TCREUR_Public/110511.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 11, 2011, Vol. 12, No. 92

                            Headlines


C Z E C H   R E P U B L I C

SAZKA AS: Lottery License Temporarily Suspended


F R A N C E

EUROPCAR GROUPE: S&P Affirms 'B+' Long-Term Corp. Credit Rating
PAGESJAUNES FINANCE: Moody's Assigns 'B2' Corporate Family Rating
PAGESJAUNES: Fitch Assigns 'B+' Long-Term Issuer Default Rating


G E R M A N Y

EVONIK INDUSTRIES: S&P Raises Corporate Credit Rating From 'BB+'
STYROLUTION GROUP: S&P Assigns 'B+' Prelim. Corp. Credit Rating


I R E L A N D

BENGAL BRASSERIE: Nigel Rahman Declared Bankrupt Over Unpaid Bill
ELAN CORP: Sale of Drug Formulation Unit to Help Cut Debt
MCINERNEY GROUP: Rescue Offer Below Potential Value of Assets


I T A L Y

GUALA CLOSURES: S&P Assigns 'B' Long-Term Rating; Outlook Stable
TAURUS CMBS: Fitch Affirms Rating on Class F Notes at 'CCCsf'
WIND TELECOMUNICAZIONI: Fitch Upgrades Long-Term IDR to 'BB'


K A Z A K H S T A N

KAZKOMMERTSBANK: Fitch Assigns Expected 'B-' Rating to Sr. Notes


L I T H U A N I A

BITE LIETUVA: Fitch Lifts Long-Term Issuer Default Rating to 'B-'


S P A I N

GC PASTOR: S&P Affirms Rating on Class D Notes at 'D'
SANTANDER HIPOTECARIO: S&P Affirms Rating on Class F Notes at 'D'
* SPAIN: Corporate Bankruptcies Hit Record High in First Qtr. 2011


U K R A I N E

AGROTON PUBLIC: Fitch Assigns 'B-(exp)' Rating to Planned Notes
AGROTON PUBLIC: S&P Assigns 'B-' Long-Term Corporate Credit Rating


U N I T E D   K I N G D O M

ADVANCED INTERIORS: Goes Into Administration, Taps Administrators
BRITISH BOOKSHOPS: Creditors to Get Less Than 10% of Money Owed
FLEET STREET: S&P Withdraws 'D' Rating on Class E Notes
FOCUS (DIY): Methven Loses 5% Sales From Focus' Collapse
GLENKERRIN: City Pride Pub Redevelopment in Doubt

MG ROVER: Liquidators Make Biggest Payout Since Collapse
NETPACK FULFILMENT: Placed into Voluntary Liquidation
PLYMOUTH ARGYLE: Signs Exclusivity Deal With Preferred Bidder
POWERFUEL PLC: 2Co Energy Buys Powerfuel Power & CCS Project


X X X X X X X X

* Bank Bail-In Bonds May Help Avoid "Systemic Trauma," IIF Says
* Insolvent Countries Should Consider Debt Restructuring


                            *********


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C Z E C H   R E P U B L I C
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SAZKA AS: Lottery License Temporarily Suspended
-----------------------------------------------
Lenka Ponikelska at Bloomberg News reports that the Czech Finance
Ministry said it has temporarily suspended Sazka AS's lottery
license for 30 days as the lottery company failed to pay winnings
worth CZK103.4 million (US$6.1 million).

According to Bloomberg, the ministry said in an e-mailed statement
on Monday that Sazka has to stop its lottery business or appeal
the decision within 15 days after it receives the official
documents.

Sazka, which received the decision on Monday, said in a separate
e-mailed statement that it will continue business as usual,
Bloomberg relates.  Sazka, as cited by Bloomberg, said it is
paying out all winnings that are overdue.

As reported by the Troubled Company Reporter-Europe, CTK, citing
information made public in the insolvency register, said that the
Prague City Court declared Sazka insolvent on March 29 and named
Josef Cupka as insolvency administrator.

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


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F R A N C E
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EUROPCAR GROUPE: S&P Affirms 'B+' Long-Term Corp. Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on France-
based car rental firm Europcar Groupe S.A. (Europcar) and
Europcar's subsidiary, Europcar International S.A.S.U. (ECI),
to stable from negative.  S&P also said it affirmed 'B+' long-term
corporate credit ratings on both entities.  The issue-level
ratings on Europcar's various debt instruments are unchanged.

"We revised the outlook to stable primarily to reflect our view
that Europcar will likely benefit from a gradual improvement of
its operating performance in the coming years," explained Standard
& Poor's credit analyst Antoine Cornu. "In addition, we believe
that the successful closing of the company's refinancing over the
past quarters has helped improve its liquidity."

"The ratings on Europcar reflect our view of its highly leveraged
financial risk profile and its business risk profile, which we
consider to be fair," S&P said.

"Europcar's financial risk profile assessment is mainly restricted
by our view of its highly indebted financial structure.  Although
Europcar has demonstrated a good ability to adjust the debt
related to fleet levels in times of lower demand, its corporate
debt levels are fairly high, which results in limited financial
flexibility," S&P continued.

"Key constraints to Europcar's business risk profile are that it
operates in an industry we consider to be price-competitive,
cyclical, and asset-intensive, and it lacks earnings diversity
beyond its main Western European markets.  Nevertheless, we
believe Europcar holds a leading position in the European car
rental market, has good operational flexibility and efficiency,
and holds a good competitive position in relation to peers," S&P
related.

"We expect a continuation of this positive operating trend in
2011, backed by the moderate recovery trend we see in the car
rental industry in Europe.  Europcar management forecasts a 6%-
6.5% annual revenue growth over the coming three years,
translating into margin improvements.  This could support
Europcar's ability to return to financial metrics more comfortably
in line with what we expect for the current rating.  In
particular, we expect Europcar to maintain EBITDA interest cover
of more than 2.5x despite the more costly fleet debt following its
2010 refinancing.  We expect it to achieve this through improved
operating performance combined with a decrease in interest costs
from January 2012 on, when the new interest rate swap enters takes
effect.  The new swap rate will decrease to 2.40% from 3.98%,
which we expect to fully offset the impact of higher margins on
cash fleet financing costs following the 2010 refinancing,"
according to S&P.

"The stable outlook reflects our view that Europcar will take
advantage of better industry prospects to improve its operating
performance and credit metrics gradually over the coming years.
It also reflects our expectation that Europcar will be able to
maintain a sound financing structure and liquidity position and
benefit from a lower cost of financing from 2012 on, when its new
interest rate swap becomes effective," S&P noted.

"We consider ratios of funds from operations to debt consistently
above 12% throughout the year and an EBITDA interest cover of
about 2.5x to be commensurate with the current rating on Europcar.
If Europcar does not achieve credit ratios in line with these
benchmark levels, we could lower the ratings.  A downgrade could
also result from a deterioration of the group's liquidity
profile," S&P stated.

"Though unlikely at this stage, we could raise the ratings if
Europcar were to exhibit a very strong trading performance for a
prolonged time, leading to a meaningful improvement in credit
ratios, especially its interest coverage ratio," S&P added.


PAGESJAUNES FINANCE: Moody's Assigns 'B2' Corporate Family Rating
-----------------------------------------------------------------
Moody's Investors Service has assigned a corporate family rating
(CFR) of B2 and a probability of default rating (PDR) of B2 to
PagesJaunes Groupe S.A.  At the same time, Moody's has assigned a
(P)B2 rating to the EUR350 million senior secured notes due 2018
to be issued by PagesJaunes Finance & Co. S.C.A.  The ratings
outlook is stable.

The proceeds from the notes will be on-lent by the issuer to
PagesJaunes Group as an additional tranche under the group's bank
facility, as part of the refinancing of the EUR1,950 million
outstanding bank debt.

                         Ratings Rationale

"The B2 CFR reflects: (i) the company's exposure to the structural
decline of the printed directories business; (ii) a high degree of
competition and exposure to consumer preferences in the online
advertising segment; (iii) aggressive dividend policy leading to
limited free cash flow generation; (iv) and consequently limited
de-leveraging over the near and medium term", says Tanya Savkin,
Moody's lead analyst for PagesJaunes.  "More positively, the
rating also reflects: (i) its good market position as a provider
of local media advertising and local website and digital marketing
services, primarily in France; (ii) the company's relatively
stable operating performance; (iii) successful development of
Online business, representing approximately 48% of 2010 revenue;
(iv) its solid EBITDA margin from effective cost management; and
(v) the company's efforts in product innovation," Ms. Savkin adds.

PagesJaunes has so far largely managed to offset the decline in
its Print business with growth in the Online division, leading to
a relatively modest year-on-year decline in total revenue of
approximately 2-3% during 2009-10.  However, the challenges of
Print revenue stabilisation and maintaining strong growth in
Online revenues remain key ratings drivers.  While Moody's
believes that Online and Mobile revenues, as well as other
innovative services and projects should continue to be the key
growth drivers over the medium term, supported by the high market
share and brand awareness of PagesJaunes, in the future they may
prove more challenging given: (i) the wealth of competing content
already available on internet; (ii) increasing competitive
pressures in the mobile application development and advertising,
website design services, search engine optimisation and marketing
solutions space; and (iii) the execution risks related to the
monetisation of the Mobile segment and new products and services
still in the early stages of building a solid user base.

PagesJaunes' solid EBITDA margin remains supported by: (i) its
continued focus on cost control, including decreasing publishing
costs through the optimisation measures such as reduction in print
runs and page counts, as well as lower communication expenses and
decreased paper tonnage; and (ii) the relatively low fixed cost
base of its business.  While some margin dilution could result
over the medium term with the introduction, take-up and
monetisation of new products, Moody's would expect PagesJaunes to
continue to manage its product mix and costs effectively such that
it is able to grow its EBITDA over the medium term while
maintaining strong EBITDA margins.

Moody's notes that PagesJaunes had a proforma gross adjusted
leverage of 4.2x at the end of fiscal year 2010.  However, Moody's
expects that the pace of PagesJaunes' debt reduction may be
impacted to the extent that the company maintains dividend payout
consistent with historic levels.  The company had previously
maintained a dividend pay-out policy of around 100% of Net Income,
that reduced to 67% in 2010 and in 2011.  Given Moody's belief
that the high dividend pay-outs will continue to meet shareholder
expectations, Moody's would anticipate PagesJaunes's free cash
flow to remain relatively constrained over the medium-term.
De-leveraging at PagesJaunes will thus remain largely a function
of consistent year-on-year growth in the company's EBITDA
generation.

Moody's regards the liquidity position of PagesJaunes as
reasonable.  The company had cash and cash equivalents of EUR106
million at the end of 2010.  In addition, the company will have a
EUR300 million revolving credit facility (RCF), which is expected
to be undrawn at the closing of the bond issuance.

As part of the overall bank refinancing, around EUR962 million of
debt has been extended, due to mature in 2015, with EUR638 million
still coming due in November 2013.  In addition, maintenance
financial covenants under the bank facilities have been reset to
provide additional headroom.

The stable rating outlook reflects Moody's expectation that the
company will show relatively stable operating performance and
address its residual 2013 refinancing needs in a timely fashion.
In that context, Moody's notes that the debt incurrence test on
the Notes is set at 4.5x consolidated leverage.

The B2 PDR is based on a recovery rate of 50%, reflecting a
capital structure that has both notes and bank debt.  The senior
notes share the same security and guarantee package with the bank
debt, leading to their pari-passu ranking with the bank debt and
instrument rating of (P)B2, at the level of the CFR.

                What Could Change the Rating Up/Down

Upward pressure on the rating could occur if continued sustained
stable performance in PagesJaunes' revenue and EBITDA growth leads
to adjusted Gross debt/EBITDA falling sustainably below 4.0x and
FCF/Debt increasing sustainably to high-single digits.  Any rating
upgrade would also require successful refinancing of the 2013 bank
maturities.

Downward pressure on the ratings could result from deterioration
in operating performance, leading either to adjusted Gross Debt/
EBITDA moving towards 5x or negative free cash flow generation.
Any significant change of dividend policy in favour of
shareholders, leading to deterioration of FCF generation, could
also have a negative impact on the credit ratings, as could a
failure to address the 2013 debt maturities in a timely fashion.

PagesJaunes Groupe S.A and PagesJaunes Finance & Co. S.C.A. 's
ratings were assigned by evaluating factors that Moody's considers
relevant to the credit profile of the issuer, such as the
company's (i) business risk and competitive position compared with
others within the industry; (ii) capital structure and financial
risk; (iii) projected performance over the near to intermediate
term; and (iv) management's track record and tolerance for risk.
Moody's compared these attributes against other issuers both
within and outside PagesJaunes Groupe S.A and PagesJaunes Finance
& Co. S.C.A.'s core industry and believes PagesJaunes Groupe S.A
and PagesJaunes Finance & Co. S.C.A.'s ratings are comparable to
those of other issuers with similar credit risk.  Other
methodologies used include Loss Given Default for Speculative
Grade Issuers in the US, Canada, and EMEA, published June 2009.

Headquartered in France, PagesJaunes is the leading provider of
local media advertising and local website and digital marketing
services, with the majority of its operations (more than 93% of
2010 total revenue) in France and the remainder (approximately 6%)
of operations in Spain and Luxembourg.  The company reported
EUR1,125 million revenues in 2010.  PagesJaunes is listed on the
Paris stock exchange and is controlled by Mediannuaire Holding SA,
which holds 54.7% of the shares as its sole material asset.  MDH's
shareholders are KKR (80%) and Goldman Sachs Capital Partners
(20%).


PAGESJAUNES: Fitch Assigns 'B+' Long-Term Issuer Default Rating
---------------------------------------------------------------
Fitch Ratings has assigned PagesJaunes Groupe S.A. (PagesJaunes) a
Long-term Issuer Default Rating (IDR) of 'B+' with a Negative
Outlook.  The rating is based on PagesJaunes' planned EUR350
million senior secured notes issuance.  Fitch also assigned
PagesJaunes Finance & Co S.C.A.'s senior secured notes an expected
instrument rating of 'BB(exp)' with a Recovery Rating (RR) of
'RR2'.  The final rating is contingent upon the receipt of final
documents conforming to information already received.

The ratings reflect PagesJaunes' strong position in the French
local advertising market and its lead ranking among European
directory peers demonstrated by its greater ability to cope with
the directory market transition from print to internet.  Fitch
also recognises that PagesJaunes' transition away from print is
more advanced than its peers, with close to 50% of revenues
generated from internet services in 2010.  While two thirds of
PagesJaunes' print revenues are generated in rural areas, which
have proved to be more resilient than cities, Fitch notes that the
adoption of PagesJaunes' internet products in those areas is
similar to the levels recorded in urban areas, suggesting limited
execution risk in the transition from print to internet.
PagesJaunes also demonstrated resilience during the downturn with
profitability and EBITDA margin maintained at high levels. Recent
performance shows encouraging signs in terms of a potential
stabilization in the sales trend.

The Negative Outlook is based on Fitch's view that PagesJaunes'
market and business model are undergoing structural changes and
the expectation that print volumes and revenue declines are likely
to continue.  In addition, in the context of increasing
competition in the French local directories market for
online/digital services and likely pressure on margins, Fitch
needs more assurance that growth in this particular segment can
meet the management's per annum double-digit expectations in order
to offset the decline in print.

The agency sees the next two years as a key transitional phase in
ascertaining the success of management's strategy in a challenging
environment for the directory business as a whole.  Fitch
considers PagesJaunes' high dividend payments as a constraint on
de-leveraging progress and on management's ability to invest in
value-added digital products and pursue acquisitions, which are
key elements in its growth and transition strategy.  However, the
agency notes that there are some restrictions on dividend
payments, such as total leverage and percentage of market
capitalization.

The recovery rating of 'RR2' for the senior secured notes is based
on the assumption that distress or default would be caused by a
further reduction in EBITDA to a post-restructuring EBITDA level
of EUR450 million.  Fitch considers that PagesJaunes' brand and
sales network should still have value at that point and assumed a
distressed enterprise value multiple of 6.0x, which is at the
higher end of comparables rated by Fitch.

A stabilization of the outlook could occur if 2011 sales and
EBITDA are in line with management expectations.  Fitch would
therefore expect sales to be at least flat on 2010 and positive
momentum for 2012 sales. This would also mean confidence that
internet sales growth would be able to more than offset the
reduction in print sales.

Conversely, evidence of a deterioration in the business model,
translated into a lack of sales growth and EBITDA margin erosion
coupled with a gross debt to EBITDA leverage of more than 5.0x and
negative free cash flow caused by dividend payments would cause a
negative rating action.


