
addition, Constar has obtained a commitment from Wells Fargo
Capital Finance, LLC, for a working capital facility that will
come into existence upon Constar's emergence from chapter 11,
anticipated to be early in the second quarter of 2011.

The restructuring plan calls for, among other things, a reduction
of the Company's current debt level of US$220 million by roughly
US$135 million to US$150 million, with a significant corresponding
reduction in cash interest.

All of Constar's global operations -- including all of
manufacturing and distribution facilities in the U.S. -- are open
and operating on normal schedules, and the Company expects to
continue to fulfill all customer orders as provide uninterrupted
customer service.

Grant Beard, President and CEO of Constar, said in a January 11
press release, "Today we have announced a significant step forward
for Constar.  Having received the support from the holders of
approximately 75% of our Noteholders for a pre-arranged and
consensual restructuring, we will significantly improve our
balance sheet.  Upon emergence from reorganization, we will carry
new term debt of not more than US$85 million and commensurately
reduce annual cash interest obligations.  This is noteworthy in
that it frees up cash to reinvest in our business to support
future growth.  We intend to continue to operate as usual during
the restructuring process with minimal disruption to the

                     2nd Stint in Chapter 11

Constar International is seeking Chapter 11 reorganization for the
second time in about two years.

J. Mark Borseth, chief financial officer for Constar, recounts in
a court filing that in the fall of 2008, Constar determined that
it had more leverage than its then-current operations could
support.  Accordingly, it negotiated pre-arranged Chapter 11 plan,
which among other things, (a) provided for the conversion of the
Senior Subordinated Notes into all of the equity of the
reorganized entities, excluding those shares reserved for
Constar's management, while (b) leaving the Debtors' trade vendors
and the holders of the Senior Secured FRNs unimpaired.  The
Debtors launched the approval process for the Plan by filing for
Chapter 11 in Delaware on December 30, 2008.  The Plan was
confirmed on May 14, 2009, and became effective on May 29, 2009.

Mr. Borseth relates that over the past 18 months, demand for
Constar's conventional PET products has decreased significantly
due to a shift to self-manufacturing by Pepsi-Cola Advertising and
Marketing, Inc., which has notified Constar of its intention to
increase its self-manufacturing of conventional containers and,
consequently, to reduce its requirements for bottles under its
supply agreement with Constar.  The Company expects the trend of
self-manufacturing of containers for carbonated soft drinks to
continue, and that, over time, a transition to more and more self-
manufacturing of plastic bottles at locations with high
transportation costs, large volume and space to install blow-
molding equipment will occur.  In addition, sales volumes have
continued to decline generally and Constar has not been able to
offset decreases to conventional PET business by increasing its
custom business.  As a result of these and other factors,
Constar's liquidity has been constrained, which has caused certain
vendors to require that Constar pay for purchases in advance, upon
delivery, or on shortened credit terms, or to require letters of
credit, further constraining liquidity.  These liquidity
constraints have created customer concern about the Company's long
term viability, which has made it difficult to renew contracts or
obtain new business.

In July 2010, the Debtors retained Greenhill & Co., LLC as its
financial advisor to assist in exploring strategic alternatives
and entered into discussions with certain holders of the Senior
Secured FRNs.  On January 7, 2011, the Debtors and the
Consenting Noteholders reached an agreement in principle on the
terms of a restructuring whereby Constar and certain of its
subsidiaries would file prearranged chapter 11 bankruptcy cases
(a) designed to convert most of the Senior Secured FRN
indebtedness into equity -- leaving those holders with only a
relatively modest amount of new debt -- and (b) providing for the
Company's quick emergence from chapter 11 on this further
deleveraged basis.

                 Restructuring Support Agreement

The Debtors and the holders of at least two thirds of the
principal amount of the Senior Secured FRNs subsequently entered
into a restructuring support and lock-up agreement.  The
Restructuring Support Agreement attaches and incorporates the
Debtors' proposed Plan, which incorporates the restructuring
contemplated by the Debtors' initial agreement with the Consenting
Noteholders.  The RSA provides that as long as the agreement is in
effect, the holders of the Senior Secured FRNs that are parties to
the RSA will support the proposed Plan, including by timely
executing and delivering ballots accepting the Plan.

The RSA further provides that the agreement may be terminated upon
material breach of the agreement or the Debtors' failure to:

   -- file a Chapter 11 petition by January 14, 2011;

   -- obtain approval of the DIP financing within 35 calendar days
      after the Petition Date;

   -- obtain approval of the Disclosure Statement within
      45 calendar days from the Petition Date;

   -- obtain approval to set a bar date for proofs of claim within
      65 calendar days after the Petition Date;

   -- begin soliciting votes in connection with the Plan no later
      than 65 calendar days after the Petition date;

   -- obtain order confirming the Plan no later than 130 days
      after the Petition Date; and

   -- consummate the Plan no later than 145 calendar days after
      the Petition Date.

A copy of the Plan Support Agreement is available for free at:

                 Pre-Arranged Chapter 11 Plan

As of the Petition Date, the Debtors had outstanding debt in the
aggregate principal amount of roughly US$251 million, consisting
primarily of roughly (a) US$29.4 million under their senior
secured credit facility, including accrued and unpaid interest,
and (b) US$221.4 million in secured floating rate notes due 2012
(including accrued interest).  Additionally, Debtors had certain
amounts outstanding to Debtors' trade creditors, including
vendors, service providers and contract counterparties, as of the
Petition Date.  The Debtors estimate that, after entry of approval
of all first day motions and critical vendor requests, less than
US$18 million in unpaid, unsecured debt will remain for treatment
under the Plan.

Pursuant to the proposed Plan of Reorganization, Noteholders will
convert 100% of the face amount of the current notes into new term
debt in the face amount of US$70 million and convertible preferred
stock of US$30 million, and will become the majority owners of the
new common stock.  Under the proposed plan, the Company's general
unsecured claims will be converted to equity, and the current
equity will be cancelled.  The Company anticipates that the
restructuring will be completed by late spring of 2011, subject to
court approval.

The Reorganized Debtors will emerge with roughly 60% less funded
debt, after giving effect to the restructuring transactions
contemplated by the Plan, which include the following:

   * US$15 million of indebtedness under the Debtors' DIP Facility
     may be rolled over (at the DIP Facility Providers' election)
     into the financing available to the Debtors post-emergence;

   * US$100 million of secured indebtedness under the Floating
     Rate Notes and Floating Rate Note Indenture will be converted
     into (i) US$70 million in Shareholder Notes, and (ii) 100% of
     the New Overage Securities;

   * The remaining US$121.4 million of indebtedness under the
     Floating Rate Notes and Floating Rate Note Indenture and all
     other General Unsecured Claims will be converted into 100%
     of the New Common Stock (subject to dilution by the
     Management Incentive Plan), which New Common Stock will be
     distributed to the Holders of such Claims Pro Rata; and

   * Existing Equity Interests in Constar will be extinguished.

The consummation of the financial restructurings contemplated
by the Plan will significantly de-lever the Debtors' capital
structure, leaving the Reorganized Debtors with roughly
US$90 million in funded debt.  As a result of the restructuring
transactions contemplated by the Plan, the Holders of Debtors'
Floating Rate Notes will own all of the New Overage Securities and
substantially all the New Common Stock in Reorganized Constar,
subject to dilution by shares of the New Common Stock issued in
connection with the Management Incentive Plan.

A copy of the Pre-Arranged Plan is available for free at:

A copy of the disclosure statement explaining the Plan is
available for free at:

                      About Constar Int'l

Philadelphia, Pennsylvania-based Constar International Inc.
(NasdaqCM: CNST) -- is a global
producer of polyethylene terephthalate plastic containers, with
more than 850 employees and operations in the United States and
Europe.  Constar produces PET plastic containers for conventional
PET applications, such as for soft drinks and water, and custom
PET containers designed for food, juices, teas and sport drinks.

