TCREUR_Public/130307.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

             Thursday, March 7, 2013, Vol. 14, No. 47

                            Headlines



B O S N I A   &   H E R Z E G O V I N A

BH AIRLINES: Faces Bankruptcy Over Outstanding Bank Debt


C Y P R U S

SONGA OFFSHORE: S&P Keeps 'B-' Corp. Rating on Watch Negative


D E N M A R K

ISS A/S: Moody's Revises Outlook on 'B1' CFR to Positive


F R A N C E

PSA PEUGEOT: DBRS Lowers Issuer Rating to 'BB'


G E R M A N Y

SOLARION AG: Applies for Self-Administrative Insolvency
WHITE TOWER 2007-1: S&P Cuts Ratings on 3 Note Classes to 'CCC-'


I R E L A N D

CASTLEBECK: In Administration, Staff Abusing Patients
CONWAY PARTNERSHIP: Owner Goes Bankrupt in UK; Owes EUR250 Mil.
HENRY GOOD: In Receivership, KPMG Seeks Buyer
IRISH BANK: Suppliers Have Until April 30 to File Claims
IRISH BANK: DBRS Lowers Issuer Rating to 'D'

MONSOON ACCESSORIZE: To Seek High Court Protection Next Week


I T A L Y

BANCA MONTE: Italian Prosecutors Widen Insider Trading Probe


L A T V I A

OMINASIS LATVIA: Jurmala Court Declares Firm Insolvent


L U X E M B O U R G

INTELSAT SA: Incurs US$145 Million Net Loss in 2012
KERNEL HOLDING: Fitch Affirms 'B' LT Issuer Default Ratings


N E T H E R L A N D S

HARBOURMASTER CLO: Fitch Affirms 'B-' Ratings on 4 Note Classes


P O L A N D

CENTRAL EUROPEAN: Shareholder Balks at Treatment of Tariko Claim
CENTRAL EUROPEAN: Roust Trading Proposes US$172MM in Investment


R O M A N I A

* ORADEA: Fitch Withdraws 'B+/B' Currency Ratings
* ROMANIA: 23,665 Firms Plunge to Insolvency in 2012


R U S S I A

EVROFINANCE-MOSNARBANK: Moody's Affirms Ba3 Deposit Ratings
FIRST REPUBLIC: Moody's Cuts Long-term National Ratings to Ba2.ru
FIRST REPUBLIC: Moody's Lowers Long-term Deposit Ratings to Caa1
NS BANK: Moody's Affirms 'E+' BFSR; Outlook Stable
* CITY OF SURGUT: S&P Affirms 'BB+' LT Issuer Credit Rating


S P A I N

BANCO DE VALENCIA: Fitch Lifts LT Issuer Default Rating From BB-
IBERIA LINEAS: IAG to Push Ahead with 15% Staff Cutbacks
IM GRUPO: DBRS Assigns 'B(high)(sf)' Rating to EUR662.5MM Notes
ORIZONIA: In Receivership, To Close 950 Agency Offices
PESCANOVA SA: Failure to Sell Salmon Biz Cues Insolvency Filing
* SPAIN: Suffer Worst Drop in Corporate Quarterly Earnings


S W E D E N

NORD WEST: In Administration, Seeks New Investors
* SWEDEN: Moody's Says New Rules Evolve to Support Covered Bonds


T U R K E Y

YASAR HOLDING: Moody's Affirms 'B2' CFR; Outlook Negative


U N I T E D   K I N G D O M

2E2: Outsourced Data Storage to Third-Parties, Onyx CEO Says
AXMINSTER CARPETS: Calls Administrators, Cuts Jobs
BAKER AND BOND: High Court Enters Liquidation Order
DREAMS: Sun European Nears Pre-Pack Administration Deal
GLOBAL SHIP: CMA CGM Owns 46.6% of Class A Shares at Feb. 11

GLOBAL SHIP: Amends Registration Rights Agreement with CMA CGM
GOLDMAN VICENTI: High Court Winds Up Debt Collection Firm
HEARTS: Can Fall Into Administration Over Ownership Confusion
IMPRINT SCHOOLWEAR: Placed Into Liquidation
SUPERGLASS: May Struggle to Repay "Unsustainable" Debt


X X X X X X X X

* Upcoming Meetings, Conferences and Seminars


                            *********


=======================================
B O S N I A   &   H E R Z E G O V I N A
=======================================


BH AIRLINES: Faces Bankruptcy Over Outstanding Bank Debt
--------------------------------------------------------
Airwise reports that a senior Bosnian government official said on
Tuesday BH Airlines has been grounded and faces possible
bankruptcy over an outstanding bank debt.

According to Airwise, Enver Bijedic, the Federation's minister
for transport and communications, said that flights had been
halted due to claims of BAM7 million (US$4.6 million) by the
Bosnian arm of Austria's Hypo Alpe Adria Bank.

Last month, the bank froze the airline's accounts over an unpaid
BAM5.5 million leasing loan for two ATR 72 aircraft and a BAM1.5
million rehabilitation loan, Airwise recounts.  Mr. Bijedic said
BH Airlines had deposited collateral of roughly the same amount
with the bank, Airwise notes.

The bank confirmed in a statement that it had frozen the accounts
of BH Airlines because of significant outstanding debt and delays
in the payment of the leasing loan, Airwise relates.

"We did not rush with this decision and the blocking of accounts
was the last option," Airwise quotes the bank's statement as
saying.

"The bankruptcy of BH Airlines is not in our interest," the bank,
as cited by Airwise, said, adding it expected the airline's
management to consider all options to relieve its financial
problems and ensure operations continue.

Under a 2005 contract with Hypo Alpe Adria's leasing arm, BH
Airlines bought two 66-seat ATR 72 aircraft worth a total of
US$18.4 million, Airwise  discloses.

"The company has paid back US$15 million under the leasing loan,
while these two planes are today worth US$9 million,"
Mr. Bijedic, as cited by Airwise, said, blaming the debt on the
airline's previous management.

According to Airwise, Mr. Bijedic said the airline had offered
the bank a new deal to pay off the debt from the sale of the two
aircraft, topped up with a further US$550,000 from the
government.

"We have proposed to level the balance with the bank," Airwise
quotes Mr. Bijedic as saying.  "If they decline, BH Airlines will
go bankrupt, which means that everybody will face a loss," he
said, adding that the Bosnian arm of the bank had sent the offer
to its Austrian headquarters.

"We have already conducted early negotiations with Airbus to buy
one 160-seat Airbus A319 aircraft under a favorable agreement, so
we would then be able to resume flights."

Sarajevo-based BH Airlines is solely owned by Bosnia's autonomous
Muslim-Croat Federation, after Turkish Airlines pulled out of a
joint venture in June last year and handed its 49% stake over to
the government.


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C Y P R U S
===========


SONGA OFFSHORE: S&P Keeps 'B-' Corp. Rating on Watch Negative
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it kept its 'B-'
long-term corporate credit rating on Cyprus-domiciled drilling
company Songa Offshore S.E. (Songa) on CreditWatch, where it was
placed with negative implications on Dec. 7, 2012.

