TCREUR_Public/110722.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 22, 2011, Vol. 12, No. 144

                            Headlines



A U S T R I A

A-TEC INDUSTRIES: Penta Stands By Bid Despite Police Searches


C Z E C H   R E P U B L I C

ECM REAL: Prague Exchange Suspends Share Trading
ECM REAL ESTATE: Decision on Bankruptcy Expected Today
SAZKA AS: High Court Confirms Bankruptcy


G E R M A N Y

BLUE CHIP: Files for Insolvency Proceedings
EUROCONNECT ISSUER: Fitch Affirms Rating on Class C Notes at 'B-'


I R E L A N D

ANGLO IRISH: Moody's Confirms 'Ba3' Ratings on Covered Bonds
AQUILAE CLO: Moody's Lifts Rating on Class E Notes to 'Caa1'
HARVEST CLO: Moody's Upgrades Rating on Class V Notes to 'Ba1'
IRISH LIFE: Wins Temporary European Union Approval for State Aid
IRISH LIFE: Finance Minister to Push Through with Recapitalization

RMF EURO: Moody's Upgrades Rating on Class V Notes to 'Ba2 (sf)'
QUINN GROUP: Can't Make Changes to International Group of Firms


K A Z A K H S T A N

KAZAKH TEMIRBANK: Fitch Affirms 'B-' LT Issuer Default Rating


N E T H E R L A N D S

CREDIT EUROPE: Moody's Affirms 'D' Bank Financial Strength Rating


P O L A N D

CYFROWY POLSAT: Moody's Assigns Definitive Ba3 Rating to Notes


R O M A N I A

CITY MALL: Creditors Approve Direct Sale Negotiations


R U S S I A

OTKRITIE BANK: S&P Assigns 'B-/C' Counterparty Credit Ratings


U K R A I N E

AGROTON PUBLIC: Fitch Assigns Final 'B-' Rating to Eurobond


U N I T E D   K I N G D O M

BARCLAYS BANK: S&P Ups Rating on Class B Unfunded CDS to 'CCC+'
BROADGATE FINANCING: Fitch Affirms Rating on Class D Notes at 'BB'
CASTLE INNS: Goes Into Administration on Cashflow Difficulties
CORSAIR NO. 4: S&P Lowers Rating on Series 11 Notes to 'CC'
HUDSON'S COFFEE HOUSE: Goes Into Administration Due to Tax Rates

LLOYDS BANKING: RBS Loses Restructuring Head Nathan Bostock
LUNAR FUNDING: Moody's Lifts Rating on Series 17 Notes From 'Ba1'
MARKET CREATIVE: Relaunches Just Weeks After Closure
MEDIATECH: Sold Out of Administration to Previous Owners
MORTGAGE TIMES: Moves Into Liquidation, In Talks With Insurers

PRENTICE CARS: Placed in Creditors' Voluntary Liquidation
RK FURNITURE: Goes Into Administration, Cuts 45 Jobs
SUPERQUINN: Failure Leaves Suppliers on Brink
THOMAS COOK: S&P Affirms 'BB-' Long-term Corporate Credit Rating
TOKIO MARINE: Seeks U.S. Recognition of Debt Proceeding

TOKIO MARINE: Chapter 15 Case Summary


X X X X X X X X

* Adrian Harris Joins Brown Rudnick's European Office as Partner
* BOOK REVIEW: Corporate Debt Capacity




                            *********


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A U S T R I A
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A-TEC INDUSTRIES: Penta Stands By Bid Despite Police Searches
-------------------------------------------------------------
Jonathan Tirone at Bloomberg News reports that A-Tec Industries AG
is still an acquisition target of Penta Investments even after
A-Tec's offices were searched on Wednesday by Viennese
authorities.

Penta is standing by its "serious offer for all the assets of
A-Tec" and "has extended the validity of the offer until the end
of July," Bloomberg quotes an e-mail as saying.

Bloomberg relates that Gerald Wechselauer, a company spokesman,
said three members of A-Tec's management board, including Chief
Executive Officer Mirko Kovats, had their homes searched on
Wednesday.  The spokesman added that the searches didn't endanger
the sale of A-Tec, Bloomberg notes.

Separately, Bloomberg's Mr. Tirone reports that executives and
creditor trustees are assessing bids for A-Tec's assets.  The
engineering company became Austria's third-biggest insolvency case
since World War II after it filed for bankruptcy protection in
October, Bloomberg notes.  According to Bloomberg, creditor
committee spokesman Hans-Georg Kantner said at the time that
A-Tec struck a deal with creditors in December that would allow
the company to restructure if it attracted at least EUR250 million
(US$354 million) in capital, Bloomberg recounts.

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,
Austria.


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


ECM REAL: Prague Exchange Suspends Share Trading
------------------------------------------------
Reuters reports that creditors for insolvent ECM Real Estate
Investments have forced the Czech developer into bankruptcy,
prompting the Prague exchange to suspend trading in the company on
Thursday.

According to Reuters, ECM and some creditors have pushed for a
reorganization that would allow the company to continue
operations, but they were over-ruled in a creditor vote late on
Wednesday.

Reuters relates that ECM investor relations officer Svetlana
Semerakova said some bondholders would look to appeal the
decision, which the company would support.

The Prague Stock Exchange said on Thursday that, in accordance
with bourse rules, it would indefinitely suspend trading in ECM's
shares and debt instruments, Reuters adds.

As reported by the Troubled Company Reporter-Europe on May 26,
2011, CTK related that the City Court in Prague declared ECM
insolvent and appointed Ivo Hala its insolvency administrator.
Insolvency proceedings against the company were launched in April,
CTK recounted.  ECM has long-term obligations exceeding EUR165.9
million (CZK4 billion), most of the debt being bonds, CTK
disclosed.

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


ECM REAL ESTATE: Decision on Bankruptcy Expected Today
------------------------------------------------------
Krystof Chamonikolas at Bloomberg News, citing Hospodarske Noviny
newspaper, reports that ECM Real Estate Investments AG was
expected to be declared bankrupt by a Prague court yesterday or
today after creditors of the Czech developer rejected a debt
reorganization plan.

As reported by the Troubled Company Reporter-Europe on July 21,
2011, Reuters, citing a document on the Prague Municipal Court's
Web site, related that the court administrator for ECM recommended
bankruptcy for the insolvent Czech developer.  ECM and several
creditors pushed for a reorganization that would allow the company
to continue operations, Reuters disclosed.

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


SAZKA AS: High Court Confirms Bankruptcy
----------------------------------------
CTK reports that the High Court on Tuesday turned down the appeal
filed by Gladiolus and E-Invest against the decision of the City
Court in Prague to declare Sazka AS bankrupt.

Lenka Ticha, spokeswoman of Sazka's insolvency administrator, told
CTK that the decision made by the High Court is final and confirms
Sazka's bankruptcy definitively.

According to CTK, Martin Danko, a spokesman for the Penta group,
which controls Gladiolus, said that Gladiolus will most probably
appeal against the verdict at the Supreme Court.

An appeal against Sazka's bankruptcy was on Tuesday withdrawn by
the company's board chairman Ales Husak, CTK relates.

As reported by the Troubled Company Reporter-Europe, CTK said that
Sazka's bankruptcy took effect on May 30, 2011.  The decision on
Sazka's bankruptcy was made at a meeting of its creditors on
May 27.  Under bankruptcy, the Sazka board of directors loses its
right to handle the company's assets, which will now be
administered by an insolvency administrator, CTK noted.  .

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


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G E R M A N Y
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BLUE CHIP: Files for Insolvency Proceedings
-------------------------------------------
The management of Blue Chip Energy GmbH on Wednesday took the
decision to file for insolvency proceedings for the company.
SOLON had acquired a participation in the Austrian cell
manufacturer in 2006 in order to ensure the supply of solar cells
which was critical at that time and currently still holds 18.28%
of the shares in the company.  Following the insolvency of Blue
Chip Energy, SOLON will have to make a valuation allowance in the
aggregate amount of EUR18 million, which primarily results from a
shareholder loan granted in the past.

Due to the difficult market situation and the persistent slack
demand, the financial situation of Blue Chip Energy became
increasingly tense.  Despite intensive talks with the financing
banks, it was not possible to the very last to find a solution.
Consequently, there is no longer a basis for the continued
existence of the company.


EUROCONNECT ISSUER: Fitch Affirms Rating on Class C Notes at 'B-'
-----------------------------------------------------------------
Fitch Ratings has affirmed EuroConnect Issuer SME 2007 Ltd's class
B and class C notes, due 2030:

   -- UR43.25m class B (XS0336040331): affirmed at 'BB-sf';
      Outlook revised to Stable from Negative; Loss Severity (LS)
      rating of 'LS-5'

   -- EUR37.1m class C (XS0336040505): affirmed at 'B-sf'; Outlook
      revised to Stable from Negative; LS-5

The affirmation reflects the stable pool performance and the
increased credit protection to the rated notes as a result of pool
amortization. In Fitch's view, the positive economic environment
in Germany and the decreasing corporate insolvency rates are
likely to positively affect the transaction's performance. The
agency has consequently revised the Outlook on the rated notes to
Stable from Negative.

The transaction is amortizing with a current portfolio share of
57% of the initial pool volume of EUR3.09 billion compared with
93% at the last rating action in February 2010. Through pool
amortization, the credit protection for the rated class B and
class C notes has increased to 8.1% and 6.0%, respectively, from
5.0% and 3.7% at the last rating action. Despite the amortization,
the pool composition remains largely unchanged. The ten largest
obligor groups make up 8.2% of the pool compared to 5.2% at the
last review and the 20 largest obligors make up 14.6% compared to
10.2% at the last review. The current credit enhancement for the
class B notes is sufficient to provide for a default of the ten
largest or 312 average obligor groups. The class C credit
enhancement could cover the seven largest or 231 average obligor
groups. In Fitch's view, the pool remains granular, which limits
the concentration risks.

The portfolio's performance has not significantly changed from the
last review. As of the May 2011 reporting date, defaulted assets
in the portfolio are 0.9% of the initial pool balance and thus
unchanged from the last review. The 30-90 days delinquencies are
0.4% of the outstanding pool balance compared to 0.5% at the last
review. The cumulative realized losses amount to EUR6.3m, but have
been covered by synthetic excess spread. Therefore, no losses have
been allocated to the rated notes. Synthetic excess spread of
24bps p.a. on the performing reference pool balance can be used to
provide for losses.

The transaction is a partially-funded synthetic CDO securitization
with exposures to small- and medium-sized enterprises, primarily
in Germany and Austria. Originators are UniCredit Bank AG
('A+'/Stable/'F1+') and UniCredit Bank Austria AG
('A'/Stable/'F1').

Fitch has assigned an Issuer Report Grade (IRG) of one star
("poor") to the publicly available reports on the transaction. The
reporting is accurate and timely. While it contains various
stratifications, the report does not contain portfolio obligor
stratifications, thus preventing a higher grade.


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I R E L A N D
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ANGLO IRISH: Moody's Confirms 'Ba3' Ratings on Covered Bonds
------------------------------------------------------------
Moody's Investors Service has confirmed the ratings of the
following covered bonds issued by Anglo Irish Mortgage Bank under
the Irish Asset Covered Securities law:

- Mortgage covered bonds: confirmed at Ba3; previously on 14
  February 2011, downgraded to Ba3 on review for downgrade;

This rating action concludes the review of the above covered
bonds. The timely payment indicator (TPI) is "Very Improbable".

RATINGS RATIONALE

The review of the covered bonds was initiated by rating actions on
Anglo Irish Bank Corporation Limited, see press releases "Moody's
downgrades unguaranteed senior unsecured debt of Irish banks"
dated February 11, 2011 and "Moody's downgrades senior debt
ratings of Anglo Irish and Irish Nationwide one notch to Caa2"
dated June 24, 2011. Further rating action was taken on Irish
sovereign debt as well as government-guaranteed debt of Anglo
Irish following the downgrade of Ireland to Ba1, see press
releases "Moody's downgrades Ireland to Ba1; outlook remains
negative" dated July 12, 2011 and "Moody's downgrades government-
guaranteed debt of five Irish banks" dated July 14, 2011. Moody's
has now concluded the review and confirmed the ratings of the
covered bonds.

Generally, a downgrade of the issuer rating negatively affects the
covered bonds through their impact on both the expected loss
method and the timely payment indicator (TPI) framework. In
addition, the rating of a sovereign has an impact on the maximum
rating covered bonds can achieve. A weaker sovereign rating is
likely to lead to a deterioration of the future asset performance
and increases the likelihood of a transaction experiencing event
risk.

EXPECTED LOSS METHOD

As the issuer's credit strength is incorporated into Moody's
expected loss assessment, any downgrade of the issuer's rating
will increase the expected loss on the covered bonds. However,
Moody's notes that the actual over-collateralization is sufficient
to achieve a Ba3 rating. Based on 10.5% over-collateralization on
a prudent market value for the program the expected loss rating on
the covered bonds would be B2. Moody's views this over-
collateralization level as "committed". However, due to the very
specific circumstances applying to Anglo Irish Mortgage Bank,
Moody's gives benefit to "voluntary" over-collateralization. The
issuer has confirmed to Moody's that it does not intend to lower
the level of over-collateralization below 32.5%, which is the
minimum level of over-collateralization under Moody's Expected
Loss Method to maintain a rating of Ba3 on these covered bonds.

TPI FRAMEWORK

The rating of these covered bonds is not subject to restriction
due to the TPI. The current rating of Ba3 represents the lowest
point in the TPI table.

The ratings assigned by Moody's address the expected loss posed to
investors. Moody's ratings address only the credit risks
associated with the transaction. Other non-credit risks have not
been addressed, but may have a significant effect on yield to
investors.

The rating assigned to the existing covered bonds is expected to
be assigned to all subsequent covered bonds issued by the issuer
under this program and any future rating actions are expected to
affect all such covered bonds. If there are any exceptions to
this, Moody's will, in each case, publish details in a separate
press release.

KEY RATING ASSUMPTIONS/FACTORS

Covered bond ratings are determined after applying a two-step
process: expected loss analysis and TPI framework analysis.

EXPECTED LOSS: Moody's determines a rating based on the expected
loss on the bond. The primary model used is Moody's Covered Bond
Model (COBOL) which determines expected loss as a function of the
issuer's probability of default, measured by the issuer's rating,
and the stressed losses on the cover pool assets following issuer
default.

The cover pool losses are based on Moody's most recent modelling
and are an estimate of the losses Moody's currently models if the
relevant issuer defaults. Cover pool losses can be split between
market risk and collateral risk. Market risk measures losses as a
result of refinancing risk and risks related to interest-rate and
currency mismatches (these losses may also include certain legal
risks). Collateral risk measures losses resulting directly from
the credit quality of the assets in the cover pool. Collateral
risk is derived from the collateral score.

The cover pool losses are 42.31%, with market risk of 16.82% and
collateral risk of 25.49%. The collateral score for this program
is currently 38%.

For further details on cover pool losses, collateral risk, market
risk, collateral score and TPI Leeway across all covered bond
programs rated by Moody's please refer to "Moody's EMEA Covered
Bonds Monitoring Overview", published quarterly. These figures are
based on the latest data that has been analyzed by Moody's and are
subject to change over time. Quarterly these numbers are updated
in Performance Overview published by Moody's.

TPI FRAMEWORK: Moody's assigns a "timely payment indicator" (TPI)
which indicates the likelihood that timely payment will be made to
covered bondholders following issuer default. The effect of the
TPI framework is to limit the covered bond rating to a certain
number of notches above the issuer's rating.

SENSITIVITY ANALYSIS

The robustness of a covered bond rating largely depends on the
credit strength of the issuer.

The number of notches by which the issuer's rating may be
downgraded before the covered bonds are downgraded under the TPI
framework is measured by the TPI Leeway. Covered bonds of issuers
rated below B3 are not subject to restriction due to the TPI.

A multiple-notch downgrade of the covered bonds might occur in
certain limited circumstances. Some examples might be (i) a
sovereign downgrade negatively affecting both the issuer's senior
unsecured rating and the TPI; (ii) a multiple notch downgrade of
the issuer; or (iii) a material reduction of the value of the
cover pool.

RATING METHODOLOGY

The principal methodology used in rating the issuer's covered
bonds is Moody's Approach to Rating Covered Bonds published in
March 2010.


AQUILAE CLO: Moody's Lifts Rating on Class E Notes to 'Caa1'
------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of these notes
issued by Aquilae CLO I PLC.

Issuer: Aquilae CLO I PLC

   -- EUR216M Class A Floating Rate Notes, due 2015, Upgraded to
      Aaa (sf); previously on Jun 22, 2011 Aa1 (sf) Placed Under
      Review for Possible Upgrade

   -- EUR12M Class B Floating Rate Notes, due 2015, Upgraded to
      Aa3 (sf); previously on Jun 22, 2011 A3 (sf) Placed Under
      Review for Possible Upgrade

   -- EUR15M Class C Deferrable Floating Rate Notes, due 2015,
      Upgraded to Baa1 (sf); previously on Jun 22, 2011 Ba1 (sf)
      Placed Under Review for Possible Upgrade

   -- EUR10.5M Class D Deferrable Floating Rate Notes, due 2015,
      Upgraded to Ba2 (sf); previously on Jun 22, 2011 B2 (sf)
      Placed Under Review for Possible Upgrade

   -- EUR12M Class E Deferrable Floating Rate Notes, due 2015,
      Upgraded to Caa1 (sf); previously on Jun 22, 2011 Caa3 (sf)
      Placed Under Review for Possible Upgrade

RATINGS RATIONALE

Aquilae CLO I PLC, issued in March 2007, is a single currency
Collateralised Loan Obligation backed by a portfolio of mostly
high yield European loans of approximately EUR172.6 million. The
portfolio is managed by Henderson Global Investors Ltd. This
transaction has passed its reinvestment period. It is
predominantly composed of senior secured loans.

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 standardizing the modeling of collateral
amortization profile.

Moody's notes that the Class A notes have been paid down by
approximately 35.2% or EUR 53 million since the rating action in
May 2011.

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 EUR 172.62
million, a weighted average default probability of 24.51%
(implying a WARF of 4006), and a diversity score of 28.

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 96.09% of the portfolio exposed to senior secured
corporate assets would recover 50% upon default, while the
remaining corporate assets 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.

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 divergence in legal
interpretation of CDO documentation by different transactional
parties due to embedded ambiguities.

Sources of additional performance uncertainties are:

1) Long-dated assets: This deal comprises of 14.55% Long Dated
   Assets. The presence of assets that mature beyond the CLO's
   legal maturity date exposes the deal to liquidation risk on
   those assets. Moody's assumes an asset's terminal value upon
   liquidation at maturity to be equal to the lower of an assumed
   liquidation value (depending on the extent to which the asset's
   maturity lags that of the liabilities) and the asset's current
   market value. Under this assumption, Moody's applied stressed
   liquidation price of 52% to the long dated bucket.

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 participate in amend-
   to-extend offerings. Moody's tested for a possible extension of
   the actual weighted average life in its analysis.

The principal methodology used in this rating was "Moody's
Approach to Rating Collateralized Loan Obligations" published in
June 2011.

Moody's modeled the transaction using the Binomial Expansion
Technique, as described in Section 2.3.2.1 of the "Moody's
Approach to Rating Collateralized Loan Obligations" rating
methodology published in June 2011.

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

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

Moody's also notes that around 56.97% of the collateral pool
consists of debt obligations whose credit quality has been
assessed through Moody's credit estimates. Large single exposures
to obligors bearing a credit estimate have been subject to a
stress applicable to concentrated pools as per the report titled
"Updated Approach to the Usage of Credit Estimates in Rated
Transactions" published in October 2009.


HARVEST CLO: Moody's Upgrades Rating on Class V Notes to 'Ba1'
--------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of these notes
issued by Harvest CLO III PLC:

Issuer: Harvest CLO III plc

   -- EUR77M Class B Senior Floating Rate Notes due 2021, Upgraded
      to Aa3 (sf); previously on Jun 22, 2011 A2 (sf) Placed Under
      Review for Possible Upgrade

   -- EUR30.75M Class C-1 Senior Subordinated Deferrable Floating
      Rate Notes due 2021, Upgraded to Baa1 (sf); previously on
      Jun 22, 2011 Ba1 (sf) Placed Under Review for Possible
      Upgrade

   -- EUR12M Class C-2 Senior Subordinated Deferrable Fixed Rate
      Notes due 2021, Upgraded to Baa1 (sf); previously on Jun 22,
      2011 Ba1 (sf) Placed Under Review for Possible Upgrade

   -- EUR16.75M Class D-1 Senior Subordinated Deferrable Floating
      Rate Notes due 2021, Upgraded to Ba1 (sf); previously on Jun
      22, 2011 B1 (sf) Placed Under Review for Possible Upgrade

   -- EUR9.25M Class D-2 Senior Subordinated Deferrable Fixed Rate
      Notes due 2021, Upgraded to Ba1 (sf); previously on Jun 22,
      2011 B1 (sf) Placed Under Review for Possible Upgrade

   -- EUR15.75M Class E-1 Senior Subordinated Deferrable Floating
      Rate Notes due 2021, Upgraded to Ba3 (sf); previously on Jun
      22, 2011 Caa2 (sf) Placed Under Review for Possible Upgrade

   -- EUR3M Class E-2 Senior Subordinated Deferrable Fixed Rate
      Notes due 2021, Upgraded to Ba3 (sf); previously on Jun 22,
      2011 Caa2 (sf) Placed Under Review for Possible Upgrade

   -- EUR10M Class V Combination Notes due 2021, Upgraded to Ba1
      (sf); previously on Jun 22, 2011 B1 (sf) Placed Under Review
      for Possible Upgrade

The rating of the Class V Combination Notes addresses the
repayment of the Rated Balance on or before the legal final
maturity, where the 'Rated Balance' is equal at any time to the
principal amount of the Combination Note on the Issue Date
increased by the Rated Coupon of 2% per annum accrued on the Rated
Balance on the preceding payment date minus the aggregate of all
payments made from the Issue Date to such date, either through
interest or principal payments. It is not an opinion about the
ability of the issuer to pay interest. Moody's outstanding Rated
Balance may not necessarily correspond to the outstanding notional
amount reported by the trustee.

RATINGS RATIONALE

Harvest CLO III plc, issued in April 2006, is a multi currency
Collateralised Loan Obligation backed by a portfolio of mostly
high yield European loans. The portfolio is managed by 3i Debt
Management This transaction will be in reinvestment period until
June 8, 2013.

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 modelling assumptions,
which incorporate (1) a removal of the temporary 30% default
probability macro stress implemented in February 2009, (2)
increased BET liability stress factors as well as (3) change to a
fixed recovery rate modelling framework. Additional changes to the
modelling assumptions include (1) standardizing the modelling of
collateral amortization profile and (2) adjustments to the equity
cash-flows haircuts applicable to combination notes.

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 the portfolio par amount, WARF,
diversity score, and weighted average recovery rate, 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 EUR 619.04
million, defaulted par of EUR15.411, a weighted average default
probability of 28.95% (consistent with a WARF of 2895) and a
diversity score of 43. 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 86% of the portfolio
exposed to senior secured corporate assets would recover 50% upon
default, while the remainder non first-lien loan corporate assets
would recover 10%. In each case, historical and market performance
trends and collateral manager latitude for trading the collateral
are also relevant 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.

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
   analysis.

3) The deal has significant exposure to non-EUR denominated
   assets. Volatilities in foreign exchange rate will have a
   direct impact on interest and principal proceeds available to
   the transaction, which may affect the expected loss of rated
   tranches.

4) Other collateral quality metrics: 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 lower
   of reported and covenanted values for weighted average rating
   factor and weighted average spread.

The principal methodology used in this rating was "Moody's
Approach to Rating Collateralized Loan Obligations" published in
June 2011.

Moody's modelled the transaction using the Binomial Expansion
Technique, as described in Section 2.3.2.1 of the "Moody's
Approach to Rating Collateralized Loan Obligations" rating
methodology published in June 2011.

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

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

Moody's also notes that around 78% of the collateral pool consists
of debt obligations whose credit quality has been assessed through
Moody's credit estimates.


IRISH LIFE: Wins Temporary European Union Approval for State Aid
----------------------------------------------------------------
Aoife White at Bloomberg News reports that Irish Life & Permanent
Plc won temporary European Union approval to receive an Irish
government recapitalization of as much as EUR3.8 billion (US$5.4
billion.)

According to Bloomberg, the regulator said in a statement on
Wednesday that the European Commission will make a final decision
on the aid after the Dublin-based lender submits a restructuring
plan with measures address competition issues.

"The recapitalization is necessary to increase the bank's solvency
ratios, thereby enabling it to resist potential stress situations
and preserving stability on the Irish financial markets,"
Bloomberg quotes the commission as saying.

Headquartered in Dublin, Irish Life & Permanent plc --
http://www.irishlifepermanent.ie/-- 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%.


IRISH LIFE: Finance Minister to Push Through with Recapitalization
------------------------------------------------------------------
Simon Carswell at The Irish Times reports that Minister for
Finance Michael Noonan has said he will apply to the courts to
recapitalize Irish Life & Permanent, despite shareholders voting
down proposals to approve the recapitalization at an extraordinary
general meeting.

The Irish Times relates that Mr. Noonan said he had expected
shareholders to vote against the proposals but that he had been
instructed to recapitalize the company by the end of this month
under the terms of the bailout by the European Union and
International Monetary Fund.

According to The Irish Times, he would have to take "a legal
route" to recapitalize the company, he said, after more than 60%
of shareholders voted against the recapitalization.

The company urged shareholders to vote for a Government injection
of up to EUR3.8 billion, meeting the higher capital target set by
the Central Bank after the stress tests of the banks in March, The
Irish Times recounts.

This will wipe out shareholders' interests, leaving the State with
a stake of more than 99%, The Irish Times notes.

Headquartered in Dublin, Irish Life & Permanent plc --
http://www.irishlifepermanent.ie/-- 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%.


RMF EURO: Moody's Upgrades Rating on Class V Notes to 'Ba2 (sf)'
----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of these notes
issued by RMF Euro CDO IV PLC:

Issuer: RMF Euro CDO IV PLC

   -- EUR310.2M Class I Senior Secured Floating Rate Notes, due
      2022, Confirmed at Aa1 (sf); previously on Jun 22, 2011 Aa1
      (sf) Placed Under Review for Possible Upgrade

   -- EUR39.3M Class II Senior Secured Floating Rate Notes, due
      2022, Upgraded to A1 (sf); previously on Jun 22, 2011 A2
      (sf) Placed Under Review for Possible Upgrade

   -- EUR15.3M Class III Deferrable Mezzanine Floating Rate Notes,
      due 2022, Upgraded to A3 (sf); previously on Jun 22, 2011
      Baa3 (sf) Placed Under Review for Possible Upgrade

   -- EUR21.6M Class IV-A Deferrable Mezzanine Floating Rate
      Notes, due 2022, Upgraded to Baa3 (sf); previously on Jun
      22, 2011 Ba3 (sf) Placed Under Review for Possible Upgrade

   -- EUR3.5M Class IV-B Deferrable Mezzanine Fixed Rate Notes,
      due 2022, Upgraded to Baa3 (sf); previously on Jun 22, 2011
      Ba3 (sf) Placed Under Review for Possible Upgrade

   -- EUR12.6M Class V Deferrable Mezzanine Floating Rate Notes,
      due 2022, Upgraded to Ba2 (sf); previously on Jun 22, 2011
      B3 (sf) Placed Under Review for Possible Upgrade

RATINGS RATIONALE

RMF Euro CDO IV PLC, issued in May 2006, is a single currency
Collateralised Loan Obligation backed by a portfolio of mostly
European leveraged loans. The portfolio is managed by Pemba Credit
Advisers. This transaction will be in its reinvestment period
until May 23, 2012. It is predominantly composed of senior secured
loans.

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 as well as (3) change to a fixed recovery
rate modeling framework. Additional changes to the modeling
assumptions include standardizing the modeling of the collateral
amortization profile.

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 the portfolio par amount, WARF,
diversity score, and weighted average recovery rate, 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 EUR437.9 million,
defaulted par of EUR2 million, a weighted average default
probability of 22.16% (consistent with a WARF of 2998) a weighted
average recovery rate upon default of 46.37%, and a diversity
score of 39.

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 89.35% of the portfolio exposed to senior secured
corporate assets would recover 50% upon default, while the
remainder non first-lien loan corporate assets would recover 10%.
In each case, historical and market performance trends and
collateral manager latitude for trading the collateral are also
relevant 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. However, in this case given the
limited time remaining in the deal's reinvestment period, Moody's
analysis reflects the benefit of assuming a higher likelihood that
certain collateral pool characteristics will continue to maintain
a positive "cushion" relative to the covenant requirements, as
seen in the actual collateral quality measurements. Moody's
analyzed the impact of assuming weighted average spread levels
consistent with the midpoint between reported and 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.

The principal methodology used in this rating was "Moody's
Approach to Rating Collateralized Loan Obligations" published in
June 2011.

Moody's modeled the transaction using the Binomial Expansion
Technique, as described in Section 2.3.2.1 of the "Moody's
Approach to Rating Collateralized Loan Obligations" rating
methodology published in June 2011.

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

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

Moody's also notes that around 53.65% of the collateral pool
consists of debt obligations whose credit quality has been
assessed through Moody's credit estimates.


QUINN GROUP: Can't Make Changes to International Group of Firms
---------------------------------------------------------------
The Irish Times reports that businessman Sean Quinn and his family
were on Wednesday restrained from making any changes to their
international group of companies worth an estimated EUR500 million
until September 9.

According to The Irish Times, Mr. Justice Frank Clarke said he
would give his decision on that day on whether the High Court has
jurisdiction to deal with an injunction being sought by Anglo
Irish Bank against Mr. Quinn and other family members.

Anglo argued that because proceedings were initiated in May in the
High Court in Dublin, the Irish court is the court where the
proceedings should be determined, The Irish Times discloses.

The Irish Times relates that lawyers for the Quinn side say
proceedings begun by them in a Cypriot court in June ahead of the
injunctive proceedings begun in Dublin make it "the court of first
seise" and thus the Irish courts must await a ruling in Cyprus.

Overseas proceedings involving Quinn international property
companies will come before a court in Russia today and a court in
Cyprus next Tuesday, The Irish Times says.

Mr. Justice Clarke ordered on Wednesday that pending his
determination on the jurisdictional issue the defendants are
restrained from a series of actions making changes to their
international companies, The Irish Times recounts.

The bank's case is against Mr. Quinn; his children Ciara, Colette,
Sean jnr, Brenda and Aoife; his nephew Peter; sons-in-law Stephen
Kelly and Niall McPartland; and companies Quinn Investments Sweden
AB and Indian Trust AB, The Irish Times states.

They are prohibited from taking any step to transfer any assets of
several named overseas Quinn companies to third parties or
facilitating any person or corporate entity to breach share
pledges agreed by the family's international property companies,
according to The Irish Times.

They also are prohibited from taking any steps to set up a
corporate structure mirroring the corporate structure of the Quinn
family's International Property Group, The Irish Times notes.

Indian Trust, a family-related firm, is restrained from taking any
steps relating to purported shareholding or other interest in
other Quinn companies abroad, The Irish Times says.

Mr. Justice Clarke will deliver his judgment at the High Court on
September 9, The Irish Times discloses.  If he decides that the
High Court has jurisdiction to deal with the issue, it is expected
that his restraining order yesterday will remain in effect until a
full hearing, which would probably take place in January 2012,
states.

However, if Mr. Justice Clarke refuses to accept jurisdiction, it
is likely to result in further extensive legal submissions after
the September 9 judgment, 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.


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


KAZAKH TEMIRBANK: Fitch Affirms 'B-' LT Issuer Default Rating
-------------------------------------------------------------
Fitch Ratings has affirmed Kazakh Temirbank's (Temir) ratings,
including its Long-term Issuer Default Rating (IDR) at 'B-' with a
Stable Outlook. At the same time, the agency has withdrawn the
ratings as the bank has chosen to stop participating in the rating
process. Therefore, Fitch will no longer have sufficient
information to maintain the ratings. Accordingly, the agency will
no longer provide ratings or analytical coverage of Temir.

The affirmations reflect the fact that there have been only
moderate changes to the bank's credit profile in recent months,
and Fitch anticipates that the profile is unlikely to change
materially in the foreseeable future. Rating constraints include
the challenges in establishing a viable business model and
sustainable franchise, and the lack of track record following the
restructuring of the bank's debt in 2010. At the same time, the
ratings are underpinned by ultimate state ownership and the
financial flexibility offered by a relatively long-term funding
profile.

Fitch notes that Temir's Individual Rating of 'D/E' is higher than
that of the other two Kazakh banks, which defaulted and
restructured debt in 2009-2010, namely BTA Bank and Alliance bank
(both rated 'B-'/Stable, Individual 'E'). This is mainly due to a
somewhat lower amount of legacy problems and generally stronger
balance sheet as reflected in positive equity both under IFRS and
local GAAP and positive performance in recent months.

At the same time, the still high share of problem assets and
significant operating expenses weigh heavily on Temir's bottom
line. Accrued interest, which formed a large 37% of interest
income in 5M11 and on the balance sheet equated to a high 1.2x
equity under local GAAP at end-May 11, undermines the quality of
capital and profits. The bank has not been able to increase its
loan book. Deposits grew modestly in 5M11, which is broadly in
line with the generally stagnant sector. In the absence of
business expansion, performance is likely to remain depressed.

Temir defaulted in 2009, mainly because of the high level of
problem loans and liquidity squeezed by deposit outflows.

These ratings have been affirmed and withdrawn:

   -- Long-term foreign currency IDR: affirmed at 'B-'; Outlook
      Stable; withdrawn

   -- Long-term local currency IDR: affirmed at 'B-'; Outlook
      Stable; withdrawn

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

   -- Short-term local currency IDR: affirmed at 'B'; withdrawn

   -- Individual Rating: affirmed at 'D/E'; withdrawn

   -- Support Rating: affirmed at '5'; withdrawn

   -- Support Rating Floor: affirmed at 'No Floor; withdrawn

   -- Senior unsecured debt: affirmed at 'B-'; Recovery Rating at
      'RR4'; withdrawn


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


CREDIT EUROPE: Moody's Affirms 'D' Bank Financial Strength Rating
-----------------------------------------------------------------
Moody's Investors Service has affirmed the D bank financial
strength rating (BFSR) (mapping to Ba2 on the long-term scale) and
Ba2 long-term debt and deposit ratings of Credit Europe Bank N.V.
(CEB-NV) and changed their outlook to positive from negative. The
Not Prime short-term debt and deposit ratings are unchanged.

RATINGS RATIONALE

The affirmation of CEB-NV's ratings are supported by the bank's
sound capitalization, and profitability, satisfactory liquidity,
and asset quality. The CEB-NV's ratings are constrained by the
bank's high credit risk concentration to corporate and unsecured
consumer loans in CIS, and the weak quality of the bank's revenue
stream. In general, Moody's regards revenues from the retail and
asset management franchise as less volatile, higher quality
earning streams. Overall, CEB-NV's revenue stream is supported by
its profitable wholesale lending activities in Europe and Russia,
where revenues from Russian retail lending activities are
partially offset by the non-profitable European retail loan book.
The developing nature of CEB-NV's modest market share in the
markets it has presence in, is an additional constraining rating
factor.

CEB-NV is mainly funded by deposits collected in Western Europe
(deposits from the Netherlands, Belgium and Germany represented
56% of the bank's funding according to year-end 2010 consolidated
audited annual report). During 2009 the bank adopted a strategy of
increasing its liquidity through 33% deposit increase in Western
Europe, thereby reducing its reliance on wholesale funding during
the heighted market volatility in the first-half of 2009. Mid-2009
onwards, the bank followed a reverse strategy where the improved
operating environment and the highly liquid balance-sheet led the
bank to reduce its deposit rates and deposit funding base. During
this time, additional deposit funds were invested into liquid
assets which peaked at 43% of balance sheet in June 2009 and since
then normalized and was reported at 34% of balance sheet as per
year-end 2010 in line with previous years and the bank continuous
to maintain satisfactory liquidity indicators.

The outlook change to positive on the bank's ratings reflects the
overall stronger performance of the bank's emerging market loan
book compared to the banking systems' it has presence in, where
overall the asset quality deterioration remained contained, during
the global recession. The decline in CEB-NV's profitability was
short lived and the higher credit loss changes in 2009 and 2008
was offset by the good pre-provisioning income. Given the improved
operating environment, notably in Russia and Turkey, significant
reduction in bank's provisioning in 2010, and bank's targeted
franchise expansion with anticipated further diversification of
its revenue stream and deposit base through CEB-NV's new
subsidiary, 'Fibabanka' in Turkey, Moody's expects CEB-NV
profitability indicators to continue to improve. Furthermore, in
2010, CEB-NV increased in its capitalization, with a Euro 30
million capital injection, the replacement of Euro 94 million Tier
II capital with an equal amount Tier I capital and Euro 100
million retained earnings, resulting in tier 1 ratio of 11.39% as
per year-end 2010 up from 9.21% a year earlier. The bank further
strengthened its corporate governance standards with the
appointment of a second independent supervisory board member.

PRINCIPAL METHODOLOGIES

The principal methodologies used in rating CEB-NV were Moody's
"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.


===========
P O L A N D
===========


CYFROWY POLSAT: Moody's Assigns Definitive Ba3 Rating to Notes
--------------------------------------------------------------
Moody's Investors Service assigned a definitive Ba3 rating to the
EUR350 million senior secured notes due in 2018 issued by Cyfrowy
Polsat Finance AB.

RATINGS RATIONALE

The final terms of the facilities and the notes are in line with
the drafts reviewed for the provisional ratings assignments.

The principal methodologies used in this rating were Global
Broadcasting Industry published in June 2008 and Loss Given
Default for Speculative-Grade Non-Financial Companies in the U.S.,
Canada and EMEA published in June 2009.

The Cyfrowy Polsat Group is a leading media company in Poland,
combining the largest pay TV direct-to-home (DTH) provider with
the third-largest free-to-air TV broadcaster. The Cyfrowy Polsat
Group is majority owned by Mr. Zygmunt Solorz-Zak and Mr. Heronim
Ruta.


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


CITY MALL: Creditors Approve Direct Sale Negotiations
-----------------------------------------------------
Andrei Circhelan at Ziarul Financiar reports that liquidator
Casa de Insolventa Transilvania said the creditors of City Mall
approved the start of direct negotiations for the mall's sale,
evaluated at some EUR21 million.

As reported by the Troubled Company Reporter-Europe, Romania
Business Insider said that the City Mall shopping center went
bankrupt in November 2010, after its owners APN European Retail
Trust were unable to repay the loans taken for its construction.
City Mall failed to draw bidders in the fifth auction, set for
June 30, thus the liquidator will sell the unit through direct
negotiation, Romania Business Insider noted.

City Mall is a Bucharest shopping center.


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


OTKRITIE BANK: S&P Assigns 'B-/C' Counterparty Credit Ratings
-------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B-/C' long- and
short-term counterparty credit ratings and 'ruBBB+' Russia
national scale rating to Russia-based OTKRITIE Bank. The outlook
is positive.

The ratings reflect the risks of integrating the bank's recently-
acquired component banks, its untested credit risk management,
poor earnings, and moderate capitalization due to double leverage
at the parent level.

Mitigating factors include adequate liquidity and the support of
the Russian Deposit Insurance Agency (DIA, not rated). The ratings
reflect OTKRITIE's stand-alone credit profile and do not include
any uplift for extraordinary support. The bank's holding company,
OTKRITIE Financial Corp., holds a 67% stake. Other shareholders
include the DIA (17%) and International Finance Corp.
(AAA/Stable/A-1+) (16%).

In 2008 and 2009, OTRKITIE Financial Corp. acquired stakes in two
banks as part of a financial rehabilitation program: Russian
Development Bank (RDB; not rated) and Bank Petrovskiy (Petrovskiy,
not rated). OTKRITIE Financial Corp. consolidated the two banks
with its own smaller banking business. In July 2011, OTKRITIE will
acquire Sverdlovskiy Gubernskiy Bank (SGB, not rated), another
bank under DIA administration. SGB's total assets at year-end 2010
equated to about 12% of OTKRITIE's total assets of RUR133.7
billion (US$4.4 billion) at the same date. OTKRITIE, which will
focus on commercial banking with individuals and small and midsize
businesses, now ranks among the 30 largest Russian banks.

OTKRITIE's loan book is relatively clean because the DIA took on
impaired loans from RDB and Petrovskiy prior to the sale of the
two banks to OTKRITIE. The bank's gross nonperforming assets
(excluding restructured loans) stood at 5.3% of total loans as of
year-end 2010. Single-name concentrations, particularly to
constructions projects, are high. The largest 10 borrowers
accounted for 27% of loans and 109% of equity at year-end 2010. In
line with a directive from International Finance Corp., OTKRITIE
significantly reduced loans to related parties in 2010. "We
positively assess a move by the bank towards better risk-
management practices. However, due to the particular history of
its creation, we view OTKRITIE's underwriting skills as untested,"
S&P related.

OTKRITIE is mostly funded by corporate and retail clients with
both current and term accounts; its loan-to-deposit ratio was 66%
at year-end 2010. However, the bank has single-source funding
concentrations. Cash and money market instruments totalled 25% of
assets at the end of 2010. OTKRITIE's risk-adjusted capital (RAC)
ratio was 7% at year-end 2010. The bank's poor earnings in recent
years have left little room for internal capital generation. "In
our opinion, the fact that OTKRITIE Financial Corp. financed a
part of its investment in OTKRITIE with debt creates double
leverage and weakens the overall capital position at a group
level," S&P stated.

Over the medium term, OTKRITIE intends to complete its operational
integration, and further improve its risk management and corporate
governance practices. "We believe that the bank will likely
succeed, although the challenge is significant," S&P added.


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


AGROTON PUBLIC: Fitch Assigns Final 'B-' Rating to Eurobond
-----------------------------------------------------------
Fitch Ratings has assigned Agroton Public Limited's US$50 million
Eurobond, due 2014, a final foreign currency senior unsecured
rating of 'B-'/'RR4'.

The assignment of the final ratings follows a review of final
documentation which materially conforms to information received at
the time the agency assigned the expected ratings on May 6, 2011.

Although the note offering was decreased to US$50 million from
US$100 million-US$125 million, and the tenor reduced from five
years to three years, the Eurobond's Recovery Rating remains
'RR4'. This is due to the fact the Recovery Rating is capped at
'RR4' due to the Ukrainian jurisdiction of the surety providers.


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


BARCLAYS BANK: S&P Ups Rating on Class B Unfunded CDS to 'CCC+'
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
the EUR150 million class A and B unfunded credit default swap
between Barclays Bank PLC and NRW Bank.

"On June 1, 2011, we lowered the ratings in error (see 'Various
Rating Actions Taken On European Synthetic CDO Tranches-May
2011')," S&P said.

The upgrades follow clarification regarding credit events in the
portfolio and the current threshold amounts.

Ratings List

Class                      Rating
                  To                     From

Credit Default Swap Between Barclays Bank and NRW Bank (Richard
von Mises)
EUR150 Million Class A and B Unfunded Credit Default Swap Between
Barclays Bank
PLC And NRW Bank

Ratings Raised

A                 B-srp (sf)             CCC+srp (sf)
B                 CCC+srp (sf)           CCC-srp (sf)


BROADGATE FINANCING: Fitch Affirms Rating on Class D Notes at 'BB'
------------------------------------------------------------------
Fitch Ratings has affirmed Broadgate Financing PLC's CMBS notes
and revised the Outlook of the class D notes to Positive from
Stable:

   -- GBP225.0m class A1 due January 2032 (XS0213092066) affirmed
      at 'AAAsf'; Outlook Stable

   -- GBP268.6m class A2 due April 2031 (XS0211897664) affirmed at
      'AAAsf'; Outlook Stable

   -- GBP175.0m class A3 due April 2033 (XS0211897821) affirmed at
      'AAAsf'; Outlook Stable

   -- GBP400.0m class A4 due July 2036 (XS0213092652) affirmed at
      'AAAsf'; Outlook Stable

   -- GBP365.0m class B due October 2033 (XS0211898043) affirmed
      at 'AAsf'; Outlook Stable

   -- GBP166.5.0m class C1 due January 2022 (XS0213093031)
      affirmed at 'BBB-sf'; Outlook Stable

   -- GBP215.0m class C2 due April 2035 (XS0211898126) affirmed at
      'BBB-sf'; Outlook Stable

   -- GBP66.8m class D due October 2025 (XS0213093627) affirmed at
      'BBsf'; Outlook revised to Positive from Stable

The affirmations and revision of the class D notes' Outlook to
Positive follow a satisfactory review of the most recent investor
reports and further analysis of the transaction's performance to
date.

The 16 assets backing this transaction were revalued at GBP2,567
million in March 2011, up from GBP2,373 million, after the
substitution in August 2010. This has reduced the loan-to-value
(LTV) ratio to 73.8%, from 80.6% at the last review. The debt
service coverage ratio (DSCR) has remained relatively stable, with
a current level of 1.15x, slightly down on the 1.2x as at the last
review, but increased from 1.07x on the previous interest payment
date (IPD) in February 2011. These fluctuations were related to
the rent-free periods provided to the new tenants in the Broadgate
Tower and 201 Bishopsgate.

Since the last review, Bluebutton Properties, the sponsor,
received a resolution to grant planning consent for the re-
development of 3, 4 and 6 Broadgate (previously removed from the
securitization) into a new building for UBS. Fitch views this to
be a positive outcome for the future of the transaction,
maintaining the estate's position as one of the top office
locations in the City of London.

In February 2011, Bluebutton also achieved planning consent for
the refurbishment of 199 Bishopsgate. The refurbishment is
estimated to be completed in Q212 and will be fully funded via an
equity injection. This is further evidence of Bluebutton
Properties' aim of upgrading the estate to maintain its position
within the city market.

The assets that were substituted into the transaction last year,
201 Bishopsgate and The Broadgate Tower, initially exhibited
significant vacancy. However, a number of recent lettings, most
importantly to Banca Itau Europe SA and Scotiabank have improved
the cash flow position of the transaction and have brought the
vacancy rate down to 3.1%, from 7.3% as at the last review.

Fitch will continue to monitor the performance of the transaction.


CASTLE INNS: Goes Into Administration on Cashflow Difficulties
--------------------------------------------------------------
Morning Advertiser reports that Castle Inns has fallen into
administration after facing "significant cashflow difficulties" in
recent months.

Administrator Deloitte said all Castle Inns' sites will continue
to trade, "with a view to selling the business as a going
concern," according to Morning Advertiser.

Morning Advertiser notes that Deloitte is willing to consider
selling the sites individually or as a group.

"The company has faced significant cashflow difficulties in recent
months as a result of the downturn and increased costs faced by
the business, coupled with reduced consumer spending," the report
quoted John Reid, joint administrator and partner in Deloitte's
restructuring services team, as saying.

Castle Inns is the operator of around a dozen bars and nightclubs
in Scotland along with Edinburgh's biggest club City.  It was
founded in 1983 by brothers Paul and Stephen Smith.  It currently
employs 400 full and part-time staff.


CORSAIR NO. 4: S&P Lowers Rating on Series 11 Notes to 'CC'
----------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit rating to
'CC (sf)' from 'B+ (sf)' on Corsair (Jersey) No. 4 Ltd.'s
US$100 million credit-linked notes series 11.

The downgrade follows losses suffered from credit events in the
underlying reference portfolios, which exceed the available credit
enhancement and led to a full principal loss to the noteholders.

"We did not lower the rating at the time the credit events
occurred. The rating action corrects this," S&P said.


HUDSON'S COFFEE HOUSE: Goes Into Administration Due to Tax Rates
----------------------------------------------------------------
Brett Gibbons at Birmingham Post reports that a city restaurateur
and award-winning chef, Daniel Anderson, blamed Government tax
rates for crippling the hospitality sector in Birmingham as it
emerged that Hudson's Coffee House, the city's oldest independent
cafe has been forced to close.

Hudson's Coffee House has gone into administration after more than
20 years.  Another independent cafe, Manton's Patisserie, which
opened last October in Newhall Street, has also called in
receivers, according to Birmingham Post.

Manton's founder Simon Manton confirmed that the firm had closed.
"Manton's has hit financial problems and I am forced to put the
business into liquidation.  It is with great sadness and I thank
the staff for their hard work and customers who has been great
during our short time in business," the report quoted Mr. Manton
as saying.

Meanwhile, Birmingham Post relates that Mr. Anderson is
spearheading moves to get business in the West Midlands to support
a drive by the industry to put pressure on the Government to cut
VAT for pubs, restaurants and hotels to avoid many going to the
wall as they battle against a worsening financial outlook.

Birmingham Post notes that Mr. Anderson said government tax rates
were crippling the hospitality and leisure industry in Birmingham
and sabotaging the city's efforts to be recognized on the world
stage.  Many businesses it was all about surviving rather than
thriving, he added.

"We believe that VAT in the UK is too high at 20 per cent. It is
the second-most uncompetitive rate in the EU -- after Denmark --
and many other countries benefit from significantly reduced rates
for their hospitality industries.  In fact, the average across our
major competitor nations such as France, Spain, Italy and Germany
is just 7.6 per cent.  It is badly affecting Birmingham's
reputation and harming the city's ability to be taken seriously as
a quality destination. There are also the businesses struggling to
cope in these troubled times," Birmingham Post quoted Mr. Anderson
as saying.

However, Birmingham Post discloses that the Treasury said there
were no plans to ease the tax burden for hospitality and tourism
businesses in the UK.  "It wouldn't be possible to simply offer a
blanket VAT cut for the tourism industry.  In principle it would
be possible to introduce reduced rates of VAT for some of the
services that are often used by tourists.  The main suggestions
are usually reduced rates for hotels, restaurants and entrance to
visitor attractions.  Any such reduced rates would entail very
significant revenue impact and as a significant proportion of
spending in these areas, such as eating in restaurants is by UK
residents, any increase in activity in these areas would largely
be at the expense of other consumer spending.  Any claim that a
boost to foreign tourism would outweigh these effects would need
to be looked at very carefully indeed," Birmingham Post quoted an
unnamed Treasury spokesperson as saying.


LLOYDS BANKING: RBS Loses Restructuring Head Nathan Bostock
-----------------------------------------------------------
Dow Jones' DBR Small Cap reports that Nathan Bostock, head of
restructuring and risk at Royal Bank of Scotland Group PLC, is
leaving the 83% state-owned bank to become chief executive of
wholesale banking at Lloyds Banking Group PLC, signaling the rival
lender's desire to step up moves to clear-out troubled assets.

                        About Lloyds Banking

Lloyds Banking Group plc -- http://www.lloydsbankinggroup.com/--
is a financial services group providing a range of banking and
financial services, primarily in the United Kingdom, to personal
and corporate customers.  The Company operates in four segments:
Retail, Wholesale, Wealth and International, and Insurance. Its
main business activities are retail, commercial and corporate
banking, general insurance, and life, pensions and investment
provision.  It also operates an international banking business
with a global footprint in over 30 countries.  Services are
offered through a number of brand, including Lloyds TSB, Halifax,
Bank of Scotland, Scottish Widows, Clerical Medical and Cheltenham
& Gloucester, and a range of distribution channels.  In March
2010, Capita Group Plc acquired Ramesys (Holdings) Ltd from Lloyds
Banking Group plc's Lloyds Bank.  In April 2011, Lloyds Banking
Group plc's LDC bought gas and chemicals business, A-Gas, and a
stake in UK2 Group, a Web hosting company.


LUNAR FUNDING: Moody's Lifts Rating on Series 17 Notes From 'Ba1'
-----------------------------------------------------------------
Moody's Investors Service has upgraded the rating of these notes
issued by Lunar Funding III Limited under Series 17.

Issuer: Lunar Funding III Ltd

   -- US$20M Lunar Funding III Limited, Series 17 Credit-Linked
      Secured Asset-Backed Notes due 2015, Upgraded to Baa1 (sf);
      previously on Jan 26, 2011 Upgraded to Ba1 (sf)

RATINGS RATIONALE

The transaction is a synthetic CDO backed entirely by US CBOs and
CLOs with cash held by Royal Bank of Scotland plc (RBS) as the
underlying collateral.

Moody's explained that the rating action taken is the result of
significant amortization of the underlying assets and the overall
credit improvement of the portfolio since the last rating action
in January 2011. The 10 year weighted average rating factor (WARF)
of the current portfolio is 1.00, equivalent to Aaa. This compares
to a 10-year WARF of 43.79 from the last rating action. Since the
last rating action, there have been no credit events. Credit
enhancement is currently approximately 1.93%.

The portfolio has amortized significantly and currently there are
three assets outstanding in the underlying portfolio. FMA IG
Funding IV, Ltd. Class A and GIA Investment Grade CDO 2001 Ltd.
Class A-1 have both been upgraded by three notches, from Aa3 to
Aaa since the last rating action. All three assets outstanding are
rated Aaa, however the rating is mainly being driven by the risk
of collateral as the cash collateral is currently held in an
account with RBS.

Given that RBS's Aa3 rating remains under review for possible
downgrade, Moody's considered various sensitivity scenarios
including a 1, 2 and 3 notch downgrade of RBS. The corresponding
outcomes are extremely sensitive to the magnitude of rating
migration of RBS.

Taking into consideration the result of sensitivity analyses
together with the credit improvement of the portfolio, the rating
committee concluded in a 3 notch upgrade of the notes.

The principal methodology used in this rating was "Moody's
Approach to Rating SF CDOs" published in November 2010.

Moody's analysis for this transaction is based on the CDOROM. This
model is available on moodys.com under Products and Solutions --
Analytical models, upon return of a signed free license agreement.

Moody's did not run a separate loss and cash flow analysis other
than the one already done using the CDOROM model. For a
description of the analysis, refer to the methodology and the
CDOROM user guide on Moody's Web site.

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.


MARKET CREATIVE: Relaunches Just Weeks After Closure
----------------------------------------------------
The Drum reports that the Market Creative will relaunch on
July 21, as a retail marketing agency just weeks after it was
forced to close its doors due to the administration of its largest
client HomeForm.

The agency, formerly The Market Creative Consultants, will
continue to be headed up by founders Sue Benson and Dorina
D'Ambrosio who have bought the rights to trade as The Market
Creative through their secondary company The Market Social,
according to The Drum.

Sue Benson will continue as managing director of the newly created
agency.

The Drum notes that the Manchester based creative agency was
forced to close after the administration of HomeForm, for which it
held the GBP12 million marketing contract for its brands such as
Kitchen's Direct, Dolphin Bathrooms and Moben Kitchens.

"When HomeForm went into administration it was a sudden and
devastating blow to our business, and we were forced into an
unfortunate position.  We have owned The Market Social Ltd for
some time and took the decision to buy back the rights to retain
The Market Creative brand after much deliberation.  Given that
there is so much equity in the name we feel that this is the best
way forward for the new business.  We will continue to focus on
retail marketing, but the offer will be broader with the addition
of social shopping," the report quoted Ms. Benson as saying.  "We
are fortunate to open our doors today with six staff and several
clients under our belt including Sharps Bedrooms, Johnsons the
Cleaners, G.H. Sheldons and G Plan upholstery.  We hope to grow
another successful business, which can in some small way put
something back into the region's creative services industry," she
added.

It is understood that four members of staff have been re-employed
by the new company, the report notes.


MEDIATECH: Sold Out of Administration to Previous Owners
--------------------------------------------------------
Adam Hooker at PrintWeek reports that Mediatech has gone into
administration and been sold back to its previous owners.

Stephen Clancy and Philip Duffy of insolvency practitioner MCR
were appointed as administrators to the company on July 8.
PrintWeek relates that the same day the company's business and
assets were sold to new company MDP Direct.

An unnamed spokesman for MCR said the sale incorporated the
transfer of 40 staff, PrintWeek says.

PrintWeek discloses that MDP Direct directors Philip Brooks,
former operations director at The Print Factory, and David Wright
were both directors at Mediatech prior to its administration.  The
report relates that both were also shareholders at the company,
Wright owning 42% of the shares and Brooks the remaining 58%.  At
MDP they hold the same percentage of shares.

Rugby-based company Mediatech is a Direct mail and print business.
Mediatech offered an array of services including full-color
variable data, large-format inkjet personalization, one-piece
mailers, data capture and response handling and a number of
finishing services.


MORTGAGE TIMES: Moves Into Liquidation, In Talks With Insurers
--------------------------------------------------------------
Marc Shoffman at FTAdviser reports that The Mortgage Times Group
has been moved into liquidation as representatives enter talks
with insurance companies to recoup commissions.

Citing an administrator's final progress report, filed at
Companies House, FTAdviser discloses that Barclays was owed
GBP605,576 as a secured creditor, while there have been GBP1
million of unadjudicated claims from 82 unsecured creditors
between Feb. 16, 2010, and July 5, 2011.

The document also revealed that Legal & General has a contingent
claim of GBP1.59 million, FTAdviser relates.

"We are discussing matters with insurance companies on
commissions. L&G has a big claim. It is a complex exercise,"
FTAdviser quotes John Kelmanson, managing partner of Kelmanson
Insolvency Solutions, which has moved from administrator to
liquidator, as saying.

According to FTAdviser, the document listed other unrealized
assets as book debts, pipeline money and commissions, and if a
purchaser could be found for the firm's interest in estate agency
business Century 21.  An estimated outcome statement forecast
there could be GBP114,544 available to preferential creditors,
while there is a GBP1.9 million deficit owed to unsecured
creditors, FTAdviser discloses.

FTAdviser relates that the document revealed Phoenix CPG, which
took on collection of commissions in 2010, has generated about
GBP100,000 for the administration.

"It is firmly believed that in the foreseeable future there should
be a substantial further sum of money realizable for the benefit
of creditors," the administrator's final progress report stated.

Mortgage Times Group is a mortgage club and broker.  The Mortgage
Times Group was placed into administration in February 2010,
following a winding-up petition issued by HM Revenue & Customs
over undisclosed debts.


PRENTICE CARS: Placed in Creditors' Voluntary Liquidation
---------------------------------------------------------
Belfast Telegraph reports that Prentice Cars has been placed into
creditors' voluntary liquidation.  The company ceased trading late
last month with the loss of 10 jobs.

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, according to Belfast Telegraph.

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

The independent auditor's report, as cited by Belfast Telegraph,
said Prentice Cars met its day-to-day working capital requirements
through an overdraft facility due for renewal last month.  The
firm also relied upon the support of a connected company which was
owed GBP282,820 as of Dec. 31, 2009, the auditor's report stated.

Belfast Telegraph adds that the total amount of creditors for
which security was given amounted to GBP874,037.

Prentice Cars is a car dealership based in Portadown.  It has held
a franchise to sell Suzuki vehicles since 1990.  Prentice Cars was
run by Paul Prentice.


RK FURNITURE: Goes Into Administration, Cuts 45 Jobs
----------------------------------------------------
Ron Godfrey at Gazette & Herald reports that RK Furniture, of
Tholthorpe near Easingwold, has gone into administration with the
loss of 45 jobs, after trading for more than 30 years.

Administrators FRP Advisory, the restructuring, recovery and
insolvency specialist blamed "financial difficulties caused by
difficult marketing conditions," according to Gazette & Herald.

The report notes that a buyer was sought in vain, but FRP Advisory
spokesman Philip Armstrong said that now there were discussions
with "two parties on the prospect of buying all the assets and
restarting the company".  However, Gazette & Herald notes that
Mr. Armstrong said it would be wrong to raise false hopes among RK
Furniture's redundant employees that they could be re-employed.

"If one of them does buy all the assets of the company, there is
no guarantee that it would stay in the area.  Staying would
involve negotiations with the landlord of the 120,000 sq ft
factory, but it is vaguely possible," the report quoted Mr.
Armstrong as saying.

Meanwhile, Gazette & Herald says that the aim was to recover as
much value as possible, even if that meant, in the end, putting
the assets out to auction.  Anyone interested in the future of the
assets should phone Fiona Rae at FRP Advisory on 0161 8335621.

RK Furniture is a North Yorkshire furniture company.  The GBP2.5
million turnover firm specialized in manufacturing wooden office
furniture from desks, tables and pedestals, to bookcases, filing
cabinets and cupboards.


SUPERQUINN: Failure Leaves Suppliers on Brink
---------------------------------------------
Anne-Marie Walsh and Aideen Sheehan at Irish Independent reports
that at least two major Superquinn suppliers are owed more than
EUR1 million since the supermarket chain went into receivership.

As reported in the Troubled Company Reporter on July 20, 2011,
Reuters said that RTE News said Superquinn was put into
receivership by a syndicate of banks, including Allied Irish
Banks, Bank of Ireland, and National Irish Bank after building up
debts of more than EUR400 million (US$561 million).  Reuters,
citing RTE News, relates that Superquinn will continue trading as
normal under existing management.  Reuters disclosed that RTE News
notes that two representatives of professional services firm KPMG
have been appointed as receivers to the firm.

Other suppliers face seven figure losses, while hundreds more may
never recoup outstanding debts of hundreds of thousands of euro,
according to Irish Independent.

Irish Independent notes that Paul Kelly, of employer group Food
and Drink Industry Ireland, last night said big multinationals
were unlikely to be bankrupt by their losses.  But he warned that
smaller companies, which supply solely to the retailer, could go
to the wall, the report relates.

Payment for stock is being handled by receivers KPMG.  However,
Irish Independent notes that unnamed sources said stock already
sold would not be reimbursed, although there could be some
compensation for products that were still on shelves.

It is understood the retailer has in the region of 600 suppliers,
including many of the big food companies, Irish Independent
discloses.

Glanbia, Kerry Foods, Nestle and Diageo are believed to supply the
chain, while it has a variety of own-brand suppliers, including
Pat the Baker, Connacht Gold, Bewley's and Dublin-based Donnellys,
which supplies its fruit and vegetables, Irish Independent adds.

Superquinn is one of Ireland's largest domestic retailers.  It
employs around 2,800 people in 23 stores around the country.
Superquinn is owned by Select Retail Holdings, which bought the
retailer for EUR350 million in 2005.


THOMAS COOK: S&P Affirms 'BB-' Long-term Corporate Credit Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on U.K.-
based leisure travel company Thomas Cook to negative from stable.
"At the same time, we affirmed the 'BB-' long-term issuer credit
rating and the 'BB-' issue rating on the EUR400 million
senior unsecured notes due 2015 and the GBP300 million senior
unsecured notes due 2017, issued by Thomas Cook," S&P related.

"The outlook revision reflects the potential worsening of Thomas
Cook's financial metrics and tightening covenant headroom, caused
by the event-driven deterioration of the group operating
performance," said Standard & Poor's credit analyst Carlo
Castelli.

Based on a preliminary management statement, the group now
estimates that Thomas Cook's EBIT (before exceptional costs) will
be about GBP320 million for the fiscal year to Sept. 30, 2011
(GBP362.2 million in 2010), because of margin pressure. The
operating underperformance reflects the effect of Middle East
and North African social and political unrest as well as difficult
trading conditions in the U.K., where a squeeze on discretionary
spending is affecting the company's margins. Management is also
planning a strategic and operational review of the U.K. business.
The revised 2011 projections are slightly below S&P's previous
assumptions.

"We assess Thomas Cook as having an aggressive financial risk
profile, constrained by our view of the company's limited capacity
for debt repayment. In our updated base-case assessment, we also
anticipate that Thomas Cook's debt protection metrics will be at
the weaker end of the aggressive category, which we define as debt
to EBITDA of 4.5x to 5.0x," S&P related.


TOKIO MARINE: Seeks U.S. Recognition of Debt Proceeding
-------------------------------------------------------
The foreign representative of Tokio Marine Europe Insurance
Limited has filed a verified petition under Chapter 15 for the
United States courts' recognition of Tokio's adjustment-of-debt
proceeding in the United Kingdom.

David McGuigan, the foreign representative, said Tokio is bound by
a "scheme of arrangement "pursuant to proceedings in the High
Court of Justice of England and Wales.

A scheme of arrangement is a well-established mechanism under
English law that has been used regularly for dealing equitably
with the closure of the run-off of insurance or reinsurance
business.

Designated in the U.K. proceedings as the "scheme company", Tokio
Marine has conducted insurance business in the London insurance
market since it was incorporated in 1970.  The business has been
in solvent "run-off" since 2004.  An English corporation, Pro
Insurance Solutions Limited, was appointed to manage the run-off
of the business in 2005 and is the scheme manager.

Tokio Marine conducts its business operations from its offices in
the United Kingdom and employs approximately 170 employees in the
United Kingdom.  Its balance sheet as of Dec. 31, 2010 shows total
unconsolidated assets of roughly US$724 million, substantially all
of which are held in or connected to England.

Tokio Marine estimates that roughly 65% of its total assets are
located in the United Kingdom and roughly US$136 million of its
total liabilities are owed to policyholders in the United Kingdom.
It estimates that it has 97,000 policyholders worldwide in respect
of all business written by it.

Tokio Marine has creditors located throughout the United States
including in New York.  Specifically, it has 53 policyholders in
the United States holding 481 policies subject to the Scheme.  It
estimates that its potential exposure to policyholders in respect
of Scheme Business in the United States is roughly US$244 million.

The Scheme of Arrangement was designed to reorganize Tokio
Marine's business by subjecting its London market reinsurance
business to the scheme process so as to enable the Company to
close down its reinsurance department in circumstances where the
Tokio Group continues to write new reinsurance business.

The foreign representative asserts that assistance of the New York
Bankruptcy Court is necessary to bind creditors in the United
States to the Scheme of Arrangement in the U.K.  The Scheme, he
says, will provide full and final payments of claims in a manner
that will protect the interests of the creditors by providing
equal and consistent treatment of all claims.


TOKIO MARINE: Chapter 15 Case Summary
-------------------------------------
Chapter 15 Petitioner: David McGuigan

Chapter 15 Debtor: Tokio Marine Europe Insurance Limited
                   150 Leadenhall Street
                   London, EC3V 4TE
                   England, United Kingdom

Chapter 15 Case No.: 11-13420

Type of Business: The debtor is a London-based company that
                  provides insurance solutions, risk engineering
                  and claims management in Europe.

Chapter 15 Petition Date: July 18, 2011

Court: U.S. Bankruptcy Court
       Southern District of New York (Manhattan)

Debtor's Counsel: Lee Stein Attanasio, Esq.
                  SIDLEY AUSTIN LLP
                  787 Seventh Avenue
                  New York, NY 10019
                  Tel: (212) 839-5300
                  Fax: (212) 839-5599
                  E-mail: lattanasio@sidley.com

Estimated Assets: More than US$100 Million

Estimated Debts: More than US$100 Million

The Company did not file a list of creditors together with its
petition.


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


* Adrian Harris Joins Brown Rudnick's European Office as Partner
----------------------------------------------------------------
Brown Rudnick on July 14 announced that Adrian Harris has joined
the Firm's London office as a Partner in the European Bankruptcy &
Corporate Restructuring Group.  Mr. Harris brings experience in
insolvency and debt capital markets, and acts for US, UK and
European investors in the distressed asset class.  Prior to
joining Brown Rudnick, Mr. Harris was a partner at Chadbourne &
Parke LLP.

Across continental Europe and the United Kingdom, Mr. Harris
represents creditors in complex cross-border insolvency and
financial restructuring engagements.  He acts for a variety of US
and European financial institutions, including hedge funds, mutual
funds and investment banks, and also international accounting
firms on many wide ranging issues relating to debtors in various
stages of financial distress.  His practice also encompasses
financial restructuring in emerging markets, particularly Turkey.

Commenting on the recent hire, Brown Rudnick's CEO Joseph F. Ryan
said, "Adrian's practice is recognized as a robust, focused
insolvency and restructuring practice which deals with complex and
difficult situations for clients.  Adrian's addition to our London
office will offer even greater depth to our insolvency expertise
and will reinforce our UK insolvency team as a top tier practice
in the UK.  In addition, Adrian's practice will complement the
work of our European Litigation Practice."

Brown Rudnick acts internationally for a vast array of well known
hedge funds based in the US and UK.  The Firm advises investors
and funds internationally on matters involving fund formation,
governance, investor relations, investment and financing
activities, and offensive/defensive litigation.  Brown Rudnick is
also globally recognized for its representation of funds investors
in structuring, negotiating and documenting claims trades and as
members of ad hoc and official committees, in realizing maximum
value from distressed securities in many of the largest and most
complex Chapter 11 or European insolvency cases as well as out-of-
court restructurings.


Mr. Harris is the third new partner to join Brown Rudnick's London
office since June 2011, with several more hires anticipated by the
fall.  Nick Terras and Massimo Galli joined the Firm's corporate
practice in the London office, further expanding the Firm's
international reach.  With a reputation as a funds "heavyweight,"
Mr. Terras has deep experience with investment funds, including
hedge, private equity/hedge hybrid and funds both in the
unregulated and regulated fund area and related derivatives,
structured finance products.  Mr. Galli brings a complementary,
robust cross border M&A and capital markets practice with
particular strength in the Italian market and significant
experience in the Emerging Markets.

               About Brown Rudnick's London Office

Brown Rudnick opened its London office in 1998 to support a
rapidly growing international practice.  Initially, the London
office focused on expanding its strong US technology and venture
capital practice by representing European tech companies and their
investors.  Today, Brown Rudnick has an internationally recognized
European Venture Capital and Emerging Growth Practice, with such
notable clients as Index Ventures, Mangrove Capital Partners,
Atlas Venture, Amadeus Capital Partners, and Environmental
Technology Fund LP, among others.  Brown Rudnick also has a strong
cross-border M&A practice, having represented numerous companies
on public transactions.  And, over the last decade, the London
office has expanded to include Bankruptcy & Corporate
Restructuring, International Litigation & Arbitration,
Intellectual Property, Tax and Finance.  Lawyers in the firm's
London office work closely with the firm's US offices to serve
European and other international clients seeking to expand their
businesses across international borders.

                     About Brown Rudnick LLP

Brown Rudnick -- http://www.brownrudnick.com-- is an AmLaw 200
firm with offices in the United States and Europe.  With
relentless focus on the client's objectives, the Firm represents
clients from around the world in high stakes litigation and
business transactions.  The firm's clients include public and
private corporations, multinational Fortune 100 businesses and
start-up enterprises.  It also represents investors, as well as
official and ad hoc creditors committees in today's largest
corporate restructurings, both domestically and abroad.  The Brown
Rudnick Center for the Public interest is an innovative model
combining the Firm's pro bono, charitable giving and community
volunteer efforts.


* BOOK REVIEW: Corporate Debt Capacity
--------------------------------------
Author: Gordon Donaldson
Publisher: Beard Books, Washington, D.C. 2000 (reprint of 1961
book published by the President and Fellows of Harvard College).
294 pages.
List Price: US$34.95 trade paper, ISBN 1-58798-034-7.

"The research project who results are reported in this volume was
primarily concerned with the risk element involved in the
utilization of debt as a source of permanent capital for
business," Bertrand Fox, Director of Research, succinctly writes
in the "Foreword".  The research project was funded by and
conducted by an organization connected with Harvard College, the
original publishers of this book in the early 1960s.

The research was not a body of data for analysis as research
typically is in business studies or sociological studies.  In the
end, Donaldson recommends perspectives and practices going beyond
the research.  This doesn't necessarily go against the findings of
the research, but rather shows the limitations of the thinking of
most businesspersons at the time or their blind spots regarding
the role of debt, especially with respect to potentials for
growth, longevity, and other interests of business management.

The businesses are not identified.  Given Donaldson's credibility
and reputation and the Harvard name behind the research project
however, the research data is taken as factual and reliable. The
research was garnered from participating corporations and
financial institutions.

Though there are a few tables, the research is not limited to
financial information strictly as figures and other balance sheet
data.  Donaldson was interested as much in corporate leaders'
psychology and presumptions about debt more than current debt
situations and corporate policies regarding debt.  Financial
institutions were included as part of the study as well because
their views toward corporate debt and the way they worked with the
financial parts of corporations had an effect on corporate debt of
the time.

As Donaldson found from the research, both corporations and
financial institutions understood debt in conventional,
traditional, ways.  For the corporations, these ways could be
hampering operations and strategy.  The ways corporations were
being hampered were unseen however unless they started looking at
their books differently and became open to taking on debt
differently. Donaldson's singular achievement was to see in the
research ways in which corporations were being hampered and in
thus propose a new way of regarding debt.  This was a
revolutionary step for the large majority of businesses.  And for
even the small number of businesses which were pursuing
unconventional debt practices, Donaldson's studies and new
perspective put these on solid ground giving better guidance.

Donaldson's readings of the research reflect corporate managers'
own statements (also part of the research) regarding their views
on their company's financial analysis and debt.  Managers are
quoted, "Our management is essentially conservative."; "The word
which describes our corporate image is 'dignified'."; "I supposed
in a way we're lazy." The author treats these as "attitudes"--as
in a chapter "Management Attitudes to Non-Debt Sources"--realizing
that it is such "attitudes" more than what financial figures
disclose or debt itself which colors practices about the
fundamental business matter of debt.

Donaldson brings into the open managers false sense of debt.  This
false sense is bound in with conventional, inherited concepts and
images of a corporation having no relation to facts.  Such
conventional views are perpetuated by an aversion to risk.  The
less debt, the less risk, according to the prevailing precept.
But Donaldson points out that managers who observe this actually
often pursue greater risks in product development, entering new
markets, mergers, and other activities.

Corporate "attitudes" to debt since the book's 1961 publication
attest to the deep influence of Donaldson's groundbreaking
perspective.  Consumer debt, the growth of credit cards, and other
financial phenomena also evidence changed regard of debt found in
Donaldson's work.  The tipping of the balance to too much debt for
many corporations and beyond cannot be attributed to the book
however.  For in urging new concepts and uses of debt for the
better management of corporations, Donaldson also goes into
determination and control of risks entailed in new types of debt.

Gordon Donaldson retired in 1993 after close to 20 years at the
Harvard Business School.


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

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

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

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


                            *********


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

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

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

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

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

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


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