TCREUR_Public/111208.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Thursday, December 8, 2011, Vol. 12, No. 243

                            Headlines

A R M E N I A

ARMENIAN ACBA: Fitch Cuts LT Issuer Default Rating to 'BB-'


B U L G A R I A

BDZ: At Risk of Liquidation if Strike Continues


I R E L A N D

VALLAURIS II: S&P Raises Rating on Class IV Notes to 'B+'


I T A L Y

EDISON SPA: S&P Revises Stand-Alone Credit Profile to 'bb+'


K A Z A K H S T A N

SOUTH OIL: Fitch Assigns 'BB' Senior Unsecured Rating


L U X E M B O U R G

BOZEL S.A.: U.S. Trustee Appoints 3-Member Creditors' Panel
BOZEL S.A: Committee Retains Pick & Zabicki as Counsel


N E T H E R L A N D S

UPC FINANCING: Moody's Assigns Ba3 Rating to US$500MM Facility AB


R U S S I A

POLYMETAL OJSC: Fitch Lifts Issuer Default Ratings to 'B+'


S L O V A K   R E P U B L I C

SLOVGLASS POLTAR: Failed Restructuring Prompts Bankruptcy Filing


S P A I N

BANCO CEISS: Moody's Assigns D+ Bank Financial Strength Rating
TDA 24: Fitch Puts 'Bsf' Rating on Class B Notes on Watch Neg.
* SPAIN: Government Mulls Bank Cleanup Plans


S W E D E N

SAAB AUTOMOBILE: GM Won't Back Proposed Ownership Structure
SAAB AUTOMOBILE: Administrator Wants to Terminate Reorganization
* SWEDEN: Corporate Failures Up 4% in November 2011


U N I T E D   K I N G D O M

BLACKS LEISURE: Seeks White Knight Investor to Rescue Firm
CONVERS SPORTS: WRC Chiefs Hope to Secure Backing
H&L GARAGES: Goes Into Administration, Cuts 176 Jobs
MF GLOBAL: Administrators Recover US$500MM of Client Assets
SUPERGLASS: To Invest GBP6.5 Million to Upgrade Factory

TUBE PLASTICS: Goes Into Administration, 100 Jobs at Risk
WHITTLEBURY HALL: Owners Out of Administration, Trades Normally
* UK: Business Sale Report Reveals Map of Distressed Firms


X X X X X X X X

* S&P Puts Eurozone Sovereign Ratings on CreditWatch Negative
* S&P's Global Corporate Default Tally Rises to 43 Issuers
* S&P: Global Default Rate Increases After 5 Mos. of Declines
* Upcoming Meetings, Conferences and Seminars


                            *********


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A R M E N I A
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ARMENIAN ACBA: Fitch Cuts LT Issuer Default Rating to 'BB-'
-----------------------------------------------------------
Fitch Ratings has downgraded Armenian ACBA-Credit Agricole Bank's
(ACBA) Long-term Issuer Default Rating (IDR) to 'BB-' from 'BB'.
The Outlook is Stable. The bank's Viability Rating (VR) has been
affirmed at 'b+'.

The downgrade of ACBA's Long-term IDR reflects the agency's
reassessment of the probability of support from its shareholder
Credit Agricole S.A. (CA; 'AA-'/RWN).  In its assessment, Fitch
now places greater emphasis on factors which it had previously
identified as constraining the probability of support.  These
factors include the fact that the Armenian market is not of
strategic importance for CA, the minority (28%) stake held by CA,
and CA's limited presence in other emerging markets, meaning
ACBA's performance, and hypothetical default, would bear little
contagion risk for the rest of the group.

At the same time, ACBA's IDRs and Support Rating continue to
reflect the limited probability of support from CA, given the
brand association, the track record of cooperation with CA and
ACBA's small size (and hence potential cost of support).  Future
revisions of ACBA's IDRs will likely be driven by any changes in
Fitch's view of CA's propensity to provide assistance to ACBA in
case of need.  Any downward revision of Armenia's sovereign
rating, implying a higher risk of systemic stress, could also
result in a downgrade of ACBA.

Support for ACBA from CA has never been required, or therefore
tested, in the past given ACBA's sound financial position.  In
the normal course of business, CA provides funding facilities to
the bank, which accounted for nearly 10% of ACBA's non-equity
funding at end-3Q11.

ACBA's VR considers recent rapid growth, increased loan
concentrations and still high loan dollarization (57% of end-Q311
loans), exposing the bank to indirect market risk in case of a
national currency devaluation.  At the same time, the rating
reflects low levels of non-performing loans, sound liquidity
and manageable refinancing risks, strong profitability and
capitalization (Basel II total capital ratio of 20.8% at end-
Q311) as well as the bank's broad domestic franchise.

Upside potential for the bank's VR is currently limited, although
downward pressure could result from a further rise in lending
concentrations, or deterioration in capital adequacy ratios as a
result of weaker asset quality.

At end-Q311, ACBA was Armenia's largest bank by total assets
(nearly 11% of the system's assets) with sizeable market shares
of around 50% in agricultural lending and 14% in consumer
lending. CA's 28% stake is owned in part directly and in part
indirectly; the remainder is distributed among 10 regional
agricultural unions.

The rating actions are as follows:

  -- Long-term IDR: downgraded to 'BB-' from 'BB'; Outlook Stable
  -- Short-term IDR: affirmed at 'B'
  -- Viability Rating: affirmed at 'b+'
  -- Individual Rating: affirmed at 'D'
  -- Support Rating: affirmed at '3'


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


BDZ: At Risk of Liquidation if Strike Continues
-----------------------------------------------
FOCUS News Agency, citing Darik Radio, reports that Bulgarian
Transport Minister Ivaylo Moskovski said Bulgarian State Railways
(BDZ) will face liquidations if trade unions won't halt their
strike.

According to FOCUS News, asked what concessions he is ready to
make, he answered: "We can offer them nothing more; the company
does not have financial means to offer them anything more.  We
offer them to rescue the company."

He said that if the trade unions keep on insisting, they will
liquidate the company, FOCUS News notes.

As reported by the Troubled Company Reporter-Europe on Nov. 28,
2011, FOCUS News said that Mr. Ivaylo Moskovski is to negotiate
deferrals with the creditors of the 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.  BDZ's staff rose in revolt against the intention of
the company's management to lay off at least 2,000 employees of
the company, and to reduce the number of trains in operation in
Bulgaria by about 150, as part of a wider reform package unveiled
in October 2011, Novinite.com recounted.

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 is
located in the capital Sofia.


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I R E L A N D
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VALLAURIS II: S&P Raises Rating on Class IV Notes to 'B+'
---------------------------------------------------------
Standard & Poor's Ratings Services took various rating actions on
Vallauris II CLO PLC's outstanding EUR232.09 million (excluding
combination notes) notes.

Specifically, S&P has:

    Affirmed its ratings on the class I and II notes and the
    class V combination notes; and

    Raised its ratings on the class III and IV notes.

"The rating actions follow our assessment of the transaction's
performance since our previous review in February 2010," S&P
said.

"We note that since our previous review, the issuer has used
interest and principal proceeds to amortize the class I notes in
order to cure the class III and IV par value coverage tests (see
'Transaction Update: Vallauris II CLO PLC,' published on Feb. 24,
2010). The class I notes have amortized to 77% of their initial
notional amount," S&P related.

"In our opinion, the portfolio does not currently include any
defaulted assets, compared with EUR22.75 million at the time of
our last review," S&P said.

"From the information we received from the manager, we believe
that the amount of par recovered from the assets that we
considered defaulted in February 2010 was 92%, which exceeded our
expectation of 37%," S&P said.

"As a result of the developments, we estimate that, since
February 2010, the total amount of collateral that we consider
available to the rated notes has increased to EUR259.48 million
from EUR255.74 million, and the credit enhancement available to
each of the rated notes has also increased," S&P said.

"On the cash flow side, we noted an increase in the performing
portfolio weighted-average spread to 3.24%, from 2.72% in
February 2010," S&P related.

"We subjected the capital structure to various cash flow
scenarios incorporating different default patterns and interest
rate curves, to determine each tranche's break-even default rate
(BDR) at each rating level. In our analysis, we used a total
collateral balance of EUR259.48 million, the current weighted-
average spread, and the weighted-average recovery rates that we
considered to be appropriate," S&P said.

"We noted that the BDRs for each of the class I, II, and III
notes has remained largely stable since February 2010. However,
we saw a significant improvement in the BDR for the class IV
notes," S&P said.

"On the asset side, we did not observe any significant change in
the portfolio credit quality since February 2010," S&P said.

"We note that the available principal cash currently represents
11% of the total collateral. The portfolio manager has confirmed
that it intends to reinvest the cash into further assets. In line
with the portfolio's eligibility criteria, we assumed that the
cash will be reinvested into 'B-' rated assets. In our analysis,
the impact of these reinvestments on the portfolio credit quality
was limited," S&P said.

According to the latest available trustee report, all of the
overcollateralization tests are now passing, and deferred
interest amounts on the class IV notes were fully repaid on the
September payment date.

"Based on our credit and cash flow analyses, we consider that the
level of credit enhancement available to the class IV notes is
now consistent with a higher rating than previously assigned,"
S&P said.

"The rating on the class IV notes is constrained to 'B+ (sf)' by
the application of the largest obligor default test, a
supplemental stress test we introduced as part of our criteria
update (see 'Update To Global Methodologies And Assumptions For
Corporate Cash Flow And Synthetic CDOs,' published Sept. 17,
2009)," S&P said.

"The rating on the class III notes is no longer constrained by
the application of the largest obligor. We have therefore raised
our rating on the class III notes to 'BB+ (sf)'," S&P said.

"The affirmations of the ratings on the class I and II notes
reflect our view that the notes have only adequate credit
enhancement to maintain their current ratings," S&P said.

"The class V combination notes currently comprise EUR10.71
million of French 'obligation assimilable du tresor' (OAT)
strips, with an aggregate nominal face amount (at maturity) of
EUR18.05 million, and EUR6.30 million of subordinated notes," S&P
said.

"The rating on the class V combination notes is linked to our
rating on the Republic of France. We have therefore affirmed our
'AAA (sf)' rating on the class V combination notes," S&P said.

"Elavon Financial Services Ltd. (AA-/Stable/A-1+) currently acts
as account bank and custodian. We have applied our 2010
counterparty criteria and, in our view, Elavon Financial Services
is appropriately rated to support our ratings on the notes. The
London branch of Citibank N.A. (A/Negative/A-1) currently
provides currency hedges on EUR12.76 million of non-euro assets.
We consider that the exposure to Citibank is sufficiently limited
that its failure to perform would not affect our rating on the
class I notes," S&P said.

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

Ratings List

Class                Rating
            To                    From

Vallauris II CLO PLC
EUR324.6 Million Floating-Rate and Subordinated Notes

Ratings Raised

III         BB+ (sf)              B- (sf)
IV          B+ (sf)               CCC- (sf)

Ratings Affirmed

I           AA+ (sf)
II          BBB+ (sf)
Combo V     AAA (sf)


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I T A L Y
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EDISON SPA: S&P Revises Stand-Alone Credit Profile to 'bb+'
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long- and short-
term corporate credit ratings on Italy-based utility Edison SpA
to 'BBB-/A-3' from 'BBB/A-2' following the revision of its stand-
alone credit profile (SACP) on Edison to 'bb+' from 'bbb-'. "At
the same time, we revised the CreditWatch status on the ratings
to negative from developing. The ratings were originally placed
on CreditWatch developing on June 21, 2011, due to uncertainty
over Edison's shareholder structure," S&P said.

The ratings on Edison continue to reflect a one-notch uplift for
shareholder support from joint owner Electricite de France S.A.
(EDF; AA-/Stable/A-1+).

"The downgrade reflects our view that tough market conditions in
Edison's key midstream gas operations will lead to much lower
profitability and cash flows over the medium term. As a result,
we have reassessed our opinion of Edison's business risk profile,
which we now classify as 'satisfactory' rather than as 'strong'
previously. This led us to revise our stand-alone credit profile
(SACP) assessment to 'bb+' from 'bbb-'," S&P said.

"Edison's results for the first nine months of 2011 remained, in
our opinion, very weak, with EBITDA declining by 23% compared
with the same period the previous year. Despite Edison completing
the renegotiation of its long-term gas contract with Promgas (not
rated), we anticipate that Edison's credit metrics will likely
fall well below levels that we view as commensurate with the
previous SACP in 2011 and 2012," S&P said.

"Meanwhile, on Nov. 4, 2011, Edison's shareholders agreed in
principle the allocation of the generation assets and the main
steps of a reorganization of the ownership structure. We
previously anticipated that a binding agreement regarding the
shareholder structure and governance of Edison would be signed
by the end of November 2011. It has now been postponed, for the
fourth time, to the end of December 2011," S&P said.

"If a binding agreement was to be signed by the end of December,
completion would remain subject to the final documentation, the
completion of all corporate approval processes, and the approval
of the relevant antitrust and regulatory authorities. In light of
these factors, we believe that the reorganization cannot be
completed and implemented before the end of the first quarter of
2012," S&P said.

"The CreditWatch listing reflects the possibility of us lowering
the ratings, depending on our view of the rating implications of
further delays in the reorganization of Edison's ownership
structure as well as Edison's ability to maintain an 'adequate'
liquidity position," S&P said.

"We would likely lower the ratings by one notch if we believed
that EDF would sell its stake in Edison. We could consider a
multi-notch downgrade if, as a result of Edison's inability to
secure long-term funding, we were to assess the liquidity of
Edison as 'less than adequate,'" S&P said

"We could affirm the ratings if EDF were to obtain control of
Edison, because this would support the one-notch uplift for
shareholder support from EDF that we currently factor into our
corporate credit ratings on Edison," S&P said.

"We aim to review the CreditWatch placement by March 2012," S&P
said.


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


SOUTH OIL: Fitch Assigns 'BB' Senior Unsecured Rating
-----------------------------------------------------
Fitch Ratings has assigned South Oil LLP's KZT1 billion 9%
domestic notes due September 8, 2014 a final local currency
senior unsecured rating of 'B' and final National senior
unsecured rating of 'BB(kaz)'.

The proceeds from the notes issuance are expected to be used for
general corporate purposes.

South Oil LLP is Kazakhstan-based small privately-owned oil
producer involved in oil exploration and production in the
Kyzylorda region, South Kazakhstan.


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


BOZEL S.A.: U.S. Trustee Appoints 3-Member Creditors' Panel
-----------------------------------------------------------
Tracy Hope Davis, the United States Trustee for Region 2,
pursuant to 11 U.S.C. Sec. 1102(a) and (b), appointed three
entities to serve on the Official Committee of Unsecured
Creditors of Bozel S.A.

The Creditors Committee members are:

       1. 1553283 Ontario Inc.
          331 Robinson Street
          Oakville, Ontario
          Canada L6JHI
          Tel: (416) 817-0580
          ATTN.: Benjamin W. Penman, President

       2. Benjamin Alon Shaw
          156 Barnstable Road
          Thorpe Bay
          Southend Essex SS1 3PP
          United Kingdom
          Tel: 011-44-17025-86851

       3. Eastveld Realties Canada Corp.
          2 Westmount Square, Suite 207
          Westmount, Quebec
          Canada H3Z2S4
          E-mail: ercc@eastveld.com
          Attn.: Christopher A. Eastveld

                        About Bozel S.A.

Bozel S.A. is a company limited by shares (a 'societe anonyme"or
('s.A.") organized under the Grand Duchy of Luxembourg, and
registered with the Luxembourg Trade and Companies Register under
the number B107769.  Bozel is a holding company which, at the
time of its Chapter 11 filing, owned substantially all of the
stock in Bozel Mineracao, S.A. (organized in Brazil) ("Bozel
Brazil") and Bozel Europe S.A.S. (organized in France) ("Bozel
Europe"), and continues to own Bozel, LLC (organized in the state
of Florida).

Prior to the sale of Bozel Brazil and Bozel Europe to Japan
Metals & Chemicals, Co., Ltd. ("JMC"), Bozel S.A., through its
three operating subsidiaries on three continents, was a worldwide
leader in the sale of calcium silicon ("CaSi").  Immediately
preceding its filing for bankruptcy protection, Bozel S.A. sold
over 40% of the world's CaSi powder output.  Bozel Brazil
produces primarily CaSi and cored wire, which is an industry-
preferred ingredient in the production of high quality steel and
steel alloys.  Bozel Europe produces primarily cored wire.
Bozel, LLC, formerly marketed and distributed in the United
States the products produced by Bozel Brazil.

Bozel S.A. is the sole member and manager of Bozel, LLC.

Bozel sought Chapter 11 protection (Bankr. S.D.N.Y. Case No.
10-11802) on April 6, 2010.  In its amended schedules, Bozel
disclosed US$41,134,010 in assets and US$47,365,036 in
liabilities.

Bozel, LLC, filed a separate petition for Chapter 11 (Bankr.
S.D.N.Y. Case No. 11-10033) on Jan. 10, 2011.

Allen G. Kadish, Esq., and Kaitlin R. Walsh, Esq., at Greenberg
Traurig, LLP, in New York, and Mark D. Bloom Esq., at Greenberg
Traurig, LLP, in Miami, represent the Debtors as counsel.

The two cases are jointly administered under Case No. 10-11802.


BOZEL S.A: Committee Retains Pick & Zabicki as Counsel
------------------------------------------------------
The Official Unsecured Creditors Committee of Bozel, SA, asks the
U.S. Bankruptcy Court for the Southern District of New York for
permission to retain Pick & Zabicki, LLP as counsel.

Upon retention, the firm will, among other things:

   a. advise the Committee with respect to its rights, duties,
      and powers in the Chapter 11 case;

   b. assist and advise the Committee in its consultations with
      Debtor relative to the administration of the case; and

   c. assist the Committee in analyzing the claims of the
      Debtor's creditors and in negotiating with such creditors.

Douglas J. Pick, a lawyer of Pick & Zabick, attests that the firm
is a "disinterested person" as the term is defined in Section
101(14) of the Bankruptcy Code.

The firm's rates are:

       Personnel                       Rates
       ---------                       -----
       Partners                       $300-$425
       Associates                       $250
       Paraprofessionals                $125

                        About Bozel S.A.

Bozel S.A. is a company limited by shares (a 'societe anonyme"or
('s.A.") organized under the Grand Duchy of Luxembourg, and
registered with the Luxembourg Trade and Companies Register under
the number B107769.  Bozel is a holding company which, at the
time of its Chapter 11 filing, owned substantially all of the
stock in Bozel Mineracao, S.A. (organized in Brazil) ("Bozel
Brazil") and Bozel Europe S.A.S. (organized in France) ("Bozel
Europe"), and continues to own Bozel, LLC (organized in the state
of Florida).

Prior to the sale of Bozel Brazil and Bozel Europe to Japan
Metals & Chemicals, Co., Ltd. ("JMC"), Bozel S.A., through its
three operating subsidiaries on three continents, was a worldwide
leader in the sale of calcium silicon ("CaSi").  Immediately
preceding its filing for bankruptcy protection, Bozel S.A. sold
over 40% of the world's CaSi powder output.  Bozel Brazil
produces primarily CaSi and cored wire, which is an industry-
preferred ingredient in the production of high quality steel and
steel alloys.  Bozel Europe produces primarily cored wire.
Bozel, LLC, formerly marketed and distributed in the United
States the products produced by Bozel Brazil.

Bozel S.A. is the sole member and manager of Bozel, LLC.

Bozel sought Chapter 11 protection (Bankr. S.D.N.Y. Case No.
10-11802) on April 6, 2010.  In its amended schedules, Bozel
disclosed US$41,134,010 in assets and US$47,365,036 in
liabilities.

Bozel, LLC, filed a separate petition for Chapter 11 (Bankr.
S.D.N.Y. Case No. 11-10033) on Jan. 10, 2011.

Allen G. Kadish, Esq., and Kaitlin R. Walsh, Esq., at Greenberg
Traurig, LLP, in New York, and Mark D. Bloom Esq., at Greenberg
Traurig, LLP, in Miami, represent the Debtors as counsel.

The two cases are jointly administered under Case No. 10-11802.


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


UPC FINANCING: Moody's Assigns Ba3 Rating to US$500MM Facility AB
-----------------------------------------------------------------
Moody's Investors Service has assigned a definitive Ba3 rating to
the US$500 million additional term loan facility AB due in
December 2017 issued by UPC Financing Partnership. The rating
outlook is stable.

UPC Financing is an entity indirectly wholly-owned by UPC Holding
B.V. ('UPC'; Ba3 CFR) and is an established borrower under the
UPC Bank Facility together with UPC Broadband Holding B.V. ('UPC
Broadband').

The proceeds of the new loan have been used to repay some of the
outstanding revolver drawings under the UPC Bank Facility.

Ratings Rationale

The definitive Ba3 rating on the new term loan ('Facility AB') is
in line with the rating for the UPC Broadband bank facilities
(rated Ba3) reflecting the pari-passu status of this loan with
the existing senior secured bank facilities for UPC.

The principal methodology used in rating UPC Financing was the
Global Cable Television Industry Methodology published in July
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.

UPC is a pan-European cable provider, a principal subsidiary of
Liberty Global Inc. In 2010, the company generated EUR3.7 billion
in revenue and EUR1.8 billion in reported operating cash flow.


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R U S S I A
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POLYMETAL OJSC: Fitch Lifts Issuer Default Ratings to 'B+'
----------------------------------------------------------
Fitch Ratings has upgraded Russia-based gold and silver producer
OJSC Polymetal's (Polymetal) Long-term foreign and local currency
Issuer Default Ratings (IDRs) to 'B+' from 'B' and its National
Long-term rating to 'A-(rus)' from 'BBB(rus)' and affirmed its
Short-term foreign and local currency IDRs at 'B'.  The Outlook
for all the Long-term ratings is Stable.  The agency has
simultaneously withdrawn all the ratings as they are no longer
considered relevant for Fitch's coverage.

The upgrade reflects the positive progress the company has made
in diversifying its reserve base whilst maintaining a good
average mine life at existing operations of around 13 years.
Polymetal expects to start commissioning of its new
hydrometallurgical plant in Amursk in December 2011.  A
successful commissioning of this plant will further strengthen
the company's operating profile, as it will allow the bulk
processing of refractory ores from Albazino and Mayskoye gold
deposits located in the Russian Far East with acceptable recovery
rates.

Key constraints on the ratings include the high volatility of
gold and (especially) silver prices, the high correlation between
prices of the two commodities, and the sensitivity of company's
future financial results and credit metrics to price changes.
Operating activity in the Russian Far East, a region with poor
infrastructure and severe climate conditions, bears additional
risks and may lead to an underestimation of required capex and
schedule setbacks relative to the stated development budgets and
timelines.  Factors like gold and silver yield grades, exchange
rate fluctuations and cost inflation are outside the company's
control.

Fitch has concerns about the company's increasing cash costs.  In
2010, the company's average cash costs increased by 19% compared
with 2009 yoy to USD571/oz of gold equivalent, and in H111 - to
USD671/oz of gold equivalent.

Polymetal's liquidity position is adequate.  Fitch expects the
company to be free cash flow neutral in 2011 and also considers
that it should be able to refinance maturing loans with new
facilities should it choose to do so.  Fitch expects the company
to remain free cash flow neutral in 2012-2013.

For FY2011, Fitch estimates a 40% increase in revenues to around
USD1.3bn with an EBITDAR margin of approximately 48% compared
with 44% in FY2010, driven mostly by increase of prices.  Funds
from operations (FFO) gross leverage is projected at around 1.6x
as at end-2011 compared with 2.4x at end-2010, and anticipated to
increase to 1.8x-2.1x by end-2012.

Company's creditworthiness would benefit from FFO gross leverage
remaining below 2.0x on a sustainable basis, positive free cash
flow across the cycle and development of significant operations
in lower risk mining jurisdictions outside Russia.

With output of 13.5m oz of silver in 9M11, Polymetal is one of
the top five primary silver producers in the world.  The company
is also one of the leading Russian gold producers with output of
0.307m oz in 9M11.  Polymetal's asset portfolio contains more
than 50 licenses for deposits, located in Russia and Kazakhstan.


=============================
S L O V A K   R E P U B L I C
=============================


SLOVGLASS POLTAR: Failed Restructuring Prompts Bankruptcy Filing
----------------------------------------------------------------
According to The Slovak Spectator, ASR newswire, citing
information in Slovakia's Commercial Journal, reported that
Slovglass Poltar, which employed 435 people, has filed for
bankruptcy after a failed restructuring attempt.

TASR wrote that the company's bankruptcy proceeding was approved
by the District Court in Banska Bystrica in late November, the
Slovak Spectator notes.

The plant began a restructuring plan in early 2011 and was
seeking a new investor, which according to EMEL Bratislava, the
current owner, would have guaranteed the company's ability to
repay debts that reportedly reach EUR1 million, the Slovak
Spectator discloses.

Slovglass employees have been on compulsory leave for nearly a
month, receiving 60% of their salaries, the Slovak Spectator
states.

Based in the Banska Bystrica region, Slovglass Poltar is a
producer of a broad range of crystal glass products as well as
utility glassware.


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S P A I N
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BANCO CEISS: Moody's Assigns D+ Bank Financial Strength Rating
--------------------------------------------------------------
Moody's Investors Service has assigned long and short term debt
and deposit ratings of Baa3/P-3 and a standalone Bank Financial
Strength Rating of D+ (mapping to Ba1 on the long-term scale) to
the new entity Banco de Caja Espana de Inversiones, Salamanca y
Soria, S.A. (Banco CEISS). This follows the transfer (effective
as of December 2, 2011) of the financial business of the savings
bank, Caja Espana de Inversiones, Salamanca y Soria (CEISS) to
this new entity. Moody's rates Banco CEISS's dated subordinated
debt Ba1 and its preferred shares B2(hyb). All of the ratings of
Banco CEISS's are on review for upgrade except the dated
subordinated debt, which is currently on review for downgrade. In
addition, Moody's rates Banco CEISS's government-guaranteed debt
at A1, with a negative outlook.

At the same time, Moody's has withdrawn the following ratings of
CEISS: (i) the standalone bank financial strength rating (BFSR)
of D+ (which mapped to Ba1 on the long-term scale); (ii) the long
and short term deposit ratings of Baa3/P-3; and (iii) the long-
term issuer rating of Baa3.

Ratings Rationale

Following the transfer of the financial business, the ratings
assigned to Banco CEISS are at the same level as those formerly
assigned to CEISS. Subsequent to the segregation of the financial
business, CEISS's remaining role will be to manage the social
welfare projects financed through dividends paid by Banco CEISS
upon completion of the transfer; it also acts as the holding
company of Banco CEISS. As a result of the transfer of CEISS's
assets and liabilities, the debt obligations of the savings bank
have been assumed by the new entity, Banco CEISS. All of CEISS's
other ratings have subsequently been withdrawn.

The constitution of Banco CEISS is an intermediate step towards
the merger of CEISS with Unicaja (rated A1/P-1/C+ RUR Down),
which the assemblies of both entities approved in the month of
September and which is expected to be completed during the first
quarter of 2012. Following this announcement, Moody's placed all
of CEISS's ratings under review for upgrade, as the rating agency
considered that the new group is likely to have stronger
financial fundamentals relative to those currently displayed by
CEISS.

POTENTIAL TRIGGERS FOR A DOWNGRADE/UPGRADE

A downgrade of CEISS's standalone rating is currently very
unlikely given the review for upgrade of the rating. However,
downward pressure could be exerted on CEISS's standalone credit
strength following a (i) material deterioration of its liquidity
position; (ii) greater-than-expected weakening in its risk-
absorption capacity which could put pressure on its capital
levels; and/or (iii) significant obstacles in the merger process
with Unicaja that would ultimately result in a failure to
complete it.

The entity's debt and deposit ratings are linked to the
standalone BFSR, and any change to the BFSR would likely also
affect these ratings.

An upgrade of CEISS's standalone rating could be driven by (i) an
enhancement of its risk-absorption capacity resulting from the
merger with Unicaja; (ii) an improved liquidity position, with
normalized access to wholesale funding; and (iii) a reduction of
its exposure to real-estate and related assets. An improvement in
the economic and overall operating environment could also
positively affect CEISS's BFSR and its senior debt and deposit
ratings.

PRINCIPAL METHODOLOGIES

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 Leon, Spain, CEISS reported total consolidated
assets of EUR44.2 billion as of September 30, 2011.


TDA 24: Fitch Puts 'Bsf' Rating on Class B Notes on Watch Neg.
--------------------------------------------------------------
Fitch Ratings has placed four Spanish RMBS transactions with
exposure to loans originated by Credifimo on Rating Watch
Negative (RWN).  The rating action was triggered by the findings
of an audit of the TDA 28 portfolio.

Fitch understands that the portfolio of loans in TDA 28 was
audited and that more than 1,700 loans, equivalent to EUR173.9
million (62% of the aggregate current balance of the securitized
portfolio), were identified as not having been originated in
compliance with the transaction documentation.  The non-compliant
loans were originated by Credifimo, which contributed 44% of the
overall portfolio's loan balance at closing.  According to a
statement published on the SPV management company's (ie.
Titulizacion de Activos; TdA) website, Credifimo was asked to
replace these loans, but as no such action was taken, TdA will
bring legal proceedings against Credifimo.

Credifimo, which was acquired by Banca Civica
('BBB+'/Stable/'F2'), is the originator and servicer of loans in
three other Spanish RMBS transactions: TDA 24, 25 and 27. The
portion of Credifimo loans in these transactions varied between
17.8% and 76.2% of the original collateral.  The loans in these
portfolios originated by Credifimo have, on average, shown weaker
performance and this has been a key driver of the negative rating
actions previously taken on these transactions.

Fitch is concerned that the instances of non-compliance in TDA 28
could be repeated in the other RMBS transactions with Credifimo
loans, which is why all of their tranches rated above 'CCCsf'
have been placed on RWN.  The transactions have seen levels of
defaults ranging between 5.1% and 17.5% of the original portfolio
balances of TDA 24 and TDA 28, respectively, and currently have
technical principal deficiency ledgers representing as much as
15% of class A in TDA 25, as estimated by Fitch.

The agency will aim to resolve the RWN following receipt of
further information on the nature and materiality of the non-
compliance.  All tranches rated 'CCCsf' or below are unaffected
by the current rating action.

The rating actions are as follows:

TDA 24:

  -- Class A1 (ISIN ES0377952009) 'BBBsf'; placed on RWN
  -- Class A2 (ISIN ES0377952017) 'BBBsf'; placed on RWN
  -- Class B (ISIN ES0377952025) 'Bsf'; placed on RWN
  -- Class C (ISIN ES0377952033) 'CCCsf'; Recovery Estimate 0%
  -- Class D (ISIN ES0377952041) 'CCsf'; Recovery Estimate 0%

TDA 25:

  -- Class A (ISIN ES0377929007) 'BBsf'; placed on RWN
  -- Class B (ISIN ES0377929015) 'CCCsf'; Recovery Estimate 0%
  -- Class C (ISIN ES0377929023) 'CCsf'; Recovery Estimate 0%
  -- Class D (ISIN ES0377929031) 'CCsf'; Recovery Estimate 0%

TDA 27:

  -- Class A2 (ISIN ES0377954013) 'BBB-sf'; placed on RWN
  -- Class A3 (ISIN ES0377954021) 'BBB-sf'; placed on RWN
  -- Class B (ISIN ES0377954039) 'BBsf'; placed on RWN
  -- Class C (ISIN ES0377954047) 'Bsf'; placed on RWN
  -- Class D (ISIN ES0377954054) 'CCCsf'; Recovery Estimate 0%
  -- Class E (ISIN ES0377954062) 'CCsf'; Recovery Estimate 0%
  -- Class F (ISIN ES0377954070) 'CCsf'; Recovery Estimate 0%

TDA 28

  -- Class A (ISIN ES0377930005) 'BBsf'; placed on RWN
  -- Class B (ISIN ES0377930013) 'CCCsf'; Recovery Estimate 0%
  -- Class C (ISIN ES0377930021) 'CCsf'; Recovery Estimate 0%
  -- Class D (ISIN ES0377930039) 'CCsf'; Recovery Estimate 0%
  -- Class E (ISIN ES0377930047) 'CCsf'; Recovery Estimate 0%
  -- Class F (ISIN ES0377930054) 'CCsf'; Recovery Estimate 0%


* SPAIN: Government Mulls Bank Cleanup Plans
--------------------------------------------
Jonathan House and Christopher Bjork at Dow Jones Newswires
report that Spain's incoming prime minister, intent on curing the
country's ailing banking sector, is considering cleanup plans
that could dwarf the cost of previous efforts, including the
creation of a state-funded "bad bank" to acquire toxic assets or
a move to force banks to dramatically boost loan-loss reserves.

According to Dow Jones, Prime Minister-elect Mariano Rajoy has
said he wants to speed up the process of dealing with EUR176
billion (US$236 billion) of impaired real-estate assets from
Spain's housing bust, although he played down the potential cost
of his plans ahead of last month's elections.

Dow Jones notes that some people close the situation say the
fastest way to deal with the problem would be to create a bad
bank that purchases the impaired assets from lenders at
discounted prices.  This would force the institutions to
recognize losses, Dow Jones says.  It also would likely undermine
their solvency ratios and require further funds to shore up their
capital bases, according to Dow Jones.

According to analysts at Morgan Stanley, Spain could acquire the
entire EUR176 billion pile of impaired real-estate assets at the
58% discount applied by Ireland's bad bank, or a cost of EUR73.9
billion, Dow Jones discloses.  This could be funded by swapping
new government debt for the banks' soured real-estate assets, Dow
Jones states.

However, the state would have to raise sufficient funds from
investors to provide the banks with an estimated EUR28.5 billion
in new capital to absorb losses that the banks would take in
selling the assets at a steep discount, Dow Jones notes.  In all,
the cost of the plan to the Spanish state could be EUR102.4
billion, or around 10% of Spanish GDP, Dow Jones discloses.

Still, if the EUR28.5 billion proves difficult to raise from
private investors, given current market conditions, Mr. Rajoy, as
cited by Dow Jones, has said he is open to the idea of requesting
funds from the European Financial Stability Facility, the euro
zone's bailout fund, to help finance the new capital needs.  That
is one of the facility's new mandates after it was revamped
earlier this year, Dow Jones relates.


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


SAAB AUTOMOBILE: GM Won't Back Proposed Ownership Structure
-----------------------------------------------------------
Ben Klayman and Gilbert Kreijger at Reuters report that General
Motors Co. said on Tuesday it would not support a proposed
ownership structure for Saab Automobile that included a Chinese
bank, moving the Swedish auto company closer to liquidation.

"We have reviewed Saab's proposed changes regarding the sale of
the company," Reuters quotes GM spokesman James Cain as saying in
a statement.  "Nothing in the proposal changes GM's position.  We
are unable to support the transaction."

GM has said it would be difficult to support a sale of Saab that
hurts GM's competitive position in China and other key markets,
Reuters relates.

According to Reuters, without GM's technology licenses and
production contract, analysts have said, Saab would be unable to
continue in its present form.

When asked about GM's rejection, Swedish Automobile Chief
Executive Victor Muller, as cited by Reuters, said in a text
message, "There is always Plan B."  He said it was too early to
provide details, Reuters notes.

As reported by the Troubled Company Reporter-Europe on Dec. 7,
2011, Bloomberg News related that Swedish Automobile NV, the
owner of Saab, said it's in talks to sell a stake to an
unidentified Chinese Bank to keep the carmaker in business.
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, Bloomberg disclosed.  It said that the outcome of
the negotiations is uncertain and an agreement would be subject
to approval by stakeholders, Bloomberg noted.  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 recounted.  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, according to Bloomberg.
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 disclosed.

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


SAAB AUTOMOBILE: Administrator Wants to Terminate Reorganization
----------------------------------------------------------------
Swedish Automobile N.V. on Dec. 7 disclosed that it has been
informed that the administrator of the reorganization,
Guy Lofalk, will apply for termination of the voluntary
reorganization of Saab Automobile AB and two subsidiaries with
the District Court in Vanersborg, Sweden.

Saab Automobile and its creditors have approximately five to six
days to submit their view to the District Court before the Court
takes a final decision about termination of the reorganization.
The management of Saab Automobile will consider future steps and
continues the current discussions with Youngman about the
necessary funding to pay the wages and be able to continue the
voluntary reorganization.

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


* SWEDEN: Corporate Failures Up 4% in November 2011
---------------------------------------------------
According to SeeNews, data by business and credit information
agency Upplysningscentralen (UC) AB showed that the number of
corporate failures in Sweden went up 4% year-on-year to 588 in
November 2011.


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


BLACKS LEISURE: Seeks White Knight Investor to Rescue Firm
----------------------------------------------------------
BBC News reports that Blacks Leisure has issued an appeal for a
white knight investor to rescue it by buying the firm or one of
its brands.

According to BBC, the company said it was making the appeal after
meeting major shareholders and some potential investors as part
of a capital-raising exercise.

Blacks warned last month that sales in the crucial Christmas
period would be weaker than had been expected, BBC recounts.

Blacks, as cited by BBC, said it had the support of Royal Bank of
Scotland, its main lender.

Blacks currently has GBP36 million of net bank debt, BBC
discloses.

The firm has appointed accountants KPMG to find potential buyers,
BBC relates.

It said it had obtained a waiver from the takeover panel to
ensure that any potential buyer can remain anonymous and avoid
rules that would normally compel it to make a formal offer within
28 days, BBC notes.

Blacks Leisure is an outdoor clothing and equipment retailer.
The company operates about 300 shops under the Blacks and Millets
brands.


CONVERS SPORTS: WRC Chiefs Hope to Secure Backing
-------------------------------------------------
The Press Association reports that commercial rights holders
North One Sport say they are "optimistic" of finding investment
to secure the future of the World Rally Championship after their
parent company went into administration.

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.

The Press Association recalls that in 2010, the FIA, motorsport's
world governing body, awarded North One Sport a 10-year contract
for the media rights to the WRC until 2020.  The company was then
purchased by CSI earlier this year, the report relates.

Although North One Sport is not in administration themselves,
there is a need for investment to be secured with the 2012 season
set to get under way in Monte Carlo in mid-January, according to
The Press Association.

The Press Association reveals that reports had suggested that the
competition's future was in the balance and that the FIA may be
forced to step in and take control of the championship, which has
existed since 1973, but CSI administrators UHY Hacker Young had
previously stated they were confident of buyers being found for
all CSI subsidiaries.

North One Sport also revealed they are already in "detailed
discussions" with several potential buyers, The Press Association
adds.


H&L GARAGES: Goes Into Administration, Cuts 176 Jobs
-----------------------------------------------------
Grimsby Telegraph reports that H&L Garages Limited has gone into
administration cutting the jobs of its 176 staff from its total
of 194 current hires in the process.  The report relates that 61
of the 70 employed at the company's headquarters in South
Killingholme alone.

"BDO LLP business restructuring partners, Paul Bates and Graham
Newton, were appointed Joint Administrators over H & L Garages
Limited on Friday, Dec. 2, 2011 . . . .  The company ceased
trading on [the same day]. . . .  The Joint Administrators are
now seeking a buyer for the assets of the company," BDO LLP said
in a statement obtained by Grimsby Telegraph.

"Unfortunately the economic climate and difficult trading
conditions adversely affected the business. . . . The joint
administrators are taking all necessary steps to mitigate risks
to stakeholders and, going forward, will seek to maximize
recoveries for the benefit of creditors," the report quoted Mr.
Bates as saying.

Headquartered in South Killingholme, H&L Garages Limited, is a
Mercedez Benz dealer.  It employs almost 200 workers across sites
in South Killingholme, Lincoln, Hull, Boston and York.


MF GLOBAL: Administrators Recover US$500MM of Client Assets
-----------------------------------------------------------
MF Global UK Ltd.'s administrators recovered about half of the
estimated US$1 billion of customer funds frozen when the
brokerage firm collapsed on October 31, Kit Chellel of Bloomberg
News reported.

KPMG LLP, which oversees the administration of MF Global UK, said
it hoped to return some money to the brokers' clients by March,
according to the report.  The final amount to be recovered will
depend on how much can be taken back from the third-party
financial firms which held money for MF Global UK's clients,
Richard Heis, a partner at KPMG LLP, stated, the report relayed.

KPMG also did not confirm The New York Times' Nov. 29 report that
about US$200 million may have been found at JPMorgan Chase in the
UK, Bloomberg noted.  The administrators did not believe the
US$200 million found would affect recoveries for U.K. clients,
Bloomberg said.

"Based on the information available, the joint special
administrators are not aware of any threat to the segregated
money held on behalf of MF Global U.K. clients arising from the
matters set out in the New York Times report," KPMG said in an e-
mailed statement to Bloomberg.


SUPERGLASS: To Invest GBP6.5 Million to Upgrade Factory
-------------------------------------------------------
The Scotsman reports that Superglass on Monday unveiled plans to
invest GBP6.5 million of the proceeds of last week's share
placing in upgrading its factory in Stirling.

Speaking as the Scottish firm also revealed a GBP600,000 loss for
the year to August 31, chief executive Alex McLeod, as cited by
the Scotsman, said the investment would be "transformational".

Once completed in March 2013, the company expects upgrades to
machinery to deliver annual cost savings of up to GBP3.6 million
while also improving the quality of its product and raising
production capacity by 10%, the Scotsman says.

Superglass was unable to follow suit because it was struggling
under a debt burden totaling more than GBP17 million, the
Scotsman notes.  That was also dealt with last week in a
restructuring that saw Clydesdale Bank swap GBP12.15 million of
debt into convertible shares, the Scotsman recounts.  The
Stirling-based firm will enjoy a two-year repayment holiday on
its remaining GBP5.1 million of borrowings, which will not be
subject to covenants during that time, according to the Scotsman.

At the same time, a share placing raised GBP8 million after costs
and the company was recently offered a Regional Selective
Assistance grant of up to GBP2 million by Scottish Enterprise,
the Scotsman discloses.

Superglass is an insulation firm.


TUBE PLASTICS: Goes Into Administration, 100 Jobs at Risk
---------------------------------------------------------
The Press Association reports that Tube Plastics Limited, better
known as TP Activity Toys, has gone into administration putting
100 jobs at risk.

The company called in business recovery firm Geoffrey Martin to
act as administrator, according to The Press Association.

The report notes that a spokesman for Geoffrey Martin said the
company's financial difficulties stemmed from increasing
overheads and its inability to carry out a refinancing.

The Press Association notes Mr. Martin hopes to sell the business
as a going concern and said "every effort" will be made to
fulfill orders for Christmas.  Customers awaiting deliveries are
urged to get in contact, the report relays.

The administration does not include the company's unit, Muddy
Puddles, which supplies children's outdoor clothing.

Kidderminster-based Tube Plastics Limited is a supplier of
trampolines and climbing frames for retailers including Tesco,
John Lewis and Early Learning Centre.


WHITTLEBURY HALL: Owners Out of Administration, Trades Normally
---------------------------------------------------------------
BBC News reports that Whittlebury Hall's new directors said the
hotel is now trading as normal again.

Whittlebury Hall came out of administration on last week,
according to BBC News.

The hotel will trade under a new company name, Whittlebury Hall
and Spa Limited, the report notes.

As reported in Troubled Company Reporter-Europe on Sept. 19,
2011, AboutMyArea said that Whittlebury Hall's business continued
to trade despite going into administration as a buyer is sought.
Peter Holder, Kevin Coates, Nick Cropper, and Anne O'Keefe of
corporate advisory and restructuring specialists Zolfo Cooper
were appointed Joint Administrators of Whittlebury Hall Limited
(the Company) on Sept. 14, 2011.  Administrators were appointed
following a period of cash flow difficulties, according the
report.

Whittlebury Hall Limited owns and operates Whittlebury Hall
Hotel, which is a 211-room hotel, spa and management training
centre.  It is located next to the Silverstone Circuit near
Towcester, Northamptonshire.


* UK: Business Sale Report Reveals Map of Distressed Firms
----------------------------------------------------------
The Business Sale Report has launched the first interactive UK
map that details the locations of all distressed companies that
have recently collapsed into administration.

The "mash-up" -- seen at http://www.business-
sale.com/administrations/map -- pulls in details of distressed
businesses from the Business Sale Report's in-house databases and
displays the information with the help of Google Maps technology.
It succeeds in painting a more vibrant picture of potential
target businesses, beyond the black and white of text listings
and can reveal interesting geographical clusters.  An additional
layer of information can be seen subscribers to the Business Sale
Report, who can zoom right in on potential targets and view
financial and contact details.

Stephen Ideh, Marketing Manager at Business Sale Report, said
that every detail is crucial when it comes to the buying and
selling of businesses, and the map provides a crucial -- and
until now unfulfilled -- service.

"This map is the first in the UK to provide a comprehensive,
geographic picture of businesses that are facing distress," he
said.

"There is no other service like it, but the benefits of it are
abundantly clear. Prospective buyers of distressed companies and
assets want to be able to see at a glance where the latest
business administrations are in their region, and this allows
them to do that.  They can also identify clusters of distressed
businesses in the UK and also, thanks to the labeling on the map,
will be able to see whether there are other types of business in
which they may be interested, elsewhere in the UK."

Businesses are flagged up with pin-pointers on the map which,
when clicked on, bring up more of the information about the
particular business that is contained in its full listing.  Many
entrepreneurs monitor the distressed business marketplace for
competitors who have been placed into administration.  They
capitalize on their competitor's failings by purchasing the
business, bidding for customer databases, equipment and property
or taking over the beleaguered company's profitable contracts.

When a company faces severe financial difficulties, one or more
of its creditors (or the company's own directors) can force it
into administration.  The administrator, a licensed insolvency
practitioner, will want to rescue the business as a growing
concern or achieve a better result for the creditors than if it
they put the business into liquidation. This is often achieved by
selling the business, or, if this is not possible, by selling the
company's assets.  In many instances, the business is still
trading.

The Business Sale Report Administrations Map is already live at
http://www.business-sale.com/administrations/map,with the full
details of the businesses available to subscribers.


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


* S&P Puts Eurozone Sovereign Ratings on CreditWatch Negative
-------------------------------------------------------------
Standard & Poor's Ratings Services placed its long-term sovereign
ratings on 15 members of the European Economic and Monetary Union
(EMU or eurozone) on CreditWatch with negative implications.

"We have also maintained the CreditWatch negative status of our
long-term rating on Cyprus and placed its short-term ratings on
CreditWatch with negative implications. The ratings on Greece
have not been placed on CreditWatch. The ratings on the eurozone
sovereigns are listed," S&P said.

"The CreditWatch placements are prompted by our belief that
systemic stresses in the eurozone have risen in recent weeks to
the extent that they now put downward pressure on the credit
standing of the eurozone as a whole," S&P said.

S&P believes that these systemic stresses stem from five
interrelated factors:

(1) Tightening credit conditions across the eurozone;

(2) Markedly higher risk premiums on a growing number of eurozone
    sovereigns, including some that are currently rated 'AAA';

(3) Continuing disagreements among European policy makers on how
    to tackle the immediate market confidence crisis and, longer
    term, how to ensure greater economic, financial, and fiscal
    convergence among eurozone members;

(4) High levels of government and household indebtedness across a
    large area of the eurozone; and

(5) The rising risk of economic recession in the eurozone as a
    whole in 2012. "Currently, we expect output to decline next
    year in countries such as Spain, Portugal and Greece, but we
    now assign a 40% probability of a fall in output for the
    eurozone as a whole," S&P said.

"Our CreditWatch review of eurozone sovereign ratings will focus
on three of the five key factors that form the core of our
sovereign ratings methodology: the 'political,' 'external,' and
'monetary' scores we assign to the governments in the eurozone
(see 'Sovereign Government Rating Methodology And Assumptions',
published June 30, 2011). Our analysis of 'political dynamics'
will focus on both country-specific and eurozone-wide issues that
appear to us to be limiting the effectiveness of efforts to
resolve the market confidence crisis. Our analysis of 'external
liquidity' will focus on the borrowing requirements of both
eurozone governments and banks. Our analysis of 'monetary
flexibility' will focus on ECB policy settings to address the
economic and financial stresses the countries in the eurozone are
increasingly facing," S&P said.

"We expect to conclude our review of eurozone sovereign ratings
as soon as possible following the EU summit scheduled for Dec. 8
and 9, 2011. Depending on the score changes, if any, that our
rating committees agree are appropriate for each sovereign, we
believe that ratings could be lowered by up to one notch for
Austria, Belgium, Finland, Germany, Netherlands, and Luxembourg,
and by up to two notches for the other governments," S&P said.

"Our ratings on Greece (Hellenic Republic; CC/Negative/C) are not
affected by the actions, as a 'CC' rating under our rating
definitions connotes our belief that there is a relatively high
near-term probability of default," S&P said.

"We are publishing separate media releases with the rationale for
each rating action on the 16 CreditWatch actions. We are also
publishing the article: 'Credit FAQ: Factors Behind Our Placement
of Eurozone Governments on CreditWatch,'" S&P said.

Following the CreditWatch listings, Standard & Poor's will issue
separate media releases concerning affected ratings on the funds,
government-related entities, financial institutions, insurance
companies, public finance, and structured finance sectors in due
course.


Ratings List             To                   From

Long-term ratings on CreditWatch negative

Austria (Republic of)
Sovereign Credit Rating  AAA/Watch Neg/A-1+   AAA/Stable/A-1+
Belgium (Kingdom of)
Sovereign Credit Rating   AA/Watch Neg/A-1+    AA/Negative/A-1+

Finland (Republic of)
Sovereign Credit Rating   AAA/Watch Neg/A-1+   AAA/Stable/A-1+

France (Republic of)
Sovereign Credit Rating   AAA/Watch Neg/A-1+   AAA/Stable/A-1+

Germany (Federal Republic of)
Sovereign Credit Rating   AAA/Watch Neg/A-1+   AAA/Stable/A-1+

Luxembourg (Grand Duchy of)
Sovereign Credit Rating   AAA/Watch Neg/A-1+   AAA/Stable/A-1+

Netherlands (The) (State of)
Sovereign Credit Rating   AAA/Watch Neg/A-1+   AAA/Stable/A-1+

Long- and short-term ratings on CreditWatch negative

Estonia (Republic of)
Sovereign Credit Rating   AA-/Watch Neg/A-1+   AA-/Stable/A-1+

Ireland (Republic of)
Sovereign Credit Rating   BBB+/Watch Neg/A-2   BBB+/Stable/A-2

Italy (Republic of)
Sovereign Credit Rating   A/Watch Neg/A-1      A/Negative/A-1

Malta (Republic of)
Sovereign Credit Rating   A/Watch Neg/A-1      A/Stable/A-1

Portugal (Republic of)
Sovereign Credit Rating   BBB-/Watch Neg/A-3   BBB-/Negative/A-3

Slovak Republic
Sovereign Credit Rating   A+/Watch Neg/A-1     A+/Positive/A-1

Slovenia (Republic of)
Sovereign Credit Rating   AA-/Watch Neg/A-1+   AA-/Stable/A-1+

Spain (Kingdom of)
Sovereign Credit Rating   AA-/Watch Neg/A-1+   AA-/Negative/A-1+


Short-term ratings on CreditWatch negative, long-term ratings
still on
CreditWatch negative

Cyprus (Republic of)
Sovereign Credit Rating   BBB/Watch Neg/A-3    BBB/Watch Neg/A-3

The ratings on France, Germany, The Netherlands, Italy, and
Belgium are unsolicited.


* S&P's Global Corporate Default Tally Rises to 43 Issuers
----------------------------------------------------------
Two U.S.-based issuers defaulted last week, raising the tally of
global corporate default in 2011 to 43, said an article published
Dec. 1 by Standard & Poor's Global Fixed Income Research, titled
"Global Corporate Default Update (Nov. 23 - 30, 2011)."

The first default, The PMI Group Inc., filed for Chapter 11 on
Nov. 28, three months after the Arizona Department of Insurance
placed the company's subsidiary, PMI Mortgage Insurance Co.,
under supervision.  As a result, Standard & Poor's Rating
Services lowered the rating on the company to 'R' -- a rating
tantamount to default under Standard & Poor's criteria.  Standard
& Poor's lowered its rating on the second issuer, AMR Corp., to
'D' after the company and its subsidiary, American Airlines Inc.,
filed for Chapter 11 bankruptcy on Nov. 29.

Of the total defaulters this year, 32 are based in the U.S.,
three are based in New Zealand, two are in Canada, and one each
is in the Czech Republic, Greece, France, Israel, Italy, and
Russia. Of the defaulters by this time in 2010, 56 were U.S.-
based issuers, 10 were from the other developed region
(Australia, Canada, Japan, and New Zealand), eight were from the
emerging markets, and two were European issuers.

Seventeen of this year's defaults were due to missed interest or
principal payments and eight were due to distressed exchanges --
both of which were among the top reasons for defaults in 2010.
Bankruptcy filings followed with nine defaults, and regulatory
actions accounted for three. Of the remaining defaults, one
issuer failed to finalize refinancing on its bank loan, one had
its banking license revoked by its country's central bank,
another was appointed a receiver, and three were confidential.
By comparison, in 2010, 28 defaults resulted from missed interest
or principal payments, 25 from Chapter 11 and foreign bankruptcy
filings, 23 from distressed exchanges, three from receiverships,
one from a regulatory directive, and one from administration.

Following a year of record-setting highs in terms of global
corporate default statistics, 2010 provided the markets with a
noticeable reversal.  In 2010, 81 global corporate issuers
defaulted, down from the record high of 265 in 2009.

None of the 81 defaulters began the year rated investment grade.
The debt amount affected by these defaults fell to $95.7 billion,
which was also considerably lower than in 2009.


* S&P: Global Default Rate Increases After 5 Mos. of Declines
-------------------------------------------------------------
The number of global weakest links increased marginally to 128 on
Nov. 15 from 124 on Oct. 21, and they have total rated debt of
US$193.1 billion, said an article published Dec. 2 by Standard &
Poor's Global Fixed Income Research, titled "Global Weakest Links
And Default Rates: The Global Default Rate Increased Slightly In
October."

Weakest links are issuers rated 'B-' and lower with either
negative outlooks or ratings on CreditWatch with negative
implications.

"So far, 41 issuers have defaulted globally in 2011 through Nov.
15, six of which have defaulted since October," said Diane Vazza,
head of Standard & Poor's Global Fixed Income Research.  "These
defaulted issuers have combined outstanding debt worth
US$69.9 billion."  By comparison, 82 issuers defaulted on debt
worth US$97.5 billion in 2010, and 264 issuers defaulted on debt
worth US$627.7 billion in 2009.

"The 12-month-trailing global corporate speculative-grade default
rate slightly increased to 1.68% in October from 1.65% in
September," said Ms. Vazza.  Regionally, the U.S. corporate
speculative-grade corporate default rate increased to 2.06% from
1.94%, and the European default rate rose sharply to 1.23% from
0.86%. The default rate in the emerging markets also increased,
to 0.58% from 0.52%.

The U.S. has the weakest links, with 83, or 64.8% of the global
total.  By sector, media and entertainment, banks, and forest
products and building materials have the greatest concentrations
of weakest links.


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

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

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

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

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

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

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

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

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

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


                            *********

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

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

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

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


                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *