TCREUR_Public/130125.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

            Friday, January 25, 2013, Vol. 14, No. 18

                            Headlines



F R A N C E

VIRGIN MEGASTORE: Bredin Prat Takes Lead Role on Insolvency


G E R M A N Y

BIOLITEC AG: U.S. Unit Seeks Bankruptcy Due to Lawsuits
DEIKON: Insolvent German Supermarket Put Up For Sale
SOVELLO AG: Auctions Off Production Facilities


I R E L A N D

BLACKTIE: Faces Liquidation Following Bleak Trading


I T A L Y

BANCA MONTE: Hid Documents on Transactions, Bank of Italy Says
* ITALY: Moody's Says RMBS Performance Deteriorated in Nov. 2012


L U X E M B O U R G

TRINSEO MATERIALS: Moody's Affirms 'B1' CFR; Outlook Negative


N E T H E R L A N D S

HARBOURMASTER PRO-RATA: Fitch Affirms 'B' Rating on Cl. B2 Notes


R O M A N I A

OLTCHIM SA: Insolvency Request Set to Be Sent to Valcea Court


R U S S I A

ROSPROMBANK: Moody's Reviews 'E+' BFSR for Downgrade
ROSPROMBANK: Moody's Reviews National Scale Rating for Downgrade
SBERBANK OF RUSSIA: Fitch Affirms 'BB+' Subordinated Debt Rating
SUKHOI CIVIL: Fitch Affirms 'BB' Long-Term Issuer Default Rating


U K R A I N E

AEROSVIT: Calls on Trade Unions Leaders to Agree on Pay Cuts


U N I T E D   K I N G D O M

ANGEL MINING: Intends to Appoint Administrator
BROOK HOTELS: In Administration, Shrinks to 5 Properties
ETHEL AUSTIN: In Administration for the Fifth Time
HOUSE OF SHER: In Administration; 10 Jobs Affected
JACKS FAMOUS SUPPLIES: Falls Into Administration, Seeks Buyer

JESSOPS PLC: Hilco In Talks with Administrator to Buy Brand
PANASONIC: Moody's Says Units Close to 'Ba1' Credit Assessment
JAGUAR LAND: Fitch Rates Senior Unsecured Notes 'BB-(EXP)'


X X X X X X X X

* EMEA Corporates to Limit Cash Erosion in 2013, Fitch Says
* BOOK REVIEW: Performance Evaluation of Hedge Funds


                            *********


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F R A N C E
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VIRGIN MEGASTORE: Bredin Prat Takes Lead Role on Insolvency
-----------------------------------------------------------
Joanne Harris at The Lawyer reports that Bredin Prat partner
Olivier Puech has picked up a mandate from collapsed French
entertainment company Virgin Megastore just days after joining
the firm from Gide Loyrette Nouel.

Virgin Megastore, which is majority owned by private equity group
Butler Capital Partners, filed for insolvency last week and was
put into court-appointed administration on January 14, The Lawyer
discloses.

Like its UK counterpart HMV, the retailer has struggled in the
face of competition from online entertainment outlets and has
debt estimated at EUR22 million, according to the report.

The Lawyer says Mr. Puech is advising Virgin Megastore on its
administration, having only started work at Bredin Prat on
January 11.

According to the report, the Paris Commercial Court (Greffe du
Tribunal du Commerce de Paris) appointed administrator
Gerard Philippot to oversee the administration process.  The
company has four months to try to put its affairs in order, the
report notes.

Virgin Megastore's financial difficulties have led to protests by
employees against threatened job cuts, the report says.

The group, which has annual sales of nearly EUR300 million
(US$392 million), has been loss-making for the past four years,
Reuters relates.  It has blamed its problems on rental costs in
high-profile city center locations, falling CD and DVD sales and
a recent drop in book sales, Reuters discloses.

Virgin Megastore France is the owner of France's chain of 26
Virgin Megastores.



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G E R M A N Y
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BIOLITEC AG: U.S. Unit Seeks Bankruptcy Due to Lawsuits
-------------------------------------------------------
Biolitec, Inc., the U.S. arm of Germany-based fiber optic devices
manufacturer Biolitec AG, has sought Chapter 11 bankruptcy
protection (Bankr. D.N.J. Case No. 13-11157) to stop competitor
AngioDynamics Inc. from collecting the $23 million it won in a
breach of contract lawsuit.

In papers filed in a Newark, New Jersey bankruptcy Court,
Biolitec says that due to management errors made by former chief
operating officer Kelly Moran, it sustained operating losses in
2008 and 2009 and incurred more than US$12 million in litigation
defense fees over the last six years.  Financial support from the
parent allowed the Debtor to continue operating.

Brian K. Foley, the present chief operating officer, says the
Debtor returned to profitability in fiscal years 2010 through the
present.  While most of the crippling litigation has been
resolved, two set of suits still continue:

    1. The ADI Litigation. Lawsuits brought by a competitor,
       AngioDynamics, Inc. ("ADI"), in federal court in New York
       and Massachusetts to recover defense and liability costs
       in now-settled underlying patent infringement litigation;
       and

    2. The Moran/Morello Litigation. Lawsuits brought by the
       Kelly Moran, and his wife, Carol Morello, each of whom has
       a 5% ownership interest in the Debtor.  Both have asserted
       claims against, inter alia, the Debtor under the New
       Jersey Oppressed Shareholder Act and the Massachusetts
       Wage Act.

According to Mr. Foley, the ADI Litigation presents a material
threat to the Debtor's ability to continue operating.  Recent
developments in that litigation have forced the Debtor to
commence the Chapter 11 case to preserve the value of its
business.

On Nov. 8, 2012, the U.S. District Court for the Northern
District of New York entered a partial final judgment in favor of
ADI for US$23,156,287.  The judgment arises from a Sept. 27, 2011
memorandum decision that granted ADI's claim that the Debtor
breached a "knowledge qualified" representation in an April 1,
2002 Supply and Distribution Agreement.

The Debtor has appealed the judgment and expects that appeal to
result in reversal of the ADI judgment and dismissal of ADI's
breach of contract lawsuit.  The Debtor filed its opening brief
with the U.S. Court of Appeals for the Second Circuit on Jan. 18.

                          Lift Stay Motion

The Debtor has filed a number of first day motions, consisting of
administrative motions and motions relating to the Debtor's
business operations.

Among the first day motions is an application to lift the
automatic stay in order to permit the Debtor to continue to
expeditiously prosecute the Appeal during the pendency of this
Chapter 11 case.

The Debtor also seeks entry of an order extending its time to
file its schedules of assets and liabilities and statements of
financial affairs for a period of 15 days, without prejudice to
the Debtor's ability to request additional time if necessary.

The Debtor seeks approval to pay the prepetition wages and
benefits owed to employees.  The Debtor employs 24 individuals, 8
of whom are paid on an hourly basis.

Moreover, the Debtor filed motions to continue its existing cash
management system, prohibit utilities from discontinuing service,
pay prepetition claims of taxing authorities.

The Debtor is seeking expedited consideration of its first day
motions.

                        About Biolitec Inc.

Biolitec Inc. is a member of the Biolitec Group, a multinational
group of affiliated companies that is a global market leader in
the manufacture and distribution of fiber optic devices and
products such as medical lasers and fibers, photo-pharmaceuticals
and industrial fiber optics.  Biolitec AG, a German public
company listed on the highly regulated Prime Standard segment of
the Frankfurt stock exchange, is the ultimate parent of the
Debtor.


DEIKON: Insolvent German Supermarket Put Up For Sale
----------------------------------------------------
Property Investor Europe reports that Berlin investment manager
CR has been mandated to sell the real estate portfolio of
Cologne-based supermarket investor Deikon out of insolvency.
Industry specialists value the portfolio at around
EUR150 million, while the administrator hopes to achieve EUR175
million, the report discloses.


SOVELLO AG: Auctions Off Production Facilities
----------------------------------------------
Solar Industry reports that auction operations have begun in
Bitterfeld-Wolfen, Germany, to sell production facilities and
business equipment formerly owned by PV manufacturer Sovello
GmbH, which filed for insolvency in May 2012.

Insolvency administrator Lucas F. Flother has contracted Hamburg-
based auctioneer Auktionshaus Wilhelm Dechow GmbH to conduct the
sales, the report says.

In all, the report notes, two online auctions will see
approximately 3,200 items going on sale.  According to the
report, the auction will include sector-specific production lines
and systems, including units manufactured by Centrotherm, Jonas &
Redmann, Reiss, Innolas, Applied Materials and Schmid.

As reported in the Troubled Company Reporter-Europe on May 16,
2012, Bloomberg News said Sovello GmbH filed for insolvency and
will attempt to restructure in the process.  According to
Bloomberg, Sovello said the company cannot pay its debts and has
asked the Dessau insolvency court to be allowed to restructure
under its management.  The company said that attorney Bernd
Depping has been appointed as preliminary administrator.

Sovello GmbH is a solar-power company based in Bitterfeld-Wolfen,
Germany.



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I R E L A N D
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BLACKTIE: Faces Liquidation Following Bleak Trading
---------------------------------------------------
Donal O'Donovan at Independent.ie reports that Blacktie will go
into liquidation at the end of next week.

January has been a bleak month for the retail trade, despite
successful Christmas trading, Independent.ie discloses.

The company closed its Cork branch late last year, Independent.ie
recounts.

The shops in Dublin, Limerick and Waterford will trade as normal
pending the appointment of a liquidator, Independent.ie
discloses.

Blacktie, as cited by Independent.ie, said that it is hoped a
buyer will be found.

Whether that happens will ultimately be a decision taken by
whoever is appointed as liquidator, Independent.ie notes.  They
will have the final say in whether the best way to get money back
for creditors is to try to sell Blacktie as a going concern, or
shut the chain and sell off its assets, the report states.

Niall O'Farrell stepped down after four years as a judge on the
long-running RTE "Dragons' Den" series to focus on his
investments, including restructuring Blacktie, last October,
Independent.ie recounts.

On Jan. 23, he told his staff of the decision to seek a
liquidator, which was made after consulting with the company's
bankers, Independent.ie relates.

He blamed a combination of market and economic factors,
Independent.ie discloses.  According to the news source, Blacktie
said in a statement that among those factors are a declining
market for tux hire, competition from low-cost retailers, as well
as high commercial rates and rising utility bills.

A creditors' meeting will be held on Friday, Feb. 1, at the
Spawell Leisure Complex in Templeogue in Dublin Independent.ie
discloses.  Those who are owed money will be asked to back
liquidation, Independent.ie notes.

Blacktie is an Irish tuxedo-hire chain.



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I T A L Y
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BANCA MONTE: Hid Documents on Transactions, Bank of Italy Says
--------------------------------------------------------------
Sonia Sirletti and Elisa Martinuzzi at Bloomberg News report that
Banca Monte dei Paschi di Siena SpA, the Italian bank seeking a
second state bailout in four years, hid documents from regulators
on financial transactions that may prompt the lender to restate
profit.

"The nature of some transactions involving Monte dei Paschi di
Siena reported by the press has been disclosed only recently
after hidden documents were found by new executives (BMPS),"
Bloomberg quotes the Bank of Italy as saying in an e-mailed
statement on Wednesday.  "The transactions are now being reviewed
by the central bank's oversight division as well as judicial
authorities."

Monte Paschi said on Jan. 17, it will review its accounts after
it was reported that the lender engaged in a derivative
transaction with Deutsche Bank AG in 2008, dubbed "Project
Santorini," that obscured losses before it sought a government
bailout the next year, Bloomberg recounts.  The Siena-based bank
said in a statement on Wednesday it is reviewing three money-
losing derivative deals, dubbed Santorini, Alexandria and Nota
Italia, which led to losses for the bank, Bloomberg relates.

Executives at Monte Paschi, the world's oldest bank, are under
pressure from investors to fully disclose losses from derivative
transactions after saying in November it needed an additional
EUR500 million (US$666 million) of government money to bolster
capital because of the contracts, Bloomberg discloses.
Shareholders meet this week to approve two capital increases
required by the Treasury for the lender to get that aid,
Bloomberg relates.

According to Bloomberg, Il Messaggero newspaper, citing an
interview with Chief Executive Officer Fabrizio Viola, reported
yesterday that Monte Paschi's losses from the transactions under
review were about EUR720 million.

Monte Paschi, which may decide to renegotiate the deals, said aid
already requested from the government will cover the impact of
the transactions on its accounts, Bloomberg notes.

Shareholders was set to vote today, Jan. 25, on two capital
raisings allowing Monte Paschi to qualify for the additional
funds that will bring the cost of its bailout to EUR3.9 billion,
Bloomberg discloses.

As reported by the Troubled Company Reporter-Europe on
December 18, 2012, Bloomberg News related that Banca Monte dei
Paschi di Siena SpA won temporary European Union approval for a
EUR3.9 billion (US$5.1 billion) recapitalization from the Italian
government to help it meet minimum capital requirements.  The
European Commission said in an e-mailed statement that Monte
Paschi must submit a restructuring plan within six months before
regulators can make a final decision on the state aid, Bloomberg
disclosed.

Banca Monte dei Paschi di Siena SpA -- http://www.mps.it/-- is
an Italy-based company engaged in the banking sector.  It
provides traditional banking services, asset management and
private banking, including life insurance, pension funds and
investment trusts.  In addition, it offers investment banking,
including project finance, merchant banking and financial
advisory services.  The Company comprises more than 3,000
branches, and a structure of channels of distribution.  Banca
Monte dei Paschi di Siena Group has subsidiaries located
throughout Italy, Europe, America, Asia and North Africa.  It has
numerous subsidiaries, including Mps Sim SpA, MPS Capital
Services Banca per le Imprese SpA, MPS Banca Personale SpA, Banca
Toscana SpA, Monte Paschi Ireland Ltd. and Banca MP Belgio SpA.


* ITALY: Moody's Says RMBS Performance Deteriorated in Nov. 2012
----------------------------------------------------------------
The Italian residential mortgage-backed securities (RMBS) market
deteriorated in November 2012, according to the latest indices
published by Moody's Investors Service.

The overall cumulative default index rose quite significantly to
3.1% in November 2012 from 2.4% a year earlier.

The 60+ day delinquencies index increased slightly to 2.4% in
November 2012 from 2.1% a year earlier. However, the delinquency
trend in the 2005 and 2009 vintages showed quite a significant
increase, which is mainly due to the performance deterioration in
Sestante Finance S.r.l. Series 2005, Vela Home S.r.l. Series 3
and BPL Mortgages Series 4. Similarly, the 90+ day delinquencies
index rose to 1.8% in November 2012 from 1.6% a year earlier.

The prepayment rate index continued its decline, standing at 2.4%
in November 2012.

Moody's outlook for Italian RMBS is negative (see "European ABS
and RMBS: 2013 Outlook", December 2012). Moody's expects that the
annual average unemployment rate in Italy will increase to 11.5%
in 2013 from 11.0% in 2012 (see "Country Statistics: Italy,
Government of", 30 November 2012), which will not help
performance to improve in the Italian RMBS indices.

Italian house prices will continue to fall in 2013 which will
increase losses on foreclosed properties.

On November 27, 2012, Moody's downgraded the ratings of three
senior notes and 10 junior notes, in seven Italian RMBS
transactions. The downgrades are driven primarily by the revision
of key collateral assumptions following Moody's reassessment of
the entire Italian RMBS sector. At the same time, Moody's also
revised key collateral assumptions in 71 other transactions,
which did not result in any rating change due to sufficient
credit enhancement. All ratings downgraded in this action remain
on review for downgrade pending the reassessment of the impact of
country credit deterioration on structured finance transactions
and, in some cases, exposure to counterparties.

As of November 2012, 122 transactions are outstanding with a
total outstanding portfolio balance of EUR84 billion, down from
EUR90billion in August 2012, mainly due to the full repayment of
three transactions (Alta Padovana Finance S.r.l. - Series 2009,
Argo Mortgage S.r.l., and Adriano Finance S.r.l. Series 3) with a
total portfolio outstanding amount of around EUR4 billion.

Moody's indices are usually published mid-month and can be found
on www.moodys.com in the Structured Finance sub-directory under
the Research & Ratings tab. In the left-hand side bar, under the
Research Type category heading, select Statistical Data. Finally,
on the Research tab in the middle of your screen, select the
third option, Indices & Data.

http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF314946

In addition, Moody's publishes a weekly summary of structured
finance credit, ratings and methodologies, available to all
registered users of its website, at www.moodys.com/SFQuickCheck.



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L U X E M B O U R G
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TRINSEO MATERIALS: Moody's Affirms 'B1' CFR; Outlook Negative
-------------------------------------------------------------
Moody's Investors Service assigned a B1 rating to Trinseo
Materials Operating S.C.A.'s (TMO) US$1.325 billion senior
secured notes due 2019. Moody's also affirmed the corporate
family rating (CFR) of Trinseo S.A. at B1. Proceeds from the
transaction are expected to be used to repay the company's
outstanding term loan and revolver balances. The outlook remains
negative.

"Trinseo's financial performance remains weak for the B1 rating,"
said John Rogers, Senior Vice President at Moody's. "The recent
completion of the SSBR expansion and modest improvements in its
other product lines should allow the company to improve earnings
and cash flow. However, if earning don't improve in the first
half of 2013, we could lower the rating."

Ratings assigned:

Trinseo Materials Operating S.C.A.

  US$1.325 billion 6-year senior secured notes -- B1 (LGD4, 55%)

Ratings affirmed:

Trinseo S.A.

  Corporate Family Rating -- B1

  Probability of Default Rating -- B1-PD

  US$1.4 billion senior secured term loan due 2017*

Outlook -- Negative

* The term loan rating will be withdrawn upon completion of the
   refinancing

Ratings Rationale

Trinseo is weakly positioned in the B1 category due to weak
financial performance caused by margin volatility. The CFR
reflects Trinseo's narrow portfolio of commodity and quasi-
commodity products, weak credit metrics, exposure to volatile
feedstock prices and a limited amount of cash equity. Trinseo's
credit profile is supported by its size in terms of revenue,
leading market positions in three of its four product lines
(polycarbonates is the exception), relatively stable volume
demand in its emulsion polymers and rubber businesses, an
experienced management team and the success in lowering fixed
costs since the acquisition by Bain in 2010. While September 2012
LTM credit metrics are significantly depressed due to the weak
fourth quarter in 2011, Debt/EBITDA (including Moody's standard
adjustments) is still expected to be above 6x at year-end 2012.

The negative outlook reflects concerns over the potential for
continued volatility in financial performance that may cause
financial metrics to remain weaker than would be appropriate for
the B1 rating. To the extent that continued earnings volatility
causes Trinseo to report earnings of below US$50 million in more
than one quarter in any four quarter period prior to an
additional US$200-US$300 million of debt reduction from free cash
flow, Moody's could lower Trinseo's rating by a notch to B2. The
ratings have limited upside at this time, but could be raised if
Net Debt/EBITDA falls below 4.0x and is expected to remain at
that level for a sustained period.

Trinseo has good liquidity primarily supported by cash balances
expected to be roughly US$140 million at the close of the
transaction, its proposed US$300 million revolver and a US$160
million A/R securitization that is currently capped at roughly
Us$100 million due to the availability of qualified receivables.

Trinseo S.A. is the world's largest producer of styrene butadiene
(SB) latex, the largest European producer of synthetic rubber
(solution styrene butadiene rubber -- SSBR), the third largest
global producer of polystyrene and a leading producer of
polycarbonate resins and blends. Trinseo had revenues of roughly
US$5.5 billion for the last four quarters ending September 30,
2012. Trinseo is owned by an affiliate of Bain Capital and was
acquired from The Dow Chemical Company in 2010.

The principal methodology used in rating Trinseo 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.



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HARBOURMASTER PRO-RATA: Fitch Affirms 'B' Rating on Cl. B2 Notes
----------------------------------------------------------------
Fitch Ratings has affirmed Harbourmaster Pro-Rata CLO 2 B.V.'s
notes, as follows:

Class A1VF: affirmed at 'AAAsf'; Outlook Stable
Class A1T (XS0262176364): affirmed at 'AAAsf'; Outlook Stable
Class A2 (XS0262176794): affirmed at 'AA+sf'; Outlook Stable
Class A3 (XS0262176877): affirmed at 'A+sf'; Outlook Negative
Class A4E (XS0262177172): affirmed at 'Asf'; Outlook Negative
Class A4F (XS0262177255): affirmed at 'Asf'; Outlook Negative
Class B1E (XS0262177339): affirmed at 'BBBsf'; Outlook Negative
Class B1F (XS0262640575): affirmed at 'BBBsf'; Outlook Negative
Class B2 (XS0262177412): affirmed at 'Bsf'; Outlook Negative
Class S1 (XS0262178907): affirmed at 'BBBsf'; Outlook Negative
Class S4 (XS0262179467): affirmed at 'Asf'; Outlook Negative

The affirmation reflects levels of credit enhancement
commensurate with the ratings and the transaction's stable
performance since the last review in February 2012. The ratings
of the class S1 and S4 combination notes have been affirmed in
line with the affirmations of their respective rated component
notes. The re-investment period ends in October 2013 and the
notes would benefit from structural deleveraging post re-
investment.

The Fitch weighted average rating factor has improved to 28.6 as
of 31 December 2012 from 29.80 as of last review, below its
threshold of 30. Assets rated 'CCC' or below are reported at
8.53% of the portfolio, down from 10.08% at the last review.
Currently there are no defaulted assets in the portfolio. The
weighted average life of the portfolio stands at 3.84 years and
there are no long-dated assets in the portfolio. All the
overcollateralization tests and the interest coverage test are
passing above their required thresholds. The weighted average
spread on the portfolio continues to increase, reflecting amend
and extend activity.

The Negative Outlooks on the mezzanine and junior notes reflect
their vulnerability to a clustering of defaults and negative
rating migration in the European leveraged loan market due to the
potential sensitivity to the leveraged loan refinancing wall.

As part of its analysis, Fitch considered the sensitivity of the
notes' ratings to the transaction's exposure to countries where
Fitch has imposed a country rating cap less than the ratings on
any notes in the transaction. These countries are currently
Spain, Ireland, Portugal and Greece, but may include additional
countries if there is sovereign rating migration. Fitch believes
that exposure of up to 15% of the total investment amount to
these countries, under the same average portfolio profile and
assuming the current ratings on the UK and eurozone countries are
stable, would not have a material negative impact on the notes'
ratings.

Harbourmaster Pro-Rata CLO 2 is a securitization of mainly
European senior secured loans with the total note issuance of
EUR602 million invested in a target portfolio of EUR587.5
million. The portfolio is actively managed by Harbourmaster
Capital Limited and advised by Harbourmaster Capital Management
Limited.



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R O M A N I A
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OLTCHIM SA: Insolvency Request Set to Be Sent to Valcea Court
-------------------------------------------------------------
According to Romania Insider, Mediafax, citing Economy Minister
Varujan Vosganian, reports that Oltchim will enter insolvency,
and the request for insolvency will soon be sent to the Valcea
court.

The board of Oltchim, which went through a failed privatization
last year, was set to decide on the insolvency on Jan. 23,
Romania Insider notes.

Romania Insider relates that Romania media, quoting sourcing
close to the talks, said Prime Minister Victor Ponta had talked
to the International Monetary Fund officials about Oltchim and
concluded that insolvency was the main solution to make
privatization of the company easier.

Oltchim, Romania Insider says, needs restructuring, and layoffs
will also be part of the process.

The bid for Oltchim was won last year by media mogul Dan
Diaconescu, who failed to pay the EUR45 million he had pledged to
offer, Romania Insider recounts.

Oltchim SA is a state-owned chemical company.



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R U S S I A
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ROSPROMBANK: Moody's Reviews 'E+' BFSR for Downgrade
----------------------------------------------------
Moody's Investors Service has placed on review for downgrade the
B3 local and foreign currency deposit ratings, and E+ BFSR
(mapping to b3 standalone credit strength ) of Russia-based
Rosprombank.

Moody's assessment is primarily based on Rosprombank's monthly
financial statements prepared under local statutory accounting
rules (Russian Accounting Standards or RAS), as well as its
audited financial statements for 2011 prepared under IFRS.

Ratings Rationale

Moody's decision to place Rosprombank's ratings on review for
downgrade reflects the rating agency's concerns regarding the
sustainability of the bank's commercial franchise and financial
fundamentals in light of the continuing problems at Rosprombank's
controlling shareholder - Cyprus Popular Bank Public Co Ltd.
Indeed, Moody's on January 14, 2013 has downgraded Cyprus Popular
Bank ratings to Caa2 negative (deposit ratings and outlook) and
E/ca (BFSR/standalone credit strength).

While Moody's understands that Rosprombank had no credit exposure
to Cyprus Popular Bank (including Cypriot and Greek securities)
at YE2012, and its reliance on parental funding was low, the
rating agency considers that the following risks could
materialise for Rosprombank in the short- to medium-term:

(1) Potential volatility in customer deposits, which could be
triggered by negative news related to the parent bank. Moody's
notes that Rosprombank has a somewhat concentrated funding base,
with the top-20 depositors accounting for around one-third of
total deposits at YE2012 (excluding subordinated debt). According
to monthly RAS statements, the bank's retail deposits have shown
some volatility in 2012.

(2) While Rosprombank's credit exposure (including off balance
sheet) to Cyprus Popular Bank was zero at YE2012, both banks have
a history of conducting large intragroup transactions. Moody's
does not exclude that such transactions could occur in the
future, potentially leading to higher risks for Rosprombank.

(3) Uncertainty regarding future strategy and business
development. In early 2011, Cyprus Popular Bank entered into an
agreement with the remaining shareholders of Rosprombank, with
the goal to increase its participation at the Russian bank close
to 100%, from 51% at present. Moody's understands that the
transaction is not proceeding, which could lead to Cyprus Popular
Bank's lower strategic interest in its Russian operations.

FOCUS OF THE REVIEW

The review will focus on the credit implications that the
continuing problems at Cyprus Popular Bank might have on
Rosprombank, as well as on the business and commercial ties
between the subsidiary and the parent bank. Rosprombank's ratings
could be downgraded if the ratings agency perceives that risks
stemming from Cyprus Popular Bank are material enough to
negatively affect the Russian banks' business franchise,
liquidity, asset quality and profitability.

The principal methodology used in this rating was Moody's
Consolidated Global Bank Rating Methodology published in June
2012.

Headquartered in Moscow, Russia, Rosprombank reported total
assets of RUB8.7 billion (around US$280 million) and total
shareholders' equity of RUB993 million (around US$32 million) at
Q3 2012 (under RAS, unaudited).


ROSPROMBANK: Moody's Reviews National Scale Rating for Downgrade
----------------------------------------------------------------
Moody's Interfax has placed on review for downgrade the Baa2.ru
long-term national scale rating of Russia-based Rosprombank.

Moody's assessment is primarily based on Rosprombank's monthly
financial statements prepared under local statutory accounting
rules (Russian Accounting Standards or RAS), as well as its
audited financial statements for 2011 prepared under IFRS.

Ratings Rationale

Moody's decision to place Rosprombank's rating on review for
downgrade reflects the rating agency's concerns regarding the
sustainability of the bank's commercial franchise and financial
fundamentals in light of the continuing problems at Rosprombank's
controlling shareholder - Cyprus Popular Bank Public Co Ltd.
Indeed, Moody's on 14 January 2013 has downgraded Cyprus Popular
Bank's ratings to Caa2 negative (deposit ratings and outlook) and
E/ca (BFSR/standalone credit strength).

While Moody's understands that Rosprombank had no credit exposure
to Cyprus Popular Bank (including Cypriot and Greek securities)
at YE2012, and its reliance on parental funding was low, the
rating agency considers that the following risks could
materialise for Rosprombank in the short- to medium-term:

(1) Potential volatility in customer deposits, which could be
triggered by negative news related to the parent bank. Moody's
notes that Rosprombank has a somewhat concentrated funding base,
with the top-20 depositors accounting for around one-third of
total deposits at YE2012 (excluding subordinated debt). According
to monthly RAS statements, the bank's retail deposits have shown
some volatility in 2012.

(2) While Rosprombank's credit exposure (including off balance
sheet) to Cyprus Popular Bank was zero at YE2012, both banks have
a history of conducting large intragroup transactions. Moody's
does not exclude that such transactions could occur in the
future, potentially leading to higher risks for Rosprombank.

(3) Uncertainty regarding future strategy and business
development. In early 2011, Cyprus Popular Bank entered into an
agreement with the remaining shareholders of Rosprombank, with
the goal to increase its participation at the Russian bank close
to 100%, from 51% at present. Moody's understands that the
transaction is not proceeding, which could lead to Cyprus Popular
Bank's lower strategic interest in its Russian operations.

FOCUS OF THE REVIEW

The review will focus on the credit implications that the
continuing problems at Cyprus Popular Bank might have on
Rosprombank, as well as on the business and commercial ties
between the subsidiary and the parent bank. Rosprombank's rating
could be downgraded if the ratings agency perceives that risks
stemming from Cyprus Popular Bank are material enough to
negatively affect the Russian banks' business franchise,
liquidity, asset quality and profitability.

The methodologies used in this rating were Moody's Consolidated
Global Bank Rating Methodology published in June 2012, and
Mapping Moody's National Scale Ratings to Global Scale Ratings
published in October 2012.

Headquartered in Moscow, Russia, Rosprombank reported total
assets of RUB8.7 billion (around US$280 million) and total
shareholders' equity of RUB993 million (around US$32 million) at
Q3 2012 (under RAS, unaudited).

Moody's Interfax Rating Agency's National Scale Ratings (NSRs)
are intended as relative measures of creditworthiness among debt
issues and issuers within a country, enabling market participants
to better differentiate relative risks. NSRs differ from Moody's
global scale ratings in that they are not globally comparable
with the full universe of Moody's rated entities, but only with
NSRs for other rated debt issues and issuers within the same
country. NSRs are designated by a ".nn" country modifier
signifying the relevant country, as in ".ru" for Russia. For
further information on Moody's approach to national scale
ratings, please refer to Moody's Rating Methodology published in
October 2012 entitled "Mapping Moody's National Scale Ratings to
Global Scale Ratings".

             About Moody's and Moody's Interfax

Moody's Interfax Rating Agency (MIRA) specializes in credit risk
analysis in Russia. MIRA is a joint-venture between Moody's
Investors Service, a leading provider of credit ratings, research
and analysis covering debt instruments and securities in the
global capital markets, and the Interfax Information Services
Group. Moody's Investors Service is a subsidiary of Moody's
Corporation (NYSE: MCO).


SBERBANK OF RUSSIA: Fitch Affirms 'BB+' Subordinated Debt Rating
----------------------------------------------------------------
Fitch Ratings has affirmed Kazakstan's Subsidiary Bank Sberbank
of Russia OJSC's (SBK) and VTB Bank (Kazakhstan)'s (VTBK) Long-
term foreign-currency Issuer Default Ratings (IDRs) at 'BBB-'.
The Outlook on SBK's IDR is Stable. Fitch has revised the Outlook
on VTBK's IDR to Negative from Stable.

RATING RATIONALE, DRIVERS AND SENSITIVITIES - IDRS, DEBT RATINGS,
NATIONAL RATINGS, SUPPORT RATINGS

SBK's and VTBK's IDRs are based on the high probability of
support from the banks' respective owners, Sberbank of Russia
(Sberbank, 'BBB'/Stable) and Bank VTB (JSC) (VTB,
'BBB'/Negative), if needed. The parent institutions' propensity
to support their Kazakh subsidiaries would likely be high, in
Fitch's view, given the full ownership, the strategic importance
for Sberbank and VTB of their expansions in the CIS region and
internationally, the moderate cost of any potential support,
common branding and significant potential reputational risks
arising from a subsidiary default, Sberbank's and VTB's strong
track record to date of supporting their subsidiaries, including
SBK and VTBK, and the solid government relations of Russia and
Kazakhstan.

The one-notch differential between the parents' IDRs and the
respective subsidiary banks reflects the cross-border ownership,
the limited importance of the subsidiaries due to their still
small size relative to the parents' consolidated balance sheets,
the significant operational independence of the Kazakh
subsidiaries, and that the non-Russian operations of the two
groups have yet to demonstrate their strong commercial viability
(particularly relevant for VTBK).

The Outlooks on the subsidiaries reflect those on the parent
banks. The revision of the Outlook on VTBK's IDR follows the
revision of VTB's Outlook on January 16, 2013.

SBK and VTBK's IDRs are likely to move in tandem with the IDRs of
Sberbank and VTB,

RATING ACTION RATIONALE, DRIVERS AND SENSITIVITIES - VIABILITY
RATINGS

The upgrade of SBK's Viability Rating (VR) to 'b+' from 'b'
reflects the bank's recently strengthened domestic franchise, its
track record of profitable operations, strong reported credit
metrics, and the ordinary benefits of support, including
reasonable capitalization maintained through timely and solid
capital injections by the parent. At the same time, SBK's VR also
considers its exposure to some high risk larger borrowers, and
the recent rapid business growth (47% gross loan growth for
2012), which may result in asset quality deterioration as the
loan book seasons.

SBK compares well with large Kazakh banks in terms of reported
non-performing loans (NPLs; more than 90 days overdue). At end-
2012, NPLs were a low 1.1% of the portfolio with no material
concentration of poor quality loans among the largest (top 25)
exposures. NPLs originated during 2012 were only 0.2% of average
performing loans, although the ratio should be viewed in light of
rapid growth and the largely unseasoned portfolio.

SBK reported a reasonable 15.6% regulatory total capital adequacy
ratio at December 1, 2012, supported by a material KZT15 billion
equity injection from Sberbank and KZT18 billion profit
(representing an annualized return on average equity of 36%) in
9M12.

SBK funds itself domestically, for the most part, with the
loans/deposits ratio standing at 95% at end-Q312, although
deposit concentrations are high.

SBK is the sixth-largest bank in Kazakhstan, focusing primarily
on corporate business. Sberbank currently owns virtually 100% of
SBK.

An upgrade of SBK's VR would require further strengthening of its
domestic franchise while maintaining healthy capital generation
and asset quality. A sharp deterioration in asset quality and
loss absorption capacity could lead to a downgrade.

Fitch has not assigned a VR to VTBK due to the bank's still
modest track record of operations and, hence, continued reliance
on capital support from its parent. VTBK's local franchise
remains very limited (less than 1% market share by assets at end-
2012) despite the fast loan growth from a low base since the bank
was established in 2009.

VTBK's reliance on parent funding is currently moderate (9% of
KZT79 billion total liabilities at end-2012), but might increase
in future to fuel further growth of the bank. Based on the draft
IFRS accounts, VTBK will likely continue to be loss making in
2012, but might report positive net profit in 2013 if asset
quality metrics remain stable.

Due to the fast growth and continued losses, capital ratios have
moderated. There were no capital injections in 2012. As a result,
the local statutory Tier I capital adequacy ratio fell to 17% at
end-2012 (minimum required is 5%) from 28% at end-2011. There are
no defined capital injection plans for 2013, but Fitch notes that
past capital support has been timely and sufficient.

VTBK, established in 2009, is currently the 20th-largest bank in
Kazakhstan targeting predominantly corporate commercial banking
business.

The rating actions are:

SBK

Long-Term foreign currency IDR: affirmed at 'BBB-'; Outlook
  Stable
Long-Term local currency IDR: affirmed at 'BBB-'; Outlook Stable
Short-Term foreign currency IDR: affirmed at 'F3'
Viability Rating: upgraded to 'b+' from 'b'
Support Rating: affirmed at '2'
National Long-Term Rating: affirmed at 'AA(kaz)'; Outlook Stable
Senior unsecured debt rating: affirmed at 'BBB-'(EXP)
Senior unsecured debt national rating: affirmed at
  'AA(kaz)(EXP)'
Subordinated debt rating: affirmed at 'BB+'
Subordinated debt National Rating: affirmed at 'AA-(kaz)'

VTBK

Long-Term foreign currency IDR: affirmed at 'BBB-'; Outlook
  Revised to Negative from Stable
Short-Term foreign currency IDR: affirmed at 'F3'
Long-Term local currency IDR: affirmed at 'BBB-'; Outlook
  Revised to Negative from Stable
Support Rating: affirmed at '2'
National Rating: affirmed at 'AA(kaz)'; Outlook Revised to
  Negative from Stable
Senior unsecured debt rating: affirmed at 'BBB-'
Senior unsecured debt national rating: affirmed at 'AA(kaz)'


SUKHOI CIVIL: Fitch Affirms 'BB' Long-Term Issuer Default Rating
----------------------------------------------------------------
Fitch Ratings has affirmed Sukhoi Civil Aircraft JSC's Long-Term
Issuer Default Ratings (IDR) at 'BB' with a Stable Outlook.

KEY DRIVERS

- State Support:

In line with Fitch's parent subsidiary linkage methodology,
SCAC's ratings are driven by its strong links to its ultimate
majority shareholder, the Russian government ('BBB'/Stable). Due
to its shareholding, Fitch expects SCAC to continue to receive
support from the Russian state via additional equity injections
over and above what has already been contributed. Any waning, or
perceived waning, of that support, is likely to lead to SCAC's
ratings being further notched down from those of the sovereign.

- Super Jet 100:

This relationship is underpinned by the strategic importance of
the Super Jet 100 (SSJ 100) aircraft to the state. The SSJ 100 is
the only product SCAC has delivered to date, although a business
jet version has been launched and is scheduled to be delivered in
2014. SCAC can rely on the support of the Russian state for
additional equity injections over and above what has already been
contributed.

- Expected Emerging Market Demand Not Hindered by Indonesia
Crash:

Other factors influencing the rating are the strong emerging
market demand for the SSJ 100 (181 firm orders taken to date plus
75 options), which is unlikely to be negatively affected by the
May 2012 crash of the SSJ 100 demonstrator flight in Indonesia,
the cause of which was pilot error. Fitch notes that no orders
have been cancelled as a result of the crash.

- Stable Outlook:

The Stable Outlook on the Long-Term IDR reflects that on the
Long-Term foreign currency IDR of the Russian Federation.

RATING SENSITIVITY GUIDANCE:

Future developments that could lead to positive or negative
rating actions include:

- Change to Sovereign Ratings:

As SCAC's IDRs and Outlook are driven by those of the Russian
Federation, any change to the sovereign could prompt a review of
the company's IDRs, National Ratings and Outlook.

- Degree of Sovereign Support:

The ratings and Outlook are also driven by the status of the
support from the state. Any strengthening of this support, such
as a provision of written guarantees of SCAC's debt from the
Russian Ministry of Finance, would be likely to lead to a closer
rating linkage. A weakening of support, such as a reduction in
the state's shareholding in SCAC, or a waning commitment to the
company's programs, could lead to a widening of the rating gap
between Russia and SCAC.

The rating actions are:

-- Long-term IDR affirmed at 'BB'; Outlook Stable
-- Short-term IDR affirmed at 'B'
-- Long-term local currency IDR affirmed at 'BB'; Outlook Stable
-- Short-term local currency IDR affirmed at 'B'
-- Foreign currency senior unsecured rating affirmed at 'BB'
-- Local currency senior unsecured rating affirmed at 'BB'
-- National Long-term rating affirmed at 'AA-(rus)'; Outlook
    Stable
-- National Short-term rating affirmed at 'F1+(rus)'



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


AEROSVIT: Calls on Trade Unions Leaders to Agree on Pay Cuts
------------------------------------------------------------
Ukrainian Journal reports that AeroSvit, which is facing
bankruptcy, called on its trade union leaders to agree on pay
cuts and other measures in an attempt to turn the company around.

The calls come after the leaders rejected the measures and
demanded an increase in compensation.

As reported by the Troubled Company Reporter-Europe on Jan. 24,
2013, Reuters related that AeroSvit was seeking protection from
its creditors in court after grounding most of its flights and
leaving hundreds of people stranded across the globe due to
financial problems.  AeroSvit, which operates 28 planes and
serviced 2.8 million passengers in 2011, had debt of UAH4.27
billion as of the end of last year, which was almost three times
its assets, Reuters, disclosed.  According to Reuters, the Kiev-
based company said the court procedure was part of a
reorganization plan aimed "to restore its operating efficiency
and increase revenue inflows".  The hearings were due to start
January 23, Reuters noted.  The company filed for bankruptcy late
last December, just before the New Year holidays, prompting a
number of its partners such as travel firms and airports to
suspend services, Reuters recounted. Trade unions, which include
AeroSvit workers, say the company had issued warnings to all its
2,500 staff that they would be laid off soon, Reuters related.
AeroSvit, in turn, has blamed trade unions for driving up staff
wages so much that they became one of the key factors leading to
its downfall, Reuters noted.  In 2011, AeroSvit's financial loss
tripled year-on-year to 1.456 billion hryvnias, Reuters
disclosed.  It has not reported 2012 results, Reuters said.

Aerosvit is a private Ukrainian airline.  It was founded in 1994
and by 2012, was operating 80 international routes in 34
countries.



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


ANGEL MINING: Intends to Appoint Administrator
----------------------------------------------
The board of Angel Mining plc on Jan. 24 disclosed that it
requested a suspension of trading in its shares on AIM.

Following demands from a creditor for a payment that the Company
could not meet and the threat to issue a winding-up petition, the
Company on Jan. 24 filed an intention to appoint an
administrator.

The Company continues to work with its finance providers in
seeking a financial restructuring.  Should the Company not be
able to agree a restructuring with its creditors within the next
ten days, the appointment of an administrator will become
effective.  The Company expects to make further announcements in
due course.

Headquartered in York, United Kingdom, Angel Mining plc is
engaged in the exploitation of minerals, particularly gold, zinc
and lead in Greenland.  The Company operates in two segments: the
Black Angel zinc/lead mine (Greenland) and the Nalunaq Gold Mine
(Greenland).


BROOK HOTELS: In Administration, Shrinks to 5 Properties
--------------------------------------------------------
Janet Harmer at Caterer and Hotelkeeper reports that the
precarious nature of some of the UK's mid-market provincial
hotels has been highlighted by the administration earlier this
month of Brompton Hotels, a group of eight leasehold properties.

Until a year ago, Brook Hotels had 21 properties.

Following the administration of Brompton Hotels, Brook Hotels,
which managed Brompton Hotels' operations, now has only five
remaining properties: Kingston Lodge in Kingston-upon-Thames;
Marston Farm, Birmingham; Mollington Banastre, Chester; Red Lion,
Colchester and Whipper-In, Oakham, according to Caterer and
Hotelkeeper.

The report relates that Ashok Ummat, one of three directors of
Brompton Hotels with Denise Ummat and Umesh Ummat, said that the
company had suffered as a result of high fixed costs and a fall
in turnover.

"The hotels became no longer sustainable and the difficult
decision to place the business into administration was taken,"
the report quoted Mr. Ummat as saying.  The three directors
continue to head up Brook Hotels.

The administrator, UHY Hacker Young, is now looking to sell the
leasehold interest of the eight hotels via property consultants
Edward Symmons, the report discloses.

Meanwhile, the report relates that the hotels are continuing to
be operated through a new company, set up in December 2012,
called Delight Hotels, while the freehold of each property is
owned by property investment group Mountain Capital.

It has emerged that the directors of Delight Hotels are Justin
Wallace and Corby Hotels, which in turn names Malcolm Gray and
Kyriacos Kimitri as its directors, the report notes.

In January 2012, the report relays that Gray and Kimitri -
through two companies known as Albermarle Hotels and Albermarle
Hotels (No 2) - took over the first eight of the original 21
Brook Hotels, via a vehicle called Antler Hotels.

Within a few months, liquidators were called into Albermarle
Hotels and Albermarle Hotels (No 2), while Antler Hotels was
wound up earlier this month, the report says.

The report notes that one of the hotels concerned was the three-
star, 60-bedroom George hotel in Huddersfield, the location where
rugby league was founded in 1895, which on January 2 closed with
the loss of 35 jobs.

The George is now being marketed for sale by Colliers
International, with a guide price of GBP900,000, the report
relays.

When contacted by Caterer and Hotelkeeper to ask what Delight
Hotels intended to now bring to the portfolio of properties
previously run by Brompton Hotels, Gray said "lots to be honest",
but declined to comment any further, the report adds.


ETHEL AUSTIN: In Administration for the Fifth Time
--------------------------------------------------
BBC News reports that Liverpool clothing chain Ethel Austin has
gone into administration for the fifth time in five years.

The brand, which has 28 shops left, was bought in July by Ricli
Limited, which is owned by Liric owner and Greater Manchester
businessman Mike Basso, according BBC News.

The report relates insolvency practice XL Business Solutions
confirmed it had been appointed by Ricli Limited to handle the
administration.

The shops employ an estimated 200 staff.

The report says that before the series of administrations which
began in 2008, the company had 300 stores employing almost 3,000
staff.

The business was founded by Ethel Austin and her husband George
in a Liverpool council house in 1934.


HOUSE OF SHER: In Administration; 10 Jobs Affected
--------------------------------------------------
BBC News reports that House of Sher has gone into administration
with the loss of 10 jobs.

According to BBC, administrator Ian Wright --
ian.wright@wriassociates.co.uk -- of WRI, cited "historic issues
regarding property transactions and legal actions".  Mr. Wright
said that online competition and the economic downturn had also
hit the business hard, BBC relates.

"The company has also been affected by the economic downturn and
the reduction of footfall caused by the growth in online
competition," BBC quotes Mr. Wright as saying.

"Following pressure from creditors, the directors have
reluctantly had to take this step to place the company into
administration."

Mr. Wright, as cited by BBC, said: "We will now be taking steps
to sell the assets of the company to realise as much as we can
for the benefit of creditors."

House of Sher is a Glasgow-based cash and carry.


JACKS FAMOUS SUPPLIES: Falls Into Administration, Seeks Buyer
-------------------------------------------------------------
Duncan Brodie at EADT24 News reports that Jacks Famous Supplies
(Camping) Ltd has gone into administration.

Adam Clarke and Andrew Kensall, from regional accountancy firm
Larking Gowen, have been appointed joint administrators of Jacks
Famous Supplies (Camping) Ltd, which operates the store in St
Nicholas Street.

The store, which has a workforce of nine full-time staff, will
continue trade as normal while a buyer for the business is
sought, according to EADT24 News.

The report relates that Jacks has been operating from the same
location in St. Nicholas Street since 1946 and for the last 35
years has been managed by David Williams, a director of the
company.

"Jacks, like many other high street retailers, has been
struggling with competition from internet sales . . . .  Having
met with David Williams it was decided that placing the company
into administration would provide the company with breathing
space whilst it continues to trade and a purchaser for the
business is sought," the report quoted Mr. Clarke as saying.

Jacks sells a wide range of wares including gas cartridges,
portable cookers and lanterns for camping, outdoor clothing such
as wax jackets, body warmers, Doc Martens boots and Hunter
wellies, work wear including steel-toe work shoes, boiler suits
and lab coats, and gardening goods such as tools and tarpaulins.


JESSOPS PLC: Hilco In Talks with Administrator to Buy Brand
-----------------------------------------------------------
Andrea Felsted at The Financial Times reports that Hilco UK, the
retail restructuring group that has taken effective control of
HMV, is the frontrunner to acquire the Jessops brand.

Jessops, which employed about 2,000 people, collapsed into
administration two weeks ago, after directors, banks and
suppliers failed to agree on providing fresh funding for the
photographic retailer, the FT recounts.

According to the FT, people familiar with the situation said that
Hilco, which on Monday acquired HMV's GBP120 million of debt, is
in talks with PwC, administrator to Jessops, about acquiring the
photographic retailer's brand.

There have been reports that Hilco, whose purchase of HMV's debt
paves the way for a rescue of the entertainment retailer, would
look to put Jessops branded camera concessions in HMV stores, the
FT notes.

The FT relates that people close to the process said the
restructuring specialist is among about half a dozen parties
interested in the Jessops brand.

Other parties are also interested in taking on some Jessops
stores, the FT says.

However, a deal is not expected to be imminent as
PricewaterhouseCoopers is still in the process of winding down
Jessops stores and making staff redundant, the FT notes.

According to the FT, Rob Hunt, joint administrator to Jessops,
and a partner at PwC, said: "We have a number of people
interested in the brand, but we will not disclose or confirm
individual parties, as this is confidential information."

PwC closed all Jessops' 187 stores two days after the retailer
entered administration, the FT discloses.

Headquartered in Leicester, United Kingdom, Jessops plc --
http://www.jessops.com/-- is a holding company of a group of
companies whose principal activity is the retail of photographic
products and services.  It operates via the Internet and through
mail order and telesales.  Jessops plc sells a range of digital
and analogue cameras, digital and analogue camcorders,
binoculars, digital home print solutions, memory cards, film and
photographic materials, as well as a range of accessories for the
photographic market, including its own brand products.  The
Company also provides developing and printing, and digital
imaging services.  The Company is engaged in the business of
selling branded photographic equipment.  Its subsidiaries include
Camera Bond Limited, Camera Mezz Limited, Camera Equity Limited,
The Jessop Group Limited, Well Hall (Jersey) Limited, Expert
Imaging Limited, MacKinnons of Dyce Limited and Jessops
Photographic (Ireland) Limited.


PANASONIC: Moody's Says Units Close to 'Ba1' Credit Assessment
--------------------------------------------------------------
Moody's Investors Service has downgraded the short-term ratings
assigned to Panasonic Finance (America) Inc. and Panasonic
Finance (Europe) Plc's commercial paper (CP) programs to Not
Prime from Prime-3.

The rating action concludes the review for downgrade initiated on
November 20, 2012.

RATINGS RATIONALE

Panasonic Finance (America) Inc. and Panasonic Finance (Europe)
Plc are subsidiaries of Panasonic Corporation (Baa3, Negative).
Both subsidiaries are finance conduits which, among other
activities, issue CP in their respective regions. The rating
action reflects Moody's view that the support provided by
Panasonic in the form of a keepwell agreement is not sufficient
to support Prime-3 ratings.

Both CP programs are supported by keepwell or support agreements
from Panasonic. These agreements do not meet Moody's core
principles of guarantees for credit substitution.

Moody's short-term ratings map closely to the relevant long-term
ratings assigned to the issuer. It is generally Moody's practice
to consider the long-term risk of entities, which act only as
financial conduits rather than core operating companies and which
are not fully guaranteed by the parent, to be one rating notch
lower than the parent's rating.

In this instance, these overseas financial subsidiaries map more
closely to a Ba1 underlying long-term credit assessment, one
notch below Panasonic's assigned Baa3 ratings, and Not Prime
short-term ratings.

Moody's also notes that these CP programs have relatively weak
alternate liquidity provisions, when compared with common CP
programs globally. Back-up lines cover only 15% of the programs'
size, although Panasonic limits the maximum amount of maturities
-- within any four days -- to an amount less than the unused
availability under these lines. Typically, back-up lines for CP
programs cover 100% of the size of programs.

At the same time, Moody's recognizes that the company issues CP
in limited amounts from either of these two subsidiaries and
maintains excellent overall global liquidity. As of September
2012, Panasonic held about JPY470 billion in cash and deposits as
well as JPY600 billion in unused commitment lines against its
short-term debt of about JPY650 billion. Most of its short-term
debt is financed through its domestic CP program (unrated).

Moody's believes that Panasonic's stable access to the domestic
capital market, solid relationships with Japanese banks, as well
as its sophisticated global cash management system, will also
continue to help the company manage its short-term liquidity.

An upgrade of the short-term ratings could be achieved in
conjunction with an upgrade of Panasonic's long-term ratings, or
the provision of stronger parental support and enhanced alternate
liquidity.

The principal methodology used in these ratings was the Asian
Consumer Electronics Industry Methodology published in December
2010.

Panasonic Corporation, headquartered in Osaka, is one of the
world's leading manufacturers of consumer electronics products.


JAGUAR LAND: Fitch Rates Senior Unsecured Notes 'BB-(EXP)'
----------------------------------------------------------
Fitch Ratings has assigned Jaguar Land Rover PLC's (JLR, 'BB-
'/Stable) proposed senior unsecured notes a 'BB-(EXP)' expected
rating.

The final rating is contingent upon the receipt of final
documents conforming to information already received. The notes
are rated at the same level as JLR's Issuer Default Rating of
'BB-' as they will constitute direct, unconditional, unsecured
and unsubordinated obligations of the company.

Using the top-down approach under its "Parent and Subsidiary
Rating Linkage Criteria", Fitch rates JLR a notch below the
rating of its parent Tata Motors Limited (TML, 'BB'/Stable). This
reflects the two entities' strong linkages, JLR's strategic
importance to TML and the direct/indirect support provided by TML
since it acquired JLR in the financial year ended March 2009. JLR
accounted for around 69% of TML's consolidated revenues and about
72% of its EBITDA in H1FY13, up from 63% and 69%, respectively,
in FY12. TML's rating factors in a single notch uplift for
potential support from the ultimate owner, Tata Group.

JLR reported strong revenue growth of 23% yoy to GBP6,927 million
during H1FY13 and high operating profitability of 13.8% (H1FY12:
13.4%). This was driven by high sales volumes of Land Rover
vehicles and more sales from China. JLR's sales in China
increased to 21.4% of total sales volumes during Q3FY13 from
16.4% a year ago.

JLR's strong revenue and margins have helped to largely offset
TML's poor performance. TML's unconsolidated revenue fell 7% yoy
during H1FY13 to INR229.1 billion with EBITDA margins of 5.9%
(H1FY12: 7.4%).

On a consolidated basis, TML's net leverage improved to 0.98x in
FY12 from 1.21x in FY11 largely due to JLR's substantially higher
cash balances. As of end-FY12, JLR had a cash balance of GBP2.4
billion (FY11:GBP1 billion). Fitch expects a similar trend to
persist in FY13.

The ratings are constrained by JLR's limited product portfolio,
its shorter operating history and lower volumes compared with
more established and highly rated premium car manufacturers. In
Fitch's opinion, the prevailing weak global economy may also pose
a challenge for maintaining volume growth over the next one to
two years.

WHAT COULD TRIGGER A RATING ACTION?

Negative: Future developments that may, individually or
collectively, lead to negative rating action on JLR include:

- A weakening of linkages between the Tata Group and TML
- A weakening of linkages between TML and JLR
- TML's consolidated financial leverage (excluding that of TML's
   financial subsidiary - Tata Motors Finance Limited) exceeding
   2x on a sustained basis due to reduced sales or profitability
   (at TML or JLR), or due to higher-than-expected debt

Positive: Future developments that may, individually or
collectively, lead to positive rating action on JLR include:

- Higher volume growth for TML (standalone) and JLR through
   increased geographic and product diversification, without
   significant margin erosion from FY12 levels



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


* EMEA Corporates to Limit Cash Erosion in 2013, Fitch Says
-----------------------------------------------------------
EMEA corporate issuers will focus on measures to limit cash
erosion in 2013 as challenging market conditions continue, Fitch
Ratings says. Defensive tactics will include limiting spending on
expansionary capex, dividends and M&A, with issuers primarily
concentrating on cost and efficiency improvements to cope with
weak demand. Those companies that do increase capex will mainly
do so to protect market share or offset home-market weakness. A
risk to this scenario, albeit in our view an overstated one, is
that sentiment towards M&A and buybacks could flip relatively
quickly, possibly threatening credit quality.

Despite moderate expansionary investment over the last two years
compared with 2008 highs (7.52% capex/revenue), Fitch-rated
corporates have not significantly underinvested. Companies have
the firepower - via high balance-sheet cash and strong borrowing
capacity - to resume capex once market conditions improve. We
expect nominal investment to slow slightly to US$485.5 billion in
2013 (6.3% of revenue) from US$503.6 billion in 2012 (6.7% of
revenue). This remains closely linked to annual depreciation and
amortization (1.39x cover, from 1.52x in 2008).

But some industries are likely to increase investment. Growing
emerging markets and a need to catch up on underinvestment in
2008-2010 will lead most automotive manufacturers to increase
capacity outside mature markets. This is intended to help them
weather a further drop in sales in western Europe and lingering
uncertainty about the future of the eurozone. An exception is
Fiat ('BB'/Negative), which we expect to invest in its domestic
Italian and European markets.

Higher telecoms capex will be driven by consumer demand and
intense competition, forcing incumbent operators to increase
spending on LTE spectrum auctions and fibre upgrades, especially
where cable competition is severe. Continued regulatory and
competitive pressure means telcos will have to remain disciplined
on shareholder remuneration to keep leverage under control.

There will also be capacity additions in the drinks sector,
driven by continuing strong end-user demand, while we expect
integrated and network utilities in emerging markets to increase
capex closer to normal levels after a decline in 2011. We
estimate that non-food retailers' total capex and capex as a
percentage of sales in 2013 will be the highest since 2008.
Investment in multi-channel platforms, continued store
refurbishment and improvement in service and offers will become
the norm as these retailers attempt to defend their market share.

However, we expect capex/revenue to slightly decline across the
pharmaceutical, food retailing, and industrial sectors in 2013.
Large diversified miners are likely to have marginally lower
capex budgets than in 2013, while we forecast aggregate planned
capex across the mining industry to be higher year on year.
However, the start of many projects may be delayed as the year
progresses.

Similarly, we expect dividend payments to remain moderate across
EMEA corporates in 2013, after a reduction in 2012. Rebased
dividends will be maintained in food retail (with some use of
scrip issues), while M&A activity will mainly be limited to
strategic assets across the EMEA corporate portfolio. However,
this remains largely sentiment driven, and large cash outlays may
erode issuers' credit profiles in the current low-growth
environment.


* BOOK REVIEW: Performance Evaluation of Hedge Funds
----------------------------------------------------
Edited by Greg N. Gregoriou, Fabrice Rouah, and Komlan Sedzro
Publisher: Beard Books
Hardcover: 203 pages
Listprice: US$59.95
Review by Henry Berry

Hedge funds can be traced back to 1949 when Alfred Winslow Jones
formed the first one to "hedge" his investments in the stock
market by betting that some stocks would go up and others down.
However, it has only been within the past decade that hedge funds
have exploded in growth.  The rise of global markets and the
uncertainties that have arisen from the valuation of different
currencies have given a boost to hedge funds.  In 1998, there
were approximately 3,500 hedge funds, managing capital of about
$150 billion.  By mid-2006, 9,000 hedge funds were managing $1.2
trillion in assets.

Despite their growing prominence in the investment community,
hedge funds are only vaguely understood by most people.
Performance Evaluation of Hedge Funds addresses this shortcoming.
The book describes the structure, workings, purpose, and goals of
hedge funds.  While hedge funds are loosely defined as "funds
with no rules," the editors define these funds more usefully as
"privately pooled investments, usually structured as a
partnership between the fund managers and the investors."  The
authors then expand upon this definition by explaining what sorts
of investments hedge funds are, the work of the managers, and the
reasons investors join a hedge fund and what they are looking for
in doing so.

For example, hedge funds are characterized as an "important
avenue for investors opting to diversify their traditional
portfolios and better control risk" -- an apt characterization
considering their tremendous growth over the last decade.  The
qualifications to join a hedge fund generally include a net worth
in excess of $1 million; thus, funds are for high net-worth
individuals and institutional investors such as foundations, life
insurance companies, endowments, and investment banks.  However,
there are many individuals with net worths below $1 million that
take part in hedge funds by pooling funds in financial entities
that are then eligible for a hedge fund.

This book discusses why hedge funds have become "notorious as
speculating vehicles," in part because of highly publicized
incidents, both pro and con.  For example, George Soros made $1
billion in 1992 by betting against the British pound.
Conversely, the hedge fund Long-Term Capital Management (LTCP)
imploded in 1998, with losses totalling $4.6 billion.
Nonetheless, these are the exceptions rather than the rule, and
the editors offer statistics, studies, and other research showing
that the "volatility of hedge funds is closer to that of bonds
than mutual funds or equities."

After clarifying what hedge funds are and are not, the book
explains how to analyze hedge fund performance and select a
successful hedge fund.  It is here that the book has its greatest
utility, and the text is supplemented with graphs, tables, and
formulas.

The analysis makes one thing clear: for some investors, hedge
funds are an investment worth considering.  Most have a
demonstrable record of investment performance and the risk is
low, contrary to common perception.  Investors who have the
necessary capital to invest in a hedge fund or readers who aspire
to join that select club will want to absorb the research,
information, analyses, commentary, and guidance of this unique
book.

Greg N. Gregoriou teaches at U. S. and Canadian universities and
does research for large corporations.  Fabrice Rouah also teaches
at the university level and does financial research.  Komlan
Sedzro is a professor of finance at the University of Quebec and
an advisor to the Montreal Derivatives Exchange.


                            *********

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

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

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

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


                            *********


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

Troubled Company Reporter-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., 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
202-241-8200.


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