TCREUR_Public/130306.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Wednesday, March 6, 2013, Vol. 14, No. 46



* CYPRUS: Agrees to Submit Review on Money Laundering Controls


ISS GLOBAL: S&P Rates Senior Secured Credit Facilities 'BB-'


FREESEAS INC: Issues 200,000 Additional Shares to Hanover


* ICELAND: Creditors of Failed Banks to Lose About US$3.6 Billion


IRISH BANK: TriOptima Holds Compression Cycles for CDS Trades
* IRELAND: Euro Finance Ministers Back Loan Maturity Extension


UKIO BANKAS: Siauliu Bankas Reopens Six Former Branches


SNS REAAL: Shareholders Won't Get Any Compensation


PETROMENA ASA: Wants Deutsche Bank Suit Heard in Norway


CENTRAL EUROPEAN: Obtains US$50-Mil. Credit Facility From RTL


HOME CREDIT: Fitch Rates RUB3BB Fixed-Rate Exchange Bonds 'BB-'


ISTRABENZ DD: Concludes Refinancing Deal with Creditors


PESCANOVA: Files for Pre-Receivership, Owes EUR1.522 Billion
PESCANOVA SA: Commences Initial Phase of Creditor Protection Bid


NAJAD YACHTS: Economic Downturn Spurs Bankruptcy

U N I T E D   K I N G D O M

2E2: Datatec Acquires European Unit for EUR24 Million
MUSICAL FESTIVAL: In Administration, Owner Owes GBP4.8 Million
NEWGATE FUNDING: S&P Affirms 'B-' Rating on Class E Notes
PROPER WELSH: Dairy Crest Buys Firm Out of Administration


* Moody's Releases Comparative Report on Global RMBS Markets



* CYPRUS: Agrees to Submit Review on Money Laundering Controls
Matthew Dalton and Matina Stevis at The Wall Street Journal
report that Cyprus, the next euro-zone country in line to receive
a bailout, has agreed to submit to an independent review of the
country's controls on money laundering, in a bid to ease the
currency bloc's concerns about lending billions of euros to prop
up Cypriot financial institutions, a popular destination for
offshore cash.

Pumping more capital into Cypriot banks will be a major part of
the bailout, which euro-zone finance ministers said after a
meeting Monday would be ready by the end of March, the Journal
notes.  Germany, Finland and a few other euro-zone nations have
feared the political cost of bailing out banks that hold billions
of euros in deposits from Russia and elsewhere outside the euro
zone, the Journal states.

According to the Journal, officials said that the talks on Cyprus
came as euro-zone finance ministers met Monday in part to
consider whether to give the euro zone's struggling economies
more time to cut their government budget deficits and avoid a new
round of austerity that could push the 17-nation economy deeper
into recession.

European officials said that the review of Cyprus's money
controls may be conducted by Moneyval, a committee of anti-money
laundering experts backed by the 47-nation Council of Europe and
one of the Big Four accounting firms, the Journal relates.  The
Cypriot government has been pushing for involvement by Cyprus'
central bank, the Journal notes.

Euro-zone officials declined to address the fate of Cypriot bank
depositors, which is shaping up to be one of the most
controversial issues in the bailout talks, the Journal discloses.
According to the Journal, the International Monetary Fund has
been pressing for noninsured depositors in Cypriot banks to take
losses, a move that would cut the cost of the bailout and leave
the Cypriot government with a more manageable debt burden.

But the commission, the European Central Bank and most euro-zone
governments have resisted this option, because of the risk it
could spark depositors to yank their money from banks in Cyprus
and other struggling euro-zone countries, the Journal states.

No final decisions on the issues were expected at Monday's
gathering, the Journal says.  The 27 EU ministers was set to
discuss yesterday new rules on bank capital and caps on banker
bonuses, the Journal disclose.


ISS GLOBAL: S&P Rates Senior Secured Credit Facilities 'BB-'
Standard & Poor's Ratings Services said that it assigned its
'BB-' issue rating to debt drawn under ISS Global A/S' existing
senior secured facilities and to ISS Global's proposed additional
EUR600 million (about Danish krone [DKK] 4.5 billion) term loan
due 2018.  The recovery rating on the existing senior secured
facilities and the proposed additional term loan is '3',
indicating our expectation of meaningful (50%-70%) recovery in
the event of a payment default.  ISS Global is a subsidiary of
Denmark-based facilities provider ISS A/S (BB-/Positive/--).

At the same time, S&P affirmed its 'B' issue rating on ISS
Global's EUR110.4 million 4.5% senior unsecured medium-term notes
due 2014 and ISS' EUR581.5 million 8.875% subordinated notes due
2016.  S&P's recovery rating on these notes remains unchanged at
'6', indicating its expectation of negligible (0%-10%) recovery

The recovery rating of '3' on the senior credit facilities
(including the existing term loans and the proposed term loan) is
underpinned by ISS' good valuation, which is itself a function of
the company's "strong" business risk profile.  The recovery
rating also reflects the senior facilities' security and the
jurisdiction of Denmark, which S&P considers to be favorable to
creditors.  The recovery rating is constrained at '3', however,
by the sizable level of first-lien debt, which somewhat dilutes
overall recovery prospects for the senior facilities.  The '6'
recovery rating on the two classes of notes reflects these notes'
structural and contractual subordination to the senior

ISS has initiated an extension-and-amendment request aimed at
extending the maturity date of its revolving credit facility
(RCF) and some term loans under the senior facilities agreement
to 2017 and 2018 from 2014 and 2015, respectively, and at
borrowing the proposed term loan under the senior facilities
agreement.  S&P understands that ISS will use the proceeds from
the additional term loan to repay and cancel the DKK4.4 billion
(about EUR600 million) second-lien facility.  Following this
transaction, the company's capital structure will be primarily
composed of: the total DKK21 billion senior facilities; the
DKK800 million senior unsecured medium-term notes due in 2014;
the DKK4.4 billion subordinated notes due 2016; and a DKK3.0
billion securitization facility currently due in 2014.

S&P understands that the new term loan will become a tranche of
the existing senior secured facilities agreement and will benefit
from the same terms and conditions, including the same guarantee
and predominantly the same security, as the existing term loans.
The pari passu status of the new term loan with the existing term
loans vis a vis the security will be established by the existing
intercreditor agreement.  S&P also believes that the security of
the facilities is fairly comprehensive, including security over
shares, receivables, intellectual property, and bank accounts in
jurisdictions in which the guarantors are incorporated and a
floating charge in subsidiaries in the U.K., the U.S., and
Australia.  The facilities also benefit from guarantees from the
group's material operating subsidiaries and contain maintenance
financial covenants.

                         RECOVERY ANALYSIS

In line with S&P's methodology, it simulates a default scenario
to assign recovery ratings to the debt instruments. S&P values
ISS' business as a going concern, on the basis of what it sees as
ISS' good market position and valuable customer base.  S&P
projects a hypothetical default in 2016, most likely triggered by
high leverage and refinancing risk, combined with an inability to
manage the cost base and deteriorating operating performance.

At the point of default, S&P's stressed enterprise value amounts
to about DKK17.7 billion, which is 6.5x S&P's estimated EBITDA of
DKK2.7 billion at the point of default.  After deducting
administrative expenses for the enforcement process and priority
liabilities comprising pension liabilities, finance leases, and a
securitization line, the residual value available amounts to
about DKK12.5 billion.  This residual value provides recovery in
the 50%-70% range for the senior credit facilities (assuming a
fully drawn RCF) and prepetition interest.

On the basis of S&P's assumption that there would be no residual
value available for unsecured and the subordinated creditors,
coverage for this debt is in the 0%-10% range.


New Ratings

ISS Global A/S
Senior Secured                         BB-
   Recovery Rating                      3

Ratings Affirmed

ISS Global A/S
Senior Unsecured                       B                  B
  Recovery Rating                       6                  6

Subordinated                           B                  B
  Recovery Rating                       6                  6


FREESEAS INC: Issues 200,000 Additional Shares to Hanover
The Supreme Court of the State of New York, County of New York,
on Feb. 13, 2013, entered an order approving, among other things,
the fairness of the terms and conditions of an exchange pursuant
to Section 3(a)(10) of the Securities Act of 1933, as amended, in
accordance with a stipulation of settlement between FreeSeas
Inc.,  and Hanover Holdings I, LLC, in the matter entitled
Hanover Holdings I, LLC v. FreeSeas Inc., Case No. 150802/2013.
Hanover commenced the Action against the Company on Jan. 28,
2013, to recover an aggregate of US$740,651 of past-due accounts
payable of the Company, plus fees and costs.  The Settlement
Agreement became effective and binding on the Company and Hanover
upon execution of the Order by the Court on Feb. 13, 2013.

As previously reported, pursuant to the terms of the Settlement
Agreement approved by the Order, on Feb. 13, 2013, the Company
issued and delivered to Hanover 185,000 shares of the Company's
common stock, US$0.001 par value.

The Settlement Agreement provides that the Initial Settlement
Shares will be subject to adjustment on the trading day
immediately following the "Calculation Period" to reflect the
intention of the parties that the total number of shares of
Common Stock to be issued to Hanover pursuant to the Settlement
Agreement be based upon a specified discount to the trading
volume weighted average price of the Common Stock for a specified
period of time subsequent to the Court's entry of the Order.

Based on the adjustment formula, on Feb. 19, 2013, the Company
issued and delivered to Hanover 90,000 Additional Settlement
Shares, on Feb. 25, 2013, the Company issued and delivered to
Hanover another 90,000 Additional Settlement Shares, and on
Feb. 26, 2013, the Company issued and delivered to Hanover
another 90,000 Additional Settlement Shares.

On Feb. 27, 2013, the Company issued and delivered to Hanover
100,000 Additional Settlement Shares pursuant to the terms of the
Settlement Agreement approved by the Order.  The following day,
the Company issued and delivered to Hanover 100,000 Additional
Settlement Shares pursuant to the terms of the Settlement
Agreement approved by the Order.

A copy of the Form 8-K is available for free at:


                        About FreeSeas Inc.

Headquartered in Athens, Greece, FreeSeas Inc., formerly known as
Adventure Holdings S.A., was incorporated in the Marshall Islands
on April 23, 2004, for the purpose of being the ultimate holding
company of ship-owning companies.  The management of FreeSeas'
vessels is performed by Free Bulkers S.A., a Marshall Islands
company that is controlled by Ion G. Varouxakis, the Company's
Chairman, President and CEO, and one of the Company's principal

The Company's fleet consists of six Handysize vessels and one
Handymax vessel that carry a variety of drybulk commodities,
including iron ore, grain and coal, which are referred to as
"major bulks," as well as bauxite, phosphate, fertilizers, steel
products, cement, sugar and rice, or "minor bulks."  As of Oct.
12, 2012, the aggregate dwt of the Company's operational fleet is
approximately 197,200 dwt and the average age of its fleet is 15

As reported in the Troubled Company Reporter on July 18, 2012,
Ernst & Young (Hellas) Certified Auditors Accountants S.A., in
Athens, Greece, expressed substantial doubt about FreeSeas'
ability to continue as a going concern, following its audit of
the Company's financial statements for the fiscal year ended Dec.
31, 2011.  The independent auditors noted that the Company has
incurred recurring operating losses and has a working capital
deficiency.  "In addition, the Company has failed to meet
scheduled payment obligations under its loan facilities and has
not complied with certain covenants included in its loan
agreements with banks."

The Company's balance sheet at June 30, 2012, showed
US$120.8 million in total assets, US$104.1 million in total
current liabilities, and shareholders' equity of US$16.7 million.


* ICELAND: Creditors of Failed Banks to Lose About US$3.6 Billion
Omar R. Valdimarsson at Bloomberg News reports that creditors of
Iceland's failed banks are set to lose about US$3.6 billion no
matter which party wins next month's parliamentary elections.

"Everyone realizes that these kronur claims will be written down
-- in one way or another," Bloomberg quotes Bjarni Benediktsson,
head of the Independence Party, the largest opposition group, as
saying in a telephone interview from Reykjavik.  "The winding up
proceedings of the failed bank estates will be completed using a
completely different, and much weaker, exchange rate than the
official one."

Icelanders head to the polls on April 27, four years after the
Social Democratic-led government ousted its pro-deregulation
predecessor following a wave of protests over economic
mismanagement, Bloomberg discloses.  The country's three largest
banks, including Glitnir Bank hf and Kaupthing Bank hf, defaulted
on US$85 billion in debt in 2008, sending the US$13 billion
economy into its worst recession in six decades and the krona
into a free-fall, Bloomberg recounts.

Most polls suggest the government of Prime Minister Johanna
Sigurdardottir, who also backs writedowns on bank creditors'
krona claims, won't be re-elected, Bloomberg notes.

The banks' winding-up committees are lobbying to win exemption
from Iceland's capital controls, in place since 2008, as they
seek to complete composition agreements to repay at least ISK454
billion (US$3.6 billion) of krona assets trapped by the collapse,
Bloomberg discloses.  Arion Banki hf estimates that in total,
about US$8 billion has been tied up by the controls, Bloomberg

Central bank Governor Mar Gudmundsson said Feb. 25 that the krona
assets will need to be written down to a "considerable degree" as
the currency is under "considerable" pressure, Bloomberg


IRISH BANK: TriOptima Holds Compression Cycles for CDS Trades
TriOptima on March 4 disclosed that it held compression cycles
for both the subordinated and senior debt-related single name
credit default swaps (CDS) of the Irish Bank Resolution
Corporation Limited following a bankruptcy event on February 7.
The Resolution Corporation was created by the court-mandated
merger in July 2011 of Anglo Irish Bank and the Irish Nationwide
Building Society.  Over 70% of the notional principal outstanding
of subordinated debt-linked CDS and over 50% of the senior debt-
linked CDS notional principal submitted to the cycles were

Although a default was acknowledged by the ISDA Determinations
Committee, an auction pursuant to the European "Small Bang" was
not scheduled.  In response to industry interest, TriOptima
offered compression cycles for both the senior and subordinated
debt-linked CDS of the Irish Bank Resolution Corporation.
Reducing the notional principal and number of trades outstanding
in advance of physical settlement will contribute to an
operationally smoother settlement process scheduled for later in

"Market participants were eager to minimize the challenges of
physical settlement, and we were able to offer compression cycles
within 48 hours of initial discussions," said Vikash Rughani,
business manager for triReduce.  "We were pleased to be able to
support this industry initiative."

                         About TriOptima

TriOptima -- is a provider of OTC
derivatives post trade risk management services including
triReduce, triBalance, triResolve, and the recently-launched
triQuantify.  It is an ICAP Group company.  TriOptima maintains
offices in London, New York, Singapore, Stockholm, and Tokyo.

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.

Standard & Poor's Ratings Services said that it lowered its long-
and short-term counterparty credit ratings on Irish Bank
Resolution Corp. Ltd. (IBRC) to 'D/D' from 'B-/C'.   S&P also
lowered the senior unsecured ratings to 'D' from 'B-'.  S&P then
withdrew the counterparty credit ratings, the senior unsecured
ratings, and the preferred stock ratings on IBRC.  At the same
time, S&P affirmed its 'BBB+' issue rating on three government-
guaranteed debt issues.

The rating actions follow the Feb. 6, 2013, announcement that the
Irish government has liquidated IBRC.

* IRELAND: Euro Finance Ministers Back Loan Maturity Extension
Suzanne Lynch at The Irish Times reports that Ireland received a
significant boost in its bid to seek an extension to the
maturities of its bailout loans on Monday night after finance
ministers of the countries that share the euro currency backed
the deal.

Finance ministers from all 27 EU states were set to consider the
issue at a scheduled meeting in Brussels yesterday, which is
being chaired by Minister for Finance Michael Noonan, the Irish
Times discloses.

EU commissioner for economic and monetary affairs Olli Rehn said
he expected an arrangement to be concluded by next month's
meeting of finance ministers, which is scheduled to take place in
Dublin, the Irish Times relates.

According to the Irish Times, while agreement has been reached in
principle to extend the maturities, the scope and technical
detail of how the extension of maturities will be implemented
have yet to be worked out.  If agreed by European finance
ministers, it will fall to the bailout troika to devise the
technical details of the proposal, the Irish Times states.

Eurogroup chairman Jeroen Dijsselbloem declined to comment on the
scale of the adjustments or whether new conditions would be
imposed on Ireland and Portugal as a result of any deal, the
Irish Times notes.


UKIO BANKAS: Siauliu Bankas Reopens Six Former Branches
Business New Europe reports that continuing the rapid push to
clean up the mess at what was Lithuania's sixth-largest bank, six
former Ukio Bankas branches on March 5 were reopened by new owner
Siauliu Bankas, with another 19 to follow.

The grand reopening comes a day after Siauliu, which is backed by
the European Bank for Reconstruction and Development, bought an
entire special issue of government bonds that were issued to
finance the deposit guarantee fund, BNE notes.

Ukio's operations were suspended on February 12 due to concern at
the Bank of Lithuania over the size and quality of its capital
and loans, BNE relates.  A state administrator quickly warned
that liabilities were far in excess of assets, BNE discloses.
Having apparently learned valuable lessons during its much
criticized delayed response to the problems at Snoras Bankas,
which collapsed in late 2011, the regulator swiftly agreed to
sell Ukio's good assets to Siauliu on February 24, BNE recounts.

The buyer has also done its part to rush through the clean-up and
reduce the risk to the wider Baltic banking sector and economy,
BNE says.  By taking over LTL2.7 billion (EUR782 million) in
insured deposits of the insolvent Ukio in a deal that almost
doubled its size, Siauliu cut the related payout by the state
deposit-insurance fund to a total of LTL800 million, BNE notes.
According to BNE, the Finance Ministry has said the fund will
seek to recover its money through bankruptcy proceedings for the
Ukio assets not taken over by Siauliu.

Siauliu -- which was aided by a EUR20 million subordinate loan
from its largest shareholder, the EBRD with a 19.6% stake -- said
in a statement on March 4 that it will start the reopening of
Ukio's 25 former branches immediately, BNE discloses.

                       About Ukio Bankas

Ukio Bankas AB is a Lithuania-based commercial bank, which is
involved in the provision of banking, financial, investment, life
insurance and leasing services to individuals and companies.  It
is Lithuania's sixth-largest lender by assets.  The Central Bank
suspended Ukio Bankas' operations on Feb. 12, 2013, after it was
established the lender had been involved in risky activities.  A
majority 64.9% of Ukio Bankas had been owned by Russian born-
businessman Vladimir Romanov.


SNS REAAL: Shareholders Won't Get Any Compensation
Maud van Gaal at Bloomberg News reports that Dutch Finance
Minister Jeroen Dijsselbloem said SNS Reaal NV shareholders whose
securities were seized as the Netherlands took control of the
Dutch bank and insurer last month won't get any compensation.

"It's my opinion that without expropriation, SNS Reaal and SNS
Bank would have gone bankrupt," Mr. Dijsselbloem, as cited by
Bloomberg, said in a letter published on the ministry's Web site
on Monday.  Dismantling the lender would "have been insufficient
to pay all unsecured creditors, and nothing would have remained
for subordinated debt holders, let alone shareholders."

According to Bloomberg, Mr. Dijsselbloem said that under the
Dutch legislation, the government has to compensate parties it
expropriated, taking into account the company's future prospect
without a nationalization.  On that basis, the compensation offer
is zero, Bloomberg notes.

Investors who suffered losses can submit their objections to the
Enterprise Chamber of the Amsterdam Court of Appeal, which will
rule on whether Mr. Dijsselbloem's offer is adequate, Bloomberg

SNS REAAL NV -- 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.

Dutch Finance Minister Jeroen Dijsselbloem took control of SNS
Reaal on Feb. 1 after real estate losses brought the bank to the
brink of collapse.  The nationalization included shares and
subordinated bonds in SNS Reaal NV and SNS Bank NV.


PETROMENA ASA: Wants Deutsche Bank Suit Heard in Norway
Kit Chellel at Bloomberg News reports that Petromena ASA, an oil
services firm in bankruptcy, said its US$800 million lawsuit
against Deutsche Bank AG accusing the lender of putting its
interest before the company by pulling out of a refinancing deal
should be heard in Norway.

Deutsche Bank, which owned about a quarter of Petromena's debt,
offered in 2008 to help provide financing so the company could
complete construction of deep-water drilling rigs, Bloomberg
says, citing documents filed by Petromena's lawyers with a London
court.  Deutsche Bank then withdrew its support and sold the
bonds to a competing offshore driller -- Seadrill Ltd. Petromena
filed for bankruptcy in 2009, Bloomberg recounts.

"Without the funds to complete the rig construction, Petromena's
business fell apart," Bloomberg quotes lawyers acting for the
company's chairman as saying in the documents.

Petromena filed a lawsuit seeking damages from Deutsche Bank in
Oslo in September 2012, Bloomberg relates.  According to
Bloomberg, the Frankfurt-based lender, in court documents asking
a London court to hear the dispute and throw it out, called the
claim "ambitious."

Petromena's lawyer David Wolfson, at a London court hearing on
Monday, said Norway was the correct venue for a trial, Bloomberg

The case is Deutsche Bank AG London Branch v. Petromena ASA, High
Court of Justice, Queen's Bench Division, Commercial Court, 12-

Petromena ASA -- is a Norway-based
company engaged in the ownership and operation of drilling rigs
and vessels, as well as in the construction of off-shore drilling
platforms and facilities for the oil industry.


CENTRAL EUROPEAN: Obtains US$50-Mil. Credit Facility From RTL
Central European Distribution Corporation and Roust Trading Ltd.
have entered into a credit facility with an aggregate principal
amount of US$50 million.

Most of the Company's subsidiaries are guarantors under the RTL
Credit Facility.  The RTL Credit Facility benefits from security
granted by certain of the Company's subsidiaries in Russia over
inventory of specified brands with an aggregate value of goods in
circulation at any time not less than 2,170,000,000 Russian
rubles (approximately US$70 million) calculated by reference to
the balance sheet value of the goods (excluding VAT).

Pursuant to the terms of the RTL Credit Facility, US$50 million
aggregate principal amount of the 3% senior notes due 2013 issued
by the Company to RTL in May, 2012, is being converted into a new
term loan from Roust Trading to the Company in an aggregate
principal amount of US$50 million.  The amounts owed under the
RTL Credit Facility are to be used for working capital and
general corporate purposes.

The RTL Credit Facility has a final maturity date falling 12
months after the date on which the Conversion takes place.
Subject to certain conditions, CEDC may voluntarily prepay the
whole or any part of the RTL Credit Facility by giving not less
than 5 business days' notice to Roust Trading.

The RTL Credit Facility bears interest at 3.00% per annum and
accrued interest under the RTL Credit Facility will be payable by
the Company on March 18, 2013, Sept. 18, 2013, and the Final
Maturity Date.  On the last day of the first interest period
under the RTL Credit Facility, the Company will also pay to Roust
Trading an amount equal to the amount of interest accrued on
US$50 million of the RTL Notes between Sept. 18, 2012, and the
day falling immediately prior to the date on which the Conversion
takes place.

The RTL Credit Facility requires the Company and the guarantors
to make a number of customary representations and comply with a
number of customary undertakings.

The RTL Credit Facility is governed by and construed in
accordance with English law.

A copy of the Form 8-K is available for free at:


                            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

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 are
coming due in 2012 and will need 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.


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 US$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.


HOME CREDIT: Fitch Rates RUB3BB Fixed-Rate Exchange Bonds 'BB-'
Fitch Ratings has assigned Home Credit & Finance Bank's RUB3
billion BO-2 senior unsecured fixed-rate exchange bonds a Long-
term rating of 'BB-'.

The bonds are due in February 2016, coupons are paid quarterly
and bear a 9.4% rate. HCFB's obligations under the bonds rank
equally with the claims of other senior unsecured creditors
except claims of retail depositors, which under Russian law rank
above those of other senior unsecured creditors. Retail deposits
accounted for 64% of the bank's total liabilities at end-Q312,
according to HCFB's 9M12 IFRS disclosures.

HCFB is one of the leading mass-market retail lenders in Russia,
with a market share of approximately 22% in POS loans, 3.5% in
cash loans and 3.1% in credit cards as of 30 September 2012. It
is fully owned by Home Credit B.V., a 100% subsidiary of PPF
Group N.V. (whose majority shareholder is Czech businessman Mr.
Petr Kellner).

Key Rating Drivers

The issue's rating corresponds to HCFB's Long-term local currency
Issuer Default Rating (IDR, 'BB-'/Stable).

Rating Sensitivities

Any changes to HCFB's Long-term local currency IDR would also
impact the issue's rating.


ISTRABENZ DD: Concludes Refinancing Deal with Creditors
SeeNews reports that a bourse filing indicated on Monday
Istrabenz d.d. has concluded a new deal with its creditors for
the refinancing of EUR158.9 million (US$207 million) in residual

According to SeeNews, a filing with the Ljubljana Stock Exchange
showed that the new financing conditions oblige the company to
repay the debt in two tranches.  The first tranche totaling
EUR92.9 million should be repaid in five years while the
remaining portion should be repaid in 10 years, SeeNews states.

The new deal is in the form of annex to the agreement between
Istrabenz and its lenders sealed as part of the company's
financial restructuring plan, SeeNews discloses.

The company's management said that the new deal represents a
basis for the company's long-term solvency while its successful
implementation will enable a further debt reduction and a
possibility of company's continued existence, SeeNews relates.

The statement said that despite deteriorating market conditions,
since 2009 Istrabenz has repaid EUR276.5 million in principal to
its lenders, equal to 63.51% of the initial debt, plus EUR31.8
million in interest, SeeNews notes.

Istrabenz dd -- is a Slovenia-based
holding responsible for the asset management and supervision of
the Istrabenz Group members.  The Company has developed
investments in the number of divisions: Energy, which covers the
gas business, production and distribution of energy,
transshipment and storage of oil derivatives; Tourism, which
offers hotel, catering, wellness and congress services;
Investments, which deals with advertising, financial services and
technical consulting; Food, which markets food products, and
Information Technology that provides information support to the
companies of the Istrabenz Group.  As of December 31, 2008
Istrabenz Group comprised 77 companies.  The Company operates a
number of subsidiaries, including wholly owned Istrabenz Turizem
dd and Istrabenz Marina Invest doo.

Istrabenz declared insolvency in 2009 and went into receivership
this year after it struggled to repay debt accumulated before the
global financial crisis.


PESCANOVA: Files for Pre-Receivership, Owes EUR1.522 Billion
The Fish Site reports that Pescanova has filed for pre-
receivership, a debt restructuring option.

Pescanova currently has debt of EUR1.522 billion, eight times its
annual operating profit, reports EL Pais, according to The Fish

The report notes that the newspaper stated that by entering pre-
receivership, the company is allowed three months to try to
refinance its liabilities.  The report relates that the National
Securities Commission (CNMV) on Friday 1 March suspended trading
in Pescanova's shares.

El Pais reported that Pescanova said it would not be filing its
earnings report for last year after its auditor threw into
question the viability of the company as a going concern, the
report relays.   Pescanova said it was either looking to sell
salmon fish farms it owns in Chile or file for pre-receivership,
the report adds.

Pescanova is a Spanish seafood manufacturer which owns salmon
farms in Chile.

PESCANOVA SA: Commences Initial Phase of Creditor Protection Bid
Manuel Baigorri and John Glover at Bloomberg News report that
Pescanova SA started the initial phase of seeking creditors'
protection and delayed results pending asset sales and a debt

Pescanova, based in Pontevedra, northwest Spain, said last week
it would not provide financial results for 2012 until it proceeds
with either the "certainty" of a sale of some salmon-farming
assets or the renegotiation of its debt, Bloomberg relates.  The
company also said it entered a preliminary phase of seeking
protection from creditors, Bloomberg notes.

"This was totally unexpected," Bloomberg quotes Joao Safara
Silva, a Madrid-based analyst at Banco BPI, as saying in a
telephone interview on Monday.  "Like many other Spanish firms,
Pescanova had debt-related problems, but it was still regarded as
a solid company.  It should have been able to avoid this

"The company continues to carry out its regular activities and it
will announce any significant development about the debt and
asset-sale negotiations through the stock-market regulator,"
Angel Matamoro, general manager at Pescanova Alimentacion, the
unit that sells products in Spain, as cited by Bloomberg, said in
a phone interview on Monday.

Mr. Matamoro declined to comment on when the company will agree
new terms on its debt or sell assets, Bloomberg discloses.  He
also wouldn't say when Pescanova will release its earnings,
Bloomberg notes.

As of March 4, Pescanova has fallen 50% this year, valuing the
business at EUR200 million, Bloomberg states.

Pescanova SA is Europe's second- biggest fish processor.  The
company has about 10,000 employees and a presence in more than 20
countries, counts more than 100 vessels and almost 50 fish-
farming plants among its assets.


NAJAD YACHTS: Economic Downturn Spurs Bankruptcy
Dick Durham at Yachting Monthly reports that Najad Yachts, and
parent company Nord West Yachts have gone bankrupt with the loss
of 150 jobs after being hit by the economic downturn.

According to Yachting Monthly, as the yard -- 50 kilometers north
of Gothenburg -- ran into financial difficulty it had been
visited by officials armed with seizure notices to place upon
unpaid for equipment.

Najad Yachts is a major Swedish boatbuilder.

U N I T E D   K I N G D O M

2E2: Datatec Acquires European Unit for EUR24 Million
Real Deals reports that 2e2 has seen its European arm acquired by
Datatec for EUR24 million.

Datatec did the deal through its Logicalis subsidiary, Real Deals
notes.  The 2e2 businesses being acquired, which include its
operations in Spain, Ireland and the Netherlands, registered
combined revenues of approximately US$150 million last year, Real
Deals discloses.

Duke Street acquired 2e2 for GBP130 million in 2006, Real Deals

2e2 is a Newbury-based IT services group.  2e2 went into
administration at the end of January.  The company owed GBP154.4
million to creditors at the end of 2011.  FTI Consulting, acting
as administrators, laid off 627 people, bringing job losses at
the company to almost 1,000 -- more than two-thirds of its work

MUSICAL FESTIVAL: In Administration, Owner Owes GBP4.8 Million
Tom Pakinkis at MusicWeek reports that Hop Farm Festival owner
Music Festivals PLC owed a total of GBP4.8 million for the 2012
event when it went into administration in September.

MusicWeek, citing Kent News, relates that creditors for last
year's Hop Farm Festival include the Paddock Wood site, which was
owed more than GBP163,000, and Kent Police, which was owed more
than GBP22,000.

A number of top performers were also left without significant
sums of money including Peter Gabriel, who is listed as being
owed GBP100,000, and Suede, who was owed GBP46,000, according to
MusicWeek.  The report relates that other acts who went without
payment include Damien Rice, Billy Ocean, Primal Scream, Richard
Ashcroft, Kool & The Gang, George Clinton and Bruce Forsyth - who
was had outstanding fees of 9,000 plus VAT.

Other firms that are owed money include events company Entertee,
which is owed GBP200,000, and Maidstone's Medevent Medical
Service, which is owed GBP12,644, the report notes.

The report recalls that Vince Power bought back Spain's
Benicassim festival from administrators in October last year.  As
well as Hop Farm, the group also ran Feis Festival in London and
Costa de Fuego in Spain, the report adds.

NEWGATE FUNDING: S&P Affirms 'B-' Rating on Class E Notes
Standard & Poor's Ratings Services affirmed its credit ratings on
all classes of notes in Newgate Funding PLC series 2006-1.

The rating actions follow S&P's review of the transaction's
performance.  S&P has applied its U.K. residential mortgage-
backed securities (RMBS) criteria.

In S&P's opinion, the performance of the loans in the collateral
pool has only slightly deteriorated since its previous review on
June 1, 2012.  Total delinquencies have increased to 40.62% from
38.59%, 90+ days delinquencies to 28.65% from 27.04%, and
repossessions to 1.45% from 0.61%.

The low level of prepayments observed in the pool (2.49%) has
limited the build-up of credit enhancement--particularly for the
junior classes of notes --as the transaction is currently
amortizing sequentially.  Although the transaction is able to
amortize pro rata, the current 90+ days delinquency level of
28.65% is greater than the pro rata trigger of 20.00%.

S&P's credit analysis results differ only slightly from those
reported in its previous review.  This is because the increase in
S&P's weighted-average foreclosure frequency assumption, due to
the increase in delinquencies has been mitigated by the increased
seasoning of the loans in the pool.  S&P's weighted-average loss
severity assumption has also remained similar due to relatively
stable U.K. house prices.

Rating        WAFF     WALS
               (%)      (%)
AAA          54.56    35.05
AA           48.00    30.87
A            41.25    23.08
BBB          35.90    18.88
BB           29.78    15.99
B            26.09    13.37

WAFF--Weighted-average foreclosure frequency.
WALS--Weighted-average loss severity.

In S&P's credit and cash flow analysis, it consider the class A4,
Ma, Mb, Ba, and Bb notes to have sufficient levels of credit
enhancement to achieve ratings that are higher than the current
rating levels.  However, the liquidity facility and bank account
provider (Barclays Bank PLC; A+/Negative/A-1) breached the 'A-1+'
downgrade trigger specified in the transaction documents,
following S&P's lowering of its long and short-term ratings in
November 2011.  Because no remedy actions have been taken since
the downgrade, S&P's 2012 counterparty criteria cap the maximum
potential rating on the notes in this transaction to S&P's 'A+'
long-term issuer credit rating on Barclays Bank.

Taking into account S&P's view of the transaction's stable
performance since its previous review, and the maximum potential
rating achievable under its 2012 counterparty criteria, S&P has
affirmed its ratings on all classes of notes.

Newgate 2006-1 is a U.K. nonconforming RMBS transaction with
collateral comprising a pool of first-ranking mortgages over
freehold and leasehold owner-occupied properties.  Based on loan-
level data provided for December 2012, the collateral pool
comprises 23.42% first-time buyer loans and 67.52% self-certified


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

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



Class        Rating

Newgate Funding PLC
EUR117.5 Million and GBP503.95 Million Mortgage-Backed Floating-
Rate Notes Series

Ratings Affirmed

A4           A+ (sf)
Ma           A+ (sf)
Mb           A+ (sf)
Ba           A+ (sf)
Bb           A+ (sf)
Ca           A (sf)
Cb           A (sf)
D            B (sf)
E            B- (sf)

PROPER WELSH: Dairy Crest Buys Firm Out of Administration
Katy Askew at just-food reports that UK dairy group Dairy Crest
has acquired Proper Welsh Milk.

Dairy Crest snapped up the firm from administration for
GBP325,000 (US$526,022), just-food discloses.

Proper Welsh has been hit by cash flow problems and went into
administration earlier on March 1, just-food relates.

Proper Welsh Milk is a small specialist regional milk group.  The
company was created in 2011 and invested over GBP1 million in a
new dairy on the site of the former Whitland Creamery in
Carmarthenshire.  It now employs around 40 people and packs local
milk for Tesco, Marks and Spencer and a number of other
customers, according to just-food.


* Moody's Releases Comparative Report on Global RMBS Markets
The Japanese, Australian, Dutch and UK residential mortgage-
backed securities and mortgage markets differ in a number of key
ways, says Moody's Investors Service in a Special Comment report
entitled "A Primer: Comparing Japanese, Australian, Dutch and UK
RMBS and Mortgage Markets."

Key differences include, among others, the exposure to bullet
repayment risk, use of third-party credit protection, portfolio
structure (i.e., dynamic versus static) and the significance of
set-off risk.

In Moody's view, Dutch and UK interest-only (IO) mortgage loans
expose investors to bullet repayment risk because borrowers pay
only the interest portion for the entire life of the loan.
Conversely, Japanese and Australian IO loans do not expose the
borrower to bullet repayment risk because they are typically IO
for no more than five years (in Australia) or one year (in Japan)
before fully amortizing.

Moody's notes that, lenders mortgage insurance (LMI) mitigates
credit risk in Australian and Dutch RMBS. However, LMI is not
used in the UK, while lenders in Japan obtain a guarantee,
generally from a subsidiary.

Comparing portfolio structure, Dutch and UK master trust
portfolios change on a regular basis as the seller adds new loans
to the portfolio. As such, the portfolio can lose the benefits of
more seasoned borrowers building equity in their homes over time.
Typically, new loans are not added to Australian and Japanese
portfolios, the static nature of which leaves them more
vulnerable than dynamic portfolios to the performance of any one
vintage of mortgage loans.

In Moody's view, set-off risk is a more significant risk in Dutch
RMBS than the other markets because the tax law encourages the
use of IO mortgage loans in combination with repayment vehicles,
usually a savings or insurance policy provided by an insurance
company. If the insurance company becomes bankrupt, the borrower
can set off the value of the policy against the outstanding
amount of the mortgage loan (i.e., insurance set-off risk). Over
time, this risk increases because the value of the policy
increases over time.

Moody's will publish a more detailed, in-depth version of this
report by the end of the second quarter of 2013.


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

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

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

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


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

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

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

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

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

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

                 * * * End of Transmission * * *