TCREUR_Public/110921.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

         Wednesday, September 21, 2011, Vol. 12, No. 187

                            Headlines



A U S T R I A

A-TEC INDUSTRIES: Penta Sues Over Contor Selection as Investor


B U L G A R I A

PETROL AD: Fitch Cuts Long-Term Issuer Default Rating to 'C'


D E N M A R K

* DENMARK: Banks Face Insolvency Threat as Rescue Bill Stalls


F R A N C E

SPOTLESS HOLDING: S&P Affirms 'B' Corporate Credit Rating


G E R M A N Y

TELDAFAX HOLDING: On Brink of Bankruptcy in 2009, Audit Shows


G R E E C E

EUROBANK EFG: Moody's Corrects 2 Covered Bonds Ratings to 'Ba3'
EUROBANK EFG: Moody's Corrects EUR700-Mil. Bonds Rating to 'Ba3'
* GREECE: Should Begin Orderly Default, Nouriel Roubini Says
* GREECE: Had Productive Bailout Talks with Official Creditors


I C E L A N D

KAUPTHING BANK: To Settle US$2-Bil. Tchenguiz Claim Over Collapse


I R E L A N D

OPERA FINANCE: S&P Lowers Rating on Class D Notes to 'B-'
TAURUS CMBS: S&P Lowers Rating on Class D Notes to 'B (sf)'
WESTON AERODROME: Financial Situation Stabilizing


I T A L Y

FIAT SPA: DBRS Downgrades Senior Unsecured Debt Rating to 'BB'


K A Z A K H S T A N

KAZTRANSGAS: Fitch Upgrades LT Issuer Default Ratings to 'BB+'


N E T H E R L A N D S

ELM BV: Moody's Cuts Rating on EUR84-Mil. Series 41 Notes to 'B1'
ELM BV: Moody's Lowers Rating on EUR50-Mil. Notes to 'Ba2'
ELM BV: Moody's Lowers Rating on EUR22.5-Mil. Notes to 'Ba1 (sf)'


S P A I N

SANTANDER EMPRESAS: Fitch Affirms 'Csf' Rating on Class F Notes


S W E D E N

SAAB AUTOMOBILE: Deutsche Bank Agrees to EUR70-Mil. Bridge Loan


U N I T E D   K I N G D O M

AUSSIE BASILDON: Closes Outback Steakhouse in Basildon
CUBE HOTELS: Skylane Hotel Buys Hotel Unit in Evesham
GALA GROUP: Moody's Assigns 'B2' Rating to GBP350-Mil. Notes
HERDMAN'S MILL: Owes Creditors More Than GBP10 Million
LEHMAN BROTHERS: Has Agreement in Principle With Lehman Europe

LLANGOLLEN HOTELS: Some Creditors Won't Get Money Back
PEDLEY FURNITURE: MJM Marine Mulls Firm Acquisition
RANGERS FOOTBALL: Owner Says Club Not Broke, Judge Freeze Assets


X X X X X X X X

* UBS Trader Charged in London With Fraud


                            *********


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


A-TEC INDUSTRIES: Penta Sues Over Contor Selection as Investor
--------------------------------------------------------------
Zoe Schneeweiss at Bloomberg News reports that Penta Investments
Ltd. said it has filed a lawsuit at the Vienna Commercial Court
against A-Tec Industries AG via a subsidiary.

According to Bloomberg, a statement on Tuesday noted that "Penta
is convinced that selecting Contor Industries GmbH as an investor
for A-Tec is seriously breaching the rules set out in the
restructuring plan of A-Tec as approved by the Vienna Commercial
Court and thereupon by A-Tec itself."

"A number of violations prove that the search for and selection
of an investor for A-Tec was not conducted in a fair and proper
manner," Bloomberg quotes Penta as saying in the statement.
"Penta thus expects a verdict which will result in refraining
A-TEC from breaching the binding rules and procedures of the
restructuring plan."

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

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


===============
B U L G A R I A
===============


PETROL AD: Fitch Cuts Long-Term Issuer Default Rating to 'C'
------------------------------------------------------------
Fitch Ratings has downgraded Bulgaria-based fuel distributor
Petrol AD's Long-term Issuer Default Rating (IDR) to 'C' from
'CC'.  Fitch has also downgraded the senior unsecured rating of
Petrol AD's EUR98.8 million notes due on October 26, 2011, to 'C'
from 'CC'.  The Recovery Rating on the notes is 'RR4'.

The downgrade reflects the company's recently announced proposal
for bondholders to extend the outstanding notes' maturity date by
three months to January 26, 2012.  Petrol AD also proposed to
bondholders to delay the interest payment due on October 26,
2011, by three months to January 26, 2012, together with further
accrued interest to that date.

Petrol AD's proposal will face a vote at the bondholders meeting,
scheduled for October 5, 2011. If the bondholders meeting passes
the resolution to extend the maturity date by three months, Fitch
would consider this as a distressed debt exchange.  This is
because under its criteria, the bond's extended maturity would be
a material reduction in terms vis-a-vis its original contractual
terms and the maturity extension would be conducted in order to
avoid a traditional payment default.

Fitch understands that as at the end of June 2011 Petrol AD owned
more than 25% of the bond, thus at the first bondholders meeting
where a 75% quorum is required or at the second re-convened
bondholders meeting where a 25% quorum is required to pass the
resolution, Petrol AD's ownership percentage represents
significant voting power to enable approval of the debt maturity
extension proposal.

Together with the proposal to extend the bond maturity, the
company has also announced its intention to acquire up to EUR10m
of bonds at 85% of the nominal value.  This would increase the
group's voting percentage.

Conversely, if the bondholders meeting does not agree to extend
the maturity date, in Fitch's view, the risk of default increases
provided that by that time the company does not unexpectedly
raise funding for the notes repayment at the original maturity
date.  Fitch is concerned that the company's original plan to
refinance the maturing bond with bank funding may be delayed.

At end June 2011, the Petrol AD group had weak liquidity.  It had
cash of BGN65.7 million against short-term debt of BGN284.7
million, including the bonds due on October 26.

In Q1 of 2011, the Petrol AD group purchased bonds of a nominal
value of EUR26.6 million, reducing the amount of bonds it had due
to EUR72.2 million.

Petrol AD is a leading fuel distributor in Bulgaria.  It operates
a wholesale and retail distribution business.


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


* DENMARK: Banks Face Insolvency Threat as Rescue Bill Stalls
-------------------------------------------------------------
Frances Schwartzkopff and Peter Levring at Bloomberg News report
that Danish lawmaker efforts to spur bank consolidation and help
lenders avoid Europe's toughest resolution laws may be stalling,
raising the risk of more insolvencies and senior creditor losses
in the Nordic country.

According to Bloomberg, the local lenders group, the country's
financial regulator and bankers who advise on takeovers said that
this month's bank rescue bill, Denmark's fourth since 2008, may
not trigger the wave of consolidation lawmakers had targeted as
local bank managers resist takeovers and potential buyers seek
more inducements to merge as they view balance sheets with
mistrust, the local lenders group.

Lawmakers in Copenhagen this month passed a bill that will allow
banks to tap funds from the Depositor Guarantee Scheme to finance
takeovers of peers facing insolvency, Bloomberg recounts.  Such
mergers would also allow the acquiring bank to extend its state-
backed guarantee beyond 2013.  Bloomberg notes that Claus E.
Petersen, the deputy chairman of the Association of Local Banks,
said the measures aren't enough.

