TCREUR_Public/110825.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Thursday, August 25, 2011, Vol. 12, No. 168

                            Headlines


A U S T R I A

A-TEC INDUSTRIES: Wants Penta Investments to Narrow Offer


D E N M A R K

* DENMARK: FSA Probes DKK79BB Loans of Banks at Risk of Collapse


G R E E C E

* GREECE: Finland Open to Adjusting Collateral Arrangement


I R E L A N D

ALLIED IRISH: Mulls Staff Relocation to Head Office to Cut Cost
ANGLO IRISH: Gets Second-Round Bids for US Loan Portfolio
SMURFIT KAPPA: Moody's Changes Outlook on Ba3 Rating to Positive


K A Z A K H S T A N

ASTANA FINANCE: Creditor Committees Reject Restructuring Plan


N E T H E R L A N D S

QUEEN STREET: Moody's Upgrades Rating on Class E Notes to 'Ba3'
ZIGGO BOND: Moody's Upgrades CFR to 'Ba2'; Outlook Stable


S P A I N

TDA PASTOR: S&P Lowers Rating on Class B Notes to 'B'


S W E D E N

SAAB AUTOMOBILE: May Delay Payment of Employees' Wages for August


U N I T E D   K I N G D O M

LUMINAR GROUP: Replaces Auditor Week Before Debt-Covenant Tests


X X X X X X X X

* Upcoming Meetings, Conferences and Seminars




                            *********


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


A-TEC INDUSTRIES: Wants Penta Investments to Narrow Offer
---------------------------------------------------------
Lenka Ponikelska at Bloomberg News reports that A-Tec Industries
AG, which filed for insolvency last year, asked potential buyer
Penta Investments Ltd. to narrow its offer to just one of the
company's units.

According to Bloomberg, Jakub Korinek, Penta's investment manager
in charge of the bid, said that Penta, a Prague-based investment
company, was approached last week by A-Tec Chief Executive
Officer Mirko Kovats, who asked it to bid for only the minerals
and metals division.

"We're currently assessing the proposal, however, we consider
this change surprising and confusing," Bloomberg quotes Mr.
Korinek as saying in a phone interview from Vienna on Tuesday.

"We stand behind our original offer that is in line with the
insolvency rules," Mr. Korinek, as cited by Bloomberg, said.  He
wouldn't comment on whether a price for the unit was discussed,
Bloomberg notes.

A-Tec declined to comment on a narrowing of bids, Bloomberg
states.

Penta, a Czech and Slovak private equity group, submitted a bid
to buy and restructure all A-Tec assets in June, Bloomberg
recounts.  Other bidders for A-Tec include hedge fund Springwater
Capital and Pakistani billionaire Alshair Fiyaz, Blomberg says,
citing Format magazine.

Bloomberg relates that Format said the company's supervisory
board was set to meet yesterday to discuss bids.

On Oct. 22, 2010, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported that A-Tec sought court clearance to
reorganize debt after losing access to its line of credit because
of an Australian power-station project's financial difficulties.
A-Tec said in an Oct. 20 statement that it had filed for self-
administered reorganization proceedings at the Vienna Commercial
Court and appointed trustees for bondholders, Bloomberg
disclosed.  The company has a EUR798 million (US$1.11 billion)
revolving credit facility and EUR302 million in outstanding
bonds, according to Bloomberg data.

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.


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


* DENMARK: FSA Probes DKK79BB Loans of Banks at Risk of Collapse
----------------------------------------------------------------
According to Bloomberg News' Tasneem Brogger, Copenhagen-based
newspaper Borsen, citing confidential documents from Denmark's
new bank bill, said that the country's Financial Supervisory
Authority is probing combined bank loans of DKK79 billion
(US$15.3 billion) given by lenders "in danger of collapsing."

Bloomberg relates that an unidentified person close to the talks
told the newspaper that the legislation is close to being
approved by lawmakers.


===========
G R E E C E
===========


* GREECE: Finland Open to Adjusting Collateral Arrangement
----------------------------------------------------------
Kati Pohjanpalo at Bloomberg News reports that Prime Minister
Jyrki Katainen said Finland is open to adjusting its collateral
arrangement with Greece after several euro members criticized the
Nordic country for securing a bilateral deal to protect its
commitment.

