TCREUR_Public/111207.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Wednesday, December 7, 2011, Vol. 12, No. 242

                            Headlines



A Z E R B A I J A N

TECHNIKABANK: Moody's Affirms 'E+' BFSR; Outlook Stable


B U L G A R I A

BDZ: PM to Put Business Into Deliberate Bankruptcy, Unions Say


D E N M A R K

TORM: Gets Debt Reprieve From Creditors Until January 15


F R A N C E

CMA CGM: Moody's Downgrades Corporate Family Rating to 'B2'
REMY COINTREAU: Moody's Raises CFR to 'Ba1'; Outlook Stable


G E R M A N Y

NOVEMBER AG: Liquidity Problems Prompt Insolvency Filing
TRIER STEEL: Files Application for Insolvency


G R E E C E

* GREECE: IMF Approves US$2.2-Bil. Emergency Loan Tranche


H U N G A R Y

* HUNGARY: Mandatory Liquidations Up 27% in November 2011


I R E L A N D

TBS INTERNATIONAL: Banks Extend Forbearance Until Dec. 15


I T A L Y

SEAT PAGINE: Moody's Lowers Corporate Family Rating to 'Ca'
* ITALY: Government Unveils EUR30 Billion Austerity Plan


K A Z A K H S T A N

BTA BANK: May Seek Capital Injection From Government
DBK LEASING: Moody's Changes Outlook on Ba3 Rating to Negative


N E T H E R L A N D S

CHAPEL 2003-1: Moody's Cuts Rating on EUR39MM B Notes to 'Ca'
MARCO POLO SEATRADE: Has New Schedules of Assets and Liabilities


R O M A N I A

UCM RESITA: To File for Insolvency; Board Draws Up Rescue Plan


R U S S I A

NATIXIS BANK: Moody's Affirms Standalone BFSR at 'E+'


S P A I N

BANCO DE VALENCIA: Moody's Downgrades Standalone BFSR to 'E+'
BANCO DE VALENCIA: Moody's Reviews Mortgage Covered Bonds


S W E D E N

SAAB AUTOMOBILE: Owner in Talks to Sell Stake to Chinese Bank


U N I T E D   K I N G D O M

COGEFI PACIFIQUE: Manager Closes Asia Fund
CRUSADER HOLIDAYS: In Administration, Cancels Holiday Bookings
CUMBRIAN SEAFOOD: Lion Capital Buys Firm Out of Administration
DIXONS RETAIL: Moody's Affirms 'B1' Corporate Family Rating
ENTERPRISE INNS: Moody's Lowers Corporate Family Rating to 'B3'

GALA ELECTRIC: Moody's Downgrades CFR to Caa1; Outlook Stable
GP WILLIAMS: Assets Value Collapsed by 80%
PORTSMOUTH FOOTBALL: CEO Says Players Will Get Paid
TARGET: Bishop Fleming Buys Office Out of Administration
YELL GROUP: Seeks Compromise with Lenders on Debt Restructuring

* UK: Expert Warns of Rising Business Insolvencies
* UK: HMRC Argues "Football Creditors' Rule" is Unfair


                            *********


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A Z E R B A I J A N
===================


TECHNIKABANK: Moody's Affirms 'E+' BFSR; Outlook Stable
-------------------------------------------------------
Moody's Investors Service has affirmed Technikabank's E+
standalone bank financial strength rating (BFSR) and B3 long term
and Not Prime short-term local and foreign currency deposit
ratings. The outlook on all the bank's long-term ratings is
stable.

Moody's affirmation of Technikabank's ratings is based on the
bank's audited financial statements for 2010 prepared under IFRS,
and its Q3 2011 unaudited results prepared under local GAAP.

Ratings Rationale

Moody's decision to affirm all Technikabank's ratings takes into
account the weakness in the bank's financial performance,
particularly its high level of problem loans which remain under-
provisioned.

According to the Technikabank's audited IFRS, the level of loans
90+ days overdue represented around 18% of gross loans, as well
as a high level (26% of gross loans) of renegotiated loans, as at
31 December 2010. Moody's expects the bank's asset quality to
remain under pressure in 2012.

The level of loan loss reserves (LLR) created under IFRS
accounted for 11.4% of gross loans at year-end 2010, covering
only 64% of loans overdue by more than 90 days. Moody's says that
a potential increase of impairment provisions will likely exert
negative pressure on Technikabank's profitability in 2011 and
2012. At the same time, Moody's expects the bank's profitability
to benefit from healthy net interest margin and the growing level
of higher-yielding assets.

Moody's observes that Technikabank's high appetite for credit
risk is demonstrated by the bank's high exposure to construction
and related sectors which exceeded 90% of its Tier 1 capital at
year-end 2010, which in Moody's opinion represents a high risk.

Moody's also observes that Technikabank's funding base is largely
short-term and its liquidity buffer has decreased in 2011 as the
bank re-allocated a part of its low-yielding liquid assets to
finance new lending growth.

Technikabank's capitalization is currently adequate, with the
regulatory total capital ratio exceeding 15% at Q32011, which is
largely sufficient to absorb expected medium-term credit losses
under Moody's stress-test scenario.

Moody's explained that a positive rating action is possible in
the medium to long term if Technikabank improves its asset
quality, maintains adequate liquidity position and decreases
industry concentration in its loan book . Conversely, downward
pressure on Technikabank's ratings could be exerted as a result
of (i) any material adverse changes in the bank's risk profile,
particularly any significant impairment of the bank's liquidity
position, and (ii) failure to maintain control over its asset
quality.

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.

Domiciled in Baku, Azerbaijan, Technikabank reported as of
December 31, 2010, total assets of US$614 million, and
shareholders' equity of US$84 million, and net profit of
US$10.5 million, according to audited IFRS.


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


BDZ: PM to Put Business Into Deliberate Bankruptcy, Unions Say
--------------------------------------------------------------
According to FOCUS News Agency, the United Striking Committee of
the Confederation of Independent Trade Unions in Bulgaria (CITUB)
and the Podkrepa Labour Confederation said, "The management of
the Bulgarian State Railways (BDZ), headed by Transport Minister
Ivaylo Moskovski, postpone the negotiations with the protesters,
stating some ungrounded argument that they are going to receive
instructions from Finance Minister Simeon Dyankov."

FOCUS News notes the BDZ trade unions said that "this is evidence
that the deputy prime minister is trying to take the helm and
impose his own destructive ideas not only in the agricultural,
energy and social sectors bur also in the transport sector."

"The retracement of the negotiations aims at bringing the company
to a deliberate bankruptcy so as to sell the BDZ - Freight
Services for pennies to already known investor and through the
bankruptcy of the rest of the companies to sack not 2,000 but all
workers and create new structures," FOCUS News quote the unions
as saying.

As reported by the Troubled Company Reporter-Europe on Nov. 28,
2011, FOCUS News said that Bulgarian Transport Minister Ivaylo
Moskovski is to negotiate deferrals with the creditors of the
Bulgarian State Railways (BDZ) over the state of the company.  In
a separate report, Novinite.com related that Vladimir Vladimirov,
Chairman of the Board of Directors of BDZ Holding, said the
company can only last ten days on strike.  Novinite.com disclosed
that in an interview for the Bulgarian National Television (BNT),
Mr. Vladimirov warned that if the protests lasted longer, the
company will lose its customers permanently and could go
bankrupt.  Mr. Vladimirov also informed that BDZ's creditors had
stepped up pressure on the company's management over the strike,
Novinite.com noted.  BDZ employees have said they are set to
strike every day from 8:00 a.m. until 4:00 p.m. until they
resolve their differences with the government and at least reach
a compromise, according to Novinite.com.  November 25 marked the
second day of the nationwide strike of Bulgarian railway workers,
Novinite.com disclosed.

Established in 1885, The Bulgarian State Railways, commonly known
as BDZ, is Bulgaria's state railway company and the largest
railway carrier in the country.  The company's headquarters are
located in the capital Sofia.


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


TORM: Gets Debt Reprieve From Creditors Until January 15
--------------------------------------------------------
Robert Wright at The Financial Times reports that creditors of
Torm allowed the company to waive many of its loan terms and stop
making loan repayments until at least until January 15.

According to the FT, a group of three of the company's lending
banks -- Danske Bank, Danish Ship Finance and Nordea -- also
announced that they had formed a committee to negotiate a
solution to the problems of the company, which said on
November 17 it needed US$300 million in new capital.

Torm, like other tanker operators, is struggling in the face of a
decline in tanker earnings brought on by a significant oversupply
of ships, the FT discloses.  The company also took on significant
extra debt in 2007 to finance the purchase of its share of OMI, a
US-listed tanker operator that it took over jointly with Teekay,
another US-listed tanker operator, the FT recounts.  Torm's net
interest-bearing debt at the end of the third quarter was
US$1.84 billion, the FT says.

The family has not yet said whether it would take up its rights
under any new rights issue, the FT notes.

Torm is a Danish oil tanker operator.  The company operates about
140 tankers for oil products such as petrol and 10 ships for
carrying dry bulk commodities such as iron ore.  It is majority
owned by the Greek Panayotides shipping family.


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


CMA CGM: Moody's Downgrades Corporate Family Rating to 'B2'
-----------------------------------------------------------
Moody's Investors Service has downgraded CMA CGM's corporate
family rating (CFR) and probability of default rating (PDR) to B2
from B1. Concurrently, Moody's has downgraded to Caa1 from B3 CMA
CGM's EUR325 million and US$475 million worth of senior unsecured
notes maturing in 2019 and 2017, respectively. The outlook is
negative.

Ratings Rationale

The downgrade was triggered by CMA CGM's weak performance for the
third quarter. As a result, 2011 will be significantly weaker
than estimated by Moody's last September translating into credit
metrics that are likely to be very weak for the category at year
end. This is linked to the poor performance of the industry
during its peak season (between September and October) caused by
the oversupply of vessels on the water that slashed freight rates
to a very low level. The agency further commented that the rating
still incorporates an assumption that industry conditions would
not further worsen and that actually freight rates recover, at
least modestly, in the last weeks of the year as well as in 2012,
following the withdrawal of capacity currently underway on the
main trade lanes.

These developments partly reflect the highly competitive
structure of the industry and the concerns over increased
capacity coming on stream. This has exerted pressure on operators
to expand their market shares, which makes difficult for
companies in the sector, including; CMA CGM to pass on the
material cost increases acknowledged in the first 9 months of the
year, despite good traffic volumes.

Fierce competition exists between the main players in the
industry, which remains cyclical and over-reliant on short-term
contracts (this, in turn, limits market-revenue visibility).
These factors have credit-negative implications for the ratings
of container shipping companies, because they have high operating
leverage and are therefore highly sensitivity to operating cash-
flow shifts.

However, Moody's continues to acknowledge that CMA CGM has a
strong business profile with solid market shares globally, as
well as a distinctive position in some secondary lanes that are
more profitable. CMA-CGM also successfully strengthened its
capital base early in 2011 and sold certain assets sold recently.
This in particular boosted its liquidity. Moreover, all the major
new deliveries of ships that are scheduled before end of 2012 are
fully financed.

The negative outlook reflects Moody's concerns that the container
market's operating conditions will remain difficult in 2012; CMA
CGM's performance will therefore remain under pressure. The
material slowdown in the recovery from the 2008-09 global
financial crisis and recession has prompted Moody's to revise
downwards its growth forecasts for most G-20 economies in
November 2011. In addition, it now seems likely that traffic
volumes in 2012 will be under pressure compared with both the
current trend and Moody's previous expectations. Moody's notes
that lower demand could exert both immediate and long-term
pressure on CMA CGM and the industry as a whole, given the amount
of new deliveries scheduled for the coming years. Moody's
acknowledges that CMA CGM has recently obtained approval from its
lender to waive the covenant test due at year-end 2011 but the
next semi-annual periods could remain challenging if the current
market conditions were not to improve substantially; the current
B2 rating captures Moody's assumption that CMA CGM's lenders will
continue to remain supportive of CMA CGM.

What Could Change the Rating Up/Down

Downward pressure on the rating could result from lack of short
term improvement in market conditions leading to financial
leverage failing to decrease below 7x; or (ii) EBIT/interest
expense coverage failing to increase materially above 1.0x, both
by the end of 2012. Furthermore downward pressure on the ratings
could result from liquidity pressures and/or failure to restore
headroom under covenants.

Conversely, upward pressure could materialize as a result of (i)
a reduction in CMA CGM's financial leverage sustainably and
materially below 6.x; and (ii) an increase in its EBIT/to
interest coverage above 1.5x on sustainable basis.

Principal Methodologies

The principal methodology used in rating CMA CGM S.A. was the
Global Shipping Industry Methodology published in December 2009.
Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June.

Headquartered in Marseilles, France, CMA CGM is the third-largest
container shipping company in the world (measured in twenty-foot
equivalent units, or TEU). CMA CGM recorded last-12-months
revenues of US$14.8 billion as of the end of June 2011, and
employed approximately 17,500 employees worldwide. As of
June 2011, CMA CGM's fleet amounted to 390 container ships (297
chartered-in and 93 owned), with a total capacity of 1.283
million TEU.


REMY COINTREAU: Moody's Raises CFR to 'Ba1'; Outlook Stable
-----------------------------------------------------------
Moody's Investors Service has upgraded the corporate family
rating (CFR) and probability of default rating (PDR) of Remy
Cointreau S.A. to Ba1 from Ba2. The outlook on the ratings is
stable.

Ratings Rationale

"[The] rating action reflects Remy's enhanced credit profile
resulting from (i) its reduced leverage underpinned by a solid
improvement in operating performance and the disposal of its
loss-making champagne operations in July 2011 (ii) Moody's
expectation that Remy will continue to post further growth in
profits even in a scenario of weaker economic growth" says
Knut Slatten, Moody's lead analyst for Remy.

On November 29, 2011, Remy reported its results for the six
months to September 2011 and posted organic growth of 18.1% and
30.7% for sales and current operating profit, respectively. The
solid improvement in operating performance is to a large degree
supported by the favorable growth trends for Cognac, in
particular in China, accounting for 78% of the group's profit in
the six months to September 2011. Enhanced by the company's
effort of targeting the premium segment, Moody's would expect
Remy to continue benefiting from the favorable growth trends in
the Chinese market and notes the Cognac category displayed a
certain resilience during the economic crisis in 2008-2009. These
positive fundamentals, alongside Remy's de-leveraging efforts in
recent years and the disposal of its Champagne activities, have
resulted in a reduction of Net Debt to EUR114 million at the end
of September 2011. Moody's estimates the group's debt to EBITDA
ratio around 2x at the end of September 2011 down from 2.6x in
March 2011 and 4.1x a year before.

Moody's considers Remy's large concentration upon Cognac to
potentially expose the company to a certain level of business
risk, however, Moody's understands that management aims at re-
investing parts of the proceeds received from the disposal of its
Champagne business into corporate activity which could at some
point enhance the group's diversification profile. While the
company benefits from a certain flexibility within the rating
category leaving room for bolt on acquisitions, Moody's does
however caution that Remy Cointreau's Ba1 rating does not factor
in any transformative debt-financed acquisitions.

The stable outlook incorporates Moody's expectation that Remy
will maintain its debt to EBITDA ratio around 3.0x on a
sustainable basis. The stable outlook also takes into account
expectations of a financial policy balancing the interest of
debt-holders with those of shareholders. Moody's assumes the
company will maintain access to committed credit lines beyond the
maturity of its current syndicated credit line which -- in
combination with expectations of continued strong free cash flow
generation -- should allow the group to maintain its solid
liquidity profile.

Longer term, Moody's could consider positive pressure on the
rating if Remy further diversifies its business profile and
builds up a track record of a balanced stakeholder policy, so
that it manages its Debt to EBITDA ratio towards 2.0x.

The rating could be lowered should the operational performance
deteriorate significantly or the group embarks upon larger
acquisitions or share buybacks so that leverage exceeds 3.5x.

The Ba1 (LGD4-63%) rating of the EUR205 million issued by Remy
Cointreau S.A. recognizes that trade claims at the level of
operating subsidiaries are substantial in size and have higher
structural seniority in the debt structure of Remy. The assigned
expected loss given default rate for the notes at 63% is higher
than the average rate for all obligations of the entire group
(50% in line with Moody's standard assumption for corporates with
bank and bond debt). The notes are not notched as a reflection of
(i) the investment-grade debt structure (ii) the CFR's strong
positioning in the Ba1 category and (iii) an assumption that any
future gearing of the balance sheet, if any, will materialize
through debt issuances at the parent group level.

The principal methodology used in rating Remy Cointreau S.A. was
the Global Alcoholic Beverage Rating Methodology published in
August 2009. Other methodologies used include Loss Given Default
for Speculative-Grade Non-Financial Companies in the U.S., Canada
and EMEA published in June 2009.


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


NOVEMBER AG: Liquidity Problems Prompt Insolvency Filing
--------------------------------------------------------
November AG on Dec. 5 filed for opening of insolvency proceedings
at the Amtsgericht Koeln (District Court of Cologne) due to
threatening illiquidity.

Headquartered in Erlangen, Germany, november AG --
http://www.november.de/-- specializes in bio- and
nanotechnology.  It is engaged in the market and customer-
orientated transfer of product developments, as well as an
expansion of existing product and technology portfolios, through
cooperation agreements and financial stakes in other companies,
which return a high yield.


TRIER STEEL: Files Application for Insolvency
---------------------------------------------
Steel Guru reports that the management of the Trier Steel Work
has asked the district court Dortmund for the TSW to file for
bankruptcy.

According to the report, the works council was informed that the
company has filed an application for insolvency at the district
court in Dortmund.

Steel Guru relates that Roland Cub, IG Metall Agents for the
region of Trier, said that "We are very surprised and hope that
the court Trier checks whether it is responsible for the steel
plant. So you could have hit a provisional liquidator, who knows
the situation well. Who now uses the Dortmund court is not yet
known."

Mr. Cub said its partners have been trying for some time to sell
the TSW, but the efforts have clearly failed, SteelGuru relays.

Trier Steel Works employs approximately 300 workers.


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


* GREECE: IMF Approves US$2.2-Bil. Emergency Loan Tranche
---------------------------------------------------------
Ian Talley at Dow Jones Newswires reports that the International
Monetary Fund on Monday approved a US$2.2 billion tranche of its
emergency loan program for Greece, paving the way for the debt-
ridden country to avoid default.

According to Dow Jones, the IMF board approval of the program
allows the fund to immediately disburse financing to Athens,
buying time for Europe to prevent a wider spread of the debt
crisis into the rest of the euro zone.

Greece has substantial achievements to its credit, including a
large fiscal deficit reduction.  However, the program is in a
difficult phase, with structural reforms proceeding slowly, the
economy weak, and the external environment deteriorating," IMF
chief Christine Lagarde, as cited by Dow Jones, said later Monday
in a statement.  "This has warranted a substantial downward
revision to the medium-term outlook."

The tranche had been delayed as Greece had failed to meet many of
its basic loan program conditions and as concerns increased about
the ability of the Greek government to turn its economy around,
Dow Jones notes.


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H U N G A R Y
=============


* HUNGARY: Mandatory Liquidations Up 27% in November 2011
---------------------------------------------------------
MTI-Econews, citing company information provider, reports that
the number of mandatory liquidations initiated against Hungarian
companies came to 2,055 in November, up 27% from a year earlier,
and up almost 24% from the previous month.

According to MTI, the number of voluntary liquidations amounted
to 1,743 in November, up from 1,023 from a year earlier, but down
442 from the previous month.


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


TBS INTERNATIONAL: Banks Extend Forbearance Until Dec. 15
---------------------------------------------------------
TBS International plc previously announced in September 2011
that, with the agreement of the requisite lenders under its
various financing facilities, it would not make certain principal
payments due on its financing facilities for the period through
Dec. 15, 2011.  On Dec. 2, 2011, the Company is announced that it
has reached agreements in principle with its lenders to
restructure the Company's debt.  To permit documentation of the
agreements in principle, the lenders have agreed to an extension
of the forbearance period through Feb. 15, 2012.  The agreements
in principle, subject to final documentation and approvals,
provide for the continued operation of the Company's business
under current management, continued timely payment in full of all
trade creditors, satisfaction of the claims of certain lenders,
restructuring of the terms of debt held by the Company's key
lenders and no residual value for the existing common and
preferred stock.

During the extended forbearance period, the lenders will forbear
from exercising their rights and remedies which arise from the
Company's failure to make interest and principal payments when
due and any failure to comply with certain of its financial
covenants, and the Company and its lenders expect to finalize
agreements with respect to the Company's financial obligations
and ongoing defaults under its various financing facilities.

Joseph E. Royce, Chairman, chief executive Officer and president,
commented: "We are pleased to have reached these agreements in
principle because we believe it will ensure continued,
uninterrupted operation of the Company's fleet and the Company's
continued ability to meet its customers' needs on a timely and
efficient basis."

                    About TBS International plc

Dublin, Ireland-based TBS International plc (NASDAQ: TBSI)
-- http://www.tbsship.com/-- provides worldwide shipping
solutions to a diverse client base of industrial shippers through
its Five Star Service: ocean transportation, projects,
operations, port services and strategic planning.  The TBS
shipping network operates liner, parcel and dry bulk services,
supported by a fleet of multipurpose tweendeckers and
handysize/handymax bulk carriers, including specialized heavy-
lift vessels and newbuild tonnage.  TBS has developed its
franchise around key trade routes between Latin America and
China, Japan and South Korea, as well as select ports in North
America, Africa, the Caribbean and the Middle East.

The Company reported a net loss of US$247.76 million on US$411.83
million of total revenue for the year ended Dec. 31, 2010,
compared with a net loss of US$67.04 million on US$302.51 million
of total revenue during the prior year.

The Company also reported a net loss of US$55.16 million on
US$282.64 million of total revenue for the nine months ended
Sept. 30, 2011, compared with a net loss of US$29.21 million on
US$311.06 million of total revenue for the same period a year
ago.

The Company's balance sheet at Sept. 30, 2011, showed
US$659.28 million in total assets, US$409.77 million in total
liabilities and US$249.51 million in total shareholders' equity.

PricewaterhouseCoopers LLP expressed substantial doubt about the
Company's ability to continue as a going concern.  PwC believes
that the Company will not be in compliance with the financial
covenants under its credit facilities during 2011, which under
the agreements would make the debt callable.  According to PwC,
this has created uncertainty regarding the Company's ability to
fulfill its financial commitments as they become due.

As reported in the Troubled Company Reporter on Feb. 8, 2011, TBS
International on Jan. 31, 2011, announced that it had entered
into amendments to its credit facilities with all of its lenders,
including AIG Commercial Equipment, Commerzbank AG, Berenberg
Bank and Credit Suisse and syndicates led by Bank of America,
N.A., The Royal Bank of Scotland plc and DVB Group Merchant Bank
(the "Credit Facilities").  The amendments restructure the
Company's debt obligations by revising the principal repayment
schedules under the Credit Facilities, waiving any existing
defaults, revising the financial covenants, including covenants
related to the Company's consolidated leverage ratio,
consolidated interest coverage ratio and minimum cash balance,
and modifying other terms of the Credit Facilities.

The Company currently expects to be in compliance with all
financial covenants and other terms of the amended Credit
Facilities through maturity.

As a condition to the restructuring of the Company's credit
facilities, three significant shareholders who also are key
members of TBS' management agreed on Jan. 25, 2011, to provide up
to US$10 million of new equity in the form of Series B Preference
Shares and deposited funds in an escrow account to facilitate
satisfaction of this obligation.  In partial satisfaction of this
obligation, on Jan. 28, 2011, these significant shareholders
purchased an aggregate of 30,000 of the Company's Series B
Preference Shares at US$100 per share directly from TBS in a
private placement.


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I T A L Y
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SEAT PAGINE: Moody's Lowers Corporate Family Rating to 'Ca'
-----------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating
(CFR) of Seat Pagine Gialle SpA to Ca, and the probability of
default rating (PDR) to Ca/LD. It also downgraded the rating on
the EUR1.3 billion senior notes of Lighthouse International
Company S.A. to C from Ca. The rating outlook remains negative.

Ratings Rationale

The rating actions and the assignment of the /LD to the PDR
follow the payment default on the coupon of the Lighthouse notes
that was due on October 31, and at the end of the 30 day grace
period. Moody's expects to remove the "/LD" suffix after
approximately three business days.

SEAT is currently in the process of collecting consents from the
company's various creditors, with a view to proceeding with its
proposed consensual restructuring of the group's capital
structure. Moody's notes that the current proposed terms and
conditions include: (i) the exchange of EUR1.2 billion of the
Lighthouse notes against a 90% ownership in the restructured
group; (ii) the issuance of EUR100 million of pari passu senior
secured notes in exchange for the residual EUR100 million
Lighthouse notes; and (iii) the extension of existing senior bank
facilities to 2015 and 2016.

Although debt restructuring discussions are still ongoing, the
downgrade of the CFR to Ca reflects Moody's belief that a
consensual outcome should be achieved, resulting also in a group
loss given default of around 50%. The downgrade of the Lighthouse
notes to C reflects their expected recovery being less than 10%.
The rating on the EUR750 million senior secured notes due 2017
remains at Caa1, given Moody's base case expectation that these
notes will not be impaired in this capital restructuring.

Subsequent to any future restructuring, Moody's anticipates that
the ratings of SEAT should be upgraded to reflect the materially
reduced debt burden. It is not yet possible to opine definitely
on post-restructuring ratings given that the terms of the
restructuring and also SEAT's subsequent liquidity profile are
not finalized. However, Moody's continues to see SEAT's turn-
around as very challenging, particularly at times of economic
uncertainty within the Italian SME market.

The negative outlook reflects the residual uncertainty regarding
the possibility that a consensual agreement may not be achieved,
potentially leading to lower group recoveries.

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

Headquartered in Turin, Italy, SEAT is the leading publisher and
provider of directory services in Italy and, through its wholly-
owned subsidiary, TDL, is the number three directories publisher
in the UK. SEAT also has a presence in Germany through Telegate,
the second-largest player in the German directory-assistance
market.


* ITALY: Government Unveils EUR30 Billion Austerity Plan
--------------------------------------------------------
Chiara Vasarri and Andrew Davis at Bloomberg News report that
Italian Prime Minister Mario Monti announced EUR30 billion
(US$40 billion) of austerity and growth measures as he seeks to
cut the euro-region's second biggest debt and prevent a breakup
of the euro.

Mr. Monti's Cabinet in Rome passed the measures a day earlier
than planned as the new prime minister rushed to reassure
investors he is serious about taming a debt of almost
EUR1.9 trillion, Bloomberg notes.  According to Bloomberg, the
package includes more than EUR12 billion in spending cuts.

Mr. Monti, sworn in on Nov. 16 after Silvio Berlusconi resigned,
is under pressure to move quickly as a selloff of the country's
bonds sent borrowing costs surging last month past the 7%
threshold that led Greece, Ireland, and Portugal to seek aid,
Bloomberg recounts.  Italy, Bloomberg says, is seen as too big to
bail out with EUR450 billion of bonds maturing in the next three
years, more than the current size of the EU's rescue fund.


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


BTA BANK: May Seek Capital Injection From Government
----------------------------------------------------
Nariman Gizitdinov at Bloomberg News reports that BTA Bank may
ask the Kazakhstan government to back its second debt
restructuring or provide additional state funds to help avert
bankruptcy.

According to Bloomberg, two people with direct knowledge of the
matter said that BTA Bank may seek a capital injection of more
than US$4 billion.

The people, as cited by Bloomberg, said that Lazard Freres & Co.,
which acted as an adviser to BTA during its debt reorganization
in 2009, assessed the cost of another restructuring last month.

Bloomberg relates that the people said investors may be asked to
absorb an estimated loss of about 80% on BTA bonds.

The bank is preparing to submit a bailout plan to a new
government that will be formed following parliamentary elections
set for the middle of January, the people said, adding that BTA
is considering either a restructuring or a capital increase or
both, Bloomberg notes.

The Almaty-based lender faced a capital shortage of KZT162
billion (US$1.1 billion) under international accounting standards
as of Nov. 1 after it set aside more money to cover souring
loans, Bloomberg says, citing a statement e-mailed on Nov. 28.
The bank has a total of US$5.2 billion of debt, Bloomberg data
show.

Kazakhstan sovereign-wealth fund Samruk-Kazyna took over BTA Bank
in February 2009, two months before the nation's largest lender
at the time defaulted on $12 billion of debt, Bloomberg recounts.
It won 92% creditor approval for a restructuring plan in May
2010, Bloomberg discloses.  The state holds an 81.5% stake in
BTA.

Samruk-Kazyna Deputy Chief Executive Officer Aidan Karibzhanov on
Nov. 30 said that the fund is considering more state aid for the
troubled lender and may buy back its bonds, Bloomberg recounts.

                          About BTA Bank

BTA Bank AO (BTA Bank JSC), formerly Bank TuranAlem AO --
http://bta.kz/-- is a Kazakhstan-based financial institution,
which is involved in the provision of banking and financial
products for private and corporate clients.


DBK LEASING: Moody's Changes Outlook on Ba3 Rating to Negative
--------------------------------------------------------------
Moody's Investors Service has changed to negative from stable the
outlook on the following ratings of DBK Leasing: Ba3 long-term
local and foreign currency issuer ratings, the provisional (P)Ba3
local currency rating assigned to the issuer's KZT15 billion
(US$102 million) domestic bond program, and the Ba3 local
currency debt rating assigned to the issuer's senior unsecured
KZT5 billion (US$34 million) Medium-Term Note (MTN) issued under
this program. DBK Leasing's short-term local and foreign currency
ratings of Not Prime remained unchanged.

Moody's affirmation of DBK Leasing's ratings is based on the
issuer's audited financial statements for 2010 prepared under
IFRS, and its H1 2011 unaudited results prepared under local
GAAP.

Ratings Rationale

"Moody's decision to change the outlook on DBK Leasing's ratings
to negative from stable is driven by the significant reduction in
its safety buffers in the form of capital and loan loss reserves
that materialized over time as a result of worsening asset
quality and still weak profitability," says Maxim Bogdashkin, a
Moody's Assistant Vice-President and lead analyst for the issuer.

By H1 2011, DBK Leasing's underdeveloped underwriting practices
and seasoning leasing portfolio, in conjunction with a recently
challenging economic environment in Kazakhstan, led to
significant asset quality deterioration. Moody's observes that as
at H1 2011, non-performing loans (defined as 90+ days overdue)
accounted for 35% of total loans compared to only 7.3% of total
loans as at YE2009. As a result, the issuer's safety buffers have
diminished, with the ratio of shareholders' equity to total
assets dropping to 17% as at H1 2011 (YE2010: 22% and YE2009:
24%), while the level of loan loss reserves remained largely
inadequate at around 8% of total loans.

However, Moody's notes that DBK Leasing's ratings continue to
benefit from very high probability of ongoing and extraordinary
support from its parent (state-owned Development Bank of
Kazakhstan, Baa3, stable outlook) as DBK Leasing: (i) is fully
owned and more than 80% funded by the parent, (ii) fits the
parent's strategy, thereby complementing its core business, and
(iii) is comparatively small and thus more easily supported by
the parent.

According to DBK Leasing and its parent, the former could receive
additional capital in 2012 that would somewhat strengthen its
capital cushion. If this does not materialize or if the resultant
safety buffers in the form of capital and loan loss reserves are
insufficient compared with the issuer's asset quality at that
time, further negative pressure would be exerted on DBK Leasing's
ratings which could lead to a downgrade.

Principal Methodologies

The methodologies used in this rating were Analyzing The Credit
Risks Of Finance Companies published in October 2000, and
Incorporation of Joint-Default Analysis into Moody's Bank
Ratings: A Refined Methodology published in March 2007.

Headquartered in Astana, Kazakhstan, DBK leasing reported total
assets of KZT35 billion (US$238 million) under unaudited IFRS as
of H1 2011. The issuer recorded a net loss of KZT3 billion (US$20
million) in H1 2011.


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


CHAPEL 2003-1: Moody's Cuts Rating on EUR39MM B Notes to 'Ca'
-------------------------------------------------------------
Moody's Investors Service downgraded the ratings of one
residential mortgage-backed securities transaction (RMBS),
Monastery 2004-1 B.V. and two asset-backed securities
transactions (ABS), Chapel 2003-1 B.V. and Chapel 2007-1 B.V. and
confirmed the ratings of one RMBS, Monastery 2006-1 B.V. All four
transactions are backed by loans originated by the now bankrupt
DSB Bank NV (DSB). The action reflects the impact of potential
compensation payments linked to DSB's lending and intermediation
practices.

Ratings Rationale

The rating action reflects the impact of compensations that will
likely be granted to borrowers by way of set off in respect to
due care claims related to DSB's lending and intermediation
practices. This impact is derived from a framework agreement
between DSB bankruptcy trustee and consumer organizations
presented in September 2011.

In its prior rating actions, Moody's had made assumptions with
regards to the amounts of compensations to be granted in respect
of due care claims. Moody's has now received more details and
clarity on these amounts and is therefore downgrading again the
notes in three transactions and closing its rating reviews.

-- INDEMNIFICATION OF BORROWERS' COMPLAINTS ON DSB LENDING
   PRACTICES (DUE CARE CLAIMS)

Several thousands of borrowers have filed complaints about DSB's
lending practices. These claims argue that due care was not
exercised by DSB when, inter alia, (i) originating the loans
(allowing too high loan to value and/or debt to income ratios);
and/or (ii) selling unnecessary or inappropriately priced
insurance products.

Due care claims are a legal matter between DSB and the borrowers,
but any claim that is granted a compensation either through a
court verdict or through a settlement between the parties exposes
securitization special purpose vehicles (SPVs) to set-off risk.

The framework agreement decided upon by DSB and consumer
organizations in September 2011 will allow borrowers to offset
compensation amounts against their outstanding loan balance and
any arrears amounts they might have. Under Dutch law, borrowers
with multiple loan parts are likely to have the right to choose
on which loan they wish to exercise their set-off rights. This
"imputation right" will likely result in a much higher incidence
of set off on consumer loans in Chapel transactions, given the
higher interest rates on these loans versus that on the first
lien mortgages backing the Monastery transactions.

ATC in its capacity of issuer counsel provided Moody's with
details on compensation arrangements contemplated in the
framework agreement per type of claim and data on the impact of
the compensation amounts for each transaction. These data assume
the imputation right is exercised.

Assuming all borrowers (a) submit their claim, (b) choose to
settle their claim through the framework agreement and not
through individual court verdict, and (c) can prove the validity
of their claim, the compensation amounts would result in losses
in percentage of current pool balance of 17.5% for Chapel 2003,
15.8% for Chapel 2007, 3.1% for Monastery 2004 and 2.1% for
Monastery 2006. The issuers could be able to claim the
compensation amounts that are set off against the loans in the
respective portfolios from the DSB bankruptcy estate. Any payout
received under such claim would constitute a (partial) recovery
of the above mentioned losses. At this stage, the timing and
amount of such potential recovery is uncertain.

As part of the action, Moody's also considered the impact of the
residual debts that are still to be allocated as losses in the
coming months, as explained in the press release published on
August 10, 2011 on www.moodys.com "Moody's downgrades DSB-
originated Dutch ABS Chapel transactions and updates on servicing
transfer".

In Chapel 2007, although in a pre-enforcement scenario the
transaction's A1 notes rank senior to its A2 notes in terms of
principal repayment, the allocation of losses would be made pro
rata in respect of these two classes of notes once loss amounts
exceed subordinated notes amounts. Therefore, Moody's has reduced
the gap in ratings between the A1 and A2 notes now that there is
a possibility that the class A notes will suffer a loss, given
the amount of set off that will potentially impact the
transaction. This reflects the possibility that the A1 notes will
not be fully amortized when losses start impacting the class A
notes.

Moody's has not updated its key modelling assumptions (expected
loss, MILAN Aaa CE, mean default rate, recovery rate and CoV)
since 10 August 2011, as only one new investor report has been
made available since this last rating action date. Uncertainty
mainly stems from (i) the final outcome of the settlement of due
care claims; (ii) the servicing transfer to Quion that is
expected to take place in May 2012; and (iii) the evolution of
the performance of the pools once the due care claims settlement
has taken place. If the settlement of due care claims deviate
significantly from the framework agreed or if servicing was not
transferred in full to Quion as planned, this could have a
negative rating impact on the rated notes.

The methodologies used in rating the Chapel transactions were
"Moody's Approach to Rating Consumer Loan ABS Transactions,"
published in July 2011 and "Historical Default Data Analysis for
ABS Transactions in EMEA," published in December 2005. The
methodologies used in rating the Monastery transactions were
"Moody's Approach to Rating RMBS in Europe, Middle East, and
Africa," published in October 2009, "Moody's Approach to Rating
Dutch RMBS," published in December 2004 and "Moody's Updated
MILAN Methodology for Rating Dutch RMBS," published in October
2009.

Other factors used in rating the Chapel transactions are
described in "The Lognormal Method Applied to ABS Analysis,"
published in July 2000.

In rating these transactions, Moody's used ABSROM to model the
cash flows and determine the loss for each tranche. The cash flow
model evaluates all default scenarios that are then weighted
considering the probabilities of the lognormal distribution
assumed for the portfolio default rate. In each default scenario,
the corresponding loss for each class of notes is calculated
given the incoming cash flows from the assets and the outgoing
payments to third parties and noteholders. Therefore, the
expected loss or EL for each tranche is the sum product of (i)
the probability of occurrence of each default scenario; and (ii)
the loss derived from the cash flow model in each default
scenario for each tranche.

As such, Moody's analysis encompasses the assessment of stressed
scenarios.

List of affected ratings

Issuer: Chapel 2003-I B.V.

   -- EUR890MM A Notes, Downgraded to B2 (sf); previously on
      Aug 10, 2011 Downgraded to Ba1 (sf) and Remained On Review
      for Possible Downgrade

   -- EUR39MM B Notes, Downgraded to Ca (sf); previously on
      Aug 10, 2011 Downgraded to Caa3 (sf) and Remained On Review
      for Possible Downgrade

Issuer: Chapel 2007 B.V.

   -- EUR321MM A1 Notes, Downgraded to Ba3 (sf); previously on
      May 31, 2011 Downgraded to Baa1 (sf) and Remained On Review
      for Possible Downgrade

   -- EUR300MM A2 Notes, Downgraded to B3 (sf); previously on
      May 31, 2011 Downgraded to Ba2 (sf) and Remained On Review
      for Possible Downgrade

   -- EUR13.8MM B Notes, Downgraded to Ca (sf); previously on
      Aug 10, 2011 Downgraded to Caa3 (sf) and Remained On Review
      for Possible Downgrade

   -- EUR23.5MM C Notes, Confirmed at Ca (sf); previously on
      Aug 10, 2011 Downgraded to Ca (sf) and Remained On Review
      for Possible Downgrade

   -- EUR17.9MM D Notes, Confirmed at Ca (sf); previously on
      May 31, 2011 Downgraded to Ca (sf) and Remained On Review
      for Possible Downgrade

Issuer: Monastery 2004-I B.V.

   -- EUR604.5MM A2 Notes, Confirmed at A2 (sf); previously on
      May 31, 2011 Downgraded to A2 (sf) and Remained On Review
      for Possible Downgrade

   -- EUR24.5MM B Notes, Confirmed at A2 (sf); previously on
      May 31, 2011 Downgraded to A2 (sf) and Remained On Review
      for Possible Downgrade

   -- EUR21.5MM C Notes, Confirmed at A3 (sf); previously on
      May 31, 2011 Downgraded to A3 (sf) and Remained On Review
      for Possible Downgrade

   -- EUR8.5MM D Notes, Confirmed at Ba2 (sf); previously on
      Aug 10, 2011 Downgraded to Ba2 (sf) and Remained On Review
      for Possible Downgrade

   -- EUR10.5MM E Notes, Confirmed at Caa2 (sf); previously on
      Aug 10, 2011 Downgraded to Caa2 (sf) and Remained On Review
      for Possible Downgrade

   -- EUR3MM F Notes, Downgraded to C (sf); previously on May 31,
      2011 Downgraded to Ca (sf) and Remained On Review for
      Possible Downgrade

   -- EUR7.5MM G Notes, Downgraded to C (sf); previously on
      May 31, 2011 Downgraded to Ca (sf) and Remained On Review
      for Possible Downgrade

Issuer: Monastery 2006-I B.V.

   -- EUR663.6MM A2 Notes, Confirmed at A2 (sf); previously on
      May 31, 2011 Downgraded to A2 (sf) and Remained On Review
      for Possible Downgrade

   -- EUR28MM B Notes, Confirmed at Baa1 (sf); previously on
      May 31, 2011 Downgraded to Baa1 (sf) and Remained On Review
      for Possible Downgrade

   -- EUR28.7MM C Notes, Confirmed at B3 (sf); previously on
      Aug 10, 2011 Downgraded to B3 (sf) and Remained On Review
      for Possible Downgrade

   -- EUR9.5MM D Notes, Confirmed at Ca (sf); previously on
      Aug 10, 2011 Downgraded to Ca (sf) and Remained On Review
      for Possible Downgrade

The lead analyst and rating office for each of the transactions
affected are generally different from the contact and office
listed at the end of this press release.


MARCO POLO SEATRADE: Has New Schedules of Assets and Liabilities
----------------------------------------------------------------
Marco Polo Seatrade B.V., et al., filed with the U.S. Bankruptcy
Court for the Southern District of New York its schedules of
assets and liabilities, disclosing:

     Name of Schedule              Assets         Liabilities
     ----------------            -----------      -----------
  A. Real Property                      US$0
  B. Personal Property         US$11,732,762
  C. Property Claimed as
     Exempt
  D. Creditors Holding
     Secured Claims                            US$255,379,190
  E. Creditors Holding
     Unsecured Priority
     Claims                                              US$0
  F. Creditors Holding
     Unsecured Non-priority
     Claims                                     US$76,453,579
                                 -----------      -----------
        TOTAL                  US$11,732,762   US$331,832,769

Seaarland Shipping Management B.V. also filed its schedules
disclosing US$7,659,698 in assets and US$1,826,557 in
liabilities.

Full-text copies of the Schedules of Assets and Debts are
available for free at:

    http://bankrupt.com/misc/MarcoPolo_sal.pdf
    http://bankrupt.com/misc/MarcoPolo_seaarlandshipping_sal.pdf

                       About Marco Polo

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

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

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

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

The cases are before Judge James M. Peck.  Evan D. Flaschen,
Esq., Robert G. Burns, Esq., and Andrew J. Schoulder, Esq., at
Bracewell & Giuliani LLP, serve as the Debtors' bankruptcy
counsel.  Kurtzman Carson Consultants LLC serves as notice and
claims agent.

Tracy Hope Davis, United States Trustee for Region 2, appointed
three members to serve on the Official Committee of Unsecured
Creditors.  The Committee has retained Blank Rome LLP as its
attorney.

Secured lender Credit Agricole Corporate and Investment Bank is
represented by Alfred E. Yudes, Jr., Esq., and Jane Freeberg
Sarma, Esq., at Watson, Farley & Williams (New York) LLP.


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


UCM RESITA: To File for Insolvency; Board Draws Up Rescue Plan
--------------------------------------------------------------
According to SeeNews, UCM Resita said on Monday that its
management has decided to file for insolvency and to reorganize
the company's operations.

UCM Resita said in a statement that its managing board will
elaborate a reorganization plan that would allow the company to
repay its debts, SeeNews relates.

The company had nearly RON1.6 billion (US$493 million/
EUR367 million) in debts at end-June, SeeNews discloses.  It cut
its nine-month net loss to RON55 million from RON67 million a
year ago, SeeNews recounts.

UCM Resita is a Romanian heavy machines maker.


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


NATIXIS BANK: Moody's Affirms Standalone BFSR at 'E+'
-----------------------------------------------------
Moody's Investors Service has affirmed these ratings of Natixis
Bank (ZAO): Ba2 long-term and Not-Prime short-term foreign and
local currency deposit ratings, and the E+ standalone bank
financial strength rating (BFSR). The outlook on the BFSR and
long-term ratings is stable.

Moody's affirmation of Natixis Bank's ratings is based on the
bank's audited financial statements for 2010 prepared under IFRS,
and its Q3 2011 unaudited results prepared under local GAAP.

Ratings Rationale

Natixis Bank's E+ BFSR, which maps to B1 on the long-term scale,
is constrained by the bank's narrow franchise in Russia --
focused on providing credit facilities to a limited number of
large corporates -- resulting in a very concentrated loan book.
The rating is also driven by Natixis Bank's historically healthy
asset quality and capitalization level, adequate risk management
practices and the wide-range of operational assistance provided
by its parent, Natixis (Aa3/Prime-1/D+, all of which carry a
stable outlook).

According to Moody's, Natixis Bank has maintained consistently
robust asset quality, which benefits from its strong risk
management, tight control from the parent and selective customer
approach in corporate banking, focusing on major local corporates
operating in Russian market.

Moody's notes that Natixis Bank's credit concentration remains
significant given the bank's focus on large corporate clients.
However, concentration risk is partially mitigated by the parent
bank's guarantees which cover around 80% of Natixis Bank's loan
portfolio. The top nine credit exposures currently exceed 500% of
Natixis Bank's Tier 1 capital, or 95% excluding the portion
guaranteed by the parent.

Moody's also observes that Natixis Bank's capitalization is
currently adequate and is largely sufficient to absorb expected
medium-term credit losses under Moody's stress-test scenario.
Natixis Bank's liquidity position has been supported by stable
funding largely provided by the parent (approximately 90% of the
total liabilities) and an adequate level of liquid assets (15% of
total assets) at September 30, 2011.

Moody's notes that the bank's deposit ratings receive a two-notch
uplift from B1 standalone credit strength, which is primarily
driven by the rating agency's assessment of a high probability of
support in case of need from Natixis Bank's controlling
shareholder Natixis. Moody's assessment of a high probability of
support is justified by, amongst other things, the full
operational control and integration between Natixis Bank and its
parent, as well as guarantees from the parent to cover the
majority of subsidiary's operations.

According to Moody's, any possible upgrade of Natixis Bank's
standalone ratings over the long term, will be contingent on the
bank's ability to (i) materially strengthen its franchise,
increasing market shares, and (ii) reduce dependence both on the
parent for funding and on core customers for revenues. The bank's
GLC deposit ratings may be upgraded following upgrade of the
parent's BFSR. Conversely, downward pressure could be exerted on
Natixis Bank's standalone ratings by any material adverse changes
in the bank's risk profile. The deposit ratings could be
downgraded if the parent's BFSR is downgraded, or if the level of
parental support were to significantly decrease.

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 Moscow, Russia, Natixis Bank reported total
audited IFRS assets of RUB16.7 billion, total shareholders'
equity of RUB2.2 billion and net income of RUB244 million for the
year ended December 31, 2010.


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


BANCO DE VALENCIA: Moody's Downgrades Standalone BFSR to 'E+'
-------------------------------------------------------------
Moody's Investors Service has downgraded Banco de Valencia's
standalone bank financial strength rating (BFSR) to E+ from D-.
The E+ standalone BSFR maps to B2 on the long-term scale. Moody's
has also downgraded the bank's preference shares to Caa3 from
Caa1. At the same time, Moody's has confirmed Banco de Valencia's
senior debt and deposit ratings at Ba2. The short term rating
remains at Not Prime. All of Banco de Valencia's ratings have a
developing outlook, except the dated subordinated debt rated Ba3
which remains on review for downgrade.

The action concludes the rating review initiated on October 28,
2011. For further details please see "Moody's downgrades Banco de
Valencia to Ba2; all ratings on review for downgrade".

Ratings Rationale

DOWNGRADE OF BANCO DE VALENCIA'S BFSR

Moody's decision to downgrade Banco de Valencia's standalone BFSR
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 EUR2 billion
credit facility provided by the state-owned fund ("FROB", Fund
for the Orderly Restructuring of the Banking System) and (ii)
weak solvency indicators when compared to Moody's calculation of
embedded expected losses in Banco de Valencia's balance sheet,
despite the EUR1 billion capital injection committed by the FROB.

On November 21, 2011, Bank of Spain intervened in Banco de
Valencia and instructed the FROB to take control of the bank,
after having committed a capital injection into the bank up to
EUR1 billion and a credit facility of EUR2 billion. The Bank of
Spain's decision to intervene in Banco de Valencia was based on
the bank's inability to immediately adopt a viable plan to raise
needed capital. The capital shortfall was revealed after the Bank
of Spain concluded an inspection on November 17, 2011 that
resulted in additional provisioning requirements of at least
EUR562 million.

Moody's believes that without the support provided by the Spanish
government via the FROB, Banco de Valencia would not be able to
face its sizable refinancing requirements over the next 12 months
given its very weak liquidity position and lack of access to
wholesale market financing. In addition, Moody's is concerned by
the bank's very weak risk absorption capacity, with very weak
solvency and profitability indicators, which has been severely
affected by the rapid deterioration of its asset portfolio.

The FROB and Bank of Spain have announced their intention to
recapitalize and stabilize Banco de Valencia with the ultimate
aim of selling it through a competitive tender.

Moody's has assigned a developing outlook to the bank's BFSR to
reflect the different rating implications for Banco de Valencia
in case the sale process is completed or if the FROB fails to
conclude it. By placing a developing outlook on Banco de
Valencia's BFSR the rating agency notes the possibility (i) for
the bank's rating to be upgraded if it is acquired by a stronger
peer; (ii) of negative rating actions (including the potential
for a multi-notch downgrade), if the resulting entity after the
sale displays a weaker credit profile than Banco de Valencia's
standalone financial strength; and (iii) of Banco de Valencia's
standalone rating being downgraded if the sale process fails to
succeed and the government weakens its current support for the
bank.

DOWNGRADE OF THE PREFERENCE SHARES

At the same time, Moody's has also downgraded the preference
shares to Caa3 from Caa1. The downgrade follows the downgrade of
the bank's BFSR; these instruments continue to be rated four
notches below the adjusted standalone rating as per Moody's
methodology for Spanish hybrids.

CONFIRMATION OF BANCO DE VALENCIA'S SENIOR DEBT AND DEPOSIT
RATINGS

In the action, Moody's has also confirmed Banco de Valencia's
debt and deposit ratings at Ba2. Following the downgrade of the
bank's BFSR, Moody's has broadened the uplift from its standalone
rating to three notches, to reflect a high likelihood of the FROB
to continue providing support to Banco de Valencia in terms of
liquidity and capital until the sale process is completed.

Moody's does not incorporate any probability of parental support
into its debt and deposit ratings from its parent Banco
Financiero y de Ahorro (BFA; Ba2 negative outlook). Despite being
the majority shareholder of Banco de Valencia with 38.6% of its
capital, BFA has not provided any type of support to its
subsidiary when this was now needed. Thus, Moody's also does not
expect the entity to receive any future support from its legal
owner nor from BFA's operating company Bankia (Baa2/D+ (mapping
to Ba1 on the long-term scale)/Prime-2, negative).

The bank's debt and deposits ratings have a developing outlook
reflecting the developing outlook of its standalone rating. In
addition, Moody's notes that Banco de Valencia'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.

BANCO DE VALENCIA'S DATED SUBORDINATED DEBT RATINGS

The ratings of Banco de Valencia's dated subordinated debt
instruments remain at Ba3. 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 ratings are on review for possible downgrade
since November 29, 2011. For further details please see "Moody's
reviews European banks' subordinated, junior and Tier 3 debt for
downgrade".

POTENTIAL TRIGGERS OF A DOWNGRADE/UPGRADE

Downward pressure would be exerted on Banco de Valencia's
standalone credit strength following (i) a further weakening of
its liquidity position; (ii) greater-than-expected deterioration
in its risk-absorption capacity and a depletion of its capital
levels; and/or (iii) weakening of the bank's franchise.

The bank's debt and deposit ratings are linked to the standalone
BFSR, and any change to the BFSR would likely also affect these
ratings. In addition, downward pressure on Banco de Valencia's
debt and deposit ratings could be exerted if the FROB fails to
provide sufficient support to the bank in terms of liquidity and
capital.

An improvement of Banco de Valencia's standalone rating could be
driven by (i) its acquisition by a stronger peer; (ii) an
improved liquidity position, with normalized access to wholesale
funding and broader diversification of its funding sources; (iii)
reduction of its real-estate and related assets; and (iv)
enhanced access to capital.

METHODOLOGY

The methodologies used in this rating were Bank Financial
Strength Ratings: Global Methodology published in February 2007,
Incorporation of Joint-Default Analysis into Moody's Bank
Ratings: A Refined Methodology published in March 2007, and
Moody's Guidelines for Rating Bank Hybrid Securities and
Subordinated Debt published in November 2009.

Headquartered in Valencia, Spain, Banco de Valencia had
EUR24 billion assets at end-June 2011.


BANCO DE VALENCIA: Moody's Reviews Mortgage Covered Bonds
---------------------------------------------------------
Moody's Investors Service has placed on review with direction
uncertain these covered bonds issued by Banco de Valencia's Baa1
mortgage covered bonds.

Ratings Rationale

The rating announcement follows Moody's assigning a developing
outlook to Banco de Valencia's Ba2 senior unsecured long-term
ratings (for further information on the rating actions taken by
Moody's Financial Institutions Group, please refer to "Moody's
downgrades Banco de Valencia's standalone ratings to E+/B2;
confirms debt ratings at Ba2, outlook developing", published on
December 2, 2011).

The developing outlook assigned to Banco de Valencia's standalone
E+ BFSR and senior debt rating ratings reflects the different
rating implications of the possible sale of the bank, in
particular if the sale process is completed, or if the FROB fails
to conclude it. The developing outlook serves to highlight the
possibility (i) for the bank's rating to be upgraded if it is
acquired by a stronger peer; (ii) of negative rating actions
(including the potential for a multi-notch downgrade), if the
resulting entity after the sale displays a weaker credit profile
than Banco de Valencia's standalone financial strength; and (iii)
of Banco de Valencia's standalone rating being downgraded if the
sale process fails to succeed and the government weakens its
current support for the bank.

The developing outlook on the issuer's senior unsecured long-term
ratings affects the covered bonds through its impact on both the
expected loss analysis and timely payment analysis.

A) EXPECTED LOSS: Under Moody's rating methodology, an issuer's
credit strength is incorporated into Moody's expected loss
analysis. Therefore, any change in the issuer's ratings changes
the expected loss on the covered bonds.

B) TIMELY PAYMENT INDICATOR: Moody's assigns a "timely payment
indicator" (TPI), which indicates the likelihood that timely
payment will be made to covered bondholders following issuer
default.

The published TPI currently assigned to the affected CH program
is "Probable".

The ratings assigned by Moody's address the expected loss posed
to investors. Moody's ratings address only the credit risks
associated with the transaction. Other non-credit risks have not
been addressed, but may have a significant effect on yield to
investors.

KEY RATING ASSUMPTIONS/FACTORS

Covered bond ratings are determined after applying a two-step
process: expected loss analysis and TPI framework analysis.

EXPECTED LOSS: Moody's determines a rating based on the expected
loss on the bond. The primary model used is Moody's Covered Bond
Model (COBOL), which determines expected loss as a function of
the issuer's probability of default, measured by the issuer's
rating, and the stressed losses on the cover pool assets
following issuer default.

The cover pool losses for Banco de Valencia's CHs are 41.7%. This
is based on Moody's most recent modelling and is an estimate of
the losses Moody's currently models if Banco de Valencia
defaults. Cover pool losses can be split between Market Risk of
20.9% and Collateral Risk of 20.8%. Market Risk measures losses
as a result of refinancing risk and risks related to interest-
rate and currency mismatches (these losses may also include
certain legal risks). Collateral Risk measures losses resulting
directly from the credit quality of the assets in the cover pool.
Collateral Risk is derived from the Collateral Score, which for
this program is currently 31.1%.

For further details on Cover Pool Losses, Collateral Risk, Market
Risk, Collateral Score and TPI Leeway across all covered bond
programs rated by Moody's please refer to "Moody's EMEA Covered
Bonds Monitoring Overview", published quarterly. These figures
are based on the latest data that has been analyzed by Moody's
and are subject to change over time. Quarterly these numbers are
updated in Performance Overview published by Moody's.

TPI FRAMEWORK: Moody's assigns a "timely payment indicator"
(TPI), which indicates the likelihood that timely payment will be
made to covered bondholders following issuer default.

For Banco de Valencia's mortgage covered bonds, Moody's has
assigned a TPI of Probable.

SENSITIVITY ANALYSIS

The robustness of a covered bond rating largely depends on the
credit strength of the issuer.

A multiple-notch downgrade of the covered bonds might occur in
certain limited circumstances. Some examples might be (i) a
sovereign downgrade negatively affecting both the issuer's senior
unsecured rating and the TPI; (ii) a multiple-notch downgrade of
the issuer; or (iii) a material reduction of the value of the
cover pool.

RATING METHODOLOGY

The principal methodology used in this rating was "Moody's Rating
Approach to Covered Bonds" published in March 2010.


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


SAAB AUTOMOBILE: Owner in Talks to Sell Stake to Chinese Bank
-------------------------------------------------------------
Bloomberg News reports that Swedish Automobile NV, the owner of
Saab Automobile, said it's in talks to sell a stake to an
unidentified Chinese Bank to keep the carmaker in business.

According to Bloomberg, Swedish Automobile said in a statement on
Monday that the talks also involve China's Zhejiang Youngman
Lotus Automobile Co. to enable Saab to pay November wages and
continue its reorganization.  It said that the outcome of the
negotiations is uncertain and an agreement would be subject to
approval by stakeholders, Bloomberg notes.

The statement followed a Reuters report on Monday that said
Youngman and Saab's owner agreed that Bank of China Ltd. (3988)
would join as part-owner of the carmaker, Bloomberg recounts.
The report was subsequently corrected to say a Chinese bank would
replace Pang Da Automobile Trade Co. as an investor and own just
under 50% of the carmaker together with Youngman, Bloomberg
discloses.

Pang Caiping, who heads Youngman's negotiations team for Saab, on
Monday said that the company hasn't held talks with Bank of
China, Bloomberg relates.

As reported by the Troubled Company Reporter-Europe on Nov. 17,
2011, Agence France Presse related that Saab's former owner
General Motors said it would block the transfer of technology
licenses to the two Chinese firms if they buy all of Saab,
putting what is considered the Swedish carmaker's last chance of
survival in jeopardy.

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


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


COGEFI PACIFIQUE: Manager Closes Asia Fund
------------------------------------------
Citywire.co.uk reports that Citywire AA-rated manager Lucile
Combe has had to liquidate the Cogefi Pacifique fund stating the
assets involved were too small to be properly managed.

Citywire.co.uk relates that the Asia-focused fund was launched in
January 1992 and, according to the most recent available data,
had EUR2.57 million in assets at the time of closure.

In a letter seen by Citywire Global, the report says, Cogefi
informed investors the fund would be closed due to the limited
size of the assets and it was put into liquidation on Nov. 18,
2011.

In addition, Cogefi informs investors in the letter requests for
subscriptions or redemptions would not be accepted and the
findings of an auditor's report will be made available as soon as
possible, according to Citywire.co.uk.

Citywire.co.uk notes that the fund fact sheet showed that the
Cogefi Pacifique fund lost -- 13.02% over the past five years,
while its benchmark, the MSCI AC Asia Pacific TR had fallen by
14.49% over the same period.

Despite the closure of the Cogefi Pacifique fund, Ms. Combe
continues to run the Cogefi Rendement Dynamique fund, which is a
short term European bond fund, the report adds.


CRUSADER HOLIDAYS: In Administration, Cancels Holiday Bookings
--------------------------------------------------------------
Clacton Gazette reports that Crusader Holidays has gone into
administration cancelling all booking for the holidays.

"We can confirm that Crusader Holidays has gone in to
administration. . . .  The administrators Ernest & Young, will
over the next few days, contact customers directly to ensure that
those customers who have not as yet taken their holiday will get
claim forms to claim their refund. . . .  Crusader Holidays are a
member of the Bonded Coach Holidays Scheme which protects
customers' money.  Under the scheme, customers who have already
paid for their package are protected and will get a refund in
full," the Confederation of Passenger Transport UK said in a
statement obtained by the news agency.

Crusader was founded in the 1960s as a day-trip coach company and
started running holidays in 1974.  It was founded by Roger
Staines and at one point owned 24 coaches.


CUMBRIAN SEAFOOD: Lion Capital Buys Firm Out of Administration
--------------------------------------------------------------
Owen McAteer at The Northern Echo reports that Cumbrian Seafood
Limited has been acquired by a unit of Lion Capital, the owner of
Young's Seafood Limited, out of administration.

The company went into administration on the morning of Dec. 5 and
was immediately bought in the evening, according to The Northern
Echo.  The report relates that administrators confirmed that
Cumbrian Seafood's business, customer contracts and equipment
were sold to Lion Capital's subsidiary.

Seaham-based Cumbrian Seafood Limited is a seafood supplier.  The
firm employs 378 people at Seaham, while the two remaining sites
in Whitehaven, Cumbria and Amble, Northumberland employ 117 and
79 respectively.


DIXONS RETAIL: Moody's Affirms 'B1' Corporate Family Rating
-----------------------------------------------------------
Moody's Investors Service has affirmed the B1 long-term ratings
of Dixons Retail plc, including its corporate family rating,
probability of default rating and senior unsecured rating. The
outlook is changed from stable to negative.

Ratings Rationale

The change in outlook to negative reflects mainly Moody's view
that metrics are likely to remain weakly-positioned versus
Moody's previous guidance for the current rating category at
least over the medium term, notably for gross adjusted debt to
remain close to 6.0x and for the adjusted EBITA/interest expense
ratio to remain at least at 1.5x. As of October 2011, Moody's
estimates these metrics to be at 6.0x and 1.2x, respectively.

In the six months to October 2011, the slight weakening in the
interest cover metric reflected the group's weaker underlying
operating profit, which was at GBP4.9 million in the period
versus GBP14.6 million the prior year. In the first half year,
profits were supported by lower losses in the core UK and Irish
markets, but offset by weakness predominantly in some
international markets (Greece and Italy), as well as in the e-
commerce division, which the company attributed to weakness of
the supply chain from the Japanese market as well as investing in
new activities. Although Moody's recognizes that the second half
of the year is much more significant in terms of earnings,
Moody's nevertheless believes that in the current macroeconomic
environment metrics are unlikely to improve in the near term, and
may potentially weaken further.

The company's reported debt declined to GBP421 million as of
October 2011 from GBP552 million as of April 2011, benefitting
from a repayment of debt using proceeds from a sale-leaseback
transaction, a working capital inflow and a reduction in capital
expenditure.

At this time, Moody's believes that Dixons should retain
sufficient liquidity to repay its GBP160 million notes maturing
in November 2012. As a result of the normal working capital
requirements at that time of year and the bond repayment, the
company has indicated that it might draw about GBP100 million
from its Revolving Credit Facility (RCF) in November 2012 to
repay the bond. In this case it would expect to repay the RCF
drawing shortly afterwards when the outflow in working capital
reverses.

Moody's view of adequate liquidity is based on the assumption
that operating performance will not deteriorate significantly in
coming quarters and thereby put pressure on either cash flows or
access to the RCF in terms of meeting financial covenants. Should
there be any significant weakening in trading, Moody's would
likely review the rating positioning.

The negative outlook is premised on Moody's expectation that
metrics will remain weak for the current rating at least for
several quarters in light of the macroeconomic environment in
some of the countries in which the company operates. If metrics
deteriorate further in coming quarters, or if concerns about
liquidity develop either in terms of access to the RCF or a
weakening in cash generation, this would likely be negative for
the rating. Although unlikely in the near term, Moody's believes
that positive pressure on the rating or outlook could occur if
the company's earnings were to sustainably improve, translating
into better credit metrics including a debt/EBITDA ratio
comfortably below 5.5x and an EBITA/interest expense ratio
sustained at, or higher than, 2.0x.

The principal methodology used in rating Dixons Retail plc was
the Global Retail Industry Methodology published in June 2011.
Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June.

Headquartered in Hemel Hempstead, England, Dixons Retail plc is
one of Europe's leading specialist consumer electrical retailers.
It posted revenues of GBP8.3 billion for the financial year ended
April 30, 2011.


ENTERPRISE INNS: Moody's Lowers Corporate Family Rating to 'B3'
---------------------------------------------------------------
Moody's Investors Service downgraded Enterprise Inns plc
Corporate Family Rating (CFR) to B3 from B2, the Probability of
Default Rating (PDR) to Caa1 from B3 and the instrument rating of
its GBP275 million senior secured fixed-rate notes due 2031 to B2
from Ba3. The CFR is assigned to the unconsolidated parent
company. The rating outlook remains negative.

Ratings Rationale

The downgrade of Enterprise Inns' CFR to B3 reflects Moody's
concerns on the deteriorating operating conditions in the pub
industry and that the company's financial strength metrics,
notably adjusted leverage and fixed charge coverage, are unlikely
to improve sufficiently over the medium term while the financial
flexibility of the company is increasingly restricted. The
company's like-for-like total income across the estate declined
by a further 4% in its financial year 2011, having fallen by 5%
in FY 2010 and looks likely to drop again in FY 2012 against a
background of continued reduced economic growth and consumer
confidence in the UK. Furthermore, liquidity remains in a fragile
state; ETI must amortize GBP222 million of debt by 31 December
2012, but does not generate sufficient free cash flow to meet the
repayment schedule and is obliged to continue relying on the net
proceeds of its ongoing asset sales program. While Moody's
believes that the company will be able to meet its target in view
of its successful track record of asset sales over the past two
years, Moody's nevertheless cautions that the timely reduction of
its debt carries considerable execution risk, particularly as the
lack of bank financing available to potential purchasers hinders
the process. In addition, the 4% downward valuation of the
property portfolio at financial year-end 2011 places increasing
pressure on the cushion available to maintain ETI's various loan-
to-value covenants with overall headroom shrinking.

More positively, the company's ratings are supported by ETI's
active management of a predominantly good-quality portfolio of
freehold public houses. Around half of the company's gross
profits is generated from rental income, the other half from the
wholesale profits earned by supplying beer and other drinks to
its tenants under tied leasing arrangements and income from
amusement and other machines. The large pub estate provides
geographic diversification to revenues that are underpinned by
substantive leases for 90% of the estate by number. While the
majority of its pubs perform reasonably well under the
circumstances, a minority of pubs face considerable difficulties.
The cost to support these pubs, the cost of closed pubs and the
impact of disposals has resulted in ETI's reported EBITDA margin
falling in each year since 2006, the year before the smoking ban
in public places was introduced.

Enterprise Inns' CFR is assigned to the company's unconsolidated
parent company, but Moody's ratings take into account the
financial stature of the consolidated entity because this is a
homogenous business that is operated without regard to which
corporate entity the assets belong. Furthermore, the
unconsolidated parent company, Enterprise Inns, is reliant upon
Unique Pubs to upstream dividends in order to comply with its
bank financial covenants.

The GBP275 million senior secured bond, due 2031, is rated one
notch above the CFR, but the uplift used to be two notches. The
one-notch uplift recognizes the stronger than average recovery
rate that is expected for the bonds because they benefit from a
first fixed charge and a minimum asset coverage covenant of 167%;
it also reflects the negative trends in pub values that could
lead to a materially lower recovery than previously envisaged
compared to the appraised value.

The rating outlook continues to be negative, reflecting the fact
that the distressed UK pub industry has yet to recover in light
of a sluggish economic recovery and weak consumer spending
thereby placing further downward pressure on earnings and pub
values. These conditions make it difficult for the company to
deliver improved earnings and, by extension, improved financial
metrics.

Given the rating action, there is little upward pressure at
present, but the outlook could stabilize if (i) revenues and
profitability show signs of recovery; (ii) consolidated net debt
to EBITDA falls back towards 8.0x and fixed charge cover rises
comfortably above 1.8x, both on a sustainable basis; (iii) with
no liquidity concerns, including adequate headroom under the
company's various financial covenants.

Downward pressure on the ratings could arise from (i) a
continuing deterioration of like-for-like sales and/or
profitability; (ii) a slowdown in the pace of asset sales,
indicating that it might not reach its debt repayment targets;
(iii) a weakening of the liquidity profile, including increasing
concerns over headroom tightening under any of the company's
various financial covenants; or (iv) a consolidated net debt to
EBITDA, as adjusted by Moody's, rising materially above 8.5x and
fixed charge cover falling towards 1.5x.

The principal methodology used in rating Enterprise Inns plc was
the Moody's Approach to REITs and Other Commercial Property Firms
Industry Methodology published in July 2010.

Headquartered in Solihull, Enterprise Inns plc is the second
largest pub operator in the UK. Enterprise Inns and its wholly-
owned subsidiary Unique Pub Company have a large estate of 6,289
tenanted pubs in England and Wales with a value of GBP4.6 billion
at the financial year ending September 30, 2011.


GALA ELECTRIC: Moody's Downgrades CFR to Caa1; Outlook Stable
-------------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating
and the probability of default rating of Gala Electric Casinos
Limited to Caa1 from B3. It also downgraded the rating of the
GBP275 million senior notes due 2019 to Caa3 from Caa2 and the
rating of the GBP350 million senior secured notes due 2018 issued
by Gala Group Finance Limited to B3 from B2. The rating outlook
is stable.

Ratings Rationale

The downgrades reflect GEC's weak performance so far in the year
ending September 2011, with EBITDA below Moody's expectations.
Moody's now expects leverage (as adjusted by Moody's) to end
FY2011 higher than expected at over 7x and remain above this
level throughout FY2012. It also incorporates Moody's view that
the company's near-term market outlook is uncertain following
recent soft data on the UK consumer and that continued poor
operating performance is likely to put further pressure on the
company delivering on its business plan in line with Moody's
previous expectations.

Despite strong performance in the Casino division in Q3 FY2011
with gaming gross win margin up to the highest level in three
years at 17% and improved performance in part of the Coral
division, with OTC amounts staked up 3% year-on-year (if adjusted
for the company's assumed impact of the World Cup), other parts
of the business underperformed. Coral OTC gross win % was down 1%
at 15% and machines performed behind Moody's expectations with
average gross win per machine per week only remaining flat year-
on-year at GBP890. Additionally, Remote Gambling turnover fell a
substantial 25% year-on-year following general softness in
staking levels across all sites.

Following the refinancing in May 2011, GEC reset its covenants to
allow for increased capital investment to grow the business.
However, Moody's notes that the delay in the company's business
plan will impact Moody's EBIT/Interest expense expectations for
FY2012, with the rating agency now expecting it to fall to 1x or
below depending on the UK consumer environment next year.

GEC reported cash of GBP136 million at 2 July 2011 (before
exclusions for cash in hand/floats and restricted cash of GBP48
million). In addition, GEC benefits from an undrawn GBP100
million revolving credit facility of which GBP28 million is
utilized for guarantees. Anticipated negative free cash flow in
FY2012 following an increase in capital expenditure weakens the
company's liquidity profile. However, there is no debt
amortization or refinancing requirement until the revolver
matures in 2017 and covenant compliance is currently acceptable,
although covenants tighten during FY2012.

The stable outlook reflects Moody's expectation that the company
can preserve an adequate liquidity profile.

In view of the rating action, no material upward pressure is
currently contemplated. However, there could be positive pressure
on the ratings if adjusted leverage falls towards 6.5x while
EBIT/Interest coverage is sustained comfortably above 1x, with
sufficient headroom under the bank covenants and continued access
to the RCF, resulting in a stronger overall liquidity profile for
the rated entity. The ratings could be lowered if earnings
deteriorate and weaken covenant headroom, or if other liquidity
concerns emerge.

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

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


GP WILLIAMS: Assets Value Collapsed by 80%
------------------------------------------
BBC News reports that GP Williams, a Northern Ireland house
building firm which was placed into administration by the Irish
government's National Asset Management Agency, has seen the value
of its assets collapse by 80%.

GP Williams, which built a series of upmarket developments in
County Fermanagh, failed in October, according to BBC News.  The
report relates that at that time, it owed NAMA just over
GBP35 million.

BBC News says that a Statement of Affairs filed by the firm's
directors now values its assets at just over GBP7 million.

The report discloses that those assets consist of more than 20
sites and partially-built developments in Fermanagh and north
Down.

It is not clear what the size of the haircut was on the GP
Williams loans and thus how much -- if anything -- NAMA stands to
lose due to the firm's collapse, BBC News says.

The report notes that GP Williams smaller creditors are set to
lose a total of GBP155,000.

Most of that money was owed to small businesses in Fermanagh,
including an architects' firm which stands to lose GBP98,000, BBC
News adds.

GP Williams is a A Northern Ireland house building firm.


PORTSMOUTH FOOTBALL: CEO Says Players Will Get Paid
---------------------------------------------------
Neil Allen at The News reports that Portsmouth Football Club Ltd.
Chief Executive Officer David Lampitt has assured that the
football club's players will be paid this month.

The club's future is under threat after owners Convers Sports
Initiatives went into administration, according to The News.

The report notes that joint-administrator Andrew Andronikou has
stressed Pompey's financial situation means a new investor
urgently needs to be in place before February.

As reported in the Troubled Company Reporter-Europe on Dec. 1,
2011, SkySports said 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.  Bloomberg News recalled 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.

Meanwhile, The News relates that Pompey's staff was paid
November's wages earlier this week.  Mr. Lampitt said there is
enough short-term funding to fulfill December's pay commitments,
the report relates.

                    About Portsmouth Football

Portsmouth Football Club Ltd. -- http://www.portsmouthfc.co.uk/
-- 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.


TARGET: Bishop Fleming Buys Office Out of Administration
---------------------------------------------------------
Robert Buckland at Swindon Business News reports the Bath office
of Target Accountants, which went into administration, has been
bought by accountancy firm Bishop Fleming.

The move has saved the jobs of three partners and more than 40
jobs at Target, whose offices in Bath, Reading and Rugby were
placed into administration following a financial crisis caused by
the failure of its independent financial advisory (IFA) business,
according to Swindon Business News.

"We have known of Target Accountants' ability to deliver quality
professional accountancy services from their Bath office and are
very happy that the partners and staff of the office have joined
the firm," the report quoted Bishop Fleming Managing Partner
Matthew Lee as saying.

Swindon Business News discloses that Mr. Lee said that deal
preserved the operations of Target's professional audit and
corporate tax services -- which he described as "superb" -- and
they would now run under the Bishop Fleming formula.  However,
Swindon Business News relates that the acquisition does not
include any involvement in the Target IFA operation, which caused
the failure of the business.

The business was left facing GBP6 million of claims relating to
the collapse of UK life settlements firm Keydata Investment
Services in June 2009, the report recalls.

Target was among firms being pursued by the Financial Services
Compensation Scheme (FSCS) to recoup compensation paid to Keydata
claimants, Swindon Business News notes.


YELL GROUP: Seeks Compromise with Lenders on Debt Restructuring
---------------------------------------------------------------
Anousha Sakoui at The Financial Times reports that Yell Group is
seeking a compromise with lenders over the terms of its proposed
GBP2.6 billion debt restructuring.

According to the FT, people close to the situation said that if a
deal is not reached, the company could withdraw the restructuring
plans all together.

On Monday, the company was forced to extend the deadline for a
vote on a debt restructuring after a group of lenders, holding
over a third of the debts, voted against the proposals, the FT
relates.

Analysts have raised concerns that Yell could breach covenants in
the second quarter of next year, the FT notes.

Under existing covenants, net debt should not be more than 5.72
times earnings before interest, tax, depreciation and
amortization by March 2012, the FT discloses.  The ratio
currently stands at 5.4 times, the FT states.

A person close to the company, as cited by the FT, said that the
deadline had been extended until today.

As reported by the Troubled Company Reporter-Europe on Dec. 6,
2011, the FT said that Yell needs two-thirds of debt holders to
support the plan.  To allow the management of Yell to focus on a
new strategy to turn the business round, it moved to renegotiate
its banking covenants in an effort to give it an additional 20%
headroom, the FT disclosed.  As part of the plan, it is
considering buying back GBP100 million of debt to capitalize on
the roughly 70% discount to face value at which the debts trade
in the market, the FT stated.  It also wants to reduce a GBP173
million undrawn credit facility to GBP30 million, the FT noted.
One of the investors said that the group of institutional lenders
are opposed to such a big reduction in the revolving credit
facility providers' commitment at par, when they would have to
take a 70% loss to reduce their claims, according the FT.

                         About Yell Group

Headquartered in Reading, England, Yell Group plc --
http://www.yellgroup.com/-- is an international directories
business operating in the classified advertising market through
printed, online, and phone media in the U.K. and the US.  Yell
also owns 100% of TPI (renamed "Yell Publicidad"), the largest
publisher of yellow and white pages in Spain, with operations in
certain countries in Latin America.  Yell's revenue for the
twelve months ended March 31, 2008, was GBP2,219 million and its
Adjusted EBITDA was GBP738.9 million.

                         *     *     *

As reported by the Troubled Company Reporter-Europe on Dec. 6,
2011, Standard & Poor's Ratings Services affirmed its long-term
corporate credit rating on U.K.-based classified directories
publisher Yell Group PLC at 'CC'.  S&P said the outlook remains
negative.


* UK: Expert Warns of Rising Business Insolvencies
--------------------------------------------------
The Star reports that South Yorkshire insolvency expert Steven
Fennell -- s.fennell@kennedys-law.com -- is warning of an
increase in business insolvencies in the U.K. before the economy
recovers.

Mr. Fennell, partner at law firm Kennedys, said the number of
company insolvencies in England and Wales rose by 6.5% in the
third quarter of 2011, the highest rate of increase in almost two
years.

"It is probable we will see an increase in the number of viable
businesses which will need to restructure through insolvency
before the economy has fully recovered," The Star quotes
Mr. Fennell as saying.


* UK: HMRC Argues "Football Creditors' Rule" is Unfair
------------------------------------------------------
guardian.co.uk reports that a high court judge has been asked to
take action against a football industry debt rule described as
revealing "the ugly side of the beautiful game."

Lawyers representing HM Revenue and Customs told Mr. Justice
David Richards that the "football creditors' rule", which governs
the way football clubs clear debts, is unfair, guardian.co.uk
says.

The report relates that the judge, sitting at the high court in
London, heard the rule meant that creditors from the football
world were given preferential treatment when clubs entered
financial difficulties.

According to the report, HMRC - often a creditor when clubs
become insolvent - said it had launched legal action against the
Football League in the hope of bringing about change.  The
Football League and the Premier League, which is also represented
at the trial, both dispute HMRC's claims and argue that the rule
is fair, the report relates.

guardian.co.uk relates that Gregory Mitchell QC, for HMRC, said
tax officials wanted the judge to make a declaration on the
legality of the rule, which would set a "precedent".

Mr. Mitchell, as cited by guardian.co.uk, said that wherever the
rule was applied there was "always a loss to the taxpayer" which
was why the HMRC was bringing legal proceedings.

According to guardian.co.uk, Mr. Mitchell said creditors were
currently divided into two groups: first, football creditors -
who could be other clubs, leagues or other football "entities" -
and, second, other creditors.  He said football creditors were
"paid in full" and given "preferential" treatment.  Other
creditors, who often include HMRC, had to share what was left.

Mr. Mitchell said there had been 36 Football League club
insolvencies since 2002, while one Premier League club --
Portsmouth -- had become insolvent and was relegated in 2010, the
report notes.


                            *********

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.


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