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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

              Friday, August 26, 2011, Vol. 12, No. 169

                            Headlines



F R A N C E

CEGEDIM SA: S&P Affirms BB Rating on EUR300-Mil. Unsecured Notes


G E R M A N Y

SEMPER FINANCE: Fitch Lifts Rating on Class E Notes to 'BB+sf'


I R E L A N D

ALLIED IRISH: Exits NYSE Listing as Govt. Hikes Stake to 99.8%
BANK OF IRELAND: To Impose 60% Haircut UK Junior Bond Investors
DRYDEN XV: Moody's Upgrades Rating on Class E Notes to 'Ba2 (sf)'
HOME PAYMENTS: High Court Confirms Winding Up
IRISH LIFE: Investors Tender EUR265 Million of Subordinated Bonds

VALLAURIS II: Moody's Upgrades Rating on Class IV Notes to 'Caa1'


I T A L Y

THINK3 INC: Taps Asaha Law Offices for Japanese Proceeding
THINK3 INC: U.S. Court Approves Federico Cornia for Italian Case


K A Z A K H S T A N

BMB MUNAI: Reports US$4.3 Million Net Income in June 30 Quarter


N E T H E R L A N D S

GROSVENOR PLACE: Moody's Upgrades Rating on Class E Notes to Ba2


R U S S I A

BANK OF MOSCOW: VTB Says Takeover Not Politically Motivated
CONTINENT AIR: Bankruptcy-Related Passenger Woes to be Resolved
SOBINBANK: Moody's Affirms 'E+' Bank Financial Strength Rating
* RYAZAN REGION: Fitch Affirms LT Foreign Currency Rating at 'B+'


S W E D E N

QUINN INVESTMENTS: Quinn Family Loses Appeal on Forced Bankruptcy
SAAB AUTOMOBILE: Unions May Push for Bankruptcy Over Pay Delay

U N I T E D   K I N G D O M

ADROIT CONSTRUCTION: Goes Into Administration, Taps Administrator
THE BOOMERANG: Owners Place Site Into Administration, Seek Buyer
FLOORS-2-GO: Goes Into Administration, Cuts 192 Job
INVESTEC BANK: Moody's Changes Outlook on 'D' BFSR to Stable
JAVIS: Ex-Workers to Get GBP3 Million in Redundancy Pay

JP CORRY: Business as Usual Following Liquidation
MEZZVEST INVESTMENTS: S&P Withdraws CCC+ Rating on Class D Notes
NORTH PENNINES: Wardell Armstrong Buys Firm Out of Administration
TALENTNATION PLC: Founder to Defend Liquidation Order
TJ HUGHES: Set to Close All Remaining Stores

UNIQ PLC: Plans to Close Part of Dessert Business, Axes 350 Jobs
YELL GROUP: Covenant Breach Risk Prompts S&P to Junk Ratings
* UK: Insolvencies in Large Firms Drop 13% in July 2011


X X X X X X X X

* EUROPE: CLO Defaults May Surge in Coming Years, S&P Says
* BOOK REVIEW: The Folklore of Capitalism


                            *********


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F R A N C E
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CEGEDIM SA: S&P Affirms BB Rating on EUR300-Mil. Unsecured Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services revised its recovery rating to
'3' from '4' on the EUR300 million unsecured notes maturing in
2015, issued by French health care software and services firm
Cegedim S.A. (BB/Negative/--). "The recovery rating of '3'
reflects our expectation of meaningful (50%-70%) recovery for
creditors in the event of a payment default. At the same time, we
affirmed our 'BB' long-term issue rating on the unsecured notes.
The issue rating is in line with the corporate credit rating on
Cegedim," S&P related.

"We have revised our recovery rating on the unsecured notes in
light of Cegedim's refinancing of its bank facilities in June
2011. Cegedim used the proceeds of a new EUR200 million
amortizing term loan A and EUR80 million revolving credit
facility (RCF) due 2016 to refinance the previous bank
facilities," S&P related.

                        Recovery Analysis

"The issue and recovery ratings on the unsecured notes due 2015
reflect the unsecured nature of the notes and Cegedim's
postdefault exposure to the French insolvency regime, which we
view as relatively unfavorable for creditors. At the same time,
the ratings are supported by our valuation of the group as a
going concern, which translates into a stressed enterprise value
of about EUR420 million at our simulated point of default in
2014," S&P said.

"We understand that the new bank facilities do not benefit from
any security or guarantees, contrary to the previous facilities,
which were secured by share pledges and guaranteed by some of
Cegedim's subsidiaries. As a result, we consider that the
unsecured notes would rank pari passu with the bank facilities in
the postdefault waterfall. Following the refinancing of the bank
facilities, we acknowledge that there is no longer an
intercreditor agreement in place between the different
debtholders. While we understand that the EUR45 million
shareholder loan due 2014 is intended to be subordinated to both
the bank facilities and the unsecured notes, for the purpose of
our recovery analysis, we assume that the loan ranks pari passu
with the bank and bond debt because of the absence of an
intercreditor agreement. In addition, given that the shareholder
loan matures earlier than the unsecured notes and bank debt, we
believe that there is a risk that the shareholder loan lenders
could get priority over the unsecured noteholders, and that this
could further impair recovery prospects for the noteholders," S&P
related.

"To calculate potential recoveries, we simulate a payment
default. We believe that a default would most likely be triggered
by deterioration in Cegedim's operating performance and by its
subsequent incapacity to repay its scheduled term loan A
amortization. We envisage that operating underperformance would
result from an increase in competition, particularly in the
customer relationship management and strategic data segment,
resulting in a loss of customers. We also envisage that mergers
and acquisitions activity in the pharmaceutical industry would
lead to a reduction in the size of pharmaceutical companies'
medical sales forces, and therefore to a reduction in Cegedim's
clients," S&P stated.

In addition, S&P's assumptions include:

    A fully drawn RCF at the point of default.

    A 300-basis-point rise in interest rates on variable-rate
    debt by the time of default, to cover increased interest
    margins resulting from covenant breaches and potential
    increases in market rates on the unhedged portion of the
    debt.

"Our scenario leads Cegedim to default in financial 2014 (ending
Dec. 31), at which point EBITDA would have declined to
approximately EUR77 million. We value the business as a going
concern, given Cegedim's leading market positions and unique
business model. We estimate Cegedim's enterprise value at the
simulated point of default to be about EUR420 million, which
corresponds to a blended enterprise-value-to-EBITDA multiple of
about 5.5x," S&P related.

"After deducting EUR29 million of enforcement costs and another
EUR15 million of finance leases, we arrive at a net enterprise
value of about EUR376 million. We assume that the unsecured notes
would amount to EUR310 million at default, including six months
of prepetition interest, and that the pari passu shareholder loan
and bank facilities would amount to EUR46 million and EUR165
million, respectively. We assume that, at default, the bank
facilities would include a fully drawn EUR80 million RCF, an
outstanding term loan A of about EUR80 million, and their
prepetition interest. On this basis, recovery prospects for the
noteholders would be at the high end of the 50%-70% range, which
translates into a recovery rating of '3'. While the nominal
calculated recovery is slightly higher than the indicated
threshold, our criteria for the
insolvency regime of France and for unsecured debt instruments
caps the recovery rating at '3'," S&P said.

Ratings List

Rating Revised
                                       To                 From
Cegedim S.A.
Senior Unsecured Debt
  Recovery Rating                      3                  4

Rating Affirmed

Cegedim S.A.
Senior Unsecured Debt                 BB                 BB


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G E R M A N Y
=============


SEMPER FINANCE: Fitch Lifts Rating on Class E Notes to 'BB+sf'
--------------------------------------------------------------
Fitch Ratings has upgraded Semper Finance 2006-1 Ltd.'s class C,
D and E notes and affirmed the remaining classes, as follows:

  -- EUR188,284,112 Senior Swap affirmed at 'AAAsf'; Outlook
     Stable

  -- EUR69,222 Class A+ (ISIN: XS0274873941) affirmed at 'AAAsf';
     Outlook Stable EUR138,000,000 Class A (ISIN: XS0274874246)
     affirmed at 'AAAsf'; Outlook Stable

  -- EUR111,500,000 Class B (ISIN: XS0274874592) affirmed at
     'AAAsf' ; Outlook Stable

  -- EUR92,500,000 Class C (ISIN: XS0274874832) upgraded to
     'AAsf' from 'A+sf'; Outlook Positive

  -- EUR83,000,000 Class D (ISIN: XS0274875052) upgraded to at
     'BBB+sf' from 'BBBsf'; Outlook Positive

  -- EUR32,700,000 Class E (ISIN: XS0274875565) upgraded to
     'BB+sf' from 'BBsf'; Outlook Positive

The upgrades of the class C, D and E notes have been driven by
strong collateral performance and ongoing amortization.  Credit
enhancement levels have risen since the last rating action, while
the risk exposure has fallen.  There have been no credit events
since the transaction closed in 2006 while the reference pool has
reduced in size to EUR678.5 million from EUR1.85 billion,
primarily as a result of loan prepayments (EUR915 million) and
scheduled amortization (EUR231.3 million).  A number of loans
(totalling EUR26 million) have also been removed from the
reference pool for not meeting the eligibility criteria.

These positive factors are likely to continue to support credit
quality, which is reflected in the Positive Outlooks for the
class C, D and E notes.

The weighted average (WA) loan-to-value ratio has fallen to 48.1%
from 64.7% at close, while interest coverage has improved to 3.4x
from 2.7x.  WA vacancy increased slightly, to 7.7% from 7.2% at
close, although this has remained stable since the last rating
action.

