TCREUR_Public/111201.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, December 1, 2011, Vol. 12, No. 238



A-TEC INDUSTRIES: Penta Files Bid for Minerals & Metals Unit


MISTHOSIS FUNDING: Moody's Says Series A Ratings Unaffected


* GREECE: Euro-Area Finance Ministers Approve EUR5.8-Bil. Loan


ASHFORD CASTLE: Goes Into Receivership, Racks Up Enormous Losses
* IRELAND: Smaller Firms May Avail of Low-Costs Examinerships


SEAT PAGINE: Subordinated Bondholders Back Debt Restructuring


ORTHOFIX INT'L: S&P Withdraws 'BB-' Corporate Credit Rating


HUNSFOS FABRIKKER: To Go Into Liquidation


LISBON AND PORTOS: Fitch Cuts Long-Term Currency Ratings to 'BB+'


MOBILE TELESYSTEMS: Fitch Affirms 'BB+' LT Foreign Currency IDR
MOSCOW BANK: Fitch Affirms Long-Term IDR at 'B+'
SISTEMA JOINT: Fitch Affirms 'BB-' Senior Unsecured Ratings
* MURMANSK REGION: Fitch Assigns 'BB/B' Currency Ratings


BANCO DE VALENCIA: Banco Mare Nostrum Mulls Takeover Bid
SANTANDER HIPOTECARIO: Fitch Affirms C Rating on Class F Tranche


T.C. ZIRAAT: Fitch Affirms LT Foreign Currency IDR at 'BB+'

U N I T E D   K I N G D O M

AUSTIN-SMITH:LORD: Creditors Extend CVA Deadline to December 2
CONSOLIDATED MINERAL: Moody's Reviews 'B2' CFR for Downgrade
CONVERS SPORTS: In Administration, Football Club Chairman Resigns
DECO 6: Fitch Affirms 'CCsf' Rating on GBP24.1-Mil. Class D Notes
EUROPEAN PRIME: Fitch Affirms GBP1-Mil. Class D Notes at 'Dsf'

HAMKORBANK: Moody's Assigns 'E+' Bank Financial Strength Rating
PARAMOUNT: Cafe Fish Buys Livebait Out of Administration
SAAB GB: Goes Into Administration in London for Legal Protection


* EUROPE: Ailing Banks' Short-Term Creditors May Face Losses
* EUROPE: Euro Finance Ministers Agree to Boost Bailout Fund
* Upcoming Meetings, Conferences and Seminars



A-TEC INDUSTRIES: Penta Files Bid for Minerals & Metals Unit
According to Bloomberg News' Lenka Ponikelska, Penta Investments
Ltd. spokesman Martin Danko said that the Czech and Slovak
private equity group filed a bid for the minerals and metals unit
of bankrupt A-Tec Industries AG.

A-Tec administrator Matthias Schmidt exercised his right to start
liquidating the group after it failed to raise by Sept. 30 funds
required under a restructuring agreed with creditors last year,
Bloomberg recounts.  Mr. Schmidt is seeking to sell all of
A-Tec's assets and pay out the proceeds exclusively to creditors,
Bloomberg notes.

The administrator sold 98% of its ATB electric drive unit to
China's Wolong Investment GmbH, a subsidiary of the Asian
nation's Wolong Group, on Oct. 19, Bloomberg discloses.

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,


MISTHOSIS FUNDING: Moody's Says Series A Ratings Unaffected
Moody's Investors Service has determined that this rating of the
notes issued by Misthosis Funding Plc are unaffected following

Moody's Investors Service stated that a proposal by the Bank of
Cyprus to (i) change the triggers by which a stand-by Servicer
would be appointed (from loss of Baa3 to loss of Ba3) and to
remove as Servicer Termination Event the situation in which the
Servicer was downgraded below Ba3 by Moody's and (ii) increase
the Commingling Reserve from 3% to 4% (the "Amendments") will
not, in and of itself and at this time, result in a reduction or
withdrawal of the current ratings of the notes issued by the

Moody's opinion addresses only the credit impact associated with
the proposed Amendments, and Moody's is not expressing any
opinion as to whether these actions have, or could have, other
non-credit related effects that may have a detrimental impact on
the interests of note holders or counterparties. For the
avoidance of doubt, this determination relates to the execution
documentation provided to Moody's (MASTER AMENDMENT DEED AND
NOTEHOLDER CONSENT, dated November 21, 2011) only and should not
be taken to imply that Moody's will not take a rating action in
respect of the Notes by virtue of any other events or
circumstances that may be continuing now or that arise in the

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 Default
assumptions in the rating analysis of granular Small and Mid-
sized Enterprise 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.

Moody's will continue monitoring this rating. Any change in the
rating will be publicly disseminated by Moody's through
appropriate media.


* GREECE: Euro-Area Finance Ministers Approve EUR5.8-Bil. Loan
Jonathan Stearns at Bloomberg News reports that euro-area finance
ministers approved a EUR5.8 billion (US$7.7 billion) loan to
Greece under last year's bailout after eliciting budget-austerity
pledges from Greek political leaders backing a unity government.

The go-ahead for the sixth disbursement of funds under the fully
taxpayer-funded package of EUR110 billion shifts the spotlight to
a second rescue of Greece that foresees 50% losses for private
investors in Greek bonds, Bloomberg notes.  According to
Bloomberg, the new aid plan, crafted at an October summit, also
includes EUR130 billion in extra public funds.

After initially endorsing the next loan for Greece on Oct. 21,
the euro area froze the payment this month because former
Socialist Premier George Papandreou announced a referendum on the
second rescue plan, Bloomberg discloses.  He later called off the
vote, resigned and was succeeded by ex-central banker Lucas
Papademos, whose interim government has the support of three
parties to press ahead with budget cuts needed for continued aid,
Bloomberg recounts.

"We decided to release the sixth disbursement of the Greek
program now that prior actions have been met," Bloomberg quotes
Luxembourg's Jean-Claude Juncker as saying.

Greece, which faces a fifth year of economic contraction in 2012,
says it needs the next international aid payment by mid-
December, according to Bloomberg.  The euro area's installment is
part of an EUR8 billion disbursement, of which the International
Monetary Fund will provide the remainder, Bloomberg notes.

The IMF, which is funding almost a third of last year's package
for Greece, must still approve its EUR2.2 billion share of the
next payment to the country, Bloomberg says.  Greek Finance
Minister Evangelos Venizelos said in a statement handed out in
Brussels that the IMF planned to give its verdict on Dec. 5 and
Juncker said the funds would be transferred to Greece by the
middle of December, Bloomberg discloses.

The initial bailout of Greece was made up of loans from euro-area
governments and the IMF, Bloomberg notes.  The euro area's share
of the new package is set to come from the EUR440 billion
European Financial Stability Facility, which is already
contributing to international rescues of Ireland and Portugal,
according to Bloomberg.


ASHFORD CASTLE: Goes Into Receivership, Racks Up Enormous Losses
Siobhan Creaton at Irish Independent reports that Ashford Castle
has gone into receivership with enormous losses.

Developer Gerry Barrett and Bank of Scotland Ireland appointed
David Hughes and Luke Charleton of Ernst & Young as receivers.

The receivers said that the hotel would continue to trade as
normal and there will be "no interruption to guests, staff and
suppliers," according to Irish Independent.

The report notes that the 130 staff employed at Ashford Castle
will continue to be employed during the receivership.

As reported in the Troubled Company Reporter-Europe on
Feb. 25, 2011, The Irish Times said that Ashford Castle Estate
Ltd. recorded combined pretax losses totaling EUR39 million
in 2009 and 2008. According to The Irish Times, filings just
filed to the Companies Office show that ACEL, which is owned by
Galway businessman Gerry Barrett, recorded a pretax loss of
EUR16.1 million in 2009, and this followed a pretax loss of
EUR23.1 million in the 13 months to the end of December 2008.
The Irish Times noted auditors for the company, Deloitte Touche
state that ACEL is dependent on the financial support of the
National Assets Management Agency (NAMA), its non-Nama bank and
the continuing support of its fellow group companies to be able
to continue as a going concern.  The directors disclose the
company owes EUR29.8 million to other companies within Mr.
Barrett's Edward Holdings Group and the accounts show that the
company owes an additional EUR29.2 million in bank loans, The
Irish Times related.

