TCREUR_Public/120412.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Thursday, April 12, 2012, Vol. 13, No. 73

                            Headlines



G E R M A N Y

SCHLECKER: In Talks with Three Front-Runners


G R E E C E

* GREECE: Private Creditors to Take Part in Debt Restructuring


H U N G A R Y

BKV: Averts Bankruptcy After Banks Sign "Stand Still" Deal


I R E L A N D

HEMCON MEDICAL: Files for Chapter 11 After $34MM Patent Suit Loss
MILFORD INN: Goes Into Liquidation; Up to 55 Jobs Set to Go


L A T V I A

BALTIJAS AVIACIJAS: airBaltic's Bid to Join BAS Insolvency Denied


R O M A N I A

RHS COMPANY: Bucharest Court Approves Insolvency Proceedings


R U S S I A

EVRAZ GROUP: Moody's Rates Proposed Sr. Unsecured Notes '(P)B1'
EVRAZ GROUP: Fitch Affirms 'BB-' Long-Term Issuer Default Rating


S P A I N

AYT SA NOSTRA: Fitch Raises Rating on Class D Notes From 'BBsf'


T U R K E Y

ERDEMIR: Moody's Raises Corp. Family Rating to B1; Outlook Stable


U N I T E D   K I N G D O M

ANNANDALE AND ESKDALE: Collapse Cost Council More Than GBP125,000
BIRCHENDALE FURNISHERS: Shuts Business; To Go Into Liquidation
DARLINGTON FOOTBALL: To Present CVA Proposal to Creditors in May
JJB SPORTS: Dick's Sporting Goods, Bank of Scotland Inject Funds
RANGERS FOOTBALL: Manager Holds Talks with American Bidder


X X X X X X X X

* Moody's Says Europe Exposure Won't Affect Asian Corp. Ratings
* Upcoming Meetings, Conferences and Seminars


                            *********


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G E R M A N Y
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SCHLECKER: In Talks with Three Front-Runners
--------------------------------------------
Julie Cruz at Bloomberg News, citing Welt, reports that Schlecker
is holding talks with three front-runners out of six "serious"
bidders.

According to Bloomberg, Welt said that one of the three front-
runners is east European financial investor Penta Investments.

As reported by the Troubled Company Reporter-Europe on March 20,
2102, Reuters related that Schlecker aims to find an investor by
the end of May.  Unlisted Schlecker filed for insolvency in
January after struggling to secure funds against a gloomy
economic backdrop, Reuters recounted.  The company, which owes
suppliers including Unilever and Procter & Gamble several hundred
million euros, plans to cut about 12,000 jobs and shut more than
2,000 of its 5,400 stores, Reuters disclosed.

Schlecker is a German drugstore chain.


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G R E E C E
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* GREECE: Private Creditors to Take Part in Debt Restructuring
--------------------------------------------------------------
FOCUS News Agency, citing Le Figaro, reports that almost 100% of
the private creditors will take part in the restructuring of the
Greek debt.

According to FOCUS, the Institute of International Finance, which
joins the big banks and world financial institutions, expects
that the participation of the private creditors in the procedure
of the debt swap will reach around 96%.

The private holders of Greek debt have a deadline until April 20
to decide and announce their participation, FOCUS discloses.


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


BKV: Averts Bankruptcy After Banks Sign "Stand Still" Deal
----------------------------------------------------------
The Budapest Times reports that Budapest City Council
spokesperson Maria Szucs Somlyo said on Wednesday BKV has been
saved from bankruptcy after Mayor Istvan Tarlos signed a "stand
still" agreement with banks.

According to the Budapest Times, Ms. Somlyo said that the
agreement, with nine banks and valid only for three months,
allows the refinancing of HUF63.1 billion (EUR212.88 million) of
debt expiring this year with guarantees by the city and the
state.

The city council voted to guarantee BKV's debt in full and to
provide an additional HUF5 billion (EUR16.87 million) in owner
support at a closed meeting on March 26, the Budapest Times
relates.  The central government published a decree on Tuesday
that gives a state guarantee for loans up to HUF63.1 billion, up
from a previous pledge of state guarantee for HUF40 billion
(EUR135 million), the Budapest Times discloses.

Parliament earlier voted to release a previously allocated but
blocked HUF32 billion (EUR108.03 million) subsidy package to BKV,
on condition that the amount of state support be matched by the
city council and that a long-term financing plan ensuring the
sustainability of the transport company be drawn, the Budapest
recounts.