The ongoing CreditWatch placement reflects S&P's assessment of an
increased risk of Songa breaching the leverage covenant in its
bond documentation as early as March 2013, and in the following
quarters if it does not take any action.  The CreditWatch
placement also reflects S&P's perception of management's
generally retroactive approach to addressing liquidity risks, and
leads S&P to assess Songa's management and governance as "weak."
The risk of a covenant breach is the result of Songa's weaker
operating performance than S&P anticipated in 2012, due to
recurrent operational issues, particularly for the Delta and Trym
rigs.

The rating on Songa continues to reflect S&P's assessment of the
company's "highly leveraged" financial risk profile and "weak"
business risk profile.  The rating is constrained by S&P's
assessment of Songa's "weak" liquidity, highly leveraged balance
sheet, and aggressive growth and funding strategies.  Further
risks are the company's presence in the highly cyclical and
competitive offshore drilling industry and S&P's view of "weak"
corporate governance.

S&P forecasts that Songa's operating performance will improve in
the near to medium term, largely because all five of the
company's rigs have been fully operational at full day-rates for
the past few weeks and it has four CAT-D rigs scheduled to be
delivered from June 2014.  S&P estimates that 2013 EBITDA will be
similar to that in 2012 -- about US$180 million-US$200 million --
as the sale of the Eclipse rig will be offset by the stronger
performance of the current fleet, assuming that there are no
major yard stays or rig upgrades this year.

S&P estimates that Songa's capital spending will be about
US$170 million in 2013, before rising significantly to slightly
less than US$1.0 billion in 2014 and 2015 on the back of the
delivery of the Cat D rigs.  S&P understands that Songa is
actively discussing funding options for the first two CAT-D rigs
it has on order. However, S&P sees a risk that liquidity will
become heavily constrained if Songa is not able to secure
committed funding by mid-2013.

S&P aims to resolve the CreditWatch by June 2013.  S&P could
lower its rating on Songa by one or more notches if it do not see
any clear signs of proactive initiatives to tackle covenant risk
in the coming weeks and financing risk associated with the
delivery of the first two CAT-D rigs before June 2013.  This
would leave S&P to believe that the company is unable to amend
its covenants and therefore that a covenant breach will occur.

S&P could also lower the rating if Songa's operating performance
weakens further; its financial flexibility is constrained; or if
we perceive further signs of deterioration in liquidity or
corporate governance.  S&P will review Songa's future financial
and funding strategies before resolving the CreditWatch.

S&P would likely remove the rating from CreditWatch and affirm it
if Songa eliminates the risk of recurring covenant breaches.


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


ISS A/S: Moody's Revises Outlook on 'B1' CFR to Positive
--------------------------------------------------------
Moody's Investors Service changed to positive from stable the
outlook on ISS A/S's B1 corporate family rating and B1-PD
probability of default rating, as well as on the B3 rating on the
group's EUR0.6 billion of subordinated notes maturing in 2016. In
addition, Moody's has affirmed these ratings. Concurrently,
Moody's has assigned Ba3 ratings to ISS's senior secured
facilities.

Ratings Rationale:

Change of Outlook to Positive

"The change of outlook on ISS's B1 ratings is underpinned by our
expectation that the group's liquidity profile will improve as
its refinancing risk is materially reduced over the next two
years," says Knut Slatten, Moody's lead analyst for ISS.

On March 4, 2013, ISS announced it was seeking the consent of its
lenders under its senior facilities agreement for an extension of
certain facilities and other amendments including the
authorization to replace the group's EUR0.6 billion second lien
loan with a newly raised senior secured facility of an equal
amount. Under its proposed amend-and-extend request, ISS seeks to
increase its flexibility to make disposals and redeem its more
expensive junior debt early. "As such, the refinancing supports
the strategy and financial policies presented by ISS last year,
whereby the group remains committed to deleveraging and to the
disposal of non-core assets," adds Mr. Slatten.

The B1 CFR primarily reflects ISS's high leverage, measured by
adjusted debt/EBITDA, which was around 6.0x for the 12 months to
September 2012 (and pro-forma adjusted for a EUR500 million
equity injection in August, the proceeds from which ISS used to
reimburse its EUR525 million of senior notes in December 2012).
However, more positively, the rating is supported by the group's
(1) large scale and diversification; (2) wide geographic
footprint, with an increased presence in emerging growth markets;
and (3) high cash generation, exemplified by its 98% cash
conversion ratio for the last 12 months ended September 2012.

ISS's liquidity is adequate. In addition to a cash balance as of
September 2012 of around DKK3 billion (EUR0.4 billion) pro-forma
for the reimbursement of the EUR525 million of senior notes, ISS
had access to around DKK400 million (EUR54 million) under its
committed revolving credit facility (RCF), which the group is in
the process of extending to December 2017. ISS's refinancing risk
will be materially reduced over the next two years as it has
maturities of around only DKK520 million (EUR70 million) falling
due in 2013 and DKK1500 million (EUR200 million) -- assuming 85%
of lenders will roll into longer dated maturities following the
extension request -- in 2014.

Assignment Of Ba3 Rating To Senior Facilities

The Ba3 rating assigned to the senior secured facilities -- one
notch above the CFR -- reflects their contractually superior
positioning within ISS's capital structure.

ISS's senior secured facilities, which represent around 70% of
its total financial debt, benefit from upstream guarantees from
the group's operating subsidiaries and a first-ranking security
over its assets. Moody's cautions, however, that the relative
preferential positioning of the senior secured facilities will
diminish over time in line with ISS's reimbursement of its more
junior debt, though this could be offset by positive pressure on
the CFR should this debt be repaid in full, thereby reducing the
group's leverage.

What Could Change the Rating Up/Down

Upward pressure on the rating could occur if ISS's adjusted
leverage were to fall below 5.5x. Conversely, negative rating
pressure could arise if the group's operating profitability were
to decline, with adjusted debt/EBITDA moving towards 6.5x.
Negative pressure could also occur if ISS were to make debt-
funded acquisitions or if the company were to experience
difficulty in executing its large-scale Integrated Facility
Services contracts.

The principal methodology used in this rating was the Global
Business & Consumer Service Industry Rating Methodology published
in October 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.

Based in Copenhagen, Denmark, ISS is one of the leading facility
services providers in the world. The company recorded revenues of
DKK78 billion (EUR10 billion) in financial year 2011.



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


PSA PEUGEOT: DBRS Lowers Issuer Rating to 'BB'
----------------------------------------------
DBRS has downgraded the Issuer Rating of PSA Peugeot Citroen (PSA
or the Company) to BB from BB (high).  The rating action reflects
PSA's ongoing cash burn (which worsened in H2 2012 vis-a-vis H1
2012) and associated deterioration in its financial profile amid
very weak conditions in its core European market.  Pursuant to
the "DBRS Recovery Ratings for Non-Investment Grade Corporate
Issuers" methodology (January 2013), DBRS has also downgraded the
Company's Senior Unsecured Debt rating to BB from BB (high), in
line with the associated recovery rating of RR4, which remains
unchanged.  The trend on the ratings remains Negative, reflecting
the Company's assumptions that the European market is likely to
remain at 2012 levels for several years, with this continent
continuing to represent the majority of PSA's automotive sales
(notwithstanding continuing efforts toward improving its
geographic diversification).

