TCREUR_Public/110504.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, May 4, 2011, Vol. 12, No. 87

                            Headlines



F R A N C E

MSX INTERNATIONAL: Moody's Lowers Corporate Family Rating to Caa2


G R E E C E

* GREECE: Seeks More Time to Repay Bailout Loans


I C E L A N D

LANDSBANKI ISLANDS: Wants EFTA to Not Pursue Depositor Claims Suit


I R E L A N D

CASTLETHORN CONSTRUCTION: Survival Dependent on Lender Support
QUINN GROUP: Sean Quinn's Family Mulls Legal Action vs. Anglo
* IRELAND: Company Insolvencies Up 3% in First Four Months
* IRELAND: Number of Insolvent Firms Rise in April
* IRELAND: Has Better Chances of Avoiding Default, Economist Says


I T A L Y

SENSUS USA: Moody's Cuts 2nd Lien Debt Rating to 'Caa1'


N E T H E R L A N D S

PROSPERO CLO: Moody's Confirms Rating on Class D Notes at 'Caa1'


R U S S I A

* BASHKORTOSTAN REPUBLIC: S&P Affirms Issuer Credit Rating at 'BB'
* VOLOGDA OBLAST: S&P Cuts Long-Term Issuer Credit Rating to 'B+'


S W E D E N

SAAB AUTOMOBILE: Enters Into Strategic Partnership with Hawtai
SAAB AUTOMOBILE: Secures EUR30 Million Loan From Gemini


U N I T E D   K I N G D O M

ARCHERS BREWERY: To Undergo GBP1.5 Million Transformation
CATALYST SECURITIES: Goes Into Administration
PUNCH TAVERNS: Gauges Equity Research Coverage After Demerger
SPORT MEDIA: Sunday Sport Moves to New House
* Small Firms to Fall Into Insolvency on Money Owed to Taxman

* Struggling Firms Walking Away From Debt


                            *********


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F R A N C E
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MSX INTERNATIONAL: Moody's Lowers Corporate Family Rating to Caa2
-----------------------------------------------------------------
Moody's Investors Service downgraded MSX International, Inc.'s
corporate family rating to Caa2 from Caa1, the probability of
default rating to Caa2 from Caa1, and the rating on the $205
million 12.5% senior secured notes due 2012 to Caa1 from B3.  The
ratings outlook remains negative.

These ratings were downgraded:

   MSX International, Inc.

   -- Corporate family rating to Caa2 from Caa1;

   -- Probability of default rating to Caa2 from Caa1.

   MSX International Business Services France, SAS, MSX
   International UK PLC, and MSX International GmbH

   -- $205 million 12.5% senior secured notes due 2012 to Caa1
      (LGD3, 33%) from B3 (LGD3, 43%).

RATINGS RATIONALE

The downgrade and negative outlook reflect maturities becoming
near-term with the US$205 million senior secured notes due
April 1, 2012 and the US$30 million senior credit facility due
January 2, 2012 (unrated).  While MSX's operating performance has
improved in recent periods, Moody's is concerned that these
improvements may not be sufficient to accommodate a refinancing of
its capital structure, thus heightening the risk of a potential
debt restructuring.  Moody's views liquidity as weak given the
aforementioned debt maturities, although likely sufficient to meet
short-term operational needs.

MSX's Caa2 CFR reflects significant refinancing risk, high
leverage, and weak interest coverage.  However, the CFR derives
limited support from the company's improved operating performance
supported by a recovery in the global automotive industry, long-
standing customer relationships, a highly variable cost structure
(as evidenced by the maintenance of margins through the downturn),
and good geographic diversification.

A distressed exchange or payment default could result in a ratings
downgrade.

The ratings could be upgraded if MSX timely refinances near-term
debt maturities.

The principal methodology used in this rating was Global Business
& Consumer Service Industry Rating Methodology published in
October 2010.

Headquartered in Warren, Michigan, MSX International, Inc. is a
global provider of outsourced integrated business solutions,
focused primarily on warranty management, dealer process
improvement, and human capital solutions, to automobile and truck
OEMs, dealers, suppliers, and ancillary service providers in
Europe, the Americas and Asia-Pacific.


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G R E E C E
===========


* GREECE: Seeks More Time to Repay Bailout Loans
------------------------------------------------
Lefteris Papadimas and Ingrid Melander at Reuters report that
Greece hopes to get more time to repay bailout loans, its finance
minister said on Monday, a day before EU and IMF inspectors start
a visit to assess if new austerity plans are tough enough to tidy
up its public finances.

