TCREUR_Public/120824.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 24, 2012, Vol. 13, No. 169



BANKNORDIK P/F: Moody's Withdraws 'D+' Standalone BFSR


HAHN: Needs Government Funding to Avert Insolvency
P+S WERFTEN: Asks Customers to Pay in Advance to Avert Insolvency


CAPMARK VII: Moody's Cuts Rating on Class E Securities to 'C'
CAPPOQUIN POULTRY: Has Prospect of Survival, Creditor Says
MANAGH INT'L: Liquidator Dispute Court Date Postponed


BANKAS SNORAS: Says Ex-Owners Transfer Money to Personal Accounts


NORIT HOLDINGS: Moody's Raises Corporate Family Rating to 'Ba2'
* NETHERLANDS: Dutch RMBS Performance Relatively Stable in June


RSHN CAPITAL: Fitch Assigns 'b' Viability Rating


* SPAIN: Gives FROB Power to Liquidate Banks Under New Laws

U N I T E D   K I N G D O M

COMMERCIAL GRAPHICS: In Administration, Cuts 30++ Jobs
VAUXHALL DEALER: In Administration, Ceases Trading


* Moody's Downgrades 21 EMEA CMBS Interest-Only Securities
* BOOK REVIEW: Corporate Venturing -- Creating New Businesses



BANKNORDIK P/F: Moody's Withdraws 'D+' Standalone BFSR
Moody's Investors Service has withdrawn BankNordik P/F's
standalone bank financial strength rating (BFSR) of D+ mapping to
a ba1 baseline credit assessment, and the long-and short-term
bank deposit ratings of Baa3/P-3.

Ratings Rationale

Moody's has withdrawn the rating for its own business reasons.

Based in Thorshavn, Faroe Islands, BankNordik P/F reported
consolidated assets of DKK17.9 billion (USD3.0 billion) as of
end-June 2012.


HAHN: Needs Government Funding to Avert Insolvency
Sabine Wollrab and Peter Maushagen at Reuters report that
Germany's Hahn airport needs government funding to avoid
insolvency as falling passenger numbers exacerbate losses.

Reuters relates that Jochen Riebel, a former local secretary of
state who represents minority shareholder Hesse on the airport's
board, said Hahn would use up all its cash within about six
months without more finance.

According to Reuters, Mr. Riebel was quoted as saying "The equity
capital will be used up in March 2013 and then management would
have to file for insolvency."

Spokespeople for both Hahn and Rhineland-Palatinate told Reuters
the airport's finances could worsen in 2013 if passenger numbers
fell further but denied it was at risk of exhausting its equity
capital.  They said the airport, which made a loss of EUR10
million in 2011, had equity capital of EUR44 million which would
not be used up by the end of 2013, Reuters notes.

P+S WERFTEN: Asks Customers to Pay in Advance to Avert Insolvency
Jan Schwartz, Ole Mikkelsen and Maria Sheahan at Reuters report
that P+S Werften has asked some of its customers to pay for ships
in advance to bridge a liquidity shortfall and avert insolvency.

According to Reuters, a P+S spokesman said on Wednesday that New
Chief Executive Ruediger Fuchs has approached Danish shipper
DFDS, passenger ferry operator Scandlines, and Greenland's Royal
Arctic Line.

P+S had planned to file for insolvency on Wednesday, the
spokesman said, the possibility of receiving funds from customers
gave Mr. Fuchs a couple more days to come up with a rescue plan,
Reuters relates.

P+S Werften spokesman said that the company, which has about
2,000 employees, ran into financial trouble when it fell behind
schedule in delivering new ships, sapping its liquidity, Reuters

It received a German state guarantee for a EUR152.4 million
rescue loan, but Fuchs, who was appointed CEO this month, found
that those funds were insufficient to finish building any more
ships on order, Reuters discloses.

The spokesman, as cited by Reuters, said that P+S does not have
enough money to bridge the time it would take to obtain approval
for further state aid.

Scandlines' Managing Director Soeren Poulsgaard Jensen told
Reuters that he was interested in a quick solution for P+S, but
declined to say whether his company would provide any funds.
DFDS, meanwhile, declared that it would play no role in rescuing
P+S, Reuters discloses.

P+S was created in 2010 through the merger of German shipbuilding
companies Volkswerft Stralsund GmbH and Peene Werft GmbH, Reuters
recounts.  It makes vessels including container ships, fishing
vessels, river cruise boats and passenger ferries, according to


CAPMARK VII: Moody's Cuts Rating on Class E Securities to 'C'
Moody's has downgraded the ratings of two classes and affirmed
the ratings of nine classes of Notes issued by Capmark VII -- CRE
Ltd. The downgrades are due to increased under-collateralization
and deterioration in the par value tests since last review. The
affirmations are due to the key transaction parameters performing
within levels commensurate with the existing ratings levels. The
rating action is the result of Moody's on-going surveillance of
commercial real estate collateralized debt obligation and
collateralized loan obligation (CRE CDO CLO) transactions.

Moody's rating action is as follows:

Cl. A-1, Affirmed at Aaa (sf); previously on Sep 30, 2010
Confirmed at Aaa (sf)

Cl. A-2, Affirmed at B1 (sf); previously on Sep 30, 2010
Downgraded to B1 (sf)

Cl. B, Affirmed at Caa2 (sf); previously on Sep 30, 2010
Downgraded to Caa2 (sf)

Cl. C, Affirmed at Caa3 (sf); previously on Sep 30, 2010
Downgraded to Caa3 (sf)

Cl. D, Downgraded to Ca (sf); previously on Sep 30, 2010
Confirmed at Caa3 (sf)

Cl. E, Downgraded to C (sf); previously on Sep 30, 2010
Downgraded to Ca (sf)

Cl. F, Affirmed at C (sf); previously on Sep 30, 2010 Downgraded
to C (sf)

Cl. G, Affirmed at C (sf); previously on Sep 30, 2010 Downgraded
to C (sf)

Cl. H, Affirmed at C (sf); previously on Sep 30, 2010 Downgraded
to C (sf)

Cl. J, Affirmed at C (sf); previously on Sep 30, 2010 Downgraded
to C (sf)

Cl. K, Affirmed at C (sf); previously on Sep 30, 2010 Downgraded
to C (sf)

Ratings Rationale

Capmark VII -- CRE Ltd. is a static (the reinvestment period
ended in August 2011) cash CRE CDO transaction backed by a
portfolio of whole loans (100.0% of the pool balance). As of the
August 15, 2012 Trustee report, the aggregate Note balance of the
transaction, including preferred shares, has decreased to $589.7
million from $1.0 billion at issuance, with the paydown directed
to the Class A-1 Notes, as a result of amortization of the
underlying collateral as well as interest reclassified as
principal due to the failure of the par value tests.

There are seven assets with a par balance of $107.2 million
(24.9% of the current pool balance) that are considered defaulted
securities as of the August 15, 2012 Trustee report. While there
have been some realized losses on the underlying collateral to
date, Moody's expects more significant losses to occur on the
defaulted securities once they are realized.

Moody's has identified the following parameters as key indicators
of the expected loss within CRE CDO transactions: weighted
average rating factor (WARF), weighted average life (WAL),
weighted average recovery rate (WARR), and Moody's asset
correlation (MAC). These parameters are typically modeled as
actual parameters for static deals and as covenants for managed

WARF is a primary measure of the credit quality of a CRE CDO
pool. Moody's has completed updated assessments for the non-
Moody's rated collateral. The bottom-dollar WARF is a measure of
the default probability within a collateral pool. Moody's modeled
a bottom-dollar WARF of 8,863 compared to 8,759 at last review.
The current distribution of Moody's rated collateral and
assessments for non-Moody's rated collateral is as follows: Baa1-
Baa3 (0.8%, the same as that at last review), Ba1-Ba3 (0.0%
compared to 2.5% at last review), B1-B3 (9.1% compared to 13.7%
at last review), and Caa1-C (90.1% compared to 83.0% at last

WAL acts to adjust the probability of default of the collateral
in the pool for time. Moody's modeled to a WAL of 3.9 years
compared to 1.6 years at last review. The current modeled WAL is
based on the assumption about extensions.

WARR is the par-weighted average of the mean recovery values for
the collateral assets in the pool. Moody's modeled a fixed WARR
of 53.6% compared to 53.4% at last review.

MAC is a single factor that describes the pair-wise asset
correlation to the default distribution among the instruments
within the collateral pool (i.e. the measure of diversity).
Moody's modeled a MAC of 99.9%, the same as that at last review.

Moody's review incorporated CDOROM(R) v2.8, one of Moody's CDO
rating models, which was released on January 24, 2011.

The cash flow model, CDOEdge(R) v3.2.1.2, was used to analyze the
cash flow waterfall and its effect on the capital structure of
the deal.

Changes in any one or combination of the key parameters may have
rating implications on certain classes of rated notes. However,
in many instances, a change in key parameter assumptions in
certain stress scenarios may be offset by a change in one or more
of the other key parameters. Rated notes are particularly
sensitive to changes in recovery rate assumptions. Holding all
other key parameters static, changing the recovery rate
assumption down from 53.6% to 43.6% or up to 63.6% would result
in average modeled rating movement on the rated tranches of 0 to
3 notches downward and 0 to 4 notches upward, respectively.

The performance expectations for a given variable indicate
Moody's forward-looking view of the likely range of performance
over the medium term. From time to time, Moody's may, if
warranted, change these expectations. Performance that falls
outside the given range may indicate that the collateral's credit
quality is stronger or weaker than Moody's had anticipated when
the related securities ratings were issued. Even so, a deviation
from the expected range will not necessarily result in a rating
action nor does performance within expectations preclude such
actions. The decision to take (or not take) a rating action is
dependent on an assessment of a range of factors including, but
not exclusively, the performance metrics.

Primary sources of assumption uncertainty are the extent of
growth in the current macroeconomic environment and commercial
real estate property markets. While commercial real estate
property values are beginning to move in a positive direction
along with a rise in investment activity and stabilization in
core property type performance, a consistent upward trend will
not be evident until the volume of investment activity steadily
increases, distressed properties are cleared from the pipeline,
and job creation rebounds. The hotel sector is performing
strongly and the multifamily sector continues to show increases
in demand. Moderate improvements in the office sector continue
with minimal additions to supply. However, office demand is
closely tied to employment, where growth remains slow.
Performance in the retail sector has been mixed with lackluster
sales driven by discounting and promotions. However, rising wages
and reduced unemployment, along with increased consumer
confidence, is helping to spur consumer spending. Across all
property sectors, the availability of debt capital continues to
improve with increased securitization activity of commercial real
estate loans supported by a monetary policy of low interest
rates. Moody's central global macroeconomic scenario reflects
healthier growth in the US and US growth decoupling from the
recessionary trend in the euro zone, while a mild recession is
expected in 2012. Downside risks remain significant, although
they have moderated compared to earlier this year. Major downside
risks include an increase in the potential magnitude of the euro
area recession, the risk of an oil supply shock weighing
negatively on consumer purchasing power and home prices, ongoing
and policy-induced banking sector deleveraging leading to a
tightening of bank lending standards and credit contraction,
financial market turmoil continuing to negatively impact consumer
and business confidence, persistently high unemployment levels,
and weak housing markets, any or all of which will continue to
constrain growth.

The methodologies used in this rating were "Moody's Approach to
Rating SF CDOs" published in May 2012 and "Moody's Approach to
Rating Commercial Real Estate CDOs" published in July 2011.

CAPPOQUIN POULTRY: Has Prospect of Survival, Creditor Says
Ray Managh at Irish Examiner reports that the High Court was told
Wednesday Cappoquin Poultry has a reasonable prospect of survival
as a going concern.

According to Irish Examiner, Ross Gorman, counsel for the largest
unsecured creditor, Henry Good Ltd., said it was the view of
independent accountant Kieran Wallace of KPMG that the business
of CPL could be saved with the protection of the court in

Mr. Gorman told Mr. Justice John Cooke that CPL, which directly
employs 136 workers and dozens of dependent contractors, had
debts totaling EUR6 million, almost EUR4 million of which was
owed to Henry Good Ltd., Irish Examiner relates.

He said HGL last week petitioned the court for the appointment of
interim examiner Michael McAteer of Grant Thornton and now sought
to have him appointed as examiner, Irish Examiner recounts.

Brian Kearney, counsel for CPL and holding company CPHL, said his
clients had concerns about the ability of the two companies
successfully emerging from examinership and wished both companies
to be liquidated, according to Irish Examiner.

He said HGL wanted the examiner appointed to both companies and,
while still maintaining their concerns, were prepared to remain
neutral for the sake of the 136 jobs involved, Irish Examiner

He submitted there was no legal way an examiner could be
appointed to the holding company, which owned only property that
was leased to CPL and was not indebted to anyone, Irish Examiner

Cappoquin Poultry is a Co Waterford chicken processing company.

MANAGH INT'L: Liquidator Dispute Court Date Postponed
Aodhan O'Faolain and Ray Managh at report that a
dispute between two accountants and insolvency practitioners who
has been appointed as liquidator to Managh International
Transport has been adjourned by the High Court to a date in

Last week, the High Court granted John O'Connell a temporary
injunction preventing Peter Russell of Russell & Co in Cork from
acting as liquidator of Managh, the report relates.

In his proceedings, Mr. O'Connell is also seeking a declaration
from the court that he is the liquidator of the company, notes.

However, the company's directors dispute Mr. O'Connell's claim --
following a vote by a majority of company creditors -- and have
brought a motion seeking a declaration from the court that
Mr. Russell be confirmed as liquidator to the company, discloses.

On Wednesday, at a duty sitting of the court, Ms. Justice Mary
Laffoy was told the injunction could be lifted as both Mr.
Russell and Mr. O'Connell of Bank Place, Mallow, Co Cork had
given an undertaking not to act as liquidator of the company
until all matters have been determined by the courts, states.

The company went into voluntary liquidation earlier this month,
and has not been trading for several months,

Managh International Transport is a Cashel, Co Tipperary-based


BANKAS SNORAS: Says Ex-Owners Transfer Money to Personal Accounts
Milda Seputyte, Aaron Eglitis and Erik Larson at Bloomberg News
report that Bankas Snoras AB's former owners siphoned away money
through transfers to personal accounts, collateral for loans, and
fake real estate deals using a web of offshore entities.

According to Bloomberg, the lender said in a June 21 filing made
public on Tuesday that Vladimir Antonov and Raimondas Baranauskas
used banks including HSBC Private Bank SA and Julius Baer & Co AG
to transfer Snoras assets as collateral for loans to companies
owned by or associated with Mr. Antonov.  The bank, as cited by
Bloomberg, said that some of the loans weren't repaid and the
securities were forfeited.

Bankas Snoras, once Lithuania's third biggest lender by deposits,
is suing its former owners for EUR492 million (US$613.5 million),
Bloomberg discloses.  They were detained in London in November
after Lithuanian authorities issued a European arrest warrant on
claims they forged documents and fixed accounts to siphon at
least LTL1.7 billion (US$610 million) from Snoras, causing its
collapse, Bloomberg relates.  Both men deny the claims and are
fighting them, Bloomberg recounts.

Mr. Antonov had some of the Vilnius-based bank's securities
transferred to his personal account, and about EUR40,000 of that
may have been used to make a mortgage payment on a chalet in
France, the claim said, citing a Lithuanian Central Bank report,
Bloomberg notes.  Mr. Antonov, who is Russian, says the case may
be politically motivated and believes his life may be in danger
if he returns, according to Bloomberg.  They are fighting their
extradition in a pending London case, Bloomberg states.

Bankas Snoras AB is Lithuania's fifth biggest lender.


NORIT HOLDINGS: Moody's Raises Corporate Family Rating to 'Ba2'
Moody's Investors Service upgraded the corporate family rating of
Norit Holdings BV to Ba2 with a stable outlook from B1 following
the acquisition of Norit by Cabot Corporation (Baa2, Stable),
which closed on July 31, 2012. Moody's also upgraded Norit's
probability of default rating to Ba2 from B1 and withdrew the B1
ratings on Norit's secured bank debt as the related obligations
have been repaid. This concludes the review for upgrade commenced
on June 21, 2012 when Norit agreed to be acquired by Cabot.
Moody's will withdraw Norit's remaining ratings shortly.

Ratings Rationale

The ratings upgrade reflects Moody's view that Norit's standalone
credit profile has been materially enhanced by the shift in
ownership from a private equity investor to Cabot, a strategic
owner with a strong credit profile. Norit's ratings are further
supported by its leading global market position for its main
product, activated carbon, for which demand is non-cyclical and
growing. As well, the company has good geographic, end-market and
customer diversity and a solid EBITDA margin (in excess of 20%)
that Moody's expects will further expand and support ongoing free
cash flow generation over the next few years. Norit's ratings are
tempered by its small scale (annual revenue of US$360 million)
and a narrow product profile.

The principal methodology used in rating Norit Holding BV 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.

* NETHERLANDS: Dutch RMBS Performance Relatively Stable in June
The performance of the Dutch residential mortgage-backed
securities (RMBS) market -- comprising transactions that are
either backed or not backed by the National Mortgage Guarantee
(Nationale Hypotheek Garantie or NHG) -- generally referred to as
NHG and non-NHG transactions respectively -- remained relatively
stable in the three-month period ended June 2012, according to
the latest indices published by Moody's Investors Service.
However, any ostensible improvement in the trend lines was
strongly linked to the issuance of new transactions rather than
to positive performance development.

The Dutch RMBS market recorded a decrease of the 60+ day
delinquencies rate to 0.72% in June 2012 from 0.85% in June 2011.
This decline was mainly driven by non-NHG transactions. The
Moody's 60+ day delinquencies index of the Dutch prime RMBS
market (excluding transactions that are 100% backed by NHG)
decreased to 0.74% in June 2012 from 0.91% in June 2011. The
Saecure series recorded the most significant decrease in terms of
the 60+ day delinquencies rate, falling to 0.44% in June 2012.
This drop, which represented a 65.3% year-on-year decrease from
1.25% in June 2011, was mainly driven by the full repayment of
the Saecure 4 transaction in August 2011 and the issuance of
Saecure 7 and 9 transactions (in July 2010 and September 2010,

The 60+ day delinquencies index of NHG transactions recorded an
increase of around 50% to 0.59% in June 2012 from 0.39% in June
2011, mainly driven by E-MAC NL NHG transactions.

Moody's 60-90 day delinquencies index of the Dutch RMBS market,
comprising both NHG and non-NHG transactions, decreased to 0.20%
in June 2012 from 0.26% in June 2011. However, Moody's 60-90 day
delinquencies index of the Dutch NHG market increased
significantly to 0.19% in June 2012 from 0.11% in June 2011.

The cumulative defaults rate of Dutch RMBS decreased to 0.42% in
June 2012 from 0.77% in June 2011. The cumulative losses index
remained at a low level of 0.06% in June 2012.

Moody's noted a continued decline in the annualized constant
prepayment rate (CPR) for the Dutch RMBS market to 4.72% in June
2012 from 7.47% in June 2011. This decrease was mainly driven by
non-NHG transactions. In June 2012, the Arena and Storm series
recorded the most significant decrease in terms of the CPR,
falling by 58.4% to 3.69% and by 58.3% to 5.11%, respectively.

As of June 2012, the Dutch prime RMBS market (comprising both NHG
and non-NHG transactions) had an outstanding pool balance of
EUR285.3 billion, which constitutes a year-on-year increase of
5%. The NHG share of the Dutch RMBS market grew to 14.5% in June
2012 (estimated as a percentage of the current balance), from
12.1% in June 2011. Currently, the Dutch RMBS portfolio rated by
Moody's comprises 131 outstanding transactions. Moody's rated
eight transactions that closed in H1 2012.


On August 2, 2012, Moody's announced that the intended amendment
to the deal documentation relating to the notification trigger
level would not, in isolation, result in a downgrade or
withdrawal of the current ratings assigned to the notes issued by
Holland Mortgage Backed Series (Hermes) B.V. (VIII -- XVII),
PEARL Mortgage Backed Securities B.V. (1, 2, 4) and Lowland
Mortgage Backed Securities 1 B.V. On 15 June 2012, SNS Bank N.V.
was downgraded to Baa2/Prime-2 from Baa1/Prime-2, resulting in a
'notification event' and a 'replacement trigger event'.

On July 13, 2012, Moody's placed on review for downgrade the
ratings of Dutch RMBS notes issued by STRONG 2006 B.V. This
action took into account rising arrears, performance
deterioration and structural features. At the same time, Moody's
adjusted its expected loss assumption for STRONG 2011-1 B.V. to
0.23% (as a percentage of the current balance) from 0.15%. This
adjustment was made due to the asset performance to date.

On June 25, 2012, Moody's placed on review for downgrade the
ratings of eight notes in two RMBS transactions that have a
strong indirect linkage to those Dutch banks downgraded by
Moody's on June 15, 2012.

On May 25, 2012, Moody's placed on review for downgrade the
junior note in E-MAC Program II B.V. Compartment NL 2007-IV (E-
MAC NL 2007-IV). This action followed the update of portfolio
loss assumptions in all outstanding Moody's rated Dutch prime
RMBS transactions issued in the E-MAC NL series. This rating
action took into account the worse-than-expected performance of
the collateral to date as well as the level of credit enhancement
available to absorb the future projected losses on the portfolio.

Moody's outlook for Dutch RMBS collateral performance is stable.
Historically, Dutch borrowers have performed extremely well, even
in recessions. Although the Dutch economy is forecast to contract
by 0.6% in 2012 and the unemployment rate is expected to rise to
5.2% in 2012 from 4.4% in 2011 (see "Credit Opinion: Netherlands,
Government of", July 2012), materially wider losses would only
occur in the event of a substantial deterioration in the Dutch
economy. Generous unemployment benefits will continue to help
borrowers withstand any loss of employment. However, a small
deterioration in collateral performance is likely. House prices
declined 5.9% year-on-year in Q2 2012, and a continued fall is
forecast in 2012 which will, in turn, widen the losses on
foreclosed properties. However, the number of foreclosed
properties in the Netherlands is very low compared with other
European countries.


RSHN CAPITAL: Fitch Assigns 'b' Viability Rating
Fitch Ratings has assigned RSHB Capital S.A.'s (RSHBC) CHF450
million senior unsecured bonds a final Long-term foreign currency
rating of 'BBB'.

The proceeds from the issue were on-lent to Russian Agricultural
Bank (RusAg), the Russia-based parent company of RSHBC.  RusAg
has a Long-term Issuer Default Rating (IDR) of 'BBB'.

The bonds were issued at August 17, 2012, mature in three years,
have an annual coupon of 3.125% and do not bear put options.  The
notes were issued under RusAg's US$15 billion LPN program and are
ranked equally with the claims of RusAg's other senior creditors.
Terms of the issue include a change of control clause should the
Russian Federation cease to own at least 50% plus one share of
the bank.

RusAg is fully owned by the state via the Federal Agency on
Federal Property Management and was the fourth largest bank by
assets at end-7M12.  The bank's ratings reflect the potential
support available from the Russian authorities.

RusAg ratings are:

  -- Long-term Issuer Default Rating (IDR) 'BBB', Stable Oulook
  -- Short-term IDR 'F3'
  -- Viability Rating 'b'
  -- National Long-term rating 'AAA(rus)', Stable Outlook
  -- Support Rating '2'
  -- Support Rating Floor 'BBB'


* SPAIN: Gives FROB Power to Liquidate Banks Under New Laws
The Australian Associated Press reports that Spain will empower
its banking authorities to swoop in on lenders that appear to be
heading to trouble and, if necessary, liquidate them.

The new legislation, reportedly to be passed by government
ministers either this Friday or on August 31 was leaked to the
leading daily El Pais and the business paper Expansion on
Thursday, AAP discloses.

Aimed at preventing new banking catastrophes, it gives the Bank
of Spain and the state-backed Fund for Orderly Bank Restructuring
(FROB) new powers to intervene before crises erupt, AAP notes.

Spain's eurozone partners agreed in June to lend up to EUR100
billion (US$124 billion) to salvage the nation's banks, buckling
under record bad loans built up since a 2008 property crash, AAP

Eurozone powers agreed to the loan in return for a list of
conditions drawn up in a July 20 memorandum of understanding, AAP

The new laws aim to comply with those demands, AAP states.

According to AAP, the papers said Bank of Spain could intervene
early even in a bank that complies with liquidity and solvency
requirements, if there was objective evidence it could not
continue to meet those standards.

The central bank would have extensive powers to demand the
suspect bank provide an action plan within 10 days, agree a debt
restructuring plan with creditors or fire the management, AAP

The FROB would be in charge of the restructuring or "orderly
resolution" of banks, with powers to liquidate those entities it
considers to be non-viable and unable to repay public money in a
reasonable time frame, AAP notes.

According to Expansion, already nationalized banks would be first
in line for the new treatment, except for those whose liquidation
would present "systemic risk", an allusion to Bankia, AAP

Non-viable banks may be placed in bankruptcy or subjected to a
resolution plan by the FROB, AAP says.

The reports, as cited by AAP, said that the new legislation
foresees the creation of a "bad bank" to pool troubled banks' bad
assets and also a "bridge bank" to manage healthy assets for up
to five years until a buyer can be found.

The reports said that whether a bank is restructured or
liquidated, investors in the lender would suffer, AAP relates.

U N I T E D   K I N G D O M

COMMERCIAL GRAPHICS: In Administration, Cuts 30++ Jobs
Clare Weir at Belfast Telegraph reports that over 30 people have
lost their jobs in Co Down after Commercial Graphics (NI) Limited
went into administration.

Commercial Graphics (NI) Limited ceased trading on Aug. 17.

About 32 employees have been made redundant, with two staff
retained to assist the administrators, Stephen Cave and Paul
Rooney of PriceWaterhouseCoopers said, according to Belfast

Belfast Telegraph notes that Mr. Cave blamed the company's
failure on declining turnover and a significant increase in
competition in the local print sector.

"Despite the efforts of the directors to secure the future of the
business, severe cash flow pressures led to a cessation of
trading last week, with 32 employees being made redundant . . . .
Our immediate objective will be to determine the financial
position of the company, and to examine potential sale
opportunities," the report quoted Mr. Cave as saying.

             About Commercial Graphics (N.I.) Limited

Commercial Graphics (N.I.) Limited is a 80-year-old printing

VAUXHALL DEALER: In Administration, Ceases Trading
James Batchelor at CarDealer.magazine reports Vauxhall dealer
Approach has gone into administration.

CarDealer.magazine was tipped off by a customer wanting to get
into contact with the dealer, but was told that they had ceased
trading and was advised to take their business elsewhere.

"It's very bad news . . . .  As far as I am aware, Approach has
been trading in Andover for the past 50 years.  This comes after
the Southgate administration earlier this year.  It's a bad time
in this area," the report quoted an unnamed source as saying.

The report discloses that Car Dealer contacted Vauxhall and the
maker confirmed the news: "Approach in Andover and Salisbury are
going to serve administration.  All staff have been notified."

                          About Vauxhall

VAUXHALL dealer Approach runs dealerships in Andover, in
Hampshire, and Salisbury, in Wiltshire.


* Moody's Downgrades 21 EMEA CMBS Interest-Only Securities
Moody's Investors Service downgraded 21 interest-only (IO)
classes from 20 large multi-borrower and one single borrower
commercial mortgage backed securities (CMBS) transactions issued
between 2005 and 2007 due to the implementation of a global
methodology for rating structured finance IO securities.

A list of the Affected Credit Ratings is available at:

The ratings actions conclude the review for possible downgrade
that were initiated on February 23, 2012.

Ratings Rationale

Moody's methodology addresses expected differences in cash flows
to the IO holder that arise from defaults and losses and maps
them to a credit rating. The methodology is the result of
extensive analysis into the meaning of the IO rating and how to
better align IO ratings with Moody's expected loss (EL) ratings
framework. The ratings framework approach is based on the results
of Moody's cash flow analysis. To arrive at the ratings
framework, Moody's tested various types of IOs using a Monte
Carlo approach. Under multiple scenarios Moody's measured the
reduction in cash flow on an IO security relative to base case
scenarios that were run off a matrix of default and recovery
assumptions. The base case scenarios assumed no credit events on
the reference tranches. Simulations stressed defaults and
recoveries, but did not stress prepayments nor extensions.
Prepayments are considered non credit events. Changes to the
ratings or credit estimates of the referenced bonds or assets
will directly impact the ratings of the IO.

Based on the global methodology for rating structured finance IO
securities, the current ratings of the IO notes affected on
Aug. 22 are downgraded to the lowest of: (i) Ba3 (sf) or (ii) the
rating corresponding to the pool's EL, including realized losses.
In the case of two IO notes referenced by pools with one or a few
high quality loans, the probability of default of the respective
pools are commensurate with an expected loss rating significantly
higher than Ba3 (sf), therefore, the ratings of the IO tranches
were downgraded to levels above the cap of Ba3 (sf).

EMEA CMBS IOs each reference a single pool of loans. As such, the
key rating parameters that influence the EL on the referenced
pools will also influence the ratings on the IO. Key rating
parameters for EMEA CMBS include Moody's default probability of
the securitized loans in the pool (both during the term and at
maturity) as well as Moody's value assessment for the properties
securing these loans. Moody's derives from those parameters an EL
for the securitized pool.

Changes in any one or combination of the key parameters may have
rating implications on the loan pool that is referenced by the
IO. However, in many instances, a change in key parameter
assumptions in certain stress scenarios may be offset by a change
in one or more of the other key parameters. IO ratings are
sensitive to changes in expected loss of the loan pools that they

The performance expectations within a given variable indicate
Moody's forward-looking view of the likely range of performance
over the medium term. From time to time, Moody's may, if
warranted, change these expectations. Performance that falls
outside the given range may indicate that the collateral's credit
quality is stronger or weaker than Moody's had anticipated when
the referenced securities were issued or assets were securitized.
Even so, a deviation from the expected range will not necessarily
result in a rating action nor does performance within
expectations preclude such actions. The decision to take (or not
take) a rating action is dependent on an assessment of a range of
factors, including, but not exclusively limited to, the
performance metrics.

Primary sources of assumption uncertainty are the current
stressed macro-economic environment and continued weakness in the
occupational and lending markets. Moody's anticipates (i) delayed
recovery in the lending market persisting through 2013, while
remaining subject to strict underwriting criteria and heavily
dependent on the underlying property quality, (ii) strong
differentiation between prime and secondary properties, with
further value declines expected for non-prime properties, and
(iii) occupational markets will remain under pressure in the
short term and will only slowly recover in the medium term in
line with anticipated economic recovery. Overall, Moody's central
global macroeconomic scenario is for a material slowdown in
growth in 2012 for most of the world's largest economies fueled
by fiscal consolidation efforts, household and banking sector
deleveraging and persistently high unemployment levels. Moody's
expects a mild recession in the Euro area.

As the Euro area crisis continues, the rating of the structured
finance notes remain exposed to the uncertainties of credit
conditions in the general economy. The deteriorating
creditworthiness of euro area sovereigns as well as the weakening
credit profile of the global banking sector could negatively
impact the ratings of the notes. Furthermore, as discussed in
Moody's special report "Rating Euro Area Governments Through
Extraordinary Times -- An Updated Summary," published in October
2011, Moody's is considering reintroducing individual country
ceilings for some or all euro area members, which could affect
further the maximum structured finance rating achievable in those

The methodologies used in these ratings were "Moody's Approach to
Rating Structured Finance Interest-Only Securities" published in
February 2012 and "Moody's Approach to Real Estate Analysis for
CMBS in EMEA: Portfolio Analysis (MoRE Portfolio)" published in
April 2006.

In rating the affected transactions, Moody's used both MoRE
Portfolio and MoRE Cash Flow to model the cash-flows and
determine the loss for the tranches. MoRE Portfolio evaluates a
loss distribution by simulating the defaults and recoveries of
the underlying portfolio of loans using a Monte Carlo simulation.
This portfolio loss distribution, in conjunction with the loss
timing calculated in MoRE Portfolio is then used in MoRE Cash
Flow, where for each loss scenario on the assets, the
corresponding loss for each class of notes is calculated taking
into account the structural features of the notes. As such,
Moody's analysis encompasses the assessment of stressed

Moody's review of the IO ratings incorporated the use of the
excel based IO Calculator Model version 1.0 which was used for
both large multi-borrower and single-borrower transactions.
Moody's ratings are determined by a committee process that
considers both quantitative and qualitative factors. Therefore,
the rating outcome may differ from the model output.

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

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

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

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

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

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


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

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

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

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


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

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

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

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

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

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

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