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        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 19, 2011, Vol. 12, No. 98

                            Headlines


B O S N I A   &   H E R Z E G O V I N A

BOSNIA & HERZEGOVINA: Moody's Changes Outlook on 'B2' Ratings


C Z E C H   R E P U B L I C

SAZKA AS: State Lottery Revenue Down 47% to CZK380-Mil. in April
SAZKA AS: KKCG & Moranda Submits Restructuring Plan for Firm


F R A N C E

PARIS PRIME: S&P Withdraws 'D' Ratings on Three Classes of Notes


G E R M A N Y

ECM REAL ESTATE: Files for Insolvency
KIRCH HOLDING: Deutsche Bank CEO to Testify Today in Kirch Case


G R E E C E

* GREECE: German Daily Editor Sees the Insolvency of Greece
* GREECE: Debt Default Anticipated by 85% in Global Investor Poll
* GREECE: Moody's Cuts Ratings on RMBS & ABS Deals to 'Ba1(sf)'
* GREECE: EU Officials May Ask Private Creditors for Debt Relief


H U N G A R Y

* HEVES COUNTY: Put Under Debt Settlement Proceedings


I C E L A N D

KAUPTHING HF: Robert Tchenguiz Seeks Judicial Review of SFO Arrest
* ICELAND: Fitch Affirms Long-Term Issuer Default Ratings at 'BB+'


I R E L A N D

PREPS SERIES: Fitch Cuts Ratings on Six Classes of Notes to 'Csf'
* IRELAND: IMF Approves EUR1.58-Bil. Rescue Loan


I T A L Y

IDEAL STANDARD: Fitch Affirms 'B-' Long-Term Issuer Default Rating


K A Z A K H S T A N

WORLD WIDE MINERALS: No Longer Has Resources to Recover Losses


N E T H E R L A N D S

VAN DER MOOLEN: Lacked Sufficient Risk Management, Probe Reveals


R U S S I A

METALLURGICAL COMM'L: Moody's Changes Outlook on 'B3' Ratings


S P A I N

CAJA DE AHORROS: Fitch Puts 25 Classes of MICH on Watch Negative
IM CAJAMAR: Fitch Affirms Ratings on Three Tranches at 'CCsf'


U N I T E D   K I N G D O M

BLUE CEDARS: Aspen Leisure Acquires Firm Out of Administration
C&G CONCRETE: Goes Into Administration, 120 Jobs at Stake
COMET: Kesa Electricals May Opt for Pre-Pack or CVA
DOLPHIN MUSIC: Goes Into Administration, Closes Stores
FOCUS (DIY): Wickes Building Acquires 13 Stores, Saves 345 Jobs

GALA CORAL: S&P Rates Proposed GBP250MM Sr. Secured Notes at 'B+'
GALA ELECTRIC: Moody's Assigns (P)B2 Rating to Sr. Secured Notes
GALA GROUP: Fitch Assigns 'BB(exp)' Rating to Notes Due 2017
LIFE: Figureheads Pledge to Save Pool
MINT CATERING: To Officially Enter Liquidation

PRINCIPLE LEISURE: Goes Into Administration, Seeks Buyer


X X X X X X X X

* Banks Failing Stress Tests Must Seek Help From Private Investors
* Upcoming Meetings, Conferences and Seminars


                            *********


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B O S N I A   &   H E R Z E G O V I N A
=======================================


BOSNIA & HERZEGOVINA: Moody's Changes Outlook on 'B2' Ratings
-------------------------------------------------------------
Moody's Investors Service has changed the outlook on the B2
government ratings of Bosnia and Herzegovina (BiH) to negative
from stable, citing the ongoing political stalemate and related
delays in economic and constitutional reform.

Additionally, Moody's has placed a negative outlook on Bosnia and
Herzegovina's Ba3 ceiling for foreign-currency debt and its B3
ceiling for foreign-currency bank deposits.

The negative outlook is prompted by:

(1) Heightened tensions between the country's three main ethnic
    groups, which have produced a political stalemate and
    prevented the formation of a state-level government more than
    seven months after last October's election;

(2) Related delays in economic and constitutional reform that are
    impeding BIH's chances of eventually gaining European Union
    candidate status; and

(3) The increasing risk of a further splintering of the country,
    which could lead to an interruption in debt-service payments
    on the county's bonds.

RATIONALE FOR NEGATIVE OUTLOOK

The first driver of the negative outlook is Moody's concern over
the impact of the ongoing political stalemate on BiH's embryonic
State-level institutions. Nearly five months after last October's
general election, the parties that captured the most votes in the
Federation of Bosnia-Herzegovina -- the Bosniak-dominated Social-
Democratic Party (SDP) and the two largest Croat parties -- were
unable to agree on a coalition to govern the sub-national entity.
In turn, this prevented the formation of a government at the State
level. More recently, actions taken by each ethnic group have also
undermined past progress on nation-building, including the move by
the SDP to form the Federation government without the Croat
parties that had won the most votes, and the State government has
still not been constituted.

The second consideration for the negative outlook is that the
absence of a State government prevents Bosnia from implementing
either (i) the constitutional reforms needed to deepen its
integration with the European Union; or (ii) the economic reforms
demanded by multilateral and bilateral creditors. Both these
reforms require the creation or operation of State-level
institutions. The political impasse thereby threatens to slow or
even cut off disbursements from the EU, the World Bank and the
IMF, which are necessary to boost economic growth given shortfalls
in foreign direct investment and privatization inflows.

Finally, the deepening rifts between Bosnia's main ethnic groups
and the lack of a concrete response from the international
community increase the risk that Bosnia could dissolve into its
sub-national parts, which in turn would drain resources away from
the State government and impede its ability to meet its debt
obligations. The Office of the High Representative for Bosnia
(OHR) and the Peace Implementation Council (PIC) -- which are
responsible for administering the peace and supporting the nation-
building process -- both issued stern warnings to the
international community during recent weeks. Their main message is
that the Bosnian political situation is more dangerous than at any
other time since the war ended in 1995.

The OHR and PIC are urging the international community to
reinvigorate their involvement in the country, but so far, there
has been little international response. That said, the EU Foreign
Minister's surprise visit to Sarajevo on May 13 may signal fresh
concern coming from Europe, but the visit will need to be followed
up by more direct involvement. Continued inaction from the
international community would otherwise allow the divisive actions
of the Bosnian communities to persist, resulting in a pessimistic
outcome for the country's future as a sovereign nation.

PREVIOUS RATING ACTION & METHODOLOGY USED

The principal methodology used in this rating was Sovereign Bond
Ratings published in September 2008.


===========================
C Z E C H   R E P U B L I C
===========================


SAZKA AS: State Lottery Revenue Down 47% to CZK380-Mil. in April
----------------------------------------------------------------
According to Bloomberg News' Lenka Ponikelska, CTK, citing a
report from PricewaterhouseCoopers, Sazka AS's revenue from the
state lottery fell 47% to CZK380 million (US$22 million) in April
from a year earlier.

Bloomberg relates that the newswire said income from the lottery
amounted to 85% of Sazka's revenue in January.

The newswire added that the report was conducted for Sazka's
provisional creditors' committee, Bloomberg notes.

Sazka's clients are cutting back on placing bets as the company is
struggling to pay overdue winnings, Bloomberg 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.


SAZKA AS: KKCG & Moranda Submits Restructuring Plan for Firm
------------------------------------------------------------
CTK, citing the insolvency register, reports that KKCG, Moranda,
Sidereus Holding, and PPF, one of the largest creditors of lottery
company Sazka, on Tuesday submitted to court their own
restructuring plan for Sazka.

The plan, CTK says, reckons with debt restructuring, forgiving
part of debt and postponing its maturity.  Sale of some of Sazka's
assets; stock issue; securing of financing of its operation; and
modification of articles of association are also part of the plan,
CTK discloses.

CTK relates that the firms said they were ready to provide a
short-term bridging loan for Sazka's operation, payment of
winnings, and renewal of the distribution network.

According to CTK, in a restructuring plan submitted to court on
Monday, Sazka CEO Ales Husak also proposes debt restructuring,
forgiving some of the debts, and postponing their maturity.

On May 16, 2011, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported that Sazka's bankruptcy administrator
Josef Cupka recognized CZK15 billion (US$879 million) in claims by
creditors of the company.  The newspapers said that Czech
financial groups PPF AS and KKCG hold more than CZK6 billion in
claims, Bloomberg disclosed.

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.

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


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F R A N C E
===========


PARIS PRIME: S&P Withdraws 'D' Ratings on Three Classes of Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its credit ratings on
Paris Prime Comm Real Estate FCC's class C, D, and E notes.

On the April 2011 interest payment date, Paris Prime Comm Real
Estate fully redeemed its class C, D, and E notes following the
repayment in full of the underlying loan.

"At the time of the withdrawal, the rating on the class C notes
was on CreditWatch negative, where we placed it on Jan. 18, 2011,"
S&P stated.

The transaction closed in October 2006 and securitized a single
commercial property loan. At closing, the underlying loan was
secured against four properties located in Greater Paris (France),
with EUR452.15 million of total principal outstanding.

Ratings List

Class            Rating
            To           From

Ratings Withdrawn

Paris Prime Comm Real Estate FCC
EUR452.15 Million Comm Mortgage-Backed Floating-Rate Notes

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

NR -- Not rated.


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G E R M A N Y
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ECM REAL ESTATE: Files for Insolvency
-------------------------------------
ECM Real Estate Investments A.G. related on its Web site that it
filed in the Czech Republic its own insolvency petition including
the proposal for reorganization on May 17, 2011.

The petition for reorganization of ECM REI AG is in the line with
negotiation the Company has had with non secured creditors.

In current situation, the Board of Directors considers this move,
aiming to restructuring of Company's debts, to be in the best
interest of all Company's stakeholders.  "This step
should also allow for faster implementation of contemplated
transactions and better coordination in negotiation with ECM's
creditors," the Company relates.

As reported by the Troubled Company Reporter-Europe on April 14,
2011, CTK newswire, citing the insolvency registry Web site,
disclosed that ECM's insolvency case, proposed by Ceska
Sporitelna, was rejected by a Prague court.  Ceska Sporitelna, the
Czech unit of Erste Bank AG, filed the insolvency proposal against
ECM and a proposal to reorganize the company in order to satisfy
creditors' claims.  Ceska Sporitelna said in a filing posted on
the Czech insolvency registry Web site that ECM owes the lender
interest payments on bonds worth CZK7.22 million (US$426 million),
which are overdue, Bloomberg disclosed.

                        About ECM Real Estate

Based in Czech Republic, ECM Real Estate Investments AG is a real
estate developer and investment company.  The Company's offer
comprises real estate development projects, leasing of retail
space, offices and conference center, sale of flats and houses and
facility management. In addition, it offers lease of space for
telecommunication equipment.  ECM Real Estate Investments AG
operates in the Czech Republic, as well as in Russia, China,
Cyprus, Luxembourg and others, through its subsidiaries, including
ECM China Investments sro, POYNTON sro, ECM Byty sro, China East
Investment Ltd, PROSPECT LLC, RYAZAN INVESTORS COMPANY Ltd, among
others.


KIRCH HOLDING: Deutsche Bank CEO to Testify Today in Kirch Case
---------------------------------------------------------------
Karin Matussek at Bloomberg News reports that Deutsche Bank AG
Chief Executive Officer Josef Ackermann is scheduled to testify
today, May 19, to rebut judges' preliminary view that the lender
may have tried to pressure Leo Kirch to hire it to restructure his
media group.

Mr. Ackermann, Chairman Clemens Boersig, and other executives will
testify in Mr. Kirch's EUR2 billion (US$2.8 billion) suit at a
Munich appeals court, Bloomberg discloses.  Deutsche Bank asked to
call the men to rebut Mr. Kirch's claim that the bank
intentionally tried to hurt Mr. Kirch's company, the report
states.  The judges called Mr. Kirch's version of events "not
unlikely" in a preliminary opinion obtained by Bloomberg News.

The case is part of a dispute over a 2002 Bloomberg television
interview by Rolf Breuer, the Frankfurt-based bank's CEO at that
time, Bloomberg notes.  Mr. Breuer, Bloomberg relates, said at the
interview that "everything that you can read and hear" is that
"the financial sector isn't prepared to provide further" loans or
equity to Mr. Kirch.  Four months later, Kirch Holding GmbH filed
the country's biggest bankruptcy since World War II.

According to Bloomberg, the court said in the March 24 opinion
that "the possible damage the interview caused could be that a
free restructuring wasn't possible anymore" had Mr. Kirch declined
to hire the bank.

Deutsche Bank's "liability can be earnestly considered," the court
said, as cited by Bloomberg.

Deutsche Bank and Mr. Breuer deny any wrongdoing, Bloomberg
relays.

Kirch Holding GmbH was a German media company.


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


* GREECE: German Daily Editor Sees the Insolvency of Greece
-----------------------------------------------------------
Last year, "Das Handelsblatt" appealed for the purchase of Greek
government bonds in order to raise confidence in the concerted
Greek rescue plan.  In an open letter to the Prime Minister, "Das
Handelsblatt" Editor-in-Chief Gabor Steingart explained why the
journal had lost confidence in the European Union's current policy
on Greece and the Papandreous government's remediation measures.
The country's bankruptcy is unavoidable, says Mr. Steingart.  He
advised the prime minister to commence debt rescheduling
negotiations with creditors without delay.

Mr. Steingart is an award winning Journalist, the former White
House Correspondent of "Der Spiegel" and now Handelsblatt's
Editor-in-Chief.  His book "The War for Wealth, The True Story of
Globalization, or Why the Flat World is Broken" was published in
the US, GB, China and several other countries by McGraw Hill, New
York, in 2008.


* GREECE: Debt Default Anticipated by 85% in Global Investor Poll
-----------------------------------------------------------------
International investors view a sovereign default by a euro-area
nation as more likely than not with more than four-fifths (85%)
betting Greece will eventually fail to pay off its debt.

Eighty-five percent of those surveyed this week said Greece
probably will default, with majorities predicting the same fate
for Portugal and Ireland, which followed Greece in seeking
European Union-led bailouts, a new Bloomberg Global Poll shows.
The outlook for all three countries deteriorated since January.

The pessimism underscores how investors remain unconvinced that
European policy makers can prevent the euro-area's first default
even as they look to beef up Greece's 110 billion-euro rescue
package (US$156 billion).  The cost of insuring against a Greek
default reached a record this week as investors increased bets the
country won't be able to make good on its borrowing.

Credit default swaps on Greek debt reached an all-time high 1,371
basis points on May 9, the same day the country's two-year bond
yield closed at a record 25.6 percent.

The number of survey respondents anticipating a default in Greece
rose 11 percentage points since January and 12 points from last
June, according to the poll of 1,263 investors, analysts and
traders who are Bloomberg subscribers.

Greece, Ireland and Portugal were forced to seek aid as their
swelling budget deficits, prompted investors to shun their bonds,
causing a surge in borrowing costs that made it prohibitive to tap
financial markets.  After a year of austerity, Greece ended 2010
with a budget deficit equal to 10.5 percent of gross domestic
product.  That was the region's second largest after Ireland at 32
percent.  Portugal was fourth at 9.1 percent, three times the EU's
3 percent limit.

In the quarterly survey, 59 percent regarded Portugal as likely to
renege on its debt, up from just under half at the start of the
year and about a third in June 2010.  Fifty-five percent said
Ireland will probably default, an increase from 53 percent in
January and 17 percent last June.

Investors expressed more confidence in Spain with just one in four
(25%) saying the euro-area's fourth-largest economy is likely to
default. Six percent anticipate a default in the U.S. and 5
percent in the U.K.

Three years of recession, higher borrowing costs and weak tax
revenue are swamping the spending cuts required in return to the
initial aid.  Greece's debt reached 143 percent of GDP last year,
the most in the euro-region and is set to peak at 159 percent next
year.  Standard & Poor's cut its credit rating of Greece two
levels this week to B from BB- and said further reductions are
possible as the default risk rises.

European finance chiefs are considering more aid for Greece as
soaring bond yields jeopardize the country's return to financial
markets.  The original bailout aimed to lower the country's
borrowing costs enough to permit Greece to sell 27 billion euros
of bonds next year.  But debt costs remain stifling, with the
country's 10-year bond yielding 15.5 percent, more than twice the
rate the time of the bailout a year ago.

At an unscheduled meeting in Luxembourg last week, EU officials
discussed a "further adjustment program" for Greece.  Among the
options being considered are granting easier repayment terms or
deficit conditions on the original bailout.  Some nations are
demanding Greece offer collateral in return for any new loans.

European finance ministers meet in Brussels on May 16-17 and will
discuss Greece.  Dominique Strauss-Kahn, managing director of the
International Monetary Fund, which is also financing the EU
bailouts, will attend.  Officials rejected talk this week of a
default with European Central Bank Executive

Board member Lorenzo Bini Smaghi describing that option as
"political suicide, which leads many into poverty."

Aside from Greece, Portugal is awaiting final EU approval for its
78 billion-euro lifeline. Irish officials also are fighting back
against speculation they will renege on their 2008 guarantee of
bank debt.  That country's deficit ballooned to more than 30
percent of GDP last year on the cost of propping up its lenders,
forcing Ireland into the arms of its neighbors in November.

Separately, the Bloomberg Global Poll found 55 percent of
respondents are optimistic about how the policies of Chancellor
Angela Merkel affect the investment climate in Germany.  U.K.
Prime Minister David Cameron's approach was endorsed by 51 percent
and 65 percent reported a favorable view of him. Only a quarter
(25%) approved of French President Nicolas Sarkozy's strategy.

Forty-four percent of respondents said the ECB's monetary policy
is appropriate with a third labeling it too tight and a fifth too
loose.  The Frankfurt-based ECB raised its benchmark interest rate
last month for the first time since 2008, lifting it a quarter
point to 1.25 percent.

ECB President Jeane-Claude Trichet was regarded favorably by 57
percent of respondents. Bank of Italy Governor Mario Draghi, the
frontrunner to succeed Trichet as ECB president later this year,
was endorsed by 34 percent with 21 percent reporting an
unfavorable view.  Almost half (45%) said they lacked the
knowledge to grade Draghi.

The survey of investors, traders and analysts was conducted by
Selzer & Co., a Des Moines, Iowa-based firm, on May 9-10 and has a
margin of error of plus or minus 2.8 percentage points.


* GREECE: Moody's Cuts Ratings on RMBS & ABS Deals to 'Ba1(sf)'
---------------------------------------------------------------
Moody's has downgraded to Ba1(sf) the senior note ratings of one
Greek CLO, seven Greek RMBS and three Greek ABS transactions. The
Ba1(sf) rating of these notes are on review for further downgrade.
Moody's has also placed on review for downgrade the mezzanine and
junior notes of all ABS and RMBS transactions serviced by Greek
banks, as well as the Baa1(sf) rating of ABS transactions serviced
by Cypriot entities.

The rating action follows Moody's decisions to place on review for
downgrade the B1 rating of Greece's government on May 9, 2011 and
the rating of eight Greek banks on May 10, 2011.

                         Rating Rationale

The rating actions reflect Moody's increased concerns about the
exposure of Greek structured finance transactions to increasing
country risks and operational risks. The placing on review of the
Greek government rating of B1 considers the possibility of a
multi-notch downgrade and has triggered the review of the Greek
banks, which Moody's currently rates Ba3 or lower. The sovereign
and banking rating reviews equate to an increased likelihood that
high severity events will weaken structured finance transactions.
These events include 1) a severe macro-economic decline hurting
asset performance and 2) a deterioration in a sovereign or local
banks' creditworthiness that increases the operational risk of a
disruption in the performance of banks acting as key transaction
parties. Regardless of the structural features or the amount of
credit enhancement in place, structured finance transactions are
not immune to the risk of these high severity events.

Moody's has downgraded to Ba1(sf) the rating of senior notes which
were Baa3(sf) or above because the likelihood of a performance
disruption has increased for transactions with Greek banks acting
as key transaction parties. The ratings on the affected notes
remain on review for downgrade.

