TCREUR_Public/120817.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Friday, August 17, 2012, Vol. 13, No. 164

                            Headlines



B U L G A R I A

VARNA TOWERS: Faces Closure Over Unpaid Debts


F I N L A N D

NOKIA CORP: S&P Cuts Corp. Credit Rating to 'BB-'; Outlook Neg.


I R E L A N D

ATLANTIC HOMECARE: Woodies DIY Ready to Invest in Survival Plan
AWAS AVIATION: Moody's Assigns 'Ba2' Rating to US$360MM Term Loan
CAIRNEURO CDO I: S&P Cuts Ratings on Two Note Classes to 'CCC-'
EATONBROOK DEV'TS: Peter Malbasha First in Line for Repayment
IVORY CDO: S&P Lowers Ratings on Two Note Classes to 'CCC-'

TAURUS CMBS 2007-1: Fitch Cuts Rating on Class D Notes to 'CCsf'


N E T H E R L A N D S

MARCO POLO: Reorganization Approved Without Objection
MONTE 2008-I: S&P Lowers Rating on Class C Notes to 'CCC-'


R U S S I A

ELEX POLYUS: Parent Loses RUB1 Billion on Bankruptcy
LOCKO-BANK: Fitch Assigns 'B+' Rating to RUB3-Bil. Bond Issue
* VOLGOGARD REGION: Fitch Assigns 'BB-' LT Currency Ratings


S P A I N

BANKIA SA: Spain May Need to Ditch Loan Plan After Restrictions
BBVA-5 FTPYME: Fitch Raises Rating on Class B Notes From 'BBsf'


U N I T E D   K I N G D O M

DAWSON INTERNATIONAL: Falls Into Administration, Owes GBP129MM
JJB SPORTS: Writes Off Key Shareholder's GBP20-Mil. Investment
STARLIGHT INVESTMENTS: Liquidators Shuts Chapter 15 Case


X X X X X X X X

* Moody's Says Money Market Funds' Credit Profile Deteriorates
* BOOK REVIEW: Inside Investment Banking, Second Edition


                            *********


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B U L G A R I A
===============


VARNA TOWERS: Faces Closure Over Unpaid Debts
---------------------------------------------
FOCUS Information Agency, citing Duma Daily, reports that two
years after its sleek inauguration ceremony, the Varna Towers
mall is facing a closedown as the power company in the coastal
city of Varna Energo-Pro switched it off the grid over unpaid
debts.

More than EUR50 million has been invested its construction,
owners of the facility say, FOCUS discloses.  They see some
deliberate actions on the part of some players that want to bring
the Varna Towers to its knees and buy it for pennies, FOCUS
notes.  Back in 2010, Varna Towers has had its first serious
financial ordeal, but its lender Raiffeisenbank decided it was
better to buy it instead of accumulating toxic assets, FOCUS
recounts.

Varna Towers is Bulgaria's first trade center.



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F I N L A N D
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NOKIA CORP: S&P Cuts Corp. Credit Rating to 'BB-'; Outlook Neg.
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Finnish mobile telecom equipment
manufacturer Nokia Corp. to 'BB-' from 'BB+' and affirmed its 'B'
short-term corporate credit rating. The outlook is negative.

"At the same time, we lowered our issue ratings on Nokia's
unsecured debt to 'BB-' from 'BB+'. The recovery rating on this
debt remains at '3', reflecting our expectation of meaningful
(50%-70%) recovery prospects in the event of a payment default,"
S&P said.

"The rating actions reflect a downward revision of our estimates
of revenues and profitability for Nokia's smartphone operations
in 2012 and 2013. We have subsequently also revised our cash flow
assumptions, including the impact from Nokia's restructuring of
its Devices and Services division. In line with our criteria, we
have therefore revised our assessment of Nokia's business risk
profile to 'weak' from 'fair' and that of the financial risk
profile to 'significant' from 'intermediate'," S&P said.

"We now assume that Nokia's smartphone operations will post lower
revenues than we previously anticipated over the coming quarters.
We also believe that consolidated revenues for 2012 will show a
decline of 16%-19% and that the company will post a non-IFRS
operating loss (that is, not under International Financial
Reporting Standards) before restructuring costs," S&P said.

"Nokia's revenues could stabilize in 2013 if growth from Lumia
smartphones is able to offset the revenue decline from
smartphones using the Symbian operating system and, to a lesser
extent, from mobile phones. However, we still foresee Nokia
posting a low single-digit non-IFRS operating margin in 2013,"
S&P said.

"We have lowered our volume assumptions for Nokia's smartphones
because the company's market share continues to decline. Nokia
held 7.0% of the smartphone market in the second quarter of 2012,
down from 12.6% in the fourth quarter of 2011, according to
market research company Strategy Analytics. Because Symbian
devices still represent the largest portion of Nokia's sales by
volume, we think Nokia's market share could decline further. We
have also lowered our price assumptions for Nokia's smartphones
following the price decline of Lumia phones to EUR186 in the
second quarter of this year, compared with EUR220 in the first
quarter. To defend its market share, we believe that Nokia might
lower the price of Lumia phones further in the coming quarters.
We expect Nokia to launch new models, notably those based on the
Windows Phone 8 operating system, but we think it could take some
time before this can help stabilize revenues," S&P said.

"We have also incorporated the recent drop in the company's gross
margin for the smartphone segment to 1.7% in the second quarter
of 2012, which resulted partly from EUR220 million of inventory-
related allowances for Lumia, Symbian, and MeeGo devices.
Depending on volumes sold in the future, we think that additional
charges could affect future gross margins. Nokia's restructuring
of its Devices and Services division and Telecom Network
Equipment division (NSN) now targets a combined cost reduction of
EUR3.3 billion by the end of 2013. However, we expect that this
will only partly offset declining revenues and we expect the
group's non-IFRS operating margins to remain negative over the
coming quarters," S&P said.

"In our updated base-case assessment, we now expect Nokia to
generate negative consolidated free operating cash flow (FOCF) of
about minus EUR2 billion in 2012, and slightly negative FOCF in
2013. This FOCF forecast incorporates our assumption of weaker
profitability and the company's plan for cash restructuring
outflows of EUR1.75 billion over the next 18 months. We continue
to view Nokia's cash position as a positive factor, but we expect
net cash to fall to less than EUR3 billion by Dec. 31, 2012, from
EUR4.2 billion on June 30, 2012. The sharp decline includes cash
restructuring outflows and excludes the possible benefits from
divestments," S&P said.

"The negative outlook reflects the possibility of a downgrade
over the next 12 months if the non-IFRS operating margin of
Nokia's Devices and Services division or consolidated FOCF
remains significantly negative, since this would reduce Nokia's
net cash position further. This could be the case for instance if
revenues from Lumia smartphones did not increase significantly
during 2013 or if margins deteriorated further," S&P said.

"We could revise the outlook to stable if revenues in the Devices
and Services division stabilized and non-IFRS operating margins
returned to breakeven," S&P said.



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I R E L A N D
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ATLANTIC HOMECARE: Woodies DIY Ready to Invest in Survival Plan
---------------------------------------------------------------
Aodhan O'Faolain and Ray Managh at The Irish Times report that
the High Court heard on Wednesday Woodies DIY is prepared to
invest in a plan aimed at securing the survival of the Atlantic
Homecare DIY store chain.

Mr. Justice Paul McDermott was informed of the proposed
investment after he agreed to extend the period of protection
from its creditors granted to the chain, part of the Grafton
Group, from 70 to 100 days, the Irish Times relates.

Last June, the court appointed Declan McDonald of
PricewaterhouseCoopers as interim examiner to Atlantic after the
court heard that most of the chain's 13 stores were trading at a
loss, the Irish Times recounts.

On Wednesday, the court heard the additional 30 days were being
sought so that the examiner could finalize a scheme of
arrangement which, if approved by the court, would allow the
business exit examinership and continue to trade as a going
concern, the Irish Times discloses.

Lawyers for Mr. McDonald said there had been successful
negotiations with some landlords concerning leases, the Irish
Times notes.

According to the Irish Times, the court also heard that Woodies
DIY was prepared to invest in Atlantic.  That investment was
subject to the examiner's proposed scheme being approved by all
the relevant parties, the Irish Times states.

Mr. Justice McDermott agreed to the extension and adjourned the
matter to next month, the Irish Times relates.

The court heard that while having an accumulated loss of EUR21
million for the past five years, the company had continued to
trade with the support of other Grafton Group firms, Woodies DIY
in particular, according to the Irish Times.

The company did not have cashflow issues, the Irish Times states.


AWAS AVIATION: Moody's Assigns 'Ba2' Rating to US$360MM Term Loan
-----------------------------------------------------------------
Moody's Investors Service has assigned a definitive long-term
rating of Ba2 to the USD360 million Term Loan (Loan) due 2018,
placed by AWAS Aviation Capital Limited (AWAS) on 16 July 2012.
The outlook is stable.

Moody's definitive ratings confirm the provisional ratings
assigned on 15 June 2012. The final terms and conditions of the
senior secured bond issuance, which was fully placed as at 16
July 2012, are in line with the draft documentation reviewed for
the provisional (P)Ba2 rating assigned on 15 June 2012.

Ratings Rationale

The Loan is secured by perfected security interests on the
aircraft as well as security assignments of the leases, and
pledges of the ownership interests of the aircraft owning
entities. The Loan is guaranteed by AWAS on a senior unsecured
basis and, in addition, the Loan is guaranteed by the AWAS
subsidiaries that own assets pledged in support of the Loan on a
senior secured basis. AWAS has used the proceeds of the debt
issuance to repay the current drawdown on its warehouse facility,
and will use them to pre-fund future deliveries of aircraft and
for general corporate purposes.

The Ba2 rating assigned to the Loan is one notch above the Ba3
corporate family rating of AWAS, based upon the facility's terms
that meaningfully lower secured creditors' risk of loss. Based on
the executed Credit Agreement of the Loan, these include a
maximum loan-to-value (LTV) covenant of 74.4% (initial LTV is
69.5%) that is to be determined semi-annually, as well as the
high quality of the underlying collateral. The collateral
comprises solely of narrow-body aircraft. The term loan will be
secured by 12 aircraft that are on lease to 10 lessees globally.
The collateral securing the Loan will also be subject to
concentration limits relating to aircraft type (wide- or narrow-
body) and model.

The Ba2 rating also reflects the use by AWAS of secured recourse
debt in its capital structure. After incorporating the proceeds
of the Notes, Moody's calculates that secured recourse debt will
represent approximately 45% of AWAS' total indebtedness (based on
the company's financial statements at end-May 2012). If AWAS were
to substantially increase the proportion of secured recourse debt
with features and terms similar to the proposed transaction and
the existing facilities, the ratings for all such secured
recourse debt would likely converge with the firm's corporate
family rating because the differentiation among creditors would
be less significant. If secured recourse funding as a proportion
of AWAS' total funding structure remains at similar levels, then
an upgrade of the Notes would likely occur only as a result of an
upgrade of the Ba3 corporate family rating.

The rating of the Notes also incorporates the fundamental credit
characteristics of AWAS. These factors include AWAS' strong, and
improved, capital levels relative to many peers operating in the
aircraft leasing sector, the overall balance among its portfolio
risk exposures (geographic, aircraft type and model, and
customer), and its experienced management team. As constraints,
the rating also reflects AWAS' monoline business model and
associated low revenue diversification, the operating and
financial risks relating to its strategy to aggressively grow its
commercial aircraft fleet, and the company's high reliance on
secured funding that limits its operational and financial
flexibility.

The stable outlook reflects the good progress that the company
has made in delivering on its growth strategy, as well as the
challenge the company could face to successfully place its
upcoming deliveries if global demand factors were to weaken.

What Could Change the Rating Up/Down

Unless the proportion of secured recourse debt were to increase
substantially the rating on the Loan is likely to move in line
with the corporate family rating of AWAS. Positive pressure on
this rating would require further evidence that the company can
successfully deliver on its growth strategy while maintaining the
low leverage; and evidence, through consistent strong financial
performance, that growth has been effectively managed without
straining management capacity or liquidity resources.

Downward pressure would result from difficulties in placing the
relatively large number of aircraft that the company will receive
in the next two years, a material decline in profitability from
historic levels, an increase in leverage to more than 2.5x, or a
meaningful deterioration in the company's liquidity profile.

The principal methodology used in this rating was Finance Company
Global Rating Methodology published in March 2012.

AWAS Aviation Capital Limited, headquartered in Dublin, Ireland,
is a commercial aircraft leasing company.


CAIRNEURO CDO I: S&P Cuts Ratings on Two Note Classes to 'CCC-'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on CAIRNEURO ABS CDO I
PLC's class X, A1S, A1J, A2, A3, B, and C notes. At closing,
CAIRN EURO ABS CDO I also issued unrated class F notes.

CAIRN EURO ABS CDO I is a cash flow collateralized debt
obligation (CDO) of mainly European mezzanine asset-backed
securities (ABS).

"On March 19, 2012, we placed on CreditWatch negative our ratings
on the class X, A1S, A1J, A2, A3, B, and C notes in this
transaction, following our update to the criteria and assumptions
we use to rate CDOs of structured finance (SF) assets, which
became effective on March 19, 2012," S&P said.

"The rating actions resolve these CreditWatch negative
placements. They follow the application of our criteria for CDOs
of pooled SF assets as well as our assessment of the negative
rating migration in the portfolio of performing assets and the
continued deferral of interest of the class A3, B, and C notes
since our last review in February 2011," S&P said.

"A portion of the assets in the portfolio is referenced through a
credit default swap. The terms of the swap require the issuer to
make credit protection payments to the counterparty if certain
credit events as defined in the swap occur. The issuer funds any
such protection payments by withdrawing the required amount from
a guaranteed investment contract (GIC) account. The issuer funded
the GIC account at closing using some of the notes' proceeds,"
S&P said.

"Neither the application of our largest obligor default test nor
our largest industry default test affected our ratings on the
notes. These are two supplemental stress tests we introduced in
our CDO of ABS criteria, which assess whether a CDO has
sufficient credit enhancement to pass the applicable thresholds
at each liability rating level. We have used the same asset
ratings used in our CDO Evaluator model for the supplemental
tests," S&P said.

"We subjected the capital structure to a cash flow analysis based
on the updated methodology and assumptions as outlined by our
criteria, to determine the break-even default rate (BDR) for each
rated class of notes at each rating level. At the same time, we
conducted a credit analysis based on our new assumptions to
determine the scenario default rate (SDR) at each rating level,"
S&P said.

"Following the application of our CDO of ABS criteria, the SDRs
have increased significantly and the assumed weighted-average
recoveries at each rating category have significantly dropped,"
S&P said.

"In our view, the decrease in BDRs and the increase in SDRs
indicate that the current level of credit enhancement available
to the class X, A1S, A1J, A2, A3, B, and C notes are no longer
commensurate with their current rating levels," S&P said.

"As a result of these developments, we have lowered and removed
from CreditWatch negative our ratings on the class X, A1S, A1J,
A2, A3, B, and C notes," 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 Report
included in this credit rating report is available at:

             http://standardandpoorsdisclosure-17g7.com

RATINGS LIST

Class                  Rating
               To                       From

CAIRN EURO ABS CDO I PLC
EUR354.75 Million Floating-Rate Notes

Ratings Lowered and Removed From CreditWatch Negative

X                A+ (sf)               AAA (sf)/Watch Neg
A1S              BB (sf)               AA (sf)/Watch Neg
A1J              BB- (sf)              AA (sf)/Watch Neg
A2               B+ (sf)               A+ (sf)/Watch Neg
A3               CCC+ (sf)             BBB- (sf)/Watch Neg
B                CCC- (sf)             B+ (sf)/Watch Neg
C                CCC- (sf)             CCC+ (sf)/Watch Neg
F                NR                    NR

NR-Not rated.


EATONBROOK DEV'TS: Peter Malbasha First in Line for Repayment
--------------------------------------------------------------
Donal O'Donovan at The Irish Independent reports that Peter
Malbasha, a senior Irish banker made sure he was personally at
the front of the queue to be repaid by a property company with
debts to both himself and his then employer, Irish Nationwide
Building Society.

At the time Peter Malbasha, of Glebe House, Ballivor, Co Meath,
was employed by INBS as a loan recovery manager, the Irish
Independent notes.  He is now a senior official at NAMA, the
Irish Independent discloses.

Documents seen by the Irish Independent show that in July 2009,
Mr. Malbasha secured a charge over assets owned by Eatonbrook
Developments, a property developer with debts to both the bank
and Mr. Malbasha.  Mr. Malbasha was employed by INBS from August
2008 to April 2010, the Irish Independent recounts.

In July 2009, he registered a "fixed charge" over a mortgage-free
property at Glebe, Rathmolyon, Co Meath owned by Eatonbrook, the
Irish Independent says.

The charge secures any debts owed to Mr. Malbasha by Lark,
Eatonbrook or the owner of the companies, Anthony Murray,
according to the Irish Independent.

The most recent company accounts filed for the business show
Eatonbrook owed banks EUR4 million at the end of 2009, with INBS
understood to have been the main lender, the Irish Independent
states.

The case dates back to the period before INBS was nationalized
with a EUR5.4 billion taxpayer-funded rescue, the Irish
Independent says.

Eatonbrook Developments went into liquidation in 2011, the Irish
Independent recounts.


IVORY CDO: S&P Lowers Ratings on Two Note Classes to 'CCC-'
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on Ivory CDO Ltd.'s class
A-1, A-2, B, C, D, and E notes.

Ivory CDO is a cash flow mezzanine collateralized debt obligation
of structured finance (CDO of SF) securities transaction,
comprising a portfolio of predominantly CDO and mortgage-backed
securities tranches.

"On March 19, 2012, we placed on CreditWatch negative our ratings
on all classes of notes in this transaction following the update
to our CDO of SF criteria, which became effective on the same
day," S&P said.

"The rating actions, which are based on the application of these
criteria and our 2012 counterparty criteria, resolve these
CreditWatch negative placements. They follow our credit and cash
flow analysis of the transaction's performance since our previous
review on Jan. 13, 2011, considering data from the latest trustee
report (dated July 2, 2012) and recent transaction developments,"
S&P said.

"Our analysis shows that the portfolio credit quality has
deteriorated. The proportion of assets that we consider to be
defaulted (rated 'CC', 'C', 'SD' [selective default], or 'D') has
increased to 4.7% from 1.3% of the portfolio balance, and the
proportion of assets that we rate in the 'CCC' category ('CCC+',
'CCC', or 'CCC-') has increased to 12.9% from 7.8%," S&P said.

"Based on the updated methodology and assumptions outlined in our
CDO of SF criteria, we have subjected the capital structure to
our cash flow analysis, to determine the break-even default rate
(BDR) for each rated class of notes at each rating level. We have
used the reported portfolio balance that we consider to be
performing, the current weighted-average spread, and the
weighted-average recovery rates that we consider to be
appropriate. We have incorporated various cash flow stress
scenarios using various default patterns for each liability
rating category, in conjunction with different interest rate
stress scenarios," S&P said.

"We have also conducted a credit analysis, to determine the
scenario default rate (SDR) for each rated class of notes at each
rating level, which we then compared with its respective BDR.
Following the application of our CDO of SF criteria, the SDR at
each rating level increased significantly. At the same time, the
assumed weighted-average recoveries at each rating level dropped
Significantly," S&P said.

"Taking into account our credit and cash flow analysis, we
consider that the credit enhancement levels available to the
class A-1, A-2, B, C, D, and E notes in this transaction are
commensurate with lower ratings than we previously assigned. As a
result, we have lowered and removed from CreditWatch negative our
ratings on these classes of notes," S&P said.

"We have analyzed the transaction counterparties under our 2012
counterparty criteria, and concluded that our ratings on the
counterparties in this transaction are currently able to support
our ratings on all classes of notes," S&P said.

RATINGS LIST

Class                  Rating
              To                   From

Ivory CDO Ltd.
EUR200 Million Asset-Backed Floating-Rate Notes

Ratings Lowered and Removed From CreditWatch Negative

A-1           BBB+ (sf)            AA+ (sf)/Watch Neg
A-2           BBB+ (sf)            AA- (sf)/Watch Neg
B             BB+ (sf)             BBB+ (sf)/Watch Neg
C             B+ (sf)              BB+ (sf)/Watch Neg
D             CCC- (sf)            CCC+ (sf)/Watch Neg
E             CCC- (sf)            CCC (sf)/Watch Neg


TAURUS CMBS 2007-1: Fitch Cuts Rating on Class D Notes to 'CCsf'
----------------------------------------------------------------
Fitch Ratings has downgraded Taurus CMBS (Pan-Europe) 2007-1
Limited as follows:

  -- EUR194.6m class A1 (XS0305732181): downgraded to 'BBB-sf'
     from 'AAsf'; Outlook Negative
  -- EUR11.9m class A2 (XS0309194248): downgraded to 'BBsf' from
     'Asf'; Outlook Negative
  -- EUR17.5m class B (XS0305744608): downgraded to 'Bsf' from
     'BBBsf'; Outlook Negative
  -- EUR25.5m class C (XS0305745597): downgraded to 'CCCsf' from
     'Bsf'; assigned Recovery Estimate (RE) 80%
  -- EUR20.2m class D (XS0305746215): downgraded to 'CCsf' from
     'CCCsf'; assigned Recovery Estimate (RE) 0%
  -- EUR2.8m class E (XS0309195567): affirmed at 'CCsf'; assigned
     RE0%
  -- EUR2.1m class F (XS0309195997): affirmed at 'CCsf'; assigned
     RE0%

The rating downgrades were triggered by the safeguard protection
granted to the Fishman IBC, which failed to repay its EUR23.5
million loan at its maturity in July 2012.  As a result of this
court decision, all cash flow stemming from the collateral is
being held in an escrow account, prompting drawdowns under the
liquidity facility to enable the issuer to meet its expenses in
full.  The loan has been transferred to special servicing, where
discussions continue surrounding possible restructuring options.
However, safeguard protection implies lower creditor flexibility
for a period of time.

The Fishman IBC loan is quite small at 6.9% of the pool balance.
However, the court decision has negative implications for the
largest loan, the EUR134 million Fishman JEC loan (almost 50% by
pool balance).  Besides also being backed by French collateral,
both borrowers are controlled by the same sponsor.  While the
larger loan does not mature until July 2014, the agency believes
it is more risky; the sponsor may well file for safeguard
protection as it has already done on the smaller loan.  This
prospect is reflected by the scale of the downgrades, as well as
in the assignment of Negative Outlooks.

The Hutley loan (14.7% by pool balance) was extended for two
years in 2011, ahead of its original maturity date of July 2012.
Barring extensions, failure of a borrower to repay at maturity
would ordinarily constitute a loan event of default, which is
picked up by note sequential pay triggers.  Should the servicer
continue to grant loan extensions, this may therefore prolong pro
rata note distributions of principal from the stronger loans, and
threaten to weaken credit enhancement for senior bonds.  The risk
of this is also accounted for in the rating action.



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


MARCO POLO: Reorganization Approved Without Objection
-----------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Seaarland Shipping Management won the signature of a
New York bankruptcy judge on an Aug. 14 confirmation order
approving the liquidating Chapter 11 plan.

According to the report, there were no objections to plan
approval.  The plan calls for Seaarland to turn the vessels over
to secured lenders who agreed they won't be paid on unsecured
deficiency claims until unsecured creditors have received 5%.
The primary secured lenders are Royal Bank of Scotland and Credit
Agricole Corporate & Investment Bank.

The report relates it was agreed that the Credit Agricole claim
arising from three vessels wouldn't exceed $93.5 million and that
the RBS claim related to the other three is $124.8 million.  The
disclosure statement contains a projection that unsecured
creditors will recover nothing to 5% on their claims.

                          About Marco Polo

Marco Polo Seatrade B.V. operates an international commercial
vessel management company that specializes in providing
commercial and technical vessel management services to third
parties. Founded in 2005, the Company mainly operates under the
name of Seaarland Shipping Management and maintains corporate
headquarters in Amsterdam, the Netherlands.  The primary assets
consist of six tankers that are regularly employed in
international trade, and call upon ports worldwide.

Marco Polo and three affiliated entities filed for Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 11-13634) on July 29,
2011.  The other affiliates are Seaarland Shipping Management
B.V.; Magellano Marine C.V.; and Cargoship Maritime B.V.

Marco Polo is the sole owner of Seaarland, which in turn is the
sole owner of Cargoship, and also holds a 5% stake in Magellano.
The remaining 95% stake in Magellano is owned by Amsterdam-based
Poule B.V., while another Amsterdam company, Falm International
Holding B.V. is the sole owner of Marco Polo.  Falm and Poule
didn't file bankruptcy petitions.

The filings were prompted after lender Credit Agricole Corporate
& Investment Bank seized one ship on July 21, 2011, and was on
the cusp of seizing two more on July 29.  The arrest of the
vessel was authorized by the U.K. Admiralty Court.  Credit
Agricole also attached a bank account with almost US$1.8 million
on July 29.  The Chapter 11 filing precluded the seizure of the
two other vessels.  The company started a lawsuit against the two
creditors in January 2012.

The cases are before Judge James M. Peck.  Evan D. Flaschen,
Esq., Robert G. Burns, Esq., and Andrew J. Schoulder, Esq., at
Bracewell & Giuliani LLP, in New York, serve as the Debtors'
bankruptcy counsel.  Kurtzman Carson Consultants LLC serves as
notice and claims agent.

The petition noted that the Debtors' assets and debts are both
more than US$100 million and less than US$500 million.

Tracy Hope Davis, the United States Trustee for Region 2,
appointed three members to serve on the Official Committee of
Unsecured Creditors.  The Committee has retained Blank Rome LLP
as its attorney.

Creditor Credit Agricole Corporate and Investment Bank is
represented by Alfred E. Yudes, Jr., Esq., and Jane Freeberg
Sarma, Esq., at Watson, Farley & Williams (New York) LLP.

Gregory M. Petrick, Esq., Ingrid Bagby, Esq., and Sharon J.
Richardson, Esq., at Cadwalader, Wickersham & Taft LLP, in New
York, represents secured creditor and post-petition lender The
Royal bank of Scotland plc.


MONTE 2008-I: S&P Lowers Rating on Class C Notes to 'CCC-'
----------------------------------------------------------
Standard & Poor's Ratings Services has lowered and removed from
CreditWatch negative its credit ratings on all classes of notes
issued by MONTE 2008-I B.V.

MONTE 2008-I is a static cash flow collateralized debt obligation
of European structured finance (CDO of SF) securities transaction
that closed in February 2009 and has a legal final maturity date
on May 11, 2099.

"On March 19, 2012, we placed on CreditWatch negative our ratings
on all classes of notes in this transaction following the update
to our CDO of SF criteria, which became effective on the same
day," S&P said.

"The rating actions, which are based on the application of these
criteria, resolve these CreditWatch negative placements. They
follow our credit and cash flow analysis of the transaction's
performance since our previous review on Oct. 28, 2010," S&P
said.

"From the June 2012 trustee report, we have seen that the
transaction's coverage tests for the class B and C notes are
currently failing and have worsened since our previous review. We
have also seen the portfolio's credit quality deteriorate. The
proportion of assets that we consider to be investment-grade
(rated 'BBB-' and above) has decreased to 62.00% from 81.65%.
Additionally, the proportion of assets that we rate in the 'CCC'
category ('CCC+', 'CCC', or 'CCC-') has increased to 5.54% from
2.47%, and the proportion of assets that we consider to be
defaulted (rated 'CC', 'SD' or 'D') has increased to 5.03% from
1.88%," S&P said.

"Based on the updated methodology and assumptions outlined in our
CDO of SF criteria, we have subjected the capital structure to a
cash flow analysis, to determine the break-even default rate
(BDR) for each rated class of notes at each rating level. In our
analysis, we have used the reported portfolio balance that we
considered to be performing, the current weighted-average spread,
and the weighted-average recovery rates that we considered to be
appropriate. We have incorporated various cash flow stress
scenarios, using alternative default patterns, levels, and
timings for each liability rating category, in conjunction with
different interest rate stress scenarios," S&P said.

"We have also conducted a credit analysis, to determine the
scenario default rate (SDR) for each rated class of notes at each
rating level, which we compared with the corresponding BDR. Our
analysis has shown a significant increase in the SDR at each
rating level, as a result of the portfolio's credit deterioration
and the application of our CDO of SF criteria--which included a
reclassification of asset types, amendments to asset-specific
maturities, and updated asset correlation parameters," S&P said.

"Taking into account our credit and cash flow analysis, we
consider that the credit enhancement available to the class A, B,
and C notes in this transaction is commensurate with lower
ratings than we previously assigned. Hence, we have lowered and
removed from CreditWatch negative our ratings on these classes of
notes," S&P said.

"None of our ratings is constrained by the application of our
largest obligor default test--a supplemental stress test we
introduced in our CDO of SF criteria," S&P said.

"None of our ratings is constrained by our ratings on the
counterparties in the transaction, which are all at higher levels
than our ratings on the notes," 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 Report
included in this credit rating report is available at:

           http://standardandpoorsdisclosure-17g7.com

RATINGS LIST

MONTE 2008-I B.V.
EUR468.7 Million Floating-Rate Notes and Subordinated Notes

Class                   Rating
                 To                 From

Ratings Lowered and Removed From CreditWatch Negative

A                BBB- (sf)          A (sf)/Watch Neg
B                B- (sf)            BBB (sf)/Watch Neg
C                CCC- (sf)          BB (sf)/Watch Neg



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


ELEX POLYUS: Parent Loses RUB1 Billion on Bankruptcy
----------------------------------------------------
RBC Daily reports that Avtovaz has already lost RUB1 billion
(approx. US$31.4 million) after its retail subsidiary Elex Polyus
went bankrupt, and could be forced to pay a similar amount to the
retailer's lender Sberbank.

In fact, the total debt of Elex Polyus, which went out of
business in 2009 after Avtovaz discovered that 4,000 cars were
missing from the retailer's warehouses, amounts to RUB1.05
billion (approx. US$32.84 million), including RUB842.1 million
(approx. US$26.44 million) it owns to Sberbank, RBC discloses.
In July 2012, the bankruptcy supervisor decided to hold Avtovaz
accountable for the debt of its subsidiary, and the next hearing
in the Moscow Arbitration Court is scheduled for late September,
RBC relates.

However, the case could fall apart, since it will have to be
proven that Avtovaz is responsible for Elex Polyus' bankruptcy, a
legal consultant pointed out, RBC notes.


LOCKO-BANK: Fitch Assigns 'B+' Rating to RUB3-Bil. Bond Issue
-------------------------------------------------------------
Fitch Ratings has assigned Locko-bank's (Locko; 'B+'/Stable) RUB3
billion bond issue BO-3, due August 11, 2015 a final Long-term
rating of 'B+' and National Long-term rating of 'A-(rus)' with a
Recovery Rating of 'RR4'.

First and second coupons were priced at 10.75%. The bonds have a
put option after one year.  Locko's obligations under the notes
will rank equally with the claims on existing senior unsecured
debt. The proceeds will be used to fund Locko's core business.

Locko is a mid-sized Moscow-based bank, ranked 77th by total
assets at end-H112.  The bank is owned by International Finance
Corporation (15%) and East Capital Fund AB (11%) and various
individuals (74%).


* VOLGOGARD REGION: Fitch Assigns 'BB-' LT Currency Ratings
-----------------------------------------------------------
Fitch Ratings has assigned Russia's Volgograd Region Long-term
foreign and local currency ratings of 'BB-', a Short-term foreign
currency rating of 'B' and a National Long-term rating of
'A+(rus)'.  The Outlooks for the Long-term ratings are Stable.
The agency has also assigned the region's three outstanding
domestic bond issues totaling RUB9.4 billion a Long-term local
currency rating of 'BB-' and a National Long-term rating of
'A+(rus)'.

The ratings reflect the developed local economy, moderate debt
burden with low immediate refinancing risk and the likely
improvement in operating performance in 2012.  However, the
ratings also factor in the region's relatively weak and volatile
operating performance and continuous budget deficit recorded
during the past three years.

An improvement in the region's budgetary performance with an
operating margin of about 10% coupled with the stabilization of
direct risk below 50% of current revenue would lead to an
upgrade.  Conversely, increasing refinancing risk due to the
growth of short term borrowing coupled with weak, close to zero,
operating balance and growing direct risk would lead to a
downgrade.

Fitch expects an improvement in the region's operating
performance in 2012 due to a tax revenue rebound driven by
continuous economic growth and beneficiary changes in the
national tax regime.  However, the operating balance will remain
weak at about 3.5% of operating revenue and Fitch expects the
region's margins to gradually improve to about 5% during 2013-
2014.

The region has a strong, but volatile and highly concentrated tax
base as the 10 largest taxpayers contributed about 70% of total
tax revenue in 2011.  Volatility of income taxes negatively
affected the budget in 2011 when corporate income tax proceeds
fell by 6%.  A deterioration of tax proceeds coupled with a
growing operating expenditure in the pre-election cycle resulted
in the deterioration of the operating margin into negative
territory (-4.5%) in 2011 after a moderate positive result in
2010.

The region recorded a notable deficit before debt variation in
2009-2011, which peaked at 11.5% of total revenue in 2011.  Fitch
expects a minor narrowing of the deficit to 8.6% in 2012, however
the region's direct risk is expected to increase by about 40% yoy
to RUB20 billion in 2012 (2011: RUB14.5 billion).  Debt is likely
to moderately increase in 2013 and 2014 to RUB23 billion and
RUB24 billion respectively.  Nevertheless, it will stay moderate
in relative terms below 35% of current revenue.

Despite growing direct risk, the debt maturity profile remains
relatively long-term in the national context expanding until
2017.  The region is not exposed to immediate refinancing risk as
a significant proportion of the region's debt is long term
domestic bonds and bank loans due in 2013-2015.  However a weak
payback ratio (direct risk/current balance) makes the region
significantly dependent on access to the market for refinancing
of maturing debt and capex financing in the medium term.

The Volgograd region is a part of the South Federal District,
which lies in the south-eastern part of European Russia.  Its
economy rests on a strong industrial base which causes high tax
concentration. The region contributed 1.2% of the Russian
Federation's GDP in 2010 and accounted for 1.8% of the country's
population.  The local economy recovered relatively fast in 2010-
2011 after the economic downturn severely affected the region in
2009.  According to preliminary estimates, gross regional product
(GRP) increased by 5.1% in 2011, exceeding the growth of national
GDP.  The administration forecasts the continuation of economic
growth at that level in 2012.



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


BANKIA SA: Spain May Need to Ditch Loan Plan After Restrictions
---------------------------------------------------------------
Esteban Duarte at Bloomberg News reports that Spain is about to
receive an emergency disbursement from the EUR100 billion
(US$123 billion) bailout of its financial system because of
restrictions the European Central Bank imposed on bank borrowing.

The ECB last month imposed limits on how much it will lend banks
against government-guaranteed bonds, Bloomberg recounts.

According to Bloomberg, a person familiar with the matter said
that the rule change meant Spain had to ditch a plan for
nationalized lender Bankia group to get a loan from the
Frankfurt-based central bank.

The person, as cited by Bloomberg, said that Bankia group, formed
in 2010 from the merger of Spain's troubled savings banks, will
now get the first portion of the country's European Union cash
imminently.  The rescue program always included a EUR30 billion
tranche to be paid out first and "mobilized in any contingency,"
Bloomberg says, citing the agreement document dated July 16.

"Spain needs the money for Bankia as soon as possible because the
uncertainty just makes it expensive for the government to raise
money in the bond markets," Bloomberg quotes Arturo Bris, a
professor of finance at the IMD business school in Laussanne,
Switzerland, saying.

Bankia SA accepts deposits and offers commercial banking
services.  The Bank offers retail banking, business banking,
corporate finance, capital markets, and asset and private banking
management services.


BBVA-5 FTPYME: Fitch Raises Rating on Class B Notes From 'BBsf'
---------------------------------------------------------------
Fitch Ratings has taken various rating actions on BBVA-5 FTPYME
as follows:

  -- Class A1: affirmed at 'Asf', removed from Rating Watch
     Negative (RWN), assigned Stable Outlook
  -- Class A2: affirmed at 'Asf', removed from RWN, assigned
     Stable Outlook
  -- Class A3(G): affirmed 'Asf', removed from RWN, assigned
     Stable Outlook
  -- Class B: upgraded to 'BBBsf' from 'BBsf', assigned Stable
     Outlook
  -- Class C: affirmed at 'AAAsf'; removed from RWN, assigned
     Stable Outlook

The resolution of the RWN on class A1, A2 and A3(G) notes
reflects implementation of the remedial actions as the gestora,
Europea de Titulizacion, SGFT, SA (Edt), has introduced Societe
Generale ('A+'/'F1+'/Negative) as guarantor of Banco Bilbao
Vizcaya Argentaria (BBVA, 'BBB+'/'F2'/Negative) as account bank.
The guarantee has a limit of EUR9 million and is valid for one
year.  If the amount deposited in treasury account exceeds EUR9
million, the excess will be transferred to the additional
treasury account held in Societe Generale.  Although the
guarantor has only been contracted for one year, the gestora has
demonstrated a willingness to comply with transaction
documentation and to seek remedial action for the account bank.
Fitch expects to see further actions when the guarantee expires.

Fitch notes that no remedial actions have taken place so far with
regards to BBVA acting as a hedging agent; however, the agency
expects the implementation of the remedies in the near term.

The upgrade of the class B notes and affirmation of the class A1,
A2 and A3(G) notes is based on their ability to withstand Fitch's
stresses and increased level of the credit enhancement as a
result of the transaction's deleveraging.

The affirmation of class C notes reflects its link to the rating
of the guarantor, the European Investment Fund
('AAA'/'F1+'/Stable).

The transaction has amortized down to 11% of its original balance
with the top one and top 10 obligors accounting for 2.4% and
11.6% of the outstanding pool respectively.  The pool exposure to
real estate and construction sectors has also increased to 35%
from 30% over the past year.

There has been some deterioration in the transaction performance
with the principal deficiency ledger increasing by EUR8.5 million
over the past year to EUR10.3 million.  However, arrears have
declined from last year's high but were volatile over the period;
delinquencies over 90 days declined to EUR3.7 million from
EUR13.5 million in May 2011.  In Fitch's view, the current levels
of the notes credit enhancement are sufficient to mitigate
increasing concentration at the obligor and industry levels as
well as the fully depleted reserve fund.



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


DAWSON INTERNATIONAL: Falls Into Administration, Owes GBP129MM
--------------------------------------------------------------
The Telegraph reports that Dawson International has fallen into
administration after the group failed to fill a hole in its
pension fund.

scotsman.com relates that the company has made 200 jobs redundant
in the administration.

The company has appointed KPMG as administrators after it was
asked to pay GBP129 million in pension debt, according to The
Telegraph.

Company Chairman David Bolton said that the company's "proposal,
which was all we could possibly afford, would have delivered
significantly more to the PPF than it is likely to receive from
administration and relied on further financial support from
shareholders and other stakeholders."

The report relates that the textile company's shares were
suspended from trading last week.  The Telegraph relays that the
group decided in May to try and move its pension plans into the
PPF.  The firm revealed to shareholders last month that those
attempts at a negotiated entry had failed, after both the
Pensions Regulator and the PPF rejected the company's offers, the
report says.

                    About Dawson International

Dawson International is a leading cashmere business. It comprises
two trading divisions, based in the UK and the USA.  The UK
division comprises the Barrie Knitwear business, based in Hawick
Scotland.  It manufactures highest quality cashmere garments at
its factory in the Scottish borders and sells to some of the
world's most prestigious couture houses, department stores and
private label retail outlets.


JJB SPORTS: Writes Off Key Shareholder's GBP20-Mil. Investment
--------------------------------------------------------------
Andrew Trotman at The Telegraph reports that JJB Sports founder
David Whelan has said the company will probably collapse, just a
day after a key shareholder wrote off a GBP20 million investment
in the company.

"I can't see how they're going to survive," said the Telegraph
quotes Mr. Whelan, who founded JJB in 1977, as saying.

US retailer Dick's Sporting Goods invested GBP20 million into the
company in April in return for a 3% stake and the option of a
seat of the board, the Telegraph recounts.  However, Edward
Stack, chairman and chief executive of Dick's, as cited by the
Telegraph, said the company will now write off the investment
because JJB's performance has "materially deteriorated".

Mr. Whelan ruled out mounting a bid to rescue the firm, which now
has 180 stores following two restructurings in 2009 and 2011,
saying he was "too old", the Telegraph notes.

According to the Telegraph, Mr. Whelan said JJB's problems were
the result of "poor management".

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


STARLIGHT INVESTMENTS: Liquidators Shuts Chapter 15 Case
--------------------------------------------------------
Melvyn J. Carter, John A.G. Alexander, and Robin H. Davis, as
joint liquidators of Starlight Investments Limited, ask the U.S.
Bankruptcy Court Southern District of New York for order closing
the Chapter 15 case.

As reported in the Troubled Company Reporter on May 25, 2012, the
Hon. Stuart M. Bernstein recognized the Debtor's case as a
foreign main proceeding pursuant to Sections 1517(a) and (b)(1)
of the Bankruptcy Code.  The UK Proceeding is pending in the
London, England.

The joint liquidators explain that with the UK Proceeding
essentially complete, there is no further activity anticipated in
the case.  The joint liquidators note that in connection with the
sale order, the joint liquidators exercised the warrant held by
the Debtor in Prolor.  Due to the cost of exercising the WaferGen
Bio-systems, Inc. warrant and the associated market price of
WaferGen stock, the joint liquidators declined to exercise the
WaferGen warrant by its expiration date.  The joint liquidators
are in the process of selling the Prolor and WaferGen shares
consistent with the terms of the sale order.

                    About Starlight Investments

Starlight Investments is a company registered in the England and
Wales.  On July 15, 2008, James J. (Shay) Bannon, Mark J. Shaw
and Toby S. Underwood were appointed as joint administrative
receivers of Starlight Investments by Norwich Union Mortgage
Finance Limited, pursuant to a deed of legal charge between
Starlight Investments and Norwich, dated Aug. 30, 2002.  Norwich
officially changed its name to Aviva Commercial Finance Limited
by its shareholders passing a special resolution (75% majority)
pursuant to section 28 of the Companies Act of 1985, a UK
statute.  On Dec. 30, 2010, Toby S. Underwood ceased to act as an
administrative receiver of Starlight Investments, leaving James
J. (Shay) Bannon and Mark J. Shaw as the joint administrative
receivers of Starlight Investments.  The Receivership Appointment
coincided with enforcement action being taken by Norwich in
relation to Starlight Investments' group.

On April 30, 2009, Starlight Investments was placed into
creditors' voluntary liquidation by a special resolution (75%
majority) of Starlight Investments' shareholders under section
378(2) of the Companies Act and section 84(1)(b) of the
Insolvency Act of 1986, and the Petitioners were appointed as
Joint Liquidators following resolutions of the Debtor's
shareholders, under section 100 of the Insolvency Act, and of the
Debtors' creditors, under section 98 of the Insolvency Act.

The Joint Liquidators have filed a notice of appointment of
liquidator with the Registrar of Companies for England and Wales,
pursuant to section 109(1) of the Insolvency Act.

The Liquidators of Starlight Investments filed a Chapter 15
petition (Bankr. S.D.N.Y. Case No. 12-11566) on April 16, 2012,
seeking recognition of the UK Proceeding as a "foreign main
proceeding" as defined in Bankruptcy Code section 1502(4) and
seeking other necessary relief in support of the UK Proceeding.
Judge Stuart M. Bernstein presides over the Chapter 15 case.
Timothy W. Walsh, Esq., at DLA Piper LLP (US), in New York,
serves as counsel of the foreign representative.  The Debtor is
estimated to have assets of US$100 million to US$500 million and
debts of US$500 million to US$1 billion.

The Stock is among the Debtor's last remaining property to be
liquidated in connection with the UK Proceeding.  The Stock
consists of 200,000 shares of Modigene common stock, a warrant to
purchase 50,000 shares of Modigene common stock, 200,000 shares
of WaferGen common stock and a warrant to purchase 60,000 share
of WaferGen common stock.  Shares of Modigene trade publicly on
the American Stock Exchange under the symbol PBTH and shares of
WaferGen trade publicly on the Over-the-Counter Bulletin Board
under the symbol WGBS.

As required by section 4(2) of the Securities Act of 1933, as
amended, 15 U.S.C. Sections 77a et seq., the Modigene Stock was
issued to the Debtor in a private placement transaction, pursuant
to a subscription agreement entered into between the Debtor and
Modigene, dated May 30, 2007.  The WaferGen Stock was issued to
the Debtor in a private placement transaction, also in compliance
with section 4(2) of the Securities Act, pursuant to a
subscription agreement entered into between the Debtor and
WaferGen, dated May 30, 2007.

The Stock has been held exclusively by the Debtor in the United
Kingdom since May 30, 2007.



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


* Moody's Says Money Market Funds' Credit Profile Deteriorates
--------------------------------------------------------------
The credit profiles of sterling-, euro- and US dollar-denominated
money market funds (MMFs) deteriorated over Q2 2012, said Moody's
Investors Service in its quarterly MMF trend reports published on
Aug. 15. The reports, entitled "Sterling Prime Money Market
Funds: Q2 2012 Trends", "Euro Prime Money Market Funds: Q2 2012
Trends" and "US-Dollar Prime Money Market Funds: Q2 2012 Trends"
are now available on www.moodys.com. Moody's subscribers can
access these reports via the links provided at the end of this
press release.

Credit pressures on financial institutions in both Europe and the
U.S. significantly affected the rating distribution of euro and
sterling denominated MMFs' underlying assets, with 20% and 18%,
respectively, of these funds' investments migrating to A2- from
A1-rated securities.

US dollar MMFs were also negatively affected, though to a lesser
degree, with about 8% of the investments migrating to A2 from A1
or higher rated securities, mostly due to the credit
deterioration of banks and securities firms with global capital
markets operations.

Overall, US MMFs reduced their exposures to European financial
institutions by 20% during Q2, whilst sterling funds reduced
their exposures to European financial institutions by 9% during
Q2. Euro MMFs continued to maintain a relatively short weighted-
average maturity of 37 days on average throughout Q2 2012 and
adopted very cautious strategies, investing 55% of their assets
in securities with maturities below one month.


* BOOK REVIEW: Inside Investment Banking, Second Edition
--------------------------------------------------------
Author: Ernest Bloch
Publisher: BeardBooks,
Softcover: 430 pages
List Price: $34.95
Review by Henry Berry

Even though Bloch states that "no last word may ever be written
about the investment banking industry," he nonetheless has
written a timely, definitive book on the subject.

Bloch wrote Inside Investment Banking book after discovering that
no textbook on the subject was available when he began teaching a
course on investment banking.  Bloch's book is like a textbook,
though one not meant to be restricted to classroom use. It's a
complete, knowledgeable study of the structure and operations of
the field of investment banking.  With a long career in the
field, including work at the Federal Reserve Bank of New York,
Bloch has the background for writing the book.  He sought the
input of many of his friends and contacts in investment banking
for material as well as for critical guidance to put together a
text that would stand the test of time.

While giving a nod to today's heightened interest in the
innovative securities that receive the most attention in the
popular media, Inside Investment Banking concentrates for the
most part on the unchanging elements of the field. The book takes
a subject that can appear mystifying to the average person and
makes it understandable by concentrating on its central
processes, institutional forms, and permanent aims. The author
shows how all aspects of the complex and ever-changing field of
investment banking, including its most misunderstood topic of
innovative securities, leads to a "financial ecology" which
benefits business organizations, individual investors in general,
and the economy as a whole.  "[T]he marketplace for innovative
securities becomes, because of its imitators, a systematic
mechanism for spreading risk and improving efficiency for market
makers and investors," says Bloch.

For example, Bloch takes the reader through investment banking's
"market making" which continually adapts to changing economic
circumstances to attract the interest of investors.  In doing so,
he covers the technical subject of arbitrage, the role of the
venture capitalist, and the purpose of initial public offerings,
among other matters.  In addition to describing and explaining
the abiding basics of the field, Bloch also takes up issues
regarding policy (for example, full disclosure and government
regulation) that have arisen from the changes in the field and
its enhanced 185 visibility with the public.  In dealing with
these issues, which are to a large degree social issues, and
similar topics which inherently have no final resolution, Bloch
deals indirectly with criticisms the field has come under in
recent years.  Bloch cites the familiar refrain "the more things
change, the more they remain the same" and then shows how this
applies to investment banking.  With deregulation in the banking
industry, globalization, mergers among leading investment firms,
and the growing number of individuals researching and trading
stocks on their own, there is the appearance of sweeping change
in investment banking. However, as Inside Investment Banking
shows, underlying these surface changes is the efficiency of the
market.  Anyone looking for an authoritative work covering in
depth the fundamentals of the field while reflecting both the
interest and concerns about this central field in the
contemporary economy should look to Bloch's Inside Investment
Banking.  After time as an economist with the Federal Reserve
Bank of New York, Ernest Bloch was a Professor of Finance at the
Stern School of Business at New York University.


                            *********

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 * * *