The Company recently announced its full year 2012 results, which
reflect an ongoing deterioration in its financial performance.
Worldwide unit sales (including complete knock down units)
amounted to 3.0 million units, which represented a decline of 16%
year over year.  Sales (assembled vehicles only) in PSA's core
European continent dropped by 15%; this was only slightly offset
by a 3% increase in volumes outside Europe.  The core automotive
division incurred a recurring operating loss of EUR1.5 billion
(as reported by PSA); this was only partly offset by ongoing
profitability of Banque PSA Finance (sales financing) and
majority-owned Faurecia (automotive components).  Moreover, on a
consolidated level, PSA incurred a net loss of EUR5 billion,
incorporating impairment charges of EUR3.9 billion to assets of
the automotive division (consisting of an impairment to global
automotive assets of EUR3.009 billion following International
Accounting Standard (IAS) 36 and of writedowns of EUR879 million
resulting from IAS 12 on deferred tax assets).  While DBRS
recognizes that the impairment charges are non-cash and do not
adversely impact the Company's liquidity position, the charges
nonetheless underscore the bleak outlook and deterioration of the
European automotive market.

The Company's cash burn rate in recent periods is concerning.
Through H1 and full year 2012, PSA's industrial operations
generated negative free cash flow in the amounts of EUR400
million and EUR1.9 billion (as calculated by DBRS), respectively.
The Company's cash burn in H2 2012 therefore amounted to
approximately EUR1.5 billion, which exceeded DBRS's expectations.
DBRS notes that PSA's income and coverage-based metrics were
already weak for the assigned ratings.  However, this was partly
offset by PSA's leverage, which remained at reasonable levels as
the Company's substantial cash burn was considerably mitigated by
countermeasures that included asset disposals of EUR2 billion in
addition to an equity offering that generated proceeds of roughly
EUR1 billion.  DBRS recognizes that PSA effectively achieved its
objectives previously outlined in its 2012 cash action plan,
including cost reductions of EUR1.2 billion and the
aforementioned asset disposals, as well as a reduction in
inventories to 416,000 units (i.e., below 2010 levels).  However,
while projected to moderate, DBRS notes that PSA's cash burn is
expected to persist at least through 2013.  Furthermore, the
countermeasures executed in 2012 are unlikely to be repeated (at
least not in a similar magnitude), with the Company's financial
profile and credit measures continuing to deteriorate as a
result.

The Company has undertaken several initiatives in response to the
very challenging environment.  PSA is proceeding further with its
strategic alliance with General Motors Company (GM), with product
and platform developments being increasingly coordinated between
the two companies.  The Company is also progressing in its
efforts to restructure its operations in France.  PSA recently
obtained an agreement with its unions regarding the transfer of
employees from its Aulnay plant to other facilities, effectively
indicating that the wind-down of Aulnay remains on track with its
planned 2014 closure.  The Company's current restructuring plan
is targeting staff cuts of 8,000 throughout France.  PSA is also
looking to increase the relative proportion of premium vehicle
sales and enhance the image of its Peugeot and Citro‰n brands,
although DBRS notes that the higher vehicle segments are very
well represented by primarily various German automotive original
equipment manufacturers whose market position would appear to be
very well entrenched.  The Company is planning a significant
product offensive, with 13 new models scheduled to be launched in
2013; as such, PSA's product cadence will remain favorable, with
an average model age of 3.5 years.  Moreover, the Company remains
among the leaders with respect to carbon dioxide emissions,
having already achieved compliance with 2015 EU regulations.

DBRS notes that the liquidity position of PSA's automotive
operations remains sound. As of December 31, 2012, total
liquidity amounted to EUR9.7 billion, consisting of cash balances
of EUR7.3 billion in addition to the undrawn revolving credit
facility of EUR2.4 billion.  PSA's debt repayment schedule is
also manageable, with a weighted-average maturity of 4.1 years.
Regarding Banque PSA Finance, it has attained sufficient
financings for more than three years through the following: the
renegotiation of EUR11.5 billion of facilities with relationship
banks and a guarantee of EUR7 billion of the French state to back
new bond issues, as well as an increase in securitization
financings.

However, the Negative trend on the ratings reflects the severe
conditions in the European automotive market, which are expected
to persist over the near term.  Should the Company demonstrate
ongoing progress in its recovery plan and reduce its level of
cash burn (PSA has targeted its cash burn in 2013 to be at
approximately half of last year's levels, partly through a
planned reduction of approximately EUR600 million in capex and
capitalized research and development), the trend on the ratings
could be changed to Stable.  However, in the event that the
Company's losses or negative free cash flow persist at levels
materially in excess of its projections, this would likely lead
to a further negative rating action



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G E R M A N Y
=============


SOLARION AG: Applies for Self-Administrative Insolvency
-------------------------------------------------------
PV Magazine reports that Solarion AG has applied for self-
administrative insolvency with the District Court in Germany's
Leipzig.

Lucas Floether has been appointed trustee to oversee the
restructuring, PV Magazine relates.  Mr. Floether will work
alongside Solarion's management to implement a restructuring
plan, PV Magazine discloses.  The opening of the self-
administration procedure is an important step for the
implementation of the planned measures, PV Magazine notes.

According to PV Magazine, Solarion CEO Karsten Otte said the
company currently remains fully operational.  He added that a
part of the reorganization will see the company's business
realigned, PV Magazine discloses.

Solarion AG is a Germany-based CIGS thin film manufacturer.


WHITE TOWER 2007-1: S&P Cuts Ratings on 3 Note Classes to 'CCC-'
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
White Tower Europe 2007-1 PLC's class A, B, C, D, and E notes.

The rating actions follow S&P's review of the underlying loan
under its November 2012 European commercial mortgage-backed
securities (CMBS) criteria.

The Heron City loan is the only remaining loan backing this
transaction.  The loan matured in December 2011 and has been in
special servicing since June 2011, after it breached its loan-to-
value (LTV) ratio covenant.  A leisure and retail center in
Barcelona secures the loan.

On Feb. 15, 2013, S&P received from the special servicer a notice
stating that a new valuation for the property, dated Dec. 31,
2012, was available.  The valuation shows that the property has a
market value of EUR36,862,000.  The outstanding loan balance is
EUR106,902,266, resulting in a high LTV ratio of 290%.  S&P's
analysis has taken into account the updated value and the
possibility that it may constrain any potential sale price.

S&P has lowered its recovery expectations for the loan following
its full review of the loan under its European CMBS criteria.

