TCREUR_Public/130208.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Friday, February 8, 2013, Vol. 14, No. 28

                            Headlines



B E L G I U M

TELENET GROUP: Moody's Reviews 'Ba3' CFR for Possible Downgrade


D E N M A R K

VESTAS WIND: Expects to Face Challenging Market Conditions


F R A N C E

PETROPLUS HOLDING: Administrators Reject Bids for French Refinery


G R E E C E

OMEGA NAVIGATION: Subsidiaries Set for Feb. 22 Auction


I R E L A N D

ANGLO IRISH: Faces Liquidation; ECB Deal Sought on New Plan
ELAN CORP: S&P Affirms 'B+' Corporate Credit Rating
POCKET KINGS: Full Tilt Irish Unit Placed in Liquidation
WEXFORD VIKING: Exits Examinership; 25 Jobs Saved


I T A L Y

BANCA MONTE: Derivative Trade Losses Total EUR730 Million
SEAT PAGINE: Files Application for Debt Restructuring


K A Z A K H S T A N

KAZAKHSTAN ENGINEERING: Moody's Keeps '(P)Ba2' Bond Rating


L U X E M B O U R G

Z BETA: S&P Raises Corporate Credit Rating to 'B'


N E T H E R L A N D S

E-MAC DE 2005-I: Fitch Confirms 'CCC' Rating on Class E Notes
LIBERTY GLOBAL: Moody's Places 'Ba3' CFR on Review for Downgrade
LIBERTY GLOBAL: S&P Puts B+ Corp. Credit Rating on Watch Positive
SNS REAAL: 25 Investors Appeal Expropriation of Securities
VIMPELCOM HOLDINGS: Moody's Rates US$2-Bil. Notes Issue '(P)Ba3'

VIMPELCOM HOLDINGS: S&P Assigns 'BB' Rating to Sr. Unsecured Debt


N O R W A Y

NORTHLAND RESOURCES: S&P Cuts Rating on 2 Bond Tranches to 'CCC'


P O L A N D

CENTRAL EUROPEAN: Appoints Former U.S. Judge J. Farnan to Board


S P A I N

ISOFOTON: Denies Insolvency Rumors; In Talks with Suppliers
SANTANDER CONSUMER: Fitch Affirms 'CC' Rating on Class D Notes
TDA CAM 7: S&P Lowers Rating on Class B Notes to 'CCC'
* SPAIN: Bankruptcy Figures Up Nearly 28% in 2012, INE Says


S W E D E N

NORTHLAND RESOURCES: Moody's Cuts CFR to Caa2; Outlook Negative


U N I T E D   K I N G D O M

2E2: Administrators Fail to Find Buyers; 627 Jobs Affected
808 X-Ray: In Administration, Owes GBP700,000
DAN RUSSELL: Owner Places Two Nightclubs Into Liquidation
CLEAR DEBT: Collection Agency Placed in Liquidation
C.S. WILLIAMS: Subsidiary Goes Into Liquidation

LYNX I: Moody's Rates Planned GBP1.7-Bil. Notes Issue '(P)Ba3'
ORCHID HOTEL: In Administration, Seeks Buyer for Business
RAPID HARDWARE: Recession Forces Firm to Fall Into Administration
RECYCLED POLYMERS: Goes Into Liquidation
ROYAL BANK: Libor Deal Highlights UK Bank Risk, Fitch Says

SEYMOUR PIERCE: In Late-Stage Acquisition Talks with Cantor
VIRGIN MEDIA: Fitch Puts 'BB+' Long-Term IDR on Watch Negative
VIRGIN MEDIA: Moody's Reviews Ba1 CFR for Possible Downgrade
VIRGIN MEDIA: S&P Puts 'BB' Corp. Credit Rating on Watch Negative
VOYAGE BIDCO: Moody's Assigns B2 CFR After Successful Refinancing

VOYAGE HOLDING: Fitch Affirms 'B' Long-Term IDR; Outlook Stable
* UK: HM Revenue & Customs Denies Lack of Funding for Liquidation


X X X X X X X X

* EU Ripe for Project Bond Market, But Progress Slow, Fitch Says
* EU Investor Survey Shows Growing Optimism on Crisis, Fitch Says
* FTI Expands Corporate Finance/Restructuring Advisory Team
* BOOK REVIEW: Corporate Venturing -- Creating New Businesses


                            *********


=============
B E L G I U M
=============


TELENET GROUP: Moody's Reviews 'Ba3' CFR for Possible Downgrade
---------------------------------------------------------------
Moody's Investors Service placed all ratings of Telenet Group
Holding NV ('Telenet'; CFR at Ba3) under review for downgrade
following the announcement that Liberty Global Inc. ('LGI'; CFR
at Ba3) and LGI Merger Subs, certain direct or indirect wholly-
owned subsidiary of LGI, have entered into a merger agreement
with Virgin Media pursuant to which Virgin Media has agreed to be
acquired by LGI and merge into one of the LGI Merger Subs.

LGI expects to partially fund the transaction using US$2.7
billion of its cash (part of which is likely to be up-streamed
from its subsidiaries). We note in this context that LGI has
recently revised the financial policy at Telenet (its 58.4% owned
subsidiary) to allow for increased leverage. Moody's expects to
conclude its review on Telenet's ratings on completion of the
transaction, which could result in a downgrade of ratings by a
notch (CFR to B1).

Ratings Rationale

In January 2013, LGI increased its stake in Telenet from 50.1% to
58.4% following the completion of voluntary and conditional
takeover bid for the outstanding shares of Telenet by LGI. LGI
also announced its intention to align Telenet's leverage policy
with that of LGI such that target leverage at Telenet will be 4.0
to 5.0x net total debt to annualized EBITDA (excluding financial
leases) and LGI may increase the indebtedness of Telenet to a
level greater than this range. This implies Telenet's leverage
could move towards 5.5x Gross Debt/ EBITDA (adjusted by Moody's)
and its credit metrics would therefore not be in line with the
parameters defined for the Ba3 rating.

In Moody's opinion, LGI may elect to make a shareholder
distribution from Telenet in the near term, thereby potentially
increasing Telenet's leverage beyond the parameters defined for
its Ba3 rating. Moody's expects to conclude its review on
Telenet's ratings at the closing of the Virgin Media transaction,
which could result in a downgrade of Telenet's ratings by a
notch.

At the end of December 31, 2012, Telenet had cash and cash
equivalents of EUR906.3 million. Moody's adjusted Gross Debt/
EBITDA ratio for Telenet at the end of 2012 was around 5.0x.

In 2012, Telenet grew its revenues and adjusted EBITDA by 8.2%
and 7.5% respectively, to EUR1.5 billion and EUR778 million. For
2013, the company guided towards revenue and adjusted EBITDA
growth of 10-11% and 7-8% respectively, accrued capex of 21-22%
of revenue and a stable free cash flow generation (before
dividends).

The principal methodology used in this rating was the Global
Cable Television Industry published in July 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.

Headquartered in Mechelen, Belgium, Telenet is the largest
provider of cable services in Belgium. Currently, US-based
Liberty Global Consortium (rated Ba3/Stable) owns approximately
58.4% of Telenet.



=============
D E N M A R K
=============


VESTAS WIND: Expects to Face Challenging Market Conditions
----------------------------------------------------------
Richard Milne at The Financial Times reports that Vestas Wind
Systems A/S warned that this year would be "even more
challenging" than 2012 as the struggling Danish company
downgraded its forecast for deliveries in the next 12 months.

According to the FT, the company said it would ship only 4GW-5GW
this year, down from a previous forecast of about 5GW and a
record in 2012 of 6.1GW, because of weaker order intake.

Vestas has felt the full force of the storm in the wind turbine
market where orders have dried up because of falling government
subsidies worldwide and uncertainty in markets, such as the US,
the FT discloses.  But an ill-timed expansion program and
weakness in offshore turbines -- the main growth area for wind
companies -- has hit the Danish group and its shares have
collapsed by 90%, the FT notes.

Vestas has responded with a deep restructuring program to cut
about a third of jobs and on Wednesday it provided the first
tentative signs that the action was paying off, the FT relates.

As reported by the Troubled Company Reporter-Europe on Dec. 12,
2012, Bloomberg News related that Vestas, which in November
persuaded its lenders to keep credit lines open, has yet to show
it will have enough cash to repay bondholders.  Vestas's banks
agreed in November to continue lending to the company until
January 2015, Bloomberg recounted.  The deal, which was announced
on Nov. 26, was reached after Vestas on July 31 said cost
overruns relating to developing a new turbine made it difficult
to meet financial covenants on the 2016 loans, Bloomberg
disclosed.  The company now needs to repay EUR900 million
(US$1.15 billion) in loans two months before EUR600 million in
bond payments fall due, Bloomberg said.  The total amounted owed
is more than 10 times the free cash flow Vestas can generate
through 2014, according to analyst estimates compiled by
Bloomberg.

Vestas Wind Systems A/S is the world's biggest maker of wind
turbines.  The company is based in Aarhus, Denmark.



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F R A N C E
===========


PETROPLUS HOLDING: Administrators Reject Bids for French Refinery
-----------------------------------------------------------------
Tara Patel at Bloomberg News reports that the administrators of
Petroplus Holding AG's Petit-Couronne oil refinery in Normandy
rejected all five bids for the site and started proceedings to
fire workers before closing the plant for good.

According to Bloomberg, a statement from the administrators and
management of Petit-Couronne said that the bidders failed to
provide proof of their ability to pay for crude, refinery
operations, investment to modernize the site and job security for
workers.

The statement said that the bids were from Terrae International
SA of Switzerland, Murzuk Oil of Libya, Arabiyya Lel Istithmaraat
of Egypt, FJ Energy Group of Cyprus and Damanapol International,
a French company, Bloomberg notes.

The administrators examined the bids on Wednesday to decide
whether any were worthy of transferring to a court in Rouen
that's been charged with deciding the 154,000-barrel-a-day
refinery's future after Zug, Switzerland-based Petroplus filed
for insolvency in January 2012, Bloomberg relates.

Bloomberg notes that on Tuesday, Industry Minister Arnaud
Montebourg said offers from Terrae and Arabiyya Lel Istithmaraat
"appear serious and financed."

"Every name that has manifested an interest has some type of link
to the Middle East, to oil producing countries," Bloomberg quotes
Jean-Louis Schilansky, head of UFIP, as saying at a press
conference.  "I don't know their motivation."

The lobby represents refiners including Total SA and Exxon Mobil
Corp. with plants operating in France that would benefit from
lower domestic capacity, Bloomberg discloses.

"It's a risky business.  Any group that takes over the refinery
has to be sufficiently solid from a financial point of view to
see the plant through bad times," Mr. Schilansky, as cited by
Bloomberg, said.  "It would be catastrophic for an investor to
have to shut the plant back down."

French unions have fought to keep the plant open, Bloomberg
relates.  It employs about 470 workers, Bloomberg says.

                         About Petroplus

Based in Zug, Switzerland, Petroplus Holdings AG is one of
Europe's largest independent oil refiners.

Petroplus was forced to file for insolvency in January 2012 after
struggling for months with weak demand due to the economic
slowdown in Europe and overcapacity amid tighter credit
conditions, high crude prices and competition from Asia and the
Middle East, MarketWatch said in a March 28 report.

According to MarketWatch, Petroplus said in March a local court
granted "ordinary composition proceedings" for a period of six
months. As part of the court process, Petroplus intends to sell
its assets to repay its creditors.

Some of Petroplus' units in countries other than Switzerland have
filed for "different types of proceedings" and are currently
controlled by court-appointed administrators or liquidators,
which started the process to sell assets, including the company's
refineries.



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G R E E C E
===========


OMEGA NAVIGATION: Subsidiaries Set for Feb. 22 Auction
------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Omega Navigation Enterprises Inc. will try once
again to sell three non-bankrupt subsidiaries.

The report recounts that in January, U.S. Bankruptcy Judge Karen
Brown in Houston authorized the shipowner to give ownership of
its eight vessels to secured lenders.  At the same January
hearing, Judge Brown refused to approve a separate settlement
under which the company's owner, George Kassiotis, would have
become the owner of the subsidiaries.

According to the report, Judge Brown approved procedures Feb. 5
for a Feb. 22 auction for the subsidiaries.  Bids are due
initially by Feb. 19.  A hearing to approve the sales is set for
Feb. 25.  Delos Megacore LLC will make the opening bid of
$1.25 million for one of the subsidiaries and may bid for the
others.

The creditors' committee supports the Delos Megacore bid.

Under the approved settlement with the lenders, the secured
creditors waived claims and agreed to pay most professional
expenses and while providing US$500,000 for distribution to
unsecured creditors.

                      About Omega Navigation

Athens, Greece-based Omega Navigation Enterprises Inc. and
affiliates, owner and operator of tankers carrying refined
petroleum products, filed for Chapter 11 protection (Bankr. S.D.
Tex. Lead Case No. 11-35926) on July 8, 2011, in Houston, Texas
in the United States.

Omega is an international provider of marine transportation
services focusing on seaborne transportation of refined petroleum
products.  The Debtors disclosed assets of US$527.6 million and
debt totaling US$359.5 million.  Together, the Debtors wholly own
a fleet of eight high-specification product tankers, with each
vessel owned by a separate debtor entity.

HSH Nordbank AG, as the senior lenders' agent, has first liens on
vessels to secure a US$242.7 million loan.  The lenders include
Bank of Scotland and Dresdner Bank AG.  The ships are encumbered
with US$36.2 million in second mortgages with NIBC Bank NV as
agent.  Before bankruptcy, Omega sued the senior bank lenders in
Greece contending they violated an agreement to grant a three
year extension on a loan that otherwise matured in April 2011.

An affiliate of Omega that manages the vessels didn't file, nor
did affiliates with partial ownership interests in other vessels.

Judge Karen K. Brown presides over the case.  Bracewell &
Giuliani LLP serves as counsel to the Debtors.  Jefferies &
Company, Inc., is the financial advisor and investment banker.

The Official Committee of Unsecured Creditors has tapped Winston
& Strawn as local counsel; Jager Smith as lead counsel; and First
International as financial advisor.



=============
I R E L A N D
=============


ANGLO IRISH: Faces Liquidation; ECB Deal Sought on New Plan
-----------------------------------------------------------
Reuters reports that Ireland's government rushed through
emergency legislation early on Thursday to liquidate the failed
Anglo Irish Bank as it tries to secure a deal with the European
Central Bank to ease the country's debt burden.

Prime Minister Enda Kenny has staked his administration's
reputation on cutting the cost of bailing out Anglo Irish, now
known as Irish Bank Resolution Corp, or IBRC, and the ECB's
governing council in Frankfurt is considering a fresh proposal
after a previous plan was rejected last month, Reuters relates.

Under Dublin's new plan, first reported by Reuters on Wednesday,
IBRC's liquidation was necessary so that the Irish government no
longer had to make EUR3.1 billion of annual payments on the
promissory notes stretching out until 2023.  The next payment was
due next month, Reuters discloses.

The government had originally hoped to unveil the liquidation of
the former Anglo Irish in conjunction with a deal from the ECB,
but the Reuters report meant Dublin had to immediately legislate
for its demise, Reuters notes.

According to Reuters, Finance Minister Michael Noonan told
parliament the government could not deny the report and therefore
risked destabilizing the bank's position.

Anglo Irish and its casino-style lending were at the heart of
Ireland's financial crisis, Reuters says.  The bank's near
collapse in 2008 pressured the government into guaranteeing the
entire financial sector, sucking it into a downward spiral and in
late 2010, a EUR67.5 billion EU-IMF bailout, Reuters recounts.

Three of the bank's former executives, including its former CEO,
will go on trial next year on fraud charges, Reuters discloses.

According to Reuters, a source familiar with the discussions told
Reuters that under Dublin's plan, the EUR28 billion in promissory
notes will be replaced with long-term government bonds, meaning
that Ireland can make more gradual repayments.

Reuters relates that a source familiar with the situation said
Anglo Irish's assets, of between EUR12 billion and EUR14 billion,
will be transferred to the state-run bad bank, the National Asset
Management Agency, or NAMA, which will pay for them by issuing
its own state-backed bonds.

Accountancy firm KPMG was appointed as liquidator, Reuters
discloses.

Reuters notes that familiar with the matter said the IBRC board
were only informed about the liquidation plan on Wednesday, while
remaining staff members were told via e-mail.

IBRC, which was due to be gradually wound down by 2020, employs
about 775 people, Reuters discloses.  Their contracts were
terminated, as is usual in a liquidation, but Noonan said he
expected KPMG would rehire most of them to help wind down the
bank, Reuters notes.

Reuters relates that EU sources familiar with the talks said the
ECB rejected Dublin's preferred solution of rescheduling part of
its bank bailout bill when its board discussed the plan for the
first time last month.

A source told Reuters that if the ECB signs off for the plan,
most of IBRC's balance sheet will pass to Ireland's central bank
when the scandal-hit bank is liquidated.

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


ELAN CORP: S&P Affirms 'B+' Corporate Credit Rating
---------------------------------------------------
Standard & Poor's Ratings Services affirmed its corporate credit
rating on Dublin, Ireland-based Elan Corp. plc at 'B+'.  The
outlook is stable.

At the same time, the issue-level rating on the company's senior
unsecured notes was affirmed at 'BB-' following the termination
of its Tysabri agreement.  The recovery rating on this debt is
'2', indicating S&P's expectation for meaningful (70% to 90%)
recovery in the event of a payment default.

The ratings on Elan Corp. plc continue to reflect its
"vulnerable" business risk profile, still characterized by the
company's sole dependence on multiple sclerosis (MS) treatment
Tysabri.  While Elan had been dependent on revenues from its
collaboration with Biogen Idec, it will now be reliant on a
royalty stream.  Elan's "significant" financial risk profile is
highlighted by S&P's expectation for significant improvement in
its credit measures in the second year of the royalty contract.

In return for giving up its 50% interest in the Tysabri revenue
sharing agreement, Elan will receive about US$3.25 billion in
cash as well as annual royalty payments that are dependent on in-
market revenues for Tysabri.  For the first 12 months, Elan will
collect about 12% of in-market revenues.  Thereafter, it will get
18% of in-market revenues up to US$2 billion and 25% of in-market
revenues that exceed US$2 billion.

"In our base-case scenario, we anticipate Elan's revenues and
EBITDA will decline sharply in fiscal 2013, largely due to the
termination of its Tysabri agreement," said Standard & Poor's
credit analyst John Babcock.

Based on S&P's forecast for more than US$1.9 billion in Tysabri
sales, S&P expects the company to generate revenues of between
US$200 million and US$300 million in fiscal 2013 followed by
about a 75% increase in 2014 as its share of in-market revenues
increase. Thereafter, S&P assumes revenues will grow in the high
single digits.  S&P expects about a 50% decline in EBITDA in
fiscal 2013 to below US$100 million.  S&P anticipates EBITDA will
more than triple in fiscal 2014 and then grow around 10% each
year thereafter.

"Our view of Elan's business risk profile is largely unchanged
from the transaction.  While Biogen Idec will take over Elan's
50% interest in Tysabri and will have complete operational
control over marketing, sales, and distribution, Tysabri will
continue to be Elan's primary source of revenue.  We believe
Biogen Idec will continue to support Tysabri and expect
underlying growth of the drug to be in the high single digits.
While we expect Elan to deploy cash to diversify its business, we
are likely to assess Elan's business risk as vulnerable until the
company has achieved meaningful diversification in earnings
contribution from multiple medications addressing a broader range
of disease states," S&P said.


POCKET KINGS: Full Tilt Irish Unit Placed in Liquidation
--------------------------------------------------------
Barry O'Halloran at The Irish Times reports that the original
Irish arm of Full Tilt Poker, rescued by a rival last year
following a US lawsuit, has been placed in liquidation owing
creditors a reported EUR3 million.

The Irish Times relates that rival PokerStars took over Full
Tilt, whose service hub is in Dublin, last August, following a
court settlement in New York that involved paying about EUR600
million to the poker site's former players and a complete split
from its previous owners.

Declan McDonald -- declan.mcdonald@ie.pwc.com -- of accountancy
firm PricewaterhouseCoopers has been appointed liquidator to
Pocket Kings Ltd, one of the Irish-based subsidiaries that
provided services to the original Full Tilt operation, whose main
customer base was in the US, according to The Irish Times.

The company owes about EUR3 million to creditors, mainly trade
and suppliers, and is liable for some inter-group debts, the
report discloses.


WEXFORD VIKING: Exits Examinership; 25 Jobs Saved
-------------------------------------------------
The Journal.ie reports that Wexford Viking Glass Ltd. has exited
examinership.

Having presented a survival plan to the High Court last year, the
scheme of arrangement which had been put in place was on Thursday
accepted by Mr. Justice McGovern, allowing the company to exit
examinership as a going concern and in the process save 25 jobs,
the Journal.ie relates.

Wexford entered examinership last October, the Journal.ie
recounts.

Wexford Viking Glass Ltd., which has been operating for 75 years,
is a manufacturer and supplier of energy efficient double-glazed
units.



=========
I T A L Y
=========


BANCA MONTE: Derivative Trade Losses Total EUR730 Million
---------------------------------------------------------
Silvia Aloisi and Stefano Bernabei at Reuters report that
Banca Monte dei Paschi di Siena said on Wednesday losses linked
to three problematic derivative trades totaled EUR730 million
(US$988.3 million) as it sought to draw a line under a scandal
over risky financial transactions.

After a six-hour board meeting, the bank said in a statement that
the losses, stemming from trades made between 2006-09, would
weigh on its net assets in 2012 and were calculated before any
possible fiscal effect, Reuters relates.

The impact on the 2012 results has not yet been determined and
would depend on the accounting criteria used, including a
possible restatement of previous financial results, Reuters
discloses.

Monte dei Paschi, the world's oldest bank, has been at the center
of a financial and political storm since last month when it said
it uncovered serious problems stemming from a series of complex
derivatives and structured finance deals, Reuters notes.

According to Reuters, Wednesday's announcement, which broadly
confirmed a preliminary estimate of the losses made by the bank
last month, followed media reports that the cost to Monte Paschi
from the trades could reach as high as EUR900 million.

The statement said the review of the bank's financial portfolio
was now concluded, Reuters relates.

The three derivative transactions are the "Nota Italia" trade
with J.P. Morgan in 2006, the 2008 "Santorini" trade with
Deutsche Bank, and the 2009 "Alexandria" trade with Nomura,
Reuters discloses.

The bank said the impact on net assets of the Alexandria trade
would be EUR273.5 million; that of Santorini EUR305.2 million;
and that of Nota Italia EUR151.7 million, Reuters relates.  It
said there had been accounting mistakes in the past for all those
three trades, Reuters notes.

According to Reuters, other trades were also examined, including
a deal known as Patagonia, but they did not have a negative
impact for the bank.

The loss from the trades under review will likely increase the
overall 2012 losses for the Tuscan lender, which had already
posted a net loss of EUR1.66 billion in the first nine months,
Reuters discloses.

Sources close to the matter have told Reuters that Monte Paschi,
which last month secured final approval on a EUR3.9-billion state
loan, has been negotiating with Deutsche Bank and Nomura to
restructure or close the deals.

Reuters notes that one source said the negotiations with Deutsche
Bank were going well while those with Nomura were dragging

In November, Monte dei Paschi increased its request for state aid
by EUR500 million, citing a possible hit from unspecified
structured transactions, Reuters recounts.

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


SEAT PAGINE: Files Application for Debt Restructuring
-----------------------------------------------------
Danilo Masoni at Reuters reports that Seat Pagine Gialle said on
Wednesday the company has filed a request in court to be admitted
to a procedure aimed at seeking a debt restructuring deal with
its creditors.

"The first step to stabilize the company financially over the
long term and guarantee it can continue to operate has been
made," Reuters quotes Seat Pagine as saying in a statement.

According to Reuters, the application for the so-called
"concordato preventivo" -- a process similar to Chapter 11
proceedings in the United States -- was made with a court in
Turin, where Seat is based since its foundation in 1925.

The court can give the company either 60 or 120 days to draw up
the plan, with a further extension of up to 60 days, Reuters
discloses.  There will be no payments to creditors during this
period, Reuters notes.

Reuters relates that Seat Pagine said on Tuesday it would ask
creditors for a debt restructuring after conceding that its
interest burden and the deepening recession have made its targets
to 2015 unachievable.

                         About SEAT Pagine

SEAT Pagine Gialle SpA (PG IM) -- http://www.seat.it/-- 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.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on
February 4, 2013, Standard & Poor's Ratings Services said that it
lowered to 'SD' (selective default) from 'CC' its long-term
corporate credit rating on Italy-based classified directories
publisher SEAT PagineGialle SpA (SEAT).

At the same time, S&P lowered to 'D' (default) from 'CC' its
issue rating on SEAT's EUR750 million senior secured notes and
EUR65 million new senior secured notes, both due in 2017.  The
recovery ratings on these instruments remain unchanged at '3',
indicating S&P's expectation of meaningful (50%-70%) recovery.

In addition, S&P affirmed its 'CC' issue rating on SEAT's
EUR686 million new senior secured facilities (including a new
EUR90 million revolving credit facility).  The recovery rating on
the senior secured facilities remains unchanged at '3',
indicating S&P's expectation of meaningful (50%-70%) recovery in
the case of a default.

The downgrade follows SEAT's nonpayment of the EUR42.3 million of
interest on its 2017 senior secured bonds.  The payment was due
on Jan. 31, 2013.

As reported by the Troubled Company Reporter-Europe on
February 1, 2013, Moody's Investors Service downgraded Seat
Pagine Gialle SpA's CFR to Caa3 from Caa1, and PDR to Caa3-PD
from Caa1-PD.  Concurrently, Moody's has downgraded SEAT's EUR750
million senior secured bonds due 2017 ("the Senior Secured
Bonds") and EUR65 million senior secured stub bonds due 2017
("the Senior Secured Stub Bonds") to Caa3 from Caa1.  All ratings
are placed under review for further downgrade.

The rating action follows the company's announcement that it has
suspended payment of the interest coupon for EUR42.2 million on
the Senior Secured Bonds due on January 31, 2013.  The Board of
Directors has launched an assessment of the ongoing validity of
the assumptions underlying the recent debt restructuring
completed on September 6, 2012.  The conclusion of this
assessment will help management to determine whether the
company's current capital structure is sustainable in the medium
term.



===================
K A Z A K H S T A N
===================


KAZAKHSTAN ENGINEERING: Moody's Keeps '(P)Ba2' Bond Rating
----------------------------------------------------------
Moody's Investors Service reports that the provisional (P)Ba2
rating assigned to JSC NC Kazakhstan Engineering's (Ba2 stable)
KZT15 billion (US$100 million) domestic bond issue, which was
partially placed in December 2012, remains unchanged.

The rating agency intends to assign a definitive bond rating by
the end of first quarter 2013 when it expects that Kazakhstan
Engineering will finalize the bond placement and refinance most
of the debt which currently ranks senior to the unsecured bond in
its debt capital structure.

On October 22, 2012, Moody's assigned a (P)Ba2 rating to the
proposed KZT15 billion three-year domestic bond to be issued by
Kazakhstan Engineering. Since then, Kazakhstan Engineering has
placed a part of the bond issue amounting to KZT4.5 billion, and
used the proceeds to refinance part of debt which was more senior
to the bond. The group still has a substantial share of debt
ranked senior to the unsecured bond. Such debt includes financial
lease obligations and secured bank debt located at the level of
operating companies, as opposed to the holding company level at
which the bond is issued.

The provisional bond rating remains equivalent to Kazakhstan
Engineering's Ba2 corporate family rating (CFR), which reflects
Moody's expectation of the unsubordinated nature of the bond
following full placement. Moody's expects that Kazakhstan
Engineering will complete refinancing most of its senior debt
after the bond is placed in full in the first quarter of 2013,
and will raise any new debt on an unsecured basis and at the
holding company level going forward.

Moody's notes that the definitive bond rating once the bond is
fully placed might be one notch lower than the CFR should the
company fail to decrease the share of debt ranked senior to the
bond to the level the rating agency anticipates.

JSC NC Kazakhstan Engineering is a state-controlled holding
company consolidating defense, machinery and engineering
enterprises in Kazakhstan. The group executes around 75% of state
defense orders and produces around 10% of machinery products in
Kazakhstan. The group is 100% owned by the Kazakhstan National
Welfare Fund Samruk-Kazyna and managed by the Kazakhstan Ministry
of Defence. In 2011, Kazakhstan Engineering generated revenue of
US$229 million.



===================
L U X E M B O U R G
===================


Z BETA: S&P Raises Corporate Credit Rating to 'B'
-------------------------------------------------
Standard & Poor's Ratings Services said it raised its long-term
corporate credit rating on Luxembourg-incorporated Z Beta Sarl
(Zobele), the parent of Italian company Zobele Holding S.p.A., a
global producer of air care and insecticide devices, to 'B' from
'B-'.  The outlook is positive.

At the same time, S&P removed the rating from CreditWatch with
positive implications, where it placed it on Jan. 21, 2013.

The issue rating on Zobele Holding S.p.A.'s EUR180 million senior
secured bond due 2018 remains at 'B', and is now in line with the
corporate credit rating on Zobele.  The recovery rating on this
bond is unchanged at '4', reflecting S&P's expectation of average
(30-50%) recovery in the event of payment default.

The upgrade from 'B-' to 'B' and the resolution of the Credit
Watch reflect the improvement of Zobele's financial metrics and
liquidity profile following its successful issue of a
EUR180 million bond due 2018 whose proceeds have been used to
repay all outstanding bank debt.  Zobele also took on a
EUR30 million revolving credit facility (RCF), which is currently
fully undrawn, and converted its full shareholder loan into
equity.  None of the debt instruments carry maintenance
covenants.

S&P believes bullet maturities and lack of maintenance covenants
have pushed the group's liquidity into "adequate" territory.

S&P also calculates that Standard & Poor's' adjusted debt to
EBITDA has declined to around 5x after the transaction, from more
than 7x, including payment-in-kind shareholder loan, before it.

Moreover, S&P continues to view Zobele's business risk profile as
"weak," reflecting its fairly small scale of operations and
bargaining power with its customers, mostly large household and
personal care companies.  In S&P's opinion, Zobele is highly
reliant on its top four customers--including Henkel AG & Co.
KGaA, Procter & Gamble Co., and Reckitt Benckiser Group PLC--that
represent nearly 80% of its sales.  However, this is tempered by
S&P's view of Zobele's solid position in the growing niche market
of air care and insecticide devices, its track record of
innovation, and its long-standing relationship with the large
household and personal care players.

S&P's base-case scenario over the next two years includes the
following assumptions:

   -- Mid-single-digit organic growth in revenues.  This reflects
      S&P's opinion that Zobele will continue to grow its
      operations with its existing customer base, which S&P
      expects to increase by 2%-4%.

   -- The growth forecast also reflects S&P's opinion that Zobele
      should be able to win new contracts as the trend toward
      outsourcing and cost reduction continues for household and
      personal care players like Reckitt Benckiser and Procter &
      Gamble.

   -- Limited improvement in profitability.  This reflects S&P's
      expectation of higher sales and therefore improved
      operating leverage, and an increasing contribution from the
      higher-margin insecticide business as Zobele develops this
      activity in emerging markets.  But S&P thinks the company's
      negative country mix might offset some of these
      improvements--large household and personal care players
      tend to have weaker profitability in emerging markets than
      in mature markets, which S&P believes may ultimately harm
      Zobele's margins.

   -- Capital expenditure (capex) of about EUR15 million, in line
      with previous years.

   -- No dividend payment.

   -- Limited merger and acquisition activity.

The positive outlook reflects S&P's view that it might raise the
rating to 'B+' if Zobele maintained an adjusted debt leverage of
below 5x.  S&P believes this could occur if sales grew at least
by mid-single digits while adjusted EBITDA margins improved by at
least 50 basis points from the 13% S&P anticipates for 2012.

S&P could revise the outlook to stable if Zobele's operating
performance slowed down significantly or deteriorated.  This
could occur if the group's expansion into emerging markets was
slower than S&P currently anticipates.  It could also result from
large consumer goods companies' margins being impaired, for
example if commodity prices increased significantly in 2013,
which would then have a negative impact on Zobele's future sales
and/or margins.



=====================
N E T H E R L A N D S
=====================


E-MAC DE 2005-I: Fitch Confirms 'CCC' Rating on Class E Notes
-------------------------------------------------------------
Fitch Ratings has confirmed E-MAC DE 2005-I B.V.'s ratings.

The confirmation comes ahead of the put option date in February
2013. The transaction's noteholders hold put options, which if
exercised would potentially lead to redemption of the notes.
According to the transaction documentation, if noteholders
exercised their put options, the mortgage payment transactions
provider (CMIS Investments B.V.) would be expected to provide an
advance which would be used to redeem the respective notes. Fitch
understands that CMIS Investments will not be providing the
necessary funds to the issuer.

On the first put date (May 2012) no advance was provided and as
consequence no bonds were redeemed. No advance has been provided
on any subsequent put option dates. On the first put date, the
extension margins were fixed and the part of the margin exceeding
the original margin of the notes rank subordinate to the reserve
fund in the interest priority of payments. These extension
margins will remain unchanged for any of the following put option
dates and Fitch's ratings do not address neither timely nor
ultimately payments of the part of the margins exceeding the
original margins of the notes. Failure to pay such margins does
not constitute an event of default.

No funds will be provided on the upcoming put option date. In
addition, Fitch also understands that the issuer has not engaged
any third party that would be willing to purchase the mortgage
portfolio. As a result, none of the notes will be redeemed on the
upcoming put date and the transaction will continue to operate as
before, with the addition of the extension margins.

Fitch conducted a full performance review in January 2013 and
affirmed the notes' ratings based on the performance to date (see
'Fitch affirms E-MAC DE Series', dated January 24, 2013 at
www.fitchratings.com).

The rating actions are:

  Class A (ISIN XS0221900243): confirmed at 'AAsf'; Stable
  Outlook

  Class B (ISIN XS0221901050): confirmed at 'Asf'; Stable Outlook

  Class C (ISIN XS0221902538): confirmed at 'BBB-sf'; Stable
  Outlook

  Class D (ISIN XS0221903429): confirmed at 'B+sf'; Stable
  Outlook

  Class E (ISIN XS0221904237): confirmed at 'CCCsf'; Recovery
  Estimate (RE) of 100%


LIBERTY GLOBAL: Moody's Places 'Ba3' CFR on Review for Downgrade
----------------------------------------------------------------
Moody's has placed all ratings of Liberty Global, Inc., UPC
Holding BV and Unitymedia-KBW GmbH following the announcement
that Liberty Global Inc. ('LGI'; CFR at Ba3) and LGI Merger Subs,
certain direct or indirect wholly-owned subsidiary of LGI, have
entered into a merger agreement with Virgin Media pursuant to
which Virgin Media has agreed to be acquired by LGI and merge
into one of the LGI Merger Subs.

Pursuant to the merger agreement, at the effective time of the
merger, each share of Virgin Media's common stock issued and
outstanding immediately prior to the effective time will be
converted into the right to receive (i) 0.258 Series A shares of
the ultimate parent company of the merged businesses, (ii) 0.193
Series C shares of the parent and (iii) US$17.50 in cash.

LGI expects to partially fund the transaction using US$2.7
billion of its cash (part of which is likely to be up-streamed
from its various subsidiaries including UPC Holding, and
Unitymedia-KBW).

LGI anticipates that the transaction will both visibly increase
the scale of its revenues and result in modest de-leveraging for
the combined group. Moody's will consider the impact on LGI's
subsidiaries of the potential cash up-streaming to facilitate the
transaction, including their resulting liquidity profiles.

Moody's expects to conclude its review on completion of the
transaction. Moody's currently anticipates that it will confirm
the existing ratings and outlook for LGI, UPC Holding and
Unitymedia-KBW. However, this may change should the currently
outlined parameters of the transaction evolve, including the
details of LGI's funding plans.

Ratings Rationale

LGI's purchase price implies an enterprise value of US$23.3
billion for Virgin Media (excluding transaction costs and other
expenses). This represents a multiple of 8.8x Virgin Media's 2012
OCF (as estimated by LGI).

Although the transaction will help LGI to meaningfully increase
its overall scale and geographical diversification, the
underlying industrial logic to justify LGI paying an effective
premium of 24% (to Virgin Media's closing share price on February
4, 2013) remains somewhat unclear. The UK market is relatively
mature and competitive compared to LGI's recent acquisitions and
interest in higher growth markets in Europe, particularly
Germany. The transaction will lead to relatively modest operating
and capex synergies at Virgin Media, in Moody's opinion. LGI has
estimated synergies of US$180 million per year at Virgin Media
upon full integration.

LGI's leverage was at the high end of the rating category for the
LTM period ending September 30, 2012 at approximately 5.8x ( as
adjusted by Moody's - including the Sumitomo loan which itself
adds approximately 0.25x to leverage). The Virgin Media
acquisition should be modestly de-leveraging for LGI and Moody's
would expect the adjusted leverage of LGI to trend within the
parameters of a Ba3 rating after the closing of the acquisition.

With the acquisition of Virgin Media, LGI has announced its
intention to increase its commitment to share buybacks going
forward with an initial target of approximately US$3.5 billion
over a two-year period. Moody's would expect LGI to maintain its
reported leverage within its stated parameters while
accommodating any share buybacks.

The agency on balance does not expect any change to the CFR of
LGI with the conclusion of the ratings review process. Moody's
expects that it will transfer the CFR currently at LGI to the new
parent company ('Lynx Europe Limited') which will be created
following the completion of the Virgin Media transaction. Virgin
Media shareholders are expected to own approximately 36% of the
pro-forma outstanding shares of the new parent and will have
approximately 26% of the voting rights.

At the end of September 30, 2012, LGI had cash and cash
equivalents of US$2.1 billion at LGI and its non-operating
subsidiaries, US$1 billion at its 58.4% owned subsidiary, Telenet
and the remaining US$167 million at its other subsidiaries.

LGI could also draw upon the RCFs at UPC Holding and Unitymedia-
KBW for funding the Virgin Media transaction. At the end of
September 30, 2012, UPC Holding had EUR71 million in cash and
EUR468 million available under its revolving credit facility
(RCF) while Unitymedia-KBW had EUR20 million in cash and EUR418
million unused under the RCF. Moody's will assess the impact on
the liquidity of Unitymedia-KBW and UPC Holding following the
level of RCF draw-downs that LGI conducts. Moody's currently
expects that the leverage of UM and UPC should remain within the
parameters for a B1 and Ba3 CFR respectively.

The principal methodology used in this rating was the Global
Cable Television Industry published in July 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.

LGI (which wholly owns UPC Holding and Unitymedia-KBW) is an
international communications provider of video, broadband,
internet and telephony services, with consolidated broadband
communications and/or direct-to-home satellite ('DTH') operations
in 13 countries; primary operations are located across Europe and
Chile. For the fiscal year ended December 31, 2012, LGI generated
US$10.3 billion in revenues and US$4.9 billion in reported
operating cash flow.


LIBERTY GLOBAL: S&P Puts B+ Corp. Credit Rating on Watch Positive
-----------------------------------------------------------------
Standard & Poor's Ratings Services said it placed its 'B+' long-
term corporate credit rating on international cable TV and
broadband services provider Liberty Global Inc. (LGI) and all
ratings on its indirect subsidiaries, Liberty Global Europe Inc.,
UnitedGlobalCom Inc., UPC Holding B.V. and UPC Broadband Holding
B.V. on CreditWatch with positive implications.

The CreditWatch placement follows LGI's announcement on Feb. 5,
2013, that it has made a US$23 billion cash and share takeover
offer for U.K.-based cable operator Virgin Media Inc. (VMI).  The
acquisition of VMI would further strengthen LGI's superior asset
portfolio diversity and growth prospects compared with peers, in
S&P's view, and could lead S&P to revise its business risk
profile assessment to "strong" from "satisfactory."  At the same
time, S&P estimates that the transaction would not significantly
change LGI's leverage, but could strengthen its consolidated cash
flow generation.

At this point S&P believes the acquisition would not result in
any meaningful leverage increase for LGI, and would still likely
be consistent with S&P's assessment of the group's financial risk
profile as "highly leveraged."  Including VMI, S&P sees LGI
potentially generating over US$1 billion of free operating cash
flow (FOCF) annually, and maintaining adjusted debt to EBITDA in
a 5.0x-5.5x range over 2013-2014.  S&P understands that over 60%
of the purchase of VMI equity will be funded with new LGI shares.
The rest of the funding will come from part of LGI's existing
cash and credit facilities availability and new debt to be raised
at Virgin Media level.  S&P understands that the offer is
conditional on shareholder, regulatory, and other approvals, and
that VMI's board has recommended the offer.

S&P aims to resolve the CreditWatch on LGI on completion of the
transaction, which S&P expects to occur before the end of the
first half of 2013.

As part of S&P's review, it will assess the effect of the
proposed transaction on LGI's operating, strategic, and financial
plans.

S&P sees a one-notch upgrade as possible, as S&P expects the
integration of VMI's large and highly cash-generative operations
to further support LGI's business risk profile--in particular
asset diversification--potentially lifting it to "strong," in
spite of possible near-term execution risks related to the
acquisition.  At this point S&P thinks the transaction will be
neutral at worst for LGI's highly leveraged financial risk
profile, which largely reflects the company's aggressive
acquisition and shareholder return policies, although S&P
thinks LGI may benefit from better cash generation potential
following the VMI acquisition.

Nevertheless, the VMI acquisition would further increase the
financial complexity of the LGI group, in S&P's view, including
several credit pools--part of which are only partly-owned
operations.  However, LGI has a solid track record of managing
financial complexity, including proactive liquidity management
across the various pools, and liquidity support from the parent
to
less liquid subsidiaries where necessary.  S&P will assess
whether it expects these mitigating factors to remain in place
following the VMI transaction.

Finally, as part of S&P's resolution it will review the link
between the rating on LGI and those on UPC Holding B.V. and UPC
Broadband Holding B.V., as these subsidiaries would represent a
significantly smaller proportion of LGI's earnings than in the
past after VMI was acquired.  As a result, the ratings on these
subsidiaries may become delinked from that on LGI in the future.


SNS REAAL: 25 Investors Appeal Expropriation of Securities
----------------------------------------------------------
Maud van Gaal at Bloomberg News reports that the Netherlands' top
administrative court said at least 25 SNS Reaal NV investors
appealed the government's decision to take control of the
nation's fourth-largest bank and expropriate the securities they
owned.

According to Bloomberg, Wendy van der Sluijs, a spokeswoman for
the court in The Hague, said that as of Tuesday, 25 investors,
mostly not institutions, had filed an appeal to the Council of
State.  The deadline for appeals is Feb. 11, 10 days after the
SNS nationalization decree, Bloomberg discloses.  Ms. Van der
Sluijs said that the court will subsequently organize a hearing
and present its ruling before the end of the month, Bloomberg
notes.

"I expect many legal actions to come against the Dutch
government, although the actions themselves are irreversible
under the law," Bloomberg quotes Sweder van Wijnbergen, a
professor of economics at the University of Amsterdam, as saying.

Bloomberg relates that Ms. Van der Sluijs said the appeals so far
came from investors in countries including the Italy, Germany,
Belgium, Andorra and Indonesia, as well as the Netherlands.

Finance Minister Jeroen Dijsselbloem took control of SNS Reaal on
Feb. 1 after real-estate losses brought the bank to the brink of
collapse, Bloomberg recounts.  The nationalization included
issued shares and subordinated bonds, Bloomberg states.  It's the
first time European authorities have immediately wiped out
holders of subordinated debt of a bailed-out bank, according to
data compiled by Bloomberg.

The Dutch state says the bailout of SNS Reaal will cost taxpayers
EUR3.7 billion (US$5 billion) in write-offs and capital
injections, and the government is also providing EUR6.1 billion
in loans and guarantees, Bloomberg notes.

Several other court procedures may follow, Bloomberg says.
According to Bloomberg, Mr. Dijsselbloem said that the Enterprise
Chamber of the Amsterdam Court of Appeal will set the
compensation the Dutch state must pay to expropriated investors.
Such compensation should be zero for shares and loans, according
to Bloomberg.  Investors who object to the compensation offer can
appeal to the Enterprise Chamber, Bloomberg states.

Bloomberg relates that Chairman Jan Maarten Slagter said in an
interview VEB, a Dutch investor group, will be considering all
legal options.  Besides an appeal, VEB said in a statement on the
its Web site that it has asked Mr. Dijsselbloem to enable the
Enterprise Court to order a probe into SNS Reaal's management
since its 2006 stock-market listing, Bloomberg relates.

SNS REAAL NV -- http://www.snsreaal.nl-- is a Netherlands-based
financial services provider engaged in banking and insurance.
The Company's activities are divided into five segments: SNS
Bank, providing banking services both for the retail and small
and medium enterprises, such as mortgages, asset growth and asset
protection, insurance, payments, savings and financing; Property
Finance; Zwitserleven, providing pension insurance services,
mortgages and investment products; REAAL providing life and non-
life insurances; and Group activities.  As of December 31, 2011,
the Company operated through 16 wholly owned subsidiaries, such
as SNS Bank NV, REAAL NV, SNS REAAL Invest NV and SNS Asset
Management NV, among others.


VIMPELCOM HOLDINGS: Moody's Rates US$2-Bil. Notes Issue '(P)Ba3'
----------------------------------------------------------------
Moody's Investors Service assigned a provisional rating of
(P)Ba3, with a loss given default (LGD) assessment of LGD4/50%,
to the proposed issuance of up to US$2 billion worth of notes by
VimpelCom Holdings B.V., a Dutch wholly owned subsidiary of
VimpelCom Ltd (VimpelCom; Ba3 stable). The outlook assigned to
the rating is stable.

VimpelCom OJSC, a wholly owned subsidiary of VimpelCom Holdings
B.V. operating in Russia, will guarantee the notes, subject to
further conditions of the issuance. VimpelCom Holdings B.V., a
holding company consolidating operating subsidiaries of VimpelCom
group operating in Russia, Ukraine and the Commonwealth of
Independent states (CIS), will use the proceeds from the notes
placement to refinance part of its subsidiaries' debt maturing in
2013.

Ratings Rationale

"The (P)Ba3 rating assigned to the proposed notes is equivalent
to VimpelCom's corporate family rating, reflecting our assumption
that the notes will rank pari passu with the other unsecured and
unsubordinated financial debt of VimpelCom group, guaranteed by
VimpelCom OJSC," says Artem Frolov, a Moody's Assistant Vice
President - Analyst and lead analyst for VimpelCom.

The notes' documentation contains VimpelCom Holdings B.V.'s
option to terminate the guarantee under certain circumstances, in
particular, if the notes' rating is upgraded to investment grade
by any of the defined rating agencies, or debt at the level of
VimpelCom Holdings B.V.'s subsidiaries is reduced below 25% of
its consolidated total assets. In the latter case, if the notes'
rating is downgraded within 60 days as a result of the guarantee
termination, a put option, guaranteed by VimpelCom OJSC, may be
exercised by noteholders (subject to terms and conditions of the
notes). Given that the potential termination of the guarantee
could affect the relative ranking of the notes compared with
other debt instruments in the issuer's consolidated debt
portfolio, the notes' rating positioning relative to VimpelCom's
corporate family rating (CFR) may change over time, if the CFR
approaches an investment-grade level, or if the guarantee is
terminated under other circumstances.

The Ba3 CFR continues to reflect Moody's view that,
notwithstanding geographic diversification and its significantly
larger scale following the acquisition of Wind Telecom S.p.A. in
April 2011, VimpelCom remains reliant upon its Russian and
Ukrainian subsidiaries consolidated under VimpelCom Holdings B.V.
(VimpelCom OJSC and Kyivstar, respectively), which continue to
determine its financial flexibility. Therefore, Moody's primarily
bases its assessment of VimpelCom's business and financial
profile on its Russian and Ukrainian operations.

Moody's does not consider that the highly leveraged nature of
Wind Telecom's business in Italy (Wind) directly affects
VimpelCom's ability to service its debt obligations at this time,
as Wind Italy is fully ring-fenced from VimpelCom, to which
Wind's creditors have no recourse. At the same time, VimpelCom
does not receive any cash distributions from Wind.

Moody's assumes that VimpelCom does not intend to provide
financial assistance to Wind at least until July 2013, when the
voluntary prepayment of part of Wind's expensive debt becomes
possible.

Should VimpelCom decide to provide financial support to Wind,
Moody's would need to reassess to what extent Wind's profile
would then negatively affect that of VimpelCom. On the other
hand, if limitations on cash flow movements within the group
structure were removed, a reassessment of VimpelCom's profile
would be warranted. Specifically, this reassessment would take
into account the consolidated group's improved scale of
operations, geographical and industrial diversification, and the
new mix of mature and emerging market assets in its portfolio.

The stable outlook on the ratings reflects Moody's expectation
that there will be no demands on VimpelCom OJSC's cash flows on
behalf of the larger group beyond the currently envisaged levels,
and that the company will maintain its market position.

What Could Change The Rating Up/Down

Positive pressure would be exerted on VimpelCom's ratings if the
company were to deleverage to below 2.0x debt/EBITDA on a
sustainable basis, while maintaining its competitive position in
the core Russian market.

Any of the following developments could exert downward pressure
on the ratings: (1) large bolt-on debt-financed acquisitions; (2)
aggressive financial policies and an increase in leverage to
above 3.0x debt/EBITDA on a sustained basis; (3) a material
deterioration in VimpelCom's financial, business and liquidity
profile; and (4) unfavorable economic conditions leading to
liquidity concerns.

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

Domiciled in Bermuda, VimpelCom is a holding company for
VimpelCom OJSC, Kyivstar, Wind Telecomunicazioni S.p.A. (B1
negative), and Orascom Telecom Holding S.A.E., with leading or
strong positions in Russia, Ukraine, Kazakhstan, Italy, Algeria,
Pakistan, and operations in countries in the CIS, Africa, South-
East Asia and North America. In the last 12 months to September
30, 2012, VimpelCom generated revenue of US$23.0 billion and
EBITDA of US$9.4 billion (as adjusted by Moody's). VimpelCom
Holdings B.V., which consolidates Russian VimpelCom OJSC and
Ukrainian Kyivstar, the major cash-contributing subsidiaries of
VimpelCom, generated revenue of US$12.2 billion and EBITDA of
US$5.8 billion (as adjusted by Moody's) for the same period.


VIMPELCOM HOLDINGS: S&P Assigns 'BB' Rating to Sr. Unsecured Debt
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned an issue
rating of 'BB' to the proposed new notes to be issued by
VimpelCom Holdings B.V.  The issue rating is in line with the
corporate credit rating on VimpelCom Holdings' parent, global
telecoms operator VimpelCom Ltd.  At the same time, S&P assigned
a recovery rating of '4' to the proposed notes, indicating its
expectation of average (30%-50%) recovery prospects in the event
of a payment default.

The recovery rating of '4' is in line with the recovery rating on
the other rated debt at VimpelCom Holdings, and is supported by
the guarantee that operating subsidiary Vimpel-Communications JSC
provides to noteholders.

However, S&P views elements of the documentation and guarantee
for the proposed noteholders as weaker than those for the
existing noteholders at VimpelCom Holdings.  This is because the
documentation for the proposed notes contains a provision that
allows Vimpel-Communications to remove its guarantee if the
proposed notes are rated investment grade, or if the debt at the
operating subsidiaries (including guaranteed debt) represents
less than 25% of the total group assets at VimpelCom Holdings.

"We believe that if the company were to use the option to remove
the guarantee in the event that the 25% of total assets threshold
is achieved, we would likely lower the issue rating and revise
downward the recovery rating on the proposed notes by up to two
notches relative to the existing rated debt.  This is because the
removal of the guarantee would make the notes structurally
subordinate to debt issued at Vimpel-Communications and
contractually subordinate to the existing notes issued by
VimpelCom Holdings.  We understand that the documentation allows
the proposed noteholders to exercise a put in the event that the
issue rating on the notes is lowered as a direct result of the
withdrawal of the guarantee (this potential obligation of
VimpelCom Holdings is guaranteed by Vimpel-Communications).
However, in the event that the guarantee of the notes is removed,
we would likely not factor the exercise of this put into our
recovery analysis.  In our view, the recovery prospects for the
proposed noteholders would become materially weaker than for the
existing rated debt if the guarantee were removed," S&P said.

                        RECOVERY ANALYSIS

S&P understands that VimpelCom will use the proceeds from the
proposed notes to refinance its debt maturing in 2013, as well as
for general corporate purposes.  In S&P's view, the documentation
for the notes is relatively weak because it only includes a
negative pledge clause.

The documentation for the proposed notes does not have any
limitations that would prevent Vimpel-Communications raising
additional debt if the guarantee is removed.  In S&P's view, this
increases the risk of subordination of the proposed notes in the
event the guarantee is removed.

In order to determine recoveries, S&P simulates a default
scenario.  S&P's scenario assumes that the business will decline
as operating performance weakens due to increased competition, a
deterioration of global economic conditions, and an aggressive
expansion program including acquisitions in new markets.  Under
this hypothetical scenario, S&P believes that VimpelCom's
business model would still be viable after default and that the
group would likely reorganize.  At S&P's hypothetical point of
default in 2016, it estimates EBITDA at default to be US$1.75
billion, with a stressed enterprise value of US$8.7 billion.
After deducting enforcement costs and prior-ranking claims
totaling US$900 million, S&P assumes US$12.7 billion of senior
unsecured debt outstanding at default, leaving sufficient value
for recovery in the 50%-70% range.

S&P assumes in its default scenario that the proposed notes
continue to benefit from the guarantee from Vimpel-Communications
and therefore would rank pari passu with the existing debt at
VimpelCom Holdings and Vimpel-Communications at the point of
default.  S&P do not assume a material change to the capital
structure at its hypothetical point of default.  Although the
recovery prospects on the proposed notes are nominally higher
than 50%, S&P has assigned a recovery rating of '4' to reflect
the additional structural complexities at VimpelCom Holdings.
S&P believes these complexities could lead to lower recoveries
for the proposed notes relative to the debt that Vimpel-
Communications has borrowed directly.

RATINGS LIST

New Rating

VimpelCom Holdings B.V.
Senior Unsecured Debt*                 BB
   Recovery Rating                      4

* Guaranteed by Vimpel-Communications JSC.



===========
N O R W A Y
===========


NORTHLAND RESOURCES: S&P Cuts Rating on 2 Bond Tranches to 'CCC'
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered to 'CCC'
from 'CCC+' its issue rating on the Norwegian kroner (NOK)
460 million and US$270 million tranches of bonds due June 2017
and issued by Sweden-based mining company Northland Resources
A.B. (Northland).  At the same time, S&P placed the issue rating
on CreditWatch with negative implications.  The recovery rating
on the bonds is unchanged at '4', indicating S&P's expectation of
average (30%-50%) recovery in the event of a payment default.

The project has cancelled its proposed debt and equity
fundraising plan.  S&P understands that Northland is now
currently negotiating with a number of potential investors.
These negotiations, if successful, would resolve the company's
outstanding funding requirements.  The downgrade reflects
Northland's significant reliance on credit from its suppliers and
subcontractors in order for it to continue operations while
negotiations are in progress to reach a longer-term funding
solution.

Northland's ability to continue operations is currently reliant
on support from its main suppliers to meet short-term working
capital needs, and on the willingness of its bondholders to
permit additional short-term indebtedness.  In S&P's view, if
suppliers were to withdraw support, then Northland would rapidly
become insolvent.  However, Northland has demonstrated its
ability to produce and ship iron ore to the standards specified
in its offtake agreements.  Therefore, suppliers have a strong
rationale to support the project given that it continues to have
a solid long-term competitive position.

The CreditWatch placement reflects the possibility that S&P could
lower the issue rating if Northland fails to adequately manage
its short-term working capital requirements and resolve its long-
term funding needs.

S&P could lower the rating if the project is unable to raise the
necessary additional financing or if suppliers and subcontractors
cease providing short-term working capital support while
alternative funding negotiations are in progress.

S&P could affirm the rating if Northland is able to secure
sufficient funding to support its short- and medium-term funding
requirements.

S&P aims to review the CreditWatch placement over the next month,
or once Northland has finalized its funding plan.



===========
P O L A N D
===========


CENTRAL EUROPEAN: Appoints Former U.S. Judge J. Farnan to Board
---------------------------------------------------------------
The Board of Directors of Central European Distribution
Corporation has appointed the Honorable Joseph J. Farnan, Jr., as
director of the company effective as of Feb. 4, 2013.  Mr. Farnan
will be named to the Board's Compensation Committee and Audit
Committee.

Mr. Farnan is currently engaged in the private practice of law
with Farnan LLP.  He served as a United States District Judge for
the District of Delaware from 1985 to 2010 and as Chief Judge
from 1997 to 2001.

In connection with his appointment to the Board of Directors,
Mr. Farnan will be eligible to receive equity awards pursuant to
CEDC's 2007 Stock Incentive Plan, including an annual equity
award of US$100,000, and annual fees for service as a director in
the amount of US$75,000 and as a member of the Audit Committee
and Compensation Committee in the amount of US$10,000 for service
on each committee.  CEDC intends to enter into an indemnification
agreement with Mr. Farnan.

On February 4, Robert Koch notified the Board of his resignation
effective immediately.  Mr. Koch served as an independent
director of CEDC since February 2004 and at the time of his
resignation was a member of the Board's Compensation Committee
and Nominating and Corporate Governance Committee.

                            About CEDC

Mt. Laurel, New Jersey-based Central European Distribution
Corporation is one of the world's largest vodka producers and
Central and Eastern Europe's largest integrated spirit beverages
business with its primary operations in Poland, Russia and
Hungary.

Ernst & Young Audit sp. z.o.o., in Warsaw, Poland, expressed
substantial doubt about Central European's ability to continue as
a going concern, following the Company's results for the fiscal
year ended Dec. 31, 2011.  The independent auditors noted that
certain of the Company's credit and factoring facilities were due
in 2012 and needed to be renewed to manage its working capital
needs.

The Company's balance sheet at Sept. 30, 2012, showed
US$1.98 billion in total assets, US$1.73 billion in total
liabilities, US$29.44 million in temporary equity, and US$210.78
million in total stockholders' equity.

                             Liquidity

The Company's Convertible Senior Notes are due on March 15, 2013.
The Company has said its current cash on hand, estimated cash
from operations and available credit facilities will not be
sufficient to make the repayment of principal on the Convertible
Notes and, unless the transaction with Russian Standard
Corporation is completed the Company may default on them.  The
Company's cash flow forecasts include the assumption that certain
credit and factoring facilities coming due in 2012 would be
renewed to manage working capital needs.  Moreover, the Company
had a net loss and significant impairment charges in 2011 and
current liabilities exceed current assets at June 30, 2012.
These conditions, the Company said, raise substantial doubt about
its ability to continue as a going concern.

                           *     *     *

As reported by the TCR on Aug. 10, 2012, Standard & Poor's
Ratings Services kept on CreditWatch with negative implications
its 'CCC+' long-term corporate credit rating on U.S.-based
Central European Distribution Corp. (CEDC), the parent company of
Poland-based vodka manufacturer CEDC International sp. z o.o.

"The CreditWatch status reflects our view that uncertainties
remain related to CEDC's ongoing accounting review and that
CEDC's liquidity could further and substantially weaken if there
was a breach of covenants which could lead to the acceleration of
the payment of the 2016 notes, upon receipt of a written notice
of 25% or more of the noteholders," S&P said.

As reported by the TCR on Jan. 16, 2013, Moody's Investors
Service has downgraded the corporate family rating (CFR) and
probability of default rating (PDR) of Central European
Distribution Corporation (CEDC) to Caa3 from Caa2.

"The downgrade follows CEDC announcement on the 28 of December
that it had agreed with Russian Standard a revised transaction to
repay its $310 million of convertible notes due March 2013 which,
in Moody's view, has increased the risk of potential loss for
existing bondholders", says Paolo Leschiutta, a Moody's Vice
President - Senior Credit Officer and lead analyst for CEDC.



=========
S P A I N
=========


ISOFOTON: Denies Insolvency Rumors; In Talks with Suppliers
-----------------------------------------------------------
PV Magazine reports that Spanish Logistics Group, Lamaignere has
reportedly brought a group of companies together to request the
opening of insolvency proceedings for Isofoton.

Lamaignere CEO, Francisco Herrero Maldonado told Spanish news
agency, Europa Press, that the process has already been handed
over to Spanish law firm Martinez Echevarria, PV Magazine notes.

"We are in contact with other creditors and we want to take this
step to prevent more companies from being affected by Isofoton,"
PV Magazine quotes Mr. Maldonado as saying.

Speaking to PV Magazine, a spokesperson for Isofoton has said
that it has not been notified of this insolvency request.

The spokesperson added that the company is both "viable" and
"solid" and that insolvency is not an option, PV Magazine
relates.

The spokesperson did admit some adjustments had been made with
some of its suppliers, including Lamaignere, and that the company
was currently negotiating with them, PV Magazine discloses.

According to PV Magazine, regarding reports of a strike at
Isofoton's manufacturing facility in Malaga, Spain, the
spokesperson said that 48% of its 700 strong workforce went on
strike last Friday, February 1.  PV Magazine notes that the
action was said to be initiated after a portion of the workforce
did not receive their salary in December, due to the "situation
in the sector".  They stressed, however, that all delayed
payments had now been made, PV magazine relates.

Isofoton is a Spanish photovoltaics company.


SANTANDER CONSUMER: Fitch Affirms 'CC' Rating on Class D Notes
--------------------------------------------------------------
Fitch Ratings has upgraded Santander Consumer Spain Auto 07-1
FTA, Santander Consumer 09-1 FTA and Santander Consumer 10-1
FTA's ratings.

The upgrade of 07-1 and 10-1's class B and C notes reflects both
an improvement in the performance of the underlying pools and an
increase in the available credit support. Fitch believes both
transactions will continue to benefit from deleveraging,
resulting in further increases in available credit enhancement in
future periods.

Arrears have displayed stable trends for both transactions over
the past two years. As of the most recent interest payment date
(IPD), 30 days-past-due delinquencies stood at 8.2% and 2.9% for
07-1 and 10-1 respectively, with delinquencies for 07-1 recording
a 3.2% decline from their peak in June 2009. As a result, excess
spread trends have remained healthy and Fitch expects the reserve
fund to continue to increase for 07-1. The reserve for 10-1 has
remained fully funded since closing.

Santander Consumer Spain 09-1 displayed less positive trends on
the most recent IPD with delinquencies beginning to increase and
the reserve fund being drawn for the first time since closing.
The upgrade of the class B notes reflects the significant
deleveraging which has occurred since closing. However, the
recent reserve fund draw may have an impact on the future
performance of the lower tranches and will need to be monitored.

The ratings of the senior tranches for each deal are capped by a
five-notch uplift from Spain's sovereign rating
('BBB'/Negative/'F2'), despite the positive performance trends of
the underlying pools and the considerable credit enhancement.

The rating actions are:

Santander Consumer Spain Auto 07-1, FTA:
EUR77.1m class A: affirmed at 'AA-sf'; Outlook Negative
EUR78m class B: upgraded to 'Asf' from 'BBB+sf'; Outlook Stable
EUR20m class C: upgraded to 'BBBsf' from 'BBsf'; Outlook Stable
EUR40m class D: affirmed at 'CCsf'; Recovery Estimate revised
  from 50% to 80%.

Santander Consumer Spain 09-1, FTA:
EUR73.6m class A: affirmed at 'AA-sf'; Outlook Negative
EUR99.4m class B : upgraded to 'A+sf' from 'Asf' ; Outlook
  Stable
EUR37.8m class C: affirmed at 'BBBsf'; Outlook Stable
EUR35.7m class D: affirmed at 'CCCsf'; Recovery Estimate 70%.

Santander Consumer Spain 10-1, FTA:
EUR162.6m class A: affirmed at 'AA-sf'; Outlook Negative
EUR57.0m class B : upgraded to 'AA-sf' from 'A+sf'; Outlook
  Negative
EUR49.5m class C: upgraded to 'Asf' from 'BBB+sf'; Outlook
  Stable


TDA CAM 7: S&P Lowers Rating on Class B Notes to 'CCC'
------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'CCC (sf)' from 'B+
(sf)' its credit rating on TDA CAM 7, Fondo de Titulizacion de
Activos' class B notes.  S&P's ratings on the class A2 and A3
notes are unaffected.

The level of cumulative defaults over the original portfolio
balance has increased to 8.04% in November 2012 from 6.15% in
September 2011.  Under the transaction documents, the interest
deferral trigger for the class B notes, which is based on the
level of cumulative defaults over the original balance of the
assets securitized at closing, is 10%.  Given the recent pace of
the increase in cumulative defaults, which is in S&P's view
considerable as the securitized portfolio is highly seasoned and
the transaction closing date was more than six years ago, the
class B interest deferral trigger is in S&P's opinion likely to
be breached within the next year.  S&P has therefore lowered to
'CCC (sf)' from 'B+ (sf)' its rating on TDA CAM 7's class B
notes, in accordance with S&P's 'CCC' rating definition.

TDA CAM 7 closed in October 2006 and securitizes residential
mortgage loans granted to individuals purchase a property. Banco
CAM, which has merged with Banco de Sabadell, is the originator
of the transaction.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

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

            http://standardandpoorsdisclosure-17g7.com


* SPAIN: Bankruptcy Figures Up Nearly 28% in 2012, INE Says
-----------------------------------------------------------
Sinikka Tarvainen at Duetsche Presse Agentur reports that
statistics body INE said Wednesday the number of companies and
people who filed for bankruptcy in crisis-hit Spain increased by
nearly 28% to a total of 8,726 cases in 2012.

According to DPA, nearly 2,600 of the bankruptcies occurred in
the fourth quarter, up 57% from the previous quarter.  The figure
includes 2,349 companies and 235 individuals, DPA discloses.

Nearly 30% of the companies were active in the construction
sector, which contributed about 10% of gross domestic product
prior to the global crisis, DPA says.

About 70% of the companies that went bankrupt in the last quarter
were small or medium-sized, DPA notes.



===========
S W E D E N
===========


NORTHLAND RESOURCES: Moody's Cuts CFR to Caa2; Outlook Negative
---------------------------------------------------------------
Moody's Investors Service downgraded the Corporate Family Rating
(CFR) of Northland Resources AB and the rating of its senior
secured notes to Caa2 from Caa1, due to increased concerns about
the company's worsening liquidity. Concurrently, Moody's has
assigned to Northland a probability of default rating (PDR) of
Caa3-PD, reflecting the heightened probability of default in the
near term given the lack of progress to raise new financial
resources to address the liquidity shortfall for the Kaunisvaara
project's ramp-up, following the recent cancellation of a US$375
million equity and bond fundraising plan announced earlier in
January by Northland. The outlook on all ratings has been changed
to negative.

Ratings Rationale

Northland's downgrades primarily reflect Moody's concerns about
the company's deteriorating liquidity position and currently
limited options for arranging new financing, which Moody's
believes are vital for ensuring the successful ramp-up of the
Kaunisvaara project and the attainment of a profitable operating
model. In particular, Moody's anticipates that the company's
modest cash balance and lack of available financing sources, when
combined with the materially negative free cash flows associated
with the higher-than-expected capital expenditures and commercial
ramp-up phase of the Kaunisvaara project, create high pressure to
meet the company's funding obligations. As a result, Moody's
believes that there is an increased likelihood that Northland
will default, which has prompted the rating agency to assign a
Caa3-PD, one notch below the CFR.

The rating action also reflects the less attractive cash cost
base of the project than originally anticipated, due in part to
higher logistics costs and a stronger Swedish krona. The recent
project review conducted by Northland's management resulted in a
material increase of estimated operating expenses ("opex").
Management has now raised the opex/dmt forecast to US$118/dmt for
2013 and US$83/dmt for 2014, from the much lower levels of US$62
and US$55/dmt for 2013 and 2014, respectively, which were
indicated in the Definitive Feasibility Study of February 2012.
This, on top of the higher debt that may be incurred to finance
the project's capital cost overruns, could considerably weaken
the overall profitability of the project during its ramp-up phase
and beyond.

The one-notch higher CFR compared to the PDR reflects Moody's
expectations on creditors' better-than-average recovery prospects
in the event of a default (an estimate of 60-70%). This viewpoint
reflects the substantial amount of equity already invested in the
project, as well as a comprehensive guarantee and security
package for the notes, which are supported by guarantees from all
material subsidiaries and first ranking security over the shares,
corporate and real estate assets of the group, as well as the
bond escrow account where US$72 million of restricted cash is
still held for debt service obligations under the notes
indenture. The escrow account represents nearly 20% cash
collateral, which supports Moody's view on the noteholders'
recovery prospects in an event of default.

Outlook

The negative outlook on the ratings reflects Moody's view that
considerable challenges lie ahead for Northland as it moves to
arrange new financial resources under difficult conditions.
Furthermore, the outlook reflects the high execution risks of
completing the Kaunisvaara project on time and within the updated
budget.

What Could Chance The Rating Up/Down

Given Northland's near-term liquidity pressures and the negative
outlook on the ratings, Moody's considers that there is currently
limited potential for any upward ratings pressure. However, if a
solution is found to address the near-term liquidity requirements
for the Kaunisvaara project, the outlook could be stabilized,
while further positive pressure might develop over time as the
project gets fully funded, achieves further development
milestones and starts to generate positive free cash flow.

Conversely, negative pressure on the ratings would result from an
inability to secure additional liquidity, further capital cost or
opex increases, project delays, material iron ore price
reductions, or any change in Moody's expectations of creditor
recovery rates.

The principal methodology used in this rating was the Global
Mining Industry published in May 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.

Northland Resources AB, a subsidiary of publicly-listed Northland
Resources SA, is a special purpose vehicle created to manage the
construction and development of the Kaunisvaara iron ore project
in Northern Sweden. The Kaunisvaara project comprises the Tapuli
mine, the nearby Sahavaara mine, a dual-line processing plant and
a fully-integrated logistics solution for the delivery of iron
ore concentrate to the Port of Narvik in Norway. The Tapuli mine
has produced first ore shipments in January 2013, while the
Sahavaara mine is expected to enter production in 2016, subject
to grant of an environmental permit still awaited from the
Swedish authorities. Once fully operational, the whole
Kaunisvaara project is expected to produce 4.4 million dry metric
tons of high grade iron ore concentrate per annum.



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


2E2: Administrators Fail to Find Buyers; 627 Jobs Affected
----------------------------------------------------------
Duncan Robinson at The Financial Times reports that 2e2 has
collapsed after administrators failed to sell the company, with
buyers turned off by persistent concerns about the group's
finances.

Administrators had been optimistic about a sale before the
weekend after the company fell into administration last Monday,
the FT recounts.  However, persistent concerns about 2e2's
finances and a lack of clarity about the group's debtors and
creditors turned potential suitors off a deal, the FT notes.

2e2's lenders forced the heavily indebted IT group into
administration at the end of January, the FT recounts.  2e2 owed
GBP154.4 million to creditors at the end of 2011 -- the latest
accounts available, the FT says.  Interest payments of GBP20.8
million forced the group into a GBP7.3 million pre-tax loss in
that year on revenues of more than GBP400 million, the FT
discloses.

FTI Consulting, acting as administrators, laid off 627 people on
Wednesday via a conference call, the FT relates.  The latest
redundancies mean that almost 1,000 people -- more than two-
thirds of the group's work force -- have been laid off, after
nearly 350 people lost their jobs last week, the FT notes.

"Despite a significant number of initial expressions of interest
in the UK business, we were unable to conclude a transaction
which preserved the business as a going concern," the FT quotes
joint administrator Simon Granger from FTI Consulting as saying.

"Regrettably, this failure to conclude a sale coupled with a
significant future funding requirement has resulted in large
parts of the UK business being closed."

Administrators said discussions to sell the remaining rump of the
business -- mainly data centers and IT service desks -- were
continuing, the FT relates.

2e2's international businesses were not included in the
administration, the FT notes.

2e2 is a Newbury-based IT services group.


808 X-Ray: In Administration, Owes GBP700,000
---------------------------------------------
Ashleigh Wight at Commercial Motor reports that 808 X-Ray
Logistics has gone into administration after it incurred debts of
over GBP700,000.

It appointed joint administrators Daniel and Simon Plant, both of
SFP Group, on January 11 following cash flow difficulties,
according to Commercial Motor.

The report relates that despite having an annual turnover of
GBP1.4 million, administrator Simon Plant said the firm was not
able to avoid going into administration.

The GBP700,000 debt included an undisclosed sum owed to Her
Majesty Revenue and Custom.

"808 X-Ray Logistics has run into cash flow difficulties.
Following discussions with a number of interested parties, we
have achieved a sale of the tangible assets and part of the
business to a third party," the report quoted Simon Plant as
saying.

808 X-Ray Logistics is a Heathrow-based haulier and warehousing
company.


DAN RUSSELL: Owner Places Two Nightclubs Into Liquidation
---------------------------------------------------------
Phil Coleman at News & Star reports that two of Carlisle's best
known nightspots face an uncertain future after debts prompted
their owner to put them both into liquidation.  The amounts owed
by the two clubs -- Club Rock in English Gate Plaza and
Outrageous in English Street -- have not been revealed by their
owner Dan Russell, the report says.

According to News & Star, the Newcastle-based insolvency
practitioner firm Robson Laidler has now written to creditors to
arrange meetings on February 11.

News & Star relates that the letters, sent out to all the
creditors of the two companies which run the clubs, Dan Russell
and Atlas Developments Ltd, and Atlas Developments Leisure Ltd,
said: "In view of the company's financial position, the director
has decided to commence liquidation proceedings."

The problems facing the clubs do not affect his other businesses,
a martial arts school and property rental service, Mr. Russell
told News & Star.

Mr. Russell blamed the financial problems with the latter club on
the level of rent demanded by the building's London-based
landlord, the report adds.


CLEAR DEBT: Collection Agency Placed in Liquidation
---------------------------------------------------
CreditToday reports that debt collection agency Clear Debt
Solutions, who was fined for breaching communications regulations
in 2009, has been placed into liquidation.

Preston-based agency Clear Debt Solutions went into liquidation
on January 14 after a resolution was passed by company members
and creditors, CreditToday relates.

The company bears no relation to debt management firm ClearDebt
Group, which is run by David Mond.

According to the report, the company's collapse comes after one
of the firm's directors was fined more than GBP6,000 by the
Information Commissioner (ICO) in 2009 for breaching privacy and
electronic communications regulations by bombarding individuals
and businesses with unwanted faxes.

Robert Logan was prosecuted after more than 500 complaints from
individuals and businesses flooded into the ICO and the Fax
Preference Service (FPS), CreditToday notes.

Donna Louise Cartmel, a director and insolvency practitioner for
Unique Business Finance, in Bolton, has been appointed to handle
the liquidation of Clear Debt Solutions, the report discloses.


C.S. WILLIAMS: Subsidiary Goes Into Liquidation
-----------------------------------------------
Laura Barton at Somerset County Gazette reports that one arm of
building firm C.S. Williams which has operated in Taunton for
over 60 years is going into liquidation.

Accountancy firm Albert Goodman, which handles debt management,
has been called in to help C.S. Williams (Construction) Ltd enter
voluntary liquidation, the report says.

However, a second arm of the firm, C.S. Williams (Taunton) Ltd,
which is working on projects including the re-development of
Cannington Court, remains solvent and is still trading, the
report notes.

David Mortimer, general manager at C.S. Williams, told the County
Gazette 15 jobs could be at risk after an application to enter
liquidation.

"It was a difficult and sad decision which reflects the state of
the economy and particularly the harsh conditions of the
construction industry," the report quotes Mr. Mortimer as saying.
"It isn't just going on here - it's happening elsewhere as well."

One company which carried out work for C.S. Williams
(Construction) Ltd said it fears it could be left out of pocket
by the collapse of the firm, the County Gazette relays.

The report adds Mr. Mortimer said liquidators were dealing with
any money owed by C.S. Williams (Construction) Ltd and a
creditors' meeting will take place in due course.


LYNX I: Moody's Rates Planned GBP1.7-Bil. Notes Issue '(P)Ba3'
--------------------------------------------------------------
Moody's Investors Service assigned a (P)Ba3 rating to Lynx I
Corp. (Lynx I)'s proposed issuance of GBP1.7 billion equivalent
senior secured notes due 2021, and to the GBP2.7 billion worth of
proposed senior credit facility (excluding a GBP250 million RCF
due 2019 which is currently undrawn) at Virgin Media Investment
Holdings Ltd. (VMIH). The agency has also assigned a (P)B2 rating
to the GBP578 million equivalent senior notes due 2023 to be
issued by Lynx II Corp. (Lynx II) and a (P)Ba3 Corporate Family
Rating to Lynx I (which takes into account the debt being issued
at Lynx II).

The debt rated on a provisional basis will be issued to partly
fund the issuer's acquisition of Virgin Media Inc. ('Virgin
Media'). The ratings are based on the assumption that following
the acquisition, the notes and bank debt would become obligations
of respective legal entities within the Virgin Media group and
will be supported by Virgin Media's assets. The outlook for the
new provisional ratings is stable.

On February 5, 2013, Liberty Global Inc. ('LGI'; CFR at Ba3) and
LGI Merger Subs, certain direct or indirect wholly-owned
subsidiary of LGI, announced that they had entered into a merger
agreement with Virgin Media pursuant to which Virgin Media has
agreed to be acquired by LGI and merge into one of the LGI Merger
Subs.

Pursuant to the merger agreement, each share of Virgin Media's
common stock issued and outstanding will be converted into the
right to receive (i) 0.258 Series A shares of the ultimate parent
company of the merged businesses, (ii) 0.193 Series C shares of
the parent and (iii) US$17.50 in cash. The transaction is
expected to ultimately result in GBP7.2 billion of total debt
within Virgin Media's restricted group (compared to GBP5.8
billion as of September 30, 2012) leading to increased gross
debt/ EBITDA (as adjusted by Moody's) of around 4.5x (pro-forma
for the transaction and expected at the end of 2012) compared to
3.6x (for the LTM ending September 30, 2012).

Ratings Rationale

The (P)Ba3 CFR for Lynx I reflects Moody's expectation that
Virgin Media's post-transaction credit profile will be measurably
weaker than its current one. The increased indebtedness would
reduce the company's financial flexibility and free cash flow
generation ability. It also captures the expected change in
Virgin Media's financial policy under LGI's ownership to permit
an increase in leverage up to 5.0x (gross debt to OCF), in line
with LGI's own financial policy of maintaining gross and net
leverage (total debt and net debt to annualized OCF of the latest
quarter) in the range of 4.0x-5.0x for the group.

Completion of the transaction is subject to regulatory approval,
the affirmative approval of the shareholders of both LGI and
Virgin Media and other customary closing conditions. In order to
finance the acquisition, Virgin Media Investment Holdings Ltd
will raise GBP2.677 billion of senior secured bank facility
(excluding the GBP250 million undrawn RCF), Lynx I will issue
GBP1.7 billion in senior secured notes and Lynx II will issue
GBP578 million in senior notes. Prior to completion, proceeds
from the notes will be held in segregated escrow accounts and
will be secured by a first-priority pledge over the shares of the
notes issuer and a first-priority security interest over the
rights of the notes issuers under the senior secured notes
/senior notes escrow agreement. If the transaction is not
completed and in a number of other defined circumstances, the
issuer is obliged to redeem the bonds (at par) with any shortfall
after return of escrowed monies to be borne by LGI.

Following completion of the transaction the rated notes will be
pushed down to Virgin Media Finance PLC which will assume the
senior notes and to Virgin Media Secured Finance PLC which will
assume the senior secured notes. The proceeds from the notes
together with the funds available under the new senior credit
facility and the bridge facilities will be used to (i) pay a
portion of the cash consideration to be paid to shareholders of
Virgin Media; (ii) finance the senior secured notes/ senior notes
change of control offer; (iii) to prepay all amounts under the
existing credit facilities and (iv) to pay certain fees and
expenses associated with the transaction. For details, refer
press release dated February 6, 2013 at Virgin Media Inc.

The security and guarantees for the notes that will be pushed
down will then be the same as for the existing senior secured/
senior notes within Virgin Media's ring-fenced group. The
provisional ratings for the various debt instruments are based on
Moody's expectation that Virgin Media's ring-fenced group will
include secured debt of around GBP6 billion (84% of total debt --
excluding finance leases and undrawn RCF) and GBP 1 of senior
unsecured debt (16%) after the closing of the transaction.

Moody's expects that Virgin Media will have an adequate liquidity
profile on completion of the transaction. The company is expected
to have cash of US$100 million at transaction closing. In
addition, it will have access to GBP250 million of undrawn
revolving credit facility. The new bank facilities at Virgin
Media will stipulate certain maintenance covenants under which
Moody's would expect the company to maintain adequate headroom at
all times.

The principal methodology used in this rating was the Global
Cable Television Industry published in July 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.

Virgin Media, headquartered in Hook, Hampshire, is the largest
cable operator in the UK. In the fiscal year ending December 31,
2012, the company generated GBP4.1 billion in revenue and GBP1.6
billion in reported OCF (operating income before depreciation,
amortization, goodwill and intangible asset impairments and
restructuring and other charges - as reported by Virgin Media).

LGI is an international communications provider of video,
broadband, internet and telephony services, with consolidated
broadband communications and/or direct-to-home satellite ('DTH')
operations in 13 countries; primary operations are located across
Europe and Chile. For the fiscal year ended December 31, 2012,
LGI generated US$10.3 billion in revenues and US$4.9 billion in
reported operating cash flow.


ORCHID HOTEL: In Administration, Seeks Buyer for Business
---------------------------------------------------------
Caterer and Hotelkeeper News reports that the 34-bedroom Orchid
hotel in Bournemouth has been put on the market after going into
administration.  Previously owned by Rel Hotels, the property is
being marketed by Savills for GBP900,000, according to the
report.

The report relates that management company Legacy Hotels and
Resorts have been appointed by the administrators Grant Thornton
to operate the Asian-inspired hotel as a going concern throughout
the sale process.

"We anticipate a high level of interest in the Orchid hotel, due
to its excellent trading location and stylish modern interior.
The owners' house is an added attraction for an owner/operator
looking to acquire a good trading opportunity on the south
coast," the report quoted Martin Rogers, director at Savills, as
saying.

Located in the East Cliff area of Bournemouth, Orchid hotel
includes a reception room, residents lounge, bar, function room,
and dining room.  It also includes onsite parking and a detached
owners' house.


RAPID HARDWARE: Recession Forces Firm to Fall Into Administration
-----------------------------------------------------------------
Tom Dootson Bay TV Liverpool reports that Rapid Hardware Director
Martin Doherty said that the shop has been forced into
administration.

Rapid Hardware is hoping an investor will come along to rescue
the shop, according to Bay TV Liverpool.

The report relates that the warning signs began in 2011 after
Rapid reported pre-tax losses of GBP2.2 million pounds, another
victim of the recession.  The workers were all gathered together
and told the bad news by their boss, many of them have been
working at the store for a number of years, the report says.

Located at the old John Lewis building on Williamson Square and
Basnett Street, Rapid Hardware is Liverpool's one stop shop for
home and garden.


RECYCLED POLYMERS: Goes Into Liquidation
----------------------------------------
Anthony Clark at Plastics & Rubber Weekly reports that Recycled
Polymers has gone into liquidation leaving GBP715,000 in debt.

The report relates that the directors of the failed plastics
recycling company said a range of issues cause the collapse
including a drop in the price of virgin polymer and equipment
issues.

On Dec. 21, 2012, the company sold its assets to Plasgran in
Wimblington, Cambridgeshire.  Any money raised from the sale will
go to three charge holders including the Royal Bank of Scotland,
the report relates.

Recycled Polymers bought in granulated recycled plastics --
polypropylene, polystyrene and ABS -- which it compounded into
pellets with a range of masterbatches for reuse by injection
moulders.


ROYAL BANK: Libor Deal Highlights UK Bank Risk, Fitch Says
----------------------------------------------------------
The GBP390 million settlement reached by RBS for misconduct
relating to Libor highlights the regulatory and reputation risks
facing global and trading banks, Fitch Ratings says. RBS's
strategy to significantly reduce its markets operations should
reduce these risks in the future, but conduct costs are likely to
remain across the group in the short term.

The potential for lasting damage to individual franchises as a
result of the Libor scandal is unclear. The complexity of trading
operations and products contributes to litigation risk and
multiplies the "unknowns" that can emerge from ongoing regulatory
changes, especially at multiple national levels. But the impact
is likely to be more limited for RBS as it shrinks its markets
business. The restructuring should reduce earnings volatility and
improve the risk profile, and the remaining franchise should not
be significantly eroded.

Furthermore, although the settlement is substantial relative to
the group's underlying operating profits, the costs are largely
offset by recouping around GBP300 million from the bonus pool set
aside primarily from markets operations. Fitch said "We believe
this demonstration of truly variable compensation is positive and
gives management greater financial flexibility."

Costs from conduct risks are likely to remain a persistent
industry feature in 2013, with a number of global banks
continuing to face regulatory investigations, reviews and
litigation. RBS has also taken a cumulative charge of around
GBP1.7bn for payment protection insurance claims over the last
two years and has stated that it will meaningfully increase its
provision for mis-selling interest rate hedging products to
small- and medium-sized companies above the GBP50m it made in
Q212.

Increased scrutiny of banking conduct and standards by
politicians and regulators means that the creation of new high-
risk products ought to be substantially reduced over time.

RBS agreed today to pay penalties of GBP87.5 million, US$325
million and US$150 million to the UK's Financial Services
Authority, the United States Commodity Futures Trading Commission
and the United States Department of Justice to settle
investigations into Libor.


SEYMOUR PIERCE: In Late-Stage Acquisition Talks with Cantor
-----------------------------------------------------------
Vanessa Kortekaas and Kate Burgess at The Financial Times report
that Cantor Fitzgerald is in late-stage talks to buy Seymour
Pierce, in a deal that would secure the future of one of the
City's oldest stockbrokers.

Seymour Pierce has been urgently seeking funding since regulators
blocked an investment from Denis Gorbunenko, a Ukrainian
businessman, the FT discloses.  The lossmaking broker has
approached rivals and outside investors in recent days, but
people close to the discussions said Cantor is poised to buy the
broker, the FT relates.

According to the FT, negotiations between the financial services
firm and Seymour Pierce were continuing late into the night on
Wednesday.

The FT notes that one person close to the talks said: "There was
no certainty" that a deal would be concluded between the two
companies, and that discussions with regulators were continuing.

Brokers N+1 Singer and Panmure Gordon were recently approached
about buying Seymour Pierce, but no deal materialized, the FT
states.

The search for outside investors came after Mr. Gorbunenko's
proposed investment in Seymour Pierce was recently rejected by
the Financial Services Authority -- prompting the broker to seek
funding elsewhere, the FT recounts.

According to the FT, Mr. Gorbunenko had already lent about GBP3
million to Seymour Pierce, before the Financial Services
Authority blocked him from injecting further cash into the
company.

Like many small-cap brokers, Seymour Pierce's profitability has
been hit by a dearth of corporate transactions and subdued
trading activity, the FT discloses.

Seymour Pierce is a London-based investment bank and stockbroker
focused on advising companies and raising finance for them.


VIRGIN MEDIA: Fitch Puts 'BB+' Long-Term IDR on Watch Negative
--------------------------------------------------------------
Fitch Ratings has placed UK cable operator Virgin Media Inc.'s
'BB+' Long-term Issuer Default Rating (IDR) on Rating Watch
Negative (RWN).

The RWN follows the announcement by Liberty Global, Inc. and
Virgin Media that subject to shareholder and regulatory
approvals, LGI will acquire Virgin Media in a stock and cash
merger. As a result of debt from acquisition financing being
pushed down to Virgin Media upon closing of the transaction,
Fitch expects the company's 2012 proforma net debt/EBITDA will
increase to 4.3x from 3.3x.

KEY DRIVERS

- Two to Three Notch Downgrade Expected

Fitch expects to downgrade Virgin Media's Long-term IDR by two to
three notches upon completion of the transaction, due to the
expectation of higher leverage. We would expect Virgin Media's
future financial policies to be similar to that at other LGI
subsidiaries, such as Telenet N.V. ('B+'/Stable), where
shareholder distributions could see leverage rising to 5.0x.

- Good Recovery Prospects

Recovery prospects for Virgin Media bondholders are good, in
Fitch's view, given the solid operational profile of the
business. Based on the proposed transaction structure with around
GBP6.1bn of senior secured debt and finance leases, we would
expect to downgrade the rating of the company's senior secured
bonds to 'BB+' (currently 'BBB-') and the senior unsecured rating
to 'BB-' (currently 'BB+'), if Virgin Media's Long-term IDR was
downgraded by two to three notches. This initial assessment might
change depending on the final mix of secured/unsecured debt in
Virgin Media's capital structure upon deal closing and is
contingent upon receipt of final documents confirming information
already received by Fitch.

- Solid Operational Profile

Virgin Media's 2012 results show that the company's operating and
financial results are in line with Fitch's forecasts. Over the
medium term, we expect Virgin Media to deliver increasing
operating free cash flow, despite slowing customer and revenue
growth. This is underpinned by the company's key strength as a
"second-incumbent" in the UK, with its superior network
infrastructure and strong market share within its geographical
footprint.

WHAT COULD TRIGGER A RATING ACTION?

Negative:

- Two to three notch downgrade on the completion of acquisition
   of Virgin Media by LGI, leading to net debt/EBITDA approaching
   4.5x.

Positive:

- Positive rating action is currently not anticipated.

LIQUIDITY AND DEBT STRUCTURE

Virgin Media ended 2012 with GBP206m in cash. The proposed
transaction is complex and the amount of debt to be repaid and
the final mix of bank, secured and unsecured bond debt is still
unclear.

FULL LIST OF RATING ACTIONS

-Long-term IDR: 'BB+' placed on RWN
-Short-term IDR: affirmed at B
-Virgin Media Investment Holdings senior secured bank facilities
  'BBB-' placed on RWN
-Virgin Media Secured Finance Plc 2018 and 2021 senior secured
  bonds 'BBB-' placed on RWN
-Virgin Media Finance Plc 2016 and 2019 senior notes 'BB+'
  placed on RWN

Fitch may have provided another permissible service to the rated
entity or its related third parties. Details of this service can
be found on Fitch's website in the EU regulatory affairs page.


VIRGIN MEDIA: Moody's Reviews Ba1 CFR for Possible Downgrade
-------------------------------------------------------------
Moody's Investors Service placed all ratings of Virgin Media Inc.
and its rated subsidiaries under review for downgrade following
the announcement that Liberty Global Inc. ('LGI'; CFR at Ba3) and
LGI Merger Subs, certain direct or indirect wholly-owned
subsidiary of LGI, have entered into a merger agreement with
Virgin Media pursuant to which Virgin Media has agreed to be
acquired by LGI and merge into one of the LGI Merger Subs. The
ratings placed under review include:

- Ba1 CFR and Ba1-PD PDR at Virgin Media Inc.

- Baa3 rating on the senior secured bank credit facility (due
   2015) at Virgin Media Investment Holdings Ltd and on the
   senior secured notes (due 2018 and 2021) at Virgin Media
   Secured Finance PLC

- Ba2 rating on the senior notes (due 2019 and 2022) at Virgin
   Media Finance PLC

Pursuant to the merger agreement, each share of Virgin Media's
common stock issued and outstanding will be converted into the
right to receive (i) 0.258 Series A shares of the ultimate parent
company of the merged businesses, (ii) 0.193 Series C shares of
the parent and (iii) USD17.50 in cash. The transaction is
expected to ultimately result in GBP7.2 billion of total debt
within Virgin Media's restricted group (compared to GBP5.8
billion as of September 30, 2012) leading to increased gross
debt/ EBITDA (as adjusted by Moody's) of around 4.5x (pro-forma
for the transaction and expected at the end of 2012) compared to
3.6x (for the LTM ending September 30, 2012).

Moody's expects to conclude its review on completion of the
transaction, which is expected in Q2 2013 following shareholder
and other approvals. Moody's currently anticipates that the
review will result in a downgrade of Virgin Media's Ba1 CFR by
two notches to Ba3, reflecting the increased indebtedness and
weaker credit metrics expected for the company at transaction
closing.

Moody's also anticipates that the rating for Virgin Media's
senior secured debt will be downgraded by up to three notches to
Ba3 (from Baa3) while the rating for the unsecured debt will be
downgraded to B2 (from Ba2). This is based on Moody's expectation
that Virgin Media's final capital structure will include around
GBP6 billion of senior secured debt (excluding capital leases)
and approximately GBP1 billion of senior unsecured debt.

Ratings Rationale

The rating action reflects Moody's expectation that Virgin
Media's post-transaction credit profile will be measurably weaker
than the one that supports the current Ba1 CFR for the company.
The increased indebtedness would reduce Virgin Media's financial
flexibility and free cash flow generation. The review for
possible downgrade will also consider Virgin Media's revised
financial policy under LGI's ownership which could see Virgin
Media increase its reported leverage up to 5.0x (gross debt to
OCF), in line with LGI's own financial policy of maintaining
reported gross and net leverage (total debt and net debt to
annualized OCF of the latest quarter) in the range of 4.0x-5.0x
for the group.

Moody's believes that competition is likely to remain intense for
Virgin Media over the short to medium term. Nevertheless, we
currently expect revenue growth of 3%- 4% for the company's cable
segment in 2013 based on the level of ARPU growth supported by
its pricing strategy as well as the take-up of high-speed
broadband. In the agency's view, Virgin Media could achieve
overall revenue growth of around 5% in 2013, depending on how
well it can grow its revenues from mobile and business segments.
Going forward, we would expect revenue growth to remain moderate.

Moody's currently expects that the existing business strategy of
Virgin Media will remain largely intact with LGI's acquisition.
The agency would expect Virgin Media to continue focusing on
managing 'customer lifetime value' rather than pure 'volume' for
driving future revenue growth in the otherwise relatively mature
and competitive UK broadband and television market. There is
scope for relatively modest operating and capex synergies at
Virgin Media after LGI's ownership, in Moody's opinion. LGI has
estimated synergies of USD 180 million per year at Virgin Media
upon full integration.

Virgin Media Secured Finance PLC and Virgin Media Finance PLC are
seeking consents from holders of 2018, 2019, 2021 Notes to waive
the re-purchase obligation triggered by the change of control
clause in the various indentures. Consent solicitations are also
being sought from the note-holders to effect certain other
proposed amendments incidental to the merger transaction. Virgin
Media Finance PLC will not solicit consents in relation to the
2022 Notes and will be required to make a change of control offer
to repurchase the notes within 30 days of the consummation of the
merger.

If the change of control clause is not waived by certain
bondholders on the 2018, 2019 and 2021 Notes, Virgin Media will
offer to re-purchase those Notes (at 101). The repurchase of the
notes tendered by bondholders in the change of control offer will
be funded through borrowings under bridge facilities and senior
secured bank debt. If the change of control is waived on these
Notes, Moody's would expect (i) the bridge loan facilities to be
cancelled; and (ii) the senior credit facility amount to be
reduced accordingly.

Unsecured debt raised at Lynx II Corp. (one of the special
purpose vehicles created to issue debt for funding the Virgin
Media transaction -- see press release dated 6th February 2013 at
Lynx I and Lynx II) will be used to repurchase the 2022 Notes
(for an aggregate amount of approximately GBP 1.272 billion).

Moody's expects Virgin Media's ring-fenced group to include
secured debt of approximately GBP 6 billion (84% of total debt --
excluding finance leases and undrawn RCF) and GBP 1 billion of
senior unsecured debt (16%) at the closing of the transaction.

Moody's expects that Virgin Media will have an adequate liquidity
profile on completion of the transaction. The company is expected
to have cash of USD100 million at transaction closing. In
addition, it will have access to GBP250 million of undrawn
revolving credit facility. The new bank facilities at Virgin
Media will stipulate certain maintenance covenants under which we
would expect the company to maintain adequate headroom at all
times.

The principal methodology used in this rating was the Global
Cable Television Industry published in July 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.

Virgin Media, headquartered in Hook, Hampshire, is the largest
cable operator in the UK. In the fiscal year ending December 31,
2012, the company generated GBP4.1 billion in revenue and GBP1.6
billion in reported OCF (operating income before depreciation,
amortization, goodwill and intangible asset impairments and
restructuring and other charges - as reported by Virgin Media).


VIRGIN MEDIA: S&P Puts 'BB' Corp. Credit Rating on Watch Negative
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had placed its
'BB' long-term corporate credit rating and all other ratings on
U.K. cable operator Virgin Media Inc. (VMI) on CreditWatch with
negative implications.

In addition, S&P assigned VMI's proposed new senior secured
notes, new senior secured term loans, and revolving credit
facility a 'BB-' issue rating, and the new proposed unsecured
notes a 'B' issue rating.

The CreditWatch placement follows the announcement on Feb. 5,
2013, of U.S.-listed international cable TV and broadband
services provider Liberty Global Inc. (LGI) that it had made a
US$23 billion cash and share takeover offer for VMI.  S&P
understands that more than 60% of the purchase price of VMI's
equity will be funded with new LGI shares.  The rest of the
funding will come from part of LGI's existing cash and credit
facilities availability and new debt to be raised at the VMI
level.

The negative CreditWatch placement reflects S&P's view that the
transaction, and the likely implementation by LGI of a more
aggressive financial policy at VMI, will result in the
maintenance of higher debt leverage, notably with the use of
VMI's healthy cash flow generation for substantial shareholder
returns.  S&P believes it is likely that LGI will bring VMI's
leverage policy closer to that of its group, which targets total
gross debt to EBITDA (excluding finance leases) of 4x-5x.  This
could lead S&P to revise its financial risk profile assessment on
VMI to "aggressive" from "significant".

S&P aims to resolve the CreditWatch on VMI upon completion of the
transaction, which S&P expects to occur before June 30, 2013.

At this point, S&P expects the main rating considerations to be:

   -- The rating on LGI, which S&P could raise to 'BB-' from
      B+/Watch Pos/-- as a result of the acquisition; however, if
      S&P was to keep the rating on LGI at 'B+' after the
      acquisition, a higher rating on VMI would be unlikely, due
      to LGI's expected full ownership of VMI.

   -- S&P's assessment of the likely effect of the proposed
      transaction on VMI's operating and strategic prospects.

   -- VMI's pro forma capital structure and updated financial
      policy.  At this point, S&P thinks it will likely revise
      its assessment of VMI's financial risk profile to
      "aggressive". A revision to a "highly leveraged" financial
      risk profile -- mirroring that of LGI -- seems less likely at
      this point, given S&P's estimates of VMI's leverage after
      the transaction.  S&P is mindful that LGI's full ownership
      of VMI would permit further future releveraging
      transactions at VMI, however.


VOYAGE BIDCO: Moody's Assigns B2 CFR After Successful Refinancing
-----------------------------------------------------------------
Moody's Investors Service assigned a definitive B2 corporate
family rating and B2-PD probability of default rating (PDR) to
Voyage BidCo Ltd following the successful execution of the
group's refinancing and review of the final credit documentation.

Concurrently, Moody's has assigned a definitive B2 rating with a
LGD3 44% to the GBP222 million senior secured notes and a Caa1
rating with a LGD6 91% to the GBP50 million second lien notes
both issued by Voyage Care BondCo PLC. The stable outlook remains
unchanged.

Assignments:

Issuer: Voyage Bidco Limited

Probability of Default Rating, Assigned B2-PD

Corporate Family Rating, Assigned B2

Issuer: Voyage Care BondCo PLC

Senior Subordinated Regular Bond/Debenture Feb 1, 2019, Assigned
Caa1

Senior Secured Regular Bond/Debenture Aug 1, 2018, Assigned B2

Ratings Rationale

Voyage's corporate family rating (CFR) is supported by (i) the
group's position in a niche market as a provider of intensive
care for people with high acuity needs resulting from learning
and/or physical disabilities, (ii) a relatively robust and stable
business model that benefits from long term contracts (68% of
service users stay for more than 5 years) given the non-
discretionary nature of the services provided; (iii) a highly
regulated business environment which creates high barriers to
entry; (iv) Voyage's strong and long lasting relationships with
key customers, e.g. local authorities and NHS; (v) Voyage's
quality leadership with excellent ratings from independent
agencies; as well as (vi) Voyage's solid track record with a 10-
year history of year-on-year revenue and EBITDA growth and
occupancy levels above 90% since 1993. Moreover, the rating takes
into account (vii) Voyage's limited use of operating leases as it
owns the majority of its property which is a distinguishing
factor to some of the group's peers. Therefore, Voyage has a
limited exposure to increasing rent expenses which could burden
the group's profitability.

Voyage's rating is constrained by (i) the relatively small size
of the company that makes it still vulnerable to changes in the
industry, notwithstanding its leading market position in its
niche market; (ii) the currently challenging social care funding
environment leading to pricing pressure; (iii) the high leverage
Moody's anticipates to be approx. 6.1x adjusted Debt/EBITDA as of
FY end March 2013, considering the PEC notes issued by Voyage
Mezzco Ltd outside the restricted group 100% equity; (iv) with
only limited capacity to reduce debt over the coming years due to
limited free cash flow generation anticipated as well as (v) an
adverse mix effect on profitability resulting from the
integration of Solor and a possible shift towards supported
living generating lower profit margins than the registered care
business.

The stable outlook incorporates Moody's expectation that Voyage
will (i) be able to successfully deliver on its business plan and
continuously reduce its high leverage and; (ii) maintain a solid
liquidity profile (after successful refinancing) at all times.
The stable outlook also does not factor in any larger debt-
financed acquisitions, dividends, nor a material increase in
capex beyond GBP10 million per annum.

Voyage's rating could be upgraded if Voyage was able to generate
substantial free cash flow above GBP15 million per annum on a
sustainable basis. Moreover, leverage would have to fall towards
5.5x adjusted debt/ EBITDA.

The rating would come under pressure in a period of sustainably
negative free cash flow generation or if leverage increased above
6.5x adjusted debt/EBITDA.

Liquidity

As of September 30, 2012, the liquidity profile of Voyage over
the next 12 months is solid. In Moody's scenario, the company has
access to total funds of GBP331 million, comprising of GBP14
million of cash, GBP15 million cash generated from operations
(FFO), GBP272 million from new instruments issued and GBP30
million available under the undrawn super senior revolving credit
facility. Moody's calculates that Voyage would have cash needs of
GBP286 million over the same period, comprising of GBP273 million
debt repayments, transaction costs and swap termination costs,
GBP7-8 million capex and GBP5 million working cash for its day-
to-day operations.

Structural Considerations

The senior secured notes issued by Voyage Care BondCo PLC are
unconditionally guaranteed by the parent, Voyage BidCo Ltd and
certain operating subsidiaries. As of September 30, 2012
guarantors represent 98.5% of the group's consolidated EBITDA
before exceptional items and 99.8% of consolidated gross assets,
respectively. The senior secured notes are secured by the share
capital and substantially all assets of the issuer and the
guarantors except for the share capital of Voyage BidCo Ltd.
Moody's understands that the assets securing the senior secured
notes include the majority (corresponding to 97% of the total
value) of Voyage's freehold property which has been valued at
GBP372 million as of December 2012 by Christie + Co, a third
party service provider. The senior secured notes rank pari passu
with the super senior revolving credit facility but receive
proceeds from the collateral only after the obligations under the
super senior revolving credit facility and certain hedging
obligations have been repaid in full.

The second lien notes issued by Voyage Care BondCo PLC benefit
from the same guarantor coverage and security package as the
senior secured notes but on a subordinated basis. Second lien
note holders receive proceeds from the collateral only after the
obligations under the super senior revolving credit facility,
certain hedging obligations and senior secured notes have been
repaid in full.

In Moody's analysis of the priority of claims within the
suggested capital structure the super senior revolving credit
facility (approx. GBP30 million) ranks ahead of all other
obligations as the banks have a first priority claim on the
enforcement proceeds from the collateral. The senior secured
notes (approx. GBP222 million) as well as trade payables rank
behind the super senior revolving credit facility but before the
second lien notes (approx. GBP50 million). Lease rejection claims
rank behind the second lien notes at the bottom of the debt
waterfall. As a result of Moody's Loss given Default analysis the
senior secured notes are rated at same level than the corporate
family rating. The second lien notes are rated two notches below
the corporate family rating given their claims contractually
ranking behind the senior secured notes and super senior
revolving credit facility in a default scenario.

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

Headquartered in Lichfield (United Kingdom) Voyage provides a
diverse range of care solutions for people with complex needs,
such as learning disabilities, physical disabilities and acquired
brain injuries. Based in 348 separate residential services and 12
day care centers Voyage provides both registered accommodation
and supported living for high acuity service users. Voyage is
private-equity owned by HgCapital which acquired the company in
April 2006. In FY2011/12 Voyage generated revenues of GBP142.2
million and an EBITDA of GBP35.1 million.


VOYAGE HOLDING: Fitch Affirms 'B' Long-Term IDR; Outlook Stable
---------------------------------------------------------------
Fitch Ratings has affirmed Voyage Holding Limited's Long-term
Issuer Default Rating (IDR) at 'B'. The Outlook has been revised
to Stable from Negative.

The Stable Outlook reflects the completion of the refinancing of
100% of Voyage's existing debt with the proceeds of the offering
of GBP222 million senior secured notes and GBP50 million second
lien notes. The previous Negative Outlook factored the
significant refinancing risk within 18 months, as all of Voyage's
debt was maturing in April 2014.

Fitch has also assigned Voyage Care BondCo PLC's GBP222 million
senior secured notes a rating of 'BB'/'R1' and Voyage Care BondCo
PLC's GBP50 million second lien notes a rating of 'CCC+'/R6'. The
terms of the final documentation are aligned with the material
already reviewed when assigning the expected ratings on these
debt instruments.

The 'BB' rating for the senior secured notes reflects the
significant asset base through Voyage's ownership (freehold and
long leasehold) of 76% of properties by number of beds. These
were valued in November 2012 at GBP372 million by an independent
party. In its recovery analysis, Fitch adopted the liquidation
value of the company, primarily consisting of its freehold and
long-leasehold properties, as the resultant enterprise value is
higher than the going concern enterprise value. Fitch believes
that a 30% discount on the current market value of the assets is
deemed fair in a distress case.

Key Drivers

Solid Market Positioning In Small Market:

With sales of GBP142 million for the year ended March 31, 2012
(FY12) and EBITDA of GBP37 million, Voyage is a small player in
the UK social care market. However, it is the number one market
player in the fragmented UK market offering support for people
with learning disabilities. This market is growing, driven by the
ageing population and the improvement in diagnostics. Through its
focus on the higher end of the acuity spectrum, the company is
somewhat protected from substitution and from substantial funding
cuts from local authorities.

Geographical and Business Diversification:

Voyage has solid geographical diversification in the UK with no
single local authority purchaser accounting for more than 3.8% of
revenues for FY12. In addition to its core registered care homes
division (approximately 82% of EBITDA before overhead expenses
for the 12 months ended September 2012), Voyage covers the full
spectrum of social care services for people with learning
disabilities, including supported living settings as well as
"outreach" and day care activities. This business diversification
provides a hedge against government policy changes.

High Dependence on Local Authority Funding:

The ratings are constrained by Voyage's high dependence on local
authorities funding (approximately 83% of FY12 total revenues).
In the context of the current reduction in UK local authorities'
budgets, the average level of fees funded by local authorities is
expected to remain under pressure in the coming years.

Relatively Weak Credit Metrics:

The rating is also constrained by Voyage's relatively weak credit
metrics. Based on its conservative projections, Fitch expects
post refinancing lease-adjusted funds from operations (FFO) net
leverage of 6.1x at end March 2013, reducing towards 5.6x at end
March 2015 and FFO fixed charge cover remaining around 1.6x over
the same period. Free cash flow (FCF) is also expected to be
relatively low compared with higher rated healthcare peers, at an
expected GBP11 million p.a., significantly affected by the
interest payments.

Fitch has not classified as debt the GBP261 million (at end of
March 2012) shareholder loan issued at Voyage Mezzco Ltd. and has
therefore excluded it from leverage and coverage ratios. The
proposed features of this instrument match Fitch's perception of
an-equity like instrument.

Modest FCF Generation:

Voyage operates in a fragmented and growing industry and its
modest FCF generation offers limited headroom to fund any
development capex or acquisitions with internally generated cash
flow. This risk is mitigated by the company's ability to access
equity funding for acquisitions from its shareholders,
restrictions to debt-funded acquisitions and management's
intention to focus primarily on organic growth.

RATING SENSITIVITY GUIDANCE:

Positive: Future developments that could lead to positive rating
actions include:

- Sustained annual FCF generation of GBP20m or more
- FFO adjusted net leverage of 5x or below
- FFO adjusted leverage below 6x with FFO fixed charge coverage
   above 2.5x

Negative: Future developments that could lead to negative rating
action include:

- FFO adjusted net leverage above 6.5x
- FFO adjusted leverage above 7x, with FFO fixed charge coverage
   below 1.2x on a permanent basis and FCF margin below 3%

Fitch may have provided another permissible service to the rated
entity or its related third parties. Details of this service can
be found on Fitch's website in the EU regulatory affairs page.

Upper Tier 2 subordinated debt (XS0244754254): 'BB+',


* UK: HM Revenue & Customs Denies Lack of Funding for Liquidation
-----------------------------------------------------------------
Kristy Dorsey at The Scotsman reports that HM Revenue & Customs
has denied it has run out of money to pay for insolvency services
following a dramatic decline in winding-up orders.

Restructuring practitioners from several firms that undertake
work on behalf of HMRC in Scotland have confirmed a marked drop
that began in the final quarter of last year, the Scotsman notes.

Most experts believe it is down to a lack of funding, rather than
a case of the taxman taking a softer stance on delinquent debts,
the Scotsman says.

"HMRC is under huge pressure to collect the taxes owed to the
government, which is why we are hearing about companies finding
it increasingly difficult to negotiate a grace period through the
'Time to Pay' scheme," the Scotsman quotes one of the
practitioners as saying.

"I would expect they will start petitioning again in April, when
it's a new financial year with a new budget.  That's unless their
whole policy has changed, but I can't imagine that is the case."

An analysis of official figures released by accountancy firm PFK
shows compulsory liquidations falling from a high of 348 in the
second quarter of last year to 197 in Q3 and just 94 in the final
three months of the year, the Scotsman discloses.  HMRC, the
Scotsman says, is the biggest initiator of such proceedings.

After filing 515 petitions to wind up companies in the first half
of last year, activity by HMRC slowed down, with only 107
Scottish firms receiving such notices in the second half of 2012,
the Scotsman states.  The decline was most pronounced in the
final quarter, with September's 18 petitions falling away, to
just one in October, two in November and one in December, the
Scotsman notes.

According to the Scotsman, a spokeswoman for HMRC dismissed as
"nonsense" the idea that the tax agency has run out of money to
wind up companies.



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


* EU Ripe for Project Bond Market, But Progress Slow, Fitch Says
----------------------------------------------------------------
The shift to a more liquid European project bond market with a
blend of financing between the capital markets and banks is
inevitable. The limited institutional investor base, unfavorable
capital rules and investment risks associated with the long-term
nature of the potentially illiquid bonds means progress will be
slow.

The twin drivers of governments pushing infrastructure spending
to kick-start the economy and banks deleveraging means the
European market is ripe for the transfer to the capital markets.
The market needs to broaden beyond the already active large
insurance companies and pension funds, but there is a perception
that there is currently only appetite for 'A' rated bonds.

The various initiatives underway will bring more investors to the
market, either through direct investments in credit enhanced
project bonds or through private debt funds. Ultimately we
believe this will increase appetite for 'BBB' rated debt when
both supply and liquidity will be proven.

The lack of secondary market liquidity is a concern because it
limits investors' ability to manage their exposure. This is one
of the primary reasons why investors shy away from the project
bond market in comparison to similarly rated corporate bonds. For
example, an investor who is required to sell sub-investment grade
holdings will not buy bonds rated close to the 'BBB' limit
without certainty that there will be buyers should the credit
deteriorate.

Furthermore, the long-dated nature of the bonds more than doubles
the capital charges for a 25 year bond compared with a five year
bond in the latest draft of Solvency II. If the regulatory debate
doesn't change the rules, the disadvantage will be compounded by
the fact that Solvency II is primarily based on credit quality
and duration and so does not account for the security package -
which often results in higher recoveries in default than
unsecured corporate bonds.

Long-term investors are also often seeking inflation hedging.
Infrastructure equity investments offer at least in part this
feature, but it is rarely the case for infrastructure debt. The
development of a genuine inflation-linked bond market without the
complexity of synthetic hedging with periodic break up or pay-as-
you-go clauses would probably raise the appetite for the sector.


* EU Investor Survey Shows Growing Optimism on Crisis, Fitch Says
-----------------------------------------------------------------
European investors are increasingly optimistic about the eurozone
sovereign crisis, according to Fitch Ratings' quarterly investor
survey.

The proportion of survey respondents who expect fundamental
credit conditions for European developed market sovereigns to
improve rose sharply to 51%, up from 29% in the October survey.
This is the first time in three years that optimists have
outnumbered pessimists.

When asked about the end-game for the eurozone, just over half
(51%) said they expect it to muddle through. 28% anticipate
fiscal union.

The responses signal more confidence than in the July 2012
survey. Although 11% still think the end-game will involve Greece
and perhaps one or two other peripheral countries leaving the
eurozone, this is down sharply from the 21% who predicted this
outcome just six months ago.

53% think that eurozone sovereign funding conditions in 2013 will
be better than H212. 39% expect conditions to be about the same
and only 8% expect deterioration.

The responses chime with Fitch's view that the announcement of
the European Central Bank's Outright Monetary Transactions (OMT)
programme in September marked a major turning point by
significantly reducing the tail risk of a self-fulfilling
liquidity crisis for a eurozone sovereign. Policy makers appear
determined to keep the periphery countries in the eurozone, for
example by continuing to provide official support to Greece.

Nevertheless, as we said in our 2013 Global Sovereign Outlook,
the crisis is far from over and significant risks remain. Policy
momentum towards a deeper economic and monetary union needed to
secure the eurozone's long-term viability will probably slow in
2013. This is in part because market pressures have receded, but
also due to other factors such as the approach of German
elections. Volatility will stay high, and investor confidence
will not be fully restored until a tangible economic recovery is
underway.

The Q113 survey was conducted between 4 and 31 January and
represents the views of managers of an estimated USD7.6 trillion
of fixed-income assets. We will publish the full survey results
in mid-February.


* FTI Expands Corporate Finance/Restructuring Advisory Team
-----------------------------------------------------------
FTI Consulting on Feb. 6 announced the appointment of Andreas Von
Keitz as a Senior Managing Director in the Corporate
Finance/Restructuring practice in EMEA.

Mr. Von Keitz will join FTI Consulting as a Senior Managing
Director based in London and Munich and will lead the Operational
Transformation business within EMEA, primarily advising private
equity organizations on enhancing the value of their portfolios.
Mr. Von Keitz specializes in providing hands-on operational
consulting and has 20 years of experience.  He joins FTI
Consulting from KPMG, where he was Head of the Operations team
within Transaction Services.  Prior to that, he worked for
AlixPartners, Bain and A.T. Kearney.

Mr. Von Keitz brings to the team significant experience in the
development and execution of operational restructuring and
improvement initiatives for private equity and corporates, with
particular expertise in cost management, reorganizations, supply
chain management, portfolio management, cash management and post-
merger integration.  He has advised on many high-profile
transactions across Europe, working with private equity, as well
as with corporates.

Kevin Hewitt, the EMEA Head of Corporate Finance/Restructuring at
FTI Consulting, commented, "The Corporate Finance/Restructuring
team at FTI Consulting is one of the market-leading restructuring
advisors.  The appointment of Andreas, among others, will
continue to build our operational advisory services and supports
our strong cross-practice offering in private equity."

                      About FTI Consulting

FTI Consulting, Inc. -- http://www.fticonsulting.com-- is a
global business advisory firm dedicated to helping organizations
protect and enhance enterprise value in an increasingly complex
legal, regulatory and economic environment.  With more than 3,800
employees located in 24 countries, FTI Consulting professionals
work closely with clients to anticipate, illuminate and overcome
complex business challenges in areas such as investigations,
litigation, mergers and acquisitions, regulatory issues,
reputation management, strategic communications and
restructuring.  The company generated $1.56 billion in revenues
during fiscal year 2011.


* BOOK REVIEW: Corporate Venturing -- Creating New Businesses
-------------------------------------------------------------
Authors: Zenas Block and Ian C. MacMillan
Publisher: Beard Books, Washington, D.C. 2003
(reprint of 1993 book published by the President and Fellows of
Harvard College).
List Price: 371 pages. $34.95 trade paper, ISBN 1-58798-211-0.

Creating new businesses within a firm is a way for a company to
try to tap into its potential while at the same time minimizing
risks.  A new business within a firm is like an entreprenuerial
venture in that it would have greater flexibility to
opportunistically pursue profits apart from the normal corporate
structure and decision-making processes.  Such a business is
different from a true entrepreneurial venture however in that the
business has corporate resources at its disposal.  Such a company
business venture has to answer to the company management too.
Corporate venturing -- to use the authors' term -- offers
innovative and stimulating business opportunities.  Though
venturing is in a somewhat symbiotic relationship with the parent
firm, the venture would never threaten to ruin the parent firm as
a entrepreneur might be financially devastated by failure.

Block and MacMillan contrast an entreprenuerial enterprise with
their subject of corporate venturing, "When a new entrepreneurial
venture is created outside an existing organization, a wide
variety of environmental factors determine the fledgling
business's survival.  Inside an organization . . . senior
management is the most critical environmental factor."  This
circumstance is the basis for both the strengths and limitations
of a corporate venture.  In their book, the authors discuss how
senior management working with the leadership of a corporate
venture can work in consideration of these strengths and
weaknesses to give the venture the best chances for success.  If
the venture succeeds beyond the prospects and goals going into
its formation, it can always be integrated into the parent
company as a new division or subsidiary modeled after the regular
parts of a company with the open-ended commitment, regular hiring
practices, and reporting and coordination, etc., going with this.
As covered by the authors, done properly with the right
commitment, sense of realism and practicality, and preliminary
research and ongoing analysis, corporate venturing offers a firm
new paths of growth and a way to reach out to new markets, engage
in fruitful business research, and adapt to changing market and
industry conditions. The principle of corporate venturing is the
familiar adage, "nothing ventured, nothing gained."  While it is
improbable that a corporate venture can save a dying firm, a
characteristic of every dying firm is a blindness about
venturing.  Just thinking about corporate ventures alone can
bring to a firm a vibrancy and imagination needed for business
longevity.

Ideas, insights, and vision are the essence of corporate
venturing.  But these are not enough by themselves. Corporate
venturing is based as much on the right personnel, especially the
top leaders.  The authors advise to select current employees of a
firm to lead a corporate venture whenever feasible because they
already have relationships with senior management who are the
ultimate overseers of a venture and they understand the corporate
culture.  In one of their several references to the corporate
consultant and motivational speaker Peter Drucker, the authors
quote him as identifying only half jokingly the most promising
employees to lead the corporate venture as "the troublemakers."
These are the ones who will be given the "great freedom and a
high level of empowerment" required to make the venture workable
and who also are most suited to "adapt rapidly to new
information." Such employees for top management of a venture are
not entirely on their own.  The other side of this, as Brock and
MacMillan go into, is for such venture management to earn and
hold the trust and confidence of the firm's top management and
work within the framework and follow the guidelines set for the
venture.

Corporate venturing is an operation which is a hybrid of the
standard corporate interests and operations and an independent
business with entrepreneurial flexibility mainly from focus on
one product or service or at most a few interrelated ones,
simplified operations, and streamlined decision-making.  From
identifying opportunities and getting starting through the
business plan and corporate politics, Brock and MacMillan guide
the readers into all of the areas of corporate venturing.

Zenas Block is a former adjunct professor with the Executive MBA
Program at the NYU Stern School of Business.  Ian C. MacMillan is
associated with Wharton as a professor and a director of a center
for entrepreneurial studies.


                            *********

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

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

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

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


                            *********


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

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

Copyright 2013.  All rights reserved.  ISSN 1529-2754.

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

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

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000 or Nina Novak at
202-241-8200.


                 * * * End of Transmission * * *