TCREUR_Public/120815.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Wednesday, August 15, 2012, Vol. 13, No. 162

                            Headlines



B E L G I U M

TELENET GROUP: Moody's Affirms 'Ba3' CFR on Increased Leverage
TELENET NV: Fitch Downgrades Issuer Default Rating to 'B+'


F R A N C E

ALCATEL-LUCENT: S&P Affirms 'B/B' Corporate Credit Ratings


G E R M A N Y

DEWEY & LEBOEUF: U.S. Court OKs Theirhoff as Wind Down Counsel


I R E L A N D

CAPPOQUIN POULTRY: High Court Appoints Interim Examiner
ELAN CORP: Moody's Reviews 'B1' Corp. Family Rating for Upgrade
ELAN CORP: S&P Puts 'B+' Corp. Credit Rating on Watch Positive
HOME PAYMENTS: Customers Likely to Recoup Up to 25%
MAPLEWOOD DEVELOPMENTS: Creditors Set to Appoint Liquidator


I T A L Y

EDISON SPA: Fitch Lifts Long-Term IDR to 'BB'; Outlook Positive


K A Z A K H S T A N

ZHAIKMUNAI LP: Moody's Corrects August 10 Rating Release


M A C E D O N I A

SKOPJE: Faces Bankruptcy; Owes EUR30 Million


N E T H E R L A N D S

CEVA GROUP: Moody's Changes Outlook on 'B3' CFR/PDR to Negative
TRONOX FINANCE: Moody's Rates $650MM Sr. Unsecured Notes 'B1'


N O R W A Y

REC WAFER: Parent Opts to File for Unit's Insolvency


P O L A N D

CENTRAL EUROPEAN: To Restate 2010 and 2011 Periodic Reports


R O M A N I A

HIDROELECTRICA SA: To Exit Insolvency June 30 Next Year


R U S S I A

BANK ROSSIYSKY: Fitch Upgrades LT Issuer Default Rating to 'B+'
FIRST MORTGAGE: Moody's Assigns 'Ba1' Rating to Class B Bonds
MARITIME BANK: Moody's Changes Outlook on 'B2' Ratings to Neg.
NORILSK NICKEL: Fitch Affirms 'BB+' Senior Unsecured Rating


S L O V E N I A

KRASKI ZIDAR: Files for Debt Restructuring


S P A I N

BBVA CONSUMO 3: S&P Affirms Rating on Class B Notes at 'B+'


U N I T E D   K I N G D O M

CHIRK GOLF CLUB: In Administration, Seeks Buyer
HOUSE OF BEAULY: Goes Into Liquidation; 14 Jobs Lost
RANGERS FOOTBALL: Debts Settled, Ibrox CEO Says


X X X X X X X X

* Big European Banks Technically Insolvent, Analyst Says


                            *********


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B E L G I U M
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TELENET GROUP: Moody's Affirms 'Ba3' CFR on Increased Leverage
--------------------------------------------------------------
Moody's Investors Service affirmed the Ba3 corporate family
rating (CFR) and the B1 probability-of-default rating (PDR) of
Telenet Group Holding NV following the company's announcement to
raise EUR700 million of additional senior secured debt for share
buybacks through a voluntary tender offer. The ratings outlook
remains stable.

This transaction will raise Telenet's leverage in line with its
publicly stated intention to increase reported net total leverage
ratio to up to 4.5x. This re-leveraging expectation was already
built in the Ba3 corporate family rating (CFR) for Telenet;
however, the transaction largely uses up the financial
flexibility previously incorporated in the rating.

The agency has also assigned a (P) Ba3 rating to the EUR500
million senior secured notes due 2022 being issued by Telenet
Finance V Luxembourg SCA ('Telenet Finance V' or 'the Issuer').
The notes are effectively pari-passu with Telenet's existing Ba3-
rated senior secured bank facility. Telenet also intends to raise
additional pari-passu senior secured bank debt of USD250 million
with final maturity in 2021, rated (P) Ba3.

Ratings Rationale

The proposed transaction will increase Telenet's reported net
total leverage ratio (as per the Senior Credit Facility
definition), to approximately 4.5x (from 3.1x reported at the end
of June 2012 - which excludes the impact from the upcoming
payment of EUR3.25 per share capital reduction and drawdown on
Facilities Q2 and R2). Moody's adjusted gross debt/ EBITDA was
4.1x on LTM basis as of June 30, 2012 and is expected to
deteriorate to just over 5x after incorporating the impact from
the upcoming EUR3.25 per share capital reduction, draw-downs on
Facilities Q2 and R2 and the proposed share buybacks.

The proposed transaction will deteriorate Telenet's strong credit
metrics. Although Telenet's ratings had already incorporated the
possibility of such a transaction, the leveraging largely uses up
the financial flexibility previously incorporated in the rating,
and hence the rating is now weakly positioned in the Ba3 rating
category.

Telenet will initiate the share buy-back through a voluntary
tender offer for a maximum of 18.2% of the outstanding share
capital of Telenet at a price of EUR35.00 per share. Binan
Investments B.V. (a wholly-owned subsidiary of Liberty Global,
Inc; rated Ba3/ Stable; Telenet's majority shareholder), will not
participate in this tender offer but has reserved its position
concerning tendering in possible future repurchase programs of
Telenet. If the maximum number of shares is tendered, Liberty
Global Inc's shareholding in Telenet would increase from 50.04%
to 61.18% of the outstanding share capital of Telenet (excluding
treasury shares).

Telenet Finance V is incorporated in Luxembourg as a special
purpose vehicle created to issue the proposed senior secured
notes to finance a EUR500 million term loan facility ('Finco
Loan') to Telenet International Finance S.a.r.l. ('Telenet
International'). The terms of the Finco loan will be recorded in
an additional facility accession agreement between Telenet
Finance V and Telenet International and the facility agent under
the Telenet Senior Credit Facility.

Moody's understands that Telenet's note-holders indirectly
benefit from the terms (including maintenance financial
covenants) of the Senior Credit Facility, plus incurrence
covenants within the Facility Accession Agreement. They also have
security over the Issuer's shares and over its assets, including
its rights to and benefit in the Finco loan. However, Moody's
notes that the holders of the notes will have only indirect
recourse to Telenet International so that in an enforcement
scenario they would have to enforce the security interest in the
Finco loan, and subsequently enforce the collateral granted in
favour of the Finco loan.

The Ba3 CFR reflects : (i) Telenet's solid market share in the
Belgian Digital TV market of approximately 38% as well as in the
country's fixed broadband market of approximately 37% and its
market leading positions for such services in Flanders; (ii) the
company's continued good operating growth trends and solid EBITDA
margins; (ii) its technologically advanced network; (iii) the
network price increases and the secured Belgian football rights
which should help support revenue growth in 2012; (iv) Telenet's
ability to increase its triple-play penetration -- by cross-
selling Digital TV and Fibernet products - and, thereby,
improving ARPU; and (v) the company's efforts to explore and
expand new growth drivers - B2B products and mobile business.

The rating also factors in (i) the competition that Telenet faces
particularly from incumbent operator, Belgacom (rated A1/
Stable), as well as from mobile operators such as Mobistar; (ii)
the increasing reliance on EBITDA growth to operate within its
own leverage targets as Telenet in future is expected to pay out
(at least) all of the internally generated free cash flow (as
defined by Telenet) in shareholder disbursements (in the absence
of suitable acquisition opportunities); and (iii) the
uncertainties associated with the imposition of regulation in the
Belgian broadcasting market.

Telenet has a solid debt maturity profile and its nearest
maturity is the EUR100 million notes due in November 2016,
followed by the term loan Q of EUR431 million due in 2017.

What Could Change the Rating - UP

Upward rating pressure would develop if, inter alia, the company
demonstrates clear commitment to maintain its gross debt to
EBITDA solidly below 4.5x (as calculated by Moody's) on a
sustained basis. A move to positive free cash flow generation (as
defined by Moody's - post capex and dividends) would also be a
positive factor.

What Could Change the Rating - DOWN

An increase in leverage towards 5.5x Gross Debt/EBITDA (as
adjusted by Moody's) resulting from aggressive shareholder
remuneration and/or significant debt-financed M&A activity
together with sustained negative free cash flow (as calculated by
Moody's) would exert downward pressure on the rating.

The principal methodology used in rating Telenet Group Holding
NV, Telenet Finance V Luxembourg S.C.A and Telenet International
Finance S.a r.l was the Global Cable Television Industry
Methodology published in July 2009. Other methodologies used
include Loss Given Default for Speculative-Grade Non-Financial
Companies in the U.S., Canada and EMEA published in June 2009.

Moody's issues provisional ratings in advance of the final sale
of securities and these ratings reflect Moody's preliminary
credit opinion regarding the transaction only. Upon a conclusive
review of the final documentation, Moody's will endeavor to
assign a definitive rating to the Notes. A definitive rating may
differ from a provisional rating.


TELENET NV: Fitch Downgrades Issuer Default Rating to 'B+'
----------------------------------------------------------
Fitch Ratings has downgraded Telenet NV's Long-term Issuer
Default Rating (IDR) to 'B+' from 'BB' and affirmed its Short-
term IDR at 'B'.  The Outlook on the Long-term IDR is Stable.
The agency has downgraded the senior secured rating of the
group's outstanding secured debt to 'BB' from 'BB+' and assigned
an expected rating of 'BB' (EXP) to the company's new secured
issuance.  Fitch has assigned Recovery ratings of 'RR2' to the
secured debt.

The rating actions follow Telenet's announcement of its intention
to raise approximately EUR700 million in new senior secured debt
to fund a share buyback of approximately EUR656 million.  The
combination of these transactions will result in leverage
increasing by roughly one turn of EBITDA, taking unadjusted net
debt EBITDA to above 5.0x at both 1H12 (pro-forma for the
announcement) and forecast FY2012.

While Telenet has consistently demonstrated strong pre-
distribution free cash flow generation and an ability to
deleverage, the level and debt-funded nature of distributions
suggests a willingness to maintain higher leverage than
previously anticipated by Fitch.  The agency had previously
expected leverage (including finance leases) to be managed up to
around 4.0x and guided that a metric consistently trending in the
4.3x-4.5x range would pressure the ratings.  Financial policy was
identified as the single most significant threat to the ratings
given the company's strong operational performance.  Fitch's base
case now envisages the metric trending in the high 4s through
2014 and potentially beyond, depending on future distributions.

Management target leverage remains net senior debt to EBITDA of
3.5x-4.5x. Finance leases add approximately 0.5x to these levels,
implying a total net leverage of up to 5.0x.  Distributions
(including capital reductions and buybacks) of approximately
EUR1.2 billion in 2012 and EUR509 million in 2011 reflect
approximately 4.8x and 2.0x the prior fiscal year's free cash
flow, respectively.  Fitch considers a pattern of high
distributions has been established and that the announcement
signals a tolerance for higher leverage and increased debt.
Distributions, at least through 2015, beyond which cash taxes are
expected to make a more significant dent on cash generation,
could be higher than Fitch's current base case assumption of
EUR300 million per annum beyond 2012.

Telenet's majority owner, Liberty Global Inc. (LGI) will not
participate in the buyback and consequently increase ownership to
around 61% from just over 50%.  While Fitch considers management
to exercise a high degree of autonomy and continues to rate
Telenet on a standalone basis, the agency considers financial
policy and leverage tolerance are influenced by this ownership.

Telenet's ratings otherwise take into account the company's
strong market position in triple-play telecom services in the
Flanders region of Belgium, which covers 60% of the country's
population.  Telenet is the region's dominant or incumbent
provider of pay TV, the leading provider of high-speed internet
and the region's second-largest provider of voice telephony.
Consequently, Telenet has a visible revenue base, a significant
amount of which derives from customer subscriptions.  Low levels
of churn, solid performance in consistently improving the number
of services taken by an individual customer and the migration of
its analogue TV customers to digital, all contribute to what
Fitch considers to be solid "second incumbent"-like qualities.

Business challenges include growing exposure to premium content
costs (mainly football rights), which in Fitch's analysis is
adjusted at the EBITDA level (compared with Telenet's treatment
as a capitalized cost), and margin and capex pressure driven by a
mobile strategy which includes a subsidized smartphone offer,
spectrum and infrastructure ownership.

The proposed regulatory imposition of wholesale access to the
cable network is presently not considered a significant near-term
risk to the business.  However, it is seen as an important
precedent for the industry and likely to remain an unwelcome
divergence of management attention.  Telenet currently expects
legal wrangling to postpone practical implementation until end-
2013 (analogue TV unbundling), and later for the introduction of
a combined digital TV/broadband offer.

Liquidity has traditionally been good, with the company carrying
high levels of cash (EUR347 million at YE11) and significant
headroom under its EUR158 million RCF maturing December 2016
(undrawn at 1H12).  While projected cash balances are expected to
be lower (Fitch forecast of EUR100 million at FYE12), Telenet has
one of the strongest pre-distribution cash flow profiles in the
peer group, no meaningful debt maturities before 2017 and the
bulk of maturities falling 2019 and beyond.

What Could Trigger A Rating Action?

Negative: Future developments that may, individually or
collectively, lead to negative rating action include:

  -- Net FFO leverage expected to consistently trend above 5.5x
     (noting that until 2016 when cash taxes are expected to
     become meaningful, FFO net leverage is likely to trend 0.1x
     higher than unadjusted net debt EBITDA).

  -- The above would apply whether driven by weakened operational
     performance -- at present considered less likely -- or the
     maintenance of excessive distributions.

  -- FFO fixed charge cover trending below 2.5x (FY11: 4.1x)

Positive: Financial policies that suggest an FFO net leverage
metric that was likely to remain below 4.5x - reflecting on going
operational performance and a more tempered distribution.

The rating actions are as follows:

  -- Long-term IDR: downgraded to 'B+'; Outlook Stable
  -- Short-term IDR: affirmed at 'B'
  -- Telenet N.V. senior secured bank facility: downgraded to
     'BB'; assigned 'RR2'
  -- Telenet Finance Luxembourg S.C.A. EUR500m due 2020:
     downgraded to 'BB'; assigned 'RR2' Telenet Finance
     Luxembourg II S.A. EUR100m due 2016: downgraded to 'BB';
     assigned 'RR2'
  -- Telenet Finance III Luxembourg S.C.A. EUR300m due 2021:
     downgraded to 'BB'; assigned 'RR2'
  -- Telenet Finance IV Luxembourg S.C.A. EUR400m due 2021:
     downgraded to 'BB'; assigned 'RR2'

Expected ratings assigned to the new debt announced 13 August
2012, as follows:

  -- Telenet Finance V Luxembourg S.C.A. EUR500m due 2022:
     'BB/RR2' (EXP)



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F R A N C E
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ALCATEL-LUCENT: S&P Affirms 'B/B' Corporate Credit Ratings
----------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on French
telecom equipment supplier Alcatel-Lucent to negative from
stable. "At the same time, we affirmed our 'B' long-term and 'B'
short-term corporate credit ratings on the company," S&P said.

"The outlook revision primarily reflects our expectations of weak
operating results and high cash flow losses in 2012, which if not
contained in 2013 could impair the group's still strong cash
balances, which support the ratings. Furthermore, our assessment
of the group's liquidity profile, which we currently view as
'adequate' under our criteria, could also weaken in light of the
group's expected cash flow losses and sizable upcoming debt
maturities of EUR0.6 billion in 2013 and EUR0.5 billion in 2014.
This is particularly the case if the group does not extend the
maturity of its EUR837 million revolving credit facility (RCF),
due in April 2013," S&P said.

"In our base-case scenario, we forecast weaker revenues, margins,
and free operating cash flows (FOCF) in 2012 and 2013 than in our
previous base case. This is primarily due the group's weaker-
than-expected first-half 2012 results and our anticipation of
telecom carriers' continued cautious or delayed spending in light
of high economic uncertainty, particularly in Europe, and fierce
ongoing competitive pressure. Nevertheless, we expect seasonally
stronger demand in the second half of 2012 and industry demand to
catch up in 2013," S&P said.

"As a result, we forecast Alcatel-Lucent to report a year-on-year
revenue decline of about 3% in 2012, followed by low-single-digit
revenue growth in 2013. In addition, we expect the group's
operating margin (as adjusted by Alcatel-Lucent) to drop to about
break-even levels in 2012, compared with 3.4% in 2011. In 2013,
we expect the group's operating margins to improve modestly to
about 3%, chiefly on the back of higher sales volumes, an
improved revenue mix, and significant cost-cutting. In the first
half of 2012, Alcatel Lucent's revenues declined by 10% year on
year, and its operating margin dropped by 4.9 percentage points
to negative 3.7%," S&P said.

"In our updated base-case assessment, we anticipate that Alcatel-
Lucent's FOCF will deteriorate to about negative EUR650 million-
EUR700 million in 2012, compared with negative EUR539 million in
2011. This will mainly be due to higher operating losses and
restructuring costs, which are only partly offset by modest
working capital inflows and moderate proceeds from the group's
plan to monetize its patent portfolio. We assume that the group
will be able to generate about break-even FOCF in the second half
of 2012, after negative FOCF of EUR674 million in the first
half," S&P said.

"Consequently, we expect the group's cash balances, including
short-term marketable securities of EUR5 billion as of June 30,
2012, to remain largely unchanged at year-end 2012, which
supports the current ratings. Nevertheless, we expect cash
balances to deteriorate meaningfully in 2013, primarily due to
the expected repayment of EUR0.6 billion in debt and moderate
negative FOCF. We expect continued cash flow losses in 2013,
primarily because of higher restructuring costs, which are only
partly offset by the expected improvement in revenues and
operating margins," S&P said.

"The negative outlook reflects the possibility of a one-notch
downgrade over the next six to 12 months if Alcatel-Lucent's
currently strong cash position or adequate liquidity profile were
impaired by significantly negative free cash flow generation
through 2013. This could result from continually weak economic
conditions, fierce competition, ineffective cost-cutting
measures, or lower-than-expected proceeds from the patent
monetization plan. In addition, we could take a negative view if
the group did not extend the existing RCF in 2012 or if capacity
under this facility materially declined," S&P said.

"We could revise the outlook to stable, if Alcatel-Lucent were
able to generate about break-even free cash flow on a sustainable
basis. We would also expect the group to maintain an adequate
liquidity position, including meaningful cash balances and
capacity under its RCF," S&P said.



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DEWEY & LEBOEUF: U.S. Court OKs Theirhoff as Wind Down Counsel
--------------------------------------------------------------
The Hon. Martin Glenn of the U.S. Bankruptcy Court for the
Southern District of New York authorized Dewey & Leboeuf LLP to
employ Theirhoff Muller & Partner as its German wind down counsel
and consultants.

Thierhoff is expected to:

   (a) assist in the orderly and cost efficient wind down of the
       Frankfurt, Germany Office;

   (b) provide advice on matters associated with German
       insolvency issues;

   (c) provide consultancy advice and support as in the
       presentation of an estimated outcome statement in regards
       to the wind down of the Frankfurt Office; and

   (d) perform other tasks as may be mutually agreed to with the
       Debtor relating to the wind down of the Frankfurt Office.

Renate Muller, a partner at Thierhoff, told the Court that
Thierhoff's professionals' normal billing rates range from EUR500
to EUR320 per hour.

Mr. Muller assures the Court that Thierhoff is a "disinterested
person" as that term is defined under Section 101(14) of the
Bankruptcy Code.

                        Germany Offices

As reported in the Troubled Company Reporter on July 9, 2012,
German legal news Web site JuVe related that all equity partners
at the Debtor's Frankfurt office have now found new homes.
Joshua Freedman at The Lawyer related that Ashurst has picked up
two Frankfurt partners from the Debtor, corporate lawyer Benedikt
von Schorlemer and employment specialist Andreas Mauroschat.  Mr.
von Schorlemer will join Ashurst as a partner, while the City
firm is also taking on the Debtor's corporate senior associate
Jan Krekeler, according to The Lawyer.  Mr. Mauroschat, according
to The Lawyer, will head Ashurst's German employment practice as
its only employment partner in the jurisdiction.  Litigator Tanja
Pfitzner is setting up her own practice, JuVe reported.

                      About Dewey & LeBoeuf

New York-based law firm Dewey & LeBoeuf LLP sought Chapter 11
bankruptcy (Bankr. S.D.N.Y. Case No. 12-12321) to complete the
wind-down of its operations.  The firm had struggled with high
debt and partner defections.  Dewey disclosed debt of US$245
million and assets of US$193 million in its chapter 11 filing
late evening on May 29, 2012.

Dewey & LeBoeuf was formed by the 2007 merger of Dewey Ballantine
LLP and LeBoeuf, Lamb, Greene & MacRae LLP.  At its peak, Dewey
employed about 2,000 people with 1,300 lawyers in 25 offices
across the globe.  When it filed for bankruptcy, only 150
employees were left to complete the wind-down of the business.

Dewey's offices in Hong Kong and Beijing are being wound down.
The partners of the separate partnership in England are in
process of winding down the business in London and Paris, and
administration proceedings in England were commenced May 28.  All
lawyers in the Madrid and Brussels offices have departed. Nearly
all of the lawyers and staff of the Frankfurt office have
departed, and the remaining personnel are preparing for the
closure.  The firm's office in Sao Paulo, Brazil, is being
prepared for closure and the liquidation of the firm's local
affiliate.  The partners of the firm in the Johannesburg office,
South Africa, are planning to wind down the practice.

The firm's ownership interest in its practice in Warsaw, Poland,
was sold to the firm of Greenberg Traurig PA on May 11 for
US$6 million.  The Pension benefit Guaranty Corp. took US$2
million of the proceeds as part of a settlement.  The Debtor
disclosed $368,117,240 in assets and $348,817,408 in liabilities
as of the Chapter 11 filing.

Judge Martin Glenn oversees the case.  Albert Togut, Esq., at
Togut, Segal & Segal LLP, represents the Debtor.  Epiq Bankruptcy
Solutions LLC serves as claims and notice agent.  The petition
was signed by Jonathan A. Mitchell, chief restructuring officer.

JPMorgan Chase Bank, N.A., as Revolver Agent on behalf of the
lenders under the Revolver Agreement, hired Kramer Levin Naftalis
& Frankel LLP.  JPMorgan, as collateral agent for the Revolver
Lenders and the Noteholders, hired FTI Consulting and Gulf
Atlantic Capital, as financial advisors.  The Noteholders hired
Bingham McCutchen LLP as counsel.

The U.S. Trustee formed two committees -- one to represent
unsecured creditors and the second to represent former Dewey
partners.  The Former Partners hired Tracy L. Klestadt, Esq., and
Sean C. Southard, Esq., at Klestadt & Winters, LLP, as counsel.
The Official Committee of Unsecured Creditors tapped Deloitte
Financial Advisory Services LLP as its financial advisor.

U.S. Bankruptcy Judge Martin Glenn on July 31 approved Dewey's
request to extend its funding deadline, which would have July 31,
to Aug. 15.



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CAPPOQUIN POULTRY: High Court Appoints Interim Examiner
-------------------------------------------------------
RTE News reports that the High Court has appointed an interim
examiner to Cappoquin Poultry Ltd.

Mr. Justice George Birmingham appointed Michael McAteer of Grant
Thornton as interim examiner to both CPL and to a related company
Cappoquin Poultry Holdings, RTE relates.

This happened after it was informed the business has debts of
EUR6 million, RTE notes.

Cappoquin Poultry's largest unsecured creditor Henry Good, which
is owed EUR3.9 million for supplying chicken feed to Cappoquin
Poultry, petitioned the court for Mr. McAteer's appointment on
the grounds including that CPL is insolvent and to prevent the
company's assets from being stripped, RTE discloses.

If appointed, Mr. McAteer will have up to 100 days to come up
with a scheme, which if approved by the firms creditors and the
High Court, will allow the company to continue to trade, RTE
says.

The application was made ex-parte, with only one side represented
in court, RTE states.

According to RTE, counsel said CPL has got into difficulty for a
number of reasons including the lack of a managing director
resulting in the lapse of business practices.

CPL had also failed to collect a EUR2.69 million debt owing to it
by a company in Derby, according to RTE.

Counsel added that one of the main reasons Henry Good wanted an
examiner appointed was due to its concerns that CPL's directors
have attempted to move essential machinery and equipment from
Cappoquin, RTE relates.

Cappoquin Poultry Ltd. is a Co Waterford based chicken processing
company that employs more than 130 people.


ELAN CORP: Moody's Reviews 'B1' Corp. Family Rating for Upgrade
---------------------------------------------------------------
Moody's Investors Service placed the ratings of Elan Corporation,
plc including the B1 Corporate Family Rating under review for
upgrade. This rating action follows Elan's announcement that it
plans to spin-off the discovery science and Neotope Biosciences
businesses from the company. The transaction is subject to
shareholder and bondholder approval and is expected to close by
yearend 2012.

Ratings placed under review for possible upgrade:

Elan Corporation plc:

  B1 Corporate Family Rating

  Ba3 Probability of Default Rating

Elan Finance plc:

  B1 (LGD 4, 66%) senior unsecured notes due 2016, guaranteed by
  Elan Corporation plc and subsidiaries

There is no change to Elan's SGL-1 Speculative Grade Liquidity
Rating.

"The transaction creates an entity with significantly lower
debt/EBITDA, limited R&D execution risk, and a solid growth
outlook," stated Michael Levesque, Moody's Senior Vice President.

"However, Elan's revenues will remain solely concentrated in
Tysabri, and therefore any upgrade of the ratings is likely to be
limited to one notch," continue Mr. Levesque.

Moody's rating review will focus on: (1) progress in receiving
required approvals for the transaction; (2) the capital
structure, leverage profile and cash distribution policies post-
transaction; (3) Tysabri utilization and sales trends; and (4)
the pro forma profit and loss statement and its components.

Ratings Rationale

Elan's B1 Corporate Family Rating reflects the company's limited
scale, high product concentration risk and modest albeit
improving free cash flow generation, expected to benefit from the
proposed R&D spin-off. Elan's revenues will remain comprised 100%
of Tysabri sales. Although Tysabri utilization trends should be
positive, competition and safety factors will reduce its rate of
growth compared to recent results.

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

Headquartered in Dublin, Ireland, Elan Corporation, plc is a
neuroscience-based biotechnology company. For the first six
months of 2012, Elan reported revenue of US$576 million.


ELAN CORP: S&P Puts 'B+' Corp. Credit Rating on Watch Positive
--------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B+' corporate
credit rating on Dublin-based specialty pharmaceutical
manufacturer Elan Corp. plc on CreditWatch with positive
implications.

"We also affirmed our 'BB-' ratings on unsecured issues of
subsidiaries Elan Finance Corp. and Elan Finance PLC," S&P said

"The issue rating affirmation incorporates a cap on the recovery
ratings of unsecured debt issued by 'BB-' category issuers at
'3'. As a result, a one-notch upgrade of the corporate credit
rating would correspond with a revision of the recovery rating on
Elan's unsecured debt to a '3' from a '2', leaving the issue
rating unchanged. The recovery rating cap is intended to account
for the fact that recovery rates on unsecured debt of 'BB'
category issuers have a high risk of being impaired by the
issuance of additional debt," S&P said.

"The ratings on Elan reflect our belief that the company will
remain heavily dependent on its multiple sclerosis (MS)
treatment, Tysabri," said Standard & Poor's credit analyst
Michael Kaplan. "This underlies a business risk profile that we
consider 'weak' (according to our criteria). However, the company
has the potential to sharply reduce its operating costs with its
singular product focus. Improved credit measures from an increase
in patent-protected cash flows suggests that we will likely
revise our assessment that the financial risk profile is
'aggressive,' and raise the corporate credit rating with the
spin-off of the research-intensive drug discovery unit."

"Its decision to spin off its drug discovery unit by the end of
2012, along with the recent disappointment of a potentially
lucrative Alzheimer's treatment, will leave Elan's prospects
closely tied to a single product. We believe 15% revenue growth
through 2013 will be supported by further penetration of the MS
user base by Tysabri, marketed by Biogen Idec. While the
injectable drug is patented through 2020, it is subject to the
development of competitive oral formulations and unforeseen
patient complications," S&P said.

"We likely will revise our assessment of the financial risk
profile as aggressive if the proposed spin-off is completed.
Margins in 2013 would expand markedly with the decline in R&D and
other operating expenses associated with the company's strategic
focus on Tysabri. We assume a near doubling in 2013 EBITDA, with
the possible achievement of $400 million. Debt to EBITDA may well
fall below 2x, and we believe that much of this tax-sheltered
income will translate into cash from operations. With minimal
capital spending needs, and the potential monetization of its
remaining stake in Alkermes, the company will be able to build
its liquidity to pre-fund its sizable 2016 debt maturities, and
for potential share and/or debt buybacks and dividends. We would
also note, however, the company has a short record of sustaining
leverage below 5x, and there is significant potential variability
in EBITDA tied to the dependence on a single product," S&P said.


HOME PAYMENTS: Customers Likely to Recoup Up to 25%
---------------------------------------------------
RTE News reports that the customers of collapsed Home Payments
Limited are likely to receive between 20% and 25% of their money
back.

As reported in the Troubled Company Reporter-Europe on
Aug. 26, 2011, the Irish Times said the High Court confirmed the
winding up of Home Payments.  The court made the order
after being informed the company owes 2,300 of its customers
EUR6 million and AIB a further EUR4 million.  AIB told the court
it rejected claims that it was to blame for Home Payments going
into liquidation.

Established in 1963, Home Payments Ltd was a family-run business
based in Rathmines, Dublin 6.  The company provides a household
budgeting service in the Dublin area.  It employs 16 people and
has approximately 2,300 customers throughout Ireland.


MAPLEWOOD DEVELOPMENTS: Creditors Set to Appoint Liquidator
-----------------------------------------------------------
Barry O'Halloran at The Irish Times reports that Maplewood
Developments faces the prospect of being wound up at the end of
the month.

The company, most of whose assets are under the control of banks,
has called a creditors' meeting for August 28, the Irish Times
discloses.

According to the Irish Times, the notice states that the company
is holding the meeting to appoint a liquidator and a committee of
inspection -- precursors to winding up the business.

In January, the National Assets Management Agency appointed
Michael Coyle and Simon Davidson of HWBC Allsop as receivers over
a large part of the company's assets and properties, the Irish
Times recounts.  The agency appointed the receivers on foot of
loans due to AIB, the Irish Times relates.  The company owes NAMA
more than EUR137 million, the Irish Times discloses.

Shortly afterwards, Ulster Bank, which is owed EUR280 million by
Maplewood's parent, the Moritz group, appointed Paul McCann of
Grant Thornton as receiver over hundreds of finished and
unfinished homes in the suburbs of Dublin, as well as a number of
its development sites, according to the Irish Times.

Maplewood Developments was one of the biggest players in
residential building during the construction boom.



=========
I T A L Y
=========


EDISON SPA: Fitch Lifts Long-Term IDR to 'BB'; Outlook Positive
---------------------------------------------------------------
Fitch Ratings has upgraded Edison Spa's Long-term Issuer Default
Rating (IDR) and senior unsecured ratings to 'BB' from 'BB-' and
affirmed the Short-term IDR at 'B'.  All ratings have been
removed from Rating Watch Positive (RWP).  The Outlook on the
Long-term IDR is Positive.

The rating is based on a standalone rating of 'BB-' and a one-
notch uplift reflecting the linkage with Electricite de France
(EDF; 'A+/Stable') in accordance with Fitch's Parent and
Subsidiary Linkage methodology.  The upgrade follows the
successful completion of the mandatory tender offer (MTO)
launched on Edison's listed minority shares by EDF as last step
to complete the shareholders restructuring transaction executed
in Q212 through the unwinding of Edison's holding company.  As a
result of the successful MTO procedure, EDF now owns 98% of
Edison's share capital.

The standalone rating is currently constrained by leverage,
liquidity pressure and deteriorated business risk profile.  The
increase in leverage was driven by a weak and protracted adverse
operating environment that has resulted in a severe compression
of profit margins of Edison's electricity activities.  Declining
electricity and gas demand, and the spread between the long-term
and spot gas price are Edison's main challenges to restore
adequate cash flow generation and improve credit metrics.

Pressure on liquidity remains, despite the short-term relief
provided by the cash proceeds received from the sale of the
Edipower's equity stake and the reimbursement of the
shareholders' loan to Edipower.  The renegotiation of parameters
of long-term gas contracts for both past unbalances and the
future would contribute to restore Edison's investment grade
business profile characteristics.

Off-setting these negative drivers is the successful
restructuring of the shareholding group.  Edison now benefits
from the presence of a single and financially strong shareholder
that, in the absence of clear contradicting signals, will support
the rating.

What Could Trigger a Rating Action?

Edison's Outlook is Positive.  As a result, Fitch's sensitivities
currently anticipate developments with a material likelihood of
leading to a rating upgrade.  Future developments that may lead
to a positive rating action include:

Positive:

  -- Improvement of standalone rating if the projected funds from
     operations (FFO) net leverage ratio is below 4.5x and FFO
     interest coverage at or above 4.0x in the medium term as a
     result of revised strategic plan and/or successful
     renegotiation of gas contracts.
  -- Improvement of electricity and gas market conditions leading
     to recovering of plants capacity utilization and improvement
     of cash flow based metrics as per the above guidance.
  -- Improvement of the liquidity position: Fitch expects Edison
     to restore adequate committed credit lines covering as
     minimum next 12-months' maturities and projected free cash
     flow shortages.
  -- Increase of notching uplift for shareholder' support should
     Edison's new business plan include stronger legal (including
     financial support), operational and strategic ties than
     anticipated.

Future developments that may, individually or collectively, lead
to negative pressure on Edison's ratings include:

Negative:

  -- Weaker than anticipated macroeconomic environment leading to
     lower revenues and erosion of earnings' margins causing
     pressure on cash flow based metrics such as FFO net adjusted
     leverage in excess of 5.0x on a sustained basis and/or FFO
     interest cover below 3.5x.
  -- Liquidity position below minimum of 12 months maturities
     coverage without parent support;
  -- Weakening of legal (including financial support),
     operational and strategic ties with EDF leading to loss of
     rating uplift for parent support.



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


ZHAIKMUNAI LP: Moody's Corrects August 10 Rating Release
--------------------------------------------------------
Moody's Investors Service issued a correction to the August 10,
2012 rating release for Zhaikmunai LP and Zhaikmunai LLP.

Moody's upgraded the corporate family rating (CFR) of Zhaikmunai
LP and the guaranteed senior unsecured debt ratings of Zhaikmunai
LLP to B2 from B3. The outlook on the ratings is stable.

Ratings Rationale

"The rating action was prompted by a strong improvement in
Zhaikmunai's operating and financial performance as a result of
the deployment of stage I of its gas treatment facility (GTF)
project," says Julia Pribytkova, a Moody's Vice President --
Senior Analyst and lead analyst for Zhaikmunai. The launch of
stage I of the project will allow the company to monetize its gas
reserves and to process up to 1.7 billion cubic meters per annum
of raw gas to produce stabilized condensate, liquid petroleum
gas, and dry gas".

Specifically, the upgrade to B2 reflects (1) successful
completion of stage 1 of the GTF project and resulting ramp-up of
production and revenue; (2) an increase in the company's proved
reserves; (3) an improvement in its financial metrics, i.e.,
leverage and cash flow generation; and (4) the company's improved
liquidity profile. The rating is constrained by a degree of
uncertainty pertaining to the economic, regulatory and political
risks associated with operating in emerging markets, including
among others the risks of a changing regulatory framework or
terms governing Zhaikmunai's profit sharing agreement (PSA) with
the government of Kazakhstan.

Zhaikmunai benefits from its strategic positioning close to the
Kazakh-Russian border, and from the availability of
infrastructure, including its own pipeline and rail terminal.
These factors provide for the cost-efficient export of the
company's products to offtakers.

By the end of 2012, Zhaikmunai plans to reach a decision on
whether to construct a third gas treatment unit, with a capacity
to process 2.5 billion cubic meters of raw gas per annum, and a
power plant for a total estimated cost of US$350-US$400 million
(stage II of the gas treatment facility project). The
implementation of this stage will be conditional upon a favorable
price environment, the availability of own or third-party
feedstock, and availability of funding. Should Zhaikmunai decide
to proceed with the investment, Moody's will assess its likely
impact on the company's financial and liquidity profile based on
the project's economics and financing arrangements.

The stable outlook on the rating reflects Moody's expectation
that Zhaikmunai will continue to demonstrate a robust operating
and financial performance.

What Could Change the Ratings Up/Down

The ratings would experience positive pressure if the company
demonstrates its ability to (1) sustainably and efficiently
operate its facilities at designed capacity; (2) maintain strong
liquidity and financial metrics; (3) successfully develop
reserves and maintain healthy reserve replacement ratios; (4)
adhere to conservative financial policies; and (5) provide
greater clarity on the inherent financial and execution risks if
the stage II project moves forward.

Conversely, Moody's could downgrade the ratings as a result of
any developments that weaken Zhaikmunai's operational or
financial profile, including (1) a decline in production; (2)
continuous failure to replenish its reserves, (3) a deterioration
in its liquidity and financial profile; and (4) the imposition by
the government of Kazakhstan of material regulatory and/or
contractual changes adversely affecting the economics of
Zhaikmunai's operations.

Principal Methodology

The principal methodology used in rating Zhaikmunai was the
Global Independent Exploration and Production Industry
Methodology, published in December 2011.

Zhaikmunai LP, through its wholly owned subsidiary Zhaikmunai LLP
is an independent oil and gas enterprise currently engaging in
the exploration, production and sale of crude oil and gas
condensate in the north-western region of Kazakhstan. Zhaikmunai
operates the Chinarevskoye field, located in the northern part of
the oil-rich Pre-Caspian Basin.



=================
M A C E D O N I A
=================


SKOPJE: Faces Bankruptcy; Owes EUR30 Million
--------------------------------------------
FOCUS News Agency, citing Macedonian newspaper, reports that
Skopje heating utility is facing bankruptcy.

The paper said that the upcoming heating season is questionable
due to the large debts of the company.  The capital of the
heating utility is estimated at EUR30 million and debts that it
has to pay to banks exceed that amount, FOCUS News discloses.

According to information the heating company owes between EUR32
million and EUR35 million, FOCUS News notes.



=====================
N E T H E R L A N D S
=====================


CEVA GROUP: Moody's Changes Outlook on 'B3' CFR/PDR to Negative
---------------------------------------------------------------
Moody's Investors Service has changed the outlook to negative
from stable on CEVA Group plc's ratings. The B3 corporate family
rating (CFR) and probability of default rating (PDR), as well as
all instrument ratings, remain unchanged.

Ratings Outlook

"The change in outlook to negative from stable reflects a
deterioration in market conditions, depressing CEVA's operating
performance and leading to weak credit metrics for the current
rating," says Douglas Crawford, Moody's lead analyst for CEVA.
The negative outlook reflects CEVA's high leverage and weak free
cash flow for its rating and assumes that operating performance
will not further deteriorate.

CEVA's operational performance in H1 2012 was below Moody's
expectations. According to the company's non-audited statements,
revenue increased by about 4% year-on-year (YoY) to EUR3.5
billion, driven by FX movements following the weakening of the
Euro. However, reported "adjusted EBITDA" of EUR136 million was
down 11% YoY, impacted by falls in southern Europe and the
Americas of 44% and 19% respectively as well as the impact of the
floods in Thailand. The company has suffered as the market
environment has become increasingly challenging in the contract
logistics space and it has not been able to mitigate this with
its extensive cost saving programs. However, the B3 CFR assumes
that in H2 2012 additional cost savings and increased
profitability on new contracts, as well as its exposure to higher
growth geographies outside of Europe, should stem the declines in
EBITDA.

CEVA's liquidity position appears adequate for its near-term
needs, with EUR199 million in cash and EUR90 million available
under its credit facilities that mature in 2015 and reasonable
covenant headroom under its senior secured leverage ratio
covenant. Moody's also expects that cash flow in H2 2012 will
benefit from seasonal swings in working capital. Following the
refinancing of debt maturing in 2013-2016 earlier this year, the
first significant bond debt maturity is now in 2016.

In light of the negative outlook a rating upgrade is unlikely in
the short-term unless there is an improvement in the company's
operating performance leading to adjusted leverage below 6x and
EBIT interest cover sustainably above 1x. Any upgrade would also
anticipate sustained improvements in free cash flow generation.

A rating downgrade could occur as a result of adjusted leverage
remaining over 7x, or a deterioration in CEVA's liquidity
position or free cash flow generation.

CEVA's ratings were assigned by evaluating factors that Moody's
considers relevant to the credit profile of the issuer, such as
the company's (i) business risk and competitive position compared
with others within the industry; (ii) capital structure and
financial risk; (iii) projected performance over the near to
intermediate term; and (iv) management's track record and
tolerance for risk. Moody's compared these attributes against
other issuers both within and outside CEVA's core industry and
believes CEVA's ratings are comparable to those of other issuers
with similar credit risk. Other methodologies used include Loss
Given Default for Speculative-Grade Non-Financial Companies in
the U.S., Canada and EMEA published in June 2009.

CEVA Group plc is the fourth-largest integrated logistics
provider in the world in terms of revenues (EUR 7 billion as at
30 June 2012 on a last-12-months (LTM) basis). As at financial
year-end 2011, CEVA had a presence in more than 170 countries
worldwide, employing around 51,000 people and managing
approximately 10 million square metres of warehouse facilities.


TRONOX FINANCE: Moody's Rates $650MM Sr. Unsecured Notes 'B1'
-------------------------------------------------------------
Moody's Investors Service assigned a B1 rating to Tronox
Limited's proposed senior unsecured notes due 2020. Tronox's Ba3
Corporate Family Rating (CFR) and the Ba2 rating on the term loan
were affirmed. Moody's assigned a SGL-1 Speculative Grade
Liquidity Rating reflecting the very good liquidity position of
Tronox. The proceeds from the notes will be used to fund
approximately US$400 million of share repurchases and for general
corporate purposes. The ratings outlook is stable.

The following summarizes the ratings:

Ratings affirmed

Tronox Ltd.

  Corporate Family Rating -- Ba3

  Probability of Default Rating -- Ba3

Tronox Pigments (Netherlands) BV

  $700mm sr sec term loan B -- Ba2 (LGD3, 30%) from Ba2 (LGD3,
  42%)

Ratings assigned

Tronox Finance LLC

  $650mm senior unsecured notes -- B1 (LGD5, 79%)

Tronox Ltd.

  Speculative Grade Liquidity Rating - SGL-1

Outlook - Stable

RATING RATIONALE

Tronox's Ba3 CFR reflects its strong operating performance,
liquidity and credit metrics, along with Moody's expectation that
it will maintain relatively high profit margins during 2012-2013
compared to long-term historical averages. The ratings are
supported by Tronox's position as the fifth largest titanium
dioxide (TiO2) global producer, geographically diverse production
assets, a global sales base, long-standing TiO2 customer
relationships, economies of scale at its Hamilton plant, access
to its own chloride production technology and backward vertical
integration into the production of titanium ore following the
June 2012 acquisition of the Exxaro Mineral Sands business. The
ratings are limited by the cyclical nature of the TiO2 industry.
Moody's believes the TiO2 industry is currently enjoying peak
profit margins. However, the demand decline which started in the
fourth quarter of 2011 is expected to pressure TiO2 selling
prices and margins over the next six months, if global
macroeconomic conditions and TiO2 demand do not improve. Thus far
the largest global producers have remained disciplined and
maintained pricing on TiO2 pigments. The industry has
historically not been able to maintain pricing in such an
environment for very long.

The acquisition of the Exxaro Mineral Sands business resulted in
a more favorable business profile and places Tronox in a better
position to weather the vagaries of the business cycle with
stronger and more stable earnings. The backward vertical
integration provides a secure supply of titanium ore when ore
supplies are relatively tight, eliminates the negative impact of
ore feedstock price increases and allows the company to generate
higher margins over the value chain, including planned synergies.
The vertical integration into titanium ore is expected to provide
a higher level of cash flow over the cycle, allowing for a more
levered capital structure. It will have a long ore position,
allowing it to capitalize on rising ore prices. However, this
acquisition is subject to normal integration risks. While Tronox
has some familiarity with the titanium ore business through its
Tiwest joint venture in Australia, it does not have experience
with operations such as the Exxaro Minerals Sands business in
South Africa.

The rating outlook is stable. Moody's expects the company to
maintain credit metrics supportive of a rating higher than the
actual assigned rating, given the peak industry conditions, such
that its capital structure will be supportive of the current
rating throughout the industry's cycle. The rating could be
upgraded should the company maintain less than US$1.3 billion of
balance sheet debt, continue to generate high margins and
macroeconomic conditions supported high TiO2 production capacity
utilization rates. There is little downward pressure on the
ratings at this time, given the robust profit margins and
relatively low leverage for the rating. The rating could be
downgraded should Free Cash Flow to Debt fall below 4% and
leverage increase above 3.5x on a sustained basis.

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

Tronox Limited, headquartered in Stamford, CT, is the world's
fifth largest producer of titanium dioxide and a producer of
titanium ore feedstocks through the recently acquired Exxaro
Mineral Sands business. It operates three plants in Hamilton, MS,
Botlek, The Netherlands, and Kwinana, Australia. The company is
also a producer of electrolytic chemicals (approximately 8% of
revenues in 2011 -- prior to the Exxaro Mineral Sands
acquisition). Tronox's revenues were $2.5 billion for the year
ended June 30, 2012 (pro forma for the Exxaro Mineral Sands
acquisition).



===========
N O R W A Y
===========


REC WAFER: Parent Opts to File for Unit's Insolvency
----------------------------------------------------
Stephen Treloar at Bloomberg News reports that Renewable Energy
Corp. ASA, a solar-energy group grappling with falling demand,
will stop funding its Norwegian solar-wafer division and plans to
file for the insolvency of the unit after shutting down all
production.

According to Bloomberg, the group said in a statement on Tuesday
that REC Wafer Norway AS's liabilities exceeded its assets by
about NOK1.2 billion (US$203 million) at the end of July, making
a solvent winding-up of the unit dependent on more money from
REC.

The group said that the bankruptcy of REC Wafer Norway won't
affect REC's solar and silicon units, Bloomberg relates.  It said
that the wafer unit has already been removed as guarantor from
REC's bond-loan agreements and wasn't included in a new bank loan
agreement which came into effect earlier this month, Bloomberg
notes.



===========
P O L A N D
===========


CENTRAL EUROPEAN: To Restate 2010 and 2011 Periodic Reports
-----------------------------------------------------------
Upon the recommendation of Central European Distribution
Corporation's management, the Company's board of directors has
concluded that the Company's financial statements for all
reporting periods from and after Jan. 1, 2010, should no longer
be relied upon primarily due to the fact that certain retroactive
rebates and trade marketing expenses were not properly recorded
by the Company's principal operating subsidiary in Russia, the
Russian Alcohol Group.  Following the Company's announcement on
June 4th, the Audit Committee of the Company's board of directors
initiated an internal investigation regarding the Company's
retroactive rebates, trade marketing expenses and related
accounting issues.

The Company management has made a preliminary determination that
the aggregate effect of the adjustments identified will result in
a cumulative reduction of each of revenue and EBITDA for the
period from Jan. 1, 2010, through Dec. 31, 2011, of approximately
US$49 million, and that the adjustments identified would result
in impairment charges of approximately US$10 million.

The Company will not be able to file its quarterly report on Form
10-Q for the quarter ended June 30, 2012, until its internal
investigation is complete, as the results of that investigation
could affect its financial statements for the three and six month
periods ended June 30, 2012, and the comparable periods in the
prior year.  The Company intends to file these reports with the
SEC as soon as practicable following completion of its internal
investigation.

                            About CEDC

Mt. Laurel, New Jersey-based Central European Distribution
Corporation is one of the world's largest vodka producers and
Central and Eastern Europe's largest integrated spirit beverages
business with its primary operations in Poland, Russia and
Hungary.

The Company's balance sheet at March 31, 2012, showed
US$2.033 billion in total assets, US$1.674 billion in total
liabilities, and stockholders' equity of US$358.45 million.

According to the regulatory filing, "[C]ertain credit and
factoring facilities are coming due in 2012, which the Company
expects to renew.  Furthermore, our Convertible Senior Notes are
due on March 15, 2013.  Our current cash on hand, estimated cash
from operations and available credit facilities will not be
sufficient to make the repayment on Convertible Notes and, unless
the transaction with Russian Standard Corporation is completed as
scheduled, the Company may default on them.  The Company's cash
flow forecasts include the assumption that certain credit and
factoring facilities that are coming due in 2012 will be renewed
to manage working capital needs.  Moreover, the Company had a net
loss and significant impairment charges in 2011 and current
liabilities exceed current assets at March 31, 2012.  These
conditions raise substantial doubt about the Company's ability to
continue as a going concern unless the transaction with Russian
Standard is completed as scheduled."

Ernst & Young Audit sp. z o.o., in Warsaw, Poland, expressed
substantial doubt about Central European's ability to continue as
a going concern, following the Company's results for the fiscal
year ended Dec. 31, 2011.  The independent auditors noted that
certain of the Company's credit and factoring facilities are
coming due in 2012 and will need to be renewed to manage its
working capital needs.

                           *    *     *

As reported by the TCR on Aug. 10, 2012, Standard & Poor's
Ratings Services kept on CreditWatch with negative implications
its 'CCC+' long-term corporate credit rating on U.S.-based
Central European Distribution Corp. (CEDC), the parent company of
Poland-based vodka manufacturer CEDC International sp. z o.o.

"The CreditWatch status reflects our view that uncertainties
remain related to CEDC's ongoing accounting review and that
CEDC's liquidity could further and substantially weaken if there
was a breach of covenants which could lead to the acceleration of
the payment of the 2016 notes, upon receipt of a written notice
of 25% or more of the noteholders," S&P said.



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


HIDROELECTRICA SA: To Exit Insolvency June 30 Next Year
-------------------------------------------------------
According to SeeNews, Ziarul Financiar daily quoted Remuz Borza,
head of Hidroelectrica SA's administrator EuroInsol, as saying
the company will exit insolvency next June, casting doubt on
projections for an earlier return to solvency.

Last week, Romanian Prime Minister Victor Ponta said the majority
state-owned company will exit insolvency in September or October
of this year, SeeNews relates.

A Bucharest court declared Hidroelectrica insolvent on June 19,
SeeNews recounts.  The Romanian government owns 80.06% of
Hidroelectrica and property restitution fund Proprietatea holds
the remaining 19.94% stake, SeeNews discloses.

Mr. Borza relayed that the realistic deadline for the exit from
insolvency would be June 30 next year, SeeNews notes.

Since June, Hidroelectrica has cancelled several bilateral
contracts with so-called "smart guys" under which it had been
selling electricity below market prices, SeeNews discloses.

According to SeeNews, Mr. Borza added that besides those
contracts, EuroInsol had found out seven more reasons for
Hidroelectrica's insolvency.

Ziarul Financiar, as cited by SeeNews, said Hidroelectrica has
839 creditors with half of them having to restore a total of
RON5.1 billion (US$1.4 billion/EUR1.1 billion) in debt to the
company.

Hidroelectrica SA is a Romanian state-owned hydropower producer.



===========
R U S S I A
===========


BANK ROSSIYSKY: Fitch Upgrades LT Issuer Default Rating to 'B+'
---------------------------------------------------------------
Fitch Ratings has upgraded Russia-based Bank Rossiysky Capital's
(BRC) Long-term Issuer Default Rating (IDR) to 'B+' from 'B'.  At
the same time, Fitch has affirmed Kit Finance Investment Bank's
(KIT) Long-term IDR at 'B'.  Both ratings have Stable Outlooks.

RATING ACTION RATIONALE AND DRIVERS: BRC's IDRS, NATIONAL RATING,
SUPPORT RATING, SUPPORT RATING FLOOR

The upgrade of BRC's Long-term IDR and National Long-term rating
reflects a reassessment of the probability of external support
for the bank, given its 99.99% ownership by the State Corporation
Deposit Insurance Agency (DIA).  In Fitch's view, the DIA and/or
other government bodies would be likely to provide liquidity or
further moderate capital support to BRC, if needed, as long as
the bank is state-owned.  The bank's funding structure (primarily
retail deposits and placements by state-owned entities) also make
a default less likely, in the agency's view.

At the same time, the IDRs, National Rating and Support Ratings
reflect Fitch's view that the probability of support is still
limited, given the non-strategic nature of DIA's investment in
the bank, the shareholder's intention to dispose of the bank
during the Long-term rating's time horizon and the fact that the
bank has yet to be adequately recapitalized.

Fitch believes that the likelihood of DIA selling BRC by end-
2014, as envisaged by its financial recovery plan, has reduced
somewhat and is only moderate.  This is because the DIA is not
legally allowed to sell the bank for less than its initial
RUB14.2 billion equity investment.  At end-2011, BRC's IFRS
equity was RUB2.5 billion, and in Fitch's view it is unlikely
that the bank will be able to replenish its capital to the level
of the initial investment by end-2014, or that the DIA will be
able to sell the bank at a significant premium.  That said, if
the sale of the bank was deemed politically expedient, Fitch
believes it may be possible to structure this in a way which
conformed to existing legislation, and changes to the legislation
also cannot be ruled out.

RATING SENSITIVITIES: BRC's IDRS, NATIONAL RATING, SUPPORT
RATING, SUPPORT RATING FLOOR

BRC's ratings could be downgraded if the bank is sold to a
relatively weak new owner, or if greater clarity emerges in
respect to the intention of the DIA to sell the bank in the near
term.  The ratings could also be downgraded if required external
support is not made available in a timely fashion.  An upgrade
would be possible if BRC is sold to a highly-rated entity which
identifies the bank as strategically important, but Fitch views
this as unlikely.

RATING ACTION RATIONALE, DRIVERS AND SENSITIVITIES: BRC's
VIABILITY RATING

The affirmation of BRC's 'b-' Viability Rating (VR) reflects the
bank's weak capital; reliance on regulatory forbearance to meet
statutory capital requirements; risks arising from a concentrated
and fast growing loan portfolio; the tight liquidity position;
and weak pre-impairment performance.  However, the rating also
considers the bank's limited refinancing risks and the potential
for improving scale to support internal capital generation.

BRC's Fitch Core Capital (FCC) ratio was a low 5.5% at end-2011.
Although most legacy problem assets have been adequately reserved
in the IFRS accounts, the bank has little capacity to absorb
potential problems arising from newly issued loans.  The
portfolio grew by 31% in H112, with unseasoned construction and
real estate asset-backed exposures comprising around 25% of non-
legacy loans or 5x FCC.

The VR could be downgraded if significant problems emerge in the
non-legacy loan portfolio, or if deposit outflows threaten the
bank's liquidity.  An upgrade is unlikely in the near term, but
improved performance, allowing the bank to strengthen its capital
position and gradually provision legacy assets in its statutory
accounts, would be positive for the stand-alone profile.

RATING ACTION RATIONALE AND DRIVERS: KIT's IDRS, NATIONAL RATING,
SUPPORT RATING

KIT's Long-term IDR and other support-driven ratings reflect the
potential support which KIT may receive if needed from its
minority shareholder JSC Russian Railways (RR, 'BBB'/Stable) and
other entities affiliated with it.  However, Fitch considers the
probability of such support to be limited given KIT's complex and
non-transparent shareholding structure with the involvement of
RR-affiliated pension fund NPF Blagosostoyanie (NPFB) holding a
controlling stake in the bank through four asset management
companies, the non-strategic nature of RR's investment in the
bank and some uncertainties as to whether the bank is kept by the
present shareholder during the Long-term rating time horizon.

RATING SENSITIVITIES: KIT's IDRS, NATIONAL RATING, SUPPORT RATING

The sale by RR and/or NPFB of their stakes in the bank could put
downward pressure on the bank's Long-Term IDR, as could any clear
indication from the shareholders that they would not make any
further financial support available to the bank.  An upgrade
would be possible if KIT is sold to a highly-rated entity which
identifies the bank as strategically important, but Fitch views
this as unlikely in the near term.

RATING ACTION RATIONALE, DRIVERS AND SENSITIVITIES: KIT's VR

KIT's VR reflects the bank's limited franchise, significant
dependence on related party funding, sizeable legacy impaired
loans (RUB24bn or 2.5x of end-2011 FCC) which are only 45%
provisioned at end-2011 and limited loss absorption capacity.  In
many cases, KIT's legacy impaired loans are secured by the former
KIT Finance Group's non-core assets and other collateral (roughly
RUB10.2bn at end-2011).  The extent to which KIT will need to
create further provisions will depend on its ability to foreclose
and sell these assets.

KIT's customer funding is dominated by related party deposits
placed by entities affiliated to RR (roughly 50% of end-2011
customer funding), while liquidity is managed quite tightly.

Fitch estimates that in accordance with local accounting
standards KIT has sufficient capital to create a further RUB3.5
billion of regulatory provisions by end-2014 (when regulatory
forbearance on statutory provisions is due to expire).  However,
in the agency's view, if legacy impaired loans are adequately
reserved, KIT's capital position will be vulnerable given
moderate recurring pre-impairment earnings to date and
significant risks and concentrations in the non-legacy loan book.

The VR could be downgraded if significant problems emerge in the
non-legacy loan portfolio.  An upgrade is unlikely in the near
term, but improved performance, allowing the bank to strengthen
its capital position and gradually provision legacy assets in its
statutory accounts, would be positive for the stand-alone
profile.

The rating actions are as follows:

BRC:

  -- Long-term IDR: upgraded to 'B+' from 'B'; Stable Outlook
  -- Short-term IDR: affirmed at 'B'
  -- National Long-term Rating: upgraded to 'A-(rus)' from
     'BBB(rus)'; Stable Outlook
  -- VR: affirmed at 'b-'
  -- Support Rating: affirmed at '4'
  -- Support Rating Floor: revised to 'B+'

KIT:

  -- Long-term IDR: affirmed at 'B'; Stable Outlook
  -- Short-term IDR: affirmed at 'B'
  -- National Long-term Rating: assigned at 'BBB-(rus)'; Stable
     outlook
  -- VR: affirmed at 'b-'
  -- Support Rating: affirmed at '4'


FIRST MORTGAGE: Moody's Assigns 'Ba1' Rating to Class B Bonds
-------------------------------------------------------------
Moody's Investors Service has placed under review for possible
upgrade credit ratings of subordinated notes issued by Closed
Joint Stock Company First Mortgage Agent of AHML, Closed Joint
Stock Company Second Mortgage Agent of AHML, and National
Mortgage Agent VTB 001. The following notes were affected:

Issuer: Closed Joint Stock Company First Mortgage Agent of AHML

  RUB264M Class B Residential Mortgage Backed Variable Rate Bonds
  due 2039, Ba1 (sf) Placed Under Review for Possible Upgrade;
  previously on May 24, 2007 Definitive Rating Assigned Ba1 (sf)

Issuer: Closed Joint Stock Company Second Mortgage Agent of AHML

  RUB590.3M Class B Residential Mortgage Backed Variable Rate
  Bonds due 2040, Ba3 (sf) Placed Under Review for Possible
  Upgrade; previously on Mar 14, 2008 Assigned Ba3 (sf)

Issuer: National Mortgage Agent VTB 001

  RUB2,027.098M Class B Residential Mortgage Backed Variable Rate
  Notes 2009 due 2039, Ba1 (sf) Placed Under Review for Possible
  Upgrade; previously on Jul 6, 2009 Assigned Ba1 (sf)

The review was prompted by the credit enhancement build-up in the
transactions since closing, while the performance of the
transactions remained within expectations. The review will
consist of revising assumptions associated with these
transactions as appropriate and performing cash flow analysis and
stress testing to arrive at the final ratings for the affected
notes. Moody's expects to conclude its rating review within six
months.

Ratings Rationale

Closed Joint Stock Company First Mortgage Agent of AHML

The credit enhancement under the Class B notes is currently
approximately 46%, out of which approximately 29.5% is
represented by a non amortizing reserve fund. The performance of
the transaction has been within expectations, with 30+ day
delinquencies equal to 1.48% of the current balance and
outstanding defaults (defaults are defined as 90+ days in
arrears) equal to 1.24% of the current balance as of June 30,
2012. There is approximately 24% of the portfolio remaining in
this transaction.

Closed Joint Stock Company Second Mortgage Agent of AHML

The credit enhancement under the Class B notes is currently
approximately 40%, out of which approximately 22.3% is
represented by a non amortizing reserve fund. The performance of
the transaction has been within expectations, with 30+ day
delinquencies equal to 0.81% of the current balance and
outstanding defaults (defaults are defined as 90+ days in
arrears) equal to 1.88% of the current balance as of June 30,
2012. There is approximately 37% of the portfolio remaining in
this transaction.

National Mortgage Agent VTB 001

The credit enhancement under the Class B notes is currently
approximately 41.5%, out of which approximately 4.4% is
represented by a non amortizing reserve fund. The performance of
the transaction has been within expectations, with 30+ day
delinquencies equal to 0.45% of the current balance and
outstanding defaults (defaults are defined as 90+ days in
arrears) equal to 0.1% of the current balance as of July 26,
2012. There is approximately 47% of the portfolio remaining in
this transaction.

Sensitivities, cash-flow analysis and stress scenarios have not
been updated as the rating action has been primarily driven by
the increase in the overall credit enhancement under the
subordinated notes. During the review process, Moody's will
perform the cash flow analysis and stress scenarios as
appropriate.

The principal methodology used in these ratings was Moody's
Approach to Rating RMBS in Europe, Middle East, and Africa
published in June 2012.


MARITIME BANK: Moody's Changes Outlook on 'B2' Ratings to Neg.
--------------------------------------------------------------
Moody's Investors Service has changed the outlook to negative
from stable on Maritime Bank's B2 local and foreign-currency
deposit ratings.

Ratings Rationale

Moody's change of outlook on the bank's ratings reflects the
growing negative pressure on its credit profile, driven by (i)
modest capital adequacy reflected by an equity-to-assets ratio of
9.7% at end-May 2012, according to the bank's statutory unaudited
financial statements; (ii) high credit-risk concentration, as the
20 largest credit exposures accounted for over 400% of Maritime
Bank's equity at the end of first half 2012; and (iii) negative
pressure on its franchise and liquidity as the bank's access to
many of its traditional customers in Russia's transportation
industry may weaken following the possible sale by Maritime
Bank's controlling shareholder S. Generalov of his majority stake
in FESCO, one of the largest Russian transportation groups.

According to Moody's, Maritime Bank's standalone E+ bank
financial strength rating (BFSR), which maps to a standalone
credit strength of b2, is constrained by the bank's limited
franchise, modest core capitalization, as well as high borrower
and funding concentrations. However, the rating is underpinned by
the bank's good profitability and acceptable asset quality.

What Could Move The Ratings Up/Down

Moody's says that the negative outlook on Maritime Bank's ratings
could be changed to stable if the bank significantly improves its
capitalization and franchise strength.

Maritime Bank's ratings could be downgraded if capitalization
weakens further from current levels. In addition, any substantial
weakening of Maritime Bank's franchise and liquidity position
would have negative rating implications.

Principal Methodologies

The principal methodology used in this rating was Moody's
Consolidated Global Bank Rating Methodology published in June
2012.

Headquartered in Moscow, Russia, Maritime Bank reported total
assets of US$486 million, shareholders equity of US$52.8 million
and net income of US$11 million at year-end 2011, according to
the bank's audited IFRS financial statements.


NORILSK NICKEL: Fitch Affirms 'BB+' Senior Unsecured Rating
-----------------------------------------------------------
Fitch Ratings has affirmed Russia-based non-ferrous metals
producer OJSC MMC Norilsk Nickel's (NN) Long-term Issuer Default
Rating (IDR) and senior unsecured rating at 'BB+'.  The agency
has also affirmed the company's Short-term IDR at 'B'.  The
Outlook on the Long-term IDR is Stable.

The ratings continue to reflect its exceptional operational
profile and historically conservative financial profile.
Disregarding the negative implications of the ongoing shareholder
dispute and subject to the maintenance of an appropriate
financial profile, the agency believes that NN could return to an
investment grade rating.  NN's operational strength stems from
its core Russian assets on the Taimyr Peninsula, which benefit
from a uniquely rich ore body and long-life reserves.  The
company is the world's leading producer of nickel and palladium,
as well as a significant producer of copper/platinum.

The company's Long-term IDR is notched down by three notches from
its standalone level due to a combination of issuer specific
corporate governance issues and the weak Russian business
environment.  The key individual corporate concern is the ongoing
dispute between key NN shareholders, United Company RUSAL Plc
(Rusal), and Interros Group.  Fitch is concerned that an
intensification of this dispute may result in actions which are
to the detriment of debt holders and minority shareholders.  The
agency considers that the buyback of issued shares made by NN in
FY2011 in the amount of US$9.0 billion, as being an example of
such actions.  A resolution to the shareholder dispute, however
this may ultimately occur, would nonetheless seem likely to
involve an increase in NN's debt burden.

FY2011 results showed a continued strong financial profile with
EBITDAR margin of 50% and funds from operations (FFO) adjusted
gross leverage below 1.0x.  The agency notes the high portion of
short-term loans in the company's loan portfolio (40% at end
H112).  While not an immediate concern given the strong
operational performance and low leverage, Fitch would expect the
company to maintain adequate cash balances to offset forthcoming
maturities.

Operating cash flows are forecast to fall year-on year under
Fitch's conservative price assumptions. Coming years will also
see higher projected capex and simultaneously a high dividend
payout ratio.  For 2012 Fitch expects this to result in US$0.4
billion of negative free cash flow, with negative US$1.7 billion
in 2013 (2011: positive free cash flow of US$1.2 billion).  Using
this assumption FFO adjusted gross leverage will trend upwards to
around 1.3x by end-2012 and to 1.9x by end-2013.

The assigned Stable Outlook reflects Fitch's view that a short-
term resolution to the shareholder dispute is unlikely, and that
the company's operational performance and financial profile will
remain sound.

WHAT COULD TRIGGER A RATING ACTION?

Positive: Future developments that may, individually or
collectively, lead to positive rating action include

  -- A sustained improvement in NN's individual corporate
     governance including a resolution of the shareholders'
     dispute together with the maintenance of FFO adjusted gross
     leverage below 2.0x.

Negative: Future developments that may, individually or
collectively, lead to negative rating action include

  -- An occurrence within the next 18 months to two years of new
     corporate governance issues, which evidence the
     intensification of the dispute between NN's shareholders

  -- Announcement of large debt funded acquisition (which would
     be treated as event risk)

  -- Significantly higher than expected cost inflation in the
     company's core Russian operations

  -- Operational problems at core Russian operations resulting in
     a material and sustained reduction in output volumes

  -- FFO adjusted gross leverage consistently above 3.0x.



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


KRASKI ZIDAR: Files for Debt Restructuring
------------------------------------------
Slovenian Press Agency reports that Kraski zidar filed for debt
restructuring on Friday as the latest in a series of builders on
the brink of bankruptcy.

The management will try to save the firm in cooperation with
creditor banks, regional official for the ZSSS trade union
confederation Bojan Kramar told Slovenian Press Agency in an
interview.

Just under a third of the 300 employees will be laid off week and
another two dozen will retire or have their fixed-term contracts
terminated, according to Slovenian Press Agency.

The report notes that Kraski zidar has EUR 40 million in
outstanding debt to banks, which hold the key to its survival.

Slovenian Press Agency notes that it posted revenue of EUR73.7
million for 2011, up 40% over the year before, but its loss
amounted to EUR11.7 million compared to a small profit in the
year before.

The workers have threatened to go on strike, but have given the
management more time after receiving the promise of back pay for
April, Slovenian Press Agency says.

The report notes that dozens of Slovenian construction firms have
gone under in the last couple of years, due to a combination of
the economic crisis and a burst housing bubble.  Slovenian Press
Agency says that they include giants such as SCT and Vegrad.

The last remaining big player, Primorje, is expected to go under
soon as the company has practically stopped operating and the
workers have already filed for receivership, Slovenian Press
Agency adds.

Kraski zidar is a mid-sized construction firm based in Sezana.



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


BBVA CONSUMO 3: S&P Affirms Rating on Class B Notes at 'B+'
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'A- (sf)' from 'A
(sf)' its credit rating on BBVA Consumo 3, Fondo de Titulizacion
de Activos' class A notes. "At the same time, we have affirmed
our 'B+ (sf)' rating on the class B notes," S&P said.

BBVA Consumo 3 is a Spanish asset-backed securities (ABS)
transaction that closed in April 2008. The current outstanding
balance is 27.31% of the closing balance. Its revolving period
ended one year ahead of the February 2010 scheduled due date, due
to a breach of the 90-day delinquency early-amortization trigger
of 2.2%.

"On Dec. 21, 2011, we lowered our ratings on BBVA Consumo 3's
class A and B notes. As of July 2012, loans of more than three
months in arrears, which have not yet defaulted, have decreased
to 2.55% of the outstanding balance (from 2.98% as of November
2011)," S&P said.

"Based on the latest available trustee investor report (dated
July 2012), the reported ratio of cumulative defaults (defined in
these transactions as loans delinquent for more than 12 months)
in BBVA Consumo 3 represented 6.28% of the securitized portfolio
balance, compared with 5.49% as of July 2011). The level of
defaulted assets and recoveries in this transaction is within our
expectations," S&P said.

"The transaction's amortization features have increased the
available credit enhancement for the class A and B notes. The
reserve fund has not been at its target level since August 2009.
However, since our last review, the reserve fund has been
partially replenished and currently stands at 38.52% of its
required level (versus 35.17% in November 2011)," S&P said.

"Our cash flow analysis indicates that our ratings on the class A
and B notes in this transaction are not constrained by the
performance of the transaction's underlying collateral and
structural features," S&P said.

"The rating actions follow amendments to the treasury account,
paying agency, and interest swap agreements in this transaction.
BBVA (as arranger) has amended the downgrade language in these
agreements, reflecting our 2012 counterparty criteria, and has
also lowered the minimum-rating-required triggers," S&P said.

"As the minimum-rating-required triggers have been lowered, under
our criteria the rating on the class A notes in this transaction
is capped at 'A- (sf)', which is the current long-term rating on
BBVA (acting as treasury account provider, paying agent, and
interest swap counterparty) plus one notch. We have therefore
lowered our rating on the class A notes to 'A- (sf)' from 'A
(sf)'. Our rating on the class B notes is not constrained for
counterparty reasons. We have therefore affirmed our 'B+ (sf)'
rating on the class B notes," S&P said.

"The securitized portfolio comprises consumer loans made to
individuals resident in Spain. BBVA and BBVA Finanzia Banco de
Credito, S.A. (BBVA Finanzia) originated and services the loans,"
S&P said.

             STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and
a description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities. The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Reports
included in this credit rating report are available at:

    http://standardandpoorsdisclosure-17g7.com

RATINGS LIST

Class             Rating
           To                From

BBVA Consumo 3, Fondo de Titulizacion de Activos
EUR975 Million Asset-Backed Floating-Rate Bonds

Rating Lowered

A          A- (sf)           A (sf)

Rating Affirmed

B          B+ (sf)



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


CHIRK GOLF CLUB: In Administration, Seeks Buyer
-----------------------------------------------
BBC News reports that Chirk Golf Club and the adjoining Chirk
Marina on Llangollen Canal has been placed into administration.

Efforts are being made to find a buyer for Chirk Golf Club and
Chirk Marina, according to BBC News.

The report relates that they are continuing to operate under the
management of insolvency specialists.

BBC News notes that the poor summer weather has been blamed for
difficult trading conditions affecting the golf club and marina.

"Trading conditions for Chirk Golf Club had been made more
difficult this year by the terrible summer weather, which has
affected the number of visiting golfers . . . .  However, we have
a dedicated and growing membership and I hope that we can find a
buyer to take the club forward following my investment in it over
the last few years," the report quoted Guy Myddleton, sole
director of Myddelton Leisure Limited, as saying.

Nigel Price and John Kelly, partners in the Birmingham office of
insolvency specialist Begbies Traynor, have been appointed joint
administrators of the company.

The golf club club employs seven staff and has a membership of
nearly 300.  The marina provides services for narrowboat users
among others and sits on part of the stretch of Langollen Canal
which has been made a world heritage site.


HOUSE OF BEAULY: Goes Into Liquidation; 14 Jobs Lost
----------------------------------------------------
Scott Reid at scotsman.com reports that House of Beauly, a
tourist, gift and clothing outlet near Inverness, has gone into
liquidation with the loss of 14 full and part-time jobs.

The centre, which also houses a cafe, had traded for more than 20
years, but its fortunes are said to have reversed in recent years
as customer numbers and revenues fell, according to scotsman.com.

Ken Pattullo and David Menzies of Begbies Traynor have been
appointed as joint provisional liquidators, scotsman.com says.

"Unfortunately, without the funds available to pay staff wages,
we were left with no choice but to make four staff redundant
immediately. A further ten will remain with us to help us
liquidate the stock over the coming weeks, but I am afraid there
isn't any real hope of retaining any jobs within the business,"
the report quotes Mr. Menzies as saying.

House of Beauly is a tourist, gift and clothing outlet near
Inverness.


RANGERS FOOTBALL: Debts Settled, Ibrox CEO Says
-----------------------------------------------
Soccerway News reports that Ibrox Chief Executive Charles Green
said that outstanding debts due to Scottish clubs when Rangers
Football Club PLC went into administration have been settled.

Rangers had been accused of leaving clubs out of pocket while
splashing cash on players, according to Soccerway News.

However, Mr. Green told the Rangers Web site: "As of now, Rangers
do not owe other Scottish clubs a penny . . . .  These debts were
incurred prior to the club going into administration and there
was no obligation on the consortium buying the club to pick them
up . . . .  From the outset, I have made it clear that I firmly
believe the correct thing for the club to do is settle these
football debts as a priority and we kept our word."

The report notes that Mr. Green took over at Rangers by creating
a new company to run the business after the old club entered
administration.

But payment of the bills was part of the agreement that allowed
Green's consortium to acquire Scottish Football Association
membership, which is needed to play league and cup games,
Soccerway News notes.

"That is what we have done and substantial funds were lodged with
the SFA 10 days ago to be discharged to settle the outstanding
debts," the report quoted Mr. Green as saying.

Rangers confirmed further payment owing to Hearts from Scotland
international Lee Wallace's transfer to Ibrox would be completed
in July next year, the report says.

                    About Rangers Football Club

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



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


* Big European Banks Technically Insolvent, Analyst Says
--------------------------------------------------------
Press TV reports that a financial analyst said big European banks
are actually bankrupt and "are making deals with governments in
order to take their debts off their balance sheets."

"All the big banks in Europe are technically insolvent but they
are doing deals with the government to take their bad debts off
their balance sheets and in turn the governments are imposing
austerity measures which in turn are forcing contraction in these
economies," Max Keiser, financial journalist and broadcaster,
told Press TV in an interview on Wednesday.

According to Press TV, the Bank of France warned on Wednesday
that the European state is set to head toward recession in the
third quarter of the current year as the eurozone continues to
grapple with economic woes.

Germany's Economy Ministry also announced on Wednesday that the
country's industrial production declined 0.9% in June compared to
May, Press TV says.

The analyst further argued that the high number of banking
scandals point to the fact that the banks are responsible for the
deterioration of the global economy, Press TV adds.


                            *********

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 * * *