TCREUR_Public/110707.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Thursday, July 7, 2011, Vol. 12, No. 133



SOCIETE NATIONALE: S&P Revises Stand-alone Credit Profile to 'BB-'


SPCM SA: S&P Raises Long-term Corporate Credit Rating to 'BB'
TEREOS EUROPE: Moody's Assigns 'Ba3' Corporate Family Rating


P21: Heliocentris Energy Acquires Firm Out of Insolvency
UNICREDIT BANK: S&P Affirms Rating on Class F Notes at 'BB'


NEWLEAD HOLDINGS: PwC S.A. Raises Going Concern Doubt


* HUNGARY: Compulsory Liquidations Up 65% in First Half 2011


IRISH LIFE: ISDA Says Restructuring Credit Event Occurred in Firm
O'KEEFFE GROUP: Gets Out of Examinership; Saves About 200 Jobs
PRENTICE CARS: Faces Liquidation; Creditors' Meeting Set


BITE FINANCE: Moody's Changes Outlook on 'Caa1' CFR to Stable
HIGHLANDER EURO: S&P Affirms Rating on Class E Notes at 'CCC-'


THINK GLOBAL: Trustee in Rescue Talks With BD Otomotive


CAIXA CATALUNYA: Moody's Downgrades Rating on GAT FTGENCAT 2007


QUINN INVESTMENTS: Court Agrees to Appoint Bankruptcy Receiver
SAAB AUTOMOBILE: Sweden's NDO Clears 50.1% Stake Sale
* SWEDEN: Corporate Failures Down 17% Year-on-Year in June 2011


VTB UKRAINE: Fitch Assigns 'B+' Rating on Senior Unsecured Bonds

U N I T E D   K I N G D O M

BRIDGE BUSINESS: Goes Into Administration, Senior Partner Quits
GENERAL STORE: Goes Into Administration, Closes Deansgate Shop
GOLDTRAIL TRAVEL: Collapse Results to ATT's Deficit Increase
HARDINGS: Goes Into Administration, 58 Employees at Risk
INEOS GROUP: S&P Affirms Counterparty Credit Rating at 'B-'

LE SPA: To Go Into Insolvent Liquidation
MCKEAN & CO: Administration Causes Road Tailbacks
QUANTUM SADDLE: Ceases Trading Due to Saddle Design Fault
RUSHDEN & DIAMONDS: To Enter Into Receivership, Club Insolvent
SILENTNIGHT: Regulator Probe Firm's Pre-pack Administration

TALISMAN 6 PLC: Fitch Lowers Rating on Class F Notes to 'Csf'
TITAN EUROPE: Moody's Reviews Ba1 Rating for Possible Downgrade


* Upcoming Meetings, Conferences and Seminars



SOCIETE NATIONALE: S&P Revises Stand-alone Credit Profile to 'BB-'
Standard & Poor's Ratings Services lowered its long-term issuer
credit rating on Belgium's 100% state-owned railway group holding
Societe Nationale des Chemins de Fer Belges Holding to 'AA-', from
'AA'. The short-term issuer credit rating is unchanged at 'A-1+'.
At the same time, the ratings were removed from CreditWatch, where
they were placed with negative implications on Dec. 16, 2010. The
outlook is negative.

The downgrade follows ongoing financial difficulties at SNCBH's
100% owned subsidiary SNCB, Belgium's national rail operator. SNCB
reported negative EBITDA of EUR181 million for the year ended
Dec. 31, 2010. The company's performance fell short of its
budgetary objectives, leading to an increase in debt at the SNCB
group (comprising SNCBH, dominant Belgian rail operator SNCB [not
rated], and national rail infrastructure operator Infrabel

"Although the SNCB group has implemented a restructuring plan
aimed at reversing the losses at SNCB, in our view this is
unlikely to restore credit metrics to a level that we consider
commensurate with the previous rating. This deterioration in
creditworthiness has led us to revise our view of the stand-alone
credit profile (SACP) on SNCBH to 'bb-' from 'bb+', and to lower
its long-term issuer credit rating to 'AA-'," S&P stated.

"The ratings on SNCBH continue to reflect our opinion that the
likelihood of timely and sufficient extraordinary support from the
Kingdom of Belgium (AA+/Negative/A-1+; unsolicited ratings) to
SNCBH is 'extremely high,'" S&P stated. S&P based this view on

    "Very important" role for the Belgian government, as the
    holding company of the Belgian national railway group (the
    SNCB group). SNCBH is the sole owner of SNCB; the owner of
    93.61% of Infrabel, of which SNCBH holds 20% of the voting
    rights, less one vote; and one of Belgium's largest employers.

    "Integral" link between SNCBH and the Belgian state, its sole
    owner, given SNCBH's strong legal status as an autonomous
    public body, which prevents its bankruptcy and makes the
    Kingdom of Belgium ultimately responsible for its obligations.

"The negative outlook mirrors that on the Kingdom of Belgium and
reflects our expectation of the extremely high likelihood that the
Belgian state would provide extraordinary support to SNCBH if
needed. Adverse changes in the national or European regulatory
framework, or in SNCBH's statutory framework, could lead us to
reevaluate the likely support from the Belgian state, and may
result in a multi-notch downgrade of SNCBH. In addition, changes
in the ratings or outlook on the Kingdom of Belgium could lead to
corresponding changes to those on SNCBH," S&P related.

"At the current rating level, we anticipate that the SNCB group
will have positive operating cash flows in 2012. We also
anticipate that the combined cash flows of SNCBH and SNCB will be
positive. Failure to return to positive operating cash flows by
the end of 2012 could therefore put pressure on the ratings. The
ratings could also come under pressure if liquidity does not
remain adequate, or if group debt levels rise beyond our current
expectation. A reduction of the level of subsidies provided by the
Kingdom of Belgium, which support both ongoing operations and new
investment, or the signing of new management contracts that are
less favorable to the group's companies than in the past, could
also lead to a downgrade," S&P stated.

"Prospects for a positive rating action are currently limited due
to our current expectation of extraordinary government support and
SNCBH's SACP," S&P said.


SPCM SA: S&P Raises Long-term Corporate Credit Rating to 'BB'
Standard & Poor's Ratings Services raised its long-term corporate
credit on France-based chemical producer SPCM S.A. (SNF) to 'BB'
from 'BB-'. The outlook is stable.

"In parallel, we raised the rating on SNF's senior unsecured bonds
to 'BB' from 'BB-', in line with our upgrade of the company. The
recovery rating of '4' on the bonds remains unchanged, indicating
our expectation of average recovery (at the low end of the 30% to
50% range)," S&P related.

"The upgrade follows our reassessments of SNF's business risk
profile as satisfactory versus fair and its financial risk profile
as significant versus aggressive. SNF has been able to materially
increase revenues and EBITDA in the past years, thanks to robust
end-market growth and new capacities, which we expect will
continue. The rating action also incorporates our expectations
that the company's financial policy, liquidity, and key credit
metrics will continue to support the ratings. We view a Standard &
Poor's adjusted ratio of funds from operations (FFO) to debt at
about 25% as commensurate with the ratings," S&P stated.

SNF, the largest producer in the world of polyacrylamides with a
reported 42% of the global production capacity, posted sales of
EUR1.4 billion in 2010 and EBITDA of about EUR180 million.
Standard & Poor's-adjusted debt reached about EUR440 million on
Dec. 31, 2010.

"The stable outlook reflects our assumption that the company will
enjoy material volume growth, driven by wider EOR applications and
major capacity additions. This should lead to EBITDA in the
vicinity of EUR200 million per year under our base-case scenario.
The ratings also factor in continued adequate liquidity and
significant covenant leeway. We view FFO to debt at about 25% as
commensurate with the rating," S&P noted.

"We might consider a negative rating action if SNF's adjusted FFO
to debt ratio were to drop to below 25%, without near-term
prospects of recovery, and if it were to adopt less supportive
financial policies or generate prolonged negative free operating
cash flow (FOCF). We also would expect management to swiftly
reduce growth capex in case of testing industry conditions,"
according to S&P.

"Rating upside is unlikely in our view, given the company's
sizable growth plans that constrain FOCF and limit enhanced credit
metrics," S&P said.

TEREOS EUROPE: Moody's Assigns 'Ba3' Corporate Family Rating
Moody's Investors Service has affirmed Tereos's Ba3 Corporate
Family Rating and Probability of Default Rating as well as the B1
rating on the EUR500 million bond issued at Tereos Europe and
changed the rating outlook to stable from negative. The rating
action reflects Tereos's improved operating performance following
a favorable pricing environment for both its sugar beet and
sugarcane operations as well as an improved liquidity position
following the refinancing of a significant portion of the
company's debt during the last 12 months.


"The action reflects the improvement in Tereos' operating
performance since 2008/09 with credit metrics trending towards
Moody's target guidance for a well-positioned Ba3 CFR and an
improved liquidity profile which is the result of the refinancing
of short-term lines by longer-term facilities", says Sebastien
Cieniewski, Moody's lead analyst for Tereos. Moody's expects the
company to continue benefiting from a favorable pricing
environment for its sugar beet and sugarcane divisions based on
the existing dynamics in the world supply and demand for sugar.

Moody's cautions that the expected de-leveraging is mostly based
on an increasing EBITDA while a debt reduction is constrained by
the company's large capex program over the next few years in order
to reinforce its position in the Brazilian sugarcane market.
Moody's considers that Tereos's expansion in the Brazilian market
represents an opportunity for the company to diversify its
activities to faster growing markets than the European Union;
however, Moody's also notes that this diversification brings
additional volatility to the business profile due to the non-
regulated nature of the sugarcane market in Brazil.

The stable outlook on the rating reflects Moody's expectation that
Tereos's credit metrics will improve at the end of FY 2010/2011
with an adjusted debt to EBITDA below 4.0x. Moody's also notes
that the company's pursuit of growth is likely to preclude
significant reductions in the absolute amount of debt on its
balance sheet, leaving improvements due to increases in EBITDA
vulnerable to reversal. The stable outlook also reflects Tereos'
improved liquidity profile. Moody's will continue to monitor the
execution of the partnership with Petrobras and any further
expansion into Brazil or elsewhere.

In Moody's view, positive pressure on the rating is unlikely in
the short-term. However, upwards pressure could develop if Tereos
were to demonstrate a strengthening in cash flow generation and
operating performance, and a track record of deleveraging with a
debt/EBITDA ratio comfortably below 3.5x on a sustained basis.

Conversely, negative rating pressure could develop if: (i)
Tereos's debt/EBITDA ratio were to remain above 4.0x on a
consistent basis; (ii) its liquidity were to tighten; or (iii)
concerns were to develop about continued access to credit

The principal methodology used in rating Tereos was the Global
Agricultural Cooperatives Industry Rating Methodology, published
March 2010. Other methodologies used include Loss Given Default
for Speculative Grade Issuers in the US, Canada, and EMEA,
published June 2009.

Headquartered in Lille, France, Tereos is the third-largest
European producer of sugar from sugar beet, the third largest
European producer of starch and alcohol from cereals and a leading
Brazilian producer of sugar and ethanol from sugar cane. The
company posted EUR3.5 billion of revenues for the year ending
September 2010.


P21: Heliocentris Energy Acquires Firm Out of Insolvency
Renewable Energy Focus reports that Heliocentris Energy Solutions
has purchased all assets of the bankrupt P21 through a new
subsidiary.  The Creditors' Assembly has approved of the
acquisition, according to the report.

Heliocentris Energy's Chief Executive Officer, Dr. Henrik Colell,
says: "For a long time, we have regarded company acquisitions as a
growth option. This step will also accelerate our entry into
industrial business. Promising negotiations with regard to major
projects are already ongoing."

Headquartered near Munich, P21 develops, produces and markets
energy-management solutions for the telecommunications industry.
The company filed for insolvency in March 2011.

UNICREDIT BANK: S&P Affirms Rating on Class F Notes at 'BB'
Standard & Poor's Ratings Services raised its credit ratings on
UniCredit Bank AG's Building Comfort 2008's class D+ and E+ notes.
"At the same time, we lowered and removed from CreditWatch
negative our ratings on the class A+, B+, and C+ notes and
affirmed our rating on the class F notes," S&P said.

"The rating actions follow our analysis of the transaction's
performance and the application of our 2010 counterparty
criteria," S&P related.

Since closing, credit enhancement levels provided through
subordination have increased due to amortization of the underlying
pool. In addition to subordination, synthetic excess spread has
also provided credit enhancement to the rated classes of notes.

"As per the latest investor report received on the last interest
payment date of June 27, 2011, cumulative losses have increased to
what we consider to be a low amount at EUR224,273. Excess spread
covered realized losses, which resulted in the unrated class G
notes remaining fully funded at EUR19,250,000, providing further
credit support to the rated classes of notes. Excess spread in
this transaction -- available on a use-or-lose basis -- equals
2.25 basis points of the performing balance of the pool in each
quarter," S&P stated.

"Total delinquencies currently total EUR19,178,826, of which
EUR2,230,386 comprise 90+ days arrears, 0.11% of the pool's
balance to date. Since August 2010, when UniCredit Bank introduced
a new reporting system that excluded credit events from reported
arrears, we have observed that 90+ days arrears remain constantly
below 0.18%. We consider credit events to be rising moderately,
amounting to EUR12,626,843 to date. Furthermore, the transaction's
recovery rate stands at about 83%," S&P stated.

"Considering realized losses and delinquencies to date, and taking
historical recovery rates in this particular portfolio into
account, we have assessed the likelihood of future losses for both
the performing and nonperforming parts of the collateral pool,"
S&P related.

"Following our review, we have therefore raised the ratings on the
class D+ and E+ notes due to increased credit support provided by
the class F and G notes and available excess spread," S&P noted.

"On Jan. 18, 2011, we placed on CreditWatch negative the ratings
on the class A+, B+, and C+ notes when our 2010 counterparty
criteria became effective," S&P noted.

"We have since applied our counterparty criteria and have lowered
and removed from CreditWatch negative the ratings on the class A+,
B+, and C+ notes. We have lowered the ratings to 'A+ (sf)' as the
transaction documents do not fully reflect our updated criteria,
but do meet certain requirements to achieve a rating higher than
the ratings floor. Based on our analysis, we have adjusted the
maximum potential rating the tranche can achieve, as described in
our updated counterparty criteria, and then lowered the rating
accordingly," S&P stated.

"Finally, we affirmed our rating on the class F notes, as we
consider the current credit enhancement to be commensurate with
the creditworthiness of these notes," S&P noted.

The pool factor in the Building Comfort 2008 transaction is down
to 57%. "Additionally, we will continue to monitor the development
of credit events and actual losses in the transaction," S&P

Building Comfort 2008 is a synthetic, partially funded German
residential mortgage-backed securities transaction issued by
UniCredit Bank.

Ratings List

Class       To               From

UniCredit Bank AG (Building Comfort 2008)
EUR34.5 Million Floating-Rate Credit-Linked Notes

Ratings Raised

D+         A+ (sf)           A (sf)
E+         A (sf)            BBB (sf)

Ratings Lowered and Removed From CreditWatch Negative

A+         A+ (sf)           AAA (sf)/Watch Neg
B+         A+ (sf)           AAA (sf)/Watch Neg
C+         A+ (sf)           AA (sf)/Watch Neg

Rating Affirmed

F          BB (sf)           BB (sf)


NEWLEAD HOLDINGS: PwC S.A. Raises Going Concern Doubt
NewLead Holdings Ltd. filed on July 1, 2011, its annual report on
Form 20-F for the fiscal year ended Dec. 31, 2010.

PricewaterhouseCoopers S.A., in Athens, Greece, expressed
substantial doubt about NewLead Holdings' ability to continue as a
going concern.  The independent auditors noted that the Company
has incurred a net loss and has negative cash flows from

The net loss for the year ended Dec. 31, 2010, and for the periods
from Jan. 1, 2009, to Oct. 13, 2009, and from Oct. 14, 2009, to
Dec. 31, 2009, was US$94.8 million, US$125.8 million and
US$37.9 million, respectively.  These losses included income from
discontinued operations of US$2.8 million for the year ended
Dec. 31, 2010, and losses of US$30.3 million and US$2.0 million
for the periods from Jan. 1, 2009, to Oct. 13, 2009, and from
Oct. 14, 2009, to Dec. 31, 2009, respectively, which were related
primarily to the Company's strategic decision to exit from the
container market.

Comparison between these two years is of limited value as a result
of the recapitalization on Oct. 13, 2009.  The period from Jan. 1,
2009, to Oct. 13, 2009 (prior to the recapitalization) is reported
as the predecessor period and the period from Oct. 14, 2009, to
Dec. 31, 2009 (after the recapitalization) is reported as the
successor period.

The Company's balance sheet at Dec. 31, 2010, showed
US$761.7 million in total assets, US$686.1 million in total
liabilities, and stockholders' equity of US$75.6 million.

A copy of the Form 20-F is available at

Headquartered in Piraeus, Greece, NewLead Holdings Ltd. (NASDAQ:
NEWL) is an international, vertically integrated shipping company
that owns and manages product tankers and dry bulk vessels.  As of
June 29, 2011, NewLead controlled 22 vessels, of which 19 are in
operation, including six double-hull product tankers, 13 dry bulk
vessels and three dry bulk newbuilds.


* HUNGARY: Compulsory Liquidations Up 65% in First Half 2011
According to The Budapest Business Journal,, citing
business data registry Opten, reports that compulsory liquidations
in Hungary rose to an all-time high in June.

Opten, as cited by BBJ, said some 9,500 businesses have been
forced into liquidation in the first six months of this year, the
highest ever semi-annual figure, and the numbers are still rising.

The number of voluntary liquidation surged 65% to nearly 12,000 in
January-June compared to the same period in 2010, BBJ discloses.
In June alone, more than 2,100 companies were put into liquidation
by creditors, BBJ states.

The steep rise in the number of voluntary liquidations is down
mainly to recently enforced regulations aimed to crack down on
companies that fail to file their balance sheets with the
authorities on time, Opten said, adding that more than 100,000
companies out of the 560,000 active in Hungary could eventually go
out of business that way, BBJ relates.

BBJ notes that Csorba said the number of forced and voluntary
liquidations is likely to hit 19,000 and 25,000 respectively this


IRISH LIFE: ISDA Says Restructuring Credit Event Occurred in Firm
The International Swaps & Derivatives Association said in a
statement on its Web site that its EMEA Credit Derivatives
Determinations Committee resolved that a Restructuring Credit
Event occurred in respect of Irish Life & Permanent plc.

The Committee determined on July 5 that one or more auctions may
be held in respect of outstanding CDS transactions of varying
maturity "buckets," according to the statement.

ISDA said it will publish further information regarding the
potential auctions on its Web site --
-- in due course.

The EMEA Credit Derivatives Determinations Committee, on June 21,
resolved that a Failure to Pay credit event occurred in respect of
Allied Irish.  The Committee also voted to hold senior and
subordinated auctions for Allied Irish Banks in respect of the
Failure to Pay credit event.

The June 21 announcement followed a June 13 determination that a
Restructuring credit event occurred in respect of Allied Irish
Banks and that an auction may be held.  The Restructuring Auction
resolution had been made by the Committee on the understanding
that if a Failure to Pay credit event occurred prior to the date
of the auction for the Restructuring credit event, the auction may
be held on the basis of the Failure to Pay credit event, rather
than the Restructuring credit event.  Thus, the Committee also
voted on June 21 that there will not be an auction held on the
basis of the Restructuring credit event, the ISDA said in a prior
statement on its Web site.

Headquartered in Dublin, Irish Life & Permanent plc -- is a provider of personal
financial services to the Irish market.  Its business segments
include banking, which provides retail banking services; insurance
and investment, which includes individual and group life assurance
and investment contracts, pensions and annuity business written in
Irish Life Assurance plc and Irish Life International, and the
investment management business written in Irish Life Investment
Managers Limited; general insurance, which includes property and
casualty insurance carried out through its associate, Allianz-
Irish Life Holdings plc, and other, which includes a number of
small business units.  On June 30, 2008, it acquired the rest of
the 50% interest in Joint Mortgage Holdings No. 1 Limited (the
parent of Springboard Mortgages Limited), resulting in Springboard
Mortgages becoming a wholly owned subsidiary.  On December 23,
2008, it acquired an additional 23% of Cornmarket Group Financial
Services Ltd, bringing its interest to 98%.

O'KEEFFE GROUP: Gets Out of Examinership; Saves About 200 Jobs
John Mulligan at Irish Independent reports that the O'Keeffe
Group, the company behind Petmania outlets, has exited
examinership, safeguarding roughly 200 jobs at the group.

The group entered examinership in March as it sought to
restructure its operations amid a tougher economic environment,
Irish Independent recounts.

Irish Independent relates that Shane O'Keeffe, managing director
of the O'Keeffe Group, said the examinership process had
facilitated a "cost restructuring" that he maintained would ensure
the future viability of the company.  According to Irish
Independent, he said a scheme of arrangement presented to the High
Court would provide for "long-term success".

One Petmania branch, in Drogheda, closed last month, Irish
Independent discloses.  The group renegotiated a number of its
rent agreements, Irish Independent notes.

O'Keeffe Group is a family-owned company based in Kilkenny.  It
operates 14 Petmania outlets around Ireland, as well as the
Meubles furniture store, a wine outlet and a garden center.

PRENTICE CARS: Faces Liquidation; Creditors' Meeting Set
Clare Weir at Belfast Telegraph reports that Prentice Cars could
go into liquidation within weeks after borrowing heavily from one
of its sister companies.

Belfast Telegraph relates that the company ceased trading late
last month with the loss of 10 jobs.

According to Belfast Telegraph, a meeting of Prentice Cars'
creditors is due to take place at the offices of Belfast business
advisory firm Harbinson Mulholland later this month.

A spokesman for Harbinson Mulholland, as cited by Belfast
Telegraph, said that the meeting would take place "with a view to
putting the firm into liquidation".

Accounts for the year ended 2009, filed in September 2010, showed
that an investment by Prentice Cars in a subsidiary company,
Paul Prentice Properties Limited, was fully written off resulting
in a loss after tax of GBP389,777, Belfast Telegraph discloses.

The write-off, described in an independent auditor's report as
"exceptional" meant that liabilities exceeded assets by
GBP236,188, Belfast Telegraph notes.

Prentice Cars is based at the Armagh Road in Portadown.  The
company has held a franchise to sell Suzuki vehicles since 1990.


BITE FINANCE: Moody's Changes Outlook on 'Caa1' CFR to Stable
Moody's Investors Service has changed the rating outlook for Bite
Finance International B.V to stable from negative. The corporate
family and probability of default ratings for the company are
affirmed at Caa1; as are the Caa2 rating on the senior secured
Notes due 2014 and the Caa3 rating on the stub unsecured notes due

The stabilization of the outlook mainly reflects the relative
improvement in Bite's liquidity profile and the company's return
to positive free cash flow generation in 2010.

In its unaudited results for Q1 2011, Bite reported cash on hand
of EUR3.9 million as of March 31, 2011, and undrawn availability
of EUR24 million under its EUR30 million RCF. Bite is required to
prepay part of the revolving credit facility with any excess cash
flow from operations. Given that the company does not face
material debt maturities before 2014, the improving headroom under
its RCF should leave the company with adequate financial
flexibility for the next 12-18 months. Moody's also assumes that
Bite will be able to refinance its RCF (due June 2013) in a timely

Bite's revenues have remained under pressure in 2010 (year-on-year
decline of 7.4%) and Q12011 (y-o-y decline of 2.5%, as reported in
the unaudited results for the quarter), driven by the difficult
economic conditions in Lithuania and Latvia as well as by the
marked decline in interconnect rates. The company was able to
improve its EBITDA by 17% over 2009 to EUR39 million in 2010 (from
EUR 33 million in 2009) largely through cost control. In 2010,
Bite's free cash flow (as calculated by Moody's) turned positive
helped by not only EBITDA growth, but also a decrease in cash
capex to EUR10.8 million at 6% of revenue (from 9% in 2009).
Although cash capex in Q12011 has seen a significant y-o-y
increase supported by stable EBITDA while the revenues continue to
remain under pressure, Moody's stable rating outlook reflects
Moody's expectation that Bite's revenues should stabilize in 2011
and that the company will continue to generate positive free cash
flow during the year.

In 2010, as a result of improved EBITDA and some debt reduction,
Bite's 'Gross debt to EBITDA' ratio (as calculated by Moody's)
improved to 5.3x as of December 31, 2010 from 6.4x a year before.
As Bite faces no material debt maturities before 2014, when its
EUR190 million senior secured notes falls due, near-term de-
leveraging will largely rely on EBITDA growth. Bite has also been
in compliance with its maintenance financial covenants and had a
comfortable headroom of over 30% under its leverage-based
financial covenant as of December 31, 2010.

Bite's Caa1 CFR with a stable outlook reflects (i) the company's
geographic focus on the Lithuanian and Latvian markets, where
economic conditions continued to remain relatively challenging in
Q12011; (ii) its weak market position as a "challenger" in Latvia
and the intense competitive environment in Lithuania; (iii) the
company's gradually improved yet still meaningful leverage; and
(iv) its relatively small scale of operations.

The rating also takes into account (i) the company's established
market position in Lithuania; and (ii) its 22% reported EBITDA
margin in 2010 as well as positive free cash flow generation
during the year.

Renewed negative pressure on the rating is likely to develop
should:(i) a weakening develop in Bite's liquidity position and/
or (ii) Bite's Gross Debt/ EBITDA (as calculated by Moody's)
trends over 5.5x.

Positive rating pressure could develop as (i) the company returns
to sustained top-line growth; (ii) continues to generate positive
meaningful free cash flow and (iii) de-levers to around 4.5x Debt/
EBITDA (as calculated by Moody's) on a sustained basis.

Please see ratings tab on the issuer/entity page on for
the last rating action and the rating history.

The principal methodology used in rating Bite Finance
International B.V was Global Broadcast Industry Methodology
published in June 2008. Other methodologies used include Loss
Given Default for Speculative-Grade Non-Financial Companies in the
U.S., Canada and EMEA published in June 2009.

Bite Finance International B.V. is the Dutch holding company of
the Lithuanian company Bite Lietuva UAB. Bite is a mobile
telecommunications operator in Lithuania and Latvia, which
reported 2010 service revenue of about EUR 174 million. In
February 2007 a private equity consortium led by Mid Europa
Partners acquired Bite through a leveraged buyout for a total
consideration of EUR 443 million.

HIGHLANDER EURO: S&P Affirms Rating on Class E Notes at 'CCC-'
Standard & Poor's Ratings Services took various credit rating
actions in Highlander Euro CDO B.V. and Highlander Euro CDO
(Cayman) Ltd.

Specifically, S&P has:

  * Raised and removed from CreditWatch negative its rating on
    Highlander Euro CDO B.V.'s class A-1 primary notes;

  * Raised and removed from CreditWatch positive its ratings on
    Highlander Euro CDO's class A-2 primary and B primary notes;

  * Raised its ratings on Highlander Euro CDO's class C primary
    and D primary notes; and

  * Affirmed its rating on Highlander Euro CDO (Cayman)'s class E
    secondary notes.

"We note that since we published our last transaction update on
Highlander Euro CDO in December 2009, the amount of assets that we
consider defaulted has reduced to 2% from 16%. In our view, the
reduction in the proportion of defaulted assets has contributed to
an increase in credit enhancement for all the rated notes," S&P

"For this reason, we have raised our ratings on class A-1 primary,
A-2 primary, B primary, C primary, and D primary notes," S&P said.

"The rating on the class D primary notes is constrained to 'CCC+
(sf)' and the rating on the class E primary notes is constrained
to 'CCC- (sf)' by the application of the largest obligor default
test, a supplemental stress test we introduced as part of our
criteria update (see 'Update To Global Methodologies And
Assumptions For Corporate Cash Flow And Synthetic CDOs,' published
Sept. 17, 2009)," S&P stated.

"For this same reason, we have affirmed the rating on the class E
notes to 'CCC- (sf)'," S&P related.

"As of our last rating action, the rating on the class C notes was
constrained at the 'CCC-' level by the application of the largest
obligor default test. Due to changes in the portfolio composition,
we no longer consider it to be constrained by the test," S&P said.

Citibank N.A. (A+/Negative/A-1) and JPMorgan Chase Bank N.A.
(AA-/Stable/A-1+) currently provide currency swaps on the non-euro
assets in the portfolio. "We consider that the exposure to these
counterparties is sufficiently limited that either counterparty's
failure to perform would not affect our ratings on the class A-1
and A-2 notes. As such, we have removed the rating on the class
A-1 notes from CreditWatch negative," S&P stated.

Highlander Euro CDO is a cash flow collateralized loan obligation
(CLO) transaction that securitizes loans to primarily
noninvestment grade corporate firms. Highlander issued the primary
notes and Highlander Cayman issued the secondary notes in August

Ratings List

Class                  Rating
                  To            From

Highlander Euro CDO B.V.
EUR500 Million Secured Floating-Rate and Subordinated Notes

Rating Raised and Removed From CreditWatch Negative

A-1 primary       AAA (sf)      AA+ (sf)/Watch Neg

Ratings Raised and Removed From CreditWatch Positive

A-2 primary       AA+ (sf)      A+ (sf)/Watch Pos
B primary         A (sf)        BBB (sf)/Watch Pos

Ratings Raised

C primary         BBB- (sf)     CCC- (sf)
D primary         CCC+ (sf)     CCC- (sf)

Highlander Euro CDO (Cayman) Ltd.
EUR38.25 Million Secured Floating-Rate Notes

Rating Affirmed

E secondary       CCC- (sf)


THINK GLOBAL: Trustee in Rescue Talks With BD Otomotive
EV World reports that BD Otomotive, a Turkey-based investment
group behind a host of successful corporate ventures across
Europe, is in advanced negotiations with the Norwegian court-
appointed trustee of THINK Global to rescue the brand from

"Our intentions are simple -- to bring THINK out of bankruptcy and
make it the affordable urban EV for Europe it was always designed
to be.  We have the manufacturing capabilities and sales network
to do this, and combined with a core group of retained THINK
talent in Norway we aim to launch new platforms and the next
generation of vehicles if successful in our bid," EV World quotes
BD Otomotive Osman Boyner as saying.

EV World says negotiations between BD Otomotive and the Norwegian
court-appointed Trustee in charge of THINK Global are ongoing.
The negotiations' conclusion will be subject to a further
announcement, EV World notes.

As reported by the Troubled Company Reporter-Europe on June 24,
2011, Automotive News Europe related that THINK Global filed for
bankruptcy in its home market of Norway after attempts to keep the
company going through recapitalization and restructuring failed.
It is the fourth time THINK Global has collapsed financially in
its 20-year history, Automotive News Europe disclosed.

THINK Global AS is a tiny electric car maker.


CAIXA CATALUNYA: Moody's Downgrades Rating on GAT FTGENCAT 2007
Moody's Investors Service has downgraded to A2(sf) from Aa3(sf)
the long-term credit rating on the class A2(G) notes issued by GAT

   -- EUR280.8M A2(G) Note, Downgraded to A2 (sf); previously on
      Mar 25, 2011 Aa3 (sf) Placed Under Review for Possible


The rating action reflects the risk of a potential payment
disruption in the case of a servicer default, as well as the
weakening credit profile of the servicer, insufficient liquidity
and lack of back-up servicer arrangement. However, the revised
rating also captures the benefit of the guarantee for the class
A2(G) granted by the Generalitat de Catalunya (A3/P-2). The rating
action concludes the rating review of the transactions, following
the implementation on March 2, 2011 of Moody's rating guidance
entitled "Global Structured Finance Operational Risk Guidelines:
Moody's Approach to Analyzing Performance Disruption Risk."


Caixa d'Estalvis Unio de Caixes de Manlleu Sabadell i Terrassa
(UNNIM) (not rated) and Caixa Catalunya, Tarragona i Manresa (Ba1)
act as servicer in the transaction. UNNIM is the result of a
merger between Caixa Manlleu, Caixa Sabadell and Caixa d'Estalvis
de Terrassa, where Caixa d'Estalvis de Terrassa originated and
serviced the portion of the portfolio prior to the merger with the
other two entities. Moody's considers the credit quality of the
servicers as being low, with a Ba1-rated entity (Caixa Catalunya,
Tarragona i Manresa) responsible for two-thirds and an unrated
entity (UNNIM) responsible for one third of the outstanding

Moody's has been informed that Caixa Catalunya, Tarragona i
Manresa may appoint a back-up servicer to the transaction.


In terms of credit risk, Moody's views the class A2(G) notes
issued by GAT FTGENCAT 2007, FTA in the single-A range. This view
is based on insufficient liquidity and the lack of a back-up
servicer arrangement. Moody's thinks that a payment disruption
would likely happen if the servicer(s) defaulted.

However, as the notes benefit from an irrevocable and
unconditional guarantee of Generalitat de Catalunya, payment
disruption should not exceed the contractual 90-day window for
payment on a guarantee claim. For this reason, Moody's has
maintained the rating at A2(sf), which is above the rating of the

The poor performance of the portfolio led to a full depletion of
the reserve fund and an unpaid PDL of 2.75% of outstanding pool
balance as of March 2011. Liquidity in the transaction is mainly
provided through a single waterfall mechanism, which relies on
principal to be available to pay interest and on the amounts
standing to the reserve fund. Principal collections would be only
beneficial to noteholders in a scenario where the servicer(s) are
able to make and transfer collections. In a scenario where the
servicer(s) default the only source of liquidity is the reserve

The principal methodology used in this rating was Moody's Approach
to Rating CDOs of SMEs in Europe, published in February 2007.
Please see the Credit Policy page on for a copy of
this methodology .

Moody's ratings address the expected loss posed to investors by
the legal final maturity of the notes. The rating agency's ratings
address only the credit risks associated with the transaction.
Moody's has not addressed non-credit risks, which may have a
significant effect on yield to investors.


QUINN INVESTMENTS: Court Agrees to Appoint Bankruptcy Receiver
Laura Noonan at Irish Independent reports that a Swedish court on
Tuesday agreed to appoint a bankruptcy receiver to Quinn
Investments Sweden, which controls the Quinn family's vast
international property empire.

The receiver's appointment came on foot of a petition from
Anglo Irish Bank, which told the courts QIS was insolvent and
unable to pay a EUR2.3 billion debt called in by the nationalized
bank, Irish Independent relates.

The Quinn family had fought the move, arguing that QIS owed Anglo
the much smaller sum of EUR129 million and should not be forced to
liquidate its EUR500 million property portfolio, Irish Independent

According to Irish Independent, a judgment handed down in
Stockholm on Tuesday afternoon confirmed that a bankruptcy
receiver would be appointed, though the court also acknowledged
that QIS only directly owed Anglo EUR129 million.

Anglo's lawyers say QIS is liable for the EUR2.3 billion because
the company has given guarantees for amounts owed by its
subsidiaries, which stretch across Cyprus, Russia and the Ukraine,
Irish Independent notes.

The Quinns are already preparing to mount a legal challenge to
have the Stockholm verdict overturned and the bankruptcy receiver
removed, Irish Independent says.

Even if the bankruptcy receiver stands, extracting value from QIS
for Anglo and other creditors is likely to be a protracted affair,
Irish Independent states.  Irish Independent notes that while
properties under QIS are believed to be worth more than EUR500
million, the assets involved are owned by QIS's complex network of
subsidiaries rather than by QIS directly.

Irish Independent says Anglo has told the Irish courts there is a
real risk some of those properties will be taken out of the QIS
structure before Anglo can get value from them and has secured a
temporary injunction effectively freezing the assets.

Anglo is preparing to begin a hearing for that Irish case next
Wednesday -- despite Tuesday's move, Irish Independent discloses.

Quinn Investments Sweden is the holding company for the
international properties of Sean Quinn's family in Russia, Sweden,
Britain, Turkey and Ukraine.

SAAB AUTOMOBILE: Sweden's NDO Clears 50.1% Stake Sale
Global Insolvency, citing Dow Jones Daily Bankruptcy Review,
reports that Sweden's National Debt Office Tuesday said it has
given its all-clear to Saab Automobile's request to sell 50.1% of
Saab Automobile Property AB, with the final decision on the matter
now resting with the government.

According to Global Insolvency, the NDO considers the Swedish
government to have enough collateral to cover the guarantees for
Saab Automobile's state-backed loans in the European Investment
Bank, even without the shares in Saab Automobile Property.  Global
Insolvency relates that Erik Bratthall, press secretary at the
Swedish Ministry of Enterprise, said the government will now
consider the NDO's recommendation but how long that will take
isn't clear.

Saab Automobile plans to sell 50.1% of Saab Automobile Property to
a consortium of Swedish real-estate investors for a transaction
value of EUR28 million, to ease its acute liquidity crisis, Global
Insolvency discloses.  The property was previously used as
collateral for Saab Automobile's state-backed loans from the EIB,
Global Insolvency notes.  The EIB approved the property sale on
Monday, Global Insolvency recounts.

As reported by the Troubled Company Reporter-Europe on July 1,
2011, The Wall Street Journal related that production at Saab
Automobile has been halted for most of the past three months due
to unpaid supplier bills.  Saab Automobile previously 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, according
to the Journal.

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

* SWEDEN: Corporate Failures Down 17% Year-on-Year in June 2011
M2 Communications, citing business and credit information agency
Upplysningscentralen AB, reports that the number of corporate
failures in Sweden went down 17% year-on-year to 509 in June 2011.

According to M2, the agency said that the fact that there are
fewer bankruptcies shows that the market has now stabilized so
that supply better matches demand.

The bankruptcy count increased by 11% in the construction industry
and by 6% in the retail trade sector, M2 discloses.

UC, as cited by M2, said that the number of bankruptcies in the
first six months of 2011 was at a historically normal level.


VTB UKRAINE: Fitch Assigns 'B+' Rating on Senior Unsecured Bonds
Fitch Ratings has assigned PJSC VTB Bank (Ukraine)'s UAH200
million Series D and UAH300 million Series E senior unsecured
bonds a final Long-term local currency rating of 'B+', a Recovery
Rating of 'RR4' and a National Long-term rating of 'AAA(ukr)'.

The assignment of the final ratings follows the completion of the
issuance and receipt of documents conforming to the information
previously received.

The bank's obligations under the issue will rank at least equally
with the claims of VTBU's other senior unsecured creditors, except
those preferred by relevant legislation. Under Ukrainian law,
retail depositors' claims rank above those of other senior
unsecured creditors. At end-Q111, retail deposits accounted for
14% of VTBU's total liabilities, according to the bank's local
GAAP accounts.

VTBU's ratings are: Long-term foreign currency Issuer Default
Rating (IDR) 'B', Long-term local currency IDR 'B+', Short-term
foreign currency IDR 'B', Individual Rating 'E', Support Rating
'4' and National Rating 'AAA'(ukr)'. The Long-term IDRs and the
National Rating have Stable Outlooks.

VTBU ranked eighth by assets in the country at end-Q111. The
bank's IDRs and National Rating reflect the support it may receive
if needed from its majority shareholder, JSC VTB Bank (VTB,
'BBB'/Stable), which holds a stake of more than 99% in VTBU.

U N I T E D   K I N G D O M

BRIDGE BUSINESS: Goes Into Administration, Senior Partner Quits
Insolvencynews reports that Bridge Business Recovery has gone into
administration with the appointment of Samantha Bewick and Colin
Haig of KPMG as joint administrators on July 1 to Bridge Business
Recovery LLP and Bridge Business Recovery II LLP, the two
partnerships that comprise the firm.

Events leading up to the administration of the firm has been
referred to the City of London Police and the Institute of
Chartered Accountants in England and Wales, according to

KPMG said the affairs, business and property of the partnerships
are being managed by the joint administrators.

The report discloses that the existing partners at Bridge intended
to purchase the business by way of a pre pack administration, but
the court would not approve it on July 1, therefore leading to
KPMG's appointment.

Insolvencynews says that Grant Thornton, FRP Advisory and RSM
Tenon have visited Bridge's offices as the administrators hold
talks with a view to seeking a buyer for the whole or parts of the
business including staff.

Bridge Business Recovery will continue to trade while in
administration.  The company had three main offices in Shaftesbury
Avenue in the west end of London, Tunbridge Wells in Kent and

James Bradney, founder of Bridge and senior partner, is no longer
listed as a partner of the firm as he resigned in the last week of
June, insolvencynews notes.

GENERAL STORE: Goes Into Administration, Closes Deansgate Shop
Simon Binns at Manchester Confidential reports that The General
Store has gone into administration due to financial downturn.

The store's shop on Deansgate has been closed in the process,
according to Manchester Confidential.

"It's with a heavy heart that we had to close the General Store,"
Mr. Binns told Manchester Confidential in an interview.  "It was a
great start for us to put our toe into retail and open a cool
store in a fabulous building but the current horrible financial
climate and a restructuring of our business just meant something
had to give," he added.

GOLDTRAIL TRAVEL: Collapse Results to ATT's Deficit Increase
Breaking Travel News reports that the Civil Aviation Authority
(CAA) has published its annual financial report for the Air Travel
Trust (ATT), revealing an increase in the deficit to GBP42.3

The CAA report showed that ATT received income of GBP47.7 million
during the year ending March 31; substantially from ATOL
Protection Contributions for 18.5 million ATOL protected
passengers, according to Breaking Travel News.

Breaking Travel News notes that the most significant impact on the
trust arose from the insolvency of Goldtrail Travel Limited going
into administration.  The circumstances around this failure remain
under investigation.

As reported by the Troubled Company Reporter-Europe on July 20,
2010, Mark Fry and Edward Taylor of Begbies Traynor were appointed
administrators of Goldtrail Travel on July 16, 2010.

Breaking Travel News says this failure highlighted the poor
standards of customer documentation issued by some in the travel
industry, leading to unacceptable delays in refunds to

Goldtrail Travel Limited is the specialist Greek and Turkey budget
holiday operator based in New Malden, Surrey.

HARDINGS: Goes Into Administration, 58 Employees at Risk
Jon Griffin at Birmingham Post reports that Hardings has closed
after falling into administration with dozens of workers facing
the scrapheap.

The collapse of the company has left just seven workers on site
helping administrators as the firm is wound up after over 70
years, according to Birmingham Post.

Matt Cowlishaw, joint administrator and partner in Deloitte's
Restructuring Services team, said: "As a result of the downturn in
the economy the company suffered lower demand and squeezed
margins.  "Despite attempts at a restructuring, the business was
unable to secure sufficient funding.  Unfortunately, the
administrators have no alternative but to close the business in an
orderly fashion which is ultimately likely to result in the
redundancy of all 58 employees."

Redditch-based Hardings is one of the West Midlands' longest
established coach firms.

INEOS GROUP: S&P Affirms Counterparty Credit Rating at 'B-'
Standard & Poor's Ratings Services revised its outlook to positive
from stable on Swiss-based chemicals producer Ineos Group Holdings
S.A. and on its U.K. sub-holding Ineos Holdings Ltd. "At the same
time, we affirmed our 'B-' long-term corporate credit rating on
Ineos," S&P said.

S&P's rating action factors in:

  * The expected decrease in Ineos' adjusted debt to below EUR7.3
    billion by year-end 2011 (from EUR8.2 billion at year-end
    2010) as a result of the recently announced EUR0.7 billion
    disposal of its 50% refinery stake to CNPC.

  * "The positive impact of the partial disposal on Ineos'
    profitability and free cash flow--we view the disposal price
    as attractive. However, the remaining 50% stake in the
    refining joint-venture is now carved out of the restrictive
    covenants (with the exception of the 2016 senior unsecured
    bonds)," S&P related.

  * A prevailing strong operating performance. "We forecast 2011
    EBITDA for the chemicals activities in excess of EUR1.8
    billion, up from an already strong EUR1.6 billion in 2010.
    This also follows Ineos' record first-quarter 2011 reported
    chemicals EBITDA of EUR577 million," S&P stated.

"Although we have adopted a more positive view on the medium-term
petrochemical environment, we continue to take into account the
cyclicality of profits. For credit purposes, we assume that Ineos'
EBITDA comes down from the top-of-the cycle 2011 level to mid-
cycle estimates of EUR1.5 billion-EUR1.3 billion in 2012-2013.
This compares for instance with our estimate of future financial
charges in the order of EUR600 million, and chemical-related
capital expenditure expected of about EUR300 million annually
under our scenario," S&P related.

"On this basis, we forecast 2011 and future adjusted FFO-to-debt
ratios to improve to 12% or more, from 8% in 2010. Adjusted debt
to EBITDA may be close to 4.0x in 2011, but is likely to be closer
to 5.0x under our mid-cycle assumptions," S&P said.

"The positive outlook reflects the possibility of a one-notch
upgrade over the next 6-12 months, if the operating environment
remains sufficiently supportive, allowing for further
deleveraging, and if we view covenant risk in 2012 and 2013 as
manageable. A successful refinancing that eliminated covenants and
pushed out debt maturities could also trigger an upgrade. At the
'B' level we would expect adjusted ratios of FFO to debt of 12%
under mid-cycle EBITDA assumptions," S&P related.

"We could revise the outlook back to stable in the case of a
deterioration of the global macroeconomic or petrochemical
industry conditions, unexpected negative free cash flow, or
weakening liquidity," S&P said.

LE SPA: To Go Into Insolvent Liquidation
Wilts and Gloucestershire Standard reports that Cirencester-based
healthclub Le Spa has been shut off to members as financial
troubles continue.

According to the Standard, the health spa has been closed since
Monday and is surrounded by fencing to stop its members getting

The Standard relates that a notice put up at the entrance to the
Gloucester Road site stated: "Le Spa is now closed. Le Spa Ltd,
the company which operated Le Spa, is likely to go into insolvent

"Notice of a meeting of creditors will be sent out to creditors
during the course of this week.  If you are a creditor and you
have not received the notice by Monday, July 11, please contact
the company at its head office."

Le Spa Ltd operates Le Spa healthclub in Stratton, Cirencester.

MCKEAN & CO: Administration Causes Road Tailbacks
Chris Marshall at reports that McKean & Co, the
contractor carrying out work on the bridge at Dundee Street, went
into administration on June 13, leaving its unfinished work
behind.  The report relates that traffic restrictions on the road
put up by the company remained in place causing lengthily

McKean & Co had been waterproofing the bridge at Dundee Street
before falling into administration, according to discloses that it was only on July 4, that the
city council's traffic information department became aware of
this.  The report relates that officials said there had also been
"legal constraints" within the administration process that
prevented the council from working on the site or making public
any information about the contractor.

The city council said it was now seeking a new contractor, but
said it would be next month before work resumed on the site, notes.

QUANTUM SADDLE: Ceases Trading Due to Saddle Design Fault
Karen Spinner at Horse and Hound reports that Quantum Saddle Co
Limited, the company behind an innovative and award-winning
saddle, has gone bust with undisclosed debt.

And with the liquidation being caused by a technical fault in the
bridge of the saddle that could not be remedied, the company's
directors have urged riders to stop using it with immediate
effect, H&H relates.

According to H&H, the lightweight saddle, which retailed from
GBP2,000 upwards, was launched in 2009 after 10 years of research
and GBP2million spent on development.  It was said to eliminate
pressure points and create a more secure seat for riders.

"In March, we were made aware by one of our professional riders
that a bridge had broken. We decided not to sell any more saddles
until the problem had been rectified," H&H quotes Quantum director
Matthew Stockford as saying in a letter to its customers sent out
earlier this month.

"We came up with a redesign when we were informed of two more
bridge failures and then another failure in the saddle's
metalwork, something we hadn't seen before.

"Our engineers informed us that they did not understand why the
saddle was breaking and could not come up with a solution. They
were not prepared to put any more time or effort into the saddle.

"Given the lack of support from the engineers and the fact that no
further funding was available, the company had no choice but to
cease trade," Mr. Stockford said, H&H reports.

RUSHDEN & DIAMONDS: To Enter Into Receivership, Club Insolvent
BBC News reports that Rushden & Diamonds will move a step closer
to being wound up by entering into receivership.

Club Chief Executive Officer Steve Beasant said without new
investment the club was insolvent and could not continue,
according to BBC News.  The report relates that the news comes
after an appeal against expulsion from the Conference was

"The club will be placed into receivership via Nene Park owners,
based upon their powers under historic legal charges over the
club," BBC News quoted Mr. Beasant as saying.

BBC News notes that negotiations with a Japanese property
management company, who had expressed an interest in investing in
the club, broke down.

The club is still facing a winding-up petition, with the initial
hearing adjourned until July 11.

BBC News discloses that other than the emergence of a new
investor, Julie Palmer of restructuring experts Begbies Traynor
said that Diamonds will only reprieved under the current
circumstances if all the petitioning creditors withdraw at the
hearing or if the Judge decides to adjourn or set aside the

The report says that the club was omitted from the Conference for
financial reasons at the competition's annual general meeting on
June 11.  They were set to attend their hearing with the Football
Association on July 5.

"The FA can confirm that Rushden & Diamonds have withdrawn their
appeal against expulsion from the Football Conference.  The club's
hearing, scheduled for Tuesday, 5 July, has now been cancelled and
the Football Conference decision to expel Rushden & Diamonds
remains in force," FA said in a statement obtained by the news

SILENTNIGHT: Regulator Probes Firm's Pre-pack Administration
Insider Media Limited reports that the Pensions Regulator has
confirmed that investigations into the pre-pack administration of
Silentnight are ongoing after the sale allowed the company to dump
its GBP100 million pension liabilities.

A new report has also revealed that unsecured creditors of the
company should receive some cash owed to them, but the total
estimated deficiency to creditors could be as much as GBP120
million, according to Insider Media Limited.

However, Insider Media Limited says, the purchase allowed private
equity firm HIG to walk away from the group's GBP100 million
pension deficit, sparking debate on existing pensions legislation
covering insolvencies.  Insider Media Limited relates that the
Pensions Regulator is now looking into the circumstances of the
deal and will decide what-if any-action should be taken.

As reported in the Troubled Company Reporter-Europe on May 17,
2011, said that Silentnight Holdings' future and
its 650 Pendle jobs were secured after it was bought by HIG
Europe.  As reported in the Troubled Company Reporter-Europe on
April 26, 2011, Lancashire Telegraph related that Silentnight
Holdings Plc chiefs were battling to save 650 jobs after the
extent of its cash crisis emerged.  Silentnight Holdings chiefs
have given the stark warning that the firm will go into
administration unless it offloads a pension fund with a GBP100
million black hole, according to Lancashire Telegraph.  The report
notes that the company is trying to solve its financial
difficulties, but as an alternative rescue option, the company has
been put up for sale in a bid for a buyer who can secure its

A new report published by administrators at KPMG has revealed that
all unsecured creditors, including the Silentnight's pension
scheme, should receive between 7.1p and 10.1p in the pound,
Insider Media Limited says.  Overall there should be between
GBP8.6 million and GBP12 million available to pay creditors,
Insider Media Limited discloses.  Her Majesty Revenue & Customs is
owed GBP2.1 million, while trade creditors are owed a collective
GBP10.7 million.

The estimated return should provide a better deal for the pension
scheme than the one that was being offered through a Company
Voluntary Arrangement (CVA), which the directors of Silentnight
were trying to force through prior to the administration, but the
pockets of trade creditors will be hit harder, Insider Media
Limited relays.

The pension fund is currently being assessed by the PPF, set up to
pay compensation to members of eligible defined benefit pension
schemes, but entry to it is not guaranteed, Insider Media Limited

Silentnight Holdings Plc was founded in 1946 and supplies about
500,000 beds a year to retailers.  It employs about 1,250 staff at
sites across Barnoldswick, Cumbria, West Yorkshire and Ireland.

TALISMAN 6 PLC: Fitch Lowers Rating on Class F Notes to 'Csf'
Fitch Ratings has downgraded Talisman 6 plc's notes:

   -- EUR787.3m class A (XS0294187306) downgraded to 'Asf' from
      'AAsf'; Outlook Negative

   -- EUR79.9m class B (XS0294187991) downgraded to 'BBBsf' from
      'Asf'; Outlook Negative

   -- EUR83.3m class C (XS0294188882) downgraded to 'Bsf' from
      'BBsf'; Outlook Negative

   -- EUR59.9m class D (XS0294189005) downgraded to 'CCsf' from
      'CCCsf'; assigned Recovery Rating (RR) 'RR6'

   -- EUR12.5m class E (XS0294189427) downgraded to 'CCsf' from
      'CCCsf'; assigned 'RR6'

   -- EUR15.5m class F (XS0294189690) downgraded to 'Csf' from
      'CCsf'; assigned 'RR6'

The downgrades are principally driven by the deterioration in the
underlying performance of the Orange and Cherry loans, which
account for 44% of the current loan balance.

Fitch believes it is highly unlikely that the Orange loan will be
able to refinance at maturity, with some form of restructuring
more likely, given the size and complexity of the loan. This loan
is not in special servicing, and as such its collateral has not
been revalued. Fitch estimates an A-note LTV in excess of 110%,
with the non-securitized B-note adding a further 10%.

The Cherry loan was transferred to special servicing in May 2008
following payment default. The borrower level swap has not been
paid since July 2009, and EUR7.1 million of unpaid interest and
amortization has rolled up to date. The insolvency administrator
has reduced proceeds in order to make payments on operating
expenditure, with collateral value dropping to EUR28.4 million at
the last valuation date from EUR70.8 million at closing. Fitch
expects this loan to make large losses, which is a driver for the
downgrades of junior notes.

Three other loans are in default, namely Peach, Mango and Kiwi,
with the latter two in special servicing (along with Cherry).
Transferring loans to special servicing, as a result of payment
default, loan maturity or servicer-led revaluation and subsequent
LTV covenant breach, has allowed the servicer, Hatfield Phillips,
to intervene promptly and devise seemingly viable de-levering
strategies combining scheduled amortization, the capture of excess
rental income and the proposed injection of sponsor equity.
Moreover, these credit events led to the principal waterfall
switching to fully sequential, which strengthens the position of
senior noteholders.

The legal final maturity date of the notes is in October 2016,
three years past the last scheduled loan maturity date. Six of the
nine loans, representing over 70% of the pool, were originally
scheduled to mature this year, although Apple, Strawberry and
Peach have been granted extensions that range from 12 months to
three years (provided certain criteria are met).

With new valuations on collateral backing six of the loans called
in the last year, the aggregate MV for these loans has dropped to
EUR462 million, just 6.6% higher than the corresponding Fitch MV.
This compares to a difference of one-third in respect of the three
loans that have not been re-valued since closing, namely Orange,
Coconut and Pineapple, for which Fitch estimates materially lower
collateral value.

Fitch will continue to monitor the performance of the transaction.

TITAN EUROPE: Moody's Reviews Ba1 Rating for Possible Downgrade
Moody's Investors Service has downgraded and maintained on review
for possible downgrade the following class of Notes issued by
Titan Europe 2007-1 (NHP) Limited (amount reflecting initial

    * GBP435.85M Class A Notes, Downgraded to Ba1 (sf) and Remains
On Review for Possible Downgrade; previously on May 25, 2011 A1
(sf) Placed Under Review for Possible Downgrade

Moody's does not rate the Class X, Class B, Class C, Class D and
Class E Notes.


The key parameters in Moody's analysis are the default probability
of the securitized loan (both during the term and at maturity) as
well as Moody's value assessment for the portfolio of properties
securing the loan. Moody's derives from those parameters a loss
expectation for the securitized pool.

The rating action is due to an increase in the expected loss for
the single loan in the pool as a result of (i) an updated estimate
of the portfolio's value (ii) significant uncertainties
surrounding the long-term sustainable rental cash flows from the
underlying portfolio (iii) the increased likelihood of cash flow
shortfalls at the transaction level that may require drawings
under the servicer advance mechanism and (iv) Moody's revised
interpretation of the ranking of the Forward Swap, which is now
assumed to rank ahead of principal payments to Class A

Titan Europe 2007-1 (NHP) Limited represents a true-sale
securitization of a GBP 610 million Senior A Loan extended to The
Libra Borrower, and secured by a portfolio of 297 care home
properties located across the UK. Additionally, a GBP534 million
Junior B Loan was provided to The Libra Borrower that has not been
securitized in this transaction, but is secured by the same
portfolio. The Principal Tenant (Southern Cross Healthcare Group
PLC) leases 86.7% of the secured portfolio. Due to its critical
financial position, the Principal Tenant implemented a four-month
deferral of 30% of the current rent payable with effect from 1
June 2011 until September 30, 2011 across all its approximately
750 care homes. On June 16, 2011, the Principal Tenant announced
that it would work with all its landlords including the Libra
Borrower, towards a consensual solution to its current financial
problems which will be delivered over the next four months. This
process will be overseen by a Restructuring Committee made up of
representatives of the Landlords' Committee and the Principal

Moody's acknowledges the challenge of valuation amid the
significant uncertainties overshadowing the Principal Tenant and
the care home industry. Nonetheless, Moody's estimates the
securitized senior loan LTV at 108%, deteriorating to 130% after
incorporating potential Forward Swap breakage costs of GBP124
million as of April 2011. The corresponding Class A note-to-value
ratio is estimated at 72%, deteriorating to 94% after
incorporating the above mentioned potential Forward Swap breakage

The profitability of each individual care home is important in
determining sustainable rent levels for an operator, and
ultimately the value of the care home. Moody's considered the
profitability of each individual care home in arriving at its
updated estimate of the portfolio's value. Market research
suggests that Rent Cover (rent as a proportion of profit) averages
1.55x for nursing homes across the UK. Based on the December 2010
UW market value of GBP795.9 million (adopting purchasers' costs of
5.75%), approximately 40% of Southern Cross-operated care homes
had a 2010 Rent Cover of less than 1.55x, while 18% had less than

The ranking of Forward Swap payments relative to Class A Note
payments is to be deduced from several complex provisions in the
transaction documents. Moody's previously interpreted these
provisions to mean that the Forward Swap is fully subordinated to
the Class A Notes. However, following further investigation,
Moody's now considers that principal payments to Class A
Noteholders will, in effect, be subordinated to payments due under
the Forward Swap (other than termination payments resulting from
the swap counterparty's default) in respect of rental income and
property disposal proceeds. This is because, even though the Class
A Notes rank above the Forward Swap in the Issuer-level waterfall,
the amount of principal due and payable to Class A Noteholders is
determined, in part, by reference to the amount that is allocated
to principal repayment of the Senior A Loan pursuant to the
Intercreditor waterfall, under which swap payments rank first. A
material consequence of this is that any property disposal
proceeds will be applied towards Forward Swap payments in priority
to repaying the Class A Notes. Such Forward Swap payments will
include any partial termination payments resulting from prepayment
of the Whole Loan, which is the aggregate of the Senior A Loan and
the Junior B Loan. However, Moody's believes that certain other
principal receipts -- such as the principal component of any
payment received in connection with a sale of the Senior A Loan --
will be applied to repay the Class A Notes in priority to the
Forward Swap. Moreover, notwithstanding the senior ranking of the
Forward Swap in the Intercreditor waterfall, Moody's continues to
assume that interest on Class A Notes will be paid in priority to
the Forward Swap. This is because any amounts allocated to the
Forward Swap under the Intercreditor waterfall are required to be
paid into the Collection Account for application according to the
Issuer-level waterfall. Moody's will reissue its Pre-Sale Report
published on May 15, 2007 to reflect Moody's updated position
regarding the priority of payments between the Forward Swap and
the Class A Notes.

Moody's will conclude its transaction review once it has greater
clarity around the ongoing restructuring discussions between the
Principal Tenant, the Libra Borrower, and the Special Servicer.

The principal methodology used in this rating was "Moody's
Approach to Real Estate Analysis for CMBS in EMEA: Portfolio
Analysis (MORE Portfolio)" published April 2006. "Update on
Moody's Real Estate Analysis for CMBS Transaction in EMEA",
published June 2005 was also used in this rating.

The updated assessment is a result of Moody's on-going
surveillance of commercial mortgage backed securities
transactions. Moody's prior announcement is summarized in a Press
Release dated May 25, 2011. Moody's published its last Performance
Overview for this transaction on May 31, 2011.


* Upcoming Meetings, Conferences and Seminars

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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

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


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

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

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

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

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

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

                 * * * End of Transmission * * *