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                           E U R O P E

            Friday, January 6, 2012, Vol. 13, No. 5



* Bankrupt French Breast Implant Maker Used Non-approved Gels


MANROLAND AG: Attracts Close to 10 Potential Buyers


* GREECE: May Default on Debts in March if Salary Cuts Not Okayed


* HUNGARY: Compulsory Liquidation Procedures Up 16.5% in 2011


* ICELAND: Corporate Bankruptcies Up 63% in January-November 2011


ZALCO: In Talks with Eight Potential Bidders


RADECE PAPIR: Files Financial Restructuring Plan in Celje Court


PUBLICO: Files for Creditor Protection
* VALENCIA: Fails to Repay EUR123-Mil. Debt to Deutsche Bank
* SPAIN: To Set Aside EUR50 Billion in New Bank Provisions


BYGGRECYCLING: Heavy Losses Prompt Bankruptcy Filing

U N I T E D   K I N G D O M

DARLINGTON FC: Enters Administration as Bid Fails
EMI GROUP: Managers Forfeit GBP41 Million in Bonuses
HILLSBOROUGH FORUM: Fund Shortage Prompts Charity's Liquidation
LA SENZA: Bosnia & Greece Stores Sparred From Closure
PLYMOUTH ALBION: Chair Seeks Investment to Avert Administration


* BOOK REVIEW: Ralph H. Kilmann's Beyond the Quick Fix



* Bankrupt French Breast Implant Maker Used Non-approved Gels
Dow Jones' DBR Small Cap, citing France-Presse, reports that a
lawyer said the founder of the French firm that made breast
implants feared to be at risk of rupturing has admitted using
non-approved but non-toxic silicone gels.


MANROLAND AG: Attracts Close to 10 Potential Buyers
Sheenagh Matthews and Aaron Kirchfeld at Bloomberg News report
that Manroland AG, which filed for insolvency in November, has
attracted interest from close to 10 bidders.

According to Bloomberg, two people familiar with the matter said
that domestic and foreign strategic buyers and financial
investors have handed in offers for the company.

Werner Schneider, Manroland's administrator, said in a statement
on Wednesday that he is aiming to find a buyer for "key company
segments" by the end of the current insolvency proceedings on
Jan. 31.  Mr. Schneider, as cited by Bloomberg, said that while
nothing has been signed yet, there is "promising" interest in the

"The prospects of a successful investors' agreement for the
insolvent Manroland have improved further," Bloomberg quotes
Mr. Schneider as saying in the statement as saying.  "We now have
parties seriously interested in all three production sites, in
Augsburg, Offenbach and Plauen."

Manroland AG is an Offenbach-based printing-press maker.


* GREECE: May Default on Debts in March if Salary Cuts Not Okayed
BBC News reports that Greek Prime Minister Lucas Papademos has
said Greece may default on its debts in March unless unions
accept further cuts to salaries.  He said, according to the
report, that more cuts were needed to avoid exiting the eurozone.

Analysts say the warning is to prepare Greece for more austerity
measures, BBC notes.

European Commission, International Monetary Fund, and European
Central Bank inspectors, known as the troika, arrived to assess
Greece's progress in cutting its deficit on January 15.  They
will decide whether to provide further bailout funds to the

"Without an agreement with the troika and further funding, Greece
in March faces an immediate risk of an uncontrolled default," BBC
quotes Mr. Papademos as saying.

However, analysts said the risks of not providing the funding
were too great, BBC notes.  "Without a firewall in place to stem
contagion from a Greek default to other European banks, it is
very unlikely the troika will decide to deny Greece the funds and
cut the country loose," Megan Greene at Roubini Global Economics
told the BBC.  "However, even if the troika does transfer the
next tranche of funds to Greece, the country risks a hard
default, unless a deal is agreed on private sector involvement
before March."

Greece owes a large part of its debt to private sector investors
and the majority of these loans must be refinanced by March 12,
BBC discloses.

The country is currently negotiating with the troika about a
second bailout of EUR130 billion (US$169.5 billion,
GBP108.7 billion), which was agreed in principle in October 2011,
provided the country takes further steps to cut its deficit and
restructure its economy, BBC relates.


