TCREUR_Public/120112.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Thursday, January 12, 2012, Vol. 13, No. 9

                            Headlines



C Y P R U S

METELEM HOLDING: S&P Assigns 'B+' Corporate Credit Ratings


C Z E C H   R E P U B L I C

INVESTICNI A POSTOVNI: Court Tosses CSOB Claim on Brewery Shares


D E N M A R K

VESTJYSK BANK: Denmark's Biggest Banks Won't Contribute to Rescue


G E R M A N Y

GELDILUX-TS-2007: S&P Affirms 'B-' Rating on Class E Notes


G R E E C E

* GREECE: Creditors Agree on Coupon & Bond Maturity for Debt Swap


I T A L Y

CARGOITALIA SPA: Placed in Voluntary Liquidation


L U X E M B O U R G

TRUCKLEASE SA: Fitch Affirms Rating on Class D Notes at 'BB+sf'


R O M A N I A

TNUVA ROMANIA: Enters Insolvency; Posts US$200 Million Losses


S P A I N

CAJA DE AHORROS INMACULADA: Fitch Cuts Sub. Debt Rating to 'BB+'


U N I T E D   K I N G D O M

BRITISH MIDLAND: Auditors Raise Going Concern Doubt
CHURCH'S CHINA: Closes Shop After More Than 150 Years
DARLINGTON FC: Stadium Owners Offer GBP50,000 to Help Club
EMI GROUP: Guy Hands' Bid for PwC to Disclose Valuation Tossed
* UK: Companies Face Pressure to Fill In Pension Deficits

* Bingham's London Office Promotes Four Lawyers to Partnership


X X X X X X X X

* Euler Hermes Expects Number of Failed Companies to Rise in 2012
* Upcoming Meetings, Conferences and Seminars


                            *********


===========
C Y P R U S
===========


METELEM HOLDING: S&P Assigns 'B+' Corporate Credit Ratings
----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' long-term
corporate credit ratings to Metelem Holding Company Ltd. and its
indirect subsidiary EILEME 2 AB. The outlook is stable.

"At the same time, we assigned our 'B-' issue rating to Metelem's
planned EUR900 million equivalent bond issue," S&P said.

"The ratings on Metelem primarily reflect our view of the group's
high leverage and aggressive financial policy following its
recent acquisition of Polish wireless operator Polkomtel S.A.
(B+/Stable/B). We also see a long-term risk of mergers among
related parties under the new ownership. In addition, we forecast
relatively limited headroom under the group's covenants in our
base-case credit scenario," S&P said.

"These weaknesses are partly offset by our view of Polkomtel's
solid position as one of the three leading operators in the
Polish wireless market, with a relatively low churn rate. We
consider the Polish wireless market to be highly competitive,
which places material pricing pressure on the group's retail
revenues. Increasing competition, particularly due to the smaller
fourth market player P4, has led to an ongoing decline in voice
revenues at Polkomtel in recent years, along with a decline in
its market share, notably in the pre-paid sector," S&P said.

"However, Polkomtel has managed to mitigate some of the impact of
these declines on its profitability by implementing cost cutting
in its operating structure. In addition, Polkomtel's
profitability is high compared with its local and global peers,
and we see potential for additional cost cutting. We also see
material headroom for growth from mobile broadband given Poland's
relatively low smartphone penetration and poor fixed broadband
coverage. These strengths translate into our assessment of
Metelem's business risk profile as 'satisfactory,'" S&P said.

Metelem is a holding company and the ultimate parent of Polkomtel
after the recent acquisition of 100% of Polkomtel's shares by
Metelem's indirect subsidiary Spartan Capital Holdings Sp.z.o.o.
Metelem is controlled by Mr. Solorz-Zak, who is also the majority
owner of Cyfrowy Polsat S.A. (BB-/Stable/--).

"In our view, Polkomtel's operating performance should remain
relatively stable, with potential growth prospects from 2013
driven by increasing data revenues and the implementation of
cost-cutting initiatives," S&P said.

"We take into account our assumption that, under our base-case
scenario, there will be no material deleveraging in 2012 owing to
high long-term evolution carriage costs, additional pressures on
voice revenues, and declining interconnection revenues. Even so,
we anticipate that adjusted debt to EBITDA should not exceed 5.5x
in 2012," S&P said.

"Downward rating pressure could arise if operating pressures over
2012 are higher than we anticipate, leading to a significant
decline in covenant headroom or an increase in adjusted leverage
to more than 6x. This could materialize, for example, if voice
revenues (excluding interconnection and roaming fees) were to
experience a low double-digit decline, although we consider this
to be unlikely," S&P said.

"Rating upside is limited over the next 12 months, in our
opinion, given our forecast for relatively slow deleveraging.
Rating upside remains possible, however, if the group deleverages
more rapidly than we currently anticipate on the back of
improving and sustainable profitability, with adjusted leverage
of less than 5x," S&P said.


===========================
C Z E C H   R E P U B L I C
===========================


INVESTICNI A POSTOVNI: Court Tosses CSOB Claim on Brewery Shares
----------------------------------------------------------------
CTK reports that the Supreme Court has rejected the appellate
review of the CSOB Czech bank claiming some CZK24 billion from
eight companies around the Nomura Japanese bank for the alleged
illegal and disadvantageous transfer of breweries' shares.

CSOB demanded compensation for the transfer of the Plzensky
Prazdroj and Radegast Czech breweries' shares from the Investicni
a Postovni banka (IPB) bank, CTK says.

The Supreme Court (NS) turned down the appellate review last
December concluding that it had found no reasons for intervention
in the "Czech beer" case, CTK recounts.

The complicated court dispute is one in a series of disputes
stirred up in 2000 after forced administration was imposed on IPB
that was threatened with bankruptcy and after the sale of its
property to CSOB, CTK notes.

In this case, CSOB failed with its compensation claim filed with
the Prague City and High courts, CTK discloses.  It demanded
money IPB allegedly lost in the disadvantageous transaction with
the breweries' shares before the bank went bankrupt, CTK relates.

The Czech National Bank (CNB) imposed forced administration on
IPB on June 16, 2000 and CSOB took over the IPB assets and claims
on June 19, 2000.  The Czech state vouched for the bank's sold
assets, CTK notes.  A major part of the bank's irrecoverable
claims was then transferred to state institutions, in particular
the Czech Bail-out Agency, the report notes.  A number of court
disputes and arbitration proceedings then followed.

The Czech state lost a significant arbitration with Nomura in
2006, CTK says.  However, in November 2006, the Czech Republic
and Nomura signed a settlement agreement and the Czech Republic
paid CZK3.6 billion in damages to Nomura, CTK discloses.  The
state sent the amount to the company in July 2008, the report
cites.

According to available information, the Czech Republic also
pledged to cover any damage and loss Nomura suffered that would
be claimed in other disputes ensuing from contracts, CTK notes.
The pledge allegedly also applies to the CSOB-Nomura dispute in
the "Czech beer" case, CTK states.

Investicni a Postovni banka was a Czech bank.


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


VESTJYSK BANK: Denmark's Biggest Banks Won't Contribute to Rescue
-----------------------------------------------------------------
Adam Ewing and Frances Schwartzkopff at Bloomberg News report
that local media said Denmark's biggest banks won't contribute to
a rescue for Vestjysk Bank A/S.

According to Bloomberg, German newspaper Borsen on Tuesday said a
conference call on Monday that included executives from Danske
Bank A/S, Nordea Bank AB's Danish unit, Jyske Bank A/S and
Sydbank A/S, as well as representatives from the Danish
Bankers Association, ended with an agreement not to rescue
Vestjysk.  The newspaper reported that the banks concluded
Vestjysk must either survive on its own, be taken over by the
state bank resolution agency, or become at least partially
government-owned, Bloomberg notes.

Bloomberg relates that Frank Kristensen, the bank's chief
executive officer, said Vestjysk is "not in a deep crisis" and
will meet its funding requirements by tapping a three-year
lending facility that the Danish central bank made available on
Dec. 8.

"We are not even close to going bankrupt or anything like
that," Bloomberg quotes Mr. Kristensen as saying in a phone
interview on Tuesday.

Mr. Kristensen said that Vestjysk is reviewing various strategic
options and had asked Bankers Association members to comment on
one at Monday's call, Bloomberg recounts.  He said it wasn't a
takeover by another bank and that Vestjysk doesn't have concrete
plans to exercise its option to convert hybrid capital to shares,
which would give the government an ownership stake, Bloomberg
notes.

Bloomberg relates that broadcaster TV2 on Tuesday said Vestjysk
was seeking a guarantee from the banking industry for a
DKK500 million share capital issuance.

In a separate statement to the Copenhagen stock exchange, the
bank said it's continuously monitoring its funding and capital
structures and its strategies, and will make changes public if
and when any are made, according to Bloomberg.

Denmark's government has lent DKK1.4 billion in hybrid core
capital to Vestjysk, Bloomberg says, citing the Web site of
Denmark's bank wind-down agency the Financial Stability Company.

Lars Holm, a Copenhagen-based analyst at Danske Markets, said
that the government can opt to convert its hybrid capital in
Vestjysk to equity to avert another failure, bringing its stake
in the bank to more than 50%, Bloomberg discloses.

As reported by the Troubled Company Reporter-Europe on Jan. 4,
2012, Bloomberg News related Vestjysk, which was ordered last
month to more than double its loan impairments, isn't discussing
a government takeover.  Vestjysk said Dec. 20 that the Financial
Services Authority demanded the bank to increase its writedowns
for 2011 by DKK550 million to DKK950 million on loans related to
agriculture, Bloomberg disclosed.  The bank, as cited by
Bloomberg, said its solvency ratio was 12.7% after the extra
writedowns compared with a 10.6% solvency requirement set by the
regulator.

Vestjysk Bank A/S is a Lemvig, Denmark-based lender.


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


GELDILUX-TS-2007: S&P Affirms 'B-' Rating on Class E Notes
----------------------------------------------------------
Standard & Poor's Ratings Services placed its credit rating on
Geldilux-TS-2007 S.A.'s class A notes on CreditWatch negative.
"At the same time, we affirmed our ratings on all other rated
classes of notes," S&P said.

"The rating action on the class A notes follows the CreditWatch
negative placement of our ratings on Unicredit Bank in its
capacity as originator. When we last took rating action on
Geldilux-TS-2007 in December 2009, we incorporated a cap on the
ratings on the class A to E notes equal to the long-term issuer
credit rating (ICR) on Unicredit Bank. This reflects our view of
the refinance risk prevalent in the portfolio. If UniCredit Bank
were to default, borrowers would need to find third-party
refinancing for maturing loans. During the time that Unicredit
Bank is performing, maturing loans are typically being rolled or
refinanced by drawdowns on the borrowers' working capital or term
facility," S&P said.

Geldilux-TS-2007 was originated by Unicredit Bank AG (A/Watch
Neg/A-1). The securitized assets are short-term loans, advanced
under the bank's euro-loan program, to preferred clients from
various business segments. The majority of borrowers are small
and midsize enterprises (SMEs). During the replenishment period
ending on March 8, 2012, loans from the bank's euro-loan
portfolio are added to the Geldilux portfolio on a random
selection mechanism, subject to the replenishment conditions set
out in the transaction documents. The loans have a maximum
maturity of 368 days and feature a bullet repayment of both
interest and principal. These loans are within the framework of a
client's working capital facility or term facility offered by
Unicredit Bank.

"The affirmation of our ratings on the class B to E notes
reflects the largely unchanged credit quality of the portfolio,
and the short risk horizon of the underlying loans. Since our
last review in December 2009, cumulative defaults have increased
to 0.4% of the portfolio notional from almost zero. At the same
time, cumulative recoveries have also increased, such that
current outstanding defaults are 0.18% of the portfolio notional.
Taking into consideration the current outstanding defaults, under
our recovery assumptions, the credit enhancement available to the
class A to E notes has reduced only marginally," S&P said.

"The portfolio credit quality, when measured by the weighted-
average portfolio rating, remains largely unchanged when compared
with our last review. The reported portfolio weighted-average
life is about 35 days. Following the end of the revolving period
in March 2012, the issuer expects the portfolio to amortize
within one month. We have affirmed our ratings on the class B to
E notes, as in our view the credit enhancement available to these
classes is commensurate with their existing rating levels," S&P
said.

"The sole purpose of the EUR4.5 million of liquidity notes is to
cover interest shortfalls arising from potential timing
mismatches, between receipt of the interest margin payments from
performing loans, and the interest payment dates on the notes.
The issuer holds the entire proceeds of the liquidity notes in
an interest reserve account with Citibank N.A. (A/Negative/A-1),
and according to our 2010 counterparty criteria this classifies
as direct substantial support in relation to these notes.
Unicredit Bank has confirmed to us that to date, the issuer has
made no drawings from this account. The liquidity notes are
repaid via withdrawing the corresponding amount from the issuer's
interest reserve account. We have affirmed our rating on these
notes at its current level, to reflect the ICR on Citibank," S&P
said.

        Potential Effects of Proposed Criteria Changes

"We have taken the rating actions based on our criteria for
rating European SME securitizations. However, these criteria are
under review," S&P said.

"As highlighted in the Aug. 6 Advance Notice of Proposed Criteria
Change, we expect to publish a request for comment (RFC)
outlining our proposed criteria changes for rating European SME
securitizations. Subsequently, we will consider market feedback
before publishing our updated criteria. Our review may result in
changes to the methodology and assumptions we use when rating
European SME securitizations, and consequently, it may affect
both new and outstanding ratings on European SME
securitizations," S&P said.

"Until such time that we adopt new criteria for rating European
SME securitizations, we will continue to rate and surveil these
transactions using our existing criteria," 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

Ratings List

Class                 Rating
            To                     From

Geldilux-TS-2007 S.A.
EUR2.104 Billion Credit-Linked Floating-Rate Notes

Rating Placed On CreditWatch Negative

A           A (sf)/Watch Neg       A (sf)

Ratings Affirmed

B                BBB (sf)
C                BB (sf)
D                B (sf)
E                B- (sf)
Liquidity notes  A (sf)


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


* GREECE: Creditors Agree on Coupon & Bond Maturity for Debt Swap
-----------------------------------------------------------------
Marcus Bensasson at Bloomberg News reports that Euro2day said
Greece, backed by the European Union and International Monetary
Fund, and a negotiating committee for the country's lenders have
agreed on the coupon and maturity of new bonds to be issued as
part of a debt swap.

According to Bloomberg, the Athens-based news Web site said that
lenders who participate in the debt swap will have a choice of
receiving 20-year bonds with a 4% interest rate or 30-year bonds
with a 5% interest rate.

As reported by the Troubled Company Reporter-Europe on Jan. 11,
2012, Bloomberg News related 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.  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, Bloomberg disclosed.  The use of
so-called collective action clauses would trigger what's known as
a restructuring credit event, Bloomberg said.  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,
Bloomberg noted.


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


CARGOITALIA SPA: Placed in Voluntary Liquidation
------------------------------------------------
Mike Weir at IFW reports that Italian air freight carrier
Cargoitalia S.p.A. has been placed in voluntary liquidation in a
development likely to fuel worries over the health of cargo
airlines which operate older aircraft.

IFW reported Monday that Air India would sell six, 30-year-old
freight-adapted Boeing 737s while last week we covered the
suspension of China's first air freight joint-venture, Jade
Cargo, said to be struggling with falling demand.

"It goes without saying that these are hard times for all-cargo
carriers, and it's likely there will be further company failures
in the sector, unfortunately, especially those operating older
freighters," an industry source told IFW.

"A meeting of shareholders of Cargoitalia has voted to place the
company in voluntary liquidation. The board of directors has
suspended the airline's operations in preparation," IFW cited
Milan Malpensa carrier in a brief statement on its website.

"No further statement will be issued until a liquidator has been
appointed and the finances of the company have been reviewed."

In May last year, despite suspending or cancelling planned
services, due to lack of demand on key routes and escalating fuel
prices, the all-cargo carrier told IFW that it was hoping to
announce the purchase of up to five A330s in 2011 a bid to become
more fuel efficient and achieve greater economies of scale.

Part of Cargoitalia's difficulties are said to be stem from the
fact that it had to cope with keen competition on its doorstep,
Cargolux having obtained a license to operate out of Italy with a
dedicated subsidiary, IFW relays.

Cargoitalia, founded in 2004, had been operating a fleet of three
MD-11Fs from Milan to destinations such as Dubai, Hong Kong and
New York, the transatlantic service returning via Chicago.

The company was re-launched at the height of the air cargo
recession in 2009 by its new owner, Alis Aerolinee Italiane,
which bolstered the operation with the acquisition of the cargo
division of Alitalia.


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


TRUCKLEASE SA: Fitch Affirms Rating on Class D Notes at 'BB+sf'
---------------------------------------------------------------
Fitch Ratings has upgraded TruckLease S.A. Compartment No. 1's
class B and C notes, affirmed the class A and D notes, and
revised classes B, C, and D's Outlook to Positive as follows:

  -- Class A notes affirmed at 'AAAsf'; Outlook Stable

  -- Class B notes upgraded to 'AAsf' from 'AA-sf'; Outlook
      revised to Positive from Stable,

  -- Class C notes upgraded to 'Asf' from 'BBB+sf'; Outlook
      revised to Positive from Stable,

  -- Class D notes affirmed at 'BB+sf'; Outlook revised to
      Positive from Stable,

  -- Subordinated Note; unrated

The rating actions reflect the transaction's robust performance
as demonstrated by the low delinquency rates and the cumulative
default ratios to date remaining below Fitch's base case
assumptions set at closing.

TruckLease S.A. is a Luxembourg securitization vehicle.
Compartment No. 1 is the issuer's first -- and so far the only --
compartment, with possible further compartments to follow.

The transaction is the securitization of a portfolio of finance
lease receivables originated in Germany by NL Mobil Lease GmbH
(NL Mobil) and its wholly owned subsidiary UTA-Leasing GmbH.  NL
Mobil is ultimately wholly owned by Albis Leasing AG.

