TCREUR_Public/110512.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

             Thursday, May 12, 2011, Vol. 12, No. 93


C Z E C H   R E P U B L I C

SAZKA AS: Has Total Debt of CZK41.1 Billion


EUROPCAR GROUPE: Moody's Gives B2 Rating to Senior Secured Notes


GERRESHEIMER AG: Moody's Assigns (P)Ba1 Rating to Proposed Notes
HEIDELBERGCEMENT AG: Fitch Upgrades Long-Term IDR to 'BB+'
QIMONDA AG: Infineon Buys Dresden Assets for EUR100.6 Million


* GREECE: Debt Restructuring Won't Solve Problem, ECB Member Says
* GREECE: EU & IMF Rescue Auditors Launch New Probe
* GREECE: Must Sell Assets to Cover Debts, ECB's Bini Smaghi Says
* GREECE: Moody's Reviews 'B1' Ratings for Possible Downgrade
* GREECE: S&P Lowers Sovereign Credit Ratings to 'B/C'


VEGYEPSZER HUNGARIA: Seeks Bankruptcy Protection


KAUPTHING BANK: Can Appeal Decision on Tchenguiz Trust Claims
LANDSBANKI ISLANDS: Merrill, UBS to Advise Iceland Food Stake Sale


ELAN CORP: EDT Sale Prompts Moody's to Affirm 'B2' Rating


MELIORBANCA: Fitch Withdraws 'D' Individual Rating
PARMALAT SPA: Trustee Presses to Move Auditor Suits to State Court


AEG POWER: S&P Assigns 'B-' Long-Term Corporate Credit Rating
MESDAG CHARLIE: Fitch Downgrades Rating on Class E Notes to 'Dsf'
REFRESCO GROUP: Moody's Assigns 'B1' Corporate Family Rating
REFRESCO GROUP: S&P Assigns 'BB-' Long-Term Corp. Credit Rating


OLTCHIM: May Face Liquidation if Privatization Fails


AYT DEUDA: Fitch Upgrades Rating on Class C Notes to 'BBsf'
BBVA RMBS: Moody's Confirms 'Caa1(sf)' Rating on Class C Notes
CAJA MADRID: Fitch Retains RWN on 'B-' Preference Shares


TURKIYE SINAI: Fitch Affirms Issuer Default Ratings at 'BB+'

U N I T E D   K I N G D O M

AUTOQUAKE.COM: The Car Shop Acquires Firm's Assets
CROWNE PLAZA: Redefine International Acquires Hotel for GBP12.75MM
HURST TRANSPORT: Administrators Hope Property Sales Could Cut Debt
JAGUAR LAND ROVER: Moody's Assigns '(P)B1' Corporate Family Rating
JAGUAR LAND ROVER: S&P Assigns 'B+' Prelim. Corp. Credit Rating

JAGUAR LAND ROVER: Fitch Assigns 'BB-' LT Issuer Default Rating
JAGUAR LAND ROVER: Mulls Sale of High Yield Securities
NOWELLE: Set for Liquidation; To Appoint Griffins as Liquidators
R W FEATHER: Placed Into Voluntary Liquidation

* UK: Deloitte Sees Tough Times for Retailers in Wales


* Upcoming Meetings, Conferences and Seminars


C Z E C H   R E P U B L I C

SAZKA AS: Has Total Debt of CZK41.1 Billion
CTK, citing Prague's City Court spokeswoman Martina Lhotakova,
reports that the court on May 10 closed the list of creditors of
Sazka AS and set the final amount of claims on the firm,
registering 2,075 creditors whose claims total almost CZK41.1

The court is now handing the registrations of the claims over to
Sazka's receiver Josef Cupka who will assess whether they are
justified, CTK relates.  CTK says a number of the registered
claims are disputable and their validity will probably be decided
on by courts.  According to CTK, registration of claims on bonds
is important for the first creditor meeting on May 26 where a
creditor with the biggest percentage share of claims will have the
decisive word.

CTK notes that Mr. Cupka told daily Lidove noviny creditors will
have to decide about a restructuring or bankruptcy of Sazka.
"Creditors must make a decision on May 26 otherwise Sazka will end
operation," CTK quotes Mr. Cupka as saying.

The biggest claim on Sazka worth CZK8.1 billion was registered by
civic association Obcanske sdruzeni Zeleny ostrov, CTK discloses.

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.


EUROPCAR GROUPE: Moody's Gives B2 Rating to Senior Secured Notes
Moody's Investors Service assigned a B2 rating (LGD 4, 57%) to the
issuance of additional notes to the EUR 250 million 9,75% senior
secured notes issued in July 2010 and due 2017 to be issued by EC
Finance plc, a special purpose vehicle owned by a charitable trust
and guaranteed by Europcar International S.A.S.U., a subsidiary of
Europcar Groupe S.A.


   Issuer: EC Finance plc

   -- Senior Secured Regular Bond/Debenture, Assigned a range of
      57 - LGD4 to B2


The notes are being offered as additional notes under an indenture
dated as of June 2, 2010 pursuant to which the issuer issued
EUR250 million aggregate principal amount of 9.75% senior secured
notes due 2017.  The additional and the original notes will be
treated as a single class for all purposes under the indenture and
will benefit from a senior unsecured guarantee by the holding
Europcar International S.A.S.U., and will benefit from (i) a first
ranking pledge over the loans granted to Securitifleet Sarl, and
(ii) a second ranking pledge over loan receivables arising from
the advances to various Securitifleet companies, junior to the
claims of the new senior asset revolving credit facility.
Therefore the notes indirectly benefit from second ranking pledge
on fleet assets and receivables held by Securitifleet
subsidiaries, which value is protected by a loan to value

The B2 rating outcome for the senior secured notes reflects its
structural superior positioning as well as its relatively strong
security package compared to the outstanding subordinated secured
notes (rated B3) and the outstanding subordinated unsecured notes
(rated Caa1) both issued at the level of the holding company
Europcar Groupe S.A.  The instrument ranks junior relative to
sizeable senior asset revolving credit facility, as the new notes
are only secured on a second-lien basis (according to the terms of
the Intercreditor Agreement) on some fleet assets.  In addition,
the new senior secured notes rank junior relative to the EUR350
million revolving credit facility, which benefits from a
relatively stronger collateral package, considering its first-lien
collateral on bank accounts, other fleet receivables, trademarks
and share pledges, as well as guarantees by the majority of
Europcar's operating entities.

Europcar's B2 corporate family rating reflects (i) the company's
strong brand and market position in the key European rental car
markets based on a balanced level of segmental diversification in
the business, private and replacement market segments; (ii) a
solid degree of regional diversification enhanced by stable profit
contributions from its global franchise network; (iii) margin
protection from residual value risks of purchased cars due to a
substantial degree of buyback agreements; (iv) solid financial
flexibility with on-balance-sheet cash of around EUR349 million
(to some extent restricted) and sufficient availability under a
EUR350 million revolving credit facility.  Moody's further notes
that Europcar has proactively addressed its refinancing needs over
the last months by completing the early repayment of its senior
subordinated unsecured notes.  In addition, this approach is
evidenced by the arrangement of a EUR1.3 billion senior asset
revolving facility to refinance a bridge-to-asset facility; the
issuance of EUR250 million worth of senior secured notes in June
2010 and most recently of EUR400 million senior subordinated
unsecured notes for refinancing purposes.

While Europcar has been able to gradually improve its performance
in recent quarters, allowing a strengthening in credit metrics
more in line with requirements for the B2 rating category, Moody's
notes that the company remains challenged by continued inflation
of fleet holding costs.  Therefore, the agency believes that
ongoing pricing discipline in the industry will be required in
order to allow further improvements in profitability levels. In
addition, the ratings remain constrained by (i) Europcar's limited
absolute scale as evidenced in revenues of nearly EUR2 billion;
(ii) its highly leveraged capital structure; (iii) its exposure to
rising interest rates (though partially hedged) and to volatile
fleet purchase conditions, and (iv) limited ability to
sufficiently pass on cost inflation in the form of rising rental

The stable rating outlook is based on Moody's expectation that
Europcar's operating performance will further recover, as
reflected by an EBIT/interest coverage ratio above 1.0x, and an
improved debt/EBITDA ratio, towards 5.0x.

Moody's could downgrade the ratings over the coming quarters if:
(i) the company's EBIT/interest coverage ratio is falling back
below 1.0x; (ii) its debt/EBITDA ratio failing to remain below
6.0x (as adjusted by Moody's and impacted by seasonality); (iii) a
weakening of the company's solid liquidity cushion; or (iv)
fundamental changes in fleet purchase conditions.

Moody's could upgrade the ratings if Europcar returns to a track
record of growth in operating performance and credit metric
improvements, as evidenced by an EBIT/interest coverage ratio
above 1.3x for a sustained period or an improvement in the
company's debt/EBITDA ratio below 5.0x.

The principal methodology used in rating EC Finance plc was the
Global Equipment and Automobile Rental Industry Methodology,
published December 2010.

Headquartered in Paris, France, Europcar is a leading European
provider of short- to medium-term rentals of passenger vehicles
and light trucks to corporate, leisure and replacement clients.
Founded in 1949, Europcar has a global presence in over 150
countries, with a network of over 3,400 rental stations, of which
around 1,800 are directly operated by the group or agents.
Europcar directly operates in eight of the largest European
markets (the "corporate countries" of Germany, France, Spain, the
UK, Italy, Portugal, Belgium and Switzerland) but also in
Australia and New Zealand. In fiscal year 2010 Europcar generated
revenues of EUR 1.97 billion.


GERRESHEIMER AG: Moody's Assigns (P)Ba1 Rating to Proposed Notes
Moody's Investors Service has assigned a provisional (P)Ba1 (LGD4-
50%) rating to the notes issue proposed by Gerresheimer AG and
guaranteed by some of its major operating subsidiaries.  The
rating outlook is stable.


The notes will be issued by Gerresheimer AG, the ultimate holding
company of the Gerresheimer group, and have a maturity of up to 7
years.  Proceeds of the notes issue will be used to refinance
existing indebtedness and for general corporate purposes.

As the Gerresheimer group is financed primarily through senior
unsecured borrowings raised by Gerresheimer AG or the guarantors
of the proposed notes, there are only immaterial amounts of
secured or decentralized subsidiary borrowings in the capital
structure.  In addition, the notes will benefit from upstream
guarantees of Gerresheimer Glas GmbH, Gerresheimer Regensburg GmbH
and Gerresheimer Glass Inc. The latter two are major operating
subsidiaries which mitigates the risk of potential structural
subordination.  Gerresheimer AG and the guarantors are also the
borrowers and guarantors under the group's syndicated EUR400
million senior credit facility agreement.

The Ba1 instrument rating is in line with Moody's Loss-Given-
Default Methodology and reflects the pari passu ranking of the
proposed notes with the vast majority of the group's financial

Gerresheimer's Ba1 Corporate Family Rating takes into
consideration (i) the limited cyclicality of the company's end
markets which has historically allowed for fairly stable profit
margins, (ii) Gerresheimer's established market positions and
customer relationships in the pharmaceuticals industry, (iii)
significant barriers to entry as a substantial portion of revenues
comes from products that require customer validation processes
and/or regulatory approval (e.g. FDA or EMA), (iv) a clear
strategic focus on high growth niche markets for value-added
specialty packaging and (v) the balanced financial policy
demonstrated since the IPO in 2007.