Struggling with a deep recession, weak revenues and growing market
expectations that a debt restructuring is inevitable, the fiscally
crippled country faces a gruelling inspection a year after its
eurozone partners and the IMF saved it from bankruptcy with a
EUR110 billion bailout loan, Reuters discloses.

According to Reuters, Finance Minister George Papaconstantinou,
who on Monday unveiled new plans to fight rampant tax evasion -- a
priority for its international lenders -- became the first Greek
official to float the idea of a further easing of conditions on
the bailout.

Also setting a precedent in the debate on how to resolve Greece's
fiscal dilemma was European central banker Nout Wellink, Reuters
discloses.  Reuters relates that in comments to students in the
Netherlands, he became the first member of the ECB's governing
council to point to a possible rescheduling of repayments on the
country's debt.

Mr. Papaconstantinou, as cited by Reuters, said Greece would
welcome having more time to pay back its bailout funds, at a lower
interest rate, after the EU already sweetened the deal in March.

Reuters notes that analysts said a rescheduling of repayments,
even covering both the EU/IMF bailout monies and Greece's
sovereign debt, would not be enough to avoid a broader
restructuring.


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


LANDSBANKI ISLANDS: Wants EFTA to Not Pursue Depositor Claims Suit
------------------------------------------------------------------
Omar R. Valdimarsson at Bloomberg News, citing a letter signed by
Economy Minister Arni Pall Arnason and released on Monday in
Reykjavik, reports that Iceland's government is urging the
European Free Trade Association's Surveillance Authority not to
pursue any legal action against the island and it expects the
estate of Landsbanki Islands hf will be enough to cover all
depositor claims.

As reported by the Troubled Company Reporter-Europe on May 2,
2011, Iceland Review Online said Reykjavik District Court ruled on
April 27 that the Icesave deposits are priority claims to
Landsbanki's bankruptcy estate  in a case which general claimants
filed against the bank's winding-up committee.

                    About Landsbanki Islands

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

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


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


CASTLETHORN CONSTRUCTION: Survival Dependent on Lender Support
--------------------------------------------------------------
The Irish Times reports that auditors to Castlethorn Construction
warned that the company was relying on National Asset Management
Agency and its bankers to continue as a going concern.

The Irish Times relates that documents recently made available by
the Companies' Registration Office show that in their report on
2009 accounts, Castlethorn Construction's auditors, accountancy
firm, BDO, said the company was in ongoing talks with its lenders,
including NAMA, regarding its debts.

According to The Irish Times, the report states that "the group's
ability to continue as a going concern is dependent on the
continued support of its lenders."

Castlehorn's bank debts were amongst the first tranche to go into
NAMA, The Irish Times notes.

It is likely that the group is working on the details of its
business plan with the State agency, The Irish Times says.
Castlehorn's lenders included Anglo Irish Bank and AIB, two of the
five institutions taking part in the NAMA process, The Irish Times
discloses.

Castlethorn Construction, controlled by Joe O'Reilly, was the
developer of Dundrum Town Centre in Dublin, which is one of the
biggest shopping centers in the Republic, and one of the
developers of Adamstown, the new town to the west of Dublin.


QUINN GROUP: Sean Quinn's Family Mulls Legal Action vs. Anglo
-------------------------------------------------------------
Laura Noonan at Irish Independent reports that the battle between
Anglo Irish Bank and Sean Quinn's family is likely to end up in
the Four Courts before the end of the week as both sides consider
imminent legal action.

Irish Independent's sources on Sunday night confirmed reports that
Mr. Quinn's five children, who own the Quinn Group, may file suit
against Anglo within days over the manner in which the group was
seized.

The bank is also mulling legal action to compel Mr. Quinn to
disclose details of his assets and liabilities and may apply for a
court order later in the week, Irish Independent discloses.

The moves come a fortnight after Anglo installed a receiver over
the shares in the Quinn Group and seized control of the Quinn
family's hotel and property interests, Irish Independent notes.

According to Irish Independent, the bank and joint-bidder Liberty
Mutual are also taking over the Quinn family's insurance business,
which will be rebranded 'Liberty Direct.'

Anglo had been hoping to secure the Quinns' co-operation in
drawing up a plan to deal with the family's EUR2.8 billion debt to
the nationalized bank, Irish Independent says.  But a meeting
between Mr. Quinn and Anglo bosses last week is believed to have
ended without meaningful progress, according to Irish Independent.

The Quinn children, who are believed to owe the bank more than
EUR500 million stemming from their purchase of 15% of Anglo's
shares, are to seek damages for their recent loss of the Quinn
Group, Irish Independent states.

The group was seized because it had been used as security when the
children acquired their stake in Anglo in 2008, Irish Independent
discloses.

Mr. Quinn, who owes the bank more than EUR2 billion, will not be
party to that action, but has not ruled out taking a separate
action of his own, it is understood, Irish Independent notes.

The Quinns are considering an appeal to the sale of Quinn
Insurance Limited (QIL) and have gotten legal opinion claiming the
decision to put QIL into administration was not valid, Irish
Independent says.

Quinn Group ROI Ltd. controls its cement, building materials,
glass and other manufacturing businesses in Ireland and Britain
through its ownership of Quinn Group, an operating entity
registered in Northern Ireland.


* IRELAND: Company Insolvencies Up 3% in First Four Months
----------------------------------------------------------
Geoff Percival at Irish Examiner reports that that an average of
33 Irish companies per week went bust between January and the end
of April this year.

According to Irish Examiner, the new data from
InsolvencyJournal.ie measured 162 insolvency appointments for
April alone; with the total for the first four months of the year
amounting to 558, 3% up on the same period last year.  There was
also a 15% year-on-year increase in the number of firms going into
receivership during the period, Irish Examiner discloses.

"Increased levels of enforcement action by NAMA and the banks,
combined with continued weak consumer sentiment in the retail
sector, suggests that there will be no reduction on the 2010 level
of insolvencies," Irish Examiner quotes Ken Fennell of leading
corporate recovery agency, Kavanagh Fennell, which publishes the
Insolvency Journal, as saying.

Last year saw more than 1,500 corporate insolvency cases, Irish
Examiner recounts.

Irish Examiner notes that while Mr. Fennell said that the figures
for the first four months of 2011 are "very much in line with
expectations", he added that growing levels of business failure in
the retail and services sectors (unsurprisingly, the construction
sector still contains most instances of companies going out of
business) is becoming a real concern.

"The continued growth in retail and service insolvency
appointments is worrying.

"These sectors are highly dependent on consumer sentiment and
increasing rates of business failure reflect a lack of confidence
in the Irish economy.  Continued downward price pressure and weak
levels of demand suggest this trend is likely to continue,"
Mr. Fennell, as cited by Irish Examiner, said.

April, alone, saw a total of 31 firms in the service industry face
insolvency, with 22 in the retail sector, Irish Examiner states.
The wholesale sector has also witnessed a significant increase in
insolvencies this year, with 32 firms affected to date, compared
to 37 for all of 2010, Irish Examiner relates.

Dublin recorded the highest number of corporate failures during
the first four months of the year, with 200 insolvencies in the
capital, according to Irish Examiner.

Irish Examiner relates that Kavanagh Fennell has also said the
trend of high-profile NAMA appointments over large developers,
seen in April, is likely to continue.


* IRELAND: Number of Insolvent Firms Rise in April
--------------------------------------------------
The Irish Times, citing new data from Vision-net.ie, reports that
an average of 10 Irish companies per day were declared insolvent
in April this year.

According to the report, Vision-net data shows that the numbers of
businesses closing down also increased, as did the number of
companies that had a receiver appointed.

The Irish Times relates that some 148 companies began to wind up,
with the retail, hospitability and professional services sectors
affected particularly badly.  The majority of these businesses are
likely to be deemed insolvent, according to Vision-net, and
creditors' meetings have been instigated.

A total of 62 firms had receivers appointed during the month,
double that of the same month in 2010, the report adds.

Vision-net provides information on companies in Ireland and the
UK.


* IRELAND: Has Better Chances of Avoiding Default, Economist Says
-----------------------------------------------------------------
Dan O'Brien at The Irish Times reports that influential economist
Daniel Gros on Friday said that Ireland had a better chance of
avoiding default than other bailed-out euro countries.

The Brussels-based economist said he estimated the cost of banking
losses to reach 52% of gross domestic product, equivalent to
approximately EUR80 billion, The Irish Times relates.

According to The Irish Times, Mr. Gros called the property boom a
"super-bubble."  Despite this, Ireland is in a better position
than Greece, Portugal and Spain, he said, The Irish Times relates.

Mr. Gros added that Ireland can avoid default because savings were
higher than the Mediterranean states, The Irish Times notes.  As a
result, net indebtedness of Irish residents to the rest of the
world was comparatively low, although some attendees at the
presentation questioned the reliability of Mr. Gros's figures, The
Irish Times discloses.

Mr. Gros also discussed the high proportion of wealth held by
Irish residents abroad, which largely offset the State's heavy
foreign indebtedness, The Irish Times cites.  Unlike other bailed-
out states, Ireland can meet its public debt obligations by taxing
the foreign assets of residents, The Irish Times states.


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I T A L Y
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SENSUS USA: Moody's Cuts 2nd Lien Debt Rating to 'Caa1'
-------------------------------------------------------
Moody's Investors Service lowered the second lien senior secured
debt rating of Sensus USA Inc. to Caa1 from B3 and affirmed all
other ratings of Sensus and its subsidiary, Sensus Metering
Systems (Luxco 2) S.a.r.l., including the B2 Corporate Family
rating, B2 Probability of Default rating and Ba3 first lien senior
secured rating.  The ratings outlook for both companies remains
stable.

The rating action is driven by a change to the company's planned
debt offering, which will result in an incremental US$50 million
of debt added to the first lien senior secured term loan (to
US$425 million from US$375 million) with a similar reduction to
the second lien senior secured term loan (to US$150 million from
US$200 million).  The first lien senior secured revolver will
remain at US$100 million.  While overall debt levels do not
change, the increase in first lien debt reduces the coverage
available to second lien debt holders, resulting in the one notch
downgrade to the second lien instrument rating.

RATINGS RATIONALE

Sensus' B2 corporate family rating is constrained by its modest
scale, significant financial leverage and vulnerability to the
spending cycles of utilities for their metering replacement and
upgrade requirements.  Sensus, however, benefits from its leading
market position for water meters globally for which customer
concentration is limited and spending has proven relatively
resilient despite funding constraints from the largely municipal
government customer base.  As well, Sensus has demonstrated strong
momentum in the deployment of Advanced Metering Infrastructure
solutions (smart meters) currently being adopted, primarily by
electric utilities in North America.  Notably, Sensus is a
relatively new entrant to this market but has taken meaningful
market share.  Looking forward, the rating reflects our view that
the pace of new AMI awards may slow as benefits from stimulus
initiatives wane while competitive pressures and rising input
costs may weigh on margins.  Nonetheless, Sensus' order backlog
has been rising and we expect modest earnings growth and free cash
flow applied to debt reduction should reduce leverage towards 5.5x
over the next 12-18 months.

Upward rating action could develop should Sensus maintain an
adequate liquidity profile and improve adjusted leverage below 5x
and free cash flow-to-debt above 5%. Downward rating action could
occur if Sensus' adjusted leverage were unlikely to fall below 6x
and its free cash flow remained negative through fiscal 2012.

The principal methodology used in rating Sensus was the Global
Manufacturing Industry Methodology, published December 2010.
Other methodologies used include Loss Given Default for
Speculative Grade Issuers in the US, Canada, and EMEA, published
June 2009.

Headquartered in Raleigh, North Carolina, Sensus USA Inc. is a
leading provider of metering and related communication systems to
electric, gas and water utilities globally.  Revenue for the last
twelve months ended December 31, 2010 was approximately US$865
million.


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


PROSPERO CLO: Moody's Confirms Rating on Class D Notes at 'Caa1'
----------------------------------------------------------------
Moody's Investors Service took these rating actions on notes
issued by Prospero CLO I B.V.

Issuer: Prospero CLO I B.V.

   -- US$15,300,000 Class A-2 Senior Secured Floating Rate Notes
      Due 2017, Upgraded to Aa2 (sf); previously on Dec 23, 2010
      A1 (sf) Placed Under Review for Possible Upgrade

   -- US$15,300,000 Class B Senior Secured Deferrable Interest
      Floating Rate Notes Due 2017, Upgraded to Baa1 (sf);
      previously on Dec 23, 2010 Baa3 (sf) Placed Under Review for
      Possible Upgrade

   -- US$15,300,000 Class C Senior Secured Deferrable Interest
      Floating Rate Notes Due 2017, Confirmed at Ba3 (sf);
      previously on Dec 23, 2010 Ba3 (sf) Placed Under Review for
      Possible Upgrade

   -- US$7,700,000 Class D Senior Secured Deferrable Interest
      Floating Rate Notes Due 2017, Confirmed at Caa1 (sf);
      previously on Dec 23, 2010 Caa1 (sf) Placed Under Review for
      Possible Upgrade

RATINGS RATIONALE

Prospero CLO I B.V, issued in March 2005, is a multicurrency
managed cash leveraged loan collateralized loan obligation with
exposure to predominantly American and European senior secured
loans (90.7%), as well as 3.4% mezzanine and second lien loan
exposure.  65% loans backing Prospero CLO I were issued by
obligors incorporated in the USA, with the remainder loans being
issued by European entities.

The asset pool comprises approximately EUR242 million of
collateral assets which are managed by Alcentra.  These assets are
denominated in US$, EUR and GBP and support liabilities
denominated in the same currencies with the aim of matching the
liabilities and assets in each currency ("natural hedge").  The
reinvestment period of Prospero CLO I B.V. ended in March 2010.
Since then, the asset pool has amortized and the liabilities have
delevered.  The principal amounts of the class A1 notes have
decreased by 20% since closing.

The upgrade of classes A2 and B notes are a result primarily of
the increase in the overcollateralization (OC) cushion and the
improvement of the portfolio credit quality since the last rating
action.  The following OC ratios were reported in the March 2011
investment adviser's report: 127% for class A (vs. 118% in
December 2009), 118% for class B (vs. 111%), 109% for class C (vs.
104%) and 106% for class D (vs. 102%).  Currently, all the OC
tests of Prospero CLO I are in compliance.  The credit quality of
the portfolio has improved, which resulted in a decrease of the
reported pool WARF (2489 vs. 2749 previously).  The proportion of
obligors rated Caa1 and below as computed by Moody's has also
decreased from 14% to 9% over the same period.  The diversity
score reported by the trustee has decreased from 68 in December
2009 to 52 in March 2011.

The ratings of classes C and D were confirmed because these
tranches are more sensitive to the negative impact of currency
risk than to the improvement of the portfolio credit quality and
transaction OC levels.  Based on the latest reported data,
liabilities denominated in euro exceeded the euro assets by 3%.
Moody's notes that this currency mismatch is detrimental to the
junior rated classes of notes whose OC cushion is partially eroded
by this foreign exchange risk.

In the base case, Moody's analyzed the underlying collateral pool
with an adjusted weighted average rating factor of 3316 (vs. 3862
in December 2009), a diversity score of 46 (vs 61 in December
2009), and a weighted-average recovery rate of 65.5%.

Moody's also ran sensitivity analyses on key parameters for the
rated notes.  For instance, modelling the portfolio using a
weighted average life (WAL) greater by one year compared to the
current WAL to capture the potential impact of asset maturity
extensions had an impact of about 1 notch on the model output
across the capital structure.  Moody's also considered a decrease
in the default probability stress from 30% to 15% and noted that
model output will not deviate from base case results by more than
1 notch on all liability tranches.

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, 2) the large
concentration of speculative-grade debt maturing between 2012 and
2014 which may create challenges for issuers to refinance and 3)
currency fluctuations which may force conversion at unfavorable FX
rates should a currency mismatch occur.  CDO notes' performance
may also be impacted by 1) the manager's investment strategy and
behavior and 2) divergence in legal interpretation of CLO
documentation by different transactional parties due to embedded
ambiguities.

The principal methodology used in these ratings was "Moody's
Approach to Rating Collateralized Loan Obligations" published in
August 2009.  Under this methodology, Moody's used its Binomial
Expansion Technique, whereby the pool is represented by
independent identical assets, the number of which is 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.

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 amount,
weighted average rating factor, diversity score, and weighted
average recovery rate, may be different from the trustee's
reported numbers.

Moody's also notes that around 28% of the collateral pool consists
of debt obligations whose credit quality has been assessed through
Moody's credit estimates.

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

In addition to the quantitative factors that are explicitly
modelled, qualitative factors are part of the rating committee
considerations.  These qualitative factors include the structural
protections in each transaction, the recent deal performance in
the current market environment, the legal environment, specific
documentation features, the collateral manager's track record, and
the potential for selection bias in the portfolio.  All
information available to rating committees, including
macroeconomic forecasts, input from other Moody's analytical
groups, market factors, and judgments regarding the nature and
severity of credit stress on the transactions, may influence the
final rating decision.


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R U S S I A
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* BASHKORTOSTAN REPUBLIC: S&P Affirms Issuer Credit Rating at 'BB'
------------------------------------------------------------------
Standard & Poor's Ratings Services had revised its outlook on the
Russian Republic of Bashkortostan to positive from stable.  "At
the same time, we affirmed our 'BB+' long-term issuer credit
rating on Bashkortostan," S&P stated.

"We revised the outlook to positive because of our assumption that
Bashkortostan will continue its prudent financial and debt
policies, and enjoy economic and budget revenue growth.  This will
in turn enable it to preserve a large proportion of its currently
high cash reserves," S&P related.

The rating continues to be constrained by the republic's low
budget predictability and limited flexibility, owing to federal
controls; the economy's concentration in the oil-processing
industry; long-term expenditure pressures; and low wealth in an
international context.  "In our view, Bashkortostan's low debt,
strong liquidity, and prudent financial policies mitigate these
constraints," S&P stated.

"The positive outlook reflects our upside-case scenario. Under
this scenario, Bashkortostan's continued prudent financial
management would enable it to better contain expenditure pressure
and consolidate its solid financial performance -- and hence
maintain higher cash reserves than currently envisaged in our base
case -- whilst keeping debt at a modest level," according to S&P.

"We could raise the rating if Bashkortostan institutionalizes its
reserve and liquidity policies, with medium-term visibility of
future reserves earmarked and sufficient to offset revenue
volatility risks and cover future debt service. Such a prospect
could take more than one year to materialize," S&P continued.

"We could revise the outlook to stable if Bashkortostan implements
a more aggressive financial policy that leads to a marked
deterioration in financial performance compared with 2009-2010 and
results in rapid depletion of cash reserves," S&P added.


* VOLOGDA OBLAST: S&P Cuts Long-Term Issuer Credit Rating to 'B+'
-----------------------------------------------------------------
Standard & Poor's Rating Services had lowered its long-term issuer
credit and Russian national scale ratings on Russian Vologda
Oblast to 'B+/ruA+' from 'BB-/ruAA-'.  The outlook is stable.

"The downgrade reflects our view of Vologda Oblast's weak
budgetary performance and growing refinancing risks," S&P said.

The ratings are constrained by Vologda Oblast's revenue volatility
stemming from high concentration in the steel-making industry, low
revenue and spending flexibility, and weak budgetary performance
that has resulted in debt accumulation and growing debt service.

The ratings are supported by Vologda Oblast's so far moderate debt
burden by international standards and modest contingent
liabilities.

"The stable outlook reflects our view that rising spending
pressures on Vologda Oblast are likely to be counterbalanced by a
moderate recovery of operating revenues and continuation of
federal support.  These should enable Vologda Oblast to improve
its budgetary performance in the medium term.  The outlook also
incorporates the reduction of peak debt service in 2011-2012 due
to management's efforts to improve the oblast's debt profile," S&P
noted.

S&P continued, "Our downside scenario implies that market
sentiments or the lack of willingness on management's part would
prevent Vologda from extending its debt maturities, leading to
stronger liquidity and refinancing risks.  Vologda Oblast's
inability to implement budget consolidation measures, leading to
the expansion of tax-supported debt above levels we currently
expect, might also result in negative rating actions."

"Our upside scenario implies the improvement of Vologda Oblast's
debt profile, reflected in a significant reduction of debt service
and the accumulation of cash reserves in 2011 and 2012.  The
oblast's ability to deliver structurally stronger budgetary
performance would also result in positive rating actions," S&P
added.


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S W E D E N
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SAAB AUTOMOBILE: Enters Into Strategic Partnership with Hawtai
--------------------------------------------------------------
Andrew Ward at The Financial Times report that Saab Automobile has
agreed a strategic partnership with Hawtai Motor of China in the
latest attempt to keep the cash-strapped Swedish carmaker afloat.

Production has been halted at Saab for the past three weeks after
some suppliers had stopped deliveries because of unpaid bills, the
FT relates.

The company has been in negotiations with several potential
Chinese partners to help solve its liquidity crisis and said on
Monday it had struck a deal with Hawtai, the FT discloses.

No further details were given about the nature of the partnership,
which was set to be unveiled at a signing ceremony in Beijing on
Tuesday, the FT notes.

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
stock.


SAAB AUTOMOBILE: Secures EUR30 Million Loan From Gemini
-------------------------------------------------------
BBC News reports that Saab Automobile plans to resume production
within a week after its parent company Spyker Cars secured a EUR30
million (US$45 million; GBP27 million) loan.

According to BBC, the short-term funding has come from the
investment fund Gemini.

Work at Saab's Trollhattan plant has been suspended since April 6
after suppliers refused to deliver parts, citing lack of payment,
BBC relates.

Saab, as cited by BBC, said it would now be able to restore
confidence, but added it still needs to secure longer-term
funding.

In addition to the six-month loan from Gemini, Spyker is seeking
to borrow a further EUR29.1 million from the European Investment
Bank.  The EIB gave Spyker a EUR400 million loan in 2010 to help
fund its purchase of Saab from General Motors of the US, BBC
recounts.

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
stock.


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


ARCHERS BREWERY: To Undergo GBP1.5 Million Transformation
---------------------------------------------------------
Ewan Turney at Morning Advertiser reports that former Archers
Brewery in Swindon is to undergo a GBP1.5 million transformation
and re-open as a gastro pub complete with microbrewery.

As reported in the Troubled Company Reporter-Europe on March 26,
2009, BBC News said that Archers has gone into administration
after being hit by a downturn in pub trade.  The report related
the company called in administrator Paul McConnell of insolvency
practitioners Monahans.

Anthony and Allyson Windle, who also run the Three Crowns in
nearby Brink-worth, acquired the premises in November last year,
according to Morning Advertiser.  The report relates that the
Windles now hope to re-open the premises, under the name the
Weighbridge Brewhouse, on Aug. 12.

Archers Brewery -- http://www.archersbrewery.co.uk/-- have been
hand crafting and brewing traditional, award winning ales for over
a quarter of a century.  Set in the Great Western Railway
locomotive works former weighhouse at Swindon, the brewery
underwent a massive two million pounds modernization program in
2001.


CATALYST SECURITIES: Goes Into Administration
---------------------------------------------
Bridging News discloses that the Manchester Evening News said that
Catalyst Securities has gone into administration.

Manchester Evening News reported that the company ceased trading
to new customers about two years ago and has since been winding
down its operations and collecting its loan book, according to
Bridging News.  The report, citing Manchester Evening News,
relates that all remaining loans are in default and the company
has been exercising its security to take possession of the
properties concerned.

Paul Dumbell and Brian Green, of KPMG, have been appointed joint
administrators and will attempt to sell the properties.

Manchester Evening News disclosed that Catalyst had one employee,
who has since been made redundant, Bridging News adds.

Catalyst Securities is a Bridging finance company.


PUNCH TAVERNS: Gauges Equity Research Coverage After Demerger
-------------------------------------------------------------
Rose Jacobs at The Financial Times reports that Punch Taverns is
sounding out equity analysts as to whether they will cover the
highly indebted tenanted pub company following its demerger from
the more promising managed pubs business this summer.

Brunswick, the group's public relations company, rang round the
sector's 20 or so equity analysts in April, the FT relates.  A
slight majority of those contacted by the FT said they would carry
out equity research coverage on both Spirit plc -- which will run
the managed pubs and which has been valued at between 45p and 100p
a share -- and Punch plc, which will hold more than 5,000 tenanted
pubs and is expected to trade as a penny stock.  Ian Dyson, Punch
Taverns' chief, will become chief executive of Spirit -- but
intends to sit on the board of Punch plc during the transition,
the FT notes.

Three analysts asked by the FT were undecided.  Five said they
would cover both businesses, the FT discloses.

According to the FT, Paul Hickman at Peel Hunt argued that because
there would probably be substantial trading in the shares after
the demerger, it would be unusual for many analysts to discontinue
their coverage.

Other analysts said the decision would be made during
conversations with bosses, the FT states.

John Beaumont, analyst with Matrix, did a sum-of-the-parts
analysis of the new Punch -- including GBP2.5 billion (US$4.1
billion) in debt, GBP120 million of cash and a stake in drinks
distributor Matthew Clarke, the FT relates.

"Until negotiations with bondholders have been successfully
completed -- which could take many months after demerger -- we
find it difficult to see why the market would give it a value of
much more than a few pennies," the FT quotes Mr. Beaumont as
saying.

Mr. Dyson has said the internal split at Punch should be nearly
complete by June, the FT recounts.  Decisions about external
advisers, including PR teams, bankers and solicitors, will not be
announced until after the demerger, the FT states.  If JPMorgan
and Citigroup, the joint brokers for Punch Taverns, were to stay
on as brokers for both Sprit and Punch, they would continue equity
research coverage, according to the FT.

Punch, the FT says, needs approval for the demerger by the UK
pensions regulator and Ambac, an insurance company backing bonds
issued by Punch and Spirit.

Punch Taverns plc is a United Kingdom-based pub company.  The
Company is engaged in the operation of public houses under either
the leased model or as directly managed by the Company.  The
Company operates in two business segments: punch partnerships, a
leased estate and punch pub company, a managed estate.  Punch
Partnerships is the Company's leased division, comprising 5,967
pubs nationwide.  Punch Pub Company is its managed division,
comprising 803 pubs nationwide.  The leased model involves the
granting of leases to tenants who operate the pub as their own
business, paying rent to the Company, purchasing beer and other
drinks from it and entering into profit sharing arrangements for
income from leisure machines.  Pubs that are directly managed
involve the employment of a manager to operate each managed pub
and the Company receives all revenues generated by the pub and is
responsible for costs.  On Feb. 10, 2010, the Company disposed of
Safe Jumper Limited.


SPORT MEDIA: Sunday Sport Moves to New House
--------------------------------------------
Manchester Evening News reports that Sunday Sport is to be
published from an office block in Manchester's Ardwick.

Landlord Anvic Developments said the soon-to-be relaunched paper
will be headquartered at its City View House, according to
Manchester Evening News.

As reported in the Troubled Company Reporter-Europe on April 27,
2011, The Press Association said Sunday Sport will return to
newsstands next month after former owner David Sullivan revealed
that he and former staff had set up a private joint venture to
save Sunday Sport publication and it will be relaunched on May 8.
The paper faced falling into the annals of tabloid obscurity after
its parent company Sport Media Group PLC (SMG) -- which also owned
the sister title Daily Sport -- went into administration earlier
this month, The Press Association related.  Daily Sport is still
in the hands of administrators.  SMG disclosed that Dermot Power
and Patrick Lannagan, business restructuring partners at BDO LLP,
were appointed joint administrators to Sport Media Group plc and
two of its wholly owned subsidiaries, Sport Newspapers Limited and
Moresport Limited, on April 4, 2011, by the Directors of the
Companies.  According to a separate TCREUR report on April 4,
2011, citing Reuters, SMG said it had ceased trading and would go
into administration because it was unable to pay its debts.

Sport Media Group is the publisher of the Daily Sport and Sunday
Sport newspapers.


* Small Firms to Fall Into Insolvency on Money Owed to Taxman
-------------------------------------------------------------
Helen Loveless at thisismoney.co.uk reports that small firms are
most likely to fall into insolvency because of money owed to the
taxman.

Business turnround specialist SFP said that nearly three out of
four cases it looks at cite Revenue & Customs as the largest
creditor when the firm went into administration, according to
thisismoney.co.uk.  The report relates that SFP warns that this is
likely to rise further as the Revenue cracks down on firms that
took advantage of its Time to Pay scheme to defer tax.

thisismoney.co.uk notes that The Mail has highlighted the
increasingly aggressive approach being taken by the taxman in his
attempts to get consumers and businesses to pay money owed.

"Time to Pay is the ticking time-bomb that no one wants to
mention.  But with Revenue & Customs now quite literally calling
in their debts, those companies that have failed to accrue for
those debts or who naively believe they will be given more time
are in for a rude awakening," thisismoney.co.uk quotes Simon
Plant, partner at SFP, based in Canary Wharf, east London, as
saying.

Mr. Plant said amounts owed to the taxman range from GBP125,000 to
nearly GBP500,000, thisismoney.co.uk discloses.

"These are quite extraordinary sums that seriously impact on cash
flow and not infrequently lead to a company's collapse without
professional help," Mr. Plant adds.


* Struggling Firms Walking Away From Debt
-----------------------------------------
Helen Loveless at thisismoney.co.uk reports that struggling small
businesses are simply 'shutting up shop' rather than declare
themselves bankrupt and face the high charges of insolvency.

Accountancy group PricewaterhouseCoopers said 3,657 companies
became insolvent in the first quarter of 2011, compared with 3,829
in the first quarter of 2010 -- a decrease of 4.5%, according to
thisismoney.co.uk.  The report relates that this would seem to be
good news, but expert Tracy Ewe said that the cost of insolvency,
which is a minimum of GBP5,000 and usually significantly more, is
deterring firms from seeking help or entering insolvency
proceedings.

Instead, small firms are increasingly just ceasing to trade,
thisismoney.co.uk notes.

And a lack of assets is leading to a fall in the number of
business owners or company directors buying the company back out
of administration, said Ms. Ewen, managing director of insolvency
practitioner IGF, in Tonbridge, Kent, thisismoney.co.uk discloses.
"In the last 12 months we have seen ten liquidations, 14
businesses just stopping trading and five going into
administration," she added.

"Firms should not walk away from their debts - this is very bad
news for creditors - and in many cases there may be the
opportunity to save the business if steps are taken early enough,"
thisismoney.co.uk quotes Ms. Ewen as saying.

The problems for small firms are compounded by the reluctance of
the banks to lend -- Bank of England figures showed that bank
lending to smaller firms fell 2% in Feb. -- while falling house
prices mean that business owners have less equity to offer as a
personal guarantee, thisismoney.co.uk says.

"Some businesses are waiting until a creditor winds them up or
until the Government shuts them down because they have failed to
file accounts for years.  This might not happen for four or five
years.  The concern I have is that the figures we see are in fact
masking a real problem," thisismoney.co.uk quotes Ms. Ewan as
saying.

Ms. Ewen urges firms to seek professional help before they get to
the stage of simply closing down, thisismoney.co.uk the report
adds.


                            *********

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

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

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

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


                            *********


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

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

Copyright 2011.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$625 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Christopher Beard at 240/629-3300.


                 * * * End of Transmission * * *