TCREUR_Public/120111.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, January 11, 2012, Vol. 13, No. 8

                            Headlines



F R A N C E

SEAFRANCE: In Liquidation; Eurotunnel Expresses Interest


G E R M A N Y

SOLON SE: In Talks with Potential Buyers
* GERMANY: Business Insolvencies 4.8% Down in October 2011


G R E E C E

* GREECE: Imposing Losses on Bondholders May Trigger Credit Event


H U N G A R Y

BKV ZRT: On Brink of Bankruptcy; Seeks Government Help
* HUNGARY: Fitch Cuts Long-Term Issuer Defaults Ratings to 'BB+'


I R E L A N D

BREITHORN ABS: Fitch Withdraws 'Dsf' Ratings on Two Note Classes
GATEWAY IV: S&P Raises Rating on T-Combination Notes to 'CCC+'
TALISMAN - 5: Fitch Affirms Rating on Class E Notes at 'CCsf'


I T A L Y

SEAT PAGINEGIALLE: S&P Cuts Senior Secured Bank Debt Rating to D


K A Z A K H S T A N

BTA BANK: May Reach Debt Restructuring Deal with Creditors


S W E D E N

SAAB AUTOMOBILE: Unions Not Satisfied with Bankruptcy Receivers


U N I T E D   K I N G D O M

CRYSTAL CREDIT: S&P Lowers Ratings on Class B Notes to 'D'
ETHICAL CDO: S&P Lowers Rating on Floating-Rate Notes to 'D'
LA SENZA: Alshaya Buys 60 Stores, Saves 1,100 Jobs
LIVEBAIT LEEDS: Cafe Owner Buys Restaurant Out of Administration
TITAN EUROPE: Fitch Downgrades Rating on Class E Notes to 'CCC'

YELL GROUP: Set to Begin Debt Buy-Back This Week
* UK: Number Retailers Falling Into Administration Up 11% in 2011


X X X X X X X X

* Dry-Bulk Ship Owners Face Bankruptcies, DVB Bank Says


                            *********


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


SEAFRANCE: In Liquidation; Eurotunnel Expresses Interest
--------------------------------------------------------
Steve Rothwell and Heather Smith at Bloomberg News report that
Groupe Eurotunnel SA said it wants to buy SeaFrance, which runs
the competing Dover-Calais ferry service and was placed in
liquidation on Monday.

According to Bloomberg News, Eurotunnel Chief Executive Officer
Jacques Gounon has written to SeaFrance's administrators seeking
to purchase assets and lease them to worker cooperative Scop,
which is targeting its own takeover.

"Eurotunnel is interested in buying the assets to help the
employees of SeaFrance build a solid business plan," Bloomberg
quotes spokeswoman Fabienne Lissak as saying.  "We are a sound
company financially and SeaFrance's employees have the maritime
knowledge.  This is the best way to develop."

Ms. Lissak, as cited by Bloomberg, said that under Eurotunnel's
proposals, a number of ferries operated by SeaFrance -- which
carries more than 3.5 million passengers a year -- would be made
available to Scop to continue services, adding that the company
previously expressed an interest to the Paris commercial court
last month.  The European Union has ruled out any direct state
recapitalization, Bloomberg notes.

While SeaFrance was put into formal liquidation on Monday after
the commercial court ruled that there was no valid purchase
offer, ending a process that began in November, that could clear
the way for the sale of ships and other assets, Bloomberg states.

"The war is not lost," Philippe Brun, a lawyer representing
SeaFrance employees, as cited by Bloomberg, said.  "There could
be an alternative solution."  He said that the reasoning behind
the ruling won't be available until Jan. 12, and an appeal may be
considered, Bloomberg notes.

French state rail operator SNCF, the owner of SeaFrance, also
said on Monday that it will make a one-time "supra-legal" payment
worth EUR36 million (US$46 million) to employees of the ferry
company, Bloomberg relates.  That's after President Nicolas
Sarkozy told workers he'd ask the train operator to inject funds
for them to buy into the Scop cooperative, according to a letter
later made public, Bloomberg recounts.

SNCF, as Societe Nationale des Chemins de Fer Francais is known,
also said on Monday it would help to place SeaFrance workers into
new jobs if necessary, Bloomberg discloses.

According to Bloomberg, Transport Minister Thierry Mariani said
in a radio interview that the French government, keen to save 900
jobs at SeaFrance, regards interest from Eurotunnel as "good
news".

SeaFrance is the operator of the undersea rail link between
Britain and continental Europe.


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


SOLON SE: In Talks with Potential Buyers
----------------------------------------
Stefan Nicola at Bloomberg News reports that Solon SE, which is
in bankruptcy proceedings, is in talks with a "handful" of
possible buyers as a bid deadline was set for the month's end.

They include "domestic and international strategic investors,
including from Asia," Bloomberg quotes Ruediger Wienberg,
insolvency administrator at HWW Wienberg Wilhelm, as saying on
Monday.

Bloomberg relates that the statement said wages for employees
have been secured through February and the company's sales are
continuing.

As reported by the Troubled Company Reporter-Europe on Dec. 16,
2011, Bloomberg News related that Solon said in a statement the
company filed for insolvency after failing to reach an "amicable
solution" with banks and investors.  Solon had sought to speed up
cost cuts and extend a year-end deadline to repay a
EUR275 million (US$357 million) loan to Deutsche Bank AG and a
group of seven German banks, Bloomberg disclosed.  Solon was
seeking "to use opportunities to restructure within the
insolvency process," Bloomberg quoted Therese Raatz, a
spokeswoman, as saying.

Berlin, Germany-based Solon SE is a publicly traded solar
company.  The company employs more than 800 people at
subsidiaries in Germany, Italy, France, and the U.S.


* GERMANY: Business Insolvencies 4.8% Down in October 2011
----------------------------------------------------------
According to RTTNews.com, the Federal Statistical Office said
Tuesday that German insolvency courts reported a total of 2,363
business insolvencies in October, 4.8% less than the same month
last year.

The total number of insolvencies fell 9.1% year-on-year to
12,152, RTTNews.com discloses.

During the January to October period, corporate insolvencies fell
6.5% during the period, RTTNews.com relates.


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


* GREECE: Imposing Losses on Bondholders May Trigger Credit Event
-----------------------------------------------------------------
John Glover and Abigail Moses at Bloomberg News report that
Andreas Koutras of research firm ITC Markets said imposing losses
on Greek bondholders holding out against a debt restructuring
would allow buyers of credit-default swap protection to demand
payment.

According to Bloomberg, Dow Jones Newswires on Monday reported
that the Greek government plans to insert so-called collective
action clauses into its bond documentation, allowing bondholders
to force holdouts to accept the same terms as the majority.  The
report cited an unnamed person with the Troika, as the delegation
representing the International Monetary Fund, the European Union
and the European Central Bank is known, Bloomberg notes.

"The introduction of the clause could probably be structured so
as to not be an event of default that triggers CDS," Bloomberg
quotes Ms. Koutras as saying.  "It will trigger CDS only if they
activate it."

Bloomberg relates that Der Spiegel said negotiations between
Greece and its creditors on a voluntary bond swap designed to
reduce the nation's debt burden stalled amid disagreements on the
terms of the transaction.  Because most of Greece's bonds were
issued under Greek law, Parliament would be able to pass
legislation inserting a change in conditions governing the debt,
imposing a binding writedown on investors, Bloomberg states.

The use of so-called collective action clauses would trigger
what's known as a restructuring credit event, Bloomberg says.
According to Bloomberg, the International Swaps & Derivatives
Association said these can be caused by a reduction in principal
or interest, postponement or deferral of payments or a change in
the ranking or currency of obligations.


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


BKV ZRT: On Brink of Bankruptcy; Seeks Government Help
------------------------------------------------------
Gergo Racz at The Wall Street Journal reports that Budapest
mayor, Istvan Tarlos, says BKV Zrt has about a month and a half
before going bankrupt.

Mr. Tarlos, as cited by the Journal, said BKV is close to
collapsing and will be unable to make payments on its debts
unless the government intervenes and frees up funds already
allocated to the firm.

The Budapest municipality is hoping to receive HUF32 billion
(US$128 million) in state support that the economy ministry froze
to help the central budget, the Journal discloses.  According to
the Journal, government officials said the city should raise the
required amount to add to BKV's HUF150 billion annual operating
budget.  Mr. Tarlos said the company has accumulated around
HUF65 billion in debts, the Journal notes.

Mr. Tarlos said he had already consulted the issue with
government officials and asked for discussions with Economy
Minister Gyorgy Matolcsy, but no progress had been made, the
Journal relates.  He now approached Prime Minister Viktor Orban
with a set of proposed measures hoped to resolve the situation,
according to the Journal.  These would include outsourcing bus
services as well as introducing a traffic tax on the city, the
Journal states.

BKV Zrt is Budapest's public transport company.


* HUNGARY: Fitch Cuts Long-Term Issuer Defaults Ratings to 'BB+'
----------------------------------------------------------------
Fitch Ratings has downgraded Hungary's Long-term foreign and
local currency Issuer Default Ratings (IDR) by one notch to 'BB+'
and 'BBB-', from 'BBB-' and 'BBB' respectively.  The Outlook on
the long-term IDRs is Negative.  The agency has also downgraded
Hungary's Short-term IDR to 'B' from 'F3', and its Country
Ceiling by two notches, to 'BBB' from 'A-'.

"The downgrade of Hungary's ratings reflects further
deterioration in the country's fiscal and external financing
environment and growth outlook, caused in part by further
unorthodox economic policies which are undermining investor
confidence and complicating the agreement of a new IMF/EU deal,"
says Matteo Napolitano, Director in Fitch's Sovereign Group.

When Fitch put Hungary's ratings on Negative Outlook on Nov. 11,
2011, it cited negative rating drivers as a worse than
anticipated economic slowdown, and a rise in the risk premium and
fiscal financing pressure.  In the agency's view, these risks
have materialized.

The Hungarian growth outlook is continuing to deteriorate.  In
December, Fitch halved its forecast for 2012 eurozone GDP growth
to 0.4%.  Given Hungary's high degree of trade openness and
strong economic and financial linkages to the eurozone, as well
as tightening domestic financial conditions, the agency in
January cut its forecast for Hungary's GDP growth to -0.5% from
0.5% previously.

Fiscal and external financing risks have increased significantly
since early November, owing to a deterioration in investor
sentiment.  Hungary's high stock of government, external and
private sector foreign currency debt and large associated
financing requirements leave it vulnerable to adverse swings in
investor confidence.  The government faces external debt
repayments of EUR4.6 billion in 2012 (and larger ones in 2013-
14), as well as large non-resident holdings of domestic debt to
roll-over.

