TCREUR_Public/111214.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 14, 2011, Vol. 12, No. 247

                            Headlines



A U S T R I A

HYPO TIROL: Moody's Puts 'D' BFSR on Review for Downgrade


G E R M A N Y

LANTIQ: Moody's Lowers Corporate Family Rating to 'Caa1'


I R E L A N D

EIRCOM GROUP: STT Submits Balance Sheet Restructuring Proposal
MICHAEL MCNAMARA: Receiver Realizes EUR3.1-Mil. From Asset Sale
OPERA FINANCE: Fitch Affirms Rating on Class D Notes at 'Csf'
SHELBOURNE DEVELOPMENTS: Bank of Scotland Appoints Receiver


L A T V I A

* LATVIA: Authorities Probe Rumors Behind Run on Swedish Banks


N E T H E R L A N D S

ING VERZEKERINGEN: Fitch Affirms 'BB+' Rating on Hybrid Capital
PALLAS CDO: Fitch Raises Rating on Three Note Classes to 'CCsf'


R O M A N I A

ARMONIA BRAILA: Bucharest Court Approves Bankruptcy Proceedings


S W E D E N

SAAB AUTOMOBILE: Share Trading Halted; May File for Liquidation


T U R K E Y

T.C. ZIRAAT: Fitch Affirms 'BB+' Long-Term Issuer Default Ratings


U N I T E D   K I N G D O M

BATTERSEA POWER: Owners in Administration on Debt Default
COSALT PLC: David Ross Urges Shareholders to Accept Bid
GLASTONBURY FINANCE: Fitch Affirms 'C' Ratings on 3 Note Classes
LUMINAR GROUP: Peter Marks Group Buys Firm Out of Administration
ROYAL BANK: Ulster Bank Unit Incurred Losses Following Guarantee

VON ESSEN: Private Investor Buys Firm Out of Administration


X X X X X X X X

* Eurozone Crisis May Spark New Wave of Shipping Insolvencies




                            *********


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A U S T R I A
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HYPO TIROL: Moody's Puts 'D' BFSR on Review for Downgrade
---------------------------------------------------------
Moody's Investors Service has placed on review for downgrade Hypo
Tirol Bank AG's standalone bank financial strength rating (BFSR)
of D (mapping to Ba2 on the long-term scale), the A2 long-term
debt and deposit ratings and the P-1 short-term rating. The (P)A3
subordinate MTN program rating remains on review for downgrade.

The ratings for obligations that qualify for the grandfathering
of "Ausfallbuergschaft" (a guarantee obligation from the Austrian
Federal State of Tirol) remained unaffected by the rating action.

The review for downgrade on the BFSR follows the bank's report of
additional, large impairment charges in the order of EUR120
million that was incurred at its Italian subsidiary, Hypo Tirol
Bank Italy. The charges were triggered by an investigation
conducted by Hypo Tirol at its wholly-owned Italian subsidiary.
Accordingly, the review will focus on Hypo Tirol's risk
management, internal controls and -- given the size of the
impairment charge -- the loss-absorption capacity including the
bank's risk-adjusted profit generating capacity.

The review for downgrade of the A2 long-term ratings follows the
review on the BFSR. During the review, Moody's will also re-
assess the external support assumptions that it applies to Hypo
Tirol, which currently include six notches of rating uplift for
the bank's long-term ratings. Consequently, the rating agency
notes that a downgrade of the long-term debt and deposit ratings
by more than one notch cannot be ruled out as part of the rating
review.

RATINGS RATIONALE

The decision to review Hypo Tirol's BFSR for downgrade was
prompted by Moody's concerns about the bank's capacity to absorb
the additional impairment charges following an announcement on 2
December 2011 from the bank. The charges are considered large
compared with the bank's underlying earnings capacity and in
relation to its capital position; the charges also raise
questions about Hypo Tirol's risk-management policies and
internal controls. Moody's now expects that Hypo Tirol will most
likely report a group-wide loss of between EUR100 million to
EUR110 million for the full-year 2011 (based on IFRS accounting).
This will cause its Tier 1 capital ratio to decline to
approximately 5.8% by year-end 2011 -- as estimated and announced
by the bank -- from 7.4% according to full-year 2010 results.

Hypo Tirol's A2 long-term ratings currently benefit from very
high support assumptions, which result in six notches of rating
uplift from the bank's Ba2 standalone credit strength.
Accordingly, during the review Moody's will re-assess its
external support assumptions, which may be challenged in the
context of a generally weakening support environment for banks
across Europe.

What Could Change the Rating Up/Down

There is currently no upward rating pressure as expressed by the
review for downgrade.

In addition to the factors described above, the bank's BFSR could
come under downward rating pressure due to further deterioration
in either Hypo Tirol's revenue generation capacity or asset
quality, beyond levels anticipated by Moody's.

The bank's long-term ratings could come under downward pressure
if its intrinsic financial strength weakens, or if Moody's
revises downwards its local government and systemic support
assumptions currently factored into Hypo Tirol's ratings.

RATINGS AFFECTED

Hypo Tirol Bank AG:

These ratings are on review for downgrade:

- D bank financial strength rating (mapping to Ba2)

- A2 long-term bank deposit and senior unsecured debt ratings

- Prime-1 short-term ratings

PRINCIPAL METHODOLOGIES

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


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


LANTIQ: Moody's Lowers Corporate Family Rating to 'Caa1'
--------------------------------------------------------
Moody's Investors Service has downgraded to Caa1 from B3 the
corporate family rating (CFR) of Lantiq as well as the group's
bank loan rating. At the same time, the probability of default
rating (PDR) was lowered to Caa3 from Caa2. The outlook on all
ratings remains negative.

