TCREUR_Public/111020.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Thursday, October 20, 2011, Vol. 12, No. 208

                            Headlines



C Z E C H   R E P U B L I C

BESTSPORT: Creditor Seeks Extension of Rescue Plan Deadline
ECM REAL ESTATE: High Court Cancels Bankruptcy Decision


G E R M A N Y

BAGIR GERMANY: Cash Flow Problems Prompt Bankruptcy Filing
PHOENIX PHARMA: Fitch Assigns 'BB' LT Issuer Default Rating


G R E E C E

* GREECE: Chance of Debt Default High, Milken Economists Say
* GREECE: Austria Wants Bondholders to Contribute More to Bailout


I R E L A N D

IRISH LIFE: Three Bidders Left for Irish Life Assurance
MR BINMAN: Bank of Scotland Opposes Court Protection


I T A L Y

THINK3 INC: AZA Wins Bankruptcy Rulings for Versata FZ


K A Z A K H S T A N

RG BRANDS: Moody's Changes Outlook on 'B3' CFR to Stable


L U X E M B O U R G

HIGH TIDE: Fitch Downgrades Rating on Class C Notes to 'Csf'


N E T H E R L A N D S

HIGHLANDER EURO: S&P Raises Rating on Class E Notes to 'CCC+'


N O R W A Y

SEVAN MARINE: To Sell Three Vessels & Shares to Teekay for $693MM


R O M A N I A

* ROMANIA: More Reorganizations Expected in 2012, CITR Says


S P A I N

BANCO CAM: Moody's Cuts Bank Financial Strength Rating to 'E+'
BBVA-6 FYPYME: Fitch Downgrades Rating on Class C Notes to 'Csf'
EMPRERAS BANESTO: Moody's Assigns (P)Ca Rating to Serie C Note


S W I T Z E R L A N D

* SWITZERLAND: Insolvencies Increase as Franc Hits Tourism


T U R K E Y

EREGLI DEMIR: S&P Raises Long-Term Corporate Credit Rating to 'B'


U N I T E D   K I N G D O M

CERAMICA: Placed Into Creditors' Voluntary Liquidation
DOUGLAS STREET: Continues to Operate Amid Liquidation Proceedings
EMI GROUP: Turbulent Financing Markets May Derail Sale
ICON ENERGY: Sister Company Continues to Trade Amid Liquidation
PLYMOUTH ARGYLE: Council Agrees to Buy Club's Ground

* UK: Proposes Tough Regulations for Residential Care Homes
* UK: Seeing North-South Gap in Financial Distress Levels


X X X X X X X X

* Liquidity of EMEA Corporates Expected to Decline, Moody's Says
* Upcoming Meetings, Conferences and Seminars




                            *********


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


BESTSPORT: Creditor Seeks Extension of Rescue Plan Deadline
-----------------------------------------------------------
CTK, citing the insolvency register, reports that PPF Healthcare,
a creditor of Bestsport, which runs Prague's O2 arena, has asked
an insolvency court to extend the deadline for submitting a
reorganization plan by another 120 days from Oct. 19 when the
deadline expires.

The future of the O2 arena will depend on the reorganization plan
for Bestsport, which went bankrupt in May, CTK notes.

According to CTK, a court-appointed expert has not yet produced a
report, which is the reason behind the requirement to extend the
deadline.  The report thus could not have been submitted to the
court and approved by the creditor committee, CTK states.


ECM REAL ESTATE: High Court Cancels Bankruptcy Decision
-------------------------------------------------------
CTK, citing the insolvency register, reports that the High Court
in Prague has cancelled the decision on the bankruptcy of ECM Real
Estate Investments AG and returned the case to a first-instance
court.

According to CTK, the High Court complied with the appeal of part
of creditors whose claims were not approved by ECM's insolvency
administrator Ivo Hala.  The court took into account an objection
raised by part of creditors that the City Court in Prague did not
follow the correct procedure when the creditor meeting was making
its decision about the bankruptcy in July this year, CTK notes.

Creditors registered claims on ECM worth a nominal CZK9.5 billion
in total, but Mr. Hala acknowledged the validity of only around
CZK2 billion worth of the claims, CTK states.

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


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G E R M A N Y
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BAGIR GERMANY: Cash Flow Problems Prompt Bankruptcy Filing
----------------------------------------------------------
Inbal Omer at Globes reports that BGI Investments (1961) Ltd. on
Tuesday notified the TASE that the German unit of its suits
manufacturer subsidiary, Bagir, has filed for bankruptcy.

Last week, a German court approved the opening of insolvency
proceedings against Bagir Germany Holding GmbH, as the company's
cash flow is insufficient to meet its debts to creditors, Globes
relates.

Bagir Germany had US$20.1 million in sales in the first half of
2011, almost a third of Bagir's total revenue of US$68.5 million,
Globes notes.  Bagir Germany posted a loss of $1.1 million in the
first half, Globes discloses.

According to Globes, Bagir said that it reviewing the consequences
of Bagir Germany's insolvency on the company, and that BGI will
report a material loss and cash-flow reduction and in its
financial report for the third and fourth quarters of the year.


PHOENIX PHARMA: Fitch Assigns 'BB' LT Issuer Default Rating
-----------------------------------------------------------
Fitch Ratings has assigned Phoenix Pharmahandel GmbH & Co. KGA
('Phoenix') a Long-term Issuer Default Rating (IDR) of 'BB' with
Stable Outlook.  Fitch has also assigned Phoenix's EUR506 million
guaranteed senior unsecured bond a rating of 'B+''.

The ratings are supported by Phoenix's market leading positions in
the European pharmaceuticals wholesale markets, as well as the
company's solid underlying fundamentals.  Positive rating factors
also include Phoenix's wide geographical coverage -- which leaves
it relatively resilient to changes in healthcare systems in single
countries, its integrated business model which enhances the
Phoenix's profitability, and its solid and relatively predictable
cash flow generation, with relatively low capex requirements.
Negative ratings factors include Phoenix's relatively low EBITDA
margin when compared to other industries, competitive pressure
from pharmacy acquisitions if European pharmacy markets continue
liberalizing as well as some margin pressure as a result of cost
containment policies from European governments and the still
relatively high leverage for the rating level.

Fitch expects debt protection measures to improve by FYE2013/14
with the lease and ABS/Factoring adjusted ND/EBITDAR (x) to reach
about 4x and EBITDAR net fixed charge cover to amount to above
3.5x.  The company has a financial policy to reduce net debt
further to reach an unadjusted net debt / EBITDA ratio of 3x at
FYE2013/14. No large acquisitions or meaningful dividends are
planned by the company over the next three years.

Phoenix is the market leader in the European pharmaceuticals
wholesale markets with 10 number one market positions and eight
number two or three market positions in the 23 countries it
operates in.  Such strong market positioning helps Phoenix to
benefit from economies of scale, while its pan-European coverage
helps it to be a partner of choice for big pharmaceutical
companies, which tend to reduce their number of wholesalers and
prefer those with operations in many European countries.

The group's cash flow generation is helped by the regulated
markets it operates in.  70% to 80% of the group's wholesale
turnover is generated with prescription drugs, the prices of which
are regulated, thus ensuring a relatively predictable sales and
EBITDA development.  Demand for medicines is also non-
discretionary- with the growth in pharmaceuticals wholesale and
retail driven by the growing European medicines market.  The
European pharmaceuticals market is expected by IMS Health to grow
by 2% to 5% in Europe from 2011 to 2015 -- driven mainly by the
ageing of population, chronic diseases and technological advances.

With an EBITDAR margin of 3.1%, which is enhanced by is presence
in retail pharmacies, Phoenix has like many of its industry peers
-- a relatively low profitability compared to other industries.
The low level of profitability is however also linked to a
relatively low risk in its operating model and connected with some
stability and predictability in profit margin.