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G E R M A N Y
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EVONIK INDUSTRIES: S&P Raises Corporate Credit Rating From 'BB+'
----------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term corporate
credit and unsecured debt ratings on German chemical company
Evonik Industries (Evonik) and its subsidiary Evonik Degussa GmbH
(Degussa) by two notches to 'BBB' from 'BB+'.  "We also raised the
short-term corporate credit rating to 'A-2' from 'B'.  The
outlook is stable," S&P stated.

The upgrade reflects significant improvement in Evonik's credit
metrics -- following the disposal of its energy division, Steag --
in combination with expected continued robust operating
performance. "Consequently we have upped the company's financial
risk profile to 'intermediate' from 'significant," S&P related.

Evonik's adjusted debt, excluding real estate debt and with Steag
already deconsolidated, came down to EUR4.7 billion at year-end
2010, from EUR6.9 billion at year-end 2009.  "This, together with
record cash flow generation, resulted in our adjusted FFO-to-debt
ratio jumping to 37% in 2010 from 15% in 2009.  Furthermore, we
expect the group's strong operating performance to continue in
2011, and we think that adjusted debt will decline to about EUR4
billion in our credit scenario in the coming years.  This is in
line with management's objective to gradually further reduce the
pension deficit, which remains significant.  We believe that
Evonik will have financial flexibility to achieve this, since it
received EUR651 million of disposal proceeds in March 2011 from
the 51% disposal of Steag and pending proceeds from its carbon
black disposal with a transaction value of about EUR900 million,"
S&P stated.

"The stable outlook factors in our expectation of a supportive
medium-term chemical environment.  It also factors in further
reductions of Evonik's pension deficit and adjusted debt in 2011-
2012, as the company has good financial flexibility from free cash
flow and disposal proceeds.  Finally, the ratings factor in
management's commitment to investment-grade ratings, and our
perception that Evonik will have a modest appetite for external
growth.  At the current rating level we would consider a ratio of
fully-adjusted FFO to debt of 30%-35% under mid-cycle chemical
conditions as commensurate with the 'BBB' rating.  During very
favorable years, like 2011 could be, we would expect this
ratio to be comfortably exceeded," S&P stated.

Rating downside could stem from a large acquisition or from a
severe drop in profits, although ratings try to factor in a degree
of cyclicality inherent to the chemical industry.  No further
rating upside is likely in the near term, but in the longer term
it would depend on a further strengthening of metrics and/or
reinvestment of noncore real estate assets proceeds, if and when
disposed of," S&P added.


STYROLUTION GROUP: S&P Assigns 'B+' Prelim. Corp. Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' preliminary
long-term corporate credit rating to Germany-based styrenics
producer Styrolution Group GmbH, a new joint venture (JV)
combining the global styrenic polymer production activities of
BASF SE (A/Stable/A-1) and INEOS Group Holdings PLC (B-/Stable/--
).  The outlook is stable.

"At the same time, we assigned a preliminary debt rating of 'B+'
and a recovery rating of '4' to the EUR480 million senior secured
notes to be issued by Styrolution.  The '4' recovery rating
indicates our expectation of 'average' (30%-50%) recovery in the
event of a payment default," S&P stated.

Styrolution is a leading, commodity-oriented producer of styrene-
derived petrochemical products. "Our ratings on Styrolution
reflect our view of its 'weak' business risk profile and
"significant" financial risk profile," S&P noted.

The ratings are preliminary, pending finalized competition
clearance for the JV in various regions and the startup of the JV,
scheduled for the second half of 2011.  "We view the key risks to
Styrolution as high earnings and cash flow cyclicality during
periods of demand compression in the company's more cyclical end
markets, including consumer durables, packaging, building, and
construction.  In addition, steep rises in raw material input
costs (such as benzene) could cut into profitability and related
working-capital swings can be significant," according to S&P.

Offsetting some of these risks are Styrolution's favorable debt
maturity profile, adequate liquidity, likely profitability
improvement from ongoing and planned restructuring and integration
plans, as well as its geographically diversified production
footprint.  Furthermore, the near-term chemical environment is
supportive.  "We see economic conditions in Styrolution's mature
home markets of Europe (48% of sales) and North America (29%) as
relatively supportive.  In addition, chemical demand is supported
by robust growth in Asia, where Styrolution has limited sales,
although it is ramping up activities and production capability in
the region," S&P related.

"The stable outlook reflects our expectation that the proposed
capital structure, liquidity, and operating prospects will be
sufficiently robust to allow Styrolution to weather challenges
arising from supply and demand imbalances, raw material price
swings, and a highly competitive industry environment over the
next few years," S&P continued.

"We could lower the ratings if demand declines because of an
economic downturn or a meaningful increase in input costs.
Specifically, we could lower the ratings if profit margins decline
to 4% or lower and the ratio of funds from operations (FFO) to
total debt declines to below 20% with no prospects for
improvement.  We could also downgrade Styrolution if free cash
flow or liquidity deteriorates or if debt levels increase
meaningfully because of acquisitions or shareholder rewards," S&P
noted.

An upgrade is unlikely over the near term and would depend amongst
others on the company's establishing a track record of consistent
cash flow generation.  It would also imply lower debt, so that FFO
to total debt is above 30% on a sustainable basis under mid-cycle
conditions.


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BENGAL BRASSERIE: Nigel Rahman Declared Bankrupt Over Unpaid Bill
-----------------------------------------------------------------
Clare Weir at Belfast Telegraph reports that Nigel Rahman of the
Bengal Brasserie has been declared bankrupt over an unpaid bill to
Drinks Incorporated Ltd.

Belfast Telegraph relates that the order was served on Mr. Rahman
in court on Friday, May 6.

Last year, Mr. Rahman's Bengal Brasserie II on the city's Lisburn
Road was taken out of administration after it was acquired by a
sister company which runs a venue of the same name on the Ormeau
Road, Belfast Telegraph recounts.  The Lisburn Road outlet was
opened in November 2009 but went into administration just months
later after one of Mr. Rahman's business partners withdrew his
backing, Belfast Telegraph relates.  He entered into a CVA
(Creditors Voluntary Arrangement) last August, agreeing to pay
around GBP15,000 a month back to creditors over three and a half
years, Belfast Telegraph discloses.  However, it is understood
that Mr. Rahman has paid only a fraction of the money back,
Belfast Telegraph notes.

According to Belfast Telegraph, sources have claimed that he owes
hundreds of thousands of pounds to a number of creditors.  In
January 2010, administrators Lismore & Co were appointed by the
High Court to take over after Mr. Rahman's investor withdrew,
Belfast Telegraph recounts.  In January 2010, administrators
Lismore & Co were appointed by the High Court to take over after
Mr. Rahman's investor withdrew, Belfast Telegraph relates.

Bengal Brasserie II on the city's Lisburn Road includes a 200-
seater restaurant, business rooms with plasma screens and WiFi,
and tea rooms for private dining.


ELAN CORP: Sale of Drug Formulation Unit to Help Cut Debt
---------------------------------------------------------
Andrew Jack at The Financial Times reports that Elan Corp. will
sell its drug formulation arm to US-based Alkermes for US$960
million (GBP590 million) in cash and equity in a deal that cuts
sharply the debt of the Irish company and strengthens its links
with Johnson & Johnson.

According to the FT, Alkermes will pay US$450 million and hand
31.9 million shares -- a 25% stake -- to Elan to take over Elan
Drug Technologies, its formulation and finishing unit.

The cash will further reduce Elan's US$1.2 billion debt burden,
freeing cash and offering investors a share of future benefits
from the new combination, the FT says.

The combined company, specializing in central nervous system
treatments, will be quoted on Nasdaq, the FT discloses.

                    About Elan Corporation

Headquartered in Dublin, Ireland, Elan Corporation, plc --
http://www.elan.com/-- is a neuroscience-based biotechnology
company.  Its principal research and development, manufacturing
and marketing facilities are located in Ireland and the United
States.  Elan's operations are organized into two business units:
Biopharmaceuticals and Elan Drug Technologies.  Biopharmaceuticals
engages in research, development and commercial activities
primarily in neuroscience, autoimmune and severe chronic pain.
EDT focuses on the specialty pharmaceutical industry, including
specialized drug delivery and manufacturing.

Elan shares trade on the New York, London and Dublin Stock
Exchanges.

                           *     *     *

Elan is currently rated B2 (Corporate Family Rating) by Moody's
with a positive rating outlook.


MCINERNEY GROUP: Rescue Offer Below Potential Value of Assets
-------------------------------------------------------------
Mary Carolan at The Irish Times reports that Michael Collin,
senior counsel for three banks, has told the Supreme Court that
the EUR25 million being offered by an investor as part of the
rescue plan for McInerney was well below the potential value of
the company's assets.