* HUNGARY: Compulsory Liquidation Procedures Up 16.5% in 2011
MTI-Econews, citing company information provider Opten, reports
that compulsory liquidation procedures were initiated against
20,300 Hungarian companies in 2011, up 16.5% from 2010.

According to MTI, Opten strategic director Hajnalka Csorbai said
the trend was likely to continue and the number of compulsory
liquidation procedures started in 2012 could reach 24,000.

The number of voluntary liquidations climbed 67.8% to 22,958 in
2011, MTI notes.


* ICELAND: Corporate Bankruptcies Up 63% in January-November 2011
Omar R. Valdimarsson at Bloomberg News, citing Statistics
Iceland, reports that a record number of Icelandic corporations
were declared bankrupt in the first 11 months of 2011.

According to Bloomberg, the Reykjavik-based office said in a
statement on its Web site that a total of 1,432 companies were
declared bankrupt by Icelandic courts from January through
November last year, a 63% increase from the previous year.

"The huge number of company failures indicates that the economy
is still severely impaired after the crisis," Bloomberg quotes
Ingolfur Bender, an economist with Islandsbanki, as saying in a
note to clients on Wednesday.  "It also bears witness to the
extensive financial restructuring currently under way."


ZALCO: In Talks with Eight Potential Bidders
Silvia Antonioli and Harpreet Bhal at Reuters report that ZALCO
is in talks with eight potential buyers for a takeover of part or
all of its plant in Zeeland, the Netherlands.

"We have now started the bidding process, and there are eight
parties interested so far," Ernst Butterman, one of the two
official receivers, told Reuters in a phone interview.  "They got
all the information from us, and we are now waiting for their

The interested parties, which include local and international
companies and financial and physical players, have a few weeks to
submit their bids for the plant or parts of it, Reuters

Mr. Butterman, as cited by Reuters, said that "Any option is

According to Reuters, ZALCO's Web site relates that the company's
production facilities include two furnaces for producing anodes,
512 electrolysis baths for making primary aluminium and two
recycling furnaces, 10 preparation furnaces and four
homogenisation furnaces for end products.

Based in Vlissingen, the Netherlands, ZALCO is a primary
aluminium producer.  The plant has a production capacity of
275,000 tonnes per year of aluminium.  It employed 500 people.


RADECE PAPIR: Files Financial Restructuring Plan in Celje Court
EUWID reports that insolvent paper manufacturer Radece Papir has
applied for the opening of compulsory settlement proceedings and
has filed a financial restructuring plan with the District Court
of Celje in December.

EUWID relates that Radece Papir blames its financial situation on
production difficulties, extended machine downtime as well as
soaring cotton linters and pulp prices, which saw net losses
amounting to almost EUR6.5 million in the first nine months of
the financial year 2011.

Radece Papir d.o.o. is Slovenia-based paper manufacturer. The
company runs two paper machines and employs a total of 372
people.  Radece papir d.o.o. operates as a subsidiary of G-M&M.


PUBLICO: Files for Creditor Protection
The Associated Press reports that Spanish newspaper Publico has
filed for protection from creditors under bankruptcy law.

According to the AP, the left-leaning daily's publisher
Mediapubli blamed the move on falling advertising revenue,
changes in the print media industry and trouble finding

Publico now has a staff of about 160, after shedding 30 jobs in
September, the AP discloses.

A committee representing Publico workers said they have not been
paid for December, the AP notes.

Mediapubli also sought protection for another paper it owns, La
Voz de Asturias, based in northern Spain, relates.

Publico was founded in 2007 and as of late last year, had an
average daily circulation of about 82,000.

* VALENCIA: Fails to Repay EUR123-Mil. Debt to Deutsche Bank
Jonathan House and David Roman at Dow Jones Newswires report that
in a new sign of a Spain's deepening financial crisis, the
regional government of Valencia on Wednesday said it was a week
late in repaying a EUR123 million (US$160 million) debt to
Deutsche Bank AG.

According to Dow Jones, a spokeswoman for the Valencia government
said the region had assistance from Spain's central government in
Madrid in finding a solution to its liquidity crunch, but said
Madrid didn't provide extra funds or a guarantee.

