TCREUR_Public/130109.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, January 9, 2013, Vol. 14, No. 6


C Z E C H   R E P U B L I C

* Moody's: High Credit Concentrations Major Risk for CEE4 Banks


ALBEA BEAUTY: S&P Assigns 'B+' Corp. Rating; Outlook Stable


FRESENIUS FINANCE: Moody's Rates EUR500MM Sr. Unsec. Notes 'Ba1'


GLITNIR BANK: Johannesson Pleads Not Guilty in Suit Over Loan


ANDROMEDA FINANCE: Fitch Keeps Rating on Class A2 Notes at 'BB+'
RICHARD GINORI: Declared Bankrupt by Italian Court


TRUCKLEASE SA: Fitch Lifts Rating on Class D Notes From 'BB+'


FLASH DUTCH: Moody's Assigns 'B2' CFR/PDR; Outlook Stable


PBG SA: Speeds Up "Restructuring" & Creditor Talks


VIDA PAPER: Seeks Investor Following Bankruptcy


* US Global Tax Deal Best Option for Swiss Banks, Says Fitch


PETKIM PETROKIMYA: Fitch Affirms, Withdraws 'B+' Long-Term IDRs

U N I T E D   K I N G D O M

BANK OF SCOTLAND: Amendments No Impact on Moody's 'D+' BFSR
GULISTAN CARPET: Bankrupt Owner to Shut Down Aberdeen Factory
KENDAL RIVERSIDE: In Administration, Business as Usual
SHERIDAN MILLENNIUM: Owner Declared Bankrupt After Administration
WEAVERING CAPITAL: Director Appears in Court Over Collapse

WILLIAM HILL: S&P Affirms 'BB+' Corp. Rating; Outlook Stable


* EUROPE: 2013 to Remain Challenging for Western Telecoms Cos.


C Z E C H   R E P U B L I C

* Moody's: High Credit Concentrations Major Risk for CEE4 Banks
Credit concentrations in the CEE4 region (i.e. Czech Republic,
Hungary, Poland and Slovakia) are generally higher than in most
developed banking systems, says Moody's Investors Service in a
Special Comment report published on Jan. 7. At the same time,
credit concentrations in the CEE4 banking systems are mostly in
line with developing banking markets, and generally below those
for the Commonwealth of Independent States (CIS) region. These
findings come from Moody's recent survey of CEE4 banks' exposure
to single borrowers, carried out on data covering the period

The new report, titled "CEE4 Banks: Single-Client Concentration
Survey Reveals High Credit Concentrations", is now available on . Moody's subscribers can access this report via
the link provided at the end of this press release.

"High credit concentrations in the CEE4 banking systems remain a
major credit risk for the banks," says Oscar Heemskerk, a Moody's
Vice President -- Senior Credit Officer and co-author of the
report. "However, we acknowledge that these concentrations
include high sovereign exposures to CEE4 government debt, and
that corporate concentrations are lower than the headline figures
suggest," adds Mr. Heemskerk.

Moody's notes that, excluding the sovereign exposures, Slovakia
reveals the highest single-name concentration risk, albeit that
the loss absorbing capacity of Slovak banks has historically been
supported by their strong profitability. High borrower
concentrations in Hungary, in particular to the higher-risk
commercial real-estate and construction sectors, constitute a
major risk for the Hungarian banking system, which is exacerbated
by the weak operating environment and banks' deteriorating
financial performance.

In Moody's view, the relatively high level of credit
concentrations in the region is generally reflected in the banks'
standalone financial strength ratings, in particular when
combined with their higher risk appetite, as evidenced by
elevated exposures to riskier asset classes in the banks' top 20

Moody's believes that, for the CEE4 region, the high levels of
average credit concentrations, as measured by the banking
sectors' top 20 credit exposures relative to capital and
earnings, primarily reflect (1) banks' focus on their respective
relatively small domestic markets, with limited lending
opportunities; and (2) the historical trend of growing a
corporate franchise, followed by developing businesses into the
more granular small and medium sized enterprises (SMEs) and
retail segments. Risks are further exacerbated by relatively high
industry concentrations in the domestic markets, and resulting
high exposures to a few, and often higher-risk, industries in the
banks' loan books.

The survey consists of 26 rated banks throughout the CEE4 region.
These banks account for over 50% of the banking assets in their
respective countries, which in Moody's view makes its sample
broadly representative of system-wide developments. The ratings
that Moody's currently assigns to CEE4 banks incorporate the
current concentration risks discussed in the report.


ALBEA BEAUTY: S&P Assigns 'B+' Corp. Rating; Outlook Stable
Standard & Poor's Ratings Services said that it assigned its 'B+'
long-term corporate credit rating to France-based beauty and
cosmetics packaging manufacturer Albea Beauty Holdings S.A.
(Albea).  The outlook is stable.

"At the same time, we assigned our 'B+' issue rating to Albea's
EUR200 million senior secured notes (due 2019) and US$385 million
senior secured notes (also due 2019).  The recovery rating on
these notes is '4', indicating our expectation of average
recovery (30%-50%) in the event of a payment default.  The rating
on Albea reflects our assessment of the group's financial risk
profile as "aggressive" and business risk profile as "fair" (post
acquisition)," S&P said.

"Our assessment of Albea's financial risk profile as "aggressive"
reflects our view of the group's capital structure following the
completion of the acquisition of Rexam PLC.  Albea is owned by
private-equity firm Sun Capital Inc., and we assess Albea's
financial policy as "aggressive".  The ratings are further
constrained by limited audited historical financial data and a
still-nascent track record.  We forecast that Albea's Standard &
Poor's-adjusted debt-to-EBITDA ratio will be just less than 4.5x
at Dec. 31, 2013," S&P noted.

"Our assessment of Albea's business risk profile as "fair"
reflects the newly combined group's position as a global leader
in the niche beauty and cosmetics packaging market, with combined
sales about $1.5 billion in 2013.  The combined group is likely
to benefit from economies of scale, an enhanced product
portfolio, and stronger market positions, (especially in higher-
growth emerging markets, which we understand will represent 30%
of total sales).  The group benefits from long-standing
relationships with blue-chip customers such as L'Oreal and Estee
Lauder.  It has improved its ability to pass on volatile raw
material costs to customers--almost three-quarters of Albea's
sales contracts included price-adjustment clauses in 2011," S&P

These strengths are somewhat offset by the weak macroeconomic
outlook in key European markets, which represent about 50% of
combined group sales, and exposure to more cyclical end markets
where spending is somewhat discretionary in nature.  Further
constraining the rating are weak, if improving, EBITDA margins
versus peers.  (S&P calculate an adjusted EBITDA margin of 8.4%
for the 12 months to June 30, 2012, for Albea on a stand-alone
basis.)  The group also suffers from some customer concentration-
-its top 10 customers account for more than one-half its sales.

The issue rating on the senior secured note issues of
EUR200 million (due 2019) and US$385 million (also due 2019)
issued by Albea Beauty is 'B+', in line with the corporate credit
rating.  The recovery rating is '4', indicating S&P's expectation
of average (30%-50%) recovery in the event of a payment default.

The recovery rating is supported by S&P's view of Albea's
valuation as a going concern, its leading market position, and
the synergies expected to be achieved through the acquisition of
Rexam PLC (BBB-/Stable/A-3).  The recovery rating on the proposed
notes is constrained at '4'.

The notes are contractually subordinated to the working capital
assets pledged to the $60 million North American Asset-Based
Lending (ABL) and the EUR100 million European factoring
facilities.  They are also structurally subordinated to debt
raised at operating subsidiaries (currently about $16 million is
available at subsidiaries).

The notes' guarantee and security package have some important
limitations, as they exclude the contributions from French
operating subsidiaries -- these account for 33% of combined group
sales and 22% of its EBITDA.  As such, the proposed guarantee
package as of the 12 months to June 30, 2012, only comprises
Twist Beauty Packaging S.a.r.l. (Luxembourg) and material
subsidiaries, which are expected to represent 47%, 53%, and 55%
of the combined group's revenue, EBITDA and net assets,
respectively.  This is a relatively low coverage level by market

In line with S&P's criteria, to calculate potential recoveries,
S&P simulate a hypothetical default scenario.  Under this
scenario, a default would occur following a combination of top-
line deflation, due to intensified competition and slowing demand
from challenging European markets; margin pressure, caused by
inflation in raw material costs and delays in synergies from
Rexam integration; and an increase in variable interest rates.
This scenario would lead to a default in 2015 due to the group's
incapacity to service interest, with EBITDA declining to
US$117 million at the point of hypothetical default.

"The stable outlook reflects our opinion that Albea has the
capacity to reduce its debt leverage steadily over the medium
term through an improved operating performance and robust cash
generation.  We anticipate that, following the acquisition of
Rexam, pro forma credit metrics should be at levels commensurate
with the 'B+' rating.  Specifically, this means adjusted debt-to-
EBITDA of less than 5x, and adjusted FFO-to-debt of more than 12%
on a pro forma basis," S&P said.

"We could lower the ratings if Albea's operating performance and
cash generation do not improve enough to allow the group to
deleverage, and credit metrics weaken to levels that we consider
are commensurate with a "highly leveraged" financial risk
profile," S&P said.

If Albea materially reduces its debt leverage, S&P could consider
raising the rating.


FRESENIUS FINANCE: Moody's Rates EUR500MM Sr. Unsec. Notes 'Ba1'
Moody's Investors Service has assigned a Ba1 rating to the
proposed EUR500 million senior unsecured notes to be issued by
Fresenius Finance B.V., a wholly owned subsidiary of Fresenius SE
& Co. KGaA ("FSE" or "the group"). FSE, together with Fresenius
Kabi AG and Fresenius ProServe GmbH, guarantees the notes. The
senior unsecured notes are expected to be used to redeem the
EUR500 million notes maturing at January 2013 and for general
corporate purposes.

Ratings Rationale

"The Ba1 rating on the new senior unsecured notes to be issued at
the level of one of FSE's financing subsidiaries reflects the
instrument's relative position in the capital structure of FSE,"
says Alex Verbov, a Moody's Vice President and lead analyst for
FSE. "The notes benefit from a downstream senior guarantee by
FSE, and upstream guarantees by Fresenius Kabi AG and Fresenius
ProServe GmbH, in line with the outstanding senior unsecured
notes of various finance issuers in the group," adds Mr. Verbov.

Fresenius' current Ba1 Corporate Family Rating reflects (1) the
group's sizeable, and with recent acquisitions further increasing
scale as a global provider of healthcare services and medical
products as well as the recurring nature of a large part of its
revenue and cash flow base; (2) its segmental diversification
within the healthcare market, supported by strong positions in
its four segments, which will be improved even further with the
recently closed acquisition of Fenwal, a privately owned blood-
transfusion equipment manufacturer, for an estimated purchase
price of US$1.1 billion, based on indications that the amount is
lower than the EUR1 billion of equity raised by FSE in May 2012
which are used to finance the acquisition; (3) its track record
of accessing both equity and debt markets to support its
acquisition growth and refinancing needs, and of successfully
deleveraging following large acquisition peaks; and (4) the
attractive valuation of FSE's 31% stake in its dialysis
subsidiary FME.

The rating is constrained by (i) FSE's leverage, with an
estimated pro-forma for recent acquisitions debt/EBITDA ratio of
3.6x on a group basis (Moody's adjusted); (ii) the group's
exposure to regulatory changes, reimbursement and pricing
pressure from governments and healthcare organizations worldwide;
(iii) by relatively weak structural liquidity profile driven by
the need to continuously refinance its debt, despite adequate
short term liquidity cushion; and (iv) a track record of
aggressive acquisition strategy.

Rating assignments/changes:

Issuer: Fresenius Finance B.V.

  Unsecured senior notes due 2020, Assigned Ba1, LGD4, 57%

What Could Change the Rating -- Up

Moody's would consider an upgrade to investment grade only upon a
significant change in financial strategy that would target
debt/EBITDA below 3.0 times, equivalent to reported net
debt/EBITDA (management's measure) well below 2.5 times.

What Could Change the Rating -- Down

The ratings could be subject to downwards pressure if Fresenius'
leverage metrics weaken as exemplified by a debt/EBITDA exceeding
4.0x or CFO to debt falling towards the low teens. Large debt
financed acquisitions or negative free cash flows, materially
reducing the prospect of deleveraging could also be drivers of a
downward rating migration.

The principal methodology used in rating Fresenius Finance B.V.
was the Global Healthcare Service Providers Industry Methodology
published in December 2011. Other methodologies used include Loss
Given Default for Speculative-Grade Non-Financial Companies in
the U.S., Canada and EMEA published in June 2009.

Fresenius SE & Co. KGaA is a global healthcare group providing
products and services for dialysis, the hospital and the medical
care of patients at home. It is a holding company whose major
assets are investments in group companies and inter-company
financing arrangements. Around 55-60% of group sales and EBIT are
generated by Fresenius Medical Care (Ba1 Corporate Family Rating,
stable Outlook), which is fully consolidated into the FSE group,
although only 31% owned, based on managerial control and a
particular ownership legal structure. Fresenius' other
operations, which are majority or fully-owned, are Fresenius Kabi
(infusion therapy, intravenously administered generic drugs and
clinical nutrition), Fresenius Helios (operating private
hospitals in Germany) and Fresenius Vamed (77% owned, hospital
and other healthcare facilities projects and services). Based on
the trailing 12 months figures as per September 30, 2012, the
group reported revenues of EUR18.5 billion.


GLITNIR BANK: Johannesson Pleads Not Guilty in Suit Over Loan
Richard Milne at The Financial Times reports that Jon Asgeir
Johannesson, the Icelandic corporate raider who used to own large
parts of the UK high street, has pleaded not guilty as one of the
most notorious sagas in the collapse of the Icelandic banking
system came to court.

Mr. Johannesson, who was the leading shareholder of failed
Icelandic bank Glitnir, proclaimed his innocence on Monday in
Reykjavik, the FT relates.  Larus Welding, the former Glitnir
chief executive who has already been convicted in a separate
case, and two of the bank's other employees also pleaded not
guilty, the FT discloses.

Monday's case revolves around a ISK6 billion (US$46 million) loan
Glitnir made to a holding company that the bank then repurchased
for only ISK1, the FT notes.

According to the FT, Mr. Johannesson denied the charge that he
was an accomplice to a breach of fiduciary duty by exerting undue
influence on Mr. Welding and another Glitnir employee to approve
the loan.  Of the ISK6 billion loan, prosecutors allege that ISK1
billion was transferred to Mr. Johannesson's personal account, in
part to pay off an overdraft, the FT states.  The three ex-
Glitnir employees are accused of a breach of fiduciary duty, the
FT discloses.

The presiding judge in the latest case adjourned the hearing on
Monday against Mr. Johannesson and the three others for more than
a week, to allow the defense time to read the 6,000 pages of
evidence the special prosecutor had submitted, the FT relates.

Glitnir loaned the ISK6 billion to the holding company to
purchase shares in Aurum Holdings, a jewellery group that was
recently sold to private equity investors and is the owner of
Mappin & Webb and Goldsmiths, the FT recounts.  A civil case,
brought by Glitnir's administrators, started in 2010 and is
ongoing, the FT notes.

