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                           E U R O P E

           Thursday, August 30, 2012, Vol. 13, No. 173



CENTROTHERM PHOTOVOLTAICS: Halts Operations at Vienna Branch
CROWDPARK: Remains Hopeful Despite Insolvency Filing
NURBURGRING AUTO: Says Talks With F1 Chief Remains on Track
P+S SHIPYARDS: Files for Insolvency After Creditor Talks Fail
SOVELLO AG: Temporarily Halts Production


ARNOTTS: Trustees to Wind Up Pension Fund
DJ CAREY: Trade Creditors Have Yet to Recover Money
GREENSTAR: Several Potential Buyers Express Interest
TARGET EXPRESS: Ceases Trading; Almost 400 Jobs at Risk
TREASURY HOLDINGS: KBC's Winding-Up Application Adjourned


BANCA CARIGE: Fitch Cuts Long-Term Issuer Default Rating to 'BB+'


KOMPETENZ JSC: Fitch Assigns 'B' Insurer Finc'l Strength Rating


BANKAS SNORAS: Court Officially Declares Bank Bankrupt


PBG SA: S&P Withdraws 'D' Long-Term Corporate Credit Rating


HIDROELECTRICA SA: Administrator Cites 9 Reasons for Insolvency


GAZPROMBANK: S&P Raises Counterparty Credit Ratings From 'BB+/B'


FTPYME TDA: Fitch Affirms Rating on EUR7.7-Mil. Notes at 'BB-sf'
PUERTAS NORMA: Spanish Court Commences Liquidation Process
* SPAIN: SME ABS Performance Worsens Further in June 2012

U N I T E D   K I N G D O M

ATP OIL: Says UK Unit Not Part of U.S. Bankruptcy
JML DOLMAN: South Nottingham College to Help 400 Apprenticeships
RAPIER NAME: CHI Saves Firm From Administration
SHOWERLUX UK: 16 Workers Lose Jobs as Firm Ceases Operations
STOREY CREATIVE: Placed Into Liquidation

VEDANTA RESOURCES: Moody's Affirms 'Ba1' Corporate Family Rating
* UK: Car Dealer Insolvencies Up 41.7% in July


* EUROPE: Moody's Says Automotive Production Key to CEE Economy
* Fitch Says Diversifying Equity Market Listing Gaining Momentum
* Upcoming Meetings, Conferences and Seminars



CENTROTHERM PHOTOVOLTAICS: Halts Operations at Vienna Branch
Solar Novus Today reports that Centrotherm Photovoltaics said it
has discontinued operations at its Vienna branch in an attempt to
concentrate on its core business.

According to the report, the insolvent Centrotherm said the 38
employees affected by its recent move have been informed of the

Solar Novus Today relates that Centrotherm said because the
parent company's management board has decided to no longer
procure services or render payments, various options for action
are being reviewed relating to the winding-down of the company
according to Austrian law.

As reported in the Troubled Company Reporter-Europe on July 12,
2012, Bloomberg News reported that Centrotherm Photovoltaics AG
sought bankruptcy protection, at least the 14th U.S. and European
company to founder amid a global oversupply of photovoltaic
modules.  According to Bloomberg, Centrotherm said the
Blaubeuren-based company filed for Chapter 11 type protection in
Ulm's district court to start insolvency proceedings.  The
company, as cited by Bloomberg, said that for three months, it
will be shielded from creditors while its management tries to

Centrotherm Photovoltaics AG is a German solar manufacturing
equipment-maker.  The company sells production lines used to make
polysilicon, ingots, wafers, cells and panels.

CROWDPARK: Remains Hopeful Despite Insolvency Filing
The Next Web reports that the future for Crowdpark is looking a
lot brighter than it did in July when the social gaming startup
filed for insolvency, with the recent release of two of its
Facebook games on mobile.  Pet Vegas Mobile and AnteUp Mobile
will enable to company to mix the markets of social gaming,
online gambling and mobile gaming, the report says.

According to the report, Crowdpark's insolvency administrator has
insisted that he is "confident that there will be a favorable
outcome for Crowdpark."

The Next Web recalls that it was a major shock to the Berlin
scene when Crowdpark, which was founded in 2009 and had attracted
a total of $8 million in funding, ran into trouble last month.

At the time, the report notes, CEO Martin Frindt told Silicon
Allee that the company was functioning as normal despite the
insolvency, and now preliminary insolvency administrator Thomas
Kuhn of Brinkmann & Partner is working together with the founding
management team and M&A advisory firm Advantum Corporate Finance
to "steer the international investment and acquisition process."

"Crowdpark has a highly qualified team and great technology . . .
We have seen much interest from potential investors and acquirers
in our initial discussions. I am confident that there will be a
favorable outcome for Crowdpark," the report quotes Mr. Kuhn as

Crowdpark is a Berlin-based social betting games provider.

NURBURGRING AUTO: Says Talks With F1 Chief Remains on Track
GMM Newswire reports that Nurburgring Automotive GmbH's boss
Jorg Lindner said talks with F1 chief executive Bernie Ecclestone
remain on track.

Mr. Lindner claimed The Nurburgring's current financial problems
do not mean the German circuit has no future on the F1 calendar.
Mr. Lindner said the company headed by himself and Kai Richter
have a lease on the Nurburgring until 2040, the report relays.

"I intend to fulfill it," Mr. Lindner was quoted by the
Rheinische Post newspaper.

"Everyone is talking about Mr. Ecclestone, but nobody except us
is talking to Mr. Ecclestone," GMM Newswire quotes Mr. Lindner as
saying.  He revealed he had a meeting in London recently with the
81-year-old Briton.  The topic, he said, was a Formula One race

"Specifically, we are aiming for a long-term relationship, not
only for the season 2013," Mr. Lindner, as cited by GMM Newswire,

"The receivers have given us an assurance that agreements we make
with Mr. Ecclestone need to be a part of the (insolvency)
proceedings," Mr. Lindner said.  "Naturally, a sale would have a
higher value with a Formula One contract," Mr. Lindner added.

AutoWeek reported that the Rheinland-Palatinate state legislature
has approved a $312 million loan guarantee, which will allow the
circuit to service its existing debt and continue operation.

As reported in the Troubled Company Reporter-Europe on July 20,
2012, Spiegel Online said The Nurburgring was facing bankruptcy
because its private operating company, Nurburgring GmbH, is no
longer able to pay the interest on a EUR330 million loan it was
provided by the ISB investment and structural bank, which belongs
to the state of Rhineland-Palatinate.  The company also hasn't
been able to cover its lease payments, according to Spiegel
Online.  A report in the Rhein-Zeitung newspaper stated that the
operating company has debts of EUR413 million, including the ISB
loan and EUR83 million in other outstanding loans, Spiegel Online
disclosed. If the track were to be sold, it could come at a loss
of several hundred million euros for taxpayers, Spiegel Online

The Nurburgring has been the main venue for the German Grand Prix
since World War II but has shared duties with Hockenheim since
2009.  The race track is owned by the German government, with the
private operator, Nurburgring GmbH, responsible for the day-to-
day running.

P+S SHIPYARDS: Files for Insolvency After Creditor Talks Fail
Deutsche Welle reports that P+S has said that it needs to file
for bankruptcy protection after talks with creditors have
remained inconclusive.

P+S said Wednesday that it had run into liquidity problems after
talks with creditors and suppliers failed earlier this week,
Deutsche Welle relates.

According to Deutsche Welle, the insolvency court in Stralsund
said that P+S Chief Executive Ruediger Fuchs had filed for a
planned insolvency, meaning that the CEO was seeking to remain in
the post to engineer procedures in collaboration with a court

As a result of the 2008 financial crisis, P+S Shipyards has been
struggling to get bank funding for a series of ships on its order
books, Deutsche Welle notes.

The group, which runs shipyards in the Northeastern German port
cities of Stralsund and Wolgast, was already bailed out in 2009
with a EUR48million (US$60 million) rescue package granted by the
regional state of Mecklenburg-Western Pomerania, Deutsche Welle

In 2012, the group has experienced new liquidity problems after
the authorities stopped a second rescue that would have been
worth EUR152.4 million, Deutsche Welle discloses.

On Wednesday, it was unclear whether the shipyard group could be
rescued again and how many of its more than 2,000 staff might
keep their jobs, Deutsche Welle states.

P+S is a German shipyard group.

SOVELLO AG: Temporarily Halts Production
Solar Novus Today reports that insolvent Sovello AG has ceased
production as of August 27 for the time being.

Solar Novus Today says liquidator Lucas F. Flother, who managed
to raise the August wages for the remaining employees, has told
them that they will be laid off as of September 1. Due to the
insolvency proceedings, revenues further declined in the past
weeks, the report relays.  However, the search for an investor
continuous, adds Solar Novus Today.

As reported in the Troubled Company Reporter-Europe on May 16,
2012, Bloomberg News said Sovello GmbH filed for insolvency and
will attempt to restructure in the process.  According to
Bloomberg, Sovello said the company cannot pay its debts and has
asked the Dessau insolvency court to be allowed to restructure
under its management.  The company said that attorney Bernd
Depping has been appointed as preliminary administrator.

Sovello GmbH is a solar-power company based in Bitterfeld-Wolfen,


ARNOTTS: Trustees to Wind Up Pension Fund
Ciaran Hancock at The Irish Times reports that the trustees of
the defined-benefit pension scheme operated by Dublin retailer
Arnotts have indicated to members that they might have to wind up
the fund.

Arnotts has informed the trustees that it will cease payments to
the scheme from December 7 as it is not in a position to provide
the necessary finance to close the deficit in the fund, which has
topped EUR10 million at certain times over the past two years,
the Irish Times discloses.

A proposal to freeze the scheme to protect members' accruals to
date, with a defined-contribution scheme established for future
service, looks to have been scuppered by new pension regulations,
the Irish Times says.

The Irish Times relates that in a letter to members dated
August 17, Thomas Casey, chairman of the trustees, said: "Under
the provisions of the trust deed governing the fund, the ceasing
of contributions by the company requires the trustees to wind up
the fund (unless the trustees resolve at the date contributions
cease to defer the wind-up)."

The Arnotts Staff Pension Fund 2007 has 379 retired members, who
will have first call on the scheme's assets if wound up, the
Irish Times discloses.

According to the Irish Times, Mandate, the trade union that
represents the bulk of Arnotts' staff, on Tuesday issued a
statement describing a wind-up as "drastic and unfair" on its

The union said deferred and active members could lose 50% or more
of their accruals in the fund in the event of a wind-up, the
Irish Times notes.

Arnotts is a Dublin-based retailer.

DJ CAREY: Trade Creditors Have Yet to Recover Money
Gordon Deegan at Irish Examiner reports that trade creditors from
collapsed firms associated with former hurling star DJ Carey have
yet to see any monies from the liquidation of the companies.

In February last year, Mr. Carey's contract cleaning business DJ
Carey Enterprises Ltd., along with his Alton Ltd and Dublin
Janitorial Centre Ltd., were all placed in liquidation with
combined debts of EUR1.7 million, Irish Examiner recounts.

Cork-based accountant Noel Murphy was appointed as liquidator to
the firms, where Mr. Carey served as a director with his former
partner and former Dragons' Den star Sarah Newman, Irish Examiner

According to Irish Examiner, documents recording Mr. Murphy's
dealings relating to the companies' liquidation for the first
year -- from Feb. 18, 2011, to Feb. 18, 2012 -- show that the
largest proportion of the monies received by the firms has been
spent on liquidation and legal fees, with trade creditors yet to
receive any money.

It is understood that the amounts owed to trade creditors are
small and that Mr. Carey and Ms. Newman are owed more than 50% of
the debts run up by the business, Irish Examiner notes.

It is not known at this time if there will be any money left for
the trade creditors at the end of the continuing liquidation
process, Irish Examiner says.

GREENSTAR: Several Potential Buyers Express Interest
Geoff Percival at Irish Examiner reports that a number of parties
are believed to have expressed interest in acquiring Greenstar,
which went into receivership recently.

A spokesperson for the company's receiver, David Carson of
Deloitte, declined to comment at length yesterday, beyond saying
the sales process is continuing and talks are ongoing with
interested parties, according to Irish Examiner.

The report notes that one source said it was understood there is
widespread interest in the company.

Irish Examiner discloses that in a brief statement made, Mr.
Carson said his immediate priority would be to engage with those
who have previously expressed interest in acquiring Greenstar and
to identify other potential buyers.

Private equity houses Anchorage Capital, Oak Tree Capital and
Gores Group have previously been linked with bids for Greenstar
Ireland, the report relates.

Irish Examiner notes that reports over the weekend suggested that
Gores in particular is showing renewed interest in Greenstar,
having been linked with a EUR50 million bid earlier this year.
The US firm's previous attempt failed over its proposition to buy
Greenstar debt free, or for its lenders to write-off a
substantial amount of said debt, the report notes.

Greenstar's former owner, renewable energy group NTR had,
reportedly, initially been pricing Greenstar's Irish business at
around EUR150 million, the report adds.

As reported in the Troubled Company Reporter-Europe on Aug, 27,
2012, Belfast Telegraph said that waste company Greenstar claimed
banks have demanded immediate payment of loans causing it to fall
into receivership.  The report related that the banks extended
loan repayment periods on a number of occasions over the last
year, the report notes.  The firm's debts are in the region of
EUR83 million, according to Belfast Telegraph.

TARGET EXPRESS: Ceases Trading; Almost 400 Jobs at Risk
RTE News reports that almost 400 people are to lose their jobs at
College Freight after the company, which operates as Target
Express, announced it had decided to cease trading.

It is understood that the Revenue Commissioners placed
attachments on the company's bank accounts last Friday, and that
despite ongoing negotiations, the issues could not be resolved,
RTE relates.

RTE notes that while College Freight did not confirm the scale of
the debt to the Revenue, it's understood to be less than
EUR1 million.

As yet it's unclear whether the company will seek the appointment
of a receiver, which could lead to the sale of the company as a
going concern with at least some of the jobs being saved, RTE

Target Express opened in 1988 and is Ireland's largest privately
owned transport and distribution company with 12 operating depots
throughout the 32 counties and 4 within the UK.  It employs 390
staff in Ireland and the UK.

TREASURY HOLDINGS: KBC's Winding-Up Application Adjourned
RTE News reports that the High Court has adjourned KBC Bank's
application to have Treasury Holdings wound up until October 9.

Mr. Justice Brian McGovern said he was not satisfied KBC Bank
would suffer any significant prejudice if a short adjournment was
granted to Treasury Holdings, RTE relates.

According to RTE, he said it was a case which clearly required
detailed consideration.

He said very substantial sums of money were involved and the case
also involved a significant number of companies with assets in
this jurisdiction and internationally, RTE notes.

He directed that Treasury Holdings file a sworn documents
outlining the terms and circumstances of a transfer of the assets
of a Treasury subsidiary in Singapore to a company beneficially
owned by a director of Treasury, Richard Barrett, RTE discloses.

He accepted an undertaking by lawyers for Treasury that there
would be no disposition by any companies in the group of their
shares before October 9, RTE says.  He said he would not grant
any further adjournments and the matter would be decided in
October, RTE notes.

As reported by the Troubled Company Reporter-Europe on Aug. 29,
2012, related that KBC Bank is seeking the
appointment of a liquidator to shut the company and sell off its
assets over an unpaid debt of EUR70 million.  The debt is KBC's
share of EUR300 million of loans that financed the Spencer Dock
developments in Dublin's IFSC, said.  The bulk of
the debt is owed to National Asset Management Agency, noted.  On Monday, lawyers for Treasury tried to
block the move, related.  They want the court to
delay making any decision to allow time for negotiations between
the parties and US bank Morgan Stanley, which has offered more
than EUR160 million for the properties secured on the debt, disclosed.  Treasury, as cited by,
said liquidation would jeopardize 300 jobs in Ireland, and 100
jobs abroad.

Treasury Holdings is an Irish property developer.  The company
owns the Westin Hotel in Dublin and the Irish headquarters of
accounting firm PricewaterhouseCoopers.


BANCA CARIGE: Fitch Cuts Long-Term Issuer Default Rating to 'BB+'
Fitch Ratings has downgraded the Long-term Issuer Default Ratings
(IDR) of Banca Popolare di Sondrio (BPSondrio) and Banco di Desio
e della Brianza (BDB) to 'BBB+' from 'A-', and the Long-term IDR
of Banca Popolare di Milano (BPMilano) to 'BBB-' from 'BBB'.  The
agency has also downgraded the Long-term IDRs of Banca Carige,
Banca Popolare di Vicenza (BPVicenza), Credito Valtellinese
(CreVal) and Veneto Banca to 'BB+' from 'BBB'.  Simultaneously,
Fitch has affirmed the Long-term IDRs of Banca Popolare
dell'Emilia Romagna (BPER) at 'BBB' and of Credito Emiliano
(Credem) at 'BBB+'.

The Outlooks on all the banks' Long-term IDRs is Negative.

and VRS

The rating actions follow a periodic review of the nine banking
groups.  The Negative Outlook on the banks' Long-term IDRs
reflects the pressure arising from the current challenges in the
operating environment, where access to wholesale funding has
become more difficult and pressure on profitability remains high.

The VRs and therefore the IDRs of all the banks would come under
pressure if operating profitability deteriorated further or if
the inflow of new impaired loans materially rose for a prolonged
period of time.  Fitch currently expects Italian GDP to contract
by 1.9% in 2012 and to show zero growth in 2013.  The banks'
ratings are also sensitive to material deterioration in funding
and liquidity.

The liquidity of the nine banking groups has come under pressure
as funding conditions have deteriorated materially since H211,
and all banks have accessed funding from the European Central
Bank (ECB), albeit to different degrees.  Fitch considers the
funding of some of the banks to be more reliant on institutional
funding than their peers, and wholesale maturities vary across
banks, but the agency expects that the banks will all continue to
concentrate on retail deposits and bonds issued to retail
clients, as these are viewed as a more stable funding source.
The agency currently expects that, although liquidity has
tightened, all banks will maintain access to funding from the ECB
as they have worked on increasing the availability of eligible
assets for central bank refinancing operations.  A material
deterioration of access to the interbank markets and ECB
liquidity would put significant pressure on ratings.

For the banks' Outlooks to be revised to Stable and ratings to
come under upward pressure, a material improvement in the
operating environment, which would allow the banks to strengthen
their operating profitability and reduce their large stocks of
impaired loans, would be necessary.

The key rating drivers and sensitivities for the IDRs and VRs of
each bank (in addition to the rating drivers and sensitivities
that are applicable to all nine banking groups) are:


Banca Carige's IDRs and VR have been downgraded because Fitch
expects the bank's performance and asset quality to remain under
pressure in the current operating environment.  Banca Carige's
fast growth in recent years has helped it to report adequate
operating profitability, but Fitch expects loan impairment
charges to increase in the weak operating environment.

Banca Carige's ratings are based on Fitch's expectation that the
bank will manage to strengthen its capitalization, which
currently is weak with a Fitch core capital ratio of 5.9% at end-
June 2012.  The bank plans to reorganize its group structure to
benefit from tax benefits relating to goodwill write-downs.  This
should allow the bank to improve its regulatory core Tier 1 ratio
to about 9% at end-2012, although Fitch considers this modest
given the bank's weak asset quality.

Banca Carige's VR and IDRs are sensitive to a further material
deterioration in asset quality.  The ratings would come under
pressure if the bank did not manage to improve its capitalization
as planned or if profitability materially dropped.


BPER's VR and IDRs have been affirmed because Fitch considers the
bank's operating performance, capitalization and funding
structure relatively resilient in the current economic downturn.
The bank's asset quality is weak with gross impaired loans equal
to a high 11.7% of gross loans at end-2011, and will deteriorate
further given the weak economic performance in Italy.  However,
BPER's pre-impairment operating profitability has remained
adequate, and Fitch expects the bank to generate sufficient
earnings to cover rising loan impairment charges.

BPER's VR and IDRs are sensitive to a sharper than expected
deterioration in asset quality as net impaired loans already
account for a significant proportion of the bank's equity.  The
ratings would also come under pressure if the bank's ability to
generate earnings deteriorated materially or if the bank failed
to maintain its capitalization.

Meliorbanca's ratings reflect its full ownership by BPER and its
integration with the parent bank.  Although Fitch does not
consider Meliorbanca a core subsidiary of BPER, it assigns the
same IDRs based on support from its parent, as the agency
believes that failure to support Meliorbanca would constitute
significant reputational risk for BPER.  In addition, the planned
merger of Meliorbanca into the parent underpins the equalization
of Meliorbanca's IDR with that of its parent.  Meliorbanca's IDRs
are sensitive to changes in its parent's propensity to provide
support, which Fitch currently does not expect, or to changes in


BPMilano's VR and Long-term IDR have been downgraded to reflect
Fitch's expectations that the bank's weak performance and asset
quality will remain under pressure in the current difficult
operating environment.  Fitch expects the bank to improve cost
efficiency and to strengthen its operating performance under its
new business plan, which was announced in July 2012.
Improvements in performance are likely to be gradual, but the
agency expects a speedy implementation of the bank's cost
reduction measures.

Fitch considers BPMilano's capitalization acceptable as reported
regulatory capital ratios are depressed by regulatory add-ons on
risk-weighted assets.  At end-March 2012, the bank's core Tier 1
ratio stood at 8.3%, but excluding the regulatory add-ons, the
ratio would have been a stronger 10.3%.  Regulatory capital,
however, includes EUR500 million hybrid instruments held by the
Italian government, which the bank plans to repay in 2013.

Fitch expects BPMilano's asset quality to deteriorate further in
the current weak operating environment.  However, the bank
strengthened the coverage of impaired loans with loan impairment
allowances in 2011, which should help to mitigate the impact of
further asset quality deterioration.

The 'CCC' rating assigned to BPMilano's hybrid instruments and
preferred stock has been affirmed.  The rating reflects
heightened non-performance risk for these instruments after the
bank's announcement that coupon payments would only be made if
the bank was contractually obliged to do so.

BPMilano's VR and IDRs are sensitive to further material
deterioration in asset quality or performance. Failure to
implement the measures to improve the bank's cost efficiency and
earnings generation would put pressure on the ratings, as would
failure to meet its target capitalization.  Upward pressure on
the bank's ratings would require a material improvement in
operating profitability.


BPSondrio's VR and Long-term IDR have been downgraded because
Fitch considers that the current difficult operating environment
has resulted in increased pressure on the bank's performance and
asset quality.  Fitch expects the bank to be more resilient than
many of its peers, which underpins BPSondrio's VR, and Long-term
IDR, at 'bbb+' and 'BBB+', respectively.  BPSondrio currently
benefits from sound asset quality, which deteriorated throughout
the downturn but remains significantly better than the peer
average.  Fitch considers the bank's funding adequate.  The bank
receives its medium- and long-term funding predominantly from its
customers, but it also accesses unsecured interbank and
institutional funding.  Liquidity risk related to this form of
funding is mitigated by the bank's increased portfolio of
unencumbered ECB-eligible assets.

The bank's profitability has been more volatile than some of its
peers, but this has in part been caused by valuation changes of
its portfolio of Italian government bonds, a relatively large
proportion of which is held in the trading portfolio.  Fitch
considers BPSondrio's capitalization with a FCC ratio of 7.5% at
end-2011 acceptable given the bank's relatively sound asset
quality, but the agency considers this level of capitalization
lower than the capitalization of similarly rated peers.

BPSondrio's IDRs and VR are sensitive to a material deterioration
in asset quality or operating profitability.


The downgrade of BPVicenza's IDRs and VR reflects Fitch's
expectation that the bank will face challenges in improving its
profitability, funding and capitalization in the difficult
operating environment.  BPVicenza's operating profitability
remained weaker than most of its peers' in 2011, and higher loan
impairment charges weighed on H112 operating profit.  The bank
has taken measures to reduce operating expenses and is
concentrating on managing its asset quality, which has
deteriorated.  Fitch considers the coverage of the bank's
impaired loans weaker than at some peers.

The bank has managed to increase customer funding through term
deposits gathering and the sale of bonds to its retail customers,
and its loan/customer funding ratio (including deposits and bonds
sold to retail clients) improved in H112.  However, the bank will
have to continue to rebalance its funding mix as its liquidity
currently is underpinned by funding received from the ECB.

BPVicenza plans to strengthen its capital ratios, which Fitch
currently considers only just acceptable given the high level of
impaired loans.  The agency expects the bank to reach its target
core Tier 1 capital ratio of 9% by end-2013.

BPVicenza's VR and IDRs would come under pressure if the bank
does not achieve its goal of rebalancing its funding mix by
increasing retail deposits and bonds issued to retail clients
while limiting loan growth.  The ratings would also come under
pressure if the bank does not manage to reach its target


BDB's VR and Long-term IDR have been downgraded because Fitch
expects that the current difficult operating environment will
result in increased pressure on the bank's performance and asset
quality.  In addition, the downgrade reflects Fitch's expectation
that the bank's FY12 profitability will be depressed by one-off
charges (around EUR42 million) to cover the cost of the orderly
liquidation of BDB's Swiss subsidiary.  Fitch expects BDB's
operating performance to remain more resilient than that of many
of its peers, and notes that bank's funding is firmly based on
retail deposits and bonds issued to customers through the bank's
branch network; both of which underpin the bank's 'bbb+' VR and
'BBB+' Long-term IDR. .

BDB's asset quality has deteriorated but remained sound,
benefiting from its tight lending criteria, which have been in
place for many years.  Fitch expects asset quality to decline
further, but less so than at many of its peers; combined with
sound capitalization, this means that Fitch expects the bank to
perform better than most of its peers throughout the current
market downturn.

BDB appointed a new chief executive officer in 2012 after a Bank
of Italy inspection revealed some weaknesses related to
information technology, organization and regulatory controls.
Fitch understands that controls have been strengthened. BDB has
announced that it is closing down its Swiss subsidiary.

BDB's IDRs and VR would come under pressure if further problems
related to weaknesses in its internal control environment came to
light, or if further losses related to these problems
materialized.  The ratings would also come under pressure if
asset quality or operating profitability weakened substantially,
both of which Fitch does not currently expect.


Credem's VR and IDRs have been affirmed because Fitch expects the
bank's operations to remain more resilient than most of its
peers' during the current economic downturn.  Fitch considers the
bank's operating profitability, asset quality and capitalization

The bank generated an operating return on equity of around 11% in
2011 and Q112, and its asset quality is sound, with gross
impaired loans equal to a low 4.2% of gross loans at end-March
2012.  Fitch expects asset quality to deteriorate somewhat given
the weak economic environment in Italy, but the growth of
impaired loans should remain easily manageable for the bank.
Fitch considers the bank's Fitch core capital ratio of 8.8% at
end-March 2012 adequate considering the relatively moderate level
of net impaired loans.

Credem's VR and IDRs are sensitive to a material deterioration in
operating profitability and asset quality and to a deterioration
in the bank's funding structure.  Ratings would also come under
pressure if the bank failed to maintain its capitalization.


CreVal's IDRs and VR have been downgraded because Fitch expects
that the bank's weak performance, asset quality and
capitalization will remain under pressure in the difficult
operating environment.

The bank's operating performance has remained under pressure as
higher loan impairment charges have weighed on operating profit.
CreVal's asset quality has suffered during the current economic
downturn, and gross impaired loans were equal to a high 9.55% of
gross loans at end-June 2012.  Impairment allowance coverage of
impaired loans has declined but remains at higher levels than
that of many peers.

The bank's capitalization improved after the conversion of a
convertible bond to a Fitch core capital ratio of 6.6% at end-
June 2012 from a weak 4.02% at end-2011, which was affected by
negative valuation reserves on the bank's Italian government bond
portfolio.  CreVal expects to achieve a 7% Basel III common
equity Tier 1 ratio by end-2012, including the effect of
deducting negative revaluation reserves related to its Italian
government bond portfolio.  However, CreVal has not yet repaid
hybrid capital issued to the government, which contributes about
95bp to its 8% regulatory core Tier 1 ratio at end-June 2012
(including the effect of the sale of its asset management

CreVal's VR and IDRs would come under pressure if asset quality
deteriorated further or if the bank did not reach its target
capitalization.  The ratings are also sensitive to a further
deterioration in the bank's performance or funding structure.

Credito Artigiano's IDRs are equalized with its parent's and
reflect Fitch's view that Credito Artigiano, which operates as
CreVal's distribution network in parts of Lombardy and other
regions, is a core subsidiary of CreVal.  CreVal announced that
it will merge Credito Artigiano into the parent bank by end-
August 2012, which underpins the integration of the subsidiary.


Veneto Banca's IDRs and VR have been downgraded because Fitch
expects the bank's performance and asset quality to remain under
pressure in the current operating environment.  Veneto Banca
generated a 1.64% operating return on average equity (ROAE) in
2011 as loan impairment charges increased, and Fitch expects
these to remain high given the weak performance of the domestic
economy.  The bank's asset quality has deteriorated, and gross
impaired loans were equal to 8.35% of gross loans at end-2011.
Fitch considers the coverage of the bank's impaired loans weaker
than at some of its peers.

Veneto Banca's Fitch core capital ratio of 5.9% at end-2011 was
affected by negative valuation reserves on the bank's Italian
bond portfolio, but Fitch expects the bank's capital ratios to
improve significantly over the coming months.  The bank
concentrates on attracting retail funding to strengthen its
liquidity further.

Veneto Banca's VR and IDRs would come under pressure if the bank
did not reach its target capitalization, if asset quality
deteriorated materially further than Fitch expects or if the
bank's operating profitability did not stabilize at an adequate


Fitch has affirmed the Support Ratings (SRs) and Support Rating
Floors (SRFs) for all the banks at their current level.  The SRs
reflect Fitch's expectation of the probability that the
authorities would provide support to the banks if needed.  Fitch
notes that the medium-sized banks have strong local franchises
and have relatively large customer funding bases.  Customer
funding from retail clients also includes senior and, to a lesser
extent, subordinated debt distributed through the banks' branch

Fitch's assumptions for support are based on the expectation that
in the current difficult market environment the propensity to
support local banks remains high.  The SRs of all banks subject
to today's rating actions is '3', with the exception of BDB,
whose '4' SR and 'B+' SRF reflects its ownership structure and
its relatively small size.

The SRs are sensitive to any change in assumptions around the
propensity or ability of the Italian authorities to provide
timely support to the banks.  This might arise if the authorities
became subject to external constraints to support all senior
creditors of a bank, or if there was a change in the authorities'
approach to supporting local banks, which Fitch currently does
not expect.  The Italian state's ability to provide such support
is dependent upon its creditworthiness, reflected in its 'A-'
Long-term rating with a Negative Outlook.


Subordinated debt and hybrid capital instruments issued by the
banks are notched down from the issuers' VRs in accordance with
Fitch's assessment of each instrument's respective non-
performance and relative loss severity risk profiles, which vary
considerably.  The ratings of subordinated debt and hybrid
securities are sensitive to any change in the banks' VRs or to
changes in the banks' propensity to make coupon payments that are
permitted but not compulsory under the instruments'

The rating actions are as follows:

Banca Carige

  -- Long-term IDR: downgraded to 'BB+' from 'BBB'; Outlook
  -- Short-term IDR: downgraded to 'B' from 'F3'
  -- Viability Rating: downgraded to 'bb+' from 'bbb'
  -- Support Rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB'
  -- Senior unsecured notes: long-term rating downgraded to 'BB+'
     from 'BBB'; short-term rating downgraded to 'B' from 'F3'
  -- Subordinated notes: downgraded to 'BB' from 'BBB-'

Banca Popolare dell'Emilia Romagna

  -- Long-term IDR: affirmed at 'BBB'; Outlook Negative
  -- Short-term IDR: affirmed at 'F3'
  -- Viability Rating: affirmed at 'bbb'
  -- Support Rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB+'
  -- Senior unsecured notes and EMTN program: affirmed at
  -- Subordinated notes: affirmed at 'BBB-'


  -- Long-term IDR: affirmed at 'BBB'; Outlook Negative
  -- Short-term IDR: affirmed at 'F3'
  -- Support Rating: affirmed at '2'
  -- Senior unsecured debt: affirmed at 'BBB'

Banca Popolare di Milano

  -- Long-term IDR: downgraded to 'BBB-' from 'BBB'; Outlook
  -- Short-term IDR: affirmed at 'F3'
  -- Viability Rating: downgraded to 'bbb-' from 'bbb'
  -- Support Rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB+'
  -- Senior unsecured notes and EMTN program: long-term rating
     downgraded to 'BBB-' from 'BBB'; short-term rating affirmed
     at 'F3'
  -- Subordinated Lower Tier 2 debt: downgraded to BB+' from
  -- Preferred stock and hybrid capital instruments: affirmed at

Banca Popolare di Sondrio

  -- Long-term IDR: downgraded to 'BBB+' from 'A-'; Outlook
  -- Short-term IDR: affirmed at 'F2'
  -- Viability Rating: downgraded to 'bbb+' from 'a-'
  -- Support Rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB'

Banca Popolare di Vicenza

  -- Long-term IDR: downgraded to 'BB+' from 'BBB'; Outlook
  -- Short-term IDR: downgraded to 'B' from 'F3'
  -- Viability Rating: downgraded to 'bb+' from 'bbb'
  -- Support Rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB'
  -- Senior unsecured notes and EMTN program: long-term rating
     downgraded to 'BB+' from 'BBB'; short-term rating:
     downgraded to 'B' from 'F3'
  -- Market-linked senior notes: downgraded to 'BB+emr' from
  -- Subordinated Lower Tier 2 notes: downgraded to 'BB' from

Banco di Desio e della Brianza

  -- Long-term IDR: downgraded to 'BBB+' from 'A-'; Outlook
  -- Short-term IDR: affirmed at 'F2'
  -- Viability Rating: downgraded to 'bbb+' from 'a-'
  -- Support Rating: affirmed at '4'
  -- Support Rating Floor: affirmed at 'B+'

Credito Emiliano

  -- Long-term IDR: affirmed at 'BBB+'; Outlook Negative
  -- Short-term IDR: affirmed at 'F2'
  -- Viability Rating: affirmed at 'bbb+'
  -- Support Rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB'
  -- Senior unsecured notes and EMTN program: affirmed at

Credito Valtellinese

  -- Long-term IDR: downgraded to 'BB+' from 'BBB'; Outlook
  -- Short-term IDR: downgraded to 'B' from 'F3'
  -- Viability Rating: downgraded to 'bb+' from 'bbb'
  -- Support Rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB'
  -- Senior unsecured notes, including notes guaranteed by
  -- Valtellinese, and EMTN program: long-term rating
     downgraded to 'BB+' from 'BBB'; short-term rating:
     downgraded to 'B' from 'F3'

Credito Artigiano

  -- Long-term IDR: downgraded to 'BB+' from 'BBB'; Outlook
  -- Short-term IDR: downgraded to 'B' from 'F3'
  -- Support Rating: downgraded to '3' from '2'

Veneto Banca

  -- Long-term IDR: downgraded to 'BB+' from 'BBB'; Outlook
  -- Short-term IDR: downgraded to 'B' from 'F3'
  -- Viability Rating: downgraded to 'bb+' from 'bbb'
  -- Support Rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB'
  -- Senior unsecured notes and EMTN program: long-term rating
     downgraded to 'BB+' from 'BBB'; short-term rating:
     downgraded to 'B' from 'F3'
  -- Subordinated Perpetual Tier 1 notes: downgraded to 'B' from


KOMPETENZ JSC: Fitch Assigns 'B' Insurer Finc'l Strength Rating
Fitch Ratings has assigned Kazakhstan-based Kompetenz Joint Stock
Company (Kompetenz) an Insurer Financial Strength (IFS) rating of
'B' and a National IFS rating of 'BB(kaz)'.  The Outlooks are

The ratings reflect Kompetenz's volatile underwriting
performance, limited financial flexibility, (as it is privately
owned by an individual) its relatively weak but new franchise in
the Kazakh insurance market and the significant concentration
risk in its insurance portfolio.  Positively, the ratings reflect
the solid quality of its investment portfolio and good
capitalization both on a risk-adjusted and regulatory basis, and
its adequate reinsurance program.

Kompetenz is privately owned, as a result of a management buy-out
from Allianz SE (IFS: 'AA-'/Stable), the company's previous
owner, in Q411.  100% of the voting shares belong to Zhanar
Kalieva, executive chairperson, who had been Kompetenz CEO for
the past three years.

Kompetenz's gross written premium declined by 49% in 2011. The
key reason for this was the cancellation of a contract with Agip
(a subsidiary of Italian oil company ENI), which had formed a
substantial proportion of Kompetenz's premium in the past five
years.  Fitch understands that this decision was the result of a
change in Allianz SE's risk appetite in the region.  Premium
volumes continued to fall in H112 and, compared to H111,
decreased by 31% on a net basis.  Fitch notes that declining
business volumes could indicate difficulties with the acquisition
of new business, as well as the loss of premium reflecting the
transfer of the obligatory employer's liability insurance class
to life insurance companies.  Moreover, the retail market in
Kazakhstan where Kompetenz targets growth is highly competitive.

There is significant concentration risk in the insurance
portfolio.  As at end-Q212, premiums were concentrated with a 49%
contribution from one contract with a major oil services company.
This concentration risk is partly offset by the solid credit
quality of the reinsurer to which Kompetenz cedes a material
proportion of this risk under a facultative arrangement.

Kompetenz (known as JSC Allianz Kazakhstan at that time)
experienced negative underwriting performance in 2008 and 2009,
when the combined ratio surged to 113.5% and 154.4% respectively,
as a result of high expenses (2008: 70.4% of net premium written;
2009: 70.9%) and a high loss ratio (45.9% in 2009).  This was
largely explained by the inflexible remuneration system operated
by the company at that time, investment in distribution, and
reserve strengthening in respect of obligatory employer's
liability insurance.  Kompetenz managed to stabilize its expenses
in 2011, returning a profitable combined ratio at 77.5%.
However, Fitch believes that containing expenses and remaining
profitable throughout the planned expansion into the retail
market could prove challenging.

Kompetenz has a conservative investment strategy, with
investments in bonds accounting for 90% of total invested assets
at end-2011.  Positively, Kompetenz decreased the proportion of
equities in its portfolio to 1% at end-2011 from 7% at end-2010.
The portfolio is of a relatively high quality, when viewed from a
local perspective, with assets of sub-investment-grade issuers
accounting for only 4% of the total at end-2011.

Fitch believes that Kompetenz is well capitalized for its rating
level.  However, the regulatory solvency margin tends to be
volatile and declined to relatively low levels in Q111 and Q112.

The ratings could be upgraded if Kompetenz proves its ability to
grow the business franchise while maintaining an adequate
financial profile (i.e. combined ratio below 100%) and
capitalization (solvency margin well above 100%).

The ratings could be downgraded if Kompetenz's regulatory
solvency margin structurally weakens to below 100% triggering
regulatory intervention.  Any indication of a reduction in the
shareholder's willingness to support the company would also be
viewed negatively.

Kompetenz is a non-life insurance company, headquartered in
Almaty, Kazakhstan.  It wrote KZT3.9 billion of GWP in 2011 and
had gross assets of KZT4.0 billion at FYE11.


BANKAS SNORAS: Court Officially Declares Bank Bankrupt
------------------------------------------------------ reports that the Vilnius Regional Court has ruled
that Bankas Snoras, which was nationalized last November, is
bankrupt and will be wound up.

"The bank's bankruptcy administrator asked the court on August 6
to declare Snoras bankrupt and commence its liquidation
procedures. Judge Andzejus Maciejevskis granted this request,"
the court's spokesman Gintautas Stalnionis told BNS, according to

An appeal against the court's decision could be filed to the
Court of Appeal within seven days, Mr. Stalnionis, as cited by, added.

"This decision by the court actually means that there is no way
back and Snoras will not be resuscitated," Vytautas Plunksnis,
chairman of the board of the Lithuanian Investors' Association,
told BNS, reports.

In his opinion, relates, the court's decision should
not be challenged since the decisions on Snoras' future are being
taken by the creditors' committee, which is dominated by the
state-owned Deposit Insurance Fund.

According to, the committee of Snoras' creditors
decided on July 19, 2012, to liquidate the bank and authorized
the bank's bankruptcy administrator, Neil Cooper, to file a
respective application to court.

The report recalls that Aurelija Mazintiene, acting head of
Deposit Insurance Fund and the chairwoman of the creditors'
committee, then said that once the court took the decision on the
bank's liquidation, the realization of assets and other
bankruptcy procedures would be able to start in full scale. She
would not forecast how long the liquidation process might take.

Snoras' creditors filed a total of LTL6.523 billion (EUR1.89b) in
undisputed claims. The Deposit Insurance Fund claims a total of
LTL4.053 billion; however, the court has only approved the amount
of LTL3.799 billion, discloses.

                        About Bankas Snoras

Bankas Snoras AB is Lithuania's fifth biggest lender.  Snoras
held LTL6.05 billion in deposits and had assets of LTL8.14
billion at the end of September. It competes with Scandinavian
lenders including SEB AB, Swedbank AB (SWEDA), and Nordea AB.  It
also controls investment bank Finasta and Latvian lender Latvijas
Krajbanka AS.

As reported in the Troubled Company Reporter-Europe on Dec. 2,
2011, The Baltic Times, citing LETA/ELTA, said Vilnius District
Court has accepted the application regarding the initiation of
bankruptcy proceedings against Snoras bank.  The Bank of
Lithuania delivered application on Snoras bankruptcy on Nov. 28,

The TCR-Europe, citing Bloomberg News, reported on Nov. 28, 2011,
that Lithuania's central bank said that Snora's financial
situation is "worse than previously identified" and saving the
bank "would cost significantly more and would take longer than
the available liquidity" at Snoras.  Governor Vitas Vasiliauskas
said at a news conference on Nov. 24 that some LTL3.4 billion
(US$1.3 billion) in assets are missing, according to Bloomberg.


PBG SA: S&P Withdraws 'D' Long-Term Corporate Credit Rating
Standard & Poor's Ratings Services had withdrawn its 'D' long-
term corporate credit rating on Poland-based engineering and
construction company PBG S.A. at PBG's request. PBG is no longer
under S&P's surveillance.

"Several PBG subsidiaries are currently in insolvency proceedings
with arrangement options. PBG also filed for bankruptcy on June
4, 2012. On June 13, 2012, the Poznan District Court declared
PBG's bankruptcy aiming at an arrangement with creditors. We
understand that, at the time of withdrawal, insolvency
proceedings were still ongoing," S&P said.


HIDROELECTRICA SA: Administrator Cites 9 Reasons for Insolvency
ACTMedia News Agency reports that the bilateral contracts with
the so-called 'smart-guys,' but also the deficient management,
the collective agreement and the non-performing investments were
among the nine main reasons leading to the entrance in the
insolvency procedure of Hidroelectrica company, according to the
report of legal administrator Euro Insolv.

Other factors mentioned in the report are the prolonged draught,
the energy sales on the regulated market, the costs with the
processed water, the energy procurements from thirds and the
Hidroserv branches, the news agency relates.

"Many expected these 10 contracts with the so-called 'smart-guys'
to represent an exclusive reason for the insolvency. They are not
the only responsible, there are others," ACTMedia quotes Euro
Insolv representative Remus Borza as saying.

According to ACTMedia, Mr. Borza said the report represented a
'black book' of Hidroelectrica, a company which, however,
remained a reference company of the Romanian economy and which
would have a spectacular evolution in the future.

The losses incurred by Hidroelectrica following the disastrous
contracts signed with the 'smart guys' amounted to EUR1.1 billion
over 2006-2012, Remus Borza, as cited by ACTMedia, said.

The news agency notes that Mr. Borza has presented his report on
the causes and the context which led to insolvency at
Hidroelectrica.  The report, according to ACTMedia, has 479 pages
and was registered at Bucharest Tribunal on August 16, 2012.

As reported by the Troubled Company Reporter-Europe on June 22,
2012, Bloomberg News reported that a Romanian court approved the
insolvency of Hidroelectica as the company looks to reorganize

Hidroelectrica SA is a Romanian state-owned hydropower producer.


GAZPROMBANK: S&P Raises Counterparty Credit Ratings From 'BB+/B'
Standard & Poor's Ratings Services raised its long- and short-
term counterparty credit ratings on Gazprombank to 'BBB-/A-3'
from 'BB+/B'. The outlook is stable. At the same time, the Russia
national scale rating was raised to 'ruAAA' from 'ruAA+'.

"The upgrade reflects our view that Gazprombank's risk profile
has improved thanks to management's actions to curb the
proportion of noncore banking assets. Over recent years, we have
observed a reduction in some of Gazprombank's large equity stakes
in industrial companies, which in our view previously created
significant market risks. We also have noted an increasing
proportion of standard client-driven banking business. We see
both trends as sustainable and corresponding to Gazprombank's
strategy to enhance the stability of its business model and
predictability of its earnings. However, the nature of
Gazprombank's business model implies structurally higher market
and interest rate risks than peers', although the difference is
now less marked than in the past," S&P said.

"We have revised our assessment of Gazprombank's risk position to
'adequate' from 'moderate'. With this, we acknowledge the
structurally stronger loan-loss experience and nonperforming-loan
dynamics than the sector average; the above-sector-average
diversification of the corporate loan portfolio; and the
improving quality of the revenue base, with a decreasing share of
noncore items," S&p said.

"The ratings on Gazprombank reflect the 'bb' anchor we apply for
commercial banks operating in Russia, as well as the bank's
'adequate' business position, 'moderate' capital and earnings,
'adequate' risk position, 'average' funding, and 'adequate'
liquidity, as our criteria define these terms. The stand-alone
credit profile (SACP) is 'bb'," S&P said.

"We also consider Gazprombank to be a government-related entity
(GRE) with a 'high' likelihood of timely and sufficient
extraordinary government support. We base this view on our
criteria for GREs and on our assessment of Gazprombank's 'very
important' role for and 'strong' link with the Russian
government. Based on our methodology for GREs, the long-term
rating on Gazprombank incorporates a two-notch uplift above our
assessment of the bank's 'bb' SACP," S&P said.

"The stable outlook reflects our expectation that Gazprombank's
reduced risk profile, its good corporate franchise, and resilient
financial profile will likely allow the bank to withstand the
tougher economic environment we foresee for the world in 2012 and
2013, including in Russia," S&P said.

"We would consider a negative rating action on Gazprombank if
aggressive growth of the loan portfolio put pressure on the
current level of capitalization. If our risk-adjusted capital
ratio fell below 5%, we would revise our capital and earnings
assessment to 'weak' and lower the long-term rating on the bank.
Any departure in strategy with respect to reduction of market
risks or increasing the share of volatile trading or other
nonrecurring operations could also prompt a negative rating
action. Termination of the long-term agreement on strategic
cooperation with Gazprom, substantial changes to the strategy, or
other changes that would weaken Gazprombank's role for or link
with the government, might also lead to a negative rating
action," S&P said.

"Ratings upside is limited at this stage. It would necessitate
both a significant improvement in the bank's SACP and in the
sovereign's creditworthiness. Such concurrent improvement in our
view is unlikely in the next 12 months," S&P said.


FTPYME TDA: Fitch Affirms Rating on EUR7.7-Mil. Notes at 'BB-sf'
Fitch Ratings has affirmed FTPYME TDA CAM 2, F.T.A.'s notes, as

  -- EUR58.2 million Class 1CA(G) (ISIN ES0339758015): affirmed
     at 'AA- sf'; Outlook Negative

  -- EUR27.8 million Class 2SA (ISIN ES0339758023): affirmed at
     'Asf'; Outlook Negative

  -- EUR7.7 million Class 3SA (ISIN ES033975031): affirmed at
     'BB-sf'; Outlook Negative

Fitch has removed the class 1CA(G) and 2SA notes from Rating
Watch Negative following the transfer of the treasury account to
Barclays Bank plc ('A'/Stable/'F1').  Barclays Bank plc is an
eligible counterparty according to the transaction documentation.

The affirmation is based on the credit enhancement (CE) available
to the notes. The class 1CA(G) and 2SA notes continue to
accumulate additional CE as the transaction deleverages.

Fitch notes the credit quality of the portfolio has deteriorated
markedly in 2012.  Loans more than 90 days in arrears represent
9.2% of the portfolio balance, up from 3.6% in December 2011.

The class 1CA(G) notes' rating and Outlook is limited by the
rating of the Kingdom of Spain ('BBB'/Negative/'F2').  The
highest achievable rating for Spanish structured finance
transactions is 'AA-sf', five notches above the rating of the

The Negative Outlook for the class 2SA and 3SA notes reflects the
notes' sensitivity to a sudden spike in defaults which would
deplete the reserve fund.

Rising arrears and default levels have already started to erode
the reserve fund, which declined to EUR7.1 million from EUR8.2
million in December 2011.  Fitch expects further drawings on the
reserve fund given the sizable arrears pipeline.  The transaction
considers loans more than 12 months in arrears as defaulted.

FTPYME TDA CAM 2, F.T.A., is a static cash flow SME CLO
originated by Caja de Ahorros del Mediterraneo (CAM), now part of
Banco de Sabadell ('BB+'/Stable/'B').  At closing, the issuer
used the note proceeds to purchase a EUR750m portfolio of secured
and unsecured loans granted to Spanish small and medium
enterprises and self-employed individuals.  The transaction is
managed by Ahorro y Titulizacion, S.G.F.T., S.A.

PUERTAS NORMA: Spanish Court Commences Liquidation Process
EUWID, citing reports in the Spanish media, says liquidation
proceedings were opened at the beginning of August 2012
concerning the insolvent Spanish door manufacturer Puertas Norma.

According to EUWID, the responsible commercial court, Juzgado
Mercantil de Soria, instigated the liquidation after two takeover
offers for the company had been rejected as insufficient by the
creditors and by the court respectively.

EUWID notes that further steps in the proceedings are not
expected until September, because the commercial court is in
summer recess during the month of August.

In the meantime, EUWID relates, production at Puertas Norma was
temporarily closed down on August 10 within the scope of company
holidays until Sept. 3, 2012.

Puertas Norma is a Spain-based door and window manufacturer.

* SPAIN: SME ABS Performance Worsens Further in June 2012
The performance of Spanish asset-backed securities (ABS) backed
by loans to small- and medium-sized enterprises (SME ABS)
worsened further in June 2012, according to the latest indices
published by Moody's Investors Service.

This month indices report contains a new appendix (Appendix 6)
showing the geographic repartition of the assets in the Spanish
SME transactions. This table helps identify the region where the
concentration of loans is the most important and shows the
average concentration for all transactions in each region.
Typically, concentration mirrors the originator's region of

Overall performance was weaker than ever, with 90-360 day
delinquency rate rising to 4.2% in June 2012 from 3.6% in March
2012 and 2.4% in June 2011. Cumulative defaults also rose to
2.00% in June from 1.49% a year ago. As such, the delinquency
level has reached an all time high and the trend does not seem to
be abating.

Differences remain clear across vintages as transactions from
older vintages perform better than transactions from more recent
vintages. Vintage 2011 is the worst vintage so far, driven by the
weighting and poor performance of FTA SANTANDER EMPRESAS 8. As
such, substantial differences subsist among originators.
among the best performers at the moment, while transactions from
SANTANDER are among the worst. The proportion of real estate
borrowers in the pools remains a significant explanatory
variable, as pools with an exposure of less than 25% to the real
estate sector only suffer a 3% delinquency rate versus 6% for
pools with an exposure to the real estate sector in excess of

However, due to the repayment of a number of transactions the
Constant Prepayment Rate increased to 8.8% in June 2012 from 7.2%
in March and 5.2% in June 2011.

Moody's outlook for Spanish SME ABS collateral performance
remains negative. The Spanish economy is in recession, and is
expected to contract 1.5% in 2012, after having grown only 0.7%
in 2011. Company insolvencies will increase in the economic
recession. SME losses will rise as insolvencies increase. Real
estate prices will continue to fall in 2012 because the supply of
property still outweighs demand. In turn, falling property prices
will increase losses on SME loans secured by properties.

As of June 2012, 92 Spanish ABS SME transactions were
outstanding, with a total portfolio balance of EUR48.776 billion
decreasing from EUR53.601 billion in March 2012. No new
transactions were issued in the second quarter of 2012.

In the summary sheet new information is available in the table
showing current assumptions and the average pool balance per
vintage and per originator.

U N I T E D   K I N G D O M

ATP OIL: Says UK Unit Not Part of U.S. Bankruptcy
------------------------------------------------- reports that ATP Oil & Gas issued a news
release stating that ATP Oil & Gas (UK) Limited is not a part of
the Chapter 11 reorganization and refinancing filing, and the UK
Company will continue to operate and manage its UK operations.

                           About ATP Oil

Houston, Tex.-based ATP Oil & Gas Corporation is an international
offshore oil and gas development and production company focused
in the Gulf of Mexico, Mediterranean Sea and North Sea.

ATP Oil & Gas filed a Chapter 11 petition (Bankr. S.D. Tex. Case
No. 12-36187) on Aug. 17, 2012.  Attorneys at Mayer Brown LLP,
serve as bankruptcy counsel.  Munsch Hardt Kopf & Harr, P.C., is
the conflicts counsel.  Opportune LLP is the financial advisor
and Jefferies & Company is the investment banker.  Kurtzman
Carson Consultants LLC is the claims and notice agent.

The company disclosed US$3,638,399,000 in assets and
US$3,485,838,000 in liabilities as of March 31, 2012.  Debt
includes US$365 million on a first-lien loan, US$1.5 billion on
second-lien notes with Bank of New York Mellon Trust Co. as
agent, US$35 million on convertible notes and US$23.4 million
owing to third parties for their shares of production revenue.

The Bloomberg report disclosed that ATP reported a net loss of
US$145.1 million in the first quarter on revenue of US$146.6
million. Income from operations in the quarter was US$11.8
million.  For 2011, the net loss was US$210.5 million on revenue
of US$687.2 million.

JML DOLMAN: South Nottingham College to Help 400 Apprenticeships
----------------------------------------------------------------- reports that a college has stepped in to save
400 apprenticeships left in doubt after JML Dolman went into

JML Dolman was placed into liquidation last month.  The training
center's closure affected around 400 apprentices who were being
trained by the firm, says.

According to the report, South Nottingham College was contracting
JML to deliver the apprenticeships. relates that the college said it will step in
to run the courses and has temporarily taken over JML's former
offices at the Roma Parva building, in Waterloo Road,
Wolverhampton. notes that Mark Fedulow, project manager at
the college, said his team had so far been in touch with 340
apprentices, but had been unable to contact another 60.

Mr. Fedulow, as cited by, said apprenticeships
affected were in skills such as carpentry and plastering and
negotiations had started with a site in Bilston that could be

He said that all the app-rentices linked to the college were from
the Wolverhampton area and that the college was now considering
moving a base to the West Midlands permanently, adds

JML Doman operated a number of apprenticeships across the
Midlands, including South Nottingham College.

RAPIER NAME: CHI Saves Firm From Administration
Sara Kimberley at reports that Rapier has gone
into administration after 24 years, following client budget cuts
and a series of account losses, including RAC and Yell.

Jonathan Stead, Rapier's chief executive, is setting up a new
company with CHI & Partners Holdings, which is buying the Rapier
name, assets and goodwill, according to

The report notes that the new 50/50 joint venture will service
Rapier's remaining clients, such as Vodafone, and provide
financial investment and working capital support to ensure that
all Rapier's staff are paid.

A number of staff is being made redundant but some will transfer
to the new company, the report discloses.

The report relays that Ed Morris, Rapier's creative chief, and
John Shaw, the agency's planning partner, will not be part of the
new agency, though Shaw is expected to work with the team as an
independent brand consultant.

"The commercial environment is tough for all agencies currently.
Unfortunately we made significant investments in people and
property but subsequently suffered both from account losses and
reduced spend from existing clients. . . . Rapier is now on a
strong financial footing and we have some incredibly talented
people, a good continuing client base, and a supportive new
partner in the CHI group," the report quoted Mr. Stead as saying.

The report recalls that Rapier's first major blow came in 2008
when Virgin Media GBP41million ad account was consolidated to
RKCR/Y&R, while earlier this year Rapier lost its two last
remaining major clients RAC and Yell to BBH and Engine

Rapier was bought via a management buyout in January 1988 by
Mr. Stead, the report adds.

SHOWERLUX UK: 16 Workers Lose Jobs as Firm Ceases Operations
------------------------------------------------------------ reports that Showerlux UK has
announced that it ceased trading on August 23 making 16 staff in
its Coventry head office redundant.

Tim Corfield of administrators Griffin & King will be dealing
with creditors with a view to putting the company into
liquidation next month, the report says.

According to the report, the company said in a press statement
that "as products became available to manufacture at a cheaper
price from Asia, the Showerlux manufacturing facility ceased
operation and the company was left with a core staff to import
and sell to wholesalers and retail outlets".

"This is a sad day for the company, its staff, its customers and
its suppliers. I am sure that the Group are exploring ways and
means to provide an after sales service for our customers in the
UK," the report quotes Showerlux managing director, Bob Bowler,
as saying.

Mr. Corfield said it was too early to say what the outcome for
creditors would be, but that he would be looking for offers for
company's available assets, reports.

Showerlux UK manufactures bathroom product. The company is owned
by the Swiss Duscholux Group.

STOREY CREATIVE: Placed Into Liquidation
Lancaster Guardian reports that Storey Creative Industries Centre
(SCIC) Ltd, the company responsible for managing Lancaster's
creative industries hub, has been placed into the hands of

The report says Simon Ryder, chair of the Storey Creative, which
runs the Storey in Meeting House Lane, has told tenants that the
board had placed the company into liquidation.

The building however will remain open, and tenants, as well as
the cafe and NICE restaurant, are expected to be unaffected by
the move, according to Lancaster Guardian.

According to the report, the Storey's future has been uncertain
for weeks after the company hit the rocks financially.

The company is now in the hands of liquidators Leonard Curtis of
Church Street, Lancaster, the report notes.

VEDANTA RESOURCES: Moody's Affirms 'Ba1' Corporate Family Rating
Moody's Investors Service has affirmed Vedanta Resources plc's
corporate family rating at Ba1 and its senior unsecured rating at

The outlook for both ratings remains negative.

Ratings Rationale

Vedanta's rating reflects its earnings generation underpinned by
its acquisition of Cairn India Ltd. (CIL) in December 2011 but is
held back by the rapid deterioration in prospects for base metals
and iron ore. While capital investment can be slowed down to
compensate for weaker operating cash flow, in such circumstances
Vedanta's refinancing requirements over the next nine months have
assumed greater significance.

"Vedanta's EBITDA for the financial year ended March 2013 will
include a full twelve months of Cairn India instead of the less
than four months' of contribution made in FY12. However, given
the deterioration in metals markets, it is not inconceivable that
pre-tax profits for FY13 fail to make year on year progress,"
says Alan Greene, a Moody's VP-Senior Credit Officer.

"Early signs confirm that 58.5%-owned Cairn India is now the
bedrock of the Vedanta group, with its production rate already
increased, but with a tough operating environment for Vedanta's
zinc, iron ore, copper and aluminium businesses, reducing and
servicing Vedanta's debt will be more challenging than we
previously anticipated," continues Mr. Greene, also Moody's Lead
Analyst for Vedanta.

Moody's retains the two-notch differential between the corporate
family rating of the Group and the senior unsecured debt issued
by the Parent company. The primary driver for this remains the
inherently weak financial profile of the standalone UK-listed
entity. At the same time, the proportion of priority debt in the
subsidiaries to total debt remains uncomfortably high, bearing in
mind that Vedanta's creditors are subordinated to the minority
shareholders and not just the creditors of the operating

Nevertheless, Moody's views the restructuring underway that
merges Seas Goa and Sterlite Industries into a new Sesa-Sterlite
as potentially positive for reinforcing the flow of funds to the
parent when needed, even though structural subordination risk is
probably greater. Once the final approvals have been received and
the restructuring is completed later this year, the ratings gap
between the corporate family rating and the senior unsecured may

In addition to the Sesa-Sterlite merger, progress on the
acquisition of the Government of India's minority interest in
Hindustan Zinc Ltd., would be beneficial to the Group's structure
which currently suffers from a marked imbalance between debt-
laden and cash rich units.

There is limited upward pressure on the rating over the near-
term. However, the outlook could be stabilized if 1) metal prices
and demand find a floor near current levels; 2) CIL maintains its
strong performance; 3) Vedanta's refinancing of maturing debt
progresses smoothly; 4) free cash flow is generated resulting in
reduced debt levels and 5) the restructuring is completed.

Conversely, the ratings could come under downward pressure if 1)
CIL encounters material production difficulties; 2) the parent
remains thinly capitalized with less than expected dividends
upstreamed from the core operating subsidiaries; 3) Vedanta
undertakes further acquisitions, investments or shareholder
remuneration policies that include incremental debt; or 4) it
fails to satisfactorily execute its expansion projects in
aluminium and power.

Credit metrics that Moody's would consider for a ratings
downgrade include CFO (less dividends)/Adjusted Debt below 15%,
Adjusted Debt to EBITDA exceeding 3.5-4.0x, or EBIT interest
coverage declining to 3.5x or less on a sustained basis.

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

Headquartered in London, Vedanta Resources plc is a UK-listed
metals and mining company focusing on onshore oil production,
integrated zinc, aluminum, copper, iron ore mining and commercial
power generation. Its operations are predominantly located in
India. It is 63.19% owned by Volcan Investments Ltd.

* UK: Car Dealer Insolvencies Up 41.7% in July
James Batchelor at Car Dealer Magazine, citing figures from
Experian, reports that July saw a 41.7% increase in car dealer
insolvencies compared to July last year.

Car Dealer Magazine relates that that the firm reports the
automotive sector saw 0.14% of its population fail during July,
with 51 businesses going under.

It was one of the few sectors to see insolvencies increase when
compared to 0.11% in June 2012 and 0.10% in July 2011, according
to Car Dealer Magazine.

During July, 1,776 companies became insolvent, compared to 1,962
companies in July 2011.

According to the report, the biggest improvements came from the
UK's largest firms, over 501 employees from 0.15% last July to
0.08% this year and also smaller firms with 11 to 25 employees -
from 0.26% last July to 0.19% this year.

'Since March this year, when the insolvency rate peaked at 0.11
per cent, it has remained fairly stable -- between 0.08% and
0.09%," Car Dealer Magazine quotes Max Firth, managing director,
Experian Business Information Services, UK&I, as saying.


* EUROPE: Moody's Says Automotive Production Key to CEE Economy
Automobile production is a key industrial and economic sector in
Central and Eastern Europe (CEE), says Moody's Investors Service
in a Special Comment report published on Aug. 28. As such, the
auto industry's impact on the economic performance of CEE
countries (in this case the Czech Republic, Poland, Slovakia and
Slovenia) feeds into Moody's assessment of each nation's economic
strength, which is one of the four primary factors in the rating
agency's sovereign rating methodology.

The new report is entitled "CEE: Impact of Automotive Production
on export trends and economic performance varies".

"Dependence on the auto industry varies from country to country
based on the size, diversification and openness of their
economy," says Jaime Reusche, a Moody's Assistant Vice President
-- Analyst and author of the report. "The industry's impact on
export trends and economic performance can be very significant,
as has been the case in Slovakia, or minor, as is the case for
Poland. Concentration risk stemming from dependence on the
industry can also lead to vulnerabilities to external demand, as
in the Czech Republic and Slovenia."

In Moody's view, Poland, which is the second-largest auto
manufacturer in the region and the largest of the four economies,
is also the most diversified, relying less on industrial activity
than the other three. By contrast, the Slovakian and Slovenian
economies are the more open of the group and, together with the
Czech Republic, are more reliant on external demand.

Moody's notes that these differing levels of dependence on the
auto industry and reliance on external demand have implications
for each country's economic strength, which the rating agency
assesses at Moderate for Slovenia, High shaded Moderate for the
Czech Republic, and High for Slovakia and Poland.

With vehicle output being an important component of industrial
production in each of the four countries, changes in motor
vehicle production have, to varying degrees, affected export
trends and economic performance. The largest manufacturer is the
Czech Republic with over one million units produced each year,
while the smallest is Slovenia with just under two hundred
thousand units per year.

The auto industry has been an important source of foreign direct
investment for these countries in the past 20 years, as major
manufacturers of transport equipment have sought to take
advantage of a well-educated labour force with relatively low
wages and the advanced infrastructure base that closely links
these economies to the core of Europe.

* Fitch Says Diversifying Equity Market Listing Gaining Momentum
Fitch Ratings says that periphery corporates are looking to
benefit from diversifying equity market listings, with the aim of
further decoupling from more volatile domestic exchanges and
increasing flexibility for investors.  Recent actions to
diversify equity market access by Abengoa ('B+'/Stable) with a
likely cross listing in the US highlights this growing trend
Other corporate actions include CRH ('BBB'/Stable) moving their
primary listing to London, and OHL ('BB-'/Stable) raising funds
from listing their LATAM subsidiaries.

"Diversifying equity market listings for periphery corporates is
gaining momentum as internationally focused issuers continue to
detach themselves from domestic economies," says Anil Jhangiani,
Director in Fitch's European Corporate group.  "Funding
international diversification has typically started with foreign
debt market issuance, followed by a secondary listing once
international diversification has been well established."

Fitch believes internationally focused periphery corporates with
a recognised presence in foreign debt markets can make a leap
into tapping foreign equity investors.  However, this is likely
to be limited to those that have a strong de-linking from their
domestic markets.

Whilst a cross listing provides no additional capital, the
broadening of the investor base may act as a stepping stone for a
subsidiary IPO and associated source of cash inflow for
repatriation to the periphery parent.  There are numerous
examples of periphery corporates using this structure to aid de-

Abengoa has sizable activities in the US and a solid track record
of unlocking value from foreign equity markets.  In June 2011,
Abengoa divested the remaining shares in Telvent, a US subsidiary
listed on the NASDAQ.  Furthermore, OHL have succeeded in using
equity market proceeds to manage credit metrics with both IPOs of
its Brazilian and Mexican toll road subsidiaries, the former
recently completely divested to Abertis ('A-'/RWN).  Fitch
believes the rating impact may not always be positive.  IPO
listings of foreign subsidiaries raise concerns over structural
subordination and case-by-case analysis is required.

* Upcoming Meetings, Conferences and Seminars

Aug. 2-4, 2012
     Mid-Atlantic Bankruptcy Workshop
        Hyatt Regency Chesapeake Bay, Cambridge, Md.
           Contact: 1-703-739-0800;

November 1-3, 2012
     TMA Annual Convention
        Westin Copley Place, Boston, Mass.

Nov. 29 - Dec. 2, 2012
     Winter Leadership Conference
        JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
           Contact: 1-703-739-0800;

April 10-12, 2013
     TMA Spring Conference
        JW Marriott Chicago, Chicago, Ill.

October 3-5, 2013
     TMA Annual Convention
        Marriott Wardman Park, Washington, D.C.


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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