Dow Jones relates that the spokeswoman said the central
government was "sensitive" to Valencia's difficulties, but
declined to elaborate.  El Pais newspaper reported on Wednesday
that Madrid had persuaded an unnamed bank to provide Valencia
with a short-term loan so it could repay Deutsche Bank, Dow Jones

In highly decentralized Spain, regional governments control
around a third of spending, Dow Jones discloses.  But, faced with
gaping budget gaps and towering debt loads, they have faced
mounting difficulties to finance themselves, Dow Jones states.

Valencia last month failed to raise the full amount of a new
EUR1.8 billion bond issue, prompting ratings firm Moody's
Investors Service Inc. to downgrade it to junk status, while
Standard & Poor's downgraded it to the brink of junk, Dow Jones

Valencia is the center of the collapse of the country's housing
industry, Dow Jones says.  After years of high spending, its
government is the most indebted of Spain's 17 regions, with a 20%
ratio of debt to regional gross domestic product-twice as high as
a decade ago, according to Dow Jones.

* SPAIN: To Set Aside EUR50 Billion in New Bank Provisions
The Financial Times reports that Spain said it expects its banks
to set aside up to EUR50 billion (US$64.5 billion) in further
provisions on their bad property assets as part of a new round of
reforms for the country's financial sector.

According to the FT, Luis de Guindos, economy minister in the
center-right government that took office two weeks ago after
defeating the Socialists, said on Wednesday it was essential that
the banks clean up their balance sheets without imposing a burden
on the treasury.

The EUR50 billion figure, equivalent to about 4% of Spain's GDP,
is higher than private expectations by bankers, the FT notes.

Some analysts had speculated that the Popular party government of
Mariano Rajoy, prime minister, would set up a large, state-funded
"bad bank" like Ireland's National Asset Management Agency to
absorb the non-performing assets of lenders hit by the collapse
of the housing bubble in 2007 and the subsequent European
economic crisis, the FT relates.

However, strong Spanish banks such as Santander and BBVA opposed
the "bad bank" idea, arguing that they could handle their own
problems and that weaker lenders should if necessary be absorbed
by their stronger rivals, the FT states.

That is the path now being taken by the government with Mr. de
Guindos saying there should be another round of consolidation
among cajas, or savings banks, according to the FT.

Of the EUR338 billion of property-related assets in the Spanish
financial system, about EUR176 billion are bad loans, substandard
loans or repossessed properties and land, according to the Bank
of Spain, the FT discloses.

The banks have already covered a third of these bad assets with
provisions, the FT states.  They were expecting to be told by the
government and the Bank of Spain to set aside a further 20%, the
FT notes.  An extra EUR50 billion -- more than 28% -- would be
more of a stretch, especially when they are simultaneously trying
to increase capital ratios to meet European regulatory demands,
the FT says.


BYGGRECYCLING: Heavy Losses Prompt Bankruptcy Filing
Aggregates Business Europe reports that Byggrecycling has filed
for bankruptcy.

The company, based in Sundsvall, has been active for 13 years but
has shown heavy losses in recent years, having to reduce its
workforce as a result, Aggregates Business Europe discloses.

Byggrecycling is a Swedish demolition and second hand
construction materials supplier.

U N I T E D   K I N G D O M

DARLINGTON FC: Enters Administration as Bid Fails
Mary Vancura at Business Sale reports that Darlington Football
Club has been placed into administration after a consortium of
local businessmen were unable to reach a buyout deal with the

The Blue Square Bet Premier side had been the subject of a bid by
a group calling themselves the Darlington Football Club Rescue
Group (DFCRG), according to Business Sale.  The report relates
that current owner and chairman, Raj Singh, said he had been
unable to settle on a sustainable deal with the group and had
called in administrators.

"I for one certainly didn't envisage this when I took over the
club back in August 2009. . . . Over the last two months we've
been trying to make necessary cutbacks to be able to ensure the
future of the club, including negotiating reduced players' wages
and a settlement with (former manager) Mark Cooper," the report
quoted Mr. Singh as saying.

The report notes that Mr. Singh said he admired the members of
DFCRG for their intentions towards the club, but that their offer
had been unviable for the short-term future of the club.

Darlington will now face a points deduction in the Football

Mr. Singh said that interested parties would now be able to
negotiate any buyout deals with the club's administrators,
Business Sale adds.