Ratings Rationale

The downgrade was prompted by the continued erosion in Lantiq's
operating performance and cash flow generation in the current
fiscal year, which was faster than we had anticipated in
September 2011, Moody's says.  "We are increasingly concerned
that the company will not be able to stabilize revenues and
earnings quickly enough to prevent a rescheduling of its debt
installments under its syndicated loan facility in the short to
medium term, which could be considered a distressed exchange, and
hence a default under Moody's definition."

The current two notch differential between the company's CFR of
Caa1 and the PDR of Caa3 reflects Moody's expectation that a
potential rescheduling of the quarterly amortization under its
credit agreement will result only in a moderate loss for lenders.

Downgrades:

Issuer: Lantiq Deutschland GmbH

  Corporate Family Rating, Downgraded to Caa1 from B3

  Probability of Default Rating, Downgraded to Caa3 from Caa2

  Senior Secured Bank Credit Facility, Downgraded to Caa1,
  LGD2 - 22% from B3, LGD2 - 24%

The Caa1 CFR is more commensurate with Lantiq's ongoing
compression in operating margins and negative free cash flow
generation, expected to result in depressed credit metrics at
fiscal year-end 2011. On the back of weakening economic prospects
which are expected to result in more subdued end-customer demand
and ongoing restructuring expenses a return to positive operating
profitability and free cash flow generation will likely take
longer than initially expected. Lantiq's performance could see
some uplift in the second half of its fiscal year 2012 when new
product versions will have been launched and upon the completion
of the ongoing restructuring program. However, we currently
expect Lantiq to continue to operate at a net loss over the
intermediate term.

Given continued negative free cash flow generation and limited
liquidity sources available the group's short-term liquidity
profile is inadequate and therefore relies on the continued
support of its major shareholder. This is a key factor to the
current rating because it provides the company with some
financial flexibility to contend with softer demand in its end-
markets and until the full benefit of its restructuring
activities will have been realized.

The negative outlook reflects the risk that support of lenders or
shareholders could evaporate before a turnaround of the company's
performance can be achieved.

Moody's could lower Lantiq's ratings further if support from
lenders or shareholders would evaporate, resulting in substantial
stress on the company's liquidity profile and financial
flexibility. This would likely trigger also a realignment of the
company's CFR with its PDR due to a lower expected recovery rate
on the syndicated term loan facilities in such a scenario.

Rating upward pressure is currently limited but an improved
liquidity profile supported by solid free cash flow generation
and positive operating margins could result in positive rating
actions.

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

Lantiq Deutschland GmbH, headquartered in Neubiberg (Munich,
Germany), is a leading designer of communications semiconductors
deployed by major carriers in traditional voice and broadband
access networks around the world. Lantiq generated revenues of
around US$339 million in the first nine months of fiscal year
ending September 30, 2011.


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


EIRCOM GROUP: STT Submits Balance Sheet Restructuring Proposal
--------------------------------------------------------------
Colm Keena at The Irish Times reports that Singapore-based
majority shareholder in Eircom, ST Telemedia (STT), has made a
balance sheet restructuring proposal to the independent directors
of the debt-riddled company.

The Irish Times notes that earlier this month, STT surprised many
observers of Eircom's fortunes when it said it would not be
submitting a proposal "owing to the continuing macro-economic
uncertainty in the euro zone".

The announcement by the Singapore fund came as Eircom's syndicate
of first-lien lenders were to meet to discuss their coordinating
committee's proposal to take over the heavily indebted business,
the Irish Times relates.  Eircom has net debt of EUR3.7 billion
and has breached its lending convenants, the Irish Times
discloses.  The company on briefed lenders about its October
trading performance, the Irish Times recounts.  While a spokesman
would not disclose what was said, it was expected that the
lenders would be told that trading conditions remain difficult,
according to the Irish Times.

Eircom's desire for a further extension to the waiver it has on
its covenant breach was also on Monday's agenda, the Irish Times
says.  The current waiver expires tomorrow, the Irish Times
discloses.

On Monday, ST Telemedia, as cited by the Irish Times, said that
while it was difficult to comprehensively assess the impact on
Eircom of possible changes within the euro zone, it had decided
to submit a balance sheet restructuring proposal.

Independent directors of Eircom have already received two
proposals for restructuring its massive debt, including a
suggestion from its first lien lenders, who are owed EUR2.4
billion, that they take full control of the business, the Irish
Times discloses.

Eircom's independent directors are due to assess the proposals
that have been submitted before taking the matter to a meeting of
the full board, the Irish Times states.  Any solution to the
company's difficulties would also have to be negotiated with the
first lien lenders, the Irish Times notes.

Headquartered in Dublin, Ireland, Eircom Group --
http://www.eircom.ie/-- is an Irish telecommunications company,
and former state-owned incumbent.  It is currently the largest
telecommunications operator in the Republic of Ireland and
operates primarily on the island of Ireland, with a point of
presence in Great Britain.


MICHAEL MCNAMARA: Receiver Realizes EUR3.1-Mil. From Asset Sale
---------------------------------------------------------------
Gordon Deegan at Irish Examiner reports that a receiver appointed
to Michael McNamara & Co. has realised over EUR3.1 million from
the sale of assets of the company.

In November 2010, the National Asset Management Agency (NAMA)
moved to appoint Declan Taite of RSM Farrell Grant Sparks as
receiver to Michael McNamara & Co., Irish Examiner recounts.
Mr. Taite was appointed statutory receiver after NAMA rejected
the company's business plan, Irish Examiner discloses.

Eight months earlier, in an interview, owner Bernard McNamara
admitted he was broke.  This month, it was reported the Co Clare
man, whose companies have debts of EUR1.5 billion, sold Mr.
McNamara's home on Dublin's Ailesbury Road, Irish Examiner
discloses.

After being appointed receiver, Mr. Taite shut down the company's
sites and laid off half of its 110 staff, Irish Examiner relates.

A receiver's extract lodged with the Companies Office shows
EUR3.15 million was realised from the sale of assets along with
EUR472,497 secured through tax refunds and rebates, Irish
Examiner notes.

It is the first receiver's extract lodged concerning the company
and it covers the period from November 12, 2010, to May 11 of
this year, Irish Examiner states.

Michael McNamara & Co. is the former flagship firm of property
development firm Bernard McNamara.


OPERA FINANCE: Fitch Affirms Rating on Class D Notes at 'Csf'
-------------------------------------------------------------
Fitch Ratings has affirmed Opera Finance (CMH)'s notes and
removed the Class A notes from Rating Watch Negative (RWN) as
follows:

  -- EUR250m Class A (ISIN: XS0241931442): affirmed at 'BBBsf';
     removed from RWN; Outlook Negative

  -- EUR50m Class B (ISIN: XS0241934628): affirmed at 'CCCsf';
     Recovery Estimate (RE) 70%

  -- EUR40m Class C (ISIN: XS0241935195): affirmed at 'CCsf';
     (RE) 0%

  -- EUR35m Class D (ISIN: XS0241935609): affirmed at 'Csf'; (RE)
     0%

The rating actions follow the Irish Government's decision not to
pursue the removal of upward-only rent reviews (UORR) on existing
business leases.  The decision not to proceed with the amendment
to the Landlord and Tenant (Business Leases Review) Bill was due
to the vulnerability to legal challenges stemming from conflicts
with the Irish Constitution.  Although the decision clarifies one
of Fitch's concerns about the portfolio's performance, the
Negative Outlook on the class A notes reflects the agency's
continuing concerns about the state of the fragile Irish property
market.

Investors and commercial landlords can now be more confident that
the cash flows generated from existing Irish commercial property
leases will not be modified.  The uncertainty created from the
proposed bill was widely believed to be one of the main
contributing factors to the lack of commercial property
transactions over the past 12 months. Fitch believes that this
decision is likely to lead to an increase in the number of
property transactions in Ireland in 2012.  The recent reduction
in stamp duty should also incentivize prospective buyers.

Although the news was met negatively by occupiers, and in
particular retail tenants, it is good news for Irish commercial
property owners.  The National Asset Management Agency (NAMA) is
now Ireland's largest landlord and property owner.  Fitch
believes the shelving of the UORR removal will be positive for
their asset values, and other, Irish portfolios.  However, Fitch
still expects full losses on the Opera Finance CMH EUR85 million
junior loan, which was transferred to NAMA in 2010.  Prime yields
for retail and office properties remain at 10-year highs but
based on low investment activity. Fitch believes that the
continued yield softening should now begin to stabilize.

The current passing rent is EUR26.5 million versus an ERV of
EUR21.8.  If the removal of UORR had been retrospective, it would
have had a negative impact on the value of the underlying assets
and ultimately the rating of the notes. Fitch's opinion on the
value of the CMH portfolio remains relatively unchanged.  The
Fitch securitized loan-to-value ratio (LTV) is 132% and the
agency expects partial losses on the class B notes and full
losses on the class C and D notes.

The portfolio was re-valued by DTZ in February 2011 (reporting a
13% decline from a February 2010 valuation).  The reported value
is now 54% below DTZ's October 2008 peak valuation.  The reported
securitized / whole loan LTVs are now 129% and 158%,
respectively.

Opera Finance (CMH) plc is a single-borrower securitization that
closed in February 2006.  The EUR375 million interest-only loan
is secured over 16 properties located in Ireland, with an initial
aggregate market value (MV) of EUR570 million.  Expected maturity
is in January 2013, while legal final maturity is in January
2015.


SHELBOURNE DEVELOPMENTS: Bank of Scotland Appoints Receiver
-----------------------------------------------------------
Barry O'Halloran at The Irish Times reports that Shelbourne
Developments has confirmed that Bank of Scotland has appointed a
receiver to some of its assets and subsidiaries at the property
company's own request.

According to the Irish Times, the group said in a statement that
it invited Bank of Scotland to appoint Michael McAteer of Grant
Thornton as receiver over "select subsidiaries and assets of the
group" and of its owner Garrett Kelleher.

"The properties in question are 75 St Stephen's Green, 46 St
Stephen's Green, Moore Street Plaza, and an Andree Putman-
designed penthouse apartment on Aston Quay, all city centre
properties developed by Shelbourne over the last 15 years," the
Irish Times quotes the statement as saying.

Shelbourne is believed to owe the bank in the region of EUR200
million, the Irish Times discloses.

The group retains control of its other Irish properties, largely
made up of commercial premises around Dublin city and county and
Cratloe Wood student village in Limerick, the Irish Times notes.

Shelbourne Developments is a property developer.