Constar is the parent of four wholly owned subsidiaries: BFF Inc.,
a Delaware corporation, DT, Inc., a Delaware corporation, Constar,
Inc., a Pennsylvania corporation, and Constar Foreign Holdings,
Inc., a Delaware corporation.  Constar Foreign Holdings, in turn,
is the parent of three wholly owned foreign subsidiaries: Constar
International Holland (Plastics) B.V., a Dutch besloten
vennootschap, Constar Plastics of Italy S.r.l., an Italian societa
responsabilita limitata, and Constar International U.K. Limited, a
United Kingdom limited company.

Constar, together with its affiliates, first filed a pre-arranged
chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 08-13432) on
December 30, 2008.  The pre-negotiated plan was designed to reduce
Constar's debt load by roughly US$175 million and reduce its
annual interest obligations by nearly US$20 million.  Attorneys at
Bayard, P.A., acted as the Debtors' counsel in the Chapter 11
cases, and attorneys at Wilmer Cutler Pickering Hale and Dorr LLP
served as co-counsel.  Goodwin Procter LLP, and Young Conaway
Stargatt & Taylor LLP acted as the Official Committee of Unsecured
Creditors' bankruptcy counsel.

In the second chapter 11 case, the Company's financial advisor is
Greenhill & Co. and its legal advisor is Wilmer Cutler Pickering
Hale and Dorr LLP.  The Ad Hoc Group of Noteholders is represented
by Kirkland & Ellis LLP.  Wells Fargo Capital Finance, LLC is
represented by Otterbourg, Steindler, Houston & Rosen, P.C.
Kurtzman Carson Consultants is the claims and notice agent.

The Company listed US$418 million in assets and US$414 million in
debt as of Sept. 30, 2010.

CONSTAR INT'L: Case Summary & 30 Largest Unsecured Creditors
Debtor: Constar International Inc.
        One Crown Way
        Philadelphia, PA 19154

Bankruptcy Case No.: 11-10109

Debtor-affiliates filing separate Chapter 11 petitions:

     Entity                                Case No.
     ------                                --------
     BFF, Inc.                             11-10104
     Constar Foreign Holdings, Inc.        11-10105
     Constar, Inc.                         11-10106
     Constar International U.K. Limited    11-10107
     DT, Inc.                              11-10108

Type of Business: Constar International Inc. is a producer and
                  supplier of polyethylene terephthalate plastic
                  containers for food and beverages.

                  Web site:

Chapter 11 Petition Date: January 11, 2011

Bankruptcy Court: U.S. Bankruptcy Court
                  District of Delaware (Delaware)

Bankruptcy Judge: Christopher S. Sontchi

Counsel:          Jamie Lynne Edmonson, Esq.
                  Neil B. Glassman, Esq.
                  BAYARD, P.A.
                  222 Delaware Avenue
                  Wilmington, DE 19801
                  Tel.: 302-429-4234
                  Fax : 302-658-6395



Advisor:           GREENHILL & CO. LLC


Total Assets: US$418,000,000 as of Sept. 30, 2010

Total Debts: US$414,000,000 as of Sept. 30, 2010

The petition was signed by Grant H. Beard, president and chief
executive officer.

Debtor's List of 30 Largest Unsecured Creditors:

Entity/Person                   Nature of Claim     Claim Amount
-------------                   ---------------     ------------
DAK Americas LLC                Trade Vendor        US$9,087,743
5925 Carnegie Blvd
Ste 500
Charlotte, NC 28209

M&G Polymer USA LLC             Trade Vendor        US$4,218,780
Bank of America Rece
Lockbox 402479
College Park, GA 30349

UAB Indorama Poly               Trade Vendor        US$1,833,809
Klaipeda Free Economic Zone
Metalo G.16
Klaipeda, LT-94102

Starpet Inc                     Trade Vendor        US$1,291,676
PO Box 32101
Charlotte, NC 28232-2101