"They tried hard to change some of the conditions that went
wrong" in the resolution package of October, which introduced the
bail-in rules, Mr. Petersen, as cited by Bloomberg, said in an
interview.  "But at the same time, there are some tools missing
that would help consolidation along."

Denmark's banks are struggling to emerge from the country's
financial crisis as Europe's lenders face a deteriorating funding
environment amid concern the region's debt crisis is getting
worse, Bloomberg relates.  That's threatening to exacerbate
Denmark's chances of recovery as investors shun all but the
safest markets, Bloomberg states.


===========
F R A N C E
===========


SPOTLESS HOLDING: S&P Affirms 'B' Corporate Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' long-term
corporate credit rating on France-based household goods
manufacturer Spotless Holding SAS.

The rating was then withdrawn at the issuer's request.  At the
time of the withdrawal, the outlook was stable.

"At the same time, we withdrew our 'B' long-term issue rating on
Spotless' proposed senior secured bond at the issuer's request,"
S&P stated.

"At the time of the withdrawal, the rating on Spotless reflected
our opinion of its highly leveraged financial risk profile
following a leveraged buyout by funds advised by private equity
group BC Partners in April 2010. The rating also reflected our
assessment of Spotless' business risk profile as weak, based on
the group's narrow business and geographic focus, degree of
customer concentration risk, and its participation in the mature
and highly competitive European laundry care segment," S&P
stated.

"For a more detailed rationale, see our research updated titled
'Spotless Holding Assigned 'B' L-T Rating; Outlook Stable;
Proposed Secured Bond Rated 'B' (Recovery Rating '4'),' published
June 6, 2011, on Ratings Direct on the Global Credit Portal," S&P
said.


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


TELDAFAX HOLDING: On Brink of Bankruptcy in 2009, Audit Shows
-------------------------------------------------------------
According to Bloomberg News' Niklas Magnusson, Sueddeutsche
Zeitung reported that German authorities knew TelDaFax Holding AG
was close to bankruptcy in September 2009, almost two years
before it filed for bankruptcy and cost its customers about
EUR500 million (US$680 million).

Sueddeutsche Zeitung cited an audit by German authorities as its
source.

TelDaFax Holding AG is Germany's biggest independent electricity
retailer.


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


EUROBANK EFG: Moody's Corrects 2 Covered Bonds Ratings to 'Ba3'
---------------------------------------------------------------
Moody's Investors Service is correcting the ratings of two
covered bonds issued by EFG Eurobank Ergasias S.A. under the
EUR5 billion Global Covered Bond Programme to Ba3 from WR.

Affected instruments are:

   -- EUR750,000,000 Series 2 Floating Rate Covered Bonds
      (ISIN: XS0511780099)

   -- EUR500,000,000 Series 3 Floating Rate Covered Bonds
      (ISIN: XS0515809589)

The ratings for these two covered bonds were previously withdrawn
on June 20, 2011, due to an internal administrative error.


EUROBANK EFG: Moody's Corrects EUR700-Mil. Bonds Rating to 'Ba3'
----------------------------------------------------------------
Moody's Investors Service is correcting the rating of
EUR700,000,000 Series 3 Floating Rate Covered Bonds (ISIN:
XS0515809662) issued by EFG Eurobank Ergasias S.A. (Eurobank EFG)
under the EUR3 billion Global Covered Bond Programme to Ba3 under
review for possible downgrade from WR.

The rating for this covered bond was previously withdrawn on
July 20, 2011, due to an internal administrative error. On
July 27, 2011, covered bonds issued by Eurobank EFG under its
second covered bond program (EFG CB II) were placed on review for
downgrade.


* GREECE: Should Begin Orderly Default, Nouriel Roubini Says
------------------------------------------------------------
According to Bloomberg News' Colm Heatley, Nouriel Roubini,
co-founder and chairman of Roubini Global Economics LLC, wrote in
the Financial Times that Greece should begin an orderly default
and leave the Eurozone, in order to break a "vicious cycle of
insolvency, low competitiveness and ever deepening depression."

"A return to a national currency and a sharp depreciation would
quickly restore competitiveness and growth, as it did in
Argentina," Mr. Roubini wrote.  Greece "cannot return to growth
unless competitiveness is rapidly restored.  Without a return to
growth, its debts will stay unsustainable."

The current deal on offer to Greece from Europe is a "rip-off,"
Mr. Roubini wrote.


* GREECE: Had Productive Bailout Talks with Official Creditors
--------------------------------------------------------------
Alkman Granitsas and Stelios Bouras at The Wall Street Journal
report that Greece said it had "a productive and substantive
discussion" with its official creditors on Monday in talks aimed
at releasing a new slice of bailout aid, and a Greek finance
ministry official said an agreement was close.

A Greek official said an announcement was likely today, the WSJ
notes.

Greece's government is scrambling to meet conditions for a fresh
infusion of official aid, and worries about a looming default
have undermined sentiment in markets across the globe, the WSJ
discloses.

Greece's official lenders are seeking hard evidence that Athens
intends to take action to close a budget deficit now set to
exceed its targets, the WSJ says.  They are threatening not to
release EUR8 billion (US$11 billion) in bailout funds, without
which Greece will likely run out of money next month, the WSJ
states.

"We will publish this week decisions on the restructuring of
public bodies," the WSJ quotes Mr. Venizelos as saying in a
business conference Monday.  "In light of the new budget, it is
clear that our emphasis will be on the spending side."

Greece is due to submit its 2012 draft budget to parliament on
the first Monday in October, as foreseen by the Greek
constitution, the WSJ discloses.  The plan will be voted on by
the end of October, the WSJ notes.


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I C E L A N D
=============


KAUPTHING BANK: To Settle US$2-Bil. Tchenguiz Claim Over Collapse
-----------------------------------------------------------------
Kit Chellel at Bloomberg News reports that Kaupthing Bank hf
agreed to settle a GBP1.5 billion (US$2.4 billion) claim brought
by the Tchenguiz Family Trust over losses caused by the Icelandic
bank's collapse.

According to Bloomberg, a statement noted that Kaupthing reached
an agreement with the trust, Vincent Tchenguiz, and other
companies connected to the family, known for its U.K. real estate
investments, for an undisclosed sum.  Sean Bellew, a spokesman
for Tchenguiz declined to comment on the settlement's value
because the terms are confidential, Bloomberg states.

The family had close ties with Kaupthing and suffered what
Vincent Tchenguiz described as "massive losses" when the bank
failed in October 2008, Bloomberg recounts.  U.K. regulators are
investigating loan deals struck between Kaupthing and Vincent
Tchenguiz and his brother Robert, Bloomberg says.

Vincent Tchenguiz said in the statement that the settlement will
help Kaupthing's creditors, Bloomberg notes.

Kaupthing, based in Reykjavik, confirmed a settlement had been
reached and the Tchenguiz Family Trust had withdrawn its claims
in a statement on its Web site, Bloomberg discloses.

In a separate claim, a trust controlled by Robert Tchenguiz is
suing Kaupthing to recoup losses of GBP330.7 million from a
failed loan deal, Bloomberg notes.

                      About Kaupthing Bank

Headquartered in Reykjavik, Kaupthing Bank --
http://www.kaupthing.com/-- is Iceland's largest bank and among
the Nordic region's 10 largest banking groups.  With operations
in more than a dozen countries, the bank offers a range of
services including retail banking, corporate finance, asset
management, brokerage, private banking, treasury, and private
wealth management.  Kaupthing was created by the 2003 merger of
Bunadarbanki and Kaupthing Bank.  In October 2008, the Icelandic
government assumed control of Kaupthing Bank after taking similar
measures with rivals Landsbanki and Glitnir.

As reported by the Troubled Company Reporter-Europe, on Nov. 30,
2008, Olafur Gardasson, assistant for Kaupthing Bank hf, filed a
petition under Chapter 15 of title 11 of the United States Code
in the United States Bankruptcy Court for the Southern District
of New York commencing the Debtor's Chapter 15 case ancillary to
the Icelandic Proceeding and seeking recognition for the
Icelandic Proceeding as a "foreign main proceeding" under the
Bankruptcy Code and relief in aid of the Icelandic Proceeding.


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


OPERA FINANCE: S&P Lowers Rating on Class D Notes to 'B-'
---------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
Opera Finance (CMH) PLC's class A, B, C, and D notes.

Opera Finance (CMH) is a secured loan commercial mortgage-backed
securities (CMBS) transaction that closed in February 2006 and
was arranged by Eurohypo AG (A-/Negative/A-2), which also acts as
the servicer. "The rating actions follow our review of the credit
quality of the CMH Loan securing the notes," S&P related.

                         The CMH Loan

The transaction is backed by a single loan, which is interest-
only (non-amortizing, with the full principal due in one payment
at maturity) and matures in January 2013. It is split into a
senior and junior loan. The senior loan (with a current balance
of EUR375 million) is securitized and the junior loan (with a
current balance of approximately EUR85 million) sits outside the
transaction. The National Asset Management Agency (NAMA)
purchased the junior loan in May 2010.

The borrower is currently meeting the interest coverage ratio
(ICR) covenant of 110%; the senior ICR is currently 1.57x. There
is no senior loan-to-value (LTV) ratio covenant; the senior LTV
ratio is currently 128.6%.

However, there is a whole-loan LTV ratio covenant of 80%, which
has been breached. Since this happened, the servicer has been
trapping excess cash, which currently amounts to EUR7.2 million.
The servicer can use this money to make up any interest
shortfalls on the junior loan and can only use it to pay down the
senior loan after a senior loan event of default has occurred.

                 Properties Securing the Loan

The loan is secured by 16 secondary-quality retail and office
properties in Ireland, with a high concentration in Dublin (15
properties, accounting for 92.6% of the external value). The 16th
property is in Cork, with Marks & Spencer as the tenant.

The properties are let on 94 leases and have a weighted-average
occupancy of 98.8%. The weighted-average lease term is 11.6 years
until first break, which is long by industry standards, and 13.5
years until lease expiry. Rental income has decreased since
closing, due to a number of tenants going into administration and
to new leases being agreed at lower rents. Although all of
the leases in the portfolio have upward-only rent reviews,
existing tenants have also been able to negotiate lower rents in
exchange for not exercising their break clause options. This is
not unusual in the current economic climate and has had only a
marginal impact on income.

Six of the 16 properties account for 90% of the total market
value of the portfolio. The property with the largest market
value is the Stillorgan Shopping Centre, which is approximately
four miles southeast of Dublin's city center. The shopping center
is 95% occupied and contributes 22% toward the total rental
income for the whole portfolio. There are 70 tenants in place,
with an overall weighted-average unexpired lease term of 8.05
years. Tenants include a Tesco supermarket, a McDonald's
restaurant, and a Dunnes Stores department store. Local
competition has increased since 2005, due to the opening of the
Dundrum shopping center nearby. However, as the two centers offer
contrasting retail facilities, they share relatively few tenants.
Rental income at the Stillorgan Shopping Centre has suffered less
than may have been expected. (For more information on the
portfolio securing the loan, see 'New Issue: Opera Finance (CMH)
PLC,' published Feb. 20, 2006.)

                     S&P's Assessment of the Loan

S&P noted that it does not expect the loan to default during the
loan term because:

   -- The portfolio generates sufficient income to meet the
      loan's debt service obligations;

   -- It has a healthy ICR; and

   -- Only 5.4% of the income could still fall away during the
      remaining loan term, even if we assume that all break
      options are exercised and no leases due to expire before
      July 2013 are renewed.

"However, the senior ICR may come under pressure if the Irish
government abolishes upward-only rent reviews (see 'DRAFT
LEGISLATION POTENTIALLY IMPACTING PORTFOLIO INCOME')," S&P
stated.

"Although we think it unlikely that the loan will default during
its term, we consider there to be a real risk that it will
default at maturity in 2013, given the current LTV ratios and the
economic climate in Ireland," S&P stated.

The properties securing the loan have been revalued on a number
of occasions since closing in December 2005. In February 2011,
they were valued at EUR291.52 million, from EUR342.19 million in
December 2009 and EUR500.47 million at closing. This has resulted
in a market value decline of 42% since closing and has increased
the senior LTV ratio to 128.6% from 75.0% at closing.

                         Note Maturity

"In view of the current economic conditions in Ireland, we
consider that values are unlikely to recover sufficiently to
attract a sale price or refinance agreement that would fully
repay the secured loan at scheduled maturity. This would leave
the servicer with a two-year tail period to work out the loan. In
such a short period, the workout options available to the special
servicer in a loan default scenario could be restricted. If the
issuer is to meet the note obligations in full by note maturity,
we envisage scenarios in which the special servicer would have to
sell the assets at a discount to current values," S&P stated.

"In view of these factors, we consider principal losses on this
loan to be likely. This would in turn translate to losses on the
class C and D notes, in our view," S&P related.

   Draft Legislation Potentially Impacting Portfolio Income

The provision for upward-only rent reviews in this portfolio has
meant that income has been relatively resilient in recent years.
The Irish government is currently contemplating draft legislation
that would abolish upward-only rent reviews. If it adopts this
legislation, rental income for the portfolio may come under
pressure. "We consider that this downward pressure on income
would likely adversely affect property values. We will monitor
the progress of this and, if the Irish government passes this
draft legislation, we will assess the potential impact for the
transaction," S&P related.

                           Conclusion

"The rating actions reflect our view that the notes' credit
quality has deteriorated as a result of value declines and
refinance risk. We have therefore lowered our ratings on all
classes of notes. We also consider that the loan will likely
suffer principal losses that could cause losses to the C
and D notes and we have reflected this risk in our ratings," S&P
stated.

Ratings List

Opera Finance (CMH) PLC
EUR375 Million Commercial Mortgage-Backed Floating-Rate Notes

Class               Rating
            To                  From

Ratings Lowered

A           BBB (sf)            A (sf)
B           BB (sf)             BBB (sf)
C           B (sf)              BB (sf)
D           B- (sf)             B (sf)


TAURUS CMBS: S&P Lowers Rating on Class D Notes to 'B (sf)'
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
Taurus CMBS (Pan-Europe) 2007-1 Ltd.'s class A2, B, C, and D
notes. "At the same time, we affirmed our ratings on the
other notes," S&P stated.

"The rating actions follow our review of the 11 remaining loans
in the transaction. In view of some short weighted-average lease
terms, relative to remaining loan terms, and our view that
investor appetite for secondary assets remains limited as
borrowers continue to face difficulties refinancing loans,
we have lowered our ratings on the class A2 to D notes," S&P
related.

"We have affirmed our ratings on the class E and F notes to
reflect our view that, although these classes are susceptible to
principal losses, we do not expect these to occur in the near
term," S&P stated.

"Additionally, we have affirmed our rating on the class A1 notes,
which we downgraded on July 12, 2011 following implementation of
our 2010 counterparty criteria (see 'Ratings List Resolving
European Structured Finance Counterparty CreditWatch Placements
--- July 12, 2011 Review'). The rating on the class A1 notes
reflects our view on the risks that this class could face if the
transaction's interest rate and currency swap provider, Merrill
Lynch & Co. Inc. (A/Negative/A-1), were to default," S&P noted.

                          Fishman JEC Loan

"The Fishman JEC loan (30% of the pool) is secured by 18 office
and industrial properties throughout France. The portfolio
benefits from approximately 85% of income secured by credit-rated
tenants. However, the weighted-average lease term of
approximately three years coincides with the period until loan
maturity in 2014. We therefore believe that the portfolio could
face refinance risks if tenants do not renew their leases.
Furthermore, our review of this loan has considered the secondary
nature of the assets and an apparent dearth of investor appetite
for such assets," S&P stated.

"Although we recognize the risk that the borrower might not repay
the loan in full when it matures, we do not expect principal
losses to occur in the near term. Furthermore, we note that legal
final maturity of the notes is in 2020, so the servicer could
extend the loan. This would provide the servicer with time to
improve the properties and/or re-let them to improve the
portfolio's marketability and thereby reduce losses," S&P noted.

                         WPC #1 G&S Loan

The WPC #1 G&S loan (1% of the pool) is secured by two
industrial/manufacturing properties in Pttlingen and St Ingbert,
Germany.

The properties were fully leased to Gortz and Schiele GmbH & Co.
Prazisionstertigung KG. Following the tenant's insolvency in
2009, the two properties have not been generating income. The
cash manager, Wells Fargo Bank N.A., therefore continues to draw
on the liquidity facility to fund interest payments due under the
loan. "We note that the special servicer, Capita Asset Services
(U.K./Ireland) Ltd., is considering marketing the Puttlingen
property for sale," S&P stated.

"Considering the location and quality of the properties, we are
of the view that they would appeal to a limited group of
potential buyers. After accounting for necessary capital
expenditures that would be needed on both properties, we believe
that this loan is unlikely to be recovered in full and could
trigger losses on the notes, although not in the near term.
However, we expect any principal losses to be contained in the
class E and F notes," S&P noted.

                         Remaining Loans

The remaining loans in the transaction are secured by retail,
office, and industrial properties in Switzerland, France, and
Germany. The portfolio predominantly comprises secondary assets
with a weighted-average lease term of approximately four years.
Of the remaining loans in the portfolio, 34% by balance is
scheduled to mature in the next 12 months. "We believe that
borrowers of these loans may experience difficulties refinancing
the loans at their due dates," S&P related.

General market conditions remain constrained and, in the real
estate sector, occupier and investor demand remain stagnant. This
in turn continues to affect values. (Statistics for this year to
date suggest that borrowers are struggling to refinance their
loans. Of the loans maturing between January and July, only one
in three repaid in full at their scheduled maturity [see
"European CMBS Monthly Bulletin (August 2011): Only One In Three
Loans Maturing Between January And July Repay As Those In
Continental Europe Show Signs Of Pressure," published Sept. 5,
2011].)

"In our view, these factors are likely to affect lenders'
willingness to provide refinance. We note, however, that the
generous tail period between loan and note maturity (will
mitigate refinance risk to some extent because it provides allows
the servicer some time to resolve those loans that do not
repay at their scheduled maturity," S&P stated.

Taurus CMBS (Pan-Europe) 2007-1 is a pan-European conduit
transaction that closed in August 2007. The transaction is
currently backed by 11 loans, down from 13 at closing.

Ratings List

Taurus CMBS (Pan-Europe) 2007-1 Ltd.
EUR549.95 Million and CHF0.1 Million
Commercial Mortgage-Backed
Floating-Rate Notes

                  Rating
Class       To             From

Ratings Lowered

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

Ratings Affirmed

A1          A+ (sf)
E           B- (sf)
F           B- (sf)


WESTON AERODROME: Financial Situation Stabilizing
-------------------------------------------------
Emmet Oliver at Irish Independent reports that the only airport
on the National Asset Management Agency's books, the Weston
Aerodrome, once owned by developer Jim Mansfield, has started to
stabilize financially with rising traffic and expansion plans as
receiver KPMG seeks a buyer.

The airport, which hosts pilot training and executive jet
facilities, recently appointed a new board and hopes to grow
employment from about 120 now to 200 in the medium term, Irish
Independent relates.

The airport is also seeking to retain planning for pilot
education facilities and simulators, Irish Independent notes.

NAMA put the airport on its Web site for potential purchasers
several weeks ago, garnering international headlines, Irish
Independent recounts.  The airport is being operated by Premier
Aviation on behalf of KPMG, which is in turn working for NAMA,
Irish Independent discloses.

According to Irish Independent, Premier Aviation told customers
in an information update that aviation traffic has greatly
increased at the airport since May.

In the update, Premier Aviation's John McCallion said the airport
was on track to increase the workforce at Weston executive
airport to 200 people in the medium to long term, Irish
Independent notes.

The airport is also planning to offer an executive VIP and crew
lounge area in the near future, Irish Independent says.

The airport has also had additional queries in relation to
private jets taking up hangar space there.

Mr. McCallion said the airport was now self-sustaining and the
mandate was to make sure it stayed a going concern.


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


FIAT SPA: DBRS Downgrades Senior Unsecured Debt Rating to 'BB'
--------------------------------------------------------------
DBRS has downgraded the Senior Unsecured Debt rating of Fiat
S.p.A. to BB (high) from BBB (low).  The downgrade reflects
DBRS's assessment of Fiat's business profile as a stand-alone
automotive company, while also incorporating the Company's
increasing ownership of Chrysler Group LLC, which now clearly
represents a core component of Fiat's business strategy.  While
Chrysler serves to enhance the Company's product and geographic
diversification (albeit still within the automotive sector), DBRS
notes that significant integration risks persist, with Fiat
potentially exposed to material additional financial obligations
through its ownership of Chrysler.  The trend on the ratings is
Negative, reflecting significant headwinds in Fiat's core
European automotive market as well as ongoing challenges
associated with several forthcoming product launches across major
automotive markets.  Concurrent with the downgrade and pursuant
to DBRS's Rating Methodology for Leveraged Finance, DBRS has
assigned an Issuer Rating of BB (high) to the Company, with
associated recovery and instrument ratings of Fiat's senior
unsecured debt being assessed at RR4 and BB (high), respectively.
(The BB (high) senior unsecured debt rating of Fiat Finance
Canada Ltd. reflects the unconditional guarantee of the Company).
With these rating actions, Fiat is removed from Under Review with
Negative Implications, where it was placed on July 22, 2010.

The 2010 results of Fiat's continuing operations following the
Demerger moderately improved year-over-year, although operating
margins remained weak relative to the automotive industry
average.  The lackluster results reflect challenging conditions
in Fiat's core European market, where (notwithstanding
significant variances across nations) aggregate industry volumes
declined by approximately 5%.  This was exacerbated by share
losses, mostly attributable to materially lower demand for
compressed natural gas (CNG) vehicles, where the Company is
particularly strong.  Partly offsetting the above was ongoing
solid performance in the Brazilian market, where Fiat retained
its leadership position, as well as a sharp increase in light
commercial vehicle (LCV) volumes.

In 2011, the Company has been progressively increasing its
ownership position in Chrysler from an initial level of 20% to
the current stake of 53.5% (on a fully diluted basis), with this
likely increasing to 58.5% by year-end.  DBRS notes that Chrysler
has become an integral component of the Company's business
strategy.  Chrysler not only represents a foray into the
important North American market (from which Fiat has long been
absent), Fiat is also depending on Chrysler-derived products to
complement the product portfolios of the Lancia and Fiat brands.
DBRS recognizes that, despite the consolidation of Chrysler, Fiat
and Chrysler currently manage funding matters on an independent
basis, with the Company offering no guarantee or formal support
of Chrysler's financial obligations; (DBRS notes that per Fiat's
credit documentation Chrysler is ring-fenced, with the latter's
debt maturity schedule also being very favorable).  However,
given how strategically important Chrysler has become to Fiat,
DBRS considers it likely that the Company would provide some
level of financial assistance to Chrysler if needed.  DBRS notes
that Fiat's current financial metrics excluding Chrysler are
consistent with the BB rating range, with the potential of
further funding assistance toward Chrysler firmly entrenching the
newly assigned ratings.

The negative trend of the ratings highlights the significant
challenges facing both Fiat and Chrysler.  Regarding Fiat,
industry volumes in Europe and the Company's native Italy are at
the lowest levels since the late 1990s, with similar sales
numbers expected to persist to the end of the year.  The Company
is hoping to reverse its market share loss through recent and
forthcoming launches of products, some of which are derived from
Chrysler.  With respect to Chrysler, it revised numerous models
in late 2010 and has performed reasonably in the U.S. market
through the first six months of this year amid a moderate
recovery of the industry.  However, Chrysler is currently in
negotiations with the United Auto Workers (UAW) concerning a new
labor agreement and still faces many significant product launches
under its new ownership (with successful market acceptance
remaining uncertain).  If Fiat (and by extension Chrysler) is
able to weather the above-cited headwinds without incurring
significant losses or experiencing further deterioration in its
financial profile, the trend on the ratings could be changed to
Stable.  DBRS notes that any indication of Fiat's intent to
acquire the UAW Voluntary Employee Beneficiary Association (VEBA)
stake in Chrysler would trigger an event-driven review of the
ratings.


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


KAZTRANSGAS: Fitch Upgrades LT Issuer Default Ratings to 'BB+'
--------------------------------------------------------------
Fitch Ratings has upgraded Kazakhstan-based KazTransGas's (KTG)
Long-term foreign and local currency Issuer Default Ratings
(IDRs) to 'BB+' from 'BB' and affirmed its Short-term IDR at 'B'.
The Outlooks for the Long-term IDRs are Stable.

The agency has simultaneously affirmed JSC Intergas Central
Asia's (ICA) Long-term foreign and local currency IDRs at 'BB+',
its senior unsecured rating at 'BB+' and its Short-term IDR at
'B'.  The Outlooks for the Long-term IDRs are Stable.  Intergas
Finance B.V.'s senior unsecured issues have also been affirmed at
'BB+'.

The upgrade of KTG's ratings reflects its diminishing structural
subordination through diversification of the group's operations
into gas sales as well as an improvement of its financial
profile, which became stronger than that of its 100%-owned
subsidiary -- ICA in 2010.  Fitch expects KTG's business profile
to be enhanced by the government's plans to transform it into the
national gas operator, enabling the company to purchase gas from
domestic gas producers and sell it on the local market and for
export and thus to capitalize on attractive economics of export
sales.  Gas sales accounted for 61.9% of KTG's H111 revenue
(47.8% in 2010) whereas the share of gas transportation services
dropped to 36% (51.5% in 2010).  Fitch expects this composition
of the company's revenue to prevail in the medium term.

KTG and ICA's ratings incorporate the companies' solid credit
metrics, which were underpinned in 2009-2010 by the fact that OAO
Gazprom ('BBB'/Positive), ICA's main counterparty, honored its
ship-or-pay obligations under the Central Asian gas transit
contract, despite a drop in actual volumes of gas transit.  The
companies benefited from solid cash flow generation, positive
free cash flow and improvement in leverage-related ratios in
2009-2010.

Fitch forecasts some deterioration of ICA/KTG's financial profile
in 2011-2012 due to the terms of the new five-year agreement with
OAO Gazprom for Turkmen gas transit, which retains a ship-or-pay
provision covering 80% of contracted volumes but stipulates lower
volumes of Turkmen gas transit compared to the previous contract.
However, Fitch expects KTG's financial profile to remain stronger
than ICA's given the business diversification of the former and
anticipates that the financials of both companies will remain
commensurate with their rating level.  The agency forecasts KTG's
FFO adjusted leverage to slightly increase to about 1.3x-1.4x in
2011-2012 (1.26x in 2010) but anticipates a more sizable increase
of ICA's FFO adjusted leverage to above 2x in 2011-2012 (1.6x in
2010).

Fitch views KTG/ICA's liquidity position as adequate.  Debt
repayment schedules are well balanced with a repayment peak in
2011 as ICA's Eurobonds for US$178.9 million fall due in November
2011.  Both companies' cash positions at end-2010 and at end-H111
were sufficient to cover their short-term obligations.

Fitch believes that the planned capex programs of both companies
are manageable.  KTG and ICA were able to cover their investment
needs from internally generated cash flows during the past three
years.  Fitch does not expect any material impact on the group's
credit metrics from the execution of two pipeline projects (eg
the West-South gas pipeline and the Kazakhstan-China gas
pipeline), which are being undertaken by the JVs between KTG and
a Chinese counterparty, due to their planned financing
arrangements at the JV level.

In addition, the ratings of KTG, ultimately state-owned, and ICA
reflect ICA's position as the monopoly operator of the gas
pipeline network in Kazakhstan, which remains the only feasible
route for transit of Central Asian gas to Russia and further to
Europe.

Fitch rates KTG and ICA on a standalone basis in accordance with
Fitch's Parent and Subsidiary Rating Linkage methodology.


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


ELM BV: Moody's Cuts Rating on EUR84-Mil. Series 41 Notes to 'B1'
-----------------------------------------------------------------
Moody's Investors Service has downgraded the ratings of one class
of notes issued by ELM BV under series 41. The notes affected by
the rating action are:

Issuer: ELM B.V.

   -- EUR84,000,000 Series 41 Floating Rate Credit Linked Secured
      Notes due 2058, Downgraded to B1 (sf); previously on
      Mar 25, 2011, Ba1 (sf) Placed Under Review for Possible
      Downgrade

Ratings Rationale

This transaction is a synthetic CDO currently referencing a
portfolio of 80 European ABS assets. At present, the portfolio is
composed mainly of Prime and Subprime RMBS (79%) and CMBS (15%).
Series 41 has a thicknesses of 7.4% and a credit enhancements of
0%.

Moody's explains that the rating actions reflect a deterioration
in the credit quality of the underlying portfolio. Since the last
rating action in July 2009, the WARF has deteriorated from 14.2 ,
which implies an average portfolio rating quality of Aa2, to
58.6, an implied average rating of A1. The actions also resolve
the review for downgrade status of this rating. Moody's placed
this rating on review for possible downgrade on 25 March 2011
when ten reference assets, amounting to 13.7% of the current
portfolio, were placed on review for possible downgrade due to
the announcement of new operational risk guidelines. Since March
2011, 17 reference assets amounting to 20.1% of the portfolio
have been downgraded either as a result of the implementation of
the operational risk guideline or performance deterioration in
the pool and currently three assets amounting to 3.3% of the
portfolio remain on review for possible downgrade due to deal
specific operational risk concerns. In particular since March
2011, when this transaction was placed on review for downgrade,
six Portuguese RMBS assets amounting to the 6.8% of the portfolio
have been downgraded between three and five notches due to the
sovereign related action. Currently, the lowest rated asset with
a 0.3% exposure is a Greek RMBS which was downgrade to Ba1 on 13
May.

In the process of determining the final rating, Moody's took into
account the results of a sensitivity analysis. Given that this
transaction is subject to a high level of macroeconomic
uncertainty due to a 27.5% exposure of assets originated in
Greece, Portugal, Ireland, Spain and Italy, Moody's considered a
model run assuming six RMBS assets from these regions downgraded
to below investment grade. The model output for this run results
is an output that was several notches below the base run.

Moody's explained that there exist a number of additional sources
of uncertainty, operating both on a macro level and on a
transaction-specific level, that may influence the rating actions
taken. Among the general macro uncertainties are those
surrounding future housing prices, pace of residential mortgage
foreclosures, loan modification and refinancing, unemployment
rates and interest rates.

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

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

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

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


ELM BV: Moody's Lowers Rating on EUR50-Mil. Notes to 'Ba2'
----------------------------------------------------------
Moody's Investors Service has downgraded the ratings of one class
of notes issued by ELM BV Leveraged Asset-Backed Securities 2007-
1 transaction. The notes affected by the rating action are:

Issuer: ELM B.V.

   -- EUR 50,000,000 Series 2007-1 - LABS due 2029, Downgraded to
      Ba2 (sf); previously on Mar 25, 2011 A3 (sf) Placed Under
      Review for Possible Downgrade

Ratings Rationale

This transaction is a synthetic CDO currently referencing a
portfolio of 46 European ABS assets. At present, the portfolio is
composed mainly of Prime and Subprime RMBS (88%) and CMBS (11%).
Series 2007-1 has a thicknesses of 5% and a credit enhancement of
0%.

Moody's explained that the rating action reflects a deterioration
in the credit quality of the underlying portfolio. Since April
2009, when the A3 rating was confirmed, the WARF has deteriorated
from 4, which implies an average portfolio rating quality of Aa1,
to 32, an implied rating of Aa3. The actions also resolves the
review for downgrade status of this rating. Moody's placed this
rating on review for possible downgrade on the 25 March 2011 when
ten reference assets, amounting to 20% of the current portfolio,
were placed on review for possible downgrade due to the
announcement of new operational risk guidelines. Since March
2011, ten reference assets amounting to 18% of the portfolio have
been downgraded either as a result of the implementation of the
operational risk guideline or performance deterioration in the
pool and three assets amounting to the 5.8% of the portfolio
remain on review for possible downgrade to deal specific
operational risk concerns. In particular, one Irish RMBS asset
was downgraded eight notches to Baa3 due to performance, and one
Greek RMBS was downgraded to Ba1 making it the lowest rated asset
in the current portfolio.

In the process of determining the final rating, Moody's took into
account the results of a sensitivity analysis. Given that this
transaction is subject to a high level of macroeconomic
uncertainty due to a 33.1% exposure of assets originated in
Greece, Portugal, Ireland, Spain and Italy, Moody's considered a
model run assuming one RMBS asset from these regions downgraded
to below investment grade. The model output for this run results
in an output that was several notches below the base run.

Moody's explained that there exist a number of additional sources
of uncertainty, operating both on a macro level and on a
transaction-specific level, that may influence the rating actions
taken. Among the general macro uncertainties are those
surrounding future housing prices, pace of residential mortgage
foreclosures, loan modification and refinancing, unemployment
rates and interest rates.

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

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

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

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.


ELM BV: Moody's Lowers Rating on EUR22.5-Mil. Notes to 'Ba1 (sf)'
-----------------------------------------------------------------
Moody's Investors Service has downgraded the ratings of one class
of Notes issued by ELM BV under series 79 Leveraged Asset-Backed
Securities 2006-4 transaction. The notes affected by the rating
action are:

Issuer: ELM B.V. - Series 79 - Leveraged Asset-Backed Securities
2006-4

   -- EUR22,500,000 Floating Rate Credit Linked Secured Notes due
      2026, Downgraded to Ba1 (sf); previously on Mar 25, 2011,
      A3 (sf) Placed Under Review for Possible Downgrade

Ratings Rationale

This transaction is a synthetic CDO currently referencing a
portfolio of 60 European ABS assets. At present, the portfolio is
composed mainly of Prime and Subprime RMBS (73.5%) and CMBS
(24.7%). Series 79 has a thicknesses of 4.8% and a credit
enhancement of 0%.

Moody's explains that the rating actions reflect a deterioration
in the credit quality of the underlying portfolio. Since April
2009, when the A3 rating was confirmed, the WARF has deteriorated
from 1.8, which implies an average portfolio rating quality of
Aa1, to 42.4, an implied average rating of A1. The actions also
resolve the review for downgrade status of this rating. Moody's
placed this rating on review for possible downgrade on 25 March
2011 when 14 reference assets, amounting to 17.9% of the current
portfolio, were placed on review for possible downgrade due to
the announcement of new operational risk guidelines. Since March
2011, 17 reference assets amounting to 30% of the portfolio have
been downgraded either as a result of the implementation of the
operational risk guideline or performance deterioration in the
pool and four assets amounting to 5.6% of the portfolio remain on
review for possible downgrade due to deal specific operational
risk concerns. In particular, one Irish RMBS asset was downgraded
eight notches to Baa3 due to performance, making it the lowest
rated asset in the current portfolio.

In the process of determining the final rating, Moody's took into
account the results of a sensitivity analysis. Given that this
transaction is subject to a high level of macroeconomic
uncertainty due to a 27.2% exposure of assets originated in
Ireland, Spain and Italy, Moody's considered a model run assuming
the two lowest rated assets from these countries downgraded to
below investment grade. The model output for this run results in
one notch below the base run.

Moody's explained that there exist a number of additional sources
of uncertainty, operating both on a macro level and on a
transaction-specific level, that may influence the rating actions
taken.  Among the general macro uncertainties are those
surrounding future housing prices, pace of residential mortgage
foreclosures, loan modification and refinancing, unemployment
rates and interest rates.

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

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

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

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.


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


SANTANDER EMPRESAS: Fitch Affirms 'Csf' Rating on Class F Notes
---------------------------------------------------------------
Fitch Ratings has upgraded two tranches and affirmed all other
tranches of Fondo de Titulizacion de Activos Santander Empresas 1
and 2.

Both transactions are CDOs of loans to Spanish SME's, self-
employed borrowers and larger companies originated by Banco
Santander ('AA'/Stable/'F1+').

The deals have benefited from portfolio amortization and
structural de-leveraging, resulting in a high level of credit
enhancement given by subordination and available cash reserve.

FTA Santander Empresas 1's affirmation reflects its stable
performance in terms of delinquencies and defaults.  The current
defaults stand at 0.65% of the outstanding balance and they
represent only 10bps when compared to the original balance.
While continued portfolio amortization has resulted in increased
credit enhancement (CE) levels for all the rated tranches, the
top ten obligor concentration of 19% is still high and this is
reflected in Fitch's ratings of the junior notes.

The upgrade on FTA Santander Empresas 2's class A2 and B notes
principally reflects the increased CE and a relatively low level
of defaults and arrears.  Class A2 and B have built up
significant CE of 61.9% and 43.2% respectively, and Fitch expects
the Class B notes to start amortizing next year once the Class A2
note is redeemed.  The level of portfolio defaults have increased
to 2.7% of the current outstanding balance, representing 42bps
when compared to the original balance.  The agency believes
defaults are unlikely to significantly increase in the medium
term considering the relatively low levels of loans in the
delinquency pipeline.  Obligor concentration is high at 35.3% for
the top twenty obligors and this is reflected in the Negative
Outlook of the class E but all investment grade notes have
sufficient CE buffers.

The reserve remains drawn, at 80% of its target amount, although
increased slightly in the last quarter.  The notes also benefit
from a 65bps excess spread, mitigating the basis and interest
rate risk.

The rating actions are as follows:

Fondo de Titulizacion de Activos Santander Empresas 1:

  -- EUR146,461,608 class A2 notes (ISIN ES0382041012): affirmed
     at 'AAAsf'; Outlook Stable

  -- EUR80,600,000 class B notes (ISIN ES0382041020): affirmed at
     'AAAsf'; Outlook Stable;

  -- EUR96,100,000 class C notes (ISIN ES0382041038): affirmed at
     'A+sf'; Outlook Stable;

  -- EUR170,500,000 class D notes (ISIN ES0382041046): affirmed
     at 'CCCsf'; assigned a Recovery Rating of RR3

Fondo de Titulizacion de Activos Santander Empresas 2:

  -- EUR214,478,219 class A2 notes (ISIN ES0338058011): upgraded
     to 'AAAsf' from 'AAsf' ; revised Outlook to Stable from
     Positive;

  -- EUR84,100,000 class B notes (ISIN ES0338058029): upgraded to
     'AAsf' from 'Asf'; Outlook revised to Stable from Positive;

  -- EUR62,300,000 class C notes (ISIN ES0338058037): affirmed at
     'BBBsf'; Outlook Stable;

  -- EUR59,500,000 class D notes (ISIN ES0338058045): affirmed at
     'BBsf'; Outlook Stable;

  -- EUR29,000,000 class E notes (ISIN ES0338058052): affirmed at
     'Bsf'; Outlook Negative;

  -- EUR53,700,000 class F notes (ISIN ES0338058060): affirmed at
     'Csf'; assigned a Recovery Rating of RR4


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

SAAB AUTOMOBILE: Deutsche Bank Agrees to EUR70-Mil. Bridge Loan
---------------------------------------------------------------
Ola Kinnander and Aaron Kirchfeld at Bloomberg News report that
Deutsche Bank AG has agreed to lend Saab Automobile a
EUR70 million (US$95.5 million) bridge loan after securing
collateral from a Chinese carmaker seeking to partner with the
Swedish carmaker.

According to Bloomberg, two people familiar with the matter said
that Deutsche Bank is prepared to lend Saab the money after
Zhejiang Youngman Lotus Automobile offered collateral to back the
loan.  They added that the deal could still fall apart, Bloomberg
notes.

Deutsche Bank, while offering to provide the financing, is not an
adviser to Saab, Bloomberg says.

Bloomberg relates that a Swedish appeals court on Monday said it
will hear Saab's request to get protection against creditors,
which if granted would prevent bankruptcy and ensure state
coverage of wages.  The original request for a reorganization of
the company was rejected by a lower court earlier this month,
Bloomberg recounts.

As reported by the Troubled Company Reporter-Europe on Sept. 16,
2011, Reuters said that Saab wants creditor protection to give it
time until a promised investment of EUR245 million from car firms
Pangda Automobile Trade Co. Ltd. and Zhejiang Youngman Lotus
Automobile gets the nod from Chinese authorities, Reuters noted.

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
===========================


AUSSIE BASILDON: Closes Outback Steakhouse in Basildon
------------------------------------------------------
Faye Hackwell at Echo reports that Aussie Basildon Limited,
trading as Outback Steakhouse, has gone into liquidation.  The
restaurant in Miles Gray Road, Basildon, has closed due to
financial difficulties.

Echo relates that notices have been placed on the steakhouse's
restaurants and doors.

"William John Turner and Geoffrey Kinlan, of BDO LLP, were
appointed joint liquidators of Aussie Basildon Limited, trading
as Outback Steakhouse, on September 13," the notices read,
according to Echo.  "The unit has now closed."

Staff were handed their redundancy notices on Tuesday, the report
adds.

Echo states that it is believed the company's Outback Steakhouse,
in The Brewery complex, in Romford, has also closed its doors.

Outback Steakhouse, which served meat, seafood and pasta dishes,
opened in June 2003 and could cater for up to 200 guests at a
time.


CUBE HOTELS: Skylane Hotel Buys Hotel Unit in Evesham
-----------------------------------------------------
Janet Harmer at Caterersearch.com reports that 36-bedroom Best
Western Salford Hall hotel in Evesham, Worcestershire, has been
sold to Sussex-based hotel, wedding and conference group Skylane
Hotel, off a guide price of GBP2.25 million.

Best Western was put on the market after its former owner, Cube
Hotels, went into administration in February, according to
Caterersearch.com.

Philip Gibson, partner at property agent Edward Symons, handled
the sale, the report notes.


GALA GROUP: Moody's Assigns 'B2' Rating to GBP350-Mil. Notes
------------------------------------------------------------
Moody's Investors Service has assigned a definitive B2 rating to
the GBP350 million senior secured notes due 2018 issued by Gala
Group Finance Limited and a definitive Caa2 rating to the
GBP275 million senior notes due 2019 issued by Gala Electric
Casinos Limited, following receipt of final documentation.

Ratings Rationale

"Initially Gala expected to raise GBP250 million in senior
secured notes and GBP400 million in senior notes as well as
GBP800 million under new senior secured facilities to repay
existing senior facilities", says Douglas Crawford, Moody's lead
analyst for Gala. "However, the company chose to raise the same
amount of total debt but increased the secured portion by GBP125
million."

Despite the increased percentage of secured debt in the capital
structure, Moody's definitive ratings on these debt obligations
are in line with the provisional ratings assigned on May 16,
2011. Moody's rating rationale was set out in a press release
issued on that date.

The final terms of the bonds are in line with the drafts reviewed
for the provisional (P)B2 and (P)Caa2 instrument ratings
assignment.

Gala Electric Casinos Limited and Gala Group Finance Limited's
ratings were assigned by evaluating factors that Moody's
considers relevant to the credit profile of the issuer, such as
the company's (i) business risk and competitive position compared
with others within the industry; (ii) capital structure and
financial risk; (iii) projected performance over the near to
intermediate term; and (iv) management's track record and
tolerance for risk. Moody's compared these attributes against
other issuers both within and outside Gala Electric Casinos
Limited and Gala Group Finance Limited's core industry and
believes Gala Electric Casinos Limited and Gala Group Finance
Limited's ratings are comparable to those of other issuers with
similar credit risk. Other methodologies used include Loss Given
Default for Speculative Grade Issuers in the US, Canada, and EMEA
published June 2009.

Gala Electric Casinos Limited has its registered office in
London, England. Through its subsidiaries it owns and operates a
diversified gaming company (sales GBP1.2 billion for the year
ending September 2010) with operations mainly in the UK.
Following the closing of a restructuring in June 2010, funds
managed by the principle investors (Apollo, Cerberus, Park Square
and York Capital) indirectly hold a majority in Gala shares.


HERDMAN'S MILL: Owes Creditors More Than GBP10 Million
------------------------------------------------------
BBC News reports that the company that owned the historic
Herdman's Mill in County Tyrone owed its creditors more than
GBP10 million when it went into receivership earlier this year.

Ulster Bank, the largest creditor, is owed more than
GBP6 million, according to BBC News.  The report relates that
Invest NI, a secured creditor, is owed GBP2.5 million.

BBC News notes that receivers were appointed in June when the
trustees of Herdmans Pension Scheme issued a winding-up petition
against a subsidiary company due to its inability to meet pension
contributions.  BBC News notes that unsecured creditors include
Monument Property Services, a company associated with Titanic
Quarter developer Pat Doherty.  It is owed GBP1.2 million, a sum
unlikely to be repaid, the report relates.

BBC News discloses that the receivers report notes that the book
value of the mill site is GBP6 million but that a current market
value is still to be confirmed.

BBC News recalls that in July, some of the mill buildings were
badly damaged in a major fire resulting in a knock-on effect on a
hydroelectric generation business that operates from the site.
The report relates that the hydroelectric business, which was
owned by the Herdman family and sold power to Airtricity, is also
in receivership.

The unsecured creditors of the hydroelectric business are owed
more than GBP5 million, and the bulk of the money is due to the
government's Pension Protection Fund, the report notes.

Accountancy firms ASM and PricewaterhouseCoopers are owed
GBP56,000 and GBP32,000 respectively while a Belfast solicitors
firm is owed GBP11,000, BBC News adds.


LEHMAN BROTHERS: Has Agreement in Principle With Lehman Europe
--------------------------------------------------------------
Lehman Brothers Holdings Inc. (LBHI) and Lehman Brothers
International Europe (LBIE), the largest of LBHI's foreign
affiliates, disclosed that they have reached an agreement in
principle resolving the claims among the two entities and certain
of their affiliates including Lehman Brothers Special Financing
(LBSF).

The complex agreement incorporating this resolution is subject to
documentation and various approvals, including Bankruptcy Court
approval as part of LBHI's plan confirmation.  There is no
assurance at this time that an agreement among the parties will
be consummated.

No details about the agreement in principle are available at this
time.

                    About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was
the fourth largest investment bank in the United States.  For
more than 150 years, Lehman Brothers has been a leader in the
global financial markets by serving the financial needs of
corporations, governmental units, institutional clients and
individuals worldwide.

Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555).  Lehman's bankruptcy
petition disclosed US$639 billion in assets and US$613 billion in
debts, effectively making the firm's bankruptcy filing the
largest in U.S. history.  Several other affiliates followed
thereafter.

Additional units, Merit LLC, LB Somerset LLC and LB Preferred
Somerset LLC, sought for bankruptcy protection in December 2009
or more than a year after LBHI and its other affiliates filed
their bankruptcy cases.

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at
Weil, Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.

On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.
District Court for the Southern District of New York, entered an
order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)).  James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI.

The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion.  Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees.  Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.

                International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers
International (Europe) on Sept. 15, 2008.  The joint
administrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan
Inc. filed for bankruptcy in the Tokyo District Court on
Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4
trillion (US$33 billion) in liabilities in its petition.

Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other
insolvency and bankruptcy proceedings undertaken by its
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)


LLANGOLLEN HOTELS: Some Creditors Won't Get Money Back
------------------------------------------------------
BBC News reports that businesswoman Stephanie Booth said she
regrets people lost their jobs when her hotel chain collapsed in
July.

In her first broadcast interview since Llangollen Hotels went
into administration, Ms. Booth told BBC News Wales some creditors
will not get their money.  The report relates Ms. Booth blamed a
GBP900,000 tax bill and losing out on a GBP1 million loan.

Ms. Booth said she will never borrow "a single penny from any
bank, ever, ever again," BBC News notes.

As reported in the Troubled Company Reporter-Europe on July 27,
2011, Business Sale said four hotels in Wales have been put on
the market following the administration of Llangollen Hotels Ltd
and its parent company, Global Investments Group.  The business
had been issued with a winding-up order from Her Majesty Revenue
& Customs (HMRC), which led to the immediate closure of some of
the hotels in the portfolio, according to Business Sale.  The
report, citing The Leader, relates that property agent Colliers
International has been called in to manage the sale of the
remaining hotels by administrators KPMG.


PEDLEY FURNITURE: MJM Marine Mulls Firm Acquisition
---------------------------------------------------
BBC News reports that Newry-based joinery and fit-out firm MJM
Marine is on the verge of buying Essex-based Pedley Furniture
International.

Pedley Furniture went into administration earlier this year,
according to BBC News.

BBC News notes that MJM Marine has been operating Pedley
Furniture's factory under license and is now in advanced
discussions to buy the firm.

Last week, the report discloses, MJM Marine had more than doubled
its turnover in the last year, up from GBP12 million in 2009 to
GBP25 million in 2010.

BBC News notes that MJM Marine's London-based subsidiary, which
targets high-end hotels and restaurants, delivered around
GB11 million of orders during 2010.  The report relates that
buying Pedleys Furniture would give MJM Marine an increased
presence in the hotel sector.

MJM specializes in fitting-out cruise ships.


RANGERS FOOTBALL: Owner Says Club Not Broke, Judge Freeze Assets
----------------------------------------------------------------
BBC News reports that Rangers Football Club chairman Craig Whyte
has denied that the club is on the brink of insolvency, declaring
that it is "business as usual."

Mr. Whyte's statement follows the news that Rangers' former chief
executive Martin Bain has had almost half a million pounds of the
club's assets frozen, according to BBC News.

This development comes after a judge agreed there was "real and
substantial risk of insolvency," the report relates.

According to BBC News, Mr. Whyte said the club had a good chance
of succeeding in a tax tribunal.

Mr. Bain is pursuing a GBP1.3 million damages claim against his
former employer at the Court of Session in Edinburgh, BBC News
states.

Judge Lord Hodge granted a warrant which would ring-fence
GBP480,000 of the Ibrox club's assets, the report notes.

BBC News relates that Judge Lord Hodge said there was risk of
insolvency if the HM Revenue & Customs tax case goes against
Rangers.

The club faces two tax claims and the larger claim could leave
them with a bill of GBP49 million -- GBP35 million in tax, plus
GBP14 million in interest and penalties, the report discloses.

Mr. Bain, according to BBC News, raised his damages claim
alleging breach of contract following the takeover at Rangers FC
by venture capitalist Craig Whyte from former owner Sir David
Murray.

"The board would like to make it absolutely clear that, at Ibrox,
it is business as usual.  The club is trading normally and has a
strong balance sheet," BBC News quotes Mr. Whyte as saying in his
statement, posted on the Rangers Web site.

"The board finds it reprehensible that the law courts have been
used in recent days to suggest the club is on the brink of
insolvency. It is not," Mr. Whyte added.

Rangers Football Club PLC -- http://www.rangers.premiumtv.co.uk/
-- is a United Kingdom-based company engaged in the operation of
a professional football club.  The Company has launched its own
Internet television station, RANGERSTV.tv.  The station combines
the use of Internet television programming alongside traditional
Web-based services.  Services offered include the streaming of
home matches and on-demand streaming of domestic and European
games, which include dedicated pre-match, half-time and post-
match commentary.  The Company will produce dedicated news
magazine and feature programs, while the fans can also access a
library of classic European, Old Firm and Scottish Premier League
(SPL) action.  Its own dedicated television studio at Ibrox
provides onsite production, editing and encoding facilities to
produce content for distribution on all media platforms.


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


* UBS Trader Charged in London With Fraud
-----------------------------------------
Chapter11Cases.com notes that UBS trader Kweku Adoboli didn't
enter a plea in a London court as prosecutors began to outline
alleged wrongdoing that stretches back as far as October 2008.
Adoboli faces charges of fraud and false accounting.

Bloomberg's Lindsay Fortado and Ben Moshinsky reported Friday
that the 31-year-old UBS trader was taken into custody at a
magistrates court in London Thursday until Sept. 22, when he can
make an application for bail.  Mr. Adoboli's false accounting
offenses started in October 2008, according to the court charge
sheet.  He is also charged with fraud dating back to January
2009.

According to the Bloomberg report, Adoboli "dishonestly abused"
his position as a senior trader, which required him "to
safeguard, or not to act against, the financial interests of
UBS," according to court documents.



                            *********

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 * * *