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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, June 16, 2011, Vol. 12, No. 118

                            Headlines



C Y P R U S

GLOBALVALUE PLC: Chris Iacovides Appointed as Liquidator


C Z E C H   R E P U B L I C

ECM REAL ESTATE: Creditors Seeks Injunction to Ban Asset Sale


D E N M A R K

FIH ERHVERVSBANK: Moody's Cuts Debt and Deposit Ratings to 'Ba2'


F I N L A N D

MOVENTAS: Files for Bankruptcy; Mulls Corporate Restructuring


G E R M A N Y

TELDAFAX HOLDING: Files for Bankruptcy in Bonn


G R E E C E

* ATHENS: Moody's Cuts Issuer Rating to 'Caa1'; Negative Outlook
* GREECE: Eurozone to Bear EUR20-Bil. Under Debt Rescheduling


I R E L A N D

ANGLO IRISH: Taps FTI to Advise on Sale of US Loan Book
BANK OF IRELAND: Extends Bondholder Exchange Offer Deadline
KECO CONSTRUCTION: Leaves Behind EUR33.1 Million Liabilities
MCNAMARA CONSTRUCTION: NAMA Forces Firm Into Receivership


N E T H E R L A N D S

AEGON NV: To Pay Remaining EUR750 Million of Dutch State Aid
NORTH WESTERLY: Moody's Lifts Ratings on Two Note Classes to Caa3


R U S S I A

* TOMSK OBLAST: S&P Ups Issuer Credit Rating to 'BB-'


S L O V E N I A

ARGON CAPITAL: Moody's Cuts Rating on SKK300-Mil. Notes to 'Ba1'


S P A I N

RURAL HIPOTECARIO: Moody's Cuts rating on C Certificate to 'Ba3'


T U R K E Y

DENIZBANK AS: Moody's Assigns (P)Ba1 Rating to Sr. Unsecured Debt


U K R A I N E

* UKRAINE: Fitch Assigns 'B' Rating to US$1.25BB Eurobond Due 2016


U N I T E D   K I N G D O M

AQUILA ECLIPSE: Fitch Lifts Rating on Class E Notes From 'BBsf'
CENTRAL INTELLIGENCE: Place in Liquidation Over SAS Selling Racket
HOMEGUARD FIRE: In Liquidation; Linked to SAS Fire Selling Racket
MEZZVEST INVESTMENTS: S&P Affirms 'CCC-' Ratings on 2 Note Classes
PICSEL TECH: California Court Could Bring Closure to Legal Battle

SHIELD FINANCE: Moody's Gives Proposed Secured Debt (P)B2 Rating
SKYNET SECURITY: Placed in Liquidation Over SAS Selling Racket
SOUTHERN CROSS: Taps Clifford Chance For Restructuring Advice
SOUTHERN CROSS: Landlords May Have to Compromise on Rents
SOUTHERN CROSS: Labor Leader Calls for Council to Step In


X X X X X X X X

* Global Corporate Insolvencies to Remain Above Pre-Crisis Levels
* Upcoming Meetings, Conferences and Seminars


                            *********




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C Y P R U S
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GLOBALVALUE PLC: Chris Iacovides Appointed as Liquidator
--------------------------------------------------------
Globalvalue Plc disclosed that its creditors ratified unanimously,
at a June 10, 2011 meeting, a resolution for the appointment of
Chris Iacovides of CRI Group Ltd as liquidator.  This had been
approved with a special resolution during the Extraordinary
General Meeting on June 6, 2011.

With the appointment of the Liquidator, all the powers of the
Managers, TGPL Serv Ltd. and GLCS Holding Ltd., who resigned,
ceased.

Globalvalue Plc is engaged in the retail and wholesale of home
furnishing items.  The company was formerly known as Trokkoudes &
Kyros Plc and changed its name to Globalvalue Plc in December
2008.  Globalvalue is based in Nicosia, Cyprus.


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


ECM REAL ESTATE: Creditors Seeks Injunction to Ban Asset Sale
-------------------------------------------------------------
CTK, citing the insolvency register, reports that large creditors
of ECM Real Estate Investments AG have asked a court to issue a
preliminary injunction to ban a sale of the firm's assets without
the approval of the insolvency receiver and creditor committee.

The proposal for the preliminary injunction has been signed by the
firm Glancus Investments of the PPF group, high-street bank Ceska
sporitelna, representatives of bondholders Astin Capital
Management and Volksbank CZ, CTK discloses.

CTK says the creditors are concerned that the ECM group wants to
continue selling its assets as well as the assets of its
subsidiaries.

According to CTK, the creditors said in the proposal that they
want to make sure that the value of ECM assets will not be
lowered, in particular the most important part of the assets,
namely stakes in the debtor-controlled companies that own real
estate or stakes in them.

The creditors argue that ECM sold stakes in some subsidiaries
after the start of insolvency proceedings, CTK recounts.  This
applies for example to the firms Palisady, ECM Byty and Empiria
Building, according to the creditors, CTK cites.  The firm Tosar
has gained ECMcs stakes in these companies for Kc1, the report
notes.

As reported by the Troubled Company Reporter-Europe, CTK related
that insolvency proceedings against ECM were initiated in April by
the Ceska sporitelna bank, which has claims on the developer worth
around CZK194 million.  The proceedings were then joined by
Volksbank CZ and Glancus Investments, among other companies, CTK
recounted.  ECM has long-term liabilities exceeding EUR165.9
million (CZK4 billion), most of the debt being liabilities from
issued bonds, CTK disclosed.  ECM wants to resolve its
indebtedness through reorganization, CTK stated.  Ceska sporitelna
and Volksbank CZ proposed a reorganization of the developer, while
Glancus Investments proposed bankruptcy, CTK noted.  The review of
registered claims on ECM will take place on July 20, according to
CTK.

ECM Real Estate Investments AG is known mainly as the builder of
high-rise buildings in Prague's Pankrac district.


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D E N M A R K
=============


FIH ERHVERVSBANK: Moody's Cuts Debt and Deposit Ratings to 'Ba2'
----------------------------------------------------------------
Moody's Investors Service has downgraded FIH Erhvervsbank A/S's
long-term debt and deposit ratings to Ba2 from Ba1 and the
standalone bank financial strength rating to D- (mapping to Ba3 on
the long-term scale) from D (Ba2). The bank's NP short-term rating
is unaffected by this rating action and the outlook for all the
ratings is negative.

The downgrade concludes Moody's review of FIH's ratings that was
initiated firstly in June 2010, and which was maintained in
January 2011 to assess the impact of the bank's change in
ownership. Following the downgrade, FIH's Ba2 debt and deposit
ratings will continue to benefit from one notch of uplift from the
Ba3 standalone credit strength (also referred to as the baseline
credit assessment). The rating uplift reflects the probability of
support from its owners, in particular the largest owner
Arbejdsmarkedets Tillaegspension's. ATP holds just under 50% of
FIH's shares.

Taking this parental support into account in the Ba2 Adjusted BCA,
the bank's junior subordinated debt ratings -- which are rated two
notches below the adjusted BCA -- have been upgraded to B1(hyb)
and the junior subordinated debt rating of the program to (P)B1.
This corrects an earlier oversight, when in September 2010 FIH's
BCA was changed to Ba2 and Moody's omitted to upgrade the junior
subordinated debt ratings and the relevant program rating at that
point. Moody's has now also included the hybrid indicator (hyb) in
the ratings of both of the bank's junior subordinated debt
issuances.

Ratings Rationale

The downgrade of FIH's standalone BFSR mainly reflects Moody's
continued concerns about the bank's funding position, as FIH needs
to refinance DKK50 billion (over 50% of total funding) of
government-guaranteed debt, maturing between August 2012 and June
2013.

"In Moody's opinion, the bank is likely to find it difficult to
attract new market funding, especially in light of Bank Package
III and the failure of Amagerbanken, in which losses were imposed
on senior investors", says Oscar Heemskerk, a Moody's Vice
President. "We believe that alternative means to reduce the
refinancing burden, such as reducing the loan book, are equally
problematic, given that FIH's clients will also face refinancing
problems."

Moody's positively notes that in June 2011, the Danish parliament
passed a law permitting ATP, the largest owner of FIH, to hold a
majority stake in FIH, increasing the possibility that parental
support would be forthcoming, if needed. The law limits ATP's
involvement in overall bank and mortgage lending to a 5% market
share. However, given FIH's current, overall lending market share
of less than 2%, Moody's does not consider this limitation as
hindering ATP's ability to develop FIH's franchise. As a result,
following the downgrade, FIH's debt and deposit ratings will
continue to benefit from one notch of parental support uplift.

FIH has a large industry concentration in commercial real estate
(32% of total lending as of YE 2010), a sector that has been
severely impacted by the economic downturn.

FIH's asset quality has substantially deteriorated, as indicated
by defaulted loans and receivables increasing from DKK2.2 billion
at YE 2008 to DKK5.3 billion at YE 2010. When including non-
defaulted commitments with an objective indication of impairment,
problem loans amounted to DKK8.8 billion at YE 2010, or 14.6% of
gross loans.

In the weak economic environment, with Danish bank lending having
decreased since Q3 2009 and Denmark re-entering recession in Q1
2011, it will be harder for FIH to maintain core profitability.
Excluding unrealized gains on its investment portfolio, the bank
reported a pre-provision income ratio (compared with risk-weighted
assets) of between 0.65% and 0.78% in 2009 and 2010. The negative
outlook for FIH's ratings reflects this weak economic environment,
as well as the aforementioned funding pressures. Moody's notes
that FIH has taken steps to reduce its cost base, evidenced in
April 2011 by a substantial approximate 10% reduction in the
number of its employees.

Given the current challenging market conditions facing the Danish
banking sector, a further downgrade of FIH's BFSR could be
prompted by (i) further weakening in its financial strength,
particularly in terms of asset quality and profitability; (ii)
increased credit risk from large exposures; (iii) any material
franchise erosion; or (iv) a tightening of its liquidity position.

In light of the current negative outlook on the BFSR and the
challenging operating environment, Moody's does not view any
upgrade of the ratings as likely. Over time, a sustainable
improvement in profitability, and a reduction in the reliance on
market funding in general -- and government-guaranteed funding
specifically -- could lead to upward pressure on the ratings.

Rating Corrections

Moody's Investors Service has corrected the junior subordinated
debt ratings of FIH's EUR10 billion EMTN program and of the junior
subordinated debt issued off this program to (P)B1, B1(hyb) and
B1(hyb) respectively, with a negative outlook, from (P)B2, B2 and
B2(hyb) respectively, with a negative outlook, in line with the
rationale used for rating other Danish junior subordinated debt
ratings. These ratings should have been updated when in September
2010 FIH's BCA changed to Ba2 from Ba3. As of June 13, 2011, FIH's
BCA changes to Ba3, while its Adjusted BCA is Ba2, taking into
account one notch of parental support uplift. The junior
subordinated debt ratings are placed at two notches below the
Adjusted BCA.

In addition, the hybrid (hyb) indicator was inadvertently omitted
from the rating of the EUR100 million junior subordinated debt,
owing to the security being mislabeled as a "subordinated" debt.
Moody's has now relabeled the security as "junior subordinated"
and included the hybrid indicator (hyb) in the rating in
accordance with Moody's Rating Symbols and Definitions published
in May 2011.

Previous Rating Action & Methodologies Used

The principal methodologies used in rating FIH are Moody's "Bank
Financial Strength Ratings: Global Methodology", published
February 2007, and "Incorporation of Joint-Default Analysis into
Moody's Bank Ratings: A Refined Methodology", published in March
2007, which are available on www.moodys.com in the Rating
Methodologies sub-directory under the Research & Ratings tab.
Other methodologies and factors that may have been considered in
the process of rating this issuer can also be found in the Rating
Methodologies sub-directory on Moody's Web site.

Headquartered in Copenhagen, Denmark, FIH Erhvervsbank reported
total consolidated assets of DKK91.3 billion (EUR12.2 billion) at
end-March 2011.

Moody's Investors Service may have provided Ancillary or Other
Permissible Service(s) to the rated entity or its related third
parties within the three years preceding the Credit Rating Action.
Please see the ratings disclosure page www.moodys.com/disclosures
on Moody's Web site for further information.

Moody's adopts all necessary measures so that the information it
uses in assigning a credit rating is of sufficient quality and
from sources Moody's considers to be reliable including, when
appropriate, independent third-party sources. However, Moody's is
not an auditor and cannot in every instance independently verify
or validate information received in the rating process.

The date on which some Credit Ratings were first released goes
back to a time before Moody's Investors Service's Credit Ratings
were fully digitized and accurate data may not be available.
Consequently, Moody's Investors Service provides a date that it
believes is the most reliable and accurate based on the
information that is available to it.


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F I N L A N D
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MOVENTAS: Files for Bankruptcy; Mulls Corporate Restructuring
-------------------------------------------------------------
Reuters reports that Moventas said it had filed for bankruptcy due
to the recession, but is seeking corporate restructuring for its
subsidiaries so they can continue operating.

"With wind power we have been in recession for three years.  This
year will be quite bad for the whole western wind sector as well,"
Moventas CEO Jukka Jaamaa told Reuters, citing order postponements
and cancellations.  "We have overcapacity in Europe, whereas our
customer base has now shifted largely toward growth markets, such
as North America and Asia."

According to Reuters, after talks between the lenders and owners
failed, Moventas subsidiaries Moventas Wind Oy and Moventas
Santasalo Oy, which makes power transmission gear for paper
machines and other industries, will file for corporate
restructuring and aim to continue business.

Moventas, which is not listed on a bourse, had 2010 net sales of
about EUR200 million (US$289 million), and its loss-making
windpower unit contributed about a third of it, Reuters discloses.

Moventas is a Finnish wind turbine and industry gear maker.
Private equity firm IK Investment Partners is the majority owner
of Moventas shares.


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G E R M A N Y
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TELDAFAX HOLDING: Files for Bankruptcy in Bonn
----------------------------------------------
According to Bloomberg News' Rajiv Sekhri, a regional court said
in an e-mailed statement on Tuesday that TelDaFax Holding AG has
filed for bankruptcy in Bonn.

TelDaFax Holding AG is Germany's biggest independent electricity
retailer.


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G R E E C E
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* ATHENS: Moody's Cuts Issuer Rating to 'Caa1'; Negative Outlook
----------------------------------------------------------------
Moody's Investors Service has downgraded the City of Athens'
issuer rating to Caa1 from B1 and changed the outlook to negative.
The rating action concludes the review for downgrade initiated on
May 10, 2011.

Ratings Rationale

The rating action on Athens follows Moody's decision to downgrade
the sovereign rating of Greece to Caa1, with a negative outlook.

The Sovereign action reflects the increased risk that Greece will
fail to stabilize its debt position as well as the increased
likelihood that Greece's supporters (the IMF, ECB and the EU
Commission, together known as the "Troika") will, at some point in
the future, require the participation of private creditors in a
debt restructuring as a precondition for funding support. Taken
together, these risks imply at least an even chance of default
over the rating horizon.

"Greek municipalities, including the city of Athens, are unlikely
to have enough financial flexibility to enable their credit
quality to be stronger than that of the sovereign itself", says
Gianfilippo Carboni, Moody's lead analyst for Athens. "We also
recognize Athens' reliance on central government transfers in
order to fund its operations and capital investments, and the high
level of integration of its local economic base with that of the
national economy", adds Mr. Carboni.

The strong operational and financial linkages between the city and
the sovereign imply significant limitations for the city's
administration to act independently from the sovereign and outside
of the scope of broader government reforms. These linkages are
illustrated in the recent deterioration in the city's financial
performance, which has mirrored the overall deterioration of the
sovereign's fiscal position.

Pre-closing figures for 2010 reveal Athens' difficulty in
adjusting expenditure levels to match lower revenue, resulting in
a widening cash financing deficit. "We believe that anticipated
cuts in central government transfers will be difficult to absorb
within the city's budget. Particularly, measures to reduce
personnel costs, dictated under government reforms, and to
streamline public services will take time to generate savings. In
the near term, this will exert greater liquidity pressure on
Athens' finances", continues Mr. Carboni.

The negative outlook matches that on the Sovereign rating and
reflects the strong linkages referred to above. Additionally, the
outlook reflects the significant fiscal and liquidity challenges
facing the city.

              What Could Change The Rating Up/Down

Given the strong linkages between the sovereign and the City of
Athens, Moody's would likely downgrade the city further if the
sovereign rating were downgraded. Moody's would downgrade Greece's
rating further if it transpired that the Greek government's
compliance with the conditions stipulated in the Memorandum of
Understanding is materially weakening, and that, as a result,
there is a rising risk that additional funding will not be
forthcoming. Any announcement of a program that includes
conditions that satisfy Moody's definition of default would also
lead to further downgrades. Moody's expectation is that if the
sovereign defaulted, a default by the City would be equally as
likely. If this were to occur, any future rating action on the
City would be based on a loss-given default analysis to assess the
extent of losses to the City's lenders, which could move
independently of central government actions.

Conditions that would lead to a sovereign upgrade would also
likely lead to an upgrade of the City's rating as these conditions
would flow through and impact the City's finances in much the same
way as they would impact the sovereign itself. Moody's would
upgrade Greece's rating if the pace of fiscal consolidation and/or
structural reform implementation were to proceed much more rapidly
than Moody's currently expects. An upgrade could also follow if
key drivers of the debt dynamics were seen to be evolving in a way
that would significantly accelerate the pace of debt reduction.

The principal methodologies used in this rating were "Regional and
Local Governments Outside the US", published in May 2008, and "The
Application of Joint Default Analysis to Regional and Local
Governments", published in December 2008.

As the capital city of Greece, Athens plays a key role as the
financial, economic and political hub of the country. It accounts
for almost 50% of national GDP and has a total population of
745,000.


* GREECE: Eurozone to Bear EUR20-Bil. Under Debt Rescheduling
-------------------------------------------------------------
Peter Spiegel and Quentin Peel at The Financial Times report that
European finance ministers have been warned that a German-inspired
plan to reschedule Greek debt could force eurozone governments to
provide up to an extra EUR20 billion to avoid a meltdown of its
financial sector.

A briefing paper circulated by the European Commission, and seen
by the FT, warned the extra money may be needed to recapitalize
Greek banks following a proposed maturity extension of Greek
government bonds, which would be classified by rating agencies as
a "selective default."

A further cash reserve may be required for emergency Greek bank
liquidity if the European Central Bank refuses to accept
downgraded bonds as collateral, the FT says.  Ministers have been
told all the Greek collateral -- some EUR70 billion -- might have
to be replaced, the FT states.

Ministers are considering three options for private sector
involvement, which have been set out in a document circulated by
the European Commission, the FT discloses.

According to the FT, the most drastic is for a voluntary debt
exchange, involving an extension of maturities on Greek government
bonds to buy time for Athens to cope with its debt crisis.

European officials calculate a successful debt exchange with 100%
participation would "virtually eliminate the need for official
financing" for the next five-and-a-half years, on top of the EUR57
billion still to be paid from Greece's EUR110 billion rescue
program agreed last year, the FT relates.  But the plan could also
leave the eurozone responsible for propping up Greece's financial
system, the FT notes.

The second and third options are for a voluntary "rollover" of
bonds, less likely to trigger a bond downgrade, and therefore
favored by the ECB and France, in particular, the FT discloses.


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I R E L A N D
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ANGLO IRISH: Taps FTI to Advise on Sale of US Loan Book
-------------------------------------------------------
Simon Carswell at The Irish Times reports that Anglo Irish Bank
has retained the real estate consultancy division of FTI to advise
the bank on bids for its US$10.5 billion (EUR7 billion) US loan
book, due for sale shortly.

According to The Irish Times, the bank is being advised by
Bruce Schonbraun, the head of that real estate division at FTI
Real Estate Advisory Services in New York.

AIB awarded the contract to sell the loan book last week to the
U.S. property broker and investment bank Eastdil Secured, a
subsidiary of US bank Well Fargo, The Irish Times relates.

Discussions are still ongoing between AIB and Eastdil on the best
way to sell the US loan book to secure the best price for the
assets, The Irish Times discloses.

Among the options under consideration is the sale of the loans by
splitting the portfolio into performing and non-performing loans
to be sold off separately and the division of the book by sector,
selling the retail, office and hospitality loans in separate
tranches, The Irish Times notes.

Another possibility is for certain loans linked to high-profile
properties to be sold off separately, such as the loan on the
Mandarin Oriental hotel in Boston, The Irish Times states.

Anglo Irish Bank Corp PLC -- http://www.angloirishbank.com/--
operates in three core areas: business lending, treasury and
private banking.  The Bank's non-retail business is made up of
more than 11,000 commercial depositors spanning commercial
entities, charities, public sector bodies, pension funds, credit
unions and other non-bank financial institutions.  The Company's
retail deposits comprise demand, notice and fixed term deposit
accounts from personal savers with maturities of up to two years.
Non-retail deposits are sourced from commercial entities,
charities, public sector bodies, pension funds, credit unions and
other non-bank financial institutions.  In addition, at Sept. 30,
2008, its non-retail deposits included deposits from Irish
Life Assurance plc.  The Private Bank offers tailored products and
solutions for high net worth clients and operates the Bank's
lending business in Ireland and the United Kingdom.

                         *     *     *

As reported by the Troubled Company Reporter-Europe on March 8,
2011, Moody's Investors Service downgraded the bank deposit
ratings of Anglo Irish Bank Corporation Limited and Irish
Nationwide Building Society to Caa1/Not-Prime, from Baa3/P-3 (on
review for possible downgrade), the same level as the unguaranteed
senior unsecured debt ratings of the two institutions.  The Caa1
long-term bank deposit ratings remain on review for possible
downgrade, in line with the review on the unguaranteed senior
unsecured debt ratings.  S&P said there is no rating impact on the
stand-alone bank financial strength ratings, on the senior
unsecured and subordinated debt ratings, and on the government-
guaranteed debt ratings.


BANK OF IRELAND: Extends Bondholder Exchange Offer Deadline
-----------------------------------------------------------
Jennifer Hughes at The Financial Times reports that Bank of
Ireland has extended the deadline of a critical exchange offer,
although the move is not expected to appease bondholders.

According to the FT, the extension gives holders of the bank's
outstanding permanent interest bearing shares, or PIBS, a further
seven days after holders of the bonds complained the deadline was
too tight.

The bonds are part of a EUR2.6 billion debt exchange offered by
BoI as part of plans to raise EUR4.2 billion, the FT discloses.

Holders of the bank's junior bonds have the choice of either
accepting 20% of the value of their bonds in cash, or 40% if they
accept shares instead, the FT notes.  If they do not accept, the
government has warned it would use its powers to force an even
more punitive deal, the FT states.

A group of professional investors has already called on BoI to
open talks on the deal but the offer has been considered
particularly harsh for the PIBS holders because under EU rules,
investors with stakes equivalent to less than EUR50,000 in the new
shares cannot opt for shares and must instead accept the half-
price cash payout, leaving investors who can afford to snap up
enough bonds free to arbitrage the rules and profit from the
higher shares offer, the FT relates.

PIBS holders have complained about both the low payout and the way
smaller holders are excluded, the FT says.  Both the professional
holders and the PIBS investors, according to the FT, claim that as
BoI is currently a solvent institution even after cash injections
by the government, it does not have the right to offer the sort of
tough deal normally only seen in last-ditch rescues.

Headquartered in Dublin, Bank of Ireland --
http://www.bankofireland.com/-- provides a range of banking and
other financial services.  These include checking and deposit
services, overdrafts, term loans, mortgages, business and
corporate lending, international asset financing, leasing,
installment credit, debt factoring, foreign exchange facilities,
interest and exchange rate hedging instruments, executor, trustee,
life assurance and pension and investment fund management, fund
administration and custodial services and financial advisory
services, including mergers and acquisitions and underwriting.
The Company organizes its businesses into Retail Republic of
Ireland, Bank of Ireland Life, Capital Markets, UK Financial
Services and Group Centre.  It has operations throughout Ireland,
the United Kingdom, Europe and the United States.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on June 15,
2011, Fitch Ratings affirmed Bank of Ireland and Irish Life and
Permanent's ratings and removed BOI's Individual Rating of 'D/E'
from Rating Watch Negative.  The rating actions follow what the
agency, according to its criteria, views as offers of coercive
debt exchange by the two institutions.


KECO CONSTRUCTION: Leaves Behind EUR33.1 Million Liabilities
------------------------------------------------------------
Gordon Deegan at Irish Examiner reports that Keco Construction Ltd
left behind gross liabilities of over EUR33.1 million when it went
into receivership last year.

New documents lodged with the Companies Office also show that the
company had net liabilities of EUR20.3 million, according to Irish
Examiner.  The report relates that the company's debts include
EUR4.5 million owed to around 240 trade creditors.

Allied Irish Banks Plc-appointed receiver Tom Doheny of Deloitte &
Touche said "it is highly, highly unlikely" that the trade
creditors will receive any money from the receivership process
after all of the company's assets have been disposed of, The
Examiner discloses.

The Examiner says that Keco Construction owes these entities:

   * Galway-based Hodgins Architectural Facades Ltd is owed
     EUR193,000.

   * MAK Building Services of Lisdoonvarna is owed EUR187,854.

   * Clareco Scaffolding Ltd is owed EUR170,946.

   * Inagh-based Colm O'Rourke Ltd is owed EUR188,946.

   * Raymar Construction is owed EUR155,000.

   * Ennis Ironworks is owed EUR154,765.

   * Whelan Limestone Quarries Ltd, which was wound up last
     December, is owed EUR158,202.

   * Marian Petty Solicitors is owed EUR146,299.

   * Windows & Roofing Concepts Ltd is owed EUR121,586.

   * Headford-based Joyce & Sons is owed EUR129,599.

   * Ennis Lifts is owed EUR119,458.

   * Kieran O'Mahony, Steelfixing and Concrete is owed EUR118,659.

   * James O'Sullivan Painting Contractor is owed EUR112,301.

The Examiner notes that Keco Construction was owed EUR2.1 million
when it collapsed, with Curley Holdings owing EUR1.75 million.
However, The Examiner relates, the company doesn't expect to
receive any of the amounts owed by Curley Holdings and, overall,
expects to realize just EUR127,150 of the EUR2.1 million.

AIB and Ulster Bank are owed EUR19 million as debenture holders,
secured by a floating charge over the firm's assets, The Examiner
says.  The two banks are owed a further Irish GBP7.4 million
secured by specific assets.

The company's work in progress was valued at EUR5 million while
the amount owed by the company to the company's two directors
accounted for EUR1.62 million, The Examiner says.

The report adds that the figures show that the company owed
EUR506,891 to preferential creditors that includes the Revenue and
local authorities.


MCNAMARA CONSTRUCTION: NAMA Forces Firm Into Receivership
---------------------------------------------------------
Highland Radio reports that National Asset Management Agency
(NAMA) Chairman Frank Daly said it was a difficult decision to
push McNamara Construction into receivership.

Mr. Daly also said it was something that couldn't be achieved
without pain, Highland Radio relates.

However, Deputy Mac Lochlainn said it is the people of Donegal who
have been forced to bear that pain, with work stalled on the
extension to Letterkenny General Hospital, the report notes.

As reported in the Troubled Company Reporter - Europe on Nov. 17,
2010, Farrell Grant Sparks was appointed as receiver for Michael
McNamara Construction.  RTE News said that sources close to the
company have vigorously disputed NAMA's claim that the appointment
of a receiver was agreed between the company and NAMA.  The report
relates the sources said that if given three days' grace, they
were optimistic that they would have been in a position to raise
extra money.  Meanwhile, the report noted that sources close to
NAMA confirmed that the appointment of a statutory receiver to
Michael McNamara Construction is the first use of NAMA's statutory
enforcement powers.  NAMA had organized a tendering process for
enforcement proceedings, and had negotiated a very competitive fee
for the receivership with FGS in line with competitive rates
emerging in the tender process, they added.  The report relates
that NAMA had recently rejected a business plan put forward by the
company.

Michael McNamara Construction, established in 1948, has over 60
years' experience in the construction industry as a national and
international contractor.  The company has worked in various
sectors of the industry for Public Agencies, Government
Departments and Private Clients.


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


AEGON NV: To Pay Remaining EUR750 Million of Dutch State Aid
-----------------------------------------------------------
Matt Steinglass at The Financial Times reports that Aegon will
repay the remaining EUR750 million (US$1.1 billion) it owes the
Dutch state from aid received in the financial crisis.

According to the FT, including a 50% premium, the total repayment
will come to EUR1.125 billion.  The repayment leaves the company
free to resume paying dividends and make acquisitions, the FT
notes.

Aegon received EUR3 billion in support from the Dutch state in
2008, the FT recounts.  Including earlier repayments and premiums,
it will have ultimately repaid the government EUR4.1 billion, the
FT discloses.

The repayment may also enable Aegon to resume paying bonuses to
senior executives, the FT states.

                          About AEGON

As an international life insurance, pension and investment company
based in The Hague, AEGON has businesses in more than 20 markets
in the Americas, Europe and Asia.  AEGON companies employ roughly
29,000 people and have more than 40 million customers across the
globe.


NORTH WESTERLY: Moody's Lifts Ratings on Two Note Classes to Caa3
-----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of these notes
issued by North Westerly CLO I B.V.

Issuer: North Westerly CLO I B.V.

   * EUR32,000,000 Class II Deferrable Interest Floating Rate
     Notes due 2016, Upgraded to Baa1 (sf); previously on Dec 7,
     2009 Downgraded to Ba1 (sf)

   * EUR7,500,000 Class III-A Deferrable Interest Fixed Rate
     Notes due 2016, Upgraded to Ba3 (sf); previously on Dec 7,
     2009 Downgraded to B3 (sf)

   * EUR12,000,000 Class III-B Deferrable Interest Floating Rate
     Notes due 2016, Upgraded to Ba3 (sf); previously on Dec 7,
     2009 Downgraded to B3 (sf)

   * US$5,270,000 Class III-C Deferrable Interest Floating Rate
     Notes due 2016, Upgraded to Ba3 (sf); previously on Dec 7,
     2009 Downgraded to B3 (sf)

   * EUR6,000,000 Class IV-A Deferrable Interest Fixed Rate Notes
     due 2016 (current outstanding balance of EUR5,004,939.55),
     Upgraded to Caa3 (sf); previously on Dec 7, 2009 Downgraded
     to Ca (sf)

   * EUR12,000,000 Class IV-B Deferrable Interest Floating Rate
     Notes due 2016 (current outstanding balance of
     EUR10,009,879.12), Upgraded to Caa3 (sf); previously on Dec
     7, 2009 Downgraded to Ca (sf)

   * EUR5,000,000 Class Q Combination Notes due 2016 (current
     outstanding rated balance of EUR1,671,954.09), Upgraded to
     Ba1 (sf); previously on Dec 7, 2009 Downgraded to B1 (sf)

The ratings of the Combination Notes address the ultimate
repayment of the Rated Balance in respect of each of the
Combination Notes on or before the legal maturity date (being June
2016), where the "Rated Balance" is equal, at any time, to the
principal amount of Combination Notes on the Issue Date minus the
aggregate of all payments made from the issue date to such date,
either through interest or principal payments. It is not an
opinion about the ability of the issuer to pay interest.

Ratings Rationale

North Westerly CLO I B.V. issued in June 2003, is a multi currency
Collateralised Loan Obligation backed by a portfolio of mostly
high yield European loans. The portfolio is managed by NIBC Bank
N.V. This transaction has passed the reinvestment period in June
2008. It is composed of 87% senior secured loans from 20 various
industries.

According to Moody's, the rating actions taken on the notes result
primarily from the delevering of the transaction. Including the
latest payment which occurred on June 3, 2011, Class I A/B and
Class IV A/B notes have been paid down by approximately 34% or
EUR86.96 million, 17% or EUR3 million, respectively, since the
rating action in December 2009. As a result of the delevering, the
overcollateralization ratios have increased across all tranches
since the rating action in December 2009. The Class I, Class II,
Class III and Class IV overcollateralization ratios have improved
by approximately 40%, 17%, 10% and 6%, respectively, compared to
October 2009 levels.

In addition, the current rated balance of Combo Q note have
reduced to EUR1.67 million from EUR1.94 million in last rating
action in December 2009, due to interest payments on Class III-A
component.

In its base case, Moody's analyzed the underlying collateral pool
with WARF of 4086. The base case diversity score, weighted average
spread and weighted-average recovery rate were respectively 25,
2.96% and 61.71%.

Moody's notes that this transaction is subject to a high level of
macroeconomic uncertainty, as evidenced by 1) uncertainties of
credit conditions in the general economy and 2) 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 by 1) divergence in legal
interpretation of CDO documentation by different transactional
parties due to embedded ambiguities and 2) whether delevering from
unscheduled principal proceeds will continue and at what pace.
Delevering may accelerate due to high prepayment levels in the
loan market and/or collateral sales by the manager, which may have
significant impact on the notes' ratings.

The principal methodology used in this rating was the "Moody's
Approach to Rating Collateralized Loan Obligations" rating
methodology 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
modeled, 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 82% 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.


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


* TOMSK OBLAST: S&P Ups Issuer Credit Rating to 'BB-'
-----------------------------------------------------
Standard & Poor's Ratings Services raised its issuer credit rating
on Russia's Tomsk Oblast to 'BB-' from 'B+'. "At the same time, we
raised the Russian national scale rating on the oblast to 'ruAA-'
from 'ruA'. The outlook is stable. The recovery rating on the
oblast's unsecured debt remains unchanged at '3'," S&P related.

"The oblast has built up its cash reserves and extended its debt
maturity on faster-than-planned revenue growth and continued state
budget loans," Standard & Poor's credit analyst Felix Ejgel said.
"As a result, we expect that the oblast's debt service will
continue to decline to an annual average of 8% of operating
revenues during 2011-2013."

"The ratings on Tomsk Oblast incorporate our view of the oblast's
still-fairly-short-term debt profile, its limited budgetary
flexibility and predictability, and the dependence of its revenues
on volatile commodity markets. Offsetting these factors are the
oblast's moderate debt and significant support from the federal
government in the form of budget loans," S&P stated.

S&P continued, "The stable outlook reflects our expectation that
increasing spending pressure before and after the 2011-2012
Russian parliamentary and presidential elections will only
moderately weaken the oblast's budgetary performance and debt
accumulation."

"If, in line with our downside scenario, the oblast's liquidity
position noticeably weakens, with its cash cushion and available
credit facilities falling below 80% of annual debt service, this
could in our view lead to the ratings being lowered within the
next 12 months. We could also consider lowering the ratings if
spending pressures were to increase and significantly weaken the
oblast's budgetary performance such that deficits after capital
accounts approached 10% of total revenues, thus fuelling debt
accumulation," S&P related.

"On the contrary, a cash reserves build-up and significantly
strong budgetary performance due to higher taxes and subsidies
from the federal government, in line with our upside scenario,
could be positive for the ratings. Nevertheless, we view a
positive rating action within the next 12 months as unlikely," S&P
added.


===============
S L O V E N I A
===============


ARGON CAPITAL: Moody's Cuts Rating on SKK300-Mil. Notes to 'Ba1'
----------------------------------------------------------------
Moody's Investors Service has downgraded the rating of notes
issued by Argon Capital PLC Series 99. The notes affected by the
rating action are:

Issuer: Argon Capital PLC

   -- Series 99 SKK 300,000,000 Limited Recourse Secured Floating
      Rate Credit-Linked Notes due 2012, Downgraded to Ba1;
      previously on Feb 1, 2011 Baa1 Placed Under Review for
      Possible Downgrade

Ratings Rationale

The Series 99 are credit linked to Nova Ljubljanska Banka D.D.
Merrill Lynch & Co. Inc., currently rated A2 under review for
possible downgrade, is the swap guarantor and collateral provider
for these notes.

The rating action is a result of a rating action on Nova
Ljubljanska Banka D.D., which was downgraded by Moody's to Baa3
from A3 under review for possible downgrade on the June 8, 2011.
Moody's also ran sensitivity analysis with 1, 2 and 3 notch
downgrades of Merrill Lynch & Co. Inc. The corresponding outcomes
are consistent with the rating assigned today.

The principal methodology used in this rating was "Moody's
Approach to Rating Repackaged Securities" published in April 2010.

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.


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


RURAL HIPOTECARIO: Moody's Cuts rating on C Certificate to 'Ba3'
----------------------------------------------------------------
Moody's Investors Service has downgraded the rating of all notes
issued by RURAL Hipotecario X.

The rating of the C notes were placed on review for possible
downgrade in February 2011 due to the worse than expected
performance of the collateral. All the loans were originated by 21
Rural saving banks.

Ratings Rationale

The rating action concludes the review and takes into
consideration the worse-than-expected performance of the
collateral. It also reflects Moody's negative sector outlook for
Spanish RMBS and the weakening of the macro-economic environment
in Spain, including high unemployment rates.

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

Portfolio Expected Loss:

Moody's has reassessed its lifetime loss expectation taking into
account the collateral performance to date, as well as the current
macroeconomic environment in Spain. In February 2011, cumulative
write-offs rose to 0.75% of the original pool balance. The share
of 90+ day arrears stood at 2.07% of current pool balance. Moody's
expects the portfolio credit performance to be under stress, as
Spanish unemployment remains elevated. The rating agency believes
that the anticipated tightening of Spanish fiscal policies is
likely to weigh on the recovery in the Spanish labor market and
constrain future Spanish households finances. Moody's also has
concerns over the timing and degree of future recoveries in a
weaker Spanish housing market. On the basis of Moody's negative
sector outlook for Spanish RMBS, the rating agency has updated the
portfolio expected loss assumption to 1.85% of original pool
balance, up from 1.0%

MILAN Aaa CE:

Moody's has assessed the loan-by-loan information to determine the
MILAN Aaa CE. Moody's has increased its MILAN Aaa CE assumptions
to 9.0%, up from 5.53% at closing. The increase in the MILAN Aaa
CE reflects the exposure to non Spanish nationals and the
concentration in coastal areas. 6.86% of the portfolio corresponds
to second homes. Moody's believes that loans backed by vacation
homes or not owner occupied are riskier than loans taken for the
acquisition of primary residence. In addition, 23% of the
portfolio corresponds to self employed. As of the last payment
date the credit enhancement under the Class A notes (including
subordination and reserve fund) was equal to 8.58%.

Operational Risk:

The transaction is serviced by 21 cooperative saving banks, of
which two are rated by Moody's (Caja Rural de Granada Baa1/P-2 and
Caja Rural de Navarra A3/P-2 representing approximately 30% of the
portfolio balance). Moody's notes that operational risk in this
transaction is mitigated as Banco Cooperativo Espanol (A1/P-1) is
appointed as Back Up Servicer. The reserve fund is not fully
funded and represent at 2.42% of the outstanding amount of the
notes. In addition Moody's notes that this is a multi-servicer
transaction, which partly mitigates servicer disruption risk. If a
servicer were to default, the fondo could use the principal
received from any of the other servicers to make timely payment of
interest under the notes (single waterfall).

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

Transaction Features

RURAL Hipotecario X closed in June 2008. The transaction consists
of the securitization of a pool of first mortgage originated by 21
Spanish Rural saving banks for an overall balance at closing of
EUR1,880 million. The securitized mortgage portfolio benefits from
a relatively low weighted average LTV, currently about 59%. The
pool is exposed to the Mediterranean coast. 6.86% of the portfolio
corresponds to second homes.

Reserve fund: The rapidly increasing levels of defaulted loans
ultimately resulted in draws to the reserve fund. The reserve fund
is currently at 86.5% of its target level. The reserve fund is
currently equal to 2.42 % of the note balance.

Swap: According to the swap agreement entered into between the
Fondo and Banco Cooperativo, on each payment date:

* The Fondo will pay the amount of interest accrued (excluding
  margins over the reference index) on the underlying mortgage
  loans up to 18 months past due; and

* Banco Cooperativo Espanol will pay the weighted average index
  reference rate on the notes over a notional calculated as the
  daily average outstanding amount of loans up to 18 months in
  arrears.

Commingling: All of the payments under the loans are collected by
the servicers under a direct debit scheme and transferred to the
treasury accounts held at Banco Cooperativo Espanol (A1/P-1) on a
daily basis. The transaction has a commingling reserve in place
since the majority of the originators in the deal are not rated by
Moodys. This reserve consists of a line of credit for an amount
equal to the minimum of: (1) 10,528,000, or (2) 0.56% of the loans
initial balance. Should Banco Cooperativo rating be downgraded
below P1, it will deposit in the treasury account an amount equal
to the commingling reserve.

Rating Methodologies

The principal methodology used in this transaction is Moody's
Approach to Rating RMBS in Europe, Middle East, and Africa
published in October 2009. Other methodologies used in rating this
action were Moody's Updated Methodology for Rating Spanish RMBS
published in July 2008, Cash Flow Analysis in EMEA RMBS: Testing
Features with the MARCO Model (Moody's Analyser of Residential
Cash Flows) published in January 2006 and Revising Default/Loss
Assumptions Over the Life of an ABS/RMBS Transaction published in
December 2008.

Moody's also took into account its Rating Implementation Guidance
"Global Structured Finance Operational Risk Guidelines: Moody's
Approach to Analyzing Performance Disruption Risk" published in
April 2011.

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

List Of Ratings Actions

Issuer: RURAL HIPOTECARIO X FONDO DE TITULIZACION DE ACTIVOS

   -- EUR1788.8M A Certificate, Downgraded to Aa1 (sf); previously
      on Jul 2, 2008 Definitive Rating Assigned Aaa (sf)

   -- EUR37.6M B Certificate, Downgraded to A2 (sf); previously on
      Jul 2, 2008 Definitive Rating Assigned Aa3 (sf)

   -- EUR53.6M C Certificate, Downgraded to Ba3 (sf); previously
      on Feb 8, 2011 Baa3 (sf) Placed Under Review for Possible
      Downgrade


===========
T U R K E Y
===========


DENIZBANK AS: Moody's Assigns (P)Ba1 Rating to Sr. Unsecured Debt
-----------------------------------------------------------------
Moody's Investors Service has assigned a first-time provisional
(P) Ba1 foreign-currency senior unsecured debt rating to Denizbank
A.S. The outlook on the rating is positive.

Ratings Rationale

Moody's foreign currency debt ratings are subject to the foreign
currency bond ceiling. As a result, even though Denizbank's global
local currency deposit rating of Baa2 is higher than the foreign
currency bond ceiling for Turkey, Denizbank's foreign currency
senior unsecured debt rating is constrained by and thus equal to
this ceiling.

The debt issuance is being offered under Rule 144A, Regulation S.
The terms and conditions of the notes include (among others) a
negative pledge and a cross-default clause. The notes will be
unconditional, unsubordinated and unsecured obligations and will
rank pari passu with all Denizbank's other senior unsecured
obligations. The rating of the notes is in line with Denizbank's
senior unsecured foreign-currency debt rating. Any subsequent
foreign-currency senior unsecured bonds issued by Denizbank would
also be rated Ba1.

The rating of the notes is provisional and represents Moody's
preliminary opinion only. Upon a conclusive review of the
documentation, Moody's will endeavor to assign a definitive rating
to the notes. A definitive rating may differ from a provisional
rating. A rating is not a recommendation to purchase, sell or
invest in any securities.

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 Denizbank was implemented on
October 7, 2010, when Moody's changed the outlook on the foreign-
currency deposit rating to positive from stable.

Denizbank is headquartered in Istanbul, Turkey, and at the end of
December 2010 had total assets of US$22.0 billion.


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


* UKRAINE: Fitch Assigns 'B' Rating to US$1.25BB Eurobond Due 2016
------------------------------------------------------------------
Fitch Ratings has assigned Ukraine's US$1.25 billion eurobond, due
June 17, 2016, a 'B' rating. The eurobond has a coupon rate of
6.25%. The rating is in line with Ukraine's Long-term foreign
currency Issuer Default Rating (IDR), which has a Stable Outlook.

Fitch affirmed Ukraine's ratings on September 15, 2010, following
an upgrade of its Long-term ratings to 'B' from 'B-' on July 6,
2010. The rating actions reflected Ukraine's emergence from a
severe crisis, resumption of economic growth, lower financial
volatility, greater political stability following the 2010
presidential elections and a US$15.6 billion agreement with the
IMF.

Economic growth has been sustained, international reserves are
growing and public finances are outperforming the budget. However,
the government has delayed policy actions it committed to under
the Stand-By Arrangement with the IMF -- notably implementing
pensions reform and raising natural gas prices. It is uncertain
when the agreement with the IMF will be brought back on track.
Failure to pass these key public finance reforms and maintain
access to IMF lending would weaken confidence and deprive Ukraine
of financing that would help it meet increased external debt
repayments in 2012-13.

Fitch believes significant risk remains associated with external
and fiscal financing requirements, asset quality in the banking
system, the implementation of stable and consistent macroeconomic
policy-making and the country's vulnerability to shocks.


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


AQUILA ECLIPSE: Fitch Lifts Rating on Class E Notes From 'BBsf'
---------------------------------------------------------------
Fitch Ratings has upgraded Aquila (Eclipse 2005-1) plc's class C,
D and E notes, whilst simultaneously affirming all other note
classes:

   -- GBP39.6m class A (XS0213759425): affirmed at 'AAAsf';
      Outlook Stable

   -- GBP10.1m class B (XS0213759854): affirmed at 'AAAsf';
      Outlook Stable

   -- GBP10.3m class C (XS0213759938): upgraded to 'AAAsf' from
      'AAsf'; Outlook Stable

   -- GBP10m class D (XS0213760274): upgraded to 'Asf' from
      'BBBsf'; Outlook Stable

   -- GBP1.7m class E (XS0213760431): upgraded to 'BBBsf' from
      'BBsf'; Outlook Stable

The upgrade of the class C, D and E notes is driven by repayment
of the Cardiff Retail Park loan, identified at the time of the
last rating action in May 2010 as being the weakest loan left in
the pool. This has led to a significant reduction in the deal's
leverage, since principal proceeds were allocated in sequentially.
This resulted in Fitch advance rates of 42.6% (down 8.9% since the
last rating action), 49.7% (-8.1%) and 50.9% (-7.9%), for the
class C, D and E notes, respectively. Meanwhile, the overall asset
quality has improved.

The transaction has significant exposure to the Great Victoria
loan, which accounts for 79.1% of the outstanding loan pool. The
loan is secured by three multi-tenanted retail and office
properties located in London's West End. Its low Fitch loan-to-
value ratio of 48.5% combined with stable interest coverage and a
high exit debt yield on passing rent of 12.2% indicate low risk.
Fitch expects the borrower to redeem this loan at its maturity in
October 2012.

The Northumberland loan, the other loan remaining, is secured by
eight small and medium sized secondary retail/office properties
located across the UK, mainly in the centers of cities or large
towns. While the Fitch LTV of 63% is higher than that of the Great
Victoria loan, it is still modest by legacy UK CMBS standards.
With 60% of current passing rent scheduled to be intact by loan
maturity in October 2014, Fitch has little concern regarding
balloon risk, which is reflected in the investment grade ratings
assigned.

Aquila (Eclipse 2005-1) plc closed in March 2005 and is a
securitization of initially 10 UK commercial mortgage loans
originated by Barclays Bank plc (Barclays; 'AA-'/ Stable/'F1+').
Since the agency's last review of the transaction in May 2010 the
Cardiff Retail Park loan has repaid at maturity leaving the pool
comprising two loans with a current balance of GBP71.7 million.

Fitch will continue to monitor the performance of the transaction.


CENTRAL INTELLIGENCE: Place in Liquidation Over SAS Selling Racket
------------------------------------------------------------------
NDS UK reports that the court heard that Homeguard Fire & Security
Limited, Central Intelligence Security Solutions Limited and
Skynet Security Systems Limited were linked to SAS Fire & Security
Systems Limited, a company wound up in March 2011 following a
previous investigation by Company Investigations.

The court also heard that the three firms were formed in
November 2010 to continue the alarm sales business previously
carried on by SAS Fire.  The business of SAS Fire was, in effect,
transferred to Homeguard, CIS Solutions and Skynet in January 2011
and these companies then promoted the sale of burglar and fire
alarms on a regional basis with Homeguard operating in Northern
England, CIS Solutions in Southern England and Skynet in Scotland.

NDS UK says the investigation showed that all three companies
operated in an identical manner to SAS Fire, were under the
control of former managers employed by SAS Fire and used the
former assets, trading premises and employees of SAS Fire. The
companies promoted alarm systems on the basis that they were
subject to continuous, remote monitoring and that a "rapid
response" service would be provided in the event of an alarm
activation.

Investigation also found the companies marketed their alarms
exclusively via a series of unsolicited telephone calls which
claimed the alarm systems were available at a cost of only
GB1.00.  During subsequent, lengthy home visits by sales agents,
which typically took place within 24 hours of the initial phone
calls, customers were encouraged to agree the purchase of a
monitoring and response package costing up to GBP6,000 for a
contract of up to 15 years in order to obtain the alarm system at
the promoted price of GBP1.00.

Customers were pressed to make an immediate purchase decision at
the time of the sales agent's visit and the alarm system was
typically installed in their home with 48 hours, thereby ceasing
the customers statutory right to cancel the contract within seven
days.

Evidence suggests that during a seven-week period across January
and February 2011 the companies generated sales more than
GBP860,000.

The Courts accepted that the wind-up activities were a
continuation of the unlawful sales practices used by SAS Fire and,
that the trading activities of the companies were contrary to the
public interest.

As reported in the Troubled Company Reporter-Europe on March 30,
2011, Sunday Mail said Business Secretary Vince Cable has finally
moved to sink Sas Fire & Security, two years after Sunday Mail
exposed their hard-selling racket.  Sas Fire & Security have been
forced into liquidation after their ruthless tactics were revealed
by the Sunday Mail in a series of special reports.  Sunday Mail
also revealed how bullying sales staff used crime fears to dupe
vulnerable customers into buying cheap alarm systems for thousands
of pounds.

                     About Central Intelligence

Central Intelligence Security Solutions Ltd was incorporated in
November 2010. Its registered office is at 18 Cunard Court,
Brightwen Grove, Stanmore, Middlesex HA7 4WY and the company
trades from premises in Edgware, Kingston-upon-Thames, Maidstone
and Southampton.

The petitions to wind up Homeguard Fire & Security Ltd and Central
Intelligence Security Solutions Ltd in the public interest were
presented to the High Court under s124A of the Insolvency Act 1986
on April 15, 2011 and applications were also made on that date for
the appointment of a Provisional Liquidator in respect of each
company.

The Official Receiver was appointed Provisional Liquidator of
Homeguard Fire & Security Ltd and Central Intelligence Security
Solutions Ltd on April 18, 2011 and the companies were wound up on
June 6, 2011.


HOMEGUARD FIRE: In Liquidation; Linked to SAS Fire Selling Racket
-----------------------------------------------------------------
NDS UK reports that a UK court heard that Homeguard Fire &
Security Limited, Central Intelligence Security Solutions Limited
and Skynet Security Systems Limited were linked to SAS Fire &
Security Systems Limited, a company wound up in March 2011
following a previous investigation by Company Investigations.

The court also heard that the three firms were formed in
November 2010 to continue the alarm sales business previously
carried on by SAS Fire.  The business of SAS Fire was, in effect,
transferred to Homeguard, CIS Solutions, and Skynet in January
2011, and these companies then promoted the sale of burglar and
fire alarms on a regional basis with Homeguard operating in
Northern England, CIS Solutions in Southern England, and Skynet in
Scotland.

NDS UK says the investigation showed that all three companies
operated in an identical manner to SAS Fire, were under the
control of former managers employed by SAS Fire and used the
former assets, trading premises and employees of SAS Fire.  The
companies promoted alarm systems on the basis that they were
subject to continuous, remote monitoring and that a "rapid
response" service would be provided in the event of an alarm
activation.

Investigation also found the companies marketed their alarms
exclusively via a series of unsolicited telephone calls which
claimed the alarm systems were available at a cost of only
GB1.00.  During subsequent, lengthy home visits by sales agents,
which typically took place within 24 hours of the initial phone
calls, customers were encouraged to agree the purchase of a
monitoring and response package costing up to GBP6,000 for a
contract of up to 15 years in order to obtain the alarm system at
the promoted price of GBP1.00.

Customers were pressed to make an immediate purchase decision at
the time of the sales agent's visit and the alarm system was
typically installed in their home with 48 hours, thereby ceasing
the customers statutory right to cancel the contract within seven
days.

Evidence suggests that during a seven-week period across January
and February 2011 the companies generated sales in excess of
GBP860,000.

In winding up the companies the Courts accepted that their
activities were a continuation of the unlawful sales practices
used by SAS Fire and, that the trading activities of the companies
were contrary to the public interest.

As reported in the Troubled Company Reporter-Europe on March 30,
2011, Sunday Mail said Business Secretary Vince Cable has finally
moved to sink SAS Fire & Security, two years after Sunday Mail
exposed their hard-selling racket.  SAS Fire & Security have been
forced into liquidation after their ruthless tactics were revealed
by the Sunday Mail in a series of special reports.  Sunday Mail
also revealed how bullying sales staff used crime fears to dupe
vulnerable customers into buying cheap alarm systems for thousands
of pounds.

                         About Homeguard Fire

Homeguard Fire & Security Ltd was incorporated in November 2010.
Its registered office and principal trading address is at Estate
House, 18 Fox Street, Preston PR1 2AB.  The company also occupied
trading premises at various locations in Warrington and Leeds.

The petitions to wind up Homeguard Fire & Security Ltd and Central
Intelligence Security Solutions Ltd in the public interest were
presented to the High Court under s124A of the Insolvency Act 1986
on April 15, 2011, and applications were also made on that date
for the appointment of a Provisional Liquidator in respect of each
company.

The Official Receiver was appointed Provisional Liquidator of
Homeguard Fire & Security Ltd and Central Intelligence Security
Solutions Ltd on April 18, 2011, and the companies were wound up
on June 6, 2011.


MEZZVEST INVESTMENTS: S&P Affirms 'CCC-' Ratings on 2 Note Classes
------------------------------------------------------------------
Standard & Poor's Ratings Services raised and removed from
CreditWatch positive its credit ratings on Mezzvest Investments I
Ltd.'s class A1 facility and class A2 variable funding notes
(VFN). "At the same time, we raised our rating on the class B
facility, and affirmed our ratings on the class C facility and the
class D VFN," S&P said.

"The rating actions follow a review of Mezzvest Investment I's
performance, in which we considered recent developments we have
observed in the transaction," S&P stated.

Mezzvest Investment I's capital structure includes variable
funding notes (drawable in British pounds sterling, euros, and
U.S. dollars) at the senior level (class A-2), and at the junior
level (class D). Both classes of VFN are drawn in euros only. The
portfolio includes second-lien loans, mezzanine loans, and
payment-in-kind (PIK)-only loans.

"Since our last review in June 2010, driven by the failure of the
class B, C, and D overcollateralization ratio tests, the
collateralized loan obligation (CLO) has continued to repay its
senior classes (A-1 and A-2) using available principal and
interest proceeds. Classes A-1 and A-2, which rank equal in
seniority combined, have repaid by about EUR61.1 million since our
last review. From the information we have received, we note that
about 81% of the repayment was effected using principal proceeds,
while the remaining 19% constituted available interest proceeds
(after accounting for senior expenses and interest due on classes
A1, A2, and B). At the same time, in accordance with the
transaction's documents following a breach of the class B
overcollateralization test, the class C facility and the class D
VFN have continued to defer their interest payments," S&P
explained.

"From the latest available monthly report of April 2011, we see
that the transaction currently holds about EUR11.15 million in
principal cash following full repayment of a second-lien loan. We
would expect the CLO to use this cash to further repay the class
A-1 and A-2 facilities on the July 2011 payment date," S&P said.

According to S&P, "In our view, the repayment of classes A-1 and
A-2, using in particular a significant portion of interest
proceeds, contributed to an increase in the ratio of performing
assets versus rated facilities outstanding. This improvement shows
in an increase in all reported overcollateralization test ratios.
Following the April 2011 payment date, the failure of the class B
overcollateralization ratio has been cured, while the class C and
D overcollateralization ratios remain below their required levels.
According to the transaction documents, provided the class B
overcollateralization ratio remains at or above its required
level, interest payments on the class C notes will resume on the
July 2011 payment date."

"As a result, we consider that the level of credit enhancement
available to the class A-1, A-2, and B notes is now consistent
with higher ratings than previously assigned. We have therefore
raised our ratings on these classes," S&P noted.

"On the asset side, apart from loan repayments, we observed a
number of loan restructurings. On one hand, loan restructuring
contributed to a reduction in the balance of reported defaulted
assets by about EUR13 million (including accreted PIK portion); on
the other hand, loan restructurings, particularly in relation to
second-lien loans, have contributed to a rise in PIK-only loans.
PIK-only loans do not provide for any cash flows from the borrower
to the CLO until the loan maturity or refinancing date. From the
information we have received, we see that the balance of PIK-only
loans, when measured by the original principal amount, increased
by about EUR41 million compared with our last review," S&P
related.

"In our view, the increase in the PIK-only loans, together with
loan repayments, have contributed to an overall decline in all
interest coverage ratios. Nonetheless, all reported interest
coverage test ratios are still well above their required levels.
Based on the figures reported to us in March 2011 (the last
interest coverage reporting month), we see that the transaction
generates more than three times as much interest proceeds
(including fees and commissions) than it has to pay out on senior
fees and expenses, and on interest due on the class A-1, A-2, and
B notes," S&P explained.

"Overall, in our view the portfolio remains highly concentrated in
terms of obligors, industries, and countries -- making the rated
facilities vulnerable to idiosyncratic risk. According to our
analysis, there are 23 loan positions to 17 obligors. The largest
four obligors combined account for about 46% of the performing
asset balance, including the accreted PIK portion. This compares
with about 43% of credit enhancement available to classes A-1 and
A-2. About 53% of loans are made to corporates in the health care
sector. The German and Swedish obligor exposures together account
for about 84% of the portfolio. As such, our largest obligor
default test -- a supplemental stress test we introduced as part
of our criteria update -- remains one of the constraining
factors particularly in determining the rating levels for the
class C and D facilities (see 'Update To Global Methodologies And
Assumptions For Corporate Cash Flow And Synthetic CDOs,' published
Sept. 17, 2009)," S&P stated.

"Based on these factors and taking into consideration our cash
flows analysis, we have affirmed our ratings on the class C and D
notes at their current ratings," according to S&P.

"We note that the transaction triggered a termination event on the
calculation date of September 2009, following a drop of the class
D overcollateralization ratio to below 105%. As the manager has
informed us, no event-of-default notice has been delivered in
connection with this event to date. According to our understanding
of the transaction documents, this implies that the portfolio is
effectively static, changing only as a result of loan repayments.
The transaction will continue to use available proceeds to repay
the facilities in order of seniority, starting with classes A-1
and A-2," S&P noted.

Ratings List

Class                Rating
            To                   From

Mezzvest Investments I Ltd.
EUR180 Million Secured Floating-Rate Variable Funding Facilities
And EUR395 Million Secured Floating-Rate Facilities

Ratings Raised and Removed From CreditWatch Positive

A-1         BB+ (sf)             BB (sf)/Watch Pos
A-2         BB+ (sf)             BB (sf)/Watch Pos

Rating Raised

B           B- (sf)              CCC+ (sf)

Ratings Affirmed

C           CCC- (sf)
D           CCC- (sf)

The ratings on classes A-1, A-2, and B address the timely payment
of interest and ultimate repayment of principal. The ratings on
classes C and D address the ultimate payment of interest and
principal.


PICSEL TECH: California Court Could Bring Closure to Legal Battle
-----------------------------------------------------------------
Bill Magee at Scotland on Sunday reports that a year-long court
action in the United States involving the founder and executives
of Picsel Technologies may finally come to a head this month.

Picsel Technologies, which went into administration in 2009 before
it was resurrected through a management buyout, became embroiled
in a legal dispute in the U.S. last June, according to Scotland on
Sunday.

The report notes that a suit was launched by several of the firm's
former U.S. employees, including Bill Vanke, Picsel's former chief
operating officer in the Americas.  Scotland on Sunday relates
that Mr. Vanke's allegations centre on problems associated with
the firm getting into financial trouble and subsequently emerging
as a management buyout.  Some former employees claim they were
unpaid by Picsel Technologies for up to a year, the report notes.

Scotland on Sunday relates that they also allege that the
company's owners, Imran Khand and Masood Jabbar, did not include
any of the company's non-UK entities as bankrupt, and that
creditors, employees and other stakeholders are owed money from
those parts of the business.

Chicago-based lawyer Craig Marr, who is acting for Mr. Vanke, told
Scotland on Sunday that a North California District Court partial
summary judgment hearing is scheduled for June 23.  "The
litigation case concerns claims filed against Imran Khand, Masood
Jabbar, and two overseas defendant companies Picsel Holdings
Limited and Picsel Group Holdings Limited," Scotland on Sunday
quoted Mr. Marr as saying.

The report says that failure to settle matters this month would
lead to a court-ordered mediation deadline of July 23.  If all
else fails, the case could go to trial in San Francisco in
September, Scotland on Sunday discloses.

Picsel Technologies is a Scottish mobile technology firm.


SHIELD FINANCE: Moody's Gives Proposed Secured Debt (P)B2 Rating
----------------------------------------------------------------
Moody's Investors Service has affirmed Corporate Family Rating of
B2 of Shield Holdco Ltd, the parent company of Sophos Ltd, and
probability of default of B3. Moody's has also assigned a
provisional (P) B2 rating to the senior secured bank debt proposed
to be issued by Shield Finance Co Sarl, including a US$20 million
revolving credit facility, a EUR60 million Term Loan A and two
tranches of Term Loan B -- EUR50 million and US$280 million. The
outlook on all ratings is stable.

The company intends to use the proceeds from the proposed debt
issuance to refinance the existing US$320 million Senior Secured
Credit Facilities maturing in 2016/2017 as well as to pay US$160
million purchase price for the acquisition of Astaro Software AG.
The ratings on Sophos' existing bank debt facilities will be
withdrawn upon the successful completion of the refinancing.

Ratings Rationale

"During fiscal year 2010 Sophos achieved positive cash flow
generation and de-leveraging, which was in line with Moody's
expectations. Although growth in Sophos' top line has slowed down
year-on-year, EBITDA improved thanks to operational cost savings,"
says Tanya Savkin, Moody's lead analyst for Sophos. "The
acquisition of Astaro would bring leverage back up to the out-of-
box LBO level in 2010, however the rating agency recognizes strong
rationale for the acquisition and potential benefit from the
combined endpoint-gateway-network offering. Hence the CFR has been
affirmed".

Moody's notes that audited accounts of Sophos for the full year
ended March 2011 are expected to be published by the end of June.
The unaudited financial statements of Sophos Ltd for the year
ended March 2011 showed approximately US$307 million in revenue
and US$344 million in billings, a year-on-year increase of 8.8%
and 2.7% respectively. Astaro reported EUR30 million in revenue
and EUR40 million in billings, an increase of 12% and 29%
respectively.

The combination of Sophos and Astaro businesses is expected to
strengthen the company's competitive position in IT security
market, improve Sophos' product line diversification and generate
cross-selling opportunities by leveraging Sophos' distribution
network. The rating remains constrained by the intense competition
and consolidation trend in the sector which highlights the
likelihood of debt-financed M&A activity in future, potential
integration issues as well as more aggressive financial policy of
the company.

Moody's acknowledges the group's positive cash flow generation
during 2010 thanks to operational cost savings, positive working
capital characteristic for the company's business model and
limited capex spending. The liquidity is considered adequate,
comprising US$87.7 million cash and US$20 million undrawn revolver
as of 31 March 2011. Post-acquisition of Astaro cash on balance
sheet is expected to be reduced to US$44.6 million. Moody's
understands that financial covenants will include net debt to Cash
EBITDA (set at an opening level of 5.0x), interest coverage ratio
(set at an opening level of 2.25x) and capex covenant. Moody's
understands that, although covenants are intended to step down
over time, they will provide the company with material financial
flexibility to conduct M&A activity. The limit of the incremental
facility subject to a maximum 3.75x senior secured leverage ratio
is increased from US$75 million under current credit agreement to
US$150 million. The PDR of B3, one notch below CFR of B2, reflects
the bank-debt-only nature of the structure leading to the
assumption of 65% recovery rate.

The stable outlook reflects Moody's expectations that Sophos will
be able to improve its financial metrics as positive momentum
continues. The stable outlook also assumes that the company will
maintain an adequate liquidity position and will use excess cash
flow proceeds to repay the debt.

Positive pressure on the ratings or outlook could arise if a Free
Cash Flow to Debt ratio improves towards 15% and a debt to EBITDA
ratio falls below 4.0x on a sustained basis. Downward pressure
might occur if a Free Cash Flow to Debt ratio falls below 10% or
in case of aggressive debt-funded M&A activity.

The principal methodology used in rating Shield Finance Co
S.a.r.l. was the Global Software Industry Methodology, published
May 2009. Other methodologies used include Loss Given Default for
Speculative Grade Issuers in the US, Canada, and EMEA, published
June 2009.

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, including any possible changes during
the syndication process, Moody's will endeavor to assign a
definitive rating to the notes. A definitive rating may differ
from a provisional rating.

Headquartered in Abingdon (UK), Sophos is a leading IT provider,
specialized in security software and data protection for
businesses. The company operates in more than 150 countries but
generates more than 80% of its sales in two regions: Europe and
North America.


SKYNET SECURITY: Placed in Liquidation Over SAS Selling Racket
--------------------------------------------------------------
NDS UK reports that a UK court heard that Homeguard Fire &
Security Limited, Central Intelligence Security Solutions Limited
and Skynet Security Systems Limited were linked to SAS Fire &
Security Systems Limited, a company wound up in March 2011
following a previous investigation by Company Investigations.

The court also heard that the three firms were formed in
November 2010 to continue the alarm sales business previously
carried on by SAS Fire.  The business of SAS Fire was, in effect,
transferred to Homeguard, CIS Solutions and Skynet in January 2011
and these companies then promoted the sale of burglar and fire
alarms on a regional basis with Homeguard operating in Northern
England, CIS Solutions in Southern England, and Skynet in
Scotland.

NDS UK says the investigation showed that all three companies
operated in an identical manner to SAS Fire, were under the
control of former managers employed by SAS Fire and used the
former assets, trading premises and employees of SAS Fire. The
companies promoted alarm systems on the basis that they were
subject to continuous, remote monitoring and that a "rapid
response" service would be provided in the event of an alarm
activation.

Investigation also found the companies marketed their alarms
exclusively via a series of unsolicited telephone calls which
claimed the alarm systems were available at a cost of only
GB1.00. During subsequent, lengthy home visits by sales agents,
which typically took place within 24 hours of the initial phone
calls, customers were encouraged to agree the purchase of a
monitoring and response package costing up to GBP6,000 for a
contract of up to 15 years in order to obtain the alarm system at
the promoted price of GBP1.00.

Customers were pressed to make an immediate purchase decision at
the time of the sales agent's s visit and the alarm system was
typically installed in their home with 48 hours, thereby ceasing
the customers statutory right to cancel the contract within seven
days.

Evidence suggests that during a seven-week period across January
and February 2011 the companies generated sales in excess of
GBP860,000.

In winding up the companies the Courts accepted that their
activities were a continuation of the unlawful sales practices
used by SAS Fire and, that the trading activities of the companies
were contrary to the public interest.

                        About Skynet Security

Skynet Security Systems Ltd was incorporated in November 2010. Its
registered office is at 28 Araburn Drive, East Kilbride, Glasgow
G75 8FE and the company trades from premises in Glasgow and
Edinburgh.

The petition to wind up Skynet Security Systems Ltd in the public
interest was presented to the Court of Session under s124A of the
Insolvency Act 1986 on 20 April 2011 and an application was also
made on that date for the appointment of a Provisional Liquidator
in respect of the company.

William Thomson Mercer Cleghorn and Emma Sarah Louise Porter,
Insolvency Practitioners of Aver Chartered Accountants, Edinburgh
were appointed joint Provisional Liquidators of Skynet Security
Systems Ltd on April 21, 2011, and the company was wound up on
May 18, 2011.


SOUTHERN CROSS: Taps Clifford Chance For Restructuring Advice
-------------------------------------------------------------
Sofia Lind at Legalweek reports that a trio of magic circle firms
are advising on the high-profile restructuring of Southern Cross
Healthcare as the company attempts to reach a deal with landlords
over unpaid rent.

According to Legalweek, Clifford Chance is advising Southern Cross
on its restructuring, with a team led by restructuring partners
Nicholas Frome and Iain White and corporate partner Tim Lewis.

Linklaters is advising a committee of 80 landlords on the rent
negotiations, while Freshfields Bruckhaus Deringer is acting for
outsourcing firm Capita, which is coordinating the creditors for
key landlord NHP, Legalweek discloses.

Meanwhile, Hogan Lovells is acting for main creditors Barclays and
Lloyds, led by the firm's global head of restructuring and
business insolvency Stephen Foster, Legalweek states.  The banks
are reported to be owed around GBP40 million in total by Southern
Cross, Legalweek notes.

Southern Cross Healthcare provides residential and nursing care to
more than 31,000 residents cared for by 45,000 staff in 750
locations.  Its also operates homes that specialize in treating
people with dementia, mental health problems and learning
disabilities.


SOUTHERN CROSS: Landlords May Have to Compromise on Rents
---------------------------------------------------------
Dominic Jeff at The Scotsman reports that Southern Cross
Healthcare's landlords may have to compromise further on rents as
new operators will only "cherry pick" the best homes.

According to The Scotsman, Tony Banks, owner of Balhousie Care
Group, has been in talks with landlords about taking on some of
Southern Cross' leases north of the Border after Britain's largest
care home operator said it could no longer afford its GBP230
million-a-year rent bill.

Banks estimated that at least half of the company's 751 homes
would have to be transferred to new operators after landlords
extended a lifeline to Southern Cross and agreed to take a 30% cut
on rent payments for the next four months, The Scotsman relates.
But he said many of the homes were in need of capital expenditure
and any leases with other companies would have to reflect that,
The Scotsman notes.

Southern Cross Healthcare provides residential and nursing care to
more than 31,000 residents cared for by 45,000 staff in 750
locations.  Its also operates homes that specialize in treating
people with dementia, mental health problems and learning
disabilities.


SOUTHERN CROSS: Labor Leader Calls for Council to Step In
---------------------------------------------------------
Brian Currie at The Herald reports that labor leader Iain Gray
claimed that councils should be given additional funds to take
over the running of care homes owned by the financially troubled
operator Southern Cross.

Mr. Gray urged First Minister Alex Salmond to underwrite council
costs if the company goes into administration, according to The
Herald.  "If these Southern Cross care homes face closure, surely
the simplest and best plan would be for local authorities to take
over the running of them to ensure continuity of care," The Herald
quoted Mr. gray as saying.

The Herald notes that Business Secretary Vince Cable insisted the
company would not be bailed out as he promised the estimated
31,000 residents affected by the firm shutting some of its homes
would be re-housed.

Mr. Cable said Southern Cross had 'a failed long-standing business
model' before committing the Government to review the business
models of all companies providing public services to ensure they
were "stable," The Herald relates.  "There is no way we can bail
out the company," he added.

Meanwhile, The Herald discloses, labour health spokeswoman Jackie
Baillie accused Southern Cross of putting the interests of its
shareholders before the needs of its residents.

Southern Cross Healthcare provides residential and nursing care to
more than 31,000 residents cared for by 45,000 staff in 750
locations.  Its also operates homes that specialize in treating
people with dementia, mental health problems and learning
disabilities.


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


* Global Corporate Insolvencies to Remain Above Pre-Crisis Levels
-----------------------------------------------------------------
Euler Hermes Group on June 14 disclosed that after record rises in
the preceding two years, Euler Hermes' Global Insolvencies Index
dropped back by 5% in 2010.  The downward trend in corporate
insolvencies continues in 2011 but at a moderate pace and with
marked differences from one country to another.  Corporate
insolvencies are expected to remain above their pre-crisis levels
until at least 2012.

           Asia and America leading the improvement
           in corporate insolvency levels in 2010

Euler Hermes' Global Insolvencies Index, which tracks worldwide
trends in corporate failures, dropped by a significant 5% in 2010
after having soared by 64% between 2007 and 2009.  "The present
trend reflects the improved financial situations of many
businesses following substantial adjustments made by the
businesses themselves to cope with the crisis," says Wilfried
Verstraete, Chairman of Euler Hermes' Group Management Board.  "It
also reflects some public support measures that are still in
place, such as car scrapping schemes and tax relief, but above all
it reflects the general upturn in the world economy."  After
contracting by 2% in 2009, world GDP rebounded by more than 4% in
2010, driven by two main factors: restocking and a recovery in
international trade, which grew by 15% in volume terms in 2010
after having fallen by 13% in 2009.

Against this background, corporate insolvencies declined in more
than half of the countries in Euler Hermes' sample.  The two
regions that have been driving the global economic recovery --
Asia-Pacific and America -- recorded the sharpest improvement,
with corporate insolvencies down by respectively 12% and 8%, after
two years of strong increases.

For Europe, 2010 was on the whole less positive.  Business
failures continued to rise in Southern Europe (Greece, Italy and
Portugal).  Spain was the exception with a 5% fall in corporate
insolvencies, but this followed a five-fold increase over the
previous three years.  There were improvements in Eastern Europe
(Hungary, Poland, Czech Republic, Russia and Slovakia) and in some
other countries such as Belgium, Denmark, Ireland, Luxembourg and
Switzerland.  The improvement was slight, a 2% decrease, in France
and Germany.  Although the improvement was more marked in Finland,
Norway, the Netherlands and the United Kingdom, it did not offset
the very strong rise in insolvencies over the preceding years.

             Corporate insolvencies expected to remain
                  at high levels in 2011-2012

According to Karine Berger, Head of Market Management and
Strategic Marketing, and Chief Economist at Euler Hermes, "the
ongoing recovery in the world economy is likely to keep corporate
insolvencies on a downward trend in all regions out to 2012."
However, this improvement could be curtailed by several factors,
particularly in industrialized countries where many companies have
recovered only part of their former leeway:

   -- Slower pace of world economic growth -- expected to drop to
      around 3% in 2011 and 2012 -- and, more particularly, the
      sluggish momentum of the European countries as a whole;

   -- Rising production costs (raw materials, payroll costs,
      etc.); and

   -- Monetary tightening, with a significant loss of
      competitiveness linked to exchange rates for some countries.

Given the above, the fall in the global insolvencies index is
likely to be moderate in 2011 (-7%) and 2012 (-5%), with
exceptions linked to specific economic conditions (Greece and
Portugal) or exceptional events (Japan).  "Overall, the fall in
the global index from 2010-2012 will not be large enough to offset
the record increases of 2008 and 2009.  In other words, corporate
insolvency levels in 2012 will still be higher than in 2007 in
many countries," says Wilfried Verstraete.


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

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.


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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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