At the same time, the rating also takes into consideration certain
risks and challenges.  In particular, Moody's cautions that
selective acquisitions are an integral part of Gerresheimer's
strategy, which might adversely impact credit metrics. Moreover,
Moody's expects M&A activity in the pharmaceutical sector to
continue as companies seek to alleviate pressure on revenues and
earnings from upcoming patent expiries.  This could potentially
also result in changes to the respective supplier base or
increased price pressure on suppliers such as Gerresheimer.  At
the same time Gerresheimer needs to maintain an innovative product
offering in order to defend its competitive position. Lastly,
Gerresheimer has a substantial exposure to potentially volatile
input costs (primarily energy and resin needs) which needs to be
successfully managed.

The stable rating outlook reflects Moody's expectation that
Gerresheimer will be able to maintain current profit margins and
continue to generate positive Free Cash Flow.  Moreover, the
rating incorporates Moody's expectation that leverage ratios will
remain at levels of close to 3x debt/EBITDA.  In addition, the
stable outlook assumes that management will maintain a balanced
approach towards shareholders and creditors interest, in
particular with view to potential M&A activity.

Positive rating pressure could build up if Gerresheimer were able
to further grow the business profitably and further reduce
leverage ratios, including achieving a debt/EBITDA ratio of 2.5x
on a sustainable basis.  However, an upgrade to Baa3 would also
require further evidence of a balanced financial policy on a long
term basis or a commitment by management to achieve ratios that
are in line with investment-grade levels.

Moody's could consider downgrading Gerresheimer if the group's
profitability were to come under pressure, resulting in negative
FCF and its debt/EBITDA ratio weakening to 3.5x or higher.
Smaller bolt-on acquisitions are incorporated into the rating.
However, negative rating pressure could also build if Gerresheimer
were to engage in larger transactions and fail to return to a
debt/EBITDA ratio of 3.0x in the intermediate term.

The principal methodologies used in this rating were Global
Packing Manufacturers: Metal, Glass, and Plastic Containers
published in June 2009, and Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.

Gerresheimer AG, with headquarters in Duesseldorf, Germany, is the
parent company of the Gerresheimer group, a leading producer of
specialty glass and plastic packaging solutions primarily for the
pharmaceutical and healthcare industry.  Revenues in the fiscal
year 2010 (ending November 2010) amounted to EUR1,025 million.
Currently, the company employs about 10,000 staff at 45 locations
in Europe, America and Asia.  Gerresheimer AG is publicly listed
and 100% of shares are in free-float.


   Issuer: Gerresheimer AG

   -- Senior Unsecured Regular Bond/Debenture, Assigned a range of
      50 - LGD4 to (P)Ba1

HEIDELBERGCEMENT AG: Fitch Upgrades Long-Term IDR to 'BB+'
Fitch Ratings has upgraded Germany-based HeidelbergCement AG's
(HC) Long-term Issuer Default Rating (IDR) and senior unsecured
ratings to 'BB+' from 'BB'.  The Outlook on the Long-term IDR is
Stable. HC's Short-term IDR has been affirmed at 'B'.

The upgrade reflects Fitch's view that HC will continue
deleveraging and its credit metrics will gradually improve.  The
agency believes that current market conditions will remain tough
in mature markets such as the US and Western Europe, while
emerging countries, especially in Asia, could see a better trend.
However, the continuous efforts regarding cost-control and working
capital management should allow HC to improve cash flow from
operations (CFO) in both 2011 and 2012.  The upgrade also reflects
HC's improved debt maturity profile and liquidity.

The Stable Outlook reflects the agency's view that expected credit
metrics over the next 24 months should provide sufficient headroom
for any moderate under-performance.

Fitch's latest forecasts for HC include a low single-digit revenue
increase in both 2011 and 2012, coupled with a modest EBITDAR
margin improvement.  Under this scenario, the agency expects HC to
maintain its free cash flow generation, notwithstanding the
expected increase in capex and dividends in the next 24 months.
The agency expects funds from operations (FFO) adjusted net
leverage to fall below 4.0x by FYE12.

At FY10, the group had available cash of EUR870 million, which is
adequate to meet the EUR844 million debt maturities due in 2011.
In addition, HC has EUR2.6 billion of committed undrawn credit
facilities.  At December 2010, FFO adjusted net leverage stood at
4.8x, based on Fitch's calculations (5.8x at FYE09).

HC is a heavy building materials company, with a leading global
position in aggregates and is among the top three global players
in cement and ready-mixed concrete.  It is geographically
diversified, with a presence in about 40 countries. In FY10, the
group reported revenue and EBITDAR (based on Fitch's calculations)
of EUR11.8 billion and EUR2.3 billion, respectively.

QIMONDA AG: Infineon Buys Dresden Assets for EUR100.6 Million
Philipp Grontzki at Dow Jones Newswires reports that Infineon
Technologies AG has bought real estate and manufacturing
facilities once owned by its former Qimonda unit for
EUR100.6 million.

Dow Jones relates that Infineon said the purchase covers cleanroom
and manufacturing facilities in the German city of Dresden as well
as 300-millimeter manufacturing equipment and is part of the
company's strategic capacity expansion.

                         About Qimonda AG

Qimonda AG (NYSE: QI) -- is a leading
global memory supplier with a diversified DRAM product portfolio.
The Company generated net sales of EUR1.79 billion in financial
year 2008 and had -- prior to its announcement of a repositioning
of its business -- approximately 12,200 employees worldwide, of
which 1,400 were in Munich, 3,200 in Dresden and 2,800 in
Richmond, Va.

Qimonda AG commenced insolvency proceedings in a local court in
Munich, Germany, on January 23, 2009.  On June 15, 2009, QAG filed
a petition (Bankr. E.D. Va. Case No. 09-14766) for relief under
Chapter 15 of the U.S. Bankruptcy Code.

Qimonda North America Corp., an indirect and wholly owned
subsidiary of QAG, is the North American sales and marketing
subsidiary of QAG.  QNA is also the parent company of Qimonda
Richmond LLC.  QNA and QR sought Chapter 11 protection (Bankr.
D. Del. Case No. 09-10589) on Feb. 20, 2009.  Mark D. Collins,
Esq., Michael J. Merchant, Esq., and Maris J. Finnegan, Esq.,
at Richards Layton & Finger PA, represent the Debtors.
Roberta A. DeAngelis, the United States Trustee for Region 3,
appointed seven creditors to serve on an official committee of
unsecured creditors.  Jones Day and Ashby & Geddes represent the
Committee.  In its bankruptcy petition, Qimonda Richmond, LLC,
estimated more than US$1 billion in assets and debts.  The
information, the Debtors said, was based on Qimonda Richmond's
financial records which are maintained on a consolidated basis
with Qimonda North America Corp.


* GREECE: Debt Restructuring Won't Solve Problem, ECB Member Says
Christian Vits at Bloomberg News reports that European Central
Bank Executive Board member Juergen Stark said a debt
restructuring wouldn't solve Greece's problems.

"Every euro member state must service its debt," Bloomberg quoted
Mr. Stark as saying in an interview with Germany's Bayerischer
Rundfunk.  "At the end of the day, a restructuring wouldn't be a
solution to the problems that Greece needs to overcome.  There are
structural problems and the budget needs to be brought under

According to Bloomberg, Mr. Stark said that Greece is "not
insolvent" and added that the current fiscal program is aimed at
regaining market access for the debt-laden country.

* GREECE: EU & IMF Rescue Auditors Launch New Probe
Agence France-Presse reports that European Union and International
Monetary Fund rescue auditors launched a new probe in Greece on
Tuesday amid a rising eurozone crisis over talk of debt
restructuring and a second bailout.

According to AFP, experts from the EU and IMF will decide if
Greece merits a critical new slice of rescue funding, just as a
top official at ECB warned that debt default or restructuring
would hit the entire eurozone.

A restructuring of debt would put Greece's banking system "on its
knees", the head of the Italian central bank Lorenzo Bini Smaghi
told Italian daily La Stampa, AFP discloses.

AFP relates that Mr. Smaghi, who sits on the ECB governing council
and is seen as a leading contender to be the next head of the
European bank, warned of "the contagion that a Greek disaster
would inflict on the rest of the eurozone."

The bailout for Greece, put in place a year ago as the result of a
deep rethink by EU policy makers and some U-turns by the ECB,
involves loans of EUR110 billion (US$157 billion) over three
years, AFP recounts.

The finance ministry in Athens said that the team from the EU, ECB
and IMF would stay for at least a week, AFP states.  It would meet
Greek Finance Minister George Papaconstantinou, Health Minister
Andreas Loverdos and Employment Minister Louka Katseli, AFP notes.

* GREECE: Must Sell Assets to Cover Debts, ECB's Bini Smaghi Says
----------------------------------------------------------------- reports that European Central Bank Executive Board
member Lorenzo Bini Smaghi said Tuesday that Greece is not
insolvent and can cover its debts by selling assets.

"Some people say that Greece is insolvent.  Greece is a rich
country.  They just have to sell their assets to repay their
debts," quotes Bini Smaghi as saying at a panel
debate at the Festival of Europe. relates that Bini Smaghi said while Greek
authorities have been slow to sell asses because "it is
politically difficult," any alternative would be politically even
tougher.  In a speech earlier Tuesday, says, Bini
Smaghi had described debt restructuring as "political suicide" and
once again ruled out the option.

"If you go through the exercise of what it would entail for the
local population, you realize that it is so dramatic that anything
that needs to be done to avoid this is certainly less costly," he
said, according to adds that Bini Smaghi also said that "the European
Union is a union based on law" and should "not create incentives
for people not to repay their debts."

* GREECE: Moody's Reviews 'B1' Ratings for Possible Downgrade
Moody's Investors Service has placed Greece's B1 local and foreign
currency government bond ratings on review for possible downgrade.

Moody's decision to initiate this review was prompted by:

(1) revisions to fiscal metrics, most notably the significant
    upward revision of the 2010 general government deficit;

(2) increased uncertainty about the sustainability of Greek
    sovereign debt in the context of potential delays in the
    achievement of fiscal consolidation targets; and

(3) concerns about the probability and the implications of a
    delayed and weaker economic recovery.

Moody's review will focus on the factors that will drive the
country's debt dynamics over the next few years.

Moody's says that a multi-notch downgrade is possible if it
concludes that there is large risk that Greece's debt metrics are
on an unsustainable path.  In Moody's view, such conditions would
materially increase the risk of debt restructuring over the short
to medium term.  Under such conditions, euro area policymakers
have stated that future loans from the Exchange Stability
Mechanism would be extended only if private creditors were to bear
some of the losses.  If the path of Greek debt-to-GDP were to
appear unsustainable, then Greece might itself have an incentive
to seek a change in the terms of its debt obligations.

Greece's country ceilings for bonds and bank deposits are
unaffected by the review and remain at Aaa (in line with the euro
area's rating).  At this point of time, however, due in large part
to systemic risk within Greece, the highest rated domestic issuer
or securitization is rated A3.


The Greek fiscal and economic reform package remains at least as
ambitious as it was when Moody's last reviewed the government's
rating.  Moody's continues to believe that the government will
face a very significant challenge in meeting the targets
stipulated by this package.  Additionally, Moody's notes a series
of recent setbacks that prompted it to initiate this review of
Greece's ratings.

First, Greece's 2010 general government deficit has come in at
10.5% of GDP, which is significantly higher than the levels
estimated by government and international observers earlier this
year.  This increase in the 2010 budget deficit relative to prior
expectations is due to higher-than-expected budget deficits at the
local government level and at government-owned hospitals, along
with generally disappointing tax and social contribution
collections due to the slowing of economic activity.

Second, when combined with ongoing difficulties in tax revenue
generation and collection, this larger 2010 deficit outcome raises
further questions about the government's ability to achieve the
deficit reduction target for 2011.

Third, Moody's is concerned about signs that the potential need
for an additional fiscal austerity program is likely to deepen and
prolong the recession and may further undermine domestic political
support for the reform program.


