TCREUR_Public/120919.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

         Wednesday, September 19, 2012, Vol. 13, No. 187



MAGYAR TELECOM: Moody's Cuts Corp. Family Rating to 'Caa1'


ANGLO IRISH: Ireland Favors Use of Bonds to Refinance Bailout
CLERYS: In Receivership, Staff Unaffected
IRISH BLOOD: Blood Service Pension Fund Insolvent, CEO Says


CNH EQUIPMENT: Moody's Assigns Provisional Ratings
ENTERPRISE NETWORKS: Moody's Cuts CFR/PDR to 'Caa1'; Outlook Neg.


HYDROBUDOWA POLSKA: Court Declares Bankruptcy by Liquidation


* ROMANIA: Corporate Insolvencies Down 1.43% in Jan-Aug 2012


* CITY OF DNIPROPETROVSK: S&P Affirms 'B' Issuer Credit Rating

U N I T E D   K I N G D O M

BARNISH HOMES: Anglo to Recover GBP1.5-Mil. of GBP9.5-Mil. Owed
JJB SPORTS: In the Brink of Administration, Sells Stores
JJB SPORTS: JD Sports Drops Out of Bidding Race
RANGERS FOOTBALL: Proceedings in Ticketus Dispute Set to Begin
THAMES WATER: Moody's Issues Summary Credit Opinion

TIUTA INTERNATIONAL: Investors Opt to Wind Up Series 1 Fund
XCHANGETEAM: Set to Go Into Liquidation


* Moody's Says Sluggish EU Demand Constrains Global Auto Growth
* S&P Takes Various Rating Actions on 21 European CDO Tranches



MAGYAR TELECOM: Moody's Cuts Corp. Family Rating to 'Caa1'
Moody's Investors Service has downgraded the corporate family
rating (CFR) and probability of default rating (PDR) of Magyar
Telecom B.V. ("Invitel") to Caa1 from B3. Moody's also downgraded
the rating on the senior secured notes due 2016 to Caa1 from B3.
The outlook remains negative.

Ratings Rationale

The downgrade of Invitel's ratings reflects (i) the accelerating
decline in voice revenues, Invitel's highest margin product, to
the benefit of mobile substitution and triple-play cable
operators which continues to put pressure on Invitel's EBITDA
margins (ii) weaker than expected growth in the internet segment
which fails to generate enough positive momentum to counter the
drop in ARPU (iii) an uncertain macro-economic environment (iv)
aggressive policy-making exemplified by the previous crisis tax
levied on telecom operators and the recently announced telecom
tax which will be fully borne by the company (iv) expectations
that continued negative free cash-flow might leave the company
with a weak liquidity profile which makes the sustainability of
the current capital structure uncertain in the medium-term.

Invitel's Caa1 CFR is supported by the company's (i) leading
position as the second-largest fixed-line telecommunications
service provider in Hungary; (ii) sound profitability levels with
EBITDA margin between 40%-45%; (iii) long dated maturity profile
as the company has no scheduled debt repayment before 2016.

The downgrade mainly captures the continuing weak profile of
Invitel's liquidity profile with the company fully reliant on
current cash positions to absorb its negative free cash flow. In
addition, capex spending, although somewhat discretionary, is
needed to upgrade networks and/or maintain market position in
certain regions and cannot be sustainably halted. At the current
pace of cash-burning, Moody's believes the company could be left
with minimal liquidity by the end of 2013. The current capital
structure hence appears untenable in its current state absent any
financial shareholder support, which, until now, has not been

The downgrade also reflects Invitel's performance in the first
half of 2012 which shows no halting of the declining trends
observed in voice revenues with this segment recording a 22% drop
in residential and 7% in corporate revenues (both in constant
currency terms) in H1 2012 vs. H1 2011. In addition to fixed to
mobile substitution and the bundled telephone offers from cable
operators, the increasingly tough competitive environment has
also driven prices down as clients look for best-value
alternatives in a tough domestic economic climate.

In addition, the Hungarian Forint (Invitel's main operating
currency), which declined to a record low at the end of 2011, has
continued to be volatile in the first half of 2012 and future
currency movements remain largely unpredictable. This is
compounded by an aggressive strategy from the government to
impose taxes on the telecommunication industry. First, since
2010, through a three year "crisis-tax" on the operators which
cost Invitel EUR10.9million in 2011 and now through a "Telecom
Tax" based on end-user traffic. Although this is in essence a
consumer tax, the company has decided not to pass on the
increased costs as it fears the consequences on churn would
outweigh the margin benefits.

The negative outlook reflects Moody's views that (i) the current
capital structure is under pressure given the lack of long term
liquidity solution and the lacklustre performance expectations
(ii) the competitive and macro-economic landscapes will continue
to put pressure on Invitel's end-customers and hence limit a
potential recovery (iii) the cash-flow profile of the issuer
will, eventually, be constrained by the required continued
investment in its network infrastructure.

What Could Change the Rating -- UP

Whilst Invitel's ratings are currently constrained by the
company's limited financial flexibility, its rating outlook could
stabilise following (i) tangible signs of a stabilizing market
environment; (ii) meaningful growth in Internet and broadband
activity; (iii) sustained free cash flow generation; and/or (iv)
substantial cash injection from the sponsor to stabilize
Invitel's long term liquidity profile.

What Could Change the Rating -- DOWN

Negative ratings pressure would arise following (i) no apparent
resolution over the currently weak liquidity profile of the
company or explicit support from the sponsor; (ii) further
reduction in the company's EBITDA and free cash flow generation.

The principal methodology used in rating Magyar Telecom B.V. was
the Global Telecommunications Industry Methodology published in
December 2010. Other methodologies used include Loss Given
Default for Speculative-Grade Non-Financial Companies in the
U.S., Canada and EMEA published in June 2009.


ANGLO IRISH: Ireland Favors Use of Bonds to Refinance Bailout
Joe Brennan at Bloomberg News reports that sources said Irish
authorities now favor using government bonds to refinance the
rescue of the former Anglo Irish Bank, easing funding pressure on
the State over the next decade.

According to Bloomberg, one source said that under a plan being
weighed up, the Government would inject as much as EUR40 billion
of notes of as long as 40 years in duration into the bank.  These
may be used as collateral for ECB funds, replacing EUR30 billion
of promissory notes used for the bank's 2010 bailout.

The State issued Anglo with the promissory notes, or IOUs, two
years ago to stave off the bank's collapse, Bloomberg recounts.
Now renamed Irish Bank Resolution Corp, the lender takes the
notes and exchanges them with the Central Bank for emergency
liquidity assistance, Bloomberg notes.

This assistance amounted to EUR41.7 billion at the end of June,
with the notes making up the bulk of the collateral, Bloomberg
discloses.  The notes were included in Government debt in 2010,
helping to triple the State's borrowings over the last five
years, Bloomberg states.

The Government is to pay IBRC about EUR3 billion a year for at
least the next decade to pay off the debt, Bloomberg discloses.
IBRC in turn uses that money to repay the Central Bank, Bloomberg

According to Bloomberg, under the plan being studied, the State
would issue a long-term bond to the lender.

Anglo Irish Bank was an Irish bank headquartered in Dublin from
1964 to 2011.  It went into wind-down mode after nationalization
in 2009.  In July 2011, Anglo Irish merged with the Irish
Nationwide Building Society, with the new company being named the
Irish Bank Resolution Corporation.

CLERYS: In Receivership, Staff Unaffected
------------------------------------------ reports that Clerys has been place into
receivership.  The firm will operate business as usual with the
147 staff unaffected by the move, according to the report.

Receivers Paul McCann -- -- and Michael
McAteer -- -- of Grant Thornton said
they were in advanced talks to secure the store's future with a
potential buyer with strong retail credentials,

"The joint receivers hope to be in a position to make an
announcement regarding new ownership shortly," Grant Thornton
said in a statement obtained by the news agency.

The owners and operators of the landmark department store were
Clery & Co (1941) plc, Denis Guiney Limited and Yterrbium
Limited. shares that two stores in the group, Guiney of
Talbot Street and Denis Guiney Furnishings, which operates two
Clerys Home Furnishing stores in Leopardstown and Naas, are to be

Clerys opened in 1853 as one of the world's first purpose-built
department stores.  It was taken over by the Guiney family in
1941 but has been struggling in recent years with severely
depressed consumer spending in Ireland and the need to
restructure debts.

IRISH BLOOD: Blood Service Pension Fund Insolvent, CEO Says
Catherine Shanahan at The Irish Examiner reports that the Irish
Blood Transfusion Service (IBTS) has a EUR35 million hole in its
pension pot, up from EUR24 million at the end of 2010.

The report says the figure was confirmed by chief executive
Andrew Kelly last week after publication of the state-sponsored
body's annual report and in advance of publishing its annual

According to the report, Mr. Kelly said the pension fund was
"currently insolvent", but the IBTS was in talks with the
Department of Health in an attempt to resolve the issue.

"Obviously, we have to resolve the funding issues.  We can't
carry on like this.  The implications of winding up the scheme
are too great, clearly this is not on the horizon," the report
quotes Mr. Kelly as saying.

The Irish Examiner relates that Mr. Kelly said discussions with
the department were "at a sensitive stage".

About 950 individuals, including both current and former
employees, are members of the pension scheme, the report notes.
Of these, about 600 are active members while the remainder is
comprised of both pensioners and former employees who left to
work elsewhere but chose to defer their entitlements under the
scheme until retirement age.


CNH EQUIPMENT: Moody's Assigns Provisional Ratings
Moody's Investors Service has assigned provisional ratings to the
notes to be issued by CNH Equipment Trust 2012-C (CNH 2012-C),
sponsored by CNH Capital America LLC (CNH), an affiliate of CNH
Global N.V. (Ba2, stable). The transaction is a securitization of
US retail installment contracts and loans backed primarily by new
and used agricultural equipment.

The complete rating actions are as follows:

Issuer: CNH Equipment Trust 2012-C

$160,100,000 Class A-1 Notes, rated (P)Prime-1 (sf)

$240,000,000 Class A-2 Notes, rated (P)Aaa (sf)

$240,000,000 Class A-3 Notes, rated (P)Aaa (sf)

$95,125,000 Class A-4 Notes, rated (P)Aaa (sf)

$16,923,000 Class B Notes, rated (P)A2 (sf)

Ratings Rationale

Collateral for the transaction, originated by CNH and serviced by
affiliate New Holland Credit Company, LLC, consists of retail
installment sale contracts and retail installment loans secured
by agricultural (91.98%) and construction (8.02%) equipment, both
new (52.53%) and used (47.47%). The ratings are based on an
analysis of the credit quality of the collateral, the historical
performance of similar collateral originated by the sponsor, the
servicing ability of New Holland Credit Company, LLC, and the
level of credit enhancement available under the proposed capital

Moody's median cumulative net loss expectation is 0.65% and the
Volatility Proxy Aaa Level is 6.50% for the CNH 2012-C pool. The
expected loss is primarily based on the observed performance for
the sponsor's managed portfolio and the performance of prior
securitizations that have similar pool characteristics to the CNH
2012-C pool. The expected loss is also based on an analysis of
the historical performance of static pools of quarterly
originations from the sponsor, stratified along certain key
credit metrics. Consideration is also given for the differences
between the economic conditions underlying observed historical
performance and Moody's expectation of future economic
conditions. The 0.65% expected loss for the CNH 2012-C pool is
lower than the expected loss of 0.70% on the CNH 2012-B pool, the
most recent transaction of CNH that was rated by Moody's. The
improvement in the expected loss for this transaction is driven
by a modest improvement in the expected performance of
construction equipment and continued low loss levels in 2010 and
2011 vintage transactions.

Expected loss numbers may be nearing a stable state and, given
the lack of material diversity in industry exposure, Aaa
Volatility Proxy Levels are unchanged from 2012-A or 2012-B and
are likely at or near cycle lows. The current drought conditions
in the Midwest are not expected to have a material impact on
losses for this deal for three main reasons. Crop and revenue
insurance for grain producers along with government disaster
assistance for livestock producers is expected to fill much of
the farmers' cash flow gap due to drought losses. Additionally,
farmers with crops are seeing much higher prices. Lastly,
farmers, in general, have very strong balance sheets and are in a
good position to cope and respond to the drought conditions.

The V Score for this transaction is Low/Medium, which is in line
with the score assigned to the U.S. Agricultural and Construction
Equipment Loan ABS sector. The V Score indicates "Low/Medium"
uncertainty about critical assumptions. Overall, Moody's views
the credit risk for this asset class to be relatively straight-
forward and well understood given the high granularity of the
collateral pools and the long track record of securitization over
varying economic conditions. The assessment of Low/Medium, as
opposed to Low, is primarily driven by the non-homogenous nature
of the assets and the varying sensitivity of the obligors to
changes in economic conditions, given that the obligors can vary
from small and medium businesses to large corporations.
Agricultural equipment receivables account for a majority
(91.98%) of the collateral securitized in this deal, which is a
positive given that the construction equipment receivables have
performed significantly worse historically, particularly through
the recent economic downturn. Although delinquency levels for
agricultural loans increased throughout the economic downturn,
they have since fallen to historical lows and, in Moody's view,
the fundamentals for the agricultural sector remain sound.

Moody's Parameter Sensitivities: If the net loss used in
determining the initial rating were changed to 1.45%, 3.25%, or
5.25%, the initial model-indicated output for the Class A notes
might change from Aaa to Aa1, A2, and Baa3, respectively. If the
net loss used in determining the initial rating were changed to
0.85%, 1.25%, or 1.95%, the initial model-indicated output for
the Class B notes might change from A2 to A3, Baa3, and Ba3,

Parameter Sensitivities are not intended to measure how the
rating of the security might migrate over time, rather they are
designed to provide a quantitative calculation of how the initial
rating might change if key input parameters used in the initial
rating process differed. The analysis assumes that the deal has
not aged. Parameter Sensitivities only reflect the ratings impact
of each scenario from a quantitative/model-indicated standpoint.
Qualitative factors are also taken into consideration in the
ratings process, so the actual ratings that would be assigned in
each case could vary from the information presented in the
Parameter Sensitivity analysis.

Principal Methodology

The principal methodology used in this rating was"Moody's
Approach to Rating Securities Backed by Equipment Leases and
Loans," published in March 2007.

Additional research including a pre-sale report for this
transaction is available at The special reports,
"Updated Report on V Scores and Parameter Sensitivities for
Structured Finance Securities" and "V Scores and Parameter
Sensitivities in the U.S. Equipment Lease and Loan ABS Sector"
are also available on

ENTERPRISE NETWORKS: Moody's Cuts CFR/PDR to 'Caa1'; Outlook Neg.
Moody's Investors Service downgraded Enterprise Networks Holding
B.V.'s ("ENH") Corporate family and probability of default
ratings to Caa1 from B3. The B3 rating on the EUR200 million
senior secured notes due November 2015 issued by EN Germany
Holdings B.V. and guaranteed by ENH remains unchanged. The
outlook on all ratings remains negative.


  Issuer: Enterprise Networks Holding B.V.

     Probability of Default Rating, Downgraded to Caa1 from B3

     Corporate Family Rating, Downgraded to Caa1 from B3

Ratings Rationale

The rating downgrade was prompted by ENH's EUR114 million cash
burn in the third quarter of its fiscal year 2012 (ending
September 30) triggered by sizeable cash outflows for working
capital, restructuring costs and one-time charges as well as
pressure on gross margins despite a stabilization in quarterly
revenues (6% year-over-year growth). As a consequence, ENH's cash
on balance sheet dropped to EUR137 million at June 30 from EUR211
million at March 31 and the company made full drawings under its
EUR40 million revolving credit facility.

"We expect that a higher revenue base in the seasonally strong
fourth quarter will facilitate a return to positive free cash
flow in the fourth quarter, thereby, modestly improving the
currently low cash balance at fiscal year-end 2012," said Kathrin
Heitmann, Moody's lead analyst for ENH.

However, the continuing fierce price competition in the industry,
the weak macroeconomic environment in Europe and likely
additional sizeable restructuring measures will result in
continued weak profit margins and negative free cash flow
generation in fiscal year 2013. This will put further pressure on
the company's limited financial flexibility and could lead to
additional funding requirements and reduced headroom under
financial covenants.

Positive free cash flow generation and sound financial
flexibility are key rating drivers as ENH will need to constantly
reinvest in new products and platforms to maintain its position
against much larger and better capitalized competitors such as
Cisco and Microsoft.

The negative rating outlook reflects the risk of a further rating
downgrade in case of a further erosion in the company's liquidity
cushion and diminishing headroom under financial covenants.

The Caa1 corporate family rating continues to reflect the
company's good competitive position within the enterprise
telephony market and favorable replacement trends facing the
industry. At the same time the industry is evolving to include
integrated communications offerings (including email, instant
messaging, video as well as integration into vast corporate
databases) and is characterized by intense price competition.
These industry characteristics have resulted in a continued
shrinkage of ENH's revenue base and sizeable restructuring costs
in order to adapt the cost structure to the changing market
conditions. ENH's current credit metrics position the company
weakly in its rating category, evidenced by debt/EBITDA of 6.2x;
EBITDA margin of 5% and FCF/debt of -21% for the last twelve
months period 30 June 2012.

The B3 (LGD 3- 39%) rating for the group's EUR200 million senior
secured notes issued by EN Germany Holdings B.V. (EN Germany) is
determined using Moody's Loss Given Default (LGD) Methodology.

Moody's groups ENH's debt into three classes of creditor
protection: (i) the EUR40 million secured revolving credit
facility with super-priority ranking in liquidation; (ii) the
EUR200 million senior secured bonds (EUR162 million carrying
value at June 30, 2012) and about EUR286 million trade payables
at June 30, 2012 at LGD3; and (iii) about EUR85 million of
underfunded pension obligations (at September 30, 2011), EUR52
million of short-term lease rejection claims for finance (EUR17
million at June 30, 2012) and operating leases (EUR35 million at
September 30, 2011) and EUR23 million of other unsecured bank
debt at June 30, 2012 at subsidiary level ranking at the bottom
of the waterfall.

The increased level of unsecured debt and non-debt claims at
operating level compared to the rating assignment in 2010, as
well as the reduced outstanding amount of the bonds results in an
improved position of the group's bondholders and thus, results in
a rating uplift for the initially EUR200 million senior secured
notes (carrying value of EUR162 million at June 30, 2012) under
Moody's LGD methodology compared to the Caa1 corporate family
rating. The position of bondholders is also supported by the cash
flow offer contained in the bond indenture according to which ENH
has to make a repurchase offer to all holders of the notes each
June 30 and December 31 in the amount of the accumulated cash
flow account funds (EUR12.5 million plus accrued interest, if
any) and has led to a reduction in the amount of outstanding

The EUR146 million cumulative preference shares have not been
incorporated into the LGD framework.

What Could Change The Rating Up/Down

Moody's would consider a rating downgrade if (1) ENH's business
kept shrinking over the next few quarters or (2) the company
proved unable to halt the drain on cash from its operations and
stabilize cash on balance sheet and in case of (3) diminishing
headroom under financial covenants.

A rating upgrade would require a track record of free cash flows
with a substantial scale down of restructuring charges so that
leverage moves below 4.5x on a sustainable basis.

The principal methodology used in rating Enterprise Networks
Holdings B.V. and EN Germany Holdings B.V. was the Global
Communications Equipment Industry Methodology published in June
2008. Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.

Enterprise Networks Holding B.V. is a leading global provider of
communications-related products and services to enterprises,
including businesses, government agencies and other
organizations. It is jointly owned by private equity firm The
Gores Group (51%) and Siemens AG (49%). While the holding company
is registered in Amsterdam, Netherlands, the corporate
headquarters of the group are in Munich, Germany. ENH generated
EUR2.1 billion revenues in fiscal year ending September 30, 2011.


HYDROBUDOWA POLSKA: Court Declares Bankruptcy by Liquidation
On September 17, 2012, the Management Board of PBG S.A. (in
company voluntary arrangement) was notified of a decision issued
on September 13, 2012, by the District Court for Poznan-Stare
Miasto of Poznan, XI Commercial Insolvency and Arrangement
Division (the Court), declaring the bankruptcy of HYDROBUDOWA
POLSKA S.A. (in company voluntary arrangement) by liquidation of
its assets.

The decision will become final one week after the date on which
it is served on the Company, unless it is appealed against before
the lapse of that period.

Hydrobudowa is a unit of Polish builder PBG SA.


* ROMANIA: Corporate Insolvencies Down 1.43% in Jan-Aug 2012
Florentina Dragu at Ziarul Financiar reports that Romania's Trade
Registry on Tuesday said 11,043 companies filed for insolvency in
the first eight months of 2012, down 1.43% from 11,230 companies
in the year-earlier period.


* CITY OF DNIPROPETROVSK: S&P Affirms 'B' Issuer Credit Rating
Standard & Poor's Ratings Services affirmed its 'B' long-term
issuer credit rating and 'uaA-' Ukraine national scale rating on
the Ukrainian city of Dnipropetrovsk. The outlook is stable. The
recovery rating on Dnipropetrovsk's senior unsecured debt remains
at '4'.

"The ratings on Dnipropetrovsk reflect Ukraine's very weak public
finance system, which results in low financial flexibility and
predictability for the city, as well as material contingent
liabilities related to municipal utilities and a poor and
concentrated economy. These constraints are mitigated by
Dnipropetrovsk's low debt burden and strong financial support
from the central government," S&P said.

"The stable outlook reflects our expectation, according to our
base-case scenario, that despite a possible slowdown in economic
growth and tax revenues, Dnipropetrovsk's adherence to cautious
expenditure policies, coupled with continued central-government
support, will likely result in operating surpluses above 5% and
only modest deficits after capital accounts over the medium term.
It also reflects the city's low tax-supported debt and debt
service in 2012-2014," S&P said.

"We would likely take negative rating actions on Dnipropetrovsk
if operating expenditures, weaker revenues, or the municipal
companies' financial positions put additional stress on the
city's operating performance, resulting in sustained operating
deficits and a weaker liquidity position. The deterioration of
the city's liquidity resulting from short-tem debt accumulation
could also put pressure on the rating," S&P said.

"We could take positive rating actions if the city displayed
stronger budgetary performance in line with our up-side scenario,
in particular when combined with a clear and structural reduction
of the payables of the city's GREs. In the longer run, positive
rating actions will likely depend on the city formally adopting
debt and liquidity policies, coupled with improvements in
Ukraine's institutional framework. Ratings upside would also
depend on our rating actions on Ukraine," S&P said.

U N I T E D   K I N G D O M

BARNISH HOMES: Anglo to Recover GBP1.5-Mil. of GBP9.5-Mil. Owed
BBC News reports that Barnish Homes that was placed into
administration last month has estimated that the former Anglo
Irish Bank will get back just GBP1.5 million of the GBP9.5
million it is owed.

Barnish Homes owned a large site on West Circular Road in west
Belfast, next to the former Mackies site, BBC discloses.  A
GBP9.5 million mortgage was registered on the site in 2005,
however, in a statement of affairs, the Randalstown firm's
directors estimate that the site is now worth just GBP1.5
million, according to BBC.

Smaller creditors of the firm are owed GBP55,000, none of which
will be repaid, BBC states.

When Barnish Homes was placed into administration, the bank, now
called IBRC, also appointed receivers to some of the assets of a
number of related companies, BBC recounts.  Those firms are
Barnish Construction, Quayside Construction and Quayside Retail.

Mortgage documents suggest that the assets in receivership
include two pubs, BBC notes.

Barnish Homes is a County Antrim property firm.

JJB SPORTS: In the Brink of Administration, Sells Stores
Press Association reports that JJB Sports, whose best stores are
due to be snapped up by its arch rival, has gone from market
leader to the brink of administration.

Former Blackburn Rovers footballer and Wigan Athletic owner Dave
Whelan bought a single store in Wigan in 1971 before an
aggressive expansion drive made it the UK's biggest sports
retailer with more than 400 stores, the report recounts.  In
2007, the report relates, Mr. Whelan sold his family's holding
for GBP190 million to a joint venture formed by Icelandic
financial group Exista and Chris Ronnie, who previously worked at
Umbro and Sports World owner Sports Direct.

The group was hit hard by the squeeze on consumer spending
triggered by the financial crisis and by the stellar performance
of rivals Sports Direct and JD Sports, Press Association relates.
By late 2008, JJB was in a battle for survival, the report

Press Association says that despite shareholders with deep
pockets, such as the Bill and Melinda Gates Foundation, numerous
fundraisings and closing half of its stores, JJB has been unable
to revive fortunes.  The sportswear retailer company recently put
itself up for sale and is expected to be bought by Mike Ashley's
Sports Direct International in a pre-pack administration that
will see Mr. Whelan's former rival take his pick of the best
stores in the estate, the report notes.

JJB secured its most recent lifeline four months ago when it
landed GBP20 million from US retailer Dick's Sporting Goods and a
further GBP10 million from existing shareholders, Press
Association relates.  It earmarked GBP20 million of the most
recent funding on converting 60 of its most important stores in
2012 and 2013 into a new format which during trials produced
much-improved sales and margins, the report relates.

More dire trading despite the UK's summer of sport left the
stricken firm asking shareholders for another cash injection, but
this time they ran out of patience, finally forcing the group to
throw in the towel and put itself up for sale, The Press
Association adds.

JJB SPORTS: JD Sports Drops Out of Bidding Race
Mark Wembridge at The Financial Times reports that JD Sports
Fashion has pulled out of the running to buy rival JJB Sports,
leaving Mike Ashley's Sports Direct International as favorite to
take over the struggling sportswear retailer.

JD Sports Executive Chairman Peter Cowgill told the FT that his
company withdrew from the sale process because of the two
retailers' different store sizes.

"We could have made a piecemeal bid, but JJB's store sizes
wouldn't have been suitable for the JD format," the FT quotes
Mr. Cowgill as saying.  "The only interest would have been to
take on the whole of JJB.  A partial bid was not worthwhile.  It
was either all or nothing."

Administrator KPMG has been appointed to sell JJB and has been in
discussions with several parties, including private equity
groups, to dispose of the loss-making retailer, the FT relates.

Mr. Ashley's Sports Direct is thought to be tempted by the
opportunity to cherry pick the best of JJB's 180 stores and close
the remainder, the FT notes.

Gareth Mackie at The Scotsman reports that Sports Direct is
believed to be close to arranging to buy the most profitable
stores from JJB under a "pre-pack" administration.

The deal, which was expected to be announced as early as Monday,
could see more than half of JJB's 180 stores closed, but it is
believed the Office of Fair Trading (OFT) would launch an
investigation into any attempt by Sports Direct to buy its
nearest rival, the Scotsman notes.

According to the Scotsman, it is now understood that JJB will not
be able to ward off administration, but is working towards a
pre-pack arrangement, which will allow it to be sold on

This move, the Scotsman relays, would allow Sports Direct to
jettison loss-making stores but avoid the damaging impact of a
prolonged administration.

Sports Direct used to own a stake in JJB, but sold that stake
three years ago, the Scotsman recounts.

JJB Sports plc -- is a sports
retailer.  JJB Sports is a multi-channel sports retailer
supplying branded sports and leisure clothing, footwear and
accessories.  It operates out of over 185 stores across the
United Kingdom and Ireland with e-commerce offering.

RANGERS FOOTBALL: Proceedings in Ticketus Dispute Set to Begin
Mike Farrell at STV News reports that Ticketus is expected to
begin court proceedings in the coming weeks against former
Rangers owner Craig Whyte over a GBP26.7 million deal he used to
fund his takeover.

The ticketing firm is pursuing Mr. Whyte after he used future
season ticket sales to wipe out the Ibrox club's GBP18 million
debt to Lloyds Banking Group last May, STV relates.

Ticketus, which is an investee company of Octopus Investments, is
taking legal action against Mr. Whyte after administrators Duff
and Phelps failed to agree to a company voluntary arrangement
(CVA) with creditors in June, STV discloses.

It is unclear whether Ticketus will launch the action in Scottish
or English courts, while most of Mr. Whyte's business interests
are linked to the British Virgin Islands-registered firm, Liberty
Capital Ltd., including Rangers FC Group, the company he used to
buy Sir David Murray's 85% stake for GBP1, STV notes.

The civil action raised by the investment company is not likely
to be heard until next year, STV discloses.

"Ticketus is continuing to pursue, through the courts, the terms
of the corporate and personal guarantees agreed with Craig Whyte
at the time of the original contract between Ticketus and Rangers
FC in May 2011," STV quotes a spokesman for the firm as saying on

After being appointed in February, Duff and Phelps sought
guidance from the Court of Session over the contract Mr. Whyte
had agreed with Ticketus to effectively fund his takeover of the
Ibrox club, STV relates.

Lord Hodge found that Ticketus did not, under Scots law, own
future season ticket sales at Rangers as it had claimed, STV

                   About Rangers Football Club

Rangers Football Club PLC --
-- is a United Kingdom-based company engaged in the operation of
a professional football club.  The Company has launched its own
Internet television station,  The station combines
the use of Internet television programming alongside traditional
Web-based services.  Services offered include the streaming of
home matches and on-demand streaming of domestic and European
games, which include dedicated pre-match, half-time and post-
match commentary.  The Company will produce dedicated news
magazine and feature programs, while the fans can also access a
library of classic European, Old Firm and Scottish Premier League
(SPL) action.  Its own dedicated television studio at Ibrox
provides onsite production, editing and encoding facilities to
produce content for distribution on all media platforms.

THAMES WATER: Moody's Issues Summary Credit Opinion
Moody's Investors Service's summary credit opinion on Thames
Water Utilities Ltd. and includes certain regulatory disclosures
regarding its ratings. This release does not constitute any
change in Moody's ratings or rating rationale for Thames Water
Utilities Limited and its affiliates.

Moody's current ratings on Thames Water Utilities Limited its
affiliates are:

Thames Water Utilities Limited (TWUL)

LT Corporate Family Rating of Baa1

Thames Water Utilities Finance Limited

Backed Senior Secured Class A rating of A3
Backed Senior Unsecured MTN program rating of (P)Baa1
Backed Senior Unsecured MTN rating of Baa1

Thames Water Utilities Cayman Finance Limited (TWUCF)

Backed Senior Secured Class A rating of A3
Backed Subordinate Class B rating of Baa3

Thames Water (Kemble) Finance PLC (Kemble)

Backed Senior Secured rating of B1

Ratings Rationale

Moody's maintains a corporate family rating (CFR) of Baa1 with
stable outlook on TWUL reflecting (i) the company's low business
risk profile as the monopoly provider of essential water and
sewerage services; (ii) stable returns under a transparent and
predictable regulatory framework; (iii) a high level of gearing;
and (iv) the creditor protections incorporated within the
company's financing structure.

A corporate family rating is an opinion on the expected loss
associated with a company's financial obligations assuming that
it has a single class of debt and is a single consolidated legal
entity. The Baa1 CFR is in line with the corporate family ratings
assigned in two of the three comparable transactions in the UK
water sector, Anglian Water and Yorkshire Water, and one notch
above that for Southern Water (the latter was downgraded in
July 2011 -- please refer to the associated press release for
further detail). Like its peers, TWUL's credit quality is
constrained by the expectation that the company will maintain a
highly leveraged financial structure and by its exposure to
refinancing risk, i.e. dependence upon continued market access to
fund ongoing capital expenditure and the risk of adverse
financial market conditions that may prevent TWUL from funding
its very large capex program or refinancing its debt on
reasonable terms. The rating consolidates the legal and financial
obligations of TWUL, TWUF and TWUCF (both financing subsidiaries)
and Thames Water Utilities Holdings Limited (a holding company),
which together constitute the ring-fenced TWU Financing Group as
defined under the terms and conditions of its MTN program (the
TWUL MTN Programme) and factors in the associated structural

The A3 rating of the Class A Bonds issued under the TWUL MTN
Programme reflects the strength of the debt protection measures
for this class of bonds and other pari passu indebtedness
(together, the Class A Debt), the senior position in the cash
waterfall and post any enforcement of security. The rating also,
however, factors in the subordinated Class B Debt (Class B Bonds
and other pari passu debt) which, whilst it is contractually
subordinated, serves to reduce the operator's financial
flexibility. Downgrade or default of the Class B Debt could have
an impact on the viability of the company's funding model as a
whole since the inability to raise additional Class B Debt in the
future could undermine the capital structure and affect the
credit quality of the senior debt.

The Baa3 rating of the Class B Bonds reflects the same default
probability as factored into the rating of the Class A Debt but
also Moody's expectation of a heightened loss severity for the
Class B Debt following any default, given its subordinated

The B1 rating assigned to the GBP400 million notes issued by
Kemble (a financing subsidiary of Kemble Water Finance Limited, a
holding company for TWUL) under its GBP1.0 billion Guaranteed
Secured Medium Term Note Programme (the Kemble Notes), reflects
(i) the low business risk profile of TWUL, as the monopoly
provider of water and wastewater services in its area; (ii) the
stable and transparent regulatory framework for the water sector
in England and Wales; (iii) the high level of gearing at TWUL and
other debt in the group (debt can increase up to 92.5% of TWUL's
RCV before a distribution lock-up comes into effect); (iv) the
terms of the TWUL MTN Programme; (v) the large capital investment
program planned by TWUL for the current regulatory period; and
(vi) the terms of the Kemble MTN program including a cash
trapping provision.



The stable outlook on the ratings reflects Moody's expectation
that TWUL's financing structure should be relatively resilient to
downside scenarios due to the cash trapping triggers designed to
ensure that cash is retained in the company if certain ratio
thresholds are breached. Such cash could then be used to absorb
the effect of possible downsides.

Given the company's funding structure and Moody's expectation
that TWUL will maintain leverage close to the maximum level
permitted by its financial covenants, there will be limited
potential for an upgrade of its ratings. Upward rating pressure
would require a material and permanent improvement in debt
protection measures.

Negative pressure on the ratings could derive from (i) an
unexpected, severe deterioration in operating performance that
results in TWUL remaining persistently in breach of the
distribution lock-up triggers; (ii) a material change in the
regulatory framework for the UK water sector leading to a
significant increase in TWUL's business risk; (iii) unforeseen
funding difficulties; and (iv) TWUL being required to deliver the
main part of the proposed Thames Tunnel.


The stable outlook for the Kemble Notes reflects Moody's view
that the transaction is reasonably resilient to downside
sensitivities. Given the high leverage at TWUL, the additional
debt at Kemble and Moody's expectation that there will be only
limited de-leveraging over the life of the Kemble Notes, there
will be little potential for an upgrade.

Under the terms of the TWUL MTN Programme, there is a
distribution lock-up at the operating company if (i) Class A RCV
gearing or Senior (Class A and Class B) RCV gearing exceeds 75%
or 85% respectively; or (ii) Class A Adjusted ICR or Senior
Adjusted ICR falls below 1.30x or 1.10x respectively. A material
deterioration in these financial metrics, compared to forecasts
and such that the trigger levels appeared more likely to be
breached, would result in negative rating pressure for the Kemble
Notes. Such deterioration could be the result of serious
underperformance in operating or capital expenditure at TWUL, or
adverse macro-economic developments, including deflation.
Negative funding conditions or adverse changes in the regulatory
framework or structure of the water sector in England and Wales
may also cause downward rating pressure.

Again, Moody's notes that it would likely strain the credit
standing of TWUL and hence Kemble if TWUL were to be required to
deliver the main Thames Tunnel (estimated construction cost
GBP4.1 billion). Moody's considers, however, that this is

The principal methodology used in these ratings was Moody's
global Rating Methodology for Regulated Water Utilities published
in December 2009.

TIUTA INTERNATIONAL: Investors Opt to Wind Up Series 1 Fund
Paul Thomas at MoneyMarketing reports that investors have voted
unanimously in favour of placing the Connaught Income Fund Series
1 into liquidation.

MoneyMarketing relates that at a Sept. 12 investors' meeting at
the National Exhibition Centre in Birmingham, over 92% of
investors present at the meeting chose a formal insolvency
process to wind down the UCIS fund, which at one stage was
GBP118 million in size.

At the meeting, the report relates, investors also chose to
replace BDO as the administrator of Tiuta International Limited,
the arm of Tiuta plc which used GBP105 million of Series 1 funds
as a funding line, and to replace the firm with Duff & Phelps.
Tiuta International entered administration last month with the
loan books sold to Connaught for GBP1, the report notes.

Connaught Asset Management had the casting vote and chose to
honor the wishes of investors in appointing D&P as the fund's
liquidator, MoneyMarketing states.

As reported in the Troubled Company Reporter-Europe on July 27,
2012, mortgagestrategy said Tiuta International has been placed
into administration.  The London-based firm was a former a
subsidiary of UK bridging provider Tiuta.  In mid-June 2012, it
was announced that the board of Connaught was winding up its
income fund series one and two, both of which partly funded
bridging lending Tiuta, according to mortgagestrategy.

Tiuta International is the holding firm for Connaught Asset
Management's GBP100 million series one bridging loan fund.

XCHANGETEAM: Set to Go Into Liquidation
John Owens at reports that recruitment specialist
Xchangeteam ceased trading on September 5 with liquidation
proceedings starting on September 19.

Corporate recovery specialist Butcher Woods is overseeing the
liquidation process of the firm, which joined the Pertemps
Network in 2011, according to

Xchangeteam, which had offices in London and Bristol, was
launched in 1999 by Emma Brierley.  The company covered
recruitment in the communications, client services, digital,
marketing and media sectors.


* Moody's Says Sluggish EU Demand Constrains Global Auto Growth
Growth in the global auto industry in 2013 will be constrained by
sluggish demand in Europe and weakening sales in China, says
Moody's Investors Service in its Global Auto Industry Outlook
published on Sept. 17. Moody's outlook for the sector over the
next 12-18 months remains stable.

The new report, entitled "Global Automotive Manufacturers:
Sluggish European Demand Continues To Weigh On Global Auto Sales
Growth", is now available on Moody's subscribers
can access this report via the link provided at the end of this
press release.

"Although we forecast global light vehicle sales growth of 4.4%
in 2012, we have revised our forecast for 2013 demand growth to
2.9% from our January forecast of 4.5%," says Falk Frey, a Senior
Vice President in Moody's Corporate Finance Group and author of
the report. "Our growth revision is driven by weaker-than-
expected demand in Europe and slowing economic pace in China."

Moody's forecasts that western European light vehicle demand will
contract in 2013 by 3%, compared with its January forecast of 3%
growth, because of weaker markets in southern Europe and in Italy

Moody's has revised lower its forecast for light vehicle demand
in China, to 8.5% from its January expectation of 10% growth, in
line with Moody's revised 2013 GDP growth forecast for the

Moody's expects to see more automotive manufacturers taking
restructuring action to tackle overcapacity in Europe. However,
any restructuring efforts will only be credit positive for
European original equipment manufacturers (OEMs) if they reduce
their capacities and costs to sustainable levels of demand and
this leads to capacity utilization rates of 90% or higher.

Manufacturers' profit margins are also diverging. Renault,
Peugeot and Fiat's margins will remain under pressure because of
overcapacity and low demand, especially in southern Europe. This
will also begin to weigh on German OEMs' margins. Japanese
manufacturers' margins have improved from their low after the
2011 earthquake and tsunami, but the continued strong yen will
slow margin growth. Moody's expects US manufacturers to retain
similar or slightly lower margins in the next 12-18 months but
tougher competition, slower US growth and higher losses in Europe
may cause them to erode slightly.

Moody's would consider revising the outlook to positive if the
rating agency forecast global light vehicle growth to exceed 5%
in the next two years and, assuming that capacity did not outgrow
demand, utilization rates improved (especially in Europe) and
pricing remained firm.

Moody's would revise the outlook to negative if volume growth in
the global automotive industry fell below 2%, net pricing
declined and capacity utilization rates deteriorated, or if the
rating agency expected operating profits to decline for any other

* S&P Takes Various Rating Actions on 21 European CDO Tranches
After running its month-end SROC (synthetic rated
overcollateralization) figures, Standard & Poor's Ratings
Services took various credit rating actions on 21 European
synthetic collateralized debt obligation (CDO) tranches.

Specifically, S&P has:

-- Placed on CreditWatch negative its ratings on eight tranches;

-- Placed on CreditWatch positive its ratings on six tranches;

-- Affirmed its ratings on seven tranches.

For the full list of rating actions, see "European Synthetic CDO
CreditWatch Actions After Running August 2012 Month-End SROC

"The SROC levels for the ratings placed on CreditWatch negative
fell below 100% during the August 2012 month-end run. We will
publish these SROC figures in the SROC report covering August
2012, which is imminent. The Global SROC Report provides SROC and
other performance metrics on over 823 individual CDO tranches,"
S&P said.

"For those transactions where our September 2009 CDO criteria are
not applicable, we have run our analysis on the CDO Evaluator 2.7
and CDO Evaluator 4.1 models," S&P said.

"For the transactions where our September 2009 CDO criteria
apply, we have run our analysis on CDO Evaluator 6.0.1. For
transactions run on this model, the ratings list includes the top
obligor and industry test SROCs at the current rating level. The
'largest obligor default test' assesses whether a CDO tranche has
sufficient credit enhancement to withstand specified combinations
of underlying asset defaults based on the ratings on the assets,
with a flat recovery of 5%. The 'largest industry default test'
assesses whether a CDO tranche rated 'AAA' to 'AA-' has
sufficient credit enhancement to withstand the default of all
obligors in the transaction's largest industry, with a flat
recovery of 17%," S&P said.

"In addition, we have affirmed our ratings on the tranches for
which credit enhancement is, in our opinion, still at a level
consistent with their current ratings," S&P said.


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 Reports
included in this credit rating report are available at:


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

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

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

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


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

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

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

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

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

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

                 * * * End of Transmission * * *