TCREUR_Public/110330.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Wednesday, March 30, 2011, Vol. 12, No. 63



BAYERNLB: Moody's Changes Outlook on Caa2 Ratings to Positive
MUSKETEER GMBH: Moody's Assigns Caa1 Rating to EUR800-Mil. Notes


ANGLO IRISH: Investigator Sends Findings to Ernst & Young
HARVEST CLO: Moody's Lifts Ratings on Two Classes of Notes to Caa2
ELLICKSON ENGINEERING: In Receivership; 80 Jobs Affected
LIGHT HOUSE: Court Adjourns Winding-Up Petition Until April 15


DEXIA FUNDING: Fitch Affirms Ratings on Hybrid Securities at 'B'


ABN AMRO: Fitch Maintains Low-B Ratings on Two Securities


SVYAZINVEST OJSC: Seven Units File Liquidation Ahead of Merger


NOVA LJUBLJANSKA: Fitch Downgrades Individual Rating to 'D'


BANCO BASE: To Apply for EUR2.8 Bil. From Bank Restructuring Fund
FONCAIXA EMPRESAS: Moody's Assigns B2 (sf) Rating on Serie B Note
MBS BANCAJA: Moody's Downgrades Ratings on All Classes of Notes

U N I T E D   K I N G D O M

ARDIS LIVING: Goes Into Liquidation; 20 Jobs Lost
BENNETTS ELECTRICAL: Hughes Buys Business Out of Administration
BEETHAM HOTELS: Hilton Hotel in Manchester Gets New Landlord
CDU: Goes Into Administration
FORDS BAKERY: Placed in Liquidation; Asset Sale Only Option

JERMON LTD: Collapse to Cost Banks GBP100 Million
RURAL COLLEGE: In Liquidation; Owner Declared Insolvent
SAS FIRE: Forced Into Liquidation Over Hard-Selling Racket
THOMPSON LENNOX: Collapse to Cost Ulster Bank GBP20 Million
VAR FREEDOM: Goes Into Liquidation; Axes All Workers


* Moody's Reviews Ratings on Nine SF CDO Transactions



BAYERNLB: Moody's Changes Outlook on Caa2 Ratings to Positive
Moody's Investors Service has placed the A1 long-term senior debt
and deposit ratings of Bayerische Landesbank on review for
possible downgrade.  The rating agency notes that the impact of
this review is currently expected to be limited to one or two

During the review process, Moody's will reassess the support
assumptions currently incorporated into BayernLB's standalone bank
financial strength rating, which provide it with eight notches of
rating uplift.  This review has been driven by the reduced
potential for upward rating pressure of the bank's Bank Credit
Assessment, the owner's intention to divest its stake over time
and Germany's new bank reorganization act.  More specifically,
Moody's review of support assumptions will consider BayernLB's
ownership and support strategies and the question of whether the
high level of support provided during the financial crisis might
again be forthcoming in the event of stress.

At the same time, BayernLB's Prime-1 short-term rating and D-
BFSR, with a stable outlook, have been affirmed.  In addition, the
outlook on the bank's upper tier 2 and silent participations has
been changed to positive from stable.

BayernLB's Aaa ratings for obligations qualifying for the
grandfathering of "Anstaltslast" and "Gewaehrtraegerhaftung"
(maintenance and guarantee obligations, respectively, of the
federal state of Bavaria), Aaa ratings guaranteed by the Federal
Republic of Germany, and Baa3 ratings for subordinated securities
are unaffected by rating announcement.

Any subsequent long-term senior debt, subordinated debt and junior
subordinated debt instruments issued by BayernLB will be rated A1
on review for downgrade, Baa3 and Caa1 (hyb), respectively.

                         Rating Rationale

The affirmation of BayernLB's D- BFSR, which corresponds to a
baseline credit assessment of Ba3, with a stable outlook, takes
into account its return to profitability in 2010 after years of
severe losses.  In particular, the BFSR is constrained by: (i) the
bank's developing franchise and risk-management practices; (ii)
the ongoing de-risking and downsizing of the balance sheet; (iii)
the limited visibility in terms of profitability and capital
generation; and (iv) the outcome of the pending EU investigation
into the bank's business and financial profile, which is expected
by mid-2011.

Whilst BayernLB's preliminary 2010 results indicate a return to
profitability on a pre-tax basis of approximately EUR800 million,
Moody's notes that even the recent operational improvement still
reflects weak risk-adjusted profitability and low earnings
quality.  According to the latest, published (unaudited) financial
results, as of September 2010, a significant portion of the bank's
pre-tax profits is derived from the recovery of financial
instruments in its valuation result and from its non-core
restructuring unit, which are not considered sustainable sources
of future earnings.

The stable outlook on the BFSR reflects Moody's view that
following a stabilization of BayernLB's risk profile, further
improvement in the bank's standalone strength will be gradual and
achievable only over the longer term.

  Focus on Bayern Lb's L/T Rating Multi-Layer Support Assumptions

The eight notches of uplift currently incorporated into BayernLB's
A1 long-term debt and deposit ratings reflect the high probability
of systemic and sector support from Sparkassen Finanzgruppe (rated
Aa2), as well as the high probability of support from the bank's
95% owner, the Free State of Bavaria (rated Aaa), which provided
both capital and a sizeable asset-risk shield in 2009.  Before the
financial crisis, BayernLB's long-term debt and deposit ratings
benefited from six notches of uplift from the assumption of
support.  In view of the less visible upward transition of the
bank's BCA, the owner's intention to divest its stake over time
and Germany's new bank reorganization act, Moody's will consider
BayernLB's specific ownership and support strategies and, more
generally, whether the high level of support it received during
the financial crisis might again be forthcoming in the event of

          Outlook Changed to Positive for Hybrid Ratings

The outlook on the bank's upper tier 2 rating ("Genussscheine")
and silent participation capital has been changed to positive from
stable, to reflect BayernLB's intention to make good on all
capital losses on its profit participation certificate, or
"Genussscheine" (which are back to nominal amounts) and to pay all
missed and due coupons following its return to profitability in
2010 under German GAAP accounts.  This may have positive
implications for the ratings on these instruments if Moody's
concludes that payments will be sustained.  An earlier-than-
expected resumption of payments on the Genussscheine could also
have positive rating implications over time for the Tier 1
securities issued by BayernLB Capital Trust I (rated Caa2 (hyb)).

                  Detailed List of Rating Actions

Bayerische Landesbank

  -- BFSR: D- (Ba3), affirmed with a stable outlook

  -- senior debt and deposit ratings: A1, rating under review

  -- short-term rating: Prime-1 affirmed

  -- junior subordinated rating (upper tier 2 "Genussschein",
     DE000BLB37M5): Caa1 (hyb), outlook changed to positive from

  -- preferred stock (BayernLB Capital Trust I, XS0290135358):
     Caa2 (hyb), outlook changed to positive from stable

Aaa rated bonds of Bayerische Landesbank that benefit from the
grandfathering of "Anstaltslast" and "Gewaehrtraegerhaftung"
(maintenance and guarantee obligations, respectively, of the
federal state of Bavaria), Aaa ratings guaranteed by the Federal
Republic of Germany, and Baa3 ratings for subordinated securities
are unaffected by rating announcement.

Moody's last rating action on BayernLB was on Feb. 17, 2011, when
the bank's subordinated ratings were downgraded to Baa3 with a
stable outlook.

Domiciled in Munich, Germany, BayernLB reported total assets of
EUR332 billion as of Sept. 30, 2010, and a pretax profit of EUR669
million for the first nine months of 2010.

MUSKETEER GMBH: Moody's Assigns Caa1 Rating to EUR800-Mil. Notes
Moody's Investors Service has assigned definitive ratings to these
debt instruments under Musketeer GmbH (CFR B2/ Stable) group:

  -- EUR800 million of senior secured notes (due 2019), US$500
     million of senior secured notes (due 2019) and EUR420
     million of senior secured floating rate notes (due 2018)
     issued by Kabel BW Erste Beteiligungs GmbH and Kabel Baden-
     Wrttemberg GmbH & Co. KG: B1

  -- EUR680 million of senior notes due 2021 issued by Musketeer
     GmbH: Caa1

                        Ratings Rationale

The B1 rating of the senior secured bonds is one notch higher than
the CFR cushioned by the presence of senior unsecured notes in the
capital structure.  The Super-Senior RCF ranks ahead of the Senior
Secured Notes in the debt waterfall reflecting its priority of
payment from enforcement proceeds.  The Caa1 rating of the senior
unsecured notes is a result of Musketeer's high leverage and their
contractually and structurally subordinated position relative to
the company's RCF and senior secured bonds.

The B2 CFR reflects the weak post deal credit metrics for
Musketeer GmbH, mitigated by the strength of KBW's business risk

Musketeer GmbH, is the ultimate holding company for KBW, which is
the third largest cable operator in the Germany with revenues
(including other operating income) of EUR563.4 million in 2010.


ANGLO IRISH: Investigator Sends Findings to Ernst & Young
Simon Carswell at The Irish Times reports that John Purcell, the
special investigator examining the role of chartered accountants
at Anglo Irish Bank, has sent details of findings of his
investigation into the bank's former auditors, Ernst and Young, to
the firm.

The Irish Times says Mr. Purcell, who was by the Chartered
Accountants Regulatory Board, has sought a response from the
accountancy firm that audited Anglo before its nationalization.
According to The Irish Times, the board had previously said the
final report on Ernst and Young could be submitted this month but
its spokesman said on March 23 the best estimate for its
submission now was the end of April.

Last December, Mr. Purcell found that four chartered accountants
had prima facie cases to answer over their roles in relation to
Anglo but he had not reached any conclusions on Ernst and Young,
The Irish Times recounts.  According to The Irish Times,
Mr. Purcell said there were prima facie cases against former Anglo
chief executive David Drumm, former finance director Willie
McAteer, and former Irish Life and Permanent (ILP) finance
director Peter Fitzpatrick.

Among the matters investigated were the EUR7.2 billion deposits
between Anglo and ILP that flattered Anglo's books in 2008, The
Irish Times states.

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

                        *     *     *

As reported by the Troubled Company Reporter-Europe on March 8,
2011, Moody's Investors Service downgraded the bank deposit
ratings of Anglo Irish Bank Corporation Limited and Irish
Nationwide Building Society to Caa1/Not-Prime, from Baa3/P-3 (on
review for possible downgrade), the same level as the unguaranteed
senior unsecured debt ratings of the two institutions.  The Caa1
long-term bank deposit ratings remain on review for possible
downgrade, in line with the review on the unguaranteed senior
unsecured debt ratings.  S&P said there is no rating impact on the
stand-alone bank financial strength ratings, on the senior
unsecured and subordinated debt ratings, and on the government-
guaranteed debt ratings.

HARVEST CLO: Moody's Lifts Ratings on Two Classes of Notes to Caa2
Moody's Investors Service has upgraded its ratings of 8 classes of
notes issued by Harvest CLO III PLC

Issuer: Harvest CLO III plc

  -- EUR77M Class B Senior Floating Rate Notes due 2021, Upgraded
     to A2 (sf); previously on Dec 15, 2009 Downgraded to Baa1

  -- EUR30.75M Class C-1 Senior Subordinated Deferrable Floating
     Rate Notes due 2021, Upgraded to Ba1 (sf); previously on Dec
     23, 2010 Ba2 (sf) Placed Under Review for Possible Upgrade

  -- EUR12M Class C-2 Senior Subordinated Deferrable Fixed Rate
     Notes due 2021, Upgraded to Ba1 (sf); previously on Dec 23,
     2010 Ba2 (sf) Placed Under Review for Possible Upgrade

  -- EUR16.75M Class D-1 Senior Subordinated Deferrable Floating
     Rate Notes due 2021, Upgraded to B1 (sf); previously on Dec
     23, 2010 B2 (sf) Placed Under Review for Possible Upgrade

  -- EUR9.25M Class D-2 Senior Subordinated Deferrable Fixed Rate
     Notes due 2021, Upgraded to B1 (sf); previously on Dec 23,
     2010 B2 (sf) Placed Under Review for Possible Upgrade

  -- EUR15.75M Class E-1 Senior Subordinated Deferrable Floating
     Rate Notes due 2021, Upgraded to Caa2 (sf); previously on Dec
     23, 2010 Caa3 (sf) Placed Under Review for Possible Upgrade

  -- EUR3M Class E-2 Senior Subordinated Deferrable Fixed Rate
     Notes due 2021, Upgraded to Caa2 (sf); previously on Dec 23,
     2010 Caa3 (sf) Placed Under Review for Possible Upgrade

  -- EUR10M Class V Combination Notes due 2021, Upgraded to B1
      (sf); previously on Dec 23, 2010 B3 (sf) Placed Under Review
     for Possible Upgrade

The rating of the Class V Combination Notes addresses the
repayment of the Rated Balance on or before the legal final
maturity, where the 'Rated Balance' is equal at any time to the
principal amount of the Combination Note on the Issue Date
increased by the Rated Coupon of 2% per annum accrued on the Rated
Balance on the preceding payment date minus the aggregate of all
payments made from the Issue Date to such date, either through
interest or principal payments.  It is not an opinion about the
ability of the issuer to pay interest.  Moody's outstanding Rated
Balance may not necessarily corresponds to the outstanding
notional amount reported by the trustee.

                        Ratings Rationale

Harvest CLO III is a managed cash CLO with exposure to
predominantly European senior secured loans, as well as 9.28% of
mezzanine loans.

According to Moody's, the upgrade rating actions taken on the
notes is a result primarily of the improved credit quality of the
underlying portfolio and increased overcollateralization cushions
since the last rating action.  These are driven by the upgrade
trend of corporate credits and the increase in loan prices.  Since
the last rating action in December 2009, the reported class A/B,
class C, class D and class E overcollateralization ('OC') ratios
have increased by 6.99%, 6.27%, 5.89% and 5.75% respectively.  All
OC tests are in compliance.  In addition, the weighted average
rating factor has increased from 2791 in November 2009 to 2859 in
January 2011.  However, this reported WARF understates the actual
improvement in the portfolio credit quality because of the
technical adjustment of rating factors effected in September 2010.
Hence effectively, the WARF of this portfolio has improved by
around 9% since last rating action.  The deal also experienced a
decrease in defaulted assets from 10% to 2.85% of the portfolio
over the same period.  Further, the proportion of securities from
issuers rated Caa1 and below has decreased from 12.6% (at last
rating action) to approximately 5.5%.  These measures were taken
from the recent trustee report dated 31 January 2011.

In its base case, Moody's analyzed the underlying collateral pool
with an adjusted WARF of 3871 (compared to an adjusted WARF of
4249 at last rating action), a diversity score of 47 and a
weighted average recovery rate of 57.80%.

Moody's notes that this transaction is subject to a high level of
macroeconomic uncertainty, as evidenced by 1) uncertainties of
credit conditions in the general economy and 2) the large
concentration of speculative-grade debt maturing between 2012 and
2014 which may create challenges for issuers to refinance.  CDO
notes' performance may also be impacted by 1) the manager's
investment strategy and behavior and 2) divergence in legal
interpretation of CDO documentation by different transactional
parties due to embedded ambiguities.

Sources of additional performance uncertainties are described

1. Other collateral quality metrics: The deal is allowed to
   reinvest and the manager has the ability to deteriorate the
   collateral quality metrics' existing cushions against the
   covenant levels.  Moody's analyzed the impact of assuming lower
   of reported and covenanted values for weighted average rating
   factor, weighted average spread, recovery rates and diversity
   score, and found that the impact was within one notch of the
   base case model outputs.

2. Recovery of defaulted assets: Market value fluctuations in
   defaulted assets reported by the trustee and those assumed to
   be defaulted by Moody's may create volatility in the deal's
   overcollateralization levels.  Further, the timing of
   recoveries and the manager's decision to work out versus sell
   defaulted assets create additional uncertainties.  Moody's
   analyzed defaulted recoveries assuming the lower of the market
   price and the recovery rate in order to account for potential
  volatility in market prices.

The cash flow model used for this transaction, whose description
can be found in the methodology listed above, is Moody's EMEA
Cash-Flow model.

Due to the impact of revised and updated key assumptions
referenced in "Moody's Approach to Rating Collateralized Loan
Obligations" and "Annual Sector Review (2009): Global CLOs", key
model inputs used by Moody's in its analysis, such as par,
weighted average rating factor, diversity score, and weighted
average recovery rate, may be different from the trustee's
reported numbers.

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

Under the principal methodology, Moody's used its Binomial
Expansion Technique, whereby the pool is represented by
independent identical assets, the number of which being determined
by the diversity score of the portfolio.  The default and recovery
properties of the collateral pool are incorporated in a cash flow
model where the default probabilities are subject to stresses as a
function of the target rating of each CLO liability being
reviewed.  The default probability range is derived from the
credit quality of the collateral pool, and Moody's expectation of
the remaining life of the collateral pool.  The average recovery
rate to be realized on future defaults is based primarily on the
seniority and jurisdiction of the assets in the collateral pool.

In order to assess the sensitivity of the notes to changes in
credit quality of the portfolio, Moody's ran sensitivity analyses
on key parameters.  For example, Moody's ran cases with a +/- 10%
change in the base case WARF and an absolute change of +/- 10% in
the WARR.  In all cases, the impact on the notes was less than 2
notches from the base case model outputs.

ELLICKSON ENGINEERING: In Receivership; 80 Jobs Affected
Grant Thorton has been appointed receiver at Ellickson

The company's 80 workers have been made redundant, Irish
Independent discloses.

According to Irish Independent, it is understood the company owes
Bank of Ireland EUR1.5 million.

Irish Independent relates that Grant Thornton's Michael McAteer on
March 25 said he was hopeful that the company could be sold as a
going concern and some workers could keep their jobs.

Ellickson Engineering is based in Wexford.  The company supplies
commercial and industrial doors, loading bays and lifts.

LIGHT HOUSE: Court Adjourns Winding-Up Petition Until April 15
RTE News reports that the High Court has granted an adjournment to
Dublin's Light House Cinema, which is threatened with closure.

The Court was hearing a petition to wind up the cinema that was
issued by its landlord, John Flynn, following a rent dispute, RTE

According to RTE, the cinema says Mr. Flynn doubled its annual
rent in May 2010 from EUR100,000 to EUR200,000.  It says it is not
in a position to pay the increased rent and has been trying to
negotiate with Mr. Flynn, RTE notes.

On March 28, counsel for the cinema asked the High Court to
adjourn the petition for three weeks to allow the board of
directors to meet to adopt a reasoned approach to the matter --
the board, she said, intended to act decisively, RTE discloses.

Following an objection to an adjournment by lawyers for Mr. Flynn,
the judge, Mrs. Justice Mary Laffoy said she would adjourn the
matter until April 15, RTE recounts.

The four-screen Lighthouse Cinema opened in Smithfield in May 2008
and employs 20 people.


DEXIA FUNDING: Fitch Affirms Ratings on Hybrid Securities at 'B'
Fitch Ratings has affirmed two hybrid securities issued by Dexia
group entities at 'B'.  One is issued by Dexia Funding Luxembourg
and the other is issued by Dexia Banque Internationale a
Luxembourg.  At the same time, the agency has removed the Rating
Watch Negative on these securities.  DFL's hybrid securities were
placed on RWN on Sept. 28, 2010 and DBIL's on Aug. 20, 2009.

The affirmation and removal of the RWN reflects Fitch's
understanding that 2011 coupons for these two securities will be
payable, owing to 'coupon pushers', despite the European
Commission constraint to defer coupons on Dexia hybrid securities
until end-2011.  As part of the restructuring plan imposed on
Dexia following the receipt of state support, the bank was not
allowed to pay coupons on its subordinated debt and hybrid
securities, unless such payment is contractually mandatory.

The ratings are in line with standard notching from Dexia's
standalone unsupported creditworthiness, as defined in Fitch's

The rating actions are:

  -- XS0273230572 non-cumulative perpetual securities issued by
     DFL: affirmed at 'B'; removed from RWN

  -- XS0132253468 non-cumulative perpetual securities issued by
     DBIL: affirmed at 'B'; removed from RWN


ABN AMRO: Fitch Maintains Low-B Ratings on Two Securities
Fitch Ratings has maintained the ratings of two securities issued
by ABN AMRO Bank on Rating Watch Negative:

  -- XS 0246487457, EUR1bn, 4.31% Variable, junior subordinated
     preference shares, issued 3 October 2006.  Long-term 'B'
     Rating maintained on RWN

  -- XS0244754254, GBP 750m junior subordinated notes, Upper Tier
     II, issued under ABN AMRO's EUR40bn EMTN programme,: tendered
     with GBP150m remaining.  Long-term 'B+' Rating maintained on

The issues were downgraded and placed on RWN in August 2009 as a
result of statements made by the European Commission whereby any
bank subject to state aid or state aid investigation should
consult the EC in respect of the discretionary payments of the
coupons paid on their capital instruments: the so-called "burden
sharing" statement.

ABN AMRO's hybrid capital was deemed to be at risk of coupon
deferral while the EC investigated the aid it received from the
Dutch State.  The rating was determined in accordance with Fitch's
assessment of ABN AMRO's standalone, unsupported creditworthiness.

Fitch has noted the recent statements made by the bank in respect
of its dividend policy.  In the agency's view, these indicate that
the bank is close to receiving final approval from the EC for
distributing profits.  Fitch understands that subject to the EC's
approval, ABN AMRO's dividend policy will push the 2012 coupons on
these two hybrid securities.  The 2011 coupon on both these
instruments has already been pushed in 2010 by dividends paid by
RBS Holdings NV.  The restructuring of ABN AMRO means that
dividends paid by RBS after the restructuring will no longer act
as a trigger for the payment of coupons on these securities.

A final decision by the EC is expected over the coming months, at
which point Fitch will review the RWN on the securities.


SVYAZINVEST OJSC: Seven Units File Liquidation Ahead of Merger
TeleGeography's Daily CommsUpdate reports that all seven regional
subsidiaries controlled by Svyazinvest have filed applications to
liquidate themselves ahead of their integration with Svyazinvest's
key subsidiary, Rostelecom.

The report relates that Svyazinvest holds controlling stakes in
all of the so-called 'mega-regional' operators: Center Telecom,
North-West Telecom, VolgaTelecom, Southern Telecommunications,
Uralsvyazinform, Sibirtelecom and Far East Telecom (DalSvyaz).

In February 2009, TeleGeography recalls, Svyazinvest announced
that it would undergo a structural reorganization before pursuing
full privatization.

TeleGeography states that the group revealed plans to merge
Rostelecom with its regional operators to create a unified,
national platform which will provide fixed line telephony,
broadband and mobile services across the whole country.

The seven individual operators last week informed the Russian
stock exchange that the trading of their respective shares will
cease on March 28, with all regional shares duly converted into
Rostelecom shares on April 1, 2011, TeleGeography says.

                         About Svyazinvest

Svyazinvest OJSC is a Russian telecommunications holding company.

As reported in the Troubled Company Reporter-Europe on Sept. 21,
2010, Standard & Poor's Ratings Services said that its ratings on
five regional subsidiaries of Svyazinvest remain on CreditWatch,
where they were placed with developing implications in June 2010.

The CreditWatch refers to the 'BB-' long-term corporate credit
ratings on North-West Telecom (JSC), VolgaTelecom (OJSC), and
Central Telecommunications Co. (OJSC); the 'B+' long-term
corporate credit rating on Uralsvyazinform (OJSC); and the 'B'
long-term corporate credit rating on Southern Telecommunications
Co. (OJSC), as well as the national scale and debt ratings on all
five companies.

The extension of the CreditWatch status follows the change of the
timeframe for receipt of early repayment claims from the creditors
of the companies, which arose as a result of their reorganization
and merger into OJSC Rostelecom (BB/Stable/--).  S&P originally
expected the claim period to expire in September, but it has been
extended to November 2010 because of technical and legal


NOVA LJUBLJANSKA: Fitch Downgrades Individual Rating to 'D'
Fitch Ratings has affirmed Slovenia-based Nova Ljubljanska Banka's
Long-term Issuer Default Rating at 'A-' with a Stable Outlook.
The agency has downgraded the Individual Rating to 'D' from 'C/D'
and removed it from Rating Watch Negative.

The affirmation of NLB's Long-term IDR reflects the participation
of the Republic of Slovenia in the bank's ongoing EUR250 million
equity issue.  NLB's IDRs and Support Rating are driven by Fitch's
view of potential support for the bank from the Slovenian
authorities, given the latter's ultimate majority ownership (a
50.22% stake prior to the new issue) and the bank's high systemic

The European Commission has authorized the recapitalization of NLB
with the Slovenian government's participation, and Fitch
understands that this authorization allows the Slovenian
authorities to increase their stake in the bank, if required.  The
Slovenian government has subscribed to shares in the first round
of the capital increase.  Fitch is of the opinion that the
authorities could ultimately contribute a large majority of the
planned EUR250 million issue, given only limited initial take up
from other shareholders in the first round.

The downgrade of the Individual Rating reflects recent further
recognition of loan impairment, which in Fitch's view fully
offsets the expected positive impact from the equity injection.
The capital injection would need to have had a material positive
impact on NLB's loss absorption capacity for the Individual rating
to be affirmed at the 'C/D' level, given concerns about capital
already expressed by Fitch.

The 'D' Individual Rating reflects NLB's still modest
capitalization (post share issue), the high level of non-
performing loans (NPLs, defined as category 'A', 'B' and 'C' loans
overdue by 90 days plus category 'D' and 'E' loans), modest
reserves coverage of NPLs, significant loan concentration,
sizeable equities exposure and weak performance.  It also
considers potential medium-term refinancing risk.  However, the
rating is supported by NLB's well-established domestic franchise
and currently adequate liquidity.

NLB's consolidated Tier 1 capital ratio fell to 6% at end-2010
(7.6% on a pro forma basis, allowing for the expected EUR250m
equity injection).  Apart from the equity raising, NLB is also
looking to divest certain subsidiaries and associates and restrict
balance sheet growth in order to support capitalization.  The bank
raised EUR89m of new capital in the first stage of its equity
issue, which closed on 21 March 2011.

However, while Fitch views the inflow of new capital positively,
the agency notes that in Q410, the group incurred further
impairment charges and provisions of EUR226 million.  These
charges contributed to a 2010 annual net loss of EUR202 million.
The agency notes that the level of impairment charges is likely to
weigh on performance in 2011, whilst NLB's growth prospects remain
muted, given its weak capital position.

NPLs have risen sharply, reaching around 16.5% at end-2010, up
from around 13% at end-Q310 and 9% at end-2009.  This
deterioration is mainly due to sizeable loans to the troubled
construction sector and holding companies.  In Fitch's view, NPLs
could rise further in 2011, particularly given the marked downward
migration in loans to category 'C'.  Specific reserves coverage of
NPLs was 44% at end-2010, a level that Fitch considers to be
modest and which should be viewed in light of the bank's thin
level of capital.  The agency also considers single-name
concentration in the loan book to be high and the bank to have
sizeable equities exposures resulting mainly from the seizure of
collateral relating to bad loans.  At end-2010, the total amount
of equities (excluding stakes in associates and joint ventures)
represented about 20% of the consolidated pro-forma equity
(including the EUR250 million share issue).

Dependence on wholesale funding remains significant.  NLB reported
a loans/deposits ratio of 125% at end-2010.  Access to funding
from the European Central Bank is an important positive rating

Fitch notes that additional sharp deterioration in asset quality,
leading to further erosion of NLB's capital base, could put
downward pressure on the bank's Individual Rating.  Upside to the
Individual Rating is currently limited given NLB's capital
position and the level of NPLs.

NLB is the largest bank in Slovenia with about 28% of the banking
sector's assets and an almost 33% share of deposits at end-2010.
Belgium's KBC Group ('A'/Stable) held a 30.6% stake in the bank
prior to the current share issue, but this is expected to reduce
to close to 25% as a result of KBC's limited participation in the

The rating actions are:

  -- Long-term foreign currency IDR: affirmed at 'A-'; Stable

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

  -- Support Rating: affirmed at '1'

  -- Individual Rating: downgraded to 'D' from 'C/D'; removed from

  -- Support Rating Floor: affirmed at 'A-'

  -- Guaranteed notes: affirmed at 'AA'


BANCO BASE: To Apply for EUR2.8 Bil. From Bank Restructuring Fund
The Financial Times reports that Banco Base will apply for
EUR2.8 billion (US$4 billion) from the state-backed bank
restructuring fund -- nearly twice the capital shortfall estimated
by the Bank of Spain.

The FT relates that a spokesman for Alicante-based CAM, one of the
banks that merged to form Banco Base, was unable to say on Tuesday
why the bank would apply for more than the central bank's

Banco Base is Spain's third-largest savings bank.

FONCAIXA EMPRESAS: Moody's Assigns B2 (sf) Rating on Serie B Note
Moody's Investors Service has assigned these definitive ratings to
the debt issued by FONCAIXA EMPRESAS 3, Fondo de Titulizacion de

  -- EUR300M Serie A1 Note, Assigned Aaa (sf)
  -- EUR820M Serie A2 Note, Assigned Aaa (sf)
  -- EUR280M Serie B Note, Assigned B2 (sf)

                        Ratings Rationale

FONCAIXA EMPRESAS 3, FTA is a securitization of draw-down under
lines of credit and loans granted to micro, small- and medium-
sized enterprises and corporate entities by "la Caixa" (Aa2/P-1
Negative Outlook).  "la Caixa" is acting as Servicer of the loans
while GestiCaixa S.G.F.T., S.A. is the Management Company

The pool of underlying assets was, as of January 2011, composed of
a portfolio of 13,630 contracts (25% of the total amount being
draw-downs from lines of credit) granted to obligors located in
Spain.  The assets were originated between 1997 and 2011, with a
weighted average seasoning of 1.9 years and a weighted average
remaining term of 10.5 years.  Around 54% of the portfolio is
secured by mortgage guarantees over different types of properties.
Geographically, the pool is located mostly in Madrid (25.9%) and
Catalonia (22.6%).  At closing, certain loans may be in arrears
for up to 30 days, and these are capped at a maximum of 10% of the
total pool notional.

According to Moody's, this deal benefits from several credit
strengths: (i) there is a swap hedging interest rate risks and
guaranteeing 75bps excess spread; (ii) well diversified pool
allover Spain; and (iii) an up-front funded reserve fund of
EUR147,700,000 representing 10.55% of the notes.

Moody's notes that the transaction features a number of credit
weaknesses, including: (a) according to Moody's industry
classification there is 33% exposure to the Construction and
Building sector; (b) high concentration with the top 10 single
debtors representing around 15% of the portfolio; (c) 25% of the
total portfolio are draw-downs under lines of credit, which are
flexible products that creates uncertainty in the LtV.

These characteristics were reflected in Moody's analysis and
ratings, where several simulations tested the available 30.55%
total credit enhancement (i.e. notes subordination and reserve
fund) for Series A notes 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 via excess-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 14.31%, and a stochastic
mean recovery rate of 57%.

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.

As mentioned in the methodology papers, Moody's used a combination
of its CDOROM model (to generate the default distribution) and
ABSROM cash-flow model to determine the potential loss incurred by
the notes under each loss scenario.  In parallel, Moody's also
considered non-modeled risks (such as counterparty risk).

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 assumed default probability of 14.31%
used in determining the initial rating was changed to 21.53% and
the recovery rate of 57% was changed to 37%, the model-indicated
rating for Series A2 and Series B of Aaa(sf) and B2(sf) would have
changed to A3(sf) and Caa2(sf).  Series A1 Aaa(sf) rating would
have remain unchanged.

MBS BANCAJA: Moody's Downgrades Ratings on All Classes of Notes
Moody's Investors Service has downgraded all ratings of all the
notes issued by MBS Bancaja 4 FTA.

The ratings of the notes were placed on review for possible
downgrade in November 2009 due to the worse than expected
performance of the collateral.  All the loans were originated by
Caja de Ahorros de Valencia, Castellon y Alicante (Bancaja Baa1/P-
2 on review for possible downgrade).

                        Ratings Rationale

The rating action concludes the review and takes into
consideration the worse-than-expected performance of the
collateral.  It also reflects Moody's negative sector outlook for
Spanish RMBS and the weakening of the macro-economic environment
in Spain, including high unemployment rates.  The operational risk
is also a driver of rating action on the senior notes.

The ratings of the notes take into account the credit quality of
the underlying mortgage loan pools, from which Moody's determined
the MILAN Aaa Credit Enhancement (MILAN Aaa CE) and the lifetime
losses (expected loss), as well as the transaction structure and
any legal considerations as assessed in Moody's cash flow
analysis.  The expected loss and the Milan Aaa CE are the two key
parameters used by Moody's to calibrate its loss distribution
curve, used in the cash flow model to rate European RMBS

Portfolio Expected Loss:

Moody's has reassessed its lifetime loss expectation taking into
account the collateral performance to date, as well as the current
macroeconomic environment in Spain.  In January 2011, cumulative
write-offs rose to 1.89% of the original pool balance.  The share
of 90+ day arrears stood at 1.92% of current pool balance.
Moody's expects the portfolio credit performance to be under
stress, as Spanish unemployment remains elevated.  The rating
agency believes that the anticipated tightening of Spanish fiscal
policies is likely to weigh on the recovery in the Spanish labor
market and constrain future Spanish households finances.  Moody's
also has concerns over the timing and degree of future recoveries
in a weaker Spanish housing market.  On the basis of Moody's
negative sector outlook for Spanish RMBS, the rating agency has
updated the portfolio expected loss assumption to 2.20% of
original pool balance up from 0.51%.


Moody's has assessed the loan-by-loan information to determine the
MILAN Aaa CE.  Moody's has increased its MILAN Aaa CE assumptions
for 10.0%, up from 4.05% at closing.  The increase in the MILAN
Aaa CE reflects the exposure to broker origination (16.65%), non
Spanish nationals (15.20%) and the concentration in coastal areas.
In addition 9.89% of the portfolio correspond to commercial
properties.  Credit enhancement under the Class A (including
subordination and reserve fund) is 7.37%.

Operational Risk:

Bancaja (Baa1/P-2 on review for possible downgrade) is the
servicer of this transaction.  The operational risk is one of the
drivers of rating action on class A2 notes.  Moody's notes that
there is not sufficient liquidity in the transaction to allow
timely payment on the notes in case of a servicing transfer.  The
reserve fund is not at target level and there are no other sources
of liquidity in the structure.  In addition there is no trigger in
place to appoint a back-up servicer.  A multi notch downgrade of
the servicer will impact the senior note ratings if other remedies
are not put in place.

Amortisation of Class A2 and A3 notes:

The revised portfolio loss assumptions are also a driver in the
downgrade of the class A2 notes.  The rating action on class A2
reflects the probability that the Class A2 and A3 notes will turn
to pro-rata payment in high loss scenarios.  The amount retained
as principal due will be allocated pro-rata between Classes A2 and
A3 if the aggregated outstanding amount of Classes A2 and A3, by
reason of principal, is equal to or greater than the outstanding
amount of performing loans (including loans up to 90 days in

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 notes 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.

Transaction Features:

MBS Bancaja 4 closed in May 2007.  The transactions is backed by
portfolios of first-ranking mortgage loans originated by Bancaja
secured on residential properties located in Spain, for an overall
balance at closing of EUR1.85 billion.  The securitized mortgage
portfolio benefit from a relatively low weighted average LTV,
currently about 53%.  The pool is fairly exposed to the
Mediterranean coast.  8.89% of the portfolio correspond to
commercial properties.

Reserve fund: The rapidly increasing levels of defaulted loans
ultimately resulted in draws to the reserve fund.  The reserve
fund is currently at 70% of its target.

Commingling: All of the payments under the loans in this pool are
collected by the servicer under a direct debit scheme into the
collection accounts held at Bancaja (Baa1/P-2 under review for
possible downgrade) and are transferred to the treasury account
held at Banco Cooperativo Espanol S.A (A1 /P-1) every two days.
The commingling risk has been taken into account in the review of
the transaction.

Swap: According to the swap agreement entered into between the
Fondo and BNP Paribas (Aa2 / P-1), on each payment date:

* The swap counterparty will pay the index reference rate of the

* The Fondo will pay a weighted average of the 12-month Euribor
  over the past months for each of the groups, whereby the weights
  are fixed for each month on the closing date.

This payment is aimed at replicating the amount of interest
corresponding to the index reference rates that the Fondo receives
for each of the groups between payment dates.  The notional will
be the outstanding amount of the loans included in each of the two
groups excluding all loans with arrears of more than 18 months.

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

                     List of Ratings Actions

Issuer: MBS BANCAJA 4 Fondo de Titulizacion de Activos

  -- EUR1,182.1M A2 Certificate, Downgraded to Aa2 (sf);
     previously on Nov 30, 2009 Aaa (sf) Placed Under Review for
     Possible Downgrade

  -- EUR300M A3 Certificate, Downgraded to Aa2 (sf); previously on
     Nov 30, 2009 Aaa (sf) Placed Under Review for Possible

  -- EUR30.5M B Certificate, Downgraded to Baa2 (sf); previously
     on Nov 30, 2009 Aa3 (sf) Placed Under Review for Possible

  -- EUR18.9M C Certificate, Downgraded to Ba2 (sf); previously on
     Nov 30, 2009 A3 (sf) Placed Under Review for Possible

  -- EUR18.5M D Certificate, Downgraded to B3 (sf); previously on
     Nov 30, 2009 Baa3 (sf) Placed Under Review for Possible

  -- EUR23.1M E Certificate, Downgraded to C (sf); previously on
     Nov 30, 2009 Caa3 (sf) Placed Under Review for Possible

U N I T E D   K I N G D O M

ARDIS LIVING: Goes Into Liquidation; 20 Jobs Lost
Heather McGarrigle at Belfast Telegraph reports that Ardis Living
has gone into liquidation after more than 30 years in business
with the loss of at least 20 jobs.

According to Belfast Telegraph, Ardis furniture shops in Belfast
and Lisburn, gift shops in Saintfield and Banbridge, and its
50,000 square-foot flagship store in Gilford have all closed.  As
well as shop floor staff, employees in the flagship store's cafe
and design studio have also lost their posts.

However, founder David Ardis told the Belfast Telegraph that,
"[w]ork is ongoing to salvage the cafe as well as the design and
manufacturing divisions of the business."

A two-day liquidation sale was held over Friday and Saturday, with
the remaining furniture stock sold at discounted prices from the
Gilford premises, Belfast Telegraph reports.

Belfast Telegraph notes that Ardis Living is the latest furniture
retailer to go out of business in recent weeks.  Earlier this
month, says Belfast Telegraph, Dekko closed its stores on
Belfast's Boucher Road and the Junction One shopping complex in Co

Founder and managing director Michael Bambrick said uncertainty
over job and income prospects during the recession was leading
people to defer furniture buys, Belfast Telegraph adds.

Ardis Living is a Northern Ireland furniture retailer founded in

BENNETTS ELECTRICAL: Hughes Buys Business Out of Administration
Bury Free Press reports that Hughes Electrical, which has bought
part of the Bennetts business and assets out of administration on
March 10, will not reopen the Bury St. Edmunds store because its
rent is too expensive.

"We were keen to get the Bury St Edmunds store because it's a good
location in a nice town.  We looked at putting both Bennetts and
Hughes in there but then we found there's a massive rent increase
on the building," Bury Free Press quotes Robert Hughes, the
Company's managing director, as saying.

Hughes will reopen six stores in two to three weeks, to trade
under the Bennetts name, as well as restarting Bennetts Online,
Bury Free Press discloses.

Bury Free Press relates that Robert Hughes, Hughes's managing
director, said Hughes will honor customer orders placed in all 16
Bennetts stores and online before that company went into

Hughes Electrical says the six stores will create 100 jobs with
priority given to the 228 Bennetts staff made redundant, even if
they worked in other branches, Bury Free Press notes.

Bury Free Press says the administrators PKF is seeking other
buyers for the 10 stores Hughes is not taking on.

"It is regrettable that we have had to make redundancies but a
lack of cash in the administration meant it was not possible to
continue to trade the business and meet ongoing wage costs for all
staff.  We are confident that the Bennetts name will trade well
from reopened stores," Bury Free Press quotes Matt Howard, joint
administrator and corporate recovery partner at PKF, as saying.

Headquartered in Norfolk, Bennetts is an independent electrical
retailer.  The electrical company has its head office in Bowthorpe
and has 14 stores across the country, including outlets in
Norwich, Costessey, Great Yarmouth, Holt, Cromer, King's Lynn,
Diss and Dereham.

BEETHAM HOTELS: Hilton Hotel in Manchester Gets New Landlord
Manchester Evening News reports that Blue Manchester is to buy the
Hilton Hotel in Manchester's Beetham Tower.

In February, administrators were appointed to Beetham Hotels
Manchester understood to be "tens of millions" in the red with
Lloyds Bank, Manchester Evening News recounts.

The owners of Blue Manchester have yet to be disclosed, Manchester
Evening News notes.

Beetham employed Hilton Worldwide to manage the hotel, and its
sister company, Beetham Hotels Liverpool, operated a Radisson
hotel in Liverpool's Old Hall Street, Manchester Evening News.  It
was also placed into administration at the same time, and has now
been bought by another new enterprise called Blue Liverpool,
Manchester Evening News states.

The administrations were the latest in a series of financial
troubles to hit the Beetham companies following the failure in
January of Beetham's West Tower skyscraper residential development
in Liverpool city center, Manchester Evening News recounts.

"The hotels were over-geared.  At an operating level they made
money, but it was not sufficient to cover the financing costs,"
Manchester Evening News quotes KPMG administrator Ian Corfield, as
saying.  "There were factors outside the day-to-day operations of
the hotel that meant they had no choice but to go into
administration.  The deal that we have structured is a going
concern sale that includes a repayment to the bank, but also the
hotel's suppliers will have their liabilities repayed by the new

"These are new corporate entities that have been founded as
vehicles for acquisition."

Beetham Hotels Manchester is a Liverpool-based property company.

CDU: Goes Into Administration
FashionUnited reports that CDU has gone into administration.

According to FashionUnited, CDU said in a statement to the Stock
Exchange on Friday that it has appointed John Whitfield and Philip
Duffy, partners at MCA, joint administrative receivers of the

"Like many in the retail sector, CDU has experienced a difficult
trading environment during the course of the past two years.  This
has been exacerbated by a further downturn in consumer spending,"
FashionUnited quotes John Whitfield as saying.  "The company is
trading as normal at present while all options are considered.
There is already interest in the business and brands and we hope
to be able to secure a going concern sale of the business and its
assets in due course."

CDU is a UK fashion group.  It operates fashion brands, such as
Michael Amber and Frank Usher.  The company has bases in both
London and Staffordshire and employs roughly 44 staff.  It focuses
on the design, wholesale and sourcing of premium occasion wear and
bridal attire, footwear and accessories.

FORDS BAKERY: Placed in Liquidation; Asset Sale Only Option
British Baker's reports that Fords Bakery in
Prestonpans has been placed into liquidation, with 35 staff made
redundant, and around 25 set to move to its parent company.

Liquidator Tom Hughes, partner at Gerber Landa & Gee chartered
accountants told British Baker that the bakery had gone into
administration in June last year and was sold to Scullions
Wholesale Bakery, a subsidiary of the McGhee Group, in the hope
that it could reverse the bakery's trading losses and make it

"However, as the year went on, that became very difficult. Cut-
backs to staff were made to try and address the issue, but it was
still making serious losses, so there was no alternative but to
close the business," Mr. Hughes told British Baker.  According to
the report, the firm was placed into liquidation on March 20,
2011, with the liquidator looking to make an asset sale only.

"Despite considerable efforts, the business continued to show
trading losses. It was therefore concluded that the current
operation was no longer viable," British Baker quotes a
spokesperson for Scullions as saying.  "While this will result in
a number of job losses, around 25 positions will be saved, with
those personnel redeployed within the restructured Fords Bakery
business, as part of the McGhee's Bakery Group."

Mr. Hughes confirmed that investigations were being made into any
monies owed to creditors, with a creditors meeting scheduled for
April 1, 2011, British Baker notes.

Fords Bakery is an East Lothian bakery.  The company had an annual
turnover of GBP5 million.  It had been supplying supermarkets,
food service companies and independent bakeries in East and
Central Scotland, according to BBC News.

JERMON LTD: Collapse to Cost Banks GBP100 Million
BBC reports that Jermon Ltd.'s collapse is to cost its banks
GBP100 million.

Jermon was placed into administration in January after it suffered
in the property crash and credit crunch, BBC recounts.

BBC relates that in a statement of affairs, filed as part of the
insolvency process, the company states its assets are worth GBP91
million but its bank debts are GBP191 million.  A further GBP4
million is owed to other creditors, almost half of which is due in
tax, BBC discloses.

The company borrowed money from four banks, though it is not yet
clear which will bear the heaviest losses, BBC notes.

The administrators report shows it owes GBP63 million to AIB and
GBP25 million to Bank of Ireland, according to BBC.  The balance
of GBP103 million is owed to Anglo Irish and Bank of Scotland
Ireland (BoSI).

Anglo Irish and BoSI are not part of the company administration
process, instead they have been repossessing individual assets,
BBC states.  The administrator has asked a solicitor to review
each bank's security position and has also commissioned a surveyor
to conduct a review of the property portfolio, BBC relates.

Jermon Ltd. is a Northern Ireland-based property firm.

RURAL COLLEGE: In Liquidation; Owner Declared Insolvent
Clare Weir at Belfast Telegraph reports that The Rural College at
Derrynoid in Draperstown has been wound up.

The facility closed suddenly last week, Belfast Telegraph relates.

According to Belfast Telegraph, the company which ran the college
has now been declared insolvent.

Receivers Arthur Boyd and Company will handle claims, Belfast
Telegraph discloses.

The Rural College is a business, cultural and community center in
Co Londonderry.

SAS FIRE: Forced Into Liquidation Over Hard-Selling Racket
Marion Scott at Sunday Mail reports that Business Secretary Vince
Cable has finally moved to sink Sas Fire & Security -- two years
after we exposed their hard-selling racket.

Sas Fire & Security have been forced into liquidation after their
ruthless tactics were revealed by the Sunday Mail in a series of
special reports.

Sunday Mail also revealed how bullying sales staff used crime
fears to dupe vulnerable customers into buying cheap alarm systems
for thousands of pounds.

The firm, which was launched by ex-Motherwell footballer David
Black using the name David Diaz, was also rapped for misleading
adverts and flouting a ban on cold calling, according to Sunday

Sunday Mail relates that Mr. Cable axed the firm following a
UK-wide probe by his department's Company Investigation unit.

"Following inquiries carried out by Company Investigation, a
petition was presented by the secretary of state for this company
to be wound up in the public interest," Sunday Mail quotes a
spokesman for the minister as saying.

On March 10, 2011, the Manchester District Registry appointed the
Official Receiver as Provisional liquidator of the company.
This followed the presentation by the Secretary of State for
Business, Innovation and Skills of a petition to wind up the
company in the public interest.

THOMPSON LENNOX: Collapse to Cost Ulster Bank GBP20 Million
BBC News reports that Ulster Bank can expect to lose GBP20 million
on loans it made to Thompson Lennox, which was placed into
receivership earlier this year after suffering severe cash flow

According to BBC, the company owes the bank around GBP23 million
but its assets are worth just GBP3 million.  Those assets are a
site at Station Road in Moneymore, which has planning permission
for 201 houses, and a partially built development of 144 houses at
Derryree Road in Lisnaskea, BBC discloses.

Thompson Lennox is a County Down house building firm.

VAR FREEDOM: Goes Into Liquidation; Axes All Workers
Caroline Donnelly at CRN reports that VAR Freedom Technology
Solutions has gone into voluntary liquidation.  Birmingham-based
insolvency practitioner, Sanderlings LLP, was appointed as the
company's liquidator on March 14, 2011.

Channel sources said the company laid off its 16-strong workforce
at the end of last month without paying their final month's

CRN, citing documents filed with Companies House, discloses that
in the 12 months to March 14, 2011, the firm made a loss of
GBP45,000 and had a turnover of more than GBP610,000.  Conversely,
during the previous year, the firm made a profit of more than

According to the report, the company's creditors meeting report
reveals the company lost a number of "large and small contracts"
over the last 12 months because of the economic downturn.

However, it was the loss of two major client contracts in December
2010 that resulted in the company seeking the services of an
insolvency practitioner, CRN adds.

VAR Freedom Technology Solutions is a Midlands-based software


* Moody's Reviews Ratings on Nine SF CDO Transactions
Moody's Investors Service has placed under review for possible
downgrade the ratings of 9 SF CDO transactions that have
significant exposure to European structured finance securities
which were placed on watch on March 2, 2011, following the
assessment under the new operational risk guidelines.

                        Review Rationale

The reviews reflect that these 9 SF CDOs may experience negative
rating migrations depending on the outcome of the reviews of the
watchlisted structured finance securities.  Moody's will revisit
these SF CDO transactions to resolve the watch status once the
reviews of the watchlisted underlying securities have been

The transactions placed under review for possible downgrade are:

Issuer: Claris Limited Series 88 & 89 (Millesime 2007-2 Portfolio)

  -- EUR21M Series 88/2007-1 Notes, B3 (sf) Placed Under Review
     for Possible Downgrade; previously on Dec 10, 2009 Downgraded
     to B3 (sf)

  -- EUR43M Series 89/2007-1 Notes, Baa1 (sf) Placed Under Review
     for Possible Downgrade; previously on Dec 10, 2009 Downgraded
     to Baa1 (sf)

Issuer: ELM B.V. - LABS Series 2007-1

  -- EUR50M EUR50,000,000 Series 2007-1 - LABS due 2027 Notes, A3
      (sf) Placed Under Review for Possible Downgrade; previously
     on Apr 23, 2009 Confirmed at A3 (sf)

Issuer: ELM B.V. - Series 79 - Leveraged Asset-Backed Securities

  -- EUR22.5M EUR22,500,000 Floating Rate Credit Linked Secured
     Notes due 2026 Notes, A3 (sf) Placed Under Review for
     Possible Downgrade; previously on Apr 23, 2009 Confirmed at
     A3 (sf)

Issuer: ELM B.V. Series 41

  -- EUR84M EUR84,000,000 Floating Rate Credit Linked Secured
     Notes due 2056 Notes, Ba1 (sf) Placed Under Review for
     Possible Downgrade; previously on Jul 17, 2009 Downgraded to
     Ba1 (sf)

Issuer: ELM B.V. Series 48 - Leveraged Asset Backed Securities

  -- EUR22.5M EUR22,500,000 Floating Rate Credit Linked Secured
     Notes due 2056 Notes, Ba3 (sf) Placed Under Review for
     Possible Downgrade; previously on Sep 14, 2010 Downgraded to
     Ba3 (sf)

Issuer: Lagonda CDO

  -- EUR135M EUR135,000,000 Lagonda CDO CDS Super Senior Tranche
     Notes, A1 (sf) Placed Under Review for Possible Downgrade;
     previously on Aug 27, 2010 Downgraded to A1 (sf)

Issuer: Societe Generale - Credit Default Swap (Millesime 2007-2

  -- EUR5M Credit default swap ref EXO-1224830 Notes, B3 (sf)
     Placed Under Review for Possible Downgrade; previously on Dec
     10, 2009 Downgraded to B3 (sf)

Issuer: UBS AG, Jersey Branch - LABS 2006-1

  -- EUR75M EUR75,000,000 Leveraged Asset-backed Securities due
     2056 Notes, Ba3 (sf) Placed Under Review for Possible
     Downgrade; previously on Aug 20, 2009 Downgraded to Ba3 (sf)

Issuer: UBS AG, London Branch - EUR225,000,000 Syndicated Loan
Facility to TREES

  -- EUR225M EUR225,000,000 Syndicated loan facility to TREES
     Notes, B2 (sf) Placed Under Review for Possible Downgrade;
     previously on Sep 4, 2009 Downgraded to B2 (sf)


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

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

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

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


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

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

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 * * *