TCREUR_Public/121003.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, October 3, 2012, Vol. 13, No. 197



PIERRE LANG: Is Insolvent, Austrian News Reports


CERCLE GAILLON: French Poker Room Closes Doors


FUHRLANDER: Delayed Ukraine Project Prompts Insolvency Filing
CENTROTHERM PHOTOVOLTAICS: Court Okays Reorganization Request
HAUS-1998-1: S&P Lowers Rating on Class B-2 Notes to 'B-(sf)'
POSEIDON FUNDING: Moody's Puts ABCP on Review for Downgrade
VOERDE ALUMINIUM: To Continue Production Until End of December


CHEVRON TRAINING: High Court Appoints Interim Examiner
JJB SPORTS: KPMG Appointed Provisional Liquidator to Irish Unit


AGRI SECURITIES: S&P Cuts Rating on Class B Notes to 'B-(sf)'


BANKAS SNORAS: Lithuania Hires Swiss Law Firm to Handle Case


* NETHERLANDS: Corporate Bankruptcies Up 23% in Third Quarter


OLTCHIM: To Enter Voluntary Liquidation if Privatization Fails


* KRASNOYARKS CITY: Fitch Affirms 'BB' Long-Term Currency Ratings


SANTANDER PUBLICO: Fitch Lowers Rating on Class B Notes to 'Bsf'


NOBINA AB: Moody's Reviews 'Caa3' Corp. Family Rating for Upgrade


AGROTON PUBLIC: S&P Affirms 'CCC+' Corporate Credit Rating

U N I T E D   K I N G D O M

DJM LOGISTICS: Former Warehouse Has New Tenant
EUROMAX III: Fitch Affirms 'CCsf' Rating on Class B Notes
GAMESTONE: Former Shop Turned Into Betting Business
HMT LEGAL: Sells Practice After Going Into Administration
JJB SPORTS: To Shut Down 133 Stores; 2,200 Jobs Affected

* Administrations Drops 15% for North East Retailers


* Moody's Says EMEA Auto ABS Performance Deteriorates Further
* EUROPE: Moody's Says Further Sovereign Stress to Hit Insurers



PIERRE LANG: Is Insolvent, Austrian News Reports
Austrian Times reports that jewellery chain Pierre Lang Europe
Handelsgesellschaft m.b.H. is insolvent.

According to the report, insolvency firm Kreditschutzverband said
Pierre Lang is insolvent together with daughter company Hans
Andersen Ges.m.b.H. and parent company Andersen Holding.

Austrian Times relates that KSV officials said about 280 staff
are affected as well as around 850 creditors.

The report says liquidators are currently looking at whether it
is possible for the company to continue on and whether it is
possible to reach a deal with creditors to allow them to accept
20% of what they are owed in exchange for allowing the firm to

Pierre Lang Europe Handelsgesellschaft m.b.H. designs and
manufactures jewelry. The company was founded in 1961 and is
based in Vienna, Austria.  It has production plants in Vienna and


CERCLE GAILLON: French Poker Room Closes Doors
Rebecca McAdam at CardPlayer reports that Cercle Gaillon, a poker
room located near the Champs-Elysees in Paris, France, has shut
its doors for good.

Citing both the state of the economy and regulations for such
clubs in France, the club had one last attempt at survival in
recent times to no avail, according to CardPlayer.

"The facility has been hit hard by the economic downturn coupled
with unfavorable regulatory environment for gambling clubs in
France, resulting from the June 7, 2012 insolvency proceedings
handed down by the Tribunal de Grande Instance de Paris," Cercle
Gaillon said in a (translated) message on the site obtained by

"The insolvency proceedings opened with an observational period
of four months which allowed Cercle Gaillon, [an organisation
that promises] impeccable service, a reboot of the activity,
including traditional games, but the summer holiday period has
decided otherwise."

Cercle Gaillon, which was created in 1933, has played host to
many events over the years from poker to blackjack championships.


FUHRLANDER: Delayed Ukraine Project Prompts Insolvency Filing
Recharge News reports that wind-turbine manufacturer Fuhrlander
has filed for bankruptcy, claiming that delayed projects among
its customers have left it in a position where it can no longer
cover its bills.

According to Recharge News, Fuhrlander has applied to self-
administer its own insolvency proceedings, and said it has been
in touch with all its major business partners to "ensure the
continuation of the company".

Recharge News relates that Fuhrlander said it will not
immediately make any staff reductions -- having already slimmed
its headcount earlier this year as part of a strategic overhaul.

In May, Recharge News recalls, a consortium known as Windgrosse
-- controlled by Ukrainian investor Maxim Efimov, and with ties
to Russian nuclear giant Rosatom -- acquired 80% of Fuhrlander.

Recharge News discloses that almost immediately, the company's
founder, Joachim Fuhrlander, was replaced by Werner Heer -- who
has deep ties to the Chinese market -- as Fuhrlander chairman.
In August, Riccardo Gava, an Italian with extensive restructuring
experience, was appointed chief executive.

Fuhrlander's push into the Ukrainian market has been a key plank
of its future strategy.  But the company indicates that it may
have been delayed projects in Ukraine that pushed it over the
edge, the report states.

Based in the west German state of Rhineland-Palatinate,
Fuhrlander manufactures wind turbines.

CENTROTHERM PHOTOVOLTAICS: Court Okays Reorganization Request
The reorganization of centrotherm photovoltaics AG has entered a
decisive phase.

The District Court of Ulm on Oct. 1 granted the company's
application to open reorganization proceedings under its own
administration.  The same also applies for the subsidiaries
centrotherm thermal solutions GmbH & Co. KG and centrotherm SiTec
GmbH, which have also been in insolvency protection proceedings
since July 12. The provisional creditor committee had provided
unanimous support to the application.

As a consequence, centrotherm photovoltaics can restructure
itself independently on the basis of the reorganization and
future concept coordinated with creditors, and regulated by a
court-appointed administrator.  The court determined that Prof.
Martin Hoermann from the Anchor legal firm, who has already
functioned as provisional administrator to date, should be the
administrator for centrotherm photovoltaics.  Lawyer Alexander
Reus of the Anchor legal firm, who has also acted as provisional
administrator to date, was appointed to be the administrator for
the subsidiaries centrotherm thermal solutions GmbH & Co. KG and
centrotherm SiTec GmbH.

The company's own administrator Tobias Hoefer welcomed the
court's decision.  "This sets an important signal for the future
of centrotherm photovoltaics AG.  Following the successful
conclusion of insolvency protection proceedings which this
documents, we can now make preparations for the further course of
the reorganization process."

The next step in the reorganization process is to submit the
reorganization and future concept, which has been developed in
coordination with the main creditor groups, to the District Court
of Ulm by October 12, 2012.  If the plan, which aims for the
highest possible satisfaction of creditors, is then accepted by
the creditors, and confirmed by the court, the insolvency
proceedings can be terminated in line with the regulations of the
German Act Relating to the Further Simplification of the
Reorganization of Companies (ESUG), and the German Insolvency
Directive (InsO).  Centrotherm photovoltaics could then operate
again on a solid basis on the market as a reorganized company,
and fully independently.

Irrespective of this, the full scope of business continues at
centrotherm photovoltaics and the aforementioned subsidiaries.
New orders have been received during the insolvency protection
phase, and customers, suppliers and creditors have supported the
reorganization measures.  Liquidity has also developed better
than planned as a consequence.  The Group currently commands a
liquidity position of more than EUR110 million, thereby providing
a good financial base for the implementation of the
reorganization plan.

                        About centrotherm

photovoltaics AG centrotherm photovoltaics AG, which is based at
Blaubeuren, Germany, is a technology and equipment provider for
the photovoltaics sectors.  The Group currently employs around
1,300 staff, and operates globally in Europe, Asia and the USA.

HAUS-1998-1: S&P Lowers Rating on Class B-2 Notes to 'B-(sf)'
Standard & Poor's Ratings Services has taken various credit
rating actions in Haus-1998-1 Ltd.

Specifically, S&P has:

-- lowered to 'B- (sf)' from 'BBB (sf)' and removed from
    CreditWatch negative its rating on the class B-2 notes, and

-- lowered to 'BBB (sf)' from 'A+ (sf)' its rating on the class
    B-1 notes.

"The rating actions follow our full review of the transaction,
and reflect our view that the credit risk to the rated classes of
notes has increased significantly as the transaction has
amortized (tail-end risk)," S&P said.

"The downgrade resolves our April 20, 2012 CreditWatch negative
placement of the class B-2 notes, which resulted from decreasing
credit support to this class of notes and from what we consider
to be low recovery rates," S&P said.

"The class A-1 notes fully amortized in August 2012, whereupon we
withdrew our 'A+ (sf)' rating on this class of notes. As of , the
most senior outstanding class of notes is the class B-1 notes,"
S&P said.

"According to the latest investor report, received for the Sept.
14, 2012 payment date, the class B-2 notes' subordination has
declined further to 13.5%, from 13.8% at our April 20, 2012
review. Consequently, while the transaction amortizes pro rata,
the class B-3 notes have also diminished through losses
constantly applied since June 2012. Since our last review in
April 2012, recovery rates remained at what we consider to be low
levels. At the same time, terminated loans and loans in
foreclosure remain at about 14.5% of the current outstanding
balance, which we consider to be high. In our opinion, 90-plus
days delinquencies have been very low since our last review,
amounting to 0.05%," S&P said.

"Considering realized losses, terminated loans, loans in
foreclosure, and delinquencies to date--and taking into account
historical recovery rates in this particular portfolio--we have
assessed the likelihood of future losses for both the performing
and nonperforming parts of the collateral pool," S&P said.

"While about 85% of the pool is performing, we have observed
interest shortfalls on the first-loss piece--the unrated class B-
3 notes--on several occasions, and especially in 2012. We believe
that a main driver of interest shortfalls is the relatively high
amounts of fixed fees in the 'miscellaneous fees' bucket," S&P

"The transaction continues to amortize and, due to the
circumstances, we believe that tail-end risk to the rated classes
of notes is increasing significantly," S&P said.

"Therefore, we have lowered to 'B- (sf)' from 'BBB (sf)' and
removed from CreditWatch negative our rating on the class B-2
notes," S&P said.

"We also lowered to 'BBB (sf)' from 'A+ (sf)' our rating on the
class B-1 notes," S&P said.

"We will continue to monitor the transaction's performance
closely," S&P said.

"Haus-1998-1 is a true-sale German residential mortgage-backed
securities (RMBS) transaction. The pool factor has reduced to
2.9%, from 3.3% at our April 20, 2012 review," S&P said.


SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an property-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:



Class     Rating        Rating
          To            From

Haus-1998-1 Ltd.
EUR718.15 Million Mortgage-Backed Floating-Rate Notes

Rating Lowered and Removed From CreditWatch Negative

B-2       B- (sf)        BBB (sf)/Watch Neg

Rating Lowered

B-1       BBB (sf)       A+ (sf

POSEIDON FUNDING: Moody's Puts ABCP on Review for Downgrade
Moody's Investors Service has placed the Prime-2 (sf) rating in
respect of the asset-backed commercial paper notes (ABCP) issued
by Poseidon Funding Limited/Poseidon Funding Corporation on
review for downgrade:

Issuer: Poseidon Funding Limited

EUR5000M ECP CP Program, P-2 (sf) Placed Under Review for
Possible Downgrade; previously on Nov 21, 2011 Downgraded to P-2

Ratings Rationale

Poseidon is a hybrid conduit sponsored and administered by HSH
Nordbank AG (Baa2/P-2/ E+), whose long and short term ratings are
on review for downgrade.

The rating announcement reflects the placement on review for
downgrade of the Prime-2 rating of HSH Nordbank AG on
September 26, 2012.

HSH Nordbank AG provides, among other functions, liquidity
support and program-level credit enhancement to Poseidon. This
rating announcement is based solely on the rating announcement
with respect to HSH Nordbank AG's Prime-2 rating. No models, loss
and cashflow analysis or simulation of stress scenarios have been
used in Moody's analysis.

Moody's expects to conclude its review of Poseidon's rating in
conjunction with the review on the ratings of HSH Nordbank AG.

As of August 31, 2012, Poseidon had approximately $21 million of
ABCP outstanding.

The principal methodology used in this rating was Moody's
Approach to Rating Asset-Backed Commercial Paper published in May

VOERDE ALUMINIUM: To Continue Production Until End of December
Reuters reports that creditors of Voerde Aluminium have voted for
it to continue production at least until the end of this year
while the search for a buyer continues, Voerde's administrator
said on Thursday.

Reuters notes the Voerde smelter, which produces 115,000 tonnes
of aluminium annually, declared insolvency in May.  The plant
produced just over 10% of Germany's 1.06 million tonne aluminium
production in 2011.

According to Reuters, insolvency administrator Frank Kebekus said
a meeting of creditors decided to continue production at the
plant provisionally until Dec. 31, 2012.  A decision will be made
in December about continuing output beyond that date, he said.

Reuters discloses that U.S. metals group Aleris in August bought
Voerde's cast house.  Buyers are now being sought for the
separate electrolysis and anode production units at the plant,
Mr. Kebekus, as cited by Reuters, said.

Mr. Kebekus told the creditors meeting there is a "good chance"
of finding an investor to take over the rest of the plant, the
news agency relays.

Reuters adds Mr. Kebekus said Voerde's business performance has
stabilised and a return to profitability was expected in the
fourth quarter of 2012.

Voerde Aluminium launched insolvency proceedings on May 4 but
said the business would continue to operate and it would seek to
restructure.  According to Reuters, the company said it had hit
liquidity problems because aluminium prices had fallen since July
last year while production costs increased.

Voerde Aluminium is a German aluminium smelter.  The company
produces around 115,000 tonnes of aluminium annually and has 410


CHEVRON TRAINING: High Court Appoints Interim Examiner
The Irish Examiner reports that an interim examiner has been
appointed to Chevron Training and Development Ltd.

According to the report, the High Court heard Chevron Training
was tipped into insolvency after an arbitrator made a EUR100,000
award against them in a trade dispute last August.

The Irish Examiner relates that the award is owed to Link 2 Leads
Ltd, which allegedly claimed it would wind up Chevron if the
money wasn't paid within 21 days.

Chevron has debts of over EUR1 million but remains profitable and
employs 15 people, five of whom are disabled, the report notes.

Chevron Training and Development Ltd. runs training courses,
often aimed at unemployed people wishing to upskill.

JJB SPORTS: KPMG Appointed Provisional Liquidator to Irish Unit
--------------------------------------------------------------- reports that KPMG'S Kieran Wallace has been
appointed as provisional liquidator to the Irish business
division of JJB Sports, the British retailer which went into
administration on Monday.

The division comprises four retail stores and two gyms based in
Dundalk, Limerick, Blanchardstown and Liffey Valley -- it employs
102 people, discloses.

According to, the retail stores and gyms will in
the meantime remain open on a "business as usual" basis.

Mr. Wallace will now move to sell the business and assets of JJB
Sports in Ireland as a going concern, notes.

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.


AGRI SECURITIES: S&P Cuts Rating on Class B Notes to 'B-(sf)'
Standard & Poor's Ratings Services lowered its credit rating on
Agri Securities S.r.l.'s series 2008 class B notes to 'B- (sf)'
from 'BBB- (sf). "At the same time, we affirmed our rating on the
class A notes at 'AA+ (sf)'," S&P said.

"The rating actions follow our review of the performance of Agri
Securities' series 2008 notes," S&P said.

"Delinquencies have increased considerably since June 2011.
Mortgage loans in arrears for more than 90 days comprised 5.1% of
the performing pool on the last payment date in September 2012,
up from 3.2% in March 2012 and 2.8% in June 2011," S&P said.

"In September 2012, cumulative gross defaults reached 11.0% of
the portfolio at the beginning of the amortization period in
March 2010, up from 7.1% in September 2011," S&P said.

"The transaction features an interest-deferral trigger for the
class B notes, based on the cumulative net defaults ratio. We
define this ratio as cumulative defaulted receivables, minus
cumulative recoveries on the initial portfolio, plus subsequent
purchases in the first 18-month revolving period. In September
2012, the cumulative net defaults ratio reached 6.8%, up from
5.0% in September 2011," S&P said.

"According to the transaction documents, when the net defaults
ratio exceeds 7.8%, the interest on the class B notes is not
paid, and the equivalent amount is deferred to repay principal on
the class A notes. Having the trigger based on the net cumulative
defaults means that an improvement in performance could reduce
the trigger level as cumulative defaults are offset by
recoveries," S&P said.

"The credit enhancement level available for the class B notes is
currently 10.8%, up from 7.8% in June 2011--that can potentially
offset the increasing amount of net defaults. Nevertheless, the
rating action on the class B notes is driven by the interest
deferral trigger. We believe that the likelihood of the
cumulative net defaults ratio reaching the trigger level has
increased in the past year, and consequently also the likelihood
that the interest on the class B notes will not be paid. We have
therefore lowered our rating on the class B notes to 'B- (sf)'
from 'BBB- (sf)'," S&P said.

"The affirmation of the rating on the class A notes follows our
credit and cash flow analysis. The relevant legal and
counterparty analysis has not changed since our previous review
on June 3, 2011, and the swap agreement is not in line with the
replacement language described in our 2012 counterparty criteria.
Consequently, we have run additional sensitivity tests without
the benefit of the swap to test the rating on the class A notes,"
S&P said.

"The increase in arrears and defaults is offset by the increase
in credit enhancement available for the class A notes, which rose
to 38.6% in September 2012 from 27.0% in June 2011. We have
therefore affirmed our rating on the class A notes at 'AA+
(sf)'," S&P said.

"Agri Securities 2008 is an Italian lease receivables asset-
backed securities (ABS) transaction, originated by Iccrea
BancaImpresa SpA (formerly Banca Agrileasing SpA). Iccrea
BancaImpresa is a bank specialized in providing corporate
financing in Italy. It is a member of the Iccrea Group and it is
closely associated with the Banche di Credito Cooperativo, the
Italian co-operative banking network," 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 Report
included in this credit rating report is available at:


Class               Rating
           To                    From

Agri Securities S.r.l.
EUR1.014 Billion Asset-Backed Floating-Rate Notes And Unrated
Notes Series 2008

Rating Lowered

B          B- (sf)               BBB- (sf)

Rating Affirmed

A          AA+ (sf)


BANKAS SNORAS: Lithuania Hires Swiss Law Firm to Handle Case
Aaron Eglitis and Bryan Bradley at Bloomberg News, citing the
Baltic News Service, report that the Lithuanian Finance Ministry
hired Swiss law firm Lalive and the Baltic law firm Sorainen
Partners to defend the country against claims arising from the
takeover of Bankas Snoras AB.

According to Bloomberg, BNS said that the ministry and the law
firms signed a three-year contract worth LTL10 million
(US$3.7 million) on Sept. 24.  Bloomberg notes that the newswire
said Vladimir Antonov, the former majority owner of Snoras who is
fighting extradition from London and civil charges over the
lender's bankruptcy, filed a suit against Lithuania over the
takeover on May 7.

                       About Bankas Snoras

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

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

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


* NETHERLANDS: Corporate Bankruptcies Up 23% in Third Quarter
------------------------------------------------------------- reports that credit registration group Dun &
Bradstreet on Monday said the number of companies going bankrupt
in the Netherlands rose 23% year-on-year in the third quarter.

According to, Dun & Bradstreet said that most
companies went bankrupt in Friesland and Drenthe and were least
likely to go bust in Zuid-Holland and Zeeland.


OLTCHIM: To Enter Voluntary Liquidation if Privatization Fails
Manuela Panescu at Ziarul Financiar reports that the Romanian
government pledged to put Oltchim under voluntary liquidation
unless the privatization succeeds in the agreement with the
International Monetary Fund.

Oltchim is a Romanian chemical company.


* KRASNOYARKS CITY: Fitch Affirms 'BB' Long-Term Currency Ratings
Fitch Ratings has affirmed the Russian City of Krasnoyarsk's
Long-term foreign and local currency ratings at 'BB', Short-term
foreign currency rating at 'B' and National Long-term rating at
'AA-(rus)'.  The Outlooks on the Long-term ratings are Stable.

The affirmation reflects the city's strong local economy, sound
budgetary performance, an improving infrastructural environment
and still moderate direct risk.  The ratings also factor in the
city's high investment needs resulting in an increase in direct
risk, and high refinancing needs stemming from a short-term debt
maturity profile.

Fitch notes that maintenance of sound budgetary performance with
operating balance averaging 14% of operating revenue in the two
subsequent years coupled with direct risk stabilization below 30%
of current revenue would lead to an upgrade.  Conversely,
deterioration of budgetary performance with operating margin at
about 5% and/or insufficiency of operating balance to cover debt
refinancing needs would lead to a downgrade.

Fitch expects Krasnoyarsk's operating performance to stabilize
with an operating balance at about 10% of operating revenue in
2012-2014.  This is below than pre-crisis average margins of 24%
in 2007-2008.  However, the operating balance remains
satisfactory for the city's debt servicing needs.  Operating
expenditure is under pressure because of promises on salary
increases made by the federal government, but this would be
compensated by higher transfers from the budget of Krasnoyarsk
region and tax revenue increase.

Krasnoyarsk's direct risk has a short-term maturity profile,
which poses high refinancing risk. It is dominated by bank loans
and loans from the regional budget with an average maturity of
between one and two years.  About 93% of the city's liabilities
expire in 2012-2013, creating high refinancing pressure.
Immediate refinancing risk is mitigated by several unused credit
lines of RUB3.7 billion at Sberbank ('BBB'/Stable/'F3').  These
exceed the RUB3.1 billion of short-term liabilities due in
October-December 2012.

The city has constantly recorded deficit before debt variation
since 2008 and Fitch forecasts deficits in 2012-2014.  It is
driven by high capital spending, which has constantly exceeded
20% of total expenditure during the past five years.  This has
led to an increase in debt as about 20% of capex was financed by
new borrowing.

Fitch expects the city's direct risk to be about RUB6.8bn by end-
2012, which corresponds to a moderate 28% of current revenue.
Debt will gradually increase to about 33% of current revenue in
2013-2014. Debt coverage (direct risk/current balance) will
remain below four years in 2012-2014, which exceeds the average
debt maturity of the city's debt of two years.

With a population of 998,082 inhabitants (2011), the city is the
capital of Krasnoyarsk Region, which is one of the top 10 Russian
regions by gross regional product and the second-largest Russian
region by area.  The city's economy has a strong industrial
sector dominated by metallurgy and machine-building.  This gives
it a strong tax base, but also exposes it to volatile business
cycles in non-ferrous metallurgy.


SANTANDER PUBLICO: Fitch Lowers Rating on Class B Notes to 'Bsf'
Fitch Ratings has downgraded Santander Publico 1, F.T.A.'s notes
as follows:

  -- Class A (ISIN ES0338185004): downgraded to 'BBsf' from
     'BBBsf'; Outlook Negative

  -- Class B (ISIN ES0338185012): downgraded to 'Bsf' from
     'BBBsf'; Outlook Negative

The downgrade reflects the increasing risk stemming from the
portfolio comprised of debt issued by the Spanish public sector
entities.  Loans in arrears by more than 180 days have increased
to 1.1% from 0.1% in October 2011.  The Negative Outlook on both
classes also highlights the increased risk on public sector
entities in the current stressed economic environment.

The transaction is capped to Spain's sovereign rating of
'BBB'/Negative/'F2' because the credit quality of public sector
borrowers is highly correlated with the sovereign.  For rated
entities referenced in the portfolio, Fitch's credit opinions or
public ratings are on average 'BBB'/'BBB-'.  However, given the
thin level of credit enhancement (class A 8.75%, class B 4.19%)
and the obligor concentration level in the portfolio (the largest
10 obligors representing around 37% of the portfolio) class A and
class B are vulnerable to the default of a small number of large
obligors with weaker credit profiles than average.  In Fitch's
view the rating of class A is not commensurate with the sovereign
rating of Spain.

In addition while recoveries are expected to be high if the
public sector entities continue to benefit from the support of
the Spanish government, recovery proceeds timing could be lengthy
potentially resulting in a high negative carry for the

In assessing the transaction's credit quality, the agency relied
on credit opinions produced for a sample of obligors by Fitch's
International Public Finance group.


NOBINA AB: Moody's Reviews 'Caa3' Corp. Family Rating for Upgrade
Moody's Investors' Service has placed Nobina AB's Caa3 Corporate
Family Rating and the Ca/LD Probability of Default Rating on
review for upgrade.

The review for upgrade is in response to Nobina's announcement
that it plans to refinance the EUR85 million (approximately
SEK711 million) senior secured notes, which were temporarily
deferred until October 31, 2012 on August 1, 2012, with a debt-
to-equity swap.

According to the preliminary terms & conditions, approximately
25% of the principal of the EUR85 million notes will be converted
into equity corresponding to a 95% stake in Nobina and the
remaining 75% will be converted in new senior secured notes, to
be issued by Nobina Europe AB and maturing in 5-years and paying
annual coupon of 11%. Nobina Europe AB is an indirect subsidiary
of Nobina AB and the issuer of the current EUR85 million notes.
Noteholders will be granted a put option after two years,
conditional on certain levels of cash build-up in the company.
Moody's notes that Nobina's shareholder and bondholder base will
be nearly fully aligned after a successful execution of the
proposed transaction.

Moody's believes that the proposed transaction will constitute a
distressed exchange and the PDR of Ca/LD anticipates this event.
Upon the closing of the debt-to-equity swap, Moody's will
classify the exchange as a limited default.

The transaction is expected to close by the end of October at
which time Moody's will make a decision regarding an upgrade.
However, Moody's expects that Nobina's Corporate Family Rating
will remain in the Caa range following the completion of the

Ratings placed on review for possible upgrade:

Corporate Family Rating at Caa3

Probability of Default Rating at Ca/LD


The successful completion of the transaction will eliminate the
August 2012 maturity of the outstanding bond and the risk of a
near-term insolvency. Assuming the refinancing occurs as
proposed; the more relaxed debt maturity profile will improve
Nobina's near term financial flexibility.

The possible rating upgrade also reflects Moody's expectation
that profitability levels will remain stable or slightly improve
and that free cash flow will be positive, albeit modest compared
to total debt outstanding.

However, while the proposed refinancing will improve Nobina's
near-term financial flexibility, it will not improve the
company's current low cash balance of SEK150 million and it will
not materially reduce the company's leverage and interest burden
given the higher coupon of 11% compared to 9.125% on the old
notes. Debt/EBITDA is expected to remain around 6.5x-7.0x times
in fiscal year 2012-13 (ending February 28) compared to 7.2x at
31 August 2012, a level Moody's views as substantial given
Nobina's relatively narrow business focus and modest free cash
flow generation.

Other factors considered in Nobina's ratings are (1) the
company's position as the largest Nordic bus transportation group
with a significant proportion of business with local Scandinavian
communities that have relatively high revenue visibility and
predictability due to limited transportation volume exposure; (2)
the group's track record of generating positive free cash flow,
albeit modest in relation to outstanding debt; (3) the group's
limited scale with revenues and profit generation being
concentrated on the Swedish market; and (4) the compression in
the group's credit metrics in fiscal year 2011-12, with first
signs of improvement in its profit margins in H1 2012-13
(reported operating margin 4.2% in H1 2012-13 compared to 3.6% in
H1 2011-12).

Nobina's ratings were assigned by evaluating factors that Moody's
considers relevant to the credit profile of the issuer, such as
the company's (1) business risk and competitive position compared
with others within the industry; (2) capital structure and
financial risk; (3) projected performance over the near to
intermediate term; and (4) management's track record and
tolerance for risk. Moody's compared these attributes against
other issuers both within and outside Nobina's core industry and
believes Nobina's ratings are comparable to those of other
issuers with similar credit risk.

Nobina AB is the largest Nordic bus transportation company,
operating in Sweden, Norway, Finland and Denmark. Its revenues
for fiscal year 2011-12 (ending 29 February) totaled SEK7.1
billion and were mostly generated from public bus services in
Sweden. This reflects the more advanced stage of the deregulation
in this country, where almost all local and regional bus services
have been tendered since 1989, in contrast to the situation in
Norway and Finland, where less than 50% of the traffic has been
tendered so far. In Sweden, the public bus transportation needs
of Contractual Public Transportation Associations (CPTAs) are put
up for tender via a competitive bidding process and the tenor of
such contracts is typically five to eight years. The majority of
contracts are priced with cost indexation levels adjusted on a
monthly (Denmark), quarterly (Sweden, Finland) or annual basis


AGROTON PUBLIC: S&P Affirms 'CCC+' Corporate Credit Rating
Standard & Poor's Ratings Services affirmed its 'CCC+' long-term
corporate credit rating and senior unsecured debt ratings on
Ukrainian agricultural producer Agroton Public Ltd. (Agroton).
"At the same time, we removed the ratings from CreditWatch, where
we had placed them with developing implications on May 15, 2012,"
S&P said.

"The rating affirmation follows the progress Agroton has made in
collecting its receivables, the recoverability of which were
questioned by its previous auditor Baker Tilly Klitou. The
collection of these accounts receivable nevertheless took more
than nine months, which is longer than we had originally
estimated. We believe that the process was so protracted because
of the company's significant customer concentration as well as
what we view as the company's risky trading policies. We also
consider that the somewhat limited transparency of the company's
plans and its evolving corporate governance weigh on its credit
quality," S&P said.

"The ratings continue to reflect our assessment of Agroton's
'weak' business risk profile and 'highly leveraged' financial
risk profile, as our criteria define these terms. We consider
Agroton's business risk profile to be constrained by the high
risk associated with doing business in Ukraine (B+/Negative/B),
which has a history of government intervention in the
agricultural sector," S&P said.

"We view Agroton's financial risk profile as highly leveraged
mainly because we forecast that it will generate negative free
cash flow until 2014, as we foresee Agroton expanding its
operations and investing in equipment," S&P said.

"The stable outlook balances the significant cash supporting
Agroton's liquidity over the next 12 months against the company's
need to refinance or repay its bond maturing in July 2014, as
well as the risks related to the company's transparency and
corporate governance," S&P said.

"The stable outlook also reflects our opinion that Agroton's
operating performance over the next six to 12 months should
continue to benefit from favorable agricultural commodity prices.
We also believe that Agroton will carefully calibrate its capital
expenditures on expansion against its ability to service its
coupon payments," S&P said.

"The ratings could be positively affected if the company can
generate the substantial free cash flow generation over the next
two years necessary to accumulate funds for the upcoming bond
repayment. Further rating upside could arise from a steady and
sustainable improvement in Agroton's standing in the capital
markets and advance refinancing of the bond," S&P said.

"Negative rating pressure could develop if Agroton does not
secure the necessary liquidity sources to repay its upcoming bond
repayment at least nine months before it falls due. We could
consider a negative rating action if we saw no improvement in the
company's transparency, including the quality of its financials
for 2012 and consistency between its plans and forecasts against
actual developments. Adverse market conditions, such as a sharp
fall in market prices for wheat and sunflower seeds, could also
weigh on the company's credit quality," S&P said.

U N I T E D   K I N G D O M

DJM LOGISTICS: Former Warehouse Has New Tenant
Peter MacLeod at SHD Logistics reports that the 200,000 sq. ft.
former DJM Logistics warehouse near Crewe has been re-let nearly
two years after the business went into administration.

SHD Logistics relates that the unit at Winsford Industrial
Estate, Cheshire, was occupied by BJM until it went into
administration in 2010.  The report relays that the building has
been empty ever since.

The new tenant is The Box Works Ltd.

DJM was forced into administration in conjunction with property
business K&M Industrial Developments Ltd. K&M owned property at
Marshfield Bank industrail estate, Crewe, according to SHD

The report discloses that DJM administrator Grant Thornton has
now instructed Sanderson Weatherall and Jones Lang LaSalle to
sell the property.

Box Works makes and distributes laminated timber build products.

EUROMAX III: Fitch Affirms 'CCsf' Rating on Class B Notes
Fitch Ratings has downgraded Euromax III MBS Ltd (Euromax III)
class A-1 notes and affirmed the class A-2 and B notes, as

  -- Class A-1 (XS0158773324): downgraded to 'B-sf' from 'Bsf';
     Outlook Negative
  -- Class A-2 (XS0158774991): affirmed at 'CCCsf'
  -- Class B (XS0158775022): affirmed at 'CCsf'

The downgrade of the class A-1 notes reflects the deterioration
in the underlying portfolio's credit quality.  The portfolio
comprises 28 assets, of which ten are rated 'CCCsf' and below and
account for 35% of the portfolio, compared to 30% as of the last
review in October 2011.  Assets rated 'CCsf' and below stand at
23% of the portfolio compared to 19% as of the last review.
There is a substantial exposure to subprime RMBS (18%), and also
CMBS (28%).

The class A-1 notes have amortized to 36% of their original size.
If the notes remain outstanding after December 2014, there will
be a step-up in the margin paid on the notes resulting in a
decrease in the amount of excess spread the transaction can
generate.  This will erode potential support provided by excess
spread diversion in the interest waterfall on breach of coverage
tests.  There has been no breach of the overcollateralization
(OC) test since the transaction's closing.  However, it may
potentially be breached after 2014, due to the potential increase
in the OC test's haircuts caused by the increase in the long-
dated assets in the portfolio.

The agency affirmed the class A-2 and B notes as their credit
enhancement levels are commensurate with the portfolio's credit

GAMESTONE: Former Shop Turned Into Betting Business
This is Leicestershire reports that a former computer games store
is set to be turned into a betting shop.

This is Leicestershire notes that the vacant unit in Granby
Street, Leicester, which used to be Gamestation, is being taken
on by Ladbrokes.

The report notes that the betting company has applied to the
council to change the use of the building.

Gamestation shut in March after its parent company went into
administration, the report notes.  It was one of 277 stores to be
closed by administrators, with the loss of more than 2,000 jobs,
the report recalls.

HMT LEGAL: Sells Practice After Going Into Administration
Derby Telegraph reports that a Derbyshire legal firm which went
into administration after suffering cash flow problems has been

HMT Legal, which has offices in Ripley, Alfreton, Chesterfield
and Duffield, has been bought out of administration by another
county legal firm, Simpson Jones, according to This is
Derbyshire.  The cost of the deal has not been disclosed.

The report notes that despite introducing measures to turn the
fortunes of the firm around, it continued to make losses.

The report discloses that earlier this month, it called in Dean
Nelson, head of business recovery and insolvency at Derby-based
Smith Cooper, to act as administrator.

The report says that some HMT staff have been made redundant
although Mr. Nelson said that a number of them may be rehired.

HMT provides legal advice to businesses and individuals.  It was
founded in 1989 under the name Hardy Titterton and Co, by Arthur
Titterton and David Hardy.

JJB SPORTS: To Shut Down 133 Stores; 2,200 Jobs Affected
Paul Jarvis at Bloomberg News reports that JJB Sports Plc will
close most of its stores with the loss of about 2,200 jobs after
attempts to rescue the business failed.

According to Bloomberg, a statement from KPMG LLP, which was
appointed as on Monday as administrator to the company, said that
a total of 133 outlets will be shut, with the remaining 20 being
acquired by competitor Sports Direct International Plc.

Bloomberg relates that David McCorquodale, the KPMG corporate
finance partner who led the sales process, said in a statement an
auction process for the retailer attracted interest from more
than 100 parties and led to eight first-round bids from trade and
private-equity buyers.  Mr. McCorquodale, as cited by Bloomberg,
said that most were put off by the amount of cash and further
restructuring that would have been required.

Sports Direct said it will pay GBP23.77 million for the 20
stores, most of JJB's inventory and the Slazenger golf brand
licenses, as well as the freehold property in Wigan, Bloomberg
discloses.  A further sum of as much as GBP0.25 million will be
payable after a stock take, Bloomberg notes.

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.

* Administrations Drops 15% for North East Retailers
Bdaily Business Network, citing figures released by Deloitte,
reports that administrations for North East retailers have fallen
by 15% in the last quarter.

The number of retailers that went into administration in the
region fell from 33 in quarter two to 28 in quarter three,
although any optimism within the sector is cautious, according to
Bdaily Business Network.

Bdaily Business Network notes that across the UK, 395 firms went
into administration in the third quarter, which showed a decline
of 25% year-on-year.

Bdaily Business Network says that Neil Matthews, restructuring
services director at Deloitte in the North East commented on the
figures, and said more household names were coping under
financial pressures.

"The decline in the number of retailers falling into
administration is positive news.  As the year has gone on, low
inflation has eased the pressure on consumers, particularly in
the non-discretionary categories," the report quoted Mr. Matthews
as saying.

The report notes that wage growth is set to "outstrip" inflation
next year, according to Deloitte, which will give consumers
increased spending power.

The report discloses that Mr. Matthews added: "Whil[e] the
pressure is easing, the retail sector is still fragile.  The real
test will come in January once the busy Christmas trading period
is over. . . . Forecasts for the festive period are mixed. The
challenge will be for retailers not to discount too quickly or
too deeply to ensure they generate sales at acceptable margins in
order to provide a stable platform for trading into the first
quarter of 2013."


* Moody's Says EMEA Auto ABS Performance Deteriorates Further
The performance of the Europe, Middle East and African (EMEA)
auto loan and lease asset-backed securities (ABS) market
continued to deteriorate in the three-month period leading up to
July 2012, according to the latest indices published by Moody's
Investors Service.

In the three-month period to July 2012, 60+ day delinquencies
decreased to 0.81% from 0.96% in July 2011. The German auto loan
and lease ABS index of 60+ day delinquencies fell to 0.44% from
0.58% in July 2011 on the back of falling unemployment. The
German auto market is the largest in the EMEA auto loan and lease
ABS indices (44.5% of the current balance of transactions) and so
improvement in Germany had the largest influence on the overall
index. However, economic difficulties in Portugal, Spain and
Italy increased losses in the EMEA auto ABS market. Moody's EMEA
auto loan and lease ABS index on cumulative losses increased to
1.02% in July 2012 from 0.83% and 0.87% in April 2012 and
July 2011, respectively.

Moody's outlook for German auto ABS collateral is stable. The
rating agency expects the unemployment rate in Germany to fall to
5.5% in 2012 from 5.9% in 2011, as previously announced in as
previously announced in "Moody's Statistical Handbook - Country
Credit" (May 2012). Falling unemployment rates will help keep
German auto delinquencies stable. Portugal, Spain and Italy will
remain in economic recession in 2012. Moody's also expects the
unemployment rate to rise (1) in Portugal, to 15.5% in 2012 from
13.0% in 2011; (2) in Spain, to 24.5% in 2012 from 21.7% in 2011;
and (3) in Italy, to 10.0% in 2012 from 8.5% in 2011 ("Moody's
Statistical Handbook - Country Credit" May 2012). Rising
unemployment rates will increase delinquencies in Portugal, Spain
and Italy.

* EUROPE: Moody's Says Further Sovereign Stress to Hit Insurers
Insurers' credit quality is linked to that of the sovereigns in
which they are domiciled and conduct business, and therefore,
further deterioration in the credit quality of European
sovereigns would negatively affect European insurers, says
Moody's Investors Service in a new report published on Oct. 1. As
major fixed income investors, European insurers have direct
exposure to government debt and banks in the euro area, with
greater exposure in countries where they have a sizable business
footprint. Insurers are also indirectly affected by the continued
weakening of euro area sovereigns because the economic
dislocation associated with declines in sovereign
creditworthiness affects demand for insurers' products, business
costs and policyholders' behavior.

The report is titled "How further sovereign stress would affect
European insurers and their ratings".

The report outlines the potential impact of three sovereign-
related stress events on European insurers' credit quality and
ratings. Although these events do not represent Moody's central
expectations, they constitute plausible scenarios given the
downside risks in the current macro-economic and sovereign
environment across the euro area. The report presents the likely
consequences of these events assuming they would occur in
isolation, although in practice they might occur simultaneously
or subsequently.

The three sovereign-related stress events analyzed by Moody's

(i) Greece (C no outlook) defaults again and exits from the euro
area; the negative direct effect on rated insurers'
creditworthiness would be limited in view of their modest
financial and operational exposures to this country. Moody's
would not expect this event, in itself, to result in any rating
downgrades among insurers.

(ii) The credit quality of Spain (Baa3 review for downgrade) and
Italy (Baa2 negative) further deteriorates; this would negatively
affect the creditworthiness of rated insurers domiciled in these
countries. In addition, the ratings of non-domestic insurers with
meaningful exposures to Spain or Italy could also face negative
pressure if Italy's and Spain's sovereign credit quality falls
below investment-grade.

(iii) A modest deterioration in the creditworthiness of large
Aaa-rated EU sovereigns (to levels consistent with upper- or mid-
range Aa sovereign ratings); this would not, in itself, directly
affect insurers' credit profiles. However, if the strongest
European sovereigns' credit strength weakened to levels
commensurate with single A ratings, then a broader range of Aa-
rated European insurance groups could face downward ratings


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 * * *