/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/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 * * *