TCREUR_Public/120913.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

         Thursday, September 13, 2012, Vol. 13, No. 183

                            Headlines



A Z E R B A I J A N

PASHA BANK: S&P Assigns 'BB-/B' Counterparty Credit Ratings


G R E E C E

OMEGA NAVIGATION: Creditors, Junior Lenders Oppose Plan


I R E L A N D

BROOKLANDS EURO: Fitch Withdraws 'Dsf' Ratings on 3 Note Classes
TABERNA EUROPE I: S&P Lowers Rating on Class A2 Notes to 'CCC-'
* IRELAND: Bank Bailout Deal May Face Delay


N E T H E R L A N D S

CID FINANCE: Fitch Maintains 'BB-sf' Rating on Series 54 Notes
OPERA FINANCE: Fitch Withdraws 'Dsf' Ratings on Four Note Classes
WOOD STREET III: S&P Raises Rating on Class E Notes to 'CCC+'


S P A I N

AUTOVIA DE LA MANCHA: Moody's Retains 'B3' Rating on Loan
EMPRESAS HIPOTECARIO 5: S&P Cuts Rating on Class C Notes to 'D'
* SPAIN: Prime Minister Won't Accept Outside Bailout Conditions


U K R A I N E

BASIS BANK: Avakov Mulls Filing Suit Over Liquidation


U N I T E D   K I N G D O M

COLLEGE FREIGHT: Goes Into Administration
PORTSMOUTH FOOTBALL: Gets New Offer from Middle East Investors
REBAND (UK): High Court to Hear Wind Up Petition on September 24
TAURUS CMBS: Fitch Affirms 'Csf' Ratings on Two Note Classes
TRITON PLC: S&P Downgrades Rating on Class F Notes to 'BB-'

ZUTUX: Goes Into Administration on Poor Trading

* UK: May Face Closures or Bailout-Outs Under New Proposals
* UK: Moody's Says Banking System Outlook Remains Negative


X X X X X X X X

* Moody's Says Consolidation of MMFs Credit Positive
* Upcoming Meetings, Conferences and Seminars


                            *********


===================
A Z E R B A I J A N
===================


PASHA BANK: S&P Assigns 'BB-/B' Counterparty Credit Ratings
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' long-term
and 'B' short-term counterparty credit ratings to Azerbaijan-
based PASHA Bank. The outlook is stable.

"The ratings reflect the 'bb-' anchor for a commercial bank
operating in Azerbaijan, our view of the bank's 'adequate'
business position, 'strong' capital and earnings, 'moderate' risk
position, its 'below average' funding, and 'adequate' liquidity,
as our criteria define these terms. The stand-alone credit
profile (SACP) is 'b+'," S&P said.

"Under our bank criteria, we use our Banking Industry Country
Risk Assessment economic and industry risk scores to determine a
bank's anchor, the starting point in assigning an issuer credit
rating (ICR). The anchor for a commercial bank operating only in
Azerbaijan is 'bb-'. Our economic risk score for Azerbaijan is
'7' and our industry risk score is '8'," S&P said.

"The ICR is one notch higher than the SACP, reflecting our view
of the bank's 'high' systemic importance in the country and our
assessment of the Azerbaijan government as 'supportive'.
Considering PASHA Bank's ownership structure, its rapidly growing
market share, and its important role in servicing the needs of
large corporates in the country, we believe that a loss of
confidence in PASHA Bank would likely lead to a loss of
confidence in the entire national banking system, and would
prompt extraordinary support from the government," S&P said.

"The stable outlook reflects our expectation that PASHA Bank will
expand its franchise and loan book quickly in the next two years,
at least by 30% per year, while maintaining strong capitalization
and adequate liquidity buffers," S&P said.

"The possibility of a positive rating action is currently remote.
However, it could happen primarily if PASHA Bank were to
significantly diversify its funding profile and reduce
concentration on single-name deposits and related-party funding,
which we view as the main rating weaknesses for the bank," S&P
said.

"A negative rating action could occur if the rapid loan growth
were to materially worsen the bank's capitalization and trigger a
fall in the RAC ratio before adjustments to below 10%. A
significant deterioration in asset quality once the portfolio
seasons could also put pressure on the rating," S&P said.



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


OMEGA NAVIGATION: Creditors, Junior Lenders Oppose Plan
-------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the reorganization plan proposed by petroleum-tanker
owner Omega Navigation Enterprises Inc. drew objections from the
unsecured creditors' committee and junior secured lenders.

According to the report, the committee wants to find a buyer and
take the company away from the current owner.  Both groups
contend the plan violates bankruptcy law and can't be approved.
The company plan, filed in early August, would be funded in part
with a new investment of about $2.5 million by an entity related
to George Kassiotis, the chief executive officer.  In return, his
company would receive all the new stock.  Junior secured lenders
could buy one-third of the new equity if they, too, make new
contributions.

The report relates that the official creditors' committee filed
papers Sept. 11 asking the bankruptcy judge in Houston to end the
company's exclusive right to propose a plan.  The creditor panel
wants permission to talk with potential investors, provide
confidential financial information, and develop a competing plan.

The report notes that the committee finds fault with the
company's plan because no effort was made to test the market and
learn whether the current owner's new investment is large enough
to justify retaining the equity.  The committee criticized the
company for filing the plan "without any prior negotiation
whatsoever" with the committee.  A hearing to approve disclosure
materials explaining the company's plan is scheduled for
Sept. 17.

                      About Omega Navigation

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

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

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

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



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


BROOKLANDS EURO: Fitch Withdraws 'Dsf' Ratings on 3 Note Classes
----------------------------------------------------------------
Fitch Ratings has withdrawn the outstanding ratings on Brooklands
Euro Referenced Linked Noted 2001-1 Ltd as follows:

  -- Class C rated 'Dsf'; rating withdrawn
  -- Class D rated 'Dsf'; rating withdrawn
  -- Class E rated 'Dsf'; rating withdrawn

Fitch has withdrawn the ratings because all rated notes in the
capital structure have either defaulted or paid-in full.


TABERNA EUROPE I: S&P Lowers Rating on Class A2 Notes to 'CCC-'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on Taberna Europe CDO I
PLC's class A-1 and A-2 notes. "At the same time, we have
affirmed our ratings on the class B, C, D, and E notes," S&P
said.

"In March 2012, we placed on CreditWatch negative our ratings on
all of the notes in this transaction, following the application
of our collateralized debt obligation (CDO) of structured finance
(SF) criteria, which we updated on Feb. 21, 2012," S&P said

"The rating actions resolve these CreditWatch negative
placements. We have assessed the transaction's performance since
our previous review in August 2011. We have used information from
the latest trustee report, dated July 31, 2012, and note
valuation report, dated Aug. 6, 2012," S&P said.

"The downgrades reflect further credit deterioration in the
underlying pool. The proportion of defaulted assets in the pool
has increased and, consequently, the balance of collateral
available for repaying the notes has decreased, thereby eroding
available credit enhancement," S&P said.

"According to the trustee report, all interest and par coverage
ratios are currently below the levels required by the transaction
documents. Our analysis indicates that the class A-2 notes are at
risk of an interest shortfall, which would trigger an event of
default under the transaction documents. This could lead to the
acceleration or enforcement of the transaction," S&P said.

"We have lowered to 'BB+ (sf)' and 'CCC- (sf)' our ratings on the
class A-1 and A-2 notes, respectively, because of our view on
decreased credit enhancement levels, the increased likelihood of
a nonpayment of interest event of default, and the associated
market value risk if the transaction is liquidated," S&P said.

"We have affirmed our ratings on the class B, C, D, and E notes
because our analysis indicates that they are unable to withstand
our credit and cash flow stresses at any levels higher than those
of our current ratings," S&P said.

"As part of our analysis, we have tested the transaction's
capital structure against our largest obligor and industry
default tests -- two supplemental stress tests in our 2012
criteria for CDOs of pooled structured finance assets. None of
our ratings has been constrained by the test results," S&P said.

Taberna Europe CDO I is a CDO backed by a portfolio of mostly
corporate loans and bonds, with some commercial mortgage-backed
securities exposure.

RATINGS LIST

Taberna Europe CDO I PLC
EUR600 Million Floating-Rate Notes

Class                Rating
            To                       From

Ratings Lowered

A1          BB+ (sf)                 BBB+ (sf)/Watch Neg
A2          CCC- (sf)                CCC (sf)/Watch Neg

Ratings Affirmed

B           CCC- (sf)
C           CC (sf)
D           CC (sf)
E           CC (sf)


* IRELAND: Bank Bailout Deal May Face Delay
-------------------------------------------
Ann Cahill at Irish Examiner reports that Ireland could be
waiting another year to refinance the EUR62 billion it pumped
into the banks under proposals set to come from the European
Commission on Wednesday.

Details of a single supervision system for all eurozone banks
giving the ECB overarching responsibility were to be announced
yesterday, paving the way for the ESM rescue fund to directly
recapitalize banks.

As the commission sets out its proposals, Finance Minister
Michael Noonan will visit Paris, Berlin and Rome to galvanize
support for the EU fund to lend EUR62 billion to cover the costs
of the banking bailout, Irish Examiner discloses.

But the proposals would see the single supervisory mechanism
rolled out over the next year, possibly delaying out payouts from
the ESM because some other countries want the supervisor in place
first, Irish Examiner notes.



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


CID FINANCE: Fitch Maintains 'BB-sf' Rating on Series 54 Notes
--------------------------------------------------------------
Fitch Ratings has maintained CID Finance B.V. Series 54 on Rating
Watch Negative (RWN) as follows:

  -- Series 54 rated 'BB-sf'; RWN maintained

The RWN is maintained due to the rating watch status on Unicaja
Banco S.A.U. ('BBB-'/RWN/'F3'/RWN).  The notes are secured by a
covered bond issued by Unicaja (ISIN ES0458759034) that is not
rated by Fitch.  The analysis was based on Fitch's rating of
Unicaja Banco S.A.U. representing a rating floor for the covered
bond.


OPERA FINANCE: Fitch Withdraws 'Dsf' Ratings on Four Note Classes
-----------------------------------------------------------------
Fitch Ratings has withdrawn the ratings of Opera Finance (Uni-
Invest) B.V.'s note classes listed below, following the
cancellation and de-listing of the notes.

  -- EUR358.0m class A (XS0218487436) rated 'Dsf'; rating
     withdrawn

  -- EUR89.6m class B (XS0218489135) rated 'Dsf'; rating
     withdrawn

  -- EUR94.3m class C (XS0218490653) rated 'Dsf'; rating
     withdrawn

  -- EUR59.1m class D (XS0218492279) rated 'Dsf'; rating
     withdrawn

As per a notice to noteholders, published on August 28, 2012,
the issuer cancelled all of the notes on August 30, 2012.  All
obligations of the issuer in respect of any unpaid amounts owed
to any noteholder were extinguished.