Eddie Stobart Ltd               Trade Vendor          US$423,236
Solway Business Centre
Carlisle, Cumbria CA6 4BY

Obrist Closures                 Trade Vendor          US$413,427
Romerstrasse 83
Reinach, CH-4153

Independence Administrator      Trade Vendor          US$407,623
720 Blair Mill Road
Horsham, PA 19044

Progress Energy                 Trade Vendor          US$296,647
PO Box 2041
Raleigh, NC 27602

Prologis                        Trade Vendor          US$236,842

Georgia Power Company           Trade Vendor          US$207,071

Constar International           Trade Vendor          US$202,143

Mitsubishi Gas Chemical C       Trade Vendor          US$198,544

Colormatrix Corporation         Trade Vendor          US$175,155

Hurricane Associates LLS        Trade Vendor          US$158,624

American Express Company        Trade Vendor          US$150,637

Custom Polymers Pet, LLC        Trade Vendor          US$124,502

Smurfit Kappa (Ex)              Trade Vendor          US$109,015

Fostag Formenbau                Trade Vendor           US$98,079

Lanxess Corporation             Trade Vendor           US$90,747

Samuel Strapping Systems        Trade Vendor           US$83,300

International Paper             Trade Vendor           US$80,300

Kathy Sheeler-County Trea       Trade Vendor           US$80,250

Ameren Energy Marketing         Trade Vendor           US$75,068

Allied Staffing LLC             Trade Vendor           US$68,990

Prime Investments Inc           Trade Vendor           US$65,064

Husky IMS                       Trade Vendor           US$60,919

Patriot Alsip-Tech Center       Trade Vendor           US$55,936

Lotte Chemical                  Trade Vendor           US$51,668

Sidel Incorporated              Trade Vendor           US$50,110

GE Capital                      Trade Vendor           US$46,033

EMI GROUP: Guy Hands Appeals Ruling in Citigroup Case Over Buyout
Martin Arnold at The Financial Times reports that Terra Firma boss
Guy Hands has launched an appeal against a US court ruling that
acquitted Citigroup of all charges over his ill-fated takeover of
EMI Group.

According to the FT, Mr. Hands' appeal, which is expected to focus
on the technical aspects of the case, is likely further to damage
relations between Terra Firma and Citigroup just a few months
before they tussle for control of EMI.

Mr. Hands is appealing on all four original counts against
Citigroup -- tortious interference with prospective economic
advantage, fraudulent concealment, negligent misrepresentation and
fraudulent misrepresentation -- even though three were thrown out
before the trial ended, leaving the jury to deliberate only on the
final one, the FT discloses.

The appeal process, expected to take about 18 months, is unlikely
to be as high-profile as the original trial because the principal
witnesses -- including Mr. Hands and David Wormsley, his former
Citigroup adviser -- will not be called to testify, the FT says.

EMI is in danger of breaching the terms of its GBP3 billion
(US$4.7 billion) of loans from Citigroup unless Terra Firma
injects at least GBP100 million of fresh equity after a covenant
test in April, the FT states.  But investors in Terra Firma say
they are unlikely to provide more money, meaning that EMI could
default on its debt, the FT notes.  This would allow Citigroup to
take control of EMI through a debt-for-equity swap and sell it to
a rival, such as Warner Music, or BMG Music Publishing, a joint
venture between Bertelsmann and Kohlberg Kravis Roberts, according
to the FT.

As reported by the Troubled Company Reporter-Europe on Nov. 8,
2010, The Financial Times said Citigroup won its courtroom battle
with Mr. Hands over the GBP4.2-billion buy-out of EMI in 2007.
The FT disclosed a New York jury found unanimously for the bank at
the end of a three-week trial that had seen the British private
equity investor trade allegations with Mr. Wormsley.

On Oct. 21, 2010, the Troubled Company Reporter-Europe, citing the
FT, reported that Mr. Hands told a New York court on Oct. 19 that
it would not have bid for EMI Group in a 2007 auction had it not
been for the alleged advice of a Citigroup banker.  The FT
disclosed Mr. Hands alleged that Mr. Wormsley encouraged Terra
Firma to enter the race for the music company even though the
private equity group preferred to avoid auctions.

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

HALLIWELLS: Ex-partners Still "at War" Over GBP3MM Rent Guarantee
Ben Schofield at Liverpool Daily Post reports that former
Halliwells partners remain locked in a legal dispute more than six
months after the firm plunged into administration.  The report
relates that the former partners are arguing over who should pick
up the cost of a GBP3 million rent guarantee signed by four of the
firm's partners for one of its former Manchester offices.

An LDP Legal source close to the arbitration revealed around a
dozen partners has agreed to settle, but up to 17 remain
entrenched, according to Liverpool Daily Post.  The report relates
the source said that those who have agreed to settle formerly
worked at the firm's Spinningfields office, in Manchester.

Liverpool Daily Post notes that when news of the dispute first
came to light in September last year, a "war" between the partners
was predicted, although hopes of an "old English compromise"

The guarantee was signed when the firm vacated its St James Court
offices on Manchester's Brown Street in 2005, the report recounts.

Two years later, Liverpool Daily Post relates, it moved into
Spinningfields.  A deal with the property's landlord saw the
firm's Manchester-based equity partners pick up a share of a
multi-million pound cash windfall, the report says.

Liverpool Daily Post discloses that the source told LDP Legal:
"Some people have settled, not out of merit but the practicality
that they want to get on with their lives.  The Spinningfields
partners -- the ones that took the massive premium -- they are the
ones who have settled.  It's the non-Spinningfields who have not
settled.  Part of it is that if you move out of one premise to
another and you take GBP28.4 million, you don't leave a personal
liability on your old lease.  It's a bit harsh for someone who's
not the beneficiary of a transaction to be left with all the

The source said it is yet to be agreed that all the partners are
liable for the guarantee, Liverpool Daily Post adds.

Halliwells is a law firm based in Manchester.

LEO'S: Formally Dissolved 2 Years After Going Into Administration
Lancashire Telegraph reports that Leo's has been formally
dissolved, two years after it was placed into administration.

The company collapsed in October 2008 and more than 40 people were
made redundant, according to Lancashire Telegraph.

The report notes that a new firm, Holt's of Cherry Tree, now
operates from the premises, while the company founder's sons have
opened Carpets and Flooring by Leo in Whalley New Road, Roe Lee.

Loe's is a historic Blackburn carpet firm.  It was founded by
businessman Leo Flood and was based in Preston Old Road, Cherry
Tree, for almost 40 years.

ROK PLC: Mears Group Acquires Firm's Bristol Arm for GBP1.5-Mil.
Evening Post reports that building firm Mears picked up the
Bristol arm of ROK Plc for just GBP1.5 million.  The report
relates that following ROK Plc went into administration, a big
question was left over its contracts with Bristol City Council.

The firm was halfway through a GBP37 million deal with the council
to refurbish flats in north Bristol and work came to a complete
halt on the scheme until Mears stepped in, according to Evening
Post.  The report relates that it also emerged Mears will take
over the contract for maintenance of council flats in Tower
Hamlets from Bristol firm Mitie, which previously held the
contract across the east London borough.  The initial contract
covering 21,000 properties is worth GBP60 million over five years,
with the option of a further five-year extension, the report

Evening Post says that as part of the deal with Bristol City
Council, Mears agreed to safeguard the jobs of 100 staff who
worked in Bristol.

ROK, which had offices in St. Werburgh's and Pill, was halfway
through major contracts with Bristol City Council and Merlin
Housing Society in South Gloucestershire, Evening Post discloses.

Details of the rescue package emerged after Mears made an
announcement to the London Stock Exchange, Evening Post cites.

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

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Nov. 10,
2010, Wiltshire Times said Rok Plc and Rok Building Limited went
into administration and Robert Hunt, Michael Jarvis, and Robert
Lewis and Jeremy Webb, all of PricewaterhouseCoopers, were
appointed as joint administrators.


* Upcoming Meetings, Conferences and Seminars

January 26-28, 2011
    TMA Distressed Investing Conference
       Aria Las Vegas

Jan. 27-28, 2011
    Rocky Mountain Bankruptcy Conference
       Westin Tabor Center, Denver, Colo.
          Contact: 1-703-739-0800;

Feb. 3-5, 2011
    Caribbean Insolvency Symposium
       Westin Casuarina Resort & Spa, Grand Cayman Island
          Contact: 1-703-739-0800;

Feb. 24-25, 2011
       Four Seasons Las Vegas, Las Vegas, Nev.
          Contact: 1-703-739-0800;

Mar. 4, 2011
    Bankruptcy Battleground West
       Hyatt Regency Century Plaza, Los Angeles, Calif.
          Contact: 1-703-739-0800;

Mar. 7-9, 2011
    Conrad Duberstein Moot Court Competition
       Duberstein U.S. Courthouse, New York, N.Y.
          Contact: 1-703-739-0800;

Mar. 10, 2011
    Nuts and Bolts - Florida
       Tampa, Fla.
          Contact: 1-703-739-0800;

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

Mar. 17-19, 2011
    Byrne Judicial Clerkship Institute
       Pepperdine University School of Law, Malibu, Calif.
          Contact: 1-703-739-0800;

Mar. 31-Apr. 3, 2011
    Annual Spring Meeting
       Gaylord National Resort & Convention Center,
       National Harbor, Md.
          Contact: 1-703-739-0800;

April 27-29, 2011
    TMA Spring Conference
       JW Marriott, Chicago, IL

May 5, 2011
    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;

May 6, 2011
    New York City Bankruptcy Conference
       Hilton New York, New York, N.Y.
          Contact: 1-703-739-0800;

June 6, 2011
    Canadian-American Cross-Border Insolvency Symposium
       Fairmont Royal York, Toronto, Ont.
          Contact: 1-703-739-0800;

June 9-12, 2011
    Central States Bankruptcy Workshop
       Grand Traverse Resort and Spa, Traverse City, Mich.

July 21-24, 2011
    Northeast Bankruptcy Conference
       Hyatt Regency Newport, Newport, R.I.
          Contact: 1-703-739-0800;

July 27-30, 2011
    Southeast Bankruptcy Workshop
       The Sanctuary at Kiawah Island, Kiawah Island, S.C.
          Contact: 1-703-739-0800;

Aug. 4-6, 2011
    Mid-Atlantic Bankruptcy Workshop
       Hotel Hershey, Hershey, Pa.
          Contact: 1-703-739-0800;

Oct. 14, 2011
    NCBJ/ABI Educational Program
       Tampa Convention Center, Tampa, Fla.
          Contact: 1-703-739-0800;

Oct. __, 2011
    International Insolvency Symposium
       Dublin, Ireland
          Contact: 1-703-739-0800;

Oct. 25-27, 2011
    Hilton San Diego Bayfront, San Diego, CA

Dec. 1-3, 2011
    23rd Annual Winter Leadership Conference
       La Quinta Resort & Spa, La Quinta, Calif.
          Contact: 1-703-739-0800;

Apr. 19-22, 2012
    Annual Spring Meeting
       Gaylord National Resort & Convention Center,
       National Harbor, Md.
          Contact: 1-703-739-0800;

July 14-17, 2012
    Southeast Bankruptcy Workshop
       The Ritz-Carlton Amelia Island, Amelia Island, Fla.
          Contact: 1-703-739-0800;

Aug. 2-4, 2012
    Mid-Atlantic Bankruptcy Workshop
       Hyatt Regency Chesapeake Bay, Cambridge, Md.
          Contact: 1-703-739-0800;

Nov. 29 - Dec. 2, 2012
    Winter Leadership Conference
       JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
          Contact: 1-703-739-0800;


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

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

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

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


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

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