EMI GROUP: Managers Forfeit GBP41 Million in Bonuses
Juliette Garside of the guardian reports that EMI Group's
managers including chief executive Roger Faxon forfeited an
estimated GBP41 million in bonuses after the company went into
administration last year.

Mr. Faxon and other senior colleagues signed up to generous
incentive schemes after the company was taken private by Guy
Hands in 2007, but annual accounts published on Wednesday show
those schemes were cancelled before a single pound was paid out,
according to the guardian.

The report notes that filings with Companies House show the three
bonus schemes Mr. Hands set up to motivate senior managers could
have paid up to GBP41 million in cash and shares had all gone to
plan, according to accounting estimates published with the latest
accounts, which cover the period through March 31, 2011.  the
guardian notes that they were due to pay out by 2014 or earlier
if the group was sold or publicly listed, but Citigroup cancelled
the payments upon acquiring EMI because "the sale proceeds did
not exceed the relevant amount."

The report discloses that the incentive plan beneficiaries have
never been named but are believed to have included Mr. Faxon, the
recorded music division boss Elio Leoni-Sceti and chief operating
officer Leo Corbett.

Also disclosed for the first time in the accounts is the
appointment to EMI's board of a Citigroup employee whose email
predicting a huge loss on the deal made headlines last year, the
report adds.

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

HILLSBOROUGH FORUM: Fund Shortage Prompts Charity's Liquidation
BBC News reports that Hillsborough Forum, a charity that worked
to improve streets and support businesses in part of Sheffield,
has folded after it ran out of funds.

Hillsborough Forum was set up in 2002 and became a charity in
2006.  Its volunteers helped to clean up the area after it
suffered heavy floods in 2007 and turned derelict land into the
Holme Lane Community Garden.

According to BBC, the charity said it could no longer afford its
GBP20,000 a year rent and running costs.

BBC relates that the trustees said it had a "liquidity crisis in
spite of all attempts we are unable to solve".

The charity was funded by the government's Single Regeneration
Budget until 2008, and has since relied on local authority
funding for individual projects and volunteer fundraising, BBC

LA SENZA: Bosnia & Greece Stores Sparred From Closure
Greg Walton at This is Money reports that La Senza has confirmed
that its stores in Bosnia and Greece will be spared from closure
after the chain was placed into administration.

La Senza's landlords and suppliers are likely to be the losers in
the wake of a collapse as all the chain's assets are expected to
be used for loan repayments to Lion Capital, according to This is

The report discloses that staff at the stores marked for closure
are angry that they have not been given a time-scale for their
stores to shut.  "We've not been told anything . . . .  We hope
to be told soon if we might get a transfer," Thus is Money quoted
an unnamed lingerie consultant at a London branch, as saying.

As reported in the Troubled Company Reporter-Europe on Jan. 4,
2012, BBC News said that La Senza is to close four shops in
Northern Ireland.  The business, which announced on December 23
that it was going into administration, is closing more than 80
shops across the UK and Ireland, according to BBC News.  BBC News
noted that La Senza blamed "trading conditions" and "the overall
macro environment" for its decision to go into administration.
The report related that Andrew Irvine of Belfast City Centre
Management said that despite the problems for individual
retailers nationally, the broad picture locally remained

La Senza is a lingerie chain.  The retailer had about 2,600 staff
at 146 stores and 18 concessions across the United Kingdom.

PLYMOUTH ALBION: Chair Seeks Investment to Avert Administration
BBC News reports that Plymouth Albion Rugby Football Club
Chairman Graham Stirling is calling on shareholders to invest in
the team in order to save it from administration.

The club has found itself in financial difficulty as gates have
dropped by 20% and the commercial income has been affected by the
economic downturn, according to BBC News.

"It's a very doable sum of money, we believe . . . .  It's an
amount of money we need putting in place to ensure our future at
Championship level," Mr. Stirling told BBC News in an interview.

BBC News notes that the club has existing debts from the
redevelopment of their Brickfields Stadium, but Mr. Stirling said
that debt is being serviced and will continue to be paid off.

"There is legacy debt but we service that debt, we can continue
to do that, it's getting the working capital. . . . What we need
now is get that injection of working capital, we've had a
positive response to date and we've got positive discussions,"
BBC News quoted Mr. Stirling as saying.

