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        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, February 2, 2011, Vol. 12, No. 23

                            Headlines



C Z E C H   R E P U B L I C

KOVOPOL: Put Up for Sale for CZK27 Million
PLP: Declared Bankrupt by Usti nad Labem Regional Court
SAZKA AS: Management Accepts One of Two Restructuring Offers
SAZKA AS: Assets Stands at CZK14.16 Billion
* CZECH REPUBLIC: Wage Expenditures for Insolvent Firms Down 41%


G E R M A N Y

EGOLI TOSSELL: Files For Insolvency Protection
EIRLES TWO: Moody's Cuts Rating on EUR14.8MM A Notes to Caa3 (sf)
FORCE 2005-1: Moody's Cuts Rating on Class D Notes to 'B3 (sf)'
KCA DEUTAG: May Put Off Sale After Key Lenders Back Restructuring


H U N G A R Y

VERTESI EROMU: Has Debt Deal with Creditors


I C E L A N D

KAUPTHING BANK: Committee Rejects US$28.5 Bil. in Creditor Claims


I R E L A N D

MURRAY NOLAN: Puts Catalogue Shopping Business Into Examinership
TBS INT'L: Restructures Debts; Payment Schedule Revised


I T A L Y

* CITY OF L'AQUILA: Moody's Withdraws 'Ba1' LT Issuer Rating


K A Z A K H S T A N

NURBANK JSC: Moody's Affirms 'E+' Bank Financial Strength Rating


N E T H E R L A N D S

PHARMING GROUP: To Place Unit Into Voluntary Liquidation


R U S S I A

FIRST REPUBLIC: Moody's Changes Outlook on 'E+' BFSR to Negative
ROSAGROLEASING OJSC: Fitch Affirms 'BB+' LT Issuer Default Rating


T U R K E Y

TURKLAND BANK: Fitch Affirms Individual Rating at 'D'


U K R A I N E

BANK STOLYTSYA: Central Bank Appoints Temporary Administrator
VOLODYMYRSKYI BANK: Goes Into Provisional Administration


U N I T E D   K I N G D O M

BRITISH SCHOOL: AA Acquires Firm Following Administration
CARVILL GROUP: Mulls Creditors Voluntary Arrangement
EXOVA PLC: Moody's Assigns 'B3' Rating to GBP155-Mil. Notes
GAJ GROUP: Goes Into Administration, Axes 33 Jobs
LITTLE WONDERS: Goes Into Liquidation

OSPREY ACQUISITION: Fitch Assigns 'BB+' Senior Secured Rating
PRIVET CAPITAL: 200 Devon Dessert Factory Workers in Limbo
SUBOCEAN GROUP: Technip Confirmed as "Mystery Buyer" for Assets


                            *********


===========================
C Z E C H   R E P U B L I C
===========================


KOVOPOL: Put Up for Sale for CZK27 Million
------------------------------------------
Kovopol has been put up for sale for CZK27 million, CTK reports,
citing insolvency administrator Jiri Jakoubek.

The company, which was declared bankrupt in November 2009, has
about 50 employees and still continues producing automatic
machines for nail production and forms for the car industry, CTK
notes.

According to CTK, Kovopol has more than 200 creditors who demand
about CZK200 million.

Kovopol is an engineering company based in Police nad Metuji.


PLP: Declared Bankrupt by Usti nad Labem Regional Court
-------------------------------------------------------
The regional court in Usti nad Labem in north Bohemia declared PLP
bankrupt on Monday, CTK reports, citing the company's receiver
Ales Klaudy.

According to CTK, Mr. Klaudy said that PLP's owner withdrew the
proposal for the company's reorganization on Friday.  The receiver
said that there are several companies interested in buying the
refinery.

An anonymous source close to the chemical industry told CTK that
one of the investors is the Agrofert holding.

PLP is an industrial refinery based in Usti nad Labem.


SAZKA AS: Management Accepts One of Two Restructuring Offers
------------------------------------------------------------
CTK reports that Zdenek Zikmund, a spokesman for Sazka AS, said
the company's management at an extraordinary meeting on Sunday
accepted one of the offers aimed at finding a solution to the
situation at the lottery firm.

Mr. Zikmund would not say whether the solution that was chosen on
Sunday would depend on the approval of Sazka's shareholders at an
extraordinary general meeting, CTK notes.

CTK relates that earlier on Sunday, Czech Olympic Committee Deputy
Chairman for Economic Affairs Jiri Kejval said in a discussion
program on public broadcaster Czech Television that the management
was discussing the offers made by the investment group Penta and
by Synot Holding, another lottery company, in cooperation with
entrepreneur Karel Komarek, the owner of the KKCG group.

Penta wants to fully take over Sazka, CTK discloses.  Under its
proposal, Sazka would, however, continue distributing part of
profit to Czech sport associations, CTK says, citing Mr. Kejval.

Synot has allegedly shown interest in 60% of Sazka, with 30% to
remain in the hands of the current shareholders, CTK states.
Under its proposal, 30% of Sazka's shares would be listed on the
exchange after its restructuring in the future, CTK notes.

According to CTK, the server iHNed.cz said that another offer, one
from Martin Ulcak and his firm E-Invest, is in play only.  Mr.
Ulcak is reportedly the only investor making no claim to Sazka's
shares, CTK relates.  He only wants to take a portion of the
profit Sazka makes, CTK notes.

Citing a source close to KKCG, iHNed.cz wrote on Sunday that Mr.
Komarek's group bought a package of its own claims on Sazka and
wants to pour the needed billions of crowns into the firm and take
part in its restructuring, reports CTK.  Mr. Kejval said on CT
that Sazka clearly needed a strategic partner, CTK recounts.

According to CTK, Mr. Kejval said that the shareholders'
extraordinary general meeting is to take place this week.

                      Insolvency Proceedings

As reported by the Troubled Company Reporter-Europe on Jan. 26,
2011, CTK said Sazka wants the Municipal Court in Prague to order
hearing of the insolvency proceedings initiated by Czech
businessman Radovan Vitek's firm Moranda against the company.
Sazka demands that the court deal with Moranda's proposal in the
physical presence of both sides' lawyers, CTK disclosed.  If Sazka
did not take this step, the court could decide on the insolvency
proposal on the basis of the presented documents only, CTK noted.
Mr. Vitek asserts that Sazka is in an insolvency situation because
it has excessive debts, with total debts worth more than CZK10
billion, according to CTK.  He claims that Sazka's owner's equity
has a negative value, CTK said.

As reported by the Troubled Company Reporter-Europe, Bloomberg
News, citing CTK, said Mr. Vitek, who owns Sazka debts worth
CZK1.5 billion (US$81.7 million), filed an insolvency proposal
against the company on Jan. 17.

The Troubled Company Reporter-Europe, citing Bloomberg News,
related on Jan. 17 that Sazka Chairman Ales Husak said the
company isn't legally in an insolvency situation and will use all
available means to fight attempts to put it into bankruptcy.
Sazka also doesn't recognize debt claims made by Mr. Vitek and
accused him of trying to start a "hostile takeover attempt,"
Bloomberg quoted Jaromir Cisar, Sazka's lawyer, as saying.

Sazka AS is a provider of lotteries and sport betting games in the
Czech Republic.


SAZKA AS: Assets Stands at CZK14.16 Billion
-------------------------------------------
CTK reports that a list of property Sazka made public in the
insolvency register on Monday shows that the lottery firm's assets
are worth CZK14.16 billion, of which CZKK10.5 billion are claims,
and debts are worth CZK9.4 billion.

CTK relates that the Municipal Court in Prague received a proposal
for the start of insolvency proceedings against Sazka from
entrepreneur Radovan Vitek on January 17.  Sazka had 20 days after
receiving the announcement on the start of the proceedings for
sending to the court the whole list of its assets, including the
names of the debtors and creditors, as well as its employees, and
documents proving insolvency or the danger of insolvency, CTK
states.

Sazka recalls in the documents accompanying the list of its assets
that it has filed a complaint against Komercni banka for CZK574
million and against Raiffeisenbank for CZK599 million for harming
its reputation, CTK discloses.  Both banks have sold their claims
on Sazka to entrepreneur Mr. Vitek, CTK notes.  Sazka has also
filed a complaint against the firm Penta for CZK2 billion due to
alleged unfair practices, according to CTK.

CTK notes that in one of the documents, Sazka also rejects a
CZK422 million debt to the firm Moranda and a CZK400 million debt
to the firm Sidereus and some other debts for CZK10 million in
total.

As reported by the Troubled Company Reporter-Europe on Jan. 26,
2011, CTK said Sazka wants the Municipal Court in Prague to order
hearing of the insolvency proceedings initiated by Mr. Vitek's
firm Moranda against the company.  Sazka demands that the court
deal with Moranda's proposal in the physical presence of both
sides' lawyers, CTK disclosed.  If Sazka did not take this step,
the court could decide on the insolvency proposal on the basis of
the presented documents only, CTK noted.  Mr. Vitek asserts that
Sazka is in an insolvency situation because it has excessive
debts, with total debts worth over CZK10 billion, according to
CTK.  He claims that Sazka's owner's equity has a negative value,
CTK said.

As reported by the Troubled Company Reporter-Europe, Bloomberg
News, citing CTK, said Mr. Vitek, who owns Sazka debts worth
CZK1.5 billion (US$81.7 million), filed an insolvency proposal
against the company on Jan. 17.

The Troubled Company Reporter-Europe, citing Bloomberg News,
related on Jan. 17 that Sazka Chairman Ales Husak said the
company isn't legally in an insolvency situation and will use all
available means to fight attempts to put it into bankruptcy.
Sazka also doesn't recognize debt claims made by Mr. Vitek and
accused him of trying to start a "hostile takeover attempt,"
Bloomberg quoted Jaromir Cisar, Sazka's lawyer, as saying.

Sazka AS is a provider of lotteries and sport betting games in the
Czech Republic.


* CZECH REPUBLIC: Wage Expenditures for Insolvent Firms Down 41%
----------------------------------------------------------------
CTK reports that Labour and Social Affairs Ministry data show that
state expenditures for wages of insolvent companies sank by 41% to
CZK497.8 million last year from CZK844 million in 2009.

According to CTK, Tana Svrckova of the ministry said that
employees of 847 companies filed claims for unpaid wages last
year, compared with 750 companies in 2009 when the compensations
concerned larger companies, in particular glass and china makers.

The highest amount of money was paid to employees of textile
company OP Prostejov last year, CTK notes.


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


EGOLI TOSSELL: Files For Insolvency Protection
----------------------------------------------
Scott Roxborough at The Hollywood Reporter says Egoli Tossell Film
AG, the co-producer of Golden Globe-winning miniseries Carlos and
the Oscar-nominated The Last Station, has filed for insolvency
protection.

But the company, whose credits also include Paul Verhoeven's Black
Book and Ashley Judd-starrer Helen, has signed a letter of intent
with a Frankfurt equity investor that Egoli Tossel says will
insure its future financial health.

The Hollywood Reporter says Egoli Tossell filed for the German
equivalent of Chapter 11 on Thursday, January 27.  The group comes
off of one its most productive years in terms of films released
and honors won.  But it was caught in a cash flow crunch as a
result both of the global economic crisis and an overall decline
in the market for the sort of art house fare Egoli Tossell is
known for.

According to the report, co-managing director Jens Meurer said
restructuring Egoli Tossell will likely take between three to four
months after which the new investor will take a "substantial"
equity stake in the company.

The group will announce further details next week at the Berlin
Film Festival, The Hollywood Reporter adds.

Mr. Meurer, as cited by The Hollywood Reporter, said the financial
restructuring would not affect day-to-day operations and that
films on Egoli Tossell's upcoming production slate, including
costume drama Ivanhoe with Brit director Iain Softley and
ambitious literary adaptation Hector and the Search for Happiness,
were proceeding as planned.

The Hollywood Reporter relates that Mr. Meurer said taking on an
equity investor would add "entrepreneurial expertise" and provide
new financing opportunities for the Berlin-based shingle.

Mr. Meurer said with the equity backing post Chapter 11, Egoli
Tossell would be in a position to pony up 20 percent-25 percent
financing for future productions, The Hollywood Reporter adds.

Egoli Tossell Film AG is a film producer based in Berlin, Germany.


EIRLES TWO: Moody's Cuts Rating on EUR14.8MM A Notes to Caa3 (sf)
-----------------------------------------------------------------
Moody's Investors Service took these rating action on notes issued
by Eirles Two Limited Series 298.

Issuer: Eirles Two Limited Series 298 (Repack Force Equity)

  -- EUR14.8M A Notes, Downgraded to Caa3 (sf); previously on Oct
     12, 2009 Downgraded to B1 (sf) and Remained On Review for
     Possible Downgrade

The rating action follows the increase of the loss expectations to
the underlying Class E1 of the transaction Force 2005-1. Series
298 has experienced an interest shortfall of approximately
EUR1.4 million to date.

Eirles Two is a repackaging of EUR31.1 million of the Class
EUR46.7 million Class E1 notes of Force 2005-1.  The Series 298 is
the senior class of Eirles Two and makes up EUR14.8 million.  The
payments to Force 2005-1 Class E1 are passed through to Eirles Two
and paid according to the its priority of payments.  The
performance of Classes of Eirles Two are therefore linked to the
performance of Force 2005-1.

Force 2005-1 is a German SME CLO referencing a static portfolio of
German profit participation agreements with a scheduled maturity
of January 2013.  Some of the "Genussrechte" in the portfolio have
certain features of equity including subordination and linkage of
payments to financial performance of the obligor such as interest
deferral features and contingent coupon components.  Such
obligations can be written down depending on financial performance
of the obligor and may extend redemption beyond the legal final
maturity of the transaction which is 4 years after its scheduled
maturity date.  These obligations make up nearly 90% of the
outstanding pool.  Obligations which have not redeemed at par plus
accrued interest by the scheduled maturity of the transaction will
be extended up to the earlier of 22 years and the date on which
all payments due under the profit participation agreement have
been made.  If such payments have not been made before the legal
maturity of the transaction in January 2017, this is likely to
lead to a loss for Force 2005-1.

According to Moody's the rating action is driven by 1) the
revision of IKB's internal rating scale and process used to assess
the creditworthiness of SME borrowers, 2) the application of
maturity extension and coupon reduction to stress for the deferral
and extension features of a majority of the obligations in the
pool, and 3) the deterioration in the credit quality of the pool.

Force 2005-1 has experienced EUR13 million of further insolvencies
since the last rating action.  Class A has redeemed approximately
EUR22.2 million since last rating action by paydowns of the PDL.
The PDL balance has decreased to EUR4.7 million from EUR7.4
million at the time of the last rating action.  Cumulative
Principal Deficiency Events relative to the original portfolio
amount have increased to 13.5% from 10.3% at the time of the last
rating action, by the investor reports dated through November 17,
2010.  This excludes early terminations at full repayment and
includes an increase of cumulative insolvencies relative to the
original portfolio to 11.1% from 7.6% at the time of the last
rating action, by the investor reports dated through November 17,
2010.  Class E1 and E2 have experienced interest deferrals of
EUR10.8 million to date.

In its base case, Moody's analyzed the underlying collateral pool
of Force 2005-1 with a stressed weighted average default
probability to scheduled maturity of 19%.  This is consistent with
the default probability level of a B3 rating.  Moody's notes that
the transaction benefits from a material level of excess spread
that has allowed it to substantially cure the PDL and will
continue to partially mitigate the impact of potential new
defaults.

In order to assess the default probabilities of each of the
borrowers in the pool, Moody's relies on the internal credit
scores assigned to each borrower by Equinotes Management GmbH, as
Advisor to the transaction, following the IKB rating process and
methodology for SME obligors.  Following the recent revision by
IKB of its internal credit score scale, which provides a more
detailed assessment of credit risk levels, Moody's revisited its
mapping to IKB credit scores i.e. the way the bank's internal
credit scores are translated into Moody's idealized default
probabilities. The greater conservativeness embedded in IKB's
revised credit scores drives IKB internal ratings to map to higher
Moody's default probabilities and therefore has a negative impact
on the ratings of the notes.

Moody's has changed its approach to stressing "Genussrechte" with
deferral and extension features.  At closing Moody's modelled the
risk of such assets using a rating migration approach that
assessed the likelihood that debtors would default on or defer
fixed remunerations and principal payments.  Instead, Moody's now
applies a haircut to the coupons and extends the expected lives of
such assets, with a severity reflecting the current rating of each
obligor.

Moody's also incorporated information provided by the manager in
the latest investor reports to account for more recent information
on the performance of the underlying obligors.  Various additional
scenarios have been considered for the analysis and include the
application of stresses applicable to concentrated pools with non
publicly rated issuers, as outlined in Moody's Methodology,
"Updated approach to the usage of credit estimates in rated
transactions."


FORCE 2005-1: Moody's Cuts Rating on Class D Notes to 'B3 (sf)'
---------------------------------------------------------------
Moody's Investors Service took these rating actions on notes
issued by Force 2005-1 Limited Partnership.

Issuer: Force 2005-1 Limited Partnership (EquiNotes)

  -- EUR236M A Notes, Downgraded to A1 (sf); previously on Mar 13,
     2009 Aaa (sf) Placed Under Review for Possible Downgrade

  -- EUR17.8M B Notes, Downgraded to Ba1 (sf); previously on Sep
     29, 2009 Downgraded to Aa3 (sf) and Remained On Review for
     Possible Downgrade

  -- EUR20.4M C Notes, Downgraded to Ba3 (sf); previously on Sep
     29, 2009 Downgraded to A3 (sf) and Remained On Review for
     Possible Downgrade

  -- EUR18.5M D Notes, Downgraded to B3 (sf); previously on Sep
     29, 2009 Downgraded to Baa3 (sf) and Remained On Review for
     Possible Downgrade

                         Ratings Rationale

Force 2005-1 is a German SME CLO referencing a static portfolio of
German profit participation agreements with a scheduled maturity
of January 2013.  Some of the "Genussrechte" in the portfolio have
certain features of equity including subordination and linkage of
payments to financial performance of the obligor such as interest
deferral features and contingent coupon components.  Such
obligations can be written down depending on financial performance
of the obligor and may extend redemption beyond the legal final
maturity of the transaction which is 4 years after its scheduled
maturity date.  These obligations make up nearly 90% of the
outstanding pool.  Obligations which have not redeemed at par plus
accrued interest by the scheduled maturity of the transaction will
be extended up to the earlier of 22 years and the date on which
all payments due under the profit participation agreement have
been made.  If such payments have not been made before the legal
maturity of the transaction in January 2017, this is likely to
lead to a loss for Force 2005-1.

According to Moody's the rating actions are driven by 1) the
revision of IKB's internal rating scale and process used to assess
the creditworthiness of SME borrowers, 2) the application of
maturity extension and coupon reduction to stress for the deferral
and extension features of a majority of the obligations in the
pool, and 3) the deterioration in the credit quality of the pool.
Force 2005-1 has experienced EUR13 million of further insolvencies
since the last rating action.  Class A has redeemed approximately
EUR22.2 million since last rating action by paydowns of the PDL.
The PDL balance has decreased to EUR4.7 million from EUR7.4
million at the time of the last rating action.  Cumulative
Principal Deficiency Events relative to the original portfolio
amount have increased to 13.5% from 10.3% at the time of the last
rating action, by the investor reports dated through November 17,
2010.  This excludes early terminations at full repayment and
includes an increase of cumulative insolvencies relative to the
original portfolio to 11.1% from 7.6% at the time of the last
rating action, by the investor reports dated through November 17,
2010.  Class E1 and E2 have experienced interest deferrals of
EUR10.8 million to date.

In its base case, Moody's analyzed the underlying collateral pool
with a stressed weighted average default probability to scheduled
maturity (January 2013) of 19%.  This is consistent with the
default probability level of a B3 rating.  Moody's notes that the
transaction benefits from a material level of excess spread that
has allowed it to substantially cure the PDL and will continue to
partially mitigate the impact of potential new defaults.

In order to assess the default probabilities of each of the
borrowers in the pool, Moody's relies on the internal credit
scores assigned to each borrower by Equinotes Management GmbH, as
Advisor to the transaction, following the IKB rating process and
methodology for SME obligors.  Following the recent revision by
IKB of its internal credit score scale, which provides a more
detailed assessment of credit risk levels, Moody's revisited its
mapping to IKB credit scores i.e.  the way the bank's internal
credit scores are translated into Moody's idealized default
probabilities.  The greater conservativeness embedded in IKB's
revised credit scores drives IKB internal ratings to map to higher
Moody's default probabilities and therefore has a negative impact
on the ratings of the notes.

Moody's has changed its approach to stressing "Genussrechte" with
deferral and extension features.  At closing Moody's modeled the
risk of such assets using a rating migration approach that
assessed the likelihood that debtors would default on or defer
fixed remunerations and/or principal payments.  Instead, Moody's
now applies a haircut to the coupons and extends the expected
lives of such assets, with a severity reflecting the current
rating of each obligor.

Moody's also incorporated information provided by the manager in
the latest investor reports to account for more recent information
on the performance of the underlying obligors.  Various additional
scenarios have been considered for the analysis and include the
application of stresses applicable to concentrated pools with non
publicly rated issuers, as outlined in Moody's Methodology,
"Updated approach to the usage of credit estimates in rated
transactions" (October 2009).

The key assumptions Moody's used were these:

1.  Default rates for these pools will likely remain at elevated
    levels, despite improvements in the German economy.

2.  Recoveries on the subordinated loans may be close to zero in
    the majority of cases, particularly when the issuer files for
    insolvency.

Moody's notes that this transaction is subject to a high level of
macroeconomic uncertainty, as evidenced by 1) uncertainties of
credit conditions in the general economy and 2) the ability of the
underlying obligors to refinance the subordinated bullet loans
that make up the securitized pools.

Sources of additional performance uncertainties include:

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

2.  The additional risk presented by the interest deferral and
    principal write-down features for some of the assets in the
    pool.

3.  There is the potential for elevated refinancing difficulty
    regarding the subordinated debt instruments in this portfolio,
    particularly among obligors with weaker credit quality.

Under this methodology, Moody's relies on a simulation based
framework.  Moody's therefore used CDOROMTM, to generate default
and recovery scenarios for each asset in the portfolio, and then
Moody's EMEA Cash-Flow model in order to compute the associated
loss to each tranche in the structure.

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.

In addition to its base case, Moody's has considered the impact of
stress scenarios.  In one scenario the ratings of 30% of the
portfolio are lowered by 2 notches and in another scenario the
ratings of the largest two exposures are set to Caa2.  As the base
case scenario already includes the expectation of further credit
stress to the obligors Moody's considers the impact of these
scenarios to be in line with the new rating levels.

Moody's has analyzed the cash flows to the classes and recognizes
that the portfolio is generating substantial excess spread at
present.  This excess spread will diminish significantly if
further defaults materialize.  In such a scenario complete PDL
paydowns may not be possible until the maturity of the
transaction.


KCA DEUTAG: May Put Off Sale After Key Lenders Back Restructuring
-----------------------------------------------------------------
Anousha Sakoui and Martin Arnold at The Financial Times report
that a sale of KCA Deutag is expected to be shelved as its owners
have secured the backing of a key group of lenders for a plan to
recapitalize the group.

According to the FT, people close to the talks said that a group
of lenders holding about 50% of the company's senior ranking
loans, including Royal Bank of Scotland, HSBC and Lloyds Banking
Group, have agreed to support a restructuring proposed by Pamplona
Capital Management, the Russian-backed private equity firm that
owns the group.

The FT relates that the company, advised by Morgan Stanley, said
it was in discussions with the creditors over the continuation of
an ongoing review of strategic alternatives, which had included a
sale of the company.  However, those close to the situation said
the process was expected to be suspended, the FT notes.

KCA still needs two-thirds of its senior lenders to agree to the
plan for it to be implemented, the FT states.  The proposal, the
FT says, is being considered by the remaining lenders and their
votes are required by February 11.

On Jan. 25, 2011, the Troubled Company Reporter-Europe, citing the
FT, related that people familiar with the terms said Pamplona has
offered KCA and its lenders about US$550 million (GBP344 million)
of new funds, one of the biggest checks written for a takeover of
a European company through a debt restructuring.  The money would
be used to repay some debt as well as increase cash at the
company, formerly known as Abbot Group, which was taken private in
a GBP906 million buy-out in 2007, The FT disclosed.  Under the
plan, subordinated lenders would receive shares in exchange for
writing off claims, the FT stated.  Management would also receive
an equity stake, according to the FT.  The FT noted that one
person said the agreement is significant because, with the support
of senior creditors, the plan could be implemented consensually,
avoiding any prepackaged administration.

As reported by the Troubled Company Reporter-Europe, the FT said,
burdened with more than US$2 billion (GBP1.25 billion) debt, the
company has struggled to respect its loan covenants, especially
since the BP oil spill in the Gulf of Mexico caused delays to new
oil rigs and hit earnings.

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


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


VERTESI EROMU: Has Debt Deal with Creditors
-------------------------------------------
MTI-Econews reports that Vertesi Eromu, a unit of state-owned
Hungarian Electricity Works (MVM), on Monday said it reached an
agreement with its creditors after more than five months under
bankruptcy protection.

According to MTI, the agreement will be closed after approval by
the court of Komarom-Esztergom County.

Vertesi's proposal, to pay back about HUF5.6 billion in a lump
sum, was approved by all of the company's secured creditors and
90% of its unsecured creditors, MTI discloses.  Vertesi can only
pay the amount with a HUF4 billion loan from its parent company,
MTI notes.   The loan was approved by a general meeting of MVM
shareholders after earlier talks with creditors failed, MTI
relates.  Vertesi will have until 2014 to repay the loan to MVM,
MTI states.

MTI says the agreement and the loan from MVM give Vertesi time to
reorganize and return to profitable operation.

The Troubled Company Reporter-Europe previously reported that MTI
said Vertesi filed for bankruptcy protection in late August.  The
plant would have had to pay more than EUR6 million to energy
traders by the end of August had it not filed for bankruptcy
protection, according to MTI.

Vertesi Eromu is a Hungarian power plant.


=============
I C E L A N D
=============


KAUPTHING BANK: Committee Rejects US$28.5 Bil. in Creditor Claims
-----------------------------------------------------------------
Omar R. Valdimarsson at Bloomberg News reports that Kaupthing Bank
hf's winding-up committee said it rejected claims equivalent to
ISK3.3 trillion (US$28.5 billion) as the failed Icelandic lender
struggles to settle its debts to creditors following its 2008
collapse.

Bloomberg relates that the committee said in an e-mailed statement
late Monday, of the ISK6.2 trillion in claims registered by the
end of last year, ISK2.9 trillion have been accepted, of which
ISK351 billion were "finally accepted," while ISK2.5 trillion
continue to be disputed.  According to Bloomberg, the committee
said that of claims rejected, ISK694 billion were "finally
rejected," while ISK2.6 trillion were "in dispute."

Creditors in what was once Iceland's biggest bank can expect to
receive 27 cents back on the euro, Bloomberg says, citing
Reykjavik-based brokerage H.F. Securities.

"Until all disputes have been settled, the real and accurate
amount of liabilities is uncertain," Bloomberg quoted Kaupthing's
winding-up committee as saying in the statement.

                       About Kaupthing Bank

Headquartered in Reykjavik, Kaupthing Bank --
http://www.kaupthing.com/-- is Iceland's largest bank and among
the Nordic region's 10 largest banking groups.  With operations in
more than a dozen countries, the bank offers a range of services
including retail banking, corporate finance, asset management,
brokerage, private banking, treasury, and private wealth
management.  Kaupthing was created by the 2003 merger of
Bunadarbanki and Kaupthing Bank.  In October 2008, the Icelandic
government assumed control of Kaupthing Bank after taking similar
measures with rivals Landsbanki and Glitnir.

As reported by the Troubled Company Reporter on Nov. 30, 2008,
Olafur Gardasson, assistant for Kaupthing Bank hf., in a
proceeding under Act No. 21/1991, pending before the Reykjavik
District Court, and foreign representative of the Debtor, filed a
petition under chapter 15 of title 11 of the United States Code in
the United States Bankruptcy Court for the Southern District of
New York commencing the Debtor's chapter 15 case ancillary to the
Icelandic Proceeding and seeking recognition for the Icelandic
Proceeding as a "foreign main proceeding" under the Bankruptcy
Code and relief in aid of the Icelandic Proceeding.


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


MURRAY NOLAN: Puts Catalogue Shopping Business Into Examinership
----------------------------------------------------------------
Gavin Daly at The Sunday Business Post Online reports that
Murray Nolan has sold its hampers business to a British company
and put its remaining catalogue shopping business into
examinership.

The Post.ie relates that Simon Coyle of Mazars has been appointed
as interim examiner to Murray Nolan, which runs the Morses Club
catalogue sales business.  The remaining Morses Club business has
turnover of more than EUR6 million and employs 55 full-time staff
and 65 sales agents, The Post.ie notes.

The Post.ie says the company is seeking new investment after a
fall-off in business.

The company recently sold its Celtic Hampers and Family Hampers
businesses to Park Group in England, in a deal worth up to
EUR1 million, The Post.ie discloses.

According to The Post.ie, it is understood that the collapse in
consumer spending led to losses at the hamper business in recent
years, while the bad weather in December made deliveries to
catalogue shoppers difficult.  Murray Nolan's turnover slumped to
EUR17.2 million in 2009, and the company made a EUR130,000 loss,
The Post.ie recounts.

At the end of 2009, the firm had net debt of EUR2 million, The
Post.ie states.  Bank of Ireland had guarantees for more than EUR2
million from the directors and their family members, as well as a
charge over the assets of the company, according to The Post.ie.
The issue is due to be heard again in the High Court on Friday,
Feb. 4, The Post.ie discloses.

Clonee-based Murray Nolan is owned by Michael Murray and Tom
Nolan.


TBS INT'L: Restructures Debts; Payment Schedule Revised
-------------------------------------------------------
TBS International plc has entered into amendments to its credit
facilities with all of its lenders, including AIG Commercial
Equipment, Commerzbank AG, Berenberg Bank and Credit Suisse and
syndicates led by Bank of America, N.A., The Royal Bank of
Scotland plc and DVB Group Merchant Bank.  The amendments
restructure the Company's debt obligations by revising the
principal repayment schedules under the Credit Facilities, waiving
any existing defaults, revising the financial covenants, including
covenants related to the Company's consolidated leverage ratio,
consolidated interest coverage ratio and minimum cash balance, and
modifying other terms of the Credit Facilities.

As part of the amendments, Messrs. Joe Royce, the Company's
president and chief executive officer and the chairman of the
board, Gregg McNelis, the Company's senior executive vice
president and chief operating officer, and Larry Blatte, the
Company's senior executive vice president, have committed to
purchase a pro rata share of up to US$10 million of a new series
of preference shares.  The Company intends to file a registration
statement in the near future with the Securities and Exchange
Commission under which it will conduct a rights offering that will
enable all holders of the Company's ordinary shares at the close
of business on the record date for the rights offering, who desire
to purchase similar preference shares to make such purchases on
the same terms and conditions.  You must be a holder of ordinary
shares on the record date, which the Company expects will be
Monday, February 7, 2011, in order to participate in the rights
offering.

Ferdinand Lepere, senior executive vice president and chief
financial officer commented, "I am very pleased that we were able
to reach a consensus with 100% of our two dozen banks, spanning
seven different loan facilities.  I would like to thank our
lenders and all of the professionals who worked tirelessly to
achieve this restructuring.  I believe TBS is now in a position to
navigate the challenging global shipping market confronting us."

The Company currently expects to be in compliance with all
financial covenants and other terms of the amended Credit
Facilities through maturity.  As a result of the amendments to the
Credit Facilities, the Company intends to classify the long-term
portion of the Company's outstanding debt at December 31, 2010, as
long-term debt in its consolidated balance sheet, thus remediating
the uncertainty regarding TBS' ability to fulfill its financial
commitments as they become due, which uncertainty was the
condition that raised substantial doubt about TBS' ability to
continue as a going concern.

                  About TBS International plc

Dublin, Ireland-based TBS International plc (NASDAQ: TBSI)
-- http://www.tbsship.com/-- is a fully-integrated transportation
service company that provides worldwide shipping solutions to a
diverse client base of industrial shippers.

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

As reported in the Troubled Company Reporter on March 19, 2010,
PricewaterhouseCoopers LLP, in New York, expressed substantial
doubt about the Company's ability to continue as a going concern,
following its 2009 results.  The independent auditors noted that
the Company believes it will not be in compliance with the
financial covenants under its credit facilities during 2010, which
under the agreements would make the debt callable.  "This has
created uncertainty regarding the Company's ability to fulfill its
financial commitments as they become due."

TBS International in December 2010 disclosed that its various
lender groups have agreed to extend the current forbearance period
until January 31, 2011.  During such period, the lender groups
will continue to forbear from exercising their rights and remedies
which arise from the Company's failure to make principal payments
when due.  The Company will not make principal payments due on its
financing facilities during the extended forbearance period, but
it will continue to pay interest on those facilities at the
default interest rate.


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


* CITY OF L'AQUILA: Moody's Withdraws 'Ba1' LT Issuer Rating
------------------------------------------------------------
Moody's Investors Service has withdrawn the long term issuer
rating of Ba1 assigned to the City of L'Aquila.

The following rating and outlook have been withdrawn:

  -- City of L'Aquila's issuer rating of Ba1
  -- City of L'Aquila's developing outlook

Moody's Investors Service has withdrawn the credit rating for its
own business reasons.

The last rating action was implemented on June 24, 2009, when
Moody's concluded the review for possible downgraded initiated in
the aftermath of the earthquake and confirmed the Ba1 issuer
rating with a developing outlook.

The principal methodologies used in this rating were "Regional and
Local Governments Outside the US", published in May 2008, and "The
Application of Joint Default Analysis to Regional and Local
Governments", published in December 2008.

L'Aquila, with population of 72,700 inhabitants is the capital
city of the Region of Abruzzo, in Central Italy.


===================
K A Z A K H S T A N
===================


NURBANK JSC: Moody's Affirms 'E+' Bank Financial Strength Rating
----------------------------------------------------------------
Moody's Investors Service affirmed the E+ bank financial strength
rating, B3/Not Prime long-term and short-term local and foreign
currency deposit ratings, and the B3 senior unsecured local and
foreign currency debt ratings of Nurbank.  The outlook on all of
the global scale ratings is stable.

Moody's ratings affirmation follows: (i) Nurbank's acknowledgement
of severe deterioration in its loan book, with the level of bad
loans approaching half of the loan book as at end-December 2010
under unaudited local accounting standards, and (ii) a more than
threefold increase in Nurbank's Tier 1 capital following a USD650
million capital injection, which the bank's shareholders completed
by the end of 2010.

Moody's notes that although the capital injection enabled
Nurbank to improve its deficient loan loss reserves, the bank's
creditworthiness still faces other challenges, such as: (i) weak
asset quality, with most loans being restructured over the past
two years, (ii) high industry concentration on the construction
and real estate sectors, which exceeds 1.7x of Tier 1 capital and
might hamper asset recovery as a result of conservative growth
expectations for these markets in the medium term, (iii) weak
revenue generation capacity, and (iv) high funding concentration.

Moody's explained that Nurbank's ratings have limited upward
potential in the medium term.  Any revision of the outlook to
positive from stable would require a notable strengthening of the
bank's asset quality and sustainable reduction in risk
concentrations in the assets and liabilities.  Conversely,
negative pressure could be exerted on Nurbank's ratings due to a
significant decline in liquidity or a substantial further
deterioration of the bank's asset quality.

Moody's last rating action on Nurbank was on July 1, 2010, when
the bank's long-term foreign and local currency bank deposit
ratings, and foreign and local currency senior unsecured debt
ratings were downgraded to B3 from B2, and the outlook on the
deposit and debt ratings was changed to stable from negative.

The principal methodologies used in rating Nurbank were Moody's
"Bank Financial Strength Ratings: Global Methodology", published
in February 2007, and "Incorporation of Joint-Default Analysis
into Moody's Bank Ratings: A Refined Methodology", published in
March 2007.

Headquartered in Almaty, Kazakhstan, Nurbank reported total
consolidated audited assets of KZT297 billion at December 31,
2009, while IFRS-compliant net income for 2009 amounted to
KZT314 million.


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


PHARMING GROUP: To Place Unit Into Voluntary Liquidation
--------------------------------------------------------
Reuters reports that Pharming Group N.V. said on Monday it had
ended a financing arrangement with subsidiary DNage, which had
been unable to find alternative funding and would now be
liquidated.

Hit by cash worries last year, Pharming had opted to partly divest
DNage and concentrate on bringing its lead product to market,
agreeing also to provide DNage with limited bridge funding until
the unit could secure alternative financing, Reuters relates.

However, DNage has been "unable to secure new investors and its
shareholders have now decided to put DNage into voluntary
liquidation," Pharming said, according to Reuters.

Based in Netherlands, Pharming Group N.V. is a biopharmaceutical
company engaged in the development and production of human
medicines from the milk of animals.


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


FIRST REPUBLIC: Moody's Changes Outlook on 'E+' BFSR to Negative
----------------------------------------------------------------
Moody's Investors Service changed the outlook to negative from
stable on First Republic Bank's E+ bank financial strength rating
and B3 local and foreign currency deposit ratings.  Concurrently,
Moody's Interfax Rating Agency has downgraded the bank's national
scale Rating to Baa3.ru from Baa2.ru.  The bank's short-term
deposit rating of Not Prime has been affirmed.

Moody's says that the change of outlook on the bank's ratings
reflects a deterioration in FRB's credit profile, evidenced by (i)
weakening revenue generation and cost management, with a net
interest margin of 1.4% and cost-to-income ratio in excess of 80%
at end-H1 2010; (ii) declining capital adequacy -- the equity-to
assets ratio decreased to 9.7% at end-Q3 2010 from 11.7% at year-
end 2009; (iii) high borrower concentrations, as its top 20 credit
exposures account for over 250% of the bank's equity; and (iv)
high market risk appetite, with trading securities accounting for
a third of the bank's total assets at end-Q3 2010 and generating
nearly half of its earnings.

According to Moody's, FRB's E+ BFSR, which translates into a
baseline credit assessment of B3, is constrained by the bank's
small size and undeveloped franchise, modest financial
performance, weak capitalization and high borrower concentration.
On the other hand, the rating is supported by its acceptable
liquidity position to date.

The bank's B3 global local currency deposit rating does not
incorporate any systemic support given the bank's relatively small
size and limited importance to the Russian banking system.
Consequently, it is in line with the bank's BCA of B3.

Moody's says that FRB's ratings currently have limited upside
potential. A positive rating action is possible if the bank
significantly improves its earnings generation and operational
efficiency and demonstrates a much stronger capitalization.

The bank's ratings could be downgraded if its capitalization
demonstrates further material weakening from current levels.
Also, any substantial weakening of the bank's liquidity position
due to an outflow of customer funds may have negative rating
implications.

Moody's last rating action on FRB was implemented on August 29,
2007, when the following ratings were assigned: B3/Not Prime long-
term and short-term foreign and local currency deposit ratings, an
E+ BFSR and a Baa2.ru NSR.  A stable outlook was assigned to the
bank's BFSR and deposit ratings.

The principal methodologies used in this rating were "Bank
Financial Strength Ratings: Global Methodology", published in
February 2007, and "Incorporation of Joint-Default Analysis into
Moody's Bank Ratings: A Refined Methodology", published in
March 2007.

Other methodologies and factors that may have been considered in
the process of rating this issuer can also be found on Moody's
Web site.

Headquartered in Moscow, Russia, FRB reported total assets of
US$643 million and total capital of US$62 million at end-Q3 2010,
according to its regulatory reports.  The bank reported net income
of US$7.8 million for the first nine months of 2010.

Moody's Interfax Rating Agency's National Scale Ratings are
intended as relative measures of creditworthiness among debt
issues and issuers within a country, enabling market participants
to better differentiate relative risks.  NSRs differ from Moody's
global scale ratings in that they are not globally comparable with
the full universe of Moody's rated entities, but only with NSRs
for other rated debt issues and issuers within the same country.
NSRs are designated by a ".nn" country modifier signifying the
relevant country, as in ".ru" for Russia.  For further information
on Moody's approach to national scale ratings, please refer to
Moody's Rating Implementation Guidance published in August 2010
entitled "Mapping Moody's National Scale Ratings to Global Scale
Ratings."

Moody's Interfax Rating Agency specializes in credit risk analysis
in Russia.  MIRA is controlled by Moody's Investors Service, a
leading provider of credit ratings, research and analysis covering
debt instruments and securities in the global capital markets.
Moody's Investors Service is a subsidiary of Moody's Corporation.


ROSAGROLEASING OJSC: Fitch Affirms 'BB+' LT Issuer Default Rating
-----------------------------------------------------------------
Fitch Ratings affirmed Russian-based Rosagroleasing's Long-term
Issuer Default Rating at 'BB+', removed it from Rating Watch
Negative and assigned a Stable Outlook.

RAL's ratings reflect the moderate probability of support from the
Russian state, in case of need due to its almost 100% ownership by
the Agency for Federal Property Management and RAL's importance in
the execution of the Federal Programme for Agricultural Business
Development for 2008-2012.

The removal from RWN reflects improved relations between state
officials and RAL's new management team and actions undertaken by
them to normalize business processes.  Fitch understands that the
General Prosecutor's Office, which claimed in 2009 that the
previous management of the company had acted in violation of
Russian state interests, is no longer investigating RAL.

The state has recently announced plans to partly privatize RAL
between 2013 and 2015.  It intends to keep 50% plus one share but,
to date, no detailed plan or schedule exists.  Fitch notes that
given RAL is currently loss-making and its asset quality is weak,
it might be difficult to attract private investors.

RAL's lease book totaled RUB68 billion at end-FY10 under local
accounts, an increase of more than 20% during 2010.  Non-
performing leases stood at a significant 43.4% at end-2009.  The
company suffered a RUB544 million loss in 2009 with a significant
impact from impairment charges and revaluations.  Fitch notes that
analysis of asset quality and profitability in 2010 is constrained
by the limited disclosure in local financial statements, while
IFRS accounts for 2010 are yet to be published.

RAL's equity/assets ratio was a very high 89% at end-2009, and
Fitch does not expect that to have been significantly eroded
during 2010, given limited business growth and borrowing.  An
additional RUB3 billion equity injection is under registration and
is expected to be finalized in Q111.  The company's Board of
Directors has decreed that the company's debt/equity ratio should
not rise above 25%.

Based on local accounts and management data, liquid assets equaled
about RUB8 billion at end-2010, which fully covered all
outstanding debt, although Fitch notes that available liquidity
might also be used for business expansion in 2011.  The company
plans to grow its lease portfolio by 15% in 2011.

RAL is a state-owned leasing company focused on finance leasing to
the agricultural sector.  The company estimates its share in this
segment at about 80%.  The company has two lines of business:
federal leasing, which is funded by equity and has more favorable
terms and conditions, and commercial leasing, which is financed by
local and international bank borrowing.

The rating actions are as follows:

  -- Long-term foreign currency IDR: affirmed at 'BB+'; removed
     from RWN; assigned Stable Outlook

  -- Short-term IDR: affirmed at 'B'

  -- Support Rating: affirmed at '3'; removed from RWN

  -- Support Rating Floor: affirmed at 'BB+'; removed from RWN

  -- National Long-term rating: affirmed at 'AA(rus); removed from
     RWN; assigned Stable Outlook


===========
T U R K E Y
===========


TURKLAND BANK: Fitch Affirms Individual Rating at 'D'
-----------------------------------------------------
Fitch Ratings has affirmed Turkland Bank A.S.'s ratings, including
its Long-term Issuer Default Rating at 'BBB-' with Stable Outlook.
A full list of rating actions is at the end of this commentary.

T-Bank's IDRs are driven by potential support from its 50%
ultimate owner, Jordan-domiciled Arab Bank plc (rated 'A-'/Stable
Outlook), and other entities of the Arab Bank group.  Lebanon-
based Bank Med Sal (unrated) also owns a 50% stake in T-Bank, and
is a partner of the Arab Bank group in several other joint
ventures.

T-Bank's 'D' Individual Rating reflects the bank's small
franchise, constrained profitability and some asset quality
deterioration.  These are counterbalanced by strengthened internal
risk systems and management, and adequate capitalization.

Although profitability is improving, it remains constrained by the
contracting net interest margin and weak cost efficiency as the
bank continues to invest in expanding its branch network and
staff.  However, Fitch expects long-term profitability to be
supported by a larger proportion of higher margin SME loans and
greater economies of scale as the bank expands.

Asset quality weakened substantially in 2009, following the sharp
contraction in economic activity, and at end-9M10, impaired loans
stood at 6.2% of gross loans, higher than the banking sector
average.  However, in October 2010, the bank sold TRY16.7m of
impaired loans, the first such sale in the bank's history.  This
resulted in a lower impaired loans/gross loans ratio of 4% at end-
2010.

The bulk of funding comes from customer deposits, whilst reliance
on wholesale funding remains low.  Capitalization is adequate and
the shareholders have demonstrated their willingness to support
the bank through numerous capital injections.

T-Bank is a small commercial bank and had 27 branches at end-9M10,
covering the commercial centers of major Turkish cities.  The bank
provides corporate, commercial and SME banking services and offers
retail banking as a complementary business.

The rating actions are:

  -- Long-term foreign currency IDR: Affirmed at 'BBB-'; Stable
     Outlook

  -- Long-term local currency IDR: Affirmed at 'BBB-'; Stable
     Outlook

  -- Short-term foreign currency IDR: affirmed at 'F3'

  -- Short-term local currency IDR: affirmed at 'F3'

  -- National Long-term Rating: affirmed at 'AAA(tur)'; Stable
     Outlook

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '2'


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


BANK STOLYTSYA: Central Bank Appoints Temporary Administrator
-------------------------------------------------------------
Daryna Krasnolutska at Bloomberg News reports that Ukraine's
central bank said it appointed a temporary administrator to
oversee lender PAT Bank Stolytsya for the second time since 2009.

Bloomberg relates that the Kiev-based Natsionalnyi Bank Ukrainy
said in a statement on Monday on its Web site that the central
bank appointed Yevhen Kuno for three months through April 30.  The
NBU also imposed a three-month moratorium for creditors, effective
Monday, Jan. 31.

The central bank imposed administration in Bank Stolytsya for one
year in July 2009, Bloomberg recounts.

PAT Bank Stolytsya was ranked as Ukraine's 146th largest lender by
assets as of Oct. 1, 2010, according to central bank data.


VOLODYMYRSKYI BANK: Goes Into Provisional Administration
--------------------------------------------------------
Ukrainian News reports that the National Bank of Ukraine has taken
Volodymyrskyi Bank into provisional administration.  The report
relates that the provisional administration will function from
Feb. 1 through April 30, 2011.

Serhii Bereza, an employee of the Sumy regional office of the
National Bank of Ukraine, has been appointed provisional
administrator, according to Ukrainian News.  The report relates
that the National Bank of Ukraine has also introduced a three-
month moratorium on satisfying claims of creditors.

Ukrainian News notes that the net assets of the financial
institution were estimated at UAH325.4 million as of January 1,
2011, the credits and debts of clients were valued at UAH385.2
million, and the equity of shareholders was estimated at UAH89.6
million.  The financial institution finished 2010 with a loss of
UAH8.056 million, Ukrainian News discloses.

Headquartered in Sumy, Volodymyrskyi Bank is a Ukrainian small-
sized commercial bank.  The Donetsk-based Private Capital Partners
Company owns 100% of the shares of the financial institution.


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


BRITISH SCHOOL: AA Acquires Firm Following Administration
---------------------------------------------------------
Ray Massey at Mail Online reports that Automobile Association
Developments Limited has snapped up the British School of Motoring
for just GBP1.  The report relates that the cut price take-over
was achieved after the ailing BSM went into administration and was
bought out again within minutes by the AA motoring organization.

Both BSM and the Automobile Association will continue to operate
as separate brands, but under the umbrella of the Automobile
Association's parent company Acromas, which also owns SAGA,
according to Mail Online.

The report notes that BSM driving school has struggled since a
GBP10 million management buyout in Nov. 2009 led by joint managing
directors Abu-Haris Shafi and Nikolai Kesting.

The report discloses that city accountants PricewaterhouseCoopers
(PwC) appointed Matthew Hammond and Rob Lewis as joint
administrators of The British School of Motoring Limited, BSM
Limited, and Scorpio Property Investment Limited.  "Immediately
following the appointment, the administrators were pleased to
confirm the sale today of the business and various assets to
Acromas via Automobile Association Developments Limited," Mail
Online quoted PwC as saying.

"The sale preserves the BSM brand and its 100 year history, and
secures the immediate transfer of employees, driver franchisees,
trainees and student drivers to a large, stable and successful
company," Mr. Hammond said, the report relates.

British School of Motoring is UK's biggest driving school.  BSM
employs 135 employees at the head office in Bristol, and a further
145 located in 71 network centers located across the UK providing
support to the franchised instructors.


CARVILL GROUP: Mulls Creditors Voluntary Arrangement
----------------------------------------------------
BBC News reports that The Carvill Group has confirmed it is in
talks with creditors.

BBC relates that in a statement, the company said it was planning
to enter a Creditors Voluntary Arrangement.  It confirmed that the
business would continue to pursue its building projects and
apologized to creditors, BBC notes.

According to BBC, economist John Simpson said that as of August
2009, the company's borrowing was more than GBP120 million, but
that turnover had dropped.

Mr. Simpson explained what a Creditors Voluntary Arrangement (CVA)
meant in practice.

"It means that so long as the creditors are prepared to work with
the company it can continue in business, we are not saying that it
is closed, we are saying that it is continuing in business but
that it has difficulty in making arrangements to meet all its
obligations," BBC quoted Mr. Simpson as saying.

"If the construction industry had gone the way it was going in
2005 and kept on expanding, this problem would not have arisen.

"What has happened is the value of property they have on their
books has probably decreased and yet they have the loans
outstanding and they are not getting the buildings up to earn the
revenue.

"It is a typical problem for the developers or the building
industry in Northern Ireland.

"You need your creditors to agree let's keep this going as best we
can, with a certain amount of promise in terms of getting the
money back, but let's not wreck the entire thing by putting the
company into liquidation."

Carvill Group is a construction company based in Northern Ireland.
It is the company behind the proposed redevelopment of the Sirocco
Works site in Belfast.


EXOVA PLC: Moody's Assigns 'B3' Rating to GBP155-Mil. Notes
-----------------------------------------------------------
Moody's Investors Service has assigned a definitive B3 rating to
the GBP155 million senior unsecured notes due in 2018 issued by
Exova PLC, a wholly owned subsidiary by Exova Holdings Limited.
The final terms and conditions of the notes are in line with the
draft offering memorandum reviewed for the provisional rating
assignment on October 11, 2010.  The notes have been issued in
order to refinance existing indebtedness.

                         Ratings Rationale

Moody's notes that the B3 rating (LGD 5, 74%) assigned to the
senior unsecured notes is one notch below the B2 Corporate Family
Rating of Exova Holdings Limited due to the effective
subordination of the senior unsecured notes to the group's senior
secured credit facilities (approximately GBP85 million outstanding
as of September 30 pro forma the notes issue).  The senior
unsecured notes have been issued at holding company level, but
benefit from guarantees provided by major operating companies.

The B2 CFR reflects (i) Exova's strong position as a market-
leading provider of laboratory-based testing services covering a
number of geographic markets, industries and testing services;
(ii) its strong customer diversification with a high degree of
customer retention; (iii) its track record of relatively stable
revenue and solid profitability levels with EBITDA margins in the
20% range, supported by the recurring and non-discretionary
character of most testing services, as well as a high degree of
cost structure flexibility; (iv) Moody's expectation of further
performance improvements driven by favorable industry conditions
with additional outsourcing potential, increasing regulation,
shortening of product life cycles supporting the high demand for
testing services; and (v) the group's extended debt maturity
profile.

The B2 CFR also considers (i) the relatively limited scale as
evidenced by revenues of around GBP221 million in 2009; (ii) the
limited performance track record as a stand-alone company; (iii)
the short contract length in some segments, which add constant
renewal pressure at comparable margin levels and could trigger
revenue and margin volatility; (iv) the challenge to de-leverage
its capital structure considering a pro-forma interest coverage of
around 1.2x expected for 2010 and debt to EBITDA of around 6.0x;
and (v) the challenge to remain in compliance with financial
covenants under its bank debt.

Positive rating pressure would require a longer-term track record
of operating performance and credit metrics improvements,
underpinned by a strengthening business profile with reference to
scale.  Positive rating pressure would be prompted by a reduction
of debt/EBITDA towards 5.0x and EBITDA-capex/interest towards
2.0x, as well as continued positive FCF generation.

Negative rating pressure would result from Exova's inability to
further improve profitability and credit metrics over the coming
years.  Triggers for negative rating pressure would be negative
FCF, an eroding liquidity profile -- including a tightening of
headroom under financial covenants -- and an inability to improve
debt/EBITDA towards 5.5x or EBITDA-capex/interest above 1.5x.

Exova headquartered in Newbridge (UK) is a leading provider of
value-added laboratory based testing services, to ensure
compliance of products and processes in line with safety and
quality standards required by customers, accreditation and
regulatory authorities.  In 2009, the company generated revenues
of around GBP221 million.

Upgrades:

Issuer: Exova plc

  -- Senior Unsecured Regular Bond/Debenture, Upgraded to LGD5,
     74% from LGD5, 75%

Assignments:

Issuer: Exova plc

  -- Senior Unsecured Regular Bond/Debenture, Assigned B3


GAJ GROUP: Goes Into Administration, Axes 33 Jobs
-------------------------------------------------
Joey Gardiner at building.co.uk reports that GAJ Group has gone
into administration with the loss of 33 jobs.  The report relates
administrators RSM Tenon, who were appointed on Jan. 31, 2011,
said the company ceased trading last week.

"It appears that the group's situation has been caused by a
combination of factors.  Not only has the economic downturn
spelled disaster for a number of regional and national firms in
the construction sector, but with public spending cuts GAJ had
suffered from the reducing numbers of tenders in the market,"
building.co.uk quoted Bev Marsh, director at RSM Tenon, as saying.

According to the report, GAJ Group was one of the firms identified
by the Office of Fair Trading's investigation into cover-pricing.
GAJ was fined GBP109,683 by the OFT in September 2009, one of 112
companies, including major names such as Kier and Balfour Beatty,
to be accused by the body, the report recounts.

Headquartered in Coventry, GAJ Group is a construction company.
The firm, which turned over GBP18.5 million in 2009, was engaged
in a number of housing and schools projects, including a GBP3
million development of Harris School for Warwickshire council.


LITTLE WONDERS: Goes Into Liquidation
-------------------------------------
St. Albans & Harpenden Review reports that toy store Little
Wonders has gone into liquidation.

Owners of Little Wonders, which was forced to relocate from the
Maltings, are looking for new owners to take on the shop now based
in Holywell Hill, the report says.

St. Albans & Harpenden Review relates that a sign on the shop's
window states a lack of help from Lloyds TSB who told owners
Elena Ripoll and Andrew Mott their business was "not viable to
lend to or support" has forced them into liquidations and
bankruptcy.

The store left its unit in the Maltings last year after the
shopping centre's landlords demanded an unreasonable price for the
lease, St. Albans & Harpenden Review reports.


OSPREY ACQUISITION: Fitch Assigns 'BB+' Senior Secured Rating
-------------------------------------------------------------
Fitch Ratings assigned Osprey Acquisitions Limited (Osprey) a
final senior secured rating of 'BB+'.  The company's Long-term
Issuer Default Rating is 'BB' with a Stable Outlook.  The agency
has also assigned Anglian Water Financing Plc's GBP350 million
bond issue, which is guaranteed by Osprey, a final senior secured
rating of 'BB+'.


PRIVET CAPITAL: 200 Devon Dessert Factory Workers in Limbo
----------------------------------------------------------
BBC News reports that about 200 staff is awaiting a disclosure on
the future of a Devon dessert factory.  The report relates that
some workers at Polestar Foods in Okehampton were not paid last
week and a sister factory in Warwickshire has gone into
administration.

BBC News notes that owner Privet Capital said it would be speaking
to staff later and was taking the situation "extremely seriously".

Polestar Foods was bought out by investment firm Privet in 2010
with the promise of expansion at Okehampton, the report discloses.
KPMG was later appointed administrator at the factory in
Leamington, Warwickshire.


SUBOCEAN GROUP: Technip Confirmed as "Mystery Buyer" for Assets
---------------------------------------------------------------
Scott McCulloch at Business7 reports that French energy services
firm Technip has been confirmed as the buyer of all of Subocean
Group's assets in a deal worth GBP10 million.

According to the report, Subocean Group had made 50 jobs redundant
after it went into administration.  Business7 relates that Technip
said it planned to retain the remaining 300 employees.

As reported in the Troubled Company Reporter-Europe on Feb. 1,
2011, BBC News said that Subocean Group has gone into
administration, and all of the company's assets were sold to an
unnamed multi-national company after 10 days of intense
negotiations.  Bruce Cartwright, head of business recovery
services at PwC in Scotland and joint administrator, said it was
hoped the deal that had been reached would preserve the business
and the majority of its workforce, according to BBC News.

Headquartered in Aberdeen, Subocean Group is a cabling specialist
for the offshore wind industry.  It employs more than 300 staff.


                            *********

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, Julie Anne G. Lopez, 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.


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