TCREUR_Public/130206.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, February 6, 2013, Vol. 14, No. 26



ZAGREBACKI HOLDING: Moody's Downgrades Debt Rating to 'Ba2'


HORNBACH BAUMARKT: Moody's Rates New EUR250MM Sr. Notes '(P)Ba2'
HORNBACH-BAUMARKT: S&P Assigns 'BB+' Rating to EUR250MM Notes
KION FINANCE: Moody's Assigns B2 Rating to New EUR350MM Sr. Notes
ORION ENGINEERED: Moody's Rates USD425MM PIK Toggle Notes 'Caa1'
ORION ENGINEERED: S&P Affirms 'B' LT Corporate Credit Rating


HELLENIC TELECOMS: S&P Raises LT Corporate Credit Rating to 'B+'
* GREECE: Banks Seek to Ease Bailout Conditions


E-STAR ALTERNATIVE: Creditors Refuse to Extend Payment Deadline


OCEAN BAR: Former Owner Declared Bankrupt


D'ANNUNZIO S.R.L: Intesa Downgrade No Impact on Ba1-Rated Notes
ICCREA BANCAIMPRESA: Fitch Affirms 'BB+' Rating on Tier 2 Notes
SEAT PAGINE: May Launch Second Round of Restructuring


BANKAS SNORAS: Former Owner Loses Bid to Lift Asset Freeze


JUBILEE CDO I: S&P Lowers Rating on Class E Notes to 'CCC-'
SNS REAAL: Moody's Lowers Subordinated Debt Rating to 'C'

S L O V A K   R E P U B L I C

EUROPEAN HEALTH: MCH Seeks EUR300-Mil. Compensation Over 2008 Law


CASER S.A.: Moody's 'Ba2' Rating Still on Review for Downgrade
IM CAJAMAR: Fitch Affirms 'CCC' Rating on Class B Notes
* Fitch Sees Strong Bond Issuance for Iberian Corporates in 2013

U N I T E D   K I N G D O M

HMV GROUP: Sells Remaining Entertainment Venues to Jeremy Joseph
MF GLOBAL: Settlement Brings 82% for Customers
OLYMPIA FURNITURE: In Administration; 135 Jobs Affected
PREMIER FOODS: Geoff Eaton Steps Down as Chief Operating Officer
RANGERS FOOTBALL: HMRC Seeks to Overturn Benefit Trust Ruling

SCIENTIAM: In Administration, Informs 40 Staff


* EUROPE: Three Euro-Area States Seek to Speed Up Bank Bail-Ins
* Moody's Study Shows High Default, Recovery Rates for Bank Loans



ZAGREBACKI HOLDING: Moody's Downgrades Debt Rating to 'Ba2'
Moody's investors Service downgraded to Ba2 from Baa3 the debt
rating of the Zagrebacki Holding D.O.O., a 100%-owned utility
company of the City of Zagreb, and placed the rating under review
for further downgrade.

Ratings Rationale:

The rating action follows: (i) weaker than expected stand-alone
creditworthiness of the Holding; and (ii) Moody's decision to
downgrade the City of Zagreb's issuer rating to Ba1 negative from
Baa3 stable, following the recent downgrade of the sovereign bond
rating of Croatia to Ba1 stable from Baa3 negative.

Moody's action on Zagrebacki Holding primarily reflects Holdings'
growing liquidity problems, combined with weak profitability and
sizeable debt burden. Holding's liquidity was under significant
pressure in the last two years arising from the high proportion
of short-term debt in the company's total debt burden (19% at
year-end 2011) and interest paid on large borrowings incurred in
the last few years for implementation of its sizeable capital
expenditure program. The Holding's liquidity, comprising cash and
short-term deposits is expected to remain weak at around 3-4% of
operating expenses throughout 2013.

The Holding's Ba2 debt rating also reflects its debt burden which
has weakened substantially in a relatively short timeframe: it
has reached 125% of its operating income in 2011, up from 33% in
2006 as well as its significant exposure to foreign currency risk
(more than 80% of the holding's debt is euro-linked).

Furthermore, the downgrade of Zagrebacki Holding's debt rating is
also based on its strong institutional and financial links with
the City of Zagreb. The deterioration in the Croatia's
creditworthiness is likely to put pressures following weaker
economic growth prospects will put additional pressure on both
City of Zagreb's and Holding's revenue. Thus the ongoing support
from the City will continue to be key in helping the Holding to
preserve its fragile profitability (EBIT margin at 1.1% in 2011)
and operational activity.

Rationale for the Review

The rating of Zagrebacki Holding has been placed under review for
further downgrade pending receipt of updated information
concerning its financial performance in 2012 and projections for
2013 and beyond in order to determine the magnitude of additional
operational and liquidity pressures in the context of the
challenging macroeconomic and financial conditions.

Moody's intends to conclude the review within three months. In
its discussion with the Holding, the rating agency will focus on
its policy responses to the above-mentioned challenges with a
view to maintaining adequate financial performance in the medium
term. Moreover, Moody's will focus its review in assessing the
Holding's ability to ensure sustainable funding over time.

What Could Change The Ratings Up/Down

Any upgrade of rating of the City of Zagreb could determine
upward pressure on Zagrebacki Holding, only if associated with a
significant improvement in the financial performance and
liquidity position combined with sustained decrease in debt.

Any deterioration of Zagreb's rating will determine a downward
change of Zagrebacki Holding's rating. Any negative changes in
the institutional and financial framework under which Zagrebacki
Holding operates could exert downward pressure on the rating. The
rating could be also influenced by further deterioration in the
Holdings's operating performance, and already weak liquidity as
well as growth in overall debt exposure.

Headquartered in the City of Zagreb, the capital of Croatia,
Zagrebacki Holding comprises a number of businesses that serve
around 1.1 million inhabitants in both the City and County of
Zagreb. Zagrebacki Holding's five key businesses are: (i) water;
(ii) gas supply; (iii) public transport services; (iv) waste
collection and recycling; and (v) maintenance and cleaning of
public roadways.

The methodology used in Zagrebacki Holding rating was
"Government-Related Issuers: Methodology Update", published in
July 2010.


HORNBACH BAUMARKT: Moody's Rates New EUR250MM Sr. Notes '(P)Ba2'
Moody's Investors Service assigned a provisional (P)Ba2 rating,
with a loss given default assessment of LGD3 (46%), to Hornbach
Baumarkt AG's proposed EUR250 million of senior unsecured notes
due 2020. The company's Ba2 corporate family rating (CFR) and
Ba2-PD probability of default rating (PDR) remain unchanged. The
Ba2 rating on Hornbach's existing EUR250 million of notes due
2014 is also unchanged. Hornbach will use the proceeds of the new
notes to repay in advance the existing notes due 2014. Based in
Germany, Hornbach is one of the largest DIY retailers in Europe.
The outlook on the ratings is positive.

"Our assignment of the (P)Ba2 rating is in line with Hornbach's
CFR and the rating on the existing notes," says Paolo Leschiutta,
a Moody's Vice President - Senior Credit Officer and lead analyst
for Hornbach. "The positive outlook on the ratings reflects our
expectation that despite a weaker-than-expected operating
performance in recent months, the company will be able to
moderate the deterioration in its credit metrics while achieving
a degree of recovery in its operating performance and key ratios
over the next 12-18 months."

Ratings Rationale:

Specifically, the (P)Ba2 rating assigned to the proposed notes
reflects the fact that (1) most of the company's debt is senior
unsecured and therefore ranks pari passu with the new notes; and
(2) the new notes will have the same seniority as the existing
notes. Both the proposed and the existing notes benefit from
senior guarantees from Hornbach's operating subsidiaries, which
account for almost all of the company's tangible net assets and
EBITDA. Moody's will withdraw the rating on the existing notes
once they have been fully repaid.

The positive outlook on the ratings incorporates Moody's
continued expectation that (1) notwithstanding a lower-than-
expected operating performance in its fiscal year ending (FYE)
February 2013 which might therefore delay the anticipated
strengthening of metrics, Hornbach could remain on a path to a
stronger financial profile over the next eighteen months and (2)
that the company will maintain a prudent financial policy,
including the financing of its capex requirements with internal

Deteriorating economic conditions in some of Hornbach's markets,
resulting in pressure on the company's top-line and higher-than-
usual store operating costs, led the company to revise its full-
year EBIT expectation for its FYE February 2013. While this will
exert pressure on Hornbach's credit metrics, Moody's currently
expects this pressure to be only temporary, with the company
maintaining solid credit metrics and a sound liquidity profile on
an ongoing basis. More specifically, Moody's expects the
company's financial leverage, measured as debt/EBITDA adjusted
for operating leases and pension liabilities, to remain below
5.0x for FYE February 2013, and to show improvements thereafter.

Although Hornbach plans to substitute its existing EUR250 million
of notes due 2014 with the new bond issuance, the current outlook
also reflects Moody's expectation that the company will use some
of its cash reserves to reduce its existing debt. In this
context, Moody's notes the company's high cash balance of EUR450
million as of 30 November 2012. The potential reduction in
Hornbach's debt, albeit modest, would have a positive impact on
the company's credit metrics, compensating for the negative
impact of its weak operating performances.

Hornbach's capital structure includes a small amount of secured
debt, which comprises amortizing mortgage securities that have
been replaced, over time, by senior unsecured debt. The secured
debt portion of Hornbach's total debt amounted to approximately
10% as of 30 November 2012 and Moody's expects this to reduce
further going forward in line with the mortgage amortizing
schedule. The new notes will be subordinated to this mortgage
loan. However, Moody's considers that given the relatively small
size of this loan (being less than 10% of the company's capital
structure following scheduled amortization), it will not result
in a notching of the notes.

Hornbach's Ba2 CFR continues to reflect (1) the company's
relatively small size compared with other European retailers; (2)
its high financial leverage for the Ba2 rating category, albeit
this is partially offset by a sizeable amount of cash currently
available on the company's balance sheet; and (3) the high level
of capital expenditure the company is planning in order to expand
its network of stores, which limits its free cash flow

However, more positively, the rating also incorporates Hornbach's
(1) strong market position in its domestic market; (2) growing
international presence; and (3) good track record in executing
its strategy, reflected by the company's ability to grow more
rapidly than the market through its domestic operations. The
rating is also supported by Hornbach's (1) conservative financial
policy; (2) flexibility in terms of cutting investments in store
openings to adapt to changing market conditions; and (3) solid
liquidity profile in light of its high cash balances and full
availability under a EUR250 million five-year credit facility due
December 2016.

Moody's issues provisional ratings in advance of the final sale
of securities and these reflect Moody's credit opinion regarding
the transaction only. Upon a conclusive review of the final
documentation, Moody's will endeavor to assign definitive ratings
to the proposed securities. A definitive rating and assigned LGD
assessment may differ from a provisional rating and LGD

What Could Change The Rating Up/Down

Upward rating pressure could result if Hornbach is able to
maintain like-for-like revenue growth in Germany on a sustainable
basis and control the volatility of its Eastern European
operations, such that its adjusted debt/EBITDA ratio trends
towards 4.0x and its EBITA/interest expenses ratio remains above

Moody's could stabilize the outlook if Hornbach fails to
demonstrate an improving trend in its profitability early next
year. Downward pressure could be exerted on the ratings if
Hornbach's financial leverage trends towards 5.5x on the back of
declining like-for-like sales and/or margin pressure due to
adverse market conditions.

Hornbach is the fourth-largest DIY retailer in Germany by
revenues, which amounted to approximately EUR3.0 billion for the
12 months to November 30, 2012. As of the same date, the company
operated 137 DIY megastores with garden centers in Europe, the
majority of which are located in Germany (91 stores), and
benefitted from an increasing presence in other European
countries, such as Austria, the Netherlands, the Czech Republic,
Slovakia and Romania (the remaining 46 stores). Hornbach's
international sales accounted for approximately 42.5% of its
total sales as of the nine months ended November 30, 2012.

The principal methodology used in this rating was the Global
Retail Industry published in June 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.

HORNBACH-BAUMARKT: S&P Assigns 'BB+' Rating to EUR250MM Notes
Standard & Poor's Ratings Services said that it assigned its
'BB+' issue rating to the proposed EUR250 million unsecured notes
due 2020 to be issued by Germany-based home-improvement retailer
Hornbach-Baumarkt-AG (Baumarkt; BB+/Stable/--).  The issue rating
is in line with the corporate credit rating on Baumarkt.  At the
same time, S&P's assigned a recovery rating of '3' to the
proposed notes, indicating its expectation of meaningful (50%-
70%) recovery for creditors in an event of payment default.
Although S&P calculates the recovery prospects above the 50%-70%
range, S&P's criteria cap the recovery rating at '3' because of
the notes' unsecured nature.

S&P understands that Baumarkt will use the proceeds of the
proposed notes to fund the redemption of its existing 6.125%
senior notes due 2014.  Therefore, S&P expects to withdraw its
'BB+' issue rating and '3' recovery rating on the existing notes
when the notes have been redeemed in full and on successful
issuance of the proposed EUR250 million notes due 2020.

                        RECOVERY ANALYSIS

The issue and recovery ratings on the proposed EUR250 million
notes due 2020 are supported by S&P's valuation of Baumarkt as a
going concern.  S&P base its valuation on what it sees as
Baumarkt's "satisfactory" business risk profile and favorable
market position in the German do-it-yourself (DIY) retail market.

Baumarkt's debt structure includes a EUR250 million revolving
credit facility (RCF) due December 2016.  Both the RCF and
proposed notes are unsecured and would rank pari passu in an
event of default according to the documentation.  The proposed
notes will benefit from a guarantee from Baumarkt's subsidiary
Hornbach International GmbH, in line with the RCF guarantee
package.  However, the guarantee package for the proposed notes
is slightly weaker than that for the existing notes due 2014,
because it does not include any guarantee from the group's
international subsidiaries.  Overall, S&P considers that the
proposed notes' documentation is relatively weak and therefore
only provides limited protection to the noteholders.

S&P's simulated default scenario assumes a decline in operating
performance on the back of an economic slowdown and a highly
competitive environment.  This results in a reduction in profit
margins.  In S&P's view, deteriorating operating performance,
combined with refinancing difficulties, would trigger a payment
default.  After reviewing S&P's recovery analysis, it now
anticipates that a default would occur in 2018, compared with
2016 in S&P's previous analysis, in light of the current

S&P estimates that at the point of hypothetical default, EBITDA
would have declined to about EUR103 million.  On this basis,
S&P's going-concern valuation yields a stressed enterprise value
of about EUR565 million.  For the purpose of S&P's recovery
analysis, it assumes that Baumarkt would refinance the debt
maturing before 2018 with similar debt instruments and that the
RCF would be fully drawn at the point of default.

After deducting priority liabilities of about EUR70 million,
comprising enforcement costs and priority debt liabilities, S&P
arrives at a net stressed enterprise value of EUR495 million.
Priority liabilities include mortgages, overdrafts, and up to
EUR20 million of promissory notes, which could, in S&P's view,
rank structurally senior to the notes.  Assuming pari passu
ranking of the RCF, the unsecured notes, and the remaining
portion of the promissory notes, the residual value is sufficient
for recovery slightly in excess of 70%.  However, given the
unsecured nature of the debt, S&P cap its recovery rating at '3'
in line with its criteria.

As S&P highlight above, its analysis assumes that the unsecured
notes and RCF would rank pari passu at the point of default.
However, given the presence of maintenance covenants in the RCF
documentation, S&P foresees that Baumarkt might have to grant
additional guarantees to the RCF lenders on the path to default,
for example, in exchange for a covenant waiver.  This could
potentially affect S&P's payment waterfall at the point of
default and therefore could lead, in S&P's view, to lower
recovery prospects than it anticipates for the proposed


New Rating

Senior Unsecured                       BB+
   Recovery Rating                      3

KION FINANCE: Moody's Assigns B2 Rating to New EUR350MM Sr. Notes
Moody's Investors Service changed the outlook on KION's ratings
to positive from stable. Concurrently, Moody's assigned a B2
(LGD2-23%) rating to the EUR350 million Senior Secured Notes due
2020 proposed by KION Finance S.A.

The B3 Corporate Family Rating (CFR) and Caa1-PD Probability of
Default Rating of KION Group GmbH (together with its subsidiaries
"KION") as well as the B2 rating of KION Finance S.A.'s EUR500
million existing Senior Secured Notes due 2018 have been

Ratings Rationale:

The outlook change reflects KION's positive operating performance
since the initial rating assignment in 2011 despite a challenging
trading environment and the successful reduction of overall debt.
The latter was helped by the recently closed strategic alliance
with Weichai Power Co, Ltd. ("Weichai Power") from China, which
also contributed significant additional funds to KION. Moreover,
the outlook change considers expected operating benefits from
that alliance. The positive outlook reflects a potential rating
upgrade over the next six to eighteen months if leverage moves
well below 7x debt/EBITDA on a sustainable basis.

In 2012, KION Holding 1 GmbH raised EUR467 million of additional
equity capital from Weichai Power in exchange for a 25%
shareholding in KION Holding 1 GmbH, the ultimate parent company
of KION Group GmbH. In addition, Weichai Power acquired a 70%
stake in Linde Hydraulics GmbH & Co. KG for EUR271 million. Out
of the total proceeds of EUR738 million, EUR200 million were
retained at KION Holding 1 GmbH and approximately EUR475 million
were used to repay financial debt at KION Group GmbH and its
subsidiaries, including all existing second lien debt of EUR202
million at that time. The remainder has been used to cover
transaction costs or is held in escrow. Pro-forma the
deconsolidation of the hydraulics business and the EUR475 million
debt repayment, Moody's calculates debt/EBITDA of 8.2x as of
September 2012. Since KION Holding 1 GmbH is not a guarantor of
the debt of KION Group GmbH and its subsidiaries, credit metrics
calculated by Moody's do not include the EUR 200 million retained
at KION Holding 1 GmbH (close to 0.5x Moody's adjusted LTM
EBITDA). However, Moody's assumes that this amount should be
accessible by KION in case of need, and it has therefore been
considered positively in the overall rating assessment. Moreover,
Moody's expects significant extraordinary charges that KION
incurred in Q4 2011 will not re-occur which should support an
improvement of the debt/EBITDA ratio to levels of around 7x
debt/EBITDA for the full year 2012 on Moody's adjusted basis.

The terms and conditions of the proposed Senior Secured Notes are
similar to the existing EUR500 million Senior Secured Notes due
2018. KION Finance S.A. is a special purpose vehicle created
solely to issue the existing and proposed notes. The Issuer will
use proceeds from the proposed notes to fund a new tranche of the
existing Term Loan Facility H under KION Group GmbH's existing
senior credit facilities agreement ("Senior Credit Agreement") to
which KION Finance S.A. is a party as a lender. Ultimately, the
net proceeds will be used to repay parts of KION's existing term
loan debt. The proposed notes will be secured by a pledge over
the shares of the Issuer, a first ranking charge over all of its
bank accounts and a first priority assignment over the Issuer's
rights under the new tranche of Term Loan Facility H. Facility H
ranks equally in right of payment with all other currently
outstanding debt under the Senior Credit Agreement other than
Facility G worth EUR115 million which has been effectively
converted into second lien debt recently and thus ranks behind
all other facilities in case of a security enforcement.

Guarantors of Facility H represent approximately 60% of EBITDA as
adjusted by KION and 70% of total assets. Collateral that
indirectly secures the notes through Facility H under the senior
facilities agreement comprises shares in and certain assets of
the guarantors, including certain bank accounts, receivables and
intellectual property rights. Moody's notes, however, that
noteholders will not have a direct claim against the obligors
under Facility H, but only indirect recourse through the Issuer
as a lender under the Senior Credit Agreement.

The one notch uplift of the existing and proposed Senior Secured
Notes from the CFR reflects the changes to Facility G which has
been effectively converted into subordinated second lien debt
that should provide a moderate loss absorption cushion for the
first lien debt in case of a potential future default. Because of
the small amount of subordinated debt, the notes' ratings may be
aligned with the CFR in case of an upgrade of the CFR to B2
depending on the overall credit profile of KION at that time.
Likewise a reduction of subordinated debt would likely result in
an alignment of the notes' ratings and the CFR.

The positive rating outlook reflects the possibility of a CFR
upgrade over the next six to eighteen months, if KION continues
its solid operating and financial performance such that the
following credit metrics are met.

KION's CFR could be upgraded if the company's leverage reduces
sustainably well below 7x debt/EBITDA , EBIT-margins reach high
single digits, EBIT/interest cover increases above 1.5x and free
cash flow/debt reaches 2% (all metrics as adjusted by Moody's).

Downward pressure could build if KION was unable to reap benefits
of its restructuring program or interest cover falls below 1.0x.
Likewise an unexpected deterioration of KION's currently solid
liquidity situation and covenant headroom could put pressure on
the rating.

The principal methodology used in this rating was the Global
Heavy Manufacturing Rating Methodology published in November
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.

ORION ENGINEERED: Moody's Rates USD425MM PIK Toggle Notes 'Caa1'
Moody's Investors Service has assigned a definitive Caa1 rating
with a loss given default (LGD) assessment of LGD 5 - 89%, to the
USD425 million of PIK toggle notes issued by issued by Orion
Engineered Carbons Finance & Co SCA, which is a special purpose
entity owned and guaranteed by Kinove Luxembourg Holdings 1 Sarl,
the ultimate parent of Orion Engineered Carbons Holdings GmbH.

The B2 corporate family rating and B2-PD probability of default
rating assigned at the Orion level are unchanged, as well as the
Ba2 rating of its super senior revolving credit facility and the
B2 rating of its senior secured guaranteed notes. The outlook on
all ratings is negative.

Ratings Rationale:

Moody's definitive rating assignment on the new US$425 million
PIK toggle notes is in line with the provisional rating assigned
on January 24, 2013. The final terms of the notes are
substantially in line with the drafts reviewed for the
provisional ratings assignments, and the upsizing compared to the
US$390 million initially anticipated is considered by the rating
agency as not having any material credit impact.

"The Caa1 rating on the new notes reflects the subordinated
position of the new instrument relative to the existing senior
secured facilities and notes borrowed/issued by Orion, as well as
unsecured trade obligations of the operating companies", says
Gianmarco Migliavacca, a Moody's Vice President - Senior Analyst
and lead analyst for Orion.

The PIK toggle notes will be secured by a first-ranking pledge on
the shares of Finco, the Issuer of the new PIK toggle notes, and
on the shares and preferred equity certificates of Kinove
Luxembourg Holdings 2 Sarl ("Luxco2"), the direct parent company
of Orion and direct subsidiary of the Parent Guarantor Luxco 1.
Furthermore, the preferred equity certificates issued by the
Parent Guarantor to Finco in return for the proceeds of the new
PIK toggle notes will also be pledged.

The PIK toggle mechanism of the new notes would mitigate the risk
of materially reducing the amount of cash at the Orion group
level. This is because it would enable the issuer to switch a
portion of the cash interest payment on the new notes, when due,
to Payment In Kind or PIK, if (1) the distributable amounts from
the Orion group are not sufficient to entirely cover the cash
interest on the PIK toggle notes, or, even if sufficient, (2) the
cash remaining at the Orion group level, pro/forma for the cash
interest payment on the existing senior secured notes, is less
than the minimum threshold set at EUR30 million.

Orion's B2 CFR reflects: (i) the relatively modest scale of the
company's operations and niche business profile; (ii) the
historical volatility of EBITDA given a concentrated exposure to
the highly cyclical automotive market; (iii) a high level of
customer concentration given top five customers are global tyre
manufacturers which accounted for c. 70% of 2011 rubber blacks
revenue; (iv) a high level of production concentration in the
pigment black division, as the Kalscheuren plant in Germany
accounts for a large portion of Orion's annual pigment black

Further important factors constraining the rating are: (i)
Orion's elevated leverage close to the maximum debt capacity that
Moody's estimates at the B2 rating level, following the issuance
of the USD 425 million of PIK toggle notes, as well as (ii) the
aggressive financial policy highlighted by the recent transaction
and the large distribution to shareholders that it funded 18
months after the private equity sponsors have completed the
leveraged buy-out ('LBO') of Orion.

Offsetting some of the structural risks faced by Orion are: (i)
the strong market position of the company as the global leader in
specialty pigments and third largest producer of rubber blacks;
(ii) the group's continued satisfactory financial performance in
2012 and Moody's expectation that management will continue to
focus on organic growth and maintain the good operating
profitability achieved in 2012, with an EBITDA margin remaining
in the region of 13%; (iii) management's continued progress with
regard to the percentage of customer contracts containing cost-
pass through mechanisms (i.e. indexed pricing formulas); and (iv)
the company's long-standing relationships with established and
reputable blue-chip clients.


The negative outlook reflects higher financial risks following
the re-leveraging via the issuance of the new PIK toggle notes
and limited opportunities Moody's expects for a quick reduction
in debt after the transaction.

What could change the rating up/down

Although an upgrade is unlikely, Moody's would consider upgrading
the rating if (1) the company's Moody's-adjusted debt/EBITDA
ratio falls below 4.0x; (2) its retained cash flow (RCF)/debt
ratio rises above 15%; (3) the group maintains a sustained
positive free cash flow (FCF)/debt ratio; and (4) the
(FFO+interest)/interest ratio is above 3.0x.

Conversely, Moody's would consider downgrading the rating if (1)
Moody's adjusted debt/EBITDA ratio increases above 5.5x; (2) the
RCF/debt ratio falls below 5%; (3) the group generates a negative
FCF/debt ratio over a prolonged period; and (4) the
(FFO+interest)/interest ratio is below 2.0x. Furthermore, any
material deterioration in the company's liquidity position could
contribute towards a rating downgrade.

The principal methodology used in this rating was the Global
Chemical Industry 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.

Based in Frankfurt, Germany, Orion is the third-largest global
producer of rubber blacks by capacity and the largest global
producer of specialty pigment blacks by revenue. The company has
15 plants (including one joint venture) across Europe, North and
South America, Asia and South Africa. Orion was formed on 29 July
2011, following the leveraged buyout of the carbon black
operations from Evonik Industries. The two shareholders, Rhone
Capital and Triton Capital, each own 44.5% of the company, with
the remainder owned by a passive investor with no voting rights
on key matters. In the 12 months to September 2012, Orion
reported revenues of EUR1.40 billion.

ORION ENGINEERED: S&P Affirms 'B' LT Corporate Credit Rating
Standard & Poor's Ratings Services affirmed its 'B' long-term
corporate credit rating on Germany-based carbon black chemical
company Orion Engineered Carbons Bondco GmbH (Orion).  The
outlook remains stable.

At the same time, S&P affirmed its 'B' issue rating on Orion's
EUR0.55 billion senior secured notes, S&P's 'BB-' issue rating on
the undrawn super senior US$250 million revolving credit facility
(RCF), and its 'CCC+' issue rating on the subordinated
US$425 million 9.25% coupon payment-in-kind (PIK) toggle notes.
S&P's recovery ratings of '4' on the senior secured notes, '1' on
the RCF, and '6' on the PIK toggle notes remain unchanged.

The affirmation follows the successful placement of the
US$425 million subordinated PIK toggle notes, versus the
US$390 million S&P had taken into account in its Jan. 25, 2013,
rating action.  S&P understands Orion will use the proceeds from
the notes to repay the EUR0.3 billion outstanding shareholder
loan.  S&P foresees a limited impact on Orion's adjusted credit
ratios from the increased issuance, with S&P's base-line debt to
EBITDA at 4.4x in 2013 rather than the 4.3x under its previous
US$390 million assumption.

The stable outlook reflects S&P's expectation that Orion's
operating performance should show a fair degree of resilience in
2013, despite a likely difficult operating environment (notably
for European automotive markets).  S&P also take into
consideration the company's geographic diversity and track record
of operational improvements.

In view of Orion's significant debt issuance, rating headroom is
limited at the current level.  Rating downside could materialize
if EBITDA fell to EUR150 million-EUR160 million in 2013 (compared
with about EUR190 million in S&P's current base case) and the
adjusted debt-to-EBITDA ratio exceeded 5.5x.  Significant
weakening of liquidity or covenant headroom would also put the
rating under pressure.

Rating upside is limited at this stage given the company's
aggressive financial policy related to its private equity
ownership, and the reduced headroom for the current rating.
S&P's could, however, revise its business risk profile assessment
upward if it saw continued evidence in 2013 of Orion's
profitability and stronger pricing power even in the current
challenging market environment.


HELLENIC TELECOMS: S&P Raises LT Corporate Credit Rating to 'B+'
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on Greek integrated telecom operator Hellenic
Telecommunications Organization S.A (OTE) to 'B+' from 'B-'.
In addition, S&P affirmed the 'B' short-term corporate credit
rating.  The outlook is stable.

S&P assigned a 'B+' issue rating to the new EUR700 million
unsecured notes, due 2018, issued by OTE's financing vehicle OTE
PLC.  At the same time, S&P raised the existing issue ratings on
OTE's unsecured debt incurred by OTE PLC to 'B+' from 'B-'.

The rating action primarily reflects S&P's view that the group's
liquidity profile has significantly improved as a result of a
series of refinancing transactions in the past three months,
including an unsecured bond issuance of EUR700 million on
Jan. 30, 2013.  As a result, S&P now assess OTE's liquidity
profile as "adequate" under S&P's criteria, compared with "less-
than-adequate" previously, and S&P has raised its financial risk
profile assessment to "aggressive" from "highly leveraged".
Nevertheless, although S&P believes that the country risk in
OTE's home market has somewhat declined as reflected by the
recent upgrade of the sovereign rating on Greece to B-/Stable/B
from SD (selective default), it remains very high and the Greek
banking sector remains challenged.  In S&P's view, this is likely
to continue to significantly constrain OTE's operating
performance and also potentially its liquidity profile in the
near to medium term.

The ratings on OTE reflect S&P's assessments of its "weak"
business risk profile and "aggressive" financial risk profile.

The stable outlook reflects S&P's expectations that OTE will
maintain an adequate liquidity profile and generate free cash
flow of about EUR0.4 billion in 2013 despite the still weak
macroeconomic environment in Greece.  S&P also expects it to
maintain adequate headroom under its maintenance covenants.

Ratings upside could arise if country risk in Greece were to
meaningfully decline and if the group's liquidity profile
strengthened due to further refinancing transactions, asset
disposals, and stronger than expected FOCF.  In addition, S&P
could raise the rating if it believed that DT's commitment to OTE
had strengthened, for example thanks to a pronounced increase in
its shareholding in OTE or other explicit forms of financial

S&P could lower the ratings if its assessment of OTE's liquidity
profile weakens or if the likelihood of Greece's exit from the
eurozone (European Economic and Monetary Union) increased again.

* GREECE: Banks Seek to Ease Bailout Conditions
Patrick Jenkins and Kerin Hope at The Financial Times report that
Greece's banks have begun a frantic lobbying of the bodies behind
the country's bailout, in an effort to ease the conditions
imposed on their recapitalization and avoid full nationalization.

According to the FT, under the terms of Greece's EUR172 billion
international bailout -- backed by the so-called troika of the
European Commission, European Central Bank and the International
Monetary Fund -- EUR27 billion is to be injected into the big
four lenders, with a further EUR2.5 billion to be supplied by
private sector investors.

But it is proving difficult to attract that private sector money,
given a tight April deadline and equity valuations seen as
unrealistic by some analysts, the FT says.  The big four banks
together hold negative equity of about EUR8 billion, adding to
the disincentive for investors to inject fresh capital, the FT

"New investors aren't willing to pay for yesterday's losses," the
FT quotes Nikos Karamouzis, deputy chief executive at Eurobank,
as saying.  "If you want to attract private capital, you have to
re-examine the terms."

According to bankers and analysts, no serious fund management
companies, and only a handful of hedge funds, have shown any
interest in buying equity in Greece's top banks -- National Bank
of Greece, which is midway through a merger with Eurobank; Alpha
Bank; and Piraeus Bank, the FT discloses.

If outside investors fail to appear, the banks risk being fully
nationalised, with the Hellenic Financial Stability Fund, the
Greek body that is administering the bailout money on behalf of
the troika, taking control, the FT states.

Bankers complain that the terms of the recapitalization, set last
summer, valued the banks' equity at a multiple of between one and
two times their book value at a time when most banks across
Europe are trading at a fraction of that price, the FT relates.

The end-April deadline will also be impossible to meet, bankers
say, especially for NBG-Eurobank whose merger process will extend
at least until the summer, according to the FT.

Bankers believe the compulsory timetable for the HFSF to exit is
equally unrealistic, the FT notes.


E-STAR ALTERNATIVE: Creditors Refuse to Extend Payment Deadline
MTI-Econews reports that E-Star Alternative CEO Csaba Soos said
on the Web site of the Budapest Stock Exchange creditors of the
company rejected its proposals at negotiations on Monday in the
framework of a bankruptcy procedure.

According to MTI-Econews, Mr. Soos said that E-Star's creditors
would not extend the company's payment deadline by 120 days.

In late January, the company said it aimed to settle its debts
with creditors during a 15-year reorganization program,
MTI-Econews recounts.  E-Star said it would ensure about HUF9.3
billion for the purpose and use its entire stock of cash,
MTI-Econews relates.

E-Star, which has been under bankruptcy protection since last
December, said it wanted to convince its bondholders, lenders and
suppliers to amend payment deadlines and help the company
implement its reorganization program, MTI-Econews notes.

E-Star said it wanted to pay, in full, bills owed energy
suppliers, unpaid wages and payroll tax, and severance packages,
MTI-Econews discloses.  The company, as cited by MTI-Econews,
said it would propose lenders waive all interest and fees.

E-Star Alternative is a Hungarian energy services company.


OCEAN BAR: Former Owner Declared Bankrupt
Caelainn Barr at The Irish Times reports that former Dublin pub-
owner Eoghan Breslin has joined the growing list of Irish
businessmen declared bankrupt by the British courts.

Mr. Breslin was granted bankruptcy on Dec. 12 in Croydon, Surrey,
the Irish Times recounts.

The entrepreneur ran Ocean Bar Restaurant on Dublin's Charlotte
Quay with business partner Andy Neiland, the Irish Times

Ocean applied for High Court protection in 2008, with debts of
EUR2 million, the Irish Times relates.  According to the report,
in the subsequent scheme of arrangement with creditors, ACCBank
took a 30% write-down on a EUR1.37 million loan secured against
the bar.

Messrs. Breslin and Neiland also had an interest in Ivory pub on
Castle Street, Dalkey, which called in its creditors in April
2010, the Irish Times.


D'ANNUNZIO S.R.L: Intesa Downgrade No Impact on Ba1-Rated Notes
Moody's has determined that the proposal for Banca Intesa S.p.a
("the Swap Counterparty") to continue to act as swap counterparty
following the downgrade of the Bank's long-term rating to Baa2
will not, in and of itself and at this time result in a reduction
or withdrawal of the current ratings of the Class A Asset-Backed
Floating Rate Notes due 2021 (the "Notes") issued by D'Annunzio
S.r.l (the "Issuer").

Moody's opinion address only the credit impact of the proposed
action, and Moody's is not expressing any opinion as to whether
the action has, or could have, other non-credit related effects
that may have a detrimental impact on the interests of note
holders and/or counterparties.

Moody's has considered the proposal described above, in relation
to the downgrade of the Swap Counterparty to Baa2 (the 16th of
July 2012). Moody's has assessed the probability and impact of a
default of the Swap Counterparty on the ability of the Issuer to
meet its obligations under the transaction, including the impact
of the loss of any benefit from the swap and any obligation the
Issuer may have to make a termination payment.

Given that no formal amendment of the swap schedule was
undertaken and that none of the remedies envisaged by the
transaction documents (i.e. neither having a credit support annex
being entered into between the Swap Counterparty and the Issuer,
having the obligations of the Swap Counterparty under the swap
guaranteed nor having the Swap Counterparty replaced by an
eligible entity) was implemented by the Swap Counterparty
following its downgrade below the eligible rating, Moody's
considers that the transaction no longer benefits from an
effective replacement trigger for the Swap Counterparty. Hence
the transaction is now considered to be directly linked to the
ratings of the Swap Counterparty. However, as the Swap
Counterparty is currently rated Baa2/P-2, there is no impact for
the currently rated notes at Ba1(sf).

Moody's methodology for rating this transaction considers a full
linkage to the rating of the region in which assets are located
(i.e., Abruzzo), as (1) the assets are unsecured, direct
obligations of the Italian region; and (2) the rated securities
do not benefit from credit enhancement or liquidity support.

Moody's noted that on July 2, 2012, it released a Request for
Comment, in which the rating agency has requested market feedback
on potential changes to its rating implementation guidance for
its "Approach to Assessing Linkage to Swap Counterparties in
Structured Finance Cashflow Transactions". If the revised rating
implementation guidance is implemented as proposed, the rating on
the Notes should not be negatively affected.

ICCREA BANCAIMPRESA: Fitch Affirms 'BB+' Rating on Tier 2 Notes
Fitch Ratings has affirmed ICCREA Holding's Long-term Issuer
Default Rating (IDR) at 'BBB+' with a Negative Outlook, Viability
Rating (VR) at 'bbb+', Short-term IDR at 'F2', Support Rating at
'2' and Support Rating Floor (SRF) at 'BBB'.  At the same time,
the agency has affirmed ICCREA Holding's two main subsidiaries,
Iccrea Banca and Iccrea Banca Impresa.

Rating Action Rationale

The affirmations reflect the group's key role within the Italian
mutual banking sector, for which it acts as the largest central
institution. This means that, in Fitch's opinion, ICCREA Holding
and its main subsidiaries benefit from ordinary support from the
member banks of the mutual banking sector. This includes the
benefits for ICCREA from the sector's strong franchise, but also
from access to funding and capital from the sector's banks.

The affirmation also takes into account deteriorating asset
quality at the bank, offset somewhat by improved capitalization
and sound liquidity. Liquidity is held up by the Italian mutual
banks that place their excess liquidity with Iccrea Banca.


As the Long-term IDRs assigned to ICCREA Holding, Iccrea Banca
and IBImpresa are based on ICCREA Holding's VR, a downgrade of
the VR would result in a downgrade of the Long-term IDRs of all
three entities.

Iccrea group's strategy is to increase its role of providing
products and services to the Italian mutual banks through
IBImpresa, which provides corporate loans to clients of the
sector and Iccrea Banca, which primarily acts as the sector's
main central institution. ICCREA Holding's ratings are based on
its instrumental role in the sector, and any weakening of its
importance, which Fitch does not expect, would put pressure on

Profitability has suffered from high loan impairment charges
reflecting mainly troubled corporate loans, including a high
proportion of leasing assets. Gross impaired loans reached 14% of
gross loans at end-June 2012, and loan impairment allowance
coverage of 31% is low and below that of peers. Coverage relies
on the value of collateral, often real estate related. Fitch
expects the bank to increase the loan impairment allowance
coverage of impaired loans, but that this increase will be
manageable for the bank and not result in an erosion of
capitalization. However, a further increase in new impaired loans
would place pressure on ratings given the bank's only adequate
capitalization. Any upward pressure on the ratings would require
a material improvement in asset quality, which Fitch considers
unlikely in the near term.

Funding and liquidity at the group benefit from Iccrea Banca's
role as a large intermediary for the mutual banking sector's
liquidity. Iccrea Banca also acts as an intermediary for the
sector's banks to access ECB funding, which resulted in Iccrea
Banca receiving EUR12.6 billion in long-term funding from the
central bank, of which it passed on EUR11.6 billion, which was
raised on behalf of sector banks, to the sector banks. Fitch
considers the bank's liquidity sound, but any weakening would put
pressure on ratings.

Capitalization improved after a capital increase in Q411, and
ICCREA Holding had a FCC/RWA ratio of 8.8% at end-June 2012.
Fitch considers this ratio only just adequate given deteriorated
asset quality, but the group's shareholders, which consist of the
mutual banking sector banks, have shown their willingness to date
to participate in capital increases, and Fitch expects that they
would provide additional capital if needed.

The IDRs of ICCREA Holding's main subsidiary banks are equalized
and are driven by the group's VR, which is based on an assessment
of the consolidated group. This reflects Fitch's view that
capital and funding within the Iccrea group are fungible, and
changes to the IDR would affect all rated group entities.


ICCREA Holding's Support Rating and SRF reflect Fitch's view that
there is a high probability that ICCREA Holding would receive
support from the Italian authorities if needed. The agency
believes that the mutual banking sector, which has an aggregate
market share of about 7% of loans in Italy, is of systemic
importance, and that support for ICCREA Holding would be used to
provide support for the sector banks if needed.

The Support Rating and SRFs are potentially sensitive to any
change in assumptions around the propensity or ability of Italy
to provide timely support to the bank. This might arise if
Italy's rating was downgraded or by changes in Fitch's view of
the authorities' propensity to provide support, which is
currently not factored into the ratings.


The subordinated debt and other hybrid capital issued by
IBImpresa is notched down from ICCREA Holding's VR in accordance
with Fitch's criteria to reflect the different non-performance
and relative loss severity risk profiles of these instruments.
Their ratings are primarily sensitive to changes in the VR, which
drives the ratings.

The rating actions are as follows:

Iccrea Holding S.p.A.
  Long-term IDR: affirmed at 'BBB+'; Outlook Negative
  Short-term IDR: affirmed at 'F2'
  VR: affirmed at 'bbb+'
  Support Rating: affirmed at '2'
  Support Rating Floor: affirmed at 'BBB'

Iccrea Banca S.p.A.
  Long-term IDR: affirmed at 'BBB+'; Outlook Negative
  Short-term IDR: affirmed at 'F2'
  Support Rating: affirmed at '2'
  EUR5bn EMTN Programme: affirmed at 'BBB+'/'F2'
  Senior unsecured debt: affirmed at 'BBB+'

Iccrea BancaImpresa
  Long-term IDR: affirmed at 'BBB+'; Outlook Negative
  Short-term IDR affirmed at 'F2'
  Support Rating: affirmed at '2'
  Senior unsecured debt and EMTN Programme: affirmed at 'BBB+'
  Subordinated notes (ISIN XS0222800152 and XS0287519663):
   affirmed at 'BBB'
  Subordinated upper Tier 2 notes (ISIN XS0295539984): affirmed
   at 'BB+'

SEAT PAGINE: May Launch Second Round of Restructuring
Natalie Harrison at Reuters reports that Seat Pagine Gialle's
surprise decision to suspend a bond coupon is now expected to
trigger a second round of restructuring.

The announcement, which blamed the weak Italian economy for a
continuing decline in print advertising sales, came just five
months after the completion of the company's first lengthy
restructuring, leaving the market second-guessing the new board's
motives, Reuters notes.

Chief executive Vincenzo Santelia, appointed by former
subordinated bondholder Anchorage in October, was authorized to
make a EUR25 million amortization loan payment in November that
had not been due until December, Reuters recounts.  That
decision, as well as the EUR200 million of cash on Seat's balance
sheet at the end of December, suggested the company was able to
meet all obligations despite facing stiff competition from Google
and others, Reuters states.

"To turn around just two months later, and say that it may not
pay the bond coupon has taken everyone, including the advisers on
the restructuring, by surprise," Reuters quotes one London-based
restructuring lawyer as saying.

Other lawyers and Seat lenders shared that view, Reuters notes.

"The company clearly thought it had enough cash, so why the
sudden change in its stance?" asked a second restructuring lawyer
following the developments, Reuters relates.

The EUR42 million coupon due on a EUR750 million senior secured
bond was due to be paid on Jan 31, but there is a 30-day grace
period before non-payment would trigger a default, Reuters

Before then the board must decide whether to pay EUR6.3 million
of interest due on its EUR600 million senior loans on February 6,
Reuters says.  If it elects not to, as some in the market expect,
a default would be triggered after a three-day grace period,
Reuters notes.

According to Reuters, lawyers said that changes in Italian law
that leave directors at risk of criminal charges if they act
inappropriately could be another trigger for the sudden decision
to reassess the company's debt burden.

"To me, it looks as if the new management has come in, looked at
the numbers and cash resources and made a decision that there is
too much debt," the second lawyer, as cited by Reuters, said.

Under last September's restructuring, holders of subordinated
bonds agreed to swap their holdings, with a nominal value of
EUR1.3 billion, for an 88% equity stake in the company and 8% of
the senior bonds, Reuters recounts.

The original senior bondholders were left untouched, Reuters

Theoretically, a second restructuring to reduce debt further
would give the company a greater chance of survival -- and
benefit its new equity holders, Reuters says.  The general
consensus is that the company's EUR1.5 billion debt load remains
too heavy, Reuters states.

The senior bonds, which pay a coupon of 10.5%, are certainly
expensive, especially in comparison with the 540bp margin on the
company's senior bank debt, Reuters says.  According to Reuters,
that has led to speculation that the looming second restructuring
is a result of former subordinated bondholders' desire to get
lenders and those holding the senior bonds to share their pain.

                        About SEAT Pagine

SEAT Pagine Gialle SpA (PG IM) -- is an
Italy-based company that operates multimedia platform for
assisting in the development of business contacts between users
and advertisers.  It is active in the sector of multimedia
profiled advertising, offering print-voice-online directories,
products for the Internet and for satellite and ortophotometric
navigation, and communication services such as one-to-one
marketing.  Its products include EuroPages, PgineBianche,
Tuttocitta and EuroCompass, among others.  Its activity is
divided into four divisions: Directories Italia, operating
through, Seat Pagine Gialle; Directories UK, through TDL
Infomedia Ltd. and its subsidiary Thomson Directories Ltd.;
Directory Assistance, through Telegate AG, Telegate Italia Srl,
11881 Nueva Informacion Telefonica SAU, Telegate 118 000 Sarl,
Telegate Media AG and Prontoseat Srl, and Other Activitites
division, through Consodata SpA, Cipi SpA, Europages SA, Wer
liefert was GmbH and Katalog Yayin ve Tanitim Hizmetleri AS.


BANKAS SNORAS: Former Owner Loses Bid to Lift Asset Freeze
Erik Larson at Bloomberg News reports that former Bankas Snoras
AB owner Vladimir Antonov, who is fighting extradition to
Lithuania to face possible fraud charges, lost a U.K. court
ruling to lift a freeze of his assets and delay a related civil

Bloomberg relates that Judge Elizabeth Gloster in London on
Monday rejected Mr. Antonov's claim that Snoras withheld evidence
and took too long to request the so-called worldwide freezing
order.  His request to avoid giving a full list of his holdings
was also denied, Bloomberg notes.

Mr. Antonov, a Russian, and his Lithuanian business partner
Raimondas Baranauskas were detained in London in 2011 after
Lithuania issued a European arrest warrant on claims the men
siphoned at least LTL1.7 billion (US$668 million) from the
country's third-biggest bank by deposits, causing its collapse,
Bloomberg recounts.

According to Bloomberg, Mr. Antonov, accused of using the money
to buy luxury homes, cars and a U.K. soccer team, claims the
cases may be politically motivated due to articles in newspapers
he owned.

Mr. Antonov, who lives in Britain, argued the civil case should
be delayed while his extradition is decided, Bloomberg notes.
The extradition trial is delayed until July, Bloomberg relates.

Judge Gloster rejected Mr. Antonov's claim his defense in the
bank's civil litigation may alert Lithuanian authorities to his
potential legal strategy in a criminal matter, Bloomberg

"Damage caused to the bank and its underlying creditors" from a
delay would "considerably outweigh any possible prejudice that
Mr. Antonov might suffer," Bloomberg quotes Judge Gloster as

                       About Bankas Snoras

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

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

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


JUBILEE CDO I: S&P Lowers Rating on Class E Notes to 'CCC-'
Standard & Poor's Ratings Services raised its ratings on Jubilee
CDO I-R B.V.'s class A and B notes and affirmed its rating on the
class C notes.  At the same time, S&P has lowered its ratings on
the class D and E notes.

The rating actions follow S&P's review of the transaction's
performance.  S&P performed a credit and cash flow analysis and
assessed the support that each participant provides to the
transaction by applying S&P's 2012 counterparty criteria.

S&P has subjected the capital structure to a cash flow analysis
to determine the break-even default rates for each rated class of
notes at each rating level.  In S&P's analysis, it used the
portfolio balance that it considered to be performing
(EUR851,787,110), the current weighted-average spread (4.16%),
and the weighted-average recovery rates calculated in accordance
with our 2009 criteria update for corporate collateralized debt
obligations (CDOs).  S&P applied various cash flow stress
scenarios, using four different default patterns, in conjunction
with different interest rate stress scenarios for each liability
rating category.

In the course of S&P's analysis, it observed that the aggregate
collateral balance decreased by EUR13.3 million since its last
surveillance review in December 2011, due to an increase in
defaulted assets.

This negative development was partly compensated by:

   -- An increase in the weighted-average spread earned on
      Jubilee CDO I-R's collateral pool to 416 basis points (bps)
      from 348 bps; and

   -- A decrease of the portfolio's weighted average life, which
      had a positive effect on the cash flow results, as well as
      on the scenario default rates.

S&P's analysis shows that 15.57% of the portfolio comprises non-
euro-denominated loans, which are hedged under cross-currency
swap agreements with various counterparties.  In S&P's opinion,
the downgrade remedies for these cross-currency swaps do not
fully comply with its 2012 counterparty criteria.  Consequently,
S&P has considered in its cash flow analysis scenarios where the
currency swap counterparties do not perform and where, as a
result, the transaction is exposed to changes in currency rates.

In S&P's opinion, the credit enhancement available to the class A
and B notes is consistent with higher ratings than S&P's had
previously assigned.  This takes into account S&P's credit and
cash flow analysis and its 2012 counterparty criteria.  S&P has
therefore raised its rating on the class A notes to 'AA (sf)'
from 'AA- (sf)'.  S&P has also raised its rating on the class B
notes to 'A+ (sf)' from 'A- (sf)'.

At the same time, S&P has affirmed its 'BB+ (sf)' rating on the
class C notes because its credit and cash flow analysis indicates
that the level of credit enhancement available to these notes is
commensurate with the current rating.

S&P has lowered its ratings on the class D and E notes following
the application of its largest obligor default test, a
supplemental stress test that S&P introduced in its 2009 criteria
update for corporate CDOs.  The supplemental test results have
worsened since S&P's last surveillance review in December 2011
due to the decrease in the aggregate collateral balance.

Jubilee CDO I-R is a managed cash flow collateralized loan
obligation (CLO) transaction that securitizes loans to primarily
European speculative-grade corporate firms.  The transaction
closed in May 2007 and is managed by Alcentra Ltd.


SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and
a description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.  The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at:



Class                  Rating
              To                 From

Jubilee CDO I-R B.V.
EUR900 Million Senior Secured Floating-Rate and Subordinated

Ratings Raised

A              AA (sf)              AA- (sf)
B              A+ (sf)              A- (sf)

Rating Affirmed

C              BB+ (sf)

Ratings Lowered

D             CCC+ (sf)          B+ (sf)
E             CCC- (sf)          CCC+ (sf)

SNS REAAL: Moody's Lowers Subordinated Debt Rating to 'C'
Moody's Investors Service downgraded SNS REAAL's and SNS Bank's
dated subordinated debt ratings to C from Caa3 and the entities'
Tier 1 securities ratings to C(hyb) from Ca(hyb).

The rating action follows the decision by the Government of the
Netherlands (Aaa negative) to nationalize the entire SNS REAAL
group on 1 February 2013 under the Intervention Act passed by
Parliament in 2012. All issued shares in SNS REAAL NV and SNS
Bank NV held outside of SNS REAAL NV or its group companies will
be expropriated. As a result, the government will assume 100%
control of SNS REAAL and of SNS Bank.

At the same time, Moody's placed SNS Bank's E bank financial
strength rating, which is equivalent to a standalone credit
assessment of ca, on review for upgrade.

All other ratings of the SNS REAAL group remain unaffected by
this rating action.

Ratings Rationale:

Downgrade of subordinated and hybrid debt ratings

As part of the nationalization, the Minister of Finance announced
the expropriation of all dated subordinated debt instruments and
of all Tier 1 securities issued by SNS REAAL and SNS Bank.
Although the expropriation decree allows bondholders to file
objections against this decision within ten days of the date of
the publication of the decree, Moody's considers all these
expropriated securities to be in default. Given the scale of the
government's capital injection relative to the expropriated
securities, Moody's believes that there is little prospect for a
recovery of principal or interest for these securities. As a
result, the rating agency downgraded all these instruments to C
respectively to C(hyb).

The expropriation appears to exclude the hybrids issued by SRLEV,
the group's life insurance company. The hybrid instruments issued
by SRLEV are thus unaffected at B1(hyb), on review with direction

Review for upgrade of sns bank's standalone financial strength

At the time of its announcement, the government also announced
that SNS REAAL's problematic real estate portfolio would be
isolated and that it would inject EUR2.9 billion of capital, as
well as providing a further EUR1.1 billion in state loans and
EUR5 billion in state guarantees. These measures are intended to
restore the group's and the bank's financial health and to allow
for a re-privatization as soon as feasible, which is the clearly
stated intent of the Dutch government.

Moody's believes that these actions have the potential to restore
the financial fundamentals of SNS Bank and thereby reduce the
risks of a loss in depositor, investor and customer confidence,
although the bank's ability to preserve its franchise will need
to be assessed over time. As a result, the rating agency has
placed SNS Bank's BFSR on review for upgrade.

Other Ratings of the SNS Reaal Group

All other ratings of the SNS REAAL Group, including SNS Bank's
senior debt ratings (Baa3/P-3, on review for downgrade), SNS
REAAL's senior debt rating (Ba2, on review for downgrade), the
insurance financial strength ratings of SRLEV and REAAL
Schadeverzekeringen (Baa2, on review for downgrade), as well as
the ratings of the hybrids issued by SRLEV (B1(hyb), on review
with direction uncertain) are unaffected by this rating action
and remain on review.

Moody's review on these ratings will focus on (1) the extent to
which the nationalization and potential remedial measures imposed
by the European Commission may dissipate the uncertainty on the
future of the banking and insurance operations of the group and
reduce the risks of franchise deterioration; and (2) the residual
risks for senior creditors of both SNS Bank and SNS REAAL, as
well as for the hybrid bondholders of SRLEV.

What Could Move The Ratings Up/Down

Subordinated and hybrid debt ratings

The ratings on dated subordinated debt instruments and Tier 1
securities issued by SNS REAAL and SNS Bank have no outlook.
Moody's would consider an upgrade of these securities if Moody's
believes there would be meaningful expected recovery for these

SNS Bank's Standalone Financial Strength

SNS Bank's standalone credit assessment may benefit from the
nationalization provided that Moody's considers that the measures
(1) would restore the capital of SNS Bank and immunize the group
against future losses in SNS Bank's legacy Property Finance
portfolio; (2) would reduce the risks of a potential shift in
depositor and customer confidence; and (3) would not result in
the imposition of material restrictions from the European

List of Affected Ratings

The following ratings were downgraded to C with no outlook:

SNS Bank N.V. -- dated subordinated debt rating to C from Caa3;

SNS Bank N.V. -- dated subordinate MTN rating to (P)C from

SNS Bank N.V. -- EUR200 million Tier 1 securities (ISIN
XS0172565482) rating to C(hyb) from Ca(hyb);

SNS Bank N.V. -- EUR320 million Tier 1 securities (ISIN
XS0468954523) rating to C(hyb) from Ca(hyb);

SNS REAAL N.V. -- subordinated debt rating to C from Caa3;

SNS REAAL N.V. -- subordinated MTN rating to (P)C from (P)Caa3.

SNS REAAL N.V. -- Tier 1 securities rating to C(hyb) from

The following rating was placed on review for upgrade:

SNS Bank N.V. -- bank financial strength rating at E (equivalent
to standalone credit assessment of ca).

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

The principal methodologies used in rating SNS Reaal NV, REAAL
Schadeverzekeringen NV and SRLEV NV were Moody's Global Rating
Methodology for Property and Casualty Insurers Published in May
2010, Moody's Global Rating Methodology for Life Insurers
published in May 2010, and Moody's Guidelines for Rating
Insurance Hybrid Securities and Subordinated Debt Published in
January 2010.

List of affected Issuers by Releasing Office France:

Releasing Office:

   Moody's France SAS
  96 Boulevard Haussmann
  75008 Paris

Issuer: SNS Reaal N.V.

Issuer: SRLEV NV

Issuer: REAAL Schadeverzekeringen NV

S L O V A K   R E P U B L I C

EUROPEAN HEALTH: MCH Seeks EUR300-Mil. Compensation Over 2008 Law
The Slovak Spectator reports that the Bratislava I District Court
has turned to the European Court of Justice with a question in
the case of Medical Care Holding Limited (MCH) against the Slovak

A law banning the profits of health-insurers was introduced in
Slovakia in 2008, the Slovak Spectator recounts.  MCH, a company
founded by Slovak financial group J&T in Cyprus, owned European
Health Insurer (EZP), which announced bankruptcy and withdrew
from the Slovak market after the aforementioned bill came into
effect, the Slovak Spectator discloses.  MCH, the Slovak
Spectator says, is now suing the state of Slovakia, claiming
compensation of around EUR30 million.

According to the Slovak Spectator, MCH's lawyer Alexander Kadela
as quoted by TASR said "Half of the amount is represented by a
real loss in assets, while the rest is represented by lost

The lawyer said that the law was at odds with Slovakia's
Constitution, the Convention for the Protection of Human Rights
and laws of the European Union, the Slovak Spectator notes.

The Slovak Spectator relates that spokesman for the Bratislava
court Pavol Adamciak told TASR that the European court should
decide whether the case really involved a violation of EU
legislation, and whether this possible violation was significant
enough to oblige the state to pay out compensation to the

"The Slovak parliament fully rejects the plaintiff's claim," the
Slovak Spectator quotes Sona Potheova from the Parliament
Office's communications department as saying.

The Slovak Constitutional Court decided in 2011 that the law was
at variance with the constitution, the Slovak Spectator recounts.
It was subsequently amended, the Slovak Spectator notes.


CASER S.A.: Moody's 'Ba2' Rating Still on Review for Downgrade
Moody's Investors Service continues the review for downgrade of
the Ba2 insurance financial strength rating of Caser initiated on
June 27, 2012. The review continues to reflect the review on
Spanish savings banks' debt ratings.

Caser has a meaningful indirect and direct exposure to Spanish
saving banks, namely through its ownership, its high reliance on
the saving banks' distribution network to sell insurance
products, and a significant exposure to saving banks' debts and

Ratings Rationale:

Moody's rating review for Caser reflects the reviews on most of
the owner Spanish savings banks. The review on the Spanish
savings banks reflects the significant downside risks to their
standalone credit profiles, combined with the continuing
uncertainty related to planned mergers between some savings

In Moody's view, the ratings of owner Spanish saving banks --
whose senior debt ratings are largely in the Ba range --
constrain Caser's rating, because of strong financial and
operational linkages between the banks and the insurer. In
particular, Caser's significant investment exposure to Spanish
savings banks' debt weighs on its asset quality and
capitalization. Furthermore, Moody's also believes that the
ongoing restructuring and consolidation of Spanish saving banks
will likely weaken Caser's long-term franchise, given its high
reliance on its owner banks for distribution.

Moody's notes that Caser's strong track record of profitability
(return on capital above 9% in recent years), low product-risk
profile, prudent provisions and good solvency levels can partly
mitigate potential investment losses. At year-end 2011, Caser
reported a net income of EUR116 million, up 25% year-on-year,
which also compares favorably with pre-crisis levels, despite the
difficult economic environment in Spain (2007: EUR41 million),
and regulatory solvency cover stood at 2.0x. However, Moody's
says that the asset quality, capitalization and distribution
pressures mentioned above may more than offset Caser's credit

Focus of the Review

Moody's review for Caser is in line with the review on most
Spanish savings banks, and will consider the potential for any
franchise, distribution and asset quality pressures as described
above, as well as the ultimate impact of any losses arising from
Caser's exposure to Spanish savings banks' hybrids.

The following rating remains on review for further downgrade:

Caser S.A.- insurance financial strength rating Ba2

What Could Move The Ratings Up/Down

Moody's says that an upgrade of the IFSRs is unlikely at the
moment given the review for downgrade.

Downwards pressure on the IFSR could develop following (i)
material deterioration in capitalization following burden sharing
on some Spanish savings banks' hybrids ii) a further downgrade of
Spanish saving banks, which would further deteriorate the group's
asset quality and capitalization; and/or (iii) significant
deterioration in the group's operating performance with a
combined ratio consistently above 100% and returns on capital
below 4%.

The methodologies used in this rating/analysis were Moody's
Global Rating Methodology for Life Insurers published in May
2010, and Moody's Global Rating Methodology for Property and
Casualty Insurers published in May 2010.

Headquartered in Madrid, Spain, CASER is the eight largest
insurance group in Spain, with a market share of approximately
4.7% at year-end 2011. It offers an extensive range of life, non-
life and pension products, distributing its products mostly
through Spanish savings banks. CASER reported consolidated gross
premiums written of EUR2,797 million, and Shareholders' Equity
(including minority interests and valuation reserves) of EUR1,239
million at year-end 2011.

IM CAJAMAR: Fitch Affirms 'CCC' Rating on Class B Notes
Fitch Ratings has affirmed IM Cajamar Empresas 4, F.T.A.'s notes,
as follows:

  EUR654.5m Class A (ISIN ES0347454003): affirmed at 'A-sf';
  Outlook Stable

  EUR210.0m Class B (ISIN ES0347454011): affirmed at 'CCCsf';
  Recovery Estimate 50%

The affirmation reflects the transaction's performance within
Fitch's initial expectations. Loans more than 90 days in arrears
represent 2.13% of the portfolio, up from 0% at closing in
February 2012. The transaction experienced the first default in
the portfolio in December 2012. Defaulted assets currently
account for 0.01% of the portfolio notional. The transaction
defines loans in arrears of more than 12 months as defaulted.

IM Cajamar Empresas 4, F.T.A. is a granular cash flow
securitisation of a static portfolio of secured and unsecured
loans granted to Spanish small- and medium-sized enterprises by
Cajamar Caja Rural, Sociedad Cooperativa de Credito (now part of
Cajas Rurales Unidas, Sociedad Cooperativa de Credito; rated

* Fitch Sees Strong Bond Issuance for Iberian Corporates in 2013
Fitch Ratings says that the beginning of 2013 has brought
significant funding activity for corporate issuers located in
Spain and Portugal.

Fitch says "as long as the sovereign crisis in the eurozone
remains under control, we expect to see strong bond issuance for
Iberian corporates during 2013. Higher-rated corporates ('BBB' or
above) could possibly access the market to refinance higher
priced debt funding issued during 2012 given the relative market
stability of the past few months. Additionally, we also expect an
increase in bond issuance for low investment grade or high yield
issuers, especially in Spain given the banking crisis. These
types of corporates are now looking to diversify their funding
sources to reduce their average cost of debt and their exposure
to domestic banks, as well as lengthen their debt maturity

U N I T E D   K I N G D O M

HMV GROUP: Sells Remaining Entertainment Venues to Jeremy Joseph
Graeme Evans at Press Association reports that around 200 jobs
were secured on Monday after HMV's administrators offloaded the
retail group's last remaining music and entertainment venues.

HMV's majority shareholding in G-A-Y Group, which comprises a
number of bars and Heaven nightclubs, has been sold to the
founder and other shareholder in the business, Jeremy Joseph,
Press Association relates.

Having sold a number of music and entertainment venues last year,
including the Hammersmith Apollo, HMV was left with the G-A-Y
bars and Heaven nightclubs, Press Association notes.

According to Press Association, Deloitte joint administrator Rob
Harding said: "We are pleased to have completed the sale of HMV's
shareholding in G-A-Y to the natural purchaser of this stake so
shortly after our appointment.

"This will benefit the creditors of HMV and we wish Mr. Joseph
the best in the beginning of a new era for G-A-Y."

The sale comes amid speculation that HMV's administrator Deloitte
could announce the closure of between 60 and 100 HMV music stores
this week, resulting in the loss of around 1,500 jobs, Press
Association notes.

As reported by the Troubled Company Reporter on Jan. 17, 2013,
the Financial Times related that HMV Group went into
administration after suppliers refused a request for a GBP300
million lifeline for the struggling retailer.  Deloitte, which
has been advising HMV's lending banks, was appointed as
administrator to the chain on Jan. 14, the FT disclosed.

United Kingdom-based HMV Group plc is engaged in retailing of
pre-recorded music, video, electronic games and related
entertainment products under the HMV and Fopp brands, and the
retailing of books principally under the Waterstone's brand.  The
Company operates in four segments: HMV UK & Ireland, HMV
International, HMV Live, and Waterstone's.

MF GLOBAL: Settlement Brings 82% for Customers
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the MF Global Inc. brokerage won approval from the
bankruptcy judge for a settlement with U.K. affiliate MF Global
UK Ltd.

According to the report, including a settlement with the broker's
parent, MF Global Holdings Ltd., domestic futures customers can
expect a 93% recovery, MF Global trustee James Giddens said in a
court filing.  For customers trading futures on foreign
exchanges, distributions will range between 75% and 82%, Mr.
Giddens said.  Customers with claims on securities should be paid
in full.

The report notes that although there were no objections to the
settlement, U.S. Bankruptcy Judge Martin Glenn wrote an 11-page
opinion laying out details of the complex accord and concluding
that it "is beneficial for the estate and fully satisfies the
standards for approving settlements."

The settlement between the MF Global broker and the holding
company parent will be approved separately.  Judge Glenn on
Jan. 31 also authorized Mr. Giddens to make additional
distributions to customers based on the settlement.  The initial
distribution to domestic customers will be 81%, with 18% for
foreign accounts and 60% for securities accounts, Mr. Giddens
said in a court filing.

Mr. Giddens previously said the settlement most benefits U.S.
customers who traded on foreign exchanges.  The settlement
provides for Mr. Giddens immediately to receive US$291 million,
with payments from the U.K. broker ultimately totaling between
US$500 million and US$600 million.

                          About MF Global

New York-based MF Global -- was one
of the world's leading brokers of commodities and listed
derivatives.  MF Global provides access to more than 70 exchanges
around the world.  The firm also was one of 22 primary dealers
authorized to trade U.S. government securities with the Federal
Reserve Bank of New York.  MF Global's roots go back nearly 230
years to a sugar brokerage on the banks of the Thames River in

MF Global Holdings Ltd. and MF Global Finance USA Inc. filed
voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-
15059 and 11-5058) on Oct. 31, 2011, after a planned sale to
Interactive Brokers Group collapsed.  As of Sept. 30, 2011, MF
Global had US$41,046,594,000 in total assets and
US$39,683,915,000 in total liabilities.

Judge Honorable Martin Glenn presides over the Chapter 11 case.
J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric
Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve
as bankruptcy counsel.  The Garden City Group, Inc., serves as
claims and noticing agent.  The petition was signed by Bradley I.
Abelow, Executive Vice President and Chief Executive Officer of
MF Global Finance USA Inc.

Louis J. Freeh was named the Chapter 11 Trustee for the
bankruptcy cases of MF Global Holdings Ltd. and its affiliates.
The Chapter 11 Trustee tapped (i) Freeh Sporkin & Sullivan LLP,
as investigative counsel; (ii) FTI Consulting Inc., as
restructuring advisors; (iii) Morrison & Foerster LLP, as
bankruptcy counsel; and (iv) Pepper Hamilton as special counsel.

An Official Committee of Unsecured Creditors has been appointed
in the case.  The Committee has retained Capstone Advisory Group
LLC as financial advisor.

The Securities Investor Protection Corporation commenced
liquidation proceedings against MF Global Inc. to protect
customers.  James W. Giddens was appointed as trustee pursuant to
the Securities Investor Protection Act.  He is a partner at
Hughes Hubbard & Reed LLP in New York.

Jon Corzine, the former New Jersey governor and co-CEO of
Goldman Sachs Group Inc., stepped down as chairman and chief
executive officer of MF Global just days after the bankruptcy

OLYMPIA FURNITURE: In Administration; 135 Jobs Affected
Annabelle Dickson at Press Association reports that Olympia
Furniture has collapsed into administration, putting 135 jobs
at risk.

According to Press Association, administrators are still looking
for a buyer for the company.

Olympia, which has suffered amid a downturn in the big-
ticket furniture market, was bought by turnaround specialist
SKG Capital in 2011 after it lost a major contract with Swedish
flatpack giant Ikea, Press Association recounts.

But administrators said the general economic conditions
had meant the company was unable to fund the significant losses
caused by the loss of the contract, Press Association notes.

"We were engaged by the directors of Olympia Furniture to
seek a sale of the business in order to maximize the position
for creditors and the 135 employees," Press Association quotes
administrator Ben Woolrych, partner at FRP Advisory LLP, as

"Unfortunately, however, it has not been possible to secure a
sale to date and the company was placed into administration
[Monday] afternoon.

"We are continuing to market the business for sale and liaise
with customers while we assess the ability to continue trading
within administration."

Ashton-under-Lyne-based Olympia Furniture makes sofas, suites and
sofa beds for retail giants Tesco, Asda and Argos.

PREMIER FOODS: Geoff Eaton Steps Down as Chief Operating Officer
Louise Lucas at The Financial Times reports that heavily indebted
Premier Foods has lost its second-in-command just a week after
chief executive Mike Clarke quit the board.

The announcement that chief operating officer (COO) Geoff Eaton
was leaving with immediate effect came on new chief executive
Gavin Darby's first day at the company, the FT relates.

Analysts suggested the announcement gave an insight into how
Mr. Darby's strategy will differ from that of his predecessor
Mr. Clarke, who took up the reins 18 months ago with a mandate to
turn round what was once the UK's biggest food producer, the FT

Mr. Clarke, whose departure was announced last Monday, hired
Mr. Eaton as chief operating officer in October, saying he
required help to "accelerate" the company's restructuring, the FT

Mr. Darby, by contrast, appears to be aiming for a flatter
management structure and is eliminating the COO role, the FT

Some analysts had criticized Mr. Clarke's predilection for
hiring, arguing that a group with net debt of nearly GBP1 billion
could ill-afford extra layers of management, the FT recounts.
Mr. Clarke justified the extra roles on the basis of the scope of
the turnaround and complexity involved in exiting manufacturing
businesses, the FT discloses.

Premier Foods said there were no more anticipated changes to the
remaining management team, the FT relates.

Premier Foods is the maker of Mr. Kipling cakes and Hovis bread.

RANGERS FOOTBALL: HMRC Seeks to Overturn Benefit Trust Ruling
Peter Woodifield at Bloomberg News reports that the HM Revenue
and Customs on Monday said it is trying to overturn a November
ruling that allowed the use of employee benefit trusts by the
former Rangers Football Club.

According to Bloomberg, Ron Barrie, a spokesman for HMRC said
that the U.K. tax authority was on Monday given leave to appeal
against the ruling, Ron Barrie, said in an interview.
Mr. Barrie, as cited by Bloomberg, said that the appeal is
scheduled to be heard by a Second Tier Tax Tribunal later this

The club, which went into liquidation last year, used the trusts
to make tax-free loans totaling GBP47.7 million (US$75.1 million)
to players and staff between 2001 and 2010 in the form of tax-
free loans, Bloomberg recounts.  HMRC had challenged the
payments, arguing they were illegal and subject to tax, Bloomberg

Judges on the First Tier Tax Tribunal ruled 2-to-1 in November
that the payments were loans that could be repaid and so were not
liable to income tax, Bloomberg discloses.  Appeals against their
rulings are only allowable on a point of law, Bloomberg says,
citing the Ministry of Justice Web site.

                   About Rangers Football Club

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

SCIENTIAM: In Administration, Informs 40 Staff
Liverpool Daily Post reports that Scientiam, the company behind
training center Liverpool One, has gone into administration and
around 40 staff is affected.

The report relates that according to the last set of accounts
filed in January last year, its ultimate parent company is Wirral
Metropolitan College.  However, college principal Sue Higginson
insisted that was not the case, according to Liverpool Daily

The report relates that Ms. Higginson was present when Scientiam
staff were informed of the administration as was Chief Executive
Sara Challinor and Mazars Administrator Tim Askham.

The report recalls that Liverpool's elected mayor Joe Anderson
officially opened the GBP70,000 Academy One training centre at
Liverpool One in April 2011.  The report relates that it is a
joint venture between the National Skills Academy for Retail
(NSAR) and Scientiam.

Scientiam last filed accounts in January last year covering the
12 months to July 31, 2011, the report discloses.

Liverpool Daily Post says that they showed the company recorded a
pre-tax loss of GBP29,641 from a turnover of just over GBP3
million.  This was a significant improvement on losses of more
than GBP306,000 in the previous year, the report notes.

Scientiam is the company behind the retail training center at
Liverpool One.


* EUROPE: Three Euro-Area States Seek to Speed Up Bank Bail-Ins
Jim Brunsden and Rebecca Christie at Bloomberg News report that
three European government officials said Germany, the Netherlands
and Finland want to speed up European Union plans to force losses
on senior bondholders of failing banks.

According to Bloomberg, the officials said that the three AAA
rated euro-area states last week called for regulators across the
EU to gain so-called bail-in powers as soon as 2015, rather than
in 2018 as currently proposed.  The European Central Bank has
warned that 2018 is "far too far away" for the new rules, which
seek to insulate taxpayers and the euro area's firewall fund from
rescue costs, Bloomberg notes.

Accelerating the loss-sharing rules would give the euro zone more
tools to avoid taxpayer rescues like those provided to Greece,
Ireland, Portugal and Spain and sought by Cyprus, Bloomberg
discloses.  It also could ease concerns about financial liability
within the euro zone once the ECB takes over financial
supervision within the 17-nation currency bloc, Bloomberg notes.

Jacob Funk Kirkegaard, a senior fellow at the Peterson Institute
for International Economics in Washington, said the rule changes,
once implemented, will affect the capital available to banks and
make it more expensive for them to issue debt, reducing their
ability to lend, Bloomberg relates.  As a result, non-financial
companies may step up corporate bond issuance as an alternative
to bank loans, Bloomberg notes.

Senior bank bondholders so far have mostly avoided losses, while
European governments and the International Monetary Fund have
committed to EUR486 billion of aid since 2010, Bloomberg states.

Under the EU plans, drawn up by the European Commission,
regulators would be given the power to impose losses on holders
of senior unsecured debt, as well as derivatives counterparties,
once a lender's capital and subordinated debt are wiped out,
Bloomberg says.  Regulators could also force debt to convert into
common shares, so shoring up a struggling bank's equity,
Bloomberg notes.

"The rationale for us to propose 2018 for the bail-in clause was
to give time to the markets to anticipate the new regime,"
Bloomberg quotes Stefaan De Rynck, a spokesman for EU Financial
Services Commissioner Michel Barnier, as saying.  "We are open to
examine the consequences of anticipating the bail-in clause, if
that would be the option that the council would want to choose."

Once the new rules take effect, national authorities would be
expected to exhaust bail-in options before resorting to public
money to stabilize the bank, Bloomberg states.

According to Bloomberg, one of the officials said that the
nations are seeking a date as soon as 2015 because it would
provide time to adjust to the measures while not putting
individual countries at a competitive disadvantage if they apply
bail-in rules ahead of 2018.

* Moody's Study Shows High Default, Recovery Rates for Bank Loans
When a project finance bank loan defaults, lenders ultimately
suffer no economic loss almost two thirds of the time, according
to Moody's Investors Service in its second annual project finance
bank loan default and recovery rate study. Overall, the ultimate
recovery rate on the defaulted bank loans averaged 80%, says
Moody's in "Default and Recovery Rates for Project Finance Bank
Loans, 1983-2011."

"Our report shows that project finance is a resilient class of
specialized corporate lending," says Andrew Davidson, a Moody's
Senior Vice President and co-author of the report. "We find that
the ultimate recovery rates are similar to ultimate recovery
rates for senior secured corporate bank loans, despite features
such as high gearing and long tenor that are typically associated
with higher risk loans."

Most project finance borrowers are highly leveraged, thinly
capitalized special purpose vehicles with limited financial
flexibility. But the study's results suggest that project finance
structural features which clearly delineate and allocate risk and
control cash flows are proving effective at limiting defaults and
keeping losses at a minimum.

Moody's finds ultimate recovery rates are higher for projects
that default later in the life of the loan. Losses on projects
that default in their construction phase are higher than those
that default in their operational phase, says Moody's.

Specifically, ultimate recovery rates are 80.3% on defaults as
defined by Basel II and 78.6% on defaults as defined by Moody's.
Ultimate recovery rates for construction phase defaults, however,
average 65.1% (Basel II) and 63.7% (Moody's), somewhat lower than
ultimate recovery rates for operations phase defaults which
average 83.2% (Basel II) and 81.9% (Moody's).

The marginal default rate -- the likelihood that a loan
performing at the start of a specific year will default in that
year -- also declines as the loan matures.

"Initially the marginal default rates are consistent with
marginal default rates exhibited by high speculative-grade
corporate issuers, but they trend towards marginal default rates
consistent with Single A category ratings by year 10 from
financial close," says Kevin Kelhoffer, a Moody's Vice President
and co-author of the report.

The 10-year cumulative default rate for project finance bank
loans is consistent with 10-year cumulative default rates for
corporate issuers of low investment-grade/high speculative-grade
credit quality, says Moody's.

These results are consistent with last year's default and
recovery study. Moody's notes that the set of data in this year's
study is 15% larger than last year's, containing 534 additional
projects and 24 more defaults (as defined by Basel II).

The study reviews data from 4,067 projects, which account for
some 53.6% of all project finance transactions originated
globally during a 28 year period from January 1, 1983 to December
31, 2011. The study is based on an updated and expanded aggregate
data from a consortium of leading sector lenders.


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

                 * * * End of Transmission * * *