Ashford Castle Estate Ltd. is a five-star hotel in Co Mayo.

* IRELAND: Smaller Firms May Avail of Low-Costs Examinerships
Emmet Oliver at Irish Independent reports that thousands of
smaller firms will be able to seek examinerships for the first
time at low cost under changes that are being planned by the
Irish government.

Examinerships, which give troubled companies protection from
their creditors, are mostly used by larger companies due to the
costs involved, Irish Independent discloses.  Many smaller firms
simply try to struggle on with their debts or go into
liquidation/receivership, Irish Independent says.

A company itself can apply to be put into examinership, but once
a firm exceeds a certain threshold of debt, its examinership case
can only be heard in the High Court, meaning it is highly
prohibitive on cost grounds for debt-ravaged firms, Irish
Independent notes.

But Jobs, Enterprise and Innovation Minister Richard Bruton is
examining these thresholds which should allow more examinerships
to go before the far cheaper Circuit Court, according to Irish
Independent.  Mr. Bruton is going to look at changing the
thresholds in the context of the Companies Bill, Irish
Independent says.

While the offer of a cheaper examinership process will be
welcomed by small business organizations, creditors to these
firms will greet the idea with some nervousness, Irish
Independent notes.  In most cases the senior secured creditors
are banks and they may have to forgo some of the interest they
are owed, while the principal they are owed is repaid via
installments, Irish Independent states.

Preferred creditors like the Revenue Commissioners are usually
paid a substantial sum, but unsecured creditors usually receive
very little, according to Irish Independent.


SEAT PAGINE: Subordinated Bondholders Back Debt Restructuring
Serena Ruffoni at Dow Jones Newswires reports that SEAT Pagine
Gialle SpA obtained consent from 75% of its subordinated
bondholders on its debt restructuring.

According to Dow Jones, a person familiar with the situation said
on Tuesday that it remains unclear if the company obtained the
consent of all its bank lenders.

A board meeting, in which the company will decide whether to pay
a EUR52 million interest due on its EUR1.3 billion subordinated
bond, is still taking place, Dow Jones discloses.

SEAT PG said last week that the interest will be paid if 75% of
subordinated holders and 100% of senior bank lenders signed the
lock-up agreement, Dow Jones recounts.

The lender consents required and partially achieved were on a
lock-up agreement on the company's debt, its acceptance being an
indication of creditors from creditors towards a consensual
restructuring agreement, Dow Jones notes.

Failure to pay by Nov. 30 will trigger a technical default and a
likely credit event on the company's credit default swap, Dow
Jones says.

SEAT PG is seeking to obtain sufficient support on its
restructuring from all stakeholders, Dow Jones states.

As reported by the Troubled Company Reporter-Europe on Nov. 30,
2011, Bloomberg News related that credit-default swap traders
have been unable to agree whether a failure-to-pay credit event
occurred on contracts insuring Seat Pagine's debt.  The swaps
ruling will now be passed to an external review panel, the second
such standoff since Determinations Committees of swaps traders
were created in 2009 to make binding decisions for the market,
Bloomberg said.

                        About Seat Pagine

Seat Pagine Gialle SpA (PG IM) -- is an
Italy-based company that operates multimedia platform for
assisting in the development of business contacts between users
and advertisers.  It is active in the sector of multimedia
profiled advertising, offering print-voice-online directories,
products for the Internet and for satellite and ortophotometric
navigation, and communication services such as one-to-one
marketing.  Its products include EuroPages, PgineBianche,
Tuttocitta and EuroCompass, among others.  Its activity is
divided into four divisions: Directories Italia, operating
through, Seat Pagine Gialle; Directories UK, through TDL
Infomedia Ltd. and its subsidiary Thomson Directories Ltd.;
Directory Assistance, through Telegate AG, Telegate Italia Srl,
11881 Nueva Informacion Telefonica SAU, Telegate 118 000 Sarl,
Telegate Media AG and Prontoseat Srl, and Other Activitites
division, through Consodata SpA, Cipi SpA, Europages SA, Wer
liefert was GmbH and Katalog Yayin ve Tanitim Hizmetleri AS.

                         *     *     *

As reported by the Troubled Company Reporter-Europe on Nov. 4,
2011, Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Italy-based international publisher of
classified directories SEAT Pagine Gialle SpA to 'CC' from
'CCC+'.  S&P said that the outlook is negative.


ORTHOFIX INT'L: S&P Withdraws 'BB-' Corporate Credit Rating
Standard & Poor's Ratings Services withdrew its 'BB-' corporate
credit rating on Curacao-based medical device producer Orthofix
International N.V., at the company's request.


HUNSFOS FABRIKKER: To Go Into Liquidation
EUWID reports that Hunsfos Fabrikker AS is to be liquidated after
search for an investor was unsuccessful.

The news agency relates that over the past two months, the
company's insolvency administrator Havard Wiker was in
discussions with several interested parties but no agreement was

Mr. Wiker announced on November 24 that the company will go into
liquidation, the report says.

Production at the mill in Vennesla has been idle since
September 22 this year when the commencement of the insolvency
proceedings was announced, according to EUWID.

Founded in 1886 and based in Vennesla, Norway, Hunsfos Fabrikker
AS manufactures Machine Glazed (MG) Papers and other paper
products in Europe. It offers fine paper, sulphite packaging
paper, and wallpapers.  Hunsfos Fabrikker AS operates as a
subsidiary of Bavaria Industriekapital AG.


LISBON AND PORTOS: Fitch Cuts Long-Term Currency Ratings to 'BB+'
Fitch Ratings has downgraded the Portuguese cities of Lisbon and
Porto's Long-term foreign and local currency ratings to 'BB+'
from 'BBB-' and the Short-term foreign currency rating to 'B'
from 'F3'.  The Rating Watch Negative (RWN) on the Long- and
Short-term ratings has been removed.  The Outlook is Negative.

Fitch considers the financial and fiscal situation of the two
cities to be stronger than its present rating levels and
therefore the ratings remain constrained by that of the

According to 2010 final accounts, the City of Lisbon had an
operating margin of 24.9%, while its debt represents 2.2 years of
current balance and its direct risk 73.4% of its current revenue.
With regard to the City of Porto, its operating margin was 21.7%,
while its debt represented three years of current balance and its
direct risk 70.8% of its current revenue.

According to Fitch's criteria, Portuguese municipalities are not
eligible to be rated above the ratings of the Republic of


MOBILE TELESYSTEMS: Fitch Affirms 'BB+' LT Foreign Currency IDR
Fitch Ratings has revised Russia-based Mobile Telesystems' (MTS)
Outlook to Stable from Positive.

The Outlook revision reflects the negative influence of MTS's
controlling shareholder, JSFC Sistema ('BB-'/Stable) -- the
Outlook on the latter was changed to Stable from Positive.  Under
Fitch's parent-subsidiary methodology, there is a linkage between
the ratings of these two companies.  On a stand-alone basis,
MTS's credit profile continues to conform to low investment-

The company holds strong and reasonably stable market shares in
all its key mobile markets -- including, most importantly,
Russia. Fitch believes that MTS will continue to successfully
defend its positions and maintain broad parity with peers in
terms of coverage, technology solutions, frequency portfolio,
marketing and capex spend.  Control over MGTS, a fixed-line
incumbent in Moscow, provides MTS with strong leadership in the
mass segment of this geographical market.

However, key Russian and Ukrainian mobile markets are mature with
competition rising.  Russian headline mobile penetration exceeded
155% as of end-H111.  Fitch expects competitive pressures to
intensify further with the market-share ambitions of Tele2 and
Rostelecom in the medium term.

MTS sustainably generates positive free cash flow (FCF), and
overall financial performance is robust although margins have
been under pressure in 2011 and are unlikely to recover
significantly. As noted, key markets are mature and therefore do
not require excessive capex.  However, capex as a percentage of
revenue has been high -- at well above 20% -- and is unlikely to
decrease abruptly, and will be inflated by 3G spend in Russia.
As a result, Fitch expects that MTS's pre-dividend FCF margin
will remain in the range of up to 10%.

Fitch sees MTS's exposure to Sistema's group-wide risks, and the
holding's flexibility to significantly increase MTS's leverage,
if need be, as a significant credit constraint.  There are no
public leverage targets or restrictions on dividend payments that
could hamper Sistema's ability to significantly increase the
amount of dividends from MTS.

MTS's leverage has been modest at below 1.5x net debt/EBITDA.  It
is likely to rise to the upper end of this range as a result of
MTS's increasing its stake in MGTS and some other acquisitions by
end-2011.  Deleveraging is likely to be slow due to high dividend
payments and only modest improvements in EBITDA generation.

The ratings may benefit from changes in shareholding, corporate
governance or legal provisions sufficient to create a strong ring
fence around MTS to isolate it from Sistema's group-wide risks.
A downgrade may arise from increased shareholder remuneration,
MTS's acquisition of Sistema group's assets, or a build-up in
pressures to upstream cash on the back of funding needs at the
wider Sistema group - and a consequent rise in funds from
operations adjusted net leverage to above 3x.  Competitive
weaknesses and market-share erosion, leading to significant
deterioration in pre-dividend FCF generation, may also become a
negative rating factor.

MTS's debt maturity profile is well spread with single-year
refinancing exposure not significantly exceeding US$1 billion per
annum until end-2014 (as of end-2010).  In addition to US$1.6
billion of cash and short-term investments as of end-Q311, the
company has access to a number of committed credit lines that
were reported at US$3.0 billion at end-2010.  Currency risks are
moderate with the foreign exchange share of the total debt
portfolio reported at 22% at end-Q311.

The rating actions are as follows:

  -- Long-term foreign currency IDR affirmed at 'BB+'; Outlook
     revised to Stable from Positive

  -- Short-term foreign currency IDR affirmed at 'B'

  -- Senior unsecured foreign currency rating affirmed at 'BB+'

  -- Long-term local currency IDR affirmed at 'BB+'; Outlook
     revised to Stable from Positive

  -- Short-term local currency IDR affirmed at 'B'

  -- Senior unsecured local currency rating affirmed at 'BB+'

  -- National Long-term rating affirmed at 'AA(rus)'; Outlook
     revised to Stable from Positive

  -- National senior unsecured rating affirmed at 'AA(rus)'

MOSCOW BANK: Fitch Affirms Long-Term IDR at 'B+'
Fitch Ratings has affirmed the Moscow Bank for Reconstruction and
Development's (MBRD) and Dalcombank's (DCB) Long-term Issuer
Default Ratings (IDRs) at 'B+', and revised the Outlooks on the
banks to Stable from Positive.  At the same time, the agency has
downgraded MBRD's Viability Rating (VR) to 'b-' from 'b'.

MBRD's and DCB's IDRs reflect the support they can expect to
receive if needed from their majority shareholder, Sistema Joint
Stock Financial Corp. (Sistema; 'BB-').  The Outlook revisions
for MBRD and DCB follow the revision of the Outlook on Sistema to
Stable from Positive.  The future direction of the bank's IDRs
will continue to depend on Sistema's Long-term IDR and Fitch's
view of the parent's propensity to support the group's banks.

In assessing Sistema's propensity to provide support, Fitch
considered the track record of capital support in recent years,
the significant reputational, political and market access risks
which would be associated with a default of one of the group's
banks, the relatively small size of the banks compared to the
broader group (implying a moderate relative cost of any required
support) and MBRD's still significant role in supporting the
treasury function of the group.  At the same time, Fitch also
notes the banks' limited strategic fit with the rest of the group
and their weak performance during recent years.

The downgrade of MBRD's VR reflects the bank's continued
operating losses (about 8% negative consolidated operating return
on average equity for 9M11), still relatively high levels of non-
performing assets, tighter liquidity and capital as a result of
the recent rapid growth in lending, and uncertainty regarding its
changing business model.  Fitch also continues to express concern
about the low transparency of the operations of MBRD's Luxemburg-
based subsidiary, East-West United Bank (EWUB) which accounted
for 30% of consolidated loans at end-H111, although a majority of
the subsidiary's loans are cash-backed.

At end-H111, MBRD's reported level of loans overdue by more than
90 days (NPLs) accounted for 11.9% of the bank's standalone loan
book and an additional 2.6% of loans were restructured.  The bank
grew its stand-alone corporate loan book by 54% in 9M11 (adjusted
for reverse repo).  In Fitch's view, such rapid growth carries a
risk of significant losses in the future, in particular given the
bank's limited credit expertise and franchise outside Sistema's
connections. MBRD has repeatedly stated its intentions to develop
retail and SME, but with rather limited execution, to date.

MBRD's consolidated Tier 1 capital ratio decreased to 13.9% at
end-Q311 due to rapid loan expansion.  Impairment reserves in
end-H111 management IFRS accounts provided about 90% coverage of
NPLs, but additional provisioning, and hence capital support, may
be needed as the loan book seasons.

EWUB is primarily engaged in extending cash-backed loans to
foreign-domiciled entities. Fitch understands that such
activities are mainly performed for regulatory purposes or tax
considerations.  The bank should not be taking on significant
financial risks, as almost all loans are reportedly backed by
pledged deposits, and EWUB does not seem to have other material
business.  However, reputational and regulatory risks could be
high, should these operations come under the scrutiny of
regulators.  DCB's 'b-' VR reflects its moderate capital and
liquidity cushions and relatively weak performance and recent
rapid loan growth.  However, the rating also considers the
somewhat improved capital position after the equity injection
made by Sistema in Q311.

MBRD is a medium-sized Russian bank, 100% controlled by Sistema.
Servicing shareholder's business needs remains an important part
of MBRD's business.  MBRD owns a 66% stake in EWUB and a 75.1%
share of DCB, with the remaining 24.9% directly controlled by
Sistema.  On a stand-alone basis, MBRD was the 34th largest bank
in the country by assets at end-Q311. DCB is a small bank
operating in Russia's Far East.  The bank primarily extends loans
to SMEs and unsecured consumer financing for retail clients which
results in high credit risk compared with its main competitors.

The rating actions are as follows:


  -- Long-term IDR: affirmed at 'B+'; Outlook changed to Stable
     from Positive

  -- Short-term IDR: affirmed at 'B'

  -- Support Rating: affirmed at '4'

  -- Viability Rating: downgraded to 'b-' from 'b'

  -- Individual Rating: affirmed at 'D/E'

  -- National Long-term rating: affirmed at 'A-(rus)'; Outlook
     changed to Stable from Positive


  -- Long-term IDR: affirmed at 'B+'; Outlook changed to Stable
     from Positive

  -- Short-term IDR: affirmed at 'B'

  -- Support Rating: affirmed at '4'

  -- Viability Rating: affirmed at 'b-'

  -- Individual Rating: affirmed at 'D/E'

  -- National Long-term rating: affirmed at 'A-(rus)'; Outlook
     changed to Stable from Positive

SISTEMA JOINT: Fitch Affirms 'BB-' Senior Unsecured Ratings
Fitch Ratings has revised Russia-based Sistema Joint Stock
Financial Corp.'s Outlook to Stable from Positive.  Sistema's
Long-term foreign and local currency Issuer Default Ratings (IDR)
have been affirmed at 'BB-' and its foreign and local currency
senior unsecured ratings affirmed at 'BB-'.

Sistema's National long-term rating has also been affirmed at
'A+(rus)' and assigned a Stable Outlook and its national senior
unsecured rating affirmed at 'A+(rus)'.  The guaranteed debt
issuance program, which is up to US$3 billion, registered by
Sistema Capital S.A. and guaranteed by Sistema was affirmed at
'BB-'.  The Outlook revision primarily reflects Fitch's
assessment that Sistema is unlikely to come up with a quick
solution for its subsidiary SSTL (Shyam), a small niche CDMA
operator in India.  Organic development of this business requires
considerable capex and would entail a substantial cash burn
before it is turned EBITDA positive. Some debt at Shyam is
already guaranteed by the holding company (holdco).  Fitch
believes that future funding efforts by Shyam are likely to
require shareholder support increasing off-balance sheet
liabilities recourse to the holdco.

Sistema's ratings continue to be supported by strong operating
and financial performance at its key subsidiaries, MTS
('BB+'/Oultook), a large Russian/CIS mobile operator, and
Bashneft, a medium-size Russian oil and gas company. MTS's free
cash flow (FCF) generation is strong supporting its ability to
pay hefty dividends.  MTS has low leverage, at 1.1x net debt/LTM
EBITDA at end-Q311, and Sistema, as a controlling shareholder,
retains the flexibility to increase leverage and squeeze
additional dividends from this company without jeopardising its
credit ratings.  Bashneft is expected to continue paying high
dividends, although this may be challenged by the high capex
required to develop the new Trebs-Titov oil field.  Bashneft is
looking for partners to help fund this development, and although
it is unlikely to fall short of finding willing participants in
this project, this may happen on terms less favorable than
currently envisaged by the holdco.

Sistema's group-wide leverage was a moderate 1.7x net debt/EBITDA
at end-Q211 but this is unevenly distributed between various
segments. Weaker subsidiaries are much more leveraged than key
ones, and there is a significant amount of debt at the holdco
level.  In addition to the holdco's headline debt, it guarantees
some debt at its subsidiaries, most importantly at Shyam.  Also,
Sistema granted a number of put options to equity investors into
some of its subsidiaries which effectively turn these equity
investments into debt recourse to Sistema.  These include
arrangements with Rusnano for its cash contribution to the
Sistema-Nano JV, the Russian Government's equity injection into
Shyam and Sberbank's acquisition of a 25% stake in Detsky Mir.

As a result, leverage as measured by the ratio of net debt
including off-balance sheet obligations to normalized dividends
is high and Fitch expects it to remain significantly above 2.5x,
to a large part driven by continuing investments into Shyam. A
rise in that ratio to above 4.3x on a sustained basis may lead to
a downgrade.

Sistema's liquidity is strong for its rating category, protecting
it against short-term refinancing risks. Liquidity is comprised
of cash on the balance sheet -- estimated by Fitch at US$357
million at end-Q211 and supported by dividends from MTS in Q311,
and a number of committed bank credit lines.

* MURMANSK REGION: Fitch Assigns 'BB/B' Currency Ratings
Fitch Ratings has assigned Russia's Murmansk Region a Long-term
foreign and local currency rating of 'BB', a Short-term foreign
currency rating of 'B' and a National Long-term rating of 'AA-
(rus)'.  The Outlooks for the Long-term ratings are Stable.

The ratings reflect its sound budgetary performance, supported by
its industrial tax base, moderate debt and strong liquidity.
However the ratings also take into account the region's high tax
concentration and the rigidity of its operating expenditure.

Fitch notes that a consolidation of the region's sound operating
performance in line with projections and maintenance of a safe
debt coverage ratio in the medium term would be positive for the
ratings.  Conversely, downward rating pressure would arise from a
sharp deterioration of its budgetary performance, due to a
structural negative shock on the revenue side caused by a long
period of low international prices for the region's major

Murmansk's administration expects gross regional product (GRP) to
continue moderate expansion in 2011-2013 by about 2% yoy.  The
region's economy recovered in 2010 after the economic downturn
negatively affected the region in 2009.  Fitch expects operating
balance of close to 14% of operating revenue by end-2011 and
about 14%-15% in 2012-2013.  The region's operating margin
improved to 13.6% in 2010 (2009: 3.6%) while its balance before
debt variation turned positive with a RUB2.2bn surplus (2009:
RUB3.2 billion deficit).

The Murmansk Region is home to several large mining companies and
its budget's tax concentration is significant with the aggregate
contribution of the top 10 taxpayers at 56.2% of total tax
revenue in 2010.  Fitch expects the region's budget to remain
rigid as the proportion of inflexible spending items is likely to
be at about 76%-80% of total opex in 2011-2013 (2010: 80.4%).

Fitch expects Murmansk's direct risk to decrease to about RUB5.1
billion, or a moderate 12% of current revenue, by end-2011 with
further gradual decline to about 10% of current revenue in 2012-
2013.  The region's debt stock is entirely composed of amortizing
budget loans contracted from the federal government with
maturities in 2012-2015.  Contingent liabilities by end-Q311 were
limited to its public companies' self-serviced debt.  Fitch notes
that strong liquidity might turn the region net cash positive by
end-2011 as accumulated cash reserves increased up to RUB9.9bn in

The Murmansk Region is located in the north-western part of
European Russia.  Its capital, the City of Murmansk, is 1,967 km
away from Moscow.  With a population of 0.837 million (0.6% of
the national population) it contributed 0.6% of Russia's GRP in


BANCO DE VALENCIA: Banco Mare Nostrum Mulls Takeover Bid
Ben Sills at Bloomberg News, citing ABC newspaper, reports that
Banco Mare Nostrum SA is preparing to bid for Banco de Valencia
SA, the lender seized by Spain's bank bailout fund on Nov. 21.

According to Bloomberg, the newspaper, citing people in the
banking industry without naming them, said that BMN's offer will
be dependent on an updated estimate of Banco de Valencia's
losses, estimated at EUR600 million (US$797 million) at the end
of March.

As reported by the Troubled Company Reporter-Europe on Nov. 23,
2011, Bloomberg News related that Spain plans to inject as much
as EUR1 billion (US$1.35 billion) of capital into Banco de
Valencia SA.  The Bank of Spain said in a statement on
Nov. 21 that a state rescue fund, known as FROB, will administer
the Valencia, Spain-based lender and provide it with a EUR2
billion credit line, Bloomberg disclosed.  The regulator said
that the central bank removed the administrators of Banco de
Valencia at the request of the lender's board, according to
Bloomberg.  The Bank of Spain, as cited by Bloomberg, said that
it decided to remove Banco de Valencia's managers after
determining that "it had not been able to adopt the measures
necessary to assure its viability" and having written to the bank
demanding an "urgent and definitive solution for its situation."
Banco de Valencia, which has EUR24 billion of assets, said in
November it was under inspection by the Bank of Spain and would
need more capital, Bloomberg noted.

Banco de Valencia is 27% owned by Banco Financiero y de Ahorros
SA, the holding company that controls Bankia, Spain's third-
biggest bank.

SANTANDER HIPOTECARIO: Fitch Affirms C Rating on Class F Tranche
Fitch Ratings has affirmed all eight tranches of Santander
Hipotecario 3, FTA and removed the Rating Watch Negative from all
tranches rated above 'CCCsf', as follows:

  -- Class A1 (ISIN ES0338093000) affirmed at 'BBsf'; off RWN;
     Stable Outlook assigned

  -- Class A2 (ISIN ES0338093018) affirmed at 'BBsf'; off RWN;
     Stable Outlook assigned

  -- Class A3 (ISIN ES0338093026) affirmed at 'BBsf'; off RWN;
     Stable Outlook assigned

  -- Class B (ISIN ES0338093034) affirmed at 'Bsf'; off RWN;
     Stable Outlook assigned

  -- Class C (ISIN ES0338093042) affirmed at 'CCCsf'; Recovery
     Estimate 50%

  -- Class D (ISIN ES0338093059) affirmed at 'CCsf'; Recovery
     Estimate 0%

  -- Class E (ISIN ES0338093067) affirmed at 'CCsf'; Recovery
     Estimate 0%

  -- Class F (ISIN ES0338093075) affirmed at 'Csf'; Recovery
     Estimate 0%

The notes were placed on Rating Watch Negative on 31 May 2011 due
to concerns over the level of recoveries associated with
defaulted loans.  The agency confirms that it has received the
information on properties that have undergone foreclosure
procedures, as well as loans that are currently in the process of
foreclosure.  Fitch understands that the properties that are
currently on the balance sheet of the special purpose vehicle
(SPV) are taken to auction and that in most cases the only bidder
is Banco Santander ('AA-'/Negative/'F1+').  The data implies that
most of the assets were sold at discounts of over 40% to initial
valuation, in line with Fitch's assumptions at the time of the
last rating action. For this reason the agency has affirmed the
current ratings and removed the RWN.

The announcement of the liquidation of Santander Hipotecario 4 by
Santander Titulizacion triggered concerns that, under the
transaction documentation, management companies (gestoras) have
the ability to liquidate securitizations without the consent of
noteholders.  Fitch understands that the notes of Santander
Hipotecaria 4 were called due to an imbalance between the assets
and the liabilities, which in the view of the gestora, was not
reversible.  There are a number of Spanish transactions with
similarly significant outstanding technical principal
deficiencies, creating the circumstances for those SPVs to also
be liquidated.  Such actions may, however, leave the gestoras
exposed to legal actions by the noteholders, since permanent
imbalances are subject to interpretation and so such liquidations
are likely to remain limited to cases where the originator is the
sole holder of the notes.  Based on the current circumstances,
Fitch has not factored the potential liquidation of Santander
Hipotecario 3 into its ratings analysis.


T.C. ZIRAAT: Fitch Affirms LT Foreign Currency IDR at 'BB+'
Fitch Ratings has revised the Outlook to Stable from Positive on
the Long-term (LT) foreign currency (FC) and local currency (LC)
Issuer Default Ratings (IDRs) of 15 Turkish banks and financial
institutions.  This follows similar action taken on the LT FC and
LT LC IDRs of the Republic of Turkey announced on 24 November

The IDRs and Outlooks of T. C. Ziraat Bankasi A.S., Turkiye Halk
Bankasi A.S., Turkiye Vakiflar Bankasi T.A.O. and Turkiye
Kalkinma Bankasi A.S. are equalised with those of the Turkish
sovereign, reflecting the fact that the banks are state-owned or

The IDRs of Yapi ve Kredi Bankasi A.S. (Yapi Kredi), Turk Ekonomi
Bankasi A.S. (TEB) and Denizbank A.S. incorporate potential
support from more highly-rated foreign shareholders, namely
Unicredit S.p.A. ('A' Rating Watch Negative(RWN)), BNP Paribas
('AA-'/RWN) and Dexia ('A+'/Stable).  The RWN on Denizbank's
'BBB' Long-term local currency IDR reflects the potential for
this rating to be downgraded if Dexia sells the bank to a lowly-
rated new owner.  However, any downgrade is likely to be limited
to one notch, to the level of the bank's 'bbb-' Viability Rating

The IDRs of Turkiye Is Bankasi A.S. (Isbank), Turkiye Garanti
Bankasi A.S. (Garanti) and Akbank T.A.S. (Akbank) are driven by
their standalone financial strength, reflected in their 'bbb-'
VRs. Isbank, Garanti and Akbank are leading private sector
Turkish banks.  Together, they control a domestic market share of
around 38%.  Isbank has traditionally been the largest amongst
its peers and this continues to be the case, in terms of assets,
equity and branch network size.  Akbank's asset quality and
capital ratios continue to be the strongest amongst its peers,
while Garanti displays the highest profitability ratios.

Given the banks' strong position in the local banking sector,
Fitch expects them to benefit from the opportunities arising from
medium-term growth in Turkey's economy.  Fitch's base case is
that GDP growth will slow to 2.2% in 2012 before returning to
4.5% in 2013, close to potential.  However, Turkey's operating
environment remains volatile and this has the potential to impact
the banking sector's performance.  Given the close correlation
between the performance of the banking sector and the operating
environment, there is limited potential for the banks' Long-term
IDRs to be revised upwards without similar action being taken on
Turkey's sovereign ratings.

Turkey's banking sector is well capitalized, profitable, liquid,
and moderate in size in relation to GDP. Non-performing loans are
low, the loan/deposit ratio is 99.5% and there is minimal foreign
currency lending to households.  However, loan growth in the
sector has been rapid, up 25% in 9M11 and 32% in 2010.  Isbank,
Gartanti and Akbank are all expanding lending, particularly to
the high margin retail and SME segments.  Net interest margins
are being compressed, reflecting competition, increased reserve
requirements on deposits and the prevailing low interest rate
environment in Turkey.  Margins for the three banks have tumbled
to an average of 2.4% in H111 from 4.2% in 2010.

Retail deposit growth has slowed in the sector but Isbank,
Garanti and Akbank remain largely funded by retail deposits,
displaying loans/deposits ratios of around 100%.  The three banks
remain well capitalised.  The Fitch core capital/weighted risks
ratios of these banks (Isbank: 14.51%, Garanti 15.36% and Akbank:
16.83%) at H111 allsupport future growth.

All three banks' asset quality indicators are robust.  Impaired
loan ratios for all three banks are below the 2.9% sector average
at end-June 2011 (Isbank: 2.6%, Garanti 2.1% and Akbank 1.7%).
Including general and specific impairment reserves, coverage is
well in excess of 100% for all three banks

Fitch believes the three banks are well placed to deal with the
challenges faced by the sector.  Management is versatile and
efforts to reprice loans are already resulting in a gradual
improvement in margins.  The continued opening of branches should
boost deposit inflow and the ability of some banks to tap the
international capital markets for, albeit modest, amounts of
medium-term funding is providing funding diversification.
Liquidity ratios are sound, supported by well-diversified and
stable retail deposit bases and large portfolios of Turkish
government securities, which are repoable with the Turkish
Central Bank.  Fitch has a high opinion of Turkey's bank
regulators, which have been proactive and are proving efficient
in ensuring that the country's banking sector remains robust.

The IDRs and National ratings of certain subsidiaries of Isbank,
Garanti and Akbank are equalized with those of their parents,
reflecting close integration and strategic importance.  Turkiye
Sinai Kalkinma Bankasi A.S. (TSKB) is strategically important to
Isbank which holds a 50.1% stake in the bank.  TSKB's ratings
reflect the support it could expect to receive from Isbank, if

Rating actions are as follows:
T. C. Ziraat Bankasi A.S., Turkiye Halk Bankasi A.S., Turkiye
Vakiflar Bankasi T.A.O., Turkiye Kalkinma Bankasi A.S.:

  -- Long-term foreign currency (LTFC) IDR: affirmed at 'BB+';
     Outlook revised to Stable from Positive

  -- Long-term local currency (LTLC) IDR: affirmed at 'BB+';
     Outlook revised to Stable from Positive

  -- Short-term (ST) FC and LC IDR: affirmed at 'B'

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: affirmed at 'BB+'

  -- National Long-term Rating: affirmed at 'AA+(tur)'; Outlook

  -- Viability Rating: 'bb+' unaffected

  -- Individual rating: 'C/D' unaffected

Denizbank A.S.

  -- LTFC IDR: affirmed at 'BBB-'; Outlook revised to Stable from

  -- LTLC IDR: 'BBB', RW changed to Negative from Evolving

  -- ST FC and LC IDR: affirmed at 'F3'

  -- Support Rating: '2', maintained on RWN

  -- National Long-term Rating: affirmed at 'AAA(tur)'; Outlook

Yapi ve Kredi Bankasi A.S. (Yapi Kredi), Turk Ekonomi Bankasi
A.S. (TEB):

  -- LTFC IDR: affirmed at 'BBB-'; Outlook revised to Stable from

  -- LTLC IDR: affirmed at 'BBB' Outlook revised to Stable from

  -- ST FC and LC IDR: affirmed at 'F3'

  -- Support Rating: affirmed at '2'

  -- National Long-term Rating: affirmed at 'AAA(tur)'; Outlook

The Viability Ratings and Individual Ratings of Denizbank, Yapi
Kredi and TEB, listed below, are unaffected.

Yapi ve Kredi Bankasi A.S. and Denizbank A.S.

  -- Viability Rating: 'bbb-' unaffected
  -- Individual Rating: 'C' unaffected

Turk Ekonomi Bankasi A.S.

  -- Viability Rating: 'bb+' unaffected
  -- Individual Rating: 'C/D' unaffected

TEB's subordinated debt issue rated by Fitch is affirmed at BBB-.

Turkiye Is Bankasi A.S., Turkiye Garanti Bankasi A.S., Akbank

  -- LTFC IDR: affirmed at 'BBB-'; Outlook revised to Stable from

  -- LTLC IDR: affirmed at 'BBB-'; Outlook revised to Stable from

  -- ST FC and LC IDR: affirmed at 'F3'

  -- Viability Rating: affirmed at 'bbb-'

  -- Individual Rating: affirmed at 'C'

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: affirmed at 'BB'

  -- National Long-term Rating: affirmed at 'AAA(tur)'; Outlook

  -- Senior unsecured debt: affirmed at 'BBB-'

Turkiye Sinai Kalkinma Bankasi A.S.

  -- Long-term foreign and local currency IDR: affirmed at 'BB+';
     Outlook Revised to Stable from Positive

  -- Short-term foreign currency and local currency IDR: affirmed
     at 'B'

  -- National Long-term rating: affirmed at 'AA+(tur)' Outlook

  -- Support Rating: affirmed at '3'

  -- Individual Rating: 'C/D' unaffected

Is Yatirim Menkul Degerler A.S.

  -- National Long-term rating: affirmed at 'AAA(tur)' Outlook

Is Finansal Kiralama A.S.

  -- Long-term foreign and local currency IDR: affirmed at 'BBB-'

  -- Outlook Revised to Stable from Positive

  -- Short-term foreign currency and local currency IDR: affirmed
     at 'F3'

  -- National Long-term rating: affirmed at 'AAA(tur)'; Outlook

  -- Support Rating: affirmed at '2'

Garanti Finansal Kiralama A.S.

  -- Long-term foreign and local currency IDR: affirmed at BBB-

  -- Outlook Revised to Stable from Positive

  -- Short-term foreign currency and local currency IDR: affirmed
     at 'F3'

  -- National Long-term rating: affirmed at 'AAA(tur)'; Outlook

  -- Support Rating: affirmed at '2'

Ak Finansal Kiralama A.S.

  -- Long-term foreign and local currency IDR: affirmed at BBB-

  -- Outlook Revised to Stable from Positive

  -- Short-term foreign currency and local currency IDR: affirmed
     at 'F3'

  -- National Long-term rating: affirmed at 'AAA(tur)'; Outlook

  -- Support Rating: affirmed at '2'

U N I T E D   K I N G D O M

AUSTIN-SMITH:LORD: Creditors Extend CVA Deadline to December 2
Neil Hodgson at Liverpool Daily Post reports that architect
Austin-Smith:Lord (ASL) has won a reprieve in its battle for
survival, after creditors agreed an extension to a deadline for
its proposal for a company voluntary arrangement (CVA).

The group, which has a city base at the Port of Liverpool
Building, had until Monday to reach a deal with creditors to
avoid insolvency proceedings, Liverpool Daily Post discloses.
But the deadline has been moved to this Friday, December 2, after
ASL received a proposal of interest from a third party to assist
with funding and future work, Liverpool Daily Post notes.

ASL appealed to creditor last month to consider a CVA, after
payments worth GBP11.3 million from an Abu Dhabi client dried up,
Liverpool Daily Post recounts.

"We are giving the received proposal serious consideration and
assessing the merits of the offer for the practice, the project
and our creditors," Liverpool Daily Post quotes ASL partner Neil
Chapman as saying.

Mr. Chapman, as cited by Liverpool Daily Post, said 24 jobs split
between ASL's Liverpool and Manchester offices have been
unaffected by the fall-out from the Abu Dhabi contract, adding:
"We have had tremendous support from all our creditors."

Austin-Smith:Lord is an architectural firm.

CONSOLIDATED MINERAL: Moody's Reviews 'B2' CFR for Downgrade
Moody's Investors Service has placed the B2 corporate family
rating and bond rating of Consolidated Minerals under review for
possible downgrade.

Ratings Rationale

The agency's decision to initiate a review for downgrade follows
Consmin's weaker than expected financial performance in 2011,
which Moody's expects to continue over the coming quarters given
protracted manganese price weakness and deteriorating market
fundamentals. In particular, Moody's is concerned about the
company's ability to adequately manage a further deterioration in
manganese prices and/or unfavorable foreign exchange rate
movements given limited commodity and geographic diversification,
relatively high cash cost structure (especially in Australia),
and limited short term opportunities to reduce costs -- partially
offset by a strong liquidity position.

The agency has placed the ratings under review for downgrade
whilst it monitors the evolution in manganese pricing, and
expects to gain a clearer picture of the credit profile of the
group following management's confirmation of the 2012 budget --
due in the coming quarter. Moody's will also pay particular
attention to the liquidity position of the group whilst the
rating is under review, and closely monitor the renewal of the
Australian working capital facilities.

Moody's highlights that announced cost-saving measures, such as
switching to an owner-operator model, will require significant
capex investment in 2012 -- potentially leading to negative free
cash flows -- and will not yield any major cost saving benefits
until 2013. At the same time, the agency is concerned that such
measures may be insufficient to mitigate the negative fundamental
trends which continue to affect the manganese market. In
particular, the rating agency does not foresee any major catalyst
for a reversal of the weak manganese pricing environment given
overcapacity issues, rising port inventories in China, strong
price competition from peers, and a weakening outlook for steel.

Positively however, liquidity at Consmin remains strong, with no
major scheduled debt repayments until 2016 (other than the 12-
month bank facilities), US$206 million of cash on the balance
sheet as of September 2011, and access to c. US$49 million of
availability under existing working capital facilities. Moody's
notes however that working capital facilities are only short-
term, 12-month lines of credit - with the Ghanaian facilities
maturing between October and December 2012, and Australian
facilities (still in the process of being renewed) due to mature
in January 2012. The agency also notes that, in addition to the
high proportion of related party transactions (negotiated and
priced on an arms-length basis but still accounting for 25% of
revenue), Consmin holds a material proportion of its available
cash at shareholder controlled entities (notably Privat Bank,
where US$66 million was held in September 2011).

Additional positive features recognized by Moody's include
Consmin's: (i) access to high grade manganese reserves in
Australia, and more specialty carbonate ore in Ghana (which is
especially desirable for electrolytic manganese metal producers;
(ii) successful track record of increasing reserve life at its
Australian operations, with reserve life increased to circa 6
years (from 5 years) in September 2011 - albeit reserve life
remains very thin compared to peers across the mining sector; and
(iii) relatively conservative balance sheet structure.

Further negative pressure on the rating would be triggered by:
(i) a material weakening in the liquidity position of the
company; (ii) a deterioration in the group's operating cash flow
generation leading to sustained negative free cash flows and a
(CFO-dividends)/Debt ratio significantly below 10%; and (iii)
further weakening of manganese market pricing leading to EBITDA
margin sustainably below 15%.

While upward rating pressure is unlikely in the short term,
positive pressure could be applied should Consmin: (i) further
extend reserve life in Australia; (ii) improve its cost structure
on a sustainable basis; (iii) diversify its metals offering; (iv)
demonstrate a prolonged track record of operating performance
with reported Gross debt/EBITDA below 2.5x; and (v) maintain a
conservative financial and dividend policy with a (CFO-
dividends)/Debt ratio sustainably above 10%.

The principal methodology used in rating Consolidated Minerals
was the Global Mining Industry Methodology published in May 2009.

Consolidated Minerals, headquartered in Jersey is a leading
producer of manganese ore. Mining operations are carried out from
Australia (Woodie Woodie mine) and from Ghana (Nsuta mine). The
group also mines chromite ore at its Coobina mine in Australia.
Consolidated Minerals was formed through the acquisition of CMPL
in 2007/08 for a total consideration of US$1.1 billion and
subsequently combined with Ghana International Manganese
Corporation. Consolidated Minerals is wholly owned by Gennady
Bogolyubov, an Ukrainian citizen. In 2010, Consolidated Minerals
reported sales of US$640 million.

CONVERS SPORTS: In Administration, Football Club Chairman Resigns
Graeme Bailey at SkySports reports that Convers Sports
Initiatives has been placed into administration with its owner
Vladimir Antonov resigning as chairman and director of Portsmouth
Football Club with immediate effect.

CSI only took control of Pompey on June 1, but now the club is
again facing a far from certain future, according to SkySports.

As reported in Troubled Company Reporter-Europe on March 1, 2010,
Bloomberg News said that Portsmouth Football went into
administration after U.K. authorities tried to force its closure
over unpaid taxes.  UHY Hacker Young Michael Kiely, Peter Kubik
and Andrew Andronikou were appointed joint administrators to the
company and the football club.

SkySports notes that CSI has been placed into administration due
to the investigation of Mr. Antonov, who is accused of asset
stripping at Bankas Snoras, and he is now under arrest and
subject to extradition proceedings.

TCR-EUR on Nov. 25, 2011, citing BBC News, reported that a
Europe-wide arrest warrant has been issued for Mr. Antonov
because Lithuanian prosecutors want to question him as part of an
investigation into alleged asset stripping at Bankas Snoras AB.
The prosecutors are also seeking his business partner Raimondas
Baranauskas since both are former managers and shareholders of
the bank and deny any wrongdoing, according to BBC News.

The football club issued a statement stating: " . . . . as a
result of issues relating to Vladimir Antonov and Snoras Bank:
Portsmouth Football Club (2010) Limited - the company that
operates PFC is not in administration and continues to trade.
The club has funding in place for the short term, but will now be
seeking alternative investment for its longer-term requirements."

Peter Kubik and Andrew Andronikou of UHY Hacker Young are
appointed as administrators.

The administrators can be reached at:

          Peter Kubik
          Andrew Andronikou
          Quadrant House
          4 Thomas More Square
          London, E1W 1YW
          Tel: 020 7216 4600
          Fax: 020 7767 2600

                     About Portsmouth Football

Portsmouth Football Club Ltd. --
-- operated Portsmouth FC, a professional soccer team that plays
in the English Premier League.  Established in 1898, the club
boasted two FA Cups, its last in 2008, and two first division
championships.  Portsmouth FC's home ground is at Fratton Park;
the football team is known to supporters as Pompey.  Dubai
businessman Sulaiman Al-Fahim purchased the club from Alexandre
Gaydamak in 2009.  A French businessman of Russian decent,
Gaydamak had controlled Portsmouth Football Club since 2006.

DECO 6: Fitch Affirms 'CCsf' Rating on GBP24.1-Mil. Class D Notes
Fitch Ratings has downgraded DECO 6 - UK Large Loan 2 plc's class
A2 and class B note classes as follows:

  -- GBP174.3m class A2 due July 2017 (XS0235683223) downgraded
     to 'BBBsf' from 'Asf'; Outlook Negative

  -- GBP34.4m class B due July 2017 (XS0235683736) downgraded to
     'BBsf' from 'BBBsf'; Outlook Negative

  -- GBP39.3m class C due July 2017 (XS0235684114) affirmed at
     'CCCsf'; calculated Recovery Estimates (RE) 10%

  -- GBP24.1m class D due July 2017 (XS0235684544) affirmed at
     'CCsf'; calculated RE 0%

The downgrades are driven by the continued deterioration in
performance of the Mapeley loan, which is secured over an aging
portfolio of 20 primarily public sector-occupied properties.
This portfolio is highly exposed to rising vacancy, and although
this has always featured in rating analysis, conditions are
continuing to weaken.  The Delta Point (Croydon) property, which
accounted for almost 28% of the portfolio's passing rent, is now
fully vacant, joining another two assets in this category.
Another asset is 72% vacant.

In Fitch's view, there is a growing risk of prolonged falls in
income, with the potential for structural vacancy to increase,
and greater capital expenditure and void periods to secure new
income.  Given that 50% of rental income is currently let to the
Secretary of the State and 16% let to City of Edinburgh Council,
forthcoming Government spending cuts may encourage non-renewals
upon lease expiries.  The loan was transferred to special
servicing in October 2011 following the interest coverage ratio
(ICR) falling below the covenanted 1.15x (and down to 0.99x
currently).  The Negative Outlooks are primarily driven by these

The Brunel Shopping Centre loan was also transferred to special
servicing in June 2011.  The operating advisor initiated a
replacement of the special servicer with Solutus Advisors Ltd on
14 September 2011.  Driven by the secondary quality and location
of the asset, as well as an expectation that retail sales are
likely to be depressed for the foreseeable future, Fitch
estimates a loan to value ratio (LTV) of 140%, in excess of the
reported LTV 116% (off an October 2011 valuation).

In October 2011, the St Enoch Shopping Centre loan prepaid, six
months prior to its maturity.  The GBP95 million of loan proceeds
were allocated on a fully sequential basis, with the result that
the class A1 notes were paid in full, in addition to some 16% of
the class A2 notes being repaid.

EUROPEAN PRIME: Fitch Affirms GBP1-Mil. Class D Notes at 'Dsf'
Fitch has upgraded and affirmed European Prime Real Estate No. 1
plc's notes as follows:

  -- GBP114.7m Class A (XS0225549301) affirmed at 'AAsf'; Outlook
     revised to Stable from Negative

  -- GBP10.2m Class B (XS0225549566) upgraded to 'Asf' from
     'BBBsf'; Outlook Stable

  -- GBP15.1m Class C (XS0225549723) upgraded to 'Asf' from
     'CCCsf'; Outlook Stable

  -- GBP1m Class D (XS0225550143) affirmed at 'Dsf'; Recovery
     Estimate RE 100%

The rating action reflects the high quality of the sole remaining
loan in the pool following the repayment of the GBP95 million St.
Enoch Shopping Centre loan in October 2011.  The remaining GBP141
million Lloyds Building loan is backed by a grade A office
property located in the City of London. The asset is fully let to
Society of Lloyd's ('A'/Stable) with a remaining lease term of
9.4 years.  The loan maturity is in April 2012.

The reported loan-to-value ratio (LTV) is low at 61%, based on a
2004 valuation.  Fitch estimates the current LTV to be slightly
higher, at 71%.  Given the high quality of the asset securing the
loan, its strong cash-flow and low leverage, Fitch considers the
borrower's refinancing prospects to be strong, as reflected in
the rating action.

The Class D notes' rating is maintained. The notes are not
accruing interest on a written-down amount of GBP8.5m, reflecting
losses realized to date on three loans.  The recovery estimate of
100% is based on the expected recovery of principal not already
written-down once the Lloyds Building loan repays.

HAMKORBANK: Moody's Assigns 'E+' Bank Financial Strength Rating
Moody's Investors Service has assigned these global-scale ratings
to Hamkorbank (HB):

- E+ standalone bank financial strength rating (BFSR), mapping
   to B1 on the long-term scale;

- B1 long-term and Not Prime short-term local-currency deposit
   ratings; and

- B2 long-term and Not Prime short-term foreign-currency deposit

All ratings carry a stable outlook. Moody's assessment is
primarily based on HB's IFRS financial statements for 2010
(audited) and local GAAP financial statements for H1 2011

Ratings Rationale

According to Moody's, HB's ratings are constrained by (i) the
volatile operating environment in Uzbekistan; (ii) the bank's low
overall visibility in the market, with market shares of 2%-3% in
total assets and customer deposits; and (iii) HB's increased
appetite for holding non-core banking assets -- investment
property accounted for close to 20% of Tier 1 equity as of
June 1, 2011.

At the same time, the ratings reflect (i) the bank's adequate
corporate governance and risk culture, which is supported by the
involvement of the International Finance Corporation (a 15%
stakeholder) in the bank's Supervisory Board as well as its
Strategy and Risk Committees; (ii) its niche franchise in SME
lending and money transfer business, especially in the City of
Andizhan in the Region of Fergana; (iii) the granular nature of
the bank's credit risk, with its top-20 borrowers accounting for
less than 100% of Tier 1 Capital as of January 1, 2011. The
rating also reflects its healthy financial metrics, including its
robust profitability (2010: return on average assets of 4% and
return on equity of 30.5%), solid capital adequacy (2010: total
CAR of 15.8%) and good asset quality, with non-performing assets
accounting for less than 5% of gross loans as of 31 December

HB's B1 local and foreign-currency deposit ratings do not
incorporate any systemic support and are based solely on the
bank's B1 standalone credit strength.

According to Moody's, improving corporate and retail franchise
reflected in growing market shares, together with the maintenance
of healthy financial metrics as well as the granularity of the
loan book could lead to an upgrade of the bank's BFSR and thus
deposit rating in the longer term.

Conversely, a deterioration in asset quality, profitability and
capital adequacy as well as further increase in non-core assets
could result in a downgrade in the bank's deposit ratings.

Principal Methodologies

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

Headquartered in Andizhan, Uzbekistan, HB reported unaudited
local GAAP total assets of UZS463 billion (US$266 million) as of
June 30 and net income of UZS8.5 billion (US$5 million) for the
six months then ended.

PARAMOUNT: Cafe Fish Buys Livebait Out of Administration
Emma Eversham at Big Hospitality reports that Cafe Fish
restaurant owner, Richard Muir, has acquired Manchester-based
Livebait from its parent, Paramount Restaurant, which went into

Livebait is the first to be acquired under Mr. Muir's new company
SBG Restaurant that he has set up with ex-Paramount Executive
Chairman William Rollason, according to Big Hospitality.

The report notes that four Livebaits were left being run by

Big Hospitality notes that Paramount Restaurant's eight Chez
Gerard sites were immediately bought by Raymond Blanc's Brassiere
Bar Co.

The report says that staff employed at Livebait, including
General Manager Ellen O'Donnel will remain, while former Yachts
of Seabourn Executive Chef de Cousime Dave Spanner will join to
oversee the kitchen and re-launch a new menu.

As reported in the Troubled Company Reporter-Europe on Nov. 29,
2011, Big Hospitality, citing M&C News, said that Paramount
Restaurants has been placed into administration around the same
time that the company exchanged on the sale of its eight Chez
Gerard sites chain to Brasserie Blance.  Deloitte, which was
hired by the company in August to advise it on its future
options, is believed to have been appointed as administrators,
according to Big Hospitality.  The report noted that the sale of
the Chez Gerard sites leaves Paramount with 18 Brasserie Gerards,
four Livebaits and three Bertorellis.  Big Hospitality disclosed
that deals are progressing on a number of the sites, which will
continue to trade up to and over Christmas.

Paramount Restaurants is the operator of the Brasserie Gerard and
Bertorelli brands.

SAAB GB: Goes Into Administration in London for Legal Protection
Swedish Automobile N.V. and Saab Automobile AB said that Saab
Great Britain Ltd filed for administration with the High Court in

Saab GB said that following months of intensive negotiations and
a long period of suspended production and tight liquidity
situation at Saab Automobile AB, a voluntary decision has been
taken to place the company into administration.

With immediate effect, David Dunckley and Daniel Taylor of Grant
Thornton UK LLP have been appointed joint administrators of Saab

The board of Saab GB is of the opinion that administration gives
the company and creditors the necessary legal protection until
the required funding for the company has been secured.  The
appointment of the administrator is effected by the directors of
Saab GB.  Once appointed, the administrator will take on the
management powers of the directors.

Swan received a conditional funding commitment from Youngman for
the payment of the wages of the employees of Saab Automobile and
for the continuation of the activities of Saab GB.  Saab
Automobile and Saab GB have not yet received this funding.

Swan continues discussions with potential investors regarding the
sale of Saab Automobile AB and Saab Great Britain Limited.

The administrators can be reached at:

         David Dunckley
         Daniel Taylor
         London, Finsbury Square
         30 Finsbury Square
         London EC2P 2YU
         Tel: +44 (0)20 7383 5100
         Fax: +44 (0)20 7184 4301

Saab GB, a 100% subsidiary of Swedish Automobile N.V., has
exclusive rights to distribute Saab cars and parts in the UK.  It
employs 55 people in Milton Keynes and distributes the cars and
parts to a 58 strong dealer network across the UK of which 20 are
"Saab only" sites.  Saab City, a wholly owned subsidiary of Saab
GB employing 65 people, operates two Saab motor dealerships, one
in Wapping and a smaller site in Fulham.


* EUROPE: Ailing Banks' Short-Term Creditors May Face Losses
Jim Brunsden and Ben Moshinsky at Bloomberg News report that
short-term creditors of failing European banks would face losses
as a last resort under draft plans from the European Union to
allow cross-border lenders to fail without the need for a
taxpayer bailout.

Regulators should only write down debt of a less than one-year
maturity or derivatives if losses from longer-term debt aren't
"sufficient to restore the capital of the institution and enable
it to operate as a going concern," according to a draft European
Commission proposal obtained by Bloomberg News.

EU Financial Services Commissioner Michel Barnier had delayed
proposing the law, which was originally scheduled to be released
in September, because of market turbulence, Bloomberg notes.

According to Bloomberg, under the draft proposals, the EU plan
would help "maintain the supply of liquidity and minimize the
negative externalities on the interbank market and derivatives
market" in the event of the collapse of a bank.

Banks would have to pay into national funds to help cover the
costs of bank failure, under the measures, Bloomberg says.
Bloomberg notes that these funds should have financing equivalent
to the higher of 1.5% of deposits that are guaranteed by law or
0.3% of banks' liabilities other than "own funds of the

The draft says that the euro area's bail-out fund, the European
Financial Stability Facility, could be used to top up these funds
in exceptional circumstances, Bloomberg discloses.

Banks will have to hold minimum amounts of longer-term funding to
prevent them from exploiting the commission's plan to shield
short-term debt from writedowns, Bloomberg states.

According to Bloomberg, the document says that lenders should be
forced at all times to hold funding "with an original maturity of
at least one year" equivalent to a minimum of 10% of their

The draft proposal exempts secured liabilities, as well as so-
called repos and other liabilities secured by collateral, from
the debt-writedown measures, Bloomberg notes.

According to the draft, bonuses aren't protected under the plan
and may be clawed back to shore up bank capital, Bloomberg

The proposals also include requirements for banks to draw up so-
called living wills showing how they could be wound down if they
fail, Bloomberg states.

* EUROPE: Euro Finance Ministers Agree to Boost Bailout Fund
Gregory Viscusi and Josiane Kremer at Bloomberg News report that
euro-area finance ministers approved enhancements to their
bailout fund while backing off setting a target for how much
firepower they plan to muster to stem a growing debt crisis.

After a series of stop-gap accords failed to protect Italy and
Spain from widening bond yield, the ministers met in Brussels
under growing pressure from U.S. leaders and financial markets to
find ways to boost the European Financial Stability Facility's
effectiveness, Bloomberg relates.  According to Bloomberg, they
agreed to create certificates that could guarantee up to 30% of
new issues from troubled euro-area governments and to create
investment vehicles that would boost the EFSF's firepower to
intervene in primary and secondary bond markets.

EFSF Chief Executive Officer Klaus Regling, as cited by
Bloomberg, said that the bond certificates could be up and
running next month, while the investment vehicles could be
operational in January.

* Upcoming Meetings, Conferences and Seminars

Dec. 1-3, 2011
     23rd Annual Winter Leadership Conference
        La Quinta Resort & Spa, La Quinta, Calif.
           Contact: 1-703-739-0800;

April 3-5, 2012
     TMA Spring Conference
        Grand Hyatt Atlanta, Atlanta, Ga.

Apr. 19-22, 2012
     Annual Spring Meeting
        Gaylord National Resort & Convention Center,
        National Harbor, Md.
           Contact: 1-703-739-0800;

July 14-17, 2012
     Southeast Bankruptcy Workshop
        The Ritz-Carlton Amelia Island, Amelia Island, Fla.
           Contact: 1-703-739-0800;

Aug. 2-4, 2012
     Mid-Atlantic Bankruptcy Workshop
        Hyatt Regency Chesapeake Bay, Cambridge, Md.
           Contact: 1-703-739-0800;

November 1-3, 2012
     TMA Annual Convention
        Westin Copley Place, Boston, Mass.

Nov. 29 - Dec. 2, 2012
     Winter Leadership Conference
        JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
           Contact: 1-703-739-0800;

April 10-12, 2013
     TMA Spring Conference
        JW Marriott Chicago, Chicago, Ill.

October 3-5, 2013
     TMA Annual Convention
        Marriott Wardman Park, Washington, D.C.


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

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

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

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


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

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

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

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

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

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

                 * * * End of Transmission * * *