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L A T V I A
===========


* LATVIA: Authorities Probe Rumors Behind Run on Swedish Banks
--------------------------------------------------------------
Gustav Sandstrom at Dow Jones Newswires reports that Latvian
authorities Monday said that a run on Swedish banks in Latvia was
started by false rumors aimed at destabilizing the country, and
that its police forces were investigating the matter.

According to Dow Jones, Communications Director Thomas Backteman
at Swedish lender Swedbank AB said Monday that Latvians during
the weekend withdrew unusually large amounts of cash from Swedish
banks' cash machines in the country, following rumors that
Swedish banks could be in trouble.

Swedbank, as cited by Dow Jones, said that the rumors,
circulating in social media such as Twitter, include unfounded
claims that ATMs in Sweden have been shut down, that Swedbank's
operations in Estonia have closed, and that the bank's Latvian
chief executive has been arrested.

Dow Jones relates that Latvian Prime Minister Valdis Dombrovskis
said that the rumor-spreading was done "in an effort to
destabilize the situation Latvia".

Martins Panke, the prime minister's spokesman, said that police
were working on several scenarios as to who might be responsible
for the rumor-spreading but that they have yet to name any
suspects, Dow Jones discloses.

The rumors began about two weeks ago when Latvian authorities
took over Latvian bank Krajbanka and they intensified Friday,
Mr. Backteman said, but he added that they were completely
groundless, Dow Jones relates.

The weekend's cash machine withdrawals were seven times higher
than during a normal weekend, at around LVL15 million (US$29
million), Mr. Backteman, as cited by Dow Jones, said, adding that
around a third of Swedbank's Latvian cash machines were empty by
2000 GMT Sunday.

He said Swedbank, which is the largest bank in Latvia, doesn't
expect the cash withdrawals to result in any liquidity problems,
Dow Jones notes.

Latvia's financial regulator, the Financial and Capital Markets
Commission, is investigating the origin of the rumors together
with the police, spokeswoman Agnese Licite told Dow Jones
Newswires.

She said the Latvian financial sector is "very healthy" and banks
there meet the requirements for capital and liquidity, Dow Jones
relates.


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


ING VERZEKERINGEN: Fitch Affirms 'BB+' Rating on Hybrid Capital
---------------------------------------------------------------
Fitch Ratings has maintained ING Verzekeringen N.V and its
subsidiaries on Rating Watch Negative (RWN).

Fitch's action follows ING Group's recently announced EUR0.9
billion to EUR1.1 billion 4Q charge on ING US's EUR30 billion
closed block variable annuity business and the ING Group's plan
to provide a contingent funding facility of approximately EUR1.1
billion to ING US.

Although Fitch views the announcement as unfavorable, the agency
does not expect ING Verzekeringen to inject further capital in
ING US's insurance operation as a consequence of the charge and
believes the Insurance Groups Directive (IGD) regulatory solvency
ratio will remain in line with the current rating at 230%.

ING Verzekeringen and its subsidiaries' ratings continue to
reflect the uncertainty with its future ownership structure
following ING Group's announcement that it intends to dispose its
insurance operations by end-2013.  The RWN also reflects the
uncertainties that the sale will generate with respect to ING
insurance operations' franchise and business position.  Following
the sale, the insurance operations will no longer benefit from
being part of a large bank-insurance organization and, as such,
will see reduced diversification of risk and business as well as
less financial flexibility.

Fitch will resolve the RWN once the disposal is finalized and ING
Verzekeringen's new shareholding structure has been put in place.

Nonetheless, ING Verzekeringen's ratings continue to reflect its
strong business positions and geographic diversification.
Capital adequacy is in line with the current ratings and Fitch
expects the high debt leverage to reduce in the near future due
to accumulated earnings and the proceeds from the disposal of
Latin American insurance operations which are both expected to be
retained by ING Verzekeringen.

The rating actions are as follows:

ING Verzekeringen N.V.

  -- Long-term IDR: 'A-'; maintained on RWN
  -- Short-term IDR: 'F2', maintained on RWN
  -- Senior unsecured rating: 'BBB+' and 'F2'; maintained on RWN
  -- Subordinated debt: 'BBB'; maintained on RWN
  -- Hybrid capital affirmed at 'BB+'

ING America Insurance Holdings Inc

  -- Commercial paper guaranteed by ING Verzekeringen N.V.: 'F2';
     maintained on RWN

Lion Connecticut Holdings

  -- Senior unsecured notes, guaranteed by ING Group affirmed at
     'A'


PALLAS CDO: Fitch Raises Rating on Three Note Classes to 'CCsf'
---------------------------------------------------------------
Fitch Ratings has upgraded Pallas CDO II B.V. (Pallas CDO II), a
cash flow securitization of structured finance assets, as
follows.

  -- Class A-1-a (XS0268818209): upgraded to 'BBB-sf' from
     'BBsf'; Stable Outlook

  -- Class A-1-d (XS0271520669): upgraded to 'BBB-sf' from
     'BBsf'; Stable Outlook

  -- Class A-2 (XS0268904546): upgraded to 'B+sf' from 'CCCsf';
     Stable Outlook

  -- Class B (XS0268818548): upgraded to 'B-sf' from 'CCsf';
     Stable Outlook

  -- Class C (XS0268818894): upgraded to 'CCCsf' from 'Csf'

  -- Class D-1-a (XS0268819199): upgraded to 'CCsf' from 'Csf'

  -- Class D-1-b (XS0268819272): upgraded to 'CCsf' from 'Csf'

The upgrades reflect the sustained improvement in the portfolio's
credit quality since the notes were downgraded in December 2009.
Since the last review in January 2011 when the notes were
affirmed, the 'CCCsf' and below bucket has fallen to 2.5% of the
portfolio from 11.9%, while current defaults have decreased to
EUR1.9 million from EUR3.8 million.  The two largest industry
sectors are RMBS at 58% of the portfolio and CMBS at 28%.  All
the over-collateralization (OC) and interest coverage (IC) tests
are currently passing their trigger levels.  The OC tests have
demonstrated significant improvement since their lowest point in
May 2010.