According to The Irish Times, Mr. Collins, who is representing
KBC, Anglo Irish Bank, and Bank of Ireland, said the banks, who
are owed EUR113 million by McInerney, and other parties agreed the
best way to realize and manage the assets was to develop the lands
that the company owned.

Mr. Collins, as cited by The Irish Times, said that the banks, the
company, and the examiner, who has recommended an investment by US
equity fund, Oaktree Capital, as part of the rescue plan, all
agreed this was a "very good business opportunity."  The counsel,
as cited by The Irish Times, said that in those circumstances, the
offer of EUR25 million to meet the banks' EUR113 million debt
amounted to unfair prejudice.

He was opposing McInerney's appeal against the High Court's
rejection of the rescue plan on grounds one of the creditor banks,
Belgium-based KBC, would be unfairly prejudiced by it, The Irish
Times discloses.  The banks oppose examinership and want a
receiver appointed to the firm, The Irish Times says.

The Supreme Court reserved its decision on the appeal on Friday,
The Irish Times relates.

The banks have also cross-appealed against the decision of
Mr. Justice Frank Clarke to allow the High Court case to be re-
opened, after he had previously decided all three banks would be
prejudiced by the rescue plan, The Irish Times states.

                         About McInerney

McInerney Holdings plc -- http://www.mcinerneyholdings.eu/-- is a
home builder and regional home builder in the North and Midlands
of England.  It also undertakes commercial and leisure projects in
Ireland, United Kingdom and Spain.  It operates in Ireland, the
United Kingdom and Spain.  The main trading activities of the
Company's Irish home building business during the year ended
December 31, 2008, consisted of construction of private houses,
trading in developed sites and land, development of residential
land for third-parties and in joint-ventures, and contracting for
third-parties.  The Company's commercial property development
division, Hillview Developments Ltd (Hillview), develops
industrial units in the Greater Dublin area.  Hillview completed
1,223 square meters of industrial units as of December 31, 2008.
Its Spanish division, Alanda Group, is developing freehold
apartment schemes.  As of December 31, 2008, the Company completed
1,359 private and contracting residential units in Ireland, the
United Kingdom and Spain.


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GUALA CLOSURES: S&P Assigns 'B' Long-Term Rating; Outlook Stable
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' long-term
corporate credit rating to both Italian bottle closures
manufacturer Guala Closures SpA (Guala) and its indirect parent
GCL Holdings S.C.A. (GCL, or the group).  The outlook is
stable.

"In addition, we assigned our issue rating of 'CCC+' and our
recovery rating of '6' to the EUR200 million senior unsecured
notes issued by GCL," S&P said.

"The rating on GCL reflects our view of its highly leveraged
financial profile, particularly its weak cash flow measures, which
are adversely affected by substantial cash tax payments.  The
ratings also reflect our view of the group's business risk
profile, which we assess as fair.  This takes into consideration
the current niche size of the global safety closures market,
Guala's limited end-market diversity, and its exposure to raw
materials price volatility," S&P explained.

"These risks are partly mitigated by Guala's leading market share
in the safety closures market, which we believe offers high growth
potential, especially in Asia and Eastern Europe.  Further support
for the ratings comes from Guala's longstanding relationship with
leading spirits and wine producers, and an experienced management
team.  The group's safety closure designs are protected by
patents, which act as barriers to entry, compared with the market
for standard closures, which is highly fragmented, competitive,
and price sensitive," S&P related.

For full-year 2010, GCL's debt to EBITDA improved to 5.8x,
compared with 6.4x in the prior year, and funds from operations
(FFO) to debt improved to 7.8%, compared with 7.0% in the prior
year.

"In our view, GCL's operating performance will continue to improve
as the penetration of safety closures increases in emerging
markets.  We believe that GCL will be able to achieve adjusted FFO
to debt of about high single digits over the medium term and
maintain adjusted debt to EBITDA of 5x-6x over the near term.  We
also believe that current equity investors will be conservative,
focusing on improving the capital structure while undertaking new
small bolt-on acquisitions or growth capex," according to S&P.

"Upside rating potential would depend on a sustainable improvement
in financial performance above our guidelines for the current
ratings, for example, a sustainable adjusted FFO-to-debt ratio
comfortably exceeding 10% and adjusted debt to EBITDA of less than
5x," S&P noted.

"Downside risks to the rating would arise primarily from weaker
credit ratios than we anticipate.  This could result from, for
example, weak volume growth or input cost inflation.  Significant
volume losses due to production disruptions or the loss of
important customers, event risk stemming from a failure to
integrate any future potential acquisitions efficiently, or
substantial debt-funded acquisitions could also lead to a negative
rating action," S&P added.


TAURUS CMBS: Fitch Affirms Rating on Class F Notes at 'CCCsf'
-------------------------------------------------------------
Fitch Ratings has affirmed Taurus CMBS No.2 S.r.l.'s (Taurus 2)
notes:

   -- EUR13.0m class A (IT0003957005) affirmed at 'AAAsf'; Outlook
      Stable

   -- EUR26.0m class B (IT0003957013) affirmed at 'AAAsf'; Outlook
      Stable

   -- EUR14.2m class C (IT0003957021) affirmed at 'AAsf'; Outlook
      Stable

   -- EUR16.6m class D (IT0003957039) affirmed at 'Asf'; Outlook
      Stable

   -- EUR14.2m class E (IT0003957047) affirmed at 'BBsf'; Outlook
      Negative

   -- EUR9.5m class F (IT0003957054) affirmed at 'CCCsf'; 'RR1'

   -- EUR14.1m class G (IT0003957062) affirmed at 'BBsf'; Outlook
      Stable

The affirmation of all note classes reflects the stable
performance of the one remaining loan (Berenice) since Fitch's
last rating action in April 2010.  The interest coverage ratio
(ICR) has increased to 1.70x from 1.58x and the reported loan-to-
value (LTV) has increased slightly to 55% compared to 52% 12
months ago.

As previously reported, the higher rating of the class G notes
(compared to the class F notes) is due to the available funds cap,
which means that Fitch's analysis does not incorporate the
likelihood of class G interest being paid.  Shortfalls on the
class G notes have increased to EUR2.03 million from EUR1.36
million in April 2010.  Despite the repayment of the interest
shortfall in July 2010, the class F notes have been affirmed at
'CCCsf'/'RR1' as the risk of future prepayments (driven by asset
sales) leading to interest shortfalls remains.

Prepayments totalling EUR4.7 million have resulted in the Berenice
loan balance reducing to EUR96.8 million versus EUR101.5 million
in April 2010 (EUR150 million at closing).  Asset sales have, thus
far, been in line with the borrower's initial business plan.  The
loan is now secured by 38 properties compared to 42 at the time of
Fitch's last rating action.

At closing, in December 2005, Taurus 2 was a securitization of
four commercial mortgage loans originated in Italy; the Berenice
loan was a one-third pari passu participation in a EUR490 million
syndicated loan, granted to a closed-ended listed real estate
investment fund.  The loans, originated by Merrill Lynch Capital
Markets Bank Ltd, were secured by 83 predominantly office
properties.  Following the prepayment of the Bentra, Little Domus
and Leather loans, only the Berenice loan remains outstanding.


WIND TELECOMUNICAZIONI: Fitch Upgrades Long-Term IDR to 'BB'
------------------------------------------------------------
Fitch Ratings has upgraded Wind Telecomunicazioni Spa's (Wind)
Long-term Issuer Default Rating (IDR) to 'BB' from 'BB-' with a
Stable Outlook.  The agency has also upgraded Wind's high-yield
unsecured notes and PIK notes to 'BB-' from 'B+' and 'B+' from
'B', respectively and affirmed the senior secured debt at 'BB+'.
All ratings have been removed from Rating Watch Positive (RWP).

"The upgrade reflects the positive influence and potential support
from the company's sole ultimate shareholder, Vimpelcom Ltd.,"
says Nikolai Lukashevich, Senior Director in Fitch's European
Telecoms, Media and Technology team.  Vimpelcom announced in mid-
April that it had closed a transaction to acquire Wind Telecom,
which controls 100% of Wind.  Vimpelcom Ltd. has a notably
stronger credit profile than Wind, and is likely to treat this
subsidiary as a strategic investment diversifying the group from
over-reliance on high growth and also volatile emerging markets.
Vimpelcom will likely seek to improve access to Wind's cash flows
and reduce interest payments across the group.  Both of these
goals would require meaningful deleveraging at the Wind level.

Wind's credit profile is supported by its established position as
third-largest mobile operator in Italy complemented by alternative
fixed-line business.  The company has been progressively
increasing its mobile subscriber market share, which was reported
at 22% at end-2010.  Wind has outperformed the market for a number
of years, at the expense of its two larger peers, Telecom Italia
and Vodafone, both of which have reported negative revenue trends
for 2010.

However, further growth opportunities are likely to be limited.
The Italian mobile market is fully penetrated with headline SIM
penetration at approximately 150% at end-2010 and revenues have
been shrinking.  Although Wind's mobile revenue and subscriber
growth remain positive, average revenues per user (ARPU) have been
under pressure, with declining voice revenues not being fully
compensated by the rising contribution of data services.  The
Italian market is generally dominated by pre-paid subscribers, and
Wind is more reliant on this sector than its competitors with the
post-paid share of its subscriber base at only 4.3% at end-2010.
This may limit Wind's exposure to an industry-wide trend of
growing data services, which is typically stronger for post-paid
customers.  Wind's growth prospects may also be negatively
affected by a weak economic recovery.

Wind has been strongly free cash flow (FCF) generative, which was
a key factor behind its historical deleveraging.  Fitch estimates
that the company will continue to generate ample FCF although this
may be temporarily compromised by one-off investments into new
frequencies.  The company's November 2010 refinancing did not
materially change interest payments, although it did entail
substantial one-off fees, which depressed cash flows for the year.

Fitch estimates that Wind's leverage is high at 4.4x net
debt/EBITDA (including PIK debt at Wind Acquisition Holding
Finance S.p.A level, Wind's immediate parent) at end-2010. Taking
into account Wind's substantial lease payments, the lease-adjusted
net debt/EBITDAR ratio is notably higher at 5.3x.  Fitch estimates
that deleveraging is likely to be relatively slow, particularly if
growth decelerates from 2008-2010 levels.

Including PIK notes, deleveraging to around 3x net debt/EBITDA
(which is likely to correlate to above 4x adjusted net
debt/EBITDAR) may be credit positive but realistically this will
only be achieved in the medium to long term.  On the other hand,
competitive pressures leading to lower FCF generation may be
credit negative.  Any evidence of weaker parental support may also
trigger a negative rating action.

These rating actions have been taken:

   -- Long-Term IDR: upgraded to 'BB' with a Stable Outlook; off
      RWP

   -- Short-Term IDR: affirmed at 'B'; off RWP

   -- Wind's senior credit facilities: affirmed at 'BB+'; off RWP

   -- Senior secured 2018 notes issued by Wind Acquisition Finance
      S.A.: affirmed at 'BB+'; off RWP

   -- Senior 2017 notes issued by Wind Acquisition Finance S.A.:
      upgraded to 'BB-' from 'B+'; off RWP

   -- Senior PIK notes issued by Wind Acquisition Holdings Finance
      S.A.: upgraded to 'B+' from 'B'; off RWP


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


KAZKOMMERTSBANK: Fitch Assigns Expected 'B-' Rating to Sr. Notes
----------------------------------------------------------------
Fitch Ratings has assigned Kazkommertsbank's (KKB) upcoming seven-
year USD-denominated issue of senior unsecured notes an expected
Long-term 'B-(exp)' rating with a Recovery Rating of 'RR4'.  The
final rating is contingent on the receipt of documents conforming
materially to information already received.

KKB is one of the two largest banks in Kazakhstan.  The bank's
Long-term Issuer Default Rating of 'B-' with a Stable Outlook was
affirmed on April 26, 2011.


=================
L I T H U A N I A
=================


BITE LIETUVA: Fitch Lifts Long-Term Issuer Default Rating to 'B-'
-----------------------------------------------------------------
Fitch Ratings has upgraded UAB Bite Lietuva's (Bite) Long-term
Issuer Default Rating (IDR) to 'B-' from 'CCC'.  The Outlook is
Stable.  The agency has also upgraded SIA EECF Bella Finco's
senior secured revolving credit facility (RCF) to 'B' from 'B-'.
The Recovery Rating of the facility is 'RR3'.  The senior secured
notes due 2014 issued by Bite Finance International BV have been
upgraded to 'B-' from 'CCC'.  The Recovery Rating for the notes is
'RR4'.

The upgrade reflects the deleveraging process that Bite has
undergone over the past 12 months.  FFO adjusted net debt had
fallen to 5.5x at year-end 2010 from 7.9x at year-end 2009.  This
reduction was facilitated by both the repayment of debt as well as
an improvement in EBITDA.  The improvement in EBITDA comes against
the backdrop of difficult trading environments in Bite's markets
of Lithuania and Latvia.  Revenues in both countries have been
under intense pressure due to high levels of competition, elevated
pressure on consumer spending and aggressive interconnection rate
cuts.  Despite these challenges, EBITDA grew to EUR39.1 million in
2010, up from EUR33.3 million in 2009.  Bite's Q111 figures show
that this improvement has been sustained, with LTM EBITDA growing
slightly to EUR39.2 million.

A substantial contributor to the growth in Bite's EBITDA has been
the improved performance of the Latvian operations.  In Q310, the
Latvian operations posted mildly positive EBITDA of EUR56,000, the
first positive contribution since the inception of the business in
2005.  Although EBITDA slipped back into negative territory in
Q410 and Q111, Fitch takes comfort from the strong postpaid
subscriber growth of 85% and 82% that has accompanied these
results.  Although Fitch does not believe that these high rates of
growth will continue, the threat of the Latvian operations
continuing to drain large amounts of cash seems to have receded.

The ratings reflect the severe competition that Bite faces in both
the Latvian and Lithuanian markets.  Mobile penetration rates in
both countries are high.  Additionally, Bite competes with two
much larger, international operators.  Given Bite's leverage
profile and its low cash balance of EUR3.9 million at Q111, if
either competitor were to engage in extremely aggressive pricing,
Bite would not have the financial flexibility to match it.

The ratings also reflect the headwinds facing Bite over the short
and medium term.  The economic situation in Latvia and Lithuania
stabilized during 2010.  However, unemployment in both countries
remains at extremely high levels, exerting negative pressures on
consumer spending.  Together with the high levels of competition
and further planned interconnection rate cuts in 2011 and 2012,
this will limit revenue growth in the coming years.


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


GC PASTOR: S&P Affirms Rating on Class D Notes at 'D'
-----------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on GC Pastor Hipotecario
5, Fondo de Titulizacion de Activos' class A2, B, and C notes.
"At the same time, we have affirmed our rating on the class D
notes," S&P stated.

"Cumulative defaults have continued to rise since our last review
in October 2010, when we placed on CreditWatch negative our
ratings on the class A2, B, and C notes. Since then, cumulative
defaults have increased to 2.74% from 2.27%," S&P said.

The current level of cumulative defaults is still below the
interest-deferral triggers for the class B and C notes as set by
the transaction documents (10% and 6.7% of the initial balance of
the mortgage-backed notes).  Interest-deferral triggers state
that, if the cumulative level of defaulted loans in this
securitization reaches certain levels over the original balance of
the mortgage-backed notes, the priority of payments changes so as
to divert the interest payments from the related class of notes
toward amortizing the most senior class of notes.  "In our
opinion, interest on the junior classes of notes is not likely to
be postponed in the next 12 months," S&P said.

However, this transaction requires full provisioning for defaulted
loans (defined as loans in arrears for more than 18 months), and
available excess spread has not fully covered these defaults.
Consequently, the reserve fund is now fully depleted and the
balance of the performing assets is lower than the outstanding
balance of the mortgage-backed notes.  This difference could be
reduced by recoveries from the defaulted assets or, to the extent
that some of the nonperforming assets are current again.

"We have therefore lowered and removed from CreditWatch negative
our ratings on the class A2, B, and C notes due to deteriorating
collateral performance.  At the same time, we affirmed our
'D' (sf) rating on the class D notes," S&P said.

The rating on GC Pastor Hipotecario 5's class A2 notes was on
CreditWatch negative for credit and counterparty reasons.  As the
rating on this class is now at a level that can be supported by
the current rating on the supporting counterparties, the rating is
no longer on CreditWatch negative for counterparty reasons.

GC Hipotecario Pastor 5 closed in June 2007 and securitizes a
portfolio of mortgages granted to individuals, self-employed
individuals, and small and midsize enterprises to buy residential
or commercial properties located in Spain.  Banco Pastor S.A.
originated and currently services the portfolio.