"Everybody knew beforehand that this is a red line for us, we
have tried to solve the problem, we have done it together with
Greece," Bloomberg quotes Mr. Katainen as saying on Sunday in an
interview in Helsinki.  "It's a well-functioning technical
solution, but if this particular model isn't possible, then we
have to try to find another model."

Finland's Aug. 16 announcement that it had secured extra
assurances its contribution to a second Greek bailout will be
repaid triggered a backlash of criticism and prompted calls for
similar deals from Austria and the Netherlands, which both share
Finland's AAA rating, as well as Slovakia and Slovenia, Bloomberg
recounts.  Austria has warned Finland's collateral deal threatens
to undermine rescue efforts, Bloomberg relates.

"I don't think there is a risk, because everybody knows that we
have this opinion that we need collateral," Mr. Katainen, as
cited by Bloomberg, said.  "We have told our partners in Europe
and the euro zone the reason why this is important.  It's a part
of our government agreement and we know that it will not change.
We also know that it's a delicate issue in many countries and
it's our responsibility to find a solution to it."

Austrian Finance Minister Maria Fekter has proposed a separate
collateral model after deriding Finland's arrangement as being
"financially unviable" and having the potential to "blow up"
Greece's second rescue package, Bloomberg discloses.  The
government in Vienna wants euro members to have less access to
collateral deals if their banks are already benefiting from
incentives included in the private sector portion of Greece's new
EUR159 billion rescue, Bloomberg states.

Finland's agreement requires Greece to deposit cash in a state
account that the Nordic country will invest in top-rated bonds,
according to Bloomberg.  The interest generated will raise the
amount to cover Finland's bailout contribution, Bloomberg says.
Ms. Fekter said that the deposit will be equal to 20% of the
collateral needed, Bloomberg notes.


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


ALLIED IRISH: Mulls Staff Relocation to Head Office to Cut Cost
---------------------------------------------------------------
Laura Noonan at Irish Independent reports that Allied Irish Banks
plc believes it can cut EUR18 million from its annual cost base
by moving 1,000 staff from offices around Dublin city center to
the bank's sprawling head office complex in Ballsbridge.

The savings target is revealed in an internal bank email, which
AIB "transformation director" Keith Davies sent to staff last
week, to outline details of the relocation program, Irish
Independent discloses.

AIB executive chairman David Hodgkinson had previously told the
Irish Independent the bank was negotiating with landlords about
ways to "improve our use of property from a cost point of view."

The office move is one of the most visible parts of a
transformation that will see AIB radically shrink its size and
reshape its business, Irish Independent notes.  The bank is
gearing up to begin a 2,000 redundancy program in October,
pending agreement with trade unions and the Department of Finance
on severance terms, Irish Independent relates.

AIB has also committed to slimming down its portfolio by some
EUR19.4 billion over the next three years, and has a dedicated
'non-core' unit to handle the process, Irish Independent states.

                 About Allied Irish Banks, p.l.c.

Allied Irish Banks, p.l.c. -- http://www.aibgroup.com/-- is a
major commercial bank based in Ireland.  It has an extensive
branch network across the country, a head office in Dublin and a
capital markets operation based in the International Financial
Services Centre in Dublin.  AIB also has retail and corporate
businesses in the UK, offices in Europe and a subsidiary company
in the Isle of Man and Jersey (Channel Islands).

Since the onset of the global and Irish financial crisis, AIB's
relationship with the Irish Government has changed significantly.

As at Dec. 31, 2010, the Government, through the National Pension
Reserve Fund Commission ("NPRFC"), held 49.9% of the ordinary
shares of the Company (the share of the voting rights at
shareholders' general meetings), 10,489,899,564 convertible non-
voting ("CNV") shares and 3.5 billion 2009 Preference Shares.  On
April 8, 2011, the NPRFC converted the total outstanding amount
of CNV shares into 10,489,899,564 ordinary shares of AIB, thereby
increasing its holding to 92.8% of the ordinary share capital.

In addition to its shareholders' interests, the Government's
relationship with AIB is reflected through formal and informal
oversight by the Minister and the Department of Finance and the
Central Bank of Ireland, representation on the Board of Directors
(three non-executive directors are Government nominees),
participation in NAMA, and otherwise.

As reported by the TCR on May 31, 2011, KPMG, in Dublin, Ireland,
noted that there are a number of material economic, political and
market risks and uncertainties that impact the Irish banking
system, including the Company's continued ability to access
funding from the Eurosystem and the Irish Central Bank to meet
its liquidity requirements, that raise substantial doubt about
the Company's ability to continue as a going concern.

The Company reported a net loss of EUR10.16 billion on
EUR1.84 billion of interest income for 2010, compared with a net
loss of EUR2.33 billion on $2.87 billion of interest income for
2009.


ANGLO IRISH: Gets Second-Round Bids for US Loan Portfolio
---------------------------------------------------------
Laura Noonan at Irish Independent reports that Anglo Irish Bank
on Tuesday night received second-round bids for its
US$9.5 billion US loan portfolio, which is expected to fetch more
than US$7 billion.

Some reports suggested that as few as five bidders had submitted
bids, Irish Independent says.

The opening round of offers attracted interest from as many as 25
investment groups, including some of the biggest names in global
finance, Irish Independent discloses.

According to Irish Independent, many of the bidders were acting
in consortium and most wanted to purchase only parts of Anglo's
248 commercial loans, stretching from Manhattan to Boston to
Florida.

It is expected that Anglo may provide some update on the process
tomorrow, when it reports its first-half results, Irish
Independent notes.

Some EUR1.9 billion (or about US$2.7 billion) of provisions had
been taken on the US loans by the end of last year, implying that
the nationalized bank would make a gain if the loans were to sell
for anything over US$6.8 billion, Irish Independent recounts.

Any funds raised from the sale would also help the bank reduce
its EUR45 billion dependence on central bank funding, which
includes some EUR28.1 billion of "exceptional" support from the
Central Bank of Ireland, Irish Independent states.

                      Irish Nationwide Merger

As reported by the Troubled Company Reporter-Europe on July 1,
2011, BreakingNews.ie related that The European Commission
cleared a bailout plan for Anglo Irish Bank and the Irish
Nationwide Building Society.  BreakingNews.ie disclosed that the
proposal, which was submitted for approval in January, provides
for the merger of the two troubled institutions and their winding
down over the next 10 years.  Anglo Irish and Irish Nationwide
jointly received EUR34.7 billion in capital injections from the
State to cover losses on property loans, BreakingNews.ie noted.

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


SMURFIT KAPPA: Moody's Changes Outlook on Ba3 Rating to Positive
----------------------------------------------------------------
Moody's Investors Service has changed to positive from stable the
rating outlook for Smurfit Kappa Group plc (SKG).  Concurrently,
Moody's has affirmed the group's Ba3 corporate family rating
(CFR) and probability of default rating (PDR). All ratings of the
group remain unchanged.

Ratings Rationale

"The change of outlook to positive from stable reflects SKG's
solid progress in increasing its financial flexibility, achieved
on the back of recovering operating profitability and
considerable free cash flow generation applied towards net debt
reduction over the past quarters," says Anke Rindermann, a
Moody's Assistant Vice President and lead analyst for SKG. "The
rating action also reflects management's guidance for continued
focus on net debt reduction, which in Moody's view is likely to
support further gradual improvements in the group's debt coverage
metrics over the short to medium term, despite an increasingly
uncertain economic climate," adds Ms. Rindermann.

However, Moody's notes that the long-term structural demand
growth trend for paper-based packaging products in Europe remains
intact, while implemented cost cuts as well as the lower debt
load is likely to limit future credit metric volatility. In
addition, applying its central scenario of a continued but
sluggish economic recovery, Moody's expects that SKG is likely to
be able to achieve and sustain credit metrics that are
commensurate with a higher rating, as exemplified by a retained
cash flow/(RCF) debt ratio in the mid-teens in percentage terms.

During first half 2011, SKG delivered solid revenue growth of 14%
year-over-year and reported EBITDA improvements of 25%. Key
drivers were a solid recovery in European corrugated box prices,
benefits from implemented cost savings as well as the strong
performance of the group's Latin American operations. While high
input cost inflation for key raw materials, such as recovered
fibre and energy, continued to pressure the profitability of the
group, its cash flow generation remained strong, as evidenced by
positive free cash flow of EUR59 million generated in first half
2011, despite a considerable build-up in working capital. Given
anticipated further net debt reductions and SKG's strong focus on
further recovering high input costs through targeted price
increases in its corrugated operations, Moody's believes that the
group is likely to be able to sustain improvements in credit
metrics, even in a scenario of more difficult trading conditions.

Therefore, the positive rating outlook indicates that Moody's
could upgrade SKG's ratings over the next few quarters if the
group establishes a track record of maintaining current metric
levels as well as a balanced financial policy, thereby
demonstrating its resilience in a scenario of potentially less
benign market conditions.

More fundamentally, SKG's Ba3 CFR takes into account the group's
(i) leading market positions for paper-based packaging in Europe
and Latin America; (ii) good geographic diversification; (iii)
strong and relatively stable operating margins through the cycle,
supported by its integrated containerboard and corrugated
operations; (iv) track record of solid free cash flow generation;
and (v) solid financial flexibility, with Moody's expecting the
group to take a proactive approach towards managing its 2013-14
peak debt maturities.

SKG's rating is constrained by the (i) cyclical and highly
competitive nature of the industry, which leaves little room for
differentiation and the resulting commodity character of large
parts of SKG's product portfolio; (ii) the group's low segmental
diversification as a result of its focus on kraftliner, testliner
and corrugated packaging products; and (iii) its still elevated
debt levels on a Moody's adjusted basis, although Moody's takes
comfort from management's stated intention to achieve further
debt reductions.

There would likely be upward pressure on SKG's rating if the
group were to (i) establish a track record of EBITDA margins
above 12%; (ii) improve its EBITDA/interest coverage such that it
moved towards 3.0x; (iii) achieve an RCF/debt ratio in the mid-
teens in percentage terms while preserving solid financial
flexibility.

Moody's would consider downgrading SKG's rating if the group's
EBITDA margins were to trend below 10%, or its leverage in terms
of RCF/debt were to fall below 10%. In addition, material
negative free cash flow generation or significantly tightening
covenant headroom could exert pressure on the rating.

Outlook Actions:

   Issuer: Smurfit Kappa Acquisitions

   -- Outlook, Changed To Positive From Stable

   Issuer: Smurfit Kappa Funding plc

   -- Outlook, Changed To Positive From Stable

   Issuer: Smurfit Kappa Group plc

   -- Outlook, Changed To Positive From Stable

   Issuer: Smurfit Kappa Treasury Funding Limited

   -- Outlook, Changed To Positive From Stable

Previous Rating Action & Principal Methodology

The principal methodology used in rating Smurfit Kappa Group plc
was the Global Paper and Forest Products Industry Methodology
published in September 2009. Other methodologies used include
Loss Given Default for Speculative-Grade Non-Financial Companies
in the U.S., Canada and EMEA published in June 2009. Please see
the Credit Policy page on www.moodys.com for a copy of these
methodologies.

Smurfit Kappa Group plc, headquartered in Dublin, Ireland, is
Europe's leading manufacturer of containerboard and corrugated
containers as well as specialty packaging, such as bag-in-box
packaging of liquids. The group also holds the leading position
for its major product lines in Latin America. SKG reported EUR7.1
billion in revenues in the last 12 months ending June 2011.


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


ASTANA FINANCE: Creditor Committees Reject Restructuring Plan
-------------------------------------------------------------
JSC Astana Finance on Aug. 23 disclosed that, in connection with
the ongoing financial restructuring of the Company's debt
obligations, the Company's most recent restructuring proposals
made (subject to contract) to the international creditors'
committee and certain export credit agencies, in the letter sent
on behalf of the Company to their respective legal advisers dated
July 26, 2011 and published by RNS on August 4, 2011, have been
rejected by the Creditors' Committees.

The Company reiterates that a negotiated restructuring remains
its preferred outcome and that it will continue to engage with
the  Creditors' Committees with this objective in mind.

Joint Stock Company Astana Finance (Astana Finance), through its
subsidiaries, provides various financial products and services in
the Republic of Kazakhstan.  It provides current accounts, saving
accounts, and other deposits; investment savings products; and
various loans comprising mortgage, consumer, and car loans, as
well as other credit facilities.


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


QUEEN STREET: Moody's Upgrades Rating on Class E Notes to 'Ba3'
--------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of these notes
issued by Queen Street CLO I B.V:

Issuer: Queen Street CLO I B.V.:

   -- EUR66.5M Class A2 Senior Secured Floating Rate Notes due
      2023, Upgraded to Aaa (sf); previously on Jun 22, 2011 Aa2
      (sf) Placed Under Review for Possible Upgrade

   -- EUR38.75M Class B Senior Secured Floating Rate Notes due
      2023, Upgraded to Aa3 (sf); previously on Jun 22, 2011 A2
      (sf) Placed Under Review for Possible Upgrade

   -- EUR41.3M Class C1 Senior Secured Deferrable Floating Rate
      Notes due 2023, Upgraded to Baa1 (sf); previously on
      Jun 22, 2011 Ba2 (sf) Placed Under Review for Possible
      Upgrade

   -- EUR1.2M Class C2 Senior Secured Deferrable Fixed Rate Notes
      due 2023, Upgraded to Baa1 (sf); previously on Jun 22, 2011
      Ba2 (sf) Placed Under Review for Possible Upgrade

   -- EUR12.95M Class D1 Senior Secured Deferrable Floating Rate
      Notes due 2023, Upgraded to Ba1 (sf); previously on Jun 22,
      2011 B3 (sf) Placed Under Review for Possible Upgrade

   -- EUR5.8M Class D2 Senior Secured Deferrable Fixed Rate Notes
      due 2023, Upgraded to Ba1 (sf); previously on Jun 22, 2011
      B3 (sf) Placed Under Review for Possible Upgrade

   -- EUR20M Class E Senior Secured Deferrable Floating Rate
      Notes due 2023, Upgraded to Ba3 (sf); previously on Jun 22,
      2011 Caa2 (sf) Placed Under Review for Possible Upgrade

   -- EUR7M Class X Combination Notes due 2023, Upgraded to Baa1
      (sf); previously on Jun 22, 2011 Ba3 (sf) Placed Under
      Review for Possible Upgrade

   -- EUR10M Class Y Combination Notes due 2023, Upgraded to Baa3
      (sf); previously on Jun 22, 2011 B3 (sf) Placed Under
      Review for Possible Upgrade

   -- EUR33.14M Class Z Combination Notes due 2023, Upgraded to
      Aaa (sf); previously on Jun 22, 2011 Aa2 (sf) Placed Under
      Review for Possible Upgrade

The ratings of the Combination Notes address the repayment of the
Rated Balance on or before the legal final maturity. For Classes
X, Y and Z, which do not accrue interest, the 'Rated Balance' is
equal at any time to the principal amount of the Combination Note
on the Issue Date minus the aggregate of all payments made from
the Issue Date to such date, either through interest or principal
payments. The Rated Balance may not necessarily correspond to the
outstanding notional amount reported by the trustee.

Ratings Rationale

Queen Street CLO I B.V. issued in January 2007, is a single
currency Collateralised Loan Obligation ("CLO") backed by a
portfolio of mostly high yield European loans. The portfolio is
managed by Indicus Investment Management Ltd. This transaction
will be in reinvestment period until April 15, 2013. It is
predominantly composed of senior secured loans but with exposure
to mezzanine obligations (8.02%) and CLO securities (4.13%).

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 also reflect
consideration of credit improvement of the underlying portfolio

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 modeling framework. Additional changes to the
modelling assumptions include (1) standardizing the modelling of
collateral amortization profile, (2) changing certain credit
estimate stresses aimed at addressing the lack of forward looking
indicators as well as time lags in receiving information required
for credit estimate updates and (3) adjustments to the equity
cash-flows haircuts applicable to combination notes.

Improvement in the credit quality is observed through a better
average credit rating of the portfolio (as measured by the
weighted average rating factor "WARF"). In particular, as of the
latest trustee report dated July 2011, the WARF is currently 2671
compared to 2706 in the October 2009 report. However, the
reported WARF understates the actual improvement in credit
quality because of the technical transition related to rating
factors of European corporate credit estimates, as announced in
the press release published by Moody's on September 1, 2010.
Additionally, defaulted securities total about EUR3.97 million of
the underlying portfolio compared to EUR13.21 million in October
2009.

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 EUR485.78
million, defaulted par of EUR3.97 million, a weighted average
default probability of 20.823% (consistent with a WARF of 2679),
a weighted average recovery rate upon default of 45.18% for a Aaa
liability target rating, a diversity score of 32 and a weighted
average spread of 2.75%. 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
2015 which may create challenges for issuers to refinance. CLO
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) Moody's also notes that around 54% of the collateral pool
   consists of debt obligations whose credit quality has been
   assessed through Moody's credit estimates.

2) 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.

3) 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.

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, weighted average spread and diversity score.

The principal methodology used in the 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.


ZIGGO BOND: Moody's Upgrades CFR to 'Ba2'; Outlook Stable
---------------------------------------------------------
Moody's Investors Service has upgraded the corporate family
rating (CFR) and probability of default (PDR) ratings of Ziggo
Bond Company B.V. to Ba2 from Ba3. Concurrently, Moody's upgraded
the rating on the EUR750 million senior secured notes due 2017 to
Ba1 from Ba2 and the rating on the EUR1.2 billion senior notes
due 2018 to B1 from B2. The outlook on the ratings is stable.

Ratings Rationale

The upgrade reflects (i) Ziggo's consistent track record of
operating performance over the past 18 months, translating into
better revenue and EBITDA growth than originally anticipated;
(ii) the de-leveraging of the group through meaningful free cash
flow generation, to a level that is now commensurate with a Ba2
rating category; (iii) good visibility for Ziggo to continue to
grow the business within its own footprint; and (iv) a regulatory
environment that continues to be favorable to cable in the
Netherlands.

At the same time, the Ba2 CFR continues to reflect (i) the
intense competition in the Netherlands' TV and broadband markets
and (ii) Ziggo's still leveraged capital structure under the
current ownership.

During 2010 and H1 2011, Ziggo grew revenue by approximately 7%,
mainly contributed by RGU and triple play penetration as well as
the conversion of customers from basic analog packages into
digital TV and Pay TV. Moody's believes there remains room for
Ziggo to pursue this strategy and continue to grow the business
whilst maintaining EBITDA margin around 55%. In addition, Moody's
expects Capex spend to remain in the mid teens (as a % of sales)
going forward and the group to continue to generate strong free
cash flow and comfortably de-leverage overtime. As of June 2011,
Ziggo had a leverage of approximately 4.2x adjusted debt to
EBITDA and free cash flow to debt around 9%.

The rating does not incorporate any event risk related to a
potential change in the group's ownership structure. Moody's
notes that Ziggo's capital structure allows for a change of
control under certain circumstances without triggering a put for
note holders provided that the group's consolidated leverage is
below 4.5x. Moody's notes that future rating improvements may be
limited by the absence of a publicly articulated financial
policy, also tied in to potential exit strategy of Ziggo's
private equity shareholders.

Upward pressure on the rating could be exerted if (i) adjusted
debt/ EBITDA falls below 4.0x and free cash flow to debt remains
around its current level and (ii) there is greater clarity
regarding longer-term ownership and related financial policy.

Downward pressure on the rating could be seen if (i) the
company's operating performance significantly deteriorates; (ii)
adjusted debt/EBITDA increases towards 5.0x; or (iii) free cash
flow to debt falls to about 5%.

The last rating action on Ziggo was implemented on October 21,
2010, when Moody's assigned (P)Ba2 rating to Ziggo's senior
secured notes due 2017.

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

Ziggo, with central offices in Utrecht, is the largest cable
operator in the Netherlands. In the last twelve months to
June 30, 2011, the company reported approximately EUR1.4 billion
in revenue and EUR783 million in recurring EBITDA.


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


TDA PASTOR: S&P Lowers Rating on Class B Notes to 'B'
-----------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on TDA Pastor Consumo 1,
Fondo de Titulizacion de Activos' class A and B notes. The
class C notes are unaffected.

"On April 27, 2011, we took various rating actions in this
transaction following a review of the credit quality of the
underlying collateral of consumer loans (see 'Ratings Lowered In
Spanish Consumer ABS Transaction TDA Pastor Consumo 1'). Since
then, we have reviewed the underlying collateral in the
transaction again, and as was the case in April, we have updated
our default and recovery assumptions," S&P related.

The collateral in this transaction comprises unsecured loans
granted between 1999 and 2007 by Banco Pastor S.A. to Spanish
residents to finance consumer goods and services. The revolving
period was initially scheduled to last two years from the closing
date, but as required by the transaction documents, it was
terminated early in October 2008 when the level of assets in
arrears for more than 90 days reached the 2.25% trigger level.

"Following our April observations, defaults have continued to
increase and recoveries are lower than expected. As a result, the
transaction is currently undercollateralized and our 'CCC (sf)'
rating on the class C notes reflects our opinion that the issuer
will not have the capacity to meet its financial commitment in
respect of the principal due at maturity on this class. While the
level of credit enhancement provided by the performing balance
remains positive for the class A and the class B notes, it is
below zero for the class C notes," S&P stated.

Based on the latest available investor report from the trustee
(dated July 2011), the pool factor is at 28%, with assets
classified as delinquent (arrears between three months and 18
months from the payment due date) accounting for 4.00% of the
current portfolio and 1.24% of the portfolio's closing balance.

"Although we have continued to observe stabilizing -- or even
marginally decreasing in the case of some baskets -- delinquency
levels since our April review, long-term delinquencies have
continued to roll into default. As these delinquencies continue
to roll into defaults, they are associated with very low recovery
levels on defaulted assets observed in the transaction's
portfolio. Based on the latest available data, cumulative
defaulted assets account for 4.86% of the original pool balance
at closing, compared with the April 2011 level of 4.20%," S&P
related.

"The level of recoveries on defaulted assets is lower than our
initial assumptions at closing. As a consequence, we have lowered
our recovery assumptions, resulting in a significant increase in
our loss given default expectations," S&P noted.

"The reserve fund has been fully depleted since July 2010. As
already observed in our April review, the excess spread provided
by the interest rate swap is more than offset by the level of
nonperforming assets. This would indicate that, in some
scenarios, the reserve fund is unlikely to be replenished.
Consequently, in the absence of any reserve fund, the transaction
relies solely on excess spread to cure defaults, which we believe
is insufficient.
Furthermore, in some scenarios, we anticipate that current levels
of undercollateralization would likely increase as principal
would be drawn to fund interest," S&P noted.

"We have also applied our Credit Stability criteria to our
analysis in order to factor in the likelihood of the underlying
portfolio experiencing unusually large adverse movements in its
credit quality under conditions of moderate stress (see
'Methodology: Credit Stability Criteria,' published on May 3,
2010)," S&P related.

"As a consequence of all of the factors, we have lowered our
ratings on the class A and B notes to reflect our view of the
weakening capacity of the issuer to meet its financial
commitments. Our ratings on the notes in this transaction address
the timely payment of interest due under the rated notes, and
ultimate payment of principal at maturity of the rated notes,"
S&P noted.

Ratings List

TDA Pastor Consumo 1, Fondo de Titulizacion de Activos
EUR300 Million Asset-Backed Floating-Rate Notes

Class                 Rating
           To                      From

Ratings Lowered and Removed From CreditWatch Negative

A          BB- (sf)                BBB- (sf)/Watch Neg
B          B (sf)                  BB-(sf)/Watch Neg(sf)

Rating Unaffected

C          CCC (sf)


===========
S W E D E N
===========


SAAB AUTOMOBILE: May Delay Payment of Employees' Wages for August
-----------------------------------------------------------------
BBC News reports that Saab Automobile has said it may not have
the funds to pay its employees' wages on time in August.

If so, this will be the third consecutive month that at least
some of Saab's 3,700 employees will have seen their salaries
delayed, BBC notes.

Swedish Automobile, Saab's new owner, has been trying to find new
sources of funding since April, when production was halted as
unpaid suppliers stopped deliveries, BBC relates.

According to BBC, analysts say Saab needs a long-term investor to
solve its liquidity problems.

"There is a risk of delayed payment of August wages to Saab
Automobile employees as some of the funds that were committed by
investors may not be paid in time," BBC quotes Saab and Swedish
Automobile as saying in a statement.  It added that Saab was
taking "all necessary actions" to collect those funds in time but
there could be "no assurance that the necessary funding will be
obtained or the funds collected."

Saab Automobile AB is a Swedish car manufacturer.


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


LUMINAR GROUP: Replaces Auditor Week Before Debt-Covenant Tests
---------------------------------------------------------------
Rose Jacobs at The Financial Times reports that Luminar Group has
dropped its auditor a week before its debt-covenant tests are
widely expected to fail.

According to the FT, the company told shareholders on Tuesday
that PricewaterhouseCoopers has resigned after the board decided
"a fresh audit relationship would benefit the Luminar group
moving forward".  Luminar will hire KPMG instead, the FT says.

The move comes a week before tests on the group's banking
covenants are due next Wednesday, the FT notes.

Lloyds Banking Group, Barclays and Royal Bank of Scotland,
Luminar's lenders, agreed to waive the tests in May to give time
to "determine the appropriate basis for a longer term
restructuring of the group's debt arrangements in light of
continued challenging trading conditions", the company previously
said, the FT recounts.

Luminar has seen double-digit sales declines in quarter after
quarter in recent years, the FT discloses.  It went from pre-tax
profits of GBP5.5 million last year to a loss of GBP1.1 million
in 2010/11, the FT relates.  Its net debt stood at GBP82.2
million in May, a slight improvement on the GBP92.7 million it
owed the year before, the FT discloses.

Simon French, an analyst with Panmure Gordon, as cited by the FT,
said that a restructuring looked inevitable: "If they couldn't
meet [covenants] in May, given the trading update in July where
like-for-likes dropped 12%, I can't really see how things would
have turned around since then."

Panmure Gordon's Mr. French expect that the lenders might be
reluctant to agree to debt for equity swaps, the FT discloses.
"Banks probably won't want to take any of this on the balance
sheet," the FT quotes Mr. French as saying.  The banks might also
decide to waive the covenant tests once more, giving Luminar time
to sell freeholds to pay down debt, the FT states.

The tests measure two metrics: net debt to earnings before
interest, tax, depreciation and amortization, and fixed interest
cover, the FT notes.

Based in Milton Keynes, United Kingdom, Luminar Group Holdings
plc -- http://www.luminar.co.uk/-- is engaged in the ownership,
development and operation of nightclubs and themed bars.  Its
main branded venues are Oceana, Liquid, and Lava & Ignite.  The
company's product brands include Big Night Out, Vibe, Red Carpet
Moments and UK Club Culture (UKCC).


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


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

Oct. 14, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     NCBJ/ABI Educational Program
        Tampa Convention Center, Tampa, Fla.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. __, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     International Insolvency Symposium
        Dublin, Ireland
           Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 25-27, 2011
  TURNAROUND MANAGEMENT ASSOCIATION
     Hilton San Diego Bayfront, San Diego, CA
        Contact: http://www.turnaround.org/

Dec. 1-3, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     23rd Annual Winter Leadership Conference
        La Quinta Resort & Spa, La Quinta, Calif.
           Contact: 1-703-739-0800; http://www.abiworld.org/

April 3-5, 2012
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Spring Conference
        Grand Hyatt Atlanta, Atlanta, Ga.
           Contact: http://www.turnaround.org/

Apr. 19-22, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Annual Spring Meeting
        Gaylord National Resort & Convention Center,
        National Harbor, Md.
           Contact: 1-703-739-0800; http://www.abiworld.org/

July 14-17, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Southeast Bankruptcy Workshop
        The Ritz-Carlton Amelia Island, Amelia Island, Fla.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Aug. 2-4, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Mid-Atlantic Bankruptcy Workshop
        Hyatt Regency Chesapeake Bay, Cambridge, Md.
           Contact: 1-703-739-0800; http://www.abiworld.org/

November 1-3, 2012
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Annual Convention
        Westin Copley Place, Boston, Mass.
           Contact: http://www.turnaround.org/

Nov. 29 - Dec. 2, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Winter Leadership Conference
        JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
           Contact: 1-703-739-0800; http://www.abiworld.org/

April 10-12, 2013
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Spring Conference
        JW Marriott Chicago, Chicago, Ill.
           Contact: http://www.turnaround.org/

October 3-5, 2013
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Annual Convention
        Marriott Wardman Park, Washington, D.C.
           Contact: http://www.turnaround.org/


                            *********

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

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

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

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


                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *