TCREUR_Public/110429.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

            Friday, April 29, 2011, Vol. 12, No. 84



WATER SER LOUNA-ESTI: Excessive Liabilities Prompts Bankruptcy


* GREECE: Debt Restructuring Not Good for Economy, Orphanides Says
* GREECE: Can't Avoid Debt Restructuring, Lars Feld Says


ANGLO IRISH: Steps Closer to Wind-Down; Removes Old Signage
RAY GREHAN: Grant Thornton to Oversee Debts & Property Assets


FIAT FINANCE: Moody's Reviews 'Ba1' Rating for Possible Downgrade


MARFRIG HOLDINGS: S&P Assigns 'B+' Rating to US$500MM Sr. Bonds
SENSATA TECHNOLOGIES: Incurs US$8.93MM Net Loss in March 31 Qtr.


* PORTUGAL: European Bailout Fund Hinges on Finland's Support


ALFA-BANK: Fitch Assigns Final 'BB' Rating to Sr. Eurobond Issue
CREDIT BANK OF MOSCOW: Fitch Assigns 'B+' Rating to RUB5-Bil. Bond
TIPOS: To File Constitutional Appeal to Leminko Court Ruling
* YAROSLAVL: Fitch Assigns Final 'BB-' Rating to RUB1.82BB Bonds


CAJA DE AHORROS: Moody's Assigns 'Baa1' Rating to 2014 Bonds


SAAB AUTOMOBILE: Seeks Potential Partnerships with Chinese Firms

U N I T E D   K I N G D O M

AMDEGA: Goes Into Administration, May Cut 190 Jobs
CLACHNACUDDIN F.C.: Comes Out of Administration
GLOBAL CROSSING: Incurs GBP6.95-Mil. Net Loss in 2010
GRAFTON SHOPPING: Miller Developments Acquires Center
MONDI FINANCE: S&P Assigns 'BB+' Rating to EUR1.5BB EMTN Program

RTC Group: Narrows Pre-Tax Loss by 75% to GBP0.45 Million
VON ESSEN: Thornbury Castle Future In Doubt
* UK: NHS Reforms Need to Include Plan for Company Failures
* UK: Company Voluntary Arrangement to Increase in Popularity


* EUROPE: Heavily Indebted Nations May Restructure Debt
* BOOK REVIEW: The Executive Guide to Corporate Bankruptcy



WATER SER LOUNA-ESTI: Excessive Liabilities Prompts Bankruptcy
Toomas Hobemagi at Baltic Business News, citing Aripaev, reports
that Water Ser Louna-Eesti has filed for bankruptcy.

According to BBN, overborrowing and excessive leasing liabilities
were blamed for the company's bankruptcy.

Employing 35 people, the company's demise has been fast since its
result in 2009 was a profit of EEK3.6 million at revenues of
EEK84 million, BBN relates.  It now owes the state almost
EUR50,000 in taxes, BBN discloses.

Water Ser Louna-Eesti is a regional subsidiary of Water Ser, one
of Estonia's largest builders of water and wastewater networks.


* GREECE: Debt Restructuring Not Good for Economy, Orphanides Says
Menelaos Hadjicostis at The Associated Press reports that
Athanasios Orphanides, a board member at the European Central
Bank, said any move by Greece to renegotiate the terms of its
debt, as many in financial markets expect to occur eventually,
would be "unnecessary" and a "very bad idea."

According to AP, Mr. Orphanides, a board member at the European
Central Bank, said talk about restructuring -- that is, extending
debt repayment periods or reducing the repayment amount -- could
be "damaging to the European Union as a whole."

"Restructuring would be a mistake at this time.  Restructuring
would be undesirable for the Greek economy, it would be
undesirable for the eurozone economy," AP quotes Mr. Orphanides as
saying.  "I certainly don't recommend to European Union
politicians to discuss this possibility or to make any such

Cypriot banks are heavily exposed to Greek debt and would suffer
heavily from a restructuring, though Mr. Orphanides claimed their
capital buffers are large enough to resist trouble in Greece, AP

Greece had to be saved from bankruptcy with EUR110 billion (US$160
billion) in European Union and International Monetary Fund rescue
loans last May, AP recounts.  Investor confidence in the country,
however, remains low a year later as the country struggles to
emerge from recession and to raise revenue to repay debt, AP

Greek officials' denials have failed to silence persistent market
chatter of an eventual debt restructuring, AP relates.

* GREECE: Can't Avoid Debt Restructuring, Lars Feld Says
Keith Jenkins and Emma Charlton at Bloomberg News reports that
Lars Feld, a member of German Chancellor Angela Merkel's council
of economic advisers, said Greece cannot avoid restructuring its

"There's more speculation about debt restructuring, which is
reflected in the Greek curve," Bloomberg quotes Christopher
Rieger, head of fixed-income strategy at Frankfurt-based
Commerzbank AG, as saying.  "I don't see where any support for
Greek debt will be coming from.  The prices are still quite a long
way away from any reasonable haircut that people will expect if
restructuring was announced."

"I don't think that Greece will succeed in this consolidation
strategy without any restructuring in the future," Mr. Feld told
Bloomberg Television in Frankfurt.  "I think that Greece should
restructure sooner than later."

Greece's two-year yields rose to a euro-era record of 24.45% and
were at 24.24% as of 5:07 p.m. on April 27 in London, Bloomberg
discloses.  The 4.6% security due 2013 fell 1.39, or 13.9 euro per
1,000-euro (US$1,462) face amount, to 70.79, Bloomberg states.
Ten-year yields reached a record 15.38%, up from 12.84% on
March 31, Bloomberg relates.


