TCREUR_Public/120203.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

           Friday, February 3, 2012, Vol. 13, No. 25

                            Headlines



F R A N C E

PETROPLUS HOLDINGS: France to Offer Financial Aid to Buyer


G E R M A N Y

MANROLAND AG: In Advanced Talks to Sell Offenbach Site to Langley
METEOR GUMMIWERKE: Ruia Group Drops Takeover Plan
SUEDZUCKER AG: Moody's Lifts Jr. Subordinated Bond Rating to Ba1
* Hahn Air Demands Passenger Protection Against Airline Collapse


H U N G A R Y

MALEV ZRT: Court Appoints Bankruptcy Trustee


I R E L A N D

BURLINGTON HOTEL: Lloyds Bank Appoints Receivers
CORAL INNS: Enters Into Company Voluntary Arrangement
IRISH LIFE: Skoczylas Can't Represent in Recapitalization Suit
MICHAEL MCNAMARA: Three Hotels Placed Into Receivership
* IRELAND: Corporate Insolvencies Up 39% in January


I T A L Y

CELL THERAPEUTICS: Has US$16.6 Million Net Loss in December
CELL THERAPEUTICS: Withdraws New Drug Application for Pixuvri


L U X E M B O U R G

GRUPO FARIAS: Moody's Assigns '(P)B3' Corporate Family Rating
MINERVA LUXEMBOURG: Fitch Rates Unsecured Notes at 'B+'


S P A I N

NYESA VALORES: Files for Creditor Protection


S W I T Z E R L A N D

ORANGE SWITZERLAND: Moody's Assigns 'B1' Corporate Family Rating


U N I T E D   K I N G D O M

CARPATHIAN PLC: Completes Company Voluntary Arrangement with DDG
ENRC PLC: Moody's Lowers Corporate Family Rating to 'Ba3'
GROUNDWORK MERSEYSIDE: In Administration, Cuts 26 Jobs
HERD ESTATES: Administrators Take Over Paintings & Estate
STAGECRAFT TECHNICAL: Begbies Traynor Sells Assets to CPS

WATERSIDE HOTEL: Goes Into Administration, Seeks Buyer
WILLAND PHARMACY: Adis Kikic Acquires Firm Out of Administration
WIZCOM TECHNOLOGIES: Must Settle Arrears or Face Administration


X X X X X X X X

* Asset Management Firms Stalking European Distressed Debt
* BOOK REVIEW: Hospital Turnarounds - Lessons in Leadership


                            *********


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


PETROPLUS HOLDINGS: France to Offer Financial Aid to Buyer
----------------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that French Energy
Minister Eric Besson on Monday said the government is ready to
provide financial aid to any potential buyer of the now insolvent
Swiss-based refiner Petroplus Holdings AG's French refinery.

As reported in the Troubled Company Reporter-Europe on Jan. 25,
2012, Petroplus Holdings AG disclosed that the company and its
subsidiaries received notices of acceleration on Jan. 23 from the
lenders under its Revolving Credit Facility.  During the past
several weeks, Petroplus has been negotiating with these lenders
to reopen credit lines needed to maintain operations and meet
financial obligations.  In addition, the Company has been
seeking to arrange alternative financing and liquidity
facilities, as well as other strategic options.  The negotiations
with the lenders under the Revolving Credit Facility have not
been successful (despite the Company having reached an agreement
for crude oil supply) and they have served notices of
acceleration, commenced enforcement actions and appointed a
receiver in respect of Petroplus Marketing AG's assets in the UK.
Such acceleration constitutes an event of default under the
U$1.75 billion aggregate principal amount of outstanding senior
notes and convertible bonds of Petroplus Finance Limited.

Based in Zug, Switzerland, Petroplus Holdings AG is Europe's
largest independent oil refiner.


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


MANROLAND AG: In Advanced Talks to Sell Offenbach Site to Langley
-----------------------------------------------------------------
Sheenagh Matthews at Bloomberg News reports that Manroland AG,
the German printing press maker that filed for insolvency
protection in 2011, is in advanced negotiations to sell its
Offenbach site to Langley Holdings Plc.

According to Bloomberg, a person familiar with the talks said
that Manroland and Langley were seeking to complete negotiations
as early as yesterday, though no agreement has been signed yet.

The Offenbach site near Frankfurt is Manroland's second-largest,
with 750 employees remaining, Bloomberg notes.

The German company has already found a buyer for its web press
unit in Augsburg in Bavaria, which it agreed to sell to L.
Possehl & Co. last month, Bloomberg recounts.

Insolvency administrator Werner Schneider is still seeking a new
owner for the facility in Plauen in eastern Germany, as he sells
off the assets of the biggest maker of newspaper printing
machines, Bloomberg says.

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


METEOR GUMMIWERKE: Ruia Group Drops Takeover Plan
-------------------------------------------------
The Wall Street Journal's livemint.com reports that Chartered
accountant-turned-takeover specialist Pawan Kumar Ruia has washed
his hands of Meteor Gummiwerke KH Badje GmbH and Co. -- an
embattled German automotive component maker that he was to
acquire from a trust representing its controlling shareholders --
after he failed to inject cash for a rescue.

Livemint.com recalls that Mr. Ruia had in May last year announced
that he had concluded a deal to take over Meteor Gummiwerke for
an undisclosed price.

But, strapped for cash, the Ruia Group had to abandon almost all
the acquisitions one by one -- in France, Turkey and Germany --
of rubber sealing system makers it had announced in 2011, the
report relates.

After the Ruia Group failed to infuse cash to revive it, Meteor
Gummiwerke on January 13 filed for bankruptcy and an
administrator was appointed by a German court, livemint.com
reports.

Meteor Gummiwerke had in 2010 earned EUR222 million in revenue
from the sales of rubber sealing systems to car makers such as
Bayerische Motoren Werke AG (BMW), Daimler AG, Fiat SpA, Renault
SA, and Porsche Automobil Holding SE.

Founded in 1954, Meteor Gummiwerke has three plants in Germany,
two in the Czech Republic and one in the US. It employs at least
2,500 people.


SUEDZUCKER AG: Moody's Lifts Jr. Subordinated Bond Rating to Ba1
----------------------------------------------------------------
Moody's Investors Service has upgraded to Baa1 from Baa2 the
issuer and senior unsecured long-term ratings of Suedzucker AG
and its wholly owned and guaranteed subsidiary Suedzucker
International Finance B.V. Concurrently, Moody's has upgraded
Suedzucker's subordinated rating to Ba1 from Ba2 and affirmed the
P-2 commercial paper (domestic currency) ratings of the group and
Suedzucker International Finance B.V. In addition, Moody's has
changed the outlook on all ratings to stable from positive.

Upgrades:

Issuer: Suedzucker AG

  Issuer Rating, Upgraded to Baa1 from Baa2

Issuer: Suedzucker International Finance B.V.

  Junior Subordinated Regular Bond/Debenture, Upgraded to Ba1
  from Ba2

  Senior Unsecured Regular Bond/Debenture, Upgraded to Baa1 from
  Baa2

Outlook Actions:

  Issuer: Suedzucker AG

  Outlook, Changed To Stable From Positive

Issuer: Suedzucker International Finance B.V.

  Outlook, Changed To Stable From Positive

Ratings Rationale

"[Tues] day's rating action reflects the continued improvement in
Suedzucker's operating performance and its conservative financial
policy since fiscal year 2007/08, which have enabled the group to
strengthen its credit metrics," says Andreas Rands, a Moody's
Vice President -- Senior Analyst and lead analyst for Suedzucker.
"While we recognized these factors in our change of outlook to
positive from stable in August 2011, we now consider that the
group's credit metrics will be positioned sustainably in the Baa1
rating category for the short to medium term," adds Mr. Rands.
The action also reflects the favorable outlook for Suedzucker's
Sugar segment in the short to medium term and Moody's expectation
that the group will continue with its conservative financial
policy.

All of Suedzucker's segments experienced an improvement in
operating performance in fiscal year (FY) 2010/11 and this trend
continued in the first three quarters of FY 2011/12. Sugar,
Suedzucker's largest segment, representing 53.6% of group
revenues, has seen its operating profit increase by 64.9% to
EUR389 million for the year-to-date (YTD) third quarter 2011/12.
This is due to the absence of restructuring charges following the
end of the restructuring phase in the EU sugar market and a
favorable pricing environment. This positive operating
performance has enabled Suedzucker's key credit metrics to
improve since FY 2010/11 to be more in-line with the Baa1 rating
category.

Moody's had previously indicated in its guidance that upward
rating pressure to Baa1 would require a strengthening of credit
metrics, including debt/EBITDA comfortably below 3.0x and RCF/net
debt above 25%, to be maintained on a sustainable basis (metrics
as adjusted by Moody's), on the back of supportive industry
conditions. YTD third quarter 2011/12 results confirmed the
positive trend in Suedzucker's financial performance, with the
group forecasting around EUR750 million of operating profit for
FY 2011/12, up from EUR519 million in FY 2010/11. In FY 2012/13,
the group will benefit from the full 12 month impact of
relatively high sugar prices. In particular, Moody's estimates
that adjusted leverage as of last-twelve-months to November 2011
was below 2.5x and RCF/Net Debt comfortably above 30%, vs. 2.5x
and c.30% respectively as of FY 2010/11. In Moody's view, on the
back of the company's performance in the last-twelve-months to
November 2011, and the expectation for FY 2011/12 and beyond, the
company will be able to sustain credit metrics previously
anticipated for the Baa1 category.

The Baa1 rating reflects Suedzucker's scale and leading position
in the production of beet sugar in Europe, as well the
diversification of its business, given its Special Products,
CropEnergies and Fruit segments. In addition, the rating
incorporates the group's healthy liquidity profile as of third
quarter 2011/12, with EUR562.2 million of cash and cash
equivalents (EUR1 billion including short-term securities; EUR1.1
billion including long-term securities that Moody's does not
consider as a cash equivalent) and full availability under its
EUR600 million five-year syndicated revolving credit facility.

However, the rating remains constrained by Suedzucker's exposure
to commodity price fluctuations, particularly in its Specialty
Products, CropEnergies and Fruit segments. For FY 2011/12, the
group expects to see a decline in the operating profit generated
in the Fruit segment as the challenging economic environment, as
well as rising raw material costs, weighs on results.

The stable outlook reflects Moody's view that Suedzucker's
expected deleveraging and improved cash generation will leave it
well positioned for the Baa1 rating going forward, and that
metrics may improve further on the back of supportive industry
conditions. The current rating and outlook assume the maintenance
of conservative financial policies and the absence of any
material debt-financed acquisitions.

What Could Change the Rating Up/Down

The ratings or outlook could be positively affected if an
improvement in Suedzucker's operating performance were to cause
leverage to decrease sustainably below 2.25x and RCF/net debt to
increase sustainably above 35%, coupled with better visibility on
financial policies going forward and clarity on the regulatory
environment in the context of the potential reform of EU Sugar
market regulations, given that key sections expire as of 30
September 2015. Conversely, negative pressure on the rating or
outlook could arise if the group's profitability were to weaken,
or financial policies relax, resulting in leverage rising
significantly above 3.0x and RCF/net debt remaining below 25%.

Principal Methodology

The principal methodology used in rating Suedzucker AG was the
Global Food -- Protein and Agriculture Industry Methodology,
published September 2009.

Based in Mannheim, Germany, Suedzucker AG is Europe's largest
sugar producer. It additionally operates in the Special Products,
CropEnergies and Fruit segments and posted EUR6.2 billion in
revenues for the year ended February 2011.


* Hahn Air Demands Passenger Protection Against Airline Collapse
----------------------------------------------------------------
Hahn Air is demanding the introduction of a protection mechanism
for passengers against airline insolvency.  In future, only
airlines with comprehensive insurance coverage should be allowed
to sell through travel agencies in Europe.

Recent events once again show the alarming practice which has
uncontrollably established itself within the airline industry:
paying for flight tickets, sometimes up to a year before delivery
of the goods (flight), without any protection for the payment
made.

Currently, there are no mandatory security precautions in place
to protect customers, even though reliable protection mechanisms
could be implemented without any major efforts, at least for
ticket sales through IATA-licensed travel agencies.

The industry itself has not yet made any serious efforts to allow
only solvent, adequately insured airlines to participate in their
global distribution systems.  The airline industry is now being
called upon to take action and devise appropriate solutions.

"It is unacceptable that travel agencies have to provide surety,
sometimes as high as seven-figure sums, to airlines (or their
umbrella organization IATA), but are not offered any protection
in return for themselves or their customers against the
consequences of the bankruptcy of their business partners," says
Katharina Becker, Director Legal Department Hahn Air.
"Furthermore, travel agencies have to face unnecessary risks due
to the outdated programming of global distribution systems that
dictate the selection of a contractual ticketing carrier."

Hahn Air is demanding that in future only, airlines that
guarantee free comprehensive insurance coverage against the
consequences of their possible insolvency should be allowed to
sell through travel agencies in Europe.

The online booking market (i.e. where consumers book on the
Internet without involving a travel agency) is impossible to
regulate in practice.  Such bookings often entail considerable
risks for consumers.  Generally, they have no knowledge of the
financial stability of an airline to which they entrust their
money, sometimes months in advance.

Therefore, consumers can either take the risk of booking directly
on the Internet or in future obtain extensive protection by
having their tickets issued through a travel agency.

Hahn Air -- http://www.hahnair.com-- is an airline distribution
specialist.  It operates a universal ticketing platform with more
than 250 partner airlines.  Hahn Air tickets are 100% insured
against insolvency and available in all GDS.  The company
cooperates with 88,000 travel agencies in 190 markets.


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


MALEV ZRT: Court Appoints Bankruptcy Trustee
--------------------------------------------
Edith Balazs at Bloomberg News reports that Malev Zrt., weighed
down by debts of HUF60 billion (US$270 million), no longer has
control over its own spending plans after a court appointed a
bankruptcy trustee to oversee the company.

According to Bloomberg, Hungary's Development Ministry said that
outgoing payments must be approved by the state-owned, non-profit
liquidator.  The court also granted a moratorium stopping
business partners from suspending Malev's contracts and extending
its aviation permits, Bloomberg relates.

"The bankruptcy trustee will only approve payments that are
needed for the continued and orderly operation of the airline,"
Bloomberg quotes the ministry as saying in a statement, adding
that the moratorium provides "a security similar to bankruptcy
protection."

China's HNA Group, parent of Hainan Airlines Co., held talks with
Malev in 2011 and is "willing to restart negotiations on a
possible bid," the ministry, as cited by Bloomberg, said on
Thursday in an e-mailed response to questions, adding that there
are no communications at present.

HNA, which also controls Hong Kong Airlines and has shipping,
tourism and retail assets, said a deal would depend on Malev and
Hungary accepting terms of an offer, as well as approval from
China, Bloomberg notes.

As reported by the Troubled Company Reporter-Europe on Feb. 2,
2012, Bloomberg News said Malev has until the end of the week to
submit a survival plan that could include a Chinese takeover, or
face being grounded.  Chairman Janos Berenyi said Malev aims to
sustain liquidity and continue flying through an orderly
bankruptcy that would allow it to be restructured or a successor
established, Bloomberg related.  Mr. Berenyi, who reckons there
are potential buyers for the carrier and that a bid from Hainan
Airlines Co. is "not impossible", said that if the plan is
rejected by its state owner, the company could fold, according to
Bloomberg.  Malev is already effectively operating in bankruptcy
protection, having been declared a "strategically important
company" on Jan. 30, a status that shields it from creditors,
Bloomberg noted.

Malev Zrt. is the flag carrier and principal airline of Hungary.


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I R E L A N D
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BURLINGTON HOTEL: Lloyds Bank Appoints Receivers
------------------------------------------------
Independent.ie reports that Dublin's Burlington Hotel and Ormonde
Quay Hotel as well as Cork International and Kerry's Parknasilla
have been put into receivership by Lloyds Banking Group.

It is understood the bank is owed more than EUR200 million by
developer Bernard McNamara whose company used to control the
hotels, Independent.ie notes.

Receiver Paul McCann of Grant Thornton was appointed receiver on
Wednesday afternoon, Independent.ie relaes.

The Burlington Hotel and Cork International currently employ 180
staff between them.

Parknasilla Hotel is closed temporarily during the tourist off-
season but Mr. McCann said the hotel would open for business in
March, according to Independent.ie.

The receiver has no "immediate plans" to seek buyers for any of
the hotels and plans to trade them as going concerns for the
foreseeable future, Independent.ie says.


CORAL INNS: Enters Into Company Voluntary Arrangement
-----------------------------------------------------
Belfast Telegraph reports that Coral Inns, which runs Rain on
Tomb Street and faced two winding-up petitions from creditors
last year, is now subject to a company voluntary agreement which
will give the firm some "breathing space" in order to deal with
its cash woes.

According to Belfast Telegraph, the arrangement will see
creditors write off some of what they are owed as long as they
repay agreed amounts, under the supervision of an insolvency
practitioner.

The nightclub is continuing to operate as normal, Belfast
Telegraph notes.


IRISH LIFE: Skoczylas Can't Represent in Recapitalization Suit
-------------------------------------------------------------
Tim Healy Irish Independent reports that High Court Judge Kevin
Feeney ruled on Thursday that Piotr Skoczylas, whose company
bought EUR200,000 worth of Irish Life & Permanent (IL&P) shares
in 2010 is not legally entitled to represent the firm in a court
challenge to the Government's EUR2.7 billion recapitalization of
the bank.

Mr. Skoczylas, the controlling shareholder of Maltese-registered
Scotchstone Capital Funds Ltd, indicated on Wednesday that he may
appeal the ruling to the Supreme Court, Irish Independent notes.

Scotchstone, Mr. Skocyzlas, two IL&P shareholders Gerard Dowling
and Padraig McManus and, in separate proceedings, an investment
fund, Horizon Growth NV, are all challenging the recapitalization
on grounds including that it unlawfully imposes an unacceptable
EUR2.7 billion burden on taxpayers, Irish Independent discloses.

On Wednesday, the judge rejected Mr. Skoczylas's application to
be permitted to represent Scotchstone in the case, Irish
Independent relates.

                           Credit Event

As reported by the Troubled Company Reporter-Europe on Aug. 31,
2011, Reuters disclosed that the International Swaps and
Derivatives Association said a restructuring credit event
occurred at Irish Life & Permanent Group on Aug. 24.
The bancassurer, effectively nationalized in July following a
EUR2.7 billion (US$3.9 billion) state capital injection,
announced the results of a tender offer regarding some of its
junior debt on Aug. 24, Reuters related.

Headquartered in Dublin, Irish Life & Permanent plc --
http://www.irishlifepermanent.ie/-- is a provider of personal
financial services to the Irish market.  Its business segments
include banking, which provides retail banking services;
insurance and investment, which includes individual and group
life assurance and investment contracts, pensions and annuity
business written in Irish Life Assurance plc and Irish Life
International, and the investment management business written in
Irish Life Investment Managers Limited; general insurance, which
includes property and casualty insurance carried out through its
associate, Allianz-Irish Life Holdings plc, and other, which
includes a number of small business units


MICHAEL MCNAMARA: Three Hotels Placed Into Receivership
-------------------------------------------------------
RTE News reports that the Burlington Hotel, Cork International
Hotel, and Parknasilla Hotel have been placed in receivership
over debts owed by developer Bernard McNamara's company.

Mr. McNamara's company owes more than EUR200 million to Lloyds
Banking Group, according to RTE News.

Receiver Paul McCann of Grant Thornton was appointed as receiver
of the three properties this afternoon.

The report notes that Mr. McCann said all three hotels will
continue to trade as normal.

RTE News discloses that the Burlington Hotel and Cork
International currently employ 180 staff between them.

Parknasilla Hotel in Kerry is closed temporarily during the
tourist off season but the hotel will re-open for business in
March, the report relays.

Mr. said that the receiver has "no immediate plans" to seek
buyers for any of the hotels and plans to trade them as going
concerns for the foreseeable future, the report adds.

The receiver can be reached at:

         Paul McCann
         GRANT THORTON
         24-26 City Quay
         Dublin 2, Ireland
         Tel: +353 (0)1 6805 805
         E-mail: paul.mccann@ie.gt.com

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


* IRELAND: Corporate Insolvencies Up 39% in January
---------------------------------------------------
According to The Irish Times' Ciara O'Brien, new data showed on
Wednesday that four companies in Ireland each day went out of
business in January.

The report from InsolvencyJournal.ie showed a total of 135 Irish
companies went bust last month, a rise of 39% compared with 2011,
the Irish Times relates.

The majority of the failed companies were in the services sector,
accounting for 32% of the overall total, while the construction
industry accounted for 26%, the Irish Times discloses.

The retail industry, hit by falling consumer demand amid the
current economic fragility, saw the number of insolvencies rise
by 66% in the month, the Irish Times notes.

Receiverships were up by a third, and examinerships accounted by
5% of all insolvencies, the Irish Times states.

"The overall increase in total when compared to the same period
last year is not surprising given the continued weak consumer
sentiment as a result of the harsh budgetary measures introduced
in the latter half of last year," the Irish Times quotes Ken
Fennell, partner with Kavanaghfennell, which compiles the data,
as saying.


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I T A L Y
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CELL THERAPEUTICS: Has US$16.6 Million Net Loss in December
---------------------------------------------------------
Cell Therapeutics, Inc., provided information pursuant to a
request from the Italian securities regulatory authority, CONSOB,
pursuant to Article 114, Section 5 of the Unified Financial Act,
that the Company issue at the end of each month a press release
providing a monthly update of certain information relating to the
Company's management and financial situation.

The Company reported a net loss attributable to common
shareholders of US$16.67 million on US$0 of net revenue for the
month ended Dec. 31, 2011, compared with a net loss attributable
to common shareholders of US$5.21 million on US$0 of net revenue
for during the prior month.

A full-text copy of the press release is available at:

                        http://is.gd/tuoNag

                      About Cell Therapeutics

Headquartered in Seattle, Washington, Cell Therapeutics, Inc.
(NASDAQ and MTA: CTIC) -- http://www.CellTherapeutics.com/-- is
a biopharmaceutical company committed to developing an integrated
portfolio of oncology products aimed at making cancer more
treatable.

The Company reported a net loss of US$82.64 million on US$319,000
of revenue for the 12 months ended Dec. 31, 2010, compared with a
net loss of US$82.64 million on US$80,000 of total revenue during
the same period in 2009.

The Company also reported a net loss attributable to CTI of
US$53.39 million on US$0 of revenue for the nine months ended
Sept. 30, 2011, compared with a net loss attributable to CTI of
US$62.92 million on US$319,000 of total revenues for the same
period during the prior year.

The Company's balance sheet at Sept. 30, 2011, showed
US$62.85 million in total assets, US$33.89 million in total
liabilities, US$13.46 million in common stock purchase warrants,
and US$15.49 million total shareholders' equity.

Marcum LLP, in San Francisco, Calif., expressed substantial doubt
about the Company's ability to continue as a going concern in its
audit reports for the financial statements for 2009 and 2010.
The independent auditors noted that the Company has incurred
losses since its inception, and has a working capital deficiency
of approximately US$14.2 million at Dec. 31, 2010.

                        Bankruptcy Warning

The Company has incurred losses since inception and expect to
generate losses for the next few years primarily due to research
and development costs for Pixuvri, OPAXIO, tosedostat,
brostallicin and bisplatinates.

If the Company receives approval of Pixuvri by the European
Medicines Agency or the Food and Drug Administration, the Company
would anticipate additional commercial expenses associated with
Pixuvri operations.  Accordingly, the Company will need to raise
additional funds and is currently exploring alternative sources
of equity or debt financing.  The Company may seek to raise such
capital through public or private equity financings,
partnerships, joint ventures, disposition of assets, debt
financings or restructurings, bank borrowings or other sources of
financing.  However, additional funding may not be available on
favorable terms or at all.  If additional funds are raised by
issuing equity securities, substantial dilution to existing
shareholders may result.  If the Company fails to obtain
additional capital when needed, the Company may be required to
delay, scale back, or eliminate some or all of its research and
development programs and may be forced to cease operations,
liquidate its assets and possibly seek bankruptcy protection.


CELL THERAPEUTICS: Withdraws New Drug Application for Pixuvri
-------------------------------------------------------------
Cell Therapeutics, Inc., has voluntarily withdrawn its New Drug
Application for Pixuvri (pixantrone) for the treatment of
relapsed or refractory aggressive non-Hodgkin's lymphoma in
patients who failed two or more lines of prior therapy.  The NDA
was withdrawn because, after communications with the U.S. Food
and Drug Administration, CTI needed additional time to prepare
for the review of the Pixuvri NDA by the FDA's Oncologic Drugs
Advisory Committee at its Feb. 9, 2012, meeting.  Prior to
withdrawing the NDA, CTI requested that the FDA consider
rescheduling the review of the Pixuvri NDA to the ODAC meeting to
be held in late March. The FDA was unable to accommodate CTI's
request to reschedule, and given the April 24, 2012, Prescription
Drug User Fee Act date, the only way to have Pixuvri possibly
considered at a later ODAC meeting was for CTI to withdraw and
later resubmit the NDA. CTI
plans to resubmit the NDA in 2012.

                      About Cell Therapeutics

Headquartered in Seattle, Washington, Cell Therapeutics, Inc.
(NASDAQ and MTA: CTIC) -- http://www.CellTherapeutics.com/-- is
a biopharmaceutical company committed to developing an integrated
portfolio of oncology products aimed at making cancer more
treatable.

The Company reported a net loss of US$82.64 million on US$319,000
of revenue for the 12 months ended Dec. 31, 2010, compared with a
net loss of US$82.64 million on US$80,000 of total revenue during
the same period in 2009.

The Company also reported a net loss attributable to CTI of
US$53.39 million on US$0 of revenue for the nine months ended
Sept. 30, 2011, compared with a net loss attributable to CTI of
US$62.92 million on $319,000 of total revenues for the same
period during the prior year.

The Company's balance sheet at Sept. 30, 2011, showed
US$62.85 million in total assets, US$33.89 million in total
liabilities, US$13.46 million in common stock purchase warrants,
and US$15.49 million total shareholders' equity.

Marcum LLP, in San Francisco, Calif., expressed substantial doubt
about the Company's ability to continue as a going concern in its
audit reports for the financial statements for 2009 and 2010.
The independent auditors noted that the Company has incurred
losses since its inception, and has a working capital deficiency
of approximately US$14.2 million at Dec. 31, 2010.

                        Bankruptcy Warning

The Company has incurred losses since inception and expect to
generate losses for the next few years primarily due to research
and development costs for Pixuvri, OPAXIO, tosedostat,
brostallicin and bisplatinates.

If the Company receives approval of Pixuvri by the European
Medicines Agency or the Food and Drug Administration, the Company
would anticipate additional commercial expenses associated with
Pixuvri operations.  Accordingly, the Company will need to raise
additional funds and is currently exploring alternative sources
of equity or debt financing.  The Company may seek to raise such
capital through public or private equity financings,
partnerships, joint ventures, disposition of assets, debt
financings or restructurings, bank borrowings or other sources of
financing.  However, additional funding may not be available on
favorable terms or at all.  If additional funds are raised by
issuing equity securities, substantial dilution to existing
shareholders may result.  If the Company fails to obtain
additional capital when needed, the Company may be required to
delay, scale back, or eliminate some or all of its research and
development programs and may be forced to cease operations,
liquidate its assets and possibly seek bankruptcy protection.


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


GRUPO FARIAS: Moody's Assigns '(P)B3' Corporate Family Rating
-------------------------------------------------------------
Moody's Investors Service has assigned provisional first-time
(P)B3 corporate family rating to Administradora Baia Formosa S.A.
(Grupo Farias) and a (P)B3 rating to its proposed US$300 million
seven-year, non-callable for four years, senior unsecured notes,
to be issued by its Luxembourg-based offshore subsidiary,
Farias Finance International Limited, with an unconditional
guarantee from Administradora Baia Formosa S.A. and its
operational subsidiaries Vale Verde

Empreendimentos Agricolas Ltda., Anicuns S.A. -- Alcool e
Derivados and Usina Sao Jose S.A. A‡ucar e Alcool. The outlook
for both ratings is stable. The provisional ratings are assigned
pending the successful placement of the proposed notes.

Rating Rationale

"The ratings reflect the company's small scale and uneven
historical performance in a volatile commodity sugar/ethanol
business. However, the ratings consider the good medium term
prospects for the sugar/ethanol industry, as low global
inventories, combined with still tight supply-demand dynamics,
should continue to translate into relatively high prices," says
Moody's local market analyst Marianna Waltz. It also takes into
account Grupo Farias' presence in four regions of Brazil, which
helps mitigate risks associated with sourcing raw materials, as
well as the company's relatively diversified customer base, with
a lower reliance in commodity trading houses as compared to
peers.

"The rating also assumes that Grupo Farias will make necessary
investments in the renewal and expansion of harvest area, and
hence achieve better utilization of installed capacity with the
aim to improve the dilution of fixed costs and expenses," Waltz
says. She adds that the company plans to increase production
from the current 6.9 million tons to almost 16 million tons of
sugarcane per annum over the next four years.

The assigned ratings reflect Grupo Farias' history of weak
financial performance including its fiscal 2010 results when
sugar and ethanol prices were increasing.

Additionally, its weak liquidity, lack of written financial
policies and its nascent corporate governance constrain the
rating. Furthermore, even recognizing the overall good prospects
for the sector, Moody's ratings consider the inherent risks
associated with a pure commodity business, which could result in
significant volatility in operating performance and hamper its
liquidity.

Grupo Farias' relatively small size as compared to some larger
domestic and international players also acts as a rating
constraint, though this is partially mitigated by the fact that
the industry in Brazil remains very fragmented. The largest
player, Cosan (Ba2 RUR), has a market share of only 10% of the
Brazilian total crushing. With an installed capacity of 10.6
million tons of sugarcane, Grupo Farias has approximately 2% of
the local market.

Like most of the larger companies in the sector, Grupo Farias has
a 70%-30% flexibility to change its mix to produce either sugar
or ethanol, depending on market conditions, which is a credit
positive. This flexibility allows the company to enhance its
performance without consuming too many resources to bear the
opportunity costs of unused capacity.

The stable rating outlook reflects Moody's view that Grupo Farias
will be able to benefit from favorable conditions for the sugar-
ethanol industry and maintain operating margins at or close to
current levels, while prudently managing leverage and CAPEX. The
company's liquidity has historically been weak, however, with a
modest cash position of BRL 13.7 million as of March 2011 being
sufficient to cover only 8.5% of short-term debt. The rating
therefore assumes that the company will use part of the issuance
proceeds, as well as of future free cash flow generation, to
improve its cash cushion to about BRL100 million.

The rating could come under downward pressure if the company's
liquidity deteriorates or if market conditions cause operating
margins to decline sharply, or if total adjusted debt to EBITDA
rises above 4.5x and EBITA to interest expense falls below 1.0x.

Grupo Farias' ratings could be positively affected by an
improvement in the company's liquidity levels, with a
consistently higher minimum cash cushion. The company would also
need to maintain operating margins above 15%, debt to EBITDA
below 4.0x and a RCF to net debt above 20% on a sustained basis.

The principal methodology used in this rating was "Global Food -
Protein and Agriculture Industry," published in September 2009.

Company Profile

Administradora Baia Formosa S.A. (Grupo Farias) is a privately
held, family-controlled Brazilian sugar-ethanol producer. Founded
in 1965 and headquartered in the city of Sao Paulo, the company
reported net revenues of BRL620 million (US$345 million) in the
fiscal year ended in March 2011.

With a crushing capacity of 10.6 million tons of sugarcane and
89,000 hectares of harvested area, the group owns approximately
74% of its sugarcane needs, with a mix of 16% of proprietary and
84% of leased land, with the balance purchased from independent
farmers situated near its industrial plants. Operating mills are
located in the states of Goias, which provides 60% of total
installed capacity, Sao Paulo, Pernambuco, Rio Grande do Norte
and Acre. Combined, the plants produced 320.5 tons of sugar and
301 million liters of ethanol as of March 2011, representing 48%
and 43% of total sales, respectively. Exports are mainly of VHP
raw sugar and made through Sao Paulo and the Northeast, and
accounted for 13% of revenues over the same period. The total
output from Goias is directed to the Brazilian domestic market.


MINERVA LUXEMBOURG: Fitch Rates Unsecured Notes at 'B+'
-------------------------------------------------------
Fitch Ratings has assigned a 'B+/RR4' rating to the proposed
US$250 million to US$300 million unsecured guaranteed notes due
in 10 years to be issued by Minerva Luxembourg S.A. (Minerva
Luxembourg), a wholly owned subsidiary of Minerva S.A. (Minerva)
and incorporated in Luxembourg.  The notes are unconditionally
and irrevocably guaranteed by Minerva and the proceeds will be
used to repay existing debt.

Fitch has also assigned local and foreign currency Issuer Default
Ratings (IDRs) of 'B+' to Minerva Luxembourg, with a Stable
Outlook.  The ratings of Minerva Luxembourg are supported by
Minerva's ratings through the methodology outlined by Fitch in
its 'Parent and Subsidiary Rating Linkage' criteria report.

In addition, Fitch has withdrawn the local and foreign currency
'B+' IDRs of Minerva Overseas Ltd and Minerva Overseas II Ltd
(collectively, Overseas), as all of the outstanding issuances of
Overseas have been transferred to Minerva Luxembourg.  The
withdrawal and transfer of these ratings is the result of
transfer of the assets, rights, obligations and responsibilities
of the notes issued by Minerva Overseas Ltd and Minerva Overseas
II Ltd, respectively due on 2017 and 2019, to Minerva Luxembourg,
which occurred during December 2011.  The ratings of the
outstanding Overseas' issuances are unaffected by the transfer to
Minerva Luxembourg.

Minerva's ratings are supported by the company's strong business
position as the second largest Brazilian exporter of fresh and
frozen beef.  It has a low-cost structure and diversified and
flexible export revenue base.  The successful execution of its
strategic plan, including an equity issuance during the
challenging operating environment of the last two years, further
supports Minerva's ratings.

The ratings incorporate risks associated with product
concentration in beef protein, the potential for disease
outbreaks, and the negative effect of foreign exchange
fluctuations.  Minerva is still more exposed to these risks than
the top competitors even though exports now represent 58% of its
revenue, down from 66% in 2010.

As of September 2011, Minerva's net leverage was high at 4.5
times (x).  The company's credit profile should continue to
improve from gains in market share, the growth of cash flow from
significant high-margin greenfield investments made over the past
few years, as well as an improving cattle cycle in Brazil.

Fitch expects further improvement in leverage stemming from
continued positive trends in revenue and margins, and possible
further additions to Minerva's production base.  Fitch notes that
a temporary increase in leverage due to asset purchases or
acquisitions is possible in the upcoming years, as the company
strives to sustain growth. Fitch observes, however, that Minerva
has maintained a relatively disciplined approach to investing in
fairly priced long-term assets.

Minerva's liquidity relies primarily on cash on hand of BRL712
million at the end of the third quarter of 2011. This compares
with BRL503 million of short-term debt.  Liquidity was further
enhanced by convertible debentures.  Fitch expects Minerva to
continue improving its liquidity and debt maturity schedule over
the next 12 months.  The current note issuance should benefit the
company's debt profile as the proceeds are for repayment of
existing shorter term debts.

The operations of the company have been a significant drain on
cash primarily due to high capital expenditures.  Free cash flow
(FCF), consisting of cash from operations minus capital
expenditures, was negative BRL219 million during the latest 12
months (LTM) ended Sept. 30, 2011, mainly due to large capital
expenses of BRL216 million.  Fitch expects that lower capex and
working capital requirements going forward will allow Minerva to
start generating positive FCF in 2012.

A negative rating action could occur if Fitch's expectations of
positive cash flow generation fail to materialize; if net
leverage increases to more than 4.0x on a consistent basis as a
result of a large debt-financed acquisition or asset purchase; or
as a result of operational deterioration.  A positive rating
action could be triggered by a significant leverage decrease from
current levels and is unlikely to be achieved solely by improving
operations in the short-to medium-term.

Fitch rates Minerva as follows:

Minerva S.A.

  -- Local currency Issuer Default Rating (IDR) 'B+';
  -- Foreign currency IDR 'B+';
  -- National scale rating 'BBB(bra)';
  -- BRL200 million outstanding debentures due 2015 'BBB(bra)';
  -- Senior unsecured notes issued by Minerva's entities 'B+/RR4'

The Rating Outlook is Stable.


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


NYESA VALORES: Files for Creditor Protection
--------------------------------------------
Emma Ross-Thomas at Bloomberg News reports that Nyesa Valores
Corp SA sought protection from creditors in court.

The company is in "advanced" negotiations on a refinancing deal
with its main creditors, which if successful "could mean the
lifting of the state of insolvency that prompted the request for
protection from creditors," Bloomberg quotes the company as
saying in a regulatory filing on Wednesday.

Nyesa Valores Corp SA is a Spanish real-estate developer.


=====================
S W I T Z E R L A N D
=====================


ORANGE SWITZERLAND: Moody's Assigns 'B1' Corporate Family Rating
----------------------------------------------------------------
Moody's Investors Service has assigned a first-time B1 corporate
family rating (CFR) and probability of default rating (PDR) to
Matterhorn Mobile Holdings S.A., the ultimate parent of Orange
Communications S.A. Concurrently, Moody's has assigned
provisional ratings and loss-given-default (LGD) assessments to
the following debt instruments of different group entities:

-- CHF225 million (equivalent) of senior notes due 2020, issued
    by Matterhorn Mobile Holdings S.A.: (P)B3/LGD6

-- CHF325 million of senior secured bonds due 2019, issued by
    Matterhorn Mobile S.A.: (P)Ba3/LGD3

-- CHF225 million senior secured term loan A at Matterhorn
    Mobile S.A.: (P)Ba3/LGD3

-- CHF275 million senior secured term loan B1 at Matterhorn
    Mobile S.A.: (P)Ba3/LGD3

-- CHF125 million (equivalent) senior secured term loan B2 at
    Matterhorn Mobile S.A.: (P)Ba3/LGD3

The outlook for all the ratings is stable.

This is the first time that Moody's has assigned ratings to OCH.
Moody's issues provisional ratings in advance of the final sale
of securities and these ratings reflect the rating agency's
preliminary credit opinion regarding the transaction only. Upon a
conclusive review of the final documentation, Moody's will
endeavor to assign a definitive rating to the group's proposed
senior facilities, senior secured notes and senior notes. The
definitive ratings may differ from the provisional rating.

Ratings Rationale

"OCH's B1 rating reflects both a relatively weak business risk
profile and a relatively stronger financial profile compared with
similarly rated peers such as Sunrise, Polkomtel or Wind
Telecomunicazioni," says Ivan Palacios, a Moody's Vice President
-- Senior Analyst and lead analyst for OCH. "Specifically, the
rating reflects OCH's leveraged capital structure following its
acquisition by Matterhorn Mobile S.A., a company indirectly owned
by funds advised by Apax Partners LLP, with pro forma adjusted
debt/EBITDA of around 4.0x by year-end 2012," explains Mr.
Palacios. "OCH's high business risk reflects its small size, lack
of fixed-line business, weak technological positioning and the
strategic challenges ahead linked to the company's separation
from its previous owner, the France Telecom group."

OCH's rating factors in the company's position as the #3 mobile
operator in Switzerland. The company enjoys a leading position in
the value segment, and benefits from the highest average revenues
per user (ARPUs) in Switzerland, although it plans to be more
aggressive in the volume segment, a strategy that entails some
risks from Moody's perspective, as it could lead to a reaction
from competitors.

OCH also enjoys the favorable dynamics of the Swiss mobile
telecom market, where the competitive, regulatory and
macroeconomic environments are more stable than in other Western
European markets. All three competitors (Swisscom, Sunrise and
OCH) are well established, and there are sufficient barriers to
entry to prevent the emergence of a new major player. However,
the Swiss market is very mature, with 124% mobile penetration,
which limits OCH's growth potential.

In Moody's view, OCH has a weaker business risk profile than its
Swiss peers. OCH is smaller and lacks a fixed-line business,
which translates into a weaker positioning vis-…-vis integrated
operators, and precludes the company from achieving significant
market share gains. In addition, the lack of a fixed-line
business makes OCH more sensitive to changes in mobile
termination rates (MTRs). Moreover, OCH has a weak technological
positioning compared with Swisscom or Sunrise due to historical
spectrum allocation disadvantage. It has weaker coverage and
slower mobile data access than its competitors, partly because it
does not have EDGE (Enhanced Data Rates for GSM Evolution)
capabilities.

The company's historical operating performance has been
relatively sluggish, with slightly declining revenue and EBITDA
for the past few years. However, Moody's notes that OCH's
performance appears to have bottomed out in the past couple of
quarters.

Given the leveraged buyout nature of the acquisition, OCH will
have a high debt burden post-transaction, involving large cash
interest payments and debt repayments weighing on the company's
cash flows. Moody's expects that OCH's adjusted debt/EBITDA will
be around 4.0x by YE 2012. Because of the covenant step-downs
established in the acquisition facilities, Moody's expects that
OCH will focus on deleveraging the balance sheet such that the
company's adjusted debt/EBITDA trends towards 3.5x over the
medium term.

Moody's notes that one of the challenges for OCH going forward
will be to manage its operational separation from France Telecom.
Post spin-off from France Telecom, OCH will no longer benefit
from some of the procurement synergies that being part of a
larger multinational group provides. In addition, OCH will most
likely be rebranded, which will have some impact on customers'
brand perception and the company's market positioning. Moody's
believes that there is a high degree of execution risk in the
rebranding exercise, as there are not many precedents of telecom
companies successfully transitioning from a strong brand to an
unknown brand.

OCH's liquidity profile post-transaction will be adequate. In
Moody's view, the company will be able to meet its capital
expenditure payments, annual debt repayments and other cash needs
over the next 12 months owing to (i) a cash balance of CHF64
million (EUR52 million); (ii) availability under a CHF100 million
(EUR81 million) revolving credit facility; and (iii) expected
cash flow generation. Moody's notes, however, that longer term,
OCH's liquidity profile may become under pressure if the
company's deleveraging profile is slower than currently
anticipated by the rating agency, causing a reduction in headroom
under financial covenants.

The (P)Ba3 rating on the senior secured bank facilities and the
senior secured bond, which is one notch above the CFR, reflects
the impact of the presence of junior debt in OCH's capital
structure. The (P)B3 rating on the senior notes is a result of
OCH's high leverage and their contractually and structurally
subordinated position relative to the company's senior secured
bank facilities and senior secured bonds.

The stable outlook factors in that OCH's credit metrics will
initially be weakly positioned for the rating category, with the
company's adjusted debt/EBITDA at around 4.0x. However, it also
reflects Moody's expectation that the company will deleverage to
below 4.0x in 2013, while its retained cash flow (RCF)/adjusted
debt ratio will remain between 15% and 20%.

What Could Change The Rating Up/Down

Upward pressure on the rating could develop if OCH's management
team delivers on its business plan, such that the company's (i)
adjusted debt/EBITDA ratio decreases to 3.5x or below; and (ii)
RCF/adjusted debt ratio increases to 20% or above.

Conversely, downward pressure could be exerted on the rating if
OCH's operating performance weakens such that the company does
not deleverage from current levels. Ratios that could be
indicative of downward pressure on the rating are adjusted
debt/EBITDA above 4.0x and RCF/adjusted debt below 15% on a
sustained basis. Any emerging concerns over liquidity (including,
but not limited to, reducing covenant headroom) could also put
downward pressure on the rating.

Principal Methodology

The principal methodology used in rating OCH was the Global
Telecommunications Industry Methodology published in December
2010. Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.

Orange Communications S.A. is the #3 mobile network operator in
Switzerland in terms of revenues (a mobile revenue market share
of around 19% as of September 2011) and subscribers (with
approximately 1.6 million customers). For the last 12 months
ended September 2011, the company reported revenues of CHF1.243
billion (EUR1,007 million) and EBITDA of CHF312 million (EUR253
million).


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


CARPATHIAN PLC: Completes Company Voluntary Arrangement with DDG
----------------------------------------------------------------
Carpathian PLC disclosed that its Company Voluntary Arrangement
with Dawnay, Day Group has been completed and cash payments by
Carpathian of GBP4.1 million have been made in respect of
payments to the creditors and the purchase of 60% of the share
capital of Perriniana Limited.

As announced on December 1, 2011, the settlement arrangements
with DDG were conditional upon a successful CVA being executed
and the share capital of Perriniana Limited being acquired.

In addition, of the 1,983,671 ordinary shares retained as part of
the DDG Settlement, 1,190,203 ordinary shares were transferred to
the Company by its nominee and have been cancelled for a nominal
sum.  The balance of ordinary shares and associated dividends
will be transferred to UK Real Estate Management Limited, as
referenced in the announcement on December 1, 2011.

Accordingly, the Company's total issued share capital has been
reduced to 230,957,972 ordinary shares of 0.01 euro cents per
share.

It is expected that the liquidation of Perriniana Limited will be
concluded in February 2012, at which time the share purchase
consideration will be released to the relevant sellers.

Carpathian PLC was created in 2005 for the purpose of investing
in Central and Eastern European retail properties, primarily
shopping centres, supermarkets and retail warehousing.  The
company's target countries within the region include: Poland,
Czech Republic, Romania, Hungary, Slovakia, the Baltics, the
Balkans and Bulgaria.


ENRC PLC: Moody's Lowers Corporate Family Rating to 'Ba3'
---------------------------------------------------------
Moody's Investors Service has downgraded ENRC PLC's corporate
family rating (CFR) to Ba3 from Ba2. Concurrently, Moody's has
downgraded the provisional rating on ENRC's US$3 billion euro
medium-term note (EMTN) program to (P)Ba3/LGD4. In addition,
Moody's has changed to negative from stable the outlook on the
ratings.

Downgrades:

   Issuer: Eurasian Natural Resources Corporation Plc

   -- Probability of Default Rating, Downgraded to Ba3 from Ba2

   -- Corporate Family Rating, Downgraded to Ba3 from Ba2

   -- Senior Unsecured Medium-Term Note Program, Downgraded to
      (P)Ba3; LGD4 - 57 from (P)Ba2; LGD4 - 50

Outlook Actions:

   Issuer: Eurasian Natural Resources Corporation Plc

   -- Outlook, Changed To Negative From Stable

Moody's also maintains the following rating on Eurasian Natural
Resources Corporation Plc:

BACKED Other Short Term (foreign currency) ratings of (P)NP

Ratings Rationale

"The rating action reflects ENRC's more aggressive acquisition
and financial policy, which is likely to lead to a deterioration
in the issuer's financial profile, while putting pressure on
liquidity, due to the large cash outflows related to aggressive
M&A activity, and the substantial capital expenditure plan," says
Gianmarco Migliavacca, a Moody's Vice President -- Senior Analyst
and lead analyst for ENRC.

Moody's expects that the forthcoming acquisitions will be almost
entirely debt funded. As a result, the likelihood that the
group's debt/EBITDA ratio will approach, or even exceed, 2.5x has
sharply increased, especially considering that the largest
acquisition announced, in the Democratic Republic of Congo (DRC),
is expected to start generating positive financial results only
from mid/late 2013, and subject to further capital expenditures
which ENRC needs to incur after closing, to bring the acquired
assets to productivity.

Specifically, ENRC has recently announced an agreement with First
Quantum Minerals ('FQM') to acquire its residual mining assets in
the Democratic Republic of Congo (DRC) for a total consideration
of US$1.25 billion. The deal is expected to close by the end of
February. Upon completion of the transaction, all existing
residual claims in respect of the Kolwezi tailings project and
the Frontier and Lonshi mines will be acquired by ENRC and,
according to ENRC and FQM, all current legal disputes between the
two parties will be settled, Furthermore, ENRC has indicated that
it is reviewing its options to secure access to the Frontier and
Lonshi mines, as Moody's understands that the licenses over both
mines will not be acquired in the transaction with FQM, as both
licenses are currently owned by a Hong Kong based company whose
ownership remains undisclosed. At the same time, Moody's
understands that the issuer maintains its intention to finalize
the purchase of the residual 75% stake it does not already own in
Kazakh coal producer Shubarkol, for a consideration of US$600
million plus assumed debt of approximately US$50 million. This is
a related party transaction as the residual 75% stake is
currently owned by the three founding shareholders of ENRC. This
deal is therefore subject to the approval of the independent
shareholders, which Moody's expects will be granted at a next
shareholders' meeting this year.

Moody's considers that the pressure exerted on ENRC's financial
profile and liquidity as a result of the group's expansion
strategy will be compounded by the challenging macroeconomic
environment expected in 2012, which Moody's believes will
translate into weaker operating and financial performances for
ENRC compared to 2011.

On a more positive note, Moody's recognizes (i) ENRC's good
access to high-grade and long-reserve-life mining assets in
Kazakhstan (more than 35 years of reserves at current production
levels), which provide the group with good access to the Chinese
and Eurasian markets; (ii) its favorable cost structure as a
result of its high-quality mining assets, as well as benefits to
the group of being a vertically integrated miner (self-
sufficiency in metals, downstream integration in smelting and
refining as well as the access to captive power and
transportation assets); and (iii) ENRC's still solid balance-
sheet structure, which benefited from the strong financial
performance exhibited by the group in 2010 and 2011 to date,
supported by the favorable commodity price environment prevailing
in the past two years. Furthermore, Moody's positively notes that
the closing of the forthcoming acquisitions will add high quality
coal copper and cobalt mining assets, and especially the copper
assets in the DRC, which will start to positively contribute to
the issuer's financial performance once fully developed according
to plan before end of 2013.

ENRC's liquidity, which as of September 2011 was satisfactory,
would become insufficient to address all the major expected
outflows related to the group's large capex and acquisition plans
for the next 12-18 months, as well the other outflows related to
dividends, debt repayments and working capital. In particular,
Moody's expects that ENRC will incur more than US$3 billion of
capex over the next 12-18 months, as well as finalize
acquisitions worth nearly US$2 billion (i.e. excluding agreed
acquisition related deferred payments) over the same period. The
US$1.2 billion of cash that ENRC has on the balance sheet as of
September 2011, coupled with US$1.5 billion of undrawn banking
facilities at the same date (a US$500 million revolving credit
facility and a US$1 billion term loan signed on September  30,
2011 with Russian Commercial Bank (Cyprus) Limited, would not be
adequate to address all these outflows. However, Moody's expects
that ENRC will be able to put in place the required funding
needed to address its planned liquidity needs, maintaining an
adequate headroom at all times.

The negative outlook reflects the substantial execution risk
attached to the planned growth strategy in countries
characterized by high political risk, namely the Democratic
Republic of Congo, where ENRC's exposure will materially increase
following the recently announced deal with FQM. The change in
outlook also reflects Moody's recurring concerns over ENRC's
corporate governance, whereas any possible negative evolution, as
a further downside effect, could make much more difficult for the
issuer to secure external funding - at least with Western based
lenders - while at the same time increasing the risk of over-
exposure to its Kazakh and Russian based relationship banks.

What Could Change The Rating Up/Down

Given the rating action, Moody's currently considers positive
rating actions to be unlikely in the near future. However, in the
absence of any material outstanding issue concerning corporate
governance, positive pressure could build over time if the group
were able to successfully execute its ambitious growth strategy
while maintaining comfortable liquidity headroom and maintaining
strong debt and cash flow metrics. Such metrics would need to be
in line with the levels achieved as of June 2011, including a
debt/EBITDA ratio sustainably below 2.0x.

Conversely, Moody's would consider downgrading the rating if
there were a material deterioration in ENRC's liquidity profile
as a result of a sharp decline in the group's operating cash flow
generation and/or a more aggressive financial policy. Such a
deterioration would be reflected by less robust credit metrics,
including debt/EBITDA in excess of 2.5x on a sustained basis.
Furthermore, negative pressure could be exerted on the rating by
negative developments in the group's corporate governance.

Principal Methodology

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

Eurasian Natural Resources Corporation Plc, headquartered in
London, is a vertically integrated Kazakh mining company
primarily focused on the production of ferroalloys and iron ore
(45% and 29% of group revenues respectively). ENRC is the world's
largest ferrochrome producer (by chrome content) and one of the
leading global exporters of iron ore by volume. ENRC is also the
world's ninth-largest supplier of traded alumina by volume (14%
of group revenues). In addition to the group's core mining
activities, ENRC owns and operates energy assets (it is one of
Kazakhstan's largest electricity providers), as well as logistics
assets -- partly used for captive purposes given that the group
is self-sufficient in electricity and logistics in Kazakhstan.
ENRC generated revenues of US$6.605 billion and reported an
underlying EBITDA of US$3.194 billion for the fiscal year ended
December 31, 2010.


GROUNDWORK MERSEYSIDE: In Administration, Cuts 26 Jobs
------------------------------------------------------
Liverpool Echo reports that Liverpool Garden Festival partner
Groundwork Merseyside went into administration cutting 26 jobs in
the process.

Groundwork Merseyside was appointed by the Land Trust to oversee
the day-to-day running of the 90-acre Otterspool site, according
to Liverpool Echo.  The report relates that the city-based
environmental charity called in administrators after an
"unsustainable" cull in its funding.

Liverpool Echo notes that all but four of the company's 30 staff
have lost their jobs.

Groundwork's collapse was the latest in a series of setbacks to
scupper progress at the gardens, originally opened in 1984, the
report adds.


HERD ESTATES: Administrators Take Over Paintings & Estate
---------------------------------------------------------
BBC News reports that KPMG, administrators of Herd Estates, has
taken control of a collection of antique paintings and a 500-acre
Scottish estate.

Herd Estates was placed into administration in December, owing
banks around GBP50 million, according to BBC.  The report relates
that the company came under pressure as a result of the property
crash and after the firm could not find a buyer for its core
assets the administrator was appointed.

BBC News notes that the administrator's report, from consultancy
KPMG, said the company had been trading since 2001 and had built
up a portfolio of 45 retail and commercial units; and owned a
500-acre estate and a wind farm in Scotland.

BBC News recalls that from 2008, the firm came under pressure as
their tenants struggled to pay rents and property values fell.
The report relates that in 2011, the company's core portfolio was
put up for sale and offers were received.

However, the administrator said "a suitable sale could not be
concluded," BBC News notes.  The report relays that the firm
could not find new finance and its main lender Bank of Scotland
Ireland appointed the administrator.  BoSI is owed almost
GBP46 million, while Allied Irish Banks is owed more than
GBP3 million.

The administrator said that two preferred bidders have already
been found for 41 of the properties in the core retail portfolio,
BBC News notes.

The report adds that the administrator said there was "a
possibility" that smaller, unsecured creditors may get some of
what they are owed after all the property is sold.

Herd Estates is a Belfast property firm.


STAGECRAFT TECHNICAL: Begbies Traynor Sells Assets to CPS
----------------------------------------------------------
The assets of Stagecraft Technical Services Ltd have been bought
out of liquidation by a competitor.

Partner Julie Palmer and director Simon Campbell of corporate
recovery specialists Begbies Traynor in Salisbury were appointed
as liquidators of Stagecraft Technical Services Ltd on Dec. 21,
2011.

STS was a specialist audio visual, lighting, sound and staging
company with an annual turnover of GBP700,000 which was generated
through retail, hire and permanent installations mainly for
theatrical and musical productions, trading out of Porton,
Wiltshire.

The assets of the business were sold to a competitor business CPS
Group, based in Christchurch.

Julie Palmer said: "We made a huge effort to find a buyer for
this business as a going concern prior to appointment, however we
are pleased to have ensured that STS's loyal customer base will
continue to be serviced effectively by CPS, a major player in the
region."

Richard Colegate of CPS said: "Stagecraft has been a well-
respected name in the industry for over 30 years and CPS is
delighted to pick up the torch and lead the Stagecraft brand into
the next decade.

"We look forward to working with Stagecraft customers in 2012.
Combining CPS' excellence in modern lighting, audio and video
with Stagecraft's expertise in stage production and outdoor
structures provides exciting new possibilities.

"Bringing on-board Stagecraft's expertise in stage construction
and a significant stock of staging and outdoor structures means
that we can provide a more comprehensive service to our existing
clients too."

Stagecraft Technical Services Ltd was a Porton-based sound and
light staging company


WATERSIDE HOTEL: Goes Into Administration, Seeks Buyer
------------------------------------------------------
Men Media Business reports that a buyer is being sought for The
Waterside Hotel and Galleon Leisure Club, which has gone into
administration after a winding-up petition was issued by Her
Majesty Revenue & Customs.

Paul Barber and Gary Lee, partners at Begbies Traynor in
Manchester, were appointed as joint administrators to the club on
January 13.

The hotel and leisure club, which remains open for business while
a buyer is sought, employs a total of 106 staff, according to Men
Media Business.  The hotel and leisure club is currently being
run by management company Convivial Group while the business is
marketed.

The administrators can be reached at:

         Paul Barber
         Gary Lee
         BEGBIES TRAYNOR
         340 Deansgate
         Manchester
         Greater Manchester
         M3 4L, UK
         Tel: +44 (0)161 837 1700
         E-mail: paul.barber@begbies-traynor.com
                 gary.lee@begbies-traynor.com


The Waterside Hotel and Galleon Leisure Club is a privately-
owned, three-star hotel that also hosts weddings and conferences,
while the leisure club has around 5,500 members.


WILLAND PHARMACY: Adis Kikic Acquires Firm Out of Administration
----------------------------------------------------------------
Willand Pharmacy, which went into administration in April last
year has been sold to an independent pharmacist, Adis Kikic.

The original pharmacy foundered when Tesco opened a pharmacy
operation locally.  Trading reduced to such an extent that the
business was nearly forced into a compulsory liquidation until
national corporate rescue and recovery specialists Begbies
Traynor secured agreement from creditors for an Administration.
Ian Walker from Begbies Traynor's Exeter office has been trading
the business since May, when offers were sought from prospective
purchasers.

After a great deal of interest, a buyer was found in August, and
the deal finally came together in December, when Mr. Kikic's
offer was accepted.

Willand Pharmacy is now trading successfully offering a patient
focused service, and in fact business has been better than
expected, according to Mr. Kikic. "We have taken the business
back to core pharmacy focused products and services, which we
intend to build on.  In addition to our free prescription order,
collection and delivery service, we have partially converted a
proportion of our retail space into a consultation room from
which we intend to provide future services.   We've already
launched a Stop Smoking service, provide Medicine Use Reviews,
the New Medicine Service and will be offering flu vaccinations
from September.  In the very near future we shall be launching
diabetes, cholesterol and blood pressure screening as well as a
weight management service.  At the moment we will be offering
these as private services, but we will be in close touch with our
local NHS Health Centers over possible future developments.

The business is going well, and we're really pleased with the
level of support and acceptance we're getting from our local
community.  We expected a dip in prescription volume when we
started, but it simply hasn't happened due to much appreciated
local support."

Ian Walker comments, "The sale means we can realize a dividend
for creditors, while securing the continuation of an important
service business for the Willand community.  We wish Mr. Kikic
the best of luck with his exciting plans for the future."

The administrator can be reached at:

         Ian Walker
         BEGBIES TRAYNOR
         Balliol House
         Southernhay Gardens
         Exeter Devon, EX1 1NP
         Tel: +44 (0)1392 260 800
         E-mail: ian.walker@begbies-traynor.com

Willand Pharmacy is located at Cullompton Devon.


WIZCOM TECHNOLOGIES: Must Settle Arrears or Face Administration
---------------------------------------------------------------
Wizcom Technologies Ltd. on Feb. 2 disclosed that one of its
suppliers has informed the management that if the Company does
not settle its arrears before long, the supplier will request the
Court to put the Company into administration.  The Board
continues its endeavors to find a solution for the current
situation but reiterates it is in doubt Wizcom can continue to
operate as a going concern.

Additionally, the Board of Directors of Wizcom disclosed that
Tiran Fartouk has resigned with immediate effect as Director and
acting CEO of the Company.  Upon request of the Board,
Mr. Fartouk will continue as acting CEO until such time as the
Board will appoint a new CEO.

Wizcom Technologies Ltd. engages in the design, development,
manufacture, and marketing of intelligent hand-held consumer
products for the linguistics, learning, and information
technology markets.


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


* Asset Management Firms Stalking European Distressed Debt
----------------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that the euro-zone
crisis has encouraged some of the biggest firms of the asset
management industry -- Kohlberg Kravis Roberts & Co., Pacific
Investment Management Co., and GLG Partners -- to tell investors
that this is the right time to put money into the distressed debt
of Europe companies.


* BOOK REVIEW: Hospital Turnarounds - Lessons in Leadership
-----------------------------------------------------------
Editors: Terence F. Moore and Earl A. Simendinger
Publisher: Beard Books
Softcover: 244 pages
Price: $34.95
Review by Henry Berry

Hospital Turnarounds - Lessons in Leadership is a compilation of
twelve essays on the many approaches that have been taken to
resuscitate hospitals in distressed situations.  Most of the
essayists are CEOs or presidents of hospitals or healthcare
organizations, and their stories are all different and compelling
in their own way.  The hospitals differ in their size,
marketplace, facilities, and services offered.  The causes of
their distress vary and the strategies that were used to overcome
them are wide-ranging.  All-in-all, it makes for an engaging
collection of success stories.

The authors have extensive experience in the healthcare system,
and nearly all have held top leadership posts in several public
and private hospitals.  Most importantly, all have been involved
in successful turnarounds at some time in their careers. Two of
the authors are from the field of marketing, which can play a
significant role in hospital turnarounds.

The number of troubled hospitals rises and falls over time,
depending on many factors, including the state of the U.S.
economy.  There are always some hospitals in a distressed
situation or teetering close to it.  In spite of the fact that
healthcare is a basic need in U.S. society, hospitals are
constantly vulnerable to financial problems because of
competition, changing medical technology, new approaches to
healthcare from improved drugs and public awareness, and medical
malpractice lawsuits.  Any or all of these factors can be
financially crippling and, even if the financial impact is
minimized, a hospital's reputation can be damaged.  Like any
other business organization, hospitals can also run into
difficulty because of poor management or labor problems.

The first and last chapters, "Introduction" and "Turnarounds: An
Epilogue," respectively, are written by the co-editors.  The
balance of the chapters contain first-hand accounts of hospital
turnarounds, with the authors asked by the co-editors to
"document the role of the various publics."  The authors do this,
offering their assessment of the role of the board of directors,
medical staff, management team, volunteers, and other relevant
"publics" in the respective turnarounds.   A common thread in
this book is that the import and activities of these publics were
different in every turnaround.  Each turnaround had to address
its own grievous, overriding problem or set of problems.  Each
turnaround had its own cast of characters who brought different
backgrounds and skills to the turnaround.  As a result, each path
taken to overcoming the distressed situation was different.

No matter what the cause or causes of a hospital's distressed
situation, in nearly every case the problems were first realized
when a financial problem became apparent.  Thus, turnarounds are
inevitably focused on improving a hospital's financial situation.
As one of the authors notes, "A turnaround is most often the
result of increased revenues and decreased expenses."  The
approach taken by some of the authors was to focus on
"[increasing] revenues to improve the operating margins of their
organizations."  Many other turnarounds were accomplished by
focusing on reducing expenses.  Invariably, however, a
combination of both was needed and working toward these paired
objectives required a new strategic thinking and the development
of operational capabilities that prepared the hospital for long-
term survival in continually changing market conditions.  One
author's prescription for success was, "Upward communication,
fluidity of organizational structure, a reduction of unnecessary
bureaucratic rules and policies, and ambitious yet realistic
goals and objectives."

These practices are present in healthy companies and usually
missing in distressed companies.  Implementation of these
business practices is essential for a hospital to return to a
favorable financial footing.

Another author addressed "organizational burnout," which must be
corrected if a hospital is to survive.  Burnout is evident when
"the sum of an organization's actual output is decreasing over
time when compared with its potential output."  The challenge
facing hospital executives and turnaround specialists is to
reduce -- and ideally, eliminate -- the gap between actual and
potential output.  The smaller the gap, the more efficient,
productive, and healthy the organization.

These are just a few of the observations and lessons provided in
this collection of essays.  Through engaging first-person
accounts of rescue stories, the reader learns what a turnaround
is all about, how to diagnose a distressed situation, and how to
formulate a strategy that implements specific corrective actions.

Terence F. Moore has been involved in the Michigan hospital
system as President and CEO of Mid-Michigan Health, Board Member
of the Michigan Hospital Association, and Chair of the East
Michigan Hospital Association.  He is also a fellow of the
American College of Healthcare Executives.  Earl A. Simendinger
is a professor of management at the College of Business at the
University of Tampa who for 20 years was a hospital
administrator.  Also a fellow in the American College of
Healthcare Executives, he has written many books and articles on
management and organizational development.


                            *********

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 * * *