According to the Budapest Times, daily Nepszabadsag wrote that
under the agreement with the banks BKV will only need to pay the
interest in the coming months.

Mr. Somlyo added that the main elements of the financing plan
have been agreed with state secretary Mihaly Varga and Minister
of State for Public Finance Gyoergy Naszvadi but the details have
not yet been finalized, the Budapest Times relates.

BKV, the Budapest Times says, has been on the brink of bankruptcy
for months while city and state collided over the responsibility
for financing the company.

BKV is Budapest's public transport company.


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I R E L A N D
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HEMCON MEDICAL: Files for Chapter 11 After $34MM Patent Suit Loss
-----------------------------------------------------------------
HemCon Medical Technologies, Inc., filed a Chapter 11 bankruptcy
petition (Bankr. D. Ore. Case No. 12-32652) on April 10, 2012,
estimating up to $50 million in assets and liabilities.

The Debtor on the Petition Date filed expedited motions to, among
others, pay prepetition wages and benefits of employees, and use
cash collateral.  A preliminary hearing was scheduled April 12 at
1:00 p.m.

The Debtor said it is in immediate need to obtain bankruptcy
court approval of its first day motions in order to continue to
conduct its business in the ordinary course.  The Debtor said it
will suffer immediate and irreparable harm if it is not
authorized to obtain the relief requested in its first day
motions in order to assure its creditors, employees, tenants and
customers that it will be able to continue its business
operations in the ordinary course and pay all postpetition
obligations as and when they become due.

Judge Elizabeth L. Perris presides over the case.

The U.S. Trustee will convene a meeting creditors under 11 U.S.C.
Sec. 341(a) on May 15, 2012 at 1:30 p.m.

Attorneys at Tonkon Torp LLP represent the Debtor.

                     Patent Infringement Suit

According to a press release by the company, the filing comes
after an en banc decision by the U.S. Court of Appeals for the
Federal Circuit on March 15, 2012, which affirmed an award of
$34.2 million in damages to Marine Polymer Technologies Inc. in a
patent infringement case initiated in 2006.

"Chapter 11 gives us the best opportunities to maximize the value
of HemCon and to continue to conduct business operations while we
restructure debt, costs and other obligations," said Nick Hart,
HemCon's President and Chief Financial Officer.  "In addition,
HemCon is planning on filing a petition to request that the CAFC
rehear its 5-5 decision on claim construction, in the patent
infringement case."

During the past year, HemCon reformulated its chitosan-derived
product line, branded as HemCon(R) PRO products. The HemCon PRO
chitosan-derived product line has been successfully introduced in
the U.S. and is approved for European and Japanese distribution,
allowing for uninterrupted supply of product. Similarly, HemCon
will continue supporting the recently introduced GuardaCare(R)XR
Surgical product, as well as all of its other product lines
including HemCon Patch(R) PRO and ChitoGauze(R) PRO.

HemCon anticipates commencing Phase II clinical trials in June
for its U.S. Army-funded Lyophilized Plasma product (LyP).  The
U.S. military believes that early administration of plasma has an
important role in reducing battlefield mortality rates, and sees
this program as a top research and development priority.

HemCon's European subsidiary is not subject to the Chapter 11
proceedings and will continue to operate as previously, selling
its oxidized cellulose-based products including GuardIVa(R)
Antimicrobial Hemostatic IV Dressing, Synaero(TM) Hemostatic Gel,
and the consumer products line.

                       About HemCon Medical

HemCon Medical Technologies, Inc. -- http://www.hemcon.com/--
founded in 2001, develops, manufactures, and markets innovative
technologies that control bleeding resulting from trauma or
surgery.  HemCon products are designed for use by military and
civilian first responders as well as medical professionals in
hospital, dental and clinical settings where rapid control of
bleeding is of critical importance.  HemCon is headquartered in
Portland, Ore., with additional commercial operations in Ireland
and the Czech Republic.

The Debtor currently has 43 employees, with an average payroll of
approximately $142,000 per pay period.


MILFORD INN: Goes Into Liquidation; Up to 55 Jobs Set to Go
-----------------------------------------------------------
Donegal Democrat reports that the Milford Inn in Donegan has gone
into liquidation.

Donegal Democrat relates that the hotel, which operates under the
Best Western brand and is part of the Blaney Group, was forced to
close due to financial difficulties.  Up to 55 jobs are set to
go, the report says.

A creditors meeting has been provisionally scheduled for The
Silver Tassie on Tuesday, April 17, 2012.


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


BALTIJAS AVIACIJAS: airBaltic's Bid to Join BAS Insolvency Denied
-----------------------------------------------------------------
The Baltic Course reports that the Riga District Court has turned
down a request from Latvian national airline airBaltic, its
former CEO Bertolt Flick, and Veriko Ltd. to participate as
interested parties in the insolvency case against the former
private shareholder of airBaltic - Baltijas Aviacijas sistemas
(BAS).

The court's ruling cannot be appealed, the report says.

The Baltic Course, citing LETA, also reported that the Riga
District Court decided to call a recess to decide whether Mr.
Flick and both companies can be considered as interested parties.

The report notes that the insolvency case was initiated following
an insolvency petition filed by Eurobalt Junipro Ltd.  The Riga
District Court received the claim from the Riga Municipal Court
last month and submitted it for review to Judge Madara Abele,
according to The Baltic Course.

Another insolvency case against BAS, which was previously filed
by Finansu restrukturizacijas risinajumi Ltd., was added to this
case, the report notes.

Baltijas Aviacijas Sistemas is the private shareholder of the
Latvian national airline airBaltic.


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


RHS COMPANY: Bucharest Court Approves Insolvency Proceedings
------------------------------------------------------------
Romania Insider reports that the Bucharest court approved the
start of insolvency procedures for RHS Company.

The insolvency request was filed by the company, and, according
to its lawyers, is not due to a lack of profitability, says
Romania Insider.  The move is instead a way for the company to
access frozen accounts and stay in business amid suspicion of a
EUR22.2 million fraud at RHS and competitors Scop Computers and
Romsoft, the report notes.

According to the report, Romania's Fiscal Administration (ANAF)
seized the accounts of RHS Company, believing services were
bought from a 'phantom' company to deduct the VAT.  Romsoft,
according to Romania Insider, is suspected to have done the same.
The VAT was of some EUR22.2 million, but RHS appealed the tax
administration decision in court, relates Romania Insider.

"The insolvency does not get in the way of the measures taken by
ANAF, considering that there is no court order to confirm the tax
debt and that tax administration decision had been appealed. It
is simply the only way for the company to stay in business, which
clearly benefits the 200 employees, the state budget and the IT
market," the report quotes lawyer Remus Borza, who coordinates
Euro Insol, the judiciary administrator for the IT company, as
saying.

RHS Company is an IT distribution firm.  The company RHS was set
up in 1999 by Romanian businessman Dragos Alexandru Popescu.


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R U S S I A
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EVRAZ GROUP: Moody's Rates Proposed Sr. Unsecured Notes '(P)B1'
---------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)B1 rating
to the proposed US dollar-denominated senior unsecured notes to
be issued by Evraz Group S.A. The maturity, the size and the
pricing of the notes are subject to prevailing market conditions
during placement. The outlook on the rating is stable.

Moody's issues provisional ratings in advance of the final sale
of securities and these reflect Moody's credit opinion regarding
the transaction only. Upon a conclusive review of the final
documentation Moody's will endeavor to assign definitive ratings
to the proposed senior unsecured notes. Definitive ratings and
assigned LGDs may differ from provisional ones.

Ratings Rationale

"Moody's assignment of the (P)B1 (LGD 5, 73%) rating to the new
senior unsecured notes, which is one notch below the company's
Ba3 corporate family rating (CFR) reflects the instrument's
relative position in the capital structure of Evraz and that the
notes will be: (i) structurally subordinated to other unsecured
indebtedness of operating companies of the group, currently
representing 22% of the group's total debt; (ii) used to
refinance Evraz's existing indebtedness; and (iii) senior
unsecured and have pari passu ranking with other unsecured
obligations of Evraz," says Steve Oman, a Moody's Senior Vice
President and lead analyst for Evraz.

While the strategic goal is to obtain refinancing for maturities
in the second quarter of 2013, after the placement Evraz will use
the proceeds from the proposed issuance to repay a portion of its
outstanding debt.

Evraz's Ba3 CFR is supported by its strong market share in long
steel products, cost-efficient asset base, vertical integration
into iron ore and coal, and end-market and global
diversification. These attributes have made the company a stable
performer over the last few years, especially in terms of
generating stable and solid free cash flow, which has enabled it
to steadily reduce debt. As a result, key credit metrics have
moved in a positive direction. Moody's expects the company's good
profitability and stability to hold in 2012 even if the markets
for steel and related raw materials soften. The company targets
financial leverage, measured by net debt/12-month EBITDA, to less
than 2.5x.

The rating remains constrained by somewhat high leverage and weak
debt protection measures, the potential for relatively high
levels of capital investments as the company moves to increase
its output of coal and iron ore and continues to expand or
upgrade its steel-making assets, and the cyclicality of the steel
industry, which has weakened globally since mid-2011 and may
remain relatively soft during first half of 2012. In addition,
the rating considers the fact that the economic, operating and
legal framework in Russia is still in development.

The stable rating outlook reflects the company's solid operating
performance, the relative robustness of its primary end-markets,
and a strong liquidity profile with manageable debt maturities
over the next year. Evraz's corporate family rating could be
upgraded if it were to sustainably achieve gross leverage of less
than 2.0x, continue to generate positive free cash flow, and
maintain its good short-term liquidity position. Evraz's rating
could come under pressure if its gross leverage exceeds 3.0x or
its ratio of free cash flow to debt is below 5% for what is
expected to be a sustained period of time, if it embarks on a
program of high dividends or share buybacks, or if its liquidity
sources are not able to fund debt maturing over the next 12
months.

Last Rating Action & Principal Methodology

The principal methodology used in rating Evraz was the Global
Steel Industry Methodology published in January 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.

Evraz is one of the largest vertically integrated steel, mining
and vanadium companies with operations in Russia, Ukraine, North
America, Europe and South Africa. In 2011, Evraz produced 16.8
million tonnes of crude steel and sold 15.5 million tonnes of
rolled products, had revenue of US$16.4 billion, and generated
reported EBITDA of US$2.9 billion.

Evraz's principal assets are steel plants in Russia, Europe,
North America, South Africa and Ukraine, and, located
predominantly in Russia, iron ore and coal mining facilities as
well as logistics and trading assets. It is essentially 100%
self-sufficient for iron ore and 56% self-sufficient for coking
coal. It has a number of investment projects underway to raise
its output of iron ore and coal and to increase its steel-making
capabilities.

Lanebrook Ltd and its affiliates hold 75.1% of the share capital
of the group. The rest of the share capital is free float.


EVRAZ GROUP: Fitch Affirms 'BB-' Long-Term Issuer Default Rating
----------------------------------------------------------------
Fitch Ratings has affirmed Evraz Group S.A.'s (Evraz) Long-term
foreign currency Issuer Default Rating (IDR) at 'BB-', with a
Stable Outlook, Short-term foreign currency IDR at 'B', senior
unsecured rating at 'BB-' and has assigned an expected 'BB-(exp)'
rating to Evraz's prospective Eurobond issue.

Evraz plans to use net proceeds from the notes for refinancing
purposes.  Fitch will assign the notes a final rating upon
closure and receipt of final documentation materially conforming
to the information reviewed.

Evraz, having 100% self-sufficiency in iron ore and 56% in coking
coal (without OAO Raspadskaya, 'B+'/Stable), is better placed to
control the cost base of its upstream operations than steelmakers
with a lower level of vertical integration.  The cash cost of
slab production at Evraz's Russian steel mills is approximately
25% lower than the global average.  This resulted in the full
capacity utilization rate of the company's steelmaking facilities
in Russia.

Russia continues to be the largest regional market for Evraz (40%
of revenues in 2011), where the company is focusing mainly on
long products' sales.  Fitch views demand driving factors for
steel products in Russia, including long products, as strong.  In
2011, after two years of stagnation, the intensification of
construction activity was noted - 62.3m sq.m. of residential
houses were built, 6.7% higher yoy, and the apparent demand for
long products increased by more than 20% vs. 2010 yoy.

Taking into account the continuing increase of real disposable
income of Russian households (by more than 50% in 2011 vs. 2005),
the quite poor quality of existing housing and the development of
mortgage lending along with the lowest mortgage loans to GDP
ratio in Europe (in 2010 approximately RUB713bn of new mortgage
loans were issued, 88% higher vs. 2010), the agency expects
demand for new housing to continue to grow in 2012. This will
stimulate demand for long steel products.

Evraz, controlling more than 30% of long products production
capacity in Russia, is the main beneficiary of the expected
demand growth.  In 2011 Evraz sold 4.9m tons of construction
steel products in Commonwealth of Independent States (CIS, a
grouping of former soviet republics), 12% higher compared with
2010 yoy.  This also contributed to the improvement of the
product mix of Evraz's CIS mills -- the portion of semi-finished
products in revenue has decreased to 26% compared with 34% in
2010.

Evraz is the only Russian producer of rails and is the second
largest supplier of wheels with 30% of domestic market share.
Taking into account that the main portion of rail products is
directed for maintenance, the demand is quite stable through the
cycle.

The company's liquidity position is healthy, with USD626 million
of short-term loans compared with USD803 million of cash on hand,
USD562 million of unutilized committed bank loans and an expected
positive free cash flow margin in 2012.

During 2011, the company continued deleveraging.  Funds from
operations (FFO) adjusted gross leverage decreased to 2.3x at
end-2011 compared with 3.0x at end-2010.  The conversion of
USD650 million convertible notes into equity and the improvement
of working capital management were among the contributing factors
for deleveraging.  Fitch expects the increase of FFO adjusted
gross leverage to 3.3x-3.5x by end-2012 with it deleveraging to
2.0x-2.2x by end-2014.

Fitch notes the progress in the company's corporate governance
practices.  A new holding company of the group incorporated under
UK law, EVRAZ plc, received admittance to the London Stock
Exchange plc (LSE) in Q411, which means that the company complies
with the LSE's admission and disclosure standards.  Also, the
independent directors have a majority in all of EVRAZ plc's board
committees.

The ratings are supported by Fitch's expectations of positive
free cash flow generation over the medium term.  Evraz's ratings
remain constrained by its large Russian operational base, which
exposes it to higher than average political, business and
regulatory risks.

The deterioration of its financial and operational profile
resulting in an EBITDAR margin below 15% and FFO adjusted gross
leverage above 3.5x on a sustained basis would put negative
pressure on the ratings.  Conversely, further deleveraging to FFO
adjusted gross leverage below 2.0x with an EBITDAR margin above
20% on a sustained basis would put positive pressure on the
ratings.


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S P A I N
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AYT SA NOSTRA: Fitch Raises Rating on Class D Notes From 'BBsf'
---------------------------------------------------------------
Fitch Ratings has upgraded AyT Sa Nostra Financiacion I, FTA's
class C and D notes, as follows:

  -- EUR2.9 million class A notes rated 'AAAsf'; maintained on
     Rating Watch Negative (RWN)

  -- EUR11.9 million class B notes rated 'AAsf'; maintained on
     RWN

  -- EUR6.1 million class C notes upgraded to 'BBB+sf' from
     'BBBsf', Outlook Negative

  -- EUR4.5 million class D notes upgraded to 'BBBsf' from
     'BBsf', Outlook Stable

The rating actions follow a review of the transaction's
performance.  The upgrades were driven by the transaction's good
performance, with low levels of delinquencies and defaults and
increased levels of credit enhancement.

Fitch notes that Confederacion Espanola de Cajas de Ahorros
(CECA) is the transaction's account bank, paying agent and swap
provider. Fitch placed the Class A and B notes on RWN as remedial
actions have not been fully implemented following CECA's
downgrade.

While remedial actions have been taken to mitigate the exposure
to the swap counterparty, Fitch understands that the issuer is
considering remedial actions to alleviate the increased
counterparty exposure regarding the bank account and paying
agent.  Fitch will continue to monitor the progress made towards
completion of the remedial actions and expects to resolve the RWN
within six weeks of the transaction's original placement on RWN
(03 April 2012).  Resolution of the RWN will depend upon the
implementation of appropriate remedial action, which could
potentially lead to the affirmation of the notes, while failure
to take such action could result in material downgrades.

The transaction is a securitization of a static pool of consumer
loans originated by Banco Mare Nostrum S.A.
('BBB'/Negative/'F3'), formerly known as Caja de Ahorros y Monte
de Piedad de Las Baleares, to pre-existing customers of the
saving bank who are residents in the Balearic Islands.  All loans
were originated via the saving bank's branch network.  The
transaction has been amortizing since closing and has amortized
74.6% of its original note principal balance.  Due to the notes'
sequential amortization, credit enhancement for the class A, B, C
and D notes has increased to 119.3%, 73.5%, 50.1% and 32.7% from
30.4%, 18.5%, 12.4% and 7.9%, respectively. Fitch believes the
current credit enhancement for the senior notes is sufficient to
mitigate the commingling risks in the near term.

The reserve account has remained at EUR7.9 million since closing,
which represents 7.9% of the notes' original principal balance.
The reserve fund has not amortized since the delinquency ratio is
at 2.91%, above the 1% trigger.  The deferral triggers for the
class B, C and D notes have not been breached and Fitch does not
expect them to be hit during the next year.

Overall, the transaction has performed better than Fitch's base
case expectation at closing.  All losses have been covered by
excess spread. Available excess spread after coverage of losses
has been on average 3.7%.


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T U R K E Y
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ERDEMIR: Moody's Raises Corp. Family Rating to B1; Outlook Stable
-----------------------------------------------------------------
Moody's Investors Service changed the corporate family rating
(CFR) and the national scale rating of Turkish steel producer
Erdemir to B1 and Baa2.tr, respectively, and changed the rating
outlook to stable.

Ratings Rationale

The upgrade was prompted by ongoing improvements in Erdemir's
operating performance and credit metrics in 2011 benefiting from
strong industrial activities in Turkey and steel prices that
increased approximately 32% in Turkish Lira (TRY). Higher
revenues and a continuation of strong operating margins,
approximately 19%, combined to produce record net income for the
company in 2011. A 58% increase in funds from operations, to
TRY2.1 billion, and the company's large cash balance enabled it
to fund significantly higher working capital and capex in 2011,
pay a TRY450 million dividend, and repay TRY1.8 billion of debt.
Reduced debt and improved earnings lowered adjusted debt/EBITDA
to 2.6x at December 31, 2011 compared to 4.0x at the end of 2010.

While Moody's believes that 2012 will be more challenging for
Erdemir due to continuing high raw material costs and slowing
economic growth in Turkey, the rating agency thinks Erdemir will
weather these challenges well and maintain solid credit metrics.
Although increasing capex and a relatively high dividend may
limit free cash flow generation in 2012, the company is expected
to maintain adequate liquidity over the next year.

The B1 CFR is supported by Erdemir's strong market position with
2011 market shares of around 36% in the Turkish flat steel market
and 5% in the long steel market as well as the ability to adjust
to changing steel markets by reducing output in a relatively
cost-effective manner, shifting production between flat and long
products, and shifting sales between domestic and export markets
in order to optimize profitability.

The B1 CFR also reflects the volatility of the steel industry,
industry overcapacity in the mature markets, capacity additions
within Turkey over the next two years, and Erdemir's relatively
high dependency on iron ore and coking coal supplied by third
parties, which could squeeze margins if prices for these raw
materials remain high relative to steel selling prices. In
addition, the company's production is primarily based in Turkey
where it operates two integrated steel plants in the cities of
Iskenderun and Eregli. This concentration of production exposes
Erdemir to some operational risks even though a potential full
business interruption of one entire site is unlikely given the
large size of the group's production facilities.

The stable outlook reflects relatively favorable economic
fundamentals for Turkey, good operating flexibility, and adequate
liquidity. The rating could be upgraded if the company maintains
debt/EBITDA below 3.0x and generates positive free cash flow
while improving its liquidity. The rating could come under
pressure if leverage were to increase above 4.0x on a sustainable
basis, retained cash flow was projected to be less than
maintenance capex on a recurring basis, or if liquidity was
deemed inadequate.

The principal methodology used in rating Erdemir was the Global
Steel Industry Methodology published in January 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.

Eregli Demir ve Celik Fabrikalari (Erdemir) is the largest steel
manufacturer in Turkey. Erdemir produces both flat and long steel
products, which are sold to the domestic (about 83% of sales) and
international markets. In 2011, it produced 7.7 million tonnes of
liquid steel. Erdemir is majority owned by Ordu Yardimlasma
Kurumu (Oyak), the Turkish private pension fund primarily serving
members of the Turkish Armed Forces (rated Ba2 stable). Erdemir
generated revenues of TRY8.9 billion (around US$5.3 billion) in
2011.

Moody's National Scale Ratings (NSRs) are intended as relative
measures of creditworthiness among debt issues and issuers within
a country, enabling market participants to better differentiate
relative risks. NSRs differ from Moody's global scale ratings in
that they are not globally comparable with the full universe of
Moody's rated entities, but only with NSRs for other rated debt
issues and issuers within the same country. NSRs are designated
by a ".nn" country modifier signifying the relevant country, as
in ".mx" for Mexico.


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U N I T E D   K I N G D O M
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ANNANDALE AND ESKDALE: Collapse Cost Council More Than GBP125,000
-----------------------------------------------------------------
BBC News reports that the collapse of the Annandale and Eskdale
Sports and Leisure Trust cost a council more than GBP125,000.

The group, covering the Annandale and Eskdale area of Dumfries
and Galloway, went into liquidation in 2010, BBC recounts.  At
that time, it owed the local authority nearly GBP400,000, BBC
discloses.

The council then decided to bring the service back in-house by
April 2010 and gave AESLT notice that its contract would not be
extended, BBC relates.

According to BBC, during the course of negotiations for the
return transfer, the trust raised an action seeking GBP1.9
million compensation from the authority for improvements to
facilities and investment in equipment.

That move was defended by the council and eventually dismissed in
court, BBC notes.

Liquidators were subsequently appointed by the trust in late 2010
and its debt to the authority estimated at GBP389,000, BBC
recounts.

It had cash balances of GBP280,000 and as a result of that, the
council received GBP246,000 from liquidators, BBC states.

Annandale and Eskdale Sports and Leisure Trust was set up in 1998
to run facilities in eastern parts of the region.


BIRCHENDALE FURNISHERS: Shuts Business; To Go Into Liquidation
--------------------------------------------------------------
This is Staffordshire reports that Birchendale Furnishers Ltd has
ceased trading and now faces liquidation, having run up debts
with creditors it could not pay back.

According to This is Staffordshire, The Sentinel reported how
Harsthill-based Gilberts had also suddenly gone out of business.

While a number of Gilberts' customers have been left out of
pocket after paying deposits, it is understood that Birchendale
completed all transactions with its customers before closing its
doors, This is Staffordshire relates.

This is Staffordshire says the company, which has made six
employees redundant, is now set to be liquidated on April 12.

"Debtors have called a meeting with shareholders and creditors to
put the company into liquidation," the report quotes Neil
Dingley, at liquidators Moore Stephens, as saying. "Birchendale
relocated to their current premises a few years ago, but the
current economic climate has made things very difficult for
them."

Birchendale is a furniture retailer based in Stoke on Trent &
Stafford.  Birchendale was founded in Porthill by Peter and Joan
Birch in 1976.


DARLINGTON FOOTBALL: To Present CVA Proposal to Creditors in May
----------------------------------------------------------------
Joe Willis at The Northern Echo reports that a provisional date
for a meeting to bring Darlington Football Club out of
administration has been revealed.

Administrator Harvey Madden is aiming to put the company
voluntary arrangement proposal before creditors on May 2, the
Northern Echo discloses.

The football club could then exit administration after a 28-day
cooling off period, the Northern Echo says.

While the meeting is later than had been hoped by fans, it is
likely the club would still avoid dropping down two divisions if
the CVA is agreed, the Northern Echo notes.

According to the Northern Echo, the club is already facing
relegation to the Conference North division, but needs to emerge
from administration having paid football creditors in full before
the league's annual meeting on June 9 to avoid dropping down a
further division.

Mr. Madden told the Northern Echo on April 10 he was waiting for
the final draft of the CVA proposal from DFC 1883.

Darlington Football Club -- http://www.darlington-fc.net/-- is
an English football team.


JJB SPORTS: Dick's Sporting Goods, Bank of Scotland Inject Funds
----------------------------------------------------------------
The Scotsman reports that American chain Dick's Sporting Goods
and Bank of Scotland are participating in the latest attempt to
save troubled JJB Sports in a scheme that could hand control of
the ailing British retailer to the US-based company.

JJB Sports, which has exclusive rights to sell merchandise for
Rangers Football Club, has received another GBP30 million capital
injection, after posting a pre-tax loss of GBP103.5 million for
last year, the Scotsman relates.

Dick's Sporting, which has 550 shops in America, will pump an
initial GBP20 million into the British sportswear retailer, most
of it in return for convertible notes, alongside a GBP10 million
investment from existing JJB shareholders, including America's
richest man Bill Gates, the Scotsman discloses.

Dick's Sporting has the option to put in another GBP20 million
next year.  Other investors could contribute GBP5 million, the
Scotsman notes.

If shareholders approve the deal, Dick's participates in both
funding rounds and it converts its paper into shares, this could
leave it with a 61% stake in JJB, the Scotsman says.

JJB, which has 180 stores, has extended a loan deal from Bank of
Scotland to take it up to 2015, according to the Scotsman.
Adidas is providing a loan of up to GBP15 million over two years
to fund the refit of JJB stores, the Scotsman states.

JJB Sports plc is a sports retailer supplying branded sports and
leisure clothing, footwear and accessories.


RANGERS FOOTBALL: Manager Holds Talks with American Bidder
----------------------------------------------------------
BBC News reports that Rangers manager Ally McCoist revealed he
has held discussions with the American bidder who is trying to
take Rangers Football Club out of administration.

Speaking after the 3-1 win against St. Mirren, Mr. McCoist, as
cited by BBC, said Bill Miller was "enthusiastic and extremely
positive."

Paul Murray's Blue Knights group and a Singapore consortium
believed to be fronted by Bill Ng have also got final offers on
the table for Rangers, BBC discloses.

Mr. McCoist feels there is reason to believe Rangers can avoid
liquidation, BBC notes.

According to BBC, that would be achieved by the successful
implementation of a company voluntary arrangement, where
creditors would receive a fraction of the amounts due to them.

Administrators Duff & Phelps last week released a document
charting the extent of Rangers' liabilities with debts of around
GBP55 million confirmed, potentially rising to GBP134 million,
BBC relates.

                   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
===============


* Moody's Says Europe Exposure Won't Affect Asian Corp. Ratings
---------------------------------------------------------------
Moody's Investors Service says exposure to Europe's economic
slowdown is not expected to result in rating changes for the vast
majority of rated corporates in Asia. This assessment is based on
a scenario in which European GDP declines by about 1% in 2012. A
more severe outcome in Europe would result in a reassessment of
the impact on Asian companies.

"Although many Asian countries rely on Europe for exports, most
of our Asian rated issuers are less exposed to conditions in the
euro area due to the domestic or regional focus of their
businesses," says Ping Luo, a Moody's Vice President and Senior
Analyst.

Luo was speaking at the release of a report titled "Exposure to
Europe Won't Affect Ratings of Most Asian Corporates," which she
co-authored together with Chris Park, Vice President and Senior
Credit Officer.

"Under our base case scenario of a mild euro area contraction of
up to 1% in GDP for 2012, exposure won't impact the ratings and
outlooks of most rated Asian firms, based on their European
revenues and assets, as well as borrowing from European banks,"
Luo adds.

Out of 217 rated issuers in Asia (ex-Japan), only 13 (6% of the
total) report 15% or more of their revenue as being derived from
Europe. Eight of these issuers (4%) report that over 25% of their
revenues are derived from the European market. In the report,
Moody's explains that reported revenues may understate the degree
of exposure of revenues to Europe. For example, reported sales to
Europe would not include sales of raw materials and intermediate
goods to non-European companies that become components of
finished goods sold to Europe.

Among the 13 issuers with reported revenues to Europe exceeding
15%, a few are facing increased rating pressure. Although
exposure to Europe is not the sole source of rating pressure, the
slowdown in Europe has exacerbated concerns for these firms,
particularly, BW Shipping (Ba1 negative) and LG Electronics (Baa2
negative).

The sectors that are more likely to be adversely impacted by
trends in Europe include consumer-electronics, semiconductors,
shipping, port operators, palm oil producers, steelmakers, and
chemical manufacturers. The more domestic or regionally focused
sectors, with limited exposure to a euro area recession include
utilities, property, telecommunications, consumer/retail,
construction, building materials, and media.

In terms of funding, many Asian issuers have improved their
liquidity since the last financial crisis of 2008-2009, and most
of them are well positioned to manage potential disruptions from
the deleveraging of European banks.

Moody's survey of rated issuers indicates that only 17 of them
have more than 10% of their outstanding debt with European banks,
excluding Hong Kong Shanghai Bank Corp and Standard Chartered
Bank. Of these, 10 have cash on balance sheet that is over 100%
of debt maturing in the next 12 months.


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

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

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

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

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

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

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

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


                            *********

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

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

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

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


                            *********


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

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

Copyright 2012.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$625 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 240/629-3300.


                 * * * End of Transmission * * *