Since the credit crisis, the portfolio manager has tried to build
par by repurchasing EUR12 million of senior notes and buying
discounted assets.  This has helped mitigate some of the defaults
and portfolio deterioration sustained since close, and the
performing portfolio and principal cash currently stands at
EUR418 million compared to a total liabilities balance of EUR420
million.  The transaction exited its reinvestment period in
October this year.  However, the portfolio manager has the
discretion to continue to reinvest certain principal proceeds
including unscheduled principal proceeds, and sales proceeds from
credit improved and credit impaired assets subject to compliance
with certain conditions.

Since the last review in January, Fitch notes that the portfolio
manager has traded into higher-rated assets, which has improved
the portfolio credit quality and the OC tests, the latter by
reducing the ratings-based haircuts.  The manager has also traded
out of UK assets into Spanish assets, particularly into Spanish
prime RMBS, which now makes up 25% of the portfolio.  Of this,
5.6% of the portfolio comprises 2006-2007 vintage Spanish prime
RMBS assets.

Fitch observes that the assets from the peripheral eurozone
countries (i.e. Spain, Portugal, Italy and Greece) have increased
to 47% of the portfolio compared to 29% in December 2009 when the
notes were last downgraded.  In Fitch's view, the portfolio is
exposed to the performance of securitizations from those
jurisdictions, and the agency will closely monitor the impact of
the sovereign pressures in the peripheral eurozone countries on
the transaction.

Fitch believes that a material risk for the transaction is that
the portfolio's underlying structured finance assets' maturity
may extend beyond their reported weighted average expected life.
This was taken into account in the agency's portfolio analysis.

Pallas CDO II has an event of default (EoD) trigger if the senior
tranches become under-collateralized.  The agency estimated from
the May 2010 report that there was only a 2.7% of OC buffer above
the EoD trigger remaining.  This cushion has since improved and
now stands at a relatively healthy 14%, as estimated from the
October 2011 report.  If the portfolio experiences further
negative credit migration such that the senior tranches become
under-collateralized, the EoD trigger could present an additional
pressure point for the transaction, where the senior noteholders
could vote to liquidate the transaction, potentially at a loss to
one or more classes of noteholders.


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R O M A N I A
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ARMONIA BRAILA: Bucharest Court Approves Bankruptcy Proceedings
---------------------------------------------------------------
Irina Popescu at Romania Business Insider reports that the
Bucharest court approved bankruptcy proceedings for the Armonia
Braila shopping center at the beginning of December

The shopping center was closed down in August 2009, soon after
opening, due to low visitor numbers and weak sales recorded by
the main tenant, a Carrefour hypermarket, Romania Business
Insider recounts.

The investment for Armonia Braila amounted to around
EUR45 million, and the shopping center had a rentable area of
29,000 square meters, according to Romania Business Insider
discloses.  The main creditor was Volksbank, and the total value
of the debt reaches around EUR35 million, Romania Business
Insider says.  Casa de Insolventa Transilvania is the judiciary
administrator of the shopping center and the assets' sale process
will begin next spring, Romania Business Insider notes.

The Armonia Braila shopping center is owned by Red Project, a
company founded by businessman Andrew Stear and investment funds
Warburg Pincus and GED.


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


SAAB AUTOMOBILE: Share Trading Halted; May File for Liquidation
---------------------------------------------------------------
The Associated Press reports that the Dutch financial market
regulator on Monday halted trading in shares of Swedish carmaker
Saab's parent company until further notice.

The Netherlands' Financial Market Authority did not specify a
reason for halting trade in the stock of Swedish Automobile N.V.,
the AP says.

According to the AP, prominent Swedish newspaper Dagens Industri
reported earlier in the day without naming any sources that the
company's chief executive Victor Muller was preparing to file for
liquidation.

Saab could not be reached for comment.  The company's most recent
public statement is that it is continuing to seek new financing,
the AP notes.

As reported by the Troubled Company Reporter-Europe on Dec. 9,
2011, Bloomberg News related that Mr. Muller said that the
company is in discussions with Zhejiang Youngman Lotus Automobile
and a Chinese bank to secure loans that it needs in a "very few
days" to avert bankruptcy.

Mr. Muller, as cited by Bloomberg, said that unlike Saab's
earlier agreements with Youngman, this deal wouldn't involve the
Chinese manufacturer taking a stake in Saab, which would allow
the transaction to proceed without the approval of former owner
General Motors Co.  GM, which licenses technology to Saab, has
disapproved of previous proposals in which Youngman would take
ownership, Bloomberg noted.  Pang Da agreed in October to buy a
40% stake in Saab, and that deal collapsed when GM objected,
Bloomberg recounted.  Bloomberg noted that Mr. Muller said the
Vaenersborg District Court in southwestern Sweden is likely to
rule this week on the application by the administrator to end
Saab's court-administered reorganization.

