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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

             Friday, June 10, 2011, Vol. 12, No. 114

                            Headlines



B U L G A R I A

MOSTSTROY AD: Unit Files for Insolvency


C Z E C H   R E P U B L I C

AE&E CZ: Declared Bankrupt by Brno Court
SAZKA AS: Ex-CEO May Have to Return Wages, Law Office Says


F R A N C E

PAGESJAUNES: Fitch Assigns 'BB' Rating to Senior Secured Notes


G E R M A N Y

BLUEBONNET FINANCE: Fitch Affirms 'BBsf' Rating on Class E Notes


H U N G A R Y

CIB BANK: Fitch Says Bank's Individual 'D/E' Rating is Unaffected
HUNGARIA GOLF: Birdland Golf Up for Sale After Owner's Liquidation
* HUNGARY: Mandatory Liquidations Up 7.3% in May 2011 vs. 2010


I R E L A N D

EUROCREDIT OPPORTUNITIES: Moody's Lifts Rating on D Notes to 'Ba2'
* IRELAND: 79 Credit Unions at "High Risk" of Failing


L U X E M B O U R G

TELENET FINANCE: Moody's Assigns (P)Ba3 Rating to 2021 Sr. Notes
TELENET FINANCE: Fitch Assigns 'BB+(exp)' Rating to Bonds Due 2021


N E T H E R L A N D S

OSIRIS INKJET: TenCate to Continue Firm's Activities


P O R T U G A L

LUSITANO MORTGAGES: S&P Lowers Rating on Class E Notes to 'B'


R O M A N I A

MEXXEM: Court Okays Reorganizational Plan


R U S S I A

ALLIANCE OIL: Fitch Gives 'B(exp)' Currency Rating to RUB5BB Bonds
KOKS FINANCE: Moody's Assigns (P)B3 Rating to Proposed Loan Notes
PROBUSINESSBANK: Fitch Expected 'B-(exp)' Rating to Unsec. Notes
SKB-BANK: Moody's Upgrades Long-Term Foreign Currency Rating to B1
TINKOFF CREDIT: Moody's Assigns B2 Rating to Notes; Outlook Stable


S E R B I A   &   M O N T E N E G R O

ZELJEZARA AD: Gov't. Violated Investor Rights, Creditors Say


S P A I N

CAMPOFRIO FOOD: S&P Affirms 'BB-' Long-Term Corp. Credit Rating
FONCAIXA FTPYME: S&P Affirms Rating on Class D Notes at 'D'


U N I T E D   K I N G D O M

ASTON MARTIN: S&P Assigns Preliminary 'BB-' Long-term Rating
CITRI: To be Placed Into Liquidation as Rescue Deal Fails
FINCH: Goes Into Voluntary Liquidation
KINETICS GROUP: Seaflame Subsidiary Goes Into Administration
MORPHEUS EUROPEAN: Fitch Affirms 'CCCsf' Rating on Class E Notes

NORTEL NETWORKS: Allocation of Sale Proceeds Under Consideration
REDMIRE STABLES: In Liquidation; Customers Out of Pocket


X X X X X X X X

* BOOK REVIEW: Beyond the Quick Fix


                            *********


===============
B U L G A R I A
===============


MOSTSTROY AD: Unit Files for Insolvency
---------------------------------------
Novinite.com reports that Moststroy Plovdiv, which is part of
Moststroy AD, has filed an application for insolvency.

Moststroy AD and three of its subsidiaries announced at the
beginning of October last year that they have filed for bankruptcy
after all their bank accounts were frozen because of unpaid debts,
Novinite.com recounts.

According to Novinite.com, a loan borrowed from the United
Bulgarian Bank, a unit of the National Bank of Greece SA, was due
on May 31, but Moststroy Plovdiv said it has no money.  Its
construction machines and other equipment have been seized by
Interlease, the firm that leased them, Novinite.com discloses.

Novinite.com relates that experts commented Sofia City Court
however decided not to presume insolvency as the company has
sufficient assets.

Under local legislation, a company, which has declared insolvency,
can restructure and draw up a rehabilitation plan, Novinite.com
notes.

Moststroy AD is a construction company believed to be controlled
by billionaire Vassil Bozhkov.


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


AE&E CZ: Declared Bankrupt by Brno Court
----------------------------------------
CTK, citing data from the insolvency register, reports that the
Regional Court in Brno has declared AE&E CZ bankrupt on the basis
of an insolvency petition filed by the company itself.

According to CTK, the firm's problems were caused by parent
company AE&E Group GmbH, which has been in insolvency since
November 2010.  The court connected a decision on insolvency with
a decision on bankruptcy because AE&E CZ is in liquidation, so by
law, its insolvency could not be resolved through reorganization
or discharge of debts, CTK notes.

AE&E CZ supplies boilers to heating plants.  The company currently
employs about 160 people.


SAZKA AS: Ex-CEO May Have to Return Wages, Law Office Says
----------------------------------------------------------
CTK reports that Jan Prochazka of law office Ambruz & Dark said
Ales Husak, former CEO of Sazka AS, could lose not only severance
payments but under certain circumstances, may even have to return
wages from the previous years.

Mr. Husak held the post of being Sazka's CEO and chairman of the
company's board at the same time.  Mr. Prochazka, as cited by CTK,
said Sazka's insolvency administrator Josef Cupka, who removed Mr.
Husak from the post of Sazka's CEO on Tuesday, could ask Mr. Husak
to return all wages and bonuses paid to him in the last three
years when he held both posts.

Jan Tuna, Mr. Husak's spokesman, told CTK that everything has been
arranged in a standard way and in harmony with law as in other
companies where people hold top managerial posts and are members
of a statutory body at the same time.

As reported by the Troubled Company Reporter-Europe, CTK related
that Sazka's bankruptcy took effect on May 30.  The decision on
Sazka's bankruptcy was made at a meeting of its creditors on May
27, CTK disclosed.  Under bankruptcy, the Sazka board of directors
loses its right to handle the company's assets, which will now be
administered by an insolvency administrator, CTK noted.  Sazka's
management wants to turn to court to defend itself against the
decision on bankruptcy, CTK said.

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


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


PAGESJAUNES: Fitch Assigns 'BB' Rating to Senior Secured Notes
--------------------------------------------------------------
Fitch Ratings has assigned PagesJaunes Finance & Co S.C.A.'s
senior secured notes a final 'BB' rating with a Recovery Rating
(RR) of 'RR2'.

This follows the receipt of the final description of the notes and
the confirmation that their proceeds were used to repay the Term
Loan A2.


=============
G E R M A N Y
=============


BLUEBONNET FINANCE: Fitch Affirms 'BBsf' Rating on Class E Notes
----------------------------------------------------------------
Fitch Ratings has upgraded Bluebonnet Finance plc's class B
floating-rate notes, due December 2016, and affirmed the ratings
of the other classes:

   -- EUR93.7m class B (XS0279762552): upgraded to 'Asf' from
      'BBBsf'; Outlook Stable;

   -- EUR85m class C (XS0279763360): affirmed at 'BBB-sf'; Outlook
      revised to Positive from Stable;

   -- EUR70m class D (XS0279764335): affirmed at 'BB+sf'; Outlook
      Stable;

   -- EUR40m class E (XS0280025786): affirmed at 'BBsf'; Outlook
      Stable;

The upgrades reflect the performance over the past year, which led
to a full redemption of the class A notes and partial repayment of
the class B notes. Although the latest quarterly collections, as
of the April 2011 interest payment date, recorded the lowest
levels since the transaction closed in December 2006, Fitch
believes that the performance of the senior classes can withstand
significant further deterioration by legal final maturity in
December 2016.

The issuer has not had a liquidity facility since January 2009. As
Fitch noted in its 2009 rating action, this means the issuer has
no means of covering interest shortfalls on the senior notes. The
issuer's performance is therefore reliant on a minimum periodic
collection rate being maintained, a task handled by the sub-
servicer Hudson Advisors Germany ('RSS2+D'/'CSS2+D'). The lack of
liquidity facility places a ceiling on the ratings, currently set
at 'Asf', in light of the possibility that temporary interruptions
in collections might present the issuer with payment difficulties.

However, there is still ample note interest coverage, partly
because the notes are benefitting from the current low level of
three-month Euribor. The presence of performing and sub-performing
loans (PLs and SPLs) in addition to non-performing loans (NPLs)
provides additional comfort since these collections are offered
voluntarily, and therefore rely less on the ability of the sub-
servicer.

Bluebonnet Finance plc is a refinancing of a loan facility
provided by Citigroup Inc. to Lone Star Fund V to acquire a
portfolio of PLs, SPLs and NPLs from a German mortgage bank.

At closing, the EUR2.8 billion pool consisted of German commercial
and residential (primarily largely multi-family) mortgage loans.
As of April 2011, the outstanding portfolio accounted for 2,046
unresolved claims for a total gross book value of EUR1,791
million, secured on properties whose aggregate market value is
EUR889 million. The properties are mainly located in West Germany
(60% by property value). NPLs remain the larger component (70% by
legal claim, compared to 52% at closing), while PLs have decreased
in their contribution to 8% from 24% at closing.


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


CIB BANK: Fitch Says Bank's Individual 'D/E' Rating is Unaffected
-----------------------------------------------------------------
Fitch Ratings has revised Hungarian CIB Bank Zrt's (CIB) and
Kereskedelmi es Hitelbank Zrt's (K&H) rating Outlooks to Stable
from Negative, and affirmed their Long-term Issuer Default Ratings
(IDRs) at 'A-'. At the same time, the agency has affirmed OTP Bank
Plc's (OTPH) Support Rating at '3' and revised the Outlook on the
'BB' Long-term IDR of its Russian subsidiary, OJSC OTP Bank
(OTPR), to Stable from Negative.

The rating actions follow the revision of the Outlook on Hungary's
Long-term IDRs to Stable from Negative.

CIB is fully owned by Italy's Intesa Sanpaolo ('AA-'/Stable), and
K&H is fully owned by Belgium's KBC Bank ('A'/Stable). Their IDRs
reflect the extremely high probability that support would be
provided by their parents, should this be necessary. At the same
time, CIB's Long-term IDR is currently constrained by the Country
Ceiling for Hungary. The banks' Individual Ratings are unaffected
by the rating action.

In Fitch's opinion, the propensity of the Hungarian authorities to
support OTPH remains extremely high due to OTPH's importance to
the Hungarian banking system and its dominant share of retail
deposits. However, the Support Rating indicates only a moderate
probability of support because of uncertainties about the ability
to provide support, reflected in the Hungary's Long-term foreign
currency IDR of 'BBB-'.

OTPR's Long- and Short-term IDRs and Support Rating are driven by
potential support from OTPH, which holds a 95.8% stake in OTPR.
Fitch believes that the parent would have a high propensity to
support OTPR in case of need, but its ability to do so must be
considered in the context of its own creditworthiness. OTPR's
Individual Rating is unaffected by this review.

The rating actions are:

CIB

   -- Long-term foreign currency IDR: affirmed at 'A-'; Outlook
      revised to Stable from Negative

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

   -- Individual Rating: unaffected at 'D/E'

   -- Support Rating: affirmed at '1'

K&H

   -- Long-term foreign currency IDR: affirmed at 'A-'; Outlook
      revised to Stable from Negative

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

   -- Individual Rating: unaffected at 'D'

   -- Support Rating: affirmed at '1'

OTPH

   -- Support Rating: affirmed at '3'

OTPR

   -- Long-term foreign currency IDR: affirmed at 'BB'; Outlook
      revised to Stable from Negative

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

   -- Local currency Long-term rating: affirmed at 'BB'; Outlook
      revised to Stable from Negative

   -- National Long-term rating: affirmed at 'AA-(rus)'; Outlook
      revised to Stable from Negative

   -- Individual Rating: unaffected at 'D'

   -- Support Rating: Affirmed at '3'


HUNGARIA GOLF: Birdland Golf Up for Sale After Owner's Liquidation
------------------------------------------------------------------
Realdeal.hu reports that Birdland Golf, Hungary's first
internationally-recognized 18-hole championship golf course, is
for sale for HUF1 billion (EUR3.76 million) following the
liquidation of its previous owner.

The golf course, which was owned by Hungaria Golf
Ingatlanforgalmazo-Fejleszto es Uzemelteto (HG) Kft., was built on
the territory of Bukfurdo's Birdland Golf & Country Club,
realdeal.hu says.  Next to the 80-hectare golf course stands the
five-star, 207-room Birdland Golf & Spa Resort - formerly operated
by Radisson SAS - which was renamed Greenfield Hotel Golf & Spa
last month.  There is also a villa park containing 166 apartments
on the territory.

According to the report, the hotel's owner has been CIB Bank Zrt.
since October 2010 and changed operators twice within a short
time.

HG's liquidation started in August 2010 following an unsuccessful
bankruptcy procedure.


* HUNGARY: Mandatory Liquidations Up 7.3% in May 2011 vs. 2010
--------------------------------------------------------------
MTI-Econews, citing company information provider Opten, reports
that the number of mandatory liquidations against Hungarian
companies rose to 1,600 in May, up 7.3% year-on-year and up almost
14% from the previous month.

The number of mandatory liquidations was down in April from the
previous month and rose just 1.7% from a year earlier, MTI
discloses.

According to MTI, the number of voluntary liquidations was 1,722
in May, up 38.4% year-on-year.


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


EUROCREDIT OPPORTUNITIES: Moody's Lifts Rating on D Notes to 'Ba2'
------------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of the
following notes issued by Eurocredit Opportunities Parallel
Funding I PLC:

Issuer: Eurocredit Opportunities Parallel Funding I PLC

   -- Class A EUR312,500,000 Senior Secured Floating Rate Notes
      due 2019, Upgraded to Aa1 (sf); previously on Aug 10, 2009
      Downgraded to Aa3 (sf)

   -- Class B EUR10,000,000 Senior Secured Deferrable Floating
      Rate Notes due 2019, Upgraded to A2 (sf); previously on Aug
      10, 2009 Downgraded to Baa2 (sf)

   -- Class C EUR8,000,000 Senior Secured Deferrable Floating Rate
      Notes due 2019, Upgraded to Baa1 (sf); previously on Aug 10,
      2009 Downgraded to Ba1 (sf)

   -- Class D EUR40,000,000 Senior Secured Deferrable Floating
      Rate Notes due 2019, Upgraded to Ba2 (sf); previously on Aug
      10, 2009 Downgraded to Caa1 (sf)

Ratings Rationale

Eurocredit Opportunities Parallel Funding I PLC, issued in April
2008, is a single currency Collateralised Loan Obligation backed
by a portfolio of mostly high yield European loans. The portfolio
is managed by Intermediate Capital Managers Limited. This
transaction has still about one year of reinvestment period. It is
composed of 94% senior secured from mostly European obligors.

According to Moody's, the rating actions taken on the notes result
primarily from the steady increase in the transaction's
overcollateralization ratios since the rating action in July 2009,
with an overall increase of around 8% of the most junior OC ratio
and 10% for the remaining three senior OC ratios. This increase is
a result of the decreasing notional of defaulting securities from
around EUR26 million in July 2009 to an amount around EUR 300,000
over the last one year. The slight improvement in the credit
quality is observed through an improvement in the average credit
rating (as measured by the weighted average rating factor 'WARF')
and a decrease in the proportion of securities from issuers rated
Caa1 and below. In particular, as of the latest trustee report
dated May 2011, the weighted average rating factor is currently
2754 compared to 2739 in the June 2009 report, and securities
rated Caa or lower make up approximately 5.5% of the underlying
portfolio versus 8.6% in June 2009.

The change in reported WARF understates the actual credit quality
improvement because of the technical transition related to rating
factors of European corporate credit estimates, as announced in
the press release published by Moody's on 1 September 2010.

In its base case, Moody's analyzed the underlying collateral pool
with WARF of 3974 (versus modelled WARF of 4260 at last rating
action). The base case diversity score, weighted average spread
and weighted-average recovery rate were respectively 35, 2.80% and
61.6%.

The deal is allowed to reinvest and the manager has the ability to
deteriorate the collateral quality metrics' existing cushions
against the covenant levels. Moody's analyzed the impact of
assuming a weighted average spread level consistent with the
midpoint between reported and covenanted. However, as part of the
base case, Moody's considered spread and recovery rate higher than
the covenant levels due to the large difference between the
reported and covenant levels.

In addition to the base case analysis described above, Moody's
also performed sensitivity analyses on key parameters for the
rated notes. For instance, modelling the portfolio using a
weighted average life (WAL) greater by one year compared to the
current WAL to capture the potential impact of further
reinvestment subject to a WAL covenant higher than the current
level as well as asset maturity extensions had an impact of about
1 notch on the model output across the capital structure. In
addition, WARF level at 3294 was also tested (implying a decrease
of the default probability stress from 30% to 15%). The impact on
the senior and junior notes was approximately 1 notch from the
base case model outputs and less than 2 notches on the mezzanine
notes.

Moody's notes that this transaction is subject to a high level of
macroeconomic uncertainty, as evidenced by uncertainties of credit
conditions in the general economy as well as the large
concentration of speculative-grade debt maturing between 2012 and
2014 which may create challenges for issuers to refinance. CDO
notes' performance may also be impacted firstly by the manager's
investment strategy and behavior and secondly by divergence in
legal interpretation of CDO documentation by different
transactional parties due to embedded ambiguities. The notes'
ratings are also sensitive to the weighted average life assumption
of the portfolio, which may be extended due to the manager's
decision to reinvest into new issue loans or other loans with
longer maturities and/or participate in amend-to-extend offerings.
Moody's tested for a possible extension of the actual weighted
average life in its analysis.

The principal methodology used in this rating was "Moody's
Approach to Rating Collateralized Loan Obligations" published in
August 2009. Other methodologies and factors that may have been
considered in the process of rating this issuer can also be found
on Moody's website.

Under this methodology, Moody's used its Binomial Expansion
Technique, whereby the pool is represented by independent
identical assets, the number of which is being determined by the
diversity score of the portfolio. The default and recovery
properties of the collateral pool are incorporated in a cash flow
model where the default probabilities are subject to stresses as a
function of the target rating of each CLO liability being
reviewed. The default probability range is derived from the credit
quality of the collateral pool, and Moody's expectation of the
remaining life of the collateral pool. The average recovery rate
to be realized on future defaults is based primarily on the
seniority and jurisdiction of the assets in the collateral pool.

The cash flow model used for this transaction, whose description
can be found in the methodology listed above, is Moody's EMEA
Cash-Flow model.

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

Due to the impact of revised and updated key assumptions
referenced in "Moody's Approach to Rating Collateralized Loan
Obligations" and "Annual Sector Review (2009): Global CLOs", key
model inputs used by Moody's in its analysis, such as par amount,
weighted average rating factor, diversity score, and weighted
average recovery rate, may be different from the trustee's
reported numbers.

Moody's also notes that around 67% of the collateral pool consists
of debt obligations whose credit quality has been assessed through
Moody's credit estimates.

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


* IRELAND: 79 Credit Unions at "High Risk" of Failing
-----------------------------------------------------
Charlie Weston at Irish Independent reports that there are 79
Irish credit unions regarded by the Central Bank as being at "high
risk" of failing.

According to Irish Independent, regulators fear that rising
arrears on members' loans and investment losses are set to make
large numbers of credit unions insolvent.

Insolvent credit unions, whose assets are less than their
liabilities, are likely to have to be bailed out, Irish
Independent says.

Registrar of credit unions James O'Brien is now understood to have
decided that 79 of the 410 credit unions in the country are at
high risk of becoming insolvent, Irish Independent relates.  It is
understood Mr. O'Brien arrived at his assessment of that around
one-in-five credit unions are in trouble after stress tests were
carried out by consultants Grant Thornton, Irish Independent
notes.  Another 146 credit unions are at medium to high risk, with
139 judged to be medium to low risk, Irish Independent discloses.

Irish Independent relates that in his speech last week,
Mr. O'Brien said he was concerned at the continuing sharp rise in
arrears on loans in many credit unions.  And investment losses
were continuing to hit the sector, Irish Independent states.
According to Irish Independent, he was also worried about a number
of credit unions having sufficient assets to cover liabilities.

According to Irish Independent, Mr. O'Brien told chairmen and
treasurers of credit unions that, "All of these trends are
pointing to the likelihood that more credit unions could be
heading into financial difficulties."

The registrar pinned the blame for failing credit unions on poor
management and a lack of oversight by boards and supervisory
committees, Irish Independent notes.


===================
L U X E M B O U R G
===================


TELENET FINANCE: Moody's Assigns (P)Ba3 Rating to 2021 Sr. Notes
----------------------------------------------------------------
Moody's Investors Service assigned a (P)Ba3 rating to the proposed
EUR300 million senior secured notes due 2021 issued by Telenet
Finance IV Luxembourg SCA. The rating outlook is stable.

Telenet intends to use proceeds from the notes alongside up to
EUR200 million of existing cash and cash equivalents to repay in
full or in part outstanding amounts under Term Loans G and J of
its senior secured bank facilities.

Ratings Rationale

The (P)Ba3 rating on the notes reflects the fact that the notes
rank effectively pari-passu with Telenet's senior secured bank
facilities (also rated at Ba3).

Telenet Finance IV is incorporated in Luxembourg as a special
purpose vehicle created to issue the proposed notes. The notes
will fund a EUR300 million term loan facility to Telenet
International Finance SA. The terms of the Finco loan will be
recorded in an additional facility accession agreement between
Telenet Finance IV and Telenet International and the facility
agent under the Telenet Senior Credit Facility.

Telenet's note-holders benefit indirectly from the terms
(including maintenance financial covenants) of the Senior Credit
Facility, plus incurrence covenants within the Facility P
Accession Agreement. They also have security over the Issuer's
shares and over its assets, including its rights to and benefit in
the Finco loan. However, Moody's notes that the holders of the
notes will have only indirect recourse to Telenet International so
that in an enforcement scenario they would have to enforce the
security interest in the Finco loan, and subsequently enforce the
collateral granted in favour of the Finco loan.

As of March 31, 2011, Telenet reported a 2.8x net senior leverage
ratio (as calculated per its Senior Credit Facility definition).
Moody's understands that Telenet's publicly stated intention to
re-leverage its net senior leverage ratio to a range of 3.5x to
4.5x by the end of 2011 is likely to be executed via shareholder
disbursements in absence of acquisition opportunities. In that
context, Moody's notes the planned capital reduction that is
expected to take place in Q3 2011 for approximately EUR506
million. As of 31 March 2011, Telenet's gross leverage as adjusted
by Moody's stood at approximately 4.5x debt to EBITDA.

The Ba3 corporate family rating (CFR) reflects Telenet's continued
solid operational performance supported by the company's multi-
play strategy. However, the rating also takes into account (i) the
intensive competition that Telenet faces particularly from
incumbent operator, Belgacom, and also from mobile operators such
as Mobistar; (ii) the company's limited size of operations
compared with global peers; and (iii) the expectation that Telenet
in future will continue to pay out (at least) all of the
internally generated free cash flow (as defined by Telenet) in
shareholder disbursements (in the absence of suitable acquisition
opportunities); implying that the company will be relying largely
on EBITDA growth for operating within its own leverage target
parameters. The rating also takes into account the risks
associated with the ongoing regulatory review in Belgium which may
oblige Telenet to open its cable network to third party operators
to strengthen competition in the country.

Upward rating pressure would develop if, inter alia, the company
demonstrates clear commitment to maintain its gross debt to EBITDA
solidly below 4.5x (as calculated by Moody's) on a sustained
basis. A move to positive free cash flow generation (as defined by
Moody's -- post capex and dividends) would also be a positive
factor.

An increase in leverage at or above 5.5x Gross Debt/ EBITDA (as
adjusted by Moody's) resulting from significant debt-financed M&A
activity and/ or aggressive shareholder remuneration together with
sustained negative free cash flow (as calculated by Moody's) would
exert downward pressure on the rating.

The principal methodology used in rating Telenet Finance IV
Luxembourg S.C.A. was the Global Cable Television Industry
Methodology, published July 2009. Other methodologies used include
Loss Given Default for Speculative Grade Issuers in the US,
Canada, and EMEA, published June 2009.

Headquartered in Mechelen, Belgium, Telenet Group Holding NV is
the largest provider of cable services in Belgium. Currently, US-
based Liberty Global Consortium (rated Ba3/Negative) owns
approximately 50.3% of Telenet. For the financial year ending
December 31, 2010, Telenet reported revenues of EUR1.3 billion
with 51% Adjusted EBITDA margin (as calculated by the company).


TELENET FINANCE: Fitch Assigns 'BB+(exp)' Rating to Bonds Due 2021
------------------------------------------------------------------
Fitch Ratings has assigned Telenet Finance IV Luxembourg S.C.A.'s
proposed new 2021 EUR300 million senior secured bonds (SSBs) an
expected rating of 'BB+(exp)'.  Fitch has also affirmed Telenet
NV's Long- and Short-term Issuer Default Ratings (IDRs) at 'BB'
and 'B' respectively. The Outlook on the Long- term IDR is Stable.

As with earlier issues, the SSBs will be issued by the special
purpose vehicle with the proceeds of the issuance on-lent via a
new tranche of Telenet's senior bank facility. Holders of the SSBs
will in turn benefit from the security package provided to lenders
under the SBF, which includes:

   -- Share pledges over all the shares in Telenet NV, Telenet
      Vlaanderen NV and Telenet International Finance;

   -- Mortgages over all real property and the network assets of
      Telenet NV;

   -- Floating charges over all moveable property of Telenet NV,
      Telenet Vlaanderen NV, and;

   -- Pledges on bank accounts and of all present and future
      receivables of Telenet Group Holding, Telenent NV, Telenent
      Vlaanderen and Telenet International Finance.

The agency has simultaneously affirmed these instruments' ratings:

   -- Telenet N.V. Senior Secured Bank Facility: 'BB+'

   -- Telenet Finance Luxembourg SCA EUR500m due 2020: 'BB+'

   -- Telenet Finance Luxembourg II SA EUR100m due 2016: 'BB+'

   -- Telenet Finance III Luxembourg SCA EUR300m due 2021: 'BB+'


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


OSIRIS INKJET: TenCate to Continue Firm's Activities
----------------------------------------------------
TenCate has reached an agreement with the official receiver
relating to the continuation of the activities of the insolvent
company Osiris Inkjet Systems B.V.  As a result, it will be
possible to continue the production and sales of the ISIS(TM)
inkjet printing system developed by Osiris.  TenCate will take
over the tangible and intangible assets from the liquidation and
will offer an employment contract to at least six employees (of
the ten employees in permanent employment).  The activities will
be continued in Xennia Holland bv (100% TenCate).

In the view of TenCate, inkjet technology can bring about a
revolution in the field of finishing processes.  Through
innovative methods for surface treatment not only will new
functionalities on materials be possible, but thanks to this
technological innovation, environmental and quality costs will
also be significantly reduced.

Partly on the basis of development projects (Digitex, Digifin),
which are subsidized by the European Union and the Province of
Overijssel (the Netherlands), TenCate has acquired a leading
position in the field of inkjet applications on textile materials.
As a result, coatings on a nano scale can be applied to materials,
thus enabling new functionalities to be developed.  The knowledge
acquired by Osiris is in part complementary to this knowledge
platform and will strengthen it. Inkjet technology for textile
applications on an industrial scale is still in its early stages.
In the course of this year TenCate will start up a pilot
production process in Nijverdal.

Xennia Technology

TenCate took a majority interest in Xennia Technology ltd (United
Kingdom) at the beginning of 2008. The goal of this acquisition
was to use inkjet technology as process technology for the
application of surface coatings on textile materials.  There had
been earlier collaboration with Xennia within the framework of the
European Digitex project.  Since then developments have occurred
in printing and textile finishing that are currently at the
beginning of their commercial stage. In the past few years Xennia
has launched various inkjet applications relating to the
decoration of materials.

      Regional Knowledge Platform With an International Image

In the region of Twente (the Netherlands) knowledge of textile
materials and textile processes converges with inkjet technology.
This combination of knowledge is unique. Xennia Holland bv can act
as a catalyst in a knowledge network that is continuing to
develop. Inkjet technology is a new and complex technology, which
can prove to be an important innovative motor for future
developments within the textile sector. Collaboration with
knowledge centres in these developments forms one of the key
factors in this. The combination of the knowledge acquired by
Osiris with that of Xennia respectively TenCate will strengthen
this regional knowledge network.

                        About Royal Ten Cate

Royal Ten Cate (TenCate) is a multinational company that combines
textile technology with chemical processes and material technology
in the development and production of functional materials with
distinctive characteristics.  TenCate products are sold throughout
the world.

Systems and materials from TenCate come under four areas of
application: safety and protection; space and aerospace;
infrastructure and the environment; sport and recreation. TenCate
occupies leading positions in protective fabrics, composites for
space and aerospace, antiballistics, geosynthetics and synthetic
turf.  TenCate is listed on NYSE Euronext (AMX).

                        About Xennia Technology

Xennia Technology Ltd specialises in inkjet technology for
industrial applications. As the global leading, chemistry-driven,
industrial inkjet integrator, Xennia has radically changed
obsolete production processes by developing reliable inkjet
solutions for markets such as product decoration, ceramics,
textile finishing and electronics. Solutions from Xennia include
R&D facilities, printer and print modules, software and printing
fluids. Xennia has operations in the United Kingdom.

                        About Osiris Inkjet

Netherlands-based Osiris Inkjet Systems has since 2001 focused on
the development, sale, supply and support of high-speed digital
inkjet technology for sustainable solutions in the printing and
finishing of all sorts of textiles for the fashion industry.  In
addition to print systems -such as the ISIS, Osiris also supplies
a wide range of inks and coatings and the software applications
required for these.


===============
P O R T U G A L
===============


LUSITANO MORTGAGES: S&P Lowers Rating on Class E Notes to 'B'
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on Lusitano
Mortgages No. 6 Ltd.'s class C, D, and E notes. "The ratings on
the class A and B notes are unchanged following our review, but
these notes remain on CreditWatch negative for counterparty
reasons," S&P stated.

"These rating actions are mainly due to reserve fund draws and
reflect our expectation of future reserve fund draws due to the
provisioning of current and potential future defaults. For
example, in Lusitano Mortgages No. 6, 30% of a defaulted loan is
provisioned for immediately, 30% after one year, and 40% after two
years," S&P noted.

The reserve fund is at 35% of its required amount. "We believe the
reserve fund will continue to be required to clear the principal
deficiency ledger balance, and that the issuer could potentially
fully draw it in the coming year," S&P said.

Lusitano 6 is structured with a liquidity facility, rather than
the principal draw mechanism. Interest payment for the class B, C,
D, and E notes can also become subordinate to the principal
deficiency ledger payment in the interest waterfall. This
subordinated payment is triggered if the gross cumulative
defaults are greater than a class-specific trigger level.

"For example, the class E notes trigger level is 8% of the initial
balance and in our 'BB' stress scenario we expect the gross
cumulative defaults to be greater than 8%. Therefore, we have
lowered our rating on the class E notes to 'B (sf)' from 'BB
(sf)'," S&P said.

"The downgrade of the class D notes also reflects the gross
cumulative default trigger, which is set at 13% for this class.
The downgrade of the class C notes is due to a lack of liquidity
in the transaction in some of our cash flow runs where we increase
interest rates," S&P continued.

"On Jan. 18, 2011, we updated the CreditWatch status of the
ratings on the class A and B notes when our updated counterparty
criteria became effective (see 'EMEA Structured Finance
CreditWatch Actions In Connection With Revised Counterparty
Criteria')," stated S&P.

"Then, on April 1, 2011, we lowered our ratings of the class A and
B notes to 'AA-' due to the revised assessment of Portuguese
country risk in structured finance transactions backed by
Portuguese assets. This followed our recent downgrade of
Portugal," S&P related.

"Following our latest review, our ratings on these classes of
notes are unchanged and remain on CreditWatch negative for
counterparty reasons," S&P noted.

"Specifically, the ratings on the class A and B notes remain on
CreditWatch negative because of heightened exposure to
counterparty risk, and because some existing transaction
documentation may not be consistent with our updated
counterparty criteria. We will review this documentation and
intend to resolve this element of the CreditWatch placements
before the criteria transition date of July 18, 2011," S&P
elaborated.

Lusitano Mortgages No. 6 is a Portuguese residential mortgage-
backed securities (RMBS) transaction that securitizes loans
originated by Banco Espirito Santo S.A. (BBB-/Negative/A-3). The
transaction closed in July 2007.

Ratings List

Class                 Rating
            To                      From

Lusitano Mortgages No. 6 Ltd.
EUR1.1 Billion Mortgage-Backed Floating-Rate Notes and EUR22
Million Subordinated Notes

Ratings Lowered

C           A- (sf)                 A (sf)
D           BBB- (sf)               BBB (sf)
E           B (sf)                  BB (sf)

Ratings Remaining on CreditWatch Negative

A           AA- (sf)/Watch Neg
B           AA- (sf)/Watch Neg


=============
R O M A N I A
=============


MEXXEM: Court Okays Reorganizational Plan
-----------------------------------------
Andrei Circhelan at Ziarul Financiar reports that a court has
approved Mexxem's reorganizational plan.

According to ZF, liquidator Casa de Insolventa Transilvania, the
company's court-appointed administrator, on Wednesday said that
the reorganizational plan will be implemented this month.

Mexxem is the owner of the Stone Creek stores.


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


ALLIANCE OIL: Fitch Gives 'B(exp)' Currency Rating to RUB5BB Bonds
------------------------------------------------------------------
Fitch Ratings has assigned Russia-based OJSC Alliance Oil
Company's RUB5bn domestic bonds an expected local currency senior
unsecured rating of 'B(exp)', an expected Recovery Rating of
'RR4', and an expected National senior unsecured rating of
'BBB(rus)(exp)'.

The final ratings of the oil company's proposed bonds are
contingent upon the receipt of final documents conforming to
information already received by Fitch.

The proposed RUB5 billion bonds will represent a senior unsecured
obligation of OJSC Alliance Oil Company and will be guaranteed by
Alliance Oil Company Ltd. Fitch notes that a cross-default
provision in the draft bond documents relates to other capital
market instruments, including Alliance Oil's outstanding senior
unsecured bonds and existing loans.

Alliance Oil's existing ratings are:

   -- Long-term foreign and local currency Issuer Default Ratings
      (IDR): 'B'/Stable

   -- Short-term foreign and local currency IDRs: 'B'

   -- National Long-term rating: 'BBB(rus)'/Stable


KOKS FINANCE: Moody's Assigns (P)B3 Rating to Proposed Loan Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)B3 rating
to the proposed US dollar loan participation notes to be issued by
KOKS Finance Limited for the purpose of financing a loan to OAO
KOKS. The amount and maturity of the notes are subject to the
prevailing market conditions during placement.

The proceeds from the issuance will be on-lent by KOKS Finance Ltd
to OAO KOKS; thus the noteholders will be relying solely on KOKS's
credit quality to repay the debt. The loan will be guaranteed by
the main operating subsidiaries of KOKS, i.e. OAO Kombinat KMAruda
and OAO Tulachermet. KOKS itself is a main operating company of
the group. The issuer will grant a first fixed charge in favor of
the Trustee of all amounts paid and payable to it under the Loan
Agreement. The loan will initially be guaranteed by the main
operating subsidiaries of KOKS, i.e. OAO Kombinat KMAruda and
additionally -- by OAO Tulachermet. Together, these three
companies generated more than 70% of the KOKS group's EBITDA and
owned almost 80% of its assets in 2010. In addition, KOKS will be
required to procure that any of its subsidiaries will issue
guarantees within 90 business days once they meet or exceed 10% of
group assets or EBITDA and become material subsidiaries. The
assigned rating is based on the assumption that these guarantees
would be issued without delay.

Ratings Rationale

"The (P)B3 rating and loss-given default assessment of LGD4
reflect primarily the credit quality of the KOKS group with a B2
CFR and the subordination of the loans and consequently of the
notes to about RUR9.5 billion secured debt," says Larissa Loznova,
a Moody's Vice President-Senior Analyst and lead analyst for KOKS.
"More specifically, the loans and notes will be senior unsecured
obligations of OAO KOKS with upstream guarantees by at least two
sets of guarantors -- initially (KMAruda) and additional
(Tulachermet) -- and thus rank pari passu with other unsecured
obligations of the main operating companies of KOKS (the loan
guarantors)," adds Ms. Loznova.

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.

Moody's notes that the 2010 financial results of KOKS are in line
with the rating agency's expectations at the time of the original
B2 CFR rating assignment in January 2011. Specifically, these
include a debt/EBITDA ratio of 2.6x and an EBITDA margin of 20%,
providing healthy cash flow generation to service the group's debt
and cover its capital expenditure (capex) investments.

Moody's would consider an upgrade of KOKS's ratings if the group
were able to: (i) reduce its leverage, such that its debt/ EBITDA
ratio were to decrease sustainably below 2,0x. Furthermore, for
Moody's to consider an upgrade of KOKS's rating, the rating agency
would require evidence of (i) a more transparent corporate
structure, with the full consolidation of the group's trading
entity; and (ii) considerably improved short-term liquidity.

An increase of leverage above 3.0x debt/ EBITDA would put pressure
on the rating. Any worsening of the short term liquidity situation
would also lead to negative rating pressure.

Last Rating Action & Principal Methodology

The principal methodology used in rating OAO KOKS was Global Steel
Industry Rating Methodology, published January 2009. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the US, Canada and EMEA,
published in June 2009.

OAO KOKS is a Russia-based producer of coking coal, coke, iron ore
and cast iron as well as other assets. The group comprises seven
mining entities with total reserves of 399.7 million tons as of
September 2010. In 2010, KOKS generated revenue of RUB44.3
billion, produced 2.8 million tons of coke and 2.1 million tons of
pig iron.

OAO KOKS is owned by the Zubitsky family, which holds a 93.7%
stake in the group.


PROBUSINESSBANK: Fitch Expected 'B-(exp)' Rating to Unsec. Notes
----------------------------------------------------------------
Fitch Rating has assigned PBB LPN Issuance Limited's proposed
issue of senior unsecured notes an expected Long-term rating of
'B-(exp)' and a Recovery Rating of 'RR4'. The final rating is
contingent upon the receipt of final documents conforming
materially to information already received.

The proceeds from the issue will be used to finance a loan to
Russia-based Probusinessbank (PBB), rated Long-term Issuer Default
(IDR) 'B-' with Stable Outlook, Short-term IDR 'B', Individual
'D', Support '5' and National Long-term 'BB-(rus)' with Stable
Outlook.

The notes are to be issued under the loan participation program
established in July 2005 and rated Long-term 'B-' for issues with
initial maturities of more than one year and Short-term 'B' for
issues with maturities of up to one year. The program limit was
increased to US$750 million in March 2007, following an increase
to US$200 million in November 2006 from the original limit of
US$100 million. There have been no other significant changes to
the terms and conditions of the issues under the program.

The issuer's claims under the loan agreement will rank at least
equally with the claims of PBB's other senior unsecured creditors,
save those whose claims are preferred by any bankruptcy,
insolvency, liquidation or similar laws of general application.

PBB is a medium-sized Russian bank, with consolidated assets of
RUB107.5 billion at end-2010. Its activities are concentrated on
SME and retail lending.


SKB-BANK: Moody's Upgrades Long-Term Foreign Currency Rating to B1
------------------------------------------------------------------
Moody's Investors Service has upgraded long-term foreign currency
deposit rating of SKB Bank (SKB) and its local currency debt
rating to B1 from B2. The E+ bank financial strength rating (BFSR)
and Not Prime short-term foreign currency bank deposit ratings
were affirmed. The rating agency also assigned a long-term and
short-term local currency deposit ratings of B1/Not Prime to the
bank. The outlook on all of SKB's long-term ratings is stable.

Moody's re-assessment of the bank's credit standing within the E+
BFSR category is largely based on SKB's audited financial
statements for 2010 prepared under IFRS.

Ratings Rationale

According to Moody's, the rating upgrade reflects SKB's growing
market franchise which has strengthened significantly in the past
two years, whereby the bank not only outpaced weaker regional
competitors operating in its domicile Sverdlovsk region, but also
diversified to other regions and competed successfully with larger
players.

In 2010, the bank reported sound profitability with Return on
Average Assets (RoAA) of 1.0% and Return on Equity (RoE) of 12.4%,
these improvements were based upon recurring income sources -- net
interest income and fees and commissions. The bank also
demonstrated a track-record of sustainable performance amidst the
recent financial crisis in Russia.

The rating agency notes SKB's adequate corporate governance and
risk controls bolstered by participation of a reputable
institutional shareholder-- European Bank for Reconstruction and
Development (EBRD) -- in the bank's capital and reflected, inter
alia, in historically low level of related party lending on the
bank's balance sheet: this stood around 3% of SKB's total gross
loan book at year-end 2010, a very low level compared to its peer
group.

The shareholders demonstrated their commitment to the bank through
capital injection at the height of the 2008-2009 crisis, and they
are expected to support the bank's growth strategy going forward:
as was publicly announced recently, SKB is going to receive Tier 1
and Tier 2 capital injections in the amount of RUB1 billion and
RUB1.5 billion, respectively, by year-end 2011.

At the same time, major factors constraining SKB's E+ BFSR are (i)
the high single-name concentration of its loan book, with the top
20 credit exposures accounting together for 265% of the bank's
Tier 1 capital as of year-end 2010; and (ii) the bank's moderate
capital levels with its Basel I Tier 1 capital ratio and total CAR
standing at modest 8.0% and 12.8%, respectively, as of the same
reporting date, whereas SKB's internal capital generation lags
behind the pace of growth of its risk weighted assets.

"We admit that the bank's faster-than-peers' loan book expansion
may raise certain asset quality concerns, as the rapidly augmented
loan book starts to season," says Olga Ulyanova, a Moody's
Assistant Vice-President and lead analyst for the bank. "However,
these risks are partially mitigated by (i) the adequate loan loss
reserve coverage maintained at the level exceeding 100% of 90+
days delinquent loans, and (ii) the predominantly short-term
nature of SKB's newly issued loans, which leaves some flexibility
to the bank for adjusting its credit underwriting standards," adds
Ms. Ulyanova.

The rating agency concludes that the combination of the above
factors drive its decision to revise the mapping of SKB's E+ BFSR
to long-term scale of B1, as opposed to B2 previously.

Previous Rating Actions and Principal Methodologies

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.

Headquartered in Yekaterinburg, Russia, SKB reported -- under
audited IFRS -- total assets of US$2.78 billion and total equity
of US$198 million as at December 31, 2010; net IFRS profits for
2010 amounted to US$23.5 million.


TINKOFF CREDIT: Moody's Assigns B2 Rating to Notes; Outlook Stable
------------------------------------------------------------------
Moody's Investors Service has assigned a foreign currency senior
unsecured debt rating of B2 to the US$175 million loan
participation notes issued by TCS Finance Limited for the purpose
of financing a loan to CJSC "Tinkoff Credit Systems" Bank (TCS).
The outlook for the rating is stable.

Ratings Rationale

The B2 rating of the notes is based on the fundamental credit
quality of the underlying obligor, TCS, rated B2/Not Prime/E+,
with a stable outlook.

Under the terms of the transaction, the notes are due in 2014 and
bear an interest rate of 11.5%. The underlying documentation
incorporates an unconditional guarantee from Cyprus-based Egidaco
Investments PLC (not rated by Moody's) -- TCS's sole shareholder
and the holding company of the group. Moody's notes that the
underlying documentation incorporates a "change of control" clause
whereby holders have an option for an early redemption and a
premium of 1% of the principal amount of the loan.

According to the terms and conditions of the notes, TCS must
comply with a number of covenants, including negative-pledge
covenants; limitations on mergers, disposals and transactions with
affiliates; and maintenance of a minimum capital-adequacy ratio.

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.

Headquartered in Moscow, Russia, TCS reported (under IFRS) total
assets, equity and net income of US$405 million, US$44 million and
US$9.1 million, respectively at YE2010.


=====================================
S E R B I A   &   M O N T E N E G R O
=====================================


ZELJEZARA AD: Gov't. Violated Investor Rights, Creditors Say
------------------------------------------------------------
According to Bloomberg News' Gordana Filipovic, creditors of
Zeljezara AD Niksic reported the Montenegrin government to the
European Union for allegedly violating investor rights after the
company was declared bankrupt.

Bloomberg relates that the Montenegrin Economy Ministry said
Zeljezara was put into bankruptcy on April 15 by a workers union
that demanded overdue monthly wages.  Shareholders contend the
action damaged their investment because they aren't first in line
to collect debt under Montenegro's new bankruptcy law, Bloomberg
notes.

"Our intention is to keep local representatives of the EU and
other international bodies informed about what we see as abuse and
mistreatment of foreign investors," said Daniel Brol,
investment manager at Ethemba Capital LLP, which is representing
MNSS BV, a Dutch-based investment company which controlled just
above 50.1% of Zeljezara's capital, in written comments to
Bloomberg News.  The EU should consider those issues "when
assessing the progress of a country toward EU membership," Mr.
Brol stated.

"We have received their letter and met with Ethemba Capital
afterwards," Dragan Mugosa, media officer of the Delegation of the
European Commission to Montenegro, told Bloomberg News in a
telephone interview on Wednesday.  "We will take their
considerations to the Montenegrin government."

Ethemba Capital, Bloomberg says, is also "contemplating advising
the credit rating agencies about [its] concerns as [it] believes
it is important that they are made aware that the bankruptcy
process in Montenegro is not as clear-cut or equitable as one
might have expected."

A court in Niksic where the steel mill is located, on Tuesday
rejected MNSS' objections to a series of issues, including a
decision to classify Zeljezara's 1,400 workers as a single
creditor, Mr. Brol, as cited by Bloomberg, said in written answers
to questions from Bloomberg News.

Bloomberg notes that according to a June 7 report from Ethemba,
which cited the bankruptcy administrator, the total liabilities of
Zeljezara Niksic amount to about EUR120 million (US$175 million),
while the book value of Zeljezara's assets is about EUR100
million.

MNSS and its sister company together hold EUR60 million worth of
claims, followed by the government of Montenegro as the second
biggest creditor, Bloomberg News discloses.

Zeljezara AD Niksic is a Montenegrin steel mill.  It has a design
capacity for up to 400,000 tons of molten steel a year.


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


CAMPOFRIO FOOD: S&P Affirms 'BB-' Long-Term Corp. Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' long-term
corporate credit rating on Spanish meat processor Campofrio Food
Group S.A. (CFG). "At the same time, we removed the 'BB-' long-
term corporate credit rating on CFG and the 'BB-' issue rating on
CFG's unsecured bond from CreditWatch with negative implications,
where they were placed on April 8, 2011. The outlook is stable,"
S&P said.

"The recovery rating of '4' on CFG's unsecured bond -- reflecting
our expectations of average (30%-50%) recovery for bondholders in
an event of a payment default -- remains unchanged," S&P said.

The removal of the rating from CreditWatch and the affirmation
follows the announcement that U.S.-based pork producer and
processor Smithfield Foods Inc. (Smithfield; B+/Positive/--) has
dropped its takeover bid for CFG. "It also reflects our view of
CFG's resilient performance despite a significant increase in raw
material prices, particularly meat costs, and CFG's positive
free cash flow generation capacity," S&P noted.

Smithfield is CFG's main shareholder and will retain its 37%
ownership (30% voting rights). CFG's other significant
shareholders will remain in place; these include Oaktree Capital
(24%), Pedro and Fernando Ballve (12%), Diaz Family and Luis
Serrano (5%), Caja Burgos (4%), and QMC (2%), with the remaining
16% held by the public. "Given the presence of material
shareholders other than Smithfield on CFG's board, and the absence
of common financial policies, strategies, business operations, or
cross-default financing between CFG and Smithfield, our rating on
CFG is not aligned with that on Smithfield," S&P stated.

According to S&P, "In addition, in our opinion, CFG's performance
remains resilient despite significant rises in raw material
prices, in particular meat prices, which represent about 45% of
CFG's costs."

"The stable outlook reflects our view of CFG's resilient operating
performance and positive free cash flow generation capacity. We
view a Standard & Poor's-adjusted debt-to-EBITDA ratio of 4.5x and
positive free cash flow generation as adequate for the 'BB-'
rating. We anticipate that CFG will continue to make moderate and
mostly cash-financed bolt-on acquisitions going forward to
strengthen its position in the European meat processing market.
That said, we do not anticipate any deterioration in the group's
credit metrics since we do not adjust reported debt figure with
surplus cash," S&P noted.

S&P related, "We could lower the rating if CFG is unable to
generate positive free cash flow--especially owing to a long-
lasting and sharp spike in raw material costs, which we consider a
principal operating risk for CFG's profitability. Also, a more
aggressive financial policy, which could result from unexpected
and credit-dilutive acquisitions, could put pressure on the
rating."

"Conversely, a positive rating action could result from
sustainable deleveraging to an adjusted debt-to-EBITDA ratio of
about 3.5x, through continuous free cash flow generation and
higher EBITDA growth than we currently anticipate in our base-case
scenario," S&P added.


FONCAIXA FTPYME: S&P Affirms Rating on Class D Notes at 'D'
-----------------------------------------------------------
Standard & Poor's Ratings Services took various credit rating
actions in Spanish SME CLO transactions Foncaixa FTPYME 2, Fondo
de Titulizacion de Activos, Foncaixa FTGENCAT 7, Fondo de
Titulizacion de Activos, and FONCAIXA ANDALUCIA FTEMPRESA 1, Fondo
de Titulizacion de Activos following a credit analysis and the
application of the updated counterparty criteria.

Specifically, S&P:

    * Has lowered and removed from CreditWatch negative its
      ratings on Foncaixa FTPYME 2's class A(G) and B notes and
      Foncaixa FTGENCAT 7 and FONCAIXA ANDALUCIA FTEMPRESA 1's
      class A(G) notes;

    * Affirmed and removed from CreditWatch negative its ratings
      on Foncaixa FTPYME 2 and FONCAIXA ANDALUCIA FTEMPRESA 1's
      class AS notes; and

    * Affirmed its ratings on Foncaixa FTPYME 2's class C and D
      notes, Foncaixa FTGENCAT 7's class B and C notes, and
      FONCAIXA ANDALUCIA FTEMPRESA 1's class B and C notes.

"In our analysis, we applied our updated counterparty criteria,
which became effective in January 2011. Following our review of
the counterparty ratings and the counterparty agreement terms, we
have lowered certain ratings in the transactions, in line with our
updated counterparty criteria. We also considered recent
developments in the transactions that we have observed. These
include rising delinquency and cumulative default rates, although
these currently remain within our initial expectations," S&P
stated.

                        FONCAIXA FTPYME 2

Foncaixa FTPYME 2 closed in November 2008. Its portfolio comprises
loans concentrated across Spain, except in Catalonia.

    * "Although the Kingdom of Spain (AA/Negative/A-1+) guarantees
      the class A(G) notes, we have not taken this guarantee into
      account in our analysis as we do not consider it to be in
      line with our guarantee criteria (see 'European Legal
      Criteria For Structured Finance Transactions,' published
      Aug. 28, 2008). The adjustments made when we applied our
      updated counterparty criteria support a maximum rating of
      'AA- (sf)' on the notes, in our opinion. We have thus
      lowered and removed from CreditWatch negative our rating on
      the class A(G) notes," S&P said.

    * "We have lowered our rating on the class B notes as a result
      of the application of our updated counterparty criteria. We
      consider that our cash flow results can only support a 'AA-
      (sf)' rating. We have therefore lowered and removed from
      CreditWatch negative our rating on the class B notes," S&P
      stated.

    * The class AS notes have partially amortized and represent
      11.52% of the outstanding balance of the notes. "Given the
      amortization trend of these notes, we expect the class to
      fully amortize in the short term. Applying our updated
      counterparty criteria, we consider that our cash flow
      results support our current rating and we have therefore
      affirmed and removed from CreditWatch negative our 'AAA
      (sf)' rating," according to S&P.

    * "We have affirmed our rating on the class C notes. While
      current credit enhancement levels have increased since
      closing, recovery levels are below our initial expectations.
      We have also considered that concentration issues often
      arise in Spanish SME CLO transactions as the portfolios
      amortize. For these reasons, we consider it inappropriate at
      this stage to consider upgrading the notes," S&P explained.

    * At closing, the class D notes funded the reserve fund and
      have defaulted on their interest payments since the April
      2010 payment date. "We have therefore affirmed our rating on
      these notes," S&P said.

    * As of the last payment date in April 2011, reported
      delinquencies of more than 90 days and defaults over the
      outstanding balance of the assets were 1.76%, and 1.57%. In
      addition, the reserve fund was at 96.86% of its required
      level.

    * The level of cumulative defaults over the original balance
      of the assets securitized at closing was 1.21%. "We consider
      that this is far lower than the most subordinated interest
      deferral trigger level of 15%," S&P added.

                       FONCAIXA FTGENCAT 7

Foncaixa FTGENCAT 7 closed in October 2009, but we rated it in
July 2010. The underlying collateral comprises loans concentrated
in Catalonia, La Caixa's home market.

    * "The class A(G) notes benefit from a guarantee provided by
      the Autonomous Community of Catalonia (A/Negative/A-1).
      However, we have not taken this into account in our analysis
      as we do not consider it to be in line with our guarantee
      criteria. The adjustments made when we applied our updated
      counterparty criteria support a maximum rating of 'AA- (sf)'
      on the notes, in our opinion. We have therefore lowered and
      removed from CreditWatch negative our rating on the class
      A(G) notes," according to S&P.

    * S&P noted, "Credit enhancement levels for the class B and C
      notes have increased since closing. However, as
      concentration issues may arise in due course, we consider it
      inappropriate at this stage to consider upgrading the notes.
      We have therefore affirmed our ratings on these classes of
      notes."

    * As of the last payment date in April 2011, reported
      delinquencies of more than 90 days and defaults over the
      outstanding balance of the assets were 1.20% and 0.71%. The
      reserve fund was at 100% of its required level.

    * The level of cumulative defaults over the original balance
      of the securitized assets at closing was 0.59%. "In our
      view, this is far lower than the most subordinated interest
      deferral trigger level of 18.8%," S&P stated.

    * The class AS notes fully amortized on the April 2011 payment
      date.

                   FONCAIXA ANDALUCIA FTEMPRESA 1

FONCAIXA ANDALUCIA FTEMPRESA 1 closed in March 2010. Its portfolio
comprises loans concentrated in Andalucia.

    * "The class A(G) notes benefit from a guarantee provided by
      the Autonomous Community of Andalusia (AA-/Negative).
      However, we have not taken this into account in our analysis
      as we do not consider it to be in line with our guarantee
      criteria. The adjustments made when we applied our updated
      counterparty criteria support a maximum rating of 'AA- (sf)'
      on the notes, in our opinion. We have thus lowered and
      removed from CreditWatch negative our rating on the class
      A(G) notes," S&P said.

    * "Based on our cash flow analysis and the application of our
      updated counterparty criteria, we consider that the class AS
      notes can support our current rating of 'AAA (sf)'. We have
      therefore affirmed and removed the rating from CreditWatch
      negative. We note that EUR69 million -- 84.63% of the
      outstanding balance of the notes -- is currently available
      to amortize the notes once the lock-out period ends in
      September 2011," according to S&P.

    * "We have affirmed our ratings on the class B and C notes as
      we believe they are performing in line with our initial
      expectations," S&P stated.

    * As of the last payment date in March 2011, reported
      delinquencies of more than 90 days and defaults over the
      outstanding balance of the assets were 2.27% and 0.30%. The
      reserve fund was at 100% of its required level.

    * The level of cumulative defaults over the original balance
      of the securitized assets at closing was 0.26%. This is far
      lower than the most subordinated interest deferral trigger
      level of 25%.

Foncaixa FTPYME 2, Foncaixa FTGENCAT 7, and FONCAIXA ANDALUCIA
FTEMPRESA 1 are Spanish small and midsize enterprise
collateralized loan obligation transactions originated by Caja de
Ahorros y Pensiones de Barcelona (La Caixa). The transactions'
portfolios comprise secured and unsecured loans granted to small
and midsize entities in their normal course of business, mainly
concentrated in La Caixa's home market of Valencia.

Ratings List

Class              Rating
           To                   From

FONCAIXA FTPYME 2, Fondo de Titulizacion de Activos
EUR1.176 Billion Floating-Rate Notes

Ratings Lowered and Removed From CreditWatch Negative

A(G)       AA- (sf)             AAA (sf)/Watch Neg
B          AA- (sf)             AA (sf)/Watch Neg

Rating Affirmed and Removed From CreditWatch Negative

AS         AAA (sf)             AAA (sf)/Watch Neg

Ratings Affirmed

C          BBB (sf)
D          D (sf)

FONCAIXA FTGENCAT 7, Fondo de Titulizacion de Activos
EUR1 Billion Asset-Backed Floating-Rate Notes

Rating Lowered and Removed From CreditWatch Negative

A(G)       AA- (sf)             AA+ (sf)/Watch Neg

Ratings Affirmed

B          A (sf)
C          BBB+ (sf)

Rating Unaffected

AS         NR

FONCAIXA ANDALUCIA FTEMPRESA 1, Fondo de Titulizacion de Activos
EUR500 Million Floating-Rate Notes

Rating Lowered and Removed From CreditWatch Negative

A(G)       AA- (sf)             AAA (sf)/Watch Neg

Rating Affirmed and Removed From CreditWatch Negative

AS         AAA (sf)             AAA (sf)/Watch Neg

Ratings Affirmed

B          A (sf)
C          BBB (sf)


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


ASTON MARTIN: S&P Assigns Preliminary 'BB-' Long-term Rating
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' preliminary
long-term corporate credit rating to U.K.-based automotive
manufacturer Aston Martin Holdings (UK) Ltd. "At the same time, we
assigned our preliminary 'BB-' issue rating to the GBP300 million
senior secured notes to be issued by Aston Martin Capital Ltd.,
including a preliminary recovery rating of '3' that indicates our
expectation of meaningful recovery (50%-70%) in a default
scenario. The outlook is stable," S&P stated.

Aston Martin (AM) is in the process of issuing a GBP300 million
bond maturing 2018 to refinance a GBP200 million bank loan,
purchase GBP52 million of preference shares held by Ford Motor Co.
(BB-/Positive/--), and to pay a GBP30 million dividend. The
proposed GBP30 million dividend would be the first since 2007 when
AM was acquired by a consortium of investors, and comes after a
GBP47 million equity injection in 2009.

"For the purpose of our rating, we assume that the notes issuance
is completed successfully, given that a failure to address a
potential short-term maturity of the œ200 million bank loan -- if
participating banks opt for an earlier payback -- would have a
materially negative impact on the ratings. This means that our
preliminary rating of 'BB-' is based on the assumption that the
notes issuance is completed successfully," S&P noted.

"The ratings on AM reflect our assessment of the company's
business risk profile and financial risk profile, which we
classify as 'fair' and 'aggressive'," according to S&P.

"In our view, the business risk profile is constrained by a marked
risk of cyclical swings in AM's end-markets, its niche position in
the market for high-end luxury sports cars, low product diversity,
and highly variable operating margins. The business risk profile
is supported by the company's strong brand reputation in the niche
market for luxury sports cars (which affords a certain pricing
power), its good production flexibility, product offering, and new
model pipeline," S&P continued.

At year-end 2010, AM's fully adjusted debt was 5.2x EBITDA, while
funds from operations (FFO) to debt stood at 17%. Fully adjusted
debt of GBP284 million on Dec. 31, 2010, primarily consisted of
reported financial liabilities of GBP304 million less surplus
cash. Pension and operating lease adjustments are immaterial.

"The stable outlook reflects our opinion that AM will likely
maintain credit ratios that we consider to be commensurate with
its financial risk profile of 'aggressive' such as adjusted FFO to
debt of about 15% in the medium term," S&P stated.

S&P noted, "In our base-case scenario for 2011, we expect AM's
adjusted FFO to debt to be roughly in line with this level. In
2012, we think AM's ratio will be slightly above this level. For a
cyclical company such as AM, we see the need to maintain a buffer
to enable the company to withstand the risk of large swings in
demand and operating cash flow, as has been the case in the recent
past."

"We could lower the ratings if the currently positive momentum
reverses and, as a result, AM's operating profitability
deteriorates, resulting in FFO to debt of less than 15%-20% for an
extended period," according to S&P.

"We would also lower the ratings if the refinancing of the GBP200
million bank loan and of the GBP100 million wholesale financing
line is not completed successfully in the next two quarters," S&P
said.

S&P further noted, "We could raise the ratings if operating
results and cash generation were considerably ahead of our base-
case scenario, leading to a significant deleveraging and sustained
improvement of credit protection measures."


CITRI: To be Placed Into Liquidation as Rescue Deal Fails
---------------------------------------------------------
Natalie Thomas at Mortgage Strategy reports that Newcastle-based
mortgage and protection advisory firm Citri will be placed into
liquidation on July 4.

Mortgage Strategy relates that Begbies Traynor, which is advising
Citri, has not yet been appointed as its liquidator but said it
expects to be following the collapse of a rescue deal.

The rescue deal would have meant the company would have been
placed into administration, but instead it will enter into
liquidation, the report says.

Mortgage Strategy reported last month that a deal to transfer 138
of Citri's advisers to Openwork had fallen through.

At the time, Mortgage Strategy Openwork said it was in discussions
with Citri and looking at ways its advisers could continue to
trade, but it is not known if Openwork was the firm looking to
rescue Citri.

A number of advisers have told Mortgage Strategy that they are
owed thousands of pounds in outstanding commission.


FINCH: Goes Into Voluntary Liquidation
--------------------------------------
Liverpool Daily Post reports that Finch, one of Liverpool's
largest design agencies, has been put into voluntary liquidation
by its directors.

Founder and director Tim Crutchley told Liverpool Daily Post that
the tough economic climate in Merseyside meant the firm could no
longer continue.

"It is very disappointing because we have been in business for 25
years.  But the local economy in Liverpool has got tougher and
tougher in the past couple of years," Liverpool Daily Post quotes
Mr. Crutchley as saying.

"We were getting work from clients on a project-by-project basis
rather than retainers -- many now have their own in-house marketing
departments. Add to that cutbacks in the public sector and it
meant that we eventually couldn't sustain the resource that we
had."

Finch was the creative design agency behind Liverpool's iconic
Capital of Culture 08 logo.


KINETICS GROUP: Seaflame Subsidiary Goes Into Administration
------------------------------------------------------------
Inside Housing reports that a subsidiary of contractor Kinetics
Group has been wound up and another has gone into administration.

The Royal Courts of Justice chancery division decided to wind up
the company's DC Group, which provides social housing repairs and
maintenance, at a hearing, according to Inside Housing.   The
report relates that Seaflame, a subsidiary providing gas
installation services has gone into administration.

Zolfo Cooper has been appointed as administrator.

The winding up petition was brought by Her Majesty's Revenue &
Customs, Inside Housing notes.  The report relates that HMRC was
owed around GBP7 million by DC Group.

Inside Housing discloses that Seaflame held six contracts worth
around GBP9 million, while DC Group's turnover had plummeted in
recent years from around GBP15 million to GBP3 million.  Inside
Housing says that DC Group was the subsidiary providing work under
a contract with Liverpool Mutual Homes, which is being terminated
in August seven months early because of concerns about
performance.

Inside Housing notes that Nick Murphy, business development
director at Kinetics, said the six contracts will be novated to
new companies created as part of a restructure of the business, if
clients consent.  Inside Housing relates that a total of 20
companies will be replaced by three businesses called Kinetics
North, Kinetics Midlands and Kinetics South.

Mr. Murphy said the group had lost business because it had not
submitted low bids in order to win work, the report says.

Inside Housing recalls that Kinetics problems first surfaced in
January after it moved to secure GBP2 million of funding from
private equity firm Sovereign Capital to cope with supply chain
restrictions.  This was followed the same month by the loss of the
LMH deal, the report relates.

In March, Hyde Group terminated a GBP3 million, 15,000-home gas
servicing contract with Kinetics following concerns about
performance, Inside Housing adds.


MORPHEUS EUROPEAN: Fitch Affirms 'CCCsf' Rating on Class E Notes
----------------------------------------------------------------
Fitch Ratings has affirmed Morpheus (European Loan Conduit No. 19)
plc:

   -- GBP24.3m Class A FRN (XS0198508110) affirmed at 'AAAsf';
      Outlook Stable

   -- GBP18m Class B FRN (XS0198508896) affirmed at 'AA+sf';
      Outlook Stable

   -- GBP15.9m Class C FRN (XS0198509431) affirmed at 'A+sf';
      Outlook Stable

   -- GBP11.7m Class D FRN affirmed at 'BBB-sf'; Outlook Negative

   -- GBP7.3m Class E affirmed at 'CCCsf'; 'RR4'

The affirmation reflects the performance of the loan pool since
Fitch's last rating action in August 2010 being in line with
expectations. 16 loans have repaid over the past 12 months,
resulting in the securitized loan balance reducing to GBP78.6
million from GBP85.8 million. The majority of the loan collateral
was valued pre-2004, so Fitch considers the reported weighted
average loan-to-value (WA LTV) ratio of 59% appropriate.

Although over-collateralization has reduced to GBP1.4 million from
GBP2.2 million a year ago, Fitch does not believe that this
impacts the current ratings of the bonds. The crystallization of
losses on loan 62 in 2010 was taken into account at the time of
Fitch's last rating action. Fitch estimated an LTV in excess of
200% for that loan.

Two loans are currently in special servicing after defaulting at
maturity. Fitch estimates an LTV of 90% for the B&Q Bridgwater
property (loan balance of GBP2.1 million) and the borrower has
indicated that it has agreed indicative terms for a re-financing.
Loan 303 (loan balance of GBP930,000) reports an LTV of 49% based
on a 2002 valuation. The servicer has commissioned a new valuation
and is working with the borrower to sell the asset.

In Q111, the class D and E notes suffered interest shortfalls of
GBP13,500 and GBP55,600, respectively. These shortfalls were
principally due to delays in receiving funds from the borrower,
which have subsequently been collected, allowing interest to be
repaid in full at the Q211 interest payment date.

Morpheus (European Loan Conduit No. 19) plc closed in August 2004
and was originally a securitization of nine fixed-rate commercial
mortgage loans originated by Morgan Stanley and 410 loans
originated by a UK bank and two building societies (99 loans
remain). The loans were secured on 901 commercial properties
located in England, Wales and Scotland and had an aggregate
principal balance of GBP583.9 million (currently GBP78.6 million).


NORTEL NETWORKS: Allocation of Sale Proceeds Under Consideration
----------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that judges in Delaware and Toronto held a joint hearing
June 7 by teleconference about a mechanism to decide how to divide
proceeds from the sale of assets by Nortel Networks Inc.  Nortel
has already generated about US$3 billion.  The last major asset
sale will occur on June 20 when Nortel's portfolio of 6,000
patents goes up for auction. The US$900 million opening bid will
come from Google Inc.

Mr. Rochelle notes that 19 Nortel subsidiaries in Europe want an
international arbitrator appointed to decide on the allocation of
sale proceeds among the Nortel companies in bankruptcy proceedings
in the U.S., Canada and the U.K.  The European companies, in
proceedings in London, claim no one should have a "home court
advantage."

                      About Nortel Networks

Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/-- was
once North America's largest communications equipment provider.
It has sold most of the businesses while in bankruptcy.

Nortel Networks Corp., Nortel Networks Inc., and other affiliated
corporations in Canada sought insolvency protection under the
Companies' Creditors Arrangement Act in the Ontario Superior Court
of Justice (Commercial List).  Ernst & Young was appointed to
serve as monitor and foreign representative of the Canadian Nortel
Group.

The Monitor sought recognition of the CCAA Proceedings in the
U.S. by filing a bankruptcy petition under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 09-10164).  Mary Caloway,
Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney
PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's
counsel.

Nortel Networks Inc. and 14 affiliates filed separate Chapter 11
petitions (Bankr. D. Del. Case No. 09-10138) on Jan. 14, 2009.
Judge Kevin Gross presides over the case.  James L. Bromley, Esq.,
at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as
general bankruptcy counsel; Derek C. Abbott, Esq., at Morris
Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware
counsel.  The Chapter 11 Debtors' other professionals are Lazard
Freres & Co. LLC as financial advisors; and Epiq Bankruptcy
Solutions LLC as claims and notice agent.  Fred S. Hodara, Esq.,
at Akin Gump Strauss Hauer & Feld LLP, in New York, and
Christopher M. Samis, Esq., at Richards, Layton & Finger, P.A.,
in Wilmington, Delaware, represent the Official Committee of
Unsecured Creditors.

Certain of Nortel's European subsidiaries also made consequential
filings for creditor protection.  On May 28, 2009, at the request
of the Administrators, the Commercial Court of Versailles, France
ordered the commencement of secondary proceedings in respect of
Nortel Networks S.A.  On June 8, 2009, Nortel Networks UK Limited
filed petitions in this Court for recognition of the English
Proceedings as foreign main proceedings under chapter 15 of the
Bankruptcy Code.

Nortel Networks divested off key assets while in Chapter 11.
In March 2009, the U.S. Bankruptcy Court entered an order
approving the sale of the Layer 4-7 assets to Radware Ltd. as the
successful bidder at auction.  In July 2009, Nortel sold its CDMA
and LTE-related assets to Telefonaktiebolaget LM Ericsson (Publ).
In September 2009, the Court Nortel sold its Enterprise Solutions
business to Avaya Inc.  In October 2009, the Court approved the
sale of assets associated with Nortel's Next Generation Packet
Core network components to Hitachi, Ltd.  On Dec. 2, 2009, the
Court approved the sale of assets associated with Nortel's
GSM/GSM-R business to Telefonaktiebolaget LM Ericsson (Publ) and
Kapsch Carriercom AG.  In December 2009, the Debtors sold their
Metro Ethernet Networks business to Ciena Corporation.  In March
2010, Nortel sold its Carrier Voice Over IP and Application
Solutions business to GENBAND Inc.  In September 2010, Nortel sold
its Multi-Service Switch business to Ericsson.

Nortel Networks filed a proposed plan of liquidation in the
U.S. Bankruptcy Court.  The Plan generally provides for full
payment on secured claims with other distributions going in
accordance with the priorities in bankruptcy law.


REDMIRE STABLES: In Liquidation; Customers Out of Pocket
--------------------------------------------------------
Horse & Hound Online reports that Redmire Stables & Buildings Ltd
has gone into liquidation.

H&H was unable to confirm the scale of the firm's debts, but the
liquidation has left customer Anne Huntington GBP14,000 out of
pocket -- with little prospect of getting her money back.

According to H&H, Hampshire-based Mrs. Huntington ordered an
American barn from Redmire -- selling her lorry in order to fund
the project -- after using the company in the past.

She feels particularly aggrieved that the Redmire sales team
pushed her to part with the GBP14,000 deposit, which comprised 50%
of the total cost of the barn, the report says.

After paying in April, H&H relates, Mrs. Huntington heard nothing
from the company for weeks.

H&H notes that rumours that the company was struggling had been
circulating within the timber industry for some time.

"Redmire ceased trading on May 13 and the director subsequently
instructed RSM Tenon to place the company into liquidation," H&H
quotes liquidators RSM Tenon as saying.  "At present, we are
unable to confirm the level of a dividend payable [to creditors],
if any."

Redmire Stables & Buildings Ltd -- http://www.redmire.co.uk/-- is
one of the largest manufacturers of timber stables in the UK.


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


* BOOK REVIEW: Beyond the Quick Fix
-----------------------------------
Author: Ralph H. Kilmann
Publisher: Beard Books
Hardcover: 320 pages
Listprice: US$34.95
Review by Henry Berry

Every few years, a new approach is offered for unleashing the full
potential of organized efforts.  These are the quick fixes to
which the title of this book refers.  The jargon of the quick fix
is familiar to any businessperson: decentralization, human
resources, restructuring, mission statement, corporate strategy,
corporate culture, and so on.  These terms are all limited in
scope or objective, and some are even irrelevant or misconceived
with regard to the overall well-being and purpose of a
corporation.

With his extensive experience as a corporate consultant, author of
numerous articles, and professor in business studies, Kilmann
recognizes that each new idea for optimum performance and results
is germane to some area of a corporation.  However, he also
recognizes that each new idea inevitably falls short in bringing
positive change -- that is, a change that is spread throughout the
corporation and is lasting.  At best, when a corporation relies on
an alluring, and sometimes little more than fashionable, idea, it
is a wasteful distraction.  At worst, it can skew a corporate
organization and its operations, thereby allowing the
corporation's true problems or weaknesses to grow until they
become ruinous.  As the author puts it, "Essentially, it is not
the single approach of culture, strategy, or restructuring that is
inherently ineffective.  Rather, each is ineffective only if it is
applied by itself -- as a "quick fix"."

Kilmann tells corporate leaders how to break the cycle of
embracing a quick fix, discarding it after it proves ineffective,
and then turning to a newer and ostensibly better quick fix that
soon proves to be equally ineffective.  For a corporation to break
this self-defeating cycle, the author offers a five-track program.
The five tracks, or elements, of this program are corporate
culture, management skills, team-building, strategy-structure, and
reward system.  These elements are interrelated. The virtue of
Kilmann's multidimensional five-track program is that it addresses
a corporation in its entirety, not simply parts of it.

Kilmann's five tracks offer structural and operational aspects of
a corporation that executives and managers will find familiar in
their day-to-day leadership and strategic thinking.  Thus, the
author does not introduce any unfamiliar or radical perspectives
or ideas, but rather advises readers on how to get all parts of a
corporation involved in productive change by integrating the five
tracks into "a carefully designed sequence of action: one by one,
each track sets the stage for the next track."  Kilmann does more,
though, than bring all significant features of a modern
corporation together in a five-track program and demonstrate the
interrelation of its elements.  His singularly pertinent and
useful contribution is providing a sequence of steps to be
implemented with respect to each track so that a corporation
progresses toward its goals in an integrated way.

Beyond the Quick Fix is a manual for implementing and evaluating
the progress of a five-track program for corporate success.  The
book should be read by any corporate leader desiring to bring
change to his or her organization.

Ralph H. Kilmann has been connected with the University of
Pittsburgh for 30 years.  For a time, he was its George H. Love
Professor of Organization and Management at its Katz Graduate
School of Business.  Additionally, he is president of a firm
specializing in quantum transformations.


                            *********

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, 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
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Information contained herein is obtained from sources believed to
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                 * * * End of Transmission * * *