Ratings List

Class            Rating
            To            From

GC Pastor Hipotecario 5, Fondo de Titulizacion de Activos
EUR710.5 Million Floating-Rate Mortgage-Backed Notes

Ratings Lowered and Removed From CreditWatch Negative

A2          A+ (sf)       AA+ (sf)/Watch Neg
B           BBB- (sf)     A- (sf)/Watch Neg
C           B (sf)        BB (sf)/Watch Neg

Rating Affirmed

D           D (sf)        D (sf)


SANTANDER HIPOTECARIO: S&P Affirms Rating on Class F Notes at 'D'
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
the class A, B, C, D, and E notes in Fondo de Titulizacion de
Activos Santander Hipotecario 5.  "At the same time, we affirmed
our 'D (sf)' rating on the class F notes," S&P stated.

"On Sept. 29, 2010, we placed on CreditWatch negative our ratings
on the class A to E notes in this transaction, based on a credit
analysis that showed that the weak performance could affect the
ratings on the notes.  Our credit analysis, based on the most
recent transaction information we have received after the February
2011 payment date, showed further deterioration of the performance
of the underlying collateral since our previous analysis. Taking
into account this portfolio credit deterioration and applying our
cash flow analysis to the outstanding capital structure, we have
taken negative rating actions on the affected classes," S&P noted.

In particular, as of the transaction's last payment date in
February 2011, defaulted loans (defined as loans in arrears for
more than 18 months) were 3.35% of the portfolio, compared with
2.75% at the August 2010 payment date.  Moreover, transitory
properties (properties in the ownership of the issuer as a result
of a judicial process and consequently in the balance of the fund)
have increased to 4.10%, compared with 3.04% at the August 2010
payment date.

This, together with the lack of any available reserve fund amount
since August 2009, has generated an increasing difference between
the balance of the mortgage-backed notes and the balance of
performing assets which could be reduced by recoveries from the
defaulted assets or, to the extent that some of the nonperforming
assets are current again.  This reflects the continuing weakening
of the notes' credit enhancement, which has deteriorated more than
S&P would generally expect from similar transactions given its
seasoning (it closed in November 2008).  In particular, the level
of principal deficiency over the outstanding balance for the class
D and E notes increased to 11.37% and 100.00%, in February 2011.

In this transaction, when the percentage of cumulative defaulted
loans over the original balance of the class A, B, C, D, and E
notes reaches a certain level, the priority of payments changes so
as to postpone interest payments to the related class of notes and
divert these funds to amortize the most senior class of notes.

The trigger levels for the class B, C, D, and E notes are 21.5%,
16.5%, 11.5%, and 9.0%.

"As of the last payment date, the ratio of cumulative defaults
over the original balance was 4.10%.  This is still far below
these trigger levels, in our opinion, even though it has increased
from 3.04% as of the August 2010 payment date," S&P noted.

"We did not place the ratings on this transaction on CreditWatch
negative because of counterparty reasons on Jan. 18, 2011, because
the then ratings on the notes were already at the issuer credit
rating on the lowest-rated counterparty in this transaction, which
is 'AA'. This means that any future rating transition of Banco
Santander may result in an adverse rating action on
the class A notes," S&P related.

The portfolio securitized mortgages granted to individuals to buy
residential properties with loan-to-value ratios higher than 80%.
These loans were originated by Banco Santander S.A.

Ratings List

Class              Rating
           To                   From

Santander Hipotecario 5, Fondo de Titulizacion de Activos
EUR1.4 Billion Mortgage-Backed Floating-Rate

Ratings Lowered and Removed From CreditWatch Negative

A          AA- (sf)             AA (sf)/Watch Neg
B          A- (sf)              A (sf)/Watch Neg
C          BB+ (sf)             BBB- (sf)/Watch Neg
D          BB- (sf)             BB (sf)/Watch Neg
E          B- (sf)              B (sf)/Watch Neg

Rating Affirmed

F          D (sf)


* SPAIN: Corporate Bankruptcies Hit Record High in First Qtr. 2011
------------------------------------------------------------------
FOCUS News Agency, citing Spanish El Pais daily, reports that the
number of households and companies to seek protection from
creditors in Spain hit record high due to the ongoing slump in the
property sector and the persistent weakness of the economy after
the recession.

According to FOCUS News, figures released Monday by the National
Statistics Institute (INE) showed that the number of individuals
and firms in bankruptcy proceedings climbed 5.9% in the first
quarter of the year from a year earlier to 1,803, the highest
figure since the INE began compiling the current series in 2005.

The previous high was 1,762 in the second quarter of 2009, when
the country was still in the throes of recession, FOCUS News
notes.


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


AGROTON PUBLIC: Fitch Assigns 'B-(exp)' Rating to Planned Notes
---------------------------------------------------------------
Fitch Ratings has assigned Agroton Public Limited's (Agroton)
planned US$100 million-US$125 million notes due 2016 an expected
foreign-currency senior unsecured rating of 'B-(exp)' and an
expected Recovery Rating of 'RR4'.  The final ratings on the
planned notes are contingent upon the receipt of final documents
conforming to information already received by Fitch.

Agroton has Long-term foreign and local currency Issuer Default
Ratings (IDR) of 'B-' and a National Long-term of 'BBB(ukr)'.  The
Outlook on these ratings is Stable.

The proceeds from the bonds will be used to redeem all existing
bank debt of around US$21 million, and to fund the construction of
additional grain storage facilities, acquire land lease going
concerns and agricultural machinery and provide working capital
financing.  Future cash from the bond proceeds will be deposited
initially in Bank of Cyprus ('BBB+'/Negative) in USD.

The notes will be unsecured obligations of Agroton and will be
unconditionally and irrevocably guaranteed on a joint and several
basis by the group's operating companies, by way of suretyships
under Ukrainian law.  Guarantors accounted for 98% of the group's
assets as at December 31, 2010 and 100% of consolidated net income
for the year ended December 31, 2010.  The notes proceeds will be
transferred to Ukraine via intercompany loans.  The noteholders
will have recourse over the proceeds via the suretyship structure.

The notes contain a cross-default clause with other debt borrowed
by the issuer or any of its restricted subsidiaries.  The draft
terms of the notes also contain limitations on incurring
additional indebtedness based on a consolidated net debt/EBITDA
ratio of less than 3.0x.  Noteholders will rank junior to all
present and future senior secured indebtedness of the surety
providers although the indenture imposes restrictions upon surety
providers and the issuer to incur new liens above a maximum
threshold of US$15 million for working capital facilities and
finance leases.

Other draft conditions include restrictions on paying dividends,
subject to having sufficient distributable reserves (i.e. minimum
50% of consolidated net income plus debt incurred up to the above
covenant level).  The notes can be put back to the issuer at 1%
over par upon a change of control event, only if the majority
shareholder, Mr. Iurii Zhuravlov, who currently has 56.1%.of the
issuer's shares, ceases to control 30% of the voting power of the
total outstanding voting stock of the issuer.  While this means
theoretically less protection for noteholders, its aim is to
provide the company with access to new money, should it be needed,
by raising additional equity, potentially allowing the dilution of
the majority shareholder's stake.

Using conservative assumptions under Fitch's Recovery Ratings
methodology, with 30% discounted EBITDA and a distressed
enterprise value/EBITDA multiple of 4.0x, the agency's analysis
results in above-average recovery prospects for noteholders.  As
per Fitch's "Country-specific Treatment of Recovery Ratings"
(published on February 23, 2011), the Recovery Rating is capped at
'RR4', reflecting recoveries between 31% and 50%, due to the
Ukrainian jurisdiction of the surety providers.  Thus, the
foreign-currency senior unsecured rating is the same as the Long-
term foreign-currency IDR.


AGROTON PUBLIC: S&P Assigns 'B-' Long-Term Corporate Credit Rating
------------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B-' long-term
corporate credit rating to Ukrainian agricultural producer Agroton
Public Ltd. The outlook is stable.

"At the same time, we assigned an issue rating of 'B-' to
Agroton's proposed US$100 million senior unsecured notes.  The
recovery rating on the notes is '4', indicating our expectation of
average (30%-50%) recovery in the event of a payment default," S&P
stated.

"The issue and recovery ratings are subject to our satisfactory
review of the final documentation," S&P said.

"The ratings on Agroton reflect our assessment of the company's
business risk profile as weak and its financial risk profile as
highly leveraged," S&P continued.

"Agroton's business risk profile is constrained overall by our
view of the high risk of doing business in Ukraine.  We also
factor in the inherent volatility of the agribusiness sector,
where commodity prices are driven by unpredictable external
factors such as weather conditions.  Even so, we see positive
growth prospects for the sector over the next 12 months because of
the favorable demand and supply trends worldwide, notably for
exports to the Middle East," S&P stated.

Although Agroton has been growing in size through investments in
land lease rights, it still remains small in comparison with rated
peers such as Mriya Agro Holding PLC (B/Stable/--).  "In our view,
Agroton's product diversification is skewed by wheat and sunflower
seed, which we think could lead to volatility in earnings and cash
flow. Production costs such as fuel, fertilizers, and seeds are
also likely to pressure margins, in our view. Partially mitigating
these factors are the company's strong market positions in
Ukraine, large storage capacity, and a balanced growth strategy,"
S&P noted.

S&P continued, "We believe that Agroton's operating performance
for 2011 should benefit from current high commodity market prices,
especially for sunflower seed and wheat.  We also believe that the
company will carefully calibrate its expansion capex."

"We could raise the long-term rating if we were to see a steady
and sustainable improvement in Agroton's operating performance.
Further rating upside could occur as a result of positive free
cash flow generation over the next two years," S&P stated.

"We could lower the rating if Agroton does not manage its
liquidity carefully while acquiring new land lease rights.  The
rating could also come under pressure from adverse market
conditions such as a drop in the market prices for wheat and
sunflower seed, which we believe would weigh on the company's
margins and cash flow generation," S&P related.


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


ADVANCED INTERIORS: Goes Into Administration, Taps Administrators
-----------------------------------------------------------------
Aaron Morby at Construction Inquirer reports that Advanced
Interiors has fallen into administration.

Richard Hawes and Julia Branson of Deloitte have been appointed
joint administrators and now manage the company' business affairs,
according to Construction Inquirer.

The report notes that the firm worked across the country on
commercial and leisure projects operating out of six offices
spread across the south.

Wokingham-based Advanced Interior is a leading suspended ceiling
and partitioning specialist.


BRITISH BOOKSHOPS: Creditors to Get Less Than 10% of Money Owed
---------------------------------------------------------------
Lisa Campbell at The Bookseller reports that British Bookshops and
Stationers' administrators said it can only pay back 8% to 10% in
every pound owed and expects the level of claims to increase.

The Bookseller, citing a document published on Companies House,
relates that the company owes more than GBP8.6 million to
unsecured creditors, which could rise further because it
"understates the likely level of claims."

The report, citing the document, relates that of the 92 suppliers,
21 claims on stock were settled, 34 rejected, and 37 were still
outstanding.

The Bookseller notes that more than GBP33,000 was spent on
consultancy fees and over GBP65,000 on paying restructuring
specialist GA Europe's management fee.  The report relates that
administrators have been paid on average GBP312 per hour since
BB&S went into administration.

As reported in the Troubled Company Reporter-Europe on Jan. 17,
2011, The Bookseller said that British Bookshops and Stationers
have gone into administration with recovery specialists Zolfo
Cooper appointed on Jan. 13, 2011.  No redundancies were made on
the appointment of joint administrators Simon Appell, Fraser Gray,
and Stuart Mackellar, according to The Bookseller.  The report
related that the business will continue to trade as normal.  The
Bookseller noted that rumors about the chain's future have been
circulating.  Book distributor MDL had stopped supplying the chain
since Jan. 13, 2011, over an unpaid bill, the report related.

British Bookshops and Stationers' history goes back to 1938 when
the first Sussex Stationers opened in Haywards Heath.  Brothers
Michael and Jonathan Chowen bought the shop in 1971 for GBP600 and
slowly expanded it to 50 shops throughout the Southeast,
incorporating books into the stock and renaming the chain British
Bookshops, Sussex Stationers.   The firm employs 300 people across
the south of England.


FLEET STREET: S&P Withdraws 'D' Rating on Class E Notes
-------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'D (sf)' and
withdrew, effective in 30 days' time, its credit rating on Fleet
Street Finance One PLC's class E notes.  "At the same time, we
withdrew our ratings on the class A, B, C, and D notes," S&P
stated.

The rating actions follow an interest shortfall experienced by the
class E notes before the issuer redeemed them together with the
other notes in the transaction.

QMH, the sole remaining loan backing the notes, fully repaid at
its maturity date on Feb. 23, 2011.  The cash manager applied the
loan proceeds to fully repay all the outstanding notes on the
following note interest payment date (IPD) on April 20, 2011.

"Although the borrower fully repaid its loan balance and the
interest accrued during the final period, we understand that the
issuer experienced an interest shortfall on the April note
interest payment date due to a timing mismatch between the loan
and the note payment dates.  We also understand that neither
the liquidity facility nor the basis swap were available to
mitigate this shortfall," S&P stated.

"The cash manager report indicated that the interest shortfall
affected only the class E notes; we believe the issuer generated
additional income from investing the loan repayment proceeds on a
short-term basis, pending the notes' redemption," S&P noted.

"Although the issuer has fully repaid the principal on the notes
and this is the transaction's first interest shortfall, we believe
the noteholders will never recover the outstanding interest.
Accordingly, we believe that the shortfall diminished the class E
notes' creditworthiness before their redemption," according to
S&P.

"Following a review, we lowered our ratings on the class E notes
to reflect this reduced credit quality and then withdrew our
ratings on all the notes following their redemption.  The rating
on the class E notes will remain at 'D (sf)' for 30 days before
the withdrawal becomes effective," S&P stated.

S&P continued, "At the time of the withdrawal, our ratings on the
class A, B, and C notes were on CreditWatch negative for
counterparty reasons." S

Three loans secured on 156 commercial real-estate properties in
the U.K. originally backed the transaction, which closed in August
2005.  It was the first European securitization that Goldman Sachs
International launched under its Fleet Street Finance mortgage
conduit platform.

Of the original loan pool, two loans (Four Seasons and Swift)
prepaid on the October 2006 and January 2007 interest payment
dates, respectively.  The remaining floating-rate loan, QMH, had
an outstanding balance of GBP99 million before redemption and was
secured on a portfolio of 14 hotels throughout the U.K.

Ratings List

Class            Rating
            To            From

Fleet Street Finance One PLC
GBP659.25 Million Commercial Mortgage-Backed Floating- And
Variable-Rate Notes

Rating Lowered and Withdrawn[1]

E           D (sf)        BB (sf)
            NR            D (sf)

Ratings Withdrawn

A           NR            AAA (sf)/Watch Neg
B           NR            AAA (sf)/Watch Neg
C           NR            AAA (sf)/Watch Neg
E           NR            D (sf)


FOCUS (DIY): Methven Loses 5% Sales From Focus' Collapse
--------------------------------------------------------
The National Business Review reports that Methven, New Zealand's
oldest and largest supplier of tapware, has lost 5% of its sales
from the receivership of one customer in the United Kingdom, Focus
(DIY) Ltd.

"We have estimated the immediate financial implications to be in
the range of a NZ$1.3 million to NZ$1.7 million reduction in
profit after tax, plus a non-cash intangible asset impairment in
the order of NZ$400,000 after tax," the company said, according to
NBR.

Focus represented 16% of Methven's UK sales and 5% of group sales
in the last financial year, NBR notes.

NBR says the UK market has been difficult and the company
appointed a new executive to head its business there late last
year.

Focus DIY Ltd went into administration on May 5, 2011.  The
company appointed Alan Hudson, Tom Jack, and Simon Allport of
Ernst and Young LLP as joint administrators under the Insolvency
Act 1986 following an application by the company's directors.

Focus DIY said the joint administrators intend to enable the group
to continue to trade while seeking a buyer for all or parts of the
business.   "Whilst in administration, the joint administrators
are ultimately responsible for the group.  However, the existing
management team will remain responsible for the day-to-day running
of the group," the company said in a statement.

"Focus has not ceased to trade and customers will be able to
continue shopping at Focus stores across the UK."

                           About Focus (DIY)

Focus (DIY) Ltd -- http://www.focusdiy.co.uk/-- was founded by
Bill Archer in 1987, with six stores in the Midlands and the north
of England.  The company has 178 stores in England, Scotland and
Wales, and employs more than 3,900 staff.


GLENKERRIN: City Pride Pub Redevelopment in Doubt
-------------------------------------------------
Sheena McKenzie at The Docklands reports that plans for a
landmark, the Canary Wharf development, become uncertain after
Glenkerrin went into receivership last week.

The U.K. branch of the company had been set to redevelop the site
of the City Pride pub in Westferry Road, according to The
Docklands.

A decision on the fate of Glenkerrin U.K. will be made on May 10.

The Dockets notes that Glenkerrin paid GBP64.9million for City
Pride's site and a linked site at Island Point further down
Westferry Road.  It planned to build 430 residential units at the
City Pride site and 189 at Island Point.

As reported in the Troubled Company Reporter-Europe on May 3,
2011, ealingtoday.co.uk reports that National Asset Management
Agency (NAMA) has asked for Glenkerrin, founded by former tiler
Ray Grehan, to be put into administration.  Glenkerrin currently
has a debt of EUR650 million owed to NAMA.  A separate TCR-EUR on
April 29, citing RTE News, reported 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
Independent.ie related that Mr. Grehan 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, Independent.ie disclosed.

Glenkerrin is the developer behind the Arcadia project in central
Ealing.


MG ROVER: Liquidators Make Biggest Payout Since Collapse
--------------------------------------------------------
Graham Ruddick at Telegraph reports that the liquidators of MG
Rover Group have made one of their biggest payouts to creditors
since the car maker collapsed.

According to Telegraph, newly filed documents at Companies House
show that GBP29.9 million was paid to unsecured creditors in
January, equivalent to 3.9p in the pound.

Receipts of the payout, the second-largest made by
PricewaterhouseCoopers since the company's liquidation began five
years ago, include MG Rover's former employees, Telegraph
discloses.

A total of GBP785 million of unsecured claims have been lodged and
a PwC spokesman said 10p in the pound had now been returned
through three primary payments, Telegraph relates.  However, the
overwhelming majority of the remaining debt is unlikely to be
repaid, Telegraph notes.

Headquartered in Birmingham, United Kingdom, MG Rover Group
Limited -- http://www1.mg-rover.com/-- produced automobiles under
the Rover and MG brands, together with engine maker Powertrain
Ltd.  Previously owned by Phoenix Venture Holdings, the company
faced huge losses in recent years, reaching GBP64.1 million in
2004, which were blamed on reduced sales.

MG Rover collapsed on April 8, 2005, after a tie-up with China's
largest carmaker, Shanghai Automotive Industry Corp., failed to
materialize.  Ian Powell, Tony Lomas and Rob Hunt, partners in
PricewaterhouseCoopers, were appointed as joint administrators.
The crisis left 6,000 people jobless, and caused a domino effect
on related businesses, particularly in the West Midlands.  Days
later, eight European subsidiaries -- MG Rover Deutschland GmbH;
MG Rover Nederland B.V.; MG. Rover Belux S.A./N.V.; MG Rover
Espana S.A.; MG Rover Italia S.p.A.; MG Rover Portugal-
Veiculos e Pecas LDA; Rover France S.A.S., and Rover Ireland
Limited -- were placed into administration.


NETPACK FULFILMENT: Placed into Voluntary Liquidation
-----------------------------------------------------
Business Cornwall reports that Otter House Group Limited has
placed subsidiary Netpack Fulfilment Ltd into voluntary
liquidation.

Business Cornwall relates that Otter House, which acquired the
Camborne-based company three years ago, said in a statement that
despite investing significant sums in the business, it was unable
to return it to profitability.

"A combination of increased competition in the fulfilment sector
and the recession has resulted in a shortfall in turnover and
significant ongoing losses," Otter House said, according to
Business Cornwall.

"In recent months, the financial outlook for the company has
deteriorated, and the directors undertook a further detailed
review.  Having concluded that the company was unlikely to achieve
profitability as a standalone business, attempts have been made to
find someone to take over the business.  However, after some
initial interest, this has proved to not be possible.

Francis Clarke has been hired to assist with the liquidation
process, the report adds.

Netpack Fulfilment Ltd. provides mail order processing, resource
fulfillment, mail distribution, telemarketing, response handling,
and donation handling services.  Netpack Fulfilment Ltd. was
formerly known as Netpack.  As a result of the acquisition of
Netpack by Otter House Group Limited, Netpack's name was changed
in August 2008.  The company was incorporated in 2008 and is based
in Penzance, United Kingdom.


PLYMOUTH ARGYLE: Signs Exclusivity Deal With Preferred Bidder
-------------------------------------------------------------
Insider Media Limited reports that Plymouth Argyle Football Club
administrator Brendan Guilfoyle from the P&A Partnership said an
exclusivity deal has been signed with a preferred bidder over the
sale of the company.

Mr. Guilfoyle said the identity of the preferred bidder could not
be revealed until June 14.  However, the report relates, Mr.
Guilfoyle did confirm that the mystery bidder is not anyone with a
previous connection to the club.

As reported in the Troubled Company Reporter-Europe on March 8,
2011, the High Court .placed Plymouth Argyle Football Club has
been placed into administration.  Brendan Guilfoyle, Christopher
White and John Russell of The P&A Partnership have been appointed
as administrators.  The TCR-Europe, citing The Guardian, reported
on March 3, 2011, that Plymouth Argyle directors have been warned
that the club needs an injection of around GBP3 million if it is
not to be placed into administration.  Peter Ridsdale, who is
acting as an independent adviser to Argyle's board, has told the
directors that the club does not have the money to meet its
liabilities and that they are "in denial" about the seriousness of
its problems, The Guardian related.

                      About Plymouth Argyle

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


POWERFUEL PLC: 2Co Energy Buys Powerfuel Power & CCS Project
------------------------------------------------------------
Bloomberg News reports that 2Co Energy Ltd acquired Powerfuel
Power Ltd. and its Hatfield carbon capture and storage project in
northern England.

Bloomberg notes that the South Yorkshire complex will be renamed
the Don Valley Power Project and generate 900 megawatts of low-
carbon electricity from 2015 with CCS technology fitted to it.

As reported in the Troubled Company Reporter-Europe on March 17,
2011, Bloomberg News said 2Co Energy Ltd., a British carbon
capture and storage company owned by private equity group TPG
Capital, emerged as the preferred bidder for Powerfuel Power Ltd.,
whose parent company is in administration.  Business Green relates
that financial services giant KPMG has been appointed as
administrator to oversee the sale of the company.

Powerfuel Plc is a Doncaster-based power group.


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


* Bank Bail-In Bonds May Help Avoid "Systemic Trauma," IIF Says
---------------------------------------------------------------
Simon Clark and John Glover at Bloomberg News report that the
Institute of International Finance lobby group said bank bail-in
bonds could help avoid the "systemic trauma" caused by the
disorderly failure of large financial firms.

Bloomberg says rules for bail-in securities would force bond
investors in failing banks to take losses so governments aren't
forced to tap taxpayer funds for bailouts.

According to Bloomberg, the IIF, which represents more than 400
financial firms from Citigroup Inc. to Credit Suisse Group AG,
wrote in a report published on Monday that national regulators
should agree to consistent rules on how to resolve failing banks.

"The general objectives of bail-in arrangements should be to
create conditions where any financial firm may be restructured in
an orderly failure in the event it is no longer able to meet its
obligations," Bloomberg quotes Credit Suisse Chairman Urs Rohner
as saying at a press conference in London on Monday.

Bloomberg relates that Gerry Cross, the IIF's deputy director of
regulation, said bail-in legislation would create a form of
Chapter 11 process for banks that would allow firms to gain time
in a restructuring by swapping debt for equity.  He said bail-in
laws would allow regulators to make banks convert bond liabilities
into equity, which they don't have to repay to investors,
Bloomberg notes.

"Bail-in can forestall precipitous loss of value and systemic
shock by recapitalizing the firm and allowing it to be
restructured," the IIF, as cited by Bloomberg, said in its report.
"The objective of any resolution tools should not be the survival
of a failing firm per se, but rather allowing firms to fail in an
orderly way without any cost to taxpayers."

According to Bloomberg, the IIF wrote in the report that bail-in
legislation needs to be coordinated internationally because
impairing the rights of bond investors raises different legal
questions across jurisdictions.


* Insolvent Countries Should Consider Debt Restructuring
--------------------------------------------------------
Radoslav Tomek at Bloomberg News reports that Slovak Finance
Minister Ivan Miklos said restructuring of state debt should be
part of the solution of fiscal problems in insolvent countries.

"The general principle is: if the country is facing liquidity
crisis, then a bailout helps," Bloomberg quotes Mr. Miklos as
saying at a press conference in Bratislava, Slovakia, on Monday.
"If there is a solvency crisis, debt restructuring should be part
of the solution."

Bloomberg notes that Mr. Miklos said he wasn't specifically
talking about Greece.


                            *********

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 * * *