Phoenix's cash flow generation is solid: Over the past four years
the company has been showing consistently its ability to generate
FFO of about EUR300 million annually, or an FFO margin of 1.4% to
1.6% of sales.  FFO/Sales (%) is expected to increase further over
time, due to lower interest costs, some sales growth and lower tax
payments as a result of the group's program to optimize the tax
structure.

Phoenix's intention is to continue to acquire pharmacies and
pharmacy chains in the current market to profit from higher
margins in the retail segment. Size helps the company to leverage
costs but also helps it to be a partner of choice for big pharma.
As Phoenix's competitors are also acquiring pharmacies there might
be the risk that Phoenix loses customers once pharmacy
liberalization in a country starts and Phoenix's wholesale
competitors acquire pharmacies in a larger scale.  Further
liberalization of the pharmacy markets in Germany and other key
European markets is however not likely according to the company
and recent legislation.  The assigned ratings factor-in the
company's intention to pursue profitable and financially sound
add-on acquisitions (mainly pharmacies) within a pre-defined
budget of EUR60 million-EUR70 million.  Government's cost
containment is expected to have a negative impact on sales and
profitability over time.  The effect is expected by Fitch to be
somewhat mitigated by shifts in product mixes towards own label
products and efficiency enhancement programs.


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


* GREECE: Chance of Debt Default High, Milken Economists Say
------------------------------------------------------------
In a research paper released titled "Greece's Unpleasant
Arithmetic: Containing the Threat to the Global Economy," Milken
Institute economists Jim Barth, Cindy Li, and Penny
Prabhavivadhana explore how a country that accounts for less than
one fifth of one percent of the world population, and less than
half of one percent of global GDP, has the potential to trigger a
global recession.  Despite its tiny size, Greece is edging ever
closer to severely disrupting global financial and economic
markets, unless decisive corrective action is taken.

Among the paper's findings:

        --  Greek debt is comparatively small, but because so
            much is held by a few major banks in Europe, a
            default would disproportionately hit these
            institutions, and could disrupt global economic
            growth, Greece has the largest debt-to-GDP ratio
            among the so-called periphery countries of the
            European Union, at 143 percent.  Greece's projected
            deficit for the year is 8.5 percent of GDP, well
            above its previous target and reaching levels at
            which it may be impossible to avoid default on its
            debt.

        --  The high and rising debt-to-GDP ratio puts a heavy
            economic and political burden on the Greek
            government.  The fiscal austerity measures demanded
            by such a level of debt service may be so severe that
            they impede economic growth -- so that whatever loans
            Greece receives may simply postpone rather than avoid
            a default.

        --  Based on two separate measures of investor
            expectations of Greek default, the probability of
            default by Greece on its sovereign debt is between 89
            and 97 percent.

        --  Total exposure of non-Greek European banks to Greek
            debt is $43 billion, and almost two-thirds of that
            exposure is at French and German banks.

        --  Six banks have high levels of exposure to the
            sovereign debt of the GIIPS European periphery
            economies (Greece, Ireland, Italy, Portugal
            and Spain): Dexia, Commerzbank, BNP Paribas, Societe
            Generale, Credit Agricole, and Deutsche Bank.  Dexia
            was recently bailed out by the Belgian and French
            governments.

With limited means and appetite by other European nations to bail
out Greece (and possibly the other GIIPS countries as well), an
alternative for Greece is to default on its debt through a
substantial write-down of its face value, the Milken Institute
researchers explain.  This would lighten the political, economic
and financial burden on the Greek government. Such a step,
however, would adversely affect the financial condition of the
banks holding that debt, which could require them to raise
additional capital.  If banks are unable to do so on their own,
governments may find it necessary to recapitalize the banks.  But
this, in turn, could result in the downgrade of sovereign debt of
countries such as France, pushing up its borrowing cost at a
difficult time.  Commenting on the policy implications of the
report, Ross DeVol, chief research officer of the Milken
Institute, says, "European policy makers must end the practice
of doing too little, too late -- enough so that financial markets
don't crater on Mondays after each weekend's emergency meetings.
Given the potential contagion risk for the world economy, it would
be preferable to err on the side of doing more than what seems
necessary."

DeVol concludes: "Greece should not be allowed to be the trigger
for a global recession -- and it can be avoided with the proper
policy actions."

"Greece's Unpleasant Arithmetic: Containing the Threat to the
Global Economy" is available at http://www.milkeninstitute.org/

                        About the Institute

The Milken Institute -- http://www.milkeninstitute.org/-- is a
nonprofit, independent economic think tank whose mission is to
improve the lives and economic conditions of diverse populations
around the world by helping business and public policy leaders
identify and implement innovative ideas for creating broad-based
prosperity.  It is based in Santa Monica, CA. which the Plan is
premised, and the transactions contemplated therein, are fair,
reasonable, and in the best interests of WMI.  However, the
Opinion and related order denied confirmation, but suggested
certain modifications to the Company's Sixth Amended Joint Plan of
Affiliated Debtors that, if made, would facilitate confirmation.
WaMu filed a Modified Sixth Amended Joint Plan and a related
Supplemental Disclosure Statement, which it believes would address
the Bankruptcy Court's concerns.

On Sept. 13, 2011, Judge Walrath denied confirmation of WaMu's
Modified Sixth Amended Plan and granted equity committee standing
to prosecute claims for equitable disallowance but stayed the
ruling pending mediation.

Judge Walrath scheduled a status hearing for Oct. 7, 2011, at
11:30 a.m. to consider the issues to be referred to a mediator.

WaMu said it would seek confirmation of a revised plan "as soon as
practicable."

The Plan proposes to pay more than US$7 billion to creditors and
incorporates a global settlement agreement resolving issues among
the Debtors, JPMorgan Chase, the Federal Deposit Insurance Corp.
in its corporate capacity and as receiver for WaMu Bank, certain
large creditors, certain WMB senior noteholders, and the
creditors' committee. The Settlement Noteholders are Appaloosa
Management, L.P., Aurelius Capital Management LP, Centerbridge
Partners, LP, and Owl Creek Asset Management, L.P.


* GREECE: Austria Wants Bondholders to Contribute More to Bailout
-----------------------------------------------------------------
Boris Groendahl at Bloomberg News reports that Austrian Finance
Minister Maria Fekter said the country wants bondholders to
contribute more to a second Greek bailout than the 21% writedown
agreed to in July, as long as the deal remains voluntary.

The July agreement "was a program in which the banking sector
could pick and choose at the expense of the governments,"
Bloomberg quotes Ms. Fekter as saying.  "To tie up a new package
that is demanding a bit more from the private sector is the
Austrian position."

Ms. Fekter added that creditors' participation needs to remain
voluntary, Bloomberg notes.

"A forced restructuring means default, in which credit default
swaps are triggered, and that means billions around the world that
have to be financed," Ms. Fekter, as cited by Bloomberg, said.
"Everybody wants to avoid that."

Bloomberg relates that Ms. Fekter said she was in favor of making
the EUR440 billion (US$605 billion) European Financial Stability
Facility more "flexible" by allowing it to "insure" government
bonds.  According to Bloomberg, she said that such a model could
"create large volumes" without tapping further taxpayer funds,
adding that the technical details for that are still being worked
out.

Meanwhile, Reuters reports European Central Bank Governing Council
member Ewald Nowotny told a provincial news web site that Greece
is not about to go bankrupt or have to leave the European Union
because of its financial troubles.  According to Reuters, Mr.
Nowotny, as quoted by Web site Woche, said in comments published
on Wednesday "I don't think Greece will go bankrupt or that the
country will leave the European Union.  EU treaties would need to
be changed for this."