An auction for three-year, five-year and 10-year bonds on
December 29 failed partially after investors demanded higher
yields than the government was prepared to pay (although the
holiday period may have been a partial mitigating factor).  On
January 5 the government sold less than its targeted amount of
12-month bills, and only at a yield of nearly 10%. Yields on 10-
year government securities are currently near 11%, up from 8% in
early November.  The Hungarian forint (HUF) lost another 2%
against the euro (EUR) over the same period, reaching an all-time
low of nearly 320 in early January.  Adverse moves in market
sentiment towards Hungary have been greater than in central
European peers such as Poland and Romania, highlighting its
domestic problems as well as contagion from the eurozone debt
crisis.

Additional unorthodox policy measures have further undermined
confidence in policy making.  In mid-December, preliminary
official talks with a view to securing a new deal with the IMF
and EU broke down after the government failed to provide
assurances that it would alter legislation (including a new
Central Bank Act) viewed as contravening EU law.  During the
parliamentary passage the ruling majority incorporated most
suggestions from the European Central Bank (ECB), but left in
place provisions that Fitch perceives to reduce the independence
of the National Bank of Hungary (NBH).  Furthermore, the new
constitution, which went into force on January 1 2012,
subordinates changes to key tenets of economic policy (such as
taxation) to a two-thirds parliamentary majority, thus reducing
the scope for fiscal adjustment of future governments.

As a result, the importance of securing a timely new IMF
agreement has increased, while the prospects of reaching it have
become more uncertain.  Fitch expects that a Stand-By Arrangement
is the only type of deal that Hungary can realistically expect.
Furthermore, even if an agreement were to be reached, doubts
would remain over whether the Hungarian government could submit
to its strict conditionality, given its track record of policy
unpredictability and the premature end in July 2010 of the
previous IMF program.

Hungary remains self-financing on a flow basis: Fitch estimates
that in the year to Q311 the sum of the current and capital
account surpluses was 3% of GDP.  However, the current-account
surplus is as much a reflection of domestic demand weakness as of
export resilience. Also, the surplus on the financial balance
(around 4% of GDP in Q3, Q4 rolling basis) was driven exclusively
by portfolio inflows, whereas the foreign direct investment (FDI)
and 'other investment' balances recorded net outflows.

The two notch downgrade of Hungary's country ceiling to 'BBB',
thus reducing the uplift of the Country Ceiling above the
Foreign-Currency IDR to two from three notches, reflects Fitch's
concerns about the government's track record of unorthodox
policies, including with respect to the banking sector.  The
country ceiling uplift is two or three notches in the case of
non-eurozone EU member states, depending on governance and policy
records.  Nevertheless, the agency believes the imposition of
capital controls (which is not permitted under the EU treaty
except under exceptional circumstances) is a low risk.

The Outlook on Hungary's ratings remains negative, indicating a
probability greater than 50% of another downgrade within the next
two years.  A further increase in fiscal and external financing
risks and the failure to secure a timely and appropriate IMF
agreement could lead to a downgrade.  A deeper contraction in
economic activity than currently expected; evidence of an
increase in private sector capital outflows; a material weakening
in the government's commitment to fiscal consolidation or
destabilizing unorthodox policy measures could also lead to a
downgrade.

Conversely, an easing in fiscal and external financing pressures,
the government meeting its budget deficit targets and a return to
healthy growth, particularly in the context of significant
structural reforms and declining external debt ratios, could
stabilize Hungary's ratings.


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I R E L A N D
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BREITHORN ABS: Fitch Withdraws 'Dsf' Ratings on Two Note Classes
----------------------------------------------------------------
Fitch Ratings has affirmed and subsequently withdrawn the ratings
on two classes of notes issued by Breithorn ABS Funding, p.l.c.
as follows:

  -- EUR50,931 class A-2 notes at 'Dsf';
  -- EUR62,500,000 class B notes at 'Dsf'.

The rating withdrawals are a result of the sale and liquidation
of Breithorn's underlying portfolio following an event of default
on July 26, 2010, and the subsequent vote for an acceleration and
sale of the collateral by the controlling class as of May 23,
2011.  The final distribution on Sept. 30, 2011 showed that
proceeds from the liquidation were insufficient to pay the class
A-2 notes in full, while the class B notes did not receive any
principal repayments.

Breithorn was a synthetic structured finance (SF) collateralized
debt obligation (CDO) that provided mezzanine credit protection
to a portfolio of asset-backed securities and CDOs.  The
transaction closed on July 2, 2003 and was managed by Swiss Re
Financial Products Corporation.


GATEWAY IV: S&P Raises Rating on T-Combination Notes to 'CCC+'
--------------------------------------------------------------
Standard & Poor's Ratings Services took various credit rating
actions in Gateway IV - Euro CLO S.A.

Specifically, S&P:

  -- raised its ratings on the class A2, B, C, D, E, R
     combination, S combination, and T combination notes;

  -- affirmed its ratings on the class A1 and A1-D notes; and

  -- withdrawn its rating on the class U combination notes.

Gateway IV - Euro CLO is a cash flow collateralized loan
obligation (CLO) transaction that closed in March 2007. It
securitizes loans to primarily speculative-grade corporate firms.
The transaction was previously called GSC European CDO IV.

"The rating actions follow our assessment of the transaction's
performance, using data from the latest available trustee report
(dated Oct. 13, 2011) and a cash flow analysis. We have taken
into account recent transaction developments and our relevant
criteria for CLOs," S&P said.

"Our analysis indicates that the portfolio's credit quality has
improved. We have seen an increase in credit enhancement levels
for the class A2 to E notes, and in the weighted-average spread
earned on the collateral pool. The weighted average spread earned
is now 3.31%. We have also observed that the transaction's
overcollateralization test results for all classes of notes has
improved," S&P said.

"We have subjected the capital structure to a cash flow analysis
to determine the break-even default rate for each rated class. In
our analysis, we have used the reported portfolio balance that we
consider to be performing (rated 'CCC-' or above), the principal
cash balance, the current weighted-average spread, and the
weighted-average recovery rates that we consider to be
appropriate. We have incorporated various cash flow stress
scenarios using various default patterns, levels, and timing for
each liability rating category, in conjunction with different
interest stress scenarios," S&P said.

"Taking into account our credit and cash flow analyses, along
with our 2010 counterparty criteria and our cash flow criteria,
we consider that the credit enhancement available to the class A2
to E notes is commensurate with a higher rating than previously
assigned. We have therefore raised our ratings on these classes
of notes. Based on our credit and cash flow analyses, we have
also raised our ratings on the combination notes (classes R, S,
and T). We have affirmed our ratings on the class A1 and A1-D
notes because our analysis indicates that the current ratings
remain appropriate," S&P said.

"None of the ratings was constrained by the application of our
largest obligor default test -- a supplemental stress test we
introduced in our 2009 criteria update for corporate
collateralized debt obligations (CDOs)," S&P said.

"The collateral manager has informed us that the class U
combination notes have been decomposed into their constituent
parts. We have therefore withdrawn our rating on the class U
notes," S&P said.

Ratings List

Gateway IV - Euro CLO S.A.
EUR439 Million Floating-Rate Notes

Class               Rating
              To             From

Ratings Affirmed

A1            AAA (sf)       AAA (sf)
A1-D          AAA (sf)       AAA (sf)

Ratings Raised

A2            AA+ (sf)       AA- (sf)
B             A+ (sf)        A- (sf)
C             BBB+ (sf)      BB+ (sf)
D             BB+ (sf)       B+ (sf)
E             B+ (sf)        CCC- (sf)
R-Combo       BBB+ (sf)      BB+ (sf)
S-Combo       B (sf)         CCC- (sf)
T-Combo       CCC+ (sf)      CCC- (sf)

Rating Withdrawn

U-Combo       NR             CCC-(sf)


TALISMAN - 5: Fitch Affirms Rating on Class E Notes at 'CCsf'
-------------------------------------------------------------
Fitch Ratings has affirmed Talisman - 5 Finance plc's classes A
to E notes, as follows:

  -- EUR170.6m class A (XS0278333736): affirmed at 'Asf'; Outlook
     Stable

  -- EUR28.2m class B (XS0278334460): affirmed at 'BBBsf';
     Outlook Stable

  -- EUR20.5m class C (XS0278334973): affirmed at 'Bsf'; Outlook
     Stable

  -- EUR19.6m class D (XS0278335277): affirmed at 'CCCsf';
     assigned a Recovery Estimate (RE) of 50%

  -- EUR4m class E (XS0278335863): affirmed at 'CCsf'; assigned
     RE0%

The transaction's stable to declining performance was already
incorporated in past rating actions.  Consequently, following the
agency's latest review, the notes have been affirmed.

Fitch notes that uncertainty remains surrounding the
misallocation of principal on the four 2011 interest payment
dates (IPD) between and including January 2011 to October 2011.
During this period, EUR102.6 million of principal repayments
should have been allocated to the class A notes, reducing their
balance to EUR152.3 million in accordance with the transaction
documents as a sequential trigger event had arisen. Yet only
EUR84.3 million was used to pay down class A notes, meaning
EUR18.3 million was incorrectly allocated to partially pay down
note classes B to E.

Fitch understands the cash manager, Bank of America, is in
discussions with the various clearing houses to correct the
misallocation.  Due to the uncertainty of this process, Fitch has
assumed in its analysis that no reallocation has taken place and
has analyzed the transaction in accordance with the note class
balances as laid out in the last bondholder report which
references the October 2011 IPD.

Since the last rating action in January 2011, the EUR63.2 million
Mouse loan redeemed in full at its loan maturity date in June
2011.

Both the Penguin and Reindeer loans have been extended until
January 2013.  The extension allows more favorable hedging to be
put in place increasing coverage to both loans.  Fitch
understands that the intention is for all excess rental income to
be used either to amortize the loans or as capex to improve the
letting prospects of the assets.

Some loans have experienced sharp declines in performance brought
about by increased vacancy as tenants have not renewed their
leases at expiry.  These include Fish, a EUR60.3 million loan
secured by two good quality Hamburg offices/car showrooms.  One
of the four tenants has left reducing rental income by 28%, while
two of the remaining tenants have achieved substantial rent
reductions in renewing their leases.  As such, the senior Fitch
loan-to-value (LTV) ratio has increased to 107.5% from 73.2%,
while the Fitch whole loan LTV is 115.9%.

The Bird loan, a facility secured on a warehouse/logistics
property 10km west of Berlin city centre, was scheduled to mature
in July 2011.  The loan was transferred to special servicing in
November 2010 following a breach of LTV covenant and failed to
redeem at its scheduled maturity.  Since October 2010 net rent
has fallen by a further EUR600,000 to EUR1.4 million while
occupancy has dropped to 72% from 91%, as two principal tenants
have left.  Fitch understands that the strategy from the special
servicer, Hatfield Philips ('CPS2'/'CSS3+'), is to look to sell
the asset in early 2012. Fitch believes that any sale would
result in substantial losses to the loan.

Talisman - 5 Finance plc is a securitization of five commercial
mortgage loans which closed in December 2006. Three loans (Bird,
Fish and Monkey) are secured on German collateral, while the
Penguin and Reindeer borrower's assets are located in France and
Finland respectively.


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I T A L Y
=========


SEAT PAGINEGIALLE: S&P Cuts Senior Secured Bank Debt Rating to D
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its issue rating on
the senior secured bank debt of Italy-based international
publisher of classified directories SEAT PagineGialle SpA (SEAT)
to 'D' (Default) from 'CCC-'. "The recovery rating on this
instrument is unchanged at '2', indicating our expectation of
substantial (70%-90%) recovery in the event of a payment
default," S&P said.

All our other ratings on SEAT, including the long-term corporate
credit rating of 'SD' (Selective Default), are unchanged.

The lowering of the rating on SEAT's senior secured bank debt
follows the company's failure to pay its interest payment and
debt amortization requirement beyond the fifth business day after
the scheduled due date at the end of December 2011.

SEAT is in the process of restructuring its balance sheet. SEAT's
decision not to proceed with the interest payment on its senior
secured bank debt is consistent with recent resolutions taken by
the company not to pay amounts related to debt maturities of all
its financing agreements in place (including the subordinated
notes at Lighthouse International Co. S.A.), pending negotiations
for the approval of a consensual restructuring agreement from all
stakeholders involved.

"Under our criteria 'Timeliness of Payments: Grace Periods,
Guarantees, And Use Of 'D' And 'SD' Ratings,' published Dec. 23,
2010, we consider the extension of a payment maturity as
tantamount to a default if the payment falls later than five
business days after the scheduled due date. This is irrespective
of any grace period stipulated in the indentures," S&P said.

"The 'SD' long-term corporate credit rating on SEAT reflects our
understanding that the company is still current on its EUR750
million senior secured bonds, whose next interest payment is due
at the end of January 2012. According to Standard & Poor's
definition, a selective default is representative of an issuer
defaulting on one issue or class of issues but honoring others in
a timely fashion. Our default definitions include payment
defaults on both rated and unrated financial obligations," S&P
said.

"We could lower the rating on SEAT to 'D' (Default), if the
payments on the interest on the senior secured bonds were not
made within five business days after the scheduled due date, or
if the group's senior lenders were to accelerate the debt
repayment and the group was unable to pay, or if the group were
to file for insolvency," S&P said.

"We will therefore examine the progress on SEAT's pending debt
restructuring over the coming months in the context of the
company's aim to reduce leverage in a mutually agreeable form
with the main stakeholders. If and when SEAT emerges from any
form of reorganization, we will reassess the ratings, taking into
account the factors that precipitated the default as well as any
gains achieved through the reorganization process," S&P said.


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


BTA BANK: May Reach Debt Restructuring Deal with Creditors
----------------------------------------------------------
Nariman Gizitdinov at Bloomberg News reports that Kazakhstan's
central bank chairman Grigori Marchenko said BTA Bank has a "good
possibility" of reaching an agreement with creditors on its
second debt restructuring proposal.

According to Bloomberg, Mr. Marchenko, citing preliminary data,
on Tuesday said the Kazakh lender had deposit inflows from
individuals after the announcement of the proposal.

As reported by the Troubled Company Reporter-Europe on Jan. 10,
2012, Bloomberg News related that senior bondholders said Kazakh
state-controlled BTA Bank must pay a coupon due Jan. 1 and ensure
that its board contains creditor directors before they'll discuss
the lender's proposal for a second restructuring in as many
years.  Bloomberg disclosed that a group of unidentified
creditors made the demands in a Dec. 30 letter to BTA, the Kazakh
central bank and the National Welfare Fund Samruk-Kazyna, which
owns 81.5% of the lender.  The letter was sent by New York-based
law firm Dewey & LeBoeuf LLP, which represents the bondholders,
Bloomberg said.  "The credibility of Kazakhstan in the
international financial markets will be affected by the failure
of the bank and Samruk-Kazyna to honor their obligations in
respect of the bank's senior notes, as well as the bank's other
debt obligations," Bloomberg quoted Dewey & LeBoeuf as saying on
behalf of the creditors.  BTA Chairman Anvar Saidenov proposed a
second restructuring in a Dec. 23 letter to shareholders to stave
off bankruptcy, Bloomberg recounted.  Mr. Saidenov, as cited by
Bloomberg, said that the bank may not have enough cash to make
the next interest payment due "on certain of its indebtedness".

                          About BTA Bank

Headquartered in Almaty, Kazakhstan, BTA reported total assets
and total equity deficit of US$12.2 billion and US$1.48 billion,
respectively, at end-H1 2011, according to the bank's IFRS
financial statements.  BTA's net loss for H1 2011 amounted to
US$701 million.

                       *     *     *

As reported in the Troubled Company Reporter on Dec. 12, 2011,
Moody's Investors Service has downgraded BTA Bank's (BTA) long-
term local and foreign-currency deposit ratings to Caa2 from B3,
the long-term foreign-currency senior unsecured debt rating to Ca
from Caa2 and the long-term foreign-currency subordinated debt
rating to C from Caa3.


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


SAAB AUTOMOBILE: Unions Not Satisfied with Bankruptcy Receivers
---------------------------------------------------------------
The Local reports that Saab Automobile's four main unions are
unhappy with the appointed bankruptcy receivers but said on
Monday that having them changed "would not help the situation".

The four unions met on Monday to consult regarding the situation
of the company's bankruptcy, the Local relates.  However, no
demands are yet forthcoming, the Local notes.

"We will also meet with the receivers this week, probably on
Thursday," the Local quotes the union's chief lawyer, Martin
Wastfelt, as saying to news agency TT.

According to the Local, the Dagens Industri newspaper said that
the appointed Saab receivers, lawyers Ann-Marie Pouteaux --
anne-marie.pouteaux@wistrand.se -- and Hans Bergqvist --
hans.bergqvist@delphi.se -- have been criticized for their
"ignorance" and for "not realizing the complexity of Saab
operations".

The unions IF Metall, Unionen, Ledarna and
Akademikerna/Ingenjorsforbundet believe that the information they
have been given by the receivers is inadequate, the Local
discloses.

According to DI, it has been confirmed that the receivers don't
really understand Saab, and that the company inventory is far
from over, the Local notes.  At the same time, this makes it
impossible for the receivers to enter into negotiations with
those who have expressed interest in taking over whole, or part,
of the Saab Automobile business, the Local states.

The two bankruptcy receivers are now themselves flagging for a
potential conflict of interest, the Local says.  They have
therefore requested in writing to Vanersborgs District Court on
Monday that a co-trustee be appointed, the Local relates.  The
Local notes that the lawyers said this regards the handling of
"questions relating to the Saab brand, the label, the trade name
and other related matters".

They have therefore proposed that Kent Hagglund, a lawyer at
Advokatfirman DLA Nordic in Stockholm, is appointed as co-
receiver, according to the Local.  According to Ms. Pouteaux and
Mr. Bergkvist, he has been asked and is willing to undertake the
task, the Local says.

Kent Hagglund can be contacted at:

          Kent Hagglund
          DLA Nordic
          kent.hagglund@dlanordic.se
          PO Box 7315
          SE-103 90 Stockholm
          Sweden
          Tel No.: (+46) 8701-7804 (direct)
                   (+46) 8701-7800 (office)
          Fax No.: (+46) 8701-7899

As reported by the Troubled Company Reporter-Europe on Jan. 3,
2012, The Scotsman's related that Saab's receivers said that a
number of potential buyers have shown interest in parts or all of
the company and there is a chance a deal can be struck that will
allow some operations to continue.  The Scotsman disclosed that
Saab's court-appointed receivers said in a statement they had met
a number of Swedish and foreign parties that have expressed
interest in a possible purchase of all or parts of the business.

                             About Saab

Saab, or Svenska Aeroplan Aktiebolaget (Swedish Aircraft
Company), was founded in 1937 as an aircraft manufacturer and
revealed its first prototype passenger car 10 years later after
the formation of the Saab Car Division.  In 1990, Saab
Automobile AB was created as a separate company, jointly owned by
the Saab Scania Group and General Motors, and became a wholly-
owned GM subsidiary in 2000. In February 2010, Spyker Cars N.V.
was renamed Swedish Automobile N.V. (Swan) on June 15, 2011.

Saab Automobile AB currently employs approximately 3,700 staff in
Sweden, where it operates production and technical development
facilities at its headquarters in Trollhattan, 70 km north of
Gothenburg.  Saab Cars North America is located in Royal Oak,
Michigan employing approximately 50 people responsible for sales,
marketing and administration duties for the North American
market.

On Dec. 19, 2011, Swedish Automobile N.V. disclosed that Saab
Automobile AB (Saab Automobile), Saab Automobile Tools AB and
Saab Powertrain AB filed for bankruptcy with the District Court
in Vanersborg, Sweden.  After having received the recent position
of GM on the contemplated transaction with Saab Automobile,
Youngman informed Saab Automobile that the funding to continue
and complete the reorganization of Saab Automobile could not be
concluded.  The Board of Saab Automobile subsequently decided
that the company without further funding will be insolvent and
that filing bankruptcy is in the best interests of its creditors.
Swan does not expect to realize any value from its shares in Saab
Automobile and will write off its interest in Saab Automobile
completely.


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


CRYSTAL CREDIT: S&P Lowers Ratings on Class B Notes to 'D'
----------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'D (sf)' from 'CC
(sf)' its credit ratings on the class B principal-at-risk
variable-rate notes issued by Crystal Credit Ltd.

Standard & Poor's has received information from Crystal Credit
that EUR37,027.17 (17%) of interest due on Dec. 31, 2010 to the
class B noteholders will be deferred to a reserve account.

Crystal Credit involves the securitization of payments related to
an indemnity-based excess-of-loss retrocession agreement between
Swiss Reinsurance Company Ltd. (Swiss Re; AA-/Stable/A-1+) and
Crystal Credit, covering the risk to a defined portfolio of
credit reinsurance treaties for the underwriting years 2006 to
2008.

"Currently, the aggregate ceded losses stand at EUR771 million,
EUR42 million more than the threshold at which class B
noteholders incur a loss (EUR729 million at maturity). We
therefore anticipate that the class B noteholders will receive
back less than half of their principal at maturity," S&P said.

"The class C noteholders will incur a full loss of principal at
maturity. We downgraded the class C notes to 'D (sf)' on Jan. 6,
2011, when we received information that interest due to the class
C noteholders had been deferred to a reserve account," S&P said.

The class A notes were redeemed in full in April 2011.

"The current aggregate gross amount of incurred losses for each
underwriting year is: EUR205 million for 2006, EUR305 million for
2007, and EUR410 million for 2008 (paid losses are EUR200
million, EUR294 million, and EUR386 million). Under the terms of
the retrocession agreement, Swiss Re retains at least 10% of the
aggregate losses for each underwriting year. The ultimate
percentage depends on the gross reinsurance premium Swiss Re
receives for each underwriting year and currently varies between
20% and 12% for the three underwriting years," S&P said.


ETHICAL CDO: S&P Lowers Rating on Floating-Rate Notes to 'D'
------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'D (sf)' from 'CC
(sf)' its rating on the notes issued under Ethical CDO I (Jersey
No. 1) Ltd.'s series 2 transaction.

"We lowered the rating on the notes because the transaction's
aggregate losses from credit events in the underlying reference
portfolio have exceeded its available credit enhancement and the
transaction has incurred a principal loss," S&P said.

             Standard & Poor's 17g-7 Disclosure Report

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and
a description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities. The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at:

         http://standardandpoorsdisclosure-17g7.com

Rating Lowered

Ethical CDO I (Jersey No. 1) Ltd.
Floating-rate extendible maturity secured portfolio
credit-linked notes series 2 due 2014

To           From          Issue amount
D (sf)       CC (sf)       A$50.0 million

The transaction's closing date was March 17, 2005.


LA SENZA: Alshaya Buys 60 Stores, Saves 1,100 Jobs
--------------------------------------------------
Mirror News reports that Arabian retail group Alshaya has
acquired 60 stores of lingerie chain La Senza after the firm went
into the administration, saving 1,000 jobs in the process.

Alshaya bought the La Senza stores in a controversial "pre-pack"
administration deal that allows the assets of companies to be
snapped up while its debts are written off, according to Mirror
News.

The report notes that Alshaya said it would invest around
GBP100 million in the business over the next two years through
new products and store designs.  It will run the stores as
franchises after buying the exclusive rights to the brand in the
UK from its US owners Limited Brands, Mirror News says.

The locations of the 60 stores to be saved are not known.

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
positive.

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


LIVEBAIT LEEDS: Cafe Owner Buys Restaurant Out of Administration
----------------------------------------------------------------
Emma Eversham at Big Hospitality reports that Cafe Fish owner
Richard Muir and former Paramount Restaurant Group Chairman
William Rollason have bought their second Livebait Leeds site
under their new company SBG Restaurant.

The restaurant in Leeds was one of four Livebaits that was placed
into administration last year following the collapsed of
Paramount, according to Big Hospitality.

The 65-cover Leed restaurant, situated in the Calls area of the
city will remain trading as it is before a launch in the spring.
All staff, including head Chef John Wilkinson and General Manager
Tom Darlison, will remain.


TITAN EUROPE: Fitch Downgrades Rating on Class E Notes to 'CCC'
---------------------------------------------------------------
Fitch Ratings has downgraded Titan Europe 2007-1 (NHP) Limited's
notes, as follows:

  -- GBP42.15 million class B secured floating-rate notes due
     2017: downgraded to 'BB' from 'BBB'; maintained on Rating
     Watch Negative (RWN)

  -- GBP42m class C secured floating-rate notes due 2017:
     downgraded to 'B+' from 'BB+'; maintained on RWN

  -- GBP58m class D secured floating-rate notes due 2017:
     downgraded to 'B-' from 'BB-'; maintained on RWN

  -- GBP60m class E secured floating-rate notes due 2017:
     downgraded to 'CCC' from 'B-'; RWN removed

Fitch does not believe the rating watch to be relevant for
ratings at 'CCC' and below.

The downgrades are primarily driven by the direct impact of the
significant rent cut, the past and expected further decline in
the performance of the 249 care homes previously operated by the
now-dismantled Southern Cross, and the general lack of visibility
with regard to the borrower's recent takeover (effective 1
November 2011) of these homes through its newly incorporated
subsidiary HC-One Ltd.

Despite these uncertainties, the agency, which relies upon the
limited information provided by the Special Servicer (Capita
Asset Services) notes primarily that thus far the rent has been
reduced (at least temporarily) by 32.9% to GBP49.5 million from
GBP73.8 million and that HC-One, which is run by Court Cavendish
under a one-year management service agreement (MSA), is seeking
to build up GBP30 million of cash for initial investment purposes
(of which GBP28 million has already been collected from both
unlocked rent guarantees (GBP10.5 million) and retained cash).
These actions (agreed by the Special Servicer) have resulted in
the subordinated forward interest rate swap and the interest on
the class B, C, D and E notes to be deferred in both July and
October 2011, amounting to GBP18.4 million and GBP1.5 million
respectively.  In addition, during that period, GBP5 million of
servicing advances have also been drawn.

The agency is concerned about the significance of the current
shortfall as Fitch estimates that the rent/income would need to
be a minimum of GBP60 million (shortfall of c. GBP10 million) to
cover the payments of the whole Libra loan forward interest rate
swap and the interests on the class A and X which all rank senior
to the interests on the class B, C, D and E notes.  This
shortfall is the bare minimum as it does not even cover the large
special servicing fee (which amounted to GBP2.9 million over the
past two quarters (including GPB1.9 million of legal and other
advisers fees)) nor does it include any of the servicing advances
drawn already (GBP5.0 million) and deferred swaps and interest
(GBP18.4 million/ GBP1.5 million).  Fitch understands that as
stated in Capita's surveillance report dated 15th November 2011,
"the rent will be reviewed periodically in line with trading
performance and any surplus funds in HC-One above those required
for operational trading and capex will remain in the borrower
Group."  However the current lack of information prevents the
agency from appropriately estimating these amounts.

Currently, the agency notes that its estimated loan to value
(LTVs) (based on the actual released rent and debt figures,
without factoring in any likely future incremental deferrals)
have significantly worsened since the last review in March 2011.
This deterioration results directly from the combined effect of
Fitch's rent-related declining portfolio valuation at c.  GBP620
million (down by 13% and by c. 4.5% vs. Jones Lang Lasalle last
desktop valuation from July 2011), increased debt (due to
deferred amounts and servicing advances) and the negative
movement in the forward interest rate swap mark-to-market (having
increased by 34.5% to GBP166.4 million).  This leads to an
increase in the LTV for the most junior notes of significantly
above 100% and is, in conjunction with the limited provision of
information, a key determinant to the downgrade of the notes.

Fitch notes that there could be some mitigation with the
availability of new excess cash potentially coming from the
operating cash flows of HC-One, being a new guarantor under the
credit agreement.  However, the agency has difficulty in
quantifying whether there would be any, as the actual financial
performance of HC-One is largely unknown thus far, the capex
requirements could be significant (depending on the homes actual
state of repair) and more generally the operating costs are
uncertain, notably with regard to the financial arrangements
agreed with Court Cavendish under the MSA to run the homes which
have not been disclosed.  Finally, the outlook for the segment in
which these homes operate is challenging, being at the lower end
of the elderly care market focusing on increasingly more costly
low acuity care, which in turn is mainly funded by financially
constrained local authorities.

On the positive side, the transaction still benefits from a tail
period of five years prior to the legal final maturity of the
notes in January 2017, which could leave some time for
performance to stabilize, and a sale/refinancing solution to be
found.  In addition, if the restructuring proves to be
successful, the resulting more integrated business model could
potentially unlock more value for the benefit of bondholders with
the potential access to the operating cash flow.

To resolve the RWN, Fitch would need more information as to the
actual performance and conditions of the care homes, as well as
more clarity from Court Cavendish with regard to its strategy
(and future financing needs) for HC-One.  Fitch may decide to
take further rating actions once this information is received.

Titan Europe 2007-1 (NHP) is a securitization of 294 nursing
homes and three residential properties owned by NHP, which are
let on long leases to third-party operators active in the UK
healthcare sector (in particular HC-One, which accounts for 83.8%
of the estate).


YELL GROUP: Set to Begin Debt Buy-Back This Week
------------------------------------------------
Salamander Davoudi at The Financial Times reports that Yell Group
will begin this week a GBP159.5 million debt buy-back following
the completion of a refinancing that saw the company renegotiate
the terms of its loans for the second time in two years.

Yell is struggling under a GBP2.6 billion debt burden and face a
continued decline in print revenue together with online
competition from the likes of Google, the FT notes.

As reported by the Troubled Company Reporter-Europe on Dec. 21,
2011, the Financial Times related that Yell reached a compromise
agreement with lenders over the terms of its debt, giving the
group more headroom within its banking covenants and buying it
more time to implement a turnaround strategy.  The company is to
pay about GBP17 million in fees to the banks in return for the
extra headroom on its loan covenants, the FT disclosed.

                        About Yell Group

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

                         *     *     *

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


* UK: Number Retailers Falling Into Administration Up 11% in 2011
-----------------------------------------------------------------
Alexandra Baracskai at Female First reports that a research by
consultancy firm Deloitte reveals that the number of retailers
falling into administration in 2011 was an 11% increase on the
figure from 2010.

Deloitte's research noted that 183 businesses fell into
administration in 2011, compared to 165 in the previous year,
according to Female First, according to Female First.

Female First notes that Deloitte research showed that in the last
quarter of the year, which included the Christmas period, the
figure still increased by 27% on the previous quarter, with 42
retailers falling into administration.

Female First discloses that the most recent of retailers to go
into administration are underwear giant La Senza and outdoor
clothing shop Blacks Leisure.

"Many retailers would have been banking on the busy Christmas
period to give them a much needed sales uplift, but retailers
were forced into discounting at levels last seen in the aftermath
of the collapse of Lehman Brothers, putting severe pressure on
margins," Female First quoted Lee Manning, restructuring services
parter at Deloitte, as saying.

Mr. Manning also said what stands out in 2011 is the significant
increase in household names, with Barratts, Oddbins, Jane Norman,
TJ Hughes, Habitat and Homeform all being defeated by the
economic climate, Female First adds

Mr. Manning said: "Collectively, the plight of these companies
shows the depth of the impact of the consumer recession, with
more casualties anticipated as the year goes on."

Retail shops have blamed challenging trading conditions and
cashflow difficulties as just some of the reasons for their
closure.

HMV is the latest high street retailer to report a fall in sales
over the festive period.


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


* Dry-Bulk Ship Owners Face Bankruptcies, DVB Bank Says
-------------------------------------------------------
Michelle Wiese Bockmann at Bloomberg News reports that DVB Bank
SE said owners of ships hauling dry-bulk commodities face
bankruptcies, forced sales, and charter renegotiations as a glut
of new vessels reduce earnings to unprofitable levels.

According to Bloomberg, DVB said that hire rates and ship prices
are set to slide further as 41 of the world's largest-ever dry-
bulk vessels are scheduled for delivery this year.  The bank, as
cited by Bloomberg, said that elevated inflation in China, the
biggest global user of commodities from coal to soybeans, may
"impact demand projections negatively".

"The current slowdown can significantly increase the number of
owners going bankrupt due to cash-flow problems," Bloomberg
quotes DVB as saying.  The industry is "staring down an abyss
once again."

Bloomberg relates that DVB said vessels ordered in 2007 and 2008
at prices almost double today's may add to sales of distressed
assets as owners struggle to cover operating costs, leaving them
unable to repay interest or capital.  The bank expects asset
values will fall from 2011 levels and remain flat in the
following year, Bloomberg discloses.  It said that owners of
ships who depleted cash reserves accumulated during a five-year
boom that ended in 2008 are unable to survive a prolonged period
of low earnings, Bloomberg notes.


                            *********

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

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

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

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


                            *********


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

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


                 * * * End of Transmission * * *