TCREUR_Public/120118.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 18, 2012, Vol. 13, No. 13

                            Headlines



C Y P R U S

* CYPRUS: S&P Lowers Sovereign Credit Ratings to 'BB+/B'


G E R M A N Y

ADAM OPEL: Labor Chief Expects Restructuring Plan
GECKO GROUP: Centrosolar Buys Plant Development Business Unit
MANROLAND AG: Gets Interested Investor to Buy Entire Business
TITAN 2006-1: S&P Lowers Ratings on Two Note Classes to 'CCC-'


G R E E C E

* GREECE: To Resume Debt Talks with Creditors Today


I R E L A N D

QUINN GROUP: High Court Declares Sean Quinn Bankrupt
* IRELAND: Galway's Corporate Insolvencies Hit 100 in 2011


L A T V I A

AIRBALTIC: Riga Regional Court Launches Insolvency Proceedings
SIA PALINK: Declared Insolvent, Incurs LVL300,000 Losses Per Week


N E T H E R L A N D S

LEOPARD III: S&P Lowers Ratings on Two Note Classes to 'CCC-'
LEOPARD IV: S&P Raises Rating on Class E Notes to 'B+'
TWINNY LOAD: ZenS Holding Acquires Part of Operations


P O R T U G A L

* PORTUGAL: S&P Cuts Sovereign Credit Ratings to 'BB/B'


S W E D E N

SAAB AUTOMOBILE: 100 Classic Models Put Up for Sale
SAS AB: At Risk of Defaulting on Debt


U N I T E D   K I N G D O M

BLUE FIN: S&P Affirms 'BB+' Rating on EUR155-Mil. Class A Notes
CARBONDESK LIMITED: ICE Futures Europe Suspends Membership
CARDS GALORE: Workers Lose Jobs Due to Liquidation
CASPIAN SERVICES: European Bank Could Force Bankruptcy
CLEAR SKY: High Court Winds Up Business After Gov't. Probe

DECO SERIES: Fitch Affirms Rating on GBP2.8-Mil. Notes at 'Dsf'
GENERAL HEALTHCARE: May Face Restructuring; Vultures Eye Takeover
HOT TUNA: Sports Direct to Acquire Business for GBP950,000
INEOS GROUP: S&P Affirms 'B-' Long-Term Corporate Credit Rating
SANGS: Goes Bust; 230 Jobs at Risk

UNIT COMMUNICATIONS: Goes Into Voluntary Liquidation
* SCOTLAND: More Corporate Failures in 2012, PKF Warns


                            *********


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C Y P R U S
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* CYPRUS: S&P Lowers Sovereign Credit Ratings to 'BB+/B'
--------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term and
short-term sovereign credit ratings on Cyprus by two notches to
'BB+/B' from 'BBB/A-3'. The outlook is negative. "We have removed
the long- and short-term sovereign credit ratings on Cyprus from
CreditWatch, where they were first placed with negative
implications on Aug. 12, 2011. We have assigned a recovery rating
of '4'," S&P said.

"Our transfer and convertibility (T&C) assessment for Cyprus, as
for all eurozone members, is 'AAA', reflecting Standard & Poor's
view that the likelihood of the European Central Bank restricting
nonsovereign access to foreign currency needed for debt service
is extremely low. This reflects the full and open access to
foreign currency that holders of euro currently enjoy and which
we expect to remain the case in the foreseeable future," S&P
said.

"The outcomes from the EU summit on Dec. 9, 2011, and subsequent
statements from policymakers lead us to believe that the
agreement reached has not produced a breakthrough of sufficient
size and scope to fully address the eurozone's financial
problems. In our opinion, the political agreement does not supply
sufficient additional resources or operational flexibility to
bolster European rescue operations, or extend enough support for
those eurozone sovereigns subjected to heightened market
pressures," S&P said.

"We also believe that the agreement is predicated on only a
partial recognition of the source of the crisis: that the current
financial turmoil stems primarily from fiscal profligacy at the
periphery of the eurozone. In our view, however, the financial
problems facing the eurozone are as much a consequence of rising
external imbalances and divergences in competitiveness between
the eurozone's core and the so-called 'periphery.' As such, we
believe that a reform process based on a pillar of fiscal
austerity alone risks becoming self-defeating, as domestic demand
falls in line with consumers' rising concerns about job security
and disposable incomes, eroding national tax revenues," S&P said.

"The downgrade reflects our view of the systemic stresses --
emanating from the eurozone -- we see on the large Cypriot
financial sector and Cyprus' external asset position, which in
our view remains susceptible to a write-down on its high lending
exposure to Greece. Cyprus is in a net external liability
position that has averaged nearly 10% of GDP between 2007 and
2011, noting that this excludes 'brass plate' holding companies
and financial institutions that do not have meaningful local
operations. It has run a current account deficit averaging 11% of
GDP over the same period. Besides increasing funding costs, we
expect losses on Cypriot banks' loan books to Greek customers --
along with the banks' holdings of Greek government and bank paper
-- will further worsen its net external liability position and
increase narrow net external debt to levels above 100% of current
account receipts. In our view, Cyprus' external financing costs
may remain elevated for some time due to high gross external
financing requirements and reduced financial market integration
in the eurozone," S&P said.

"The ratings on Cyprus are constrained by what we view as a
politically obstructive environment, a relatively concentrated
economy, and very high contingent liabilities emanating mostly
from its large financial sector. The ratings are supported by
relatively high levels of prosperity and strong official
institutions," S&P said.

"We have assigned a recovery rating of '4', indicating an
expected recovery rate of 30% to 50% in the event of a default,
however unlikely," S&P said.

"The negative outlook reflects our view that there is at least a
one-in-three probability that we could lower Cyprus' long-term
rating again in the next 12 months. This could occur in a context
of losses from a Greek restructuring that turn out to be higher
than we currently anticipate. This could lead to lower economic
growth and larger external vulnerabilities, which could give us
cause to adjust our economic and external scores in accordance
with our criteria. Additionally, we could reduce our fiscal score
if the government significantly misses its revised fiscal deficit
targets, for example due to a sustained decline in growth or if
domestic banks were to require additional significant fiscal
support from the state," S&P said.

Cyprus' long-term rating could stabilize at the current level if
private creditors were to provide any needed capital to domestic
banks. If public-sector access to market funding improves and
government financing is assured, amid stabilizing growth
prospects, the ratings could also stabilize.


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


ADAM OPEL: Labor Chief Expects Restructuring Plan
-------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that the new works
council chief of General Motors Co.'s loss-making European Opel
unit said he expects the parent company to present a new plan for
making the business profitable this month, noting that forced
layoffs and plant closures are ruled out until 2014 under the
current labor agreement.

Adam Opel GmbH -- http://www.opel.com/-- is General Motors
Corp.'s German wholly owned subsidiary.  Opel started making cars
in 1899.  Opel makes passenger cars (including the Astra, Corsa,
and Vectra) and light commercial vehicles (Combo and Movano).
Its high-performance VXR range includes souped-up versions of
Opel models like the Meriva minivan, the Corsa hatchback, and the
Astra sports compact.  Opel is GM's largest subsidiary outside
North America.


GECKO GROUP: Centrosolar Buys Plant Development Business Unit
-------------------------------------------------------------
pv magazine reports that Centrosolar AG will expand its field of
activities after its partial takeover of insolvent Gecko Group.
The purchase, according to the report, is still subject to
approval by the German Federal Cartel Office.

pv magazine relates that Centrosolar Group bought a part of the
insolvent Gecko Group just before the new year.  Georg Biekehor,
spokesperson for investor relations at the company, said the
plant development business division of Gecko Group was offered to
Centrosolar for sale by the Frankfurt liquidator Jan Markus
Plathner.

The purchase price runs into a six-digit figure, the report
notes.

Mr. Biekehor, as cited by pv magazine, said the acquisition was a
"useful complement" to Centrosolar's existing businesses but does
not necessarily spell "strategic realignment."

The Gecko Group is regionally active and have focused on mid-
sized photovoltaic plants with an annual turnover of
approximately EUR20 million.  The approximately 50 jobs are to be
retained, Mr. Biekehor, as cited by pv magazine, said.


MANROLAND AG: Gets Interested Investor to Buy Entire Business
-------------------------------------------------------------
Stefan Nicola at Bloomberg News, citing German newspaper
Handelsblatt, reports that Manroland AG may be bought in its
entirety by a financial investor.

Bloomberg relates that the German newspaper said the insolvency
administrator Werner Schneider is also in talks to sell the
insolvent printing-press maker's plants in Augsburg, Offenbach
and Plauen separately.

According to Bloomberg, the newspaper, citing people close to the
unions, said that while a strategic investor from Germany is
interested in the Augsburg facility, Shanghai Electric Group
Co.'s offer for the Offenbach unit won't be considered as the
Chinese company was interested in the technology only and would
have closed the plant.

As reported by the Troubled Company Reporter-Europe on Jan. 6,
2012, Bloomberg News related that Manroland, which filed for
insolvency in November, has attracted interest from close to 10
bidders.  Bloomberg disclosed that two people familiar with the
matter said domestic and foreign strategic buyers and financial
investors have handed in offers for the company.  Werner
Schneider, Manroland's administrator, said in a statement on
Jan. 4 that he is aiming to find a buyer for "key company
segments" by the end of the current insolvency proceedings on
Jan. 31, Bloomberg recounted.

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


TITAN 2006-1: S&P Lowers Ratings on Two Note Classes to 'CCC-'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
Titan Europe 2006-1 PLC's class B, C, and D notes.

"The rating actions follow our review of the property sales
associated with the Mangusta Portfolio and KQ Warehouse Portfolio
loans. Our loss expectations for these two loans have increased,"
S&P said.

                        Mangusta Portfolio Loan

The Mangusta Portfolio loan was initially secured against a
portfolio of 14 mixed-use, retail, industrial, and leisure
properties in various areas of Germany. The loan has been in
special servicing since June 23, 2008, following a breach of a
financial information loan covenant. One property was sold in
2009. Six were then sold in June 2011 for EUR67.2 million in
gross proceeds, which represented 87% of the August 2009
valuation. After deducting for fees and expenses, the issuer used
EUR57.5 million to prepay the class A notes on the July 2011
interest payment date (IPD). The current securitized balance is
EUR62.9 million (22.3% of the pool) and the junior loan balance
is EUR22.2 million.

"We understand that the closing of the sale of the remaining
seven properties has been delayed due to an issue with the land
charge register, which has prevented the transfer of ownership of
the properties. The sale price of these remaining properties has
not been disclosed," S&P said.

"We estimate the potential losses on the securitized Mangusta
Portfolio loan to be approximately EUR56.0 million," S&P said.

                    KQ Warehouse Portfolio Loan

The KQ Warehouse Portfolio loan was initially secured by two
logistics properties, one in Leipzig and one in Munich, and by a
plot of development land in Leipzig. The loan transferred into
special servicing in November 2009, after the tenants filed for
insolvency.

"The special servicer, Hatfield Philips International Ltd.,
divided the Leipzig property into three parcels for sale. Two of
these have been sold for EUR12.9 million in gross proceeds. After
deducting for fees and expenses, the issuer used EUR7.5 million
to prepay the class A notes on the July 2011 and October 2011
IPDs. We understand that the sale of the remaining Leipzig parcel
for EUR675,000 in gross proceeds has been notarized but has not
been completed," S&P said.

In November 2011, the sale of the Munich property was completed
for EUR13.5 million in gross proceeds, with net proceeds of up to
EUR12.0 million available to prepay the notes on the Jan. 23,
2012 IPD.

"The current securitized balance is EUR73.7 million (26.1% of the
pool) and the junior loan balance is EUR14.2 million. Based on
these sales, we estimate the potential losses on the KQ Warehouse
securitized loan to be approximately EUR61.0 million," S&P said.

"The rating actions reflect our view that the class C and D notes
will likely incur principal losses, and we have lowered our
ratings on these notes to 'CCC- (sf)' to reflect this. We have
also lowered our rating on the class B notes to 'BB (sf)' from
'BBB- (sf)', to reflect the decreased subordination available to
this class as a result of these likely principal losses," S&P
said.

Titan Europe 2006-1 closed in March 2006, with notes totaling
EUR723.3 million. The notes have a legal final maturity in
January 2016. Of the 10 loans that originally backed the
transaction, five have repaid. The note balance has reduced to
EUR282.0 million.

          Potential Effects of Proposed Criteria Changes

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

"As highlighted in the Nov. 8 Advance Notice of Proposed Criteria
Change, we expect to publish a request for comment (RFC)
outlining our proposed criteria changes for rating European CMBS
transactions. 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 CMBS, and consequently, it may affect both new and
outstanding ratings on European CMBS transactions," S&P said.

"Until such time that we adopt new criteria for rating European
CMBS, 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

Titan Europe 2006-1 PLC
EUR723.303 Million Commercial Mortgage-Backed Floating-Rate and
Variable-Rate
Notes

Class              Rating
            To                From

Ratings Lowered

B           BB (sf)           BBB- (sf))
C           CCC- (sf)         BB- (sf)
D           CCC- (sf)         B+ (sf)

Ratings Unaffected

A           AA (sf)
X           AA (sf)
E           D (sf)
F           D (sf)
G           D (sf)
H           D (sf)


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


* GREECE: To Resume Debt Talks with Creditors Today
---------------------------------------------------
Aaron Kirchfeld and Jesse Westbrook at Bloomberg News reports
that Greece's creditor banks broke off talks after failing to
agree with the government about how much money investors will
lose by swapping their bonds, increasing the risk of the euro-
area's first sovereign default.

Proposals by a committee representing financial firms
haven't produced a "constructive consolidated response by all
parties," Bloomberg quotes the Washington-based Institute of
International Finance as saying in a statement on Friday.  The
group, as cited by Bloomberg, said talks with Greece and the
official sector are "paused for reflection on the benefits of a
voluntary approach".

Greek officials and the nation's creditors agreed in October to
implement a 50% cut in the face value of Greek debt, with a goal
of reducing Greece's borrowings to 120% of gross domestic product
by 2020, Bloomberg recounts.  More than two months after the
accord was announced, the two sides still need to agree on the
coupon and maturity of the new bonds to determine losses for
investors, Bloomberg notes.  The IIF had aimed to implement the
swap this month, Bloomberg states.

According to Bloomberg, a Greek Finance Ministry official said
that talks between Prime Minister Lucas Papademos, Finance
Minister Evangelos Venizelos and Charles Dallara, the managing
director of the IIF, will resume today, Jan. 18, as more work is
needed after Friday's consultations.  On Saturday, the IIF, as
cited by Bloomberg, said there is a "tentative plan" for Dallara
and Jean Lemierre to return to Athens mid-week, "but this depends
on developments over the next few days."

Greece is aiming to reach the framework for a deal this week,
when talks on terms for a second financing agreement with
European Union and International Monetary Fund officials start in
Athens, Bloomberg discloses.  A deal on the swap must be struck
before March 20, when Greece must make a EUR14.5 billion bond
payment, Bloomberg says.

Mr. Papademos, as cited by Bloomberg, said on Friday that the
successful completion of the swap was imperative for Greece to
receive international aid.

According to Bloomberg, a person with direct knowledge of the
negotiations said that European governments have been pushing for
the Greek debt to carry a coupon of 4%.  Bloomberg notes that
private bondholders said they would accept those terms for a
period of time if they were able to get a bigger payout later as
Greece's economy recovered.  The IMF probably sought a coupon
close to 2% for the Greek debt swap, Le Figaro reported on
Saturday, Bloomberg recounts.

"In the end, they'll need to reach an agreement," Bloomberg
quotes Matthias Engelmayer, a Frankfurt-based analyst at
Independent Research GmbH, as saying.  "No one is interested in a
disorderly default."

The IIF, as cited by Bloomberg, said that the committee had
offered a 50% nominal reduction of Greece's sovereign bonds in
private investors' hands and as much as EUR100 billion
(US$127 billion) of debt forgiveness.

Greece hasn't yet decided whether to submit legislation that
could force holders of the nation's debt to take part in a bond
swap, Bloomberg says, citing a government spokesman.

Some analysts have said hedge funds holding Greek bonds may
resist the deal, seeking to reap greater profit by triggering
payouts from credit-default swaps, Bloomberg notes.

German Chancellor Angela Merkel, who met with French President
Nicolas Sarkozy earlier this week, said at the time the debt
restructuring needs to be completed soon to enable Greece to
receive its next tranche of aid, Bloomberg relates.

"The second Greek program, including the debt restructuring, has
to be carried out quickly now because otherwise it won't be
possible to pay out the next tranche for Greece," Ms. Merkel, as
cited by Bloomberg, said on Jan. 9.  Greece "really has to
implement the commitments made to the troika" of the IMF, the
European Commission and the European Central Bank."

Meanwhile, Fabio Benedetti-Valentini at Bloomberg News, citing Le
Monde, reports that Greece is seeking a 3% percent coupon for a
sovereign debt swap with private creditors, who want 5%.


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I R E L A N D
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QUINN GROUP: High Court Declares Sean Quinn Bankrupt
----------------------------------------------------
RTE News reports that Sean Quinn has been declared bankrupt at
the High Court in Dublin.  Ms. Justice Elizabeth Dunne made the
adjudication, according to the report.

RTE relates that the Irish Bank Resolution Corporation, the
former Anglo Irish Bank, brought the application to have Sean
Quinn declared bankrupt.

Mr. Quinn had intended to challenge the issuing of a bankruptcy
summons but on Monday morning, a solicitor on his behalf said he
was withdrawing that challenge, RTE discloses.  The solicitor
also told the Court that Mr. Quinn was not opposing the bank's
bankruptcy application.  Mr. Quinn himself was not in court, RTE
notes.

The bank brought the application on the back of orders by the
Commercial Court directing Mr. Quinn to repay loans of more than
EUR2 billion, RTE states.

According to RTE, lawyers for the bank said Mr. Quinn's center of
main interests was under the jurisdiction of the Dublin High
Court.

Mr. Quinn's affairs now come under the control of a court
appointed official and he will have to submit a statement of
affairs to that official, RTE discloses.

Mr. Quinn had declared himself bankrupt in Belfast last month
only for that declaration to be overturned after the IBRC
appealed the decision, RTE recounts.

The former insurance, cement, glass and property businessman now
faces a court order barring him from running a company for the
next 12 years rather than two years if imposed by a UK court, RTE
says.

The IBRC is also in ongoing disputes with some of the Quinn
family over ownership of overseas assets, RTE states.

As reported by the Troubled Company Reporter-Europe on Sept. 15,
2011, Irish Examiner related that the Quinn family began legal
proceedings against Anglo earlier in 2011 in which they
challenged the appointment of the receiver appointed over their
shares in some of the Quinn Group companies in Ireland.  They
were also taking action in Cyprus challenging Anglo's appointment
of a receiver over shares in a number of Cypriot companies, Irish
Examiner noted.

The Quinn Group -- http://www.quinn-group.com/-- is a business
group headquartered in Derrylin, County Fermanagh, Northern
Ireland.  The privately owned group has ventured into cement and
concrete products, container glass, general insurance, radiators,
plastics, hotels and real estate.


* IRELAND: Galway's Corporate Insolvencies Hit 100 in 2011
----------------------------------------------------------
Galway Independent reports that corporate insolvencies among
Galway-based companies reached almost 100 last year, according to
new statistics released by the Insolvency Journal.  The figures
show that corporate insolvencies for 2011 totalled 1,638,
including 99 Galway firms, the report says.

Insolvency declarations by Galway-based businesses reached their
peak in February and March last year, when 12 insolvencies were
recorded each month, Galway Independent discloses.

Nationally, the report notes, there was a 7% increase in the
number of insolvencies.  Businesses in Leinster accounted for
over 63% of all insolvencies, with Munster accounting for
21%, Connaught 11% and Ulster just 5%, according to the report.

Galway Independent notes that Ken Fennell, Partner with
insolvency specialists Kavanagh Fennell, said that 2011 proved to
be another very challenging year for Irish businesses as total
corporate insolvencies continued to rise and were very much in
line with the firm's predictions at the start of the year.


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


AIRBALTIC: Riga Regional Court Launches Insolvency Proceedings
--------------------------------------------------------------
The Baltic Course reports that the Riga Regional Court has
launched insolvency proceedings against the private shareholder
of the Latvian national airline airBaltic -- Baltijas Aviacijas
Sistemas Ltd.

LETA, citing the Insolvency Administration, reported that the
court, after receiving an insolvency petition from Veriko Ltd.
against BAS, began insolvency proceedings on January 9, The
Baltic Course relates.

According to the Baltic Course, the Transport Ministry, using its
pre-emptive right, bought airBaltic shares that previously
belonged to BAS, but were pledged as security at the now-
liquidated bank Latvijas Krajbanka.

The Transport Ministry bought 47.2% of airBaltic shares, which
BAS pledged as security with Krajbanka, for the nominal value of
the shares, LVL224,453, and the sate now holds 99.8% of airBaltic
shares, the report discloses.

The Transport Ministry informs that the shares were acquired in
order to protect the interests of the state, the Baltic Course
notes.

Former airBaltic president Bertolt Flick owns 50% in BAS.  On the
other hand, the Bahamas-based company Taurus Asset Management
Fund Limited owns the other 50%.


SIA PALINK: Declared Insolvent, Incurs LVL300,000 Losses Per Week
-----------------------------------------------------------------
Baltic Business News reports that a Riga District Court declared
SIA Palink, Latvia's third largest retail chain, insolvent on
Jan. 5, 2012.

The insolvency proceeding was initiated by Russian citizen Sergei
Guschin but dates back to a previous conflict Palink had with SIA
Landekss, Baltic Business News says.  According to the report,
Landekss claims that Palink has not paid in full for the
construction services Landekss had provided to the company.
Palink, on the other hand, claims that it has already paid more
than the actual amount of services delivered, the report notes.
Landekss had ceded one of its debts to Mr. Guschin.

Palink nevertheless maintained, according to Baltic Business
News, that it will continue working, calling the accusations
"completely absurd" and claiming that it can settle all its
financial obligations.  Palink, the report cites, also warns that
such legal precedents could make foreign investors reconsider the
safety of their investments in Latvia.

Based in Latvia, SIA Palink operates Cento and IKI supermarket
chains.  Its largest owner is the pan-European retailer alliance
Coopernic.

       Insolvency Ruling Costs Firm LVL300,000 Weekly Losses

In related news, The Baltic Course reports that Marcel Haraszti,
director general of SIA Palink's parent company UAB Palink, told
business portal Nozare.lv that the supermarket chain operator
suffers at least LVL300,000 in losses each week due to the recent
insolvency ruling.

According to Baltic Course, LETA reported that Mr. Haraszti said
the court's ruling negatively affects the company's business
activities, since its work, payments to creditors, real estate
transactions and other activities have been essentially halted.

At the same time, Baltic Course relates, UAB Palink director
general emphasized that it was not Palink that started the legal
dispute, "even though we are convinced that rule of law and
courts are sometimes the only civilized means to settle disputes
among companies."

UAB Palink believes that the Palink insolvency case is an
extortion attempt, making use of holes in the Latvian law, which
may create a precedent very dangerous to the investment
environment of Latvia, Baltic Course says.

Based in Latvia, SIA Palink operates Cento and IKI supermarket
chains.  Its largest owner is the pan-European retailer alliance
Coopernic.


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


LEOPARD III: S&P Lowers Ratings on Two Note Classes to 'CCC-'
-------------------------------------------------------------
Standard & Poor's Ratings Services took various credit rating
actions on Leopard CLO III B.V.'s outstanding rated notes.

Specifically, S&P has:

  -- Raised its ratings on the class A1 and B notes;

  -- Lowered its ratings on the class D, E1 and E2 notes; and

  -- Affirmed its ratings on the class C1 and C2 notes.

"The rating actions follow our review of the transaction's
performance using data from the trustee report dated Dec. 15,
2011, in addition to our cash flow analysis. We have taken into
account recent developments in the transaction and reviewed the
transaction under our 2010 counterparty criteria and our cash
flow criteria," S&P said.

"The rating actions follow our assessment of the transaction's
performance and the application of relevant criteria for
transactions of this type," S&P said.

"From our analysis, we have observed a negative rating migration
in the portfolio since we last reviewed the transaction; there
has also been an increase in defaulted assets (including 'CC',
'SD', and 'D') both in terms of notional value and percentage
terms. The par coverage test results for the class D notes are
lower that those recorded in our March 2010 analysis, and the
class E par coverage tests are currently failing," S&P said.

"We have also noted that the weighted-average spread earned on
Leopard CLO III's amortizing collateral pool has increased. The
credit enhancement available to the senior classes of notes has
increased due to principal payments toward the class A1 notes
after the end of the reinvestment period. However, with higher
defaults, the credit enhancement available to the class E1 and E2
notes has decreased since our last review of this transaction. We
have also observed a small decline in the assets that we consider
to be rated in the 'CCC' category (including 'CCC+', 'CCC', and
'CCC-')," S&P said.

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

"In our opinion, the credit enhancement available to the class A1
and B notes is commensurate with higher ratings than previously
assigned. We have therefore raised our ratings on these classes
of notes," S&P said.

"The credit enhancement available to the class C notes (C1 and
C2) are commensurate with the current ratings. We have therefore
affirmed our ratings on these classes of notes," S&P said.

"The ratings on the class D, E1, and E2 notes were constrained by
the application of the largest obligor default test, a
supplemental stress test we introduced in our 2009 criteria
update for corporate collateralized debt obligations (CDOs). We
have therefore lowered our ratings on these classes of notes,"
S&P said.

"We have applied our 2010 counterparty criteria and, in our view,
the participants to the transaction are appropriately rated to
support the ratings on the notes," S&P said.

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

             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

Leopard CLO III B.V.
EUR350 Million Floating- and Fixed-Rate Notes

Ratings Raised

A1          AA+ (sf)          AA- (sf)
B           AA- (sf)          A- (sf)

Ratings Lowered

D           B- (sf)           B+ (sf)
E1          CCC- (sf)         CCC+ (sf)
E2          CCC- (sf)         CCC+ (sf)

Ratings Affirmed

C1          BBB- (sf)         BBB- (sf)
C2          BBB- (sf)         BBB- (sf)


LEOPARD IV: S&P Raises Rating on Class E Notes to 'B+'
------------------------------------------------------
Standard & Poor's Ratings Services took various credit rating
actions on Leopard CLO IV B.V.'s outstanding EUR343.15 million
notes (excluding the combo note balance).

Specifically, S&P:

  -- Raised its ratings on the class B, C1, C2, D, E, and R-Combo
     notes;

  -- Lowered its rating on the class Z-Combo notes; and

  -- Affirmed its rating on the class A notes.

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

"These rating actions follow our assessment of the transaction's
performance and our application of relevant criteria for
transactions of this type," S&P said.

"For our review of the transaction's performance, we used data
from the trustee report dated Oct. 31, 2011, in addition to our
cash flow analysis. We have taken into account recent
developments in the transaction and reviewed it under our 2010
counterparty criteria, as well as our cash flow criteria," S&P
said.

"From our analysis, we have observed positive rating migration in
the portfolio since we last reviewed the transaction, and a
decrease in the proportion of assets that we consider to be rated
in the 'CCC' category ('CCC+', 'CCC', and 'CCC-'). However, the
proportion of defaulted assets (rated 'CC', 'SD' [selective
default], and 'D') in the pool has increased," S&P said.

"We have also noted that the weighted-average spread earned on
Leopard CLO IV's collateral pool has increased and the par
coverage test results are higher since our last review," S&P
said.

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

"Taking into account our credit and cash flow analyses and our
2010 counterparty criteria, the credit enhancement available to
the class B, C1, C2, D, and E notes is consistent with higher
ratings than previously assigned. We have therefore raised our
ratings on these classes of notes," S&P said.

"The rating on the class R-Combo notes addresses ultimate payment
of interest and principal. The current outstanding balance for
this class is 78.6% of the original balance, which is a result of
the timely payment of interest on its component. We have
therefore raised our rating on this class of notes by three
notches," S&P said.

"The rating assigned to the class Z-Combo notes addresses the
cash flows from the notes' component parts that are equivalent to
the initial principal amount. The rating assigned to this class
of combination notes does not address any residual interest. We
assume that all of the cash flows toward the class Z-Combo notes,
on each payment date, reduce the balance of these notes, rather
than a portion reported to pay interest. In our opinion, the
likelihood of this class being repaid its initial principal is
therefore directly linked to the current outstanding zero-coupon
bond issued by The Royal Bank of Scotland PLC -- which we
recently downgraded to 'A/A-1'. We have therefore lowered the
rating on the class Z-Combo notes to the level of the long-term
rating on The Royal Bank of Scotland," S&P said.

"The credit enhancement available to the class A notes is
commensurate with the current rating, and hence we have affirmed
our rating on this class of notes," S&P said.

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

"JP Morgan Chase Bank N.A. (A+/Stable/A-1), Citibank N.A.
(A/Negative/A-1), and Credit Suisse International (A+/Negative/A-
1) currently provide currency swaps on the non-euro-denominated
assets in the portfolio. We have applied our 2010 counterparty
criteria and, in our view, the swap documents do not completely
reflect these criteria. Nonetheless, we have analyzed the
counterparties' exposure to the transaction, and we consider that
this is sufficiently limited not to affect our rating on the
class A notes if the swap counterparty failed to perform," 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

Leopard CLO IV B.V.
EUR419.475 Million Floating- and Fixed-Rate Notes

Ratings Raised

B            A+ (sf)           A- (sf)
C1           BBB+ (sf)         BBB- (sf)
C2           BBB+ (sf)         BBB- (sf)
D            BB+ (sf)          BB (sf)
E            B+ (sf)           B (sf)
R-Combo      BBB (sf)          BB (sf)

Rating Lowered

Z-Combo      A (sf)            A+ (sf)

Rating Affirmed

A            AA- (sf)          AA- (sf)


TWINNY LOAD: ZenS Holding Acquires Part of Operations
-----------------------------------------------------
www.bike-eu.com reports that ZenS Holding took over a part of the
activities of Twinny Load.  The takeover does not include
production.

As reported in the Troubled Company Reporter-Europe on Nov. 24,
2011, Bike Europe said Twinny Load has gone into liquidation.
Twinny Load is an independent company and is 100% owned by the
Felua Group.  Bike Europe related that the Felua Group got under
financial pressure because of declining funding and budget cuts
by the local authorities forcing them to find a suitable
acquisition candidate for Twinny Load.

www.bike-eu.com says the transfer of current management of Twinny
Load, Bart Wiegant and Ruud van Abbema is included in the deal
with ZenS Holding.

With brands like Service Best International and Autosport Tepper,
ZenS Holding is active in the automotive industry but the company
is also a parts and components supplier in the bicycle industry,
according to www.bike-eu.com.

"The transfer of all activities of the strong international brand
Twinny Load to ZenS Holding is a preferred solution as service
and warranty for all current owners of a Twinny Load carrier are
guaranteed as well as deliveries of all accessories and
replacement parts", www.bike-eu.com quotes Bart Wiegant, Twinny
Load CEO, as saying.

Netherlands-based Twinny Load manufactures bicycle carriers.


===============
P O R T U G A L
===============


* PORTUGAL: S&P Cuts Sovereign Credit Ratings to 'BB/B'
-------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
sovereign credit rating on the Republic of Portugal by two
notches to 'BB' from 'BBB-', and its short-term rating to 'B'
from 'A-3'. The outlook on the long-term rating is negative.

"Our transfer and convertibility (T&C) assessment for Portugal,
as for all eurozone members, is 'AAA', reflecting Standard &
Poor's view that the likelihood of the European Central Bank
restricting nonsovereign access to foreign currency needed for
debt service is extremely low. This reflects the full and open
access to foreign currency that holders of euro currently enjoy
and which we expect to remain the case in the foreseeable
future," S&P said.

"At the same time, we assigned a recovery rating of '4' to
Portugal's debt issues, indicating our expectation of 'average'
(30%-50%) recovery for debtholders in the event of a debt
restructuring or payment default," S&P said.

"The downgrade reflects our opinion of the impact of deepening
political, financial, and monetary problems within the eurozone,
with which Portugal is closely integrated. It also reflects our
view of sustained external financing pressures on Portugal's
private sector, and what these may imply for growth performance
and, in turn, public finances," S&P said.

"The outcomes from the EU summit on Dec. 9, 2011, and subsequent
statements from policymakers, lead us to believe that the
agreement reached has not produced a breakthrough of sufficient
size and scope to fully address the eurozone's financial
problems. In our opinion, the political agreement does not supply
sufficient additional resources or operational flexibility to
bolster European rescue operations, or extend enough support for
those eurozone sovereigns subjected to heightened market
pressures," S&P said.

"We also believe that the agreement is predicated on only a
partial recognition of the source of the crisis: that the current
financial turmoil stems primarily from fiscal profligacy at the
periphery of the eurozone. In our view, however, the financial
problems facing the eurozone are as much a consequence of rising
external imbalances and divergences in competitiveness between
the eurozone's core and the so-called 'periphery'. As such, we
believe that a reform process based on a pillar of fiscal
austerity alone risks becoming self-defeating, as domestic demand
falls in line with consumers' rising concerns about job security
and disposable incomes, eroding national tax revenues," S&P said.

"Accordingly, in line with our published sovereign criteria, we
have adjusted downward the political score we assign to Portugal.
This is a reflection of our view that the effectiveness,
stability, and predictability of European policymaking and
political institutions (with which Portugal is closely
integrated) have not been as strong as we believe are called for
by the severity of a broadening and deepening financial crisis in
the eurozone," S&P said.

"For Portugal, we believe this weakened policy environment could
complicate domestic political support for the implementation of
the EU/IMF program, put the government's fiscal consolidation
strategy at risk, and trigger further increases in Portugal's
already high net general government debt stock, which is expected
to end 2012 at 106% of GDP. In our view, the debt restructuring
process in Greece could further alienate potential investors in
Portuguese government debt and reduce the likelihood that
Portugal might be able to return to capital markets some time in
2013," S&P said.

"We have also lowered Portugal's external score according to our
criteria, to reflect our view of the impact on Portugal of what
we consider to be rapid deterioration in the European financial
markets. We believe there are significant risks to Portugal's
external financing over the next two years as creditors of its
private sector, primarily other eurozone banks, are likely to
reduce their exposures to Portugal more rapidly than previously
anticipated, partly due to uncertainties on the EU's future
crisis management policies. We believe that the proposed sale by
Portuguese banks of external assets -- given the deteriorating
financial environment in Europe -- is unlikely to generate
financial inflows as planned. We think this will likely force the
banks to deleverage more rapidly, and with a greater focus on
domestic assets, than we had previously expected," S&P said.

"Portugal's ratings are also constrained by what we view as the
country's very high public sector debt and weak economic growth
potential. The ratings are supported by our view of the currently
strong commitment to fiscal consolidation and extensive program
of structural reform under the EU/IMF program," S&P said.

"Together with the lowering of our ratings on Portugal to 'BB/B',
we have also assigned a recovery rating of '4' to Portugal's
debt. This is in keeping with our policy to provide our estimates
of likely recovery of principal in the event of debt
restructuring or a debt default for issuers with a speculative-
grade rating. A recovery rating of '4' reflects our current
expectation of 'average' (30%-50%) recovery for holders of
Portuguese government debt," S&P said.

"The outlook on the long-term rating on Portugal is negative,
indicating that we believe there is at least a one-in-three
chance that we could lower the ratings again in the next 12
months. In our view, a more severe economic contraction could
result in a worsening political environment in Portugal and
further negative adjustment in our political score, according to
our criteria. In particular, continued fiscal austerity without
improving growth prospects could result in widespread
unemployment, which could negatively affect social cohesion and
political support for the EU/IMF program. We could also lower the
ratings if we come to the view that the potential cost of
recapitalizing Portuguese banks is likely to increase the
government debt burden substantially," S&P said.

"Conversely, the ratings could stabilize at the current level if
Portugal achieves full compliance with the EU/IMF official
lending program, in particular, fully implementing structural
reforms and lifting growth prospects; or successful sales of
assets in the public and private sectors generate substantial
inflows of funds to mitigate external liquidity constraints," S&P
said.


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


SAAB AUTOMOBILE: 100 Classic Models Put Up for Sale
---------------------------------------------------
Viknesh Vijayenthiran at MotorAuthority reports that a Swedish
law firm involved in the liquidation of Saab Automobile following
last month's bankruptcy announcement has posted for sale a list
of more than 100 classic models belonging to the Saab Heritage
Museum in Trollhattan, Sweden.

Interested buyers are required to send in written bids on the
collection to the law firm Delphi, either as a whole or
individually, via mail or fax by this Friday, January 20,
MotorAuthority discloses.

                           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.


SAS AB: At Risk of Defaulting on Debt
------------------------------------
Toby Alder and Abigail Moses at Bloomberg News report that
credit-default swaps insuring the bonds of SAS AB signal there's
a 78% chance of the Nordic region's largest carrier being unable
to meet its commitments, making it the world's riskiest airline
debt.

According to Bloomberg, it now costs EUR3.6 million (US$4.6
million), or 36%, in advance and EUR500,000 annually to insure
EUR10 million of the Stockholm-based company's debt for five
years.  That's up from EUR1.4 million in September and makes the
contracts the most expensive among airlines tracked by swaps
data provider CMA, Bloomberg notes.

Investors are concerned SAS will lose support of the governments
of Sweden, Norway and Denmark should they succeed in plans to
sell their 50% stake in the company, and a new owner will
struggle negotiating with 37 different unions, competing with
low-cost carriers and slowing sales, Bloomberg discloses.  Swaps
on AMR Corp. traded at 57% upfront on Oct. 26 before soaring to
83% on Nov. 29, after the parent of America Airlines surprised
dealers by seeking protection from creditors, Bloomberg recounts.

"There's still great uncertainty in SAS and there's an increased
fear of the sustainability of the company as a standalone firm in
the longer term," Bloomberg quotes Henrik Blymke, a senior credit
analyst a Stockholm-based SEB AB, Sweden's fourth-largest bank,
as saying.  "Investors are also concerned they will have problems
refinancing the maturing debt at acceptable levels given the
current market conditions."

Bloomberg relates that SAS said in a Nov. 8 statement the
company, which completed US$1.1 billion of cost-cutting in June,
has almost EUR1.5 billion (US$1.9 billion) of debt outstanding.
Mr. Blymke, as cited by Bloomberg, said that it has EUR113
million of bonds coming due in May and two notes issued in March
2011 and maturing in 2014 have clauses enabling bondholders to
sell the bonds back at par if the governments reduce their stake
to below 25%.

According to Bloomberg, an earnings report show that the
company's debt was more than six times its earnings before
interest, tax, depreciation, amortization and rent at the end of
September, compared with 10 times a year earlier.

A total of 1,855 credit-default swaps contracts are outstanding
on SAS, covering US$383.5 million of debt, Bloomberg says, citing
the Depository Trust & Clearing Corp., which runs a central
registry for the market.  The contracts traded at a record
EUR3.7 million upfront Jan. 6 and sellers of default protection
traditionally demand payment in advance when they perceive an
imminent risk of default, Bloomberg states.

SAS AB -- http://www.sasgroup.net/-- is a Sweden-based company,
engaged in the air transport services.  It is a parent company
within SAS Group, which operates within two business areas.  The
Core SAS segment encompasses airline services in the Nordic
countries, as well as intercontinental flights through SAS
Scandinavian Airlines, as well regional airlines in Norway
through Wideroe and in Finland through Blue1.  The SAS Individual
Holdings segment comprises operations of Estonian Air, bmi, All
Cargo, Skyways, Air Greenland, Spirit and Trust.  SAS AB's fleet
encompasses ten planes.  In addition, the Company offers ground
handling services and technical maintenance for the aircraft, as
well as air freight solutions and cargo capacity on passenger
aircraft, purely cargo aircraft and cargo handling.  The Group is
also involved in the trainings within the technical aviation
field.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Jan. 2,
2012, Moody's Investors Services maintained the Probability of
Default ratings  and Long Term Corporate Family (foreign
currency) ratings of Caa1 on SAS AB at 'Caa1'.


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


BLUE FIN: S&P Affirms 'BB+' Rating on EUR155-Mil. Class A Notes
---------------------------------------------------------------
Standard & Poor's Rating Services affirmed its credit rating on
the EUR155 million series 1 class A principal-at-risk floating-
rate notes issued by Blue Fin Ltd., following a change in
investment guidelines for the underlying collateral.

On Dec. 28, 2011, Blue Fin asked holders of the notes, which are
due on April 10, 2012, to consent to an amendment of the total
return swap. Under the new terms, from Jan. 17, 2012, Blue Fin
will invest any cash it receives upon the maturity or redemption
of the collateral securities in German treasury discount paper
(BUBILLS) with a maximum duration of 90 days.

"Our view of the transaction's credit risk reflects the
counterparty credit ratings on all the parties involved that can
affect the timely payment of interest and the ultimate payment of
principal on the notes," S&P said. S&P's rating takes into
account:

  * The ratings on Allianz SE (AA/Watch Neg/A-1+) as the
    guarantor of Allianz Argos 14 GmbH. Allianz Argos 14 is the
    counterparty to the risk transfer contract and makes
    quarterly premium payments to Blue Fin;

  * The implied rating on the catastrophe risk 'BB+'; and

  * The rating on Morgan Stanley (A-/Negative/A-2) as the
    guarantor of Morgan Stanley Capital Services Inc., the total
    return swap counterparty.

"The rating reflects the lowest of these three ratings, which is
currently the rating on the catastrophe risk. The amendment to
the investment guidelines has no impact on our view of the credit
risk of the notes as we rely on the rating on Morgan Stanley as
the guarantor of the total return swap counterparty," S&P said.


CARBONDESK LIMITED: ICE Futures Europe Suspends Membership
----------------------------------------------------------
Reuters reports that ICE Futures Europe has suspended the
membership of CarbonDesk Limited until further notice.

Last November, CarbonDesk Group PLC said in a statement that its
subsidiary had entered into a Company Voluntary Arrangement (CVA)
as it no longer had enough cash to pay its debts, and it named
administrators to take over management, Reuters recounts.

CarbonDesk Group PLC, the report cites, said last October its
shares were suspended after it failed to disclose yearly
financial results.

CarbonDesk Limited is a London-based emissions broker.


CARDS GALORE: Workers Lose Jobs Due to Liquidation
--------------------------------------------------
EveningNews24 reports that eight people have been made redundant
after greeting card supplier Cards Galore saw a downturn in trade
over the last nine months.

"There has been a downturn in the trade over the last nine months
and the directors did not think it was going to be able to be
revived. The market they are in is quite competitive. They have
decided it is better to call it a day," the report quotes
Jamie Playford -- jp@parkerandrews.co.uk -- of Norwich-based
insolvency company Parker Andrews, as saying.

Mr. Playford said that the company lost a substantial number of
orders after the local retailer -- which accounted for a third of
its turnover -- went to another supplier, according to
EveningNews24.

Mr. Playford said there were very little assets of value and
stock had been sold in the last few weeks, EveningNews24 relays.

The company operated as a sole trader before it was incorporated
in 2007.

The liquidation of Cards Galore is the latest in a series of
retailers who have got into financial difficulty, the report
notes.


CASPIAN SERVICES: European Bank Could Force Bankruptcy
------------------------------------------------------
Caspian Services, Inc., filed on Jan. 13, 2012, its annual report
on Form 10-K for the fiscal year ended Sept. 30, 2011.

Hansen, Barnett & Maxwell, P.C., in Salt Lake City, Utah,
expressed substantial doubt about Caspian Services' ability to
continue as a going concern.  The independent auditors noted that
a Company creditor has indicated that it believes the Company may
be in violation of certain covenants of certain substantial
financing agreements.  "The financing agreements have
acceleration right features that, in the event of default allow
for the loan and accrued interest to become immediately due and
payable.  As a result of this uncertainty, the Company has
included the note payable and all accrued interest as current
liabilities at September 30, 2011.  At Sept. 30, 2011, the
Company had negative working capital of US$50,454,000.
Uncertainty as to the outcome of these factors raises substantial
doubt about the Company's ability to continue as a going
concern."

The Company reported a net loss of US$12.0 million on
US$49.1 million of total revenues for fiscal 2011, compared with
a net loss of US$34.1 million on US$46.2 million of total
revenues for fiscal 2010.

The Company's balance sheet at Sept. 30, 2011, showed US$105.1
million in total assets, US$86.1 million in total liabilities,
and stockholders' equity of US$19.0 million.

             EBRD Could Force Company Into Bankruptcy

The European Bank for Reconstruction and Development ("EBRD") has
verbally notified the Company that it believes the Company is in
violation of at least some of the financial covenants of its
financing agreements.

To date, EBRD has taken no action to establish the defaults or to
increase or accelerate the debt obligations the Company owes them
or to accelerate their put right.  Should EBRD determine to take
such action and exercise its acceleration or other rights, the
Company would not have sufficient funds to repay the loan or to
satisfy the EBRD put right and would be forced to seek sources of
funding to satisfy these obligations.

As of Sept. 30, 2011, the outstanding amount due to EBRD was
US$19,874,000.  In addition, were EBRD to accelerate its put
option the accelerated put price would be US$10,000,000 plus an
internal rate of return of 20% per annum, which at Sept. 30,
2011, was US$5,817,000.

"Given the difficult equity and credit markets and our current
financial condition, we believe it would be very difficult, if
not impossible, to obtain such funding," the Company said in the
filing.  "If we were unable to obtain funding to repay the loan
or satisfy the put, we anticipate EBRD could seek any legal
remedies available to it to obtain repayment of its loan.  These
remedies could include forcing the Company into bankruptcy.  As
the financing provided to us by EBRD is secured by mortgages on
the real property, assets and bank accounts of Balykshi and CRE,
and guaranteed by the Company, EBRD could also pursue remedies
under those security agreements, including foreclosing on the
marine base and other assets."

A copy of the Form 10-K is available for free at:

                       http://is.gd/Yetu2F

Salt Lake City, Utah-based Caspian Services, Inc., provides
diversified oilfield services to the oil and gas industry in
western Kazakhstan, including providing a fleet of vessels,
onshore, transition zone and marine seismic data acquisition and
processing services and a marine supply and support base in the
port of Bautino, in Bautino Bay, Kazakhstan.


CLEAR SKY: High Court Winds Up Business After Gov't. Probe
----------------------------------------------------------
How-Do reports that Clear Sky Communications has been wound up
after the High Court heard that it harassed and bullied other
businesses for payment.

Clear Sky Communications sold advertising space in business-to-
business information booklets, the report says.

How-Do relates that following an investigation the Insolvency
Service discovered the company had over-stated the commercial
benefit of such ads and exaggerated the number of booklets
published.

The Insolvency Service also found Clear Sky had issued invoices
worth more than GBP400,000 to 1,400 business from 2008-11.  Many
of those targeted had not even agreed to place an ad, the report
adds.

According to the report, Insolvency Service investigators found
that the company misled advertisers into believing that the
booklets represented "a high quality, low cost method" to promote
their business.

Due to inadequate trading records, cash withdrawals of GBP56,000
and other payments from the company's bank account remain
unexplained, says How-Do.

The court heard that the company was a continuation of Heywood-
based Rose Garland, a similar business that was wound up in 2009.


DECO SERIES: Fitch Affirms Rating on GBP2.8-Mil. Notes at 'Dsf'
---------------------------------------------------------------
Fitch Ratings has affirmed all of DECO Series 2005 - UK Conduit 1
plc's note classes, as follows:

  -- GBP22.6m class A due July 2017 XS0222802364 affirmed at
     'AAAsf'; Outlook Stable
  -- GBP14.5m class B due July 2017 XS0222803099 affirmed at
     'AAsf'; Outlook Stable
  -- GBP12.2m class C due July 2017 XS0222803842 affirmed at
     'BBsf'; Outlook Stable
  -- GBP10.5m class D due July 2017 XS0222806514 affirmed at
     'CCsf'; Recovery Estimate 70%
  -- GBP2.8m class E due July 2017 XS0222830811 affirmed at
     'Dsf'; Recovery Estimate 0%

The affirmation of all the notes is a reflection of the
transaction's continued stable performance which is in line with
Fitch's expectations.

CPI Retail Active Management, the largest loan accounting for
50.6% of the outstanding pool balance, defaulted at its scheduled
maturity in October 2010.  Upon maturity, the in-place interest
rate hedging expired, which has resulted in a significant
increase to the interest cover ratio (3.90x on the whole loan at
the October interest payment date (IPD) compared to 1.35x a year
prior).  This has helped facilitate a partial repayment of GBP1.0
million through excess rental income.  Despite the repayment,
Fitch still has concerns on the high leverage and weak trading
conditions in secondary quality retail sites.  Fitch estimates a
whole loan-to-value ratio (LTV) of 111%, in excess of the
reported 100.3% (based on a December 2010 valuation).

The Holaw loan (6% of the pool) was accelerated in December 2011
following the failure to repay at maturity.  The collateral
securing the loan is a 140 acre estate site comprising office
accommodation, a hotel and four residential lodges.  The office's
former tenant vacated the premises in March 2010 after exercising
its break option.  However the breaking of the lease was
successfully contested, resulting in a payout from the tenant of
which GBP1.9m was used as partial repayment of the loan.  Along
with the recent letting of the hotel, this has improved the
loan's exit position, with the reported whole LTV, at 24%, which
is low (this is based on the original 2005 valuation; the Fitch
LTV is 44%).  While there should be sufficient equity to avoid a
principal loss, rising interest rates could lead to shortfalls,
given interest coverage of 1.40x (at the October 2011 IPD) and
unhedged interest rate risk.  Should the loan enter workout,
while the office space remains vacant, investor appetite will be
constrained.

Five of the loans, representing 39% of the pool by balance,
mature in 2012, heightening refinance risk.  However with legal
final maturity of the bonds in July 2017, there should be ample
time for the servicer or special servicer to devise and implement
exit strategies.


GENERAL HEALTHCARE: May Face Restructuring; Vultures Eye Takeover
-----------------------------------------------------------------
Robin Wigglesworth and Simon Mundy at The Financial Times report
that distressed debt investors are circling General Healthcare
Group, in expectation that the company will be forced to
restructure its heavily indebted financial set-up.

According to the FT, the company was straddled with
GBP1.9 billion of gross debt in the 2006 acquisition by Netcare,
the South African healthcare group; Apax Partners, the private
equity investor; and two property investors.  The company was
subsequently split into operating and property arms, or a so-
called opco-propco structure, the FT recounts.  The special
situations arm of KKR, the US private equity group, is one of the
funds that has bought some of the hospital company's debts, the
FT says, citing people familiar with the matter.

The FT notes that taking over GHG could be difficult and
controversial, given its intricate financial structure and the
owners' likely reluctance to ceding control without a fight, so
the funds are expected to work with the owners to put it back on
a firmer footing, possibly by swapping some debt for equity.

GHG's property arm has GBP1.65 billion of debt that is serviced
by increasing rental payments from the operating arm, the FT
discloses.  According to the FT, a person familiar with the
matter said that the propco also has a significant liability
through an interest rate swap with banks, and the opco has debts
of about GBP260 million.

The propco debts do not fall due until October 2013, but if the
company is unable to raise the funds required this year -- a
daunting task given the shaky state of the markets and GHG's
indebtedness -- the operator's accountants could voice concerns
over its viability, the FT states.

Distressed debt investors say there is also a clause that allows
the propco to take over the operating arm at book value should a
rental payment be missed, according to the FT.

"It's incredibly leveraged and troubled," the FT quotes a top US
distressed debt investor as saying.  "The price [of the company's
loans] isn't interesting quite yet, but GHG will come into play
over the next six months."

According to the FT, analysts say that GHG may force Netcare into
a rights issue if it wants to rescue the company.

General Healthcare Group is one of the UK's largest private
hospital operator by revenue.  It operates 70 hospitals and
treatment centers across the country and employs 15,000 people.


HOT TUNA: Sports Direct to Acquire Business for GBP950,000
----------------------------------------------------------
Alexandra Stevenson at The Financial Times reports that Sports
Direct is set to acquire Hot Tuna for GBP950,000.

The deal would see Brands Holdings, a subsidiary of Sports
Direct, acquire Hot Tuna's assets and intellectual property, the
FT says.

After the sale of the assets, Hot Tuna (International) plc will
be a cash shell with about GBP600,000 to invest, the FT
discloses.  It will rename itself Concha, the FT states.  It will
remain quoted on Aim, although the market's rules stipulate that
an investment company must be active, either through investments
or a reverse merger within twelve months or it will face
suspension, the FT notes.

As reported by the Troubled Company Reporter-Europe on Jan. 4,
2012, The Scotsman related that Hot Tuna suffered further heavy
losses as it admitted it needed a buyer to rescue the brand.  The
company said underlying losses were GBP862,000 in the year to
June 30 after sales more than halved to just GBP207,000, the
Scotsman disclosed.  The company put itself up for sale in
November after it admitted that sales had not met targets and the
business was unlikely to be able to stay afloat throughout 2012,
the Scotsman recounted.

Hot Tuna is a surfwear business best known for its piranha logo.
It sells its products in the UK, US and Australia.


INEOS GROUP: S&P Affirms 'B-' Long-Term Corporate Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Swiss
chemicals producer Ineos Group Holdings S.A. and Ineos' U.K.
subsidiary Ineos Holdings Ltd. to stable from positive. "At the
same time, we affirmed our 'B-' long-term corporate credit rating
on Ineos," S&P said.

"The rating actions stem from our view that Ineos' EBITDA would
have fallen in the fourth quarter of 2011 and will likely remain
under pressure in 2012. For this year we now factor in EBITDA of
closer to EUR1.2 billion, instead of EUR1.5 billion previously,
under our base-case credit scenario. This is in view of the
worsened economic outlook in Europe, with a modest recession
forecast for the first half of the year; sharply declined naphta-
cracker margins; and increased pressure on intermediate chemical
margins over the past several months," S&P said.

"Consequently, we estimate that Ineos' adjusted debt-to-EBITDA
margin will deteriorate to almost 6x in 2012, compared with less
than 5x in our previous forecast. Nevertheless, we believe the
company's credit metrics for 2011 would have improved after a
strong performance in the first three quarters. We estimate the
adjusted debt-to-EBITDA ratio at 4.2x for the full year 2011,
despite our view of much lower EBITDA in the fourth quarter.
However, our base-case scenario points to a possible covenant
breach in 2012, in terms of the net debt-to-EBITDA ratio and
EBITDA interest coverage ratio. This is even if we currently
assume that banks would consent to resetting covenant levels,
as they have in the past," S&P said.

"We still view Ineos' financial risk profile as 'highly
leveraged,' given its continually low credit metrics and
perceived low financial flexibility, despite substantial debt
reductions from disposals in 2010 and 2011. The risk of covenant
breaches in 2012-2013 is high, in our view, given tightening
covenant levels and anticipated less-supportive petrochemical
margins. Concentrated ownership, group complexity, and
refinancing risk in relation to large debt maturities in 2013-
2016 are other weaknesses. The group's gradually improving credit
metrics and positive free cash flow (FCF) expectations, in view
of the reduction of the interest burden and capital spending
following the disposal of its refinery assets, mitigate these
risks," S&P said.

"Our assessment of Ineos' 'fair' business risk profile takes into
account the group's diverse large-scale integrated petrochemical
sites, access to low-priced ethane for its U.S. cracker and
polyolefin plants, and its fairly resilient chemical intermediate
segment (phenols, nitriles, oxides, and oligomers). We also
consider that profitability and FCF have improved, owing to cost
reductions implemented in previous years and reduced capital
intensity following the refinery disposal. Key business
weaknesses include the cyclicality of petrochemical profits and
exposure to challenging economic conditions in Europe, which
contributes about 60% of sales, and a sluggish recovery in the
U.S. (32% of sales)," S&P said.

"The stable outlook reflects our view that Ineos' minimal amount
of debt maturing until 2013 and likely positive, near-term free
cash flow mitigate the effects of the deteriorated operating
environment and the heightened risk of a covenant breach in 2012.
The outlook also reflects our anticipation of timely bank support
for Ineos in relation to waiving covenant breaches, as banks did
in the past. We also factor in Ineos' track record of modest
deleveraging and improved profitability in 2010 and 2011," S&P
said.

"We could lower the rating if Ineos were unable to renegotiate
its covenants by June 2012 or refinance debt maturing in 2013
sufficiently ahead of their due dates. This could for instance
occur if bank support were to weaken, which in our opinion is
more difficult to gauge than in the past," S&P said.

"An upgrade is unlikely in the near term, in view of the worsened
economic conditions, and would hinge on improved operating
forecasts, headroom under covenants, as well as progress on
timely refinancing of debt maturing in 2013-2016," S&P said.


SANGS: Goes Bust; 230 Jobs at Risk
----------------------------------
Nathalie Thomas at The Scotsman reports that two businesses owned
by Scots entrepreneur Kenny Webster -- soft drinks maker Sangs
and petrol station operator Calanike Retailing -- have gone bust,
throwing doubt over 230 jobs.


UNIT COMMUNICATIONS: Goes Into Voluntary Liquidation
----------------------------------------------------
How-Do reports Unit Communications has gone into voluntary
liquidation.  Chairman David Wilkinson confirmed to How-Do that
the company ceased trading on Dec. 21, 2011.

How-Do relates that Mr. Wilkinson explained that he had bought
both the goodwill and assets from the liquidator on the
understanding that he would be setting up anew with Unit account
managers Karen Young and Millie Neil.

However, Mr. Young told How-Do that they in fact wanted a new
start and have now set up their own agency, KMS Media, which has
began trading with "new premises, new software and new systems in
place."

The managers said they had the backing of media agency Carat
Manchester, with access to their "full media buying resources,"
the report relays.

Mr. Wilkinson said that he would be setting up a new company
called DW Advertising, How-Do adds.

Unit Communications is one of Manchester's most established
agencies.  At its peak, How-Do discloses, the company had around
30 staff at its Canal Street base and its client list included
the likes of MEN Arena, The Lowry, BBC Philharmonic, Northern
Ballet, National Media Museum, National Museums Liverpool, Opera
North and FACT.


* SCOTLAND: More Corporate Failures in 2012, PKF Warns
------------------------------------------------------
Jaimie Kaffash at Accountancy Age says that a new report has
warned that more Scottish individuals and businesses will go bust
in 2012.

According to Accountancy Age, a PKF report has predicted that an
average of 25 Scottish businesses a week will be declared
insolvent, equating to 1,300 throughout the year.  The latest
insolvency figures show that 361 companies in Scotland went bust
in the third quarter of 2011, the highest recorded and a 46.2%
increase compared with the third quarter of 2010, Accountancy Age
relates.

"These figures tell their own story and indicate that whole
swathes of Scottish business are being adversely affected by the
continued economic downturn," Accountancy Age quotes Bryan
Jackson, PKF corporate recovery partner, as saying.  "Whilst we
are not seeing many large businesses go under we are seeing
dozens of smaller businesses collapse."

The PKF report, according to Accountancy Age, also predicted an
increase in Scottish personal bankruptcies. It predicts that
20,000 people will be declared insolvent in 2012 based on rising
bankruptcy and trust deed figures over the first three quarters
of 2011.  It also said that affluent Scots would be affected,
adds Accoutancy Age.


                            *********

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 * * *