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I R E L A N D
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IRISH LIFE: Three Bidders Left for Irish Life Assurance
-------------------------------------------------------
Laura Noonan at Irish Independent reports that Tennessee-based
life insurance giant Unum has bowed out of the race to buy Irish
Life Assurance, leaving just three bidders in the field.

News of Unum's withdrawal emerged on Tuesday night as Irish Life &
Permanent's advisers Deutsche Bank received second-round bids for
the plc's life insurance arm, Irish Independent discloses.

Unum was on a shortlist of five bidders after first-round offers,
along with Canada Life Ireland, CVC, Delphi Financial and a joint
bid by JC Flowers and Apollo Global Management, Irish Independent
says.

Delphi Financial subsequently withdrew; the Irish Independent
understands Unum also failed to lodge a second-round bid by
Tuesday's deadline, Irish Independent relates.

According to Irish Independent, a spokesman for the Department of
Finance declined to comment, citing the confidentiality of the bid
process, as did a spokesman for Irish Life & Permanent.

Irish Life Assurance is being sold off to contribute to a EUR3.8
billion capital demand levied on its parent company by last
March's banking stress tests, Irish Independent notes.

The Government has already pumped EUR2.7 billion into the group,
giving it a 99.8% shareholding, Irish Independent discloses.  If
the sale of Irish Life and other actions don't raise the remaining
EUR1.1 billion, more State cash will have to go in, Irish
Independent states.

The on-the-market life insurance business has an embedded value of
EUR1.6 billion, but bids are expected to come in well below this
level, with some likely to come in below the EUR1 billion mark,
according to Irish Independent.

Irish Independent notes that the Government had hoped to complete
the sale by the end of the year, but sources now suggest that
early next year looks "more likely".

Headquartered in Dublin, Irish Life & Permanent plc --
http://www.irishlifepermanent.ie/-- is a provider of personal
financial services to the Irish market.  Its business segments
include banking, which provides retail banking services;
insurance and investment, which includes individual and group
life assurance and investment contracts, pensions and annuity
business written in Irish Life Assurance plc and Irish Life
International, and the investment management business written in
Irish Life Investment Managers Limited; general insurance, which
includes property and casualty insurance carried out through its
associate, Allianz-Irish Life Holdings plc, and other, which
includes a number of small business units.


MR BINMAN: Bank of Scotland Opposes Court Protection
----------------------------------------------------
Mary Carolan at The Irish Times reports that the High Court has
been told that Bank of Scotland is opposing court protection for
Mr. Binman and related companies.

Ms. Justice Mary Finlay Geoghegan will hear the company's petition
to appoint an examiner, which would mean court protection would
continue while the examiner devises survival proposals which will
need to be approved by shareholders, a majority of creditors and
the court, The Irish Times says.

An interim examiner, William O'Riordan of PricewaterhouseCoopers,
was appointed last week, The Irish Times recounts.  When the
matter came before the court on Tuesday, Paul Sreenan SC, for Bank
of Scotland, the group's biggest creditor, said it had filed an
affidavit opposing examinership, The Irish Times relates.

According to The Irish Times, Alison Keirse, for the Revenue
Commissioners, which is owed EUR1.4 million, said her client was
critical of the company's management practices but was "guardedly
neutral" in relation to the core test for examinership -- if a
company had a reasonable prospect of survival.

The judge was also told that Greenstar, which is owed EUR2.5
million, and Limerick County Council are supporting the petition,
The Irish Times notes.

Lyndon MacCann SC, for Mr. Binman, said he needed time to reply to
affidavits and the judge adjourned the matter for hearing today,
according to The Irish Times.

The group, as cited by The Irish Times, said that on October 7,
Bank of Scotland said it would not provide further credit
facilities with the effect it could no longer trade as a going
concern.  It claims it has a viable business and that it is in the
best interests of creditors that an examiner be appointed, The
Irish Times states.

According to Irish Independent's Laura Noonan, officials from the
Revenue claimed the company racked up an "unconscionable" EUR1.8
million bill after using tax money to "shore up" its cash flow.

The claims are made in affidavits lodged with the courts in light
of Mr. Binman's petition for examinership protection that would
give the company 100 days to get new investment and restructure
its debts, Irish Independent discloses.

In affidavits, the officials detailed how Mr. Binman built up a
"simply unconscionable" EUR1.8 million debt to the taxman after
reducing monthly direct debit payments and failing to stick to
agreed repayment schedules, Irish Independent notes.

Mr. Binman is an Ireland-based waste disposal group.  The company
employs 331 people directly and approximately 280 indirectly.  It
also operates the local authorities' waste-gathering services in
Limerick city.


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I T A L Y
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THINK3 INC: AZA Wins Bankruptcy Rulings for Versata FZ
------------------------------------------------------
The Houston complex commercial litigation law firm of Ahmad,
Zavitsanos, Anaipakos, Alavi & Mensing P.C. recently won important
rulings for firm client Versata FZ, LLC, that protect the
company's intellectual property rights in computer-aided design
software.

AZA lawyers Demetrios Anaipakos and Kinan Romman won a two-day
September trial in the U.S. Bankruptcy Court for the Western
District of Texas on behalf of Versata, a Dubai-based company that
owns the intellectual property of Austin-based Think3.  In the
ruling, U.S. Bankruptcy Judge H. Christopher Mott of Austin found
that Versata is the sole owner of the contested Think3 software.
The judge also ruled that an Italian bankruptcy proceeding based
on a Think3 branch located in that country is not recognized as
the proper forum for disposition of Think3 debt.

"We are very happy with the rulings.  An Italian bankruptcy
trustee had asked the U.S. court to declare Italy was the proper
place for these questions, and Versata is very pleased that effort
failed," says Mr. Anaipakos, a founding member of Ahmad,
Zavitsanos, Anaipakos, Alavi & Mensing P.C., also known as AZA.

In addition to not recognizing the Italian proceedings, the Austin
court ruled that it maintains jurisdiction over the Italian
trustee who asked for the trial.  The court also ruled that
Versata is the exclusive owner worldwide (excluding only China) of
all right, title and interest in and to all of the intellectual
property of Think3.  China was excluded by the court because it
was also excluded in the Versata-Think3 purchase contract in 2010.

The case that included the property rights ruling is Case No. 11-
11252, and the Italian jurisdiction ruling is in Case No. 11-
11925.  Both cases are in the Western District of Texas.

Ahmad, Zavitsanos, Anaipakos, Alavi & Mensing P.C., or AZA, is a
Houston-based law firm that is home to true courtroom lawyers with
a formidable track record in complex commercial litigation,
including energy, intellectual property, securities fraud,
construction, and business dispute cases.  AZA is one of only 32
firms in the U.S. to be recognized as "awesome opponents" in a
nationwide poll of corporate general counsel who were asked to
name the law firms they hope their companies never have to face in
court.  In fact, AZA has been hired on many occasions by the same
companies the firm has prevailed against at trial.

                            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 Duane Morris LLP.

The Debtor disclosed US$0 in assets and US$45,447,716 in
liabilities as of the Chapter 11 filing.

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 Fulbright
& Jaworski L.L.P., and Morrison & Foerster LLP.


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


RG BRANDS: Moody's Changes Outlook on 'B3' CFR to Stable
--------------------------------------------------------
Moody's Investors Service has changed to stable from negative the
outlook on the B3 corporate family rating (CFR) and the B3
probability of default rating (PDR) of JSC RG Brands.
Concurrently, Moody's has affirmed the CFR and the PDR.