Taking into account S&P's lower recovery expectations for the
loan, S&P believes that the available credit enhancement for the
class A notes is no longer adequate to absorb the potential
losses calculated under the investment-grade scenarios in S&P's
European CMBS criteria.  Therefore, S&P has lowered to 'BB- (sf)'
from 'A (sf)' its rating on the class A notes.

S&P has lowered its ratings on the class B, C, D, and E notes
because it considers that these classes of notes are highly
vulnerable to principal losses under its base-case scenario.  In
S&P's view, there is a one-in-two likelihood of default on these
classes of notes.

White Tower Europe 2007-1 is a European true-sale CMBS
transaction.  At closing in May 2007, six office, leisure and
retail, and residential loans in Germany, France, and Spain
secured 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 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:

            http://standardandpoorsdisclosure-17g7.com

RATINGS LIST

Class                   Rating
            To                        From

White Tower Europe 2007-1 PLC
EUR349.55 Million Commercial Mortgage-Backed Variable and
Floating-Rate Notes

Ratings Lowered

A           BB- (sf)                 A (sf)
B           CCC (sf)                 B (sf)
C           CCC- (sf)                B- (sf)
D           CCC- (sf)                CCC (sf)
E           CCC- (sf)                CCC (sf)



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I R E L A N D
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CASTLEBECK: In Administration, Staff Abusing Patients
-----------------------------------------------------
Mark Hennessy at Irish Times reports that Castlebeck, which was
severely criticized after staff were shown abusing disturbed
patients, has been put into administration.

Castlebeck, which has 20 centers left in the Midlands and
northwest of England and Scotland, was bought for GBP255 million
in 2006 by Denis Brosnan's Lydian Capital, after he had
encouraged JP McManus, Dermot Desmond and John Magnier to become
involved, according to Irish Times.

The report notes that Castlebeck made international headlines
after an undercover BBC Panorama reporter filmed nurses at one of
its homes, Winterbourne View in Bristol, beating and abusing
patient in a "gross breach of trust and power", a judge said
later when he jailed six of them.

Administrators Grant Thornton said Castlebeck's remaining 214
patients and residents would "continue to receive the highest
level of medical, nursing and clinical care", while transfers, if
necessary, will be carried out as slowly as possible, the report
discloses.

Castlebeck is an English hospital group owned by wealthy Irish
investors led by Denis Brosnan.


CONWAY PARTNERSHIP: Owner Goes Bankrupt in UK; Owes EUR250 Mil.
---------------------------------------------------------------
Tom Lyons at Independent.ie reports that Michael Conway, Jr.,
whose companies had debts of EUR250 million has gone bankrupt in
the UK.

Mr. Conway, who hails from Dripsey, Co Cork, quietly went
bankrupt in Chelmsford County Court in Britain last May,
Independent.ie relates.  He is due to be discharged in three
months' time, Independent.ie discloses.

Mr. Conway's business interests, held primarily through the
Conway Partnership with three other businessmen, was valued at
over EUR500 million at the peak of the boom in an accountants'
report based on Ireland's then crazy property values,
Independent.ie notes.

The Conway Partnership and a variety of other business interests
of Mr. Conway owed Bank of Ireland alone over EUR60 million when
Ireland's property market crashed, Independent.ie says.  This
money related to housing developments and a major mixed
redevelopment Conway hoped to build at City Square, Watercourse
Road, Cork, Independent.ie discloses.

Another EUR40 million was owed to Anglo Irish Bank and EUR130
million to Ulster Bank by partnerships and companies in which
Conway had a stake, Independent.ie states.

Loans from Ulster Bank were drawn down in 2006, 2007 and 2009
after his companies found themselves with expensive landbanks in
Dennehy's Cross, Cork, with planning permission for 143
residential units, and a 63-acre site at Castletreasure, Douglas,
Cork, Independent.ie recounts.  Both sites saw their value wiped
out when property crashed, Independent.ie notes.

The Conway Partnership's other three partners are Conway's
father, Michael Sr., and businessmen Padraig 'Paudie' Dennehy and
Kieran Conway, Independent.ie discloses.


HENRY GOOD: In Receivership, KPMG Seeks Buyer
---------------------------------------------
RTE News reports that Henry Good & Company has gone into
receivership after dealing a severe blow when an interim examiner
was appointed to Cappoquin Poultry, who owed them almost EUR4
million.

The company appointed Kieran Wallace -- kieran.wallace@kpmg.ie --
& David Swinburne --  david.swinburne@kpmg.ie -- of KPMG as joint
receivers.

The directors and receivers are said to be confident that a buyer
will be found for the business, which employs 50 people directly,
according to RTE News.

The report relates that the company will continue to trade on a
"business as usual" basis until Henry Good Ltd is sold as a going
concern.  The report relays that there are already a number of
interested parties and that the receivers are keen that the
business will be sold on as quickly as possible.


IRISH BANK: Suppliers Have Until April 30 to File Claims
--------------------------------------------------------
Donal O'Donovan at independent.ie reports that law firms,
accountancy practices and receivers who worked for Irish Bank
Resolution Corporation have been told to provide detailed claims
for money they are owed by the bank by April 30, but liquidators
warn they have no power to pay the bills.

According to the report, letters were circulated to firms that
worked for IBRC on February 8, a day after Finance Minister
Michael Noonan appointed Eamon Richardson and Kieran Wallace of
KPMG as special liquidators.

The letter, seen by the Irish Independent, tells suppliers that
liquidators intend to continue trading with the bank's former
providers, but states that only bills for work done after the
appointment of liquidators are to be paid. Those submitting bills
for work already done are likely to be classed as unsecured
creditors, the report relays.

All kinds of suppliers are affected, but IBRC is unusual because
legal and other professional services were its biggest cost,
higher even than its annual wage bill, the report says.

independent.ie recalls that before IBRC went into liquidation,
the state-owned former Anglo Irish Bank was a major source of
work for the big Dublin professional services firms.

The last set of full-year accounts for IBRC suggest it spent
around EUR108 million on professional services, classed as "other
administrative costs" in 2011, independent.ie discloses.

That was more than the bank's wage bill, and was paid for advice
on everything from valuing property loans to legal actions
against the family of bankrupt tycoon Sean Quinn, the report
adds.

                           About IBRC

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.


IRISH BANK: DBRS Lowers Issuer Rating to 'D'
--------------------------------------------
DBRS, Inc. downgraded the non-guaranteed senior debt ratings of
Irish Bank Resolution Corporation Limited (IBRC or the Group),
including its Issuer Rating to D, and has subsequently withdrawn
all non-guaranteed debt ratings of the Group.  Concurrently, DBRS
has confirmed the A (low) long-term rating with Negative trend
and the R-1 (low) short-term rating with Stable trend of the
Irish Government Guaranteed instruments issued by IBRC.

This action follows the Irish Government's announcement of 6
February 2013 that IBRC is to be liquidated through the enactment
of the Irish Bank Resolution Corporation Bill 2013.  DBRS notes
that the Government has stated that the normal priorities of the
Companies Acts will apply during the liquidation process.  As
such, unsecured creditors of IBRC will be subordinated to the
repayment of IBRC's debt to the Central Bank of Ireland, which
totalled some EUR42.3 billion at June 30, 2012.  While there was
only EUR169 million of non-guaranteed bonds outstanding as of
June 30, 2012, DBRS's views the likelihood that unsecured
creditors will receive full or even partial recovery as highly
remote.

In confirming the ratings of the Irish Government Guaranteed
instruments, DBRS notes that the Government stated it expects
that holders of guaranteed instruments will be repaid upon filing
a claim under the ELG Scheme.  The ratings of the Irish
Government guaranteed are in line with DBRS's rating of the
Republic of Ireland, which was confirmed on November 21, 2012.


MONSOON ACCESSORIZE: To Seek High Court Protection Next Week
------------------------------------------------------------
The Irish Times reports that Monsoon Accessorize Ireland Ltd.
will seek High Court protection next week so it can continue as a
going concern.

Mr. Justice Brian McGovern said on Tuesday he will hear an
application to appoint a full examiner to the Irish arm of the
UK-based firm on Wednesday next week, the Irish Times relates.

Bernard Dunleavy BL, counsel for Monsoon Accessorize, said the
company is seeking examinership so measures can be brought in to
secure its future, the Irish Times notes.

According to the Irish Times, Mr. Dunleavy said that an
independent accountant's report along with a very "candid" review
by international retail consultants, the Javelin Group, will be
available to the court next week.

Mr. Dunleavy, as cited by the Irish Times, said the company's
largest creditor was the UK parent company, Monsoon Accessorize
Ltd., which is owed EUR5.6 million.

The counsel sought directions from the court in relation to
advertising of the petition for examinership and who should be
notified of that, the Irish Times discloses.

The judge made the directions sought and returned the matter to
Wednesday next week, the Irish times notes.

Monsoon Accessorize Ireland Ltd. employs 269 people in 18 stores
selling women's clothing accessories,



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


BANCA MONTE: Italian Prosecutors Widen Insider Trading Probe
------------------------------------------------------------
Elisa Martinuzzi and Sonia Sirletti at Bloomberg News report that
the probe into Banca Monte dei Paschi di Siena SpA widened as
Italian prosecutors opened an investigation into allegations of
insider trading in the Italian lender's shares and carried out
raids in three cities.

The move marks a broadening of the inquiry into how the world's
oldest lender hid losses before seeking a government rescue
bailout, Bloomberg says.  Bloomberg notes that people with
knowledge of the situation said last month that former Monte
Paschi managers are already being probed over allegations of
obstructing regulators, market manipulation and false accounting
related to the acquisition of Banca Antonveneta SpA.

According to Bloomberg, a statement from the Siena prosecutor
said that addresses in Turin, Milan and Lecce linked to two
current board members were on Tuesday searched by the finance
police.  The board members themselves aren't under scrutiny,
Bloomberg states.  The finance police also seized a further EUR6
million (US$7.8 million) of assets from former managers as part
of their continuing fraud probe, Bloomberg relates.

Chief Executive Officer Fabrizio Viola and Chairman Alessandro
Profumo, appointed last year to turn around the company, last
week received an additional EUR4.1 billion in a taxpayer bailout
after failing to meet regulators' minimum capital requirements,
Bloomberg recounts.

The lender said on Feb. 6 it will take a EUR730 million hit to
assets after reviewing structured deals from 2008 and 2009 that
hid losses on earlier derivatives, Bloomberg discloses.

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.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on Feb. 04,
2013, Standard & Poor's Ratings Services said that it lowered its
long-term counterparty credit rating on Italy-based Banca Monte
dei Paschi di Siena SpA (MPS) to 'BB' from 'BB+'. S&P also
lowered its rating on MPS' Lower Tier 2 subordinated notes to
'CCC+' from 'B-'.  These ratings remain on CreditWatch,
where S&P originally placed them with negative implications on
Dec. 5, 2012.  S&P lowered the ratings on MPS' junior
subordinated debt to 'CCC' from 'CCC+' and on its preferred stock
to 'CCC-' from 'CCC'.  S&P also placed these ratings on
CreditWatch with negative implications.  S&P affirmed its 'B'
short-term counterparty credit rating on the bank.  The downgrade
follows MPS' recent announcement related to the investigation of
potential losses on three structured transactions.



===========
L A T V I A
===========


OMINASIS LATVIA: Jurmala Court Declares Firm Insolvent
------------------------------------------------------
The Baltic Course reports that the Jurmala Court ruled March 1
that Kemeri Snatorium investor Ominasis Latvia is insolvent.  The
court's verdict cannot be appealed, and full court ruling will be
released on March 4, as Jurmala Court informed LETA.

The report says Arhiidea submitted the insolvency claim against
Ominasis Latvia.  Arhiidea had also claimed that Ominasis be
ruled insolvent in the summer of 2011, but then the petition was
turned down by courts.

Also, Riga Regional Court ruled last August that Ominasis owed
Arhiidea more than LVL473,000, and ordered Ominasis to return
Arhiidea a total of LVL341,357.

The Baltic Course, citing "Firmas.lv" data, discloses that
Ominasis Latvia belongs to Santlat, which in turn belongs to
Saudi Arabia resident Omar Saleh Al Hamdy.


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


INTELSAT SA: Incurs US$145 Million Net Loss in 2012
---------------------------------------------------
Intelsat S.A. filed with the U.S. Securities and Exchange
Commission its annual report on Form 10-K disclosing a net loss
of US$145 million on US$2.61 billion of revenue for the year
ended Dec. 31, 2012, as compared with a net loss of US$433.99
million on US$2.58 billion of revenue during the prior year.  The
Company incurred a net loss of US$507.76 million on US$2.54
billion of revenue in 2010.

The Company incurred a net loss of US$2.70 million on
US$672.36 million of revenue for the three months ended Dec. 31,
2012, as compared with a net loss of US$1.64 million on US$652.91
million of revenue for the same period during the prior year.

The Company's balance sheet at Dec. 31, 2012, showed US$17.30
billion in total assets, US$18.53 billion in total liabilities
and a US$1.27 billion total Intelsat S.A. stockholders' deficit
and US$45.67 million in noncontrolling interest.

Intelsat CEO Dave McGlade said, "In 2012, we achieved steady
revenue and Adjusted EBITDA performance while accomplishing a
number of important milestones that improve our growth profile.
We launched and placed into service five new satellites, with
capacity that refreshed our premier video neighbourhoods and
established the first global broadband mobility infrastructure.
We also announced our next generation satellite platform,
Intelsat EpicNG, which is based on spot-beam, high-throughput
technology that enables increased bandwidth quantity and
efficiency to support future customer growth and access to
expanded markets.  We positioned Intelsat for further
diversification of our government business when selected as a
supplier under the Custom SatCom Solutions contract.

"While the failure of the launch of Intelsat 27 early this month
was deeply disappointing, we are already reconfiguring our
satellite fleet to accommodate customer requirements, including
on our global broadband mobility infrastructure, a demonstration
of the resilience and flexibility of our global satellite
network."

We also plan to order a replacement satellite with a payload that
addresses the specific needs of our media customers in the
Americas.  We enter 2013 with $10.7 billion in contract backlog
and the resources to meet expanding demand for broadband
connectivity, global media distribution solutions, and
innovative, end-to-end government services."

A copy of the Form 10-K is available for free at:

                        http://is.gd/adGu9S

                          About Intelsat

Luxembourg-based Intelsat is the leading provider of satellite
services worldwide. For over 45 years, Intelsat has been
delivering information and entertainment for many of the world's
leading media and network companies, multinational corporations,
Internet Service Providers and governmental agencies.  Intelsat's
satellite, teleport and fiber infrastructure is unmatched in the
industry, setting the standard for transmissions of video, data
and voice services.  From the globalization of content and the
proliferation of HD, to the expansion of cellular networks and
broadband access, with Intelsat, advanced communications anywhere
in the world are closer, by far.


KERNEL HOLDING: Fitch Affirms 'B' LT Issuer Default Ratings
-----------------------------------------------------------
Fitch Ratings has affirmed Luxembourg-based Kernel Holding S.A.'s
Long-term foreign and local currency Issuer Default Ratings
(IDRs) at 'B' and 'B+', respectively. Reflecting the location of
most of Kernel's operations in Ukraine, Kernel's foreign currency
IDR is constrained by Ukraine's Country Ceiling of 'B'. Fitch has
also affirmed Kernel's National Long-term rating of 'AA+'(ukr).
The Outlooks for the Long-term IDRs and National Long-term rating
are Stable.

Kernel's ratings continue to reflect its position as the largest
processor and exporter of bulk sunflower oil in Ukraine and a top
four grain exporter and farming operator. Free cash flow (FCF)
should shift to positive territory from FY13. Fitch expects
Ukraine to continue to enjoy a favorable position in
international trade of agricultural commodities, aided by scope
for increasing efficiency of production and demand growth. These
positives are contrasted by a decline in profit margin and cash
absorption from working capital, capex and possibly M&A activity,
which could push FFO adjusted net leverage above 2.5x but below
the threshold of 3.0x considered consistent with the current
ratings.

KEY RATING DRIVERS

Accelerated Growth
Kernel's strong revenue growth in the financial year to June 2012
(FY12) has continued in H113 (ended December 2012), helped by
increased production capacity to meet long-term demand for edible
oils, and steady soft commodity prices. EBITDA continued to
record mid-single digit growth in FY12 and H113. Its EBITDA
margin has come under pressure (1H13: 10.7%; 1H12: 15.1%) due to
a drop of profitability in the core bulk oil and grain trading
businesses and a few integration issues affecting profitability
in its farming division. While management does not expect profit
margins to recover in the near term for grain trading and bulk
oil, consolidated EBITDA margin should begin to improve gradually
from FY14 and stabilize closer to 12% as Kernel's farming
operations recover.

Diversification and Integration Benefits
Kernel benefits from its presence across the agriculture value
chain. Recent expansion reflect Kernel's desire to achieve
greater scale and critical mass in key segments, such as farming
and infrastructure, as well as diversification in terms of
procurement and processing capacity following its investments in
Russia (Russian Oils in August 2011 and joint venture with
Glencore announced in September 2012). Contrasting these
benefits, Kernel's latest acquisitions entail some integration or
turnaround risks.

Weak Cash Flows

Kernel's grain trading and oil processing businesses are
characterized by significant working capital swings and suffered
from a large absorption of working capital averaging USD200m in
FY11 and FY12. Furthermore, the new businesses of farming will
also absorb substantial investments in working capital.
Additionally, Fitch expects expansionary capex to continue at a
sustained pace and to restrain annual FCF to a mildly positive
value over FY13-FY14. Net lease adjusted FFO-based leverage
increased substantially to 2.4x in FY12 (1.4x in FY11) although
it is expected to remain well below 3.0x even incorporating any
headroom for under-performance in EBITDA, working capital
absorption or larger than anticipated capex.

Regulation Risk Remains

Kernel remains exposed to changing rules in terms of grain
trading in Ukraine and Russia. The possibility of a weak
harvesting season increases the risk of the imposition of export
restrictions by the government, to maintain low domestic prices.
This could affect the profits of Kernel's grain (export) segment
which accounted for 7.4% of the group's EBITDA for the 12-month
period to December 2012.

Open Positions in Grain Trading

In FY12 Kernel's grain trading, similarly to other industry
players, did not make any meaningful profits as management took a
trading position in anticipation of a potential early lift of
export restrictions from Ukraine. Fitch understands that Kernel
maintains adequate risk management policies relative to other
domestic traders; however this is unlikely to help insulate it
from the high supply and price volatility that affects all
traders in Ukraine.

RATINGS SENSITIVITIES

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

- A severe shock from commodity prices or export restrictions
   leading to funds from operations (FFO) net lease adjusted
   leverage above 3.0x on a continuing basis

- Shortage of liquidity with respect to the group's projected
   peak requirements of working capital

- Negative free cash flow (FCF) margin of 5% for two consecutive
   periods

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

- Maintenance of an integrated business profile and conservative
   debt/equity funding structure leading to FFO net lease
   adjusted leverage below 1.0x on a continuing basis

- Positive FCF on a continuing basis (at least two years) and
   maintenance of a conservative acquisition policy.

An upgrade of the foreign currency IDR would be possible only if
the Country Ceiling for Ukraine was upgraded (currently 'B').



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


HARBOURMASTER CLO: Fitch Affirms 'B-' Ratings on 4 Note Classes
---------------------------------------------------------------
Fitch Ratings has affirmed Harbourmaster CLO 5 B.V.'s notes, as
follows:

-- Class A1 (XS0223502005): affirmed at 'AAAsf'; Outlook Stable
-- Class A2E (XS0223490235): affirmed at 'Asf'; Outlook revised
    to Stable from Negative
-- Class A2F (XS0223502856): affirmed at 'Asf'; Outlook revised
    to Stable from Negative
-- Class A3 (XS0223503078): affirmed at 'BBBsf'; Outlook revised
    to Stable from Negative
-- Class A4E (XS0223503151): affirmed at 'BBsf'; Outlook
    Negative
-- Class A4F (XS0223503581): affirmed at 'BBsf'; Outlook
    Negative
-- Class B1E (XS0223503664): affirmed at 'B-sf'; Outlook
    Negative
-- Class B1F (XS0223503748): affirmed at 'B-sf'; Outlook
    Negative
-- Class B2E (XS0223503821): affirmed at 'B-sf'; Outlook
    Negative
-- Class B2F (XS0223504043): affirmed at 'B-sf'; Outlook
    Negative
-- Class S1 Combo (XS0223504472): affirmed at 'Bsf'; Outlook
    revised to Stable from Negative

KEY RATING DRIVERS

The affirmation of all rated notes reflects the transaction's
stable performance since the last surveillance review in March
2012 and the level of credit enhancement commensurate with the
notes' current ratings. Class S1 principal only (PO) combination
notes were affirmed in line with the affirmation of its rated
class B2F component notes.

The revised Stable Outlook on the A2 and A3 notes reflects the
increased credit enhancement due to the transaction's
deleveraging in conjunction with the change in the portfolio's
maturity profile, such that maturities over the next two years
have been reduced. The Outlook of the combination S1 notes has
been revised to Stable from Negative, as the agency expects the
EUR164,990 rated balance of the notes to be paid in full in the
next payment date.

The Negative Outlooks on the class A4, B1 and B2 mezzanine and
junior notes reflect their vulnerability to a clustering of
defaults and negative rating migration in the European leveraged
loan market due to the approaching refinancing wall.

Credit enhancement has increased for all notes as the transaction
has been deleveraging since the end of the reinvestment period in
September 2010. Since the last review the class A1 notes have
amortized to 45.2% from 60.4% of their original balance. The two-
year period during which reinvestment of unscheduled principal
proceeds was allowed, expired in September 2012. The portfolio
manager is thus unable to reinvest any principal proceeds. Fitch
therefore expects the transaction to continue deleveraging.

Fitch notes that several assets in the portfolio have extended
their maturity since the last review. This has resulted to an
increase in weighted average life of the portfolio to 3.8 years
from 3.7 years since the last review. The amend and extend
activity is also reflected in the increase of the portfolio's
weighted average spread to 3.35% from 2.96% as of January 2012.
As of the January 2013 investor report the Fitch weighted average
rating factor has improved to 31.2 from 32.8 as of the last
review, however it still fails the threshold of 30. Assets rated
'CCC' or below account for 11.1% of the portfolio, down from
14.7% as of the last review. Additionally, the portfolio includes
two defaulted issuers, which account for EUR14.4m of the
principal balance (3% of outstanding portfolio balance), compared
to EUR9.5m of defaults at the last review.

Despite the significant level of 'CCC' assets none of the over-
collateralization (OC) tests have failed since August 2010. This
is largely because the OC tests, other than the class A2 OC test,
mark all 'CCC' assets at par. Since the last review, cushions
have increased for class A1 to A4 OC tests, while they have
slightly decreased for class B1 and B2 OC tests.

RATING SENSITIVITIES

Fitch ran additional sensitivities stresses on the transaction to
outline the impact on the notes' ratings if the key risk drivers
- default rates and recovery rates- were stressed. Lowering the
rating of all assets in the portfolio by one notch (i.e.
increasing the default rate) would likely result in a downgrade
of one notch for the A2 and A3 notes and two notches for the A4,
B1 and B2 notes. Applying a recovery rate haircut of 25% to all
assets would likely lead to the same results as when increasing
the default rate. In both sensitivity analyses, the senior class
A1 notes can withstand the 'AAAsf' rating stress scenario.

Harbourmaster CLO 5 B.V. is a securitization of senior secured
and unsecured loans. The issuer is a limited liability company
incorporated under the laws of the Netherlands. At closing, the
proceeds of the issued notes were used to purchase a target
portfolio of EUR750 million. The portfolio is actively managed by
Harbourmaster Capital Limited.



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


CENTRAL EUROPEAN: Shareholder Balks at Treatment of Tariko Claim
----------------------------------------------------------------
Shareholder Mark Kaufman sent a letter to the members of the
Board of Directors of Central European Distribution Corporation
to express his disagreement regarding the separate treatment of
the US$50 million credit facility extended by Mr. Roustam Tariko
to the Company.

Mr. Kaufman does not believe that it is appropriate to treat
Mr. Tariko's claims under this credit facility more favourably
than the claims of other unsecured creditors, as the grant of
collateral to secure the obligations to Mr. Tariko under the
credit facility likely could be avoided as a preferential
transfer if CEDC were to file for Chapter 11 bankruptcy
protection.

"We will not support any restructuring of CEDC that would treat
Mr. Tariko's claims more favourably than the claims of other
unsecured creditors, and we doubt that any constituency other
than Mr. Tariko would be willing to move forward on this basis,"
Mr. Kaufman wrote.

"Further, I wish to inform you that I received a copy of a
letter, dated March 1, 2013, addressed by Mr. M. Khabarov, CEO of
A1 Investments (Alfa Group), to the ad hoc Committee of 2016
Bondholders c/o Mr. Charles Noel-Johnson of Moelis & Co.  In this
letter, A1 expresses its interest to put together a consortium of
investors, including Mr. Tariko, myself and other undisclosed
interested parties, "with up to USD$250mln of cash to invest" to
develop an alternative proposal for CEDC's successful
restructuring," Mr. Kaufman related.

"Given the reputation and track record of A1 in Russia, I intend
to consider with the utmost care A1's invitation to participate
in such consortium."

Mr. Kaufman and W & L Enterprises Ltd. together beneficially own
7,417,549 shares of the Company's common stock, representing 9.4%
of the Company's common shares, as reported by the TCR on Jan.
30, 2013.

A copy of the letter is available for free at:

                        http://is.gd/Rf7oZB

                            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 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.

                             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 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.


CENTRAL EUROPEAN: Roust Trading Proposes US$172MM in Investment
---------------------------------------------------------------
Roust Trading Ltd. and certain beneficial owners (holding an
aggregate of approximately 30% in outstanding principal amount)
(the "Steering Committee") of the US$380 million 9.125% senior
secured notes and EUR430 million 8.875% senior secured notes,
each due 2016, issued by CEDC Finance Corporation International,
Inc., entered into a joint summary term sheet relating to a
proposed financial restructuring of CEDC and certain of its
affiliates.

Roust Trading has delivered the Term Sheet to CEDC as a viable
alternative to the transactions contemplated by the offering
memorandum, consent solicitation and disclosure statement filed
by CEDC with the SEC on Feb. 25, 2013.  The Term Sheet sets forth
the material terms of a restructuring of CEDC's capital
structure, including the following terms:

   * Roust Trading would provide a new US$172 million cash
     investment, the proceeds of which would be used by CEDC
     CEDC FinCo to make available a reverse Dutch auction
     opportunity for the 2016 Notes.  Any New Cash not used to
     purchase 2016 Notes in the Dutch Auction would be added to
     the consideration for the 2016 Notes which do not
     participate in the Dutch Auction on a pro rata basis.

   * All remaining 2016 Notes not accepted for payment in the
     Dutch Auction would be extinguished in return for (i) new
     senior secured notes due 2018 with an aggregate principal
     amount equal to US$450 million plus the interest accrued but
     unpaid on the Remaining 2016 Notes in respect of the period
     from March 16, 2013, to the earlier of June 1, 2013, and the
     date preceding the date of issuance of the New Senior Notes,
    (ii) US$200 million convertible junior secured notes due 2018
     and (iii) any remaining portion of the New Cash not paid in
     the Dutch Auction.

   * Roust Trading would receive, in respect of the New Cash and
     the extinguishment of the US$50 million credit facility
     established pursuant to that certain binding Term Sheet
     entered into between Roust Trading and the Issuer, dated
     Dec. 28, 2012, at least 85% of the equity of the reorganized
     Company.

   * Holders of CEDC's 3% Convertible Senior Notes due 2013,
     holders of other CEDC unsecured debt and existing CEDC
     stockholders would receive in the aggregate no more than 15%
     of the equity of the reorganized Company.

   * The New Senior Notes will be issued by CEDC FinCo, have a
     maturity date of April 30, 2018, and bear cash interest of
     8% per annum, increasing to 9% in year two, and 10% in year
     three and thereafter.

   * The Convertible PIK Toggle Notes will be issued by CEDC
     FinCo, have a maturity date of April 30, 2018, and bear
     interest of 10% per annum, and be convertible after 18
     months into 20% of CEDC's equity, increasing to 25% if
     converted in 2016, 30% if converted in 2017 and then 35% if
     converted in 2018 or thereafter (in each case based on $200
     million principal amount and PIK interest accrued on the
     Convertible PIK Toggle Notes).

   * The New Senior Notes and the Convertible PIK Toggle Notes
     will be issued by CEDC FinCo and guaranteed by CEDC and
     certain of CEDC's subsidiaries.  To the extent legally
     permissible and permitted by existing debt obligations, the
     New Senior Notes and Convertible PIK Toggle Notes will be
     secured against all assets of CEDC and its subsidiaries.

The Steering Committee has agreed to work exclusively with Roust
Trading through March 10, 2013, to prepare the documentation
necessary to implement the Proposed Restructuring.

Roust Trading and Roustam Tariko beneficially own 15,920,411
shares of common stock of CEDC representing 19.5% of the shares
outstanding.

A copy of the Joint Summary Term Sheet is available at:

                        http://is.gd/GlRqKV

A copy of the regulatory filing is available at:

                        http://is.gd/n74d2d

                            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 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.

                             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 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.



=============
R O M A N I A
=============


* ORADEA: Fitch Withdraws 'B+/B' Currency Ratings
-------------------------------------------------
Fitch Ratings has withdrawn the Metropolitan Area of Oradea's
(OMA) 'B+' Long-term foreign and local currency ratings with
Positive Outlooks and 'B' Short-term foreign currency rating.

Rating Rationale

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


* ROMANIA: 23,665 Firms Plunge to Insolvency in 2012
----------------------------------------------------
ACTMedia reports that a Coface analysis conducted based on
preliminary data available in early January 2013 at the
Insolvency Proceedings Journal (BPI) revealed that as many as
23,665 companies collapsed into insolvency in 2012, 10% more
compared to 2011 when the number of new insolvency files was
21,499.  Most of the businesses hit by insolvency were in the
retail trade sector, the report says.



===========
R U S S I A
===========


EVROFINANCE-MOSNARBANK: Moody's Affirms Ba3 Deposit Ratings
-----------------------------------------------------------
Moody's Investors Service affirmed the following ratings of
Evrofinance-Mosnarbank: Ba3 long-term local- and foreign-currency
deposit ratings, Not Prime short-term local- and foreign-currency
deposit ratings, and standalone E+ bank financial strength rating
(BFSR) -- equivalent to a baseline credit assessment of b1. The
long-term ratings carry a negative outlook, while the standalone
BFSR carries a stable outlook.

Moody's assessment is primarily based on Evrofinance-Mosnarbank's
unaudited financial statements at end-September 2012 prepared
under IFRS, its unaudited financial statements for full year 2012
prepared under Russian Accounting Standards, and public
information.

Ratings Rationale:

According to Moody's, the affirmation of Evrofinance-Mosnarbank's
long-term ratings reflects the fact that the process of creating
the Russian-Venezuelan bank on the basis of Evrofinance-
Mosnarbank is not yet finalized. Evrofinance-Mosnarbank has
stated that the key documents stipulating the activity of the new
bank (i.e., an interstate agreement to create a development bank,
including the bank's charter) are still pending approval by the
respective parliaments. On a positive note, despite the delay,
Evrofinance-Mosnarbank continues to serve some large transactions
between Russia and Venezuela which positively affect the bank's
profitability.

The negative outlook on Evrofinance-Mosnarbank's long-term
ratings continues to reflect the risks that the creation of the
joint bank might be derailed or significantly delayed, which
could put adverse pressure on the bank's supported ratings -- as
those ratings currently benefit from one notch of support from
the Russian government.

Supported Ratings

Moody's currently incorporates a low probability of systemic
support from Russia for Evrofinance-Mosnarbank's Ba3 long-term
ratings, given (1) the bank's current majority ownership by two
state-controlled banks (Bank VTB and Gazprombank); (2) the
anticipated 50% direct ownership by Russia (the rating agency
expects that Russia will purchase the stakes owned by Bank VTB
and Gazprombank); and (3) its future status as an interstate
development bank. Russian-Venezuelan relationships appear to be
important for Russia both economically (large trade and joint oil
projects) and politically.

Evrofinance-Mosnarbank is expected to be 50/50 owned by the
Russian and Venezuelan governments, but Russia will have greater
control in the joint venture's decision-making process. At the
same time, the rating agency is unable to incorporate a higher
probability of support due to the significant uncertainty
associated with this joint venture. As a result, Evrofinance-
Mosnarbank's long-term Ba3 ratings incorporate: (1) its BCA of
b1; and (2) Moody's assessment of a low probability of systemic
support.

Stand Alone Credit Strength

According to Moody's, the affirmation of Evrofinance-Mosnarbank's
standalone BFSR of E+ reflects: (1) a narrow franchise (leading
to high concentration levels on both sides of the balance sheet)
and its exposure to potential risks associated with interstate
relationships between Russia and Venezuela; (2) potential
corporate governance risks; and (3) the bank's weak financial
performance.

At the same time, Evrofinance-Mosnarbank's standalone BFSR
reflects (1) the bank's healthy capitalization; (2) an adequate
liquidity profile; and (3) the adequate quality of its loan book.

What Could Change The Ratings Up/Down

Moody's notes that any failure of the two national parliaments to
approve the interstate agreement, and/or other impediments to
creating a Russian-Venezuelan banking joint venture would exert
negative pressure on Evrofinance-Mosnarbank's long-term ratings.

Evrofinance-Mosnarbank's deposit ratings could be downgraded and
its BCA could be lowered as a result of (1) a possible increase
in its risk profile under the new status of the bank; or (2)
constraints in its ability to generate earnings, as profitability
would become a primary consideration if the planned banking joint
venture fails to materialize.

Moody's does not expect any upward pressure to be exerted on
Evrofinance-Mosnarbank's standalone BFSR in the short to medium
term.

Domiciled in Moscow, Russia, Evrofinance-Mosnarbank reported --
as at September 30, 2012 -- total