In light of the growing challenges that the Greek government's
economic and fiscal adjustment program faces, current market
sentiment as well as sustained commentaries about the likelihood
of a debt restructuring, Moody's views Greece's return to
financial markets in 2012 as increasingly unlikely.  Through
discussions with both the Greek government and the Troika, the
review will also attempt to ascertain the relevance of the
increasingly public discussion -- based in part on comments by
unnamed public officials with apparent in-depth knowledge of
ongoing discussions -- about different ways for the Greek
government to restructure its government debt (most of which would
be captured by Moody's default definition).  A restructuring could
come about either due to a unilateral action on the part of
Greece, or through a framework jointly developed by Greece and the
Troika, perhaps in the context of the provision of additional
official support through the ESM in 2013.  The Troika's decision
about whether or not to support or require a restructuring may
depend, in part, on the likely contagion effect of a Greek
restructuring on other European sovereigns, on the capital
strength of the ECB, and on Greek banks as well as non-Greek banks
with exposures to Greece.  Moody's ratings review will therefore
partly focus on the costs and benefits of a possible restructuring
of Greece's debts, as a supplement to Moody's debt sustainability

In addition, Moody's intends to closely review the feasibility of
the government's privatization plan, since it plays a key role in
the government's fiscal strategy for 2011-2015.  In Moody's view,
a successful execution of the government's privatization plan is
essential if the government is to achieve a sustainable debt
position.  Moreover, while the money raised through successful
execution will have a direct impact on the debt reduction program,
Moody's also believes that the Greek government's approach to
implementing this program is a valuable signal of its ability and
willingness to overcome broader political and institutional
challenges to the reform process.  During the review, Moody's will
assess the credibility of the privatization targets and consider
what steps the government plans to take to avoid the privatization
process being materially delayed by these factors.  State asset
sales realized during the review process could be considered
during the review process.

* GREECE: S&P Lowers Sovereign Credit Ratings to 'B/C'
Standard & Poor's Ratings Services lowered its long- and short-
term sovereign credit ratings on the Hellenic Republic (Greece) to
'B' and 'C', from 'BB-' and 'B'.  Both the long- and short-term
ratings remain on CreditWatch, with negative implications, where
they were first placed on Dec. 2, 2010, and March 29, 2011,
respectively.  On May 9, 2011, Standard & Poor's '4' recovery
rating for Greece remains unchanged--indicating an estimated 30%-
50% recovery upon default--and its 'AAA' transfer and
convertibility assessment for Greece, which applies to all members
of the eurozone, also remains unchanged.

"The downgrade reflects our view of increasing sentiment among
Greece's key eurozone official creditors to extend the debt
payment maturities of their EUR80 billion of bilateral loans
pooled by the European Commission.  As part of such an extension,
we believe the eurozone creditor governments would likely seek
"comparability of treatment" from commercial creditors in the form
of their similarly extending bond and loan maturities," S&P

"Such private sector burden sharing would likely constitute a
distressed exchange according to our criteria, for which we assign
a rating of 'SD' for selective default.  Even if there were no
discount of principal, such an extension of maturities is
generally viewed to be less favorable to commercial creditors than
repayment according to the original terms of the debt," S&P

Standard & Poor's sovereign ratings address the capacity and
willingness of a sovereign to pay its commercial debt.  "A
rescheduling of official debt that left commercial debt untouched
would not constitute a default under our criteria but would likely
signal declining creditworthiness," S&P said.

"In Standard & Poor's statement on Greece on March 29, 2011, we
said that we could lower our ratings on the Republic if either the
2010 final budgetary outcome or 2011 fiscal performance fell below
our expectations.  In fact, Greece missed its 2010 fiscal target
(10.5% of GDP outturn versus 9.6% target) and achieving the 2011
target is uncertain.  We believe that many of Greece's eurozone
official creditors have concluded that the ensuing higher
projected Greek government borrowing requirements have reduced the
likelihood that the Greek government will be able to return to
commercial markets for medium- and long-term issuance later this
year or early next year as originally planned.  Accordingly, they
may see a restructuring of official and commercial debt as
the best way forward," S&P mentioned.

"Although an extension of maturities with no principal discount
would likely imply a recovery greater than 50%, our projections
suggest that principal reductions of 50% or more could eventually
be required to restore Greece's debt burden to a sustainable
level, given trend growth potential of the Greek economy," S&P

Standard & Poor's intends to resolve its CreditWatch action within
the next three months.  "If we perceive that the likelihood of a
distressed exchange has increased further, the rating could be
lowered again.  Conversely, if Greece's eurozone partners exempt
commercial creditors from comparability of treatment while
extending maturities on their official debt, then our ratings on
the Hellenic Republic could stabilize at the current levels," S&P


VEGYEPSZER HUNGARIA: Seeks Bankruptcy Protection
MTI-Econews reports that Vegyepszer Hungaria on Monday submitted a
request for bankruptcy protection in order to give the company
time to find a way to repay its outstanding debts.

Vegyepszer Hungaria assumed HUF16 billion in short-term
liabilities from construction company Nemzetkozi Vegyepszer when
it spun off from the firm in February, MTI says, citing internet

According to MTI, Vegyepszer Hungaria attributed the company's
unpaid debt to financial difficulties stemming from the
contraction of the construction sector following the onset of the
global economic crisis in 2008.


KAUPTHING BANK: Can Appeal Decision on Tchenguiz Trust Claims
Omar Valdimarsson at Bloomberg News reports that the resolution
committee of Kaupthing Bank hf said the English Court of Appeals
granted permission to pursue an appeal against a decision to allow
the Tchenguiz Trusts to pursue claims.

As reported by the Troubled Company Reporter-Europe on March 18,
2011, the High Court of Justice of England and Wales on March 16
handed down its procedural decision on jurisdictional matters in
two cases brought by Rawlinson & Hunter Trustees S.A., as a
trustee of the Tchenguiz Discretionary Trust and the Tchenguiz
Family Trust.  The court's decision concerns applications made by
Kaupthing to have all claims made by TDT and TFT in the
two cases stayed pending determination of the same issues in
Iceland.  The applications were dismissed.  The only effect to
this judgment is that proceedings on the substantive claims can
commence in England without waiting for the outcome of parallel
proceedings which are already underway in Iceland.  The court
accepted that winding-up proceedings within the meaning
of the Directive 2001/24/EC on winding-up of credit institutions
were in place in Iceland after Nov. 22, 2010.  The merits of the
substantive claims made by the Trustee were not considered and, if
Kaupthing's appeal is successful, substantive proceedings before
the High Court of Justice will not go forward.  The claims in both
cases largely replicate claims that are already before the
Reykjavik District Court.  These claims were rejected by the
Winding-up Committee of Kaupthing in March 2010.  According to
Icelandic Bankruptcy law, final decisions in legal proceedings on
validity and amounts of disputed claims against an Icelandic
company in a winding-up procedure shall be taken by the Icelandic
courts.  On Feb. 10, 2011, the Reykjavik District Court decided
that the Icelandic proceedings should continue without regards to
the proceedings in England.  Should the English court proceed to
give a substantive judgment concerning the merits of the Trustee's
claims, such judgment will not have direct impact in Iceland nor
will it be binding on the Icelandic courts.  The Icelandic courts
will decide independently if the claims against Kaupthing are
valid.  Weil, Gotshal & Manges LLP, legal advisers to Kaupthing:

                        About Kaupthing Bank

Headquartered in Reykjavik, Kaupthing Bank -- is Iceland's largest bank and among
the Nordic region's 10 largest banking groups.  With operations in
more than a dozen countries, the bank offers a range of services
including retail banking, corporate finance, asset management,
brokerage, private banking, treasury, and private wealth
management.  Kaupthing was created by the 2003 merger of
Bunadarbanki and Kaupthing Bank.  In October 2008, the Icelandic
government assumed control of Kaupthing Bank after taking similar
measures with rivals Landsbanki and Glitnir.

As reported by the Troubled Company Reporter-Europe, on Nov. 30,
2008, Olafur Gardasson, assistant for Kaupthing Bank hf., filed a
petition under Chapter 15 of title 11 of the United States Code in
the United States Bankruptcy Court for the Southern District of
New York commencing the Debtor's Chapter 15 case ancillary to the
Icelandic Proceeding and seeking recognition for the Icelandic
Proceeding as a "foreign main proceeding" under the Bankruptcy
Code and relief in aid of the Icelandic Proceeding.

LANDSBANKI ISLANDS: Merrill, UBS to Advise Iceland Food Stake Sale
Alan Purkiss at Bloomberg News, citing the Financial Times,
reports that the resolution committee of Landsbanki Islands HF
appointed Bank of America Merrill Lynch and UBS AG to advise on
options for the bank's 67% stake in Iceland Foods Ltd.

According to Bloomberg, the newspaper said that the committee may
be seeking a valuation of Iceland Foods of GBP1.8 billion to GBP2
billion (US$2.9 billion to US$3.3 billion).

                     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.


ELAN CORP: EDT Sale Prompts Moody's to Affirm 'B2' Rating
Moody's Investors Service affirmed the B2 Corporate Family rating
of Elan Corporation plc and the B2 senior unsecured rating of
Elan's subsidiaries.  The rating outlook remains positive.

This rating action follows the announcement that Elan will sell
its Elan Delivery Technologies business to Alkermes, Inc. for
US$500 million in cash and a 25% ownership stake in Alkermes.  The
total consideration is valued at approximately US$960 million, and
is expected to close in the third quarter of 2011.

Ratings affirmed:

   Elan Corporation plc:

   -- B2 Corporate Family Rating

   -- B1 Probability of Default Rating

   Elan Finance plc:

   -- B2 [LGD 4, 66%] senior unsecured notes due 2013, guaranteed
      by Elan Corporation plc and subsidiaries

   -- B2 [LGD 4, 66%] senior unsecured notes due 2016, guaranteed
      by Elan Corporation plc and subsidiaries


The affirmation of Elan's ratings reflects the stated use of the
US$500 million of cash proceeds for debt repayment.  Following the
transaction, Moody's anticipates that Elan's gross debt levels
will decline by over 35%, from US$1.3 billion reported as of
March 31, 2011 to approximately US$800 million.  The transaction
also provides Elan with 31 million shares of Alkermes common
stock, which Elan is permitted to sell in increments after various
holding periods.

Notwithstanding the benefits of debt reduction, the transaction
significantly reduces Elan's business diversity and its operating
earnings, since Elan derived the majority of its EBITDA over the
last 12 months from the EDT business. On a pro forma basis, Elan
remains highly levered with debt/EBITDA in excess of 10 times for
the 12 months ended March 31, 2011.  However, Elan's EBITDA has
been rapidly improving due to growth in Tysabri sales and
moderation of R&D expenses.  Moody's B2 rating of Elan
incorporates its forward view that pro forma debt/EBITDA will
improve to under 7 times in 2011 and under 5 times in 2012.

Moody's expectations for Elan's improving EBITDA reflect the
continued positive performance of multiple sclerosis (MS) product
Tysabri, which Elan markets with Biogen Idec. Despite a rising
number of progressive multifocal leukoencephalopathy (PML) cases
-- a serious side effect impacting a small number of Tysabri users
-- Tysabri utilization and sales trends continue to be positive,
owing to its high efficacy.  Combined with moderating SG&A and R&D
expenses, Elan's adjusted EBITDA for its BioNeurology business is
on an upward trajectory, reaching US$35 million during the first
quarter of 2011.

Elan's B2 rating reflects the company's limited scale, high
product concentration risk and modest free cash flow, offset by
strong and rising sales of Tysabri.

The rating outlook remains positive, reflecting Moody's view that
Tysabri trends will continue to be positive and that Elan's EBITDA
and cash flow will improve.  The rating could be upgraded if
Moody's believes debt/EBITDA can be sustained below 4.0 times,
with solid free cash flow to debt of at least 15%.  Positive Phase
III data for bapineuzumab, Elan's Alzheimer's treatment, would
also support an upgrade.  Conversely, the rating could be
downgraded if Moody's believes that debt/EBITDA will be sustained
above 6.0 times, or if Tysabri sales significantly decline.

The principal methodology used in rating Elan was Moody's Global
Pharmaceutical Rating Methodology, published in October 2009.

Elan Corporation, plc [NYSE: ELN] is a specialty biopharmaceutical
company headquartered in Dublin Ireland, with areas of expertise
in neurological and autoimmune disease, and drug delivery
technology.  In 2010 the company reported approximately US$1.1
billion of total revenue.


MELIORBANCA: Fitch Withdraws 'D' Individual Rating
Fitch Ratings has affirmed Banca Popolare dell'Emilia Romagna's
(BPER) Long-term Issuer Default Rating (IDR) at 'A-' with a
Negative Outlook, Short-term IDR at 'F2', Individual Rating at
'C', Support Rating at '3' and Support Rating Floor at 'BB+'.  At
the same time, Fitch has upgraded BPER's subsidiary's
Meliorbanca's (Melior) Long-term IDR to 'A-' from 'BBB+' with a
Negative Outlook and its Support Rating from '2' to '1'.

BPER's ratings reflect its position as the third-largest
cooperative bank in Italy, the strong local franchises of its
subsidiaries and its moderate profitability, although this
compares well with its domestic peers.  The ratings also take into
account BPER's weak asset quality, only acceptable capitalization
and tightened liquidity.  The Negative Outlook reflects Fitch's
view that ratings will come under pressure if the bank does not
achieve its aim of strengthening capitalization as well as the
agency's view that higher funding costs could put pressure on the
recovery of profitability.  The upgrade of Melior's Long-term IDR
and Support Rating and the withdrawal of its Individual Rating
follow the completed reorganization of the bank and reflect the
integration of BPER's fully-owned subsidiary into the BPER group.

BPER's 2010 operating profit remained moderate, with an operating
return on average equity (ROAE) of 8.2% and operating return on
average assets (ROAA) of 0.6%, but compared well with other
domestic medium-sized banks.  Operating profit in 2010 benefited
from a sharp fall in loan impairment charges, which in the
previous year were affected by significant charges on Melior's
loan portfolio.  Net interest income and fees and commissions
remained flat despite 5% loan growth, as pressure on spreads
remained high.  Trading income suffered from valuation losses on
Italian government securities, particularly in Q410.  Net income
was underpinned by the disposal of non-core assets, which resulted
in a EUR138 million capital gain.  Fitch expects BPER's
profitability to continue to gradually improve, but higher funding
costs and the weakness of the economic recovery in Italy are
likely to remain a challenge.

BPER's asset quality remains weak, with gross impaired loans
reaching 10% of total gross loans at end-2010.  The deterioration
in asset quality slowed in 2010, reflecting the gradual economic
recovery and lower loan impairments at Melior.  Asset quality is
likely to improve only slowly, also as a result of the sluggish
recovery of the Italian economy.

Fitch considers BPER's capitalization only acceptable, given its
large stock of unreserved impaired loans.  In 2010, capital ratios
were negatively affected by an increase in risk weighted assets,
partly as a result of regulatory changes, and Fitch notes that
failure to improve capitalization would place ratings under

The rating actions are:

Banca Popolare dell'Emilia Romagna:

   -- Long-term IDR: affirmed at 'A-'; Negative Outlook

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

   -- Individual Rating: affirmed at 'C'

   -- Support Rating: affirmed at '3'

   -- Support Rating Floor: affirmed at 'BB+'

   -- Senior unsecured debt, including program ratings: affirmed
      at 'A-'/'F2'

   -- Subordinated notes: affirmed at 'BBB+'


   -- Long-term IDR: upgraded to 'A-' from 'BBB+'; Negative

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

   -- Individual Rating: affirmed at 'D' and withdrawn

   -- Support Rating: upgraded to '1' from '2'

   -- Senior unsecured debt: upgraded to 'A-' from 'BBB+'

PARMALAT SPA: Trustee Presses to Move Auditor Suits to State Court
Samuel Howard at Bankruptcy Law360 reports that the foreign
trustee overseeing Parmalat SpA's reorganization overseas and a
liquidating Parmalat financial unit on Monday sought to move to
Illinois state court their suits in New York implicating auditor
Grant Thornton International in the securities fraud class
litigation that bankrupted the Italian dairy giant.

Parmalat Capital Finance Ltd., a subsidiary undergoing liquidation
in the Grand Caymans, and Dr. Enrico Bondi, trustee and CEO of the
reorganized Parmalat, urged the federal court in New York, the
site of Parmalat-related multidistrict litigation, to abstain from
exercising jurisdiction.

                        About Parmalat S.p.A.

Headquartered in Milan, Italy, Parmalat S.p.A. -- sells nameplate milk products that can
be stored at room temperature for months.  It also has about 40
brand product lines, which include yogurt, cheese, butter, cakes
and cookies, breads, pizza, snack foods and vegetable sauces,
soups and juices.

Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.  Dr.
Enrico Bondi was appointed Extraordinary Commissioner in each of
the cases.  The Parma Court declared the units insolvent.

On June 22, 2004, Dr. Bondi, on behalf of the Italian entities,
sought protection from U.S. creditors by filing a petition under
Sec. 304 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No.

Parmalat's U.S. operations filed for Chapter 11 protection on
Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139).  Gary Holtzer,
Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP,
represented the U.S. Debtors.  When the U.S. Debtors filed for
bankruptcy protection, they reported more than US$200 million in
assets and debts.  The U.S. Debtors emerged from bankruptcy on
April 13, 2005.

Three special-purpose vehicles established by Parmalat S.p.A. --
Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food
Holdings Ltd. -- commenced separate winding up proceedings before
the Grand Court of the Cayman Islands.  Gordon I. MacRae and James
Cleaver of Kroll (Cayman) Ltd. were appointed liquidators in the
cases.  On Jan. 20, 2004, the Liquidators filed a Sec. 304
petition (Bankr. S.D.N.Y. Case No. 04-10362).  Gregory M. Petrick,
Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey,
Esq., at Janvey, Gordon, Herlands Randolph, represented the
Finance Companies in the Sec. 304 case.

The Honorable Robert D. Drain presided over the Parmalat Debtors'
U.S. cases and Sec. 304 cases.  In 2007, Parmalat obtained a
permanent injunction in the Sec. 304 cases.


AEG POWER: S&P Assigns 'B-' Long-Term Corporate Credit Rating
Standard & Poor's Ratings Services assigned its 'B-' long-term
corporate credit rating to Netherlands-based power solutions
provider AEG Power Solutions B.V. (AEG PS).  The outlook is

"The rating on AEG PS reflects our view of the company's highly
leveraged financial risk profile and vulnerable business risk
profile.  In our opinion, the rating is constrained by volatile
and late-cyclical demand for AEG PS's products, a limited planning
horizon, high customer concentration, and a strong dependence on
suppliers.  A further constraint, in our opinion, is AEG PS's
significant reliance on a rebound in the solar energy market for
future growth and profitability.  These constraints are partly
offset by AEG PS's good geographic diversification of revenues and
the low capital intensity of the business," S&P related.

"We anticipate that AEG PS's revenues will grow significantly in
2011, from EUR306 million in 2010.  However, we believe that the
company will have a high rate of cash burn over the next two
years, owing to its ability to generate only weak operating cash
flow.  The latter is a result of moderate sales volumes and the
negative effect on profitability of restructuring costs as part of
the company's "Agenda 2012" business realignment program.  In
addition, we view AEG PS's financial policy as aggressive in terms
of its expansion plans, which we estimate are likely to result in
total debt to EBITDA of about 5x by the end of 2011.  We consider
that this leverage makes the company highly vulnerable given the
volatility of the business, reflected in significant historical
swings in order intake, sales, and profitability," S&P stated.

"However, in our view, AEG PS will benefit from the current upturn
in the economy from 2011 and show a clear improvement in
profitability on the back of a larger number of contracts.  We
believe that this should support a rebound in sales and
profitability and credit metrics over the next two years.  We
estimate that AEG PS's currently negative free operating cash flow
should remain moderately negative in 2012, and turn positive after
2013 at the latest.  Although we consider leverage within 5x-6x
Standard & Poor's-adjusted debt to EBITDA and adequate liquidity
to be commensurate with the current rating, AEG PS's earnings
remain highly vulnerable to weakening economic conditions," S&P

"We could lower the rating if economic conditions were to weaken
and/or debt-financed activities were to adversely affect liquidity
and, subsequently, credit measures.  While we do not see any
immediate rating upside, we would consider raising the rating if
AEG PS's business position strengthened over the medium term. Such
strengthening would be demonstrated by a materially increased
contract base, higher operating profitability, and a more
conservative financial policy," S&P stated.

MESDAG CHARLIE: Fitch Downgrades Rating on Class E Notes to 'Dsf'
Fitch Ratings has affirmed Mesdag (Charlie) B.V.'s Class A, B, C
and D notes and downgraded the Class E notes:

   -- EUR295.1m Class A (XS0289819889) affirmed at 'AAsf'; Outlook

   -- EUR40.3m Class B (XS0289822677) affirmed at 'Asf'; Outlook

   -- EUR40.3m Class C (XS0289823568) affirmed at 'BBsf'; Outlook

   -- EUR35.5m Class D (XS0289824533) affirmed at 'CCsf'; Recovery
      Rating RR4

   -- EUR8.8m Class E (XS0289824889) downgraded to 'Dsf' from
      'CCsf'; RR6

The downgrade of the Class E notes reflects that as a result of a
loss allocation upon resolution of the defaulted EUR10.8 million
Schiphol loan, EUR2.1 million of the Class E notes are no longer
backed by loan collateral or accruing interest any longer.  The
affirmation of the other tranches results from the largely
unchanged performance of the remaining loans since the last rating
review in December 2010.

On April 15, 2011, the Schiphol loan was paid off against a
discount as agreed between the borrower and the special servicer
(Hatfield Philips International Limited, rated 'CPS2-'/'CSS3+'),
and based on the most recent valuation report.  All principal
payments, including scheduled amortization on performing loans,
are currently applied on a sequential basis, due to the payment
default and subsequent transfer to special servicing of the
Schiphol and EUR186.7 million Tor loans.

REFRESCO GROUP: Moody's Assigns 'B1' Corporate Family Rating
Moody's Investors Service has assigned a B1 corporate family and
probability of default ratings to Refresco Group B.V.
Concurrently, Moody's has assigned a (P)B1 rating to the proposed
issuance of EUR660 million senior secured notes by Refresco Group
B.V..  The outlook for the ratings is stable.

Moody's issues provisional ratings in advance of the final sale of
securities and these ratings only reflect Moody's preliminary
opinion regarding the transaction.  Upon a conclusive review of
the final documentation, Moody's will endeavor to assign a
definitive rating to the proposed notes.  A definitive rating may
differ from the provisional rating.


Moody's considers that Refresco is solidly positioned in the B1
rating category.  The B1 CFR reflects: (i) Refresco's position as
a leading producer of private-label soft drinks, and contract
manufacturer for national and international A-brands in Europe;
(ii) its enhanced geographic and product diversity, notably
following acquisitions in recent years; and (iii) adequate
liquidity profile after the proposed refinancing.

However, the rating is constrained by: (i) Refresco's moderate
scale in absolute terms (revenues of EUR1.2 billion and operating
profit of approximately EUR70 million in 2010, before exceptional
items); (ii) its high customer concentration; (iii) its narrow
margins compared with that of its peers; and (iv) exposure to
fluctuations in raw material prices, albeit mitigated by the
company's practice of purchasing raw materials to cover its sales
position when a contract is locked.

Overall, Refresco's credit metrics have been stable in 2010,
despite pressures on volumes and increased raw material prices,
especially towards the end of the year.  However, Moody's
considers the company's leverage to be high at around 4.8x in FYE
December 2010.  The rating agency further notes that there is a
degree of event risk because it expects the company to continue to
contribute to the consolidation of the industry, although recent
acquisitions have been financed with a portion of equity injected
by the equity owner 3i.

The (P)B1 (LGD4, 52%) rating assigned to the proposed EUR660
million senior secured notes to be issued by Refresco Group B.V.
is in line with the CFR.  The notes have a junior position in the
capital structure behind a EUR75 million senior secured revolving
credit facility (RCF) to be contracted by Refresco on or prior to
the issue date.  The secured notes and super senior RCF should
eventually be guaranteed on a senior basis by subsidiaries
representing at least 85% of the company's consolidated EBITDA and
assets.  At the issuance date, Refresco Iberia S.L., representing
around 15% of group consolidated pro forma EBITDA, will not be
guaranteeing the notes, but Moody's rating is based on the
assumption that, in the coming months, it will be added as a
guarantor, after its status be changed accordingly.  Both debt
instruments will also be secured on a first-priority basis over
the same security package, comprising share pledges, pledges over
certain bank accounts and charges over certain fixed assets and
real estate owned by the company.  However, in the event of an
enforcement of the collateral, the RCF would first receive payment
from the enforcement proceeds, which is why it is deemed to be
more senior to the secured notes.  The limited size of the super
senior RCF and the solid positioning of the company within the B1
category resulted in the senior secured notes rating to be aligned
with the CFR of B1.  A future increase of the amount of super
senior debt (currently EUR75 million) or the weakening of the
company's positioning within its rating category would likely lead
to a notching of the senior secured notes.

The stable outlook reflects Moody's expectation that Refresco's
focus in 2011 will be on integrating its recent acquisitions and
extracting cost efficiencies and synergies, as part of its "Buy
and Build" strategy.  To maintain the current rating and stable
outlook, Moody's would expect Refresco's adjusted (gross) debt-to-
EBITDA ratio to gradually reduce over time towards 4.5x, from its
level of 4.8x at the end of 2010.  In addition, the stable outlook
assumes that the company will maintain its adequate liquidity
profile, supported by modest positive free cash flow generation
and by comfortable headroom under its financial covenant attached
to the revolving credit facility.

Moody's notes that positive pressure on the rating could
materialize if there is a reduction in leverage, supported by an
increase in profits such that debt to EBITDA declines, on a
sustainable basis, below 4.5x.  Conversely, negative pressure
could develop on the rating if there is a deterioration in the
leverage ratio or the cash flow coverage metrics, illustrated, for
instance, by negative free cash flow generation or debt to EBITDA
increasing towards 5x.

The principal methodology used in rating Refresco Group B.V. was
the Global Soft Beverage Industry Methodology, published December
2009. Other methodologies used include Loss Given Default for
Speculative Grade Issuers in the US, Canada, and EMEA, published
June 2009.

Headquartered in Rotterdam, the Netherlands, Refresco is a leading
manufacturer of private-label soft drinks and juices, present in
nine countries across Europe.  The company also contract
manufactures products for national and international A-brands
(including PepsiCo, Coca-Cola, Orangina-Schweppes).  Refresco
posted revenues of EUR1.2 billion in 2010.

REFRESCO GROUP: S&P Assigns 'BB-' Long-Term Corp. Credit Rating
Standard & Poor's Ratings Services assigned its 'BB-' long-term
corporate credit rating to The Netherlands-based private-label
soft drink and fruit juice manufacturer Refresco Group B.V. The
outlook is stable.

"At the same time, we have assigned our 'BB-' issue rating to
Refresco's proposed EUR660 million senior secured notes, and a
recovery rating of '4' to this instrument, reflecting our
expectation of average (30%-50%) recovery for noteholders in the
event of a payment default," S&P related.

S&P continued, "The rating on Refresco reflects our view of its
significant debt leverage.  This is partly offset by our view of
Refresco's positive free operating cash flow generation capacity,
underpinned by the leading market positions of its pan-European

"We view Refresco's financial risk profile as aggressive,
reflecting its high level of indebtedness and its aggressive
financial policy resulting from the 2003 and 2006 leveraged
buyouts," S&P noted.

"We anticipate Standard & Poor's-adjusted debt leverage just above
4.5x for 2011, pro forma for the proposed notes issuance, followed
by moderate deleveraging to 4.0x-4.5x over the subsequent two
years," said S&P.

"However, we believe that Refresco will be able to continue to
generate positive free operating cash flow, which, in our opinion,
should enable it to gradually reduce leverage and make bolt-on
acquisitions without weakening its financial profile.  Our
assessment of Refresco's financial risk profile includes, in
particular, the assumption that the company will imminently
convert all existing preference shares into ordinary shares," S&P

According to S&P, "We view Refresco's business risk profile as
fair, reflecting what we see as stiff competition in the European
private-label food and beverage industry, as well as our view of
Refresco's fairly high customer concentration and its exposure to
raw material price fluctuations.  These factors are, in our
opinion, partly mitigated, however, by Refresco's good track
record in renewing contracts with retailers; the scale and
geographic diversification of its operations; and our
understanding of management's focus on cost efficiency, making
Refresco very competitive on prices--which we understand is key in
the private-label industry."

"The stable outlook reflects our view of Refresco's resilient
operating performance and positive free cash flow generation
capacity.  We view the company's adjusted debt leverage of close
to 4.5x and positive free cash flow generation as adequate for the
'BB-' rating," S&P stated.

An upgrade would be possible if Refresco were to achieve and
maintain a ratio of Standard & Poor's-adjusted debt to EBITDA of
below 4.0x through continuous free cash flow generation and higher
EBITDA growth than S&P currently anticipates in its base-case

"The rating could come under pressure in the event of a weakening
of Refresco's free operating cash flow, particularly as a result
of a sharp increase in raw material prices--which we consider a
principal operating risk for Refresco's profitability--or of
higher investment levels than we currently anticipate. We
could also lower the rating if Refresco were to make credit-
dilutive acquisitions," S&P noted.


OLTCHIM: May Face Liquidation if Privatization Fails
Oltchim will be liquidated if the government fails to privatize it
by the end of the year, reports, citing a draft letter
agreed on May 3 between local authorities and the International
Monetary Fund.

The document includes an agenda of extremely short deadlines for
the privatization of Oltchim, and should the measures fail the
company will be privatized, discloses. notes that in the draft letter, Romanian authorities
pledged to appoint legal advisor by end-June, an investment bank
for privatization by end-September.  According to, the
government envisages "the completion of the tender by end-2011."

In addition, the government commits to find a solution for
Oltchim's debts within the next several months,

"If the privatization is unsuccessful by the end of 2011, the firm
will be placed in liquidation," the document concludes on Oltchim,
according to

The chemical plant has concluded the first quarter this year with
a loss of RON2.64 million (EUR646,000), significantly narrower
than RON52.8 million in the same period of 2010,

Oltchim has a share capital of RON34.3 milion, divided into 343
million shares with a face value of RON0.1, says.  The
stock is 54.7% owned by the economy ministry, while German-
registered PCC holds a 12.1% stake, discloses.
Carlson Ventures International has recently raised its stake in
Oltchim to 11.92%, recounts.

Oltchim is a Romanian chemical company.  The chemical plant has
some 3,500 employees.


AYT DEUDA: Fitch Upgrades Rating on Class C Notes to 'BBsf'
Fitch Ratings has downgraded AyT Deuda Subordinada I, FTA's class
A notes and upgraded the class B and C notes:

   -- EUR214.5m Class A (ISIN: ES0312284005): downgraded to
      'BBB+sf' from 'Asf'; Outlook Stable; Loss Severity Rating is

   -- EUR60.7m Class B (ISIN: ES0312284013): upgraded to 'BBBsf'
      from 'BBB-sf'; Outlook Stable; Loss Severity Rating is 'LS1'

   -- EUR22.8m Class C (ISIN: ES0312284021): upgraded to 'BBsf'
      from 'BB-sf'; Outlook Stable; Loss Severity Rating is 'LS2'

AyT Deuda Subordinada I, FTA is a cash flow securitization of
subordinated bonds to provide funding for nine Spanish financial
institutions.  The transaction has an expected bullet maturity in
November 2016.

The downgrade of the class A notes reflects the increased obligor
concentration in the portfolio following recent mergers of Spanish
financial institutions.  The rating of the class A notes is now
based on the rating of the largest obligor in the pool (Banco Mare
Nostrum Group; 'BBB+'/Stable) as this obligor currently represents
48% of the pool volume.  A default of this obligor would consume
the 46% credit enhancement (CE) available to the class A notes.

Fitch has calculated CE figures with respect to the collateral
assets so that CE equals the ratio of the difference between the
sum of collateral available to the notes (including principal
collections in the period and delinquent and defaulted assets, as
well as any cash reserve or credit facility) and sum of the
balances of all classes pari-passu or senior to the referenced
class for which CE is being calculated, over the sum of all assets
of the transaction.

Fitch does not expect any recoveries under any investment-grade
(IG) scenario given the subordinated nature of the assets.  The
agency therefore assumes that any defaults will directly translate
into losses for the transaction.

The upgrade of the class B and C notes reflects Fitch's view that
both classes of notes are able to withstand the default of
multiple IG assets in the pool (with just one exception).  The
current weighted average rating (WAR) of the portfolio is 'A-
'/'BBB+' compared to 'BBB'/'BBB-' as of the last review in April

Fitch considers the class C notes speculative given the
uncertainty around the future composition of the collateral
portfolio, notwithstanding the overall improved WAR.  Fitch
believes there are still significant challenges ahead for the
Spanish cajas sector, which could result in further consolidation
of the assets and, potentially, rating volatility.  The class C
notes would be most susceptible to any credit deterioration in the
portfolio, given their subordinated status.

Fitch has assigned a Stable Outlook to all three classes as the
agency does not expect changes to the above uncertainty factors
and the WAR in the short term.

The agency assigned an issuer report grade (IRG) of two stars
("Basic") to the investor reports of the transaction.  This IRG
reflects the absence of several reporting items considered
important by Fitch (ie an explanation of the interest deferral
mechanism and associated calculations).

BBVA RMBS: Moody's Confirms 'Caa1(sf)' Rating on Class C Notes
Moody's Investors Service has upgraded the ratings of BBVA RMBS 4
FTA's class A notes and confirmed the ratings of class B and C.
These rating actions follow Moody's review of the recent
structural changes to BBVA RMBS 4 and concluded that these
amendments have positive or neutral impact on the ratings:

   -- EUR2,740M A1 Certificate, Upgraded to Aaa (sf); previously
      on Apr 19, 2011 Aa3 (sf) Placed Under Review Direction

   -- EUR960M A2 Certificate, Upgraded to Aaa (sf); previously on
      Apr 19, 2011 Aa3 (sf) Placed Under Review Direction

   -- EUR1,050.5M A3 Certificate, Upgraded to Aaa (sf); previously
      on Apr 19, 2011 Aa3 (sf) Placed Under Review Direction

   -- EUR41.7M B Certificate, Confirmed at Baa3 (sf); previously
      on Apr 19, 2011 Baa3 (sf) Placed Under Review Direction

   -- EUR107.8M C Certificate, Confirmed at Caa1 (sf); previously
      on Apr 19, 2011 Caa1 (sf) Placed Under Review Direction


In October 2010, Moody's downgraded the ratings of all notes of
BBVA RMBS 4 following the review of the transaction that showed
worse-than-expected performance of the collateral.  In April 2011,
the ratings of all notes were placed on review direction uncertain
following an internal review after the discovery of an input error
in the cash flow model.

The rating action concludes the review of the input error and
takes into consideration the recent structural changes. The
structural amendments relates to an increase in credit enhancement
by increasing the size of reserve fund.  The increase in the
reserve fund will be funded by a subordinated loan granted by BBVA
for an amount equal to EUR409,290,000 representing 12% of the
current outstanding balance of all the notes.  At every point in
time, the amount requested under the reserve fund will be the
lesser of these amounts:

  (i) EUR409,290,000,

(ii) The higher of these amounts:

      -- 24% of the outstanding balance of the notes

      -- EUR204,645,000

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

Portfolio Expected Loss:

BBVA RMBS 4 is still performing in line with the assumptions that
were revised in October 2010 following the review of the
transaction.  Cumulative write-offs rose to 2.56% of original pool
balance in January 2011, up from 2.13% a year earlier.  The share
of 90+ day arrears was 0.73% at the end of January 2011.

Moody's updated its lifetime loss expectation taking into account
the collateral performance as of October 2010, as well as the
current macroeconomic environment in Spain.  Moody's expects the
portfolio's credit performance to continue to be under stress, as
Spanish unemployment remains elevated.  Moody's believes that the
anticipated tightening of Spanish fiscal policies is likely to
weigh on the recovery in the Spanish labor market and further
constraint Spanish households finances.  Moody's also has concerns
over the timing and degree of future recoveries in a weaker
Spanish housing market.  On the basis of the rapid increase in
defaults in the transaction and Moody's negative sector outlook
for Spanish RMBS, the portfolio expected loss assumption is 2.71%
of original pool balance.


Moody's assessed the loan-by-loan information for BBVA RMBS 4 in
October 2010 to determine the MILAN Aaa CE of 10.50%.  The
increase in the MILAN Aaa CE reflected concentration of mortgage
loans originated via brokers (15%); loans granted to non-national
borrowers (6.95%); and the uncertainty generated by rising
systemic risk and the deteriorating Spanish economic environment.
It also considered the exposure to special mortgage products
features such as semi-bullet loans (having the possibility of a
last installment of 10/30% of the loan amount), as well as loans
that could enjoy a payment holidays (78%).

The rating addresses the expected loss posed to investors by the
legal final maturity of the notes.  In Moody's opinion, the
structure allows for timely payment of interest and principal with
respect of the notes by the legal final maturity.  Moody's ratings
only address the credit risk associated with the transaction.
Other non-credit risks have not been addressed, but may have a
significant effect on yield to investors.


BBVA RMBS 4 closed in November 2007.  The transaction is backed by
a portfolio of first-ranking mortgage loans originated by Banco
Bilbao Vizcaya Argentaria (Aa2/P-1).  The loans were originated
between 2000 and 2007, with current weighted average loan-to-value
standing at 67%.  As mentioned above, a significant share of the
securitized mortgage loans was originated via brokers and loans to
non-Spanish nationals are also included in the pool.  BBVA acts as
servicer, paying agent and swap counterparty to the transactions.

Commingling and operational risk: Moody's notes that the
transaction documentation contains a trigger for the appointment
of a back-up servicer.  All of the payments under the loans in
this pool are collected by the servicer under a direct debit
scheme, whereby payments are deposited into the collection account
held at BBVA and then transferred to the reinvestment account on a
monthly basis. Upon the loss of BBVA's Prime-1 rating, collections
will be transferred on a daily basis.

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

   -- The Fondo will pay the amount of interest actually received
      from the loans; and

   -- BBVA will pay the sum of (1) the weighted average coupon on
      the notes plus 50 bppa, over a notional calculated as the
      daily average outstanding amount of the loans not more than
      90 days in arrears and (2) the servicing fee due on such
      payment date

The principal methodology used in this rating was Moody's Approach
to Rating RMBS in Europe, Middle East, and Africa published in
October 2008.

Other methodologies used in this rating were Moody's Updated
Methodology for Rating Spanish RMBS published in July 2008, Cash
Flow Analysis in EMEA RMBS: Testing Features with the MARCO Model
(Moody's Analyser of Residential Cash Flows) published in January
2006, Moody's Approach to Automated Valuation Models in Rating UK
RMBS published in August 2008, A Framework for Stressing House
Prices in RMBS Transactions in EMEA published in July 2008 and
Global Structured Finance Operational Risk Guidelines: Moody's
Approach to Analyzing Performance Disruption Risk published in
March 2011.

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.

CAJA MADRID: Fitch Retains RWN on 'B-' Preference Shares
Fitch Ratings has affirmed Caja de Ahorros y Monte de Piedad de
Madrid (Caja Madrid) and Caja de Ahorros de Valencia, Castellon y
Alicante's (Bancaja) senior debt issues and removed them from
Rating Watch Negative (RWN).

The rating action follows Banco Financiero y de Ahorros Group's
(BFA Group) disclosure of the debt issues that will remain at
Banco Financiero y de Ahorros, S.A. (BFA).  This is part of the
group's planned reorganisation announced on April 5, 2011.

Under the reorganisation, BFA will become a holding company and
will transfer the bulk of its banking assets and liabilities to
its subsidiary, Altae Banco S.A., which will subsequently be
renamed Bankia, S.A. (Bankia).

The removal from RWN reflects Fitch's current expectation that any
senior unsecured debt that is transferred to Bankia is likely to
be rated 'A-'.  This is in line with the Support Rating Floor that
was assigned to BFA Group before it announced its reorganisation
plans, given its systemic importance in Spain.

Subordinated debt and preference shares issued by Caja Madrid,
Bancaja and Caixa d'Estalvis Laietana (Caixa Laietana) remain on
RWN as these debt classes will remain at BFA.  In Fitch's view,
the group's restructuring plans are likely to be detrimental for
the unguaranteed liabilities that remain with BFA compared to
their position now or if they were they transferred to the banking
subsidiary, Bankia.  Fitch will resolve the RWN on BFA's ratings
and the debt issued once the transaction is completed All other
ratings are unaffected by the rating actions.

The rating actions are:

BFA Group:

   -- Long-term IDR unaffected at 'A-', Stable Outlook

   -- Short-term IDR unaffected at 'F2'

   -- Individual Rating unaffected at 'D'

   -- Support Rating unaffected at '1'

   -- Support Rating Floor unaffected at 'A-'


   -- Long-term IDR of 'A-' remains on RWN

   -- Short-term IDR of 'F2' remains on RWN

   -- Support Rating of '1' remains on RWN

   -- Support Rating Floor of 'A-' remains on RWN

Caja Madrid:

   -- Long-term IDR unaffected at 'A-', Stable Outlook

   -- Short-term IDR unaffected at 'F2'

   -- Short-term debt and commercial paper of 'F2' removed from
      RWN and affirmed

   -- Senior unsecured debt of 'A-' removed from RWN and affirmed

   -- Market linked securities of 'A-emr' removed from RWN and

   -- Subordinated debt of 'BBB+' remains on RWN

   -- Preference shares of 'B-' remains on RWN

   -- Government-guaranteed debt unaffected at 'AA+'


   -- Long-term IDR unaffected at 'A-', Stable Outlook

   -- Short-term IDR unaffected at 'F2'

   -- Short-term debt of 'F2' removed from RWN and affirmed

   -- Senior unsecured debt of 'A-' removed from RWN and affirmed

   -- Subordinated debt of 'BBB+' remains on RWN

   -- Upper Tier 2 of 'B' remains on RWN

   -- Preference shares of 'B-' remains on RWN

   -- Government-guaranteed debt unaffected at 'AA+'

Caixa Laietana:

   -- Long-term IDR unaffected at 'A-', Stable Outlook

   -- Short-term IDR unaffected at 'F2'

   -- Preference shares of 'B-' remains on RWN

   -- Government-guaranteed debt unaffected at 'AA+'

Caja de Ahorros y Monte de Piedad de Avila and Caja de Ahorros y
Monte de Piedad de Segovia:

   -- Government-guaranteed debt unaffected at 'AA+'


TURKIYE SINAI: Fitch Affirms Issuer Default Ratings at 'BB+'
Fitch Ratings has affirmed Turkiye Sinai Kalkinma Bankasi A.S.'s
(TSKB) Long-term Issuer Default Ratings (IDR) at 'BB+' with a
Positive Outlook.

TSKB's ratings reflect the support it could expect to receive from
its 50.1% shareholder, Turkiye Is Bankasi A.S. (Isbank; 'BBB-
'/Positive), if needed.  TSKB's Individual Rating reflects its
well-established track record, healthy asset quality (impaired
loans stood at just 0.6% of end-2010 loans), sound capitalization,
good access to long-term funding and niche franchise, as Turkey's
largest development and investment bank.

TSKB's core businesses are medium and long-term corporate lending
and project finance to support key sectors of the local economy,
notably energy.  The bank also lends to SMEs under specialized
schemes.  Loan demand is picking up as Turkey's economy improves,
and demand for capital markets advisory services is strong.  TSKB
is well placed to take advantage of this growth.

Turkish government securities (28% of end-2010 assets) generate a
sizeable proportion of operating results; the portfolio also
provides liquidity.  Loan margins experienced some compression in
2010, reflecting fierce competition.  However, as Turkish risk
improves, funding costs have also reduced and operating
profitability remains sound.  Most of TSKB's long-term funding,
obtained largely from supranationals, is guaranteed by the Turkish

TSKB is exposed to interest-rate risk, mainly on its fixed-rate
Turkish lira-denominated government securities portfolio.  The
weighted average duration of this portfolio is 11 months and the
bank hedges interest rate positions where possible. Internal
stress limits tolerate a 3% maximum impact on equity arising from
stressed interest-rate movements.  FX positions are well matched,
aided by swaps.

TSKB is unusual among Turkey's banks in that its results are more
affected than its peers by the operating environment as demand for
long-term investment dries up in times of recession or
uncertainty.  Measures affecting commercial banks, such as the
significant rise in reserve requirements introduced by regulators
since H210, are less of a concern, as the bank is not deposit-
funded. Liquidity is comfortable, assets and liabilities are well
matched in terms of maturity, and capital adequacy is robust, even
under proposed Basel II guidelines (standardized approach).

TSKB is strategically important to Isbank; Fitch considers that
TSKB would obtain support from Isbank if needed.  If Isbank's
Foreign-Currency Long-Term IDR is upgraded to 'BBB', its ability
to provide this support will be viewed as high, and TSKB's Support
Rating may be raised to '2'.

TSKB's IDRs are notched from Isbank's, and will be upgraded if and
when Isbank's IDRs are upgraded.  Upside potential for the
Individual Rating is limited, given the bank's specialized
business focus.

TSKB was established in 1950 to provide Turkish companies with
long-term financing and develop local capital markets.

The rating actions are:

  -- Long-term foreign currency and local currency IDR: affirmed
     at 'BB+' with Positive Outlooks

  -- Short-term foreign currency and local currency IDR: affirmed
     at 'B'

  -- Individual Rating: affirmed at 'C/D'

  -- Support Rating: affirmed at '3'

  -- Long-term National rating: affirmed at 'AA+(tur)' with
     Stable Outlook

U N I T E D   K I N G D O M

AUTOQUAKE.COM: The Car Shop Acquires Firm's Assets
WhatCar? reports that The Car Shop has bought the online
technology of

Visitors to are now automatically redirected to, according to the report.  WhatCar? relates that
Autoquake went into administration in March, after a shortage of
funds forced it to pull the plug on its virtual showroom. was established in 2005, and grew into one of the
leading online sellers.  Last year its website received over 5.5
million visits.

CROWNE PLAZA: Redefine International Acquires Hotel for GBP12.75MM
Property Magazine reports that Redefine Hotels Reading Limited
(RHR) has acquired, among others, Caversham Hotel Thames Side
Promenade Reading and the leasehold on which the hotel is situated
from Pedersen (UK) Limited for GBP12.75 million.

The hotel was originally opened in 1979 and was extensively
refurbished in 2005 when it was branded a four star Crowne Plaza
hotel under a franchise agreement with Six Continents Hotels Inc,
according to Property Magazine.  The franchise agreement expires
in June 2025.  Property Magazine notes that RHR will enter into a
new franchise agreement with Six Continents Hotels Inc on similar
terms to the existing agreement.

The report says that the hotel forms part of a portfolio of 4
hotels that was placed into administration in 2010 and that have
now been brought to the market individually by the administrators.

Property Magazine discloses that the effective date of the
transaction will be the later of June 1, 2011 or two business days
after the date on which all of the conditions as set out below
have been satisfied or waived.

Property Magazine notes that it is intended that the purchase
price of GBP12.75 million (inclusive of the deposit) plus
transaction costs of GBP0.80 million, will be funded as:

   * Debt of GBP7.65 million has been secured on favorable terms
     from Aareal Bank AG.

   * Bashir Hakanmali Nathoo, Enderle International Limited and
     Corovest Mezzanine Capital Limited will subscribe for, in
     aggregate, approximately GBP5.7 million, in Redefine Hotel
     Holdings Limited, reducing the Company's 77.82% shareholding
     in RHH to approximately 71.04%.

   * The balance of approximately GBP0.2 million will be funded
     using internal cash resources of the Company.

After implementation of the transaction, RHR has agreed, at its
sole cost and expense, to enter into a new franchise agreement
with Six Continents Hotels Inc. to operate the hotel as a Crowne
Plaza Hotel in place of the seller, Property Magazine adds.

Caversham Hotel Thames Side Promenade Reading s well located close
to the town centre of Reading on the banks of the River Thames.

HURST TRANSPORT: Administrators Hope Property Sales Could Cut Debt
Joanna Bourke at reports that the administrators
of Hurst Transport are hoping property sales will help lessen the
firm's GBP1.82 million deficiency.

According to, the company had GBP561,000
available to pay the 79 staff it made redundant and other
preferential creditors when it appointed Ian Green and Chris
Rooney of PricewaterhouseCoopers joint administrators on March 31.

However, notes, there were limited funds left
for unsecured claimants, including GBP399,000 owed to trade
creditors and GBP865,000 for the company voluntary arrangement
(CVA) it entered in 2009. relates that the firm
left a total deficiency of GBP1.82 million on April 8.

"The principal asset of the business is the property that is being
marketed for sale, but this will take a number of months to be
sold.  Accordingly, it is too early to conclude on the final
outcome of any deficiency, but we do not expect any funds to be
available to the non-preferential creditors. We will be writing to
the creditors of the company shortly," quotes
Mr. Rooney as saying.

Hurst Transport is a Lincolnshire-based haulier.

JAGUAR LAND ROVER: Moody's Assigns '(P)B1' Corporate Family Rating
Moody's Investors Service has assigned a provisional Corporate
Family Rating (CFR) and Probability of Default Rating (PDR) of
(P)B1 as well as a stable outlook to Jaguar Land Rover as well as
provisional (P)B1 ratings for Jaguar Land Rover's planned note

The provisional ratings could be changed into definite ratings
upon a successful refinancing.


JLR's (P)B1 corporate family rating reflects: (i) its small scale
as a niche player with a currently limited product range and
materially less financial strengths than other premium car
manufacturers; (ii) the strong focus on the mature markets of
Europe and North America (together 67% of unit sales) and to the
growing Chinese market (10.6% of unit sales); (iii) challenges to
meet the required emission and fuel consumption levels in Europe
and the US for its model range; (iv) the expectation of a sizeable
increase in capex and research & development expenditure for the
envisaged model expansion, which will burden free cash flow
generation in the short to medium term; (v) the cyclical industry
with high fixed costs; (vi) a high foreign exchange rate exposure;
and (vii) the limited track record of growth and profitability.

However, JLR's (P)B1 corporate family rating also reflects certain
positives: (i) the company's strong brand names and design teams,
which JLR can lever for the launch of new products; (ii) a
moderate estimated leverage of 1.7x adjusted debt/ EBITDA in FYE
2010/11 following a conversion of GBP1 billion preference shares
into common shares and a bond issue of GBP1 billion; and (iii) the
commitment of its sole shareholder Tata Motors to support Jaguar
Land Rover.

The rating benefits from Moody's understanding that JLR's ultimate
parent Tata Motors Limited will continue to support the business
plan and financial standing of JLR in line with previous practice.
Although, there is no legal obligation to back the debt of JLR,
Moody's nonetheless gains some comfort from the past when TML
converted GBP1.0 billion of preference shares (treated as debt by
Moody's) in JLR into equity (ordinary shares).  The strategic
importance and size of JLR relative to TML are strong arguments in
Moody's view for TML also to support JLR in the future should such
need become necessary.  Moody's notes that for the 9 month period
Apr.-Dec 2010 JLR generated around 60% of consolidated revenues
and about two-thirds of consolidated reported EBITDA and thus is
of considerable strategic importance to the group.

The stable outlook incorporates Moody's expectation that (i) JLR
will be able to successfully execute its product and geographic
expansion plan and; (ii) JLR receives the respective consumer's
acceptance of its products; (iii) negative free cash flow will be
less than GBP500 million p.a. for the next two years (which is
materially higher than JLR's estimate) and resulting in a only
moderate increase in debt levels and financial leverage compared
to FY2011 with adjusted Debt/EBITDA anticipated to remain below

Post bond issue, JLR has a good liquidity profile over the next 12
months.  Moody's expects the company to have total cash sources of
around GBP3.4 billion, comprising readily available cash, proceeds
from the bond issuance, funds from operations and an undrawn
revolver of GBP65 million.  In contrast, cash uses over the next
12 months amount to GBP2.6 billion and include capex, debt
repayments, cash for day-to-day operations and working capital.

The (P)B1 PDR for JLR is at the same level as the CFR as per
Moody's Loss Given Default Methodology.

JLR expects to apply the proceeds of GBP1 billion from the senior
unsecured notes to redeem GBP359 million of existing secured debt
and for the repayment of a GBP250 million unsecured bridge loan
received from TML Holdings Singapore Pte Ltd. The remaining GBP371
million would be used as a cash cushion.

Following the refinancing transactions JLR's debt structure would
be composed of approx. GBP160 million outstanding secured debt and
approx. GBP1.5 billion of unsecured financial debt (including
preference shares held by TML).  As a result the unsecured bond
rating will be in line with the CFR at (P)B1, LGD3, 47%.

The principal methodology used in rating JaguarLandRover Plc was
the Global Automobile Manufacture Industry Methodology, published
December 2007.  Other methodologies used include Loss Given
Default for Speculative Grade Issuers in the US, Canada, and EMEA,
published June 2009.

Jaguar Land Rover, domiciled in Gaydon, UK is a manufacturer of
passenger cars under the Jaguar and Land Rover brands.  JLR
operates five sites in the UK and employs around 16,600 staff.  In
financial year ending (FYE) March 2010, JLR sold nearly 200,000
units with the large majority attributable to Land Rover and
generated revenues of approx. GBP6.5 billion.  In terms of
geographic diversification the company generates the majority of
volumes in Europe (45% of unit sales) and North America (22%).

JAGUAR LAND ROVER: S&P Assigns 'B+' Prelim. Corp. Credit Rating
Standard & Poor's Ratings Services assigned its preliminary 'B+'
long-term corporate credit rating to U.K.-based automaker Jaguar
Land Rover PLC (JLR).  The outlook is stable.

"At the same time, we assigned our preliminary 'B+' issue rating
to JLR's planned GBP1 billion-equivalent senior unsecured notes
due 2018 and 2021 (to be issued in British pound sterling and U.S.
dollars), with a preliminary recovery rating of '4', indicating
our expectation of average (30%-50%) recovery in the event of a
payment default," S&P related.

"The preliminary corporate credit and issue ratings are subject to
the successful issuance of the GBP1 billion-equivalent notes, to
JLR's repayment of part of its existing secured and unsecured debt
according to the scheme it has indicated to us, and to the
finalization of the company's audited fiscal 2010/2011 annual
report," S&P noted.

Final ratings will depend upon receipt and satisfactory review of
all final transaction documentation.  Accordingly, the preliminary
ratings should not be construed as evidence of final ratings.  If
Standard & Poor's does not receive final documentation within a
reasonable time frame, or if final documentation departs from
materials reviewed, Standard & Poor's reserves the right to
withdraw or revise its ratings.

JLR produces luxury cars under the Jaguar, Land Rover, and Range
Rover brands.  The preliminary rating reflects JLR's business and
financial risk profiles, which S&P assesses as "weak," and
"aggressive," respectively, under its criteria.

"The rating also captures our anticipation of ongoing business and
financial support from JLR's 100% owner, Tata Motors Ltd. (BB-
/Stable/--).  JLR represents a very large part of the Tata Motors
group, generating about 60% of its consolidated revenues and 66%
of its consolidated EBITDA in the first nine months (to Dec. 31,
2010) of fiscal 2010/2011.  We factor in a positive impact from
Tata Motors into our assessment of JLR's financial risk profile,
given our understanding that the parent company would provide
additional financial support to fund JLR's growth plan if needed,
as it has done in the past.  Without such support, we would likely
rate JLR one notch lower than currently," S&P stated.

S&P continued, "The stable outlook reflects our opinion that JLR
is likely to maintain credit measures in line with the rating over
the cycle.  The corporate credit rating takes into account our
anticipation that JLR's profitability and FFO to debt will weaken
in fiscal 2011/20112--the latter ratio dropping to the low teens.
We also factor in negative free operating cash flow of about
GBP350 million in fiscal 2011/2012.  We assume that this cash burn
will result mainly from the substantial increase (a near doubling)
in investments with respect to the fiscal 2010/2011 level."

A downgrade would be possible if JLR's results diverged materially
from what we have indicated above and factored into the rating.
"It would also be possible if we deemed that Tata Motors'
commitment to support JLR were lower than the level we have
factored into the rating.  In addition, a downgrade of Tata Motors
would likely put rating pressure on JLR, unless offset by
stronger-than-anticipated operating performance and free cash flow
generation," S&P related.

"Conversely, we could raise our rating on JLR if the company
achieved its medium-term target of a sustainable improvement in
profitability, through the successful launch of new models and the
relaunch of the Jaguar brand.  In this scenario, we believe that
JLR would start to generate some free operating cash flow that it
could use to strengthen its financial ratios.  An upgrade of Tata
Motors would not necessarily imply a similar action on JLR," S&P

JAGUAR LAND ROVER: Fitch Assigns 'BB-' LT Issuer Default Rating
Fitch Ratings has assigned UK-based Jaguar Land Rover PLC (JLR)
and its India-based parent Tata Motors Ltd (TML) Long-term Foreign
Currency Issuer Default Ratings (IDR) of 'BB-' and 'BB',
respectively.  The Outlook on both IDRs is Stable.

Simultaneously, the agency has also assigned JLR's proposed GBP1bn
senior unsecured notes an expected rating of 'BB-(exp)'.  The
final issue rating is contingent on the receipt of final documents
confirming to information already received.

Using the top-down approach under its "Parent and Subsidiary
Rating Linkage Criteria", Fitch has notched JLR's rating to a
level down from TML's, reflecting the strong linkages between the
two manufacturers.  The agency believes that JLR remains strategic
to TML, as reflected in its share of EBITDA contribution and the
direct/indirect support provided by TML since the acquisition in

The rating of TML reflects its dominant position in the Indian
automobile market and the sharp improvement in margins and
leverage over the financial year ended March 31, 2010 and three
quarters of FY11.  The improvement was driven primarily by the
turnaround of its operations at JLR, which contributes the bulk of
TML's consolidated revenues and net profits (58% and 81%
respectively, for the period April-December 2010).  Consequently,
EBITDA margins recovered sharply to 14.8% for the nine months
ended December 31, 2010 from 9.3% in FY10 (FY09: 3.9%).  Financial
leverage (net adjusted debt/EBITDAR) also improved to 3.3x for
FY10 from 14.8x for FY09, and Fitch base case forecast sees this
to be sustained below 2.0x for the next three years.

TML's rating is further underpinned by a favorable outlook on the
Indian auto industry and Fitch's expectation that premium car
manufacturers in Europe will outperform volume segment players
over the next two years.  It also factors in JLR's strong brand in
both developed and emerging markets, its strong design teams, its
readiness for meeting tightening emission regulations, and product
development capabilities.  However, the rating also takes into
account JLR's smaller size and scale of operations relative to
Fitch-rated peers and its limited product diversification.  Fitch
notes that product synergies between TML and JLR remain limited;
however cost benefits on account of its various initiatives and
announced plans to set up manufacturing in China and knock down
assembly in India to cater to JLR's requirements will help TML
offset input cost increases to an extent, supporting EBITDA
margins at over 10% over the medium term.

The rating of TML also benefits from a one notch uplift on account
of potential support from the Tata group.  Fitch has assessed the
ability of the Tata group to provide support to TML and draws
comfort from the strategic importance of TML to the group.  Any
weakening of linkages between the group and TML and/or the group's
inability to provide support would act as a negative rating

Similarly for JLR, any weakening of linkages between TML and JLR
and/or inability of TML to provide support would be a negative
rating guideline.

Other negative rating guidelines for TML would include an economic
downturn in JLR's key markets (UK, Europe and USA), significantly
lower volumes from key models and impediments to its product
development plans.  Consolidated financial leverage (excluding
TML's financial subsidiary Tata Motor Finance Limited) exceeding
2.0x on a sustained basis would also act as a negative rating
guideline for the unsupported rating of TML.  On the other hand,
positive rating action could result from JLR establishing
significant market share in the smaller luxury cars and SUVs
segment, and higher-than-expected growth in traditional markets on
a sustained basis while maintaining its low leverage.  Substantial
improvement in JLR's geographic and product diversification,
together with successful product development plans would also be
positive rating guidelines.

Established in 1945, TML is India's largest automobile company,
with a leadership position in commercial vehicles, and is a top
three player in the passenger cars segment.  The company is the
world's third largest bus manufacturer and fourth largest truck

JAGUAR LAND ROVER: Mulls Sale of High Yield Securities
Ben Martin at Bloomberg News reports that Jaguar Land Rover Plc,
the U.K. carmaker bought by India's Tata Motors Ltd. in 2008, is
raising GBP1 billion (US$1.64 billion) from pound- and dollar-
denominated high-yield senior notes as low default rates fuel
demand for junk debt.

The company is seeking to sell GBP500 million and US$400 million
of bonds due in 2018 and a further US$400 million of securities
due 2021, Bloomberg says, citing a banker involved in the
transaction said.  According to Bloomberg, JLR said in a statement
that the proceeds will be used for refinancing existing debt as
well as for "general corporate purposes."

Tata Motors, which is India's biggest maker of trucks and buses,
paid US$2.4 billion to acquire Jaguar and the Land Rover sport-
utility vehicle brand from Ford Motor Co. in June 2008, Bloomberg

According to Bloomberg, the banker said that the new notes will be
guaranteed on an unsecured basis by Jaguar Cars Ltd., Land Rover,
Jaguar Land Rover North America LLC, Land Rover Exports Ltd. and
Jaguar Cars Exports Ltd.  Citigroup Inc., Credit Suisse Group AG,
JPMorgan Chase & Co. and Standard Chartered Plc are managing the

The banker, as cited by Bloomberg, said that the notes due 2018
will be callable after three years and the 2021 notes callable
after five.  The securities will be sold following meetings with
investors in Europe and the U.S., Bloomberg states.

                         About Tata Motors

India's largest automobile company, Tata Motors Limited -- is mainly engaged in the business
of automobile products consisting of all types of commercial and
passenger vehicles, including financing of the vehicles sold by
the company.  The company's operating segments consists of
Automotive and Others.  In addition to its automotive products,
it offers construction equipment, engineering solutions and
software operations.  TML is listed on the Bombay Stock
Exchange, the National Stock Exchange of India and New York
Stock Exchange.  It was ultimately 33.4% owned by the Tata Group
as of December 2007.

Tata Motors has operations in Russia and the United Kingdom.

As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 1, 2010, Standard & Poor's Ratings Services said that it had
raised its long-term corporate credit rating on India-based Tata
Motors Ltd. to 'BB-' from 'B+'.  The outlook is stable.  At the
same time, it raised the issue rating on the company's senior
unsecured notes to 'BB-' from 'B+'.

                          *     *     *

This week, Moody's Investors Service has assigned a provisional
Corporate Family Rating (CFR) and Probability of Default Rating
(PDR) of (P)B1 as well as a stable outlook to Jaguar Land Rover as
well as provisional (P)B1 ratings for Jaguar Land Rover's planned
note issues; Standard & Poor's Ratings Services assigned its
preliminary 'B+' long-term corporate credit rating to U.K.-based
automaker Jaguar Land Rover PLC (JLR); and Fitch Ratings has
assigned UK-based Jaguar Land Rover PLC (JLR) and its India-based
parent Tata Motors Ltd (TML) Long-term Foreign Currency Issuer
Default Ratings (IDR) of 'BB-' and 'BB', respectively.  The
Outlook on both IDRs is Stable.

NOWELLE: Set for Liquidation; To Appoint Griffins as Liquidators
Simon Nias at PrintWeek reports that Harlequin Display Group's
large format print division Nowelle, trading as Graf, is due to be

PrintWeek says the company, which is registered on Companies House
as Nowelle, issued an engagement letter to London-based insolvency
practitioner Griffins on May 9, 2011.

According to PrintWeek, Phil Burrows of Griffins confirmed that
the firm had been approached by the directors of Nowelle to place
the company in liquidation.

"We only got the letter of engagement agreed [May 9], so matters
are at a very early stage," PrintWeek quotes Mr. Burrows as
saying. "But it is normal that we will convene meetings of
shareholders, who have to be given 21 days notice, and it's
traditional to hold creditors meetings on the same day.

"It is likely that we will be appointed liquidators at that
meeting, but it is open to the creditors if they wish to appoint
somebody else."

Based in Hatfield, Nowelle, trading as Graf, supplied display
graphics to a number of high-profile retail brands.

R W FEATHER: Placed Into Voluntary Liquidation
Joanna Bourke at reports that the directors of
R W Feather & Son has decided to wind the business down before
debts mounted any further.  The company appointed Peter O'Hara of
O'Hara & Co as company liquidator on April 27, 2011. says preferential creditors owed GBP15,000 were
paid in full, while the remainder of assets were used for to pay
as much as possible towards non-preferential claims totalling
GBP254,201.22.  The operator leaves a deficiency of GBP32,749.03.

"A major factor in R W Feather & Son's demise was the crippling
costs of fuel, and it had also incurred a number of bad debts.
The directors wanted to do the honorable thing and get out of the
industry before its debts got any worse and it left too many
customers out of pocket," a spokesman for O'Hara & Co told

R W Feather & Son is a West Yorkshire-based haulier.  The firm had
an O-licence for 12 vehicles and 10 trailers and employed 15

* UK: Deloitte Sees Tough Times for Retailers in Wales
Martin Williams at Daily Post reports that the number of retail
companies falling into administration in the first quarter of this
year increased by 30% to 60% compared with 46% in the same period
last year.

Research by Deloitte, the business advisory firm, revealed this
was the highest number of retailers to enter administration in a
quarter in two years, according to Daily Post.

Paul Evans, director at Deloitte in Wales, sympathized with small
business owners and called on the government to provide more
support, including the new Welsh Assembly Government.

"During the economic downturn, companies experiencing financial
difficulty were able to rely on low interest rates and HMRC's
favorable 'Time to Pay' scheme in order to make ends meet.
However, as Her Majesty's Revenue and Customs (HMRC) attempts to
recoup lost revenue, we are likely to see a more hardened approach
being taken," Daily Post quotes Mr. Evans as saying.

Daily Posts says that Mr. Evans felt the problem was more than a
surface issue and ran a lot deeper, across the whole of the UK,
not just in Wales.

"We have already seen a decline in the acceptance of CVAs, often
used as a last resort by companies attempting to avoid
administration," Mr. Evans said, the report notes.  "[While] the
retail sector has fared the worst this quarter, this trend is very
much in line with the overall direction of the market," he added.
"Overall, the first quarter of 2011 saw an increase of 21% on the
previous quarter, with a total of 557 companies falling into
administration compared with 438 in Q410.  These figures indicate
that we are not out of the woods yet."


* Upcoming Meetings, Conferences and Seminars

June 6, 2011
     Canadian-American Cross-Border Insolvency Symposium
        Fairmont Royal York, Toronto, Ont.
           Contact: 1-703-739-0800;

June 9-12, 2011
     Central States Bankruptcy Workshop
        Grand Traverse Resort and Spa, Traverse City, Mich.

July 21-24, 2011
     Northeast Bankruptcy Conference
        Hyatt Regency Newport, Newport, R.I.
           Contact: 1-703-739-0800;

July 27-30, 2011
     Southeast Bankruptcy Workshop
        The Sanctuary at Kiawah Island, Kiawah Island, S.C.
           Contact: 1-703-739-0800;

Aug. 4-6, 2011
     Mid-Atlantic Bankruptcy Workshop
        Hotel Hershey, Hershey, Pa.
           Contact: 1-703-739-0800;

Oct. 14, 2011
     NCBJ/ABI Educational Program
        Tampa Convention Center, Tampa, Fla.
           Contact: 1-703-739-0800;

Oct. __, 2011
     International Insolvency Symposium
        Dublin, Ireland
           Contact: 1-703-739-0800;

Oct. 25-27, 2011
     Hilton San Diego Bayfront, San Diego, CA

Dec. 1-3, 2011
     23rd Annual Winter Leadership Conference
        La Quinta Resort & Spa, La Quinta, Calif.
           Contact: 1-703-739-0800;

April 3-5, 2012
     TMA Spring Conference
        Grand Hyatt Atlanta, Atlanta, Ga.

Apr. 19-22, 2012
     Annual Spring Meeting
        Gaylord National Resort & Convention Center,
        National Harbor, Md.
           Contact: 1-703-739-0800;

July 14-17, 2012
     Southeast Bankruptcy Workshop
        The Ritz-Carlton Amelia Island, Amelia Island, Fla.
           Contact: 1-703-739-0800;

Aug. 2-4, 2012
     Mid-Atlantic Bankruptcy Workshop
        Hyatt Regency Chesapeake Bay, Cambridge, Md.
           Contact: 1-703-739-0800;

November 1-3, 2012
     TMA Annual Convention
        Westin Copley Place, Boston, Mass.

Nov. 29 - Dec. 2, 2012
     Winter Leadership Conference
        JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
           Contact: 1-703-739-0800;

April 10-12, 2013
     TMA Spring Conference
        JW Marriott Chicago, Chicago, Ill.

October 3-5, 2013
     TMA Annual Convention
        Marriott Wardman Park, Washington, D.C.


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

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

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

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


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

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

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

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

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

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

                 * * * End of Transmission * * *