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


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


T.C. ZIRAAT: Fitch Affirms 'BB+' Long-Term Issuer Default Ratings
-----------------------------------------------------------------
Fitch Ratings has affirmed four Turkish state-owned or state-
controlled banks' Viability Ratings (VR) and Issuer Default
Ratings (IDR).  The banks are T.C. Ziraat Bankasi A.S. (Ziraat),
Turkiye Halk Bankasi A.S. (Halkbank), Turkiye Vakiflar Bankasi
T.A.O. (Vakifbank) and Turkiye Kalkinma Bankasi A.S. (TKB).

On November 28, 2011, Fitch revised these banks' Outlooks to
Stable from Positive.  These banks' IDRs and Support Rating
Floors are equalized with the Turkish sovereign's Long-Term IDRs
reflecting Fitch's view that the state authorities would seek to
support the banks if required.  This is based on the state's
majority ownership and/or control of the banks. Fitch considers
the authorities' ability to provide such support is moderate
given Turkey's sovereign rating of 'BB+'.

Ziraat's 'bb+' VR reflects the bank's extensive franchise,
especially in terms of retail and agricultural banking, its
strong funding profile, stemming from its core deposit base,
sound asset quality and healthy capitalization.  It also reflects
its declining but still high volume of government securities.
Ziraat is the largest bank in Turkey by branch network and total
unconsolidated assets with market share of 14.2% at end-Q311 and
is fully owned by the Turkish Treasury.

Halkbank's 'bb+' VR reflects its competitive position given its
long track record of managing its core small enterprises (SME)
business and improving its retail lending franchise as well as
funding through well-diversified stable retail deposits and
adequate capitalization.  Profitability is still strong, albeit
declining, and asset quality is improving as its non-performing
loans (NPL) ratio converges to the sector average.  Halkbank has
a strong presence in rural areas and it is expanding in large
cities with a greater contribution to GDP.  Halkbank is the sixth
largest bank in Turkey by unconsolidated assets with a market
share of 7.8% at end-Q311 and is 75% owned by the Turkish
Treasury, with the remainder being free-float.

Vakifbank's 'bb+' VR reflects the bank's strong deposit
franchise, solid liquidity and consistent performance as well as
the risks from the above market growth in higher risk SME
segments.  Vakifbank is 58.5% owned by the General Directorate of
Foundations (GDF), which is fully-controlled and managed by the
Turkish state, 16.1% by the employee pension fund and 25.2% free
float.  Vakifbank is the seventh-largest bank in Turkey by
unconsolidated assets, with a market share of 7.7% at end-Q311.

TKB's Long-Term IDRs reflect the strong likelihood that its 99%
shareholder, the Under-Secretariat of the Turkish Treasury, would
seek to support the bank, if needed.  In line with Fitch's
policies with regards to development banks a VR has not been
assigned to the bank.  TKB is a small non-deposit-taking
development and investment bank, focusing on providing medium-
and long-term project finance and working capital loans in
geographical areas that have been identified by the government as
high priority.  88% of the bank's total funding provided by
international financial institutions was guaranteed by the
Turkish Treasury at end-Q311.

The rating actions are as follows:

Ziraat, Halkbank, Vakifbank:

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

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

  -- VR: affirmed at 'bb+'

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

  -- Support Rating: affirmed at '3'

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

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

TKB:

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

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

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '3'

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

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


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


BATTERSEA POWER: Owners in Administration on Debt Default
---------------------------------------------------------
Chris Spillane and Neil Callanan at Bloomberg News report that
the owner of Battersea Power Station, the London landmark idled
for the past 28 years, was put into administration by U.K. Judge
Geoffrey Charles Vos after its owners failed to repay senior
lenders owed more than GBP500 million (US$781 million).

Judge Vos granted a request by creditors led by Lloyds Banking
Group Plc and Ireland's National Asset Management Agency to
appoint an administrator to sell the site, according to
Bloomberg.

Bloomberg notes that the creditors will try to recover the entire
502 million pounds owed by the project's owners by selling the
site or the debt, two people familiar with the matter said
earlier this month.

Ernst & Young was appointed as the administrator for investment
companies of Real Estate Opportunities Plc including REO Power
Station Ltd. and REO Site Assembly Ltd.

Bloomberg notes that the 38-acre (15-hectare) site was valued at
500 million pounds, controlling shareholder Real Estate
Opportunities said on Oct. 26.  REO was given planning consent a
year ago for a GBP5.5 billion redevelopment of the site, which is
2.2 miles (3.5 kilometers) by car from the Houses of Parliament.

On Nov. 29, the creditors called in loans to the project's owner,
Battersea Power Station Shareholder Vehicle Ltd, Bloomberg
recalls.

REO said it was still in talks to sell its 54% stake, Bloomberg
relates.

Battersea Power Station, with four 350-foot-high smokestacks, is
Europe's largest brick building.


COSALT PLC: David Ross Urges Shareholders to Accept Bid
-------------------------------------------------------
Simon Mundy at The Financial Times reports that David Ross,
chairman of the Cosalt plc, warned shareholders on Monday that
the group faces collapse if they do not accept his bid.

Mr. Ross, co-founder of the Carphone Warehouse, last month made
an offer for the 85% of Cosalt's equity that he does not own, the
FT recounts.  At 0.1p a share, the bid values the company at
GBP400,000 -- a fraction of the GBP93 million market
capitalization it enjoyed in 2007, the FT discloses.

"I do not wish to dwell on the reasons that have led to this
unhappy position, but want to emphasize to you that the reason
behind my [bid] is to secure the future of the company and the
positions of all stakeholders . . . particularly its many
employees," the FT quotes Mr. Ross as saying.  "If my offer is
not accepted by shareholders, then unless any other offers of
finance are provided to the Company in the meantime, I do not
believe the Company has the ability to continue as a going
concern."

According to the FT, some shareholders have argued that
Mr. Ross's offer is unjustly low, and that he contributed to the
current situation by overseeing steps such as a heavily dilutive
equity raising in 2009.

Shareholders have until December 20 to respond to the offer, the
FT notes.

Shares in Cosalt have fallen more than 90% since October, when
the company warned that a delay in the sale of its marine
division would hurt its full-year revenues, the FT states.  The
management has been battling to deal with debt incurred during an
aggressive acquisition drive in the years before the 2008 credit
crisis, the FT relates.

Cosalt plc -- http://www.cosalt.com/-- is engaged in the
provision of safety products and services for marine industry and
offshore oil and gas industry.


GLASTONBURY FINANCE: Fitch Affirms 'C' Ratings on 3 Note Classes
----------------------------------------------------------------
Fitch Ratings has affirmed Glastonbury Finance 2007-1 P.L.C.'s
notes, as follows:

  -- GBP1.8m class X (XS0292542734): affirmed at 'AAAsf', Outlook
     Stable

  -- EUR129.1m class A1 EUR (no ISIN): affirmed at 'BBBsf',
     Outlook Negative

  -- GBP56.7m class A1 GBP (no ISIN): affirmed at 'BBBsf',
     Outlook Negative

  -- GBP33.0m class A2 (XS0292543039): affirmed at 'Bsf', Outlook
     Negative

  -- GBP32.8m class B (XS0292543112): affirmed at 'CCCsf'

  -- GBP32.1m class C (XS0292543468): affirmed at 'CCsf'

  -- GBP16.8m class D (XS0292543542): affirmed at 'Csf'

  -- GBP11.0m class E (XS0292543898): affirmed at 'Csf'

  -- GBP4.5m class F (XS0292543971): affirmed at 'Csf'

The affirmations reflect the portfolio's stable performance.  The
'CCCsf' and below bucket has declined to 11.8% of the portfolio
notional, compared to 14.8% one year ago. CMBS represents 82% of
the portfolio with whole business securitizations (WBS) making up
the remainder.  Fitch believes that a material risk for the
transaction is that the underlying structured finance assets'
maturity may extend beyond their reported weighted average life.
Fitch incorporated this extension risk into its analysis of the
portfolio.

All the over-collateralization (OC) tests are failing, although
there has been a gradual improvement since the end of the
reinvestment period in May 2010.  According to the transaction
documents, the collateral manager may continue to sell defaulted
or credit-risk assets after the reinvestment period, but may no
longer reinvest any principal proceeds.

The Negative Outlook on the class A1 and A2 notes reflects their
sensitivity to the idiosyncratic risk of default of any
individual obligor.  The largest obligor in the portfolio
represents 11.8% of the notional and the top five assets account
for 48.3%.  Fitch expects the obligor concentration in the
portfolio to increase further as new assets are no longer
introduced into the portfolio due to the end of the reinvestment
period.

Glastonbury Finance 2007-1 P.L.C. is a managed cash arbitrage
securitization of CMBS and WBS assets.  The issuer has been
incorporated as a special-purpose vehicle (SPV) to issue
approximately GBP354 million of floating-rate and subordinated
notes.  The collateral is actively managed by Palatium Investment
Management.  Since the end of the reinvestment period, any
amortization and sales proceeds are used to sequentially repay
the outstanding notes.


LUMINAR GROUP: Peter Marks Group Buys Firm Out of Administration
----------------------------------------------------------------
Mark Wingett at Big Hospitality reports that a new group led by
industry veteran Peter Marks has completed the acquisition of
Luminar Group Holdings plc for GBP45 million.

Mr. Marks, a former Luminar managing director, has linked up with
Ice Planet's Alex Geffert, who formely headed up Whitbread's
nightclub division, and entrepreneur and nightclub owner Joe
Heanen, to rescue the company, which fell into administration
with debts of around GBP85 million in October, according to Bug
Hospitality.

The report relates that the deal is expected to save up to 3,000
jobs.

Bug Hospitality notes that the group, which is believed to be
backed by two high-net worth Irish individuals, said that they
were committed to further investment in the company and to
refreshing and developing its core brands such as Oceana and Lava
& Ignite.

The report notes that the sale price of $45 million is believed
to be well above the GBP30 million bids that were previously
thought to be on the table for Luminar Group, especially as the
company is understood to have reported a sales decline of close
to 20% in November.

"I'd be amazed if the cash price was much higher than GBP20
million.  If the GBP45 million is correct, the rest must be in
the form of deferred consideration or some sort of performance-
related earn out," the report quoted an unnamed analyst as
saying.

As reported in the Troubled Company Reporter on Oct. 28, 2011, MK
News said that Luminar Group has gone into administration, saying
it cannot meet its banking obligations.  Luminar Group said it
could not pay back debts to Lloyds TSB Bank, Barclays Bank and
the Royal Bank of Scotland which due to be repaid on Oct. 26,
according to MK News.  The report related that the company's
shares were temporarily suspended from trading when the news was
announced.