                       About Glitnir Banki

Headquartered in Reykjavik, Iceland, Glitnir banki hf -- offers an array of financial services
to corporation, financial institutions, investors and

Judge Stuart Bernstein of the U.S. Bankruptcy Court for
the Southern District Court of New York granted Glitnir
permission to enter into a proceeding under Chapter 15 of the
U.S. bankruptcy code on January 6, 2008.


ANDROMEDA FINANCE: Fitch Keeps Rating on Class A2 Notes at 'BB+'
Fitch Ratings says the more stringent operating requirements for
solar PV (photovoltaic) projects in Italy are likely to be
moderately negative for Andromeda Finance S.r.l's credit profile.

Starting from January 2013, Andromeda PV S.r.l (the project
company) as well as other PV plants in Italy that intend to
continue receiving market revenues from Gestore dei Servizi
Enegetici (GSE) under 'Ritiro Dedicato' arrangement will be
subject to the new regulations 281/2012/R/efr and 493/2012/R/efr.
Under the regulations, electricity generated by PV plants will be
measured against day-ahead hourly forecasts. To the extent that
deviations from the forecast lead to power system imbalances in a
particular pricing zone, the project company will be subject to
certain penalties. In some cases when the forecasts are accurate,
the project company may be eligible for bonuses. The forecasts
will be prepared by GSE, not by the project company as previously
anticipated. Fitch regards this as a less optimal set-up as the
project company will not have control and responsibility over the

It is difficult at this point in time to predict the impact of
potential negative cash flow swings on the project company due to
forecasting penalties. This will depend on several factors such
as (a) the accuracy of GSE's forecasts, (b) the direction of the
forecasting error relating to the Andromeda plants and to what
extent the error contributed to or alleviated the overall power
system imbalances, and (c) the prevailing market price of
imbalances that will be used to determine the rate of penalties.
While the accuracy of GSE forecasts can be tested over a
reasonable time, the latter two variables may fluctuate.

Fitch expects the overall impact on Andromeda PV to be manageable
given that imbalancing charges should amount to a marginal
percentage of total revenues, particularly in light of the fact
that feed-in tariff revenues (approximately 80% of the total)
will not be affected.

Fitch currently maintains these ratings on Andromeda Finance
S.r.l.'s notes:

  * EUR97.6m Class A1 notes due 2028: 'A-'; Outlook Negative
  * EUR97.6m Class A1 notes due 2028 (underlying): 'BB+'; Outlook
  * EUR97.6m Class A2 notes due 2028: 'BB+'; Outlook Negative

Fitch placed Andromeda Finance S.r.l's ratings on Negative
Outlook in June 2012 to reflect, among other things, the concern
that tightening regulatory requirements, along the lines of those
described above, may result in more challenging operating
conditions for large Italian PV plants. By the end of H113, the
mechanics of the regulation should be clearer and some track
record of the accuracy of forecasts should be available, when
Fitch may be able to assess the materiality of the regulatory
changes on the issuer's credit profile.

The transaction is a securitization of two project loans
(Facility A1 and Facility A2) under law 130/99 (the Italian
securitization law). The loan facilities were extended by BNP
Paribas and Societe Generale to Andromeda PV S.r.l. (the project
company) to build and operate two PV plants of 45.1MW and 6.1 MW
(a total 51.2MW) in Montalto di Castro, Italy. The terms of the
loans effectively mirror those of the rated notes, with payments
under Facility A1 and Facility A2 servicing the class A1 notes
and class A2 notes, respectively. The class A1 notes' rating and
Outlook reflect the first-demand, irrevocable and unconditional
guarantee provided by SACE S.p.A (the Italian export credit
agency; 'A-'/Negative). The guarantee provided by SACE to the
issuer is in respect of the project company's obligations under
Facility A1 and not on the class A1 notes directly.

RICHARD GINORI: Declared Bankrupt by Italian Court
Silvia Ognibene at Reuters reports that an Italian court has
declared Richard Ginori 1735 bankrupt, union and company sources
said on Monday, potentially thwarting a takeover by a U.S.-led

The sources told Reuters that a Florence court had submitted its
decision on Monday, effectively blocking a sale procedure by
special administrators appointed to prevent the company going

Burdened by debts, Richard Ginori was first rescued in 2007 by
Italian investor Roberto Villa, who restructured and brought the
group back to the stock market in 2009, Reuters recounts.

But fiscal problems and the impact of the credit squeeze during
the 2008 financial crisis weighed on the relaunch of one of the
symbols of Italian craftsmanship, which has worked with designers
such as Gio Ponti and Missoni, Reuters notes.

In November, the company had said an offer by a consortium led by
American tabletop maker Lenox Corp had been accepted and talks to
define the sale would follow, Reuters relates.

Romania's largest porcelain manufacturer, Apulum, was also due to
take part in the rescue of the company, Reuters discloses.

Richard Ginori is a porcelain maker.  The company has made fine
china tableware for over 270 years.  It has 325 employees.


TRUCKLEASE SA: Fitch Lifts Rating on Class D Notes From 'BB+'
Fitch Ratings has upgraded TruckLease S.A. Compartment No. 1, as

Class B notes upgraded to 'AAAsf' from 'AAsf'; Outlook Stable
Class C notes upgraded to 'AAsf' from 'Asf'; Outlook Stable
Class D notes upgraded to 'Asf' from 'BB+sf'; Outlook Stable
Subordinated Note: unrated

The upgrades reflect the transaction's robust performance as
supported by low defaults and high recoveries in line with
Fitch's expectations, leading to increased credit enhancement due
to its amortizing structure. The ratio of cumulative recoveries
to cumulative defaults is 100% to date. While recoveries from
collateral foreclosure proceeds were approximately 80%-90%, the
structure is supported by an additional reserve provided by the
originator that tops up recoveries if needed. Consequently, no
losses had been reported as of November 2012.

The transaction started amortizing in fully sequential order
having completed a three-month revolving period in May 2011. By
the November 2012 payment date, the class A was paid in full and
the collateral balance had amortized by around 67%, reflecting
the leases' relatively short term.

The cumulative default rate stood at 2.6% of purchased
receivables as of November 2012, which is lower than the agency's
expectation of 9% for that point in time. The transaction's
strong performance is partially due to the benign macro-economic
environment in Germany with unemployment at historically low
levels and GDP growth despite uncertainty in the eurozone.

The fast amortization combined with the solid performance has
boosted credit enhancement levels for all classes since the end
of the short revolving period. Fitch believes that TruckLease No.
1 could therefore withstand even increased stress levels, which
is reflected in the upgrades.

TruckLease S.A. is a Luxembourg securitization vehicle.
Compartment No. 1 was the first issuance from the vehicle,
followed by Compartment No. 2 in February 2012. The transaction
is the securitization of a portfolio of finance lease receivables
originated in Germany by Albis Mobil Lease GmbH (previously NL
Mobil Lease GmbH) and its wholly owned subsidiary UTA-Leasing
GmbH. NL Mobil is ultimately wholly owned by Albis Leasing AG.


FLASH DUTCH: Moody's Assigns 'B2' CFR/PDR; Outlook Stable
Moody's Investors Service assigned a B2 Corporate Family Rating
(CFR) to Flash Dutch 1 B.V., the coatings business recently
acquired by an affiliate of the Carlyle Group from DuPont in a
transaction valued at US$4.9 billion. Moody's assigned B1 and
Caa1 ratings to the company's secured and unsecured debt,
respectively. Proceeds from the transaction of US$3.9 billion
plus US$1.35 billion of cash equity are expected to be used to
fund the cash purchase price of US$4.9 billion, and to pay for
fees and expenses. The outlook is stable.

Ratings Assigned:

Flash Dutch 1 B.V.

Corporate Family Rating -- B2

Probability of Default Rating -- B2

Outlook -- Stable

Flash Dutch 2 B.V. & US Coatings Acquisition Inc. (Co-Borrowers)

5-year $400mm Senior Secured first priority Revolver -- B1 (LGD3,

7-year $2.5b Senior Secured first priority Term Loan (USD 2.3b,
EUR 200mm) -- B1 (LGD3, 34%)

8-year $300mm (Euro equivalent) Senior Secured first priority
Notes-- B1 (LGD3, 34%)

8-year $1.1b 8 year Senior Unsecured Notes -- Caa1 (LGD5, 86%)


The B2 Corporate Family Rating (CFR) assigned to Flash is
constrained by weak pro forma leverage metrics. Upon completion
of the transaction, pro forma debt/EBITDA is expected to be just
under 7x using Moody's year-end 2012 projections -- typically a
"Caa" metric (reflecting Moody's standard analytical
adjustments). Other factors constraining the ratings include the
lack of operating history as a standalone entity, significant
exposure to the OEM automotive industry, recent revenue
contraction, raw material exposure, potential event risk from the
sponsor given the covenant-lite structure, and material European
exposure. Adjusted pro forma debt of US$4.4 billion exceeding
sales of US$4.3 billion, and the company's expected negative
tangible net worth of roughly US$2.6 billion are also viewed as
credit negatives.

The key factors supporting the B2 are the company's leading
positions in its targeted end markets, its high-margin Refinish
segment, technological superiority amongst competitors,
geographic diversity, low capital expenditure requirements,
expected free cash flow generation, and long and stable customer
relationships. Moody's also views the "sticky" nature of the
business as a credit positive, as customers are often buying into
a system, rather than just purchasing a product. Moody's expects
that Flash will experience stable operating profitability over
the next several years, assuming that it maintains its leading
market positions after the acquisition.

Flash's near term liquidity profile is very strong due to the
company's proposed US$400 million revolver, expected cash
balances of roughly US$150 million at close, and projected free
cash flow generation. The covenant-lite structure of the
transaction will provide the company with financial flexibility
for the foreseeable future as the revolver is expected to remain
largely undrawn. The presence of a cash flow sweep (yet to be
finalized), albeit with a sliding scale based on leverage, will
initially aid in debt reduction but may lead to a slower
reduction in debt outstanding and thus more elevated gross debt
financial metrics depending on its terms.

The stable outlook reflects Moody's expectation that Flash will
experience modest growth in its end markets over the next two
years, benefit from lower overhead as a standalone entity,
continue its history of low maintenance capital expenditures, and
generate free cash flow. Moody's could raise the ratings if
leverage were to fall sustainably below 5x and free cash flow to
debt remaining sustainably greater than 5%. Moody's would be
inclined to lower the ratings if the company encountered problems
operating as a standalone entity, began generating negative free
cash flow, EBITDA margins fell closer to 10%, or leverage became
sustainably above 7x.

Structural Considerations

The B1 rating on the guaranteed senior secured revolving credit
facility, term loans, and notes at one notch above the CFR is due
to the presence of the US$1.1 billion of unsecured debt in the
capital structure. Similarly, the significant amount of secured
debt in the capital structure notches the ratings on the
unsecured notes down to Caa1.

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

Flash Dutch 1 B.V. is the new legal entity formed in conjunction
with the acquisition of DuPont's Performance Coatings by an
affiliate of the Carlyle Group. The company is headquartered in
Wilmington, DE, and revenues for 2012 are expected to US$4.2


PBG SA: Speeds Up "Restructuring" & Creditor Talks
According to Bloomberg News' Konrad Krasuski, Dziennik Gazeta
Prawna newspaper reports, citing Jacek Balcer, adviser to PBG
SA's management board, said the company speeded up its
"restructuring" and talks with creditors about debt agreement.

Mr. Balcer declined to say if the company may seek state aid
again, Bloomberg notes.

PBG filed for a PLN200 million loan from ARP state fund in July
2012 seeking financing to resume operations, Bloomberg recounts.
The company is in talks with creditors to change conditions of
its PLN2 billion debt repayment, Bloomberg discloses.

PBG SA is Poland's third largest builder.


VIDA PAPER: Seeks Investor Following Bankruptcy
Pamela Mardle at PrintWeek reports that Vida Paper is looking for
an investor to save the company after it declared bankruptcy at
the end of 2012.

The firm applied to take the company into reconstruction, similar
to US Chapter 11 bankruptcy on November 6, 2012 after its bank
terminated loans with immediate effect, PrintWeek relates.

According to PrintWeek, Vida Paper's liquidator Bertil Stridh, of
Swedish insolvency practitioner Amber, said that despite Vida
Paper claiming it had fulfilled payment obligations, its bank cut
its borrowing limit from SEK100 million (GBP9.5 million) to SEK40
million (GBP3.8 million), and the current owner was not prepared
to raise the additional SEK60 million (GBP5.7 million) funds

The application was accepted by the Swedish courts the same day
and Eric Edstrom of Glimstedt law firm was appointed as
administrator to the company, which produces paper and dissolving
pulp for the textile industry from its Lessebo mill in southern
Sweden, PrintWeek discloses.

On December 12, Vida Paper declared itself bankrupt and all
payment plans to suppliers were ceased as Mr. Stridh was
appointed liquidator, PrintWeek relates.  The company continues
to be fully operational, with all payments being submitted in
cash, PrintWeek notes.

Mr. Stridh, as cited by PrintWeek, said that there are a few
parties interested in taking on the company, and he was in
negotiations to find an investor by the end of January.

Vida Paper is a Swedish paper manufacturer.


* US Global Tax Deal Best Option for Swiss Banks, Says Fitch
A government-led global settlement would be the best option for
all Swiss banks involved in the dispute with US authorities about
the private banks allegedly helping US citizens evade taxes,
Fitch Ratings says.

A global settlement has been pursued by the Swiss government
since early 2012. While potentially costly, in our view it would
remove the risk of potential indictments and other legal action,
including ultimately the exclusion from US dollar clearing. This
would allow the banks to refocus management attention on their
core (non-US) private banking operations.

Repercussions from inquiries and potential indictments by US
authorities could be significant, take a long time to resolve and
ultimately damage the banks' business models. This is despite US
offshore clients typically accounting for a small proportion of
the banks' earnings and assets under management.

Fitch's ratings for Swiss private banks already factor in rising
litigation and settlement expenses relating to tax matters.
However, the ratings could come under pressure if the banks are
unable to adjust their earnings or operating cost bases to
mitigate the rising litigation and regulatory costs or if the
disputes with US and other authorities structurally damage their
competitive position or business model.

The Swiss private banks will have to continue to center their
business models on fully-declared off-shore client assets and on-
shore operations, notably in European markets given the US
investigations and also negotiations between Switzerland and
several European countries (including Germany) about revised
double-taxation agreements. Many banks, in particular the larger
private banks, have pursued this strategy since the late 1990s,
anticipating continued pressure on undeclared client assets.

Smaller, less diversified private banks would be more susceptible
to country-specific developments, such as temporary tax
amnesties. For the larger private banks we rate, their operations
are geographically diversified, notably in the Middle East and
Asia, thereby reducing their reliance on single European markets
such as Italy, France or Germany.

Following the prominent US$780 million settlement between UBS AG
and US authorities in early 2009, US authorities have since mid-
2011 started inquiries involving a number of other Swiss private
banks including Credit Suisse, Zuercher Kantonalbank, Julius
Baer, Pictet & Cie., Basler Kantonalbank and Wegelin & Co.
Privatbankiers (Wegelin).

In January 2012, Wegelin sold its non-US business to
Switzerland's Raiffeisen, shortly before the bank was officially
indicted by US authorities in February 2012. Last week, Wegelin
pleaded guilty to helping US citizens evade paying taxes and paid
US$74 million in fines and restitutions. Following the guilty
plea, the bank will cease to operate.


PETKIM PETROKIMYA: Fitch Affirms, Withdraws 'B+' Long-Term IDRs
Fitch Ratings has affirmed Petkim Petrokimya Holdings A.S.'s
Long-term foreign and local currency Issuer Default Rating (IDRs)
at 'B+' and National Long-term rating at 'A-(tur)'. The Outlook
on the Long-term ratings is Negative. The agency has
simultaneously withdrawn all the ratings.

Fitch has withdrawn the ratings as Petkim has chosen to stop
participating in the rating process. Therefore, Fitch will no
longer have sufficient information to maintain the ratings.
Accordingly, Fitch will no longer provide ratings or analytical
coverage for Petkim.

U N I T E D   K I N G D O M

BANK OF SCOTLAND: Amendments No Impact on Moody's 'D+' BFSR
Moody's Investors Service has announced that the amendments made
to several transaction documents for Bank of Scotland's social
housing covered bonds, will not, in and of itself and at this
time, result in a reduction or withdrawal of the current Aaa
ratings of the social housing covered bonds issued by the Bank of
Scotland plc (A2 deposits, outlook negative; BFSR D+/BCA baa3,
outlook stable; Prime-1).

Moody's believes that the amendments do not have an adverse
effect on the credit quality of the notes such that the Moody's
ratings are impacted. Moody's does not express an opinion as to
whether the amendment could have other, non credit-related

The principal methodology used in this rating was "Moody's
Approach to Rating Covered Bonds" published in July 2012.

Other methodologies and factors that may have been considered in
the process of rating the Issuers' notes may also be found in the
Rating Methodologies sub-directory on Moody's Web site.

GULISTAN CARPET: Bankrupt Owner to Shut Down Aberdeen Factory
Chris Bagley at Triangle Business Journal reports that the
corporate owner of Gulistan Carpet filed for bankruptcy Monday
morning and is closing down its factory in Aberdeen, which
employed 400 people just a couple of months ago.

The corporate entity behind Gulistan, Hampton Capital Partners
LLC, cited nearly US$51 million in liabilities on its Chapter 11
bankruptcy filing Monday, Triangle Business Journal relates.

Its US$27.8 million in assets included the US$3.4 million carpet
factory in Aberdeen, a smaller building in Scotland County,
US$11 million in inventory, US$4.4 million in machinery and
equipment and US$8.4 million in accounts receivable, Triangle
Business Journal discloses.

According to Triangle Business Journal, its largest outside
creditor is Bank of America, with a US$10 million claim.  It also
owes US$18.2 million to its own corporate owner, the Roanake,
Va.-area carpet manufacturer Ronile Inc., Triangle Business
Journal notes.

KENDAL RIVERSIDE: In Administration, Business as Usual
The Westmoreland Gazette reports that Kendal Riverside Limited
was placed into administration on December 28.

John Hansen -- -- and Stuart Irwin -- -- of KPMG, have been appointed joint

A spokesman for Kendal Riverside said: "The affairs, business and
property of the company are being managed by the joint
administrators. . . . The centre will continue to operate as
normal and it is firmly business as usual," according to The
Westmoreland Gazette.

Kendal Riverside Limited is a GBP100 million complex opened in
July 2010, with the company stating at that time that it aimed to
attract more than 1.5 million visitors and up to 4,000 coaches a

SHERIDAN MILLENNIUM: Owner Declared Bankrupt After Administration
Bridging and Commercial Distributor, citing Irish News, reports
that Peter Curistan has been made personally bankrupt after debts
of GBP50 million meant his property empire was placed into

Mr. Curistan met his fate on December 21, 2012 by a debtor's
petition, the newspaper reported, following a two-year demise of
his investments, Bridging and Commercial Distributor relates.

In 2010, Mr. Curistan's Sheridan Millennium property empire was
placed into administration by Anglo Irish Bank with recorded
debts in excess of GBP50 million, Bridging and Commercial
Distributor recounts.

According to Bridging and Commercial Distributor, administrator
KPMG has been in control of Sheridan Millennium since but
Mr. Curistan continues to fight for ownership of it.

The newspaper further reported that Mr. Curistan is also fighting
a legal battle against the Irish Bank Resolution Corporation
(IBRC) -- which was formerly Anglo Irish Bank -- as he alleged
that the Bank was negligent when finding a buyer for the site,
alongside claims of fraudulent misrepresentation, Bridging and
Commercial Distributor notes.

Despite claiming in 2011 that Anglo Irish Bank's appointment of
KPMG was unlawful, Mr. Curistan failed to have the administrators
removed, Bridging and Commercial Distributor states.

According to Bridging and Commercial Distributor, he has since
been keen to make big lenders "accountable" for their behavior in
such circumstances, claiming that the way in which they have
treated him has "breached the law".

The Dublin High Court ruled in September 2012 that Mr. Curistan
must repay GBP8.3 million to the IBRC, Bridging and Commercial
Distributor recounts.

WEAVERING CAPITAL: Director Appears in Court Over Collapse
Jeremy Hodges at Bloomberg News reports that Weavering Capital
(UK) Ltd. founding director Magnus Peterson appeared in a London
court on Monday facing six charges of fraud, forgery, fraudulent
trading and false accounting over the collapse of the hedge fund
in 2009.

According to Bloomberg, Judge Michael Snow ordered Mr. Peterson,
49, to appear at a higher criminal court in 12 weeks and
surrender his passport to the Serious Fraud Office within seven

The defunct fund had about US$640 million under management in
late 2008 before discovering the counterparty for its biggest
trading position was controlled by the fund's manager, Bloomberg

Prosecutors at the SFO dropped their initial criminal probe into
Mr. Peterson over concerns it wouldn't win a conviction,
Bloomberg discloses.  The SFO reopened the case in July after the
agency appointed a new director, according to Bloomberg.

Bloomberg relates that Nicholas Bull, the agency's lawyer, said
in court on Monday that if convicted of fraud Mr. Peterson, a
Swedish national, could spend as much as 10 years in prison.

The hedge fund's administrators won a lawsuit to recover US$450
million from Mr. Peterson and other former employees in May,
Bloomberg recounts.

Weavering Capital (UK) Limited is an English incorporated
investment management firm, which went into administration on
March 19, 2009, whose primary function was to act as investment
advisor to a Cayman Islands incorporated hedge fund, Weavering
Macro Fixed Income Fund Limited ("the Macro Fund").  Liquidators
were appointed over the Macro Fund on March 19, 2009.  The Macro
Fund was understood to have funds under management of around
US$639 million in late 2008.

WILLIAM HILL: S&P Affirms 'BB+' Corp. Rating; Outlook Stable
Standard & Poor's Ratings Services said that it affirmed at 'BB+'
its long-term corporate credit rating on U.K. bookmaker and
gaming company William Hill PLC.  The outlook is stable.

At the same time, S&P affirmed the issue rating on William Hill's
senior unsecured notes at 'BB+'.  The recovery rating on the
notes is unchanged at '3', reflecting S&P's expectation of
meaningful (50%-70%) recovery in an event of default.

The affirmation follows William Hill's announcement of the
proposed debt-funded acquisition of certain parts of online
sports betting company Sportingbet PLC (not rated) for a total
cash consideration of EUR454 million.  "It reflects our view that
the transaction will not alter William Hill's "satisfactory"
business risk and "significant" financial risk profiles.  In our
view, the proposed transaction will enhance the company's
international diversification and online gaming presence.
However, the proposed transaction will not substantially reduce
William Hill's high concentration on its core U.K. market, where
it currently generates more than 90% of its revenues," S&P said.

"In our view, William Hill will be able to maintain revenue
growth throughout the economic cycle thanks to growth in its
online business and from gaming machines, and due to its
recession-resilient retail business model.  Despite the
continuing decline in the company's EBITDA margin, we consider
that William Hill is reasonably well-placed to withstand ongoing
macroeconomic pressures in the U.K., supported by a large network
of well-located betting shops, strong brand, and increasing
international diversity," S&P added.

"We could lower the rating if debt-funded acquisitions or adverse
tax or regulatory developments cause William Hill's earnings
capacity to decline faster than we currently anticipate; if
substantial shareholder returns or acquisitions increase adjusted
debt to EBITDA to more than 4x; or if the upcoming need to fund
ongoing external acquisitions with debt weakens liquidity to
below what we assess as "adequate" under our criteria.

Rating upside is limited by management's focus on external growth
and appetite for debt-funded acquisitions.  A positive movement
in the rating is likely to be linked to the adoption of a more
conservative financial policy and a commitment from William Hill
to maintain adjusted debt to EBITDA of less than 3x and FFO to
debt of more than 25%.  S&P could also take a positive rating
action if the company's strong operating performance continues,
coupled with increasing diversification of revenue sources,
resulting in a sustainably improved business risk profile.


* EUROPE: 2013 to Remain Challenging for Western Telecoms Cos.
Fitch Ratings believes that 2013 will remain challenging for
Western European telecoms companies due to regulatory and
competitive pressures, with the sector exhibiting flat to
declining revenue growth, EBITDA margins under pressure and
gradually increasing leverage.

In a report discussing the key rated companies across the Western
European telecoms and cable sector, Fitch highlights that highly
rated issuers in the sector tend to be larger, with strong local
market shares in multiple countries, and experienced management
teams which are able to react to market dynamics. Lower rated
companies tend to be smaller and less diversified, and more
exposed to cash flow volatility caused by regulation, competition
and shifts in technology, or because they are burdened by debt.

Telecoms operators with higher market shares in a particular
geography benefit from scale economies relating to network
efficiency, marketing and branding. Substantial fixed costs also
act as a barrier to entry. The ownership of multiple platforms in
a given country should allow operators to mix product offerings
more easily to suit shifting customer behavior. Regulation within
each market determines the extent of these scale benefits.

Cable operators' superior network technology gives them a solid
competitive position relative to the copper-based networks of the
incumbent operators. This leads to strong pre-dividend free cash
flow generation and, subject to sensible shareholder remuneration
policies, should reduce leverage over the medium-term.


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., Washington, D.C., 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 2013.  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$775 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 215-945-7000 or Nina Novak at

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