The vast majority of the leases (approximately 85% by outstanding
lease balance as of December 2011) are for the financing of
trucks and trailers, around 7% relate to cars with the remainder
backed by leases on buses or equipment related to the haulage
industry (such as fork lifts).  All lessees are SMEs,
predominantly self-employed individuals (mico-SMEs).  The
transaction started amortizing in fully sequential order after
having completed a three-month revolving period in May 2011.  By
the December 2011 payment date, the collateral balance has
amortized by around 35%, reflecting the leases' relatively short
term.

Germany's economy performed strongly since transaction closing,
with a GDP growth of around 3.1% in 2011 and unemployment rates
decreasing to the lowest levels in 20 years.  Driven by the
favorable economic environment, default rates have remained below
historic levels and the cumulative default rate reported for
TruckLease No. 1 stood at just 1.2% by December 2011 (compared to
the agency's expectation of 3.6% for that point in time).

The fast amortization together with the solid performance has
lead to strongly increased credit enhancement levels.  Fitch
believes that TruckLease No. 1 could therefore withstand
increased stress levels and thus upgraded the class B and C notes
and assigned Positive Outlooks to all tranches (except for the
class A which is already rated 'AAAsf').


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


TNUVA ROMANIA: Enters Insolvency; Posts US$200 Million Losses
-------------------------------------------------------------
Simona Bazavant at Business Review, citing Mediafax, reports that
Tnuva Romania has filed for insolvency.

Last month, Israeli media was announcing that Tnuva had decided
to close its local dairy business after failed attempts to sell
the company, Business Review recounts.  The same source estimates
that Tnuva has reported heavy losses worth US$200 million since
2007 in Romania, Business Review notes.

Last March, Tnuva closed its cow farm in Adunatii-Copaceni (near
Bucharest) which covered 25% of the milk production of its
Popesti Leordeni factory, also due to financial considerations,
Business Review relates.  The company announced at that time that
despite posting loss for several years, it didn't plan to leave
the local market, Business Review discloses.

Tnuva Romania is a dairy producer.


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


CAJA DE AHORROS INMACULADA: Fitch Cuts Sub. Debt Rating to 'BB+'
----------------------------------------------------------------
Fitch Ratings has downgraded the Long-term Issuer Default Ratings
(IDR) of Banco Mare Nostrum S.A. (BMN) and Banca Civica S.A. to
'BBB' from 'BBB+', and Banco Grupo CajaTres S.A. (BCaja3) to
'BBB-' from 'BBB'.  At the same time, the agency has affirmed
Liberbank S.A.'s Long-term IDR at 'BBB+'.  It has also assigned
Kutxabank S.A. a Long-term IDR of 'A-'.  The Outlook for all the
banks' IDRs is Negative.

The rating actions partly reflect Fitch's recent downward
revision of its macro-economic outlook for Spain and hence, the
agency's view that the weaker economic environment will place
further pressure on the transformed cajas' profitability in the
short to medium term.  Moreover, unemployment rates are set to
remain high for some time and, together with the prolonged
downturn in the property sector, this will continue to negatively
affect credit quality.

Fitch also has taken into consideration the entities' high
exposure to the real estate development sector (pure real estate
exposure of 20% of aggregate loans and foreclosures at end-Q311).
Within the real estate sector, Fitch considers exposure to land
of particular concern due to its long transformation period and
the difficulties of appraising and selling this sort of asset in
the absence of a liquid market.

While the new three-year European Central Bank facilities ease
refinancing risks and margin pressure, further loan de-leveraging
is needed to reduce market funding dependence.  In this context,
the transformed cajas also need to complete the integration
process, most of which started at end-2010, and achieve
synergies.  A downgrade of the ratings from the current levels
would be most likely to emanate from an escalation of credit
costs and failure to sustain capital levels and achieve expected
synergies.

The downgrade of BMN's Long-term IDR mostly reflects Fitch's
concerns about expected higher provisioning needs to cover losses
on its significant pure real estate exposures (20% of total loans
and foreclosures).  While BMN's management has demonstrated the
ability to reduce real estate concentration by selling out
properties during 2011, risk concentration to the property sector
still remains significant.  Moreover, BMN has some market funding
reliance, although a large contingency liquidity buffer and
ongoing loan deleveraging would help meet sizeable 2012-2013 debt
maturities.  BMN's Fitch core capital ratio was 6.2%.  Its
regulatory core capital benefits from EUR915 million funds from
the Spanish government Fund for Orderly Bank Restructuring (FROB)
and EUR242 million mandatory convertible bonds subscribed to in
Q411 by third-party investors.

The downgrade of Banca Civica's Long-term IDR mostly reflects
Fitch's concerns about expected higher provisioning needs to
cover losses on its significant pure real estate exposures (22%
of total loans and foreclosures).  Banca Civica also has some
wholesale funding reliance, with certain maturity concentration
in 2012, although the bank's available liquidity pool, further
capacity to generate ECB eligible securities and ongoing loan
deleveraging help to offset refinancing risk.  The bank's Fitch
core capital is moderate, but improved to 7.2% at end-Q311 thanks
to an IPO process.  Its regulatory core capital benefits from
EUR977 million convertible preference shares subscribed by the
FROB.

The downgrade of BCaja3's Long-term IDR mostly reflects Fitch's
concerns about expected higher provisioning needs to cover losses
on its pure real estate exposures and land (29% and 15%,
respectively, of total loans and foreclosures at end-Q311, which
is higher than its peers).  However, BCaja3's ratings also
reflect a comfortable liquidity and funding position, backed by
its large and stable customer deposit base and low market funding
reliance.

The affirmation of Liberbank's Long-term IDR reflects the benefit
of an asset protection scheme (APS) in bolstering reserve
coverage and strengthened capital levels (Fitch core capital
ratio of 8.4% at end-H111).  The latter was further helped by
internal capital generation as well as one-off gains from asset
sales, in particular the sale of a 77% stake in its cable company
subsidiary in October 2011.  Nevertheless, Fitch notes that
profitability will remain under pressure amid economic
deterioration.  Liberbank's coverage of problem loans is partly
explained by the substantial APS received from the Deposit
Guarantee Fund at the time of the integration of Caja de Ahorros
de Castilla-La Mancha, which was intervened by the Bank of Spain
in March 2009.

Kutxabank's ratings primarily reflect its strong franchise in its
home markets, particularly in the prosperous and industrialized
Basque Country, where unemployment is much lower than in the rest
of Spain, which provides it with a stable retail funding base and
satisfactory asset quality.  The ratings also reflect its good
management, pure real estate exposure that is lower than its
peers, sound earning generation and robust capitalization.
Although the bank holds the assets and liabilities of BBK Bank
CajaSur, Kutxabank's coverage of its real estate exposure
benefits from upfront credit losses and APS funds, the latter
received at the time of Caja de Ahorros y Monte de Piedad de
Cordoba's (CajaSur) acquisition.  Although Kutxabank has some
single-name concentration from combined credit and equity risks
exposures, the latter are mostly in sound Spanish utilities
companies. 62% of total loans are to individuals, providing risk
diversification.

Following the transfer of all of the cajas' assets and
liabilities (except on-balance-sheet Social Welfare Funds) to the
recently created BMN, BCaja3 and Kutxabank, Fitch has also
withdrawn the constituent cajas' ratings and the cajas' debt
issues have been transferred to the banks. Fitch has also
assigned VRs to BMN, BCaja3 and Kutxabank.

The banks' Support Ratings are all '3' and their Support Rating
floors (SRF) are 'BB+', indicating that Fitch believes there is a
moderate probability that the banks would receive sovereign
support, if needed.  All of the banks' IDRs are above their SRFs.

State guaranteed debt, where rated, remains on Rating Watch
Negative (RWN), mirroring the RWN placed on the Kingdom of Spain
on December 16, 2011.

The RWNs that remain outstanding on any subordinated securities
are likely to be resolved in Q112.  The resolution of the RWNs on
any preference shares issued by the banks/their former affiliates
reflects the application of Fitch's new criteria 'Rating Bank
Regulatory Capital and Similar Securities' dated December 15,
2011.

The rating actions are as follows:

Banco Mare Nostrum, SA:

  -- Long-term IDR: downgraded to 'BBB' from 'BBB+'; Outlook
     Negative
  -- Short-term IDR: downgraded to 'F3' from 'F2'
  -- Viability Rating: assigned at 'bbb'
  -- Support Rating: affirmed at '3',
  -- Support Rating Floor: affirmed at 'BB+'

Banco Mare Nostrum Group:

  -- Long-term IDR: downgraded to 'BBB' from 'BBB+'; Outlook
  -- Negative; withdrawn
  -- Short-term IDR: downgraded to 'F3' from 'F2', withdrawn
  -- Individual rating: affirmed at 'C', withdrawn
  -- Viability rating: downgraded to 'bbb' from 'bbb+', withdrawn
  -- Support Rating: affirmed at '3', withdrawn
  -- Support Rating Floor: affirmed at 'BB+', withdrawn

Caja de Ahorros de Murcia (Cajamurcia):

  -- Long-term IDR: downgraded to 'BBB' from 'BBB+', Outlook
     Negative, withdrawn
  -- Short-term IDR: downgraded to 'F3' from 'F2', withdrawn
  -- Senior unsecured debt (including long-term CP): downgraded
     to 'BBB' from 'BBB+', transferred to BMN
  -- Short-term senior unsecured debt and commercial paper:
     downgraded to 'F3' from 'F2'; transferred to BMN
  -- Subordinated debt: downgraded to 'BBB-' from 'BBB',
     transferred to BMN
  -- Preferred Stock: downgraded to 'B+' from 'BB', removed from
     RWN, transferred to BMN
  -- State-guaranteed debt: 'AA-' Rating Watch Negative (RWN)
     maintained, transferred to BMN

The impact, if any, from today's rating action, on Cajamurcia's
covered bonds will be detailed in a separate comment.

Caixa d'Estalvis del Penedes (Caixa Penedes):

  -- Long-term IDR: downgraded to 'BBB' from 'BBB+', Outlook
     Negative, withdrawn
  -- Short-term IDR: downgraded to 'F3' from 'F2', withdrawn
  -- Preferred Stock: downgraded to 'B+' from 'BB', removed from
     RWN, transferred to BMN
  -- State-guaranteed debt: 'AA-' RWN maintained, transferred to
     BMN

Caja General de Ahorros de Granada (Caja Granada):

  -- Long-term IDR: downgraded to 'BBB' from 'BBB+', Outlook
     Negative, withdrawn
  -- Short-term IDR: downgraded to 'F3' from 'F2', withdrawn

Caja de Ahorros y Monte de Piedad de las Baleares (Sa Nostra):

  -- Long-term IDR: downgraded to 'BBB' from 'BBB+', Outlook
     Negative, withdrawn
  -- Short-term IDR: downgraded to 'F3' from 'F2', withdrawn
  -- Subordinated debt: downgraded to 'BBB-' from 'BBB',
     transferred to BMN
  -- Preferred Stock: downgraded to 'B+' from 'BB', removed from
     RWN, transferred to BMN
  -- State-guaranteed debt: 'AA-' RWN maintained, transferred to
     BMN

Banca Civica:

  -- Long-term IDR: downgraded to 'BBB' from 'BBB+', Outlook
     Negative
  -- Short-term IDR: downgraded to 'F3' from 'F2'
  -- VR: downgraded to 'bbb' from 'bbb+'
  -- Individual Rating: affirmed at 'C'
  -- Support Rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB+'
  -- Subordinated debt: downgraded to 'BBB-' from 'BBB'
  -- Upper tier 2 subordinated debt: downgraded to 'BB+' from
     'BBB-', maintained on RWN
  -- Preferred stock: downgraded to 'B+' from 'BB', removed from
     RWN
  -- State-guaranteed debt: 'AA-', maintained on RWN

Banco Grupo Caja 3 S.A (BCaja3):

  -- Long-term IDR: downgraded to 'BBB-' from 'BBB'; Outlook
  -- Negative, removed from RWN
  -- Short-term IDR: affirmed at 'F3'
  -- Viability Rating: assigned at 'bbb-'
  -- Support Rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB+'

Caja Tres Group:

  -- Long-term IDR: downgraded to 'BBB-' from 'BBB'; Outlook
     Negative, removed from RWN, rating withdrawn
  -- Short-term IDR: affirmed at 'F3'; rating withdrawn
  -- Viability Rating: downgraded to 'bbb-' from 'bbb'; removed
     from RWN, rating withdrawn
  -- Individual Rating: affirmed at 'C'; removed from RWN, rating
     withdrawn
  -- Support Rating: affirmed at '3'; rating withdrawn
  -- Support Rating Floor: affirmed at 'BB+'; rating withdrawn

Caja de Ahorros Inmaculada de Aragon (CAI):

  -- Long-term IDR: downgraded to 'BBB-' from 'BBB'; Outlook
     Negative, removed from RWN, rating withdrawn
  -- Short-term IDR: affirmed at 'F3'; rating withdrawn
  -- Subordinated debt: downgraded to 'BB+' from 'BBB-'; removed
     from RWN, transferred to BCaja3

Caja de Ahorros y Monte de Piedad del Circulo Catolico de Obreros
de Burgos:

  -- Long-term IDR: downgraded to 'BBB-' from 'BBB'; Outlook
     Negative, removed from RWN, rating withdrawn
  -- Short-term IDR: affirmed at 'F3'; rating withdrawn
  -- Senior unsecured debt: downgraded to 'BBB-' from 'BBB';
     removed from RWN, transferred to BCaja3

Monte de Piedad y Caja General de Ahorros de Badajoz:

  -- Long-term IDR: downgraded to 'BBB-' from 'BBB'; Outlook
     Negative, removed from RWN, rating withdrawn
  -- Short-term IDR: affirmed at 'F3'; rating withdrawn

Liberbank:
  -- Long-term IDR: affirmed at 'BBB+'; Outlook revised to
     Negative from Stable
  -- Short-term IDR: affirmed at 'F2'
  -- Viability Ratings: affirmed at 'bbb+'
  -- Support Rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB+'
  -- State-guaranteed debt: 'AA-' RWN maintained

Banco de Castilla-La Mancha:

  -- Long-term IDR: affirmed at 'BBB+', Outlook revised to
     Negative from Stable
  -- Short-term IDR: affirmed at 'F2'
  -- Support rating: affirmed at '2'
  -- Senior unsecured debt: affirmed at 'BBB+'
  -- Lower Tier 2 subordinated debt: affirmed at 'BBB'
  -- Upper Tier 2 subordinated debt: 'BBB-', RWN maintained

Kutxabank:

  -- Long-term IDR: assigned 'A-'; Outlook Negative
  -- Short-term IDR: assigned 'F2'

  -- Viability Rating: assigned 'a-'
  -- Support Rating: assigned '3'
  -- Support Rating Floor: assigned 'BB+'

Bilbao Bizkaia Kutxa (BBK):

  -- Long-term IDR: downgraded to 'A-' from 'A'; Outlook
     Negative; removed from RWN; withdrawn
  -- Short-term IDR: downgraded to 'F2' from 'F1'; removed from
     RWN; withdrawn
  -- Viability Rating: downgraded to 'a-' from 'a'; removed from
     RWN; withdrawn
  -- Individual Rating: downgraded to 'B/C' from 'B'; removed
     from RWN; withdrawn
  -- Support Rating: affirmed at '3'; withdrawn
  -- Support Rating Floor: affirmed at 'BB+'; withdrawn
  -- Long-term senior unsecured debt: downgraded to 'A-' from
     'A'; removed from RWN; transferred to Kutxabank
  -- Subordinated debt: downgraded 'BBB+' from 'A-'; removed from
     RWN; transferred to Kutxabank

BBK Bank CajaSur:

  -- Senior unsecured debt: downgraded to 'A-' from 'A'; removed
     from RWN
  -- Subordinated debt: downgraded to 'BBB+' from 'A-'; removed
     from RWN
  -- Preferred stock: downgraded to 'BB' from 'BBB'; removed from
     RWN
  -- State-guaranteed debt: 'AA-' RWN maintained

Caja de Ahorros y Monte de Piedad de Guipuzkoa y San Sebastian
(Kutxa):

  -- Long-term IDR: affirmed at 'A-', Outlook Negative; removed
     from RWN; withdrawn
  -- Short-term IDR: affirmed at 'F2'; withdrawn
  -- Viability Rating: affirmed at 'a-'; removed from RWN;
     withdrawn
  -- Individual Rating: affirmed at 'B/C'; withdrawn
  -- Support Rating: affirmed at '3'; withdrawn
  -- Support Rating Floor: affirmed at 'BB+'; withdrawn

Caja de Ahorros de Vitoria y Alava (Caja Vital):

  -- Long-term IDR: upgraded to 'A-' from 'BBB+', Outlook
     Negative; removed from Rating Watch Positive (RWP);
     withdrawn
  -- Short-term IDR: affirmed at 'F2'; withdrawn
  -- Viability Rating: upgraded to 'a-' from 'bbb+'; removed from
     RWP; withdrawn
  -- Individual Rating: upgraded to 'B/C' from 'C'; removed from
     RWP; withdrawn
  -- Support Rating: affirmed at '3'; withdrawn
  -- Support Rating Floor: affirmed at 'BB+'; withdrawn
  -- Long-term senior unsecured debt: upgraded at 'A-' from
     'BBB+'; removed from RWP; transferred to Kutxabank
  -- Short-term senior unsecured debt: affirmed at 'F2';
     transferred to Kutxabank
  -- State-guaranteed debt: 'AA-' RWN maintained; transferred to
     Kutxabank


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


BRITISH MIDLAND: Auditors Raise Going Concern Doubt
---------------------------------------------------
Andrew Parker at The Financial Times reports that auditors to BMI
British Midland, Lufthansa's lossmaking UK airline, have raised
doubts about its ability to continue as a going concern.

The FT relates that PricewaterhouseCoopers said several
uncertainties surrounding BMI, including plans to sell the
airline to International Airlines Group, "may cast significant
doubt over the ability of the company to continue as a going
concern".

The statement was made in the newly released 2010 accounts of
British Midland Airways Limited, BMI's main trading company,
where the directors said the planned sale to IAG was
"fundamental" to the company's future, the FT notes.

The directors added BMI should have sufficient funding until
March 31, when Lufthansa hopes to complete the sale of its UK
subsidiary to IAG, according to the FT.

However, the sale deadline could be missed if the competition
authorities subject the transaction to extensive scrutiny, and
any slippage beyond March 31 would give IAG or Lufthansa the
right to walk away from the deal, the FT states.

IAG, parent of British Airways, is proposing to pay up to
GBP172.5 million in cash for BMI, mainly because Lufthansa's UK
subsidiary is the second largest holder of valuable take-off and
landing slots at capacity-constrained Heathrow airport in London,
the FT discloses.

British Midland Airways, which does business as bmi, --
http://www.iflybritishmidland.com/-- carries passengers to some
30 countries, mainly in the UK but also in continental Europe,
the Middle East, Asia, and Africa.  It operates a fleet of about
50 jets, including Airbus and Embraer models.  Low-fare
subsidiary bmi baby serves about 30 destinations in Europe with a
fleet of about 20 Boeing 737s.  bmi is a member of the Star
Alliance global marketing group, which includes UAL's United
Airlines, Air Canada, and Singapore Airlines.  In mid-2009,
fellow Star Alliance member and global airline giant Lufthansa
acquired majority ownership of bmi.


CHURCH'S CHINA: Closes Shop After More Than 150 Years
-----------------------------------------------------
BBC News reports that Church's China, one of Northamptonshire's
oldest stores, is to close after trading for more than 150 years.

Church's china, which has outlets in the Ridings Arcade in
Northampton and in Market Harborough, has gone into voluntary
liquidation, BBC says.

BBC relates that the economy and excessive pressure from online
competition has been blamed for the company's demise.

According to the report, the former managing director, Stephen
Church, said he felt terribly sad for the staff who will lose
their jobs.  Nine members of staff work at the shop, BBC relays.

Church's China operates China & Glassware Shops based in
Northampton.


DARLINGTON FC: Stadium Owners Offer GBP50,000 to Help Club
----------------------------------------------------------
BBC News reports that Darlington Arena Limited have offered the
supporters trust a donation of GBP50,000 to help save the club,
providing they can find a similar sum.

BBC relates that stadium owners Philip Scott and Graham Sizer
made the gesture to give administrators further time to find a
buyer, with the club in administration.

According to the report, administrators have warned the club is
at risk of liquidation if a buyer cannot be found within the next
week.

The club's home fixture with Fleetwood on January 23 is currently
at risk, the report notes.

Negotiations are also to take place to discuss reducing land
covenants between the stadium owners, the club and the council,
BBC relays.

BBC notes that covenants currently exist that were placed by the
Council when the stadium was built, in return for a reduction in
land costs.

Reducing the covenants would open up the possibility of selling
the stadium and/or land for non-sporting usage, allowing debts to
be met, and the possibility of funding a more manageable venue
for the football club, according to BBC.

BBC say Darlington moved to the stadium from Feethams, their home
for 120 years, in 2003.

But the club lost ownership of it when loan agreements with Scott
and Sizer were not met by former chairman George Houghton and
eventually the club's holding company, DFC Investments Ltd, went
into liquidation, says BBC.

As major creditors, the pair took control of the stadium and
leased it back to the football club on a 'peppercorn rent' of
GBP10,000 a year, BBC adds.

As reported in the Troubled Company Reporter-Europe on Jan. 6,
2012, Business Sale said Darlington Football Club has been placed
into administration after a consortium of local businessmen was
unable to reach a buyout deal with the owner.  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 related 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.


EMI GROUP: Guy Hands' Bid for PwC to Disclose Valuation Tossed
--------------------------------------------------------------
Salamander Davoudi and Jane Croft at The Financial Times report
that Guy Hands has been dealt a blow in his legal dispute with
Citigroup over the US bank's seizure of EMI Group.

According to the FT, a UK court has thrown out the application of
Mr. Hands demanding that PricewaterhouseCoopers, the music
group's administrators, and other advisers disclose valuation
documents.

In his arguments, Mr. Hands' barrister claims that the joint
administrators were not validly appointed and that the sale of
EMI was undervalued or should not have taken place at all, the FT
discloses.

Citigroup wrote off GBP2.2 billion of its GBP3.4 billion loans to
Mr. Hands' 2007 ill-fated buy-out when it seized control of the
music company last year, leaving EMI with more than GBP300
million in cash and GBP1.2 billion of debt, the FT recounts.

The administrators sold EMI to Citigroup for an undisclosed
amount through a pre-packaged administration, the largest on
record, the FT states.

According to the FT, Mr. Hands' submission stated that the sale
of EMI's assets to Citi was "to crystallize a loss by Terra Firma
of the entirety of its investment of about GBP1.85 billion" and
added that there were "serious concerns about the circumstances
surrounding the sale by the joint administrators".

But the judge, as cited by the FT, said there was not "the
slightest suggestion" that Citi had "effected sales at
undervalue" which would be "entirely contrary to its commercial
interests".

He also found that it did not appear TF needed "any of the
valuations" to formulate their claims in so far as they centre on
the value of EMI Group, the FT discloses.

The FT notes that the judge also found, "I do not consider that
the disclosure of the valuations before proceedings have started
will assist in achieving a fair disposal of the anticipated
proceedings."

EMI Group Ltd. -- http://www.emigroup.com/-- 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.


* UK: Companies Face Pressure to Fill In Pension Deficits
---------------------------------------------------------
Norma Cohen at The Financial Times reports that the aggregate
deficit of UK corporate pension schemes with a shortfall soared
to a record at the end of December, according to one official
measure, as the effects of falling interest rates -- which cause
liabilities to swell -- overwhelmed the impact of higher stock
markets.

According to the FT, The UK's Pension Protection Fund said that
at the end of December, its 7800 Index, which measures the assets
and liabilities of UK schemes, showed a record shortfall for
schemes in deficit of GBP277.1 billion (US$429.2 billion), up
from GBP246.7 billion at the end of November 2011 and from
GBP61.0 billion at the end of December 2010.

The latest numbers have provoked the National Association of
Pension Funds, a trade body representing employers who sponsor
retirement funds, to underscore the need for funding rules to be
applied flexibly, the FT relates.

"This Index shows that pension funds are falling even further
into the red, and businesses will be under more pressure to fill
in the deficits," the FT quotes Joanne Segars, NAPF chief
executive, as saying.


* Bingham's London Office Promotes Four Lawyers to Partnership
--------------------------------------------------------------
Bingham on Jan. 5 disclosed that it has elected four lawyers in
its London office to join the firm's partnership.  All four are
in Bingham's market leading Financial Restructuring,
Transactional Finance and Securities and Financial Institutions
Litigation practices.

"Bingham has seen consistent growth over the past 16 years" said
Jay Zimmerman, chairman of Bingham.  "The addition of these
partners reflects the contribution of our successful London
office to that growth, and is a further investment in our global
finance platform."

"We are pleased to welcome these lawyers to the partnership,"
said James Roome, managing partner of the London office and co-
chair of the firm's global Financial Restructuring Group.
"Following steady investment in our core practice areas in
London, the promotion of these four lawyers will further
strengthen our finance, financial restructuring and litigation
resources."

Bingham's London office represents many of the word's largest
insurance companies, pension funds, investment banks, investments
funds, distressed debt investors, international agencies,
governments and multinational corporate groups.  Lawyers from the
office have acted on a number of high-profile financial
restructuring and financial litigation cases in recent years,
including representing the bondholders of the three Icelandic
banks (Glitnir, Kaupthing and Landsbanki) that are currently
being restructured; the bondholders of Polish telecom and energy
conglomerate Elektrim, on nearly a decade of litigation which
resulted in a total recovery for bondholders of more than EUR700
million; the noteholders on the EUR1.3 billion financial
restructuring of the Quinn Group; and the bondholders in nearly
all the restructurings of high yield bonds in Norway, including
Petromena and Skeie Drilling.

"The election to partnership is well deserved for these lawyers,"
said Barry Russell, head of the firm's London Finance Group and
co-head of Bingham's Transactional Finance Group.  "Each have
played an important role in some of our most significant matters
over the past several years, and we expect they will contribute
to the further growth of the London office."

The partnerships are effective Jan. 1.  The newly elected
partners, listed alphabetically, are:

Neil Devaney.  Mr. Devaney has a wide range of finance,
restructuring and insolvency experience, working with creditors,
debtors, sponsors and insolvency practitioners in Europe and the
U.S.  His current practice focuses on advising par and distressed
investors on the restructuring of troubled European companies.
Typically acting on the creditor side, Mr. Devaney has a wealth
of cross border experience and has been involved some of the
largest debt for equity swaps to have been implemented in Europe
in the last few years.

Michael Gustafson.  Mr. Gustafson represents financial
institutions on a variety of debt financing transactions, with an
emphasis on the representation of insurance companies and other
institutional investors in cross-border private placements.  He
also has experience acting for creditors on complex U.K. and
cross-border workouts and financial restructurings.

Richard Hornshaw.  Mr. Hornshaw, formerly based in the London
office and now in the firm's Hong Kong office, acts for financial
institutions on high-value, complex and cross-border disputes,
and focuses on finance and securities law matters as well as
insolvency and restructuring situations and contentious
regulatory disputes.  He has experience conducting and resolving
disputes throughout the Asia-Pacific region, in the U.K. and
Europe.

Liz Osborne.  Ms. Osborne concentrates on U.K. and cross-border
insolvency, workouts and restructurings, and represents hedge
funds, bondholders, institutional lenders, secondary market
investors and creditor committees in relation to strategic and
legal issues concerning their distressed debt and special
situation investments.

These four promotions in London are in addition to the election
of another London lawyer, financial regulatory and investment
funds lawyer Christopher Leonard, to Bingham's partnership in
June of 2o11.  Mr. Leonard advises clients on all aspects of the
financial regulatory framework in the U.K. and on commercial and
securities issues affecting the financial services industry.
Mr. Leonard's clients include U.K.- and U.S.-based retail and
investment banks, brokerages, institutional asset managers, fund
managers, product distributors, and start up financial services
companies.  The partner elections, a total of nine firmwide, are
the culmination of a strong 2011 for Bingham, which included the
expansion of key practices in strategic global markets, most
notably with the launch of its Beijing office and with the
addition of Mark Dawkins (former Managing Partner of Simmons &
Simmons) as a litigation partner in the London office.  As
noted above, Richard Hornshaw relocated to Bingham's Hong Kong
office in 2011 to help grow the region's securities and financial
institution litigation capabilities.

Bingham -- http://www.bingham.com -- is a global law firm with
more than 1,000 lawyers in 14 offices in the U.S., Europe and
Asia.  The firm offers a broad range of market-leading practices
focused on global financial services firms and Fortune 100
companies.


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


* Euler Hermes Expects Number of Failed Companies to Rise in 2012
-----------------------------------------------------------------
According to Reuters, credit insurance company Euler Hermes said
in a report that the number of failed companies is expected to
rise by 3% globally this year, led by Europe, under the weight of
an economic slowdown and tighter monetary and budgetary policy.

Reuters relates that Euler Hermes Chief Economist Ludovic Subran
said, "Failures will likely increase by 12 percent in the euro
zone, including a 19 percent rise among Mediterranean countries
that have been 'very weakened by the crisis.'"

"Growth is running out of steam in emerging markets and getting
bogged down in debt-submerged markets," Reuters quotes Mr. Subran
as saying.  "The euro zone, where demand is depressed and
prospects for exports are reduced, is clearly at the epicentre of
the crisis."


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

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

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

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

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

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

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

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

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


                            *********

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

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

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

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


                            *********


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

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