The report notes that one investor in the club told the news
agency in an interview that the figure Albion needs in order to
be clear of debt and have a strong amount of money to invest in
players in nearer to half a million pounds.

As reported in the Troubled Company Reporter-Europe on Jan. 4,
2012, This is Plymouth said that Plymouth Albion Rugby Football
Club Chairman Dr. Graham Stirling has denied rumors the
championship club are about to go into administration.
Speculation has been flying around rugby circles that Albion are
on the verge of that following the shock exit of new coaches
Peter Drewett and Phil Greening from Brickfields, according to
This is Plymouth.  The report notes that the pair walked away
from the club as the city side could not meet their salaries.

Plymouth Albion Rugby Football Club is a rugby union club who
play in Plymouth, England.  The club was founded around 1915 from
a merger between Plymouth RFC and Devonport Albion RFC.  Since
2003 they have played their home games at The Brickfields
stadium.  Albion's traditional strip and club colors are white,
strawberry (red or cherry) and green.


* BOOK REVIEW: Ralph H. Kilmann's Beyond the Quick Fix
Author: Ralph H. Kilmann
Publisher: Beard Books
Hardcover: 320 pages
Listprice: $34.95
Review by Henry Berry

Every few years, a new approach is offered for unleashing the
full potential of organized efforts.  These are the quick fixes
to which the title of this book refers.  The jargon of the quick
fix is familiar to any businessperson: decentralization, human
resources, restructuring, mission statement, corporate strategy,
corporate culture, and so on.  These terms are all limited in
scope or objective, and some are even irrelevant or misconceived
with regard to the overall well-being and purpose of a

With his extensive experience as a corporate consultant, author
of numerous articles, and professor in business studies, Kilmann
recognizes that each new idea for optimum performance and results
is germane to some area of a corporation.  However, he also
recognizes that each new idea inevitably falls short in bringing
positive change -- that is, a change that is spread throughout
the corporation and is lasting.  At best, when a corporation
relies on an alluring, and sometimes little more than
fashionable, idea, it is a wasteful distraction.  At worst, it
can skew a corporate organization and its operations, thereby
allowing the corporation's true problems or weaknesses to grow
until they become ruinous.  As the author puts it, "Essentially,
it is not the single approach of culture, strategy, or
restructuring that is inherently ineffective.  Rather, each is
ineffective only if it is applied by itself -- as a "quick fix"."

Kilmann tells corporate leaders how to break the cycle of
embracing a quick fix, discarding it after it proves ineffective,
and then turning to a newer and ostensibly better quick fix that
soon proves to be equally ineffective.  For a corporation to
break this self-defeating cycle, the author offers a five-track
program. The five tracks, or elements, of this program are
corporate culture, management skills, team-building, strategy-
structure, and reward system.  These elements are interrelated.
The virtue of Kilmann's multidimensional five-track program is
that it addresses a corporation in its entirety, not simply parts
of it.

Kilmann's five tracks offer structural and operational aspects of
a corporation that executives and managers will find familiar in
their day-to-day leadership and strategic thinking.  Thus, the
author does not introduce any unfamiliar or radical perspectives
or ideas, but rather advises readers on how to get all parts of a
corporation involved in productive change by integrating the five
tracks into "a carefully designed sequence of action: one by one,
each track sets the stage for the next track."  Kilmann does
more, though, than bring all significant features of a modern
corporation together in a five-track program and demonstrate the
interrelation of its elements.  His singularly pertinent and
useful contribution is providing a sequence of steps to be
implemented with respect to each track so that a corporation
progresses toward its goals in an integrated way.

Beyond the Quick Fix is a manual for implementing and evaluating
the progress of a five-track program for corporate success.  The
book should be read by any corporate leader desiring to bring
change to his or her organization.

Ralph H. Kilmann has been connected with the University of
Pittsburgh for 30 years.  For a time, he was its George H. Love
Professor of Organization and Management at its Katz Graduate
School of Business.  Additionally, he is president of a firm
specializing in quantum transformations.


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

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

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

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


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

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

Copyright 2012.  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 Peter Chapman at 240/629-3300.

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