TCREUR_Public/110902.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Friday, September 2, 2011, Vol. 12, No. 174



A-TEC INDUSTRIES: Penta to Extend Asset Bid to End of September


DRYSHIPS INC: Holds 50.5% of OceanFreight Outstanding Shares


CIB BANK: Financial Watchdog Imposes HUF5-Million Fine
HOLLOHAZI PORCELAN: Hollohazi Hungarikum to Take Over 66 Staff


ALLIED IRISH: ADSs Delisted from New York Stock Exchange
ANGLO IRISH: Wants Judge to Deny Ex-CEO's Bid to Discharge Debt
ANGLO IRISH: Fitch Assigns Rating to Mortgage Covered Securities
* IRELAND: Corporate Insolvencies Down 22% in August


THINK3 INC: Court OKs Bonelli Erede for Italian Proceeding


MARCO POLO: Says Bankruptcy Loan is Key to Preserving Business
NORTH WESTERLY: S&P Raises Rating on Class S Notes to 'BB- (sf)'


FONCAIXA FTGENCAT: Fitch Affirms 'CCsf' Rating on Class E Notes


SAAB AUTOMOBILE: Close to Securing Rescue Loan
SAAB AUTOMOBILE: Parent Posts EUR224-Mil. Net Loss in First Half

U N I T E D   K I N G D O M

AERO INVENTORY: KPMG to Sell Assets Next Month
BROWNS CONSTRUCTION: Goes Into Administration, Cuts 20 Jobs
CORNERSTONE TITAN: Fitch Affirms 'BBsf' Rating on Class D Notes
ENGLISH ROSE: Two More Hotel Units Fall Into Administration
JERMON LTD: Administration Costs Dublin Banks GBP43 Million

SOUTHERN CROSS: Finds New Operators for Care Homes
TORRIDGE TRAINING: Places Trading Unit Into Liquidation
WALMSLEY: Goes Into Administration, Closes Stores
* UK: Insolvent Pubs and Clubs Up 9.4% As Drinkers Stay at Home


* EUROPE: EFSF Must Not Inject Capital Into Banks, Bafin Says
* BOOK REVIEW: Hospital Turnarounds - Lessons in Leadership



A-TEC INDUSTRIES: Penta to Extend Asset Bid to End of September
Zoe Schneeweiss and Lenka Ponikelska at Bloomberg News report
that Penta Investments Ltd. will extend its offer of buying the
assets of A-Tec Industries AG through the end of September.

"The extension of the offer is valid until the end of September,
however to make a transaction realistic, the decision of A-Tec
and all formal requirements must be made and met much earlier
than the end of September," Bloomberg quotes company spokesman
Martin Danko as saying on Wednesday in an e-mailed statement.

As reported by the Troubled Company Reporer-Europe on Aug. 25,
2011, Bloomberg News related that A-Tec, which filed for
insolvency last year, asked potential buyer Penta to narrow its
offer to just one of the company's units.  Other bidders for
A-Tec include hedge fund Springwater Capital and Pakistani
billionaire Alshair Fiyaz, Bloomberg said, citing Format

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


DRYSHIPS INC: Holds 50.5% of OceanFreight Outstanding Shares
In a Schedule 13D filing with the U.S. Securities and Exchange
Commission, Dryships Inc. disclosed that it beneficially owns
3,000,856 shares of common stock of OceanFreight Inc.
representing 50.5% of the shares outstanding.

OceanFreight had 5,946,182 shares of Common Stock outstanding as
of July 26, 2011.

On July 26, 2011, DryShips, Pelican Stockholdings Inc. or the
"Merger Sub", a wholly owned subsidiary of DryShips, and
OceanFreight entered into an agreement and plan of merger,
pursuant to which, subject to the terms and conditions of the
Merger Agreement and in accordance with the Marshall Islands
Business Corporations Act, Merger Sub will merge with and into

Concurrently with the execution of the Merger Agreement, DryShips
entered into the Purchase Agreement with Basset Holdings Inc.,
Steel Wheel Investments Limited and Haywood Finance Limited and
OceanFreight, pursuant to which DryShips agreed to purchase from
the Sellers 3,000,856 shares of OceanFreight Common Stock subject
to certain conditions.  The closing of the purchase and sale of
the shares pursuant to the Purchase Agreement took place on
Aug. 24, 2011.

                        About DryShips Inc.

Based in Greece, DryShips Inc. --
-- owns and operates drybulk carriers and offshore oil
deep water drilling units that operate worldwide.  As of Sept.
10, 2010, DryShips owns a fleet of 40 drybulk carriers (including
newbuildings), comprising 7 Capesize, 31 Panamax and 2 Supramax,
with a combined deadweight tonnage of over 3.6 million tons and
6 offshore oil deep water drilling units, comprising of 2 ultra
deep water semisubmersible drilling rigs and 4 ultra deep water
newbuilding drillships.

DryShips's common stock is listed on the NASDAQ Global Select
Market where it trades under the symbol "DRYS".

On Nov. 25, 2010, DryShips Inc. entered into a waiver letter
for its US$230.0 million credit facility dated Sept. 10, 2007,
as amended, extending the waiver of certain covenants through
Dec. 31, 2010.

In its audit report on the Company's financial statements for the
year ended Dec. 31, 2010, Deloitte, Hadjipavlou Sofianos &
Cambanis S.A., noted that the Company's inability to comply with
financial covenants under its original loan agreements as of
Dec. 31, 2009, its negative working capital position and other
matters raise substantial doubt about its ability to continue as
a going concern.

The Company's balance sheet at March 31, 2011, showed
US$6.99 billion in total assets and US$3.04 billion in total


CIB BANK: Financial Watchdog Imposes HUF5-Million Fine
MTI-Econews reports that Hungarian financial market watchdog
PSZAF on Wednesday said it fined CIB Bank HUF5 million for
refusing to cooperate with the Financial Reconciliation Body,
recently established to resolve disputes between financial
institutions and retail clients.

According to MTI, the fine is the first levied by PSZAF for
failing to comply with a recommendation by the body which was
established in July.

CIB is fully owned by Italy's Intesa Sanpaolo.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on June 28,
2011, Fitch Ratings affirmed Hungarian CIB Bank Zrt's Individual
Rating at 'D/E'.  The affirmation of the Individual Rating
reflects Fitch's expectation that the performance of the bank
will remain subdued, due to elevated loan impairment charges,
persistently weak demand for new credit and the special bank
levy.  Fitch believes that the loan book of the bank is likely to
contract this year, which puts additional downward pressures on
revenue streams. Moreover, CIB's earnings are likely to suffer
from a growing proportion of foreclosed assets, which usually do
not generate sufficient yields to offset reduced net interest

HOLLOHAZI PORCELAN: Hollohazi Hungarikum to Take Over 66 Staff
MTI-Econews reports that Jozsef Palfi, managing director of
Hollohazi Hungarikum Nonprofit, said on Wednesday that the state-
owned company will be taking over 66 staff from Hollohazi
Porcelan Manufaktura, which is under liquidation.

According to MTI, Mr. Palfi said that Hollohazi Hungarikum
Nonprofit, which was established to preserve the long-standing
tradition of porcelain making in Hollohaza, Hungary, will start
operating on Sept. 1 with a total of 90 staff.

Hollohazi Porcelan Manufaktura became insolvent in the spring,
MTI recounts.  MTI relates that regional news portal BorsodOnline
said all 200 workers of Hollohazi Porcelan Manufaktura were laid
off on Wednesday.  The portal said that the Hungarian National
Asset Management Company has decided to wind up the company
without establishing a legal successor, MTI notes.

Hollohazi Porcelan Manufaktura is a state-owned porcelain maker.


ALLIED IRISH: ADSs Delisted from New York Stock Exchange
Allied Irish Banks, p.l.c., announced that its American
Depositary Shares have now been deemed to be delisted and have
ceased to be traded on the New York Stock Exchange.

Following delisting, AIB intends to terminate the ADS facility by
terminating the ADS deposit agreement between AIB and the Bank of
New York Mellon as depositary.  The Depositary will contact ADS
holders in due course with further information, including with
regard to any further action to be taken.  Following delisting
and prior to termination of the Deposit Agreement, AIB's ADS will
trade over the counter in the United States.

In due course, AIB also intends to deregister its securities and
terminate its obligations under the US Securities Exchange Act of
1934 by filing a Form 15F.

AIB's ordinary shares will continue to trade on the Enterprise
Securities Market of the Irish Stock Exchange.

                  About Allied Irish Banks, p.l.c.

Allied Irish Banks, p.l.c. -- 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

ANGLO IRISH: Wants Judge to Deny Ex-CEO's Bid to Discharge Debt
Steven Church at Bloomberg News reports that Anglo Irish Bank
Corp. sued former Chief Executive Officer David K. Drumm to
prevent him from using U.S. bankruptcy laws to avoid repaying a
EUR7.65 million (US$11 million) loan that the bank claims was
tainted by fraud.

Anglo Irish filed the complaint on Wednesday in U.S. Bankruptcy
Court in Boston, where Mr. Drumm's personal bankruptcy case is
being heard, Bloomberg relates.  According to Bloomberg, the bank
said that Mr. Drumm wrongly converted loans worth EUR18.5 million
to himself and other Anglo Irish directors into so-called non-
recourse loans to avoid personal liability for the debt.

The bank asked U.S. Bankruptcy Judge Frank J. Bailey to deny
Mr. Drumm's request to discharge the debt as part of his plan to
exit bankruptcy, Bloomberg discloses.

Anglo Irish has sued Mr. Drumm in Dublin, where the bank is
based, accusing him of not paying back about EUR8 million in
loans, Bloomberg recounts.  After Mr. Drumm and the bank failed
to settle the dispute, he filed for Chapter 7 bankruptcy in
Boston in October, listing debt of US$14.2 million and assets of
US$13.9 million, Bloomberg notes.

The case is Anglo Irish Bank Corp. v. Drumm, 11-01266, and the
main bankruptcy case is In re David K. Drumm, 10-21198, U.S.
Bankruptcy Court, District of Massachusetts (Boston).


As reported by the Troubled Company Reporter-Europe on Aug. 30,
2011, Irish Independent related that Anglo Irish Bank's
management believe the nationalized lender could be wound up in
as little as three or four years.  The news comes days after its
chief executive, Mike Aynsley, revealed that up to EUR4 billion
in capital could be handed back to the State when Anglo pulls the
shutters down for the final time, Irish Independent disclosed.
The collapsed lender is due to be wound down over a 10-year
period, but management now believes that the final phase of
Anglo's life could be significantly shorter, Irish Independent
stated.  A faster wind-down means the State gets back any surplus
capital sooner, Irish Independent said.

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

ANGLO IRISH: Fitch Assigns Rating to Mortgage Covered Securities
Fitch Ratings has assigned Anglo Irish Mortgage Bank's (AIMB,
'BB-'/Rating Watch Negative/'B') EUR400 million mortgage covered
securities (MCS) Series 6 with an 18-month extended final
maturity of August 2014 a 'BBB+' rating.  Fitch has maintained
the ratings of the outstanding covered bonds on Rating Watch
Negative (RWN) as AIMB's Issuer Default Rating (IDR) remains on

The ratings are driven by AIMB's Long-term IDR of 'BB-'/RWN and
the Discontinuity Factor (D-Factor) of 36.8%, the combination of
which enables the mortgage covered bonds to reach a 'BBB-' rating
on a probability of default (PD) basis, with a two notch credit
for recoveries enabling the 'BBB+' rating.  The rating also takes
into account committed over-collateralization (OC) between the
cover assets and the covered bonds being sufficient to sustain
the 'BBB+' stress scenarios applied by Fitch.  The resolution of
the RWN will depend on the resolution of the RWN on the issuer's

The OC supporting AIMB's MCS current 'BBB-' rating on a PD basis
and 'BBB+' incorporating recoveries given default stands at
51.5%.  This compares with current nominal OC at 59.9% or 28.0%
based on prudent market value of the cover assets.  The OC
supporting a given rating will be affected, among other things,
by the profile of the cover assets relative to outstanding
covered bonds, which can change over time, even in the absence of
new issuances.  Fitch expects AIMB to commit to this level of OC
(either publicly or contractually) which is higher than the
contractual OC level of 10.5% based on the prudent market value
of the cover assets.  In coming to its conclusion about the level
of OC supporting the 'BBB+' rating, the agency used its updated
stressed re-financing assumptions for Irish and UK commercial
mortgages to take into account the increased yields on Irish
government bonds, MCS bonds and increased margins on Irish and UK
commercial mortgages loans.

As at August 29, the program was secured by commercial real
estate mortgage loans equating to EUR3.46 billion to 144
borrowers originated in Ireland and the UK.  Approximately 25% of
AIMB's cover pool comprises loans secured on properties located
in Ireland, where 15.8% by market value (MV) are located in
Dublin.  The balance of the cover pool is secured on properties
located in the UK where 46.5% by MV are located in London.  The
majority of assets are located in prime or good secondary,
locations.  The properties are diversified across property type,
with the largest concentrations in retail (44%) followed by
office (32%) based on MV.  Of the pool, 20% by MV constitutes
non-standard property types split between hotels (6.2%), pubs
(0.6%) and other property types (13.2%), such as leisure,
medical, educational facilities, car parks and mixed-use assets.
The weighted average (WA) interest cover ratio of the pool is
1.85x and the WA loan-to-value ratio (LTV) is 73%.

The cover assets residual weighted average residual maturity is
3.1 years and the MCS bonds have a residual weighted average
maturity of 1.2 years.

The MCS program benefits from the Eligible Liabilities Guarantee
(ELG) scheme which has been extended until the end of December
2011 that guarantees amounts held in the issuer bank accounts.
Under the agency's counterparty criteria, the Irish sovereign's
current rating of 'BBB+'/Stable is consistent with the rating
assigned to the mortgage covered bonds.  The agency thus
considers the ELG to be a sufficient mitigant for the issuer to
continue to fulfill account bank functions.  In addition to the
ELG, the bank has been granted a further unconditional and
irrevocable guarantee by the Irish government that covers for all
payments made under derivatives provided by the bank to the MCS

Fitch will monitor the key characteristics of the cover assets
and outstanding covered bonds on an ongoing basis and check
whether the OC taken into account in its analysis provides
protection commensurate with the rating.

* IRELAND: Corporate Insolvencies Down 22% in August
New statistics released by reveal that
corporate insolvency figures for August totalled 119, a 22%
decrease from the July total of 152.

The first eight months of 2011 saw a total of 1,090 corporate
insolvencies, an increase of over 7% on the total recorded for
the same period in 2010 (1,012), discloses.

There was a significant drop in receivership appointments during
August, down to 17 from a high of 39 in July, a decrease of 56%, relates.  However, when comparing year on
year, there is a 16% increase in receivership appointments from
155 during the period January to August 2010 to 180 so far this
year, notes.

The number of court liquidations during the month of August
dropped from 8 in July to 3 during August which is no surprise
with the Courts in summer recess, says.
Creditor's voluntary liquidations also dropped from 105 during
July to 98 in August, states.

With regard to industry totals, the total number of insolvencies
in the construction industry so far this year totalled 278, a 10%
drop on the figures recorded for the same period during 2010, discloses.  The retail industry year on year
figures showed a 20% increase from 124 during the period January
to August 2010 to 149 for the same period this year, when
comparing yearly hospitality figures there was an increase of 7%, notes.  Transport figures increased 34% year
on year with wholesale showing the most dramatic increase of
104%, jumping from 24 January to August 2010 to 49 for the same
period this year, according to

Commenting on the figures, Ken Fennell of kavanaghfennell, the
firm who compile the data commented, "The overall trends in
corporate insolvencies for the year to date would suggest that at
least 1,600 companies will enter into some form of insolvency
arrangement by the end of the year with construction and retail
continuing to bear the brunt."


THINK3 INC: Court OKs Bonelli Erede for Italian Proceeding
The Hon. Christopher Mott at the U.S. Bankruptcy Court for the
Western District of Texas authorized Think3 Inc. to employ
Bonelli Erede Pappalardo Studio Legale as special counsel to
represent the Debtor in its chapter 11 case with respect to the
Italian proceeding and advise the Debtor regarding Italian legal
issues and recovering property from the Italian Trustee.

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

     Founding Partner               EUR600
     Partner                        EUR450
     Senior Lawyer                  EUR350
     Managing Associate             EUR350
     Senior Associate               EUR275
     Junior Associate               EUR225
     Tranee                         EUR175

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

The firm can be reached at:

   Attn: Vittorio Lupoli
   Via delle Casaccie 1
   16121 Genova, Italy
   Tel: 39 010 84621
   Fax: 39 010 813849

                           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.
          Suite 5010, 600 Grant Street
          Pittsburgh, PA 15219-2802

               - and -

          Wesley W. Yuan, Esq.
          1330 Post Oak Boulevard, Suite 800
          Houston, TX 77056
          Tel: (713) 402-3911
          Fax: (713) 513-5848

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.
         600 Congress Avenue, Suite 2400
         Austin, TX 78701-2878
         Telephone: (512) 536-5246
         Facsimile: (512) 536-4598

              - and -

         Zack A. Clement, Esq.
         John D. Cornwell, Esq.
         Camisha L. Simmons, Esq.
         1301 McKinney Street, Suite 5100
         Houston, TX 77010-3095
         Telephone: (713) 651-5151
         Facsimile: (713) 651-5246

              - and -

         G. Larry Engel, Esq.
         Vincent J. Novak, Esq.
         Kristin Hiensch, Esq.
         425 Market Street
         San Francisco, CA 94105-2482
         Telephone: (415) 268-7000
         Facsimile: (415) 268-7522


MARCO POLO: Says Bankruptcy Loan is Key to Preserving Business
Dow Jones' DBR Small Cap reports that Dutch ship owner Marco Polo
Seatrade BV wants to tap a US$4.8 million bankruptcy financing
package, warning that its current lack of access to cash is
causing trouble for the business.

                         About Marco Polo

Marco Polo Seatrade B.V. operates an international commercial
vessel management company that specializes in providing
commercial and technical vessel management services to third
parties.  Founded in 2005, the Company mainly operates under the
name of Seaarland Shipping Management and maintains corporate
headquarters in Amsterdam, the Netherlands.  The primary assets
consist of six tankers that are regularly employed in
international trade, and call upon ports worldwide.

Marco Polo and three affiliated entities filed for Chapter 11
bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-13634) in
New York, on July 29, 2011.  The other affiliates are Seaarland
Shipping Management B.V.; Magellano Marine C.V.; and Cargoship
Maritime B.V.

Marco Polo is the sole owner of Seaarland, which in turn is the
sole owner of Cargoship, and also holds a 5% stake in Magellano.
The remaining 95% stake in Magellano is owned by Amsterdam-based
Poule B.V., while another Amsterdam company, Falm International
Holding B.V. is the sole owner of Marco Polo.  Falm and Poule
didn't file bankruptcy petitions.

The filings were prompted after lender Credit Agricole Corporate
& Investment Bank seized one ship on July 21, 2011, and was on
the cusp of seizing two more on July 29.  The arrest of the
vessel was authorized by the U.K. Admiralty Court.  Credit
Agricole also attached a bank account with almost US$1.8 million
on July 29.  The Chapter 11 filing precluded the seizure of the
two other vessels.

Evan D. Flaschen, Esq., Robert G. Burns, Esq., and Andrew J.
Schoulder, Esq., at Bracewell & Giuliani LLP, serve as bankruptcy
counsel.  The cases are before Judge James M. Peck.

The petition said assets and debt are both more than
US$100 million and less than US$500 million.

NORTH WESTERLY: S&P Raises Rating on Class S Notes to 'BB- (sf)'
Standard & Poor's Ratings Services raised its credit ratings on
North Westerly CLO II B.V.'s class A, B-1, B-2, C, D-1, and D-2
notes, and the combo Q, R, S, U, and X notes.

"These rating actions follow our assessment of the transaction's
performance. We have observed an increase in credit enhancement,
which, in our view, supports the higher ratings," S&P related.

"At the same time, we withdrew our rating on the combo W note
following the decoupling of this combination note into its
components," S&P said.

"None of the ratings were constrained by the application of the
largest obligor default test, a supplemental stress test that we
introduced as part of our criteria update (see 'Update To Global
Methodologies And Assumptions For Corporate Cash Flow And
Synthetic CDOs,' published Sept. 17, 2009) or by the largest
industry default test, another of our supplemental stress tests,"
S&P related.

"We have applied our counterparty criteria and, in our view, the
participants to the transaction are appropriately rated to
support the ratings on the notes (see 'Counterparty And
Supporting Obligations Methodology And Assumptions,' published on
Dec. 6, 2010)," S&P related.

North Westerly CLO II is a cash flow collateralized loan
obligation (CLO) transaction that securitizes loans to primarily
speculative-grade corporate firms.

Ratings List

Class                 Rating
              To                  From

North Westerly CLO II B.V.
EUR413.5 Million Secured Fixed- and Floating-Rate Deferrable-
Interest and Subordinated Notes

Ratings Raised

A             A+ (sf)             A (sf)
B-1           BBB- (sf)           BB+ (sf)
B-2           BBB- (sf)           BB+ (sf)
C             BB+ (sf)            BB (sf)
D-1           B+ (sf)             CCC+ (sf)
D-2           B+ (sf)             CCC+ (sf)
Q (Comb)      BB+ (sf)            B (sf)
R (Comb)      BBB (sf)            BB (sf)
S (Comb)      BB- (sf)            CCC+ (sf)
U (Comb)      BB+ (sf)            BB (sf)
X (Comb)      BB+ (sf)            B+ (sf)

Rating Withdrawn

W (Comb)      NR                  BB+ (sf)

Ratings Unaffected

Sub           NR
T (Comb)      NR
V (Comb)      NR

NR--Not rated.


FONCAIXA FTGENCAT: Fitch Affirms 'CCsf' Rating on Class E Notes
Fitch Ratings has taken various rating actions on Foncaixa
FTGENCAT 3 FTA and Foncaixa FTGENCAT 4 FTA as follows:
Foncaixa FTGENCAT 3 FTA:

  -- EUR186,571,690 class A(G) notes (ISIN ES0337937017):
     Affirmed at 'AAsf', Outlook Stable

  -- EUR10,700,000 class B notes (ISIN ES0337937025): affirmed at
     'Asf', Outlook Stable'

  -- EUR7,800,000 class C notes (ISIN ES0337937033): affirmed at
     'BBsf', Outlook Stable'

  -- EUR6,500,000 class D notes (ISIN ES0337937041): affirmed at
     'Bsf', Outlook Negative

  -- EUR6,500,000 class E notes (ISIN ES0337937058): affirmed at
     'CCsf', Recovery Rating is 'RR4'

Foncaixa FTGENCAT 4 FTA:

  -- EUR225,827,372 Series A(G) notes (ISIN ES0338013016):
     affirmed at 'A+sf', Outlook Stable

  -- EUR7,565,011 Series B notes (ISIN ES0338013024): affirmed at
     'BBBsf', Outlook Stable

  -- EUR5,673,758 Series C notes (ISIN ES0338013032): affirmed at
     'BBsf', Outlook Negative

  -- EUR5,193,880 Series D notes (ISIN ES0338013040): downgraded
     to 'CCCsf' from 'Bsf', Recovery Rating is 'RR3'

  -- EUR5,043,293 Series E notes (ISIN ES0338013057): affirmed at
     'CCsf', revised the Recovery Rating to'RR5' from 'RR2'

The affirmation of Foncaixa FTGENCAT 3 FTA's notes reflects an
increase in credit enhancement levels alongside the transaction's
solid overall performance.  Despite the proportion of defaulted
and over 90 day delinquent loans rising since the previous rating
action, both figures remain low at 1.8% and 1.9% of the
outstanding balance, respectively.  The transaction is likely to
continue to amortize sequentially, while the reserve fund is at
the required amount.

Since closing, Foncaixa FTGENCAT 4's collateral has performed
better than Foncaixa FTGENCAT 3.  Defaulted and over 90 day
delinquent loans have risen since the last rating action, but
remain lower than Foncaixa FTGENCAT 3 FTA at 1.1% and 1.2% of the
outstanding balance, respectively.

The downgrade of Foncaixa FTGENCAT 4's class D notes reflects its
sensitivity to the cumulative effect of non-sequential principal
pay and amortization of the reserve fund required amount.
Although performance has only mildly worsened since the last
rating action, combined with the erosion in available credit
enhancement, this has decreased the notes' credit quality.

Both transactions represent cash flow securitizations of static
portfolio of loans and credit lines to small- and medium-sized
Spanish enterprises granted by Caja de Ahorros y Pensiones de
Barcelona (La Caixa; 'A+'/Stable/'F1').  While Foncaixa FTGENCAT
3 and 4 are each highly granular in terms of obligor
concentration, since no obligor accounts for more than 0.5% of
outstanding, they are both 100% concentrated to Catalonia.  In
terms of industry concentration, Foncaixa FTGENCAT 3 has 45%
exposure to the troubled real estate industry, whereas Foncaixa
FTGENCAT 4 reports a lower 25% exposure.

In forming its views on loss given default for both transactions,
Fitch assumed that all credit lines in the portfolio were fully
drawn.  Both transactions securitize only the initial advances on
credit lines, with any additional advances remaining on the
balance sheet of the originator, and ranking pari passu with the
issuer.  Therefore, redraw activity acts as a constraint on
credit recoveries.

Fitch has assigned an Issuer Report Grade of one star ("Poor")
for both transactions' investor reporting in light of the absence
of several reporting items considered relevant by Fitch (e.g.
counterparty rating triggers).


SAAB AUTOMOBILE: Close to Securing Rescue Loan
Ola Kinnander at Bloomberg News reports that Saab Automobile is
close to getting a loan of about SEK1 billion (US$157 million) to
pay overdue salaries and avert a looming bankruptcy.

According to Bloomberg, one of the three people familiar with the
matter said that the loan would be provided by one of the five
biggest European banks.

"Right now, the focus of Saab management is on working as hard as
possible to bring the company back into calmer waters by
significantly strengthening our financial position, reaching
agreement with all our suppliers on payment and delivery terms
and restarting production as soon as possible," Bloomberg quotes
Chief Executive Officer Victor Muller as saying.  "We are
evaluating all available options in order to secure continuity of
Saab Automobile."

The people said that with the new financing Saab aims to pay
suppliers and then restart production in a few weeks, Bloomberg

As reported by the Troubled Company Reporter-Europe on Aug. 29,
2011, Bloomberg News related that Saab delayed paying wages for
the third month in a row, prompting labor leaders to start a
process that may lead them to seek a bankruptcy declaration
against the carmaker in two weeks.  Saab was scheduled to pay
factory workers on Aug. 25 and administrative employees on
Aug. 26, Bloomberg disclosed.  The automaker, which General
Motors Co. sold last year, suspended production in late March
amid a cash crunch, and the factory at Saab's Trollhaettan,
Sweden, headquarters has been quiet since early June, Bloomberg
recounted.  The Swedish government's Debt Enforcement Agency
started collection proceedings this month at the request of
component suppliers with unpaid bills, according to Bloomberg.

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

SAAB AUTOMOBILE: Parent Posts EUR224-Mil. Net Loss in First Half
BBC News reports that losses at cash-strapped Swedish carmaker
Saab have widened substantially, as it continues to struggle to
secure its future.

According to BBC, parent company Swedish Automobile made a net
loss of EUR224 million (US$322 million; GBP198 million) in the
six months to June 30, compared with EUR56 million a year

As reported by the Troubled Company Reporter-Europe on Aug. 29,
2011, Bloomberg News related that Saab delayed paying wages for
the third month in a row, prompting labor leaders to start a
process that may lead them to seek a bankruptcy declaration
against the carmaker in two weeks.  Saab was scheduled to pay
factory workers on Aug. 25 and administrative employees on
Aug. 26, Bloomberg disclosed.  The automaker, which General
Motors Co. sold last year, suspended production in late March
amid a cash crunch, and the factory at Saab's Trollhaettan,
Sweden, headquarters has been quiet since early June, Bloomberg
recounted.  The Swedish government's Debt Enforcement Agency
started collection proceedings this month at the request of
component suppliers with unpaid bills, according to Bloomberg.

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

AERO INVENTORY: KPMG to Sell Assets Next Month
London Bureau at MarketWatch reports that The Mail on Sunday said
KPMG plans to put Aero Inventory plc up for sale next month.

As reported in the Troubled Company Reporter-Europe on March 7,
2011, Bloomberg News said that Jim Tucker, Aero Inventory's lead
administrator, as cited by the Financial Times, said the company
will be offered for sale by KPMG.  According to Bloomberg, the
newspaper said senior lenders, which include Lloyds Banking Group
Plc, are owed about US$500 million, won't be paid in full.  A
separate TCREUR report on Nov. 18, 2009, related that The
Financial Times said Aero called in administrators KPMG after the
sharp downturn in the aviation industry hit its cash flow and
existing financial backers, spooked by delayed results,
improperly valued stock and the suspension of its shares, refused
to provide emergency funding.  The FT disclosed company had net
debt of US$466.2 million (GBP280 million) at the half-year and
was extremely cash intensive.

                        About Aero Inventory

Aero Inventory plc -- is a
holding company to its subsidiary undertakings.  Aero Inventory
(UK) Limited is primarily engaged in procurement and inventory
management for the aerospace industry.  Aero Inventory (Hong
Kong) Limited, Aero Inventory (Switzerland) AG, Aero Inventory
(Australia) Pty Limited, Aero Inventory (Canada) Inc., Aero
Inventory (Bahrain) SPC and Aero Inventory Japan KK provide
customer support in relation to the activities of Aero Inventory
(UK) Limited. Aero Inventory (USA) Inc. provides services to Aero
Inventory (UK) Limited in relation to the procurement and
purchasing of aircraft parts, logistics and the sale of parts to
non-contract customers in the United States.  The Company
principally operates in the United Kingdom, rest of Europe and
Middle East, America and Asia Pacific.

BROWNS CONSTRUCTION: Goes Into Administration, Cuts 20 Jobs
Manchester Evening News reports that Browns Construction Group
has collapsed after its parent company, Headcrown Group, pulled
the plug.

The business is believed to have collapsed with liabilities of
around GBP5 million, according to Manchester Evening News.

Manchester Evening News relates that a number of employees were
axed during a restructuring in July and about a dozen of the
remaining 20-strong employees were made redundant following
Begbies Traynor's appointment as administrator.  The report
relates that eight employees have been retained to try to recoup
monies owed following the completion of contracts.

The report recalls that the shake-up in July saw Browns
Construction' offices at the Cheadle Royal Business Park, near
Stockport, closed.  Its back office functions were absorbed into
the Warrington-based Cruden Group, another subsidiary of
Headcrown Group, Manchester Evening News relays.

The move was driven partly by continuing challenging market
conditions and would enable it to reduce overheads, Headcrown
Group said a statement obtained by the news agency.

Begbies Traynor's Paul Stanley said work on Browns' current
contracts would be halted, Manchester Evening News discloses.

Browns Construction Group, which was established in 1860,
specialized in schemes in sectors ranging from retail, hotels and
leisure and residential to commercial, healthcare and education.

CORNERSTONE TITAN: Fitch Affirms 'BBsf' Rating on Class D Notes
Fitch Ratings has upgraded Cornerstone Titan 2005-1 plc's class C
CMBS notes and affirmed the class D notes, as follows:

  -- GBP0m class A1 (XS0227570834); Paid in full (PIF)

  -- GBP0m class A2 (XS0229452890); PIF

  -- GBP0m class B (XS0227571139); PIF

  -- GBP22.0m class C (XS0227571642) upgraded to 'A+sf' from
     'Asf'; Outlook Stable

  -- GBP54.4m class D (XS0227571725) affirmed at 'BBsf'; Outlook

The upgrade of the class C notes reflects the fall in leverage
since Fitch's last rating action in December 2010 as a result of
partial prepayment of the Eagle Office loan, still comfortably
the largest in the pool.  Along with the April prepayment of the
Trevelyan House loan (ahead of its July maturity), this led to
the early redemption of the classes A1, A2 and B notes, with the
remaining notes backed by three loans.

In the case of Eagle Office, two charged properties were recently
sold, with proceeds passed through to bondholders on the April
2011 IPD.  The loan's securitized balance has fallen to GBP82.5
million from GBP220.5 million, although an additional GBP25.2
million consists of a subordinated B-note.  While the full
release prices were not met, the sale of the Stonecutter and
Farringdon Road properties raised a sum marginally in excess of
the September 2010 combined valuation, and above the allocated
loan amounts.  The sales represent a favorable outcome compared
to Fitch's 'A' scenario, and the magnitude of the disposals was
sufficient to prompt the rating actions.

The last property securing the Eagle Office loan, Mitre House,
fully-let to CMS Cameron McKenna on a lease expiring in July
2015, was revalued in September 2010.  According to this, one-
third of the 2005 reported value was lost, implying a current
securitized loan-to-value ratio (LTV) of 106%, and a whole LTV of
138%.  The loan is due in July 2012, and in light of its reported
leverage, there is considerable doubt about the borrower's
ability to repay.

The upgrade is based on the class C notes' low leverage, as
implied by a reversionary debt yield of some 30% solely
accounting for the Eagle Office collateral.  Nevertheless, the
proximity of note maturity in 2014 exposes all investors to the
risk that a potential work-out of this loan is not completed in
time.  While reasonably well-located in a central London
location, the underlying property is subject to re-letting risk
and associated capital expenditure in four years, when the
current lease expires.  This reduces the pool of potential
buyers.  While Fitch is confident that collateral value will
remain sufficient to cover the class C note, realization relies
on a single operation being conducted in time, and this
concentration risk limits scope for further upgrades for the
class C notes.

The other class of notes remains heavily exposed to downside risk
on the pool, concentrated within Eagle Office and the specially-
serviced Jubilee Way loan (7%).  The special servicer's strategy
continues to be to prioritize re-letting of vacant space.
Although a new 10-year lease was recently signed, improving
occupancy to 84% from 68%, cash flow problems persist.  Non-
property related fees continue to exert downward pressure on net
operating income, and default interest continues to accumulate.
Fitch expects the loan, which is secured by a tertiary shopping
centre in Scunthorpe, to make a substantial loss. All losses are
likely to be absorbed by the class F notes.

The smallest loan, Benitma House (6%), is secured on a single,
multi-tenanted office building in the City of London.  The loan
has continued to perform strongly since Fitch's last rating
action, and reports interest coverage of 2.94x, debt service of
2.05x and an LTV of 44%.  The agency expects the loan to repay
without loss at its maturity in January 2012.

ENGLISH ROSE: Two More Hotel Units Fall Into Administration
Yorkshire Post reports that the Turner family, the ones behind
English Rose Hotels, which went into administration last week,
has dealt a further blow as Hackness Grange and the Wrea Head
Hotel have been affected by financial crisis.

The two hotels are part of the English Rose Hotels group.

A total of four hotels, which were owned by the Turner family,
are now in administration after the iconic Royal Hotel and
Clifton Hotel in Scarborough were taken over, according to
Yorkshire Post.

The report relates that soaring tax bills and corporate banking
fees have been blamed for the hotels' problems.

Yorkshire Post notes that the English Rose Hotels Empire is split
into smaller companies -- the 20-bedroom Wrea Head at Scalby was
its own limited company and the 33-bedroom Hackness Grange, near
Scarborough, fell under English Rose Hotels plc.

Administrators PricewaterhouseCoopers (PwC) are continuing to run
both hotels as normal until a buyer is found, Yorkshire Post
says.  The report relates that PwC would not confirm whether the
hotel's 52 jobs are at risk.

"The companies have experienced recent financial difficulties and
cash flow problems, leading to the insolvencies.  The two hotels
continue to trade and existing bookings will be honored until
further notice, whilst a buyer for the business and assets is
sought," Yorkshire Post quoted Chris Rooney, joint administrator
and director at PwC, as saying.

Yorkshire Post discloses that buyers are still to be found for
the Royal and the Clifton, which fall under English Rose Hotels
Scarborough Ltd, and the 110 staff are being kept in their jobs
as administrators MCR operate them.

The firm's sister company English Rose Hotels Yorkshire Ltd,
which includes the Green Man Family Inn, Malton, in its
portfolio, has not been affected, Yorkshire Post adds.

JERMON LTD: Administration Costs Dublin Banks GBP43 Million
BBC News reports that Jermon Limited's fall into administration
will cost Allied Irish Banks and Bank of Ireland an estimated
GBP43 million.

As reported in the Troubled Company Reporter-Europe on Feb. 7,
2011, Belfast Telegraph said that Tom Keenan of Keenan Corporate
Finance was appointed administrator to Jermon Limited by First
Trust and other banks, according to Belfast Telegraph.  The
report related that Jermon Limited is landlord for a number of
key retail and office properties in Belfast, including the
Scottish Mutual Building in Donegall Square South, HMV and TK
Maxx in Donegall Arcade and Mothercare in Castle Place.  The
report noted that tenants and creditors of Jermon Limited have
received letters telling them of the administration.

BBC News reports that Jermon Limited owed Allied Irish Banks
(AIB) and Bank of Ireland a combined GBP88 million.  The report
relates that administrators said the banks will receive only
about half that due to the collapse in value of Jermon

The administrators report show that the bulk of the money --
GBP63 million -- was owed to AIB with the balance of
GBP25 million owed to Bank of Ireland, BBC News notes.

BBC News says that the GBP43 million is not the full scale of
bank losses associated with the company.

An earlier statement of affairs filed by Jermon Limited's former
owner, Peter Dolan, estimates that Anglo Irish Bank will lose
GBP27 million while Bank of Scotland Ireland (BoSI) will lose
GBP39 million, BBC News notes.  That is a total loss of at least
GBP109 million, the report relays.

AIB and BoSI are not part of the company administration
procedure; instead they have appointed receivers to individual
assets including Springhill Shopping Centre in Bangor and two
properties in the centre of Dungannon, BBC News adds.

Headquartered in Ireland, Jermon Limited is a property company
that owned a string of prominent retail and office buildings in
Belfast.  Former pharmacist Peter Dolan formed the Jermon group
of companies in 1997.

SOUTHERN CROSS: Finds New Operators for Care Homes
Simon Mundy at The Financial Times reports that Southern Cross
said on Wednesday new operators have been found for more than 90%
of the company's care homes.

Southern Cross will be wound up over the next two months after
being overwhelmed by rising rent bills at 751 of its homes, the
FT discloses.

According to the FT, the company said Jamie Buchan, chief
executive since 2009, will leave "once the process of
transitioning homes is well advanced".  Mr. Buchanan, as cited by
the FT, said he would forgo a compensation package worth nearly

A document sent to the GMB union set out more details of the
progress in finding new operators for the homes, the FT
discloses.   A "first wave" of transition at the end of September
will see 386 homes change hands, with the remainder expected to
follow a month later, the FT says.  All 248 homes owned by NHP,
the biggest landlord, will be taken over by Court Cavendish, with
which NHP has a partnership, at the end of October, the FT notes.
However, no new operator was given for 82 of the homes on the
list, the FT states.

Mr. Buchan said that new operators would be found for every home,
and the process would be completed on schedule, according to the
FT.  If new operators aren't found, the homes will have to close,
the FT notes.

Southern Cross Healthcare provides residential and nursing care
to more than 31,000 residents cared for by 45,000 staff in 750
locations.  It also operates homes that specialize in treating
people with dementia, mental health problems and learning

TORRIDGE TRAINING: Places Trading Unit Into Liquidation
Insidermedia reports that TTS Enterprises Limited, which is a
wholly owned subsidiary of Bideford-based charity Torridge
Training Services Limited, was placed into liquidation on
Aug. 25, 2011.

Ian Walker and Julie Palmer, partners at Begbies Traynor, have
been appointed liquidators, Insidermedia says.

According to the report, Begbies Traynor said Torridge Training
Services Limited is largely unaffected by the liquidation of its
trading arm and will continue to offer training to customers in
Devon, Cornwall and Somerset.

Begbies Traynor said cashflow problems were experienced in early
2011, partly because of cancellations and delayed payments for
courses which had sometimes been sold up to 12 months previously
and partly due to underperformance in other activities.

Insidermedia relates that the liquidators said the directors put
measures in place to address the issues, but the overall cashflow
position meant that the company could no longer continue.

TTS Enterprises Limited was set up to raise money for the charity
through commercial activities.  It operated Headstart, an
apprenticeship hairdressing training scheme that was funded by
the Skills Funding Agency.  The company also traded as First Aid
South West, providing first aid training.  TTS also opened a
frozen yoghurt outlet, Hugg Frozen Yoghurts, in the Princesshay
Shopping Centre in Exeter in 2010.

WALMSLEY: Goes Into Administration, Closes Stores
Express & Star reports that Walmsley has gone into
administration, with the appointment of Leonard Curtis Business
Rescue & Recovery as administrators.

Express & Star relates that Walmsley closed its stores in
Staffordshire and the Black Country.

Stores in Stafford, Dudley and Walsall all closed their doors
suddenly, but the head office in Wednesbury and the Wolverhampton
store remain open, according to Express & Star.  The report
relates that an unnamed new buyer has taken on 25 out of more
than 60 stores run by the company.  It is unclear how many jobs
have been lost, Express & Star relays.

The Wolverhampton store at Snow Hill and a branch in Northfield,
Birmingham, are thought to be among the stores that have been
saved, Express & Star discloses.  The report relates that stores
at Castle Street in Dudley and Bradford Street, Walsall, were
both closed yesterday with notes in the window telling customers
that the store had closed permanently.

The firm's Stafford store in Princes Street was also closed,
Express & Star says.

Walmsley's is a furniture store.

* UK: Insolvent Pubs and Clubs Up 9.4% As Drinkers Stay at Home
Rupert Steiner at, citing a research by accountant
Wilkins Kennedy, reports that the death toll among bars, pubs and
clubs has increased 9.4% over the last quarter as hard-up
drinkers stayed at home to drink cheap supermarket booze.

The survey showed that a total of 116 drinking holes became
insolvent in the last quarter alone, up from the 106 over the
previous quarter, bringing the total to 540 over the past 12
months, according to

Wilkins Kennedy said weak consumer spending and tax rises have
taken their toll on the industry.

According to the report, pub and bar companies that have run into
problems in the last 12 months include nightclub operator
Luminar, which is currently in talks with its banks.

Those that have gone into administration include Scottish bar and
nightclub business Castle Inns and Tyne & Wear-based Principle
Leisure Group, which runs a chain of bars and restaurants,
according to

Northern pub and bar chain Cougar Leisure went into
administration in January and City wine bar chain Balls Brothers
went under in November last year, the report discloses.

"The second quarter of 2011 has been particularly tough for bars,
pubs and night clubs and the death toll keeps rising," quotes Wilkins Kennedy partner Anthony Cork as
saying. "Consumer confidence continues to be poor, curbing
spending on entertainment."


* EUROPE: EFSF Must Not Inject Capital Into Banks, Bafin Says
Carla Main at Bloomberg News reports that German financial
regulator Bafin opposes a proposal by the European Banking
Authority to give the European Financial Stability Facility the
power to directly inject capital into banks.

According to Bloomberg, the German regulator's spokesman
Ben Fischer said in an interview on Tuesday that Bafin's
representative on the EBA board of supervisors voted against a
draft letter to the council of European finance and economy
ministers containing the proposal.

The majority of the 27 EBA members approved the plan, Bloomberg
says, citing the Financial Times Deutschland.

Under its current setup, EFSF can only grant funds to
governments, Bloomberg notes.

Bloomberg relates that Michael Meister, the senior finance and
economy spokesman for German Chancellor Angela Merkel's Christian
Democrats, said the EFSF should only lend to states and not to
banks.  Mr. Meister, as cited by Bloomberg, said that banks
should turn to the governments of the countries in which they
have their headquarters.

* BOOK REVIEW: Hospital Turnarounds - Lessons in Leadership
Editors: Terence F. Moore and Earl A. Simendinger
Publisher: Beard Books
Softcover: 244 pages
Price: US$34.95
Review by Henry Berry

Hospital Turnarounds - Lessons in Leadership is a compilation of
twelve essays on the many approaches that have been taken to
resuscitate hospitals in distressed situations.  Most of the
essayists are CEOs or presidents of hospitals or healthcare
organizations, and their stories are all different and compelling
in their own way.  The hospitals differ in their size,
marketplace, facilities, and services offered.  The causes of
their distress vary and the strategies that were used to overcome
them are wide-ranging.  All-in-all, it makes for an engaging
collection of success stories.

The authors have extensive experience in the healthcare system,
and nearly all have held top leadership posts in several public
and private hospitals.  Most importantly, all have been involved
in successful turnarounds at some time in their careers. Two of
the authors are from the field of marketing, which can play a
significant role in hospital turnarounds.

The number of troubled hospitals rises and falls over time,
depending on many factors, including the state of the U.S.
economy.  There are always some hospitals in a distressed
situation or teetering close to it.  In spite of the fact that
healthcare is a basic need in U.S. society, hospitals are
constantly vulnerable to financial problems because of
competition, changing medical technology, new approaches to
healthcare from improved drugs and public awareness, and medical
malpractice lawsuits.  Any or all of these factors can be
financially crippling and, even if the financial impact is
minimized, a hospital's reputation can be damaged.  Like any
other business organization, hospitals can also run into
difficulty because of poor management or labor problems.

The first and last chapters, "Introduction" and "Turnarounds: An
Epilogue," respectively, are written by the co-editors.  The
balance of the chapters contain first-hand accounts of hospital
turnarounds, with the authors asked by the co-editors to
"document the role of the various publics."  The authors do this,
offering their assessment of the role of the board of directors,
medical staff, management team, volunteers, and other relevant
"publics" in the respective turnarounds.   A common thread in
this book is that the import and activities of these publics were
different in every turnaround.  Each turnaround had to address
its own grievous, overriding problem or set of problems.  Each
turnaround had its own cast of characters who brought different
backgrounds and skills to the turnaround.  As a result, each path
taken to overcoming the distressed situation was different.

No matter what the cause or causes of a hospital's distressed
situation, in nearly every case the problems were first realized
when a financial problem became apparent.  Thus, turnarounds are
inevitably focused on improving a hospital's financial situation.
As one of the authors notes, "A turnaround is most often the
result of increased revenues and decreased expenses."  The
approach taken by some of the authors was to focus on
"[increasing] revenues to improve the operating margins of their
organizations."  Many other turnarounds were accomplished by
focusing on reducing expenses.  Invariably, however, a
combination of both was needed and working toward these paired
objectives required a new strategic thinking and the development
of operational capabilities that prepared the hospital for long-
term survival in continually changing market conditions.  One
author's prescription for success was, "Upward communication,
fluidity of organizational structure, a reduction of unnecessary
bureaucratic rules and policies, and ambitious yet realistic
goals and objectives."  These practices are present in healthy
companies and usually missing in distressed companies.
Implementation of these business practices is essential for a
hospital to return to a favorable financial footing.

Another author addressed "organizational burnout," which must be
corrected if a hospital is to survive.  Burnout is evident when
"the sum of an organization's actual output is decreasing over
time when compared with its potential output."  The challenge
facing hospital executives and turnaround specialists is to
reduce -- and ideally, eliminate -- the gap between actual and
potential output.  The smaller the gap, the more efficient,
productive, and healthy the organization.

These are just a few of the observations and lessons provided in
this collection of essays.  Through engaging first-person
accounts of rescue stories, the reader learns what a turnaround
is all about, how to diagnose a distressed situation, and how to
formulate a strategy that implements specific corrective actions.

Terence F. Moore has been involved in the Michigan hospital
system as President and CEO of Mid-Michigan Health, Board Member
of the Michigan Hospital Association, and Chair of the East
Michigan Hospital Association.  He is also a fellow of the
American College of Healthcare Executives.  Earl A. Simendinger
is a professor of management at the College of Business at the
University of Tampa who for 20 years was a hospital
administrator.  Also a fellow in the American College of
Healthcare Executives, he has written many books and articles on
management and organizational development.


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

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

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

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


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

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

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

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

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

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

                 * * * End of Transmission * * *