ANGLO IRISH: Steps Closer to Wind-Down; Removes Old Signage
Simon Carswell at The Irish Times reports that Anglo Irish Bank
has removed the signage from the bank's six offices across the
country as the bank takes further steps to close and wind down
over time.

The Irish Times relates that the bank began removing the signs
from its branches in Dublin, Belfast, Cork, Limerick, Galway and
Waterford at 2:00 p.m. on April 20.

The bank will be renamed following the merger of Anglo with Irish
Nationwide Building Society which will take place this summer, The
Irish Times discloses.  Mike Aynsley, the bank's chief executive,
declined to disclose the new name until the merger, The Irish
Times notes.

Anglo was focused on "getting the maximum return for the Irish
taxpayer" by recovering as much as it could on the remaining EUR35
billion of loans, or EUR24 billion net of provisions taken against
losses.  "Removing the old Anglo signage is a step towards
reflecting this new reality," The Irish Times quotes Mr. Aynsley
as saying.

Mr. Aynsley, as cited by The Irish Times, said that consigning the
"signage to history" should help create an understanding among the
public that the old Anglo has gone.  He said the bank had removed
about 20 signs on April 20 and would be moving them to one
location which he declined to disclose, The Irish Times relates.

According to The Irish Times, Mr. Aynsley said that it would
consider selling them at auction to make money back for the State
or donate them to charity, a museum or a gallery for an art
installation.  The Irish Times notes that the executive said that,
based on the bank's estimates, the State's bailout of the bank
should not exceed EUR29.3 billion unless there is a further sharp
fall in the property market.

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.

RAY GREHAN: Grant Thornton to Oversee Debts & Property Assets
RTE News reports that receivers Michael McAteer and Paul McCann of
accounting firm Grant Thornton have been appointed to oversee the
debts and associated property assets of Ray and Danny Grehan.

Emmet Oliver and Donal O'Donovan at report that Mr.
Grehan expressed surprise and bafflement last night that National
Asset Management Agency (NAMA) had placed his property empire into
receivership. relates that Mr. Grehan, whose
company has about EUR650 million in debts, said he had signed a
memorandum of understanding with NAMA in December, but the agency
still moved to place his Irish and UK assets in receivership.

For its part, NAMA said such an agreement did not mean that
borrowers were exempt from enforcement action,

Among the Grehan assets NAMA is seizing are:

   -- the Grange apartment complex in Stillorgan;
   -- the former UCD site in Dublin 4;
   -- the Glenroyal Hotel in Maynooth; and
   -- a residential project near Liffey Valley, called St Edmunds.

Mr. Grehan was a top 20 developer and tried at the tail end of the
property boom to boost the market by providing interest-free loans
to buyers.


FIAT FINANCE: Moody's Reviews 'Ba1' Rating for Possible Downgrade
Moody's Investors Service has placed under review for possible
downgrade the Ba1 Corporate Family Ratings (CFR) of Fiat S.p.A.
and its rated subsidiaries Fiat Finance & Trade and Fiat Finance
North America as well as the Ba1 Probability of Default Rating
(PDR) following the announced agreement to increase its stake in
Chrysler Group LLC by another 16% to 46%.

The review was triggered by Fiat's announcement on April 21 that
it had reached an Agreement with Chrysler itself and the other
members of Chrysler to purchase an additional 16% stake in
Chrysler Group LLC for a cash payment to Chrysler of US$1,268
million which represents a significant step in the progressive
tighter integration of the two automobile manufacturers globally.
The exercise of this option is conditional upon the successful
refinancing of Chrysler's government loans provided by the
Canadian and US governments.  This is expected to be finalized in
the second quarter 2011.  Following this transaction, Fiat would
own 46% in Chrysler.  This stake could go up further to 51%
without additional cash requirements for Fiat if the last
performance event is met.

Issuer: Fiat Finance & Trade Ltd.,

   On Review for Possible Downgrade:

   -- Senior Unsecured Medium-Term Note Program, Placed on Review
      for Possible Downgrade, currently (P)Ba1

   -- Senior Unsecured Regular Bond/Debenture, Placed on Review
      for Possible Downgrade, currently Ba1

   -- Senior Unsecured Regular Bond/Debenture, Placed on Review
      for Possible Downgrade, currently Ba1

   Outlook Actions:

   -- Outlook, Changed To Rating Under Review From Negative

Issuer: Fiat Finance Canada Ltd. ,

   On Review for Possible Downgrade:

   -- Senior Unsecured Medium-Term Note Program, Placed on Review
      for Possible Downgrade, currently (P)Ba1

   Outlook Actions:

   -- Outlook, Changed To Rating Under Review From Negative

Issuer: Fiat Finance North America Inc. ,

   On Review for Possible Downgrade:

   -- Senior Unsecured Medium-Term Note Program, Placed on Review
      for Possible Downgrade, currently (P)Ba1

   -- Senior Unsecured Regular Bond/Debenture, Placed on Review
      for Possible Downgrade, currently Ba1

   Outlook Actions:

   -- Outlook, Changed To Rating Under Review From Negative

Issuer: Fiat S.p.A. ,

   On Review for Possible Downgrade:

   -- Probability of Default Rating, Placed on Review for Possible
      Downgrade, currently Ba1

   -- Corporate Family Rating, Placed on Review for Possible
      Downgrade, currently Ba1

   Outlook Actions:

   -- Outlook, Changed To Rating Under Review From Negative

The review will mainly focus on (i) the intercompany relationship
and future dependency of both companies on each other's
performance following the common use of vehicle architecture and
drivetrain technology as well as a common purchasing organization,
and (ii) the potentially increased exposure of Fiat towards
Chrysler that Moody's views as a weaker credit than Fiat.  Moody's
will also assess the impact on Fiat's liquidity profile following
the cash outflow of US$1,268 million though the agency recognizes
that Fiat has currently significant cash holdings on its balance

Fiat's ratings benefit from its leading market positions in Brazil
(with an approximate 25% market share), as the company's major
source of profits and cash flows in the past years.  Fiat Group
also benefits from a dominant domestic Italian market presence
(with an approximate 30% market share).  The group generates
approximately two thirds of its revenues in these two countries
and is therefore especially vulnerable to a drop-off in demand in
either one of these regions.  This very limited geographic
diversification, which would improve with the inclusion of
Chrysler in the Group, is a key weakness to its current rating.

The rating also reflects (i) Fiat's business risk, with a pure
focus on the highly cyclical automotive industry including an
increased 46% stake in Chrysler Group and the activities of
Magneti Marelli (automotive components) and Teksid (supplier of
engine blocks) as well as of Comau (robotics for the auto
industry) and Fiat Powertrain (mostly an internal supplier of
engines) and (ii) Moody's view of an ageing product portfolio in
Europe resulting from the absence of recent new volume model
launches.  This has led to an overall relatively infrequent model
renewal rate compared with its direct peers, thus constraining the
group's competitive position.  This was also reflected in last
year's market share losses in Europe and in Fiat's important home
market Italy.

Moody's anticipates that Fiat will be able to contain further
market share losses within the next two years before regaining
market shares in Europe, based on an attractive renewed model

The Ba1 rating also takes into consideration a substantial
increase in capital expenditures in the current year and beyond,
compared with a reduced level in 2010, in order to develop and
launch attractive new volume models to the market.  Moody's
anticipates that the launch schedule will accelerate from 2012

The principal methodologies used in this rating were Global
Automobile Manufacture Industry published in December 2007, and
Loss Given Default for Speculative-Grade Non-Financial Companies
in the U.S., Canada and EMEA published in June 2009.

Headquartered in Torino, Italy, Fiat S.p.A. is one of Italy's
leading industrial groups and one of Europe's largest automotive
manufacturers by unit sales.  On Jan. 1, 2011, the group completed
the demerger of its capital goods activities, mainly Iveco and CNH
(Ba3,stable), into a separate company, called Fiat Industrial
(Ba1, stable).  On a pro-forma basis, the new Fiat S.p.A.
generated consolidated revenues of EUR35.9 billion and reported a
trading profit of EUR1.1 billion in 2010.


MARFRIG HOLDINGS: S&P Assigns 'B+' Rating to US$500MM Sr. Bonds
Standard & Poor's Ratings Services said it assigned its 'B+'
rating to the senior unsecured, unsubordinated bonds to be issued
by Marfrig Holdings Europe B.V. in the amount of US$500 million
maturing in 2018 (seven-year tenor).  The rating on the issue
reflects the credit quality of Brazil-based Marfrig Alimentos S.A.
(Marfrig; B+/Stable), which will irrevocably and unconditionally
guarantee the bonds.

"We expect the debt issuance to help Marfrig improve its financial
profile, reducing short-term refinancing risks and extending its
debt maturity schedule.  We believe the company will use part of
the proceeds to pay down short-term and more expensive debt," S&P

"We assess Marfrig's business risk profile as fair, which reflects
the company's sizable scale of operations and its business and
geographic diversification. Marfrig's growth, which the company
achieved mainly through several sizable acquisitions, has
leveraged its financial ratios and has thus led us to assess
Marfrig's financial profile as highly leveraged," S&P related.

Ratings List
Marfrig Alimentos S.A.
Corporate credit rating     B+/Stable

New Rating

Marfrig Holdings Europe B.V.
US$500 mil sr unsec           B+

SENSATA TECHNOLOGIES: Incurs US$8.93MM Net Loss in March 31 Qtr.
Sensata Technologies B.V. filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q, reporting a
net loss of US$8.93 million on US$444.23 million of net revenue
for the three months ended March 31, 2011, compared with net
income of US$27.67 million on US$377.13 million of net revenue for
the same period during the prior year.

The Company's balance sheet at March 31, 2011, showed US$3.39
billion in total assets, US$2.49 billion in total liabilities, and
US$895.09 million in total shareholders' equity.

A full-text copy of the quarterly report on Form 10-Q is available
for free at

                           About Sensata

Almelo, Netherlands-based Sensata Technologies B.V. -- Sensata Technologies B.V. is a global
designer, manufacturer, and marketer of customized and highly-
engineered sensors and control products.  Sensata is a wholly-
owned subsidiary of Sensata Technologies Holding, N.V.  Its
sensors segment accounts for approximately 60% of the company's
2009 revenues, and supplies sensors and transducers to the
commercial, industrial and automotive markets.  Revenue for the
LTM period ended 9/30/10 approximated US$1.5 billion.

In October 2010, Moody's Investors Service said that Sensata
Technologies' 'B2' Corporate Family Rating and positive outlook
remain unchanged following the announcement of its public holding
company, Sensata Technologies Holding N.V., that it has reached a
definitive agreement to acquire the "Automotive on Board" sensors
business of Honeywell International for US$140 million in cash.

Moody's last rating action on Sensata was August 26, 2010, when
the company's Corporate Family and Probability of Default ratings
were upgraded to B2 from B3 and the ratings outlook was changed to

As reported by the TCR on March 1, 2011, Standard & Poor's Ratings
Services raised the ratings on sensors and controls manufacturer
Sensata Technologies B.V., including the corporate credit rating,
to 'BB-' from 'B+'.  The outlook is stable.  "The rating actions
reflect further improvements in Sensata's credit measures and the
continuing ownership reduction of its majority owner, private
equity firm Bain Capital, which S&P believes provides further
indication that the company is likely to maintain a less-
aggressive financial policy," said Standard & Poor's credit
analyst Dan Picciotto.  "S&P believes operating trends for 2011
remain favorable and that the company has demonstrated good
profitability through the economic downturn and into the upturn."


* PORTUGAL: European Bailout Fund Hinges on Finland's Support
Xinhua reports that European Economic and Monetary Affairs
Commissioner Olli Rehn said on Tuesday in an interview with
Finnish Broadcasting Company that a rescue for Portugal is only
possible with Finland's support.

According to Xinhua, Mr. Rehn said that no other options are in

Mr. Rehn stressed that the European bailout fund for Portugal
requires unanimity, Xinhua relates.  Portugal could go bankrupt if
no unanimous decision is made on its rescue, Xinhua notes.

"If we want to prevent Portugal's bankruptcy, we need a unanimous
decision that the European bailout fund can be used to rescue
Portugal.  Unanimity means also Finland's participation," Xinhua
quotes Mr. Rehn as saying.

Mr. Rehn pointed out that investor responsibility, demanded by
some Finnish political parties, will be included in the European
stability mechanism, which will start operating in 2013 and is now
in its final stages of preparation, Xinhua discloses.


ALFA-BANK: Fitch Assigns Final 'BB' Rating to Sr. Eurobond Issue
Fitch Ratings has assigned Alfa Bond Issuance plc's USD1bn issue
of 7.75% senior unsecured limited recourse loan participation
notes, due April 28, 2021, a final Long-term foreign currency 'BB'

The proceeds from the issue will be on-lent to OJSC Alfa-Bank
(Alfa-bank), rated Long-term Issuer Default Rating (IDR)
'BB'/Stable, Short-term IDR 'B', Individual Rating 'C/D', Support
Rating '4', Support Rating Floor 'B' and National Long-term rating

The term of the issue provide a put option to bondholders on the
occurrence of a put event, which may be triggered by a negative
rating action in respect of a change of control in ABH Financial
Limited, Alfa Banking Group's parent company, of which Alfa-Bank
is the main operating entity.  The loan will be guaranteed by ABH
Financial Limited.

ABG is the largest privately owned banking group in Russia by
assets.  The group is ultimately owned by six individuals, with
the largest stakes held by Mikhail Fridman (36.47%) and German
Khan (23.27%).

CREDIT BANK OF MOSCOW: Fitch Assigns 'B+' Rating to RUB5-Bil. Bond
Fitch Ratings has assigned Credit Bank of Moscow's RUB5 billion
bond issue BO-04, due April 15, 2014, a final Long-term rating of
'B+' with a Recovery Rating of 'RR4' and National Long-term rating
of 'A-(rus)'.

The coupons will be paid semi-annually.  The first coupon was
priced at 8.0%; second and third coupons have the same rate.  The
fourth, fifth and sixth coupons will be defined by the issuer.
The bonds have a put option after one and a half year.

Credit Bank of Moscow was among the 30 largest Russian banks by
assets at end-Q111, and its core business is providing banking
services to medium-sized trading companies.  It is fully owned by
a Russian businessman, Roman Avdeev.

TIPOS: To File Constitutional Appeal to Leminko Court Ruling
The TASR newswire reports that Tipos will file a constitutional
appeal in the next few days in response to a ruling by the Supreme
Court dated November 2010 whereby Tipos was ordered to pay
Cyprus-based firm Lemikon EUR14.122 million.

The Supreme Court found that Tipos had unlawfully used the know-
how and trademarks of Czech betting company Sportka, TASR
recounts.  Sportka subsequently sold its claim in the case to
Lemikon, TASR discloses.

According to TASR, Tipos said it believes the rationale attached
to the ruling is insufficient and disputable vis-a-vis the Slovak

"We'll submit a constitutional appeal on the grounds that the
company's rights to court protection, particularly the
constitutionally guaranteed right to fair court proceedings, were
infringed.  This right also includes the right to a high-quality
rationale behind a court ruling," TASR quotes Tipos general
director Milos Ronec, as saying.  Mr. Ronec also announced that
Tipos expects Lemikon to pay Tipos around EUR1.9 million in view
of the fact that Tipos in the past paid Lemikon around EUR16
million in an out-of-court settlement, i.e. some EUR1.9 million
more than the sum awarded by the Supreme Court, TASR notes.

                     Restructuring Proposal

TASR relates that Mr. Ronec also said that the company has filed
another restructuring proposal after one such proposal was
rejected by the Bratislava I District Court last week.  The
application was turned down over what the court called the failure
to observe requirements prescribed by law, TASR states.  Tipos,
TASR says, has been looking to carry out restructuring in order to
gain protection from its creditors, whose claims, Tipos asserts,
are dubious.

Tipos is a Slovak lottery company.

* YAROSLAVL: Fitch Assigns Final 'BB-' Rating to RUB1.82BB Bonds
Fitch Ratings has assigned Yaroslavl Region's RUB1.822 billion
domestic bond (ISIN RU000A0JREC7), due April 15, 2014 a final
Long-term local currency rating of 'BB-' and a final National
Long-term rating of 'A+(rus)'.  The region is rated Long-Term
foreign and local currency 'BB-', respectively with Positive
Outlook, Short-Term foreign currency 'B', and National Long-term
'A+(rus)' with Positive Outlook.

The bond has 12 coupon periods and a fixed step-down coupon
between 8% and 7.25% per annum.  The principal will be amortized
by 35% of the initial bond issue value on July 16, 2013 and the
remaining 65% of the initial value will be redeemed on April 15,
2014.  The proceeds from the new bond will be used to refinance
maturing debt and smooth the debt profile of the region.

Yaroslavl Region is part of the Central Federal District and lies
in the northern part of Russia.  The region accounted for 0.9% of
the national population (1.31 million residents) and 0.6% of
national GDP in 2008.


CAJA DE AHORROS: Moody's Assigns 'Baa1' Rating to 2014 Bonds
Moody's Investors Service has assigned a definitive long-term
rating to a new series of mortgage covered bonds issued by Caja de
Ahorros del Mediterraneo (CAM or the issuer) under its covered
bond program.

Issuer: Caja de Ahorros del Mediterraneo, mortgage covered bond

   -- EUR1,000M due 04/14/2014, Assigned Baa1.


The covered bonds constitute direct, unconditional and senior
obligations of Caja de Ahorros del Mediterraneo and are secured by
the issuer's entire mortgage loan pool (excluding securitized

The rating takes into account these factors:

   (1) The credit strength of the issuer (Ba1/NP/D).

   (2) The structure created by the transaction documents in
       combination with the legal framework for Spanish covered

   (3) The credit quality of the assets securing the payment
       obligations of the issuer under the covered bonds. The
       cover assets are residential and commercial mortgages
       located in Spain.

   (4) As of September 2010, the over-collateralization level
       consistent with the Baa1 rating is 12.5% and the level of
       over-collateralization is 170.4%.

Moody's has assigned a Timely Payment Indicator (TPI) of
"Probable" to the covered bonds.

The ratings assigned by Moody's address the expected loss posed to
investors.  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

The Baa1 rating assigned to the existing covered bonds is expected
to be assigned to all subsequent covered bonds issued by the
issuer under this program and any future rating actions are
expected to affect all such covered bonds.  Should there be any
exceptions to this, Moody's will in each case publish details in a
separate press release.


Covered bond ratings are determined after applying a two-step
process: expected loss analysis and TPI framework analysis.


Moody's determines a rating based on the expected loss on the
bond.  The primary model used is Moody's Covered Bond Model
(COBOL) which determines expected loss as a function of the
issuer's probability of default, measured by its rating of Ba1,
and the stressed losses on the cover pool assets following issuer

As of September 2010, the Cover Pool Losses for this program are
40.1%.  This is an estimate of the losses Moody's currently models
in the event of issuer default. Cover Pool Losses can be split
between Market Risk of 17.5% and Collateral Risk of 22.6%.  Market
Risk measures losses as a result of refinancing risk and risks
related to interest rate and currency mismatches (these losses may
also include certain legal risks).  Collateral Risk measures
losses resulting directly from the credit quality of the assets in
the cover pool.  Collateral Risk is derived from the Collateral
Score which for this program is 33.7%.


Moody's assigns a "timely payment indicator" (TPI) which indicates
the likelihood that timely payment will be made to covered
bondholders following issuer default.  The effect of the TPI
framework is to limit the covered bond rating to a certain number
of notches above the issuer's rating.


The robustness of a covered bond rating largely depends on the
credit strength of the issuer.

The number of notches by which the issuer's rating may be
downgraded before the covered bonds are downgraded under the TPI
framework is measured by the TPI Leeway.  Based on the current TPI
of "Probable" the TPI Leeway for this program is two notches,
meaning the issuer rating would need to be downgraded to B1 before
the covered bonds are downgraded, all other things being equal.

A multiple notch downgrade of the covered bonds might occur in
certain limited circumstances.  Some examples might be (a) a
sovereign downgrade negatively affecting both the issuer's senior
unsecured rating and the TPI; (b) a multiple notch downgrade of
the issuer; or (c) a material reduction of the value of the cover

For further details on Cover Pool Losses, Collateral Risk, Market
Risk, Collateral Score and TPI Leeway across all covered bond
programs rated by Moody's please refer to "Moody's EMEA Covered
Bonds Monitoring Overview", published quarterly.  These figures
are based on the most recent reporting by the issuer and are
subject to change over time.

The principal methodology used in this rating was Moody's Rating
Approach to Covered Bonds, published in March 2010.


SAAB AUTOMOBILE: Seeks Potential Partnerships with Chinese Firms
Andrew Ward at The Financial Times reports that Saab Automobile is
looking to China for a financial lifeline after efforts to save
the company hit a fresh stumbling block.

According to the FT, the company, bought by Spyker Cars of the
Netherlands from General Motors last year, said it was in talks
with "various Chinese car manufacturers" about potential

Saab's future has been thrown into fresh doubt this month after
some of its suppliers halted deliveries because of unpaid bills,
forcing an indefinite production stoppage that is entering its
third week, the FT relates.

Spyker, controlled by the Dutch entrepreneur Victor Muller, is
pinning most of its hopes on a planned cash injection by Vladimir
Antonov, a Russian financier, who has agreed to buy Saab's plant
and other real estate and lease it back to the company, the FT
says.  However, the company warned on Tuesday that the deal was in
doubt because of wrangling with the European Investment Bank,
Saab's biggest creditor, which must approve any change to its
financing arrangements, the FT notes.

Spyker, as cited by the FT, said it remained hopeful the rescue
plan would eventually go through but, in the meantime, it was
holding talks with potential Chinese partners and other investors
over additional funding.

With an annual production of up to 126,000 cars, Saab's current
models include the 9-3 (available as a convertible or sport
sedan), the luxury 9-5 sedan (also available in a sport wagon),
and the seven-passenger 9-7X SUV.  As it prepared to separate from
General Motors, Saab filed for bankruptcy protection in February
2009.  A year later, in February 2010, GM sold Saab to Dutch
sports car maker Spyker Cars for about US$400 million in cash and

U N I T E D   K I N G D O M

AMDEGA: Goes Into Administration, May Cut 190 Jobs
Karen Dent at The Journal reports that Amdega has gone into
administration with the potential loss of 190 jobs.

The administration of the Darlington Company, which has been in
business for over 130 years, was disclosed by its owners London-
based private equity firm, according to The Journal.  The report
relates that it is just nine months since the business was taken
over by Endless.

The Journal notes that at the time it said it was intending to
invest substantial sums in the business which at the time of the
purchase had annual revenues of over GBP20 million.

Amdega is a conservatory and greenhouse company.  It is based on
the town's Faverdale Industrial Estate.

CLACHNACUDDIN F.C.: Comes Out of Administration
The Press and Journal reports that Clachnacuddin Football Club
Chairman Brian Urquhart insists his club can look forward to a
bright future after coming out of administration.

Clach went into administration in October 2009 with debts
estimated at GBP250,000, Press and Journal recalls.

Following an agreement to sell the social club hall to Inverness
Bible Fellowship, the changing rooms and director's board room to
the Clach Supporters' Society and the car park to Highland
Council, Urquhart believes the Lilywhites can finally put 18
months of financial turmoil behind them, according to Press and

Clachnacuddin F.C. is a semi-professional senior football club
from the city of Inverness who currently play in Scotland's
Highland Football League.

GLOBAL CROSSING: Incurs GBP6.95-Mil. Net Loss in 2010
Global Crossing Limited announced fourth-quarter and full-year
2010 results for its subsidiary, Global Crossing (UK)
Telecommunications Limited.

Global Crossing (UK) reported net loss for the period of
GBP1.93 million on GBP82.80 million of revenue for the three
months ended Dec. 31, 2010, compared with a net loss for the
period of GBP1.56 million on GBP78.12 million of revenue for the
same period during the prior year.  The Company also reported a
net loss for the period of GBP6.95 million on GBP314.01 million of
revenue for the year ended Dec. 31, 2010, compared with net profit
for the period of GBP4.66 million on GBP308.86 million of revenue
during the prior year.

The Company's balance sheet at Dec. 31, 2010 showed GBP288.02
million in total assets, GBP508.38 million in total liabilities
and a GBP220.36 million in total deficit.

"GCUK reported solid results in 2010, with an increase of three
percent year over year in GCUK's 'Invest and Grow' revenue," said
John Legere, Global Crossing's chief executive officer.  "We
continue to position the business strategically for long-term
growth through investments in sales resources and enhanced
capabilities to deliver value-added IP, Ethernet, data center and
managed solutions."

                       About Global Crossing

Based in Hamilton, Bermuda, Global Crossing Limited (NASDAQ: GLBC)
-- is a global IP, Ethernet,
data center and video solutions provider with the world's first
integrated global IP-based network.

The Company's balance sheet at Dec. 31, 2010 showed US$2.31
billion in total assets, US$2.79 billion in total liabilities and
US$477 million in total stockholders' deficit.

Global Crossing Limited reported a consolidated net loss of
US$172 million on US$2.609 billion of consolidated revenue for the
twelve months ended Dec. 31, 2010, compared with a net loss of
US$141 million on US$2.159 billion of revenue during the prior

                           *     *     *

As reported by the Troubled Company Reporter on March 31, 2010,
Standard & Poor's Ratings Services raised all its ratings on
Global Crossing, including the corporate credit rating to 'B' from
'B-'.  The outlook is stable.  S&P assigned its 'CCC+' issue-level
rating and '6' recovery rating to Global Crossing's proposed $150
million of senior unsecured notes due 2019.  The '6' recovery
rating indicates S&P's expectation for negligible (0%-10%)
recovery in the event of a payment default.

GRAFTON SHOPPING: Miller Developments Acquires Center
Messenger reports that Grafton shopping centre is set for a multi-
million pound makeover, after being bought by Miller Developments.

Miller Developments has unveiled ambitious plans to revitalize the
centre, which went into administration in 2009 and has since been
run by administrators, according to Messenger.  The report relates
that Miller Developments plans a GBP10 million upgrade for the
centre -- and work should be underway within a couple of months.

Messenger notes that although the purchase price for the centre
has not been disclosed, it is believed to be significantly less
than the original GBP7 million asking price.

Grafton shopping centre is a run-down shopping mall in Altrincham.

MONDI FINANCE: S&P Assigns 'BB+' Rating to EUR1.5BB EMTN Program
Standard & Poor's Ratings Services said it assigned an issue
rating of 'BB+' to the EUR1.5 billion Euro Medium-Term Note (EMTN)
program issued by Mondi Finance PLC, a fully owned finance
subsidiary of South Africa-based paper and packaging producer
Mondi Group (Mondi).

"At the same time, we revised the recovery rating to '3' from '4'
on the EUR500 million senior unsecured notes due 2017 issued by
Mondi Finance under the EUR1.5 billion EMTN program.  The recovery
rating of '3' indicates our expectation of meaningful (50%-70%)
recovery in the event of a payment default.  The issue rating on
the senior unsecured notes is unchanged at 'BB+', in line with the
corporate credit rating on Mondi," S&P related.

The revision of the recovery rating is mainly underpinned by
Mondi's recent announcements of a demerger of Mondi Packaging
South Africa (MPSA) and the refinancing of a previous EUR1.55
billion revolving credit facility (RCF) with a new EUR750 million
RCF (not rated).

                        Recovery Analysis

"The issue and recovery ratings on the unsecured notes are
underpinned by our view of Mondi's good asset valuation and some
documentary protection against the raising of new secured debt.
However, the recovery rating is constrained by the unsecured
status of the notes, the material amount of debt ranking prior to
them, the lack of documentary protection against the future issue
of additional unsecured debt, and exposure to several insolvency
regimes," S&P noted.

S&P continued, "The issue and recovery ratings on the unsecured
notes are supported by our valuation of Mondi as a going concern,
which reflects our view of its well-invested asset base and
leading position in emerging markets.  We estimate that Mondi's
stressed enterprise value at our simulated point of default in
2014 will be about EUR2.02 billion (after the demerger of MPSA).
This estimate assumes distressed operations stemming from reduced
demand, pressure on selling prices, higher input costs, and
adverse exchange rates."

The recovery and issue ratings are constrained by the unsecured
nature of the notes and by our view that the documentation is weak
(no limitations on indebtedness, dividends, or mergers and
acquisitions), providing only limited protection for the
noteholders.  "In addition, we believe that Mondi's widespread
operations and potential exposure to various insolvency regimes
post default could delay or lower the ultimate recovery
prospects," S&P stated.

"We assume in our analysis that Mondi's capital structure at
default will be similar to its current structure. In particular,
we assume that the new EUR750 million unsecured RCF maturing 2016
(which partly refinanced the previous EUR1.55 billion RCF) will
rank pari passu with the unsecured notes.  The new RCF was
borrowed by Mondi Finance, Mondi Ltd., and Mondi PLC," said S&P.

"However, the recovery prospects for the unsecured noteholders
would, in our opinion, be materially lower if there were any
significant change to the group's capital structure.  Such changes
could encompass, in particular, the lenders of the RCF obtaining
priority over the unsecured noteholders on the path to default by
virtue of a breach in the group's financial maintenance
covenants," S&P related.

Ratings List

New Rating

Mondi Finance PLC
EUR1.5 bil. EMTN program
Senior Unsecured Debt                  BB+

Ratings Affirmed, Revised
                                        To                From
Mondi Finance PLC
Senior Unsecured Debt                  BB+
  Recovery Rating                       3                 4

RTC Group: Narrows Pre-Tax Loss by 75% to GBP0.45 Million
--------------------------------------------------------- reports that recruitment and conferencing
services provider RTC Group plc narrowed its pre-tax loss by 75%
to GBP0.45 million from GBP1.83 million in the year to December.
Revenue rose to GBP20.0 million from GBP16.5 million, according to notes that loss per share was 10.62p, down
from the previous 25.99p. No dividend was declared.

The company said its Recruitment division made an operating profit
of GBP0.21 million, turning round the previous loss of GBP0.46
million, says.

The report relates that conferencing made an operating loss of
GBP0.28 million, previously GBP0.37 million.

The Catalis training business was placed into administration in
June and treated as discontinued, notes.

VON ESSEN: Thornbury Castle Future In Doubt
Liza-Jane Gillespie at Gazette reports that Thornbury Castle's
future is in doubt after its owners have gone into administration.

As reported in the Troubled Company Reporter-Europe on April 25,
2011, BBC News said the holding company of the von Essen hotel
chain has appointed accountants Ernst & Young as administrators. related that the von Essen is reported to have debts of
more than GBP25 million. noted that while
administrators have been appointed and the portfolio of hotels are
expected to be sold-off either as a group or as individual
properties, the hotels are all expected to continue to trade as
usual.  "It is business as normal for the hotels and customers of
von Essen Hotels can continue to enjoy their stay," The Northern
Echo quoted Angela Swarbrick, joint administrator, as saying.

von Essen hotel chain owns 28 luxury hotels in the UK and France.

* UK: NHS Reforms Need to Include Plan for Company Failures
S.A. Mathieson at Guardian Professional reports that the
Parliament's Public Accounts Committee said Health secretary
Andrew Lansley's National Health Service reforms need to include
ways to cope with the failure of health service organizations.

According to Guardian Professional, in an unusual report,
reviewing a government plan while the legislation is still before
Parliament, the committee said that the reorganization could
complement the aim of saving GBP20 billion from the NHS's annual

Guardian Professional relates that Labour MP and committee chair
Margaret Hodge said the committee was concerned that the
Department of Health "has not yet developed a high quality risk
management protocol for either the commissioning or providing
bodies," particularly as some trusts will have to work hard to
achieve foundation status -- as they are required to do under the
reforms -- and some GP practices have some way to go to become
commissioning consortia.

"The department must have effective systems in place to deal with
failure so that whatever happens, the interests of both patients
and taxpayers are protected," Guardian Professional quotes Ms.
Hodge as saying.  But the report said that the department has not
yet planned a framework to deal with the failure of either
provider trusts or GP commissioning consortia, Guardian
Professional notes.

The department told the committee that failure of a hospital
foundation trust, currently triggered by the secretary of state,
could in future be triggered by the regulator Monitor, Guardian
Professional recounts.  A special administrator would be appointed
to preserve 'designated' services, Guardian Professional says.
According to Guardian Professional, the report adds that the
details of this special administration regime "had yet to be
worked through, including the question of whether the cost of
future PFI projects might be driven up because of the increased
risk arising from the possibility of a trust going into

* UK: Company Voluntary Arrangement to Increase in Popularity
Rachael Singh at Accountancy Age reports that insolvency
practitioners will increasingly need to draw on their imaginative
side to rescue businesses.

According to Accountancy Age, government plans to change how the
popular pre-pack administration process operates are likely to
make other processes more desirable.

Accountancy Age says the company voluntary arrangement (CVA) is
the most likely to increase in popularity if pre-packs disappear.

The problem with CVAs is that they hand more power to creditors
than any other process, Accountancy Age stats.  IPs will have to
be creative if they want to gain creditor approval, according to
Accountancy Age.

CVAs usually involve a repayment plan for a portion of debt owed
to creditors -- including landlords and the taxman -- over a
period of time, while allowing the business to continue trading,
Accountancy Age discloses.  However, a CVA must be voted for by
75% or more, by value, of creditors to be approved, Accountancy
Age notes.

The growing interest in CVAs stems from a variety of reasons,
including government proposals to change pre-packs which could see
them slowed down to pointlessness, Accountancy Age discloses.  The
suggestions include allowing creditors three days to oppose the
sale of a business in a pre-pack, compared to deals going through
in just hours, Accountancy Age says.

Also, recent changes through case law to rent and pension
provisions have seen the cost of trading a business in
administration spiral upwards, Accountancy Age notes.  This leaves
the insolvency practitioner's kit short of a few tools to help
them continue to trade a viable business, Accountancy Age states.

Unlike other insolvency processes CVAs have remained largely
untouched by the court system and government red tape, Accountancy
Age discloses.  No two proposals are alike and practitioners can
build and negotiate contracts to keep businesses alive.

Accountancy Age relates that Keith Steven, MD of insolvency and
turnaround business KSA Group, said CVA proposals that include the
same management, same structure and basically the same number of
sites will not gain the crucially important creditor approval.
Mr. Steven, as cited by Accountancy Age, said that the CVA needs
to be more "fluid" than other types of insolvency to appease their


* EUROPE: Heavily Indebted Nations May Restructure Debt
Keith Jenkins and Emma Charlton at Bloomberg News reports that
yields on government securities from Greece, Ireland and Portugal
reached records amid speculation the heavily indebted nations
won't be able to avoid restructuring.

According to Bloomberg, Ireland's two-year yield reached a euro-
era record 12.08% after the European Union said the nation's debt
burden surged the most in the currency area last year.  Greek
two-year yields have climbed almost 870 basis points this month,
reaching 24.45% April 26 as investors priced in losses, or so-
called haircuts, they may incur in the event of a restructuring,
Bloomberg discloses.

Portugal's two-year note yields touched a euro-era record of
11.74%, up from 8.78% at the end of last month, Bloomberg notes.
The 10-year yield reached a record 9.61% on April 27, compared
with 8.41% on March 31, Bloomberg states.

* BOOK REVIEW: The Executive Guide to Corporate Bankruptcy
Authors: Thomas J. Salerno; Craig D. Hansen; Jordan A. Kroop
Publisher: Beard Books
Hardcover: 728 pages
List Price: US$174.95

The newly revised edition of The Executive Guide To Corporate
Bankruptcy is perfectly timed.  As the global economy continues to
deteriorate, more and more companies are sinking into insolvency
with executives at their helm who need a crash course in
bankruptcy realities.  This excellent book will quickly get both
the seasoned executive and the uninitiated lawyer up to speed on
the bankruptcy process.

Salerno, Kroop and Hansen understand that the reorganization
process can be intimidating, puzzling, and generally unpleasant.
They penetrate the opaque gloom that some lawyers tend to
perpetuate.  Each chapter of this book addresses a different
aspect of the reorganization process, beginning with an overview
of the origins and purpose of US bankruptcy laws and ending with a
debunking of common myths about reorganization.  In between, they
discuss each chapter of the bankruptcy code; discussing the gamut
from liquidations through Chapter 11 sales and full-blown
reorganizations.  The authors' ability to distill the bankruptcy
code's complex language into comprehensible and manageable blocks
of information makes the book extremely readable.

The Executive Guide is full of pragmatic advice.  After laying out
the essential elements and key players in the restructuring
process, the authors get down to the nitty gritty of navigating a
distressed company through reorganization.  They realistically
assess the challenges that an executive should expect to face in
Chapter 11.  They discuss how to assuage and balance the concerns
of employees and key vendors, address the inevitable creditor
dissatisfaction with executive compensation, deal with members of
their professional team and work effectively as an executive whose
actions will be constantly scrutinized and second-guessed.  The
authors also provide the cautionary note that "executives
preparing to embark on a reorganization are usually too
preoccupied with business emergencies to think about the personal
toll that the process will exact."

One common flaw in books that try to be accessible while dealing
with technical topics is that they fall short in providing the
reader with a substantive understanding of the subject matter.
The Executive Guide to Corporate Bankruptcy avoids this pitfall.
The book's fourth and fifth chapters provide in-depth analysis of
the strategic decisions and steps that should be taken during the
restructuring process.  The authors explain the importance that
venue can have a case, the intricacies of first day motions and
how to prepare for confirmation.  There is a detailed discussion
of the sale of assets during the course of a Chapter 11
restructuring and the importance of making sure that major
constituencies are a part of the decision-making process.  They
also walk the reader through the specifics of a plan of a
reorganization, explaining the dynamics of the negotiation
process, especially how to understand and appreciate the needs of
your constituents and how to get a plan confirmed.

The icing on the cake for this book is the excellent appendix.
The final section of the book includes a user-friendly glossary of
commonly used bankruptcy terms and a reorganization timeline.  It
also includes sample documents such as debtor-in-possession (DIP)
financing agreements, operating reports, first day motions and
orders, management severance agreements, and more.  The summary of
management incentive stock plans implemented in recent
restructuring transactions is particularly informative.

This is a terrific book.  While geared to the non-lawyer
executive, it will also be a useful resource for any lawyer who
wants to gain practical familiarity with the bankruptcy process.
This should be a best seller in today's environment, though it may
need to be delivered to most executives in a brown paper wrapper.


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 * * *