TCREUR_Public/120307.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, March 7, 2012, Vol. 13, No. 48

                            Headlines



A U S T R I A

* AUSTRIA: Expects to Present Bank Insolvency Law by "Summer"


C Z E C H   R E P U B L I C

CZECH CONNECT: Put Into Bankruptcy by Ostrava Court
* CZECH REPUBLIC: Company Insolvency Proposals Up 14% in February
* CZECH REPUBLIC: Corporate Bankruptcies Hit Record High in Feb.


D E N M A R K

* DENMARK: 5th Bank Rescue Package Won't Avert Insolvency Crisis


G E R M A N Y

ADAM OPEL: Boss Vows to Return Profitability
GENERAL MOTORS: Says Its New Alliance With Peugeot Has Merit
KIRCHMEDIA: Deutsche Bank Declines US$1-Bil. Kirch Settlement


G R E E C E

* GREECE: 12 Financial Institutions Agree to Voluntary Debt Swap
* Swiss Law-Governed Bondholders Invited to Join Ad Hoc Group


I R E L A N D

HARBOURMASTER CLO: Fitch Junks Ratings on Four Note Classes


N E T H E R L A N D S

ZIGGO BOND: Moody's Puts Ba2 CFR for Possible Upgrade Over IPO


R U S S I A

AVTOVAZ JSC: Fitch Affirms 'B- Long-Term Issuer Default Ratings


U N I T E D   K I N G D O M

FOUR SEASONS: Healthcare Expects to Repay Debt by Deadline
PORTSMOUTH FOOTBALL: Ex-Owner Prepared to Prevent Liquidation
RANGERS FOOTBALL: SPL Mulls Penalties, Points Deductions


X X X X X X X X

* Sovereign Downgrades Key to European Bond Rating Migration


                            *********


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A U S T R I A
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* AUSTRIA: Expects to Present Bank Insolvency Law by "Summer"
-------------------------------------------------------------
Zoe Schneeweiss at Bloomberg News reports that Finance Minister
Maria Fekter said Austria's government will present rules for
banks going insolvent to lawmakers by "summer".

"We've agreed that the insolvency law for banks will be in
parliament by summer," Bloomberg quotes Ms. Fekter as saying in
Vienna on Tuesday.  This includes the enforcement directive for
"financial police".


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


CZECH CONNECT: Put Into Bankruptcy by Ostrava Court
---------------------------------------------------
CTK, citing data in the insolvency register, reports that the
Regional Court in Ostrava has sent Czech Connect Airlines (CCA)
into bankruptcy.

CCA filed an insolvency petition itself because of excessive
debts and inability to repay them, CTK relates.  According to the
petition, CCA has almost 300 creditors, among whom are 80 current
and former employees to whom the company owes CZK3.4 million in
total, CTK discloses.  Claims of the other creditors amount to
almost CZK219 million, CTK notes.

CCA is based at the Leos Janacek Airport in Ostrava, northern
Moravia.


* CZECH REPUBLIC: Company Insolvency Proposals Up 14% in February
-----------------------------------------------------------------
CTK reports that Creditreform on Monday said the number of
insolvency proposals for Czech companies rose by 14% to 687 in
February against January.

According to CTK, the number of insolvency proposals for
individuals grew also by 14% to 1,913.

Working day adjusted, the number of the proposals increased by
21% in both groups, CTK notes.  The figures are at their peak,
also compared with the whole of last year, and their fall can
hardly be expected, CTK states.


* CZECH REPUBLIC: Corporate Bankruptcies Hit Record High in Feb.
----------------------------------------------------------------
CTK, citing Czech Credit Bureau, reports that a total of 287
bankruptcies of companies were declared in the Czech Republic in
February, the highest number since January 2008 when the new
insolvency law came into force and a quarter higher than this
January.

According to CTK, the number of personal bankruptcies fell by 7%
from January to 1,217.  The share of bankruptcies of self
employed in corporate bankruptcies grew to 56%, CTK notes.


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D E N M A R K
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* DENMARK: 5th Bank Rescue Package Won't Avert Insolvency Crisis
----------------------------------------------------------------
Frances Schwartzkopff at Bloomberg News reports that Denmark's
fifth bank rescue package since 2008 won't help lenders
struggling with insolvency.

Lawmakers agreed last week to allow banks, including FIH
Erhvervsbank A/S, to transfer agricultural and property loans to
state agencies in an effort to bring to an end a credit dearth
that's squeezing businesses and farms and threatening the
economy, Bloomberg recounts.  According to Bloomberg, Henrik
Bjerre-Nielsen, chief executive officer of Financial Stability
Co., said that while the package should help stabilize businesses
and some lenders it won't help banks at the edge of insolvency.

"This is applicable only for well-capitalized banks facing
potential liquidity problems," Bloomberg quotes Mr. Bjerre-
Nielsen as saying in a March 2 telephone interview.

The government also said last week it would provide at least
DKK36 billion (US$6.2 billion) in loans and guarantees to
businesses, Bloomberg relates.

The Nordic country is struggling with a worsening banking crisis
as the fallout from a burst housing bubble deepens, depressing
spending and souring farm and business loans, Bloomberg
discloses.  Depositors are fleeing regional banks for larger
lenders including Sydbank A/S, Bloomberg states.  At the same
time, regulators are pushing for tougher capital requirements and
the banks need to repay about DKK30 billion in state-backed debt
by 2013, Bloomberg notes.

"If we hadn't done this transaction, they would have been forced
to cut down on their credit exposure on small and medium-sized
enterprises," Bloomberg quotes Mr. Bjerre-Nielsen as saying.
Still, "this is definitely not something that can be used by a
bank that is facing solvency problems".

The agency has said that the group of banks under intensified
scrutiny by the Financial Services Authority because of potential
insolvency problems represents about 3% of the industry,
Bloomberg relates.  Most of Denmark's 120 banks were locked out
of funding markets after the collapse last year of Amagerbanken
A/S triggered Europe's first senior creditor losses under a
government resolution framework, Bloomberg recounts.


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G E R M A N Y
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ADAM OPEL: Boss Vows to Return Profitability
--------------------------------------------
BBC News reports that the boss of carmakers Opel and Vauxhall has
vowed to "work aggressively" to make the brands profitable.

"We are talking to every stakeholder right now to improve the
business in order to provide sustainable profitability," chief
executive Karl Stracke told BBC.

Fears are growing that his cost-cutting plan will involve the
closure of at least one factory in Europe, BBC states.

He declined to offer any assurance to workers in the UK or
Germany, BBC notes.

According to BBC, industry observers have said Vauxhall's
Ellesmere Port factory in the UK and Opel's Bochum factory in
Germany are likely candidates if Mr. Stracke decides to close one
plant.

The fears grew after last month's revelation that Opel/Vauxhall
suffered massive losses last year, BBC recounts.

Mr. Stracke was eager to stress that some EUR11 billion
(US$14.5 billion; GBP9.2 billion) is being invested in new
products, with some 30 new Opel and Vauxhall models scheduled for
launch over the next three years, BBC discloses.

Mr. Stracke, as cited by BBC, said this should help the company
gain market share and grow, he said.

Opel and its UK subsidiary Vauxhall are owned by General Motors.

As reported by the Troubled Company Reporter-Europe on March 2,
2012, Bloomberg News related that GM and PSA Peugeot Citroen (UG)
announced a broad alliance that will include joint purchasing and
vehicle development in an effort to revitalize their European
operations.  The automakers said in a joint statement
on Wednesday that GM will buy 7% of the French carmaker to become
the second-largest shareholder after the Peugeot family,
Bloomberg disclosed.  Peugeot will sell new shares in a
EUR1 billion (US$1.34 billion) rights offering, Bloomberg said.
Bloomberg noted that a person familiar said the partnership also
includes a restructuring at both GM and Peugeot that will
result in plant closures and job cuts.

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.


GENERAL MOTORS: Says Its New Alliance With Peugeot Has Merit
------------------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that General Motors
Co. is moving to blunt heavy skepticism of its newly minted
alliance with France's PSA Peugeot Citroen, saying the deal may
be the start of a potentially broader alliance that could help
its struggling European operations.

                       About General Motors

With its global headquarters in Detroit, Michigan, General Motors
Company (NYSE:GM, TSX: GMM) -- http://www.gm.com/-- is one of
the world's largest automakers, traces its roots back to 1908.
GM employs 208,000 people in every major region of the world and
does business in more than 120 countries.  GM and its strategic
partners produce cars and trucks in 30 countries, and sell and
service these vehicles through the following brands: Baojun,
Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Isuzu, Jiefang,
Opel, Vauxhall, and Wuling.  GM's largest national market is
China, followed by the United States, Brazil, the United Kingdom,
Germany, Canada, and Italy.  GM's OnStar subsidiary is the
industry leader in vehicle safety, security and information
services.

General Motors Co. was formed to acquire the operations of
General Motors Corp. through a sale under 11 U.S.C. Sec. 363
following Old GM's bankruptcy filing.  The U.S. government once
owned as much as 60.8% stake in New GM on account of the
financing it provided to the bankrupt entity.  The deal was
closed July 10, 2009, and Old GM changed its name to Motors
Liquidation Co.

On Nov. 1, 2011, Moody's Investors Service raised New GM's
Corporate Family Rating and Probability of Default Rating to Ba1
from Ba2, and its secured credit facility rating to Baa2 from
Baa3.  Moody's also raised the Corporate Family Rating of GM's
financial services subsidiary -- GM Financial -- to Ba3 from B1.

On Oct. 7, 2011, Fitch Ratings upgraded the Issuer Default
Ratings of New GM, General Motors Holdings LLC, and General
Motors Financial Company Inc., to 'BB' from 'BB-'.

On Oct. 3, 2011, Standard & Poor's Ratings Services raised its
corporate credit rating on New GM to 'BB+' from 'BB-'; and
revised the rating outlook to stable from positive. "We also
raised our issue-level rating on GM's debt to 'BBB' from 'BB+';
the recovery rating remains at '1'," S&P said.

                     About Motors Liquidation

General Motors Corporation and three of its affiliates filed for
Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 09-50026) on
June 1, 2009.  The Honorable Robert E. Gerber presides over the
Chapter 11 cases.  Harvey R. Miller, Esq., Stephen Karotkin,
Esq.,and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges
LLP, assist the Debtors in their restructuring efforts.  Al Koch
at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as
the Chief Executive Officer for Motors Liquidation Company.  GM
is also represented by Jenner & Block LLP and Honigman Miller
Schwartz and Cohn LLP as counsel.  Cravath, Swaine, & Moore LLP
is providing legal advice to the GM Board of Directors.  GM's
financial advisors are Morgan Stanley, Evercore Partners and the
Blackstone Group LLP.  Garden City Group is the claims and notice
agent of the Debtors.

The U.S. Trustee appointed an Official Committee of Unsecured
Creditors and a separate Official Committee of Unsecured
Creditors Holding Asbestos-Related Claims.  Lawyers at Kramer
Levin Naftalis & Frankel LLP served as bankruptcy counsel to the
Creditors Committee.  Attorneys at Butzel Long served as counsel
on supplier contract matters.  FTI Consulting Inc. served as
financial advisors to the Creditors Committee.  Elihu Inselbuch,
Esq., at Caplin & Drysdale, Chartered, represented the Asbestos
Committee.  Legal Analysis Systems, Inc., served as asbestos
valuation analyst.

The Bankruptcy Court entered an order confirming the Debtors'
Second Amended Joint Chapter 11 Plan on March 29, 2011.  The Plan
was declared effect on March 31.


KIRCHMEDIA: Deutsche Bank Declines US$1-Bil. Kirch Settlement
-------------------------------------------------------------
Martin Bricketto at Bankruptcy Law360 reports that Deutsche Bank
AG on Thursday rejected a reported EUR800 million
(US$1.06 billion) deal to end litigation brought by now-deceased
German media mogul Leo Kirch and his associates, who accused the
bank's onetime CEO of triggering the collapse of Kirch's
conglomerate.

According to Law360, the bank said in a statement that its
management board had thoroughly reviewed the proposal with the
aid of internal and external legal advice and declined to accept
it without dissent.

                          About KirchMedia

Headquartered in Ismaning, Germany, KirchMedia GmbH --
http://www.kirchmedia.de/-- was the country's second largest
media company prior to its insolvency filing in June 2002.  The
firm's collapse, caused by a US$5.7 billion debt incurred during
an expansion drive, was Germany's biggest since World War II.
Taurus Holding is the former holding company for the Kirch
group.  The case is docketed under Case No. 14 HK O 1877/07 at
the Regional Court of Munich.


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G R E E C E
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* GREECE: 12 Financial Institutions Agree to Voluntary Debt Swap
----------------------------------------------------------------
According to Dow Jones Newswires' Matina Stevis, the Institute of
International Finance said in a statement on Monday that twelve
financial institutions representing a significant chunk of
outstanding Greek bonds held by private lenders have agreed to
participate in the voluntary Greek debt swap set to conclude
Thursday.

The banks and funds all sit on the steering committee that
negotiated the terms of the Greek debt restructuring under the
auspices of the IIF, which represents some 450 financial
institutions, Dow Jones recounts.

The institutions that indicated Monday they'd participate are:
Allianz SE , Alpha Bank AE, AXA SA, BNP Paribas SA, CNP
Assurances, Commerzbank AG, Deutsche Bank AG, Eurobank EFG,
Greylock Capital Management, ING Bank, Intesa Sanpaolo SpA and
National Bank of Greece SA, Dow Jones discloses.

Based on available disclosures from most of these institutions,
they held Greek bonds with a total nominal value of at least
EUR40 billion (US$52.8 billion) as of the end of 2011, although
positions may have changed since then, Dow Jones says.

As part of a second bailout package for Greece, private-sector
investors are being asked to take a 53.5% loss on their
principal, and then to swap their old Greek bonds with new bonds
that have longer maturities and lower coupons, Dow Jones states.

"Completion of the approval processes is still underway for a few
steering committee member firms," Dow Jones quotes the statement
as saying.  The only steering committee member not mentioned in
the IIF statement is Landesbank Baden-Wurttemberg, Dow Jones
notes.

These institutions, including the sole hedge fund represented in
the committee, Greylock Capital Management, will participate
voluntarily in the bond exchange of their holdings of Greek
government bonds, Dow Jones relates.

According to Dow Jones, an LBBW spokesman said the bank, which
according to its own disclosures from September 2011 held
EUR628 million in Greek government bonds, is still considering
the bond-swap offer on the table.


* Swiss Law-Governed Bondholders Invited to Join Ad Hoc Group
-------------------------------------------------------------
Holders of the 2 1/8% Bonds 2005-2013 of CHF650,000,000 issued by
The Hellenic Republic have formed an Ad Hoc Group in response to
the Republic's recent Solicitation of Consents.  The Group's
members hold a material portion of the Bonds.  The Group is
concerned by the terms proposed in the Solicitation, and the
Group is exploring means to address its concerns and to protect
the rights of holders of the Bonds.  Interested holders of the
Bonds are invited to contact the Group before acting on the
Solicitation, through the Group's legal advisor Bingham McCutchen
LLP.  Given that March 8 is the deadline for submitting a
Participation Instruction, holders are urged to contact the
Group's legal advisor quickly.

Contact details are:

          Bingham McCutchen LLP
          399 Park Avenue
          New York NY 10022
          Attn:  Tim DeSieno
          E-mail: tim.desieno@bingham.com
          Telephone: +1 212 705 7426

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


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HARBOURMASTER CLO: Fitch Junks Ratings on Four Note Classes
-----------------------------------------------------------
Fitch Ratings has downgraded Harbourmaster CLO 3 Limited's notes,
as follows:

  -- EUR282.0m class A (ISIN XS0152283692): downgraded to 'CCCsf'
     from 'BB-sf'; Recovery Estimate 95%
  -- EUR21.0m class B-1 (ISIN XS0152285630): downgraded to 'CCsf'
     from 'CCCsf'; Recovery Estimate 0%
  -- EUR5.0m class B-2 (ISIN XS0152285804): downgraded to 'CCsf'
     from 'CCCsf'; Recovery Estimate 0%
  -- EUR8.0m class C (ISIN XS0152286281): affirmed at 'CCsf';
     Recovery Estimate 0%

Fitch has downgraded the class A, B-1 and B-2 notes due to an
increasing exposure to lower credit quality assets as the
portfolio decreases in size and due to the presence of a
significant long dated bucket of assets which may have to be sold
in advance of the maturity of the transaction.  Despite the
increase in lower credit quality assets the over-
collateralization (OC) tests are still passing, reflecting the
fact that the tests do not make adjustments for 'CCC' and below
assets.

The weighted average life of the portfolio is currently 2.79
years with 2.40 years left until maturity.  47% of the aggregate
principal balance of the assets under management has a maturity
later than the legal final maturity of the transaction in July
2014 necessitating some sort of liquidation prior to maturity.

The Weighted Average Fitch Factor test has deteriorated driven by
an increase in assets rated 'CCC' and below by Fitch.  This
bucket currently stands at 17%.   OC tests have been passing
since September 2010.  Given the short remaining life of the
transaction it is unlikely that significant spread can be
diverted to repay senior notes should defaults increase and the
OC tests fail.

The Recovery Estimate represents Fitch's calculation of expected
principal recoveries, as a percentage of current note principal
outstanding.  In this instance Fitch feels that the expected
recovery on the class A notes would be 95% given the occurrence
of an expected default and liquidation scenario.  Fitch would
expect the class B-1, B-2 and C notes to recover 0% in the same
scenario.

Harbourmaster CLO 3 Limited is a securitization of mainly
European senior secured loans and structured finance securities.
At closing a total note issuance of EUR438 million was used to
invest in a target portfolio of EUR430 million.  The portfolio is
actively managed by Harbourmaster Capital Ltd.


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N E T H E R L A N D S
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ZIGGO BOND: Moody's Puts Ba2 CFR for Possible Upgrade Over IPO
---------------------------------------------------------------
Moody's Investors Service placed the ratings for Ziggo Bond
Company B.V. ("Ziggo"; CFR at Ba2) under review for possible
upgrade following the company's announcement that it intends to
launch an initial public offering on Amsterdam's Euronext NYSE
exchange.

The review reflects the company's associated announcement of an
intended financial policy of maintaining Net Debt/ EBITDA at
3.5x, while accommodating dividend outflows in line with its
contemplated progressive dividend policy.

Moody's expects to conclude its review following the completion
of the IPO as currently envisaged. Moody's currently anticipate
that the CFR will be upgraded by one notch, with the upgrade of
debt instruments following in line with the loss given default
model.

Ratings Rationale

The intended IPO will involve a secondary sale of a portion of
Ziggo's ordinary shares held by its founding shareholders
including affiliates of Cinven and Warburg Pincus, and is
therefore leverage neutral. The company's financial policy of
maintaining reported Net Debt/ EBITDA at 3.5x in the long-term,
on the other hand, reinforces its focus on near-term de-
leveraging. The company's reported Net Debt/ EBITDA stood at 3.9x
as of December 31, 2011 and Moody's adjusted Gross Debt/ EBITDA
stood broadly at the same level.

Ziggo plans to pay EUR220 million in dividends in 2012 and
intends to maintain a pay-out policy of distributing at least 50%
of its 'free cash flow to equity' in dividends, going forward.
This implies that company's free cash flow / debt (as calculated
by Moody's) will concurrently weaken to accommodate the dividends
from the ~9% level at the end of 2011. Nevertheless, going
forward Moody's would expect the company to gradually de-leverage
to 3.5x Net Debt/ EBITDA and continue to generate positive free
cash flow post dividends. Ziggo's business and proposed financial
profile is likely to be in line with Moody's expectations for a
Ba1 CFR, once the IPO completes, with the company's new financial
policy.

During 2011, Ziggo's revenues continued to grow solidly (7% on an
organic basis) to EUR1.48 billion. Its EBITDA margin remained
strong at 56.5%. Following the growth in revenue generating units
('RGUs') and bundled subscribers, triple play penetration of home
passed reached 30%. Broadband and telephony penetration reached
around 40% and 32% respectively. Moody's believes there remains
room for Ziggo to continue to grow by pursuing the current
bundling strategy and increasing broadband market share. In
addition, as of December 2011 around two thirds of total TV
subscribers had activated digital smart cards with 31% signing up
for digital pay TV packages. Although Moody's notes that some
lower ARPU analogue TV subscribers may not all transition to
Ziggo's digital offering, Moody's expects to see further
contribution to revenue and EBITDA from the uptake of digital and
wider penetration of interactive services as well as new growth
opportunities like 'TV Everywhere' and B2B broadband and
telephony services.

Ziggo operates a state-of-the-art network, fully DOCSIS3.0
enabled and offers high broadband speeds up to 120 Mbps across
its geographic market. Moody's believes that the company remains
well positioned to grow in its major product lines, supported by
its established infrastructure.

Ziggo's liquidity profile is acceptable for its needs. Ziggo had
approximately EUR113 million of cash at December 30, 2011. Under
the Senior Credit Facility agreement, expiring in September 2017,
the Company has an uncommitted revolving credit facility of
EUR150 million which is covered by a committed bilateral
ancillary facility of EUR50.0 million by one of the lenders,
expiring in September 2014, and an uncommitted capital
expenditure restructuring facility of EUR250.0 million expiring
in September 2017.

The principal methodology used in rating Ziggo 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.

Ziggo, with central offices in Utrecht, is the largest cable
operator in the Netherlands. For FY2011, the company reported
approximately EUR1.48 billion in revenue and EUR835 million in
reported EBITDA.


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R U S S I A
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AVTOVAZ JSC: Fitch Affirms 'B- Long-Term Issuer Default Ratings
---------------------------------------------------------------
Fitch Ratings has affirmed JSC AvtoVAZ's Long-term foreign and
local currency Issuer Default Ratings (IDR) at 'B-'.  The agency
has also affirmed AvtoVAZ's Short-term foreign and local currency
IDRs at 'B' and National Long-term rating at 'BB(rus)'.  Fitch
has upgraded the foreign and local currency senior unsecured
rating to 'B-' Recovery Rating 'RR4', from 'CCC', Recovery Rating
'RR5'.  The Outlooks on the Long-term ratings are Stable.

Fitch notes AvtoVAZ's operational results continued to improve in
2011 alongside with the strong ca. 40% Russian car market growth
in 2011.  AvtoVAZ's sales in 2010-2011 strongly benefited from
governmental measures to support the local car market, including
scrapping incentives for old cars and subsidizing of interest
rates under car loans, which lasted until late 2011.

Fitch assesses the medium-term outlook for Russian car market
positively, supported by relatively low passenger cars per capita
compared with developed economies, expected 2012-2014 Russian GDP
growth above the global average as well as further development of
the car loan market.  Russia's accession to WTO would have a
limited impact on local car producers due to the relatively small
immediate import duties decrease until 2015 and intensified
competition between local car producers.

The ratings are underpinned by direct governmental support, which
remains crucial for AvtoVAZ, whose standalone credit profile is
extremely weak.  Throughout H209-2010 AvtoVAZ has obtained
RUR75bn of interest-free loans from Russian Technologies (RT, not
rated), a Russian state corporation.  In mid-2010, RT, Renault
('BB+'/Stable) and Nissan ('BBB-'/Stable) principally agreed to
jointly contribute to the issuer's capital.  So far, RT
contributed RUR12.6bn via debt-to-equity swap while Renault and
Nissan transferred RUR4.4bn in capex and technologies.  Further
contributions could occur in 2012.

Fitch believes that AvtoVAZ will further benefit from increased
cooperation with Renault, which currently owns 25% of the
company's share capital, and Nissan.  AvtoVAZ's upgrade of its
model range is on track, with a new Granta model launched in
November 2011 and other models based on Renault's 'B0' platform
to be launched in 2012-2013.  Other areas of cooperation include
joint purchasing and quality check.

AvtoVAZ's production capacity should also benefit from the
acquisition of the former IzhAvto plant in Q411 for RUR1.7
billion, but the impact on AvtoVAZ's profitability will be
moderate and take time to accrue.  The plant already produces
AvtoVAZ's 'Classic' models and should assemble other models from
AvtoVAZ, Renault and Nissan once the plant is upgraded
accordingly.

Fitch expects revenue to grow by ca. 30% in 2011 but to decrease
by about 5% in 2012 due to the payback effect of governmental
industry stimulating programs ending in 2011.  Throughout 2012-
2015, Fitch expects AvtoVAZ to show moderate one-digit EBITDAR
and CFO margins.  Fitch expects FCF margins to remain negative
due to significant investment activities.  Deleveraging in 2012
as a result of the continued equity contribution would be
followed by leveraging in further two years, with net adjusted
debt to EBITDAR being above 4.0x until 2014.

The two members of the Renault-Nissan alliance have announced
that they will increase their combined stake in AvtoVAZ to a
majority one in H112.  This should enable further cooperation
between AvtoVAZ and the Renault/Nissan alliance, ultimately
strengthening AvtoVAZ's industrial process, capacity utilization
and profitability in the long term.

A positive rating action could be driven by a sustained
improvement in profitability and FCF generation.  The acquisition
of a controlling stake in the company by Renault and Nissan could
also have a positive effect on AvtoVAZ's credit profile, although
it may not lead to an immediate positive rating action, as
benefits could take time to accrue.  A lower level of direct
and/or indirect support from either the Russian government or
Renault and Nissan could result in a negative rating action.


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U N I T E D   K I N G D O M
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FOUR SEASONS: Healthcare Expects to Repay Debt by Deadline
----------------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that Four Seasons
Healthcare, the U.K.'s largest care-home operator, said it was
confident of concluding a deal that would see existing debt
holders repaid in full by a September deadline.

Four Seasons Health Care -- http://www.fshc.co.uk/-- is one of
the largest care home (nursing home) operators in the UK.  The
company runs some 300 nursing homes, and its Huntercombe division
operates about eight specialized health care centers (which
provide mental health and rehabilitation services) in England,
Scotland, North Ireland, and the Isle of Man.  Allianz Capital
Partners, the private equity arm of Allianz Group, acquired the
company from Alchemy Partners for GBP775 million in 2004.


PORTSMOUTH FOOTBALL: Ex-Owner Prepared to Prevent Liquidation
-------------------------------------------------------------
Pascal Lemesre at Sports Mole reports that former Portsmouth
Football Club owner Balu Chainrai has said that he is prepared to
take up ownership of the club again if it prevents liquidation.

The club, also known as Pompey, is in danger of extinction but
Mr. Chainrai, who sold the South Coast club to Convers Sports
Initiatives (CSI) last year, is ready to meet administrator
Trevor Birch for crisis talks, says Sports Mole.

"I will definitely make efforts to become a reluctant owner,
again, until a proper owner can be found," the Hong Kong-based
businessman told Sky Sports News, according to Sports Mole.  "I
will do my best not to allow him (Birch) to liquidate the club."

"I have to sit down and see if the administrator is going to
contact me and tell me how much money is required for me to make
my calculations to see whether I would be prepared to put in what
is required," Mr. Chainrai, as cited by Sports Mole, added.

Sports Mole relates that Mr. Birch, in response to Mr. Chainrai's
comments, said that he would be "more than happy" to meet the 52-
year-old and he was "working day and night" to save Portsmouth.

As reported in the Troubled Company Reporter-Europe on Jan. 26,
2012, The Financial Times related that Portsmouth Football Club
has been issued a winding-up order by Revenue & Customs over an
unpaid GBP1.6 million tax bill.  The move plunges the
Championship side into a fresh survival battle, two years after
it became the first Premier League club to go into
administration, according to FT.  Portsmouth FC's future fell
into uncertainty when owner Vladimir Antonov, a Russian
businessman with banking assets, was arrested in November in
central London at the request of Lithuanian authorities
investigating fraud and money laundering, FT noted.

                     About Portsmouth Football

Portsmouth Football Club Ltd. -- http://www.portsmouthfc.co.uk/
-- operated Portsmouth FC, a professional soccer team that plays
in the English Premier League.  Established in 1898, the club
boasted two FA Cups, its last in 2008, and two first division
championships.  Portsmouth FC's home ground is at Fratton Park;
the football team is known to supporters as Pompey.  Dubai
businessman Sulaiman Al-Fahim purchased the club from Alexandre
Gaydamak in 2009.  A French businessman of Russian decent,
Gaydamak had controlled Portsmouth Football Club since 2006.


RANGERS FOOTBALL: SPL Mulls Penalties, Points Deductions
--------------------------------------------------------
Mark Guidi at DailyRecord.co.uk reports that Scottish Premiere
League (SPL) clubs are drawing up a blueprint of financial
penalties and points deductions for Rangers Football Club should
the club shut down and reform as a new company.

DailyRecord.co.uk notes that with the Rangers having to save
GBP1 million a month to stay afloat, there is growing concern
inside Ibrox that liquidation is edging closer.

If the club go bust but start up again under a name such as
Rangers 2012, the newco would need to acquire the SPL license
from the administrators, according to the report.

A new Rangers would also need the SPL's approval to get back into
the top flight, the report relates.

That decision would be down to the six-man SPL board of Ralph
Topping (chairman), Neil Doncaster (chief executive), Eric Riley
(Celtic), Derek Weir (Motherwell), Steven Brown (St Johnstone)
and Stephen Thompson (Dundee United).  All of them, apart from
Doncaster, are due to stand down in July but can be re-elected,
DailyRecord.co.uk reports.

As reported by the Troubled Company Reporter-Europe, BBC News
related that Rangers appointed administrators on Feb. 14, with
Her Majesty's Revenue and Customs pursuing an unpaid GBP9 million
tax bill accrued since owner Craig Whyte assumed control at Ibrox
last May.

                      About Rangers Football Club

Rangers Football Club PLC -- http://www.rangers.premiumtv.co.uk/
-- is a United Kingdom-based company engaged in the operation of
a professional football club.  The Company has launched its own
Internet television station, RANGERSTV.tv.  The station combines
the use of Internet television programming alongside traditional
Web-based services.  Services offered include the streaming of
home matches and on-demand streaming of domestic and European
games, which include dedicated pre-match, half-time and post-
match commentary.  The Company will produce dedicated news
magazine and feature programs, while the fans can also access a
library of classic European, Old Firm and Scottish Premier League
(SPL) action.  Its own dedicated television studio at Ibrox
provides onsite production, editing and encoding facilities to
produce content for distribution on all media platforms.


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


* Sovereign Downgrades Key to European Bond Rating Migration
------------------------------------------------------------
Over the last four years, sovereign downgrades have been the
principal driver of covered bond rating actions in Europe, says
Moody's Investors Service in a new Special Comment published on
March 5, 2012, with covered bond ratings downgraded by over four
notches, on average, in downgraded sovereigns.

"In contrast to the performance of covered bond ratings in
downgraded sovereigns, bond ratings in sovereigns whose ratings
have remained stable have experienced an equivalent migration
that is less than half a rating notch," says Volker Gulde, a
Moody's Vice President and senior analyst.

"Sovereign downgrades may affect covered bond ratings both
directly and indirectly. The direct relationship acts to lower
the TPIs, thereby limiting the uplift from which a covered bond
rating may benefit, over and above the issuer rating; whereas,
indirectly, sovereign downgrades typically lead to issuer
downgrades," explains Mr. Gulde. Moody's notes that a weaker
sovereign implies that the government and financial institutions
of that country may be less able and/or willing to provide or
obtain funds to support the refinancing of covered bonds after an
issuer default.

This report covers the universe of covered bond programs that
Moody's rates (as of the start of 2008). For these programs, the
rating agency measured the rating migration of the covered bonds,
their issuers, and the sovereigns in which the issuers are
located. The report covers rating migration between January 1,
2008 up to February 6, 2012.

Over that timeframe, the rating migration of covered bonds issued
in sovereigns with stable ratings has been limited to less than
half a rating notch, on average. However, the ratings of the
issuers supporting the covered bonds were downgraded by more than
two notches, on average. In sharp contrast, Moody's says that the
ratings of covered bonds in downgraded sovereigns have been
downgraded by an average of just over four notches.

Overall, covered bond and issuer rating migration is more closely
aligned in downgraded sovereigns than in sovereigns with stable
ratings. Moody's says that the percentage of downgraded covered
bonds in downgraded sovereigns is 65%, significantly higher than
the 22% of covered bonds downgraded in sovereigns with stable
ratings.

Moody's report, entitled "European Covered Bonds: Sovereign
Downgrades Key to Bond Rating Migration", is available on
www.moodys.com.


                            *********

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 * * *