TCREUR_Public/110701.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

             Friday, July 1, 2011, Vol. 12, No. 129



A-TEC INDUSTRIES: Expects to Get Three to Four Bids


HOUSE OF EUROPE: Fitch Cuts Ratings on 4 Classes of Notes to 'D'


BRENNTAG AG: Moody's Upgrades Corp. Family Rating to 'Ba1'


EPIC LTD: S&P Lowers Ratings on Two Classes of Notes to 'BB+'
* GREECE: Lawmakers Vote to Reduce Spending; Staves Off Default


ANGLO IRISH: European Commission Clears Bailout Plan
GILSON MOTOR: Glenda Gilson Case Adjourned Until July 11
MCINERNEY PLC: Shareholder Proposes to Replace Board
OAK HILL: Moody's Upgrades Rating on Class E Notes to 'Ba2 (sf)'
PONTOON BRIDGE: Hotel in Receivership, Continues to Trade

QUINN GROUP: Quinns Dispute Irish Court's Right to Hear Anglo Suit
* IRELAND: 1,000 Firms Declared Insolvent in 1st Half of 2011


BANK CENTERCREDIT: Moody's Assigns '' National Scale Rating
KASPI BANK: Moody's Rates KZT100-Bil. Bond Program at '(P)B1'


METALLOINVEST HOLDING: Moody's Changes 'Ba3' Outlook to Positive
WOOD STREET: S&P Raises Ratings on Three Classes of Notes to CCC+


BANCO PORTUGUES: Banco BIC Angola Mulls Takeover Bid


CITY MALL: To Be Sold Through Direct Negotiation by Liquidator
PROBUSINESSBANK: Moody's Assigns (P)B2 Sr. Unsecured Debt Ratings
RCS & RDS: Moody's Withdraws 'Ba3' Corporate Family Rating


BANK OF MOSCOW: Moody's Cuts Bank Financial Strength Rating to D-
CREDIT BANK: Fitch Assigns 'B+' Rating on Exchange Bonds
UC RUSAL: Paid US$119MM to Creditors Under Restructuring Agreement
* KRASNOYARSK REGION: Fitch Affirms 'BB+' Currency Ratings


SAAB AUTOMOBILE: Gets EUR25 Million Bridge Loan From Gemini


* CITY OF KYIV: S&P Raises Long-Term Issuer Credit Rating to 'B-'

U N I T E D   K I N G D O M

BLUCHIE LTD: Retirement Villages Goes Into Administration
DEUTSCHE PFANDBRIEFBANK: S&P Affirms 'B' Ratings on Various Notes
DONEGAL HOTEL: Up for Sale for EUR1.5 Million
EGLISH INVESTMENTS: Goes Into Receivership, Seeks Buyer
GLENKERRIN: Crowne Plaza for Sale With GBP80-Mil. Guide Price

HEALTHCARE LOCUMS: Investors Launch Legal Action
HMV GROUP: Completes Sale of Waterstone's Book Chain to A&NN
JANE NORMAN: Closes Cheshire Branches Following Administration
KILBRIGHT DEVELOPMENT: Had Mortgages on Two Private Planes
KINETICS GROUP: Landlords Hit by Firm's Fall Into Administration

LORD NUFFIELD: Brookes University Urged to Reveal Plans for Club
NUFFIELD PRESS: Goes Into Administration, Axes 53 Jobs


* BOOK REVIEW: Big Business Too Big?



A-TEC INDUSTRIES: Expects to Get Three to Four Bids
According to Bloomberg News' Boris Groendahl, Austrian daily
newspaper Wiener Zeitung, citing A-Tec Industries AG's insolvency
lawyer Norbert Abel, reported that the company was expected to get
three to four bids by the June 30 deadline.

According to Bloomberg, A-Tec will have to raise EUR210 million in
a sale to pay creditors.

As reported by the Troubled Company Reporter-Europe on June 30,
2011, Bloomberg said that A-Tec's creditors will receive 47% of
their claims if the company finds an investor before the end of
June.  Bloomberg noted that for creditors to get the promised 47%
quota, the sale has to bring in EUR230 million (US$331 million).

A-TEC Industries AG engages in plant construction, drive
technology, machine tools, and minerals and metals businesses in
Europe and internationally.  The company is based in Vienna,


HOUSE OF EUROPE: Fitch Cuts Ratings on 4 Classes of Notes to 'D'
Fitch Ratings has downgraded four classes of notes issued by House
of Europe Funding II PLC (HoE2) and marked one principal protected
junior note as paid-in full:

   -- EUR647m Class A: downgraded to 'Dsf' from 'Csf'; withdrawn

   -- EUR60m Class B: downgraded to 'Dsf' from 'Csf'; withdrawn

   -- EUR57m Class C: downgraded to 'Dsf' from 'Csf'; withdrawn

   -- EUR8m Class D: downgraded to 'Dsf' from 'Csf'; withdrawn

   -- EUR5m Class E: paid-in full

In February 2011, an event of default was declared on HoE2.
Subsequently, in May 2011, the controlling class directed the
trustee to liquidate the portfolio. The sale of the portfolio took
place in June 2011 and the proceeds are insufficient to repay any
of the notes in full. As a result, the class A, class B, class C
and class D have been downgraded to 'Dsf'.

Class E was rated on a principal only basis and benefited from the
support of zero-coupon French government bonds. These protection
assets have also been sold and the proceeds will be distributed to
the class E noteholders. The economic position of the junior
noteholders is unchanged because the noteholders could purchase
the French government bonds on the open market using the
liquidation proceeds. The agency considers this outcome as if the
class E were paid-in full.


BRENNTAG AG: Moody's Upgrades Corp. Family Rating to 'Ba1'
Moody's Investors Service has upgraded the Corporate Family and
Probability of Default Ratings of Brenntag Holding GmbH to Ba1
from Ba2. The outlook on the ratings remains stable. Moody's will
subsequently reassign its CFR, PDR and outlook ratings at the
Brenntag AG, parent company level, and withdraw all ratings at
Brenntag Holding GmbH.

Ratings Rationale

"The upgrade of the rating was prompted by Brenntag's positive
operating performance in 2010 and the early part of 2011, and the
robust growth anticipated for the rest of the year," says
Gianmarco Migliavacca, a Moody's Vice President -- Senior Analyst
and lead analyst for Brenntag. Moody's considers the recently
announced refinancing to be a positive factor, providing
additional financial flexibility. It should also lead to extended
debt maturity and lower funding costs, in the rating agency's
view. The progressive reduction of private equity sponsors'
involvement in Brenntag's corporate governance following its
initial public offering (IPO) in 2010 represents an additional
step away from the group's historical leveraged buyout (LBO)

Moody's regards as prudent the financial policy pursued so far by
management, particularly with respect to the group's acquisition
strategy. Brenntag has consistently pursued growth both internally
and through strategic bolt-on acquisitions, which have been almost
entirely funded through internally generated excess cash. However,
Moody's notes that Brenntag's dividend policy as a listed company
is to pay out 30-45% of net income, which is equity friendly but
can be accommodated within the current rating category.

The upgrade also reflects Brenntag's solid liquidity position. At
fiscal year-end (FYE) 2010, Brenntag had cash on the balance sheet
of EUR362.9 million. In addition, it has access to a largely
undrawn EUR200 million revolving credit facility with satisfactory
covenant headroom. As a result of the positive free cash flow
generation expected during 2011, Moody's considers it likely that
Brenntag's liquidity profile will improve even further by FYE
2011. The rating agency expects that Brenntag's operating cash
flows will be more than sufficient to cover its main discretionary
and non-discretionary liquidity requirements during 2011 (working
capital; capital expenditure; dividends; small bolt-on
acquisitions), and anticipates lower overall financial charges as
a result of the refinancing.

The stable outlook on the rating reflects Moody's expectation that
Brenntag will: (i) continue to perform strongly for the rest of
2011 and further consolidate its credit metrics in line with the
current rating category; and (ii) be committed to a prudent
financial policy and acquisition strategy, targeting small bolt-on
acquisitions that are to be funded entirely with cash and are
based on a sound industrial rationale, in line with the group's
recent positive track record of acquisitions. In this respect,
Moody's positively notes that all the acquisitions completed by
Brenntag in the past 12 months have been entirely cash-funded,
with each acquisition reinforcing the group's business profile
whilst enhancing product and geographic diversification. In
particular, Moody's expects that the 2010 acquisition of EAC
Ingredients will have a fuller impact this year, strengthening
Brenntag's position in South East Asia, and the group's recently
announced acquisition of 51% of Zhong Yung Chemical Ltd to provide
a good strategic opportunity to enter the fast-growing and still
underdeveloped Chinese chemical distribution market. Furthermore,
the group's other recently announced acquisition, of GS Robins in
the US, will expand Brenntag's customer base in the attractive and
resilient food and water treatment sectors -- which currently
represent approximately 50% of the target's end markets.

Positive rating pressure could arise if Brenntag were to continue
to improve its leverage profile and operate with a ratio of gross
debt/EBITDA (as adjusted by Moody's) that is sustainably below
3.0x, whilst increasing its retained cash flow (RCF)/debt (as
adjusted by Moody's) sustainably above 20%. Moreover, to achieve a
rating upgrade, management would need to demonstrate a strong
official commitment to investment-grade rating status.

Negative pressure could arise if the group's gross debt/EBITDA
ratio were to increase sustainably above 4.0x and its RCF/debt
ratio were to fall below 15%. Any deviation from the announced
acquisition policy -- particularly with regard to the avoidance of
transformative debt-funded acquisitions -- could also exert
downward rating pressure.

The principal methodology used in rating Brenntag AG was the
Global Chemical Industry Methodology, published December 2009.

Brenntag is the world's largest chemical distributor, with an
estimated global market share of 6.9% and 2010 revenues of EUR7.6
billion. The group has market-leading positions in Europe (12.0%
market share) and in Latin America (7.1% market share). It also
has a strong presence in North America, where it ranks as the
number three player, with a 10.0% market share. Brenntag, a former
division of Stinnes AG, a German logistics group, was sold to
funds advised by Bain Capital in an LBO in 2004, and in September
2006 to funds advised by BC Partners in a secondary LBO. Since the
IPO in 2010, Brenntag has been listed on the Frankfurt Stock
Exchange. Since January 2011, the free float of the group was 64%.


EPIC LTD: S&P Lowers Ratings on Two Classes of Notes to 'BB+'
Standard & Poor's Ratings Services lowered its credit ratings on
Epic (Drummond) Ltd.'s class C and D notes.

"We have taken the rating action in light of the sovereign
downgrade of the Hellenic Republic. The Zenon loan, comprising
3.5% of Epic (Drummond)'s remaining asset portfolio, is secured on
a portfolio of supermarkets in Greece," S&P said.

"On June 13, 2011, we lowered our long-term sovereign credit
rating on Greece to 'CCC' from 'B' (see "Long-Term Sovereign
Rating On Greece Cut To 'CCC'; Outlook Negative"). The sovereign
downgrade reflects our view that there is a significant likelihood
of one or more defaults, as defined in our criteria relating to
full and timely payment, linked to the official creditors' efforts
to close an emerging financing gap in Greece," S&P related.

"Under our criteria, sovereign and country risks are relevant
rating factors for securitization ratings. Country risk can affect
our view of the credit quality of loans secured on assets in
particular jurisdictions. Under our criteria on country risk for
nonsovereign ratings that exceed European Monetary Union (EMU)
sovereign ratings, we cap the maximum rating achieved between
structured finance transactions and the related EMU sovereign at
'BB+' for sovereigns rated below 'B-'," S&P said.

"The performance of the assets securing the Zenon loan has been
stable, although we believe that the refinance risks associated
with this loan has increased due to the recent sovereign
downgrades on Greece. We have therefore lowered our ratings on
Epic (Drummond)'s class C and D notes to 'BB+ (sf)' from 'BBB-
(sf)'," S&P noted.

"We last lowered ratings in Epic (Drummond) on May 20, 2011, due
to our previous sovereign downgrade of Greece," S&P noted.

"We may make further adjustments to our ratings in this
transaction if there is a change in our view of credit risk for
this transaction or a change to the sovereign credit rating on
Greece," S&P related.

Epic (Drummond) is a synthetic European commercial mortgage-backed
securities (CMBS) transaction backed by 13 credit default swaps.

Ratings List

Class             Rating
          To                 From

Epic (Drummond) Ltd.
EUR1.143 Billion Commercial
Mortgage-Backed Floating-Rate Notes

Ratings Lowered

C         BB+ (sf)           BBB- (sf)
D         BB+ (sf)           BBB- (sf)

* GREECE: Lawmakers Vote to Reduce Spending; Staves Off Default
Rachel Donadio at The New York Times reports that Greek lawmakers
voted on Wednesday to sharply reduce government spending and sell
off an array of national assets, staving off default on the
country's debt, and easing, for the moment, a crisis among
countries that use the euro.

According to The New York Times, Chancellor Angela Merkel of
Germany welcomed the development as "really good news," while the
president of the European Commission, Jose Manuel Barroso, and the
European Council president, Herman Van Rompuy, said in a joint
statement that Greece had taken "a vital step back -- from the
very grave scenario of default."

The New York Times says Europe has much at stake in making the new
bailout a success because several other countries that use the
euro face similar, if less immediate, problems of high debt,
widespread unemployment and little or no growth.  Ultimately, many
economists say, the sovereign debt of Greece and some other
countries will have to be restructured, with their creditors
accepting a discount on the debts' face value, The New York Times
discloses.  European officials have so far sought to avoid taking
that step, The New York Times notes.

"If Europe comes together with an appropriate framework, that will
enable a default to be avoided," The New York Times quotes Joseph
E. Stiglitz, the Nobel-winning economist, as saying.  "But there's
every sign that Europe won't do that, so the likelihood of a
problem down the line is very significant."


ANGLO IRISH: European Commission Clears Bailout Plan
---------------------------------------------------- reports that The European Commission has cleared a
bailout plan for Anglo Irish Bank and the Irish Nationwide
Building Society.

According to, the proposal, which was submitted
for approval in January, provides for the merger of the two
troubled institutions and their winding down over the next 10

Anglo Irish and Irish Nationwide have jointly received EUR34.7
billion in capital injections from the State to cover losses on
property loans, discloses.

Anglo Irish Bank Corp PLC --
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.

GILSON MOTOR: Glenda Gilson Case Adjourned Until July 11
-------------------------------------------------------- reports that model and TV presenter Glenda Gilson
and her brother Damien appeared in court on June 27 after failing
to supply sufficient financial details of the car company they co-
own, Gilson Motor Co, which owes over EUR140,000 to the Revenue

The case, according to, was adjourned until July 11
but Ms. Gilson and her brother could still face jail if they fail
to produce full statements of affairs related to Gilson Motor to
the courts by that date. relates that the court heard Ms. Gilson had part-
filed a statement of affairs about Gilson Motor company, which is
in liquidation, ahead of a deadline of June 27.

Her brother filed documents in court on June 27 -- they have both
missed deadlines going back as far as March to produce the
financial statements, the report notes.

As reported in the Troubled Company Reporter-Europe on March 17,
2011, The Irish Times said Ms. Justice Mary Laffoy of the High
Court granted the Revenue Commissioners' petition to wind up
Gilson Motor after being informed it has failed to satisfy a
demand from the Revenue for more than EUR140,000 in unpaid taxes.
The judge appointed Gary Lennon of Lennon Corporate Recovery as
liquidator.  The Irish Times said the company's directors, Glenda
Gilson and her brother Damien, were directed to file a statement
of affairs within 21 days.

Gilson Motor Company Ltd. is a Dublin-based car sales company.

MCINERNEY PLC: Shareholder Proposes to Replace Board
Barry O'Halloran at The Irish Times reports that the McInerney plc
shareholder who is proposing to sack the group's board said he
would take legal action if the motion was not heard at a meeting
the company intended to call shortly.

According to The Irish Times, David Nabarro, who owns 21.45% of
the troubled house building firm, wanted to call an extraordinary
general meeting of shareholders to vote on a proposal to sack the
existing board and replace it with himself and two colleagues,
Kevin Lynch and John Garratt.

However, McInerney's company secretary, Mark Shakespeare, has
written to Mr. Nabarro to say his initial attempt to requisition
the meeting was invalid, and adds that the directors themselves
intend holding a general meeting "in short course" to put a number
of proposals to shareholders, The Irish Times discloses.

The Irish Times relates that in a letter to shareholders,
Mr. Nabarro says that if any extraordinary general meeting
proposed by the board "fails to include my resolutions to remove
them, we will apply to the Irish High Court for injunctive

The group's Irish division is in the final stages of a drawn-out
examinership process that began last August, The Irish Times

The Irish Times says the Supreme Court is likely to rule on
whether or not a rescue plan for the group, drawn up during this
process, can go ahead over the next few weeks.

McInerney owes EUR113 million to three Irish banks which opposed
the examinership and rescue proposals, The Irish Times discloses.
These proposals centered on a EUR25 million settlement of the debt
offered by a new backer, Oaktree Capital, The Irish Times states.

Mr. Nabarro acquired his shares last May, largely as a result of
the unwinding of contracts for difference held by businessman
Sean Quinn in McInerney plc, The Irish Times states.

                         About McInerney

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

OAK HILL: Moody's Upgrades Rating on Class E Notes to 'Ba2 (sf)'
Moody's Investors Service has upgraded the ratings of the
following notes issued by Oak Hill European Credit Partners II


   -- EUR20M Class A-5 Senior Secured Floating Rate Notes due
      2023, Upgraded to Aaa (sf); previously on Jun 22, 2011 Aa1
      (sf) Placed Under Review for Possible Upgrade

   -- EUR37M Class B Senior Secured Deferrable Floating Rate Notes
      due 2023, Upgraded to Aa1 (sf); previously on Jun 22, 2011
      A2 (sf) Placed Under Review for Possible Upgrade

   -- EUR19.5M Class C-1 Senior Secured Deferrable Floating Rate
      Notes due 2023, Upgraded to A1 (sf); previously on Jun 22,
      2011 Baa3 (sf) Placed Under Review for Possible Upgrade

   -- EUR10M Class C-2 Senior Secured Deferrable Fixed Rate Notes
      due 2023, Upgraded to A1 (sf); previously on Jun 22, 2011
      Baa3 (sf) Placed Under Review for Possible Upgrade

   -- EUR27M Class D Senior Secured Deferrable Floating Rate Notes
      due 2023, Upgraded to Baa2 (sf); previously on Jun 22, 2011
      Ba3 (sf) Placed Under Review for Possible Upgrade

   -- EUR24.5M Class E Senior Secured Deferrable Floating Rate
      Notes due 2023, Upgraded to Ba2 (sf); previously on Jun 22,
      2011 Caa1 (sf) Placed Under Review for Possible Upgrade

Ratings Rationale

Oak Hill European Credit Partners II P.L.C., issued in June 2007,
is a multi-currency Collateralised Loan Obligation backed by a
portfolio of mostly high yield US and European loans. The
portfolio is managed by Oak Hill Advisors (Europe), LLP. This
transaction is in its reinvestment period until August 15, 2013.
It is composed of 85.3% senior secured loans from 23 various

According to Moody's, the rating actions taken on the notes are
primarily a result of applying Moody's revised CLO assumptions
described in "Moody's Approach to Rating Collateralized Loan
Obligations" published in June 2011.

The actions reflect key changes to the modeling assumptions, which
incorporate (1) a removal of the temporary 30% default probability
macro stress implemented in February 2009, (2) increased BET
liability stress factors and increased recovery rate assumptions
as well as (3) a change in the recovery rate framework to fixed
recovery rates assumptions. Additional changes to the modeling
assumptions include (1) standardizing the modeling of collateral
amortization profile, and (2) changing certain credit estimate
stresses aimed at addressing time lags in credit estimate updates.

Moody's also notes the deal has benefitted from improvement in the
credit quality of the underlying portfolio and an increase in the
transaction's overcollateralization ratios since the rating action
in September 2009.

Improvement in the credit quality is observed through an
improvement in the average credit rating of the portfolio (as
measured by the weighted average rating factor "WARF") and a
decrease in the proportion of securities from issuers rated Caa1
and below.  In particular, as of the latest trustee report dated
May 2011, the WARF is currently 2539 compared to 2723 in the
August 2009 report, and securities rated Caa or lower make up
approximately 4.83% of the underlying portfolio versus 12.78% in
August 2009. The transaction currently complies with its major
criteria: Weighted Average Rating Factor, Diversity Score,
Weighted Average Spread and Overcollateralisation Tests.

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

Due to the impact of revised and updated key assumptions
referenced in "Moody's Approach to Rating Collateralized Loan
Obligations" published in June 2011, key model inputs used by
Moody's in its analysis, such as par, weighted average rating
factor, diversity score, and seniority distribution in the asset
pool, may be different from the trustee's reported numbers. In its
base case, Moody's analyzed the underlying collateral pool to have
a performing par and principal proceeds balance of EUR442 million,
defaulted par of EUR3 million, a weighted average default
probability of 28.0% (consistent with a WARF of 2800, and a
diversity score of 38. The default probability 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 of the assets in the collateral pool. For a Aaa
liability target rating, Moody's assumed that 85% of the portfolio
would recover 50% upon default, while the remainder would recover
10%. In each case, historical and market performance trends and
collateral manager latitude for trading the collateral are also
factors. These default and recovery properties of the collateral
pool are incorporated in cash flow model analysis where they are
subject to stresses as a function of the target rating of each CLO
liability being reviewed.

The deal is allowed to reinvest and the manager has the ability to
deteriorate the collateral quality metrics' existing cushions
against the covenant levels. Moody's analyzed the impact of
assuming weighted average spread and weighted average rating
factor levels consistent with the covenanted values.

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) the manager's
investment strategy and behavior and 2) divergence in legal
interpretation of CDO documentation by different transactional
parties due to embedded ambiguities.

Sources of additional performance uncertainties are:

1) Recovery of defaulted assets: Market value fluctuations in
   defaulted assets reported by the trustee and those assumed to
   be defaulted by Moody's may create volatility in the deal's
   overcollateralization levels. Further, the timing of recoveries
   and the manager's decision to work out versus sell defaulted
   assets create additional uncertainties. Moody's analyzed
   defaulted recoveries assuming the lower of the market price and
   the recovery rate in order to account for potential volatility
   in market prices.

2) Weighted average life: The notes' ratings are sensitive to the
   weighted average life assumption of the portfolio, which may be
   extended due to the manager's decision to reinvest into new
   issue loans or other loans with longer maturities and/or
   participate in amend-to-extend offerings. Moody's tested for a
   possible extension of the actual weighted average life in its

The principal methodology used in the rating was "Moody's Approach
to Rating Collateralized Loan Obligations" published in June 2011.
Other methodologies and factors that may have been considered in
the process of rating this issuer can also be found on Moody's

Moody's modeled the transaction using the Binomial Expansion
Technique, as described in Section of the "Moody's
Approach to Rating Collateralized Loan Obligations" rating
methodology published in June 2011.

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

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.

Moody's also notes that around 47% 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.

PONTOON BRIDGE: Hotel in Receivership, Continues to Trade
The Mayo News reports that Pontoon Bridge Hotel has gone into

The hotel will continue to trade as a going concern and the
receiver appointed by Ulster Bank to the hotel has confirmed to
staff, suppliers and future bookings at the hotel that it will be
business as usual, according to The Mayo News.

The report notes that the 50 full-time and part-time staff at the
hotel has been told that there are no plans for layoffs.

With the business struggling, the hotel's owners were left with no
choice but to inform Ulster Bank that they put Hy-many (Pontoon)
Limited, the company that runs the hotel, into receivership.

Ulster Bank has appointed joint receivers Michael McAteer and
Aengus Burns of Grant Thornton.

Pontoon Bridge Hotel is a 58-bedroom hotel owned by Ann Geary and
their family for the last 47 years.

QUINN GROUP: Quinns Dispute Irish Court's Right to Hear Anglo Suit
Mary Carolan at The Irish Times reports that businessman Sean
Quinn and his family may challenge the jurisdiction of the Irish
courts to hear a legal action commenced by Anglo Irish Bank aimed
at preventing the family from transferring assets from Swedish
companies behind the family's properties in several countries.

Brian O'Moore SC, with Bill Shipsey SC, representing the Quinns,
said his clients were in court subject to what they would say
about the Irish court's jurisdiction, The Irish Times said.  There
is a potential issue of the Irish court's ability to make orders
that would have ramifications in Russia, Cyprus and Sweden, The
Irish Times cited Mr. Moore as saying.

Mr. Justice Frank Clarke of the Irish court said he had not ruled
on jurisdiction when he granted interim orders on Monday relating
to assets transfer, the report cites.

As reported by The Troubled Company Reporter-Europe, RTE News
related that Anglo Irish Bank secured on June 27 an order from the
Irish High Court temporarily stopping members of the Quinn family
and related companies from transferring assets out of the Quinn
Group and out of the country.

Anglo is owed EUR2.8 billion by the Quinns' interests, according
to The Irish Times.

Anglo claims that the Quinn family set up a "mirror corporate
structure", the Cranaghan Foundation, in a "systematic attempt" to
transfer assets to "mirror" Quinn companies for the benefit of the
family, including Mr. Quinn's children and grandchildren, The
Irish Times notes.

Anglo executive Richard Woodhouse claimed Peter Quinn had moved
EUR4.5 million from a Russian bank account into which rental
income on a Moscow office block was paid to meet loan repayments
to Anglo Irish, The Irish Times relates.  Peter Quinn is the
nephew of Sean Quinn who managed the family's international
property interests.

Paul Gallagher SC, for Anglo, told the High Court on Wednesday
that the bank had just learned that a company called Finansstroy,
which had held the funds in the Russian bank, had filed for
bankruptcy and funds were transferred after that on June 3, The
Irish Times recounts.  Mr. Gallagher however noted he did not know
what impact that had.

Mr. Gallagher, as cited by The Irish Times, added that he learned
that an injunction was secured on June 26 against Anglo in a court
in Nicosia, Cyprus, which was returnable to next week.

Mr. Justice Clarke adjourned the Anglo proceedings to July 1 to
allow the sides to make further preparations for the hearing of
Anglo's application for an interlocutory order (to apply pending
the outcome of a full legal action) restraining the transfer of
assets from Swedish companies holding Quinn family assets in
Russia, Turkey, Ukraine and India, The Irish Times discloses.

The judge was told that both sides would not be ready to proceed
with the interlocutory application on July 1 but hoped that
hearing would proceed next week, according to The Irish Times.

In effect, the judge continued the effectivity of the interim
orders restraining assets transfer by the Quinns through July 1,
The Irish Times notes.

As noted in the June 2, 2011 edition of TCR-Europe, The Irish
Times reported that Anglo seized ownership of the Quinn group
appointing receiver Kieran Wallace of KPMG over the family's
shares in Quinn Group (ROI), the firm at the top of the group.
The bank installed its own directors and management to lead the
Quinn business, freezing Sean Quinn out of the running of the
group, The Irish Times recounted.

Quinn Group ROI Ltd. controls its cement, building materials,
glass and other manufacturing businesses in Ireland and Britain
through its ownership of Quinn Group, an operating entity
registered in Northern Ireland.

* IRELAND: 1,000 Firms Declared Insolvent in 1st Half of 2011
------------------------------------------------------------- reports that new figures show that just over 1,000 Irish
companies were declared insolvent in the first half of this year,
or eight Irish companies every working day.  This figure is
slightly higher compared to the 907 recorded for the first half of

According to the report, said there was a 31%
increase in company dissolutions from the same period last year,
with receiverships up 39% and examinerships down 43%. relates that said this suggests that the
appetite to save struggling companies, particularly in terms of
investment of money and time, has diminished.

Vision-net also carried out credit rating stress tests on a wide
sample of 66,701 private limited companies which have filed
accounts since the start of the year, reports.

Vision-net, as cited by, said the results of these tests
show that 32,000 companies, or almost half of those surveyed, are
struggling with debt and at risk of failure.


BANK CENTERCREDIT: Moody's Assigns '' National Scale Rating
Moody's Investors Service has assigned a long-term national
scale deposit rating to Bank CenterCredit. The NSR carries no
specific outlook. The bank is already rated B1/Not Prime (deposit
ratings) on Moody's global ratings scale.

Ratings Rationale

According to Moody's, BCC's NSR is derived from the bank's
B1 long-term global local currency deposit rating and reflects the
relative standing of the bank's creditworthiness within
Kazakhstan. Any future changes in BCC's NSR will be linked to the
creditworthiness of the bank as reflected in the global scale

The principal methodologies used in this rating were Bank
Financial Strength Ratings: Global Methodology published in
February 2007, Incorporation of Joint-Default Analysis into
Moody's Bank Ratings: A Refined Methodology published in March
2007, and Mapping Moody's National Scale Ratings to Global Scale
Ratings published in August 2010.

National Scale Ratings

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

Headquartered in Almaty, Kazakhstan, BCC reported -- under audited
IFRS -- total assets of KZT1.224 trillion (US$8.3 billion) and
shareholders' equity of KZT84.7 billion (US$ 575 million). In 2010
the bank reported a net loss of KZT31 billion (US$208 million).

KASPI BANK: Moody's Rates KZT100-Bil. Bond Program at '(P)B1'
Moody's Investors Service has assigned a provisional (P)B1 long-
term local currency senior unsecured debt rating to the senior
unsecured issuances under the KZT100 billion (approximately US$676
million) domestic bond program of Kaspi Bank. Any subsequent
senior unsecured debt issuance by Kaspi Bank will be rated at the
same rating level subject to there being no material change in the
bank's overall credit rating.

Moody's also assigned a provisional (P)B2 long-term local currency
subordinated debt rating to the subordinated debt issuances under
the same program. Any subsequent subordinated debt issuance by
Kaspi Bank will be rated at the same rating level subject to there
being no material change in the bank's overall credit rating.

The outlook on Kaspi Bank's local currency debt ratings is
negative, in line with negative outlook on the bank's local
currency deposit rating.

Ratings Rationale

The provisional senior unsecured debt rating assigned to Kaspi
Bank is in line with its B1 global local currency bank deposit
rating. Moody's notes that the obligations of Kaspi Bank to make
payments under the senior unsecured bond issue will rank -- at all
times -- at least pari-passu with the claims of all other
unsecured and unsubordinated creditors of the bank, except for
those claims that are preferred by any relevant law.

Moody's notes that the (P)B2 subordinated debt rating, which is
one notch below Kaspi Bank's deposit rating, takes into account
the extent of the bonds' subordination to senior classes of debt.

Nonetheless, the ratings of Kaspi Bank's domestic bond program do
not immediately apply to any individual notes issued under the
program. The assignment of any such ratings is subject to Moody's
satisfactory review of the terms and conditions set forth in the
final prospectuses, supplements or offering memorandums of the
bonds to be issued.

"The negative outlook on Kaspi Bank's debt and deposit ratings
reflects continued pressure on the bank's credit profile from
Kazakhstan's sustained tough credit conditions and from the bank's
fundamental challenges in growing its retail lending business,"
explains Maxim Bogdashkin, a Moody's Assistant Vice President and
lead analyst for the bank. "The bank's credit quality may face
pressure from any of the following developments: (i) a failure to
maintain capital ratios adequate to risks stemming from its
growing retail lending business; (ii) a failure to reduce
depositor concentration, which renders the bank vulnerable to its
relationships with the largest customers; or (iii) a failure to
reduce concentration in its loan portfolio," adds Mr. Bogdashkin.


The principal methodologies used in this rating were Bank
Financial Strength Ratings: Global Methodology published in
February 2007, Incorporation of Joint-Default Analysis into
Moody's Bank Ratings: A Refined Methodology published in March
2007, and Moody's Guidelines for Rating Bank Hybrid Securities and
Subordinated Debt published in November 2009.

Headquartered in Almaty, Kazakhstan, Kaspi Bank reported total
assets of KZT362 billion (US$2.5 billion) under audited IFRS as of
YE2010, up 16% compared to 2009. The bank's net profit totaled
KZT2.2 billion (US$15 million) in 2010 versus a net loss of KZT6.8
billion (US$46 million) recorded a year earlier.


METALLOINVEST HOLDING: Moody's Changes 'Ba3' Outlook to Positive
Moody's Investors Service has changed to positive from stable the
outlook on Metalloinvest's Ba3 corporate family rating.

Moody's decision to change the outlook for Metalloinvest's rating
to positive is driven by the improvements in commodity markets,
particularly that for iron ore, which is reflected by the strong
recovery in the group's sales in 2010, as well as expectations of
a strong pricing environment for iron ore in the medium term.
Further supporting the outlook change is Moody's view that the
ongoing recovery in the iron ore market should continue to
underpin the strong cash flow generation already achieved by
Metalloinvest in 2010 and expected in 2011.

Moody's understands that Metalloinvest's capital expenditures
(capex) for the purpose of capacity expansion and modernization
will remain modest. This will allow management to focus on
deleveraging the balance sheet, with a target debt/EBITDA ratio
not exceeding 2.0x through the cycle. In the near term, Moody's
expects that the pace of this deleveraging will be driven by the
pace of the recovery in Metalloinvest's revenue, as well as by the
group's ability to maintain a relatively high level of
profitability. Therefore, the rating agency considers that further
improvements in Metalloinvest's financial profile are likely to be
the key credit driver for the group in the near term.

Looking forward, Moody's anticipates that Metalloinvest will: (i)
proactively manage its refinancing needs in 2011-12, with a view
to achieving a longer maturity profile; and (ii) further reduce
its leverage through free cash flow (FCF) generation.

Metalloinvest's credit metrics position the group strongly in its
current rating category. However, the likelihood of any rating
upgrade is currently limited by the fact that, in May 2011,
Metalloinvest arranged a pre-export finance (PXF) facility
totaling US$3.1 billion out of which US$2.2 billion was used to
acquire a 4% stake in Norilsk Nickel. Although the group believes
the stake is highly liquid and that the acquisition fits with its
strategy, Moody's views this transaction as tempering any further
near-term upward pressure for the following reasons: (i) being a
debt-financed acquisition, it has negatively affected
Metalloinvest's debt load and financial leverage and (ii) the
stake was bought at market price and therefore is unlikely to
provide any meaningful upside in the near term or be liquidated
without loss in value, given its size.

However, Moody's believes that the negative impact of the
acquisition on Metalloinvest's financial metrics are likely to be
temporary. This view reflects Metalloinvest's strong FCF
generation in 2011 and the rating agency's expectation that, if
iron ore prices remain supportive, the group will be able to
achieve a targeted leverage level of below 2.0x debt/EBITDA by the
end of 2011.

The positive outlook reflects the expectation that the company
will be able to reduce the additional debt incurred in the course
of the acquisition of the Norilsk Nickel stake.

The rating could experience positive pressure if the company
sustainably maintains a debt/EBITDA ratio below 2.0x and FCF/Debt
ratio above 20%. Furthermore, Moody's would like to see that the
company consistently implement its internal financial policy with
respect to financial leverage.

Downward pressure could develop if the company's debt/EBITDA ratio
exceeds 2.5x and the (CFO-Div)/debt is below 30%.


The principal methodology used in rating Metalloinvest Holding
Company CJSC was the Global Mining Industry Methodology, published
May 2009.

Metalloinvest is a leading Russian mining company and the largest
Russian iron ore producer, with a 37% domestic market share of
iron ore concentrate (59% for pellets and 100% for hot-briquetted
iron (HBI)/direct-reduced iron (DRI)). The company has the world's
largest iron ore reserve base, is the largest iron ore producer in
Europe and Russia in terms of volumes and the fifth-largest
supplier globally in terms of market share. In addition,
Metalloinvest is the fifth-largest steel producer in Russia.

In 2010, Metalloinvest produced approximately 36.8 million tons of
sintering ore and concentrate, 22 million tons of pellets, 4.7
million tons of HBI/DRI and 6.1 million tons of crude steel. The
group reported revenue of US$7.24 billion (representing a 53%
increase year over year) and EBITDA of US$2.59 billion (a 208%
increase year over year). Metalloinvest is owned by four

WOOD STREET: S&P Raises Ratings on Three Classes of Notes to CCC+
Standard & Poor's Ratings Services took various credit rating
actions on Wood Street CLO V B.V.'s notes.

Specifically, S&P has:

   -- Raised and removed from CreditWatch positive its ratings on
      the class A-2, B, C-1, C-2, D, E-1, and E-2 notes;

   -- Raised its rating on the class P combination notes; and

   -- Affirmed and removed from CreditWatch negative its ratings
      on the class A-T, A-D, and A-R notes.

"The rating actions follow our assessment of an improvement in the
overall credit profile of the underlying portfolio and an increase
in the available credit enhancement for all classes of notes. They
also reflect the application of our 2010 counterparty criteria,"
S&P related.

"Since our last transaction update in February 2010, we have
observed an improvement in the credit quality of the underlying
portfolio, which comprises loans to primarily speculative-grade
corporate obligors," S&P said.

"Our credit and cash flow analysis on the class A-T, A-D, and A-R
notes indicate that the level of available credit enhancement is
sufficient for the notes to maintain their 'AA+ (sf)' ratings,"
S&P noted.

"For the class A-2, B, C-1, C-2, D, E-1, and E-2 notes, our
analysis indicates that the improvements in scenario default rates
(SDRs) and the increase in available credit enhancement has
benefited these classes of notes to an extent that supports higher
ratings than their current levels. We have therefore raised our
ratings on these notes," S&P stated.

"Our analysis indicates that the number of loans rated in the
'CCC' category has decreased. Currently, 5.24% of the portfolio's
performing balance is rated in this category, compared with 8.49%
in February 2010," S&P said.

"Overall, this has led to an improvement in our SDR assumptions
for each class of notes, thereby lowering our expectation of
portfolio losses at each rating level. At the same time, we have
also observed an increase in the credit enhancement available to
all classes of notes," S&P noted.

"The same factors that contributed to the upgrade of the class C-2
and E-2 notes have affected our ratings on the class P combo
notes. This is due to the fact that the combo notes include
components of the rated tranches: Class C-2 notes (66.67%) and the
class E-2 notes (33.33%)," S&P related.

"On Jan. 18, 2011, we placed the ratings on the class A-T, A-D,
and A-R notes on CreditWatch negative when our 2010 counterparty
criteria became effective," S&P stated.

"In our opinion, the transaction documents reflect our 2010
counterparty criteria in respect of direct obligations (account
banks, liquidity facility, and custodians). For derivatives, we
believe that the swap documentation does not fully reflect our
2010 criteria. We have conducted our cash flow analyses assuming
that the transaction does not benefit from support under the
swaps. We concluded, after conducting these cash flow analyses,
that the current ratings could be maintained and have therefore
removed from CreditWatch negative our ratings on the class A-T, A-
D, and A-R notes," S&P said.

Ratings List

Class             Rating
            To              From

Wood Street V CLO B.V.
EUR515 Million Senior Secured and Subordinated Floating-Rate Notes

Ratings Raised and Removed From CreditWatch Positive

A-2         AA- (sf)        A+ (sf)/Watch Pos
B           A+ (sf)         A- (sf)/Watch Pos
C-1         BBB+ (sf)       BB+ (sf)/Watch Pos
C-2         BBB+ (sf)       BB+ (sf)/Watch Pos
D           B+ (sf)         CCC+ (sf)/Watch Pos
E-1         CCC+ (sf)       CCC- (sf)/Watch Pos
E-2         CCC+ (sf)       CCC- (sf)/Watch Pos

Rating Raised

P combo     CCC+ (sf)       CCC- (sf)

Ratings Affirmed and Removed From CreditWatch Negative

A-T         AA+ (sf)        AA+ (sf)/Watch Neg
A-D         AA+ (sf)        AA+ (sf)/Watch Neg
A-R         AA+ (sf)        AA+ (sf)/Watch Neg


BANCO PORTUGUES: Banco BIC Angola Mulls Takeover Bid
Henrique Almeida at Bloomberg News reports that Fernando Teles,
Banco BIC Angola's chief executive officer, said the southern
African country's fourth biggest bank in terms of deposits is
considering bidding for failed Portuguese lender BPN-Banco
Portugues de Negocios SA.

Bloomberg relates that Mr. Teles said Banco BIC hired consulting
company Deloitte to advise it on the acquisition of BPN.

Portugal seized BPN in 2008 and failed to sell the lender's retail
business last year for a minimum price of EUR180 million (US$259
million), Bloomberg recounts.

According to Bloomberg, the Portuguese government plans to sell
BPN by the end of July, without a minimum price, as part of an
austerity plan that allows it to tap a EUR78 billion financial aid
package from the European Union and the International Monetary

Based in Lisbon, Portugal, BPN-Banco Portugues de Negocios SA
provides banking services, as well as advice on economic and
financial valuation studies, and corporate reorganizations to
companies and institutional investors.


CITY MALL: To Be Sold Through Direct Negotiation by Liquidator
Ziarul Financiar reports that bankrupt City Mall failed to draw
bidders in the fifth auction set for June 30 and thus, the
liquidator, Casa de Insolventa Transilvania, will sell the unit
through direct negotiation.

As reported by the Troubled Company Reporter-Europe on June 20,
2011, Ziarul Financiar related that City Mall was set to be put up
for auction at a starting price of EUR20.96 million, down from
around EUR24 million starting price at the previous sale attempt.

City Mall is a Bucharest shopping center.

PROBUSINESSBANK: Moody's Assigns (P)B2 Sr. Unsecured Debt Ratings
Moody's Investors Service has assigned (P)B2/Not Prime long- and
short-term foreign currency and global local currency senior
unsecured debt ratings, and (P)B3 long-term foreign and local
currency subordinated debt ratings to the US$750 million notes
program of Probusinessbank (PBB). The program will be financed by
the issuance of loan participation notes through PBB LPN Issuance
Limited -- the Cyprus-based special purpose vehicle. The notes are
to be issued on a limited recourse basis for the sole purpose of
financing senior unsecured and subordinated loans to PBB. The
rating outlook on the program ratings is stable.

Ratings Rationale

Moody's says that the (P)B2 rating assigned to the senior notes to
be issued under the program is based on the fundamental credit
quality of the underlying obligor, PBB, rated B2/Not Prime/E+
(stable outlook). The assigned (P)B2 rating reflects the status of
the bank's obligations under the senior loan received from PBB LPN
Issuance that will rank at least pari passu in right of payment
with all other unsecured and unsubordinated obligations of PBB,
except as otherwise provided by mandatory provisions of applicable
law. Therefore the assigned (P)B2 senior rating is in line with
PBB's global local currency deposit rating of B2, which is, in
turn, based on the bank's standalone E+ bank financial strength
rating (BFSR, mapping to the long-term scale of B2).

Moody's observes that PBB's standalone E+ BFSR is constrained by
(i) the bank's low capital adequacy level; (ii) very high market
risk exposure due to significant investments in real estate and
equities; (iii) very high appetite for risk and (iv) aggressive
expansion plans that impair operating efficiency and render the
bank potentially vulnerable to operational risks.

At the same time, the rating agency notes that PBB's BFSR is
underpinned by (i) its established franchise in the retail segment
on the local markets of Saratov, Yekaterinburg and Kaluga regions
where it operates through its subsidiary banks; and (ii) its
healthy net interest margin.

The (P)B3 rating for subordinated notes, which one notch lower
than PBB's (P)B2 senior unsecured debt rating, takes into account
the extent of the notes' subordination against various classes of
debt and equity, and the associated differences in expected loss
in the event of default. Moody's states that if PBB were to issue
notes containing features enhancing its subordination and/or debts
with other special features, the ratings will be assessed
individually and may not correspond to the ratings currently
assigned to the program.

Previous Rating Actions and Principal Methodologies

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

Headquartered in Moscow, Russia, Probusinessbank reported total
(audited) assets of RUB107.5 billion and net income of RUB1.5
billion, according to IFRS at YE2010.

RCS & RDS: Moody's Withdraws 'Ba3' Corporate Family Rating
Moody's Investors Service has withdrawn the Ba3 corporate family
rating and Ba3 probability of default rating (PDR) of RCS & RDS

Ratings Rationale

Moody's Investors Service has withdrawn the credit rating for its
own business reasons.

RCS & RDS is a leading cable services provider in Romania and
Hungary, as well as a DTH operator throughout Central and Eastern


BANK OF MOSCOW: Moody's Cuts Bank Financial Strength Rating to D-
Moody's Investors Service has downgraded these ratings of JSC Bank
of Moscow: standalone bank financial strength rating to D- from D,
long-term local and foreign currency debt and deposit ratings to
Ba1 from Baa2, long-term foreign currency subordinated debt rating
to Ba2 from Baa3, and short-term foreign currency deposit rating
to Not-Prime from Prime-2. The long-term local and foreign
currency debt and deposit ratings, long-term foreign currency
subordinated debt rating and the standalone bank financial
strength rating remain on review for further downgrade.

Ratings Rationale

According to Moody's, the downgrade of the standalone BFSR and
review for further downgrade reflect the rating agency's concerns
that the corporate conflict triggered by VTB's acquisition of a 46
% stake in BOM may result in significant impairment of Bank of
Moscow's asset quality and franchise value. Moreover, Moody's
incorporates a high information risk into Bank of Moscow's
ratings, because the degree of the bank's asset impairment remains
unclear in view of a significant delay in publication of BOM's
audited IFRS accounts for 2010.

Meanwhile, according to Russian Accounting standards, since the
shareholder conflict started in 4Q2010, the bank has lost 14% of
its retail deposits and booked additional RUB17 billion reserves
on its loan book.

The rating agency understands that the results reported in the
2010 IFRS financials will significantly depend on the outcome of
the inspection by the Central Bank of Russia now underway to
identify the level of problem assets in BOM's loan book.

Moody's notes that there are significant concerns that the extent
of the bank's asset quality deterioration is likely to be greater
than previously anticipated. The recent announcements by BOM's
former and current management about the amount of assets, which
could became impaired due to the shareholder conflict, suggest
that there is some risk that the anticipated degree of asset
quality deterioration could endanger the bank's capital adequacy
ratio (which exceeded 16% at end-May 2011), according to Russian
Accounting Standards. Such a scenario, if it were to realise,
would trigger a multi-notch downgrade of BOM's standalone BFSR
unless immediate and decisive remedial actions by the authorities
or VTB were undertaken.

Supported ratings

Moody's notes that the downgrade of BOM's long-term deposit and
debt and short-term deposit ratings reflects the downgrade of the
bank's standalone rating as well as the withdrawal of support from
the City of Moscow (which previously provided a one-notch uplift).
BOM's previous Baa2 long-term local and foreign currency debt and
deposit ratings incorporated the expectations that VTB (which
currently owns 46% of BOM) would have quickly assumed controlling
ownership in BOM, with the consequent integration process
resulting in VTB substituting (i) the support previously provided
by the City of Moscow and (ii) a high degree of systemic support.
However, the pace of VTB's acquisition of a controlling stake in
BOM has been delayed due to the lack of clarity regarding BOM's
asset quality. Therefore, BOM's integration into VTB is now
expected to take longer than previously anticipated, and support
to BOM from VTB becomes questionable at the current stage of

As a result, after the withdrawal of support from the City of
Moscow, BOM's ratings do not yet incorporate support from VTB and
will continue to reflect only: (i) the D- standalone rating and
(ii) Moody's assessment of high level of systemic support, given
the bank's importance for the Moscow region and the banking system
as a whole -- as the sixth-largest bank in Russia.

Focus of the review

Moody's further review for downgrade of BOM's ratings will focus
on the i) magnitude of potential asset quality deterioration and
ii) timeliness and sufficiency of the support package from the
state and/or VTB for BOM, if such support is required. Moody's
also notes that it may downgrade BOM's ratings further in case of
the bank's failure to disclose the amount of problem assets in the
next few months or if there is no clarity over the timing of
formal completion of VTB's acquisition of the controlling stake in

Principal Methodologies

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

Headquartered in Moscow, Russia, Bank of Moscow reported total
assets of RUB853 billion (approximately US$28 billion) and net
income of RUB2.8 billion according to (unaudited) IFRS at H1 2010.

CREDIT BANK: Fitch Assigns 'B+' Rating on Exchange Bonds
Fitch Ratings has assigned Credit Bank of Moscow's RUB5 billion
issue of Series BO-5 senior unsecured exchange bonds with final
maturity in June 2014, a final Long-term local currency rating of
'B+' and National Long-term rating of 'A-(rus)'. The Recovery
Rating for the bonds is 'RR4'.

CBOM's other ratings are Long-term foreign currency Issuer Default
'B+'/Stable, Long-term local currency IDR 'B+'/Stable, Short-term
foreign currency IDR 'B', Individual Rating 'D', Support Rating
'5' and Support Rating Floor 'No Floor'.

CBM is a medium-sized Moscow-based bank, the 26th-largest in
Russia by assets at end-Q111, owned by Roman Avdeev.

UC RUSAL: Paid US$119MM to Creditors Under Restructuring Agreement
AK&M reports that RUSAL said it paid US$119 million to foreign and
Russian creditors, including ONEXIM Group, according to the
restructuring agreement.

According to AK&M, the payment was effected on June 29, 2011.

In total, RUSAL has paid US$1.7 billion since the beginning of
2011, including refinancing from the proceeds derived from the
recent successful ruble bond issue, AK&M discloses.  The amount
repaid by the Company to the lenders since the debt restructuring
arrangement was signed, excluding repayments made under the
refinancing of the VEB loan, totaled US$4.3 billion, AK&M notes.

"RUSAL makes debt repayments ahead of schedule and actively uses
new tools to raise capital, which helps the Company to reduce debt
service costs and to improve the debt structure," AK&M quotes the
company statement as saying.

                           About Rusal

Headquartered in Moscow, Russia, United Co. RUSAL -- is among the world's top aluminum
producers, along with Rio Tinto Alcan and Alcoa.  Formed in 2000
from various parts of the old Soviet state apparatus, RUSAL
produces about 4 million tons of aluminum, 11 million tons of
alumina, and 6 million tons of bauxite.  Its aluminum business
include packaging and foil operations in addition to a network of
smelters.  Those Soviet spare parts were significantly augmented
in 2007 when the company merged with fellow Russian aluminum
producer Sual and Glencore's alumina unit.  RUSAL is majority
owned by Board member Oleg Deripaska, who had owned the company
completely prior to the merger.

* KRASNOYARSK REGION: Fitch Affirms 'BB+' Currency Ratings
Fitch Ratings has affirmed the Krasnoyarsk Region's Long-term
foreign and local currency ratings at 'BB+', with Stable Outlooks,
and its Short-term foreign currency rating at 'B'. The agency also
affirmed the region's National Long-term rating at 'AA(rus)' with
Stable Outlook. The rating action also affects the region's
outstanding domestic bonds.

The ratings reflect Krasnoyarsk's sound budgetary performance,
moderate debt and strong liquidity position. They also take into
account the region's tax concentration on a few companies, some of
which are exposed to business cycles volatility in the prime
industry. The Stable Outlook reflects Fitch's expectation that
moderate growth of the local economy and prudent fiscal management
will stabilize its budgetary performance at the level of margins
attained in 2010.

Sustained stable budgetary performance and protection of favorable
debt coverage ratios would be positive for the ratings.
Conversely, structural deterioration of budgetary performance due
to poor containment of operating expenditure and significant
increase in debt up to about 40% of current revenue would be
negative for the ratings.

Fitch expects continued growth of the local economy at about 2%-3%
yoy in 2011-2013. The rebound of Krasnoyarsk's prime industry of
non-ferrous metallurgy triggered improved tax collections in 2010.
However, the region's tax revenue remains concentrated with the
top ten taxpayers' contribution amounting to 55.6% of the total
tax revenue in 2010 (2009: 33.9% and 2008: 54.9%). The local
economy's exposure to the volatile business cycles of the region's
prime industry will most likely remain in the medium term.
However, rapid development in oil and gas, energy and other
industries will continue to support wealth indicators above the
national average.

The region's budgetary performance improved in 2010 with the
operating margin increasing to 21.7% after it declined to 9.8% in
2009. Restored tax revenue and containment of operating
expenditure below the growth rate of operating revenue led to
recording a surplus before debt variation of 6.2% of total revenue
in 2010 after a deficit of 13.2% in 2009. Fitch expects the
region's budgetary performance in 2011 to stabilize with margins
at about 20%-22%.

The region's direct risk decreased to RUB7.7 billion in 2010 from
RUB10.2 billion 2009, while the payback period fell below four
months of current balance. The contingent liabilities were
moderate, self-servicing and strictly controlled. The region's
liquidity position improved in 2010 with accumulated cash
increasing to RUB24.7 billion (2009: RUB18.7 billion), it exceeds
outstanding debt obligations, Fitch expects the region's direct
risk to further decrease to about RUB4.5 billion by end-2011.

The Krasnoyarsk region is located in the eastern Siberian part of
Russia. The region accounts for 2.3% of Russia's (2009) GDP and
around 2% of its population.


SAAB AUTOMOBILE: Gets EUR25 Million Bridge Loan From Gemini
Christina Zander at The Wall Street Journal reports that Saab
Automobile owner Swedish Automobile NV said Wednesday it secured a
EUR25 million (US$35.9 million) bridge loan from hedge fund Gemini
Investment Fund that will allow it to restart production soon.

With the convertible bridge loan, the sale of real estate, and an
order for cars from an unnamed Chinese buyer, Saab Automobile this
week has secured EUR66 million in funding, the Journal says.

Production at Saab Automobile has been halted for most of the past
three months due to unpaid supplier bills, the Journal discloses.
Last week, Saab Automobile disclosed that it didn't have enough
money to pay its employees' wages, and it approached its suppliers
with an offer to pay just 10% of their outstanding accounts in an
attempt to resume production, the Journal relates.

Swedish Automobile, formerly Spyker Cars, has been in talks with
several parties about securing additional funding, but hasn't yet
got the necessary clearance from regulators and stakeholders to
complete a deal, the Journal notes.

With an annual production of up to 126,000 cars, Saab's current
models include the 9-3 (available as a convertible or sport
sedan), the luxury 9-5 sedan (also available in a sport wagon),
and the seven-passenger 9-7X SUV.  As it prepared to separate from
General Motors, Saab filed for bankruptcy protection in February
2009.  A year later, in February 2010, GM sold Saab to Dutch
sports car maker Spyker Cars for about US$400 million in cash and


* CITY OF KYIV: S&P Raises Long-Term Issuer Credit Rating to 'B-'
Standard & Poor's Ratings Services raised its long-term issuer
credit rating on the city of Kyiv to 'B-' from 'CCC+'. The outlook
is stable. "We removed the rating from CreditWatch, where we
placed it with developing implications on June 14, 2011," S&P

"The upgrade reflects what we see as the very high likelihood that
Kyiv will be able to refinance its debt obligations coming due in
2011 via an imminent foreign currency bond placement that the
Ukrainian central government has authorized and which the city is
very likely to place," S&P related.

"The CreditWatch placement reflected the uncertainties we
perceived about the central government's timely and adequate
actions in granting a new approval of the city's proposed issue,"
S&P said.

The rating is constrained by Kyiv's high debt service; very weak
liquidity; moderate debt burden, with associated foreign-exchange
risks; volatile and unsupportive system; and modest financial

The rating is supported by the city's position as the
administrative and economic center of Ukraine (foreign currency
B+/Stable/B; local currency BB-/Stable/B; Ukraine national scale
'uaAA-'), its fairly diversified and wealthy economy, and
stabilization of its budget payables.

"The stable outlook reflects our expectation that market
sentiments and the central government's positive track record of
borrowing authorization will likely allow Kyiv to refinance it
debt obligations coming due in 2012. The outlook also factors in
continued recovery of operating financial performance through
2013," according to S&P.

Positive rating actions could follow greater predictability of the
city's 2012 debt repayment obligations. "Our ratings upside
scenario assumes Kyiv's ability to accumulate cash reserves ahead
of debt repayment in 2012 or additional support from the
sovereign," S&P said.

"Our ratings downside scenario implies that Kyiv's recourse to
short-term borrowings would result in a hike of debt serve in
2012-2013 significantly above our base-case indicators. Lack of
timely borrowing approval from the central government or credit
market turbulence that might impede the city's plans to refinance,
especially in the absence of alternative debt repayment scenarios,
might also put pressure on the rating," S&P related.

U N I T E D   K I N G D O M

BLUCHIE LTD: Retirement Villages Goes Into Administration
Insider Media Limited reports that Bluchie Ltd and Quintain No.15
Ltd, which own and operate two retirement villages in the South
West, have entered administration.  The report relates that the
freehold interests in the villages are now being marketed with a
view to sell as going concerns.

Crystal Fountain Retirement Village, in Nailsworth, which is owned
by Bluchie Limited and Woodlands Court Retirement Village in
Downend, Bristol, which is run by Quintain No.15 Ltd, have both
been affected, according to Insider Media Limited.

The report notes that Robin Allen and Richard Hawes, partners at
Deloitte in Bristol, have been appointed joint administrators of
Bluchie Ltd and Quintain No.15 Ltd and they are now seeking a new
buyer for the retirement villages.

The administrators are continuing to operate the villages and have
made arrangements for the services provided to residents to be
maintained, Insider Median Limited says.  No redundancies have
been made from the 34 employees working at the sites.

DEUTSCHE PFANDBRIEFBANK: S&P Affirms 'B' Ratings on Various Notes
Standard & Poor's Ratings Services lowered its credit rating on
the class A2 notes in Deutsche Pfandbriefbank AG's Estate UK-3
commercial mortgage-backed securities transaction. "At the same
time, we have affirmed our ratings on the class A1+, B, C, D, and
E notes and removed from CreditWatch negative the ratings on the
class A1+ and A2 notes," S&P said.

"On March 1, 2011, following a full review of the transaction, we
downgraded all classes and kept the ratings on the class A1+ and
A2 notes on CreditWatch negative pending further information from
Deutsche Pfandbriefbank. On April 21, 2011, in line with our 2010
counterparty criteria, we lowered to 'A+ (sf)/Watch Neg' from 'AA
(sf)/Watch Neg' our rating on the class A1+ notes (see 'S&P
Resolves Seven European Structured Finance Counterparty Criteria
CreditWatch Placements (April 21, 2011 Review)')," S&P related.

Loan 3 is current in its payment obligations but it has breached
the LTV ratio covenant and is in special servicing as a result.
Its scheduled maturity date is April 2013. "Loan 3 is a large loan
(approximately 40% of the pool balance) and two of its three
assets face considerable challenges, in our view. Accordingly, we
believe it may be difficult to restructure this loan and there
are scenarios we see in which we could expect significant losses
on this loan," S&P said.

"As part of our ratings process and ongoing surveillance, we have
ongoing discussions with Deutsche Pfandbriefbank relating to this
transaction. Deutsche Pfandbriefbank has restructured other loans
in this transaction, and has been working on a restructuring of
Loan 3," S&P noted.

"Although we have to date been kept abreast by Deutsche
Pfandbriefbank of discussions between the parties to the loan
relating to the workout of Loan 3, we have not yet received any
documentation that sets out a course of action," S&P said.

"The downgrade and removal from CreditWatch negative of the rating
on the class A2 notes reflects our view of the reduced recoveries
achievable under our stress scenarios," S&P added.

"In our opinion, the current credit characteristics of the class
A1+ notes are commensurate with the rating on the class A1+ notes.
We have therefore affirmed and removed from CreditWatch negative
the rating on the class A1+ notes," S&P related.

"Our analysis indicates that the ratings on B, C, D, and E notes
remain appropriate, and we have therefore affirmed these ratings,"
S&P said.

Estate UK-3 is a synthetic CMBS transaction. Hypo Real Estate Bank
International (now known as Deutsche Pfandbriefbank) issued the
notes in February 2007. The notes are backed by nine loans (as
against 13 from closing), which in turn are secured on 106
commercial properties, including retail (38.6%) and offices
(20.0%). The properties are spread throughout the U.K., mainly in
southeast England (24.8%, excluding London), Yorkshire and
Humberside (17.2%), and London (17.9%).

Ratings List

Class             Rating
          To                From

Deutsche Pfandbriefbank AG
GBP113.68 Million Floating-Rate Amortizing Credit-Linked Notes
(Estate UK-3)

Ratings Affirmed and Removed From CreditWatch Negative

A1+       A+ (sf)           A+ (sf)/Watch Neg

Ratings Lowered and Removed From CreditWatch Negative

A2        BB+ (sf)          BBB (sf)/Watch Neg

Ratings Affirmed

B         B (sf)
C         B (sf)
D         B (sf)
E         B (sf)

DONEGAL HOTEL: Up for Sale for EUR1.5 Million
BBC News reports that Shandon Hotel is up for sale for EUR1.5
million (GBP1.34 milliom).

The four star hotel went on the market on June 28.

Formerly owned by Dermot and Catherine McGlade, the hotel went
into receivership in February, BBC News recalls.  The report
relates that the property is being sold as a going concern and the
hotel and spa have both opened for the summer season.

Shandon Hotel has 71 bedrooms, a leisure centre with pool, a 9-
hole pitch and putt course and tennis courts.

EGLISH INVESTMENTS: Goes Into Receivership, Seeks Buyer
BBC News reports that receivers have been appointed to a series of
properties that were owned by County Armagh developer Derek George
Harrison.  The receiverships were on the instruction of Bank of
Scotland, according to BBC News.

BBC News notes that the properties are development sites in
counties Armagh, Tyrone and Antrim which were held by various

BBC News says that the assets were placed into receivership in
April and include fields at Tarry Lane in Lurgan with planning
permission for 100 houses.  The report relates that the other
sites are the old Woodside Training Centre in Omagh which has
planning permission for 40 houses, a site in Fivemiletown with
planning permission for 50 houses and a site on the Belfast Road
in Carrickfergus.

These sites have now been put up for sale by the bank.

The companies involved are Eglish Investments, Clonvara, Tarry
Lane Developments and Forgehill Properties, BBC News discloses.

BBC News notes that Bank of Scotland is not the first financial
institution to move against Mr. Harrison.  Last year, the
Derbyshire Building Society appointed receivers to properties in
Cookstown, Lurgan and Portadown, the report recalls.

Northern Bank, which is believed to have been one of the main
funders of Mr. Harrison's firms, has also appointed receivers to
several sites in Armagh and Tyrone, BBC News says.

Mr. Harrison has been involved in property investment and
development for many years.  The co-directors of some of his
companies include family members and other business people.

GLENKERRIN: Crowne Plaza for Sale With GBP80-Mil. Guide Price
------------------------------------------------------------- reports that the freehold Crowne Plaza London-
Shoreditch, in the City of London, has been put on the market with
a guide price of GBP80 million, after the hotel's previous owner,
the UK branch of Irish property development company Glenkerrin,
fell into administration in April.

The 196-room hotel is currently undergoing an extension, including
68 additional rooms and a 4,000 ft(2) restaurant, which is
expected to be completed by the end of the year.

As reported in the Troubled Company Reporter-Europe on May 3,
2011, reports that National Asset Management
Agency (NAMA) has asked for Glenkerrin, founded by former tiler
Ray Grehan, to be put into administration.  Glenkerrin currently
has a debt of EUR650 million owed to NAMA.  The April 29 edition
of TCR-EUR, citing RTE News, reported that receivers Michael
McAteer and Paul McCann of accounting firm Grant Thornton have
been appointed to oversee the debts and associated property assets
of Ray and Danny Grehan.  Emmet Oliver and Donal O'Donovan at related that Mr. Grehan said he had signed a
memorandum of understanding with NAMA in December, but the agency
still moved to place his Irish and UK assets in receivership.  For
its part, NAMA said such an agreement did not mean that borrowers
were exempt from enforcement action, disclosed.

Glenkerrin is the developer behind the Arcadia project in central

HEALTHCARE LOCUMS: Investors Launch Legal Action
Gill Plimmer at The Financial Times reports that investors in
Healthcare Locums launched a legal action against the company and
its banks on Wednesday just hours after an annual meeting.

According to the FT, about 5 to 10 shareholders, representing 30%
of the group, are suing in an attempt to prevent a refinancing
deal, which they say could dramatically dilute, or even wipe out,
smaller investors.

Investigators from Grant Thornton have been conducting a forensic
probe into the medical recruitment business, which replaced almost
all of its board in the wake of the decision to suspend its shares
due to alleged accounting irregularities, the FT relates.

The company has until July 25 to relist the shares but is
considering a number of options, including a re-financing backed
by Toscafund, its second largest shareholder, the FT says.  The
private equity investor is understood to be proposing to buy the
bulk of HCL's GBP130 million of debt, which it would use for a
debt-for-equity swap, the FT discloses.

Healthcare Locums is a UK-based medical recruitment agency.

HMV GROUP: Completes Sale of Waterstone's Book Chain to A&NN
Claer Barrett at The Financial Times reports that HMV Group has
completed the GBP53 million (US$84 million) sale of its book chain
Waterstone's to A&NN Group, a company controlled by the Russian
tycoon Alexander Mamut.

The deal, which shareholders voted on at the company's
extraordinary meeting last Thursday, is the latest chapter in a
turbulent year for HMV, the FT notes.  Sales of CDs and DVDs have
been eroded by the rise of digital downloads, causing the indebted
company to issue three profit warnings since January, the FT

According to the FT, the sale of Waterstone's will enable HMV to
complete a refinancing deal thrashed out with its consortium of
lenders this month, albeit on onerous terms.

The company's market capitalization has dwindled to GBP41.5
million and its share price has fallen 82% in the last year, the
FT states.

A&NN has paid GBP40 million in cash for Waterstone's, with the
remainder payable on October 31, together with a further payment
to compensate for agreed levels of working capital and retained
cash, the FT discloses.

United Kingdom-based HMV Group plc is engaged in retailing of pre-
recorded music, video, electronic games and related entertainment
products under the HMV and Fopp brands, and the retailing of books
principally under the Waterstone's brand.  The Company operates in
four segments: HMV UK & Ireland, HMV International, HMV Live, and
Waterstone's.  HMV International consists of HMV Canada, HMV Hong
Kong and HMV Singapore.  Waterstone's is a bookseller, which
operates through 314 stores and a transactional Web site for the
sale of both physical and e-books for download.  The Company has
operations in seven countries, with principal markets being the
United Kingdom and Canada.  Its retail businesses operate through
417 stores in the United Kingdom, Canada, Hong Kong and Singapore.
On Jan. 29, 2010, the Company completed the acquisition of MAMA
Group Plc.  Its subsidiaries include HMV Canada Inc, HMV Guernsey
Limited, HMV Hong Kong Limited, and HMV (IP) Limited.

JANE NORMAN: Closes Cheshire Branches Following Administration
Katie Bamber at Ellesmere Port Pioneer reports that Jane Norman
has closed its Chester branch following its fall into

The retailer closed 90 UK outlets, including those on Eastgate
Street, Chester, and in Cheshire Oaks Designer Outlet, Ellesmere
Port, after a decline in sales, according to Ellesmere Port

The report notes that 33 branches have since been sold to The
Edinburgh Woollen Mill.  The knitwear firm, the report adds, is in
discussions with administrators over the possible purchase of a
further 28 stores.

Ellesmere Port Pioneer says that the remaining 33 Jane Norman
outlets in the UK and Ireland will be closed, with administrators
yet to confirm whether Cheshire's branches will escape the axe.

Jane Norman concessions in Debenhams department stores, including
Browns of Chester, will continue to trade until a sale can be
secured, according to the report.

"We are pleased to have ensured the survival of such a familiar
presence on the High Street, while securing the jobs of at least
396 Jane Norman employees.  Unfortunately the sale has resulted in
job losses, which we appreciate is difficult news for those
involved.  We would like to thank them for their professionalism
and support during what has been an uncertain time," the report
quoted Alastair Beveridge, a partner in administrators Zolfo
Cooper, as saying.

KILBRIGHT DEVELOPMENT: Had Mortgages on Two Private Planes
BBC News reports that Kilbright Development once had mortgages on
two private jets.  The company, owned by businessman Paul Neill,
was the subject of a High Court winding-up order earlier this

The planes were a Hawker 400XP and a Hawker 850XP, BBC News

BBC News says the mortgages were satisfied sometime ago although
the relevant filings had not been made to Companies House.

According to BBC News, the firm's other assets were sites in
Belfast city centre and Hillsborough in County Down.  These were
also sold some time ago.

The mortgages for the planes were advanced by Bank of Scotland
Ireland (BoSI) in 2007 and 2008, the report notes.

BoSI, says BBC News, was a major lender to developers during
Ireland's property bubble.

Kilbright Development is a Belfast property company.

KINETICS GROUP: Landlords Hit by Firm's Fall Into Administration
Inside Housing reports that landlords in the north of England have
been scrambling to find cover after several subsidiaries of
contractor Kinetics Group collapsed.

Kinetics Group went into administration on June 16.

Administrator Zolfo Cooper has since announced Cameron Industrial
Services, which provides refurbishment works, and maintenance
company Lord Group, have ceased trading, along with the parent
company, according to Inside Housing.  The companies operated
mainly in northwest England.

Inside Housing notes that Kinetics subsidiaries Sureway Gas, TA
Horn, and Wallmotts have been sold to a new company called SCP
Renewable Energy, owned by Kinetics majority investor Sovereign
Capital, and will continue trading under the Kinetics name.

Chris Cheshire, chief executive of Kinetics Group, blamed the
'cut-throat' pricing of contracts by landlords for the demise of
part of its business, the report discloses.

Inside Housing relates that Zolfo Cooper said 647 jobs have been
saved but 273 staff have been made redundant with immediate effect
while a further 200 workers on a contract for Liverpool Mutual
Homes are waiting to see if their jobs are safe.  Kinetics Group
believes three quarters of these 477 workers can be re-employed by
or transferred to other firms.

The report notes that City West Housing Trust, which owns 14,000
homes in Manchester, had a GBP12 million, four-year contract with
Kinetics to improve empty properties since last August.  Insider
Media relates that the association has now transferred the work to
Preston-based firm Forrest on a nine-month contract, and the 40-
strong workforce has transferred over.

"We did have some issues with Kinetics and their performance.
Subcontractors were walking off site because they had not been
paid," Insider Media quoted Collette McKune, director of asset
management at City West, as saying.  "Our supply chain had become
nervous about us following press pieces. There's a probability
that happened, but I can't say for sure," he added.

The report relates that Riverside had around GBP4 million of
Kinetics contracts including six covering planned maintenance.  A
spokesperson said the association was 'reviewing its options,
Insider Media notes.

Other associations, including Manchester-based 5,900-home
association Southway Housing Trust, ended its Kinetics contracts
earlier, the report says.

Jane Gant, director of regeneration and asset management at
Southway, said the association had terminated a contract with Lord
Group in January because of 'problems with Kinetics suppliers,'
Insider Media adds.

LORD NUFFIELD: Brookes University Urged to Reveal Plans for Club
The Oxford Times reports that Brookes University is being urged to
reveal whether it has clinched a deal to buy Lord Nuffield Club in
Cowley, Gloucestershire, England.

Locals have submitted their own bid to try to save the club after
it went into administrative receivership, according to The Oxford
Times.  However, the report relates, the locals claim plans have
been scuppered by the bidding power of Brookes University.

The Oxford Times says that residents have now organized a petition
expressing concern about the loss of a community facility if a
sale to Brookes University goes ahead.  The report notes that they
fear it will result in student accommodation or social facilities
being built on the site.

Brookes University released a statement to the Oxford Mail
suggesting that some community access to the site will remain
following any deal, the report discloses.

NUFFIELD PRESS: Goes Into Administration, Axes 53 Jobs
Oxford Mail reports that Nuffield Press has gone into
administration, with the loss of 53 jobs.

Only a skeleton staff of 14 has been kept on while administrators
from accountancy firm BDO continue negotiations with a possible
buyer, according to Oxford Mail.

"The economic climate and difficult trading conditions have
significantly affected the business.  However, we are
investigating the possibility of a sale as a going concern,
"Oxford Mail quoted Martha Thompson, BDO's business restructuring
partner, as saying.

Nuffield Press is a printing company founded in 1925 by Lord


* BOOK REVIEW: Big Business Too Big?
Author: Morris L. Ernst.
Publisher: Beard Books
(reprint of 1940 book published by Morris L. Ernst)
314 pages
List Price: $34.95 trade paper

The author Ernst had an acquaintance with the noted Supreme Court
Judge Louis D. Brandeis to have many talks with him on political
topics when both were lawyers in the Northeast.  Ernst's own views
on the bigness of organizations were shaped by Brandies.  Bigness,
i.e., cautions against it because of dangers inherent in it, was a
central political and juridical concern of Brandeis.  In an
article titled "The Curse of Bigness" from the early 1900s not
long before he was named to the Supreme Court by President Woodrow
Wilson, Brandeis wrote the cautionary words, "[B]oth the financial
concentration and the combinations which they have served were, in
the main, against the public interest . . . Size . . . is not a
crime . . but may become noxious by reason of the means through
which it was attained and the uses to which it was put."  Brandeis
ends the passage with a contrast between natural growth leading to
bigger size and "combination" (mergers, etc.) to increase size
with the aim of concentrating power and monopolizing a field.

Ernst took his topic from Brandeis.  And his perspective is
roughly the same.  While having the breadth and consistency
practically of a worldview, the outlook nonetheless has subtlety
and realism in recognizing that not all large-sized, dominating
organizations are against the public interest.  There are
practical and economic reasons for large-sized organizations.
Utilities and transportation systems must of necessity be large,
extensive, and permanent to provide their services for the public
efficiently, economically (which means lower costs for users), and
dependably. The Federal government too and governments of more
populous states are necessarily large. As a counterbalance to this
however, Ernst, like Brandeis, supports strong, vibrant, and
meaningful civil rights.  In most cases, bigness is undesirable
and in some cases (e. g., the Communist government of Russia)
positively threatening not only because of its effects on an
economic system, but also direct effects on the lives of

Ernst introduces his topic in theoretical terms.  He will seek
answers to questions such as "How soon do responsible division
chiefs start to avoid responsibility and by delay or other devices
start to 'pass the buck'?"; "Can a farm be run from a control
office giving instructions to be carried out hundreds of miles
away at a different climate and at a different plane above sea
level?"; "Do telephone wires from the vice presidents in New York
replace the contribution of personal contact?" These same
questions are again being raised today.

While beginning on a theoretical note, Ernst quickly moves to his
own experiences and examples from the daily media which would have
been familiar to readers of the day (1940 when the book was
originally published).  Parts of chapters are like anecdotes.
Most of the content is from Ernst's wide-ranging work as a lawyer,
involvement with other professionals, and contacts with all kinds
of persons, businesses, and government agencies.

The book is not a dry political, economic study.  Chapter titles
reflect the relatively informal, yet wide-ranging, germane, and
engaging content.  Lords and Laborers is the chapter title for the
steel industry; Nickels and Dimes, for banking; Supercolossal, for
the movie industry; The Staff of Life, the retail sector, and so

Ernst's topics on the negative side of oversized, dominating
organizations and his balanced perspective too are timeless.
Although the landscape of American business has changed from when
the book first appeared, it is relevant in this day when the
phrase "too big too fail" has become a central economic and social

Morris Leopold Ernst (1888-1976) was a principle at the top New
York City law firm Greenbaum, Wolff, and Ernst.  During his career
in law, he also held several posts in government.


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

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

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

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


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

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

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

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

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

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

                 * * * End of Transmission * * *