Moody's also placed on review the ratings of other senior,
mezzanine, and junior notes. Moody's placed on review for
downgrade the Ba1(sf) rating of senior notes in transactions with
high linkage to the credit quality of servicers. In addition,
Moody's placed on review for downgrade the ratings of other notes
as a result of increased risk of further asset deterioration
caused by a delayed and weakening economic recovery in Greece.
These notes include the mezzanine and subordinated notes
referenced above and the Baa1(sf) rated notes of ABS transactions
serviced by two Cypriot entities, Marfin Popular Bank (Baa3/P-3)
and Cyprus Leasing , the fully owned leasing arm of Bank of Cyprus
(Baa2/P-2).

As a result of the actions, all Moody's-rated notes of
transactions backed by Greek assets are on review for downgrade.
Moody's will conclude its review of Greek structured finance
ratings considering, amongst other factors, the Greek government
and banks' ratings development.

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.


* GREECE: EU Officials May Ask Private Creditors for Debt Relief
----------------------------------------------------------------
Canadian Press reports that the European Union's Monetary Affairs
Commissioner Olli Rehn on Tuesday said Greece's private creditors
may be asked to give the struggling country more time to repay its
debts.

Until this week, European officials had denied that extending debt
repayments had even been discussed, for fear of undermining market
confidence, Canadian Press relates.  But many investors are
convinced a change in Greece's debt deals is inevitable at some
point, Canadian Press states.

According to Canadian Press, The EU's Monetary Affairs
Commissioner Olli Rehn told journalists after a two-day meeting
with European finance ministers that "a voluntary extension of
loan maturities could . . . be examined" together with asking
banks and other investors to maintain their exposure to Greece.

Before any such move is considered, however, Mr. Rehn said the
Greek government was expected to announce in coming days new
spending cuts and reforms to make sure it can lower its budget
deficit to the targets set out in its bailout program, Canadian
press notes.


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H U N G A R Y
=============


* HEVES COUNTY: Put Under Debt Settlement Proceedings
-----------------------------------------------------
Budapest Business Journal, citing Heves county council president
Robert Szabo, reports that the local government of Heves county in
east Hungary has been put under debt settlement proceedings after
it filed for bankruptcy.

According to BBJ, business daily Vilaggazdasag said that a
Budapest-based company applied for the debt settlement process in
court.

Mr. Szabo, as cited by BBJ, said in a press release the operating
debt of the county exceeds HUF1.7 billion, and overall, it owes
nearly HUF7.5 billion.

Mr. Szabo blamed a series of wrong decisions by the previous
governance over the past few years, which he said led to the
current crunch, BBJ relates.


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I C E L A N D
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KAUPTHING HF: Robert Tchenguiz Seeks Judicial Review of SFO Arrest
------------------------------------------------------------------
Roger Blitz at The Financial Times reports that Robert Tchenguiz
joined his brother Vincent in filing for a judicial review into
the conduct of the Serious Fraud Office during his arrest and the
raids on his offices and home earlier this year, claiming its
actions were "unlawful, aggressive and disproportionate".

The property entrepreneur was detained and questioned as part of
the SFO investigation into the collapse of Kaupthing, the failed
Icelandic bank, the FT discloses.  He was released without charge
and denies any wrongdoing, the FT relates.

"I have maintained since the SFO raided my office and home on
March 9 and arrested me that if I received legal advice regarding
irregularities, I would bring legal proceedings against them," the
FT quotes Mr. Tchenguiz as saying on Tuesday.  "I have now been
advised that the SFO's conduct was unlawful and I have therefore
[] launched a judicial review in the High Court against the SFO to
establish that their action was illegal."

Mr. Tchenquiz is also seeking damages, the FT notes.

Vincent Tchenguiz, who was arrested on the same day, last week
filed a judicial review request, similarly arguing that raids on
his premises and his detention were unlawful, the FT recounts.  He
was also released without charge and denies any wrongdoing, the FT
states.

Robert Tchenguiz detailed three occasions when he and his lawyers
contacted the SFO offering co-operation in their Kaupthing
investigation, the FT discloses.

The SFO is working with Iceland over the 2008 collapse of
Kaupthing, looking at whether value was extracted from the bank in
the weeks leading up to its demise, the FT says.

According to the FT, Mr. Tchenguiz alleged that the SFO
investigation into his role was being used to help justify the
existence of the office when it is under financial pressure.

                       About Kaupthing Bank

Headquartered in Reykjavik, Kaupthing Bank --
http://www.kaupthing.com/-- 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.


* ICELAND: Fitch Affirms Long-Term Issuer Default Ratings at 'BB+'
------------------------------------------------------------------
Fitch Ratings has affirmed Iceland's Long-term Foreign and Local
Currency Issuer Default Ratings (IDRs) of 'BB+' and 'BBB+' and
revised the Outlooks to Stable from Negative. The Foreign Currency
Short-Term IDR is affirmed at 'B' and the Country Ceiling at
'BB+'.

Fitch says that this positive rating action on Iceland, its first
since 2006, reflects a reassessment of the near-term impact on
sovereign creditworthiness of the popular rejection of the
'Icesave' agreement in a national referendum on April 9.

"Fitch continues to regard the resolution of 'Icesave', a
bilateral agreement with the UK and Dutch governments to finance
the compensation of 'Icesave' depositors, as an important step
towards the normalization of relations with international
creditors. However, the capacity of this dispute to close off
access to multilateral and bilateral funding for Iceland's IMF
financial rescue program and put Iceland's economic recovery at
risk has clearly diminished," says Paul Rawkins, Senior Director
in Fitch's Sovereign Rating Group.

On May 5, the Icelandic authorities and the IMF mission reached
agreement-subject to approval by the IMF Management and Executive
Board-on completion of the fifth review of the standby
arrangement. Nordic governments have since confirmed that access
to the remaining bilateral funding to support the program will not
be impaired by the referendum result. Fitch also notes that the
Icelandic authorities are confident that asset recoveries from
failed Landsbanki will cover 90-100% of deposit liabilities.
Payments to British and Dutch deposit insurance funds are
scheduled to begin later this year, leaving the associated
interest payment liabilities to be settled through a potentially
protracted legal process.

Having experienced a steep contraction in output in 2009-10, Fitch
believes that Iceland's economy is close to stabilizing and could
post growth of around 2% in 2011. Disinflation has been rapid:
headline inflation has fallen to around 2% currently from a peak
of 19% y-o-y in early 2009, allowing interest rates to come down
to an historic low of 4.5%. Fiscal consolidation is on track: the
primary balance is budgeted to be in slight surplus in 2011, even
as general government debt (including accrued interest on Icesave)
peaks at around 100%. Net debt is significantly lower, reflecting
large deposits with the central bank, some of which are the
counterpart of the increase in international reserves under the
IMF program.

Sovereign debt service is secure: recent prepayments have reduced
sovereign foreign bond maturities to around EUR500 million in
2011-13 compared to international reserves of EUR4.6 billion,
while the Treasury holds sufficient ISK deposits to meet 12 months
of domestic debt service. However, simultaneous banking and
currency crises have inflicted severe pain on private sector
balance sheets, while capital controls continue to trap EUR2.8
billion of non-resident investments in ISK instruments. Extensive
private sector domestic debt restructuring will be necessary to
sustain economic recovery and secure financial sector stability.
Maintenance of underlying trade and current account surpluses and
appreciable international reserves will be essential preconditions
for lifting capital controls and establishing a credible market-
determined exchange rate.

Fitch says that future sovereign rating actions will take a broad
range of factors into account including successful completion of
the IMF program, clear signs of economic recovery and continued
progress towards fiscal consolidation and public and external debt
reduction. Iceland is still a relatively high income country with
standards of governance, human development and ease of doing
business more akin to a high grade than a 'BB+' sovereign.
However, accelerated private sector domestic debt restructuring,
an orderly unwinding of capital controls, normalization of
relations with external creditors and enduring monetary and
exchange rate stability will be key to the restoration of
investment grade status.


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


PREPS SERIES: Fitch Cuts Ratings on Six Classes of Notes to 'Csf'
-----------------------------------------------------------------
Fitch Ratings has downgraded 14 classes of notes from the PREPS
series of transactions (PREPS 2004-2, PREPS 2005-1, PREPS 2005-2,
PREPS 2006-1, and PREPS 2007-1). Fitch has simultaneously affirmed
the ratings of three classes from the series, and maintained the
Negative Outlooks on all classes rated above 'CCCsf'. In addition,
the agency revised nine and maintained two Loss Severity (LS)
ratings on classes rated above 'CCCsf'. Fitch also assigned
Recovery Ratings (RRs) to six classes rated below 'CCCsf'.

The ratings reflect the transactions' negative performance since
the last review in December 2009. Further defaults have occurred
across the series. As a result of this, the outstanding balances
of the principal deficiency ledgers (PDLs) in all transactions
have increased since the last review. The increased PDL balance
has reduced the credit enhancement available to all rated notes.
The class B notes in all transactions except Preps 2004-2 already
have negative credit enhancement when the outstanding PDL balances
are taken into account. Unless the PDL balance is less than the
balance of the junior notes by transaction maturity, which given
the current performance is unlikely, losses will be allocated to
the class B notes.

The primary risk in these transactions is the upcoming refinancing
risk. In each transaction, all of the loans are bullet loans
maturing on the same day. To Fitch's knowledge, the companies have
not yet arranged refinancing. This risk is reflected in the
ratings and the Negative Outlook. Fitch is in contact with the
asset managers and will review any available information on the
repayment and refinancing plans of the borrowers.

In Preps 2004-2, two additional PDL events have occurred since the
last review. As a result, the outstanding PDL balance has risen to
EUR19.6 million from zero at the last review. The increased PDL
combined with the refinancing risk has resulted in a downgrade of
the class A1 and A2 notes in Preps 2004-2 to 'BBsf 'from 'BBBsf'.

In Preps 2005-1, six additional PDL events have occurred since the
last review. As a result, the outstanding PDL balance has risen to
EUR45.2 million from EUR10 million at the last review. The
increased PDL balance exceeds the junior notes. This also makes a
default of the class B notes probable. To address the pool
deterioration, the agency has downgraded the class A notes to 'Bsf
' from 'BB+sf' and the class B notes to 'Csf' from 'B-sf'.

In Preps 2005-2, five additional PDL events have occurred since
the last review. As a result, the PDL balance has risen to EUR53.9
million from EUR39 million at the last review. The increased PDL
exceeds the junior notes. This also makes a default of the class
B1 and B2 notes probable. To address the pool deterioration, the
agency has downgraded the class A notes to 'Bsf' from 'BBsf' and
the class B notes to 'Csf' from 'CCsf'.

In Preps 2006-1, four additional PDL events have occurred since
the last review. As a result, the outstanding PDL balance has
risen to EUR43.1 million from EUR30.8 million at the last review.
The increased PDL balance exceeds the junior notes. This also
makes a default of the class B1 and B2 notes probable. To address
the pool deterioration, the agency has downgraded the class A
notes to 'Bsf' from 'BB-sf' and the class B notes to 'Csf' from
'CCsf'.

In Preps 2007-1, three additional PDL events have occurred since
the last review. As a result, the outstanding PDL balance has
risen to EUR39.3 million from EUR31.6 million at the last review.
The increased PDL balance exceeds the junior notes. This makes a
default of the class B1 notes probable. To reflect this risk, the
agency has downgraded the class B1 note to 'Csf' from 'CCsf'.
Although reduced by the increased PDL, in Fitch's view, the credit
enhancement for the class A1 note is still sufficient to absorb
the increased PDL balance, therefore, the agency affirmed the
class A1 notes' rating at 'Bsf'.

Fitch has reduced the LS ratings of nine rated classes. LS ratings
denote the relative risk of loss severity given default on a
particular security and is determined by the thickness of a
particular tranche and the loss expectation for the respective
pool. The revision of the LS ratings reflects the increased loss
severity in the event of a default as a result of increased loss
expectations.

Fitch assigned RR of 'RR-5' to six classes of notes on
expectations of below average recovery prospects given default. RR
are issued on a scale of 'RR1' (highest) to 'RR6' (lowest) to
denote the range of recovery prospects of notes rated at or below
'CCC'.

The PREPS transactions are cash securitisations of subordinated
loans to medium-sized enterprises located in up to eight
jurisdictions, including Germany, Austria, Switzerland, Italy,
Belgium, Luxembourg, the Netherlands and the UK.

The rating actions are:

PREPS 2004-2 limited partnership (PREPS 2004-2):

   -- EUR307,903,651 class A1 notes (ISIN: XS0205676272):
      downgraded to 'BBsf' from 'BBBsf'; Outlook Negative; Loss
      Severity (LS) Rating revised to LS-3 from 'LS-2'

   -- EUR58,760,239 class A2 notes (ISIN: XS0205676942):
      downgraded to 'BBsf' from 'BBBsf'; Outlook Negative, LS
      Rating revised to 'LS-4' from 'LS-3'

   -- EUR46,000,000 class B1 notes (ISIN: XS0205677320): affirmed
      at 'Bsf'; Outlook Negative, LS Rating revised to 'LS-5 from
      'LS-4'

   -- EUR40,000,000 class B2 notes (ISIN: XS0205677676): affirmed
      at 'Bsf'; Outlook Negative, LS Rating revised to 'LS-5' from
      'LS-4'

PREPS 2005-1 limited partnership (PREPS 2005-1):

   -- EUR139,190,104 class A1 notes (ISIN: XS0225228765):
      downgraded to 'Bsf' from 'BB+'; Outlook Negative, LS Rating
      affirmed at 'LS-3'

   -- EUR47,722,321 class A2 notes (ISIN: XS0225229144):
      downgraded to 'Bsf' from 'BB+sf'; Outlook Negative, LS
      Rating revised to 'LS-5' from 'LS-3'

   -- EUR47,000,000 class B notes (ISIN: XS0225229813): downgraded
      to 'Csf' from 'B-sf'; assigned'RR-5'

PREPS 2005-2 plc (PREPS 2005-2):

   -- EUR176,880,869 class A1 notes (ISIN: XS0236849005):
      downgraded to 'Bsf' from 'BBsf'; Outlook Negative, LS Rating
      revised to 'LS-3' from 'LS-2'

   -- EUR43,201,318 class A2 notes (ISIN: XS0236849427):
      downgraded to 'Bsf' from 'BBsf'; Outlook Negative, LS Rating
      revised to 'LS-5' from 'LS-3'

   -- EUR41,500,000 class B1 notes (ISIN: XS0236849930):
      downgraded to 'Csf' from 'CCsf', assigned 'RR-5'

   -- EUR12,500,000 class B2 notes (ISIN: XS0236850862):
      downgraded to 'Csf' from 'CCsf', assigned 'RR-5'

PREPS 2006-1 plc (PREPS 2006-1):

   -- EUR206,829,135 class A1 notes (ISIN: XS0261122732):
      downgraded to 'Bsf' from 'BB-sf'; Outlook Negative, LS
      Rating revised to 'LS-3' from 'LS-2'

   -- EUR781,798 class A2 notes (ISIN: XS0261125081): downgraded
      to 'Bsf' from 'BB-sf'; Outlook Negative, LS Rating affirmed
      at 'LS-5'

   -- EUR40,000,000 class B1 notes (ISIN: XS0261125677):
      downgraded to 'Csf' from 'CCsf', assigned 'RR-5'

   -- EUR9,000,000 class B2 notes (ISIN: XS0261127376): downgraded
      to 'Csf' from 'CCsf', assigned 'RR-5'

PREPS 2007-1 plc (PREPS 2007-1):

   -- EUR160,284,088 class A1 notes (ISIN: XS0289620709): affirmed
      at 'Bsf'; Outlook Negative, LS Rating revised to 'LS-3' from
      'LS-2'

   -- EUR35,000,000 class B1 notes (ISIN: XS0289620881):
      downgraded to 'Csf' from 'CCsf', assigned 'RR-5'


* IRELAND: IMF Approves EUR1.58-Bil. Rescue Loan
------------------------------------------------
Agence France Presse reports that the International Monetary Fund
on Monday approved EUR1.58 billion in new assistance to debt-laden
Ireland.

AFP relates that the International Monetary Fund said it had
completed its latest review of the country's progress under the
EUR85-billion European Union bailout package for the country, and
was ready to release the newest tranche of its rescue loan.

The review had been delayed by a political upheaval sparked by the
country's economic collapse, which led to a new government being
elected in March, AFP notes.


=========
I T A L Y
=========


IDEAL STANDARD: Fitch Affirms 'B-' Long-Term Issuer Default Rating
------------------------------------------------------------------
Fitch Ratings has affirmed Ideal Standard International Sarl's
(Ideal Standard) Long-term Issuer Default Rating (IDR) at 'B-',
Short-term IDR at 'B' and senior secured notes rating at 'B+'. The
Outlook has been affirmed at Stable.

The affirmation follows Ideal Standard's announced offering of an
additional EUR25 million senior secured note. The company
announced on May 13 the pricing of an offering of an additional
EUR25 million 11.75% senior secured notes due 2018. The additional
notes will be issued on May 18, 2011 under the indenture dated
April 28, 2011 under which EUR250 million of senior secured notes
due 2018 were issued.

The additional offering follows investor interest after the
initial offer, as well as favorable capital market conditions. The
net proceeds of the offering will be used for general corporate
purposes. Ideal Standard's operations, financial condition and
liquidity needs have not materially changed since the issue of the
previous notes in April 2011.

Fitch believes that the incremental gross debt of EUR25 million
will not materially impact the financial structure of the group
(funds from operations adjusted leverage is now expected to be
4.5x in 2013), but will increase Ideal Standard's liquidity and
improve its financial flexibility. In addition, the agency notes
that due to the limited amount, the additional offering will not
have any material impact on the Recovery Rating of 'RR2' assigned
to the senior secured notes, based on which the notes were
assigned a 'B+' rating, two notches higher than the Ideal
Standard's 'B-' IDR. The senior secured notes 'RR2' rating
reflects high recovery expectations (71%-90%) in the event of
default. The senior secured notes rank below only a small amount
of super senior UK pension liabilities and a small amount of a
super senior revolving credit facility (EUR15m available). The
notes benefit from guarantees from the majority of the company's
operating subsidiaries and are secured against the majority of the
group's assets.

Ideal Standard is one of the market leaders in Europe in the bath
accessories sector, with number one or two positions in a number
of geographical markets in the ceramic and fitting segments. The
group owns a comprehensive portfolio of well-known brands covering
a wide spectrum of market segments from entry-level to luxury
products.


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


WORLD WIDE MINERALS: No Longer Has Resources to Recover Losses
--------------------------------------------------------------
World Wide Minerals Ltd. commented on current developments in its
long-running arbitration with Kazakhstan involving its investments
in that country in 1996 - 1997.  The issues in the arbitration
relate to default by Kazakhstan in repaying loans made to
Kazakhstan in 1996-1997 as well as losses suffered by World Wide
in Kazakhstan and the net value of uranium deposits and related
assets that World Wide had the right to acquire.  The arbitration
was commenced in 2006 and has been conducted under UN Arbitration
Rules.

In October, 2008, World Wide appointed the initial arbitrator in a
panel of three.  The Republic of Kazakhstan (ROK) and its nuclear
agency, Kazatomprom, then jointly appointed a second arbitrator.
The two arbitrators were to appoint a third arbitrator before the
end of 2008.  In the meantime, World Wide and its legal counsel
were assembling evidence for the commencement of the substantive
arbitration itself.

In September, 2009 the initial arbitration was put on hold when
World Wide and the ROK chose to simplify the process by appointing
a mutually agreed, sole arbitrator to determine certain
preliminary and substantive issues in connection with the
November, 1996 Loan Agreement.  This was done.  Written
submissions were made by both parties, an oral hearing was held in
London (UK) in December, 2009 (to deal with certain preliminary
issues) and a second oral hearing was held in Brussels (Belgium)
in July, 2010 (to deal with the remaining issues).  At the July
hearing the arbitrator reserved his decision.

The arbitrator's written decision on the issues debated at the
July 2010 hearing was delivered to the parties at the end of the
year, in a Final Award dated December 22, 2010.  In the Final
Award, the arbitrator (1) confirmed that he had jurisdiction over
all of the claims related to the Loan Agreement, including claims
for breach of the Foreign Investment Law and for breach of
customary international law, but (2) decided that all of the
claims were time-barred under the general three-year limitations
period under Kazakh law. On this basis, the arbitrator dismissed
all of World Wide's claims.

On January 20, 2011, World Wide filed a request with the
arbitrator for a supplementary award, on the grounds that the
arbitrator had failed to consider the claims under the Foreign
Investment Law and under customary international law for illegal
conduct of state bodies and officials that was not and could not
have been discovered prior to September 2004.  The arbitrator
denied World Wide's request in a written decision dated March 16,
2011.

Since 1998, World Wide has invested millions of dollars of its own
capital in an attempt to recover its investment and damages for
lost opportunity.  It also entered into agreements with unrelated
parties, including law firms, to pay costs contingent upon
recovery of the claims.  At this time, World Wide has no further
resources with which to continue its efforts to recover its losses
against either ROK or Kazatomprom.


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


VAN DER MOOLEN: Lacked Sufficient Risk Management, Probe Reveals
----------------------------------------------------------------
Maud van Gaal and Fred Pals at Bloomberg News, citing an
investigation ordered by the Enterprise Chamber of the Amsterdam
Appeals Court, report that Van der Moolen Holding NV lacked
sufficient risk management and its governance had flaws in the
period leading up to the Dutch stockbroker's bankruptcy in 2009.

According to Bloomberg, court-appointed investigators Kees
Scholtes and Sietze Hepkema related in a May 13 report that
Managers didn't seem in control of Mr. Van der Moolen's dividend-
arbitrage activities, and attention to capital management and
external financing was limited.

The period under investigation ran from January 2005 to September
2009, when the 117-year-old Dutch stockbroker was declared
bankrupt after posting three straight years of losses, Bloomberg
relates.  Dutch investor group VEB and insurer ASR Nederland NV
asked the Enterprise Chamber to investigate the firm's management,
Bloomberg discloses.  They now can ask the court to assert
mismanagement, which may lead to damage claims, Bloomberg notes.

                      About Van der Moolen

Headquartered in Amsterdam, Netherlands, Van der Moolen Holding
N.V. -- http://www.vandermoolen.com/-- was an international
securities trading and brokerage firm that specialized in
providing low-cost liquidity in markets worldwide.  Its business
was to make money on financial markets, as a broker and
proprietary trader in securities, futures, derivatives indexes and
exchange traded funds.

Van der Moolen, once the fourth-biggest market maker on the New
York Stock Exchange, was declared bankrupt in September 2009 after
posting three consecutive years of losses.


===========
R U S S I A
===========


METALLURGICAL COMM'L: Moody's Changes Outlook on 'B3' Ratings
-------------------------------------------------------------
Moody's Investors Service has changed the outlook to positive from
stable on the B3 long-term local and foreign-currency deposit
ratings of Metallurgical Commercial Bank (Metcombank). At the same
time, Moody's has affirmed Metcombank's E+ standalone bank
financial strength rating (BFSR) and B3/Not Prime long-term and
short-term bank deposit ratings. The BFSR maps to the long-term
scale of B3, and the outlook on the BFSR is stable.

Concurrently, Moody's Interfax Rating Agency has upgraded long-
term national-scale credit rating (NSR) to Baa2.ru from Baa3.ru.
Moscow-based Moody's Interfax is majority owned by Moody's, a
leading global rating agency. The NSR carries no specific outlook.

RATINGS RATIONALE

According to Moody's, the outlook change is driven by (i)
continued diversification of Metcombank's business profile
reflected in the increasing number of products and clients in its
retail and SME portfolio, and improvements in its regional
coverage; (ii) gradual decline of related-party lending; (iii)
resilience to the global financial crisis, which has enabled the
bank to demonstrate good financial performance; and (iv) the
rating agency's expectations of further improvement in
diversification of the bank's funding base and loan portfolio

Since 2009, Metcombank has been implementing its strategy related
to diversification of its business. During 2010, the bank's SME
and retail portfolio (mainly represented by auto loans) grew by
36% and 251%, respectively, year-on-year, and accounted for 12.3%
and 30% of the total loan book, respectively, as at year-end 2010.
Moody's observes that the level of Metcombank's related-party
lending to Russia's largest steel producer -- Severstal Group --
was on declining trend over the past two years. The level of
related-party lending in 2010 (according to audited IFRS)
decreased to 58% of Tier 1 and 10% of the loan book (2009: 77% and
20%, respectively, and 2008: 86% and 27%, respectively). In
addition, 54% of related-party loans were collateralised by
related-party deposits and by the bank's own promissory notes,
which mitigates the credit risk.

During 2010, the bank demonstrated resilience to the global
financial crisis, which was reflected in the bank's good financial
performance in 2010. Metcombank's profitability improved in 2010,
supported by increased net interest margin (NIM) of 5.2% (2009:
3.4%), mainly as a result of the performance of high-yield credit
products. The bank's total capital adequacy ratio (CAR) -- at
14.9% -- was above the regulatory requirement as at year-end 2010
(according to Russian Accounting Standards), and the total equity-
to-assets ratio was 10.7% (according to IFRS). The bank is
improving its capital generation capacity, and a new capital
increase of RUB300 million (US$10 million) is planned by year-end
2011. Metcombank's loan portfolio continued to perform somewhat
better than those of the bank's peers, with problems loans
(defined as impaired and restructured) accounting for 4.2% of
gross loans.

At the same time, Moody's notes that Metcombank's undiversified
funding base -- with very high concentration to one customer
(Severstal Group) -- remains one of the main factors constraining
the bank's deposit ratings. Such a high concentration to one
customer (74% of total non-equity finding as at year-end 2010) and
volatility of these funds exerts negative pressure on the bank's
liquidity position and renders it vulnerable to the substantial
withdrawal of funds. This situation is somewhat mitigated by the
long-standing close business relationship between Metcombank and
Severstal Group, which have an agreement whereby Severstal Group
should maintain a minimum balance on its deposit and current
accounts amounting to RUB5 billion and RUB2 billion, respectively.
Moody's also notes that the bank's loan book grew by 72% in 2010.
Although, currently, the bank's asset quality is adequate, Moody's
cautioned that the new loan book may reveal higher risks as it
starts to season, which is likely to result in an increase of
problem loans and loan loss provision coverage.

Any possible upgrade of Metcombank's B2 ratings would be
contingent on (i) its ability to diversify its funding base away
from the largest related-party depositor, (ii) further
improvements in diversification of its loan portfolio and a
decline of related-party lending, and (iii) the bank's ability to
maintain good financial indicators -- especially in asset quality,
in the context of a rapidly growing retail and SME loan book.

PREVIOUS RATING ACTION & METHODOLOGY USED

The principal methodologies used in this rating were Bank
Financial Strength Ratings: Global Methodology published in
February 2007, and Incorporation of Joint-Default Analysis into
Moody's Bank Ratings: A Refined Methodology published in March
2007.

Moody's previous rating action on Metcombank was implemented on
April 27, 2009, when first-time ratings were assigned.

Headquartered in the City of Cherepovets, North-West region of
Russia, Metcombank reported total audited IFRS assets of RUB19.7
billion (US$648 million) and net income of RUB245 million (US$8.1
million) as at year-end 2010.

Moody's Interfax Rating Agency's National Scale Ratings (NSRs) are
intended as relative measures of creditworthiness among debt
issues and issuers within a country, enabling market participants
to better differentiate relative risks. NSRs differ from Moody's
global scale ratings in that they are not globally comparable with
the full universe of Moody's rated entities, but only with NSRs
for other rated debt issues and issuers within the same country.
NSRs are designated by a ".nn" country modifier signifying the
relevant country, as in ".ru" for Russia. For further information
on Moody's approach to national scale ratings, please refer to
Moody's Rating Implementation Guidance published in August 2010
entitled "Mapping Moody's National Scale Ratings to Global Scale
Ratings."

ABOUT MOODY'S AND MOODY'S INTERFAX

Moody's Interfax Rating Agency (MIRA) specializes in credit risk
analysis in Russia. MIRA is controlled by Moody's Investors
Service, a leading provider of credit ratings, research and
analysis covering debt instruments and securities in the global
capital markets. Moody's Investors Service is a subsidiary of
Moody's Corporation (NYSE: MCO).


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


CAJA DE AHORROS: Fitch Puts 25 Classes of MICH on Watch Negative
----------------------------------------------------------------
Fitch Ratings has placed 25 classes of multi-issuer cedulas
hipotecarias (MICH) that include Caja de Ahorros del Mediterraneo
(CAM, 'BB+'/Stable/'B') cedulas hipotecarias (CH) as part of their
collateral on 'AAsf' Rating Watch Negative (RWN). A total of 21
transactions are affected.

The RWN is the result of four areas of concern; the downgrade of
CAM to below investment grade, the lack of a formal public OC
commitment, cover pool data, and reduced over-collateralization
(OC). If these issues are not addressed, the transactions could be
downgraded to the 'Asf' rating category.

On April 1, 2011, Fitch downgraded CAM to 'BB+/Stable/'B' from
'BBB+/RWE/'F2'/RWN following the termination of its integration
plan to form a mutual cross-support scheme with four other
financial institutions. As per Fitch's MICH criteria, for CH
issuers with weaker credit profiles (rated 'F3' or below) that are
unable or unwilling to provide public and formal OC commitments,
Fitch only applies partial credit to reported OC levels in its
ultimate principal redemption analysis, with the minimum credit
being the legal minimum imposed by the legislation. Fitch has
discussed with CAM the possible effect on its participated MICH
deals resulting from the current lack of a public and formal OC
commitment. CAM has indicated that it will be making a public
commitment as to the minimum level of its OC. When CAM makes such
a commitment, Fitch will analyze its nature and take it into
account in its rating analysis.

Cover pool data is a key part of Fitch's analysis. Fitch has
identified a significant increase in the size of the cover pool
backing CAM's covered bonds in the data that it provides. Fitch
has received an updated figure of CAM's mortgage cover pool data
as of end-December 2010, which indicates an increase of EUR5.3
billion to EUR33 billion versus the original data provided. CAM
has provided the cover pool breakdown and composition based on the
increased cover pool and has presented explanations for such
increase. Fitch is in the process of analyzing the new data
provided in order to finalize the calculation of supporting OC
across various stress scenarios.

CAM's OC has recently decreased. This reduction is due to the
recent issuance of EUR3 billion CH, which implies a net increase
in outstanding CH of EUR2.7 billion since end-December 2010.
Taking the increased cover pool into consideration, CAM's current
OC would stand at 143%, a reduction from 164% as per the original
end-December 2010 data provided. OC is calculated as total cover
pool excluding securitizations divided by outstanding CH minus
one.

Fitch expects to resolve the RWN on CAM-participated MICH deals
upon clarification of the outstanding data issues and confirmation
of CAM's decision with regards to a public OC commitment.


IM CAJAMAR: Fitch Affirms Ratings on Three Tranches at 'CCsf'
-------------------------------------------------------------
Fitch Ratings has affirmed 19 tranches and downgraded one tranche
of IM Cajamar Fondo de Titulizacion de Activos 3-6, a series of
Spanish RMBS transactions.

The IM Cajamar series comprises residential mortgage loans to
borrowers located mainly in the Andalucia and Murcia area. The
pools in all deals have similar characteristics with original
loan-to-value ratios (LTVs) at closing of up to 75% and all pools
having a strong regional concentration in Andalucia of at least
40%. Despite the similarity in collateral composition, the
performance of IM Cajamar 5 and 6 has been weaker than the other
more seasoned transactions IM Cajamar 3 and 4 in terms of arrears
and default trends.

IM Cajamar 3 and 4 continue to display relatively good
performance, with IM Cajamar 3's reserve fund almost fully
replenished using excess spread generated on the past four payment
dates. The two transactions have reported low rates of three
months plus arrears (0.6% and 0.3% of current pool balance
respectively), while cumulative gross defaults represent 1.6% and
1.2% of the original portfolio balance. The assets in these pools
have reported weighted average current LTVs of 54.4% (IM Cajamar
3) and 57.7% (IM Cajamar 4).

On the other hand, cumulative gross defaults in IM Cajamar 6 stood
at around 3.1% of original pool balance as of February 2011, and
dynamic three months plus arrears levels have reached 1.1% of the
current portfolio. Fitch's concern over the pipeline of potential
defaults in the upcoming payment dates is the main reason for the
downgrade of the IM Cajamar 6's class D tranche to 'CCCsf'. Given
the current level of excess spread being generated by the
transaction, Fitch expects the level of period defaults (defined
as loans in arrears by more than 12 months) to exceed the excess
funds in upcoming quarters, which may result in further reserve
fund draws caused by provisioning. Recoveries from defaulted loans
incurred to date may boost gross excess spread and help fund
expected provisions as well as replenish the reserve fund in the
future. Given the lengthy foreclosure timing in Spain, which may
take up to three years, the timing of these cash flows remains
uncertain, which is why, to date, the excess revenue generated by
the transaction has been insufficient to replenish the reserve
fund.

Similarly, in IM Cajamar 5, the current pipeline of future
defaults (with three months plus arrears at 1% of current balance)
is expected to lead to further reserve fund draws. This concern is
reflected by the Negative Outlooks assigned to IM Cajamar 5's
notes.

Fitch believes that the expected increase in interest rates and
the high levels of unemployment in Spain, especially in the
Andalucia region pose a risk to the future performance of the
underlying assets in these deals. This concern is reflected in the
Negative Outlooks assigned primarily to the mezzanine tranches.

The ratings actions taken are:

IM Cajamar 3, Fondo de Titulizacion de Activos:

   -- Class A (ISIN ES0347783005) affirmed at 'AAAsf'; Outlook
      Stable; Loss Severity Rating of 'LS1'

   -- Class B (ISIN ES0347783013) affirmed at 'A+sf'; Outlook
      Stable; Loss Severity Rating of 'LS2'

   -- Class C (ISIN ES0347783021) affirmed at 'A-sf'; Outlook
      Stable; Loss Severity Rating of 'LS4'

   -- Class D (ISIN ES0347783039) affirmed at 'BBB-sf'; Outlook
      Negative; Loss Severity Rating of 'LS3'

   -- Class E (ISIN ES0347783047) affirmed at 'CCCsf'; Recovery
      Rating 'RR4'

IM Cajamar 4, Fondo de Titulizacion de Activos:

   -- Class A (ISIN ES0349044000) affirmed at 'AAAsf'; Outlook
      Stable; assigned a Loss Severity Rating of 'LS1'

   -- Class B (ISIN ES0349044018) affirmed at 'AAsf'; Outlook
      Negative; assigned a Loss Severity Rating of 'LS3'

   -- Class C (ISIN ES0349044026) affirmed at 'A+sf'; Outlook
      Negative; assigned a Loss Severity Rating of 'LS4'

   -- Class D (ISIN ES0349044034) affirmed at 'BBB-sf'; Outlook
      Negative; assigned a Loss Severity Rating of 'LS3'

   -- Class E (ISIN ES0349044042) affirmed at 'CCsf'; Recovery
      Rating 'RR5'

IM Cajamar 5, Fondo de Titulizacion de Activos:

   -- Class A (ISIN ES0347566004) affirmed at 'AAAsf'; Outlook
      revised to Negative from Stable; Loss Severity Rating of
      'LS1'

   -- Class B (ISIN ES0347566012) affirmed at 'AAsf'; Outlook
      Negative; Loss Severity Rating of 'LS4'

   -- Class C (ISIN ES0347566020) affirmed at 'Asf'; Outlook
      Negative; Loss Severity Rating of 'LS3'

   -- Class D (ISIN ES0347566038) affirmed at 'BBsf' Outlook
      Negative; Loss Severity Rating of 'LS3'

   -- Class E (ISIN ES0347566046) affirmed at 'CCsf'; Recovery
      Rating 'RR5'

IM Cajamar 6, Fondo de Titulizacion de Activos:

   -- Class A (ISIN ES0347559009) affirmed at 'AAsf' Outlook
      Stable; Loss Severity Rating revised to 'LS2' from 'LS1'

   -- Class B (ISIN ES0347559017) affirmed at 'Asf' Outlook
      Stable; Loss Severity Rating of 'LS4'

   -- Class C (ISIN ES0347559025) affirmed at 'BBBsf'; Outlook
      revised to Negative from Stable; Loss Severity Rating of
      'LS5'

   -- Class D (ISIN ES0347559033) downgraded to 'CCCsf' from
      'Bsf'; assigned a Recovery Rating of 'RR4'

   -- Class E (ISIN ES0347559041) affirmed at 'CCsf'; Recovery
      Rating 'RR5'.


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


BLUE CEDARS: Aspen Leisure Acquires Firm Out of Administration
--------------------------------------------------------------
Catherine Deshayes at Business Sale reports that Aspen Leisure has
acquired Blue Cedars Leisure out of administration.

PricewaterhouseCoopers' Tony Barrell and Matthew Hammond were
appointed as joint administrators to Blue Cedars after it was
placed into administration earlier this month, according to
Business Sale.

"Blue Cedars Leisure faced severe cash flow difficulties due to
the current economic climate and had difficulties in meeting its
financial obligations.  With the support of its key stakeholders
the company pursued a sale of the business and assets, which has
preserved 56 jobs and allowed one of Wolverhampton's historic and
best loved hotels to continue," Business Sale quotes Mr. Barrell
as saying.

Business Sale notes that the administrators confirmed that Aspen
Leisure will be 'honoring all deposits paid in respect of bookings
for future weddings and other events at The Mount Hotel &
Conference Centre.'

Blue Cedars Leisure operated the popular weddings and meetings
venue The Mount Hotel & Conference Centre in Wolverhampton.


C&G CONCRETE: Goes Into Administration, 120 Jobs at Stake
---------------------------------------------------------
Construction Enquirer reports that C&G Concrete has been placed
into administration following a petition to wind the firm up.

Administrators Eddie Williams and Matthew Hammond of PwC are
hoping to save jobs among the 120 staff by selling the firm
quickly, according to Construction Enquirer.

The report notes that administrators have only been appointed to
C&G Concrete and other parts of the group including FH Gilman & Co
are trading as normal.

PwC said the business had faced some significant challenges,
particularly the adverse weather conditions during the winter
months of 2010, Construction Enquirer says.

C&G Concrete is a producer of aggregates, ready mixed concrete and
mortar for the construction industry with a head office in
Stamford.  It has been in business for over 50 years and operates
from three quarries and a number of plants throughout the
Lincolnshire, Humberside and Peterborough area.


COMET: Kesa Electricals May Opt for Pre-Pack or CVA
---------------------------------------------------
James Davey at Reuters reports that Kesa Electricals is under
pressure from investors to deal with its loss-making UK business
Comet, which is dragging back the performance of the whole group.

Last week, Kesa reported deteriorating trading at Comet and CEO
Thierry Falque-Pierrotin said he would accelerate change at the
unit in an attempt to revive its fortunes, Reuters relates.

Mr. Falque-Pierrotin detailed a plan to cut Comet's annual costs
by GBP10 million (US$16.3 million), taking an exceptional charge
of GBP20 million, by consolidating 14 regional service centers to
two sites, reducing its warehouse network from three to two and
cutting head office staff, Reuters discloses.  But he stopped
short of more radical action some believe is required, Reuters
notes.

                            Pre-Pack

According to Reuters, Kesa could theoretically carry out a pre-
pack administration of Comet. This would see Comet's assets sold
immediately after it enters administration.

It would save Kesa the exit costs of closure but out of pocket
suppliers would be outraged, which would seriously impact on their
relationships with the rest of the group, Reuters states.

                              CVA

Reuters says Comet could also pursue a Company Voluntary
Arrangement (CVA), an insolvency procedure that would allow it to
continue trading while striking a deal with landlords to close
some stores and pay only part of the rent.  Comet's landlords are
unlikely to be sympathetic, Reuters notes.

                          Store Closures

Kesa has said it currently plans to close just five to 10 Comet
stores in 2011 as leases expire, Reuters discloses.  But analysts
reckon it could assist Comet's return to profitability by quickly
closing a further 20 of the worst performing stores, according to
Reuters.

Comet, Britain's second-biggest electrical chain after Dixons
Retail, trades from 248 stores employing some 10,000 people and
contributes about one third of Kesa's turnover.


DOLPHIN MUSIC: Goes Into Administration, Closes Stores
------------------------------------------------------
Music Gear News reports that Dolphin Music have gone into
administration, with the company's Managing Director Jason Tavaria
appointing Manchester-based administrators Beevers and Struthers.

Rumours intensified when Dolphin closed its last store in High
Street, Liverpool, according to Music Gear News.

Music Gear News says the business has already been purchased by
S&T Audio, who according to industry Web site mi-pro.co.uk have
asked trade suppliers to allow up to 30 days for initial stages of
the administration to be completed.

The musical instrument retailer had been troubled with accounting
irregularities and group losses for a number of years.

Auditors Grant Thornton commented in the public available accounts
filed January 2011, "The fact that additional funding has not been
secured for a longer period indicates the existence of a material
uncertainty which may cast significant doubt about the company's
ability to continue as a going concern in the longer term."

Dolphin recently sold its Huddersfield store to Dawsons music, but
unfortunately it seems this was not sufficient to recover the
large deficit and losses.


FOCUS (DIY): Wickes Building Acquires 13 Stores, Saves 345 Jobs
---------------------------------------------------------------
BBC News reports that Focus (DIY)'s administrators have agreed to
sell 13 stores to Wickes Building Supplies, saving 345 jobs in the
process.

Ernst & Young said it was in "detailed discussions with a number
of interested parties" over the sale of further stores, BBC News
relates.

As reported in the Troubled Company Reporter-Europe on May 10,
2011, H&V News related that Focus DIY fell into administration.
Ernst & Young, who were appointed as administrator, said that they
are looking for a buyer for the company's stores, which continue
to trade as normal, according to H&V News.

Focus (DIY) was founded by Bill Archer in 1987, with six stores in
the Midlands and the north of England.  The company now has 178
stores in England, Scotland and Wales, and employs more than 3,900
staff.


GALA CORAL: S&P Rates Proposed GBP250MM Sr. Secured Notes at 'B+'
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' issue rating
to the proposed GBP250 million senior secured notes to be issued
by Gala Group Finance PLC, a subsidiary of Gala Coral Group Ltd.
(Gala; B/Negative/--). The issue rating is one notch higher than
the corporate credit rating on Gala. "The recovery rating on the
proposed senior secured notes is '2', indicating our expectation
of substantial (70%-90%) recovery prospects in the event of a
payment default, although recovery prospects are at the low end of
this range," S&P stated.

"In addition, we assigned our 'CCC+' issue rating to the proposed
senior unsecured notes issued by Gala. The recovery rating on the
proposed senior unsecured notes is '6', indicating our expectation
of negligible (0%-10%) recovery prospects in the event of a
payment default," S&P related.

                         Recovery Analysis

"We value Gala on a going-concern basis, based on the company's
strong market share, leading brands, cash-generative business,
barriers to entry (regulation and licenses), and favorable U.K.
insolvency regime," S&P noted.

The committed senior secured bank facilities comprise a Term Loan
B and a revolving credit facility (RCF). The facilities also
include an uncommitted value-added tax (VAT) facility, which may
be established if a financial institution is willing to lend to
the company. The facilities benefit from a set of standard
financial covenants (leveraged ratio, interest and cash flow
coverage ratios, and maximum capital expenditures), and
nonfinancial covenants (restricting, among other things,
disposals, mergers, acquisitions, the incurrence of financial
indebtedness, and dividend payments). The legal documentation
gives Gala the ability to issue additional senior secured and
unsecured notes, provided that it applies the net proceeds either
to voluntary prepayment of the senior secured bank facilities or
to a permitted VAT repayment.

The proposed senior secured and senior unsecured notes (together,
the notes) benefit from similar nonfinancial covenants
(limitations on the incurrence of additional debt, the payment of
dividends, and restrictions on payments and investments). The
major part of these nonfinancial covenants will fall away if
the notes are rated in the investment-grade category. The notes
also benefit from a change of control clause and may incur
indebtedness if the last-12-months' fixed-charge coverage ratio is
greater than or equal to 2x.

'In order to determine recoveries, we simulate a default scenario.
On the path to default, we assume that Gala will be restructured
(triggered by a breach of its financial covenants) before payment
default occurs. As a gaming company, Gala operates in a highly
regulated sector. Therefore our hypothetical default scenario
assumes some decline in revenues and margins, primarily stemming
from the potential introduction of regulatory and tax reforms in
the U.K. and in Italy. It also assumes deterioration in the
current general economic environment, with rising unemployment
reducing consumers' discretionary spending and retail earnings,"
S&P stated.

"Under our scenario, EBITDA declines to about œ180 million by the
time of default in 2013. This is a substantial decline compared
with 2010 EBITDA," according to S&P.

"Under these assumptions, we calculate an enterprise value of
about GBP1,075 million at our simulated point of default,
equivalent to 6x EBITDA. In order to determine recovery prospects,
we then deduct œ100 million of priority obligations, which mostly
comprise enforcement costs and 50% of pensions deficit. This
leaves a net enterprise value of about GBP975 million available to
debtholders. We calculate that senior secured debt would be
approximately GBP1,250 million at default, including the Term Loan
B, fully drawn RCF, part-drawn VAT funding facility, and the
proposed senior secured notes (as they rank pari passu with the
senior secured bank facilities). On this basis, recovery prospects
for debt and prepetition interests would be in the 70%-90% range.
This translates into an issue rating of 'B+' and a recovery rating
of '2' on the senior secured notes," S&P stated.

"Our calculated recoveries leave negligible coverage for the
senior unsecured notes, leading to a recovery rating of '6' and an
issue rating of 'CCC+', two notches below the 'B' corporate credit
rating," said S&P.

"However, we could see some upside for coverage of the senior
secured debt if Gala were to issue unsecured notes in order to
prepay part of the senior secured debt. Equally, we could envisage
some downside if the company were to draw more from the VAT
funding facility," S&P added.


GALA ELECTRIC: Moody's Assigns (P)B2 Rating to Sr. Secured Notes
----------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)B2 rating
to the issuance of GBP250 million senior secured Notes, due 2018,
by Gala Group Finance Limited and a provisional (P)Caa2 rating to
the issuance of GBP400 million senior Notes, due 2019, by Gala
Electric Casinos Limited. It has also upgraded the Probability of
Default Rating to B3 from Caa1. The Corporate Family Rating and
rating outlook remain unchanged at B3 stable.

Ratings assigned:

   Issuer: Gala Group Finance Limited

   -- New senior secured Notes rating assigned to new GBP250
      million Notes at (P)B2.

   Issuer: Gala Electric Casinos Limited

   -- New senior Notes rating assigned to new GBP400 million Notes
      at (P)Caa2.

Currently both GGF and GEC are Limited companies. However, prior
to the closing of the Notes issuance both will be converted to
plcs.

RATINGS RATIONALE

The (P)B2 rating on the new senior secured Notes reflects that
they will rank pari passu with the new senior secured facilities
and senior to the new senior Notes (rated (P)Caa2). The (P)Caa2
rating on the new senior Notes reflects their contractually and
structurally subordinated position and that they will rank behind
over GBP1 billion in new financial debt as well as non financial
debt such as trade creditors.

The proceeds of the senior Notes issuance are intended to make a
Proceeds Loan from GEC to GGF. GGF intends to use the net proceeds
from this loan and the senior secured Notes issuance as well as
amounts borrowed under the new senior secured facilities to repay
the existing senior facilities.

The senior secured Notes will be jointly and severally guaranteed
on a senior basis by all the material and certain other
subsidiaries that guarantee the new senior secured credit
facilities, other than subsidiaries in Italy. For the year ended
September 2010, excluding the PropCo group, these represented
approximately 95% of total assets and 95% of EBITDA before
exceptional items. The senior Notes will be guaranteed on a
subordinated basis by the same subsidiaries.

GEC's CFR remains unchanged at B3. This reflects (i) GEC's high
leverage (as adjusted by Moody's) expected at around 7x in FY2011,
(ii) the turnaround task recently undertaken at the Coral
division, (iii) the continued loss of market share to large
competitors and (iv) the company's historic lack of investment.
These risks are tempered by the company's still strong offline
market position as the most diversified gaming operator in the UK,
new consumer focused management with strong retail experience and
well-established brands with significant barriers to entry in
offline.

The ratings also reflect the company's weak credit metrics and
uncertainty about the pace at which these might improve given the
macroeconomic uncertainties prevailing and the high competitive
intensity in some of its markets. However, the ratings also
incorporate the positive steps taken by Gala Coral to improve its
operations, as evidenced by the recent turnaround at Gala Bingo,
and new management's plans to improve customer focus, product
development and portfolio management.

If the refinancing of the existing senior facilities is successful
then Moody's would recognize the company's ability to access the
capital markets and the associated refinancing of all its
outstanding financial debt. In doing so it will have extended the
maturity profile from an average life of 2.9 years to 7.3 years as
well as improving covenant headroom. The new senior secured
facilities contain maintenance covenants referencing net leverage,
interest cover, fixed charge cover and capex spend and the rating
agency assumes that the initial headroom will be set between 20-
25%.

The new senior secured and senior Notes will both benefit from
incurrence covenants including a 2x fixed charge coverage test.
However, the senior secured Notes will not benefit from the bank
debt's maintenance financial covenants. Although the senior
secured Notes indirectly rank pari passu with the bank debt
following enforcement, control over enforcement processes is the
exclusive right of the senior facility lenders until they hold
less than 25% of the outstanding aggregate principal amount.

The upgrade of the PDR to B3 (in line with the CFR) from Caa1
solely reflects the change to a capital structure that consists of
both bank and bond debt from an all bank structure. Concurrently,
Moody's assumption of the group recovery rate has been reduced to
50% from 65%

The stable outlook reflects Moody's expectations that recent
strategic initiatives to improve customer focus and product
development as well as increased capital expenditure leads to
EBITDA growth and a reduction in leverage from 2012 onwards. It
also incorporates an assumption that the company preserves at all
times an adequate liquidity profile.

Positive rating pressure could develop if GEC succeeds in halting
the decline in underlying staking levels in Coral, while
maintaining its improved performance in Gala Bingo, with adjusted
leverage falling to under 6.5x, EBIT/Interest coverage above 1.2x
and meaningful positive free cash flow. Conversely, negative
pressure could quickly materialize if GEC's leverage were to
increase above 7.5x on an adjusted basis or if the company's
EBIT/interest coverage ratio were to decline below 1x. The rating
could also come under pressure if the criteria set for the stable
outlook were not met or if the company is unable to refinance its
existing senior facilities.

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

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

Gala Electric Casinos Limited has its registered office in London,
England. Through its subsidiaries it owns and operates a
diversified gaming company (sales GBP1.2 billion for the year
ending September 2010) with operations mainly in the UK. Following
the closing of a restructuring in June 2010, funds managed by the
principle investors (Apollo, Cerberus, Park Square and York
Capital) indirectly hold a majority in Gala shares.


GALA GROUP: Fitch Assigns 'BB(exp)' Rating to Notes Due 2017
------------------------------------------------------------
Fitch Ratings has assigned Gala Group Finance plc's (GGF) planned
GBP250 million 2017 senior secured notes an expected rating of
'BB(exp)' and a Recovery Rating of 'RR1'. The agency has also
assigned Gala Electric Casino plc's (GEC) planned GBP400 million
2018 senior notes an expected rating of 'CCC(exp)' and a Recovery
Rating of 'RR6'. The final ratings on the notes are contingent
upon receipt of final documents conforming to information already
received by Fitch. GGF is owned by GEC, which in turn is owned by
Gala Coral Group Limited ('B'/Negative), the intermediate holding
company of the UK-based Gala Coral Group, which operates in the
gaming sector across the sports betting, casino, and bingo sub-
sectors.

In conjunction with a new GBP900 million senior facility
agreement, which is subject to completion of issuance of the two
series of notes, the notes will be used to refinance bank debt of
GBP1,538 million outstanding as of May 9, 2011.

The senior secured notes will be issued by GGF, at the same level
of borrowing as the GBP900 million senior secured bank debt. They
will rank pari passu with this bank debt and will benefit on a
first ranking basis from substantially the same security package,
to which GEC will have a second ranking recourse. The security
package will include guarantees from GEC and its subsidiaries
that, excluding Gala PropCo One Ltd and its subsidiaries, account
for approximately 95% of FY10 consolidated EBITDA and gross
assets.

The notes contain a cross-default clause with each other and with
debt incurred under the GBP900 million senior facility agreement,
but not debt incurred by Gala PropCo One Ltd and its subsidiaries.

Other draft conditions include restrictions on paying dividends.
Additionally, the notes can be put back to the issuer at 1% over
par upon a change of control event (defined as an event in which
more than 50% of GCG Manager SA, the vehicle through which Gala
Coral Group is controlled, is owned by a person or group other
than the shareholders that currently individually own at least 5%
of GCG and senior management) or if all or substantially all of
the company's assets are sold.

Using conservative assumptions under Fitch's Recovery Ratings
methodology, with a 10% discount to EBITDA applied to the
company's depressed post-restructuring FY10 EBITDA and a
distressed enterprise value/EBITDA multiple of 5.5x, the agency's
analysis results in above-average recovery prospects (91%-100%)
for senior secured noteholders and no recovery prospects, for
senior noteholders, due to their subordinated position in the
asset distribution waterfall. This results in an 'RR1'and an
'RR6'for the two sets of notes, respectively.


LIFE: Figureheads Pledge to Save Pool
-------------------------------------
Rachel Ryan at The Westmorland Gazette reports that Local MP Tim
Farron and South Lakeland District Council have promised to do all
they can to save the Lakeland Initiative Fitness Excellence and
Wellbeing Centre (LIFE) at Troutbeck Bridge, which went into
administration last week.

The pool, which has found trading increasingly difficult because
of rising energy costs and falling user numbers, went into
administration last week, according to The Westmorland Gazette.

"I hope to bring everyone round the table to discuss a way
forward.  I will also be working with the Friends of Troutbeck
Pool to see how I can help them too.  I urge local people to get
on board and help save this vital local asset," The Westmorland
Gazquoted Tim Farron, MP for Westmorland and Lonsdale, as saying.

Former LIFE director David Howell, who met with SLDC and Tim
Farron's office to put together a Save Our Pool campaign, is
pleading for locals to commit to secure the future of the pool,"
The Westmorland Gazette discloses.


MINT CATERING: To Officially Enter Liquidation
----------------------------------------------
David Quainton at eventmagazine.co.uk reports that Mint Catering
Ltd is to officially enter liquidation in the coming days.

According to the report, the firm has had initial meetings with
liquidator Richard Long and Co and a creditors meeting will be
held in the next two weeks.

Mint, says eventmagazine.co.uk, has been in financial difficulty
for some time and its Companies House records highlight this.  In
May last year, the firm was issued with a 'First Gazette', which
is effectively three months' notice.  It survived that, but Mint's
latest accounts show that, as of April 30 last year, it was
GBP864,686 in debt, the report discloses.

"Last summer Mint performed well, but it simply hasn't been able
to re-create that success this year," eventmagazine.co.uk quotes
founder Peter Phillips as saying.  "Maybe it hasn't responded fast
enough to what has been happening in the marketplace. The industry
has problems and Mint has been trying to raise additional revenue,
but it simply hasn't worked."

Mr. Phillips said the firm was trying to help clients in need of
replacement caterers, according to eventmagazine.co.uk.

Mint Catering is a UK-based catering company.


PRINCIPLE LEISURE: Goes Into Administration, Seeks Buyer
--------------------------------------------------------
BBC News reports that talks are continuing to secure the future of
more than 300 jobs at a Wearside leisure group which went into
administration.

Principle North East, Principle Yorkshire and Principle Midland
were trading subsidiaries of the Washington-based Principle
Leisure Group, according to BBC News.  The report relates that the
group operated about 12 bars in the north-east of England,
Nottingham and Sheffield, but went bust in April.

Administrators are seeking a buyer for its business and assets.

BBC News notes that Begbies Traynor said a deal would lead to the
continuity of trade for the group's bars and restaurants,
including Popolo Newcastle, River Bar in Washington and The
Blackbird in Ponteland.

The venues are continuing to operate under license, BBC News
discloses.


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


* Banks Failing Stress Tests Must Seek Help From Private Investors
------------------------------------------------------------------
Jim Brunsden and Ben Moshinsky at Bloomberg News report that
finance ministers on Tuesday said that banks and regulators should
aim to find private investors to reinforce the capital of lenders
that fail this year's round of European Union stress tests.

Public money should be used "only as a last resort, in case of
need and subject to strict conditionality," the finance ministers,
as cited by Bloomberg, said in an e-mailed statement.  According
to Bloomberg, they said that any funding support for banks must
comply with the region's rules on state-aid.

"Any public support will be contingent on the submission of a
restructuring plan," Bloomberg quotes the finance ministers of the
27-nation EU as saying on Tuesday after a meeting in Brussels.

Ninety banks will be expected to maintain a Core Tier 1 capital
ratio of at least 5% under the stress-test scenarios, the European
Banking Authority, which is carrying out the tests, said earlier
this month, Bloomberg recounts.  This year's exams will include a
review of how lenders would handle a 0.5% economic contraction in
the euro area in 2011 as well as a 15% drop in European equity
markets, Bloomberg states.

Hungarian Economy Minister Gyorgy Matolcsy told journalists in
Brussels that the results will be published in June, Bloomberg
notes.


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------

June 6, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Canadian-American Cross-Border Insolvency Symposium
        Fairmont Royal York, Toronto, Ont.
           Contact: 1-703-739-0800; http://www.abiworld.org/

June 9-12, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Central States Bankruptcy Workshop
        Grand Traverse Resort and Spa, Traverse City, Mich.
              Contact: http://www.abiworld.org/

July 21-24, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Northeast Bankruptcy Conference
        Hyatt Regency Newport, Newport, R.I.
           Contact: 1-703-739-0800; http://www.abiworld.org/

July 27-30, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Southeast Bankruptcy Workshop
        The Sanctuary at Kiawah Island, Kiawah Island, S.C.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Aug. 4-6, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Mid-Atlantic Bankruptcy Workshop
        Hotel Hershey, Hershey, Pa.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 14, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     NCBJ/ABI Educational Program
        Tampa Convention Center, Tampa, Fla.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. __, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     International Insolvency Symposium
        Dublin, Ireland
           Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 25-27, 2011
  TURNAROUND MANAGEMENT ASSOCIATION
     Hilton San Diego Bayfront, San Diego, CA
        Contact: http://www.turnaround.org/

Dec. 1-3, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     23rd Annual Winter Leadership Conference
        La Quinta Resort & Spa, La Quinta, Calif.
           Contact: 1-703-739-0800; http://www.abiworld.org/

April 3-5, 2012
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Spring Conference
        Grand Hyatt Atlanta, Atlanta, Ga.
           Contact: http://www.turnaround.org/

Apr. 19-22, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Annual Spring Meeting
        Gaylord National Resort & Convention Center,
        National Harbor, Md.
           Contact: 1-703-739-0800; http://www.abiworld.org/

July 14-17, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Southeast Bankruptcy Workshop
        The Ritz-Carlton Amelia Island, Amelia Island, Fla.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Aug. 2-4, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Mid-Atlantic Bankruptcy Workshop
        Hyatt Regency Chesapeake Bay, Cambridge, Md.
           Contact: 1-703-739-0800; http://www.abiworld.org/

November 1-3, 2012
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Annual Convention
        Westin Copley Place, Boston, Mass.
           Contact: http://www.turnaround.org/

Nov. 29 - Dec. 2, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Winter Leadership Conference
        JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
           Contact: 1-703-739-0800; http://www.abiworld.org/

April 10-12, 2013
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Spring Conference
        JW Marriott Chicago, Chicago, Ill.
           Contact: http://www.turnaround.org/

October 3-5, 2013
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Annual Convention
        Marriott Wardman Park, Washington, D.C.
           Contact: http://www.turnaround.org/


                            *********

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

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

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

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


                            *********


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

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

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

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

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

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


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