                      About Luminar Group

Based in Milton Keynes, United Kingdom, Luminar Group Holdings
plc -- http://www.luminar.co.uk/-- is engaged in the ownership,
development and operation of nightclubs and themed bars.  Its
main branded venues are Oceana, Liquid, and Lava & Ignite.  The
Company's product brands include Big Night Out, Vibe, Red Carpet
Moments and UK Club Culture (UKCC).  Oceana has five bars, two
clubs, and one amazing night.

                         *     *     *

As reported in the Troubled Company Reporter on Oct. 28, 2011, MK
News said that Luminar Group has gone into administration, saying
it cannot meet its banking obligations.  Luminar Group said it
could not pay back debts to Lloyds TSB Bank, Barclays Bank and
the Royal Bank of Scotland which due to be repaid on Oct. 26,
according to MK News.  The report related that the company's
shares were temporarily suspended from trading when the news was
announced.


ROYAL BANK: Ulster Bank Unit Incurred Losses Following Guarantee
----------------------------------------------------------------
Simon Carswell at The Irish Times reports that Ulster Bank, a
subsidiary of Royal Bank of Scotland, lost GBP732 million
(EUR864.9 million) in deposits in the four days after the
Government introduced the bank guarantee in September 2008.

A report by the Financial Services Authority into the failure of
the nationalized British bank said the guarantee, which did not
cover Ulster Bank as it was foreign-owned, "further intensified
pressure on RBS's liquidity position following the failure of
Lehman Brothers".

Seven days after the guarantee, RBS began borrowing emergency
funding from the Bank of England and eight days later, was
recapitalized by the British government with GBP20 billion
(EUR23.6 billion) to prevent its collapse, the Irish Times
relates.

The report showed Ulster Bank had bad debts of GBP4.4 billion
(EUR5.2 billion) between 2008 and 2010 on loans of GBP19 billion
(EUR22.4 billion) on property loans, including commercial
investment and residential development, the Irish Times
discloses.

The total loan impairments increased from GBP275 million (EUR325
million) in 2008 to GBP1.3 billion (EUR1.5 billion) in 2009 and
GBP2.7bn (EUR3.2 billion) the following year, according to the
Irish Times.

The FSA found it "seems likely" RBS senior management and its
board were not sufficiently aware of the total exposure to
commercial property across its divisions, including Ulster Bank,
the Irish Times notes.

The FSA report found the impairments on the Ulster Bank loans
amounting to 7.5% of the bank's end-of-2008 loans was the highest
of any division at RBS, the Irish Times states.

The report found that bad loans within Ulster Bank's commercial
and development property loans, at 22.15%, amounted to the second
highest at RBS by category, the Irish Times says.

According to the Irish Times, the report said that the cumulative
losses reflected "the scale of poor corporate property lending in
Ireland, in which RBS participated".

                            About RBS

The Royal Bank of Scotland Group plc (NYSE:RBS) --
http://www.rbs.com/-- is a holding company of The Royal Bank of
Scotland plc (Royal Bank) and National Westminster Bank Plc
(NatWest), which are United Kingdom-based clearing banks.  The
company's activities are organized in six business divisions:
Corporate Markets (comprising Global Banking and Markets and
United Kingdom Corporate Banking), Retail Markets (comprising
Retail and Wealth Management), Ulster Bank, Citizens, RBS
Insurance and Manufacturing.  On October 17, 2007, RFS Holdings
B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V.,
Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and
controlled by RBS, completed the acquisition of ABN AMRO Holding
N.V. (ABN AMRO).  In July 2008, the company disposed of its
entire interest in Global Voice Group Ltd.


VON ESSEN: Private Investor Buys Firm Out of Administration
-----------------------------------------------------------
Emma Eversam at Big Hospitality reports that Hotel Verta has been
acquired out of administration by a private investor for
approximately GBP20 million.

The latest development is expected to save 75 jobs, according to
Big Hospitality.

The report notes that the Hotel Verta, which remained owned by
former Von Essen Managing Director Andrew Davis after the rest of
hotel chain went into administration, was placed into
administration itself at the end of July.

Hotel Verta has been run by administrators for Ernst & Young
while property agents Christie & Co searched for new owner, Big
Hospitality discloses.

von Essen hotel chain owns 28 luxury hotels in the UK and France.

                           *     *     *
As reported in the Troubled Company Reporter-Europe on April 25,
2011, BBC News said the holding company of the von Essen hotel
chain has appointed accountants Ernst & Young as administrators.
SoGlos.com related that von Essen is reported to have debts of
more than GBP25 million.  SoGlos.com noted that while
administrators have been appointed and the portfolio of hotels
are expected to be sold off either as a group or as individual
properties, the hotels are all expected to continue to trade as
usual.


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


* Eurozone Crisis May Spark New Wave of Shipping Insolvencies
-------------------------------------------------------------
Robert Wright at The Financial Times reports that fears are
mounting that the eurozone financial crisis could spark a fresh
wave of shipping insolvencies, after funding problems at many
leading European banks accelerated falls in vessel values,
triggered by the worst conditions in some shipping markets in 25
years.

Several of the world's most important shipping financiers have
told the FT that liquidity problems are putting banks off
financing potential purchases of ships that come up for sale,
pushing down the values they achieve.  That is prompting banks to
worry about the value of similar ships pledged as collateral on
their loans, the FT notes.  According to the FT, a downward
spiral in values is developing as falling values prompt banks to
pressurize owners to sell off further ships.

The warnings come at the end of a year so grim for some of the
most important shipping segments that many involved are already
comparing conditions to the prolonged slump in the mid-1980s, the
FT relates.

                            *********

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

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

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

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


                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *