TCREUR_Public/110303.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, March 3, 2011, Vol. 12, No. 44

                            Headlines



G E R M A N Y

HECKLER & KOCH: S&P Downgrades Corporate Credit Rating to 'CCC-'
* S&P Cuts Ratings on Lower Tier 2 Debts Issued by German Banks


I C E L A N D

LANDSBANKI ISLANDS: Seizes Former CEO's New York Apartment


I R E L A N D

ALLIED IRISH: Nama Did Not Impose Haircut on Montevetro Loan
ANGLO IRISH: Ex-Lending Head Seeks Court Documents on Quinn Loans
ANGLO IRISH: Investors Seek Legal Action Over NY Hotel Fund
EBS BUILDING: Investor Mulls Stock Market Flotation
EIRCOM GROUP: Definitive Business Plan Needed Before Debt Talks

ULSTER BANK: Names Charles McManus as New CFO; CEO Search Ongoing
* IRELAND: Agents Target Fixed Charge Receiverships


I T A L Y

FIAT INDUSTRIAL: Moody's Assigns 'Ba2' Rating to EUR10-Bil. Notes


K A Z A K H S T A N

CASPIAN SERVICES: Posts US$1.6 Million Net Loss in Dec. 31 Quarter


L U X E M B O U R G

EUROPROP SA: Fitch Cuts Ratings on Two Classes of Notes to 'CCsf'


N E T H E R L A N D S

NEW WORLD: Moody's Changes Outlook on 'B1' Rating to Positive


R O M A N I A

DTH TELEVISION: Romtelecom Offers to Buy BoomTV for EUR8 Million


R U S S I A

BANK OF MOSCOW: Moody's Affirms 'D' Bank Financial Strength Rating
OTP OJSC: Fitch Rates Senior Unsecured Bond Issue at 'BB'
TINKOFF CREDIT: Fitch Assigns 'B-' Rating to Exchange Bonds
TMK CAPITAL: Moody's Assigns 'B1' Senior Unsecured Rating


S P A I N

AYT COLATERALES: Moody's Puts '(P)C (sf)' Rating on Class D Note
CAUFEC: Failure to Agree Deal with Creditors Prompts Receivership
EMPRESAS BANESTO 1: Moody's Puts 'Ca (sf) Rating on Series D Note
EMPRESAS BANESTO: Moody's Assigns Ba1 (sf) Rating on Series C Note


T U R K E Y

ARCELIK AS: Fitch Gives Positive Outlook; Affirms 'BB' Rating


U N I T E D   K I N G D O M

CLINTON CARDS: Places Birthdays (Ireland) Into Administration
COMBINED STABILISATION: Goes Into Voluntary Liquidation
DAIRY FARMERS OF BRITAIN: Receivers Make Final Payment to Farmers
HMV GROUP: Set to Appoint Deloitte to Advise on Debt Talks
HONLEY DAY: Carlin Nurseries Acquires Firm Out of Administration

PLYMOUTH ARGYLE: Needs to Find GBP3 Million or Go Out of Business
VERGO RETAIL: Deadline Day for Brand Lewis's Bid Looms
* UK: No. of "Technically Insolvent" British Firms Rising, R3 Says


X X X X X X X X

* Upcoming Meetings, Conferences and Seminars




                            *********


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G E R M A N Y
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HECKLER & KOCH: S&P Downgrades Corporate Credit Rating to 'CCC-'
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
term corporate credit rating on Germany-based defense contractor
Heckler & Koch GmbH to 'CCC-' from 'CCC+'.  The outlook is
negative.

In addition, S&P lowered the issue rating on HK's EUR120 million
9.25% senior secured notes to 'CCC-' from ' CCC+', in line with
the corporate credit rating.  The recovery rating on the senior
secured notes is unchanged at '4', indicating S&P's expectation of
average (30%-50%) recovery in the event of a payment default.

"The downgrades reflect HK's inability to materially address the
refinancing of its EUR120 million 9.25% senior secured notes,
which mature in July 2011," said Standard & Poor's credit analyst
Jebby Jacob.  "S&P believes that the limited time before maturity
will result in significant execution risk to any preferred method
of refinancing.  This in turn raises the probability of a near-
term default substantially."

In S&P's view, the main difficulty for refinancing the senior
secured notes is the EUR172 million payment-in-kind notes (nominal
value EUR100 million), issued by HK's indirect parent, Heckler &
Koch Beteiligungs GmbH (not rated).  This is because any repayment
of the senior secured notes before their maturity would require a
proportional reduction in the amount of HKB's PIK notes, which
ordinarily would mature in April 2013.  S&P understand that
neither HKB nor HK have sufficient internal resources to make a
proportional payment on HKB's PIK notes.

S&P believes that HK's ability to refinance the US$120 million
notes is highly dependent on the availability of liquidity in the
high-yield bond market, and on whether lenders have an appetite
for highly leveraged assets.  In S&P's opinion, execution risk
also stems from the fact that any investor in HK's future
potential debt instruments will be concerned not only by HKB's PIK
notes, but also by HK's highly aggressive financial and
shareholder policy and shareholder policies.

In S&P's view, there is a high probability of a near-term default
if HK does not address the refinancing risk in a timely manner.
S&P would consider HK to have materially addressed the refinancing
risk only if the company were able to obtain unconditional and
irrevocable access to sufficient liquidity that could be utilized
to repay its EUR120 million senior secured notes in full.

S&P would only consider taking a positive rating action after the
successful completion of HK's refinancing strategy and after S&P's
assessment of HK's liquidity position, financial policy, and
shareholder strategy at the time of refinancing.


* S&P Cuts Ratings on Lower Tier 2 Debts Issued by German Banks
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
ratings on lower Tier 2 subordinated debt issued by Germany-
incorporated banks.  These rating actions follow S&P's review of
Germany's Bank Restructuring Act.  The changes are set out in the
ratings list below.

The impact on ratings is greatest for banks with issuer credit
ratings and LT2 ratings that were accorded uplift from their
respective stand-alone credit profiles on the basis of expectation
of future extraordinary government support.  This is because S&P
believes that there is now a greater likelihood that state aid
will not be made available to support any form of regulatory
capital instrument.  The ratings on Germany-incorporated LT2
subordinated debt instruments are consistent with S&P's
"Methodology For Rating Bank Nondeferrable Subordinated Debt
(Lower Tier 2 Regulatory Capital)" and at similar levels as the
current ratings on similar debt issued by U.K.-incorporated banks.
The issuer credit ratings and other debt issue ratings on Germany-
incorporated banks are not affected by this review.

In summary, the ratings on LT2 issues by Commerzbank AG
(A/Negative/A-1), Eurohypo AG (A-/Negative/A-2), Deutsche
Pfandbriefbank AG (PBB; BBB/Stable/A-2), DEPFA PLC (BBB/Stable/A-
2), and Depfa ACS Bank (BBB/Stable/A-2) have been lowered by three
notches, while the ratings on LT2 issues by Deutsche Bank AG
(A+/Stable/A-1) and its subsidiaries Deutsche Postbank AG
(A/Stable/A-1) and BHW Bausparkasse AG (BHW; A-/Stable/A-2) as
well as those issued by Westdeutsche Immobilienbank (WIB;
BBB+/Negative/A-2) have been lowered by two notches.  The ratings
on the other issues included in the review have been lowered by
one notch.  For investment-grade rated entities, S&P has until now
generally rated LT2 debt one notch below the long-term
counterparty credit rating on the issuer.  S&P's "methodology
"calls for a wider differential between the long-term counterparty
credit rating and LT2 issue ratings in jurisdictions in which S&P
considers that the regulatory and legal frameworks and the likely
behavior of national authorities might lead to default on LT2
instruments without triggering nonpayment of senior debt.

S&P views Germany as a jurisdiction in which regulatory intent and
the legal framework indicate a higher default risk on LT2 issues
relative to senior debt.  New legislation came into effect in
January 2011, which gives German authorities significantly greater
powers that could, S&P believe, be detrimental to the interests of
all bondholders.  S&P's understanding is that the legislation does
not apply to entities incorporated outside Germany, such as the
foreign parents and/or subsidiaries of Germany-incorporated banks.
The ratings on LT2 debt issued by foreign entities associated with
Germany-incorporated banks are therefore unaffected by this review
unless the subsidiaries themselves are based in jurisdictions in
which S&P considers a higher default risk to exist on LT2
instruments, such as the U.K. or Ireland.

S&P's ratings on senior debt issues are not affected by this
review.  S&P's interpretation of the legislation and its intent is
that the authorities' key objective remains the maintenance of
financial market stability.  However, S&P believes the intent is
to avoid to the extent possible the use of public funds to support
shareholders and holders of other regulatory capital instruments.
Accordingly, S&P still see a meaningful likelihood that
extraordinary government support may be made available to support
senior creditors to systemically important institutions but not
subordinated investors.

S&P's ratings on junior subordinated debt issued by Germany-
incorporated banks are not affected because S&P has already
lowered the ratings on these instruments due to the much lower
likelihood that extraordinary government support would benefit
holders of these bonds.  S&P expects that the ratings on junior
subordinated debt instruments will remain lower than those on LT2
instruments as long as S&P sees a greater risk that coupon
deferrals and/or principal writedowns may occur before a bank
reorganization process is initiated.

S&P believes that there has always been ambiguity about government
support and that it is possible that banks which S&P expects to
receive extraordinary support in times of stress might not receive
it.  Conversely, it is possible that government support may also
benefit investors in LT2 instruments or less systemically
important institutions for political and/or economic reasons, but
S&P sees a lower likelihood of this happening in the future.

S&P notes that the new legislation has not yet been tested and
that national and international debate on bank resolution regimes
is developing.  For this reason, S&P may revise its view on the
likelihood of support in the future if S&P was to conclude that
there was a greater likelihood of the authorities sharing the cost
of a bank restructuring with senior creditors.  This could, for
example, be the case if the social and economic costs of
insolvency on the part of a large systemically important bank were
likely to be lower than the economic and/or political cost of
using public funds.

The article setting out S&P's rating methodology for LT2 debt
updates its definition of default.  If national authorities
support timely servicing of senior debt but allow nonpayment on
nondeferrable subordinated instruments that qualify as regulatory
capital (such as LT2 bonds), the ratings on the affected
subordinated issues would be lowered to 'D' at the point of
default, but the counterparty credit rating on the issuer would no
longer be lowered automatically to 'SD' (selective default).

S&P sees Tier 1 and upper Tier 2 instruments as more vulnerable
than LT2 debt to payment suspension because of the coupon deferral
clauses included in the terms of those instruments at origination.
S&P has already increased the rating differential between long-
term counterparty credit ratings and the ratings on Tier 1 and
upper Tier 2 issues.

                           Ratings List

             Senior subordinated debt ratings lowered

                                                         To        From
                                                         --        ----
    Commerzbank AG                                       BBB-      A-
    Eurohypo AG                                          BB+       BBB+
    Dresdner Funding Trust IV                            BBB-      A-
    Deutsche Pfandbriefbank AG                           BB-       BBB-
    DEPFA BANK PLC                                       BB-       BBB-
    Depfa ACS Bank                                       BB-       BBB-
    Deutsche Bank AG                                     BBB+      A
    Deutsche Postbank AG                                 BBB       A-
    BHW Bausparkasse AG                                  BBB-      BBB+
    Westdeutsche ImmobilienBank                          BB+       BBB
    Volkswagen Bank GmbH                                 BBB       BBB+
    UniCredit Bank AG                                    BBB+      A-
    DekaBank Deutsche Girozentrale                       BBB+      A-
    DZ BANK AG Deutsche Zentral-Genossenschaftsbank      A-        A
    Deutsche Genossenschafts-Hypothekenbank AG           BBB+      A-
    DVB Bank SE                                          BBB+      A-
    Deutsche Apotheker- und Aerztebank eG                A-        A
    WL BANK AG Westfaelische Landschaft Bodenkreditbank  A-        A


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I C E L A N D
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LANDSBANKI ISLANDS: Seizes Former CEO's New York Apartment
----------------------------------------------------------
According to Bloomberg News' Omar R. Valdimarsson, Reykjavik-based
newspaper DV reported, citing Landsbanki Islands hf. spokesman
Pall Benediktsson, reported that Jon Asgeir Johannesson, the
former chief executive officer at failed retailer Baugur Group hf,
has lost his New York City Gramercy Park apartment after it was
repossessed by the bank.

Landsbanki, which collapsed in October 2008, is working to
liquidate assets as it strives to repay creditors, Bloomberg
notes.  Mr. Johannesson was also a majority shareholder in failed
Icelandic lender Glitnir Bank hf, Bloomberg discloses.

                    About Landsbanki Islands

Landsbanki Islands hf, also commonly known as Landsbankinn in
Iceland, is an Icelandic bank.  The bank offered online savings
accounts under the "Icesave" brand.  On Oct. 7, 2008, the
Icelandic Financial Supervisory Authority took control of
Landsbanki and two other major banks.

Landsbanki filed for Chapter 15 protection on Dec. 9, 2008 (Bankr.
S.D. N.Y. Case No.: 08-14921).  Gary S. Lee, Esq., at Morrison &
Foerster LLP, represents the Debtor.  When it filed for protection
from its creditors, it listed assets and debts of more than
US$1 billion each.


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ALLIED IRISH: Nama Did Not Impose Haircut on Montevetro Loan
------------------------------------------------------------
Simon Carswell at The Irish Times reports that the National Asset
Management Agency imposed no haircut on Allied Irish Bank's loan
on the Montevetro building in Dublin as the loan was provided
after the government announced plans for the agency.

AIB lent about EUR30 million to the developer of the building,
Real Estate Opportunities, in which Treasury Holdings is a major
shareholder, after April 2009 when Nama was unveiled, The Irish
Times recounts.

No discounts were imposed on development loans provided after
April 2009 following an agreement between the banks and Central
Bank governor John Hurley, The Irish Times discloses.

According to The Irish Times, the purpose of the agreement was to
prevent the banks from ceasing all development lending amid fears
that Nama would apply losses on new loans to developers.

Nama's payment of the face value on the AIB loan substantially
reduced the profit that it made on the sale of the office
building, The Irish Times notes.

Allied Irish Banks, p.l.c., together with its subsidiaries --
http://www.aibgroup.com/-- 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 Jan. 20,
2011, Standard & Poor's Ratings Services raised its ratings on the
lower Tier 2 subordinated debt issued by Allied Irish Banks PLC
(AIB; BBB/Watch Neg/A-2), which had been subject to the exchange
offer, to 'CCC' from 'D'.  The 'BBB/A-2' counterparty credit
ratings on AIB remain on CreditWatch with negative implications,
where they were placed on Nov. 26, 2010.

"This 'CCC' rating reflects the fact that AIB will need to raise
further equity capital before end-February, that it may require
further capital as a result of the PCAR stress test, and our view
that there is a clear and present risk that these instruments
could be subject to further restructuring-like action in order to
achieve it," said Standard & Poor's credit analyst Nigel
Greenwood.

The ratings on AIB were placed on CreditWatch with negative
implications on Nov. 26, 2010, pending the outcome of a sovereign
rating review.  S&P views the fortunes of the Irish sovereign as
intertwined with those of the banking system, and a downgrade of
the sovereign may impact its ratings on AIB.


ANGLO IRISH: Ex-Lending Head Seeks Court Documents on Quinn Loans
-----------------------------------------------------------------
Mary Carolan at The Irish Times reports that former Anglo Irish
Bank head of lending Tom Browne is seeking court orders requiring
the bank to disclose extensive documents concerning loans made to
businessman Sean Quinn and his family.

According to The Irish Times, the loans were made to fund
liabilities incurred as a result of transactions made to finance
the purchase of shares in Anglo itself.

Anglo has brought proceedings against Mr. Browne over unpaid loans
of some EUR50 million, The Irish Times discloses.  He claims those
loans are vitiated due to alleged fraudulent misrepresentation of
Anglo via its "silence" in the last three months of 2007 over
loans to Mr. Quinn and other matters relevant to its share price,
The Irish Times recounts.  He claims that various loans were
issued to artificially enhance the bank's share price, The Irish
Times notes.

According to The Irish Times, he alleges Anglo advanced millions
of euro to him in late 2007 to buy the bank's shares when it and
various State authorities knew Anglo had lent substantial sums to
Mr. Quinn in November 2007 to fund Mr. Quinn's liabilities under
Contracts for Difference (CFD) to finance the purchase of shares
in Anglo.  He claims the bank failed to tell him about matters
which, if known to the financial markets, would have had "a
devastating effect" on Anglo's stability, The Irish Times states.
He says he would not have executed his share options in late 2007
if he was aware of these matters and consequently would not have
suffered losses when the bank's share price collapsed, according
to The Irish Times.

Discovery issues were before Mr. Justice Peter Kelly on Monday,
The Irish Times relates.  In addition to the Quinn loan documents,
Mr. Browne is seeking a wide range of internal documents aimed at
ascertaining the state of knowledge from 2007 within the bank
about the fall in its share price, The Irish Times notes.  He also
wants documents related to the reasons for the movement of
EUR7.3 billion in loans from Anglo to Irish Life Permanent, The
Irish Times discloses.  All documents related to the consideration
by Anglo senior management of Mr. Browne's indebtedness over the
duration of the loan facilities are also sought, according to The
Irish Times.

Last December, Mr. Justice Kelly ruled that Mr. Browne -- managing
director lending Ireland with Anglo between early 2005 and 2007 --
may defend the bank's EUR50 million claim against him on grounds
including that the bank was guilty of fraudulent misrepresentation
in allegedly failing to tell him in 2007 about the purchase of 28%
of its shares by Mr. Quinn, The Irish Times recounts.  The case
against Mr. Browne, Brighton Road, Foxrock, Dublin, arises from
loans of GBP31.6 million and GBP1.91 million; EUR11.6 million and
US$765,976 to Mr. Browne, including a loan of February 2008 to buy
property at Bishopsgate in London, The Irish Times discloses.

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

                        *     *     *

As reported by the Troubled Company Reporter-Europe on 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' 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.


ANGLO IRISH: Investors Seek Legal Action Over NY Hotel Fund
-----------------------------------------------------------
Mary Carolan at The Irish Times reports that the Commercial Court
was told on Wednesday that Anglo Irish Bank told investors who
invested US$50 million (EUR36.4 million) in the bank's New York
hotels investment fund there was no other planned hotel
development in the relevant area of Manhattan, although Anglo had
provided funds to refurbish another hotel in the area.

According to The Irish Times, Martin Hayden SC, for investor
Gerard McCaughey said that the "black brochure" about the hotel
investment fund given to potential investors by Anglo in
September 2006 had stated there "is no planned hotel development
in Midtown East," but Anglo was involved in funding the
refurbishment of the Crown Plaza Hotel nearby.

Mr. Hayden said that while the brochure did refer to the hotel
fund as being a "high-risk" investment and Mr. McCaughey accepted
it was high risk, his case was he should have been given
information about those risks, particularly the renovation costs
for the hotels, The Irish Times notes.

It is claimed that the brochure referred to renovation costs of
US$28.4 million for the two hotels, plus management fees and other
costs of US$7 million, but did not disclose there was at that
point no basis on which Anglo could have advanced realistic
renovation costs, according to The Irish Times.

The Irish Times says the investors did not know the renovation
budget was still a live issue while Anglo knew any major rise in
the renovation costs would diminish the prospect of a return on
the investment.

Mr. McCaughey filed a legal the action against Anglo and the
Anglo-owned Delaware-based Mainland Ventures Corporation (MVC)
over the Anglo Irish New York Hotel Fund, a private equity
investment in which 50 people invested an average US$1 million
each in 2006, The Irish Times recounts.

The action is regarded as a test action for cases by 23 other
investors, The Irish Times notes.

Both defendants are being sued for US$23 million over alleged
fraudulent and/or reckless concealment and/or misrepresentation
concerning the fund, set up to purchase and renovate the Beekman
Tower Hotel and Eastgate Tower Hotel, according to The Irish
Times.

The investors claim the hotel investment project was arranged by
Anglo Irish Private Banking with its New York office, The Irish
Times states.

The defendants deny the claims, The Irish Times notes.  They plead
the action is premature and misconceived as the fund brochure
provided for a minimum target investment period of five years, The
Irish Times discloses.

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

                        *     *     *

As reported by the Troubled Company Reporter-Europe on 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' 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.


EBS BUILDING: Investor Mulls Stock Market Flotation
---------------------------------------------------
Simon Carswell at The Irish Times reports that US billionaire
Wilbur Ross, an investor in the Cardinal consortium which is in
pole position to buy EBS Building Society, said it was considering
a stock market flotation to value the potential return on their
investment.

According to The Irish Times, speaking to CNBC television,
Mr. Ross said the key to securing a return on the takeover of EBS
was how quickly Cardinal could get the lender back to
profitability.  The Irish Times says this would depend on whether
Cardinal could bring the building society's funding costs under
control and whether it could write down the mortgages to the value
of the market.

The Irish Times relates that Mr. Ross said EBS was losing money on
fixed-rate mortgages.

The consortium, led by Dublin firm Cardinal and backed by Mr. Ross
and US private equity group Carlyle, was last week chosen as
preferred bidder for Government-owned EBS, ahead of Irish Life
Permanent, The Irish Times discloses.

Mr. Ross, as cited by The Irish Times, said Cardinal would
negotiate the "fine-tuning" of the EBS deal over the coming
months.

The consortium has offered to invest just over EUR600 million in
EBS and to cover a further EUR450 million of potential future
losses, The Irish Times states.

                        Capital Injection

As reported by the Troubled Company Reporter-Europe on Dec. 17,
2010, The Irish Times said that the Irish government injected a
further EUR525 million into EBS.  The new funding came through
special investment shares issued to Minister for Finance
Brian Lenihan, The Irish Times disclosed.  The shares give Mr.
Lenihan control of the building society, including the composition
of the board and passing of members' resolutions, The Irish Times
noted.

EBS Building Society is Ireland's largest building society.
Servicing more than 400,000 members, it distributes its products
through a branch and franchised agency network as well as handling
direct business both over the telephone and via the Internet.
EBS Building Society provides mortgage lending, savings,
investments, and insurance products in Ireland.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on Feb. 14,
2011, Moody's Investors Service downgraded the tier 1 instruments
of EBS Building Society (issued through EBS Capital No1 S.A.) one
further notch to C (hyb) from Ca (hyb).  This follows the
announcement of an offer from EBS Building Society to buy back its
dated subordinated and tier 1 debt for cash at substantial
discounts to the par value.  Moody's would classify the exchange
offer on the dated subordinated debt as a distressed exchange.
The society is rated Baa3/P-3 for bank deposits and senior debt
and has a D- bank financial strength rating (mapping to Ba3 on the
long-term scale).  The dated subordinated debt of the bank is
rated Ca.  Moody's said the outlook on the ratings is negative.


EIRCOM GROUP: Definitive Business Plan Needed Before Debt Talks
---------------------------------------------------------------
Donal O'Donovan and John Mulligan at Irish Independent report that
the management of Eircom Group will need to present a definitive
business plan before lenders can properly engage in negotiations
on restructuring its EUR3.75 billion of debt.

Irish Independent's sources said that the plan will clarify how
much debt the company can sustain long term and provide the basis
for renegotiation, including writing off some bonds.

Eircom's management on Tuesday confirmed that it is working with
financial advisers JPMorgan Chase and Gleacher Shacklock to come
up with a long term financial strategy, Irish Independent relates.
One of the advisers told the Irish Independent that the strategy
will include asking lenders to agree to write off some of the
company's debt.  That would be a precondition for shareholders
Singapore Technologies Telemedia (STT) and its employee share
ownership trust (ESOT) injecting up to EUR300 million into the
business, according to Irish Independent.  The cash would put the
company on a sound financial footing, benefiting remaining
lenders, Irish Independent states.

According to Irish Independent, the source said that holders of
EUR600 million of unsecured payment-in-kind notes, which are the
most junior form of debt at Eircom, face being wiped, adding that
more senior bondholders could also have to shoulder some losses.

Irish Independent relates that a group of the most senior lenders
have formed a committee to negotiate with the company.  IFSC-based
funds Harbourmaster, Eircom's biggest lender, and Avoca have
joined forces with Blackrock, Alcentra and Deutsche Bank, Irish
Independent discloses.  A source at one of the five funds told the
Irish Independent that they will seek an independent business
review (IBR) of Eircom in addition to seeing figures from the
company before accepting any deal.

Eircom chief executive Paul Donovan on Tuesday said that
preliminary talks with lenders will commence either this month or
in April, Irish Independent notes.

                            Union Talks

According to Irish Independent, Mr. Donovan said negotiations with
the Trade Union Alliance-- which primarily includes members of the
Communications Workers' Union (CWU) -- on further cost-cutting
should yield proposals by the end of this week that can then be
put to union members.  Mr. Donovan told the Irish Independent that
the talks commencing this month or next are preliminary. He
declined to be drawn on the possible consequences for bondholders
if an equity cure is initiated, Irish Independent notes.

                            Results

According to Irish Independent, in the three months to the end of
December 2010, Eircom's revenues fell 6% to EUR438 million, while
adjusted earnings before interest, tax, depreciation and
amortization (EBITDA) declined 3% to EUR154 million.

                         Covenant Breach

"What we've done is acknowledge that there is a significant risk,
depending on trading conditions, that the group might breach its
financial covenants," Irish Independent quotes Mr. Donovan as
saying, adding that talks with bondholders and shareholders would
run in tandem.

As reported by the Troubled Company Reporter-Europe, The Irish
Times said that in November 2010, Eircom signaled that it could
breach its banking covenants within 12 months.  Ratings agency
Moody's suggested a breach could come by the end of June, The
Irish Times noted.

Headquartered in Dublin, Ireland, Eircom Group --
http://www.eircom.ie/-- is an Irish telecommunications company,
and former state-owned incumbent.  It is currently the largest
telecommunications operator in the Republic of Ireland and
operates primarily on the island of Ireland, with a point of
presence in Great Britain.


ULSTER BANK: Names Charles McManus as New CFO; CEO Search Ongoing
-----------------------------------------------------------------
Geoff Percival at Irish Examiner reports that Ulster Bank has
named former Royal Bank of Canada executive, Charles McManus, as
its new chief financial officer.

According to Irish Examiner, the bank stressed that its hunt for a
new chief executive remains "ongoing".

Irish Examiner relates that at Ulster, he replaces Senan Murphy,
who had been chief operating officer and finance director, who
left the company in January to pursue other business
opportunities.  Mr. McManus will also take Mr. Murphy's place on
the bank's board of directors, Irish Examiner notes.

As reported by the Troubled Company Reporter-Europe on March 1,
2011, BreakingNews.ie said that Ulster posted a loss of
GBP761 million (EUR887 million) in 2010.  The figure, which is
almost double the GBP368 million (EUR433 million) recorded in
2009, included almost GBP1.2 billion (EUR1.4 billion) which was
set aside for loan losses, up from GBP649 million (EUR764 million)
in 2009, BreakingNews.ie disclosed.  Excluding loan losses,
profits were up 50% to GBP400 million (EUR471 million), mainly due
to cost cuts, BreakingNews.ie noted.  Ulster Bank also transferred
some of its bad assets to a section of RBS, BreakingNews.ie
related.  Impairment losses on these were just over GBP2.7 billion
(EUR3.1 billion) last year, up from GBP1.4 billion (EUR1.6
billion) in 2009, BreakingNews.ie stated.

                        About Ulster Bank

Ulster Bank Group -- http://www.ulsterbank.ie/-- is a wholly
owned subsidiary of the enlarged RBS group.  First Active, a
leading mortgage provider, was acquired by Ulster Bank Group in
January 2004 in a EUR887 million transaction.  Serving personal
and small business customers, Ulster Bank Retail Markets provides
Branch Banking and Direct Banking throughout the Republic of
Ireland and Northern Ireland.  Ulster Bank Corporate Markets
caters for the banking needs of business and corporate customers,
treasury and money market activities, asset financing, wealth
management, ebanking and international services, with a continued
focus on providing customer choice and value.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Dec. 23,
2010, Fitch Ratings affirmed Ireland-based Ulster Bank Limited's
Long-term Issuer Default Rating at 'A+' with a Stable Outlook,
Short-term IDR at 'F1+', Support Rating at '1' and Individual
Rating at 'E'.


* IRELAND: Agents Target Fixed Charge Receiverships
---------------------------------------------------
Donal Buckley at Irish Independent reports that a number of
leading Irish estate agents are gearing up to take on fixed charge
receiverships.  Lisney, Savills, CB Richard Ellis (CBRE) and
Colliers are following the lead taken by HWBC, which stole a march
by teaming up with Allsops, the United Kingdom agency that is a UK
market leader in these types of receiverships, Irish Independent
relates.

The moves come as the National Asset Management Agency (NAMA) and
the state-owned Anglo Irish Bank is in the process of identifying
properties that would be suitable for these types of
receiverships, according to Irish Independent.

Meanwhile, the report notes that Allsop Space will launch its
catalogue later this week for the first Irish auction of
distressed and receivership properties.  Irish Independent relates
that an estimated 10 to 15 commercial properties are expected to
be included in the catalogue, most of which will be devoted to
residential properties.

Stephen McCarthy of Allsop Space said that most of the commercial
properties will be tenanted retail outlets that are generating
investment income, the report notes.  Unlike HWBC, Irish
Independent relates, Allsop Space does not provide a fixed charge
receivership or LPA service.

Irish Independent says that Guy Hollis of CBRE said his firm has
provided this service in the UK and it and many of its Irish
competitors "have the ability to provide this service if required,
and we are on the NAMA Panel as are others".

Irish Independent discloses that this type of receivership saves
on professional fees by managing the receivership, the property,
its sale or leasing.  However in many cases they may still appoint
another agency to undertake a sale, the report adds.


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


FIAT INDUSTRIAL: Moody's Assigns 'Ba2' Rating to EUR10-Bil. Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)Ba2 long-
term and (P) Not Prime short-term rating to the EUR10 billion
global medium-term note program of Fiat Industrial S.p.A.

Issuing entities under the GMTN program are Fiat Industrial's
wholly owned, direct subsidiaries Fiat Industrial Finance Europe
S.A. and Fiat Industrial Finance North America.  These entities
benefit from an unconditional and irrevocable guarantee of Fiat
Industrial.

                        Ratings Rationale

"The rating reflects that the senior unsecured notes issued under
the GMTN program will be structurally subordinated to a
significant portion of debt located at Fiat Industrial's operating
subsidiaries, with a preferred claim on the cash flows at these
entities," said Falk Frey, a Moody's Senior Vice President and
lead analyst for Fiat Industrial.  "Consequently, the provisional
rating of Fiat industrial's GMTN program is one notch below the
group's corporate family rating, according to Moody's Loss Given
Default Methodology," added Mr. Frey.

Moody's understands that, going forward, Fiat Industrial Finance
Europe and Fiat Industrial Finance North America will serve as
funding vehicles, accessing capital markets for the industrial
activities of the whole Fiat Industrial Group, including Case New
Holland (rated Ba3/stable), which previously arranged its own
financing without support from its former parent, Fiat S.p.A.
CNH's current capital market debt consists of three bonds
amounting to US$2.7 billion (approximately EUR2 billion) --
US$1 billion maturing in 2013, US$1.5 billion maturing in 2017 and
US$254 million maturing in 2016) -- and securities outstanding
under its asset-backed security facility.

Assignments:

Issuer: Fiat Industrial Finance Europe S.A.

  -- Multiple Seniority Medium-Term Note Program, Assigned a range
     of (P)NP to (P)Ba2, LGD4-67%

Issuer: Fiat Industrial Finance North America, Inc.

  -- Multiple Seniority Medium-Term Note Program, Assigned a range
     of (P)NP to (P)Ba2, LGD4-67%

Moody's previous rating action on Fiat industrial was implemented
on Jan. 5, 2011, when the rating agency assigned to the company a
first-time CFR of Ba1/NP with a stable outlook.

Fiat Industrial S.p.A. (Ba1/stable), incorporated on July 21,
2010, in Torino, Italy, is the parent company of the demerged
activities of Fiat S.p.A (Ba1/negative).  Fiat Industrial's
principal activities are: (i) the manufacturing and distribution
of agricultural and construction equipment through its subsidiary
CNH, and commercial vehicles through its subsidiary Iveco; and
(ii) the industrial and marine activities of Fiat Powertrain.  In
addition, Fiat Industrial provides financing solutions to dealers
and end customers through financial services subsidiaries as well
as through joint ventures with various financial institutions.  In
2010, the group generated pro-forma revenues of approximately
EUR21.3 billion.  CNH represented approximately 56% of group
revenues, Iveco 41% and FPT Industrial 9%.


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


CASPIAN SERVICES: Posts US$1.6 Million Net Loss in Dec. 31 Quarter
------------------------------------------------------------------
Caspian Services, Inc., filed its quarterly report on Form 10-Q,
reporting a net loss of US$1.6 million on US$15.6 million of
revenues for the three months ended Dec. 31, 2010, compared with a
net loss of US$2.2 million on US$13.4 million of revenues for the
same period of the prior fiscal year.

The Company's balance sheet at Dec. 31, 2010, showed
US$114.9 million in total assets, US$85.3 million in total
liabilities, and stockholders' equity of US$29.6 million.

As reported in the Troubled Company Reporter on Jan. 29, 2011,
Hansen, Barnett & Maxwell P.C., in Salt Lake City, Utah, expressed
substantial doubt about Caspian Services' ability to continue as a
going concern, following the Company's results for the fiscal year
ended Sept. 30, 2010.  The independent auditors noted that the
Company is in violation of certain loan covenants which allows for
the lenders to exercise acceleration features and declare the
loans and accrued interest immediately due and payable.  Should
any of these parties determine to exercise their acceleration
rights, the Company would not have sufficient funds to repay any
of the loans.  At Sept. 30, 2010, the Company also had negative
working capital of US$50.3 million.

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

               http://researcharchives.com/t/s?7425

Salt Lake City, Utah-based Caspian Services, Inc., provides
diversified oilfield services to the oil and gas industry in
western Kazakhstan.


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


EUROPROP SA: Fitch Cuts Ratings on Two Classes of Notes to 'CCsf'
-----------------------------------------------------------------
Fitch Ratings has downgraded EuroProp S.A. (Compartment 1)'s class
B to E notes and affirmed the class A notes:

  -- EUR303m class A: affirmed at 'Asf'; Outlook Negative

  -- EUR41m class B: downgraded to 'Bsf' from 'BBsf'; Outlook
     Negative

  -- EUR28.1m class C: downgraded to 'CCCsf' from 'Bsf'; assigned
     Recovery Rating 'RR2'

  -- EUR30.5m class D: downgraded to 'CCsf' from 'CCCsf'; assigned
     Recovery Rating 'RR6'

  -- EUR15.8m class E: downgraded to 'CCsf' from 'CCCsf'; assigned
     Recovery Rating 'RR6'

The affirmation of the class A notes reflects the significant
increase in credit enhancement resulting from the redemption of
four loans and the sequential allocation of these funds at the
January 2011 interest payment date.  The downgrades of the class B
to E notes and the Negative Outlooks reflect the increased risk of
losses under the Sunrise loan, the sole remaining loan.

The Sunrise loan, which has reported significant deterioration in
collateral income and value, defaulted in July 2010 for breach of
various loan covenants and was subsequently transferred to special
servicing.  Consequently, some of the underlying borrowers were
placed into administration.  Despite this, the special servicer
intends to dispose of the properties in an orderly manner, through
an asset sale, without needing to go through a formal mortgage
enforcement process.  This process will need to be completed by
the legal final maturity date of the bonds in August 2013.

The loan is secured by a portfolio of predominantly secondary
quality shopping centers and retail warehouses located across
Germany.  The properties have seen a significant increase in
vacancy, which has reached 14.5% from 11.8% a year ago and 4.4% at
closing.  The lease length is also of concern: the weighted
average remaining term stands at 4.2 years and approximately 8% of
leases expired ahead of the January IPD.  Fitch has not received
any additional information concerning these leases due to the
insolvency of the borrower; however, according to the special
servicer, updated information will be available at the next IPD in
April 2011.

A June 2010 re-valuation by DTZ showed a 28% decline in the
collateral value since closing and an increase in the reported
loan-to-value ratio to 101.2%, as of the October 2010 IPD.
Fitch's LTV of 122% reflects the agency's concerns about potential
additional income deterioration in the short to medium term.  The
loan structure also includes a B-note, which is subordinated to
the securitized debt and brings the reported whole loan LTV to
106%.

This transaction is a securitization of eight commercial mortgage
loans originated by Citibank, N.A., London Branch ('A+'/RWN/'F1+')
and Citibank International PLC ('A+'/RWN/'F1+'), which closed on
July 31, 2006.  Since closing, the prepayment of seven loans,
together with scheduled amortization, has reduced the outstanding
balance to EUR263.2 million from EUR648.5 million at closing.


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


NEW WORLD: Moody's Changes Outlook on 'B1' Rating to Positive
-------------------------------------------------------------
Moody's Investors Service has changed the outlook to positive on
New World Resources N.V.'s corporate family rating and
probability-of-default rating of B1.  At the same time the rating
agency confirmed the Ba3 LGD3 (32%) senior secured rating on its
EUR500 million worth of notes due in 2018; and the company's B3
LGD5 (87%) rating on its EUR268 million worth of notes due in
2015.

"The positive outlook reflects the strong improvement in company's
operating performances during the later part of 2010, thanks to
improving market conditions, and Moody's view that the company has
rebuilt part of its financial flexibility that it lost during the
economic crises", said Paolo Leschiutta, a Moody's Vice President-
Senior Analyst and lead analyst for NWR.  "The outlook reflects
also Moody's expectation that solid cash generation will allow the
group to maintain relatively strong credit metrics going forward",
adds Mr. Leschiutta.  The confirmation of NWR's debt ratings
follow the cancellation of NWR public tender offer to acquire 100%
of Lubelski Wegiel Bogdanka S.A. for a total cash consideration of
EUR857 million and the signing of a new EUR100 million super
priority bank facility, earlier this month.

On 24 February NWR reported revenues of approximately
EUR1.6 billion and EBITDA of EUR464 million for the FY ending
December 2010, up 42% and 160% respectively from 2009.  These
results were achieved thanks to a strong recovery in demand and
prices for both coking coal and coke during 2010 on the back of
the recovery experienced by the steel industry in Central Europe.
On a preliminary basis as at December 2010, NWR reported a
financial leverage, measured as debt to EBITDA as adjusted by
Moody's for operating leases and pension liabilities, of 1.8x (on
a preliminary basis), reducing from 6.5x a year earlier.  Moody's
notes how 2009 key financial metrics were affected by the
difficulties experienced by the company during the year given the
sharp contraction in steel manufacturing.

Going forward, Moody's would expect the company's key credit
metrics to marginally deteriorate (compare to those achieved
during 2010) as NWR is expected to invest in developing its
Debiensko project which, however, should provide with significant
amount of additional reserves to the company.  The ratings could
be upgraded if NWR demonstrates its ability to weather potential
cyclicality in the market and sustain a robust financial profile,
with financial leverage below 3x and positive free cash flow
generation (in accordance with Moody's definition - i.e.  after
dividends) on an ongoing basis.  On the other hand, negative
pressure on the rating could arise following deterioration in
market conditions or in the liquidity profile of the company or in
the case of large debt funded acquisitions.  Ratings could also be
downgraded if the company fails to generate positive free cash
flow (after dividend payment) on an ongoing basis and/or if
financial leverage had to increase above 4x for a prolonged period
of time.

The B1 CFR reflects (i) NWR's strategic position as a major player
in its sector in Central Europe; (ii) the prospects for increasing
access to coal reserves; (iii) the progress made in improving
operating efficiency through the modernization program and (iv)
the relatively strong cash generation and sound liquidity profile.
However, these positive credit considerations are offset by: (i)
the ongoing market volatility; (ii) NWR's significant operating
risks, given the depth of its mines; and (iii) the high level of
the company's customer and business concentration.  The ratings
are supported as well by an adequate liquidity profile and the
company's conservative financial policy which compensate the
potential for future acquisitions.

Moody's previous rating action on NWR was implemented on
Oct. 6, 2010, when the rating agency affirmed the company's B1 CFR
and PDR.  Concurrently, the rating agency placed under review with
direction uncertain (i) the Ba3 senior secured rating on NWR's
EUR500 million worth of notes due in 2018; and (ii) the B3 rating
on the company's EUR268 million worth of notes due in 2015.

Headquartered in the Netherlands, New World Resources N.V. is the
largest hard coal mining group in the Czech Republic and operates
through its main subsidiary OKD, a.s.  The company reported
revenues of EUR1.6 billion and EBITDA of EUR464 million during FYE
December 2010.  The company exploits the Upper Silesian basin in
the north-eastern part of the Czech Republic and is expanding its
activity in Poland.


=============
R O M A N I A
=============


DTH TELEVISION: Romtelecom Offers to Buy BoomTV for EUR8 Million
----------------------------------------------------------------
HotNews.ro reports that telecom operator Romtelecom signed last
week a contract to take over the subscriber base and other actives
of DTH Television Group, the owner of digital satellite television
Boom TV, for EUR8 million.

HotNews.ro says Romtelecom's was the only firm offer submitted for
Boom TV, a satellite TV service operator with 95,000 subscribers.

Adrian Lotrean, a partner at Transilvania Insolvency House, the
judicial administrator of the company, told HotNews.ro that the
contract was complex as it included several phases to be
accomplished, including an approval of the Competition Council
over the deal.

DTH Television Group is a Romanian telecom company that operates
Boom TV.  The company entered insolvency in May last year, when
UniCredit Tiriac Bank, Grecos Energy Telecomunicatii and Eurocom
Networks & Technologies have asked for its insolvency.  The
company had a EUR18.5 million debt with UniCredit Tiriac Bank.


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


BANK OF MOSCOW: Moody's Affirms 'D' Bank Financial Strength Rating
------------------------------------------------------------------
Moody's Investors Service has affirmed these ratings of JSC Bank
of Moscow: long-term local and foreign currency debt and deposit
ratings of Baa2; long-term foreign currency subordinated debt
rating of Baa3; Prime-2 short-term foreign currency deposit rating
and the Bank Financial Strength Rating of D.  Moody's maintained a
negative outlook on all long-term ratings and the BFSR.

                        Ratings Rationale

According to Moody's, the affirmation follows the recent
announcement that the City of Moscow's 46% stake in BOM, and the
City's 25% stake in Stolichnaya Insurance Group (which, in turn,
holds 17% of BOM) have been acquired by Bank VTB.  While this
transaction reduces the support assumptions from the City of
Moscow (which, prior to the sale, provided a one-notch uplift from
its BCA), these support considerations together with systemic
support are likely to be, at least partially, substituted by
support from VTB when it eventually completes its acquisition
phase and takes the ownership and managerial control over BOM.  As
a result, Moody's will assess the level of parental support from
VTB after greater clarity is achieved over the strategic fit and
integration of BOM in VTB group.  Thereafter, the rating agency
will make its conclusion about the final level of BOM's long-term
and short-term ratings.  To date, such uncertainties over the
extent of future support from VTB continue to be reflected in the
negative outlook assigned to BOM's long-term ratings, as the
acquisition is currently in intermediary stage.

VTB's recent transaction and the election of VTB's chairman as the
head of the Board of Directors of BOM provide additional
justification that VTB's acquisition of BOM will be accomplished
in the short to medium term, and uncertainties over the parental
support from VTB would be eliminated in the near future.

However, Moody's cautions that there is still a possibility of
escalation of disagreement between BOM's minority shareholders on
one side and VTB and the City of Moscow on the other side,
although recently such possibility has been materially reduced.
If such disagreement were to escalate, Moody's would consider
lowering the bank's BFSR and reducing current support assumptions
built into the bank's long- and short-term ratings.  Currently,
the bank's ratings benefit from two notches of systemic support
and one notch of support from City of Moscow (the latter may later
be substituted for support from VTB).

The last rating action on Bank of Moscow was on Jan. 19, 2011,
when Moody's downgraded the bank's long-term global ratings to
Baa2 (negative outlook) from Baa1.

                            About BOM

BOM is one of the dominant players in Russia and is among the
country's leading universal banks.  Although BOM started its
expansion by leveraging the relationships with the City of Moscow,
it has diversified nationwide and became one of the country's
largest universal banks, competing with other state-owned banks.
Its banking business is managed through its various subsidiaries
across countries of the Commonwealth of Independent States (CIS).
However, its primary market is Russia, where it is the fifth-
largest bank in terms of assets, accounting for ca.  3% of the
country's banking system assets.  It ranks third in terms of
retail deposits, with over 2% market share among retail deposit-
takers in Russia and over 5% in the Moscow region.

BOM has established relationships with leading Russian companies
operating in almost all strategic sectors of the economy such as
energy, construction and manufacturing, thanks to (i) BOM's close
ties with the City and its perception as a government-related bank
facilitating access to relatively cheap funding, (ii) the bank's
large capital base which facilitates inclusion in large
transactions, iii) tight cost controls and scale, and (iv) its
overall visibility on the market.  The bank has a long history of
developing its retail franchise, resulting in a good revenue mix.
As a result, by 30 September 2010, lending to individuals
accounted for 12% of the loan book -- the key drivers are consumer
loans (ca.  50% of retail loans) and mortgages (30%).  SMEs
account for over 5% of the loan book.

                            About VTB

VTB is the second-largest banking group in Russia behind Sberbank,
with a market share of 12% in system assets at end-2009.  It
accounts for 6% of the system's retail deposits, which is double
the market share of the third-largest retail deposit-taking bank,
but still well below the 50% market share enjoyed by Sberbank.
VTB is a predominantly corporate bank, with rapidly growing retail
and investment banking operations.  The corporate banking business
is mostly originated in Russia through VTB as the parent bank, and
Bank VTB North-West (active in St Petersburg and surrounding
regions).  The retail segment, including services to small
businesses, is serviced through VTB24.  There are two centers of
investment banking: one in Moscow on the basis of a recently
established legal entity, VTB Capital, and the second in London
through VTB Capital plc (formerly Moscow Narodny Bank).


OTP OJSC: Fitch Rates Senior Unsecured Bond Issue at 'BB'
---------------------------------------------------------
Fitch Ratings has assigned OJSC OTP Bank's RUB2.5 billion senior
unsecured bond issue series-02 with a tenor of three years an
expected Long-term rating of 'BB' and National Long-term rating of
'AA-(rus)'.

OJSC OTP Bank (Long-term Issuer Default Rating 'BB'/Negative) is a
mid-sized Moscow-based retail bank, ranked 37th by assets at end-
Q310.  The bank is 95.8% owned by OTP Plc (Hungary).


TINKOFF CREDIT: Fitch Assigns 'B-' Rating to Exchange Bonds
-----------------------------------------------------------
Fitch Ratings has assigned Tinkoff Credit Systems' senior
unsecured fixed-rate RUB-denominated exchange bonds (BO-1, BO-2
and BO-3) a Long-term rating of 'B-', a Recovery Rating of 'RR4'
and a National Long-term rating of 'BB-(rus)'.

The BO-1 RUB1.6 billion issue is due September 2013; coupon rate
was priced at 14.22%.  The BO-2 RUB1.5 billion issue matures in
November 2013 with a put option in December 2011; first and second
coupons were set at 16.5%.  The BO-3 RUB1.5 billion issue matures
in February 2014 with a put option in August 2012; first, second
and third coupons were priced at 14%.

TCS Bank's ratings are Long-term foreign currency IDR 'B-'/Stable
Outlook, Short-term IDR 'B', Individual 'D/E', Support '5' and
Support Rating Floor 'No Floor'.

TCS Bank's obligations under the notes rank equally with the
claims of other senior unsecured creditors except claims of retail
depositors, which under Russian law rank above those of other
senior unsecured creditors.  Retail deposits accounted for 46.3%
of TCS Bank's total liabilities at end-January 2011, according to
local GAAP accounts (41% on a pro forma basis, allowing for the
BO-3 bond, which was placed in February).

TCS Bank is the only credit card monoline company in Russia,
established in 2006 by Russian businessman Oleg Tinkov.


TMK CAPITAL: Moody's Assigns 'B1' Senior Unsecured Rating
---------------------------------------------------------
Moody's Investors Service has assigned a definitive B1 senior
unsecured rating and LGD-3 to the US$500 million 7.75% loan
participation notes issued by TMK Capital S.A. for the purpose of
financing a loan to OAO TMK.  The final terms of the Notes are in
line with the drafts reviewed for the provisional (P)B1 instrument
rating assignment.

                        Ratings Rationale

Moody's definitive rating on this debt obligation is in line with
the provisional rating assigned on Jan. 14, 2011.  Moody's rating
rationale was set out in a press release issued on that date.  The
proceeds from the issue will be on-lent by TMK Capital S.A. to OAO
TMK, thus the Noteholders will be relying solely on TMK's credit
quality to repay the debt.  The loan will be guaranteed by the
main operating subsidiaries of TMK, i.e. Volzhsky, Seversky,
Sinarsky, Tagmet plants and by IPSCO Tubulars as well as by TMK
Trade House.

Moody's notes that 1H 2010 financial results of TMK indicate
materially improved credit metrics, resulting from higher capacity
utilization levels, rising volumes of shipments and increasing
prices for seamless and welded pipes for the oil and gas industry.
Moody's also notes that that the elevated leverage of debt/EBITDA
at the end of 2009 at 10.3x has nearly been halved as at June end,
2010 and is on course in Moody's opinion to move down close to 4x
by the end of 2010.

The previously given guidance remained valid.  In particular
Moody's would consider an upgrade of TMK if the company is able
to: 1) generate positive FCF which would be used to reduce the
outstanding debt and 2) reach a debt/EBITDA rating materially
below 3x on a sustainable basis.  The liquidity profile would also
need to be strengthened further with a more even debt maturity
profile.

The B1 rating and LGD-3 reflects these facts: i) the Notes are
denominated in US$; ii) the Notes proceeds will be on-lent to OAO
TMK and will be used to refinance existing indebtedness, iii) the
subsequent loan to TMK is expected to have two sets of guarantors:
initial and additional.  The additional guarantors should provide
guarantee not later than 90 days after the notes issue date and
the assigned rating is based on the assumption that these
guarantees would be issued without a delay, iv) the rating
reflects the senior unsecured position of the Notes and their pari
passu ranking with other unsecured obligations of main operating
companies of TMK (the Loan Guarantors).

Moody's previous rating action was implemented on 14 January 2011
TMK Capital S.A. TMK Capital S.A.'s new notes.

In 2009 TMK shipped 2.79 million metric tonne of pipe products
(13% down YoY), generated revenues of US$3.46 billion (39%
decrease YoY) and reported EBITDA of US$328 million (69% decrease
YoY).  In 1H 2010 TMK shipped 1.86 million metric tonnes of pipe
products (55% up compared to 1H 2009), generated revenues of
US$2.57 billion (74% up compared to 1H 2009) and reported EBITDA
of US$415 million (185% up compared to 1H 2009).

TMK is Russia's largest and one of the world's leading producers
of value-added steel pipe products for the oil & gas industry.
Prior to IPO in October 2006, TMK was fully owned by
Mr. Pumpyanskiy.  His current shareholding is 69.68%.


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


AYT COLATERALES: Moody's Puts '(P)C (sf)' Rating on Class D Note
----------------------------------------------------------------
Moody's Investors Service has assigned provisional credit ratings
to these classes of notes issued by AyT Colaterales Global
Hipotecario Caja Cantabria I, FTA:

  -- EUR203.5M A Note, Assigned (P)Aaa (sf)
  -- EUR12.7M B Note, Assigned (P)B2 (sf)
  -- EUR10.3M C Note, Assigned (P)Caa1 (sf)
  -- EUR3.5M D Note, Assigned (P)C (sf)

                        Ratings Rationale

The ratings of the notes takes into account the credit quality of
the underlying mortgage loan pool, from which Moody's determined
the MILAN Aaa Credit Enhancement and the portfolio expected loss.
The expected portfolio loss of 4.50% and the MILAN Aaa required
Credit Enhancement of 14.00% served as input parameters for
Moody's cash flow model, which is based on a probabilistic
lognormal distribution as described in the report "The Lognormal
Method Applied to ABS Analysis", published in September 2000.

The key drivers for the MILAN Aaa Credit Enhancement , which is in
line with other prime Spanish RMBS deals, are the high weighted-
average current LTV of 80.27%, with 57.60% of loans above 80% LTV,
the high geographical concentration in Cantabria of 80% of the
pool mitigated by the high weighted average seasoning of 5.07
years.

The key drivers for the expected loss, which is lower than the one
for other High LTV Spanish transactions, are the stable
performance for this transaction since closing in July 2008, the
static historical information on delinquencies and recoveries
received from the originator for its global mortgage book,
balanced by the expected higher volatility for High LTV loans, and
the weak economic conditions in Spain.

The strengths of the structure are (i) a reserve fund fully funded
upfront equal to 3.50% of the initial notes balance (it currently
represents 3.59% of the outstanding balance of the notes) to cover
potential shortfall in interest and principal, and (ii) a strong
interest rate swap in place which provides a guaranteed excess
spread (0.50%) above Euribor to the transaction.

The rating addresses the expected loss posed to investors by the
legal final maturity of the notes.  In Moody's opinion, the
structure allows for timely payment of interest and principal with
respect of the classes of notes A and B by the legal final
maturity, and payment of interest and principal with respect of
the class of notes C and D by the legal final maturity.

Moody's ratings only address the credit risk associated with the
transaction.  Other non-credit risks have not been addressed, but
may have a significant effect on yield to investors.

The transaction closed in July 2008 and was initially not rated by
Moody's.  The initial notes balance issued at closing (shown above
next to the assigned rating) amounted to EUR230 million.  The
outstanding notes balance as of the last payment date in September
2010 amounts to EUR203 million.

Moody's rating analysis of the notes is based on the transaction
structure after the last payment date in September 2010.  The next
payment date will take place in March 2011.  The V Score for this
transaction is Medium, which is in line with the V score assigned
for the Spanish RMBS sector.  Only three sub components underlying
the V Score deviate from the average for the Spanish RMBS sector.
The Sector's Historical Downgrade Rate, Transaction Complexity and
Experience of Parties are assessed as Medium, which are higher
than the Low/Medium V score assigned for the Spanish RMBS sector
for those sub components.  This is due to the exposure of the
transaction to High LTV's which have suffered more downgrades than
traditional mortgages pools in recent years and because High LTV
loans are more exposed to house price declines.  In addition Caja
Cantabria, the originator and servicer has limited previous
securitization experience.

V-Scores are a relative assessment of the quality of available
credit information and of the degree of dependence on various
assumptions used in determining the rating.  High variability in
key assumptions could expose a rating to more likelihood of rating
changes.  The V-Score has been assigned accordingly to the report
"V-Scores and Parameter Sensitivities in the Major EMEA RMBS
Sectors" published in April 2009.

Moody's Parameter Sensitivities: the model output indicated that
Class A would have achieved Aaa even if expected loss was as high
as 13.5% (3.0x base case) assuming Milan Aaa CE at 14.0% (base
case) and all other factors remained the same.  The model output
further indicated that the Class A would not have achieved Aaa
with Milan Aaa CE of 16.8% (1.2x base case), and expected loss of
4.5% (base case).

Moody's Parameter Sensitivities provide a quantitative/model-
indicated calculation of the number of rating notches that a
Moody's structured finance security may vary if certain input
parameters used in the initial rating process differed.  The
analysis assumes that the deal has not aged and is not intended to
measure how the rating of the security might migrate over time,
but rather how the initial rating of the security might have
differed if key rating input parameters were varied.  Parameter
Sensitivities for the typical EMEA RMBS transaction are calculated
by stressing key variable inputs in Moody's primary rating model.

Moody's Investors Service did not receive or take into account a
third party due diligence report on the underlying assets or
financial instruments in this transaction


CAUFEC: Failure to Agree Deal with Creditors Prompts Receivership
-----------------------------------------------------------------
Property Investor Europe reports that Caufec has become Spain's
latest property receivership after failing to agree new terms with
five creditor banks on its debts totaling EUR180 million.

According to Property Investor Europe, the Barcelona-based firm
had been subject to an October 2010 agreement with creditors.

Caufec is an affiliate of Sacresa and currently undertaking two
large-scale developments in Barcelona.


EMPRESAS BANESTO 1: Moody's Puts 'Ca (sf) Rating on Series D Note
-----------------------------------------------------------------
Moody's Investors Service has assigned definitive ratings to four
series of Notes issued by Empresas Banesto 1, Fondo de
Titulizacion de Activos:

  -- EUR800M A2 Note (currently EUR333.9M outstanding), Definitive
     Rating Assigned Aaa (sf)

  -- EUR70M B Note, Definitive Rating Assigned A3 (sf)

  -- EUR35M C Note, Definitive Rating Assigned B1 (sf)

  -- EUR35M D Note, Definitive Rating Assigned Ca (sf)

                        Ratings Rationale

Empresas Banesto 1 is a securitization of loans mainly granted to
small-and medium-sized enterprise by Banco Espanol de Credito.
Banesto is the Servicer of the loans while Santander de
Titulizacion S.G.F.T., S.A. is the Management Company.

The transaction closed in October 2007 and was initially not rated
by Moody's.  The initial notes balance issued at closing (shown
above next to the assigned rating) amounted to EUR2,000 million
and it included the initial balance of EUR1,060 million A1 Note
which is now completely amortized.  The outstanding notes balance
as of the last payment date in December 2010 amounts to EUR473.9
million.

Moody's rating analysis of the notes is based on the transaction
structure after the last payment date in December 2010.  The next
payment date will take place in March 2011.

The pool of underlying assets was, as of November 2010, composed
of a portfolio of 4,192 contracts (originated between 1996 and
2007), granted to 3,748 obligors located in Spain.  The Portfolio
has a weighted average seasoning of 4.8 years and a weighted
average remaining term of 5.6 years.  Around 36.6% of the
outstanding of the portfolio is secured by first-lien mortgage
guarantees over different types of properties (mainly residential
and commercial).  All the figures are calculated on the
outstanding amounts of loans with arrears less than 12 months.

According to Moody's, this deal benefits from several credit
strengths, such as a relatively low concentration in the Building
and Real Estate sector for the Spanish market (around 22.7% in the
pool according to Moody's industry classification), approximately
15% of the assets amount represented by corporate names, over half
of the pool is covered by a first lien mortgage guarantee (around
51%), 100% of the loans are fully amortizing and a strong swap is
in place paying 3m Euribor plus a 0.60% spread.

Moody's notes that the transaction features some credit
weaknesses, among others the low granularity of the portfolio of
loans (with an Effective Number of 181).  Moody's also notes the
exposure to commingling risk mitigated somewhat by the fact that
the Servicer transfers collections every two days to the Treasury
account in the name of the SPV.

These characteristics were reflected in Moody's analysis and
ratings, where several simulations tested the available credit
enhancement and reserve fund (as of December 2010) to cover
potential shortfalls in interest or principal envisioned in the
transaction structure.

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

The resulting key assumptions of Moody's analysis for this
transaction are a mean default rate of 14.5% with a coefficient of
variation of 40.2% and a stochastic mean recovery rate of 52.5%.

The ratings address the expected loss posed to investors by the
legal final maturity of the notes (September 2040).  In Moody's
opinion, the structure allows for timely payment of interest and
ultimate payment of principal on Series A2, B, C and D at par on
or before the rated final legal maturity date.  Moody's ratings
address only the credit risks associated with the transaction.
Other non-credit risks have not been addressed, but may have a
significant effect on yield to investors.

The V Score for this transaction is Medium/High, which is in line
with the score assigned for the Spanish SME sector and
representative of the volatility and uncertainty in the Spanish
SME sector.  V-Scores are a relative assessment of the quality of
available credit information and of the degree of dependence on
various assumptions used in determining the rating.

Moody's also ran sensitivities around key parameters for the rated
notes.  For instance if the recovery rate of 52.5% was changed to
47.5%, the model-indicated rating for the Series A2 Notes would
change from Aaa to Aa1.  Additionally, if the assumed default
probability of 14.5 % used in determining the initial rating was
changed to 18.1% and the recovery rate of 52.5 % was changed to
42.5%, the model-indicated rating for the Series A2 Notes would
change from Aaa to Aa3, while the Series B model indicated rating
would change from A3 to Ba1 and the Series C model indicated
rating would change from B1 to Caa2.


EMPRESAS BANESTO: Moody's Assigns Ba1 (sf) Rating on Series C Note
------------------------------------------------------------------
Moody's Investors Service has assigned definitive ratings to four
series of Notes issued by Empresas Banesto 2, Fondo de
Titulizacion de Activos:

  -- EUR1834M ANote (currently EUR696.9M outstanding), Definitive
     Rating Assigned Aaa (sf)

  -- EUR106M B Note, Definitive Rating Assigned Aa3 (sf)

  -- EUR60M C Note, Definitive Rating Assigned Ba1 (sf)

                        Ratings Rationale

Empresas Banesto 2 is a securitization of loans mainly granted to
small-and medium-sized enterprise by Banesto who is also acting as
the Servicer of the loans while Santander de Titulizacion
S.G.F.T., S.A. is the Management Company.

The transaction closed in June 2008 and was initially not rated by
Moody's.  The initial notes balance issued at closing (shown above
next to the assigned rating) amounted to EUR2 billion.  The
outstanding notes balance as of the last payment date in
January 2011 amounts to EUR862.9 million.

Moody's rating analysis of the notes is based on the transaction
structure after the last payment date in January 2011.  The next
payment date will take place in April 2011.

The pool of underlying assets was, as of November 2010, composed
of a portfolio of 4564 contracts (originated between 1995 and
2007), granted to obligors located in Spain.  The portfolio has a
weighted average seasoning of 4.2 years and a weighted average
remaining term of 7.4 years.  Around 52% of the outstanding amount
of the portfolio is secured by first-lien mortgage guarantees over
different types of properties (mainly residential and commercial).
All the figures are calculated on the outstanding amounts of loans
with arrears less than 18 months.

According to Moody's, this deal benefits from several credit
strengths, such as a good portion of the pool represented by
corporate names (approximately 13%), almost all the loans
(approximately 99.9% of the pool amount) are fully amortizing and
a strong swap is in place paying 3m Euribor plus a 0.60% spread.
However, Moody's notes that the transaction features some credit
weaknesses, among others the low granularity of the portfolio of
loans (with an Effective Number of 246).  Moody's also notes the
exposure to commingling risk mitigated somewhat by the fact that
the Servicer transfers collections every two days to the Treasury
account in the name of the SPV.

These characteristics were reflected in Moody's analysis and
ratings, where several simulations tested the available credit
enhancement and reserve fund (as of January 2011) to cover
potential shortfalls in interest or principal envisioned in the
transaction structure.

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

The resulting key assumptions of Moody's analysis for this
transaction are a mean default rate of 16.2% with a coefficient of
variation of 38.3% and a stochastic mean recovery rate of 57.5%.

Moody's also ran sensitivities around key parameters for the rated
notes.  For instance if the recovery rate of 57.5% was changed to
47.5%, the model-indicated rating for the Series A Notes would
remain Aaa.  Also if the assumed default probability of 16.2 %
used in determining the initial rating was changed to 20.6% and
the recovery rate of 57.5% was changed to 47.5%, the model-
indicated rating for the Series A Notes would change from Aaa to
Aa2, while the Series B model indicated rating would change from
Aa3 to Baa3 and the Series C model indicated rating would change
from Ba1 to B3.


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


ARCELIK AS: Fitch Gives Positive Outlook; Affirms 'BB' Rating
-------------------------------------------------------------
Fitch Ratings has revised Arcelik A.S.'s rating Outlooks to
Positive from Stable and affirmed the company's Long-term foreign
and local currency IDRs at 'BB' and National Long-term rating at
'AA-(tur)'.

The Positive Outlooks reflect the further improvement in Arcelik's
operating and financial profile in 2010 and its rapid pace of
deleveraging, which is ahead of Fitch's expectations.  The ratings
reflect Arcelik's leading position in its domestic market as well
as its proven capability to increase exports in 2009-2010.  The
majority of Arcelik's production is based in low-cost locations
such as Turkey, Romania and Russia.  Fitch notes that this allows
the company to considerably under-cut its EU based competitors in
terms of cost (mainly labor) and its Asian competitors in terms of
transportation costs due to its proximity to the EU.

Arcelik's EBITDA margin declined to 11.5% in 2010 from 13.47% in
2009, which is still above management's sustainable target of 10%-
11%.  Restructuring efforts, a higher value product mix, efficient
inventory management and higher capacity utilization have
supported the operating margins since Q408.  Fitch also notes that
the optimization of the supply chain, higher profitability in the
TV business and rising sales to emerging markets have helped to
support margins.  The agency expects a return to normalized levels
in terms of operating profitability by 2011-12 as higher raw
material prices, mainly steel and plastics, are expected to
increase the cost of goods sold and put pressure on gross margins.

Arcelik has significantly reduced its leverage due to a financial
asset sale, a rights issue and significant free cash flow in 2009-
10, which was due to working capital inflows and healthy
operational performance in 2010.  Leverage metrics in terms of net
debt to EBITDA was down to 0.9x at end-2010 from nearly 5x at end-
2008, while funds from operations interest coverage was at 12.6x
at end-2010, up significantly from 3.6x at end-2009.  Arcelik
continued to generate healthy free cash flow in 2009 and 2010 due
to improved operating performance, significantly lower cash
interest expenses and major reversal in working capital outflows.
Fitch does not expect this to change in H111 and expects the
company to pay dividends of TRY200 million annually.

The agency also notes that Arcelik's liquidity position has
improved considerably as its cash position improved to TRY1,317
million at end-2010 from TRY904 million at end-2009, easing short-
term liquidity concerns.  Of the TRY2,057 million gross debt at
end-2010, TRY839 million (41% of the total) was due within one
year.  Though a degree of currency risk stems from the FX
denominated debt, Fitch takes comfort from the company's exports
to Western Europe, which make up nearly 28% of net sales.  Fitch
notes that the company's FCF generation capability in 2011 will
also continue to support liquidity.  Arcelik's poor liquidity had
been a limiting factor for the ratings for some time.

Based on Fitch's forecasts, sustainable net leverage (net
debt/EBITDA) will remain below 1.0x during 2011 and 2012.
Although further deleveraging may be challenging in 2011 and
beyond due to higher dividends and capex, more evidence of the
long-term sustainability of lower working capital needs and
improved credit metrics would be positive for Arcelik's ratings.
The company has moved away from its conservative leverage and
coverage trend since 2006, but Fitch notes that the interest
coverage and leverage metrics are currently back to the more
conservative levels of 2005.  A material negative impact on cash
flows and profitability due to operating profitability contraction
or re-leveraging over to 3x levels especially driven by working
capital needs would be negative for the rating.


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


CLINTON CARDS: Places Birthdays (Ireland) Into Administration
-------------------------------------------------------------
RetailGazette reports that Clinton Cards has placed its
subsidiary, Birthdays (Ireland), into administration.
RetailGazette relates that Clinton Cards confirmed that all of the
14 stores currently trading as Birthday's in the Republic of
Ireland are loss making.

Clinton Card said in a statement that none of the Clinton Cards
stores and Birthday UK stores in the retail group is to be
affected by the move, and trading at these outlets will continue
as normal, according to RetailGazette.

The report notes that a fuller picture of the retailer's current
predicament will be revealed at half-year interim results set to
be announced at the end of this month but its most recent trading
update did not make for pretty reading.

Clinton Cards is a cards and gift retailer.  Founded in 1968 the
Clintons group now represents 650 Clinton branded shops and more
than 170 Birthday branded outlets.


COMBINED STABILISATION: Goes Into Voluntary Liquidation
-------------------------------------------------------
Emma Cruces at Lancashire Telegraph reports that Combined
Stabilisation Ltd has been placed into liquidation putting the
livelihoods of 38 members of staff in jeopardy.

Lancashire Telegraph relates that liquidators said the 38 people
employed at the Hermitage Street base have since been taken on by
Bolton-based A E Yates Ltd.

Jeremy Oddie and Julie Beavis at Manchester-based Mitchell
Charlesworth have been appointed the Rishton company's joint
administrators, the Lancashire Telegraph says.

According to the report, the administrators said Combined
Stabilisation was insolvent and had a 'deficiency' of around
GBP1.78 million.

Administrators said Combined Stabilisation, which became
Accrington Stanley's sponsors in 2008, applied for voluntary
liquidation after being unable to secure additional financial
support to ease cash flow, Lancashire Telegraph reports.

Lancashire Telegraph relates that Accrington Stanley Chief
Executive Rob Heys said the loss of their sponsor was 'a huge
blow' but welcomed the more positive news for Combined
Stabilisation's workforce.

Based in Riverside Industrial Estate, Combined Stabilisation Ltd
is a specialist soil stabilization company.


DAIRY FARMERS OF BRITAIN: Receivers Make Final Payment to Farmers
-----------------------------------------------------------------
Stephen Oldfield, David Kelly and Ian Green of PwC, joint
receivers and managers of Dairy Farmers of Britain Limited (DFB)
disclosed that a final milk payment averaging 2 pence per liter
(ppl) for farmers supplying the receivers for the period following
their appointment on June 3, 2009.  This follows further
successful cash collections from milk customers over the past six
months which the receivers are able to pass on without deduction
in accordance with their pure margin management policy.

Stephen Oldfield, joint receiver and manager and PwC's UK
agribusiness leader said:

"The strategy of the receivership was to rely on the DFB's
customers to pay a fair price for the milk in order not to cause a
crash in the milk price.  In the last six months we have been able
to collect more money than we expected from the tail end of the
customer book, meaning a further 2 ppl average to all those
farmers who supplied the receivership until they found new homes
to go to.

"Farmers are struggling to make silage feed last through a long
winter in the face of very high animal feed prices and we hope
this brings welcome cash at a difficult time of year."

On the DFB receivership overall, Stephen Oldfield concluded:
"DFB is probably the most complex and challenging appointment I
have ever had to handle. When you are responsible for moving
perishable liquid milk there is no time for indecision or room for
lack of clarity.  To keep the wheels turning and the milk flowing
24\7 in receivership was not easy whilst finding new homes for all
the Co-operatives farmer suppliers.  We needed to take a pragmatic
view on the milk contracts to allow farmers the ability to find
alternative customers. We are confident that there were no missed
collections, and within 43 days all the dairy farmer suppliers had
found new homes for their milk.

"While it was clear from the outset that there would be no
prospect of any money left for suppliers, farmer creditors or
members from the receivership, we are clear that by keeping milk
collections and deliveries going, a major crash in the UK milk
market was averted.  This could not have been achieved without
close working with the Members Council, Government bodies and the
milk industry.

"I would like to thank the other milk co-operatives and
processors, the hauliers, suppliers and importantly the DFB
employees for helping our team over a very challenging first six
weeks."

The final updating report by the receivers will be followed in
early March by the formal winding up of the Co-operative, however
receivership activities will continue for many months.  This will
not affect the financial outcome for creditors and farmer members.

                About Dairy Farmers of Britain

DFOB is an agricultural milk cooperative that employs 2,200 at its
sites in the South West, the Midlands and the North East.  It has
1,800 farmer members across Great Britain who supply over 1
billion liters to the food and drink industry, comprising 10% of
UK milk production.

DFOB suffered significant losses in its liquids division and
therefore in November 2008 it announced the closure of its Fole
and Portsmouth dairies to achieve a return to profitability in
this division.  During the following months, DFOB was not able to
pay its farmer members a competitive milk price, which resulted in
members tendering their resignations in large numbers.  These
members are currently serving their 12 months notice period to
terminate their contracts with DFOB.

Since the closure of the 2 dairies, the liquids division has
suffered the further loss of the Co-Operative supermarket
contract, which comes into effect on August 1, 2009.  This made
the restructure insufficient to turnaround the liquids division.

In March 2009, DFOB completed a transfer of member debt to equity,
but was unsuccessful in achieving the agreement of its loan note
holders to transfer their debt to equity.


HMV GROUP: Set to Appoint Deloitte to Advise on Debt Talks
----------------------------------------------------------
Lenders to HMV Group, including state-backed banks Royal Bank of
Scotland and Lloyds Banking Group, are about to appoint Deloitte
to advise them in talks over the group's debts, Rose Jacobs,
Anousha Sakoui and Claer Barrett at The Financial Times report,
citing people familiar with the situation.

The FT relates that the decision to appoint financial advisers
came as HMV warned on Tuesday that it would miss analysts'
expectations for full-year pre-tax profits of GBP45 million
because of a continued "challenging" trading conditions.

HMV also warned it expected to breach its banking covenants in
June, as debt climbed to at least GBP130 million by year end, the
FT discloses.

According to the FT, the company said in an unscheduled trading
update on Tuesday that it is already in talks with its lenders and
hopes to make changes to the agreement that will "ensure [its]
appropriateness for future trading conditions and to support
delivery of the group's strategy".

HMV blamed changes to its product mix and other working capital
movements, the FT states.  It said the higher debt was not related
to insurers reducing the credit limit to suppliers, the FT notes.

HMV also announced on Tuesday the appointment of Philip Rowley as
chairman, filling the space left by Robert Swannell, who stepped
down to make time for his new role as chairman of Marks and
Spencer, the FT recounts.  Mr. Swannell will remain on the HMV
board, the FT says.

United Kingdom-based HMV Group plc is engaged in retailing of pre-
recorded music, video, electronic games and related entertainment
products under the HMV and Fopp brands, and the retailing of books
principally under the Waterstone's brand.  The Company operates in
four segments: HMV UK & Ireland, HMV International, HMV Live and
Waterstone's.  HMV International consists of HMV Canada, HMV Hong
Kong and HMV Singapore.  Waterstone's is a bookseller, which
operates through 314 stores and a transactional Web site for the
sale of both physical and e-books for download.  The Company has
operations in seven countries, with principal markets being the
United Kingdom and Canada.  Its retail businesses operate through
417 stores in the United Kingdom, Canada, Hong Kong and Singapore.
On January 29, 2010, the Company completed the acquisition of MAMA
Group Plc.  Its subsidiaries include HMV Canada Inc, HMV Guernsey
Limited, HMV Hong Kong Limited and HMV (IP) Limited.


HONLEY DAY: Carlin Nurseries Acquires Firm Out of Administration
----------------------------------------------------------------
Insider Media Limited reports that Honley Day Care, the trading
name of Jones Day Care Nurseries, which went into administration
in February, has been acquired by Carlin Nurseries.  The report
relates that only the nursery school has been acquired.

The school is now being closed due to lack of profitability,
according to Insider Media Limited.

"Honley Day Care has a strong reputation in the area and it is
pleasing to see this facility continue for local children, as well
as jobs being saved.  We hope it has a bright future as part of a
larger group.   Big thanks must also be given to the teachers and
parents for their understanding during the administration in
ensuring that there was still a business to salvage," Insider
Media Limited quotes administrator Chris Brookbank of O'Hara & Co.

Based in Honley near Huddersfield, Honley Day Care is a private
nursery operated as part of Honley Preparatory School and had up
to 114 children in its care.


PLYMOUTH ARGYLE: Needs to Find GBP3 Million or Go Out of Business
-----------------------------------------------------------------
David Conn at The Guardian reports that Plymouth Argyle directors
have been warned that the club needs an injection of around GBP3
million if it is not to be placed into administration.  Peter
Ridsdale, who is acting as an independent adviser to Argyle's
board, has told the directors that the club does not have the
money to meet its liabilities and that they are "in denial" about
the seriousness of its problems, The Guardian relates.

Peter Reid's players were not paid last month and nor were 60
employees who issued a statement saying many of them were "sole
breadwinners", facing "unacceptable uncertainty about the future,"
according to The Guardian.

The report notes that Mr. Ridsdale strongly condemned the running
of the club, which has faced repeated winding-up petitions for
unpaid tax and was forced to issue a formal notice of intention to
appoint an administrator.  The Guardian discloses that the most
recent winding-up petition from Her Majesty's Revenue and Customs,
in December, was fended off after a letter was presented to the
high court from Argyle's Japan-based major shareholder, Yasuaki
Kagami, committing to pay GBP500,000 in each of December, January,
February and March.  None of that promised GBP2 million has
arrived, the report relates.

The Guardian says George Synan, the director who represents Kagami
in Tokyo, said GBP350,000 has now been paid to solicitors, but not
yet to Argyle, and said he was trying to find more money.

Mr. Ridsdale, the report notes, sent an e-mail to directors,
saying GBP1.5 million was overdue to players, employees, HMRC,
Adidas, and two creditors.  If players and staff are paid,
GBP350,000 in PAYE tax will become payable, the report discloses.
In total, GBP3.6 million is owed to general creditors, Mr.
Ridsdale added.

The Guardian notes that at a board meeting, the directors will be
asked to decide if the club can pay its way, or declare insolvency
and call in the provisionally appointed administrator, Brendan
Guilfoyle.

The formal notice to appoint Mr. Guilfoyle will expire on March 7
and Mr. Ridsdale argues that if new money is not raised, the court
will refuse permission to extend it and the club will be forced
into administration anyway, the report adds.

Plymouth Argyle Football Club, commonly known as Argyle, or by
their nickname, The Pilgrims, is an English professional football
club based in Central Park, Plymouth.  It plays in Football League
One, the third division of the English football league system.


VERGO RETAIL: Deadline Day for Brand Lewis's Bid Looms
------------------------------------------------------
Liver Pool Daily Post reports that potential bidders for Vergo
Retail Ltd.'s iconic Liverpool brand Lewis's have just a few hours
left to submit bids worth more than GBP15,000.

As reported in the Troubled Company Reporter-Europe on Feb. 23,
2011, Liverpool Daily Post said that the famous Lewis's brand
could make a comeback to the Liverpool high street.  The report
related that the iconic city department store closed last May and
parent company Vergo Retail collapsed into administration.
According to TCREUR, Sarah Bell and Steven Muncaster, Partners at
MCR, were appointed joint administrators of department store
business Vergo Retail on May 7, 2010.   Liverpool Daily Post noted
that the Lewis's brand name has been put up for sale and potential
buyers have until Thursday (Feb. 24) to register their interest.

Liverpool Daily Post says that Metis Partners, acting on behalf of
Vergo's administrators, MC, has set a new deadline of 4:00 p.m.,
March 2, 2011 for "best and final offers for the intangibles
linked to Vergo Retail".  No bids below GBP15,000 for the brands
will be accepted.

Metis Partners is selling a "UK registered trade mark protecting
the Lewis's brand" as well as logos and web domain names,"
Liverpool Daily Post discloses.

Vergo Retail Ltd. was established in 2007 and operates from a head
office in Liverpool, employing a total of 942 staff across 19
outlets.  These include nine significant department stores such as
Lewis's of Liverpool, Robbs of Hexham, Joplings of Sunderland and
Derrys of Plymouth.


* UK: No. of "Technically Insolvent" British Firms Rising, R3 Says
------------------------------------------------------------------
Peter Ranscombe at The Scotsman reports that one in six British
businesses could be trading while "technically insolvent,"
according to data released Friday by insolvency trade body R3.

The Scotsman, citing "business distress index" compiled by R3,
says that about 268,000 companies reported having difficulty
paying their invoices on time during the final quarter of 2010.

According to the Scotsman, the index also revealed a 4% jump in
the number of businesses making redundancies and a 3% increase in
those introducing pay cuts or freezes.

The Scotsman quotes John Hall, R3's Scottish council member, as
saying that, "The overall picture indicates that conditions have
got more challenging from September to December last year - though
we must remember that during this period businesses were affected
by the adverse weather conditions."

"However, the increase in businesses struggling to pay bills on
time is worrying as this is the technical definition of
insolvency.  This - coupled with an increase in the number of
businesses using the maximum overdraft facility, which stands at
one-in-five - suggests many businesses are running on empty,"
Mr. Hall said, according to the Scotsman.

The decrease in profits came despite only 37% reporting a drop in
revenue - down 7%, the Scotsman adds.

The Scotsman says R3 interviewed 501 small, medium-sized and large
businesses in November and December in order to compile the
survey.


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


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


                            *********

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

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

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

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


                            *********


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

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