WOOD STREET III: S&P Raises Rating on Class E Notes to 'CCC+'
-------------------------------------------------------------
Standard & Poor's Ratings Services took various credit rating
actions on all rated classes of notes in Wood Street CLO III B.V.

Specifically, S&P has raised its ratings on the class A-1, A-2B,
B, C, and E notes; and affirmed its ratings on the class A-2A and
D notes.

"The rating actions follow our review of the transaction's
performance. We performed a credit and cash flow analysis and
assessed the support each participant provides to the transaction
by applying our 2012 counterparty criteria. In our analysis, we
used data from the latest available trustee report dated July 17,
2012," S&P said.

"We have subjected the capital structure to a cash flow analysis
to determine the break-even default rate for each rated class of
notes. In our analysis, we used the reported portfolio balance
that we considered to be performing (EUR514,408,810), the current
weighted-average spread (3.63%), and the weighted-average
recovery rates that we considered to be appropriate. We applied
various cash flow stress scenarios, using four different default
patterns, in conjunction with different interest rate stress
scenarios for each liability rating category," S&P said.

"From our analysis, 14.15% of the performing assets are non-euro-
denominated, and are hedged under cross-currency swap agreements
with various counterparties. In our opinion, the downgrade
remedies for these cross-currency swaps do not fully comply with
our 2012 counterparty criteria. Consequently, we have considered
in our cash flow analysis scenarios where the currency swap
counterparties do not perform and where, as a result, the
transaction is exposed to changes in currency rates," S&P said.

"Our credit and cash flow analysis takes into account the
transaction's exposure to currency exchange risk. Our analysis
indicates that the credit enhancement available to the class A-1
and A-2B notes is at a level that is commensurate with higher
ratings than we previously assigned, and therefore we have raised
our ratings on these classes of notes. Our analysis also shows
that the credit enhancement available to the class A-2A notes is
commensurate with our rating on these notes, we have therefore
affirmed our rating on the class A-2A notes," S&P said.

"Based on our credit and cash flow analysis, we consider the
level of credit enhancement available to the class B, C, and E
notes to be consistent with higher ratings than we previously
assigned. We have therefore raised our ratings on these classes
of notes. The current ratings of the cross-currency swap
counterparties are sufficient to support the raised ratings on
the class B, C, and E notes," S&P said.

"The ratings on the class D and E notes are constrained by the
application of the largest obligor default test, a supplemental
stress test that we introduced in our 2009 criteria update for
corporate collateralized debt obligations (CDOs). We have
therefore affirmed our rating on the class D notes as the rating
on these notes is at the level at which it is constrained by the
largest obligor default test," S&P said.

Wood Street CLO III B.V. is a managed cash flow collateralized
loan obligation (CLO) transaction that securitizes loans to
primarily speculative-grade corporate firms. It closed in June
2006 and is managed by Alcentra Ltd.

             STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

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

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

        http://standardandpoorsdisclosure-17g7.com

RATINGS LIST

Wood Street CLO III B.V.
EUR576.5 Million Senior Secured and Deferrable Floating-Rate
Notes

Class         Rating
         To              From

Ratings Raised

A-1      AA+ (sf)        AA (sf)
A-2B     AA+ (sf)        AA (sf)
B        A+ (sf)         A- (sf)
C        BBB+ (sf)       BB+ (sf)
E        CCC+ (sf)       CCC- (sf)

Ratings Affirmed

A-2A     AA+ (sf)
D        B+ (sf)



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


AUTOVIA DE LA MANCHA: Moody's Retains 'B3' Rating on Loan
---------------------------------------------------------
Moody's Investors Service has downgraded to A3 from Aa3 the
rating on the EUR110 million loan (the "Insured Loan") due 2031
raised by Autovia de la Mancha S.A. ("Aumancha") and guaranteed
by Assured Guaranty (Europe) Ltd ("Assured Guaranty"). The rating
on the loan absent the guarantee from Assured Guaranty (the
"Underlying Loan") is unchanged at B3. Aumancha's ratings remain
on review for downgrade.

Aumancha is a special purpose company that entered into a 30-year
concession agreement with the Regional Government of Castilla-La
Mancha ("Castilla-La Mancha") in June 2003 to build, operate and
maintain a 52.3 km shadow toll road linking the cities of Toledo
and Consuegra in central Spain (the "Project").

Ratings Rationale

The Project is based in Spain and the documents governing the
Underlying Loan and the Insured Loan do so in accordance with
Spanish law. The Local Currency Country Risk Ceiling for credits
in Spain was lowered to A3 on June 26, 2012 -- the Rating
Implementation Guidance published on August 16, 2012 provides
more detail on the concepts underlying this country ceiling -- so
wholly domestic credits would normally be constrained to this
rating level. Aumancha's rating is not wholly domestic because
Assured Guaranty (Aa3, on review for downgrade) as guarantor is
not a Spanish entity, and credit support from an offshore entity
could justify a higher rating if that support can be reliably
expected to effectively mitigate the risks embedded in the
ceiling. However, for the reasons set out below, the guarantee
may not effectively mitigate these risks, so the rating is
constrained at A3.

These reasons include (1) that if the underlying loan is
redenominated into a new weaker currency but debt service
payments are then made on time and in full under the new
redenominated schedule, there may not be a trigger event to call
on the guarantee; (2) that even if the guarantee is triggered,
its terms -- principally that it is a Spanish language document
subject to the laws and courts of Madrid - make it more likely
that the guarantee also will be at high risk of redenomination,
as well as the underlying loan obligation; and (3) the terms of
the guarantee do not explicitly protect against redenomination
risk and Assured Guaranty have not given any such assurance. So
creditors may suffer a loss despite Assured Guaranty meeting its
documented obligations in full. Moody's downgrade of the rating
on the Insured Loan does not reflect the willingness or ability
of Assured Guaranty to meet its obligations under the guarantee.
Rather, it reflects the risk, most specifically in the event of a
currency redenomination, that the guarantee will not reliably and
effectively mitigate the risks embedded in the A3 ceiling.

The review for downgrade of the Insured Loan reflects the current
rating review for downgrade of the Spanish government's rating
which may further affect the country ceiling. The rating review
for downgrade of the Underlying Loan reflects the current rating
review for downgrade of Castilla-La Mancha.

What Could Change The Rating Up/Down

Given the review for downgrade, Moody's does not anticipate
upward pressure on the rating of the Underlying Loan in the short
term. However, Moody's would consider upgrading the rating of the
Underlying Loan if (1) it were to upgrade the rating of Castilla-
La Mancha; (2) there were evidence of steady receipt of payments
from Castilla-La Mancha, with no material delays in the payment
for outstanding invoices; and (3) traffic volumes were to
stabilize or improve.

Similarly, Moody's does not anticipate upward pressure on the
rating of the Insured Loan in the short term, given the review
for downgrade. Any rating upgrade would depend on whether Moody's
were to upgrade the rating of the government of Spain or raise
the country ceiling for Spain.

Conversely, Moody's could consider downgrading the rating of the
Underlying Loan in the event of (1) a downgrade of the rating of
Castilla-La Mancha; (2) a prolonged decrease in observed traffic
levels; and (3) a trend of further delays in the receipt of
payment of outstanding invoices from Castilla-La Mancha, or any
other actions taken by the region that may negatively affect the
Project's credit quality.

If Moody's were to downgrade the Spanish government's rating
further, the rating agency would likely reassess the country
ceiling at that time.

-- Spanish Country Ceiling

On June 26, 2012, Moody's lowered to A3 Spain's country ceiling
(http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC
_143384). Spain's revised country ceiling reflects the increased
risk of severe financial and economic dislocation and captures
Moody's assessment of country risks that include the risk of
systemic economic disruption, the crystallization of severe
financial stability risks and factors implying regulatory and
legal uncertainty such as the possibility of currency
redenomination. The Spanish government's ratings remain on review
for downgrade as Moody's continues to reassess these risks. The
conclusion of the sovereign rating review may lead Moody's to
further lower its country ceiling for Spain.

Principal Methodology

The principal methodology used in rating the Underlying Loan was
"Operating Risk in Privately-Financed Public Infrastructure
(PFI/PPP/P3) Projects", published in December 2007.

The country ceiling concept is described in the Rating
Implementation Guidance "Local Currency Country Risk Ceiling for
Bonds and Other Local Currency Obligations" published on
August 16, 2012.


EMPRESAS HIPOTECARIO 5: S&P Cuts Rating on Class C Notes to 'D'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'D (sf)' from 'CCC-
(sf)' and removed from CreditWatch negative its credit rating on
Empresas Hipotecario TDA CAM 5, Fondo de Titulizacion de
Activos's class C notes. "At the same time, we affirmed at 'CCC-
(sf)' and removed from CreditWatch negative our rating on the
class B notes," S&P said.

"On July 23, 2012, we lowered and placed on CreditWatch negative
our ratings on Empresas Hipotecario TDA CAM 5's class B and C
notes for performance related reasons due to the considerable
level of defaults that would affect the likelihood of repayment
of these notes upon early-amortization," S&P said.

"The class C notes experienced an interest shortfall on the
Aug. 27, 2012 payment date. We have therefore lowered to 'D (sf)'
from 'CCC- (sf)' and removed from CreditWatch negative our rating
on the class C notes," S&P said.

"The originator, Banco CAM S.A.U. (not rated), is the only
noteholder in this transaction and was considering the early
amortization of the fund when we took our rating actions in July
2012. The originator has advised that it is no longer inclined to
amortize the transaction early due to the changes in the European
Central Bank's lending eligibility requirements. We have
therefore
affirmed at 'CCC- (sf)' and removed from CreditWatch negative our
rating on the class B notes," S&P said.

Empresas Hipotecario TDA CAM 5 closed in 2007 and securitizes
secured loans granted to Spanish small and midsize enterprises
(SMEs) in their normal course of business. Banco CAM is the
originator of the transaction.

             STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

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

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

        http://standardandpoorsdisclosure-17g7.com

RATINGS LIST

Class       Rating                  Rating
            To                      From

Empresas Hipotecario TDA CAM 5, Fondo de Titulizacion de Activos
EUR1.431 Billion Floating-Rate Notes

Rating Lowered and Removed From CreditWatch Negative

C           D (sf)                  CCC- (sf)/Watch Neg

Rating Affirmed and Removed From CreditWatch Negative

B           CCC- (sf)                CCC- (sf)/Watch Neg


* SPAIN: Prime Minister Won't Accept Outside Bailout Conditions
---------------------------------------------------------------
BBC News reports that Spain's Prime Minister Mariano Rajoy has
said he will not accept outside conditions over a possible
bailout.

Mr. Rajoy made the pledge in his first television interview since
taking office, BBC notes.  But he said no decision to request a
bailout had been taken, according to BBC.

Last week, the president of the European Central Bank (ECB)
unveiled plans to buy bonds from indebted countries -- under
bailout conditions, BBC recounts.

Mario Draghi, as cited by BBC, said the ECB would provide a
"fully effective backstop".

The aim of the program was to cut the borrowing costs of debt-
burdened eurozone members by buying their bonds, BBC says.

Under Mr. Draghi's plan, the ECB would agree to buy a potentially
unlimited amount of bonds of debt-stricken eurozone members on
the condition that these countries made a formal request for
bailout funds and stuck to the terms of any deal, BBC discloses.

According to BBC, Mr. Draghi said the ECB would engage in
outright monetary transactions, or OMTs, to address "severe
distortions" in government bond markets based on "unfounded
fears".

He said that OMTs will be carried out only in conjunction with
European Financial Stability Facility or European Stability
Mechanism programs, BBC notes.

In other words, countries will still have to request a bailout
before the OMTs are triggered, BBC states.



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


BASIS BANK: Avakov Mulls Filing Suit Over Liquidation
-----------------------------------------------------
Interfax-Ukraine reports that Arsen Avakov, the head of the
election campaign of the Batkivschyna United Opposition and the
ex-head of Kharkiv Regional State Administration, said he plans
to file a number of lawsuits at European courts against the
actions of Kharkiv officials involved in the liquidation of Basis
Bank.

"I will help them. I will file a number of lawsuits against their
actions. I will sue officials for violations of the law in the
destruction of Basis Bank . . . There will be European, rather
than puppet Ukrainian judges," the report quotes Mr. Avakov as
saying in an interview with the Delo newspaper published on
Friday, while commenting on a statement by Kharkiv Regional
Council that it will send to the Italian side documents
confirming the involvement of Basis bankers in economic crimes.

"A court in Italy will not take such a decision," Mr. Avakov said
when asked whether the statement by Kharkiv Regional Council
could influence the decision of the Italian side on his
extradition to Ukraine.

Interfax-Ukraine relates that Mr. Avakov also said that he
currently had nothing to do with Basis Bank.

"I created this bank about 20 years ago. And, of course, it hurts
me what Regions Party politicians are doing with it . . . I have
already left the list of the stockholders of Basis Bank, and now
I have no relation to it. I'm just an individual with respect to
the bank," he said, adding that "all businessmen that are
associated with me are coming under pressure," the report quotes
Mr. Avakov as saying.

Basis Bank was small bank based in Kharkiv, Ukraine.
Ukrainian News reported last month that the investigation
division at the Kharkiv Regional Police Department launched a
criminal case against officials of the Basis bank and several
individuals on August 22 on suspicion of transferring funds from
the bank into an offshore bank during the period of 2010-2011.

The criminal case was filed under Section 5 of Article 191 of the
Criminal Code (misappropriation, embezzlement, or takeover of
property through abuse of office, if perpetrated on a large scale
or by an organized group), according to Ukrainian News.



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


COLLEGE FREIGHT: Goes Into Administration
------------------------------------------
Clare Weir at Belfast Telegraph reports that administrators have
been appointed to College Freight Services NI Ltd., which ceased
trading with the loss of almost 400 jobs last month.

College Freight, part of the Target Express group of companies,
faced a "winding-up petition" in Belfast High Court last Thursday
brought by tax commissioners at HM Revenue and Customs over an
unpaid tax bill, Belfast Telegraph relates.

However, before that could happen, Revenue Commissioners in the
Republic froze Target Express's bank accounts, forcing it to
close 10 depots north and south of the border, Belfast Telegraph
notes.

On September 3, Matthew Dunham, David Riley and Stephen Tennant
of Grant Thornton were appointed as administrators to College
Freight, Belfast Telegraph discloses.

College Freight is a Co Fermanagh transport firm.


PORTSMOUTH FOOTBALL: Gets New Offer from Middle East Investors
--------------------------------------------------------------
PA Sport reports that a Middle East consortium have submitted a
bid to buy Portsmouth, the club's administrators have confirmed.

PA Sport notes that Pompey have been in administration since
February and remain threatened with liquidation unless a buyer
can be found.

According to the report, fans' group the Portsmouth Supporters'
Trust and former owner Balram Chainrai also want to take over at
Fratton Park, with both parties having until the end of this week
to finalise their bids.

But administrators PKF are now considering an offer from the new
consortium, the report relays.

A PKF spokesman told The News: "We can confirm we have had a
preliminary offer from a Middle East group and we are currently
seeking clarification of funding before we can take it any
further."

Meanwhile, BBC Sport reports that former Portsmouth owner
Sulaiman Al Fahim has confirmed he is part of a Middle East
consortium hoping to buy the financially-troubled club.

Al Fahim had a short-lived spell as owner of Portsmouth in 2009
before selling to Ali Al Faraj and has used his Twitter account
to confirm his bid, BBC Sport relates.

BBC Sport, citing a report by the Dubai-based magazine Arabian
Business, says the potential Middle East investors had put
US$20.4 million (GBP12.77 million) into an account held by Dubai
Bank on August 30.

BBC Sport says London-based accountancy firm Born & Co are
believed to be representing the Middle East consortium and Al-
Fahim added that he hoped to deposit the money into a UK bank to
show proof of funds.

                    About Portsmouth Football

Portsmouth Football Club Ltd. -- http://www.portsmouthfc.co.uk/
-- operated Portsmouth FC, a professional soccer team that plays
in the English Premier League.  Established in 1898, the club
boasted two FA Cups, its last in 2008, and two first division
championships.  Portsmouth FC's home ground is at Fratton Park;
the football team is known to supporters as Pompey.  Dubai
businessman Sulaiman Al-Fahim purchased the club from Alexandre
Gaydamak in 2009.  A French businessman of Russian decent,
Gaydamak had controlled Portsmouth Football Club since 2006.

In 2010, the club entered administration as a Premiership club
with UHY Hacker Young partners Andrew Andronikou, Peter Kubik and
Michael Kiely appointed administrators, Accountancy Age noted.
In March 2011, Geoff Carton-Kelly and David Hudson, partners at
Baker Tilly, were appointed liquidators, Accountancy Age related.


REBAND (UK): High Court to Hear Wind Up Petition on September 24
----------------------------------------------------------------
Huddersfield Daily Examiner reports that government officials
plan to shut down a controversial Huddersfield firm, Reband (UK)
Ltd.

According to the report, the government officials have issued
petitions to wind up Reband -- the firm accused of failing to
honour promises to secure council tax cuts for thousands of
people.

The report relates that the firm has already been the subject of
a long investigation by trading standards officers.

Jack Darrell Henry, the man who runs the company, has also been
convicted by a criminal court of breaching trading rules, the
report relays.

The report says the Insolvency Service -- part of the Department
for Trade and Industry -- is taking court action against the
company.

A hearing to wind up the company will be heard in the High Court
in Manchester on September 24, the report adds.

Reband (UK) Ltd is an independent council tax review company
based in Huddersfield.


TAURUS CMBS: Fitch Affirms 'Csf' Ratings on Two Note Classes
------------------------------------------------------------
Fitch Ratings has placed Taurus CMBS (UK) 2006-2 plc's class A
and B on Rating Watch Negative (RWN) notes whilst simultaneously
affirming classes C and D, as follows:

  -- GBP182.2m class A due April 2024 (XS0271522103) rated
     'AAAsf' placed on RWN

  -- GBP23.1m class B due April 2024 (XS0271523259) rated 'BBBsf'
     placed on RWN

  -- GBP20.7m class C due April 2024(XS0271523846) affirmed at
     'Csf'; Recovery Estimate 'RE30%' assigned

  -- GBP7.0m class D due April 2024 (XS0271524653) affirmed at
     'Csf'; Recovery Estimate 'RE0%' assigned

The RWN assigned to the class A and B notes is due to the
uncertainty surrounding the income figures in the Mapeley STEPS
loan, which currently accounts for GBP155.4 million, or two-
thirds of outstanding principal balance.  The loan is scheduled
to mature in April 2021, but if it does not redeem in September
2013 certain loan modifications are enacted.  These include an
additional 150bp margin step-up which increases the all-in
interest rate to 6.75%, and a covenant where all excess cash is
swept.

The agency believes the effectiveness of the cashsweep is
hindered by Mapeley's (the sponsor of the borrowing entity)
ability to release cash to operations outside the securitization
before EBITDAR is calculated, whilst the restrictions imposed
after the step-up date only prevent payments to Mapeley
shareholders.  Fitch has requested further information from the
servicer, Capita Asset Services, in order to clarify this
mechanism and be able to better assess future cash-flows.  The
agency expects to resolve the RWN within 90 days, pending receipt
of the information.

The Times Square loan is backed by the shopping centre of the
same name, and it has been in special servicing since March 2009.
The sale of the property for GBP15.75 million has been agreed in
principle, but it is conditional upon a 25,000 sq ft pre-let
currently being finalized.  In its analysis, Fitch has assumed
recoveries of GBP15.75 million (equating to a loss of GBP21.3
million) and assumed that this would trigger a switch in the
principal waterfall to sequential from the current modified pro
rata.

Fitch does not expect the securitized GBP10.7 million Dundee loan
to redeem at its scheduled maturity date in September 2012.  The
uncertainty surrounding the tenant, NCR's ongoing plans for the
Dundee site increases the likelihood of a lease break in 2016.
Fitch believes much of the existing market value is captured in
the current lease, and the premises may require a long marketing
period if finding a new occupier becomes necessary.

Fitch expects the securitized GBP29.8 million Iron Mountain loan
to repay in full at its maturity in July 2014.  The long lease
until 2031 with 3% annual rental uplifts should offset any
balloon risk.


TRITON PLC: S&P Downgrades Rating on Class F Notes to 'BB-'
-----------------------------------------------------------
Standard & Poor's Ratings Services took various credit rating
actions in Triton (European Loan Conduit No. 26) PLC.

Specifically, S&P has:

-- Lowered and removed from CreditWatch its ratings on the class
    B, C, D, E, and F notes; and

-- Affirmed its ratings on the class A1 and A2 notes.

"On April 20, 2012, we placed on CreditWatch developing our
ratings on the class B to F notes due to the potential sale of
the property backing the Devonshire Square loan. The CreditWatch
placement reflected our view that the repayment of this loan
could change the pool's credit characteristics and could have
resulted in an upgrade or downgrade of our ratings on these
classes of notes depending on loan repayment and sequential
application of proceeds," S&P said.

"The rating actions follow the repayment of the Devonshire Square
loan on the July 2012 interest payment date as a result of the
sale of the property backing that loan," S&P said.

"The notes did not amortize sequentially as anticipated, but
rather the notes amortized pro rata. Whereas in a sequential pay
amortization, most classes of notes would benefit from increased
credit support, the modified pro rata repayments affect each
class differently. After the application of the payments, credit
enhancement levels for the class B to F notes have decreased. We
note that proceeds were also applied to the unrated class G and H
notes, which rank junior in the capital structure," S&P said.

Triton (European Loan Conduit No. 26) closed in April 2007. The
collateral comprises U.K.-based mixed real estate loans that were
originated by Morgan Stanley Bank International Ltd. At cutoff,
the loan pool consisted of four loans, ranging from GBP27 million
to GBP288 million. Two loans remain , after the largest loan in
the original pool (the Devonshire Square Estate loan) was
repaid.

"Based on our assessment of the credit characteristics of the two
loans remaining in the pool (see 'Various Rating Actions On
Triton (European Loan Conduit No. 26)'s U.K. CMBS Notes'), and
the updated capital structure following the repayment of the
Devonshire Square loan, we consider that credit enhancement
levels available to the class B to F notes are now commensurate
with lower ratings than previously assigned. Therefore, we have
lowered and removed from CreditWatch developing our ratings on
the class B to F notes. We have affirmed our ratings on the class
A1 and A2 notes, to reflect our view that credit enhancement
levels remain commensurate with our current ratings," S&P said.

            POTENTIAL EFFECTS OF PROPOSED CRITERIA CHANGES

"We have taken the rating actions based on our criteria for
rating European commercial mortgage-backed securities (CMBS).
However, these criteria are under review," S&P said.

"As highlighted in the Nov. 8 Advance Notice Of Proposed Criteria
Change, we expect to publish a request for comment (RFC)
outlining our proposed criteria changes for rating European CMBS
transactions," S&P said.

"On June 4, we published a request for comment (RFC) outlining
our proposed criteria changes for CMBS Global Property Evaluation
Methodology. The proposed criteria do not significantly change
Standard & Poor's longstanding approach to deriving property net
cash flow (S&P NCF) and value (S&P Value). We therefore
anticipate very limited impact for European outstanding ratings
when the updated CMBS Global Property Evaluation Methodology
criteria are finalized," S&P said.

"However, because of its global scope, the proposed CMBS Global
Property Evaluation Methodology does not include certain market-
specific adjustments. An application of these criteria to
European transactions will therefore be published when we release
our updated rating criteria," S&P said.

"Until such time that we adopt new criteria for rating European
CMBS, we will continue to rate and surveil these transactions
using our existing criteria," S&P said.

             STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

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

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

        http://standardandpoorsdisclosure-17g7.com

RATINGS LIST
Class          Rating
       To           From

Triton (European Loan Conduit No. 26) PLC
GBP556.65 Million, US$87.309 Million Commercial Mortgage-Backed
Floating-Rate Notes

Ratings Lowered and Removed From CreditWatch Developing

B      BBB (sf)     A (sf)/Watch Dev
C      BB+ (sf)     BBB (sf)/Watch Dev
D      BB (sf)      BBB- (sf)/Watch Dev
E      BB (sf)      BB+ (sf)/Watch Dev
F      BB- (sf)     BB (sf)/Watch Dev

Ratings Affirmed

A1      A (sf)      A (sf)
A2      A (sf)      A (sf)


ZUTUX: Goes Into Administration on Poor Trading
-----------------------------------------------
Roger Butterworth at Manchester Evening News reports that Zutux,
trading as Johnson & Johnson, has called in administrators,
blaming the economic downturn for its recent poor trading.

The majority of the firm's 45 staff have been made redundant, but
administrators are seeking a buyer for the business, according to
Manchester Evening News.

Sarah Bell and Philip Duffy of Duff & Phelps have been appointed
joint administrators.

"Discretionary spending has suffered as a result of the ongoing
economic troubles and regrettably the company was unable to
sustain its overheads from the turnover the business generated
over recent months," the report quoted Mr. Duffy as saying.

The report notes that the slide into administration happened
despite Zutux receiving a GBP950, 000 cash injection to develop
new products in April this year.  The report relates that Zutux
received the investment from the North West Fund for Development
Capital, a specialist funds available for SMEs based in the
North West.

It had previously bought Trafford Park furniture manufacturer
Johnson & Johnson out of administration in February 2011, the
report recalls.

Zutux is a furniture company.


* UK: May Face Closures or Bailout-Outs Under New Proposals
-----------------------------------------------------------
Bruno Waterfield at The Telegraph reports that banks in London
could be shut down or forced into taxpayer-funded bail-outs
against the wishes of the British authorities under controversial
"banking union" proposals from Brussels.

According to the Telegraph, a panel of European officials would
be given sweeping new powers to police the financial sector
across the continent but also in the City of London.

They would be given "full decision making powers" to impose EU
law and to arbitrate disputes between Britain and the eurozone
over the risks posed by British banks, the Telegraph says, citing
the proposals being tabled on Wednesday at the European
Commission.  Decisions taken by the powerful body would be
automatically binding unless Britain was able to win the unlikely
backing of a majority and overturn them, the Telegraph notes.

Rulings by the panel could create huge costs for the British
government and banks if they were ordered to bail out a
struggling institution, contribute to cross-border bail-out
funds, or allow the EU to rule over breaches of European law, the
Telegraph states.


* UK: Moody's Says Banking System Outlook Remains Negative
----------------------------------------------------------
The outlook for the UK banking system remains negative, says
Moody's Investors Service in a new Banking System Outlook
published on Sept. 11. The key drivers of the negative outlook
are (1) the UK's uncertain economic prospects; (2) downside risks
for asset-quality; and (3) pressure on profitability due to net
interest margin pressure, weak credit growth, and higher
regulatory and compliance costs.

The new report is entitled "Banking System Outlook: United
Kingdom".

"The continued negative outlook for the UK banking sector is
driven by the UK's uncertain economic prospects, pressure on
profitability and downside risks for asset-quality," says
Elisabeth Rudman, a Moody's Senior Vice President. "These factors
are partially offset by strengthened capital ratios, strong
business franchises that are capable of generating strong
underlying pre-provision earnings, and the banks' progress in
improving liquidity and reducing reliance on short-term funding,"
says Ms. Rudman.

In addition, Moody's continued view is that the probability of
government support for systemically important institutions will
decline over the medium-term as authorities move towards
implementing new recovery and resolution frameworks. This is
reflected in a negative outlook on the senior debt and deposit
ratings of the largest banks, which currently all incorporate
very high assumptions of government support. However, Moody's has
a stable outlook on the standalone financial strength ratings of
most banks and building societies, reflecting the fact that their
standalone ratings incorporate to a certain extent the risks
highlighted above.

Moody's says that the weak economic growth prospects over the 12-
18 month outlook period imply that the operating environment for
UK banks will remain challenging. As previously noted in August,
Moody's expects UK economic growth to be marginally positive,
although Moody's central growth projection ranges from between -
0.5% and 0.5% in 2012, with the macro-economic downside risks
outweighing any positive factors.

Moody's expects some further reductions in impairment charges
over the next 12-18 months, as banks move past the worst of the
asset quality problems that emerged over 2009 -- 10, although the
risks remain skewed to the downside due to the weak economic
conditions. The asset quality of banks' domestic mortgage lending
portfolios are likely to remain supported over the outlook period
by very low interest rates, relatively stable property prices and
fairly steady unemployment levels.

However, Moody's says that areas of downside risk for banks are
their exposures to the UK commercial real-estate market and
retail and corporate loan exposures in the European peripheral
countries. Despite efforts to reduce exposures, some banks still
have significant concentrations in commercial real estate and in
Moody's view, there is a risk of further defaults and higher
provisions in this sector. In addition, although UK banks have
limited exposure to sovereign debt from peripheral European
countries, their other exposures (predominantly lower risk
residential mortgages in Spain and Italy, and higher risk -- but
well provisioned -- exposures in Ireland) could still be a source
of further impairment charges. However, Moody's scenario analysis
suggests that UK banks have enough capital to absorb potential
losses both under its central stress scenario and also under its
adverse stress scenario.

Despite lower impairment charges, profitability is likely to
remain under pressure over 2012-13 due to net interest margin
pressures, the adverse growth environment, higher regulatory and
compliance costs and subdued capital market activities. In
particular, the larger banks have suffered from ongoing charges
in relation to a variety of regulatory and compliance failures
and given the tough regulatory environment Moody's expects such
costs to remain high. However, UK banks have implemented cost-
cutting strategies that Moody's believes will allow them to
offset some of the challenges they face and broadly maintain
their efficiency metrics over the outlook period.



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


* Moody's Says Consolidation of MMFs Credit Positive
----------------------------------------------------
The consequences of the 2008 global financial crisis and the
regulatory changes that have followed have increased the pace of
money market fund (MMF) consolidation particularly in Europe over
recent years, says Moody's Investors Service in a new Special
Comment published on Sept. 11. Overall, the rating agency
believes that the consolidation trend is credit positive for MMF
investors and fund or asset managers, although there are some
credit negatives associated with MMF consolidation.

The new report is entitled "Money Market Funds: Consolidation
Credit Positive Overall for Managers and Investors".

The challenges that have boosted the pace of MMF consolidation in
Europe (and more generally in the US over the last 10 years)
include portfolio credit deterioration of sovereign, corporate,
public finance and structured finance issuers, increased fund
redemptions, liquidity challenges, low yields, and contracting
supply of eligible securities.

The credit-positive effects of consolidation stem from the fact
that MMF acquisitions or mergers typically result in (i) the
newly merged fund's lower expense ratio (costs are spread over a
larger asset base); (ii) expansion of distribution channels and
client relationships; (iii) increased assets under management
(AUM) and improved economies of scale; and (iv) potentially more
resources in terms of credit research.

Moody's believes that the pace of MMF consolidation will
continue, due to ongoing mergers and acquisitions of asset
managers, economies of scale considerations, historically low
interest rates pressuring fees, tightening regulatory regimes,
product line rationalization and resulting business exits for
some managers.

Despite the credit-positive aspects, Moody's believes that there
are risks associated with MMF consolidation. Some of these
include (i) revised MMF investment strategies resulting from a
merger may not meet the investors' original risk profiles; (ii)
any merger is subject to integration risk due to the forced
combination of two or more different strategies, firm cultures
and management styles; and (iii) management distraction from the
merger could negatively affect the merged fund.


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

November 1-3, 2012
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Annual Convention
        Westin Copley Place, Boston, Mass.
           Contact: http://www.turnaround.org/

Nov. 29 - Dec. 2, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Winter Leadership Conference
        JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
           Contact: 1-703-739-0800; http://www.abiworld.org/

April 10-12, 2013
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Spring Conference
        JW Marriott Chicago, Chicago, Ill.
           Contact: http://www.turnaround.org/

October 3-5, 2013
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Annual Convention
        Marriott Wardman Park, Washington, D.C.
           Contact: http://www.turnaround.org/


                            *********

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

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

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

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


                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *