TCREUR_Public/120504.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, May 4, 2012, Vol. 13, No. 89


C Z E C H   R E P U B L I C

CENTRAL EUROPEAN: Moody's Reviews' B3' CFR/PDR for Upgrade


CIMBER STERLING: Files for Bankruptcy; Cancels All Flights


PAGESJAUNES FINANCE: Fitch Rates Senior Secured Notes 'BB'


VORARLBERGER LANDES: Moody's Issues Summary Credit Opinion


ALLIED IRISH: Won't Be Able Pay EUR280MM Cash Dividend by May 13
SHAFIN DEVELOPMENTS: Deep in Debt, Goes Into Receivership


SCHMOLZ + BICKENBACH: Moody's Rates EUR300MM Sr. Sec. Notes (P)B1


GAZPROMBANK: Moody's Assigns '(P)Ba1' Subordinated Debt Rating
GLOBALTRANS INVESTMENT: Moody's Says MIT Buyout Credit Neutral
METALLOINVEST JSC: Moody's Says MIT Disposal Credit Neutral

U N I T E D   K I N G D O M

AQUASCUTUM: YGM Trading Enters Into Deal to Buy Business
CAITHNESS BEEF: Owner to Sue Bank of Scotland for GBP10MM
CITY SITE ESTATES: PwC Appointed as Receiver for Developer
ICICI BANK: Moody's Retains 'D' BFSR; Outlook Stable
MICRO ANVIKA: Creditors Back Company Voluntary Arrangement

PELICAN: Goes Into Receivership, Seeks Buyer
RANGERS FOOTBALL: Bill Miller Named Preferred Bidder
SCARLETS REGIONAL: Auditors Express Going Concern Doubt
SYNCORA HOLDINGS: Moody's Issues Summary Credit Opinion

* SCOTLAND: Number of Collapsed Firms Increases
* Dundas & Wilson's Verrill Joins Chadbourne's London Office


* Moody's Says Cost Inflation Hits EMEA Building Materials Sector
* BOOK REVIEW: Corporate Venturing -- Creating New Businesses


C Z E C H   R E P U B L I C

CENTRAL EUROPEAN: Moody's Reviews' B3' CFR/PDR for Upgrade
Moody's Investors Service placed Central European Media
Enterprises' (CME) ratings under review for upgrade. The ratings
affected by this review are the company's corporate family rating
("CFR", currently B3), its probability of default rating ("PDR",
currently B3), the senior unsecured notes ratings (currently
Caa1) and the senior secured notes rating (currently Ba3)
assigned at the CET21 level.

On April 30, 2012, CME announced that it had entered into a
series of agreements with its major shareholders, Time Warner
Inc. ("TW", rated Baa2) and Ronald Lauder, to enable CME to fund
tender offers to purchase up to an aggregate of US$300 million of
its outstanding notes. The broad terms of the proposed
transaction include: (i) the provision by TW to CME of a loan
facility (the "TW Loan") of up to US$300 million; (ii) a tender
offer for the full outstanding amount of the 2013 notes held by
third parties at par; (iii) buyback of the Euro equivalent of
US$170 million of the 2014 notes (at a price between 86% and 92%)
and the 2016 notes (at a price between 97% and 100%); (iv) the
conversion by TW of the TW loan into Class A shares within six
months of the initial drawing of that loan -- this conversion is
guaranteed by the put option held by CME which allows it to sell
Class A shares to TW at the end of the six months period.

Moody's review for upgrade is likely to be concluded at the time
of the completion of the tender offers and once the amount of
debt reduction is finalized, which Moody's expects to happen
before the end of Q2 2012. Moody's currently anticipates that the
review will result in a ratings upgrade of at least one notch.

Ratings Rationale

The successful completion of the proposed transactions would
result in a significant reduction in CME's Moody's adjusted
leverage ratio from 7.9x at the end of December 2011. In
addition, the transaction will see CME emerge with an improved
liquidity profile as the company will have no debt maturing until
the 2014 notes come due in May of that year. The decrease in debt
should also help CME in reversing the trend of producing negative
free cash flows.

As part of the review Moody's will assess CME's liquidity profile
following the transaction, as well as the evolution of the key
credit metrics. In particular, the review will focus on the
evolution of CME's leverage ratio under the premise that the TW
loan will be equitized within the stated timeframe, and not
refinanced through the issuance of new debt.

The review will also take into account the evolution of CME's
market share in the different geographies it operates in as well
as the company's performance over the first few months of 2012
and whether the positive trends in advertising seen in 2011
continue to drive recovery in the company's activities.

The principal methodology used in these ratings was the Global
Broadcast Industry Methodology published in June 2008.

CME, a Bermuda-incorporated company, is a media and entertainment
company with networks and content production units in six Central
and Eastern European countries: the Czech Republic, Romania,
Slovakia, Slovenia, Croatia and Bulgaria. Launched in 1994, CME
currently operates 30 TV channels in those countries. In the year
ended December 31, 2011, CME reported net revenues of US$865
million and OIBDA of US$167 million.


CIMBER STERLING: Files for Bankruptcy; Cancels All Flights
Lennart Simonsson at Deutsche Presse-Agentur reports Cimber
Sterling on Thursday filed for bankruptcy, cancelling all its
flights with immediate effect.

According to DPA, the company management related in a statement
that the owners had "decided not to support the company
financially any longer."

Danish news agency Ritzau reported that the administrator,
Lise Bo Larsen, had no immediate information on how many
passengers were stranded abroad, DPA relates.

Chief Executive Jan Palmer, as cited by DPA, said management was
to work with the administrator and would propose that the airline
continue to operate four aircraft on regional routes it is
operating for the airline SAS.

Investment group Mansvell Enterprises, controlled by Ukrainian
businessman Igor Kolomoisky, took over the loss-making airline in
August, DPA recounts.

According to its latest financial report, its operating loss
was DKK81.5 million (US$14.4 million), DPA discloses.

The Board of Directors has decided to declare the company
bankruptcy and a declaration of bankruptcy is handed over
to the court of Sonderborg Thursday morning.  The management team
of the company said that it is highly sorry that this is the
outcome of several months of intense work ensuring a turn around
but the management will be fully supportive for the
curator the coming days to ensure as much value as possible in
the company.

"It is highly sorry the Board of Directors has been forced to
take the decision to declare the company bankruptcy.  The Board
of Directors and the management team has worked intensely to
ensure a turn around of the company for several months but
unfortunately we did not succeed before we ran out of time.
It was simply not possible to change the direction of the company
as fast as needed and thereby in due time deliver the necessary
financial results," says Jan Palmer, CEO in Cimber Sterling and

"The management team will work closely together with curator to
ensure as much value as possible in the company and to continue
as much of the operation as possible under a reconstruction of
the company.  It is our proposal to curator that we for a start
and as a minimum continues to fly four aircrafts on the
regional routes that the company are operating for SAS. At the
same time, we will suggest that we together with curator explores
the possibilities to operate more aircrafts and thereby ensure as
much value as possible for a possible buyer".

The court of Sonderborg will point out one or more curators that
will handle the company going forward.  Curator will handle the
company and the communication going forward as the management
team formally will has stop working as the declaration of
bankruptcy is handed over.

"It is a day of sorrow for Danish aviation, for Cimber Sterling
and for me personally.  But it is not at least sad for all the
passengers that at this moment have worthless tickets and lost
expectations.  And it is highly sad for a lot of employees that
risk losing their job," says Jan Palmer.

He continues, "It is the expectation that a plan can be drafted
within the next three days concerning the future of the company
activities. Unfortunately in situations like these there will be
a lot of loose ends that have to meet.  Therefore we will work
intensely on all options the coming days".

Cimber Sterling is a Danish budget airline.


PAGESJAUNES FINANCE: Fitch Rates Senior Secured Notes 'BB'
Fitch Ratings has assigned PagesJaunes Finance & Co S.C.A.'s
senior secured notes a final 'BB' rating with a Recovery Rating
(RR) of 'RR2'.  Fitch has simultaneously affirmed PagesJaunes
Groupe S.A.'s Long-term Issuer Default Rating (IDR) at 'B+'.  The
Outlook on the Long-term IDR is Negative.

This follows the receipt of the final description of the notes
and the confirmation that their proceeds were used to repay the
Term Loan A2.


VORARLBERGER LANDES: Moody's Issues Summary Credit Opinion
Moody's Investors Service issued a summary credit opinion on
Vorarlberger Landes- und Hypothekenbank AG and includes certain
regulatory disclosures regarding its ratings.  The release does
not constitute any change in Moody's ratings or rating rationale
for Vorarlberger Landes- und Hypothekenbank AG and its

Moody's current ratings on Vorarlberger Landes- und
Hypothekenbank AG and its affiliates are:

Senior Unsecured (domestic and foreign currency) ratings of A1

Senior Unsecured MTN Program (domestic currency) ratings of (P)A1

Long Term Bank Deposits (domestic and foreign currency) ratings
of A1

Bank Financial Strength ratings of D+

Subordinate MTN (domestic currency) ratings of (P)A2, on review
for downgrade

Short Term Bank Deposits (domestic and foreign currency) ratings
of P-1

BACKED Senior Unsecured (domestic and foreign currency) ratings
of Aaa

BACKED Senior Unsecured MTN Program (domestic currency) ratings
of (P)Aaa

BACKED Long Term Bank Deposits (foreign currency) ratings of Aaa

BACKED Subordinate (domestic currency) ratings of Aa1

BACKED Subordinate MTN Program (domestic currency) ratings of

BACKED Short Term Bank Deposits (foreign currency) ratings of P-1

Hypo Vorarlberg Capital Finance (Jersey) Ltd

BACKED Subordinate (foreign currency) ratings of Ba3


Moody's assigns a standalone bank financial strength rating
(BFSR) of D+ to Vorarlberger Landes- und Hypothekenbank AG (VLH),
which maps to a standalone credit strength of baa3; the outlook
on the BSFR is stable. The BSFR reflects VLH's stable retail and
commercial franchise within a highly competitive domestic market,
as well as acceptable financial fundamentals, with particular
strengths in terms of efficiency.

VLH's A1 long-term global local currency (GLC) debt and deposit
ratings carry a negative outlook. The bank's rating is
underpinned by (i) its baa3 standalone credit strength; (ii)
Moody's assessment of the high probability of support from the
Austrian Federal State of Vorarlberg; and (iii) Moody's
expectation of the probability of systemic support from the
Austrian government. As a result, VLH's GLC deposit rating
receives a five-notch uplift from its standalone credit strength.

The bank's debt rating for 'grandfathered' obligations issued
before April 2007 is Aaa, with negative outlook, as these
continue to benefit from deficiency guarantees
(Ausfallbšrgschaft) from the Austrian Federal State of
Vorarlberg, reflecting the financial strength of the guarantor.

Rating Outlook

The outlook on VLH's long-term ratings is negative and the
outlook on the bank's BFSR is stable.

What Could Change the Rating - Up

There is currently no upward pressure on the bank's long-term
ratings, as reflected by the negative outlook.

Upward pressure could be exerted on VLH's D+ BFSR by a
combination of the following: (i) marked improvements in
profitability without increasing its risk profile; (ii)
maintaining efficiency and further improving asset quality; (iii)
improving capital levels; and (iv) successful implementation of a
long-term sustainable funding structure, thereby gradually
preparing to replace government-guaranteed funding sources which
will progressively diminish over the next five years.

Such modest upward pressure on the BFSR is, however, unlikely to
immediately trigger an upgrade of the long-term ratings in view
of the high support assumptions already factored into the bank's
senior debt and deposit ratings.

What Could Change the Rating - Down

Downward pressure on VLH's BFSR could principally be triggered by
a material deterioration in the bank's overall franchise value,
risk positioning or financials. More specifically, the rating
could be downgraded if re-investment of recent pre-funding
activities yields higher risks with a parallel negative impact on
financials. Moreover, deterioration in profitability or asset
quality could exert downward pressure on the BFSR.

A downgrade of VLH's long-term debt rating could be triggered by
any of the following (i) a change in its standalone credit
strength; (ii) a deterioration in creditworthiness of the
Austrian Federal State of Vorarlberg; (iii) a weakening of the
bank's relationship with the state or a perceived weakening of
implicit support; (iv) a change in ownership; or (v) a negative
change in systemic support. Any change in the backed Aaa rating
for those obligations benefiting from 'grandfathered' deficiency
guarantees would be directly linked to changes in the financial
assessment of the Austrian Federal State of Vorarlberg.

Principal Methodologies

The methodologies used in this rating were Bank Financial
Strength Ratings: Global Methodology published in February 2007,
and Incorporation of Joint-Default Analysis into Moody's Bank
Ratings: Global Methodology published in March 2012.


ALLIED IRISH: Won't Be Able Pay EUR280MM Cash Dividend by May 13
Allied Irish Banks, p.l.c., said that the annual cash dividend of
EUR280 million on the EUR3.5 billion 2009 Non-Cumulative
Preference Shares held by the National Pensions Reserve Fund
Commission (NPRFC), on behalf of the Irish State, due May 13,
2012, will not be paid.

As a result, AIB becomes obliged to issue and allot ordinary
shares to the NPRFC in accordance with AIB's Articles of
Association.   The number of Bonus Shares to be issued will be
calculated by dividing the unpaid dividend amount on the 2009
Preference Shares by the average price on an ordinary share over
the period of 30 days trading immediately preceding the annual
dividend date.  The final amount of Bonus Issue of ordinary
shares will therefore be announced in due course.  The Irish
State, through the NPRFC, owns 99.8% of the ordinary shares of

                     About Allied Irish Banks

Allied Irish Banks, p.l.c. -- is a
major commercial bank based in Ireland.  It has an extensive
branch network across the country, a head office in Dublin and a
capital markets operation based in the International Financial
Services Centre in Dublin.  AIB also has retail and corporate
businesses in the UK, offices in Europe and a subsidiary company
in the Isle of Man and Jersey (Channel Islands).

Since the onset of the global and Irish financial crisis, AIB's
relationship with the Irish Government has changed significantly.

As at Dec. 31, 2010, the Government, through the National Pension
Reserve Fund Commission ("NPRFC"), held 49.9% of the ordinary
shares of the Company (the share of the voting rights at
shareholders' general meetings), 10,489,899,564 convertible non-
voting ("CNV") shares and 3.5 billion 2009 Preference Shares.  On
April 8, 2011, the NPRFC converted the total outstanding amount
of CNV shares into 10,489,899,564 ordinary shares of AIB, thereby
increasing its holding to 92.8% of the ordinary share capital.

In addition to its shareholders' interests, the Government's
relationship with AIB is reflected through formal and informal
oversight by the Minister and the Department of Finance and the
Central Bank of Ireland, representation on the Board of Directors
(three non-executive directors are Government nominees),
participation in NAMA, and otherwise.

The Company reported a loss of EUR2.29 billion in 2011, a loss of
EUR10.16 billion in 2010, and a loss of EUR2.33 billion in 2009.

Allied Irish's consolidated statement of financial position for
the year ended Dec. 31, 2011, showed EUR136.65 billion in total
assets, EUR122.18 billion in total liabilities and EUR14.46
billion in shareholders' equity.

SHAFIN DEVELOPMENTS: Deep in Debt, Goes Into Receivership
JOE.IE reports that Shafin Developments has officially gone into
receivership.  The company is owned by Westlife's Shane Filan who
is now deep in debt.

The Irish Independent reported that the former Westlife singer
has failed to prevent receivers being appointed to the troubled
company that he co-owns with his brother, according to JOE.IE.

The report notes that Ulster Bank have apparently appointed KPMG
as receivers to Shafin Developments and it is estimated that
Mr. Filan and his brother owe the banks debts more than EUR5
million, JOE.IE discloses.

Earlier this year, JOE.IE notes that Mr. Filan insisted that he
would not allow the firm to go into receivership, but according
to well-placed financial sources who spoke to the Irish
Independent, overall, the singer is currently battling with a
massive EUR23 million debt, including his property woes.

JOE.IE relates that sources said that he has already employed a
well-known, reputable firm of accountants that are based in
London and he is also currently negotiating financial
arrangements with banks -- including Ulster Bank and Bank of
Ireland -- in an attempt to avoid having to declare himself

JOE.IE disc discloses that Mr. Filan is trying to keep any
earnings that he makes on the upcoming Westlife farewell tour out
of his current financial negotiations.  The report relates that
the Westlife farewell tour will make the band a massive EUR12
million and Mr. Filan is determined that no one will touch this


SCHMOLZ + BICKENBACH: Moody's Rates EUR300MM Sr. Sec. Notes (P)B1
Moody's Investors Service has assigned a (P)B1 (LGD3, 42%) rating
to the proposed EUR300 million of senior secured notes due 2019
being issued by SCHMOLZ + BICKENBACH Luxembourg S.A., a wholly-
owned subsidiary of SCHMOLZ + BICKENBACH AG (S+B). At the same
time, a (P)B1 corporate family rating and probability of default
rating were assigned. If the proposed financing concludes as
expected, the provisional ratings will become definitive ratings
at the conclusion of the proposed financing. The rating outlook
is stable. S+B is a leading global producer of specialty long
steel with steel mills and processing plants in Europe and North

Ratings Rationale

Moody's (P)B1 rating reflects the competitive nature of the
specialty steel industry, the cyclical nature of the primary end
markets S+B serves, and the few costs the company has under its
control given that approximately 60% of its costs are raw
material and energy costs. As a result of these factors, S+B
experiences EBIT margin shrinkage during downcycles due to
reduced volumes and the impact of lower capacity utilization on
fixed costs. These pressures have impacted its profitability over
the last four years, when EBIT margins ranged between 3.4% and
5.5%, excluding the EBIT loss in 2009. This, along with
relatively high historic capex and considerable swings in working
capital, have kept cash flow generation modest.

The rating positively reflects the company's significant market
share in its key markets, its production, process and
technological expertise, and its integrated business model, all
of which make it an important supplier and partner to a
diversified customer base. While S+B can't control raw material
costs, it benefits from the industry-wide practice of passing
through nickel and other alloy costs through a surcharge
mechanism, although it has a short-term timing mismatch on nickel
prices. Moody's also notes that the company's leverage is
relatively modest for its (P)B1 rating. Leverage will be
approximately 3.8x gross debt to EBITDA and 61% debt to capital
pro forma for the contemplated financing and applying Moody's
standard adjustments.

The stable rating outlook reflects the company's solid market
share, breadth of products, long-term customer relationships,
good liquidity, and ability to pass through raw material costs
representing about half of its operating costs. The rating could
be raised if the company were to push operating margins higher,
say to a 6.5% EBIT margin, and consistently generate free cash
such that FCF to debt was above 6% and debt to EBITDA was under
3.7x. The rating could be pressured if S+B's EBIT margins
declined to less than 5%, free cash was persistently negative, or
if liquidity were to significantly lessen.

The proposed senior secured notes are rated (P)B1, the same level
as S+B's corporate family rating, due to their pari passu ranking
with much of S+B's other debt and other non-debt obligations. The
bonds are being issued by SCHMOLZ + BICKENBACH Luxembourg S.A., a
Luxembourg public limited liability company and a wholly-owned
subsidiary of SCHMOLZ + BICKENBACH AG. The bonds are supported by
guarantees from each of the company's subsidiaries that are
guarantors under its senior secured credit facilities and by a
first-priority lien over receivables, inventory, and certain
other assets, but not PPE, of the issuer and the guarantors.

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. Upon a
conclusive review of the final documentation Moody's will assign
a definitive rating to the notes. A definitive rating may differ
from a provisional rating.

The methodologies used in these ratings were Global Steel
Industry published in January 2009, and Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.

S+B is a leading global producer, processor and distributor of
specialty long steel operating in all three major sub-segments of
the specialty long steel market: tool steel, stainless long steel
and engineering steel. It operates nine production facilities in
Europe and North America, 11 processing plants in Europe and the
US, and 86 distribution branches in 35 countries around the
world. In 2011, S+B had revenues of EUR3.9 billion.


GAZPROMBANK: Moody's Assigns '(P)Ba1' Subordinated Debt Rating
Moody's Investors Service has assigned (P)Ba1 long-term foreign
and local currency subordinated debt ratings to the US$10 billion
loan participation notes program of Gazprombank for the issuance
of loan participation notes through GPB Eurobond Finance Plc --
an Ireland-based special purpose vehicle. The notes under the
program are to be issued on a limited recourse basis for the sole
purpose of financing subordinated loans to Gazprombank. The
outlook on the subordinated debt ratings is stable.

Moody's already rates at (P)Baa3 senior notes that can be issued
under this program.

At the same time, Moody's assigns a (P)Ba1 long-term foreign
currency debt rating (stable outlook) to the US$500 million 7.25%
loan participation notes due 2019. The rating on this issue is
subject to Moody's review of final documentation. This issue
forms part of the US$10 billion notes program of Gazprombank. The
notes are issued on a limited recourse basis for the sole purpose
of financing a subordinated loan to Gazprombank.

Ratings Rationale

Moody's says that the (P)Ba1 rating assigned to the subordinated
notes, which is one notch lower than Gazprombank's Baa3 senior
unsecured debt rating, takes into account (i) the extent of the
notes' subordination against various classes of debt, and (ii)
associated differences in expected loss in case of default.
Moody's states that if Gazprombank were to issue notes containing
features enhancing its subordination and/or debts with other
special features, the ratings will be assessed individually and
may not correspond to the ratings currently assigned to the

Principal Methodologies

The methodologies used in this rating were Bank Financial
Strength Ratings: Global Methodology published in February 2007,
and Incorporation of Joint-Default Analysis into Moody's Bank
Ratings: Global Methodology published in March 2012.

Headquartered in Moscow, Russia, Gazprombank reported total
assets of US$77 billion and net income of US$1.3 billion
according to audited IFRS at YE2011.

GLOBALTRANS INVESTMENT: Moody's Says MIT Buyout Credit Neutral
Moody's Investors Service has said that it views as credit
neutral for Globaltrans Investment PLC its announced acquisition
of 100% of Metalloinvesttrans (MIT), a captive railcar operator
of JSC Holding Company METALLOINVEST (Metalloinvest; Ba3
positive), for a total consideration of US$540 million. As a
result, Globaltrans' Ba3 rating and positive outlook are
unaffected by the acquisition.

"Although we expect that the acquisition will be financed largely
with debt, this should not affect Globaltrans' credit profile
materially, as its leverage is relatively low and the group could
accommodate some increase within its current rating," explains
Artem Frolov, an Assistant Vice President -- Analyst and lead
analyst for Globaltrans. "We expect the group to retain the
potential for an upgrade over the next 12-18 months, reflected by
the positive outlook on its rating."

Moody's notes that Globaltrans' leverage decreased to 1.4x
adjusted debt/EBITDA at year-end 2011 from 2.2x a year earlier.
This was a result of both growth in adjusted EBITDA of more than
30% and a decline in adjusted debt, which in turn was partially a
result of a material reduction in Globaltrans' leased-in fleet
and, consequently, of estimated operating lease expenses, which
contributed materially to the group's adjusted leverage in 2008-

As a result of the acquisition and Globaltrans' large capital
expenditure program for 2012, which is also largely debt-
financed, Moody's expects that the group's leverage will approach
2.0x adjusted debt/EBITDA at year-end 2012. At the same time, the
rating agency notes that on a pro-forma basis, Globaltrans'
leverage will be lower, given that the group will start
consolidating MIT in its financial statements only from the
second half of the year. In addition, Moody's takes some comfort
from management's intention to keep leverage under control.

Although it considers the acquisition to be credit neutral,
Moody's recognizes that it is beneficial for Globaltrans'
business profile because it will (i) expand its railcar fleet by
8,256 own railcars (around 20% of its own fleet as of year-end
2011), adding an estimated USD140 million to the group's
consolidated annual EBITDA; and (ii) provide the group with a
three-year contract, agreed as part of the transaction, to
transport Metalloinvest's cargos.

Cyprus-based Globaltrans Investment PLC is one of the largest
private railway transportation groups operating in Russia, with a
fleet of 47,580 railcars as of year-end 2011. In 2011, the group
transported around 70 million tonnes of various cargos and
generated US$1.7 billion of revenue and US$650 million of EBITDA
(adjusted by Moody's). The group's customers are large Russian
blue-chip companies operating mainly in the metals and mining,
oil and oil products industries, as well as small and medium-
sized companies. Globaltrans is a public company that has been
listed on the London Stock Exchange since 2008.

METALLOINVEST JSC: Moody's Says MIT Disposal Credit Neutral
Moody's Investors Service has said that it views as credit
neutral for JSC Holding Company METALLOINVEST (Metalloinvest) its
disposal of 100% of LLC Metalloinvesttrans (MIT), its captive
freight rail transportation operator, for US$540 million on a
cash- and debt-free basis. As a result, Metalloinvest's Ba3
corporate family rating and positive rating outlook are
unaffected by the disposal.

Moody's believes that the transaction will allow Metalloinvest to
free up capital, which will help the company to focus on its core
activities and smooth out increased debt levels in the event that
it decides to go ahead with the acquisition of 20% of its own
shares currently held by VTB.

Metalloinvest sold 100% of MIT to Globaltrans Investment PLC (Ba3
positive), a leading Russian private freight rail transportation
group, in an all-cash transaction. The transaction is expected to
be closed by the end of May 2012, subject to regulatory

As at December 31, 2011, MIT operated 9,202 railcars (of which it
owned 8,256, which had an average age of approximately 8.7
years). MIT handled 44.2 million tonnes of cargoes in 2011, with
a focus on metallurgical cargoes (83%), as well as coal (10%) and
other cargoes (7%). In 2011, MIT had adjusted revenue of US$344
million, adjusted EBITDA of US$140 million (up 13% year on year)
and an adjusted EBITDA margin of 41%.

The disposal of MIT to Globaltrans has allowed Metalloinvest to
unlock the value of its transportation subsidiary at a time when
the Russian freight transportation market is being consolidated
by several independent players at a price equivalent to
approximately US$65,000 per railcar, with an average useful life
of 20-22 years. Moody's notes that during the 2008 commodity
price rally, railcar prices spiked at US$80,000-90,000 per new
railcar, but went on to fall to US$40,000-50,000 per new railcar
during 2009, demonstrating significant volatility. Currently, a
new railcar can be bought at a price range of US$75,000-80,000.
Based on Metalloinvest's financial results for the period ended
December 31, 2011, Moody's estimates that that the company's
EBITDA margin will deteriorate by around 1% as a result of the
disposal of MIT.

Despite the fact that MIT used to handle almost all of its
owner's railway cargoes, Moody's does not expect that
Metalloinvest's operations will be materially affected by the
disposal of its freight rail transportation operator. As part of
the transaction, Globaltrans and Metalloinvest have agreed a
three-year service contract. In accordance with this contract,
Globaltrans will provide rail freight transportation and
logistics services to Metalloinvest, handling 100% of all its
rail transportation cargo volumes in year one based on agreed
pricing terms and 60% in the following two years based on a
"right of first refusal" principle. Moreover, MIT's key
management team will stay at Metalloinvest, helping the company
to coordinate its cargo logistics via independent operators.

As at December 31, 2011, Metalloinvest had total debt of
approximately US$5.6 billion and US$1.2 billion of cash and cash
equivalents. Metalloinvest drew-down US$916 million of its
existing credit facility agreements in January 2012 and issued
around US#850 million of 10-year rouble-denominated bonds in
March 2012. In Moody's view, this could indicate that the company
is planning a significant transaction in the not-so-distant
future, namely, a potential acquisition of its 20% share from
VTB. It is estimated that VTB bought its 20% share stake for
approximately US$2.5 billion at the end of 2011 from its previous
shareholder, Mr. Anisimov. Moody's notes that raising US$540
million in cash in the course of its disposal of MIT will allow
the company to lessen its debt burden, which the company
accumulated during first quarter of 2012.

Looking ahead, the disposal of MIT will allow Metalloinvest to
focus on its core activity of iron ore, pellets and hot-
briquetted iron (HBI)/direct-reduced iron (DRI) production and to
benefit from the growing competition and capacity in the freight
rail transportation market in Russia. Among Metalloinvest's core
investment projects are Pellet Plant #3 and HBI-3 plant, which
will significantly ramp up the company's capacities in pellets
and HBI production and which management estimates will require
investment of around US$1.3 billion over the next three years.

The principal methodology used in rating Metalloinvest was the
Global Mining Industry Methodology, published in May 2009.

Founded in 2005 and with headquarters in Moscow, Russia,
Metalloinvest is a leading global iron ore and HBI producer, with
a 36% domestic market share of iron ore production (59% for
pellets and 100% for HBI/DRI). The company has the world's
second-largest iron ore reserve base of 14.9 billion tonnes, is
the largest iron ore producer in Europe and Russia in terms of
volumes and the fifth-largest supplier globally in terms of
market share. In 2011, Metalloinvest produced approximately 40.1
million tons (2010: 36.8 million tons) of iron ore, 22.4 million
tons (2010: 22 million tons) of pellets, 5.2 million tons (2010:
4.7 million tons) of HBI/DRI and 5.8 million tons (2010: 6.1
million tons) of crude steel. For twelve months ending
December 31, 2011 the Company reported revenue of US$9.9 billion
(2010: US$7.2 billion) and EBITDA of US$3.9 billion (2010: US$2.6

Metalloinvest's production facilities are primarily located in
the European part of Russia, at Lebedinsky GOK (LGOK),
Mikhailovsky GOK (MGOK) and OEMK. Metalloinvest is owned by Mr.
Usmanov, Mr. Moshiri, Mr. Skoch and VTB.

U N I T E D   K I N G D O M

AQUASCUTUM: YGM Trading Enters Into Deal to Buy Business
Jennifer Thompson at The Financial Times reports that YGM
Trading, the Hong Kong-based owner of the Aquascutum brand in
Asia, is set to consolidate its control of the luxury British
fashion label which collapsed into administration last month.

According to the FT, YGM Trading has entered into an exclusivity
agreement with FRP Advisory, administrator of the classic
clothing company, to acquire "the ongoing business and assets"
for an undisclosed sum.

These include 37 Aquascutum stores in Europe, including 26 in the
UK, and the global brand rights, the FT notes.  YGM Trading
bought the rights to the Aquascutum name in Asia in 2009, the FT

The exclusivity period will last until May 9 but FRP, as cited by
the FT, said a "financial commitment has been obtained," and that
"both parties are now focused on dealing with the necessary legal
documentation to effect the sale".

The FT relates that Geoff Rowley, joint administrator at FRP,
said: "The joint administrators have been very encouraged by the
significant interest shown in the business over the last two
weeks and have chosen to proceed with the offer that delivers the
best outcome for the creditors of Aquascutum."

FRP said that it had received "significant interest" in
Aquascutum, founded in 1851 as a raincoat maker, from "in excess
of 70 interested parties" around the world, the FT notes.  The
deadline for bids passed last Friday, the FT discloses.

However the future of its factory at Corby, which employed 115
people and was shut in April, remains unclear, the FT says.
According to the FT, FRP said expressions of interest for the
facility had been received and more were expected, but no
deadline has been set for a sale.

Aquascutum is a British clothing label known for its trench

CAITHNESS BEEF: Owner to Sue Bank of Scotland for GBP10MM
--------------------------------------------------------- reports that businessman John Sutherland is
threatening to sue the Bank of Scotland for GBP10 million after
claiming he was forced to put a GBP4 million meat processing
plant into administration.

Mr. Sutherland insists the bank had committed funding towards the
venture, which was handed GBP1.145 million in public funding,
according to  Mr. Sutherland, according to the
report, insists the bank's failure to provide promised funding
landed the business in financial trouble.

Mr. Sutherland said they were GBP350,000 short towards building
costs, and another GBP2 million was pledged to get the business
up and running, notes.

"This has nothing to do with a downturn in the beef and lamb
trade . . . .  The Bank of Scotland is certainly in the wrong.
We were dealing with fantastic people at the start at the bank. .
. .  We had Highlands and Islands Enterprise and the Scottish
Government backing us, and we all signed off to the same business
plan.  But the bank did not keep to the business plan."

As reported in the Troubled Company Reporter-Europe on May 2,
2012, said that Caithness Beef and Lamb has been
placed into administration due to intense competition and rising
costs within the meat slaughtering and processing sectors blamed.
The report relates that it has never gone into full production,
having only operated trial production runs to date.  Iain Fraser
and Tom MacLennan of RSM Tenon are named as joint administrators. discloses that a spokesman for the administrators
said as such it would be "a handful" of employees who may be
affected in the administration process.  The administrators hope
the facility will attract interest from Europe's farming and food
processing industries, the report noted.

Caithness Beef and Lamb is a meat processing plant.  The GBP4
million, 1300 sq. metre production facility in Wick has
processing and packaging facilities, an abattoir, offices and
storage facilities.

CITY SITE ESTATES: PwC Appointed as Receiver for Developer
Jonathan Randles at Bankruptcy Law360 reports that Scottish-based
real estate development firm City Site Estates, which values its
property portfolio at more than $568 million, has been placed
into receivership, PricewaterhouseCoopers said Monday.

Law360 relates that David Chubb and Alan Brown of PwC were
appointed as joint receivers of City Site Estates, which owns
several commercial properties in Glasgow and London, on April 25.
According to the report, Mr. Chubb said in a statement that PwC's
immediate priority would be to review City Site Estates'
portfolio to extract the best value for creditors.

ICICI BANK: Moody's Retains 'D' BFSR; Outlook Stable
Moody's Investors Service has placed on review for downgrade the
Baa2 long-term debt and deposit ratings, the P-2 short term
rating, the Baa3 subordinated rating and the Ba1 (hyb) junior
subordinated rating of ICICI Bank UK plc.

The rating action follows the announcement by Moody's on 30 April
2012 to place the C- standalone bank financial strength rating
(which maps to baa2 on the long term scale) of the bank's parent,
ICICI Bank Limited on review for downgrade along with two other
Indian banks whose standalone credit assessments are currently
positioned above India's sovereign debt rating. ICICI Bank UK's
standalone BFSR of D/ba2 is not affected by this action.

Ratings Rationale

The ratings of ICICI Bank UK have been put on review for
downgrade in line with the review of the BFSR ratings of its
parent bank. Currently, Moody's incorporates a very high level of
parental support for ICICI UK, resulting in three notches of
uplift from its D standalone Bank Financial Strength Rating
(BFSR, mapping to ba2 on the long term scale).

Therefore, the review of ICICI UK's ratings is driven by the
review and outcome for the ratings of its parent, and will focus
on the impact that the potential change in the BFSR of ICICI Bank
Limited, as expressed in the review for downgrade, may have on
the current parental support uplift of 3 notches in ICICI UK 's

The rating action on the Indian banks reflects Moody's revised
assessment of the linkage between the credit profiles of
sovereigns and financial institutions globally, which is further
discussed in the rating implementation guidance "How Sovereign
Credit Quality May Affect Other Ratings" published on 13
February, 2012.


An upgrade of the bank deposit and senior debt rating is highly
unlikely given the current review for possible downgrade. Upward
pressure on the standalone BFSR would likely require a further
sustained improvement in the bank's UK corporate and retail
franchise, including a meaningful diversification among its core
customer base and reduction in its loan concentrations. An
established track-record of a core retail deposit base and
minimizing the impact of one-off events on its profitability
would also contribute to this trend. A sharp reduction in
profitability or losses, caused by the realisation of the
negative mark-to-market valuation of some investments could lead
to downward pressure on the BFSR. Pressure on the liquidity
position or high volatility in the deposit base given its price-
sensitivity could also put a significant downward pressure on the
bank's standalone ratings. A downgrade of ICICI Bank Limited 's
BFSR is likely to lead to downgrade of ICICI UK senior ratings.

The methodologies used in this rating were Bank Financial
Strength Ratings: Global Methodology published in February 2007,
and Incorporation of Joint-Default Analysis into Moody's Bank
Ratings: Global Methodology published in March 2012.

MICRO ANVIKA: Creditors Back Company Voluntary Arrangement
Paul Kunert at Channel Register reports that Micro Anvika's
short-term future is looking more secure after suppliers gave its
proposed rescue package the thumbs up.

The firm has shuttered more than half its stores and laid off
more than 60% of staff in a bid to convince creditors, owed
GBP2.7 million in total, that it could once again become an
economically viable enterprise, Channel Register relates.

Biz advisor Re10, which Micro Anvika appointed last December to
explore whether it could turn around operations, held a meeting
of creditors on 26 April, Channel Register recounts.  The Company
Voluntary Arrangement (CVA) was approved by 84% of those present
-- more than the 75% needed to green light the deal, Channel
Register discloses.

Gary Rupping, manager at Re10, told Channel Register creditors
can expect to see a minimum of a 32-pence-on-the-pound return on
their debts over the next five years, which he said was
preferable to the other alternative -- insolvency.

Mr. Rupping, as cited by Channel Register, said the retailer had
closed four stores -- three in London and one in Surrey -- and
the headquarters based in the capital.  "It has gone from 140
employees to around 50," Channel Register quotes Mr. Rupping as

Micro Anvika is a Tottenham Court Road retailer.

PELICAN: Goes Into Receivership, Seeks Buyer
View Online reports that receivers have been appointed to find a
buyer for Weymouth's Tall Ship Pelican, currently used for youth
training voyages.

The Pelican is in the hands of joint receivers Steve Adshead and
Greg Palfrey from the South Coast office of accountancy and
investment management group Smith & Williamson, according to View
Online.  The report relates that they have been tasked with
securing a new owner for the 370-tonne sailing vessel, with
offers around GBP2.45 million.

View Online notes that a number of private individuals, who kept
the ocean-going ship afloat with funds, are owed nearly GBP2.5
million, the receivers said.

The report says that the receivers stressed that the charity,
Weymouth-based Adventure Under Sail Ltd (AUSL), has no formal
relationship with the owner of the 45-metre long vessel.

Pelican was built in Le Havre, France, in 1946 as a double-beam
Arctic fishing trawler.  The vessel was acquired in 1997 by
retired Naval Commander Graham Neilson as a restoration project
for circumnavigation under sail and was meticulously
reconstructed over 12 years in Portland.

RANGERS FOOTBALL: Bill Miller Named Preferred Bidder
Bob Bensch at Bloomberg News reports that the administrators for
Rangers Football Club chose American businessman Bill Miller as
the preferred bidder for the Glasgow soccer team.

Rangers, which has won a record 54 Scottish titles, went into
administration, a form of bankruptcy, in February as U.K. tax
authorities chased the team over unpaid bills, Bloomberg

"Mr. Miller now proposes to complete his transaction by
the end of the season," Bloomberg quotes administrators Duff &
Phelps as saying in a statement on Rangers Web site.

As reported by the Troubled Company Reporter-Europe on May 2,
2012, BBC Scotland related that Mr. Miller's bid for Rangers is
worth significantly more than the Blue Knights and Brian
Kennedy's.  The Blue Knights' Paul Murray told BBC Scotland on
Friday evening that he believes his joint bid with Sale Sharks
owner Kennedy outbids the American's, BBC Scotland disclosed.
Both bids depend on taking the club's bond holders' debt, around
GBP7 million, out of a Company Voluntary Arrangement, BBC
Scotland noted.  But it is thought the Knights' bid uses that
figure as part of its offer, BBC Scotland said.  BBC Scotland
noted that administrators Duff & Phelps said "neither bid
involves liquidation of the football club".

                    About Rangers Football Club

Rangers Football Club PLC --
-- is a United Kingdom-based company engaged in the operation of
a professional football club.  The Company has launched its own
Internet television station,  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.

SCARLETS REGIONAL: Auditors Express Going Concern Doubt
Martin Shipton at Wales Online reports that Scarlets Regional
Ltd. chief executive Mark Davies on Wednesday night insisted the
club is on course for a stable financial future despite concerns
expressed by its auditors in the latest annual accounts.

Mr. Davies gave a detailed briefing to the Western Mail about the
revival plan for the region, stressing his determination to drive
it through at a time when there are fears about the financial
sustainability of the entire regional game, Wales Online relates.

Newly-published accounts for the year ended June 2011 show that
Scarlets made a loss of more than GBP1.8 million, Wales Online

According to Wales Online, a note in the accounts from auditors
Grant Thornton states: :The company incurred a net loss of
GBP1,819,158 during the year ended June 30, 2011 and, at that
date, the company had an excess of liabilities over assets of

"These conditions . . . indicate the existence of a material
uncertainty which may cast significant doubt about the company's
ability to continue as a going concern."

Mr. Davies confirmed that the company was only able to survive at
present because of the generosity of four benefactors who sit as
directors on the board, Wales Online notes.

But he said the Scarlets are on course in terms of their current
level of financial performance to become "cost neutral" by
June 2014, Wales Online recounts.

Loans totalling GBP5.4 million made to the Scarlets by directors
had been converted into equity shareholdings -- a fact that
Mr. Davies, as cited by Wales Online, said demonstrated the
directors' commitment to the club's future.

The club has also secured a deal with Her Majesty's Revenue and
Customs to pay off a historic debt, Wales Online states.

SYNCORA HOLDINGS: Moody's Issues Summary Credit Opinion
Moody's Investors Service issued a summary credit opinion on
Syncora Holdings Ltd. and includes certain regulatory disclosures
regarding its ratings.  The release does not constitute any
change in Moody's ratings or rating rationale for Syncora
Holdings Ltd.

Moody's current ratings on Syncora Holdings Ltd. and its
affiliates are:

Syncora Holdings Ltd.

Preferred Stock Non-cumulative (foreign currency) ratings of C

Syncora Guarantee Inc.

Insurance Financial Strength ratings of Ca

Syncora Guarantee (U.K.) Ltd.

Insurance Financial Strength ratings of Ca

Ratings Rationale

Moody's Ca insurance financial strength ratings for Syncora
Guarantee Inc. ("Syncora Guarantee" or the "Company"), reflects
the company's weak capital adequacy position, continued stress in
its portfolio, impaired financial flexibility and run-off status.
In its YE2011 statuatory filing, management expressed doubts
around the Company's ability to continue as a going concern.

In April 2009, the New York State Department of Financial
Services ("NYDFS") ordered the company to suspend all claim
payments on financial guaranty policies until its statutory
surplus position had been restored to the US$65 million minimum
amount required as per New York Insurance Law. To address the
policyholders' deficit and liquidity issues, the Company
established a remediation plan to reduce portfolio exposure in
July 2009, called the 2009 Master Transaction Agreement ("2009
MTA"). The plan included purchases of certain guaranteed
exposures and various other loss remediation and restructuring
actions. Syncora Guarantee announced completion of the plan in
July 2009 and then took other remediation measures in early 2010,
including liquidity enhancement steps, prior to being ordered to
recommence claim payments in July 2010. All accrued and unpaid
claims from April 2009 to July 2010 were paid by November 2010.
As of December 31, 2011, Syncora Guarantee had a statutory
policyholders' surplus of US$186.1 million.

As part of the remediation plan, Syncora Guarantee paid cash and
issued long- and short-term surplus notes in 2009 to
counterparties in order to commute certain portfolio exposures. A
total of US$625 million was issued, US$150 million maturing
December 28, 2011. Repayment was contingent on certain conditions
and in December 2011, the NYDFS disallowed a scheduled repayment
on Syncora Guarantee's short-term suplus notes, bringing total
principal, paid-in-kind interest, and accrued and unpaid interest
on such short term surplus notes to US$169.6 million. Under the
terms of the notes and New York insurance law, such principal and
interest payments may only be made with the prior approval of the
NYDFS and to the extent the company has free and dividible
surplus to make such payments. Absent the satisfaction of these
conditions, the Company is not entitled to make any payment on
its surplus notes and timing around future payment is unknown.

Syncora Guarantee Inc is an indirect subsidiary of Bermuda
domiciled Syncora Holdings Ltd. Following the 2009 restructuring,
Syncora Guarantee's counterparties owned 40% of Syncora Holdings
and US$625 million of short term and long term surplus notes
issued by Syncora Guarantee. Also as part of the 2009 MTA,
Syncora Capital Assurance Inc ("SCAI") was created as a wholly
owned subsidary of Syncora Guarantee. SCAI reinsures a portion of
Syncora Guarantee's US public finance and global infrastructure
portfolio on a cut-through reinsurance basis. Syncora Guarantee
also novated its non-commuted CDS exposures to SCAI. As of year-
end 2011, SCAI had assets of US$716.2 million and assumed US$58.8
billion of risk from Syncora Guarantee.

Credit Strengths

- The company has substantially reduced its exposure to the most
distressed and volatile segments, particularly its former ABS CDO

- Completion of NYDFS-required remediation plan and the restart
of claims payments in 2010.

Credit Challenges

- Though improved since 2008, policyholder surplus still only
marginally above required level

- Limited visiblity around magnitude and timing of ultimate
portfolio losses, particularly in RMBS and Jefferson County.

Rating Outlook

The developing outlook reflects the possibility of both positive
and negative pressure on Syncora Guarantee's insurance financial
strength rating. If Syncora Guarantee is able to substantially
improve its capital position or financial positions, the rating
could be upgraded. If the NYDFS takes regulatory action on
Syncora Guarantee, the insurance financial strength rating could
be under further downward stress. Further, movement in Jefferson
County, Alabama bankruptcy, negative movement in litigation with
RMBS originators around putbacks or further potential
deterioration in its statutory capital position could create
additional downward


What Could Change the Rating - Up

- Material improvement in statutory surplus position and Moody's
capital adequacy estimate

- Substantial success in loss mitigation efforts, including
putback claims

- Repayment of the short-term surplus notes

What Could Change the Rating - Down

- Placement of the company into regulatory rehabilitation or

The principal methodology used in these ratings was Moody's
Rating Methodology for the Financial Guaranty Insurance Industry
published in September 2006.

* SCOTLAND: Number of Collapsed Firms Increases
BBC News reports that official figures have revealed that a
record number of Scottish firms went bust in the first three
months of this year.

Accountant in Bankruptcy (AiB) reported 385 Scottish firms became
insolvent or entered receivership in the last quarter, according
to BBC News.  The report relates that the number was 37.5% higher
than the previous quarter and 30.9% higher than the same period
last year.

BBC News discloses that the figures showed nearly 30 businesses a
week went bust in Scotland in the first 13 weeks of this year.

Accountants PKF said it was the highest number in any quarter on

BBC News relays that PKF corporate recovery partner Bryan Jackson
said: "These figures show the real state of the Scottish economy.
Many companies are simply having to close down as they cannot see
an end to the economic gloom. . . . There will undoubtedly be
businesses which have used up years of cash reserves to stay
afloat but have now found they are unable to carry on due to the
relentless lack of an upturn in the economy. . . . The news that
the UK economy has fallen into a double-dip recession is unlikely
to surprise any of the business owners who have gone bust in the
first three months of this year."

Meanwhile, BBC News notes that AiB reported there were more than
4,850 personal insolvencies in Scotland -- a 4% increase on the
previous quarter.  BBC News relates that the figure was 14%
higher than the corresponding period last year.

Bankruptcy numbers fell slightly, while there was a 10% increase
on the previous quarter in the number of protected trust deeds
(PTDs), which are voluntary arrangements, BBC News notes.

The number of debt payment programs approved under the Debt
Arrangement Scheme (DAS), which allows people to repay their debt
over an extended period, nearly doubled compared with the same
period last year, BBC News says.

* Dundas & Wilson's Verrill Joins Chadbourne's London Office
The international law firm Chadbourne & Parke LLP announced that
John Verrill has joined the Firm's London office as a partner in
the insolvency and financial restructuring group.

Mr. Verrill comes to Chadbourne from Dundas & Wilson, a leading
UK corporate and commercial firm, where he was co-head of the
insolvency and restructuring team, and before that was a partner
at Lawrence Graham LLP.

With over 25 years of experience in the corporate recovery
sector, Mr. Verrill is a highly qualified restructuring partner.
During his career, he has advised on restructuring and insolvency
issues in a wide range of sectors, both debtor and creditor side,
with a particular focus on complex cross-border insolvency
matters and company voluntary arrangements.  He has extensive
experience in both contentious and non-contentious roles.

"Having John join us in London is strategically important for
Chadbourne's insolvency and financial restructuring group," said
Claude Serfilippi, Managing Partner of Chadbourne's London
office. "He will be well placed to drive and support matters
handled by our integrated insolvency practice in our New York,
Mexico City, Warsaw and Moscow offices."

"John's high visibility in the London market and cross-border
insolvency experience complements our existing international and
cross-border capabilities," added Howard Seife, global chair of
the Firm's insolvency and financial restructuring practice.
"John will be a tremendous asset for our clients."

Chadbourne is a leader in the use of cross-border ancillary
proceedings, including its representation in Chapter 15s of the
liquidators of Hellas Telecommunications and the receiver in the
Russian bankruptcy of Yukos Oil.

"This is an exciting time for Chadbourne's London office as we
continue to add first-rate legal talent and expand upon our
existing practice areas," remarked Chadbourne Managing Partner
Andrew A. Giaccia.  "We are proud to have John on our team and
look forward to benefitting from the strong experience and
insights he will bring on insolvency matters."

Chadbourne's bankruptcy and restructuring lawyers have
represented clients in Chapter 11 cases and corporate
restructurings in the United States and abroad, working for
financial institutions, insurance companies, bondholders, funds
and formal and ad hoc committees. They have had leading roles in
the Tribune, TOUSA, Xerium, Capmark, Chrysler, Lehman Brothers,
Enron, Refco and Mirant Chapter 11 cases.

Mr. Verrill is a member of the Insolvency Lawyer's Association;
the Association of Business Recovery Professionals (R3), INSOL
Europe; INSOL International.

He received his LL.B. with honors from University College,

                       About Chadbourne & Parke

Chadbourne & Parke LLP -- is an
international law firm headquartered in New York City, provides a
full range of legal services, including mergers and acquisitions,
securities, project finance, private funds, corporate finance,
venture capital and emerging companies, energy/renewable energy,
communications and technology, commercial and products liability
litigation, arbitration/IDR, securities litigation and regulatory
enforcement, special investigations and litigation, intellectual
property, antitrust, domestic and international tax, insurance
and reinsurance, environmental, real estate, bankruptcy and
financial restructuring, executive compensation and employee
benefits, employment law, trusts and estates and government
contract matters. Major geographical areas of concentration
include Russia, Central and Eastern Europe, Turkey, the Middle
East and Latin America. The Firm has offices in New York,
Washington D.C., Los Angeles, Mexico City, Sao Paulo, London,
Moscow, Warsaw, Kyiv, Istanbul, Dubai and Beijing.


* Moody's Says Cost Inflation Hits EMEA Building Materials Sector
Although cost inflation will continue to pressure the margins of
building materials producers in the Europe, Middle East and
Africa (EMEA) region, the outlook for the sector over the next
12-18 months is stable, says Moody's Investors Service in a new
report published on May 2.

The new report is entitled "EMEA Building Materials: Cost
inflation continues to Pressure Operating Margins".

"Our stable outlook for the EMEA building materials sector
reflects our expectation that the aggregate EBITDA growth for our
European universe will be between -4% and +4%," says Stanislas
Duquesnoy, a Vice President -- Senior Analyst in Moody's
Corporate Finance Group. "This implies flat to declining margins
as the top line will grow only modestly, supported by slightly
higher volumes."

"However, we believe that energy cost inflation across all
geographies and general cost inflation -- mainly affecting
issuers that generate a large proportion of their revenues from
emerging markets -- will continue to exert pressure on the
operating margins of EMEA building materials producers," adds
Mr. Duquesnoy.

Overall, growth in cement volumes will be modest in important
markets for EMEA building materials producers, largely driven by
emerging markets. Moody's would expect mid-single-digit
percentage increases in volumes in Asia and Latin America, while
North America markets will remain broadly flat. Demand will
remain very heterogeneous across countries in Europe.

Moody's anticipates that any recovery in cement volumes in
developed markets will not be strong enough to materially improve
capacity utilization levels, which remain low. This will make any
sustainable price adjustments to fully cover energy cost
inflation difficult to implement. Emerging markets are still
operating at higher capacity utilization but new capacity
additions depend upon utilization levels and cost inflation is
more pronounced in those markets, making it difficult to maintain

Moody's believes that political risk will be an important
consideration when assessing the credit prospects of Moody's
issuers in 2012. Emerging markets offer better longer-term growth
prospects given their positive demographics and a growing share
of cement consumption per unit of Gross Domestic Product (GDP),
but they are also politically less stable. The difficulties that
Lafarge SA (Ba1 stable) and Italcementi SpA (Ba1 negative) faced
in Egypt during 2011 are a prime example (a 23% decline in
revenues for Lafarge in Egypt in 2011; a 30% decline in revenues
and a 52% drop in recurring EBITDA for Italcementi). A key to
success in this industry over the next few years will be a
diverse and balanced geographical profile, as this will mitigate
rising political risk.

Apart from Compagnie de Saint-Gobain SA (Baa2 positive) and CRH
plc (Baa2 stable), which continue to benefit from solid balance-
sheet structures and more resilient business profiles, most other
players in the EMEA buildings materials sector are focusing on
deleveraging to restore stronger credit metrics over time.

Moody's would consider changing the industry outlook to positive
upon signs that aggregated EBITDA growth is likely to exceed 4%
over the coming 12-18 months. The rating agency considers this
unlikely at present, but it could result from a sustained
recovery in the US private residential construction market.
Moody's would consider changing the outlook to negative if EBITDA
growth declines by more than 4%. This would occur if volumes fall
in response to more pronounced macroeconomic pressure, or as a
result of a spike in inflation, both of which would exert further
pressure on margins.

* BOOK REVIEW: Corporate Venturing -- Creating New Businesses
Authors: Zenas Block and Ian C. MacMillan
Publisher: Beard Books, Washington, D.C. 2003
(reprint of 1993 book published by the President and Fellows of
Harvard College).
List Price: 371 pages. $34.95 trade paper, ISBN 1-58798-211-0.

Creating new businesses within a firm is a way for a company to
try to tap into its potential while at the same time minimizing
risks.  A new business within a firm is like an entreprenuerial
venture in that it would have greater flexibility to
opportunistically pursue profits apart from the normal corporate
structure and decision-making processes.  Such a business is
different from a true entrepreneurial venture however in that the
business has corporate resources at its disposal.  Such a company
business venture has to answer to the company management too.
Corporate venturing--to use the authors' term--offers innovative
and stimulating business opportunities.  Though venturing is in a
somewhat symbiotic relationship with the parent firm, the venture
would never threaten to ruin the parent firm as a entrepreneur
might be financially devastated by failure.

Block and MacMillan contrast an entreprenuerial enterprise with
their subject of corporate venturing, "When a new entrepreneurial
venture is created outside an existing organization, a wide
variety of environmental factors determine the fledgling
business's survival.  Inside an organization . . . senior
management is the most critical environmental factor."  This
circumstance is the basis for both the strengths and limitations
of a corporate venture.  In their book, the authors discuss how
senior management working with the leadership of a corporate
venture can work in consideration of these strengths and
weaknesses to give the venture the best chances for success.  If
the venture succeeds beyond the prospects and goals going into
its formation, it can always be integrated into the parent
company as a new division or subsidiary modeled after the regular
parts of a company with the open-ended commitment, regular hiring
practices, and reporting and coordination, etc., going with this.
As covered by the authors, done properly with the right
commitment, sense of realism and practicality, and preliminary
research and ongoing analysis, corporate venturing offers a firm
new paths of growth and a way to reach out to new markets, engage
in fruitful business research, and adapt to changing market and
industry conditions.  The principle of corporate venturing is the
familiar adage, "nothing ventured, nothing gained."  While it is
improbable that a corporate venture can save a dying firm, a
characteristic of every dying firm is a blindness about
venturing.  Just thinking about corporate ventures alone can
bring to a firm a vibrancy and imagination needed for business

Ideas, insights, and vision are the essence of corporate
venturing.  But these are not enough by themselves. Corporate
venturing is based as much on the right personnel, especially the
top leaders.  The authors advise to select current employees of a
firm to lead a corporate venture whenever feasible because they
already have relationships with senior management who are the
ultimate overseers of a venture and they understand the corporate
culture.  In one of their several references to the corporate
consultant and motivational speaker Peter Drucker, the authors
quote him as identifying only half jokingly the most promising
employees to lead the corporate venture as "the troublemakers."
These are the ones who will be given the "great freedom and a
high level of empowerment" required to make the venture workable
and who also are most suited to "adapt rapidly to new
information."  Such employees for top management of a venture are
not entirely on their own.  The other side of this, as Brock and
MacMillan go into, is for such venture management to earn and
hold the trust and confidence of the firm's top management and
work within the framework and follow the guidelines set for the

Corporate venturing is an operation which is a hybrid of the
standard corporate interests and operations and an independent
business with entrepreneurial flexibility mainly from focus on
one product or service or at most a few interrelated ones,
simplified operations, and streamlined decision-making.  From
identifying opportunities and getting starting through the
business plan and corporate politics, Brock and MacMillan guide
the readers into all of the areas of corporate venturing.

Zenas Block is a former adjunct professor with the Executive MBA
Program at the NYU Stern School of Business.  Ian C. MacMillan is
associated with Wharton as a professor and a director of a center
for entrepreneurial studies.


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

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  Go to 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 * * *