Semper 2006-1 is a synthetic securitization of commercial
mortgage loans originated by Eurohypo AG ('A'/'F1'/RWN).
Eurohypo bought credit protection on the reference portfolio by
entering into a senior guarantee with a senior counterparty and
an issuer guarantee with Semper Finance 2006-1.  The issuer, in
turn, transferred its assumed risk to the capital markets by
issuing classes A+ to F credit-linked notes (CLNs).  In the event
of a credit event on the reference portfolio (bankruptcy of the
relevant borrower or failure to pay), losses will first be
allocated against the outstanding threshold amount of EUR25.07
million.  Any further losses will be allocated to the CLNs in
reverse order of seniority.  Amortization is applied on a fully-
sequential basis.

The notes are collateralized by full-recourse German commercial
real estate loans granted to operating housing associations.
Loan security consists of senior- or subordinate-ranking
mortgages on residential multi-family assets located in Eastern
Germany.


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


ALLIED IRISH: Exits NYSE Listing as Govt. Hikes Stake to 99.8%
--------------------------------------------------------------
Allied Irish Banks filed with the U.S. Securities and Exchange
Commission a Form 25 regarding the removal from listing or
registration of its American Depositary Shares, each representing
ten ordinary shares, par value EUR0.01 per share, from the New
York Stock Exchange.

The Board of Directors of the Company made the decision in light
of the increase in the Irish Government's shareholding to 99.8%
on July 27, 2011, and the savings in costs and administrative
efforts that would result from the delisting and any subsequent
deregistration under the Exchange Act.

                  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 US$2.87 billion of interest income for
2009.


BANK OF IRELAND: To Impose 60% Haircut UK Junior Bond Investors
---------------------------------------------------------------
Caroline Madden at The Irish Times reports that Bank of Ireland
on Wednesday said it would impose a 60% haircut on a group of UK
junior bond investors through a revised debt buyback offer.

In July the bank withdrew its original offer to swap GBP75
million (EUR85.3 million) in perpetual unsecured junior bonds for
cash or equities, citing administrative difficulties, The Irish
Times recounts.  The decision to terminate the offer came as the
lender faced a legal action by a British investor in the bonds
which were originally sold by Bristol and West Building Society,
which Bank of Ireland acquired in 1997, The Irish Times notes.

According to The Irish Times, a spokeswoman for the bank on
Wednesday said that the legal proceedings have now been resolved
"to the parties' mutual satisfaction".  The bank is now offering
to pay a total of GBP40.20 per GBP100 of bonds owned, The Irish
Times discloses.  This is broken down into a purchase price of
GBP35 plus accrued and unpaid interest of GBP5.20, and represents
a discount of roughly 60% of the face value of the bonds, The
Irish Times notes.  The proposal is part of the bank's drive to
raise capital through so-called bondholder burden-sharing, The
Irish Times states.

Bank of Ireland was ordered to raise EUR4.2 billion in cash and a
further EUR1 billion in contingency capital by the Central Bank
following the stress tests in March, The Irish Times recounts.

The bank, as cited by The Irish Times, said the latest offer is
voluntary and that bondholders are under no obligation to
participate.  The offer began on Wednesday and is expected to
close on Sept. 22, The Irish Times discloses.

The 13.375% bonds represent just 3% of the bank's subordinated
bondholders on whom losses are being imposed, according to The
Irish Times.

Bank of Ireland avoided falling into State ownership last month
after it attracted a EUR1.12 billion investment from a group of
five North American fund managers, The Irish Times recounts.  The
bank, The Irish Times says, will hold an extraordinary general
meeting in Dublin on Sept. 9 regarding the Government's agreement
to sell a 34.9% stake in the lender to these investors.

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

                          *     *     *

As reported by the Troubled Company Reporter-Europe on July 25,
2011, DBRS Inc. downgraded the ratings of certain subordinated
debt issued by The Governor and Company of the Bank of Ireland to
"D" from "C".  The downgrade follows the execution of the Group's
note exchange offer.


DRYDEN XV: Moody's Upgrades Rating on Class E Notes to 'Ba2 (sf)'
-----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of these notes
issued by Dryden XV - CLO 2006 P.L.C.:

   -- EUR34M Class B Senior Floating Rate Notes due 2023,
      Upgraded to Aa2 (sf); previously on Jun 22, 2011 A3 (sf)
      Placed Under Review for Possible Upgrade

   -- EUR29M Class C Senior Floating Rate Notes due 2023,
      Upgraded to A3 (sf); previously on Jun 22, 2011 Ba1 (sf)
      Placed Under Review for Possible Upgrade

   -- EUR23M Class D Senior Floating Rate Notes due 2023,
      Upgraded to Ba1 (sf); previously on Jun 22, 2011 B1 (sf)
      Placed Under Review for Possible Upgrade

   -- EUR16M Class E Senior Floating Rate Notes due 2023,
      Upgraded to Ba2 (sf); previously on Jun 22, 2011 Caa2 (sf)
      Placed Under Review for Possible Upgrade

   -- EUR7M Class V Combination Notes due 2023, Upgraded to Baa2
      (sf); previously on Jun 22, 2011 Ba2 (sf) Placed Under
      Review for Possible Upgrade

The ratings of the Class V Combination Note address the repayment
of the Rated Balance on or before the legal final maturity. 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

Dryden XV -- Euro CLO 2006 P.L.C., issued in March 2007, is a
multi currency Collateralised Loan Obligation ("CLO") backed by a
portfolio of mostly high yield European and US loans. The
portfolio is managed by Pramerica Investment Management. This
transaction will be in reinvestment period until April 15, 2013.
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 also reflect
consideration of an increase in the transaction's
overcollateralization ratios. In Moody's view, positive
developments coincide with reinvestment of sale proceeds
(including higher than previously anticipated recoveries realized
on defaulted securities) into substitute assets with higher par
amounts.

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 (1) standardizing the modeling of
collateral amortization profile, and (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.

The overcollateralization ratios of the rated notes have improved
since the rating action in January 2010. The Class A/B, Class C,
Class D and Class E overcollateralization ratios are reported at
128.16%, 117.84%,110.63% and 106.15% respectively, versus
December 2009 levels of 122.24%, 112.34%, 105.56% and 100.96%
respectively, and all related overcollateralization tests are
currently in compliance. Moody's also notes that the Class E
Notes are no longer deferring interest and that all previously
deferred interest has been paid in full. The portfolio par is
close to its level at Effective Date, the portfolio has a Caa
bucket of less than 6% and there are no single name exposures
greater than 3%. Additionally, defaulted securities total about
EUR10 million of the underlying portfolio compared to EUR25.3
million in December 2009.

Reported WARF has increased from 2587 to 2712 between December
2009 and July 2011. However, this reported WARF overstates the
actual deterioration 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.

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 EUR435.7
million, defaulted par of EUR10 million, a weighted average
default probability of 19.62% (consistent with a WARF of 2714), a
weighted average recovery rate upon default of 45.52% for a Aaa
liability target rating, a diversity score of 43 and a weighted
average spread of 3.01%. 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.

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
analyzed the impact of assuming weighted average spread 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
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 53% 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) 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 that at transaction
    maturity such an asset has a liquidation value dependent on
    the nature of the asset as well as the extent to which the
    asset's maturity lags that of the liabilities.

(4) 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.

(5) 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. Currently however all Euro and non Euro liabilities
    are covered by assets in the same relevant currency.

(6) Moody's also notes that the transaction is exposed to a
    significant proportion of CLO tranches in the underlying
    portfolio, which have experienced an improvement in their
    credit quality since the last rating action. Based on the
    latest trustee report, CLO Securities currently held in the
    portfolio total about EUR19.4 million, accounting for
    approximately 4.4% of the collateral balance, the majority of
    which are currently under review for possible upgrade.

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 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.


HOME PAYMENTS: High Court Confirms Winding Up
---------------------------------------------
The Irish Times reports that the High Court has confirmed the
winding up of Home Payments Ltd, the home budgeting service that
ceased trading earlier this month.  The court made the order
after being informed the company owes 2,300 of its customers
EUR6 million and AIB a further EUR4 million.

AIB told the court it rejected claims that it was to blame for
Home Payments going into liquidation.

At the High Court, The Irish Times relates, Ms. Justice Mary
Laffoy approved the appointment of chartered accountants Eamonn
Richardson of KPMG and Eamon Leahy of Leahy and Company, who had
previously been acting in a provisional capacity, as joint
liquidators of the firm.

According to the report, the judge said she was satisfied the
company was insolvent and unable to pay its debts.  Justice
Laffoy also ordered the company's three directors Eamonn
O'Connor, Niamh Ryan and Connor O'Connor to file statements of
affairs within 21 days.  The matter was listed before a sitting
of the Examiner's Court in September, The Irish Times notes.

The Irish Times relates that Ciaran Lewis, for Home Payments Ltd,
said the company sought the liquidators' appointment because its
liquidity provision was insufficient to pay all its customers in
full if the customers decided to withdraw all amounts standing to
their credit.

In its petition to the court, The Irish Times relates, the
company said AIB, with whom it had banked for many years, sought
a review of its business due to concerns the bank had about
deposits and credit balances in its accounts and the use of funds
for investments.

The company said it was surprised at the bank raising such issues
as it operated its business with the full knowledge of the bank,
the report relays.

Andrew Fitzpatrick for AIB said the bank supported the
application to have the company wound up, according to The Irish
Times.

Established in 1963, Home Payments Ltd was a family-run business
based in Rathmines, Dublin 6.  The company provides a household
budgeting service in the Dublin area.  It employs 16 people and
has approximately 2,300 customers throughout Ireland.


IRISH LIFE: Investors Tender EUR265 Million of Subordinated Bonds
-----------------------------------------------------------------
Caroline Madden at The Irish Times reports that Irish Life
Permanent said EUR265 million of subordinated bonds were tendered
by investors ahead of a delayed settlement deadline for
acceptance of a bond buyback offer.

                        Recapitalization

As reported by the Troubled Company Reporter-Europe on Aug. 16,
2011, The Irish Times related that Nigel Bunting, one the Irish
Life & Permanent shareholders suing the Government over the
recapitalization of the bank and the wiping out of their
investment, abandoned his legal challenge.  The High Court was
told that Mr. Bunting had settled his action aimed at overturning
or varying the orders obtained by the Minister for Finance last
month, The Irish Times disclosed.  The orders allowed the
Minister to inject EUR2.7 billion into Irish Life & Permanent
giving the State a shareholding of more than 99% of the company
and control of a fifth Irish bank, The Irish Times noted.

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.


VALLAURIS II: Moody's Upgrades Rating on Class IV Notes to 'Caa1'
-----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of these notes
issued by Vallauris II CLO plc:

   -- EUR52.3M Class II Senior Floating Rate Notes due 2022,
      Upgraded to A3 (sf); previously on Jun 22, 2011 Baa2 (sf)
      Placed Under Review for Possible Upgrade

   -- EUR25.4M Class III Mezzanine Deferrable Interest Floating
      Rate Notes due 2022, Upgraded to Ba2 (sf); previously on
      Jun 22, 2011 B1 (sf) Placed Under Review for Possible
      Upgrade

   -- EUR8.9M Class IV Mezzanine Deferrable Interest Floating
      Rate Notes due 2022, Upgraded to Caa1 (sf); previously on
      Jun 22, 2011 Caa3 (sf) Placed Under Review for Possible
      Upgrade

Ratings Rationale

Vallauris II CLO plc, issued in July 2006, is a single currency
Collateralised Loan Obligation backed by a portfolio of mostly
high yield European loans. The portfolio is managed by Natixis
and Natixis Asset Management. This transaction will be in
reinvestment period until July 26, 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 also reflect
consideration of an increase in the transaction's
overcollateralization ratios and modest deleveraging of the
senior notes since the rating action in November 2009.

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 (1) standardizing the modeling of
collateral amortization profile, and (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.

Moody's notes that the Class I notes have been paid down by
approximately 11.4% or EUR18.77 million since the rating action
in November 2009. As of the trustee report dated June 30, 2011,
the Senior, Class III, and Class IV overcollateralization ratios
are reported at 124.52%, 110.35% and 105.77% respectively, versus
September 2009 levels of 117.60%, 105.26%, and 101.52%
respectively, and all these overcollateralization tests are
currently in compliance.

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 EUR245.516
million, defaulted par of EUR13.694 million, a weighted average
default probability of 26.22% (consistent with a WARF of 3611, a
weighted average recovery rate upon default of 46.40% for a Aaa
liability target rating, a diversity score of 27 and a weighted
average spread of 2.83%. 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 91% 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
analyzed the impact of assuming weighted average spread
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
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) Deleveraging: A source of uncertainty in this transaction is
   whether deleveraging from unscheduled principal proceeds will
   continue and at what pace. Deleveraging may accelerate due to
   high prepayment levels in the loan market and/or collateral
   sales by the manager, which may have significant impact on the
   notes' ratings.

2) Moody's also notes that around 65% 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.

3) 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.

4) 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.

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.


=========
I T A L Y
=========


THINK3 INC: Taps Asaha Law Offices for Japanese Proceeding
----------------------------------------------------------
Think3 Inc. asks the Hon. Christopher Mott of the U.S. Bankruptcy
Court for the Western District of Texas for permission to employ
Asahi Law Offices as special counsel to represent and advise it
in the chapter 11 case with respect to the Japanese proceeding,
the Debtor's interest in the Japanese subsidiary, the Debtor's
business interests in Japan, and Japanese legal issues.

The firm's professionals will charge the Debtor at these rates:

   Professional       Designation     Hourly Rate
   ------------       -----------     -----------
   Satoru Mitsumori   Partner         JPY 44,000 (US$569.62)
   Noriyasu Kaneko    Partner         JPY 40,000 (US$517.83)
   Masaru Okamoto     Partner         JPY 35,000 (US$453.10)

The Debtor assures the Court that the firm is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.

The firm can be reached at:

         ASAHI LAW OFFICES
         Attn: Saturo Mitsumori
         13F Marunouchi MY Plaza
         1-1, Marunouchi, 2-Chome
         Chiyoda-ku, Tokyo 100-8385
         Japan
         Tel: (03) 5219 0002
         Fax: (03) 5219 2221
         E-mail: sm@alo.jp

                           About think3

Think3 Inc. develops computer-aided design software.  Think3 has
been a debtor in corporate reorganization proceedings under the
laws of Italy pending before the Court of Bologna since March 14,
2011.  Dr. Andrea Ferri was appointed to act as trustee in the
Italian Proceedings

Think3 sought Chapter 11 protection (Bankr. W.D. Tex. Case No.
11-11252) on May 18, 2011, in Austin, its hometown, three months
after creditors filed an involuntary bankruptcy petition against
the company in a court in Bologna, Italy.  The company didn't
oppose the involuntary bankruptcy.  Rebecca Roof was appointed as
Chief Restructuring Officer.

The Italian trustee filed a Chapter 15 petition (Bankr. W.D. Tex.
Case No. 11-11925) for Think3 in bankruptcy court in Austin on
Aug. 1, claiming she has the right to control the company's
restructuring through the Italian court.

Since the Italian bankruptcy was filed, there have been
continuing disputes over the right to control the company's
assets.  ESW Capital LLC acquired Think3 in September.  The
primary debt is a US$23 million tax liability in Italy.

The Italian Trustee is represented by:

          Joel M. Walker, Esq.
          DUANE MORRIS LLP
          Suite 5010, 600 Grant Street
          Pittsburgh, PA 15219-2802
          E-mail: JMWalker@duanemorris.com

               - and -

          Wesley W. Yuan, Esq.
          DUANE MORRIS LLP
          1330 Post Oak Boulevard, Suite 800
          Houston, TX 77056
          Tel: (713) 402-3911
          Fax: (713) 513-5848
          E-mail: wwyuan@duanemorris.com

The Chapter 15 petition estimates Think3's assets and debts to be
between US$10 million to US$50 million.

Versata FZ-LLC, Versata Development Group, Inc., Versata
Software, Inc., ESW Capital, LLC, the parent of Think3, and
Gensym Cayman L.P., the DIP Lender, are represented by:

         Berry D. Spears, Esq.
         FULBRIGHT & JAWORSKI L.L.P.
         600 Congress Avenue, Suite 2400
         Austin, TX 78701-2878
         Telephone: (512) 536-5246
         Facsimile: (512) 536-4598
         E-mail: bspears@fulbright.com

              - and -

         Zack A. Clement, Esq.
         John D. Cornwell, Esq.
         Camisha L. Simmons, Esq.
         FULBRIGHT & JAWORSKI L.L.P.
         1301 McKinney Street, Suite 5100
         Houston, TX 77010-3095
         Telephone: (713) 651-5151
         Facsimile: (713) 651-5246
         E-mail: zclement@fulbright.com
                 jcornwell@fulbright.com

              - and -

         G. Larry Engel, Esq.
         Vincent J. Novak, Esq.
         Kristin Hiensch, Esq.
         MORRISON & FOERSTER LLP
         425 Market Street
         San Francisco, CA 94105-2482
         Telephone: (415) 268-7000
         Facsimile: (415) 268-7522
         E-mail: lengel@mofo.com
                 vnovak@mofo.com
                 khiensch@mofo.com


THINK3 INC: U.S. Court Approves Federico Cornia for Italian Case
----------------------------------------------------------------
The Hon. H. Christopher Mott of the U.S. Bankruptcy Court for the
Western District of Texas authorized Think3 Inc. to employ
Federico Cornia as special counsel to represent and advise it in
its chapter 11 case with respect to the Italian Proceeding and
recovery of property of the estate from the Italian Trustee.

Papers filed with the Court did not disclose Ms. Cornia's
compensation rate.

The Debtor assured the Court that the firm is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.

Ms. Cornia can be reached at:

         Studio Legale Cornia
         Attn: Federico Cornia
         Via Garibaldi n. 3
         40124 Bologna
         Italy
         Tel: (39) 051 232008
         Fax: (39) 051 232668
         E-mail: cornialex@studiolegalecornia.it

                           About think3

Think3 Inc. develops computer-aided design software.  Think3 has
been a debtor in corporate reorganization proceedings under the
laws of Italy pending before the Court of Bologna since March 14,
2011.  Dr. Andrea Ferri was appointed to act as trustee in the
Italian Proceedings

Think3 sought Chapter 11 protection (Bankr. W.D. Tex. Case No.
11-11252) on May 18, 2011, in Austin, its hometown, three months
after creditors filed an involuntary bankruptcy petition against
the company in a court in Bologna, Italy.  The company didn't
oppose the involuntary bankruptcy.  Rebecca Roof was appointed as
Chief Restructuring Officer.

The Italian trustee filed a Chapter 15 petition (Bankr. W.D. Tex.
Case No. 11-11925) for Think3 in bankruptcy court in Austin on
Aug. 1, claiming she has the right to control the company's
restructuring through the Italian court.

Since the Italian bankruptcy was filed, there have been
continuing disputes over the right to control the company's
assets.  ESW Capital LLC acquired Think3 in September.  The
primary debt is a $23 million tax liability in Italy.

The Italian Trustee is represented by:

          Joel M. Walker, Esq.
          DUANE MORRIS LLP
          Suite 5010, 600 Grant Street
          Pittsburgh, PA 15219-2802
          E-mail: JMWalker@duanemorris.com

               - and -

          Wesley W. Yuan, Esq.
          DUANE MORRIS LLP
          1330 Post Oak Boulevard, Suite 800
          Houston, TX 77056
          Tel: (713) 402-3911
          Fax: (713) 513-5848
          E-mail: wwyuan@duanemorris.com

The Chapter 15 petition estimates Think3's assets and debts to be
between US$10 million to US$50 million.

Versata FZ-LLC, Versata Development Group, Inc., Versata
Software, Inc., ESW Capital, LLC, the parent of Think3, and
Gensym Cayman L.P., the DIP Lender, are represented by:

         Berry D. Spears, Esq.
         FULBRIGHT & JAWORSKI L.L.P.
         600 Congress Avenue, Suite 2400
         Austin, TX 78701-2878
         Telephone: (512) 536-5246
         Facsimile: (512) 536-4598
         E-mail: bspears@fulbright.com

              - and -

         Zack A. Clement, Esq.
         John D. Cornwell, Esq.
         Camisha L. Simmons, Esq.
         FULBRIGHT & JAWORSKI L.L.P.
         1301 McKinney Street, Suite 5100
         Houston, TX 77010-3095
         Telephone: (713) 651-5151
         Facsimile: (713) 651-5246
         E-mail: zclement@fulbright.com
                 jcornwell@fulbright.com

              - and -

         G. Larry Engel, Esq.
         Vincent J. Novak, Esq.
         Kristin Hiensch, Esq.
         MORRISON & FOERSTER LLP
         425 Market Street
         San Francisco, CA 94105-2482
         Telephone: (415) 268-7000
         Facsimile: (415) 268-7522
         E-mail: lengel@mofo.com
                 vnovak@mofo.com
                 khiensch@mofo.com


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


BMB MUNAI: Reports US$4.3 Million Net Income in June 30 Quarter
---------------------------------------------------------------
BMB Munai, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q, reporting net
income of US$4.32 million on US$0 of revenue for the three months
ended June 30, 2011, compared with net income of US$871,868 on
US$0 of revenue for the same period a year ago.

The Company's balance sheet at June 30, 2011, showed
US$326.89 million in total assets, US$103.95 million in total
liabilities, and US$222.93 million total stockholders' equity.

A full-text copy of the Form 10-Q is available for free at:

                        http://is.gd/QyLHqa

                          About BMB Munai

Based in Almaty, Kazakhstan, BMB Munai, Inc., is a Nevada
corporation that originally incorporated in the State of Utah in
1981.  Since 2003, its business activities have focused on oil
and natural gas exploration and production in the Republic of
Kazakhstan through its wholly-owned operating subsidiary Emir Oil
LLP.  Emir Oil holds an exploration contract that allows the
Company to conduct exploration drilling and oil production in the
Mangistau Province in the southwestern region of Kazakhstan until
January 2013.  The exploration territory of its contract area is
approximately 850 square kilometers and is comprised of three
areas, referred to herein as the ADE Block, the Southeast Block
and the Northwest Block.

The Company realized a loss from continuing operations of
US$15.1 million during fiscal year 2011 compared to US$10.7
million during fiscal year 2010.  This 41% increase in loss from
continuing operations was primarily attributable to increased
general and administrative and interest expense and the foreign
exchange loss of US$415,803 incurred during fiscal year 2011.

Hansen, Barnett & Maxwell, P.C., in Salt Lake City, said that as
a result of the pending sale of Emir Oil LLP, BMB Munai will have
no continuing operations that result in positive cash flow, which
raise substantial doubt about its ability to continue as a going
concern.

The Company did not generate any revenue during the fiscal years
ended March 31, 2011, and 2010, except from oil and gas sales
through Emir Oil.

                        Bankruptcy Warning

The Company has disclosed that if it does not complete the sale,
it will not have sufficient funds to retire the restructured
Senior Notes when they become due.  "In this event, we would
likely be required to consider liquidation alternatives,
including the liquidation of our business under bankruptcy
protection," the Company said.


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


GROSVENOR PLACE: Moody's Upgrades Rating on Class E Notes to Ba2
----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of the
following notes issued by Grosvenor Place CLO I:

Issuer: Grosvenor Place CLO I

   -- EUR173M Class A-1 Senior Floating Rate Delayed Draw Notes
      due 2021(currently EUR171,005,793.42 outstanding), Upgraded
      to Aaa (sf); previously on Jun 22, 2011 Aa1 (sf) Placed
      Under Review for Possible Upgrade

   -- GBP27.528M Class A-2 Senior Floating Rate Notes due
      2021(currently GBP27,210,679.0 outstanding), Upgraded to
      Aaa (sf); previously on Jun 22, 2011 Aa1 (sf) Placed Under
      Review for Possible Upgrade

   -- EUR35M Class A-3 Senior Multi-Currency Revolving Floating
      Rate Notes due 2021(currently EUR33,948,458.11
      outstanding), Upgraded to Aaa (sf); previously on Jun 22,
      2011 Aa1 (sf) Placed Under Review for Possible Upgrade

   -- EUR20M Class A-4 Senior Floating Rate Notes due 2021,
      Upgraded to Aa1 (sf); previously on Jun 22, 2011 A2 (sf)
      Placed Under Review for Possible Upgrade

   -- EUR47M Class B Senior Floating Rate Notes due 2021,
      Upgraded to A2 (sf); previously on Jun 22, 2011 Baa3 (sf)
      Placed Under Review for Possible Upgrade

   -- EUR19M Class C Deferrable Interest Floating Rate Notes due
      2021, Upgraded to Baa3 (sf); previously on Jun 22, 2011 B1
      (sf) Placed Under Review for Possible Upgrade

   -- EUR14.5M Class D Deferrable Interest Floating Rate Notes
      due 2021, Upgraded to Ba1 (sf); previously on Jun 22, 2011
      Caa1 (sf) Placed Under Review for Possible Upgrade

   -- EUR10M Class E Deferrable Interest Floating Rate Notes due
      2021, Upgraded to Ba2 (sf); previously on Jun 22, 2011 Caa1
      (sf) Placed Under Review for Possible Upgrade

   -- EUR3M Class Q Combination Notes due 2021, Upgraded to Baa3
      (sf); previously on Jun 22, 2011 Caa1 (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
Q, 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

Grosvenor Place CLO I, issued in June 2006, is a multicurrency
Collateralised Loan Obligation ("CLO") backed by a portfolio of
mostly high yield European loans of approximately EUR377 million.
The portfolio is managed by CQS Cayman Limited Partnership. This
transaction is in its reinvestment period until July 20, 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 (1) standardizing the modeling 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.

The overcollateralization ratios of the rated notes have improved
since the rating action in September 2010. The Class A/B, Class
C, Class D and Class E overcollateralization ratios are reported
at 125.16%, 117.76%, 112.68% and 109.43%, respectively, versus
July 2010 levels of 123.89%, 116.69%, 111.73% and 108.55%,
respectively, and all related overcollateralization tests are
currently in compliance.

Reported WARF has increased from 2562 to 2719 between July 2010
and July 2011. The change in reported WARF understates the actual
credit quality improvement because of the technical transition
related to rating factors of European corporate credit estimates,
as announced in the press release published by Moody's on
September 1, 2010. In addition, securities rated Caa or lower
make up approximately 5.84% of the underlying portfolio versus
6.36% in July 2010.

Due to the impact of revised and updated key assumptions
referenced in "Moody's Approach to Rating Collateralized Loan
Obligations" published in June 2011, key model inputs used by
Moody's in its analysis, such as par, weighted average rating
factor, diversity score, and seniority distribution in the asset
pool, may be different from the trustee's reported numbers. In
its base case, Moody's analyzed the underlying collateral pool to
have a performing par and principal proceeds balance of EUR380
million, defaulted par of EUR1.38 million, a weighted average
default probability of 20.46% (consistent with a WARF of 2924), a
weighted average recovery rate upon default of 45.39% for a Aaa
liability target rating, diversity score of 28, and a weighted
average spread of 3.06%. 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 88.47% 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 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. CLO
notes' performance may also be impacted by 1) the manager's
investment strategy and behavior and 2) divergence in legal
interpretation of CLO documentation by different transactional
parties due to embedded ambiguities.

Sources of additional performance uncertainties are:

1) Moody's also notes that around 60.71% 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.

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) 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. However,
   as part of the base case, Moody's considered weighted average
   spread higher than the covenant due to the large difference
   between the reported and covenant levels.

4) 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.

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.


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


BANK OF MOSCOW: VTB Says Takeover Not Politically Motivated
-----------------------------------------------------------
Maria Levitov and Henry Meyer at Bloomberg News report that VTB
Group denied allegations that its takeover of Bank of Moscow, the
biggest bank bailout in Russia's history, is politically
motivated.

According to Bloomberg, former chief executive officer Andrei
Borodin and his representatives said in an e-mailed statement on
Wednesday, "The criminal prosecution and takeover of Bank of
Moscow are part of the same chain of the political decision to
change shareholders at Bank of Moscow and to place it under
government control."

Mr. Borodin is under an international arrest warrant by Russian
authorities over his connection to a US$443 million loan alleged
to have ended up in the accounts of former Moscow Mayor Yury
Luzhkov's wife, Yelena Baturina, Bloomberg discloses.  Mr.
Luzhkov was fired by President Dmitry Medvedev in September, amid
corruption allegations after 18 years at the helm of Europe's
largest city, Bloomberg recounts.  VTB bought the city
government's 46.5% stake in Bank of Moscow for US$3.6 billion in
February, Bloomberg relates.  Mr. Borodin, 44, denies any
wrongdoing, Bloomberg states.

Bloomberg notes that in an e-mailed statement on Wednesday VTB
denied the allegations, saying it was "a purely strategic deal
and not a political one".

Bank of Moscow's poor assets quality was uncovered after VTB's
purchase, leading Russian regulators to provide a record bailout
of RUR395 billion (US$13.7 billion) last month to keep the
country's fifth-biggest lender from toppling, Bloomberg recounts.

VTB Chief Executive Officer Andrei Kostin said in an interview
with radio Business-FM published on the bank's Web site on
June 17 that Bank of Moscow's "closeness" to city hall meant that
its operations weren't properly checked.  The central bank, Bank
Rossii, said the case showed it needs greater oversight powers,
according to Bloomberg.

AKB Bank Moskvy OAO (Bank Moskvy OAO or Bank of Moscow OJSC) --
http://www.bm.ru/-- is a Russia-based financial institution,
which offers a wide range of services to its clients including
corporate banking, retail banking and investment banking
services.

The Bank operates through numerous branches.  It is a part of the
Association of Russian Banks (ARB) and other organizations.  In
addition, AKB Bank Moskvy OAO has 13 subsidiaries and two
affiliated companies.  As of May 14, 2009, the Bank was 43.99%
owned by the Moscow City Government.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on July 13,
2011, Moody's Investors Service downgraded these ratings of JSC
Bank of Moscow: standalone bank financial strength rating to E+
(mapping to B2 on the long-term scale) from D-, long-term local
and foreign currency debt and deposit ratings to Ba2 from Ba1,
and long-term foreign currency subordinated debt rating to Ba3
from Ba2.  The short-term foreign currency deposit rating of Not-
Prime has been affirmed.  The outlook on the stand-alone and
long-term supported ratings is negative.


CONTINENT AIR: Bankruptcy-Related Passenger Woes to be Resolved
---------------------------------------------------------------
Itar-Tass reports that Transport Clearing Chamber President
Sergei Ilyichev said problems experienced by passengers due to
the bankruptcy of the Continent airline will be finally resolved
in early September.

"The interference of the government helped to calm down the
tension caused by the termination of transportation services of
the Continent airline.  The Transport Ministry, the Federal
Agency for Air Transportation and the Transport Clearing Chamber
are working in an online mode.  Several additional flights of
other airlines were organized for the passengers who had bought
tickets for Continent flights," Itar-Tass quotes the official as
saying.

Earlier this month, Moscow's Meshchansky Court refused to issue
an arrest warrant for Continent Airline Director-General Vladimir
Krasilnikov, who had been detained on charges of fraud and
deliberate bankruptcy, Itar-Tass recounts.  The court thus
rejected the investigator's request for Mr. Krasilnikov's arrest
and let him go in courtroom, Itar-Tass relates.

According to Itar-Tass, Judge Albert Trishkin said the
investigator had failed to present evidence proving that "the
subject can disappear, continue criminal activities or otherwise
obstruct the investigation".  He also was quite skeptical about
the case materials, which in his opinion do not confirm fraud,
Itar-Tass notes.

The judge stressed particularly that the investigator had charged
Mr. Krasilnikov with a crime committed in the field of
entrepreneurship and therefore he could not be put in custody,
Itar-Tass discloses.

Mr. Krasilnikov pleaded not guilty and said his company was only
a week short of August 5 when it planned to get a RUR120 million
loan from Transkreditbank, Itar-Tass notes.

"Not a kopek was stolen in the airline.  We invested our own
circulating assets, our own money and thought that the bank would
give us RUR120 million," Itar-Tass quotes Mr. Krasilnikov as
saying.

At the same time, he does not rule out that the company's
bankruptcy "caused trouble to many passengers".

"I am ready to bear responsibility for that as an entrepreneur,"
Mr. Krasilnikov, as cited by Itar-Tass, said.

As reported by the Troubled Company Reporter-Europe, Itar-Tass
related that on July 29, Continent declared bankruptcy, after
which its Air Operator Certificate was revoked, Itar-Tass
recounts.  This is due to the termination of refuelling of the
Continent airline at Russian airports because of the lack of
needed funding, Itar-Tass disclosed.  The air carrier's debt to
airports was RUR32 million, according to Itar-Tass.  After the
revocation of the certificate by the Federal Air Transport Agency
(Rosaviatsiya), the company suspended flight from July 30, Itar-
Tass said.  As a result, in the period from July 29 to July 31
alone, a total of 69 flights were cancelled that were supposed to
carry over 3,000 passengers, Itar-Tass stated.


SOBINBANK: Moody's Affirms 'E+' Bank Financial Strength Rating
--------------------------------------------------------------
Moody's Investors Service has affirmed the standalone E+ bank
financial strength rating and the B3/Not Prime long-term and
short-term local and foreign currency deposit ratings of
Sobinbank (Russia). The outlook on all of the bank's ratings is
stable.

Ratings Rationale

Moody's explained that Sobinbank's standalone BFSR of E+, which
maps to B3 on the long-term scale, is constrained by the bank's
(i) low capital levels, with its statutory capital adequacy ratio
(N1) at 11.05% as of August 1, 2011 and, to a large extent,
relying on a Tier 2 capital component; and (ii) poor
profitability and cost-efficiency metrics, whereby the financial
institution has been posting material net losses (under both IFRS
and statutory GAAP) for several consecutive years. This
performance, in turn, puts at risk Sobinbank's capital levels and
warrants regular external capital support.

"Sobinbank's poor financial performance stems from its weak
recurring income generation, as represented by net interest and
fee and commission income, coupled with the high maintenance
costs associated with the large and currently under-utilized
branch network," explains Olga Ulyanova, a Moody's Vice-President
and lead analyst for the bank. "In the years 2008 to 2010,
Sobinbank has also recorded substantial loan loss provisioning
charges; however, we expect to witness some signs of recovery in
the 2011 results," adds Ms Ulyanova.

Moody's said that factors underpinning Sobinbank's ratings at
their current levels are (i) the bank's expanded geographical
presence, (ii) its relatively developed technologies and business
processes tailored for retail business (although these
technologies and processes are not yet operating at full
capacity), as well as (iii) a degree of operational support
stemming from Sobinbank's parent, Bank Rossiya (rated B2/Not
Prime/E+ with stable outlook), which provides funding facilities
and business development assistance to its subsidiary.

The rating agency notes that despite some operational integration
between Sobinbank and Bank Rossiya, it does not incorporate any
explicit parental support to Sobinbank's ratings, as the parent
has not provided any public statement regarding its commitment
and willingness to support Sobinbank, in case of need; moreover,
the strategic fit of this subsidiary to Bank Rossiya's business
is not obvious. Therefore, Sobinbank's B3 deposit ratings are
based solely on its standalone financial strength and are aligned
with the bank's long-term scale of B3.

The principal methodologies used in this rating were Bank
Financial Strength Ratings: Global Methodology, published in
February 2007, and Incorporation of Joint-Default Analysis into
Moody's Bank Ratings: A Refined Methodology, published in March
2007. Please see the Credit Policy page on www.moodys.com for a
copy of these methodologies.

Headquartered in Moscow, Russia, Sobinbank reported -- in
accordance with unaudited statutory GAAP -- total assets of
US$2.3 billion as at 1H 2011 and net income of US$0.7 million for
the six months then ended.


* RYAZAN REGION: Fitch Affirms LT Foreign Currency Rating at 'B+'
-----------------------------------------------------------------
Fitch Ratings has affirmed Russia's Ryazan Region's Long-term
foreign and local currency ratings at 'B+', Short-term foreign
currency rating at 'B' and National Long-term rating at 'A(rus)'.

The Outlooks on the region's Long-term ratings are Stable.  The
rating action also affects the region's outstanding bond issue.

The ratings factor in the region's high refinancing needs,
stemming from the relatively high direct risk represented by
short-term bank loans; and the region's rigid budget expenditure.
The ratings also consider Ryazan's satisfactory budgetary
performance, which is underpinned by the recovering local economy
and low contingent risk stemming from public sector entities
controlled by the region.

Fitch notes that positive rating action is subject to containment
of the direct risk below 40% of current revenue along with
lengthening of the debt maturity profile, coupled with
maintaining of budgetary performance at level recorded in 2009-
2010.  Conversely, deterioration of debt coverage ratios coupled
with increasing refinancing pressure due to high proportion of
short-term bank loans would lead to downward rating pressure.

The region's direct risk increased to RUB11.2 billion at year-end
2010 from RUB7.8 billion a year earlier.  This corresponds to a
satisfactory 40% of current revenue.  However, the region's
refinancing risk is significant. The proportion of short-term
bank loans remained high at 68% of direct risk stock at year-end
2010 albeit declining from a high 96% a year earlier.  Fitch
expects direct risk to peak in 2011 at about 45% of current
revenue and to gradually decrease in 2012-2013.  The proportion
of short-term exposure is expected to remain high in the medium
term.

The region's budgetary performance improved in 2010 with an
operating margin of 10% (2009: 8.3%).  This was driven by a 21%
growth of tax revenue underpinned by the recovery of local
economy. Proceeds of corporate income tax increased by about 40%
yoy in 2010.  The region's deficit before debt variation
decreased to 7.8% of total revenue in 2010 from 10% in 2009.
Fitch expects operating balance to stabilize at about 10% of
operating revenue in 2011 and the medium term.  The region's
operating revenue will benefit from the further growth of tax
base, while its operating expenditure is exposed to potential
pressure due to the election season.

Ryazan region is located in the center of the European part of
Russia.  The region's capital, the City of Ryazan, is located
196km southeast of Moscow.  The region's economy is well
diversified and benefits from close proximity to Moscow, the
country's capital.  Local economy rebounded in 2010 driven
primarily by the growth of industrial output. It increased by
10.1% in 2010 and by 9.3% yoy in H111.  Continued recovery of the
national economy in 2011 will be positive for the regional
companies and will support the region's tax revenue.  The
administration forecasts moderate growth for the regional economy
at 2%-3% yoy in the medium term.


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


QUINN INVESTMENTS: Quinn Family Loses Appeal on Forced Bankruptcy
-----------------------------------------------------------------
Laura Noonan at Irish Independent reports that the Quinn family
on Tuesday lost an appeal against the forced bankruptcy of a
Swedish company central to the family's EUR500 million
international property empire.

The decision by the court in Stockholm comes almost two months
after Anglo Irish Bank successfully petitioned for the
appointment of a bankruptcy receiver to Quinn Investments Sweden,
Irish Independent notes.

The Quinns fiercely opposed the receiver's appointment, rejecting
Anglo's arguments that the investment vehicle was insolvent and
should be liquidated for failing to pay a EUR2.3 billion debt
call, Irish Independent relates.

The family swiftly lodged an appeal with the Stockholm courts,
prompting Tuesday's judgment, Irish Independent discloses.  The
family has another chance to appeal by Sept. 19, the Irish
Independent cites.

Irish Independent notes that while a Swedish insolvency
practitioner now has control of QIS, Anglo is likely to be able
to have some of its nominated directors put on the board of QIS
companies since Anglo controls QIS's parent.

The re-affirmation of the bankruptcy may also have an impact on
legal proceedings that are being taken by QIS companies,
particularly a case in the Ukraine, Irish Independent states.

There are no plans to immediately sell any parts of QIS, which
owns a host of international property assets through 31 companies
across Sweden, Russia, Cyprus, Ireland and the Ukraine, Irish
Independent says.

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


SAAB AUTOMOBILE: Unions May Push for Bankruptcy Over Pay Delay
--------------------------------------------------------------
Ola Kinnander at Bloomberg News reports that Saab Automobile's
two biggest unions said they're likely to ask a court to put the
company into bankruptcy in about two weeks unless salaries are
paid by then.

According to Bloomberg, Saab, which was scheduled to pay factory
workers yesterday and administrative employees on Aug. 26, said
on Wednesday that it may be forced to postpone wage payments as
"committed" funds from investors may not arrive in time.  Saab
paid salaries about a week late in June and July, Bloomberg
discloses.

Bloomberg relates that officials from the IF Metall and Unionen
labor groups said any delay in the August payments will prompt
the unions immediately to start a process aimed at ensuring state
coverage of wages in the event of the carmaker's failure.  The
unions, after gaining employees' backing, would first file
payment requests with Saab, Bloomberg notes.  If salaries remain
unpaid in seven days, the unions may then ask a district court to
declare Saab bankrupt, Bloomberg states.

The automaker, which General Motors Co. sold last year, halted
production in late March amid a cash crunch, and the factory at
Saab's Trollhaettan, Sweden, headquarters has been quiet since
early June, Bloomberg recounts.  Saab, Bloomberg says, is trying
to raise more funds and has said it aims to restart manufacturing
in a few weeks.  Sweden's Debt Enforcement Agency started a
collection process on Aug. 16 after Saab missed a deadline to pay
suppliers, Bloomberg relates.

Saab is "doing everything we can to prevent salaries being paid
late this time, but there's still a risk that will happen,"
Bloomberg quotes Eric Geers, a spokesman at the carmaker, as
saying in a phone interview on Wednesday.  "Paying the salaries
is our No. 1 priority, and our second priority is to restart
production."

As reported by the Troubled Company Reporter-Europe on Aug. 23,
2011, Dow Jones Newswires related that the Swedish debt agency
said it found SEK5.1 million (US$796,291) so far in its probe of
assets belonging to Saab.

Saab Automobile AB is a Swedish car manufacturer owned by Dutch
automobile manufacturer Swedish Automobile NV, formerly Spyker
Cars NV.


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


ADROIT CONSTRUCTION: Goes Into Administration, Taps Administrator
-----------------------------------------------------------------
Clare Conway at building.co.uk reports that Birmingham-based
construction firm Adroit Construction Services has been placed
into administration.  MB Insolvency was appointed administrator
on Aug. 16.

The five-year-old company, which is part of the construction and
property firm Adroit Group, provided M&E services in water and
energy sectors, according to building.co.uk.

The report notes that recent work included a contract to carry
out substation upgrade work for the National Grid in London and
the Midlands alongside main contractor Enterprise.  The Adroit
Group had a GBP12 million turnover.

Adroit Construction Services provided M&E services in water and
energy sectors.


THE BOOMERANG: Owners Place Site Into Administration, Seek Buyer
----------------------------------------------------------------
Caroline Clayfield at Business Sale reports that a buyer is being
sought for a prime commercial development site in Blackfriars,
London, after it was placed into administration by its owner.

The site, which is currently derelict, comes complete with
planning permission for a 53-storey 'vertical city' skyscraper,
according to Business Sale.

The report notes that the site's previous owners, property
developers The Beetham Organisation, had planned to build the
tower but, following the recession, the project was shelved with
only the clearing of the site completed.

The tower, which had been nicknamed 'The Boomerang', was to
comprise 261 luxury flats, a public viewing gallery and a hotel,
and was slated for completion in time for the London 2012
Olympics, Business Sale relays.

The report discloses that the Beetham Organisation had hoped to
cash in on the strong interest in London from both visitors and
investors as a result of the Games.

Offers for the commercial site are expected to be in the region
of GBP150 million, the report adds.


FLOORS-2-GO: Goes Into Administration, Cuts 192 Job
---------------------------------------------------
Jon Griffin at sundaymercury.net reports that Birmingham-based
retailer Floors-2-Go has collapsed into administration with the
closure of 53 stores and 192 job losses.

Administrators Senate Recovery said that the national chain,
whose headquarters are in Newtown, was forced into insolvency
after sales plummeted in recent months, according to
sundaymercury.net.  The report relates that 35 stores remain
trading and 162 jobs safeguarded following a sale of part of the
group to new third party owners Nixon and Hope.

sundaymercury.net notes that the latest collapse comes three
years after the chain went bust in July 2008 after a management
buyout backed by venture capitalists Alchemy Partners failed
following a downturn in the market.

A subsequent rescue package was put together by Robert and
Richard Hodges, part of the Hodges flooring and carpeting
dynasty, who bought the firm from administrators Kroll, saving
more than 200 jobs, sundaymercury.net says.

However, the report discloses that the firm has crashed again
after being hit by falling sales following the recession, said
administrator Ian Pankhurst of Warwick-based Senate Recovery.

"There are a number of factors, including competition within the
industry and increased Internet sales, but the main reason is the
general downturn over the last 12 months, and a lack of
disposable income from consumers . . . .  Sales have nosedived,
particularly in the last 12 months, and the company was not able
to operate at a profit," the report quoted Mr. Pankhurst as
saying.

Mr. Pankhurst said 20 of the redundancies made so far were at the
group's Newtown headquarters in Birmingham, the report adds.


INVESTEC BANK: Moody's Changes Outlook on 'D' BFSR to Stable
------------------------------------------------------------
Moody's Investors Service has revised the outlook on the long-
term deposit rating of Investec Bank plc (IBUK) to negative from
stable. This is caused on the one hand by the ongoing negative
outlook of the bank's standalone rating of Baa3 (equivalent to
the D+ Bank Financial Strength Rating, which also could map to a
standalone rating of Ba1 on the long-term rating scale) and on
the other hand by greater uncertainty that systemic support from
the UK government would be available to this bank which is not
considered to have a sufficient systemic importance in Moody's
view. At the same time, Moody's believes that the negative rating
pressures are relatively moderate at this stage, and has
therefore changed to stable from negative the outlook on the D+
Bank Financial Strength Rating

The outlook on the debt ratings on Investec Finance Plc, which is
guaranteed by Investec Bank plc, were also changed accordingly to
negative from stable. The long-term issuer rating of Investec
PLC, the bank's holding company, was not affected by this rating
announcement and its outlook remains negative (for the list of
affected ratings see below).

Ratings Rationale

The revision of IBUK's long-term outlook to negative from stable
aligns the outlooks on the bank's long-term and stand-alone
ratings. At the last rating action Moody's had incorporated an
expectation that there was some likelihood that systemic support
would also be made available to IBUK in case of need. This
assumption was based on the fact that in 2009 IBUK qualified as
an eligible institution for the issuance of the Government
Guaranteed Obligations.

However, as also indicated by the ongoing review of systemic
support for UK banks (see press release dated April 07, 2011) the
agency is currently assessing the extent to which systemic
support is being reduced in the UK as a result of the progress
the regulators are making on their ability to share the burden of
bank support with credit investors. Against this development,
Moody's believes that systemic support from the UK authorities in
the case of IBUK is unlikely.

As a consequence, the negative outlook on the long-term rating is
driven by IBUK's stand-alone rating performance which is expected
to remain volatile due to asset quality pressures in selective
segments of the loan portfolio (e.g. Irish real estate loan
exposures, unsecuritized portion of third-party sub-prime
residential loans). The bank's exposure to real estate
development and, to a lesser extent, investment projects also
leaves them vulnerable to further pressures to any negative
macroeconomic trends in this highly leveraged segments. As such
Moody's expects that post-provision profits of the bank to remain
volatile, although Moody's recognizes that there have been
improvements in the funding profile and the bank's capital base
remains adequate.

On the other hand, the stable outlook on IBUK's financial
strength rating of D+ is explained by Moody's view that given a
degree of resilience shown by the bank in the current operating
environment further downgrade actions on the bank's ratings could
be limited to one notch impact (considering the fact that the
BFSR of D+ also maps to Ba1 on the long-term scale). This,
however, is contingent on the operating environment stabilizing
in the bank's principal areas of activity.

The agency also noted that the ratings can come under further
pressure due to either higher than expected need for
provisioning, reduced risk absorption capacity (capital cushion,
underprovisioning or earnings capacity) or from a general
macroeconomic deterioration in the segments where the bank
operates. On the other hand, the outlook on the current ratings
can be stabilized should the bank show sustainable improvement in
asset quality trends, improved internal capital creation and a
significant reduction in exposures to underperforming asset
classes (Irish real estate, third-party sub-prime mortgages,
etc).

In the case of Investec plc, IBUK's parent company, the Issuer
rating is aligned with the long-term rating of its operating
subsidiary and it remains on a negative outlook.

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

In the case of Investec plc, IBUK's parent company, the Issuer
rating is aligned with the long-term rating of its operating
subsidiary and it remains on a negative outlook.


JAVIS: Ex-Workers to Get GBP3 Million in Redundancy Pay
-------------------------------------------------------
People Management reports that it was claimed at a tribunal that
Jarvis workers who lost their jobs when the rail maintenance firm
went into administration last year are entitled to GBP3 million
in redundancy pay that should be paid by the government.

Jarvis Rail and its Fastline divisions folded last year with
reported bank debts of GBP17.1 million, when the company failed
to get enough work to continue trading, according to People
Management.  The report recalls that around 1,200 workers lost
their jobs in Leeds, York and other areas.

People Management notes that the TSSA and RMT unions, which are
backing the out-of-work employees, have claimed that Jarvis
should have given 90 days' notice of compulsory redundancy under
employment law.

The former workers claim they are owed eight weeks' pay at GBP380
a week. However, as the company folded with huge debts there is
no money to pay the workers so the government is likely to pick
up the bill, the report relays.

People Management discloses that it is understood that the claim
for redundancy pay is not being contested, but that because
Jarvis no longer exists, questions remain about whether it will
be taxpayers that end up meeting the compensation bill.

The report says that Jarvis' reputation was badly damaged when
the firm admitted liability for its role in the fatal train
derailment at Potters Bar, Hertfordshire, in 2002, where poor
track maintenance was found to be a major contributing factor.


JP CORRY: Business as Usual Following Liquidation
-------------------------------------------------
Belfast Telegraph reports that JP Corry has said it is "business
as usual" after its seven subsidiaries were liquidated.

According to Belfast Telegraph, JP Corry financial controller
Declan Morgan said the liquidation of the dormant companies was
an "accounting measure".

"We are part of a bigger company and we are a subsidiary of that
so that we now fall under Saint-Gobain Building Distribution
Ltd.," Belfast Telegraph quotes Mr. Morgan as saying.  "The
companies which have been liquidated are dormant and have been
for quite a number of years.  It is business as usual with regard
to JP Corry."

The Belfast Gazette of August 12 records the appointment of
liquidators to JP Corry subsidiaries East Downshire Ltd., J Lynas
Ltd., JP Corry Trustees Ltd., JP Corry (Ballymena) Ltd., James P
Corry & Co. Ltd., K McDuff & Co. Ltd. and Redmond Jefferson Ltd.,
Belfast Telegraph relates.

JP Corry is a building supplies firm based in Belfast.


MEZZVEST INVESTMENTS: S&P Withdraws CCC+ Rating on Class D Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its credit ratings in
Mezzvest Investments II, Ltd.

"The rating actions follow our receipt of a request from the
issuer to withdraw the ratings. We reviewed the ratings before
withdrawing them and concluded that they continued to reflect
appropriately our opinion of the creditworthiness of each class,"
S&P related.

Mezzvest Investments II is a cash flow collateralized debt
obligation (CDO) of primarily mezzanine leveraged loans that
closed in July 2007. The transaction is managed by MezzVest
Manager II, Ltd., with MezzVest, a division of CapVest
Ltd., acting as sub-advisor.

Ratings List

Class             Rating
           To               From

Mezzvest Investments II, Ltd.
EUR1.146 Billion Secured Floating-Rate Variable-Funding
Facilities and Secured Floating-Rate Facilities

Ratings Withdrawn

A1         NR               A+ (sf)
A2         NR               BBB- (sf)
B          NR               BB (sf)
C          NR               B- (sf)
D          NR               CCC+ (sf)

NR--Not rated.


NORTH PENNINES: Wardell Armstrong Buys Firm Out of Administration
-----------------------------------------------------------------
Peter McCusker at The Journal reports that Linda Farish and
Anthony Josephs, the joint administrators for North Pennines
Archaeology (NPA), have secured the sale of NPA's assets to
global multi-disciplinary consultancy Wardell Armstrong, securing
18 jobs in the process.

North Pennines Archaeology was placed into administration after
the threat of a winding-up petition related to historic VAT
debts, according to The Journal.

"After being initially approached by the directors of the
company, we are very pleased to have helped to achieve a
satisfactory outcome for the business, its employees and
customers. . . . We worked very closely with the directors to
make sure that the business was fully marketed and the offer
which came from Wardell was progressed to completion," The
Journal quoted Linda Farish, director of insolvency at RMT, as
saying.

North Pennines Archaeology was established in 1987 and offers
archaeology services and topographical surveying alongside other
geophysical services.


TALENTNATION PLC: Founder to Defend Liquidation Order
-----------------------------------------------------
The Drum reports that TalentNation founder Steve Sampson will
resist in the Court of Session, Scotland's Supreme Court, the
move by Scottish Enterprise to put the company into provisional
liquidation.  Scottish Enterpise has a GBP1 million in
TalentNation, the report says.

As reported in the Troubled Company Reporter-Europe on June 14,
2011, The Drum said Scottish Enterprise had successfully
petitioned the courts to have a provisional liquidator appointed
to TalentNation PLC, a company in which it invested GBP1 million
in December 2009.  The economic regeneration body said it was
forced to make the move because of concerns about the financial
affairs and governance of TalentNation.

The online operation, which was set up by former Daily Record
director and Sun Scottish editor Steve Sampson, is also the
subject of court action from ex-staff including former Olympic
Athlete Brian Whittle, who claimed in court papers that
GBP500,000 was transferred out of the business into an the
personal account of Steve Sampson and his wife Elisabeth, shortly
after Scottish Enterprise made their investment, according to The
Drum.

"Within a few days of Scottish Enterprise making the investment
of GBP1 million, GBP500,000.00 was transferred from the
TalentNation bank account to the joint account of Mr. Sampson and
his wife," The Drum quotes Mr. Whittle as saying in the closed
record of the case which was due to go before Hamilton Sheriff
Court.

This was strenuously denied by Mr. Sampson, who texted Gordon
Young, editor of The Drum shortly after the story appeared
online: "You will be served with a writ for GBP500,000 for gross
defamation. Nice round sum.  This is now going viral as well.
Mistake my friend."

The Drum quotes a spokesperson from Scottish Enterprise as saying
that, "We are continuing to pursue this Court action with our
legal advisors. It would be inappropriate for us to comment any
further at this stage."

A representative for administrator Grant Thornton told The Drum
that the case would go ahead at the Court of Session on
September 16.

TalentNation PLC operates an online business.  The Web site aims
to combine the best in social networking with a safe way of
allowing talented youngsters to upload sports videos of
themselves in the hope of being spotted by talent scouts.  Its
revenue model was to be based on advertising and sponsorship.

The company was registered in 2007, but has not filed accounts
for two years.  For the year to October 2008, the company has
clocked up losses of around GBP500,000, according to The Drum.


TJ HUGHES: Set to Close All Remaining Stores
--------------------------------------------
Warrington Guardian reports that the doors will finally close on
TJ Hughes in Warrington after more than a decade in the town.

The troubled discount department store chain has been closing
branches across the country after it went into administration,
according to Warrington Guardian.

As reported in the Troubled Company Reporter-Europe on Aug. 1,
2011, TJ Hughes entered into administration on June 30, 2011.
Tom Jack and Simon Allport from Ernst & Young were appointed as
joint administrators.  Birmingham Mail said that more than 400
West Midland workers are facing a race against time to save
following the announcement.

Warrington Guardian discloses that six stores had already been
sold on and administrators were hoping to find more buyers but
have now announced the store on Sankey Street will close with a
loss of 39 jobs.  The report relays that shop workers union said
the closure is predictable.

Six of the company's stores had been bought by Lewis's Home
Retail Limited but now Warrington joins a list of 12 stores who
are the latest of 42 stores to close across the country, making
2,200 staff redundant, the report adds.

                          About TJ Hughes

Based in Liverpool, United Kingdom, T J Hughes operates discount
department stores, specializing in home and fashion, garden
furniture, fragrance, cosmetics, menswear, womens-wear, toys, and
electrical items.  TJ Hughes operates 57 department stores
throughout the United Kingdom.


UNIQ PLC: Plans to Close Part of Dessert Business, Axes 350 Jobs
----------------------------------------------------------------
Suzanne Lynch at The Irish Times reports that Uniq plc has
announced plans to close part of its dessert business and shed
350 staff ahead of its proposed sale to Greencore.

The company, which supplies desserts and sandwiches to
supermarkets and coffee chains across the UK, is to exit
"everyday desserts" to concentrate on "premium" products such as
the desserts it makes for Muller and Cadbury, The Irish Times
discloses.  According to The Irish Times, the business, which is
to be phased out, is worth about GBP36 million in sales.
Overall, Uniq's desserts division accounted for GBP155 million in
sales last year, half of the company's overall revenues.

Uniq, as cited by The Irish Times, said that the cost of the
restructuring is expected to be GBP10 million.  Last month,
Greencore announced it was to buy its British rival for GBP113
million (EUR128.5 million), The Irish Times recounts.  It has
received more than 90% support from Uniq shareholders for its
bid, The Irish Times relates.

Uniq had been on the market since April after the company's
pension fund trustees took control of 90% of the company by way
of an unusual equity-for-debt swap, in a bid to deal with the
company's GBP400 million-plus pension deficit, The Irish Times
states.  The Office of Fair Trading in the UK is expected to
issue a decision on the acquisition on Sept. 23, according to The
Irish Times.

The Irish Times notes while the Uniq deal was seen by analysts as
very positive for Greencore's chilled food and sandwich business,
there has been concern about Uniq's dessert business.  The firm's
decision to restructure and contract its dessert business is the
culmination of a review of the loss-making business, The Irish
Times says.

Uniq plc -- http://www.uniq.com/-- is a United Kingdom chilled
food producer.  The Company operates in two divisions: Food to Go
and Desserts.  Food to Go operations are located at Northampton
(sandwiches) and Spalding (dressed salads).  Desserts segment
operates from Minsterley and Evercreech, producing trifles,
twinpot desserts, yoghurts and cottage cheese.  During the year
ended December 31, 2009, the Company disposed of all its European
operations in Northern Europe (Germany, the Netherlands and
Poland) and in France.  On March 13, 2009, the Company sold its
United Kingdom chilled fish business, Pinneys of Scotland.  On
October 7, 2009, the Company completed the sale of its French
chilled and frozen convenience food business, Marie SAS.  In
April 2010, the Company completed the sale of Uniq Deutschland
GmbH and Uniq Lisner Sp. Z.o.o., the German and Polish
businesses, to IFR Capital plc.  Its subsidiaries include Uniq
(Holdings) Limited and Uniq Prepared Foods Limited.


YELL GROUP: Covenant Breach Risk Prompts S&P to Junk Ratings
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on U.K.-based classified directories publisher Yell Group
PLC to 'CCC+' from 'B-'. The outlook remains negative.

"We believe Yell is likely to breach one specific covenant within
the next few quarters, absent any remedies," said Standard &
Poor's credit analyst Carlo Castelli. "We project headroom under
this covenant will shrink considerably starting in September
2011, as a result of the material step-up in covenant thresholds.
In addition, we continue to believe Yell's capital structure may
not be sustainable over the long term, given the combination of
its financial risk profile -- which we consider highly leveraged
-- and an extremely challenging operating environment, as a
result of the structural changes to the business model and
adverse economic conditions. We therefore believe management
could decide to both remediate the covenant risks and at the same
time restructure -- in a credit-dilutive manner -- the capital
structure. We do not rule out the possibility that Yell could
implement measures to alleviate covenant pressure for a number of
quarters, and could do so without embarking on credit-dilutive
restructuring measures, but we see this alternative as less
likely," S&P related.

"We expect a decline of about 10% and 12% in the group's revenues
and EBITDA, respectively, in financial 2012. We also expect a
further decline in revenues and EBITDA in financial 2013,
although we believe the pace of decline in the top line will
moderate slightly to mid- to high-single digits," S&P stated.


* UK: Insolvencies in Large Firms Drop 13% in July 2011
-------------------------------------------------------
ChannelWeb.co.uk, citing the latest Experian insolvency index,
reports that the number of failures among large UK firms fell in
July, despite a spike in the overall national business insolvency
rate.

Experian said the rate increased from 0.08 to 0.10 per cent last
month, on an annual comparison, according to ChannelWeb.co.uk.

ChannelWeb.co.uk relates that the information services company
said the financial strength of businesses in the UK also dropped,
from 80.93 to 79.84, although large companies improved from 84.20
to 86.13.

According to ChannelWeb.co.uk, Experian said businesses employing
51 to 100 people suffered the biggest annual increase in
insolvencies, as the failure rate rose from 0.15 per cent to 0.22
per cent.  Firms with 11 to 25 employees saw the highest
percentage of businesses fail, equating to 0.26 per cent of the
population, the report notes.

However, the downward trend was bucked by the largest firms, with
13 per cent fewer firms with 501 or more employees hitting the
wall in July, compared with a year earlier, ChannelWeb.co.uk
relays.

"When a large company becomes insolvent, it can create a domino
effect in the surrounding economy, so the improvement in
insolvency rates with firms with more than 500 employees is good
news," ChannelWeb.co.uk quotes Max Firth, managing director of
Experian business information services, as saying.


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


* EUROPE: CLO Defaults May Surge in Coming Years, S&P Says
----------------------------------------------------------
Robin Wigglesworth at The Financial Times reports that Standard &
Poor's has predicted that European leveraged loan defaults could
surge in coming years due to the looming expiration and limited
new issuance of collateralized loan obligations, which were a
vital source of funding before the financial crisis.

In Europe, the annual volume of senior loans in the leveraged
finance market quadrupled from 2002 to EUR166 billion (US$239
billion) in 2007 -- much of which was snapped up by CLOs, the FT
discloses.  But many CLOs have a finite life, after which they
are not allowed to trade new loans for existing ones, or reinvest
money received from repayments or interest on existing loans they
hold, the FT notes.  Once the reinvestment period ends, the CLO
goes "static" and winds down as the loans it holds expire and its
funding comes due, the FT states.

According to the FT, an S&P research report estimates that by the
end of 2014 more than 98% of European CLOs monitored by the
rating agency will have gone static -- hamstringing the market's
ability to help refinance an estimated EUR250 billion of
leveraged loans maturing in Europe between now and 2017.

S&P's base-case scenario estimates that the current junk-rated
default rate of 3.8 per cent could jump to as high as 7.5% by the
end of 2012 -- compared with a longer term average of 4%, the FT
discloses.


* BOOK REVIEW: The Folklore of Capitalism
-----------------------------------------
Author: Thurman W. Arnold
Publisher: Beard Books, Washington, D.C.
(reprint of 1937 book from Yale University Press). 400 pages.
Price: US$34.95 ISBN 1-58798-025-8.

The book picks up where Arnold's previous book "The Symbols of
Government" left off.  In the first few chapters of fourteen
altogether there is some reiteration to give the content
grounding before Arnold gradually moves into the new topics he
wants to take up in this work.  New examples are inserted with
this reiterated material.  First written in 1937 as the
Depression was dragging out with no end in sight, Arnold tries to
identify -- almost to fix -- the basics of capitalism and
democratic government it is intertwined with.  The style is
intellectual and searching, though not conflicted or yearning (as
in romanticism).

Arnold knows the elements of democracy he wants to identify and
also commend.  But keen-minded and unfailingly realistic as he
is, Arnold knows the prolongation of the Depression has put the
capitalist system under strain so that questions about its
effectiveness and desirability are being raised and the appeal of
other economic and political systems is strong.  Thus Arnold in
his complex, intellectual, legalistic manner not only hones in on
the fundamental principles, processes, and institutions of
democracy, but also implicitly and occasionally explicitly shows
the unsuitability of the European ideologies of Marxism,
Communism, Fascism whose appeal was growing in America.

This global political struggle -- which came to a head with the
outbreak of World War II a few years after the book was published
-- has to be kept in mind as the backdrop for Arnold's approach
to reminding readers of democracy's strengths and resources.  In
the circumstances of the time, it could by no means be taken as
self-evident that democracy was a preferable form of government.
Though Arnold with his acumen of human affairs and human nature
and both theoretical and practical knowledge of political science
is convinced that it is, he faces the challenge of delicately,
sympathetically, yet firmly and unmistakably informing others
that it is.  In doing this, he moves back and forth between
principles and ideals; actual and hypothetical practical
circumstances; human nature and requirements, interests, and
desires; and a paradigm of the concept of "individuality" and
general social needs.

The word "folklore" in the title denotes a body of persons
something like a state, but not as formal or historical a body as
this term suggests.  To contemporary readers, the "folklore" in
the title might suggest a book of entertaining anecdotes or yarns
about capitalism; something like the foibles or amusing
misunderstandings of capitalism.  But at the time, "folklore" had
a nationalistic and cultural, in some cases ethnological
suggestion to it.  In Germany, for instance, "volk" was a concept
used by the Nazis in their rise to power.  The concept of the
"masses" was associated with Communism.  So Arnold is bringing
out how capitalism is embedded in the American public.  He's
trying to make readers more self-conscious of this so they will
not inattentively allow capitalism to be lost.

Arnold's book was written before today's major political,
economic, and cultural concerns of globalism, multiculturalism,
consumerism, immigration, etc., came about.  So he does not
address these explicitly.  Yet as his main interest is the
continuation of capitalism as this is proper to democratic
society, the subject matter is timeless.  Arnold writes a guide
to the recognition and preservation of the sources and pillars of
democracy in any time.

Before serving in Franklin Roosevelt's administration as the
chief trust buster, Thurman W. Arnold (1891-1969) from Wyoming
was a homesteader and sheep rancher in the still relatively
undeveloped West; and he was an artillery officer in France in
World War I.  He was a founder of the Washington, D.C., law firm
Arnold, Fortas, and Porter.


                            *********

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 * * *