TCREUR_Public/120607.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, June 7, 2012, Vol. 13, No. 113

                            Headlines



F R A N C E

EBIZCUSS.COM SA: Goes Into Court-Appointed Liquidation


G E R M A N Y

SOLAR MILLENNIUM: Seeks to Stop Suits in U.S.


G R E E C E

OMEGA NAVIGATION: Plan Filing Deadline Extended to July 20
* GREECE: Needs Second Debt Cut & "Orderly Insolvency"
* Moody's Lowers Deposit, Debt Ratings on 2 Grecian Banks to Caa2


H U N G A R Y

HORVATH CIPO: High-Profile Shoe Retailer Placed in Liquidation


I R E L A N D

ATLANTIC HOME: Files for Examinership; Five Stores Face Closure
NEWELL CONSTRUCTION: Receiver to Take Control of Assets


I T A L Y

BANCA POPOLARE: Moody's Cuts Pref. Securities Ratings to B3(hyb)


K A Z A K H S T A N

BTA BANK: Executive Complains About Forged Signatures


P O L A N D

PBG SA: Terminates Standstill Agreement with Banks


S L O V E N I A

* SLOVENIA: Top 20 Builders Owe EUR900-Mil. to Banks & Partners


S P A I N

FONCAIXA FTGENCAT 4: Moody's Cuts Rating on EUR6MM Notes to Caa1
* SPAIN: Moody's Reviews Ratings on ABS & RMBS for Downgrade


U K R A I N E

VAB BANK: Moody's Affirms 'E/Caa1' Ratings; Outlook Positive


U N I T E D   K I N G D O M

GLOBAL SHIP: 2012 Annual Shareholders Meeting Set for July 10


X X X X X X X X

* EUROPE: Senior Unsecured Creditors to Take Hit Under EU Plan
* Upcoming Meetings, Conferences and Seminars


                            *********


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F R A N C E
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EBIZCUSS.COM SA: Goes Into Court-Appointed Liquidation
------------------------------------------------------
Telecompaper reports that eBizcuss, Apple's biggest independent
retailer in France, has gone into court-appointed liquidation
with three months to find a buyer while it continues trading.
Takeover offers can be made until June 20, 2012, Telecompaper
says.

Telecompaper recalls that the company sued Apple in April for
allegedly throttling shipments after it opened Apple Stores in
France.

EBizcuss has been distributing Apple products for around 30 years
and employs 120 people at 15 stores.



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G E R M A N Y
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SOLAR MILLENNIUM: Seeks to Stop Suits in U.S.
---------------------------------------------
Solar Millennium AG, subject to insolvency proceedings in
Germany, filed a Chapter 15 bankruptcy petition (Bankr. D. Del.
Case No. 12-11722) on June 4, 2012, to stop lawsuits in the U.S.

Rechstanwalt Volker Bohm, the insolvency administrator, says SMAG
commenced insolvency proceedings with a local court in Germany on
Dec. 31, 2011.  The Furth court in February 2012 ascertained that
SMAG is insolvent and over-indebted.  A creditors committee that
includes UniCredit Bank AG as member was appointed.

SMAG is party to multiple proceedings in the U.S., pending before
the Superior Court of the State of California, County of Alameda,
Oakland Division, and the District Court of Clark County, Nevada.
In the case pending in California, the former CEO of SMAG demands
considerable damages for alleged wrongdoings against SMAG and
certain of its subsidiaries.  In the Nevada case, Global Finance
Corp. claims compensation for an alleged breach of a joint
venture agreement.



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


OMEGA NAVIGATION: Plan Filing Deadline Extended to July 20
----------------------------------------------------------
In connection with its Chapter 11 proceedings in Houston, Texas,
Omega Navigation Enterprises Inc. and its major creditor
constituencies are continuing to engage in mediation discussions
concerning a potential Chapter 11 plan of reorganization.  In
connection with the mediation proceedings, the parties have
agreed to extend various deadlines in the Chapter 11 proceedings,
including the extension until July 20, 2012, of Omega's exclusive
right to file a Chapter 11 plan of reorganization.  The details
of the mediation process remain confidential.

In the meantime, the management team continues to operate the
business in the ordinary course.  Omega will continue to honor
all of its charter obligations during the pendency of the court
protection.  Omega believes the Chapter 11 reorganization process
will help the Company facilitate a restructuring of its balance
sheet and is working towards exiting Chapter 11 as a financially
stronger entity that will be positioned to enjoy future growth
based on the strength of its existing modern fleet of product
tanker vessels.

                      About Omega Navigation

Athens, Greece-based Omega Navigation Enterprises Inc. and
affiliates, owner and operator of tankers carrying refined
petroleum products, filed for Chapter 11 protection (Bankr. S.D.
Tex. Lead Case No. 11-35926) on July 8, 2011, in Houston, Texas
in the United States.

Omega is an international provider of marine transportation
services focusing on seaborne transportation of refined petroleum
products.  The Debtors disclosed assets of US$527.6 million and
debt totaling US$359.5 million.  Together, the Debtors wholly own
a fleet of eight high-specification product tankers, with each
vessel owned by a separate debtor entity.

Judge Karen K. Brown presides over the case.  Bracewell &
Giuliani LLP serves as counsel to the Debtors.  Jefferies &
Company, Inc., is the financial advisor and investment banker.

The Official Committee of Unsecured Creditors has tapped Winston
& Strawn as local counsel; Jager Smith as lead counsel; and First
International as financial advisor.


* GREECE: Needs Second Debt Cut & "Orderly Insolvency"
------------------------------------------------------
According to Bloomberg News' Rainer Buergin, Finnish Foreign
Minister Erkki Tuomioja told Germany's Die Zeit weekly newspaper
that Greece will probably need a second debt cut and an "orderly
insolvency" to return to sustainable public finances.

Mr. Tuomioja, as cited by the newspaper, said in an interview
that markets have already priced in a Greek default and the
damage that would follow such an event would be less catastrophic
than many fear, Bloomberg relates.  He said that it's up to the
Greeks to decide whether they want to keep the euro, Bloomberg
notes.


* Moody's Lowers Deposit, Debt Ratings on 2 Grecian Banks to Caa2
-----------------------------------------------------------------
Moody's Investors Service has downgraded the deposit and debt
ratings of Emporiki Bank of Greece S.A. and General Bank of
Greece to Caa2 from B3, with a negative outlook, reflecting risks
emanating from the increasing probability of Greece exiting the
euro area, as outlined in the special comment "Greek country
ceiling reflects heightened risk of euro area exit" published on
June 1, 2012.

The rating actions conclude the review for downgrade initiated on
December 15, 2011 for Emporiki and on December 16 for Geniki.

Emporiki is fully-owned by Credit Agricole (Aa3 deposit rating;
C- standalone bank financial strength rating (BFSR)/ baa2
baseline credit assessment (BCA), all on review for downgrade)
and Geniki is majority (99%) owned by Societe Generale (A1
deposit rating, on review for downgrade; C- BFSR/baa1 BCA).

Ratings Rationale

As outlined in the aforementioned special comment, Moody's
considers that there is a now a heightened risk of Greece exiting
the euro area. Although there remains substantial incentives for
the Greek authorities and euro area to avoid such an outcome, the
risk of a euro exit could increase further following the June 17
Greek parliamentary elections.

The main driver for the rating actions on Emporiki and Geniki is
Moody's view that the increased exit risk effectively limits to
Caa2 the highest rating that can be assigned to banks in Greece,
regardless of parental support considerations. Although it is not
Moody's base case scenario, a Greek exit would significantly
augment the potential for a sharp acceleration of deposit
outflows, which could lead to a deposit freeze and ultimately
culminate in a currency redenomination that would entail
significant losses to depositors.

The imposition of a deposit freeze on Greece's banking system
would prevent the parent groups from supporting the obligations
of their Greek subsidiaries towards depositors and other
creditors, regardless of their financial capacity or willingness
to do so. Moody's also considers that the ability of the parent
groups to protect depositors from redenomination risk is limited.

Accordingly, despite the strong track record of French parent
banks in providing funding and liquidity support over the last
three years, Moody's has lowered the deposit ratings of Emporiki
and Geniki to Caa2, which is commensurate with the risk level now
assigned to a euro exit, effectively capping parental support
uplift from their caa3 standalone credit assessment to one notch,
instead of three previously.

Emporiki and Geniki's deposit and debt ratings are now aligned
with those of other rated domestically-owned Greek banks, which
receive one notch of systemic support, taking into account
capital support from the Hellenic Financial Stability Fund as
well as broader central bank funding. These domestically-owned
banks were not affected by the announcement given that their Caa2
ratings (negative outlook) sufficiently capture Moody's current
view regarding the risk of a Greek exit.

The rating outlook for the deposit and debt ratings of Emporiki
and Geniki is negative, reflecting the significant downside risks
in Greece's stressed operating environment and the possibility of
a further increase in the risk of a Greek exit.

What Could Move The Ratings Up/Down

Any indication of an increase in the likelihood of Greece exiting
the euro area could exert further downward pressure on the bank
ratings, considering that this type of risk limits the maximum
rating that can be achieved in the country.

Moody's believes there is little likelihood of any upward rating
momentum, either driven by increased parental support for the
banks covered by the announcement, or from a strengthening of
their standalone credit assessments in the currently difficult
economic environment.

List of Affected Ratings

Emporiki Bank of Greece SA and Emporiki Group Finance plc:

- Long-term deposit and senior unsecured debt ratings downgraded
   to Caa2 from B3

- Subordinated debt ratings downgraded to Caa3 from Caa1

- BFSR remains at E, mapping to a standalone credit strength of
   Caa3

All the above ratings, except the BFSR, have a negative outlook.

General Bank of Greece SA:

- Long-term deposit rating downgraded to Caa2 from B3

- BFSR remains at E, mapping to a standalone credit strength of
   Caa3

All the above ratings, except the BFSR, have a negative outlook.

The methodologies used in these ratings 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.

The two banks affected by the rating action are headquartered in
Athens, Greece. As of December 2011, Emporiki Bank of Greece SA
reported total assets of EUR21.7 billion, and General Bank of
Greece SA reported total assets of EUR3.3 billion.



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


HORVATH CIPO: High-Profile Shoe Retailer Placed in Liquidation
--------------------------------------------------------------
All Hungary News reports that Horvath Cipo Kft is shutting down
after 16 years in business, following a court order for its
liquidation.  The company, which was present in most of Hungary's
shopping centers, had gone through a very bad patch in 2008-2009
but was apparently profitable in 2010.

The report relates that analysts said Horvath has most likely
become the victim of its pursuit of a rapid expansion policy,
though obviously the overall weakness of the retail segment -- or
the country's EU-record 27% VAT rate -- couldn't have helped.

Hungary-based Horvath Cipo Kft is high-profile shoe retailer.
The company had 81 staff.



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I R E L A N D
=============


ATLANTIC HOME: Files for Examinership; Five Stores Face Closure
---------------------------------------------------------------
The Daily Business Post reports that Atlantic Home Care has filed
for examinership.

According to Post, Atlantic's parent company Grafton Group said
that the restructuring of the chain may see the closure of five
of its stores with the loss of 38 full time and 76 part time
jobs.  Grafton said that the restructuring is subject to
agreement being reached with landlords on adjusting rents to
current open market levels, Post notes.

Grafton, as cited by Post, said that if the restructuring is
successful it could save 234 of the 348 staff employed by
Atlantic and "a smaller sustainable business can emerge from the
examinership".

The statement said that Atlantic accounts for 2.75% of Group
revenue and has traded at a loss since 2007, Post relates.  It
said that the turnover of Atlantic has fallen by 44% from EUR100
million to EUR56 million in that period and it continues to trade
at a loss in the current year, Post discloses.

Grafton said that an independent accountants' report from KPMG on
Atlantic has concluded that it is possible for a sustainable and
profitable business to emerge from the examinership process based
on a restructuring of the company, according to Post.

Grafton said that Atlantic has no bank debt and is not part of
the Group's financing arrangements and accordingly, this
development will have no impact on financing and trading
arrangements in the group and its other subsidiary companies in
Ireland, Britain and Belgium, Post notes.

Atlantic Home Care is a DIY store chain based in Ireland.


NEWELL CONSTRUCTION: Receiver to Take Control of Assets
-------------------------------------------------------
Donal O'Donovan at Irish Independent reports that the National
Asset Management Agency has appointed a receiver to take control
of a number of assets of Newell Construction.

NAMA has appointed Kieran Wallace of KPMG as receiver of Newell,
which is already in liquidation, Irish Independent relates.

The most recent accounts filed for the company show it had bank
debts of EUR26.5 million in 2009, Irish Independent notes.
Documents filed with the Companies Office show that AIB, ACC,
Anglo Irish Bank and Bank of Scotland (Ireland) all have charges
over the company's assets, Irish Independent states.

Anglo's appointment of a receiver was made following the
appointment of liquidator Conor O'Boyle of O'Boyle & Associates,
Irish Independent discloses.

Newell Construction is based in Galway.  It was owned by Marian
and Patrick Newell and was involved in developments at Tuam and
Headford in Co Galway and Mountrath in Co Laois.



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I T A L Y
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BANCA POPOLARE: Moody's Cuts Pref. Securities Ratings to B3(hyb)
----------------------------------------------------------------
Moody's Investors Service downgraded the B1(hyb) ratings of Banca
Popolare di Milano's preferred securities to B3(hyb) with a
negative outlook, following the bank's announcement that it will
not pay the coupons due in June and July 2012. The two-notch-
downgrade to B3(hyb) reflects the coupon omission this year and
some uncertainty in Moody's view whether coupon payments will be
resumed next year again, given the challenging operating
environment.

Ratings Rationale

On May 29, 2012, the bank announced that, according to the terms
of its 9% perpetual subordinated notes and 8.393% non-cumulative
preferred securities (the latter issued by the backed vehicle BPM
Capital Trust I), it will not pay its coupons due in June and
July, which can be skipped at the option of the bank due to the
breach of the net profit trigger.

The coupons are paid annually and quarterly respectively and are
non-cumulative; thus, the payments will be lost.

Moody's factors two years of missed coupons into its expected
loss analysis to reflect a possibility that the bank may not have
distributable profits in 2013 and will opt again to skip the
coupon. The outlook remains negative, primarily reflecting the
negative outlook on the bank's standalone credit assessment of
ba1 as well as the possibility of missed coupons for a longer
period of time.

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.

Banca Popolare di Milano is headquartered in Milan, Italy. At
March 31, 2012 it had total assets of EUR53 billion.



===================
K A Z A K H S T A N
===================


BTA BANK: Executive Complains About Forged Signatures
-----------------------------------------------------
Nariman Gizitdinov at Bloomberg News reports that a senior BTA
Bank executive said his signatures were forged last year and used
to backdate documents in the months the Kazakh lender sought to
staunch a capital deficit that forced its second debt
restructuring in December.

According to Bloomberg, three people directly familiar with the
matter said that the official, who served on the bank's
management board, filed a complaint after discovering the
fraudulent use of his electronic signatures in May 2011.

Citing commercial confidentiality, BTA declined to confirm or
deny the existence of any complaint or internal investigation,
Bloomberg notes.

BTA said that the technological procedure of using electronic
signatures has several layers of protection that require the
sanction or direct participation of the vote-wielding member of
the management board, Bloomberg relates.  It said that the
lender's information system also precludes unauthorized access to
data systems and employees' personal computers, according to
Bloomberg.

The allegations raise questions about the bank's controls and
oversight following state takeover of the country's biggest
lender before its default on US$12 billion of debt in 2009,
Bloomberg states.  Almaty-based BTA proposed a second
restructuring in December to stave off bankruptcy and failed to
make an interest payment on its July 2018 dollar bonds in
January, Bloomberg recounts.

Kazakhstan's state-owned wealth fund Samruk-Kazyna injected
KZT883 billion (US$6 billion) to raise BTA's equity capital in
2009 and 2010, the equivalent of about 4% of gross domestic
product, Bloomberg discloses.  BTA, which also defaulted in April
on US$5.2 billion of so-called recovery notes, predicts its
capital shortfall may reach about US$6 billion by the end of
2012, compared with a January estimate for a deficit of US$5.1
billion, according to Bloomberg.

                         About BTA Bank

BTA Bank AO (BTA Bank JSC), formerly Bank TuranAlem AO --
http://bta.kz/-- is a Kazakhstan-based financial institution,
which is involved in the provision of banking and financial
products for private and corporate clients.



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P O L A N D
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PBG SA: Terminates Standstill Agreement with Banks
--------------------------------------------------
Marta Waldoch and Maciej Martewicz at Bloomberg News report that
PBG SA said its standstill agreement signed on May 14 with banks
was terminated after two creditors, Polski Bank
Przedsiebiorczosci SA and Bank Gospodarki Zywnosciowej SA,
withdrew from the arrangement.

In a separate report, Bloomberg News' Mr. Martewicz relates that
Analizy Online, the company that tracks local funds, said the
bankruptcy of PBG may cause losses at 32 mutual funds that
invested more that PLN500 million in the company's bonds.

As reported by the Troubled Company Reporter-Europe on June 6,
2012, Bloomberg News disclosed that PBG decided to file for
bankruptcy to help reach an agreement with creditors to cut debt
by as much as 31%.  PBG said in a regulatory filing on Monday
that the company is proposing to honor 69% of its debt to
creditors owed more than PLN1 million (US$282,700), 80% to those
owned from PLN100,000 to PLN1 million and 100% for those owned
lesser sums, Bloomberg noted.  PBG Chief Financial Officer
Przemyslaw Szkudlarczyk said on Monday that PBG's unconsolidated
debt, which doesn't include the borrowings of its unit, amounts
to PLN1.5 billion, Bloomberg related.  According to Bloomberg,
Kinga Banaszak-Filipiak, a spokeswoman, said the entire group's
debt at its 12 crediting banks is at PLN1.7 billion.  The CFO, as
cited by Bloomberg, said that PBG's four biggest bank creditors
are Bank Pekao SA, Bank Zachodni WBK SA, ING Bank Slaski SA and
Nordea Bank Polska SA, Bloomberg.  PBG said that holders of more
than PLN1 million of PBG debt may also be given the option of
converting 12% of the debt into company shares at a rate of PLN40
a share, to be executed one year after a debt agreement is
reached, Bloomberg notes.

PBG SA is Poland's third-largest builder.



===============
S L O V E N I A
===============


* SLOVENIA: Top 20 Builders Owe EUR900-Mil. to Banks & Partners
---------------------------------------------------------------
The Slovenia Times, citing the daily Dnevnik, reports that the
20 biggest Slovenian builders still in operation owed nearly
EUR900 million to banks and business partners at the end of 2011,
the total amount of their debt exceeding their capital more than
three-fold.

Slovenian construction companies finance their operations mainly
with bank loans, STA notes.  These amounted to half a billion
euros at the end of last year, STA discloses.  The combined
financial debt of the analyzed companies rose by a further
EUR10 million last year as half of them was not even able to pay
off interest, STA says.

Dnevnik said that the builders have shifted a large portion of
their financial burden onto their business partners, owing as
much as EUR384 million to them at the beginning of this year, STA
relates.

According to STA, noting that most of the builders are no longer
in a position to pay back their debts, the daily points out that
the actual state of their finances is unknown to the public as
many receivership proceedings in the past showed that the
builders are also encumbered by the many guarantees for loans
hired by their project firms.

The data refer to companies Primorje, CGP Novo mesto, Kraski
zidar, Gorenjska gradbena druzba, CPL, SZ-ZGP Ljubljana, Begrad,
Energoplan, Pomgrad - Gradnje, Begrad Gradnje, Strabag, SGP
Pomgrad, GIC Gradnje, Granit, KPL, Gradis skupina G, Cestno
podjetje Nova Gorica, Stavbenik, VOC Celje and CPK, STA
discloses.

The 20 constructors generated a combined revenue of EUR956
million last year and a combined net loss of EUR77 million, STA
recounts.  This means they generated EUR1.3 billion less revenues
than the then top twenty builders did in 2008, STA states.



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


FONCAIXA FTGENCAT 4: Moody's Cuts Rating on EUR6MM Notes to Caa1
----------------------------------------------------------------
Moody's Investors Service has downgraded the rating of 11 notes
in three Spanish SME ABS transactions originated by CaixaBank
(A3/P-2 on watch for downgrade) following worse-than-expected
performance and lower-than-average credit enhancement levels.

Ratings Rationale

The rating action concludes the review that Moody's initiated
between September 2011 and February 2012 for the various
tranches. Low levels of credit enhancement and deteriorating
performance led to the downgrade of 11 tranches and the
confirmation of one tranche rating.

-- PERFORMANCE

Historically, all three transactions have generally performed
better than Moody's Spanish SME delinquency index. As of March
2012, Moody's Spanish SME 90- to 360-day delinquencies index
stood at 3.6% ("Spanish SME ABS Indices -- March 2012 ", May
2012). This compares to 90- to 360-day delinquency levels of 3.2%
in FONCAIXA FTGENCAT 3, 1.8% in FONCAIXA FTGENCAT 4, 2.2% in
FONCAIXA FTGENCAT 5. A year ago, 90- to 360-day delinquencies
stood at 1.4%, 0.69% and 1.2%, respectively in the three pools
and has therefore increased in all cases, following the sector
trend.

-- KEY REVISED ASSUMPTIONS: CUMULATIVE DEFAULT, VOLATILITY AND
RECOVERY

Moody's has reassessed its lifetime default expectation for the
collateral pools. This reassessment factored in the collateral
performance to date and any likely further deterioration of the
pools' performance in the current down cycle. In doing so, the
rating agency took into account the pools' composition, including
the transaction's exposure to the real-estate market.

For FONCAIXA FTGENCAT 3, Moody's now assumes a mean default of
13.5% of the current portfolio (equivalent to a lifetime 7.4%
default assumption), which, with a 5.3 year WAL translates into a
Ba3 pool quality. Moody's revised its volatility assumption to
60%, from 54% previously due to increased concentration. The pool
features an effective number of 986 borrowers and 47% exposure to
the real estate sector, while 99% of the loans benefit from a
mortgage guarantee with a weighted average LTV of 34%. The
recovery rate assumption was left unchanged at 65% (stochastic
recovery rate).

For FONCAIXA FTGENCAT 4, Moody's now assumes a mean default of
11% of the current portfolio (equivalent to a lifetime 7.4%
default assumption), which, with a 6.3 years WAL translate into a
Ba2 pool quality. Moody's revised its volatility assumption to
46%, from 50%. The pool features an effective number of 1,098
borrowers and a 22% exposure to the real estate sector, while 99%
of the loans benefit from a mortgage guarantee with a weighted
average LTV of 47%. Moody's increased its recovery rate
assumption to 65% (stochastic recovery rate) from 48%, taking
into account the value of the collateral.

For FONCAIXA FTGENCAT 5, Moody's now assumes a mean default of
13.4% of the current portfolio (equivalent to a lifetime 12.9%
default assumption), which, with a 6.4 years WAL translate into a
Ba3 pool quality. Moody's revised its volatility assumption to
46%, from 50%. The pool features an effective number of 1,169
borrowers and 19% exposure to the real estate sector, and 91% of
the loans benefit from a mortgage guarantee with a weighted
average LTV of 43%. The recovery rate assumption was left
unchanged at 65% (stochastic recovery rate).

To account for the uncertainties in the current macroeconomic
environment, Moody's also tested the effect of increased
volatility levels up to 70% to 85% range.

Moody's analyzed various sensitivities of recovery rates to test
the robustness of its revised ratings. For instance, Moody's
observed that the quantitative/model-indicated rating outcome of
the Class A notes of all the transactions would remain consistent
with the revised rating if the recovery rate was lowered to a 55%
fixed recovery rate.

As such, Moody's analysis encompasses the assessment of stressed
scenarios.

As a result of the revised assumptions and sensitivity runs as
explained above, Moody's downgraded all but one tranche in these
three transactions. Moody's confirmed the Aa2(sf) rating of Class
AS of Foncaixa FTGENCAT 5 which is currently representing 12.9%
of the total pool balance and is amortizing senior to the other
tranches. Moody's believes that it is extremely unlikely that the
Class AS notes will amortize pro rata with the Class AG notes
given the distance to the pro rata trigger and the amortization
speed of the Class AS notes.

-- OPERATIONAL AND COUNTERPARTY RISK

CaixaBank is servicer, account bank and swap counterparty in all
three transactions. The swaps provide significant support to the
senior bonds in this transaction by guaranteeing excess spread on
the notes amount. Following the downgrade of CaixaBank on May 17,
2012 to A3/P-2, the transaction documents contemplate that some
remedies are put in place in order to mitigate the increased risk
to the swap counterparty. Moody's will monitor the implementation
of such remedies.

As the Euro area crisis continues, the rating of the structured
finance notes remain exposed to the uncertainties of credit
conditions in the general economy. The deteriorating
creditworthiness of euro area sovereigns as well as the weakening
credit profile of the global banking sector could negatively
impact the ratings of the notes.

Principal Methodologies

The principal methodology used in these ratings is Moody's
Approach to Rating CDOs of SMEs in Europe published in February
2007. Other methodologies such as Refining the ABS SME Approach:
Moody's Probability of Default assumptions in the rating analysis
of granular Small and Mid-sized Enterprise portfolios in EMEA
published in March 2009, and Moody's Approach to Rating Granular
SME Transactions in Europe, Middle East and Africa published in
June 2007 have also been used in assigning and monitoring these
ratings.

Moody's used its excel-based cash flow model, Moody's ABSROM(TM),
as part of its quantitative analysis of the transaction. Moody's
ABSROM(TM) model enables users to model various features of a
standard European ABS transaction including: (i) the specifics of
the default distribution of the assets, their portfolio
amortization profile, yield or recoveries; and (ii) the specific
priority of payments, triggers, swaps and reserve funds on the
liability side of the ABS structure. Moody's ABSROM(TM) User
Guide is available on Moody's website and covers the model's
functionality as well as providing a comprehensive index of the
user inputs and outputs. MOODY'S CDOROMv2.8(TM) was used to
estimate the default distribution.

Ratings List

Issuer: FONCAIXA FTGENCAT 3 Fondo de Titulizacion de Activos

    EUR449.3MM A(G) Notes, Downgraded to Aa3 (sf); previously on
    Feb 21, 2012 Downgraded to Aa2 (sf) and Remained On Review
    for Possible Downgrade

    EUR10.7M B Notes, Downgraded to A3 (sf); previously on Nov 4,
    2011 Aa3 (sf) Placed Under Review for Possible Downgrade

    EUR7.8M C Notes, Downgraded to Ba2 (sf); previously on Feb 1,
    2010 Confirmed at Baa2 (sf)

    EUR6.5M D Notes, Downgraded to B3 (sf); previously on Feb 1,
    2010 Confirmed at Ba2 (sf)

Issuer: FONCAIXA FTGENCAT 4 Fondo de Titulizacion de Activos

    EUR326M A (G) Notes, Downgraded to A1 (sf); previously on Feb
    21, 2012 Downgraded to Aa2 (sf) and Remained On Review for
    Possible Downgrade

    EUR9.6M B Notes, Downgraded to Baa1 (sf); previously on Sep
    22, 2011 A2 (sf) Placed Under Review for Possible Downgrade

    EUR7.2M C Notes, Downgraded to Ba2 (sf); previously on Sep
    22, 2011 Ba1 (sf) Placed Under Review for Possible Downgrade

    EUR6M D Notes, Downgraded to Caa1 (sf); previously on Sep 22,
    2011 B3 (sf) Placed Under Review for Possible Downgrade

Issuer: FONCAIXA FTGENCAT 5 Fondo de Titulizacion de Activos

    EUR513.1M A (S) Notes, Confirmed at Aa2 (sf); previously on
    Feb 21, 2012 Downgraded to Aa2 (sf) and Remained On Review
    for Possible Downgrade

    EUR449.4M A (G) Notes, Downgraded to A2 (sf); previously on
    Feb 21, 2012 Downgraded to Aa2 (sf) and Remained On Review
    for Possible Downgrade

    EUR21M B Notes, Downgraded to Ba1 (sf); previously on Sep 22,
    2011 A3 (sf) Placed Under Review for Possible Downgrade

    EUR16.5M C Notes, Downgraded to B3 (sf); previously on Sep
    22, 2011 Ba1 (sf) Placed Under Review for Possible Downgrade


* SPAIN: Moody's Reviews Ratings on ABS & RMBS for Downgrade
------------------------------------------------------------
Moody's Investors Service has placed on review for downgrade the
ratings of residential mortgage-backed securities ("RMBS") and
asset-backed securities ("ABS") that have a strong indirect
linkage to Spanish banks that Moody's downgraded on May 17, 2012.
The rating action affects 83 tranches, including 24 RMBS and 33
ABS transactions.

As detailed in an earlier announcement Moody's is placing on
review for downgrade securities that rely strongly on the
performance of affected banks, while monitoring the
implementation of the various protection mechanism designed to
reduce credit linkage. If the transactions parties fail to
implement effective protection mechanism in a timely fashion,
these affected securities will likely suffer a multi notch
downgrade.

A List of Affected Credit Ratings, which identifies each affected
issuer, is available at:

http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF286998

Ratings Rationale

The rating announcement reflects the increased counterparty risk
following the deterioration in credit quality of Spanish banks
acting in various roles in the affected ABS and RMBS
transactions. The rating action takes into account: (i) the
potential for payment disruption risks, and (ii) the level of
exposure to swap providers and issuer account banks.

Payment Disruption Risk

Moody's considers that transactions more likely to suffer a
potential payment disruption are those with weak servicers and no
back-up arrangements. Moody's has therefore placed on review for
downgrade senior notes in 10 transactions with lowly rated
servicers and no triggers for the appointment of a back-up
servicer

Exposure to Issuer Account Banks

Moody's considers transactions to be highly exposed to issuer
account banks in cases where a substantial portion of the credit
enhancement and liquidity in the transaction is deposited in an
issuer account bank rated below Prime-1. Moody's has placed on
review 69 tranches in 49 transactions where (i) the funds
deposited in the issuer accounts represent more than 10% of
current note balance; and (ii) for which the credit enhancement
reduced by such funds would be insufficient to support the
current rating of the affected notes.

Exposure to Swap Provider

Moody's has placed on review for downgrade notes in 1 transaction
whereby the swap counterparty was already in breach of a
replacement trigger (loss of Baa1) prior to the downgrade
announced on May 17, 2012. The swap counterparties have now been
further downgraded. During the review Moody's will assess the
degree of linkage between the notes and swap counterparty rating.

Other Developments May Negatively Affect The Notes In Future

As the euro area crisis continues the ratings of the notes remain
exposed to the uncertainties of credit conditions in the general
economy. The deteriorating creditworthiness of euro area
sovereigns as well as the weakening credit profile of the global
banking sector could negatively impact the ratings of the notes.

Following the downgrade of Spain's long-term government bond
rating to A3, Moody's lowered the maximum achievable ratings in
Spain from Aaa(sf) to Aa2(sf). Furthermore, as discussed in
Moody's special report "Rating Euro Area Governments Through
Extraordinary Times -- An Updated Summary," published in October
2011, Moody's is considering reintroducing individual country
ceilings for some or all euro area members, which could affect
further the maximum structured finance rating achievable in those
countries. Moody's is also continuing to consider the impact of
the deterioration of sovereigns' financial condition and the
resultant asset portfolio deterioration on mezzanine and junior
tranches of structured finance transactions.

Other factors used in these ratings are described in Global
Structured Finance Operational Risk Guidelines: Moody's Approach
to Analyzing Performance Disruption Risk published in June 2011.

Key modeling assumptions, sensitivities, cash-flow analysis and
stress scenarios for the affected transactions have not been
updated as the rating action has been primarily driven by the
assessment of counterparty exposure.



=============
U K R A I N E
=============


VAB BANK: Moody's Affirms 'E/Caa1' Ratings; Outlook Positive
------------------------------------------------------------
Moody's Investors Service has affirmed the following ratings of
VAB Bank: E standalone bank financial strength rating (BFSR,
mapping to a standalone credit assessment of caa1); Caa1 long-
term local and foreign currency deposit ratings; Not-Prime short-
term local and foreign currency deposit ratings; Caa1 long-term
foreign currency debt rating and Ba1.ua National Scale Rating
(NSR). The outlook on the long-term ratings and the BFSR remains
positive, while NSR carries no specific outlook.

Ratings Rationale

According to Moody's, the affirmation of VAB Bank's ratings --
along with a positive outlook -- is driven by (i) the change in
ownership structure and, thus, the reset of strategic objectives
that took place in Q4 2011 thereby facilitating recovery of the
bank's profitability; (ii) demonstration of capital support from
the bank's current shareholders that should enable VAB Bank to
successfully implement the newly adopted strategy; and (iii) some
progress in cost-saving and business generation initiatives
demonstrated to date.

Prior to the aforementioned change in VAB Bank's ownership
structure in Q3 2011, TBIF Financial Services -- which sold its
84% stake VAB Bank to new investors in 2011 -- had aimed to
develop the retail business segment. VAB Bank's new owners are
seeking to develop the bank's corporate franchise especially in
granting loans to the agriculture sector.

As part of the newly adopted strategy, the VAB Bank started
branch network and operating cost optimization, leading to a drop
of over 16% in operating expenses in Q1 2012 compared to the same
period in Q1 2011. VAB Bank was also active in attracting retail
deposits, which demonstrated 21% growth in Q1 2012 and were re-
channelled to corporate loans that were in the early stages of
growth -- increasing by almost 28% in Q1 2012 ( on gross loan
book basis). Moody's considers the initiatives to be positive for
the bank's financial performance over a 12-month horizon, as its
strategy is likely to strengthen both profitability and
efficiency metrics which had been under severe pressure over past
three years.

Moody's also recognizes that VAB Bank's asset quality is weak and
is likely to require additional provisioning, thereby exerting
pressure on the bank's bottom-line profitability and capital in
2012. However, the shareholders are supportive to the bank and
injected UAH600 million in 2011, and adopted a resolution to
inject a further UAH500 million by the end of 1H2012,which
Moody's regards as sufficient to support business development
targets as well as to absorb losses from additional provisions.

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.

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 ".ua" for Ukraine.



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


GLOBAL SHIP: 2012 Annual Shareholders Meeting Set for July 10
-------------------------------------------------------------
The 2012 annual meeting of shareholders of Global Ship Lease,
Inc., will be held at the Company's administrative office at
Portland House, Stag Place, London SW1E 5RS on July 10, 2012, at
3:00 p.m. local time.

At the meeting, shareholders of the Company will consider and
vote upon these proposals:

   1. To elect two Term I Directors to serve until the 2015
      Annual Meeting of Shareholders;

   2. To ratify the appointment of PricewaterhouseCoopers Audit
      as the Company's independent public accounting firm for the
      fiscal year ending Dec. 31, 2012; and

   3. To transact other business as may properly come before
      the meeting or any adjournment thereof.

                      About Global Ship Lease

London, England-based Global Ship Lease (NYSE: GSL, GSL.U and
GSL.WS) -- http://www.globalshiplease.com/-- is a containership
charter owner.  Incorporated in the Marshall Islands, Global Ship
Lease commenced operations in December 2007 with a business of
owning and chartering out containerships under long-term, fixed
rate charters to world class container liner companies.

Global Ship Lease owns 17 vessels with a total capacity of 66,297
TEU with a weighted average age at June 30, 2010, of 6.3 years.
All of the current vessels are fixed on long-term charters to CMA
CGM with an average remaining term of 8.6 years.  The Company has
contracts in place to purchase two 4,250 TEU newbuildings from
German interests for approximately US$77 million each that are
scheduled to be delivered in the fourth quarter of 2010.  The
Company also has agreements to charter out these newbuildings to
Zim Integrated Shipping Services Limited for seven or eight years
at charterer's option.

As reported in the Dec. 1, 2012 edition of the TCR, Global Ship
Lease disclosed that it had entered into an agreement with its
lenders to waive until Nov. 30, 2012 the requirement under its
credit facility to conduct loan-to-value tests.  The credit
facility requires that loan-to-value, which is the ratio of
outstanding borrowings under the credit facility to the aggregate
charter-free market value of the secured vessels, cannot exceed
75%.

The Company's balance sheet at March 31, 2012, showed US$937.52
million in total assets, US$595.25 million in total liabilities
and US$342.26 million in total stockholders' equity.



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


* EUROPE: Senior Unsecured Creditors to Take Hit Under EU Plan
--------------------------------------------------------------
Jim Brunsden at Bloomberg News reports that senior unsecured
creditors will be put in the firing line to cover costs from
failing lenders under European Union plans unveiled on Wednesday,
as the bloc seeks to end an era of bank bailouts and move toward
more unified financial supervision.

Michel Barnier, the 27-nation bloc's financial services chief,
said the plans, which also include the setting up of a network of
national bank-financed funds to stabilize crisis-hit lenders, are
a necessary step to curb excessive risk taking and take taxpayers
off the hook for rescues, Bloomberg relates.

"We don't want governments to find themselves in the future with
their backs to the wall, and no option but to inject public
money," Bloomberg quotes Mr. Barnier as saying on Wednesday.
"Banks should pay for banks, we are going to break the link
between banking crises and public budgets."

EU leaders, including European Central Bank President Mario
Draghi and European Commission President Jose Barroso, have
called for a banking union with more coordination of regulation,
as lawmakers seek to bolster confidence damaged by debt turmoil,
Bloomberg notes.  EU President Herman Van Rompuy plans to report
on proposed "building blocks" for deeper integration in the 17-
nation euro area to the next summit of EU leaders on June 28-29
in Brussels, Bloomberg discloses.

According to Bloomberg, under Mr. Barnier's plans, national
governments would impose annual levies on banks to ensure that a
minimum amount of money, a so-called resolution fund, is
immediately available to stabilize a crisis-hit lender.  This
would allow regulators to buy time while other steps, such as
creditor writedowns, are enacted, Bloomberg states.


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

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 * * *