Ratings Rationale

"Our decision to change RG Brands' outlook to stable was prompted
by our expectation that the company's operating performance will
continue to improve in line with recent trends," says Sergei
Grishunin, an Assistant Vice President -- Analyst and Moody's lead
analyst for RG Brands. Moody's expects this improvement to result
in (i) a satisfactory liquidity position in 2011 and the first
half of 2012; (ii) a reduction in leverage (measured by adjusted
debt/EBITDA) toward the 3.5x range; and (iii) maintenance of EBITA
margin and funds from operations/debt above 10% over the next 12-
18 months.

Moody's forecasts for RG Brands assume a compound annual revenue
growth rate (CAGR) of around 20% in 2011-12 driven by (i) an
increase in the level of disposable income among the population of
central Asia, as a result of which more is being spent on food and
beverages; (ii) an increase in RG Brands' market shares in the
juice, UHT milk, water and packaged tea segments due to
improvement of customer sentiment/loyalty; and (iii) the company's
penetration of markets of neighboring countries.

Moody's also expects RG Brands' EBITA margin to grow beyond 10%
due to the company's launch of high value-added packaging, flavors
and products and an increase in capacity utilization. Indeed,
Moody's anticipates the aforementioned improvements in RG Brands'
credit metrics to result from this growth combined with the
following: (i) a stabilization of the Kazakhstani tenge (KZT), in
which RG Brands reports its earnings; (ii) the company's low
capital expenditure (capex) requirements; and (iii) a
stabilization of the level of the company's adjusted debt of
around KZT20 billion in 2011-12. Moody's expects RG Brands to be
in compliance with its debt covenants in financial year ended
2011.

In Moody's view, RG Brands' liquidity position has improved since
2010. This improvement was underpinned by (i) stronger cash flow
generation; and (ii) an improving debt structure as a result of
the company's access to recently arranged revolving debt
facilities in form of letters of credit, which now represent
around 20% of its total outstanding debt. RG Brands has cash
reserves and inflows of around KZT668 millions in the next 12
months starting from the third quarter of 2011. Moody's expects
these to be sufficient to cover the company's debt maturities,
working capital requirements and capex spending in the same
period. RG Brands' liquidity position may be further enhanced by
(i) the discretionary nature of the company's capex; (ii) its
historical ability to lease fixed assets instead of purchasing
them; (iii) expected partial repayment of intercompany receivables
from RG Brands shareholder JSC Group of companies RESMI; and (iv)
the fact that the company is in the final stages of negotiations
with a number of credit institutions for additional multi-year
lines totaling around KZT3.7 billion.

The affirmation of RG Brands' CFR and PDR reflects that RG Brands'
ratings continue to be constrained by (i) its relatively limited
scale of operations; (ii) the low capacity utilization of the
company's carbonated soft drinks production facilities (around 60%
of spare capacity in 2011); (iii) its limited geographical
diversification, with revenues derived mainly from Central Asia;
(iv) material related party transactions; and (v) its exposure to
Commonwealth of Independent States (CIS)-related risk factors.

However, more positively, the rating affirmation also reflects (i)
Moody's expectation that RG Brands will continue to benefit from
its leading position in Central Asian markets; (ii) the
diversified nature of RG Brands' product portfolio, with strong
brand names; (iii) the long-term nature of the company's exclusive
bottling agreement with PepsiCo; and (iv) its developed
distribution network.

What Could Change The Ratings Up/Down

To consider upgrading RG Brands' ratings, Moody's would require
the company to establish a track record of sustainably delivering
on s financial targets including (i) a reduction in adjusted
debt/EBITDA to below 3.5x; and (ii) maintenance of EBITA margin
funds from operations/debt above 10%. In addition, Moody's would
require RG Brands to maintain a satisfactory liquidity position
and comply with all its debt covenants.

RG Brands' ratings could come under pressure in the event that (i)
as a result of an insufficient improvement in both RG Brands'
operating performance and cash flow generation, the company were
unable to demonstrate track record of improvements in
profitability and credit metrics as anticipated over the next 12-
18 months; or (i) the company were unable to maintain adequate
liquidity or to generate sufficient headroom under its debt
covenants.

Principal Methodology

The principal methodology used in rating JSC RG Brands was the
Global Packaged Goods Industry Methodology published in July 2009.

Headquartered in Almaty, Kazakhstan, RG Brands is a leading
manufacturer and distributor of beverages, food products and
snacks, with operations predominantly in the Republic of
Kazakhstan and Central Asia.


===================
L U X E M B O U R G
===================


HIGH TIDE: Fitch Downgrades Rating on Class C Notes to 'Csf'
------------------------------------------------------------
Fitch Ratings has downgraded High Tide CDO 1 S.A.'s (High Tide)
notes, as follows:

  -- Class A (ISIN XS0169669081) downgraded to 'CCsf' from
     'CCCsf';

  -- Class B (ISIN XS0169669164) downgraded to 'CCsf' from
     'CCCsf'

  -- Class C (ISIN XS0169669248) downgraded to 'Csf' from 'CCsf';

The downgrades reflect further negative portfolio credit migration
since the review in November 2010.  The current portfolio contains
14% of assets rated 'CCCsf' and below.  Additionally, the
portfolio contains a further 36% of assets rated below investment
grade.

It is positive that the notes are still current on interest due to
the notes not having being written down as a result of credit
events in the transaction.  However, Fitch views the likelihood of
principal being repaid at maturity as low, considering that
aggregate losses on High Tide's structured finance portfolio from
the default of underlying assets should start to come through in
the next few years, eroding the credit enhancement that the
tranches benefit from.

High Tide is a synthetic arbitrage CDO of mainly European and
North American structured finance securities.  The ratings address
the likelihood of full and timely payment of interest and ultimate
payment of principal of all classes of notes by the scheduled
maturity on February 15, 2040.

Fitch has assigned a One Star Issuer Report Grade (IRG), "Poor",
to the reporting due to the lack of detailed information about the
liabilities and counterparties.


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


HIGHLANDER EURO: S&P Raises Rating on Class E Notes to 'CCC+'
-------------------------------------------------------------
Standard & Poor's Ratings Services took rating actions on all
rated classes of notes in Highlander Euro CDO III B.V.

Specifically, S&P has:

   Raised its rating on class A to 'AA+ (sf)' from 'A+ (sf)';

   Raised its rating on class B to 'A+ (sf)' from 'BBB (sf)';

   Raised its rating on class C to 'BBB+ (sf)' from 'BB+ (sf)';

   Raised its rating on class D to 'BB+ (sf)' from 'CCC+ (sf)';

   Raised its rating on class E to 'CCC+ (sf)' from 'CCC- (sf)';
   and

   Withdrawn its 'BB (sf)' rating on the class Q combination
   note.

"The rating actions follow our assessment of the transaction's
performance using data from the latest available trustee report,
dated Aug. 15, 2011, in addition to a cash flow analysis. We have
taken into account recent developments in the transaction and
reviewed the transaction under our 2010 counterparty criteria (see
'Counterparty And Supporting Obligations Methodology And
Assumptions,' published Dec. 6, 2010) and our cash flow criteria
(see 'Update To Global Methodologies And Assumptions For Corporate
Cash Flow And Synthetic CDOs,' published Sept. 17, 2009). We have
been informed by the trustee that the class Q combination note has
been decomposed into its constituent parts, and therefore we have
withdrawn the rating on class Q," S&P related.

"From our analysis, we have observed a positive rating migration
of the performing portfolio, and there are no longer any defaulted
assets in the pool. Credit enhancements for all classes of notes,
and the weighted-average spread earned on the collateral pool,
have increased--which in our view supports higher ratings on the
class A, B, C, D, and E notes. We have also observed from the
trustee report that the overcollateralization test results for all
classes have improved," S&P stated.

"We subjected the capital structure to a cash flow analysis to
determine the break-even default rate for each rated class. In our
analysis, we used the reported portfolio balance that we consider
to be performing, the reported principal cash available for
reinvestment, the current weighted-average spread, and the
weighted-average recovery rates that we considered appropriate. We
incorporated various cash flow stress scenarios using various
default patterns, levels, and timing for each liability rating
category, in conjunction with different interest stress
scenarios," S&P stated.

"In our opinion, the credit enhancement available to the class A
to E notes is consistent with higher ratings than previously
assigned, taking into account our credit and cash flow analyses.
We have applied our updated counterparty criteria (see
'Counterparty And Supporting Obligations Methodology And
Assumptions,' published Dec. 6, 2010), and in our opinion the
counterparties can support the ratings on the notes. We have
therefore raised our ratings on these notes," S&P said.

"Class E was constrained by the application of the largest obligor
default test, a supplemental stress test we introduced in our 2009
criteria update for corporate collateralized debt obligations
(CDOs) (see 'Update To Global Methodologies And Assumptions For
Corporate Cash Flow And Synthetic CDOs,' published Sept. 17,
2009)," S&P said.

Ratings List

Class                Rating
             To                 From

Highlander Euro CDO III B.V.
EUR727 Million Senior Secured Floating-Rate Notes

Ratings Raised

A            AA+ (sf)           A+ (sf)
B            A+ (sf)            BBB (sf)
C            BBB+ (sf)          BB+ (sf)
D            BB+ (sf)           CCC+ (sf)
E            CCC+ (sf)          CCC- (sf)

Rating Withdrawn

Q combo      NR                 BB (sf)

NR--Not rated.


===========
N O R W A Y
===========


SEVAN MARINE: To Sell Three Vessels & Shares to Teekay for $693MM
-----------------------------------------------------------------
Stephen Treloar and Marianne Stigset at Bloomberg News report that
Sevan Marine ASA agreed to sell its three floating oil production
and storage vessels and new shares to Teekay Corp., as well as
convert about US$124 million of unsecured bonds to equity, to
avoid bankruptcy.

According to Bloomberg, Sevan on Tuesday said Teekay will pay
US$668 million for the Voyageur, Piranema and Hummingbird vessels
and US$25 million for a 40% stake.  Sevan will also raise US$25
million in a sale of stock to existing share- and bondholders,
Bloomberg says.  Unsecured bondholders will receive Sevan Marine's
29% stake in Sevan Drilling ASA, Bloomberg discloses.

Sevan Marine has struggled with larger-than-expected maintenance
costs on its Voyageur unit, Bloomberg notes.  The company has been
in talks with bondholders to stave off bankruptcy after reaching
an agreement in July to defer interest until the end of September,
Bloomberg relates.

The deal will see Teekay and existing shareholders end up with 40%
each and unsecured bondholders with 20%, Bloomberg says.

Sevan Marine ASA is a Norwegian maker of floating oil-production
and storage vessels.


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


* ROMANIA: More Reorganizations Expected in 2012, CITR Says
-----------------------------------------------------------
According to Ziarul Financiar's Andrei Circhelan, Rudolf Paul
Vizental, senior partner within liquidator Casa de Insolventa
Transilvania (CITR), on Tuesday said insolvency claims by
companies will continue in 2012, but judicial reorganizations will
outweigh bankruptcies.


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


BANCO CAM: Moody's Cuts Bank Financial Strength Rating to 'E+'
--------------------------------------------------------------
Moody's Investors Service has downgraded Banco CAM's standalone
bank financial strength rating (BFSR) to E+ from D. The E+
standalone BSFR maps to B3 on the long-term scale. At the same
time, Moody's has confirmed Banco CAM's senior debt and deposit
ratings at Ba1/Not Prime and its dated subordinated debt at Ba2.
All of Banco CAM's ratings are on review with direction uncertain,
except the government guaranteed debt rated Aa2 on review for
possible downgrade.

The action extends the rating review initiated on September 8,
2011.

RATINGS RATIONALE

DOWNGRADE OF BANCO CAM'S STANDALONE BANK FINANCIAL STRENGTH RATING

Moody's decision to downgrade Banco CAM's standalone BFSR by
several notches, to E+ from D, reflects the material deterioration
on the bank's credit profile due to (i) its fragile liquidity
position with a continuously increasing funding deficit that is
only covered by ECB and domestic public debt Repo funding and the
EUR3 billion credit facility provided by its owner the state-owned
fund ("FROB", Fund for the Orderly Restructuring of the Banking
System) (ii) significant deterioration in asset quality
indicators, with a problem-loan ratio of 19% and a coverage ratio
of 39.4%, compared with 9% and 53.4% as of Q1 2011 (iii) net loss
of EUR1.1 billion at end-June 2011 compared with a net profit of
EUR39.8 million at end-March 2011, due to the higher than expected
level of impairments, and (iv) weak solvency indicators when
compared to Moody's calculation of embedded expected losses in
Banco CAM's balance sheet, despite the EUR2.8 billion capital
injection committed by the FROB.

Banco CAM was taken over by the FROB on July 22, 2011, after
having committed EUR2.8 billion of capital injection into the bank
and having granted a EUR3 billion credit facility as part of the
Bank of Spain's restructuring plan.

Moody's believes that without the support provided by the Spanish
government via its owner (the FROB), Banco CAM would not be able
to face its sizable refinancing requirements over the next 12
months given its weakening deposit base and lack of access to
wholesale market financing. In addition, Moody's is concerned by
the bank's very weak risk absorption capacity, with mounting
losses and weak solvency indicators, which has been severely
impacted by the rapid deterioration of its asset portfolio.

The FROB and Bank of Spain have jointly initiated the auction
process of Banco CAM, which is expected to conclude in the
following weeks. Moody's has placed the bank's BFSR on review with
direction uncertain to reflect the different rating implications
for Banco CAM in case the sale process is completed or if the FROB
fails to conclude it. By placing Banco CAM's BFSR on review with
direction uncertain the rating agency wants to highlight: (i) the
possibility for the bank's rating to be upgraded if it is acquired
by a stronger peer, (ii) the possibility of being downgraded if
the resulting entity after the sale process displays a weaker
credit profile than Banco CAM's standalone financial strength and
(iii) the possibility of Banco CAM's standalone rating being
downgraded if the sale process fails to succeed and the government
weakens its current support for the bank.

CONFIRMATION OF BANCO CAM'S SENIOR DEBT AND DEPOSIT RATINGS, AND
SUBORDINATED DEBT

In its action, Moody's has also confirmed Banco CAM's debt and
deposit ratings at Ba1/Not Prime. Following the downgrade of the
bank's BFSR, Moody's has broadened the uplift from its standalone
rating to five notches, to reflect the strong commitment of the
FROB to continue providing support to Banco CAM in terms of
liquidity and capital until the auction process is completed.

At the same time, Moody's has confirmed Banco CAM's dated
subordinated debt instruments at Ba2. These dated subordinated
debt instruments continue to be rated one notch lower than the
senior debt instruments, based on subordination in the case of
liquidation.

The bank's debt and deposits ratings as well as dated subordinated
debt are on review with direction uncertain reflecting the review
with direction uncertain of its standalone rating. In addition,
Moody's notes that Banco CAM's debt ratings could be aligned with
its standalone BFSR and therefore downgraded by several notches in
case the government (via FROB) will provide any signal that it may
weaken the support that is currently expected to be forthcoming
for the bank in case of need.

Headquartered in Alicante, Spain, Banco CAM had total assets of
EUR71.3 billion as of end-June 2011.


BBVA-6 FYPYME: Fitch Downgrades Rating on Class C Notes to 'Csf'
----------------------------------------------------------------
Fitch Ratings has taken various actions on BBVA-5 FTPYME and BBVA-
6 FTPYME as follows:

BBVA-5 FTPYME, FTA

  -- EUR150m Class A1 (ES0370459002) affirmed at 'Asf', Outlook
     revised to Stable from Negative

  -- EUR41m Class A2 (ES0370459010) affirmed at 'Asf', Outlook
     revised to Stable from Negative

  -- EUR27m Class A3(G) (ES0370459028) downgraded to 'AA-sf' from
    'AA+sf', Outlook Negative

  -- EUR40m Class B (ES0370459036) affirmed at 'BBsf'; Outlook
     Negative

  -- EUR57m Class C (ES0370459044) affirmed at 'AAAsf'; Outlook
     Stable

BBVA-6 FTPYME, FTA

  -- EUR199m Class A1 (ES0370460000) affirmed at 'BBB-sf';
     Outlook Negative

  -- EUR94m Class A2(G) (ES0370460018) downgraded to 'AA-sf' from
     'AA+sf', Outlook Negative

  -- EUR50m Class B (ES0370460026) downgraded to 'CCsf' from
     'CCCsf' Recovery Rating 'RR4'

  -- EUR32m Class C (ES0370460034) downgraded to 'Csf' from
     'CCsf'; Recovery Rating 'RR6'

The downgrades of BBVA-5 class A3(G) and BBVA-6 FTPYME class A2(G)
reflect the dependence of the notes' ratings on the guarantee
provided by the Kingdom of Spain ('AA-'/Negative/'F1+').  The
affirmation of BBVA-5's class C notes reflects its linkage to the
rating of the guarantor, the European Investment Fund
('AAA'/Stable/'F1+')

The affirmations of the remaining classes of BBVA-5 reflect the
increased level of credit enhancement and notes' ability to
withstand credit scenarios commensurate with their current
ratings.  In addition, the principal deficiency ledger (PDL)
balance has declined by EUR3.5 million to EUR1.5 million, mainly
driven by the increased volume of recoveries which have more than
doubled year on year.  Cumulative defaults, defined as loans in
arrears over 12 months, have decreased by EUR7 million over the
year and currently represent 14% of the outstanding balance.
However, they are likely to increase as the delinquencies over 90
days stand at 4.2%.

Fitch has been provided with recent portfolio information on a
loan-by-loan basis, which the agency used to simulate the various
rating stresses within its Portfolio Credit Model (PCM), Fitch's
primary tool in assessing the default and loss rates for SME CLO
portfolios. Of the current portfolio balance, 61% is secured on
real estate assets.  The current portfolio has moderate obligor
concentration exposure with the top one, 10 and 20 obligors
representing 2%, 10% and 17% of current portfolio balance,
respectively.  The estimated mean default rate on the portfolio is
31% and the mean recovery rate 71%.  BBVA 5's portfolio had
amortized to EUR296 million as of August 2011 or 16% of the
initial balance.  Series A1 has amortized to 10% of its initial
balance.

The affirmation of BBVA-6's class A1 reflects sufficient levels of
CE to support the ratings of the notes.  The downgrades of BBVA-
6's class B and C are due to a combination of weakening
performance trends and insufficient levels of structural CE of the
classes. Cumulative defaults have risen by EUR7 million year on
year and now represent 18% of the outstanding balance. The
increase in defaults has led to a decline of CE for the class B
and C to 0.8% and -7.8%, respectively, versus 2.2% and -4.4% a
year ago.  Also, while the delinquency pipeline has stabilized
during the year, the current exposure to delinquencies between 30
and 90 days is still relatively high at 3.7% of the current
balance.  In addition, the principal deficiency ledger balance has
increased by EUR8 million while recoveries are relatively low at
20%.

BBVA-6's portfolio, 63% of which is secured on real estate assets,
has amortized to EUR345 million or 23% of the initial balance.
Series A1 has amortized down to 17% of its original value.  The
estimated mean default rate on the portfolio is 32% and the mean
recovery rate is 68%.  Obligor concentration of the portfolio is
moderate with the top one, 10 and 20 obligors representing 1%, 8%
and 13%, respectively.

Fitch notes that as the transactions have significantly amortized,
exposure to tail risk as well as real estate and construction
sectors is a concern.

Fitch has revised the Issuer Report Grade (IRG) for BBVA-5 and 6
to "Poor" (one star) based on the provided reports.  The reports
do not meet several standards for a higher grade including
information on portfolio stratification and counterparties
triggers, repossessions and recovery details.


EMPRERAS BANESTO: Moody's Assigns (P)Ca Rating to Serie C Note
--------------------------------------------------------------
Moody's has assigned the following provisional ratings to the debt
to be issued by EMPRESAS BANESTO 6, Fondo de Titulizacion de
Activos:

  EUR935M Serie A Note, Assigned (P)Aaa (sf)

  EUR165M Serie B Note, Assigned (P)Baa2 (sf)

  EUR264M Serie C Note, Assigned (P)Ca (sf)

Ratings Rationale

EMPRESAS BANESTO 6, Fondo de Titulizacion de Activos is a
securitization of loans granted by Banco Espanol de Credito, S.A.
(Banesto, A2/P-1/Negative Outlook) to micro, small- and medium-
sized enterprises (SME) and corporate entities. Banesto is acting
as Servicer of the loans while Santander de Titulizacion S.G.F.T.,
S.A. is the Management Company (the Gestora).

The provisional pool analysed was, as of September 2011, composed
of a portfolio of 5,731 loans granted to obligors located in
Spain. The assets were originated between 2004 and 2011 (86.7%
between 2008 and 2011), and have a weighted average seasoning of 2
years and a weighted average remaining term of 3.7 years. All
exposures are unsecured loans.

Geographically, the pool is located mostly in the regions of
Catalonia (26.3%), Madrid (22.1%) and Valencia (10.1%). The
provisional portfolio, as of its cut-off date, included 2.5% of
loans in arrears between 31 and 90 days. However, loans in arrears
exceeding 30 days will be excluded from the final pool at closing.

According to Moody's, the deal has the following credit strengths:
(i) the pool is well diversified both geographically and in terms
of industry, with a relatively low exposure to obligors in the
construction and real estate sector (which according to Moody's
represents 13.8% of the pool); (ii) the portfolio has a
significant presence of large corporate obligors (according to
Banesto 16.6% of the pool consists of companies with annual
turnovers exceeding EUR500 million) which are normally considered
as having a stronger credit quality than smaller obligors; and
(iii) the transaction has a weighted average life (WAL) of around
2 years which is relatively short and implies a lower degree of
uncertainty regarding quantitative assumptions.

Moody's notes that the transaction features a number of credit
weaknesses, including: (a) high obligor concentration as the top
exposure represents 5% of the pool balance and the top 25 names
amount to 41.5%; (b) significant exposure (21.5% of the pool
balance) to loans with bullet amortisation schedules; (c) as of
the cut-off date of the provisional portfolio, 11.7% of the
outstanding balance was linked to loans under a grace period with
regards to principal payments.

These characteristics were reflected in Moody's analysis and
ratings, where several simulations tested the available credit
enhancement for the notes to cover potential shortfalls in
interest or principal envisioned in the transaction structure.

The resulting key assumptions of Moody's analysis for this
transaction are a mean default rate of 14.4%, and a stochastic
mean recovery rate of 35%.

The methodologies used in this rating were Moody's Approach to
Rating CDOs of SMEs in Europe, published in February 2007,
Refining the ABS SME Approach: Moody's Probability of Defaults
Assumptions in the Rating Analysis of Granular SME Portfolios in
EMEA, published in March 2009 and Moody's Approach to Rating
Granular SME Transactions in Europe, Middle East and Africa,
published in June 2007.

As mentioned in the methodology papers, Moody's used a combination
of its CDOROM model (to generate the default distribution) and
ABSROM cash-flow model to determine the potential loss incurred by
the notes under each loss scenario. In parallel, Moody's also
considered non-modeled risks (such as counterparty risk).

The V Score for this transaction is Medium/High, which is in line
with the score assigned for the Spanish SME sector and
representative of the volatility and uncertainty in the Spanish
SME sector. V-Scores are a relative assessment of the quality of
available credit information and of the degree of dependence on
various assumptions used in determining the rating. For more
information, the V-Score has been assigned accordingly to the
report " V Scores and Parameter Sensitivities in the EMEA Small-
to-Medium Enterprise ABS Sector " published in June 2009.

Moody's also ran sensitivities around key parameters for the rated
notes. For instance, if the assumed default probability of 14.4%
used in determining the initial rating was changed to 19.9% and
the recovery rate of 35% was changed to 25%, the model-indicated
rating for Serie A, Serie B and Serie C of (P)Aaa(sf), (P)Baa2(sf)
and (P)Ca(sf), respectively, would have changed to (P)A1(sf),
(P)B1(sf) and (P)C(sf) respectively.


=====================
S W I T Z E R L A N D
=====================


* SWITZERLAND: Insolvencies Increase as Franc Hits Tourism
----------------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that Swiss company
insolvencies rose by almost a quarter in September, suggesting the
strong franc is taking its toll on smaller enterprises,
particularly in the tourism and restaurant sector, a survey
published showed.


===========
T U R K E Y
===========


EREGLI DEMIR: S&P Raises Long-Term Corporate Credit Rating to 'B'
-----------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on Turkey-based steel producer Eregli Demir ve Celik
Fabrikalari T.A.S. (Erdemir) to 'B' from 'B-'. The outlook is
stable.

"The upgrade reflects our revision of Erdemir's financial risk
profile to 'aggressive' from 'highly leveraged'. Our decision
factors in a large, multi-year investment program, which has
boosted financial performance significantly in the past 18 months
and better positions the company to deal with increasing domestic
competition. As a result, the company can establish itself in
export markets and is better positioned to withstand a potential
downturn in the global or European economy or a tougher Turkish
market for flat steel products in the next one to two years.
Efficiency improvements, incremental volume increases, and a
greater proportion of higher value flat steel production are a
consequence of major capital spending and a more commercial focus
in recent years. Through dividends, we expect Erdemir to be
the primary source of funds to service the US$1.6 billion of bank
debt at its 49.3% owner, special-purpose vehicle Ataer (not
rated), which itself is a wholly owned subsidiary of Ordu
Yardimlasma Kurumu (OYAK; BB+/Stable/B). This stake gives OYAK
effective control of Erdemir as a result of Erdemir's holding
3.08% of its shares as treasury stock. While Standard & Poor's
continues to factor Ataer's debt into Erdemir's adjusted debt
metrics, it sees OYAK as likely to support Ataer's borrowings
under certain scenarios as it did during 2009 and 2010 when
Erdemir did not pay cash dividends to its shareholders.
Accordingly, we also consider Erdemir's stand-alone debt metrics
meaningful, particularly if business conditions weaken. We do not
incorporate any explicit notches of potential extraordinary
support from OYAK," S&P elaborated.

The ratings on Erdemir reflect Standard & Poor's view of the
company's cyclical and capital-intensive steel business, which is
subject to cost pressures due to volatile iron ore and coking coal
prices, cyclical demand and risk of oversupply due to major new
domestic flat steel capacity coming onstream in 2011 and 2012.

"The stable outlook reflects our view that Erdemir should be able
to cope with a less favorable operating environment in the face of
an uncertain global economic outlook and increased domestic
competition from new flat steel capacity additions," S&P stated.


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


CERAMICA: Placed Into Creditors' Voluntary Liquidation
------------------------------------------------------
Graeme Brown at Birmingham Post reports that Ceramica, a museum
which explored the history of Staffordshire's pottery industry,
has been placed into creditors' voluntary liquidation after being
hit by cutbacks.

Birmingham Post recalls that the museum was closed in March after
its Stoke-on-Trent City Council funding was withdrawn, due to
government cuts.  Some of the exhibits were transferred to other
locations and the future of the Town Hall is being reviewed.

Bob Young and Steve Currie, of corporate recovery group Begbies
Traynor, were appointed at a meeting of creditors held on Tuesday,
October 18, 2011, the report discloses.

According to the report, Ceramica chairman Paul Sherratt gave the
creditors' meeting a statement of the company's history and where
things went wrong.

Birmingham Post says initial funding from all sources to launch
the project totalled GBP3.5 million, much of it from the
Millennium Commission but also the council, regional development
agency Advantage West Midlands, English Heritage, and The Weston
Foundation.

The visitor attraction latterly charged GBP4.10 for a family and
was operated by five full and part-time staff.

"It was always intended that Ceramica should be self-funding, but
in practice it never attained the visitor numbers that were
anticipated. The original funding aspirations were with hindsight
entirely unrealistic. Once the deficit funding from the council
was withdrawn, the organisation could no longer continue," the
statement noted.

"Once it became clear that Ceramica would have to close, money
that might otherwise have been set aside to meet staff redundancy
and to pay creditors was used for day to day running. The building
has to be insured and provided with heat and lighting and there is
inevitably an on-going maintenance cost. These costs led to the
shortfall."

According to Birmingham Post, Begbies Traynor has appointed
property agents Butters John Bee to assist them with the marketing
of the property and contents.  It is intended that Butters John
Bee will be offering to the market the remainder of a 99-year
lease which commenced in 1998, the report notes.

Ceramica was a museum in Burslem, Stoke-on-Trent.  It was located
in the former Burslem Town Hall.


DOUGLAS STREET: Continues to Operate Amid Liquidation Proceedings
-----------------------------------------------------------------
TheCourier.co.uk reports that Dundee taxi firm Douglas Street
Transport Limited, formerly known as Dundee Private Hire, is
continuing to operate despite its trading company going into
liquidation.

A meeting of the creditors of Douglas Street is to be held on
October 26 at the Edinburgh offices of interim liquidator Begbies
Traynor, according to the report.

TheCourier.co.uk relates that the firm was formally liquidated on
August 5 but interim liquidator David Menzies admitted he had yet
to interview any of the directors of Douglas Street Transport Ltd
in connection with the situation.

Despite the collapse, the distinctive silver cabs -- which first
took to the road in 2001 with a fleet of Mercedes -- have
continued to be available to taxi passengers in Dundee, the report
relays.

According to the report, Chief executive David Young said he was
aware of the official liquidation notice but said it did not
affect ongoing operations.

Mr. Young said a new investor had come into the business and the
taxis were now operating under the name Dundee Private Hire 203020
Ltd, TheCourier.co.uk adds.


EMI GROUP: Turbulent Financing Markets May Derail Sale
------------------------------------------------------
Andrew Edgecliffe-Johnson and Anousha Sakoui at The Financial
Times report that turbulent financing markets could derail
Citigroup's attempt to sell EMI Group.

According to the FT, people close to the US$3 billion-plus auction
who warned that the US bank could abandon the sale if it cannot
squeeze higher offers from bidders said that the bidding process
remains fluid, with Citigroup expected to decide within two weeks
whether to sell EMI in one piece, break the UK music company in
two, or put the sale on hold.

Most auction participants believe that it would be surprising for
Citigroup to retain a company it seized in February from
Guy Hands' Terra Firma private equity group if it could avoid
doing so, the FT says.

The FT relates that an adviser to one bidder said talk of
scrapping the auction could be "posturing".  However, three people
involved said that second-round bids had come in at the low end of
an expected US$3bn-US$4 billion range, and that tight credit
markets made higher offers hard to finance, the FT notes.

As reported by the Troubled Company Reporter-Europe on Sept. 9,
2011, the Financial Times said Citigroup was planning to indemnify
bidders for EMI from any future damages claim from Guy Hands
following a fresh legal action by the private equity financier
over the music company.  Citigroup financed his 2007 takeover of
the music company, then seized it back in February, the FT
recounted.  He applied to the High Court in London for documents
to be turned over in relation to the valuations used at the
beginning of the year when the US bank wrested control of EMI from
him through a pre-pack administration process, the FT related.
The U.S. bank seized the company in February, four months before
it was set to default on loan covenants, after concluding that a
holding company had failed a solvency test triggered by the weight
of its GBP3.4 billion debts, the FT disclosed.

EMI Group Ltd. -- http://www.emigroup.com/-- is the fourth
largest record company in terms of market share (behind Universal
Music Group, Sony Music Entertainment, and Warner Music Group).
It houses recorded music segment EMI Music and EMI Music
Publishing.  EMI Music distributes CDs, videos, and other formats
primarily through imprints and divisions such as Capitol Records
and Virgin, and sports a roster of artists such as The Beastie
Boys, Norah Jones, and Lenny Kravitz.  EMI Music Publishing, the
world's largest music publisher, handles the rights to more than
a million songs.  EMI Music operates through regional divisions
(EMI Music North America, International, and UK & Ireland).
Financial services giant Citigroup owns EMI.


ICON ENERGY: Sister Company Continues to Trade Amid Liquidation
---------------------------------------------------------------
The Herald Scotland reports that Icon Energy has revealed that its
sister sun power company Icon Solar is to continue trading.

As reported in the Troubled Company Reporter-Europe on Oct. 17,
2011, BBC News reports that Icon Energy had entered voluntary
liquidation "as a direct result" of Proven Energy appointing a
receiver and ceasing to trade last month.  Proven went into
administration after a defect was identified in its P35-2 model,
affecting 500 customers, according to BBC News.  Icon Energy went
into voluntary liquidation after losing out to Kingspan Renewables
in a bid to take over Proven.

Headquartered in Milnathort near Kinross, Icon Energy is a wind
turbine installer.  The company was one of the leading renewable
energy installers in Scotland and Northern England.


PLYMOUTH ARGYLE: Council Agrees to Buy Club's Ground
----------------------------------------------------
BBC News reports that Plymouth Argyle Football Club, commonly
known as Argyle, could be saved after Plymouth City Council agreed
to buy its ground.

Plymouth City Council will pay GBP1.6 million for Home Park and
rent it back to the club for GBP135,000 a year, according to BBC
News.  The report recalls that the club bought the ground from the
council for GBP2.7 million in 2006.

BBC News notes that the council's purchase of the ground was a
proviso of a rescue bid by businessman James Brent, who hopes to
complete the deal this week.

The move was unanimously approved by the full Conservative-
controlled council, the report notes.

BBC News discloses that the council deal means Argyle would have
an option to buy back the ground every five years for a sum equal
to 12 times the then annual rent.  The report relays that the rent
would rise by 150% if the club reached the Championship and 300%
if it reached the Premier League.

The deal also removes covenants preventing non-football
development around the ground, BBC News adds.

                      About Plymouth Argyle

Plymouth Argyle Football Club, commonly known as Argyle, or by
their nickname, The Pilgrims, is an English professional football
club based in Central Park, Plymouth.  It plays in Football
League One, the third division of the English football league
system.

As reported in the Troubled Company Reporter-Europe on March 8,
2011, the High Court placed Plymouth Argyle Football Club into
administration.  Brendan Guilfoyle, Christopher White and John
Russell of The P&A Partnership have been appointed as
administrators.  The TCR-Europe, citing The Guardian, reported
on March 3, 2011, that Plymouth Argyle directors have been warned
that the club needs an injection of around GBP3 million if it is
not to be placed into administration.

The P&A Partnership has been trying to sell the debt-crippled
Pilgrims since they were plunged into administration, according to
Plymouth Herald.  Devon businessman James Brent is expected to
complete his takeover of the League Two club this month.  Plymouth
Herald noted that the deal would secure Argyle's short-term future
and bring to an end a process that by lead administrator Brendan
Guilfoyle's own admission has been "complex and protracted".


* UK: Proposes Tough Regulations for Residential Care Homes
-----------------------------------------------------------
Sally Gainsbury at The Financial Times reports that the government
is considering a series of tough regulations for residential care
homes following the collapse this year of Southern Cross, the UK's
biggest home operator.

According to the FT, the measures, outlined on Oct. 10 for
consultation, include requiring companies to post capital upfront
as a condition of their license, and giving councils and
regulators the power to intervene in the management of homes if
they come under the threat of closure.

The proposals are contained in a formal government discussion
paper, the FT discloses.

When applied to privately run businesses, that could mean a home
would have to undergo a "more rigorous financial check" as a
condition of a license, the FT notes.  The FT says its financial
position would be reviewed periodically, or after significant
changes "such as a securitization or highly leveraged
transaction".  The paper states that in the "event of persistent
financial weakness" the regulator could intervene and ultimately
remove the license to operate, the FT notes.

According to the FT, the discussion paper shows those proposals
are still under consideration, with ministers consulting on
whether existing licensing requirements could be changed to "make
sure that a care home cannot close suddenly, for example, by
posting capital upfront in a segregated account or through a risk-
pooling scheme".

The consultation is due to close on December 2, the FT states.


* UK: Seeing North-South Gap in Financial Distress Levels
---------------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that a divide in levels
of financial distress between the north and south of England is
developing as the impact of public sector cuts starts to hit home,
insolvency specialists Begbies Traynor Group PLC said.


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


* Liquidity of EMEA Corporates Expected to Decline, Moody's Says
---------------------------------------------------------------
In its latest report on corporate liquidity published on Oct. 17,
2011, Moody's Investors Service says that liquidity positions are
stronger than a year ago for both investment-grade and
speculative-grade companies. Companies have been cautious about
discretionary uses of cash and benefitted from extending debt
maturities during a period of strong bond market access earlier
this year.

"From our study of 563 rated corporate borrowers, 91% of issuers
demonstrate sufficient liquidity to cover their debt maturities
over the next 12 months," says Moody's Senior Vice President Jean-
Michel Carayon. "Some 9% of issuers, mostly in the B rating
category, display insufficient or weak liquidity -- compared with
14% a year ago."

However, Moody's says that the broad trend for corporate liquidity
in EMEA has taken a decidedly negative trend, looking forward.
High-yield bond issuance has declined steeply after reaching a
peak of USD31 billion in the second quarter of 2011."Corporate
cash flow will be pressured by slower growth in the global economy
and recession in parts of Europe", says
Mr. Carayon. "Moreover about US$545 billion of debt will mature by
June 2012, representing a 5% increase compared with the previous
year," he explains.  We also think pressures on bank capital and
asset quality portend a sustained period of tightened standards
for bank loans and committed credit facilities. Non-investment-
grade borrowers will find it the most challenging to maintain
sound liquidity.

The degree of severity and duration of a downturn in liquidity
will be a key determinant for the extent of corporate stress. Our
current expectation is that liquidity conditions will not
deteriorate sufficiently to trigger a significant surge in the
default rate over the near term, Moody's says. However, weaker
liquidity profiles may lead to rating downgrades, particularly for
speculative grade companies with limited flexibility to conserve
cash without weakening their competitive business position.

Moody's report is entitled "Liquidity of EMEA Corporates is Strong
but Expected to Deteriorate".


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

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

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

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

Nov. 28, 2011
  BEARD GROUP, INC.
     18th Annual Distressed Investing Conference
        The Helmsley Park Lane Hotel, New York City
           Contact: 1-240-629-3300

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

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

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

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

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

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

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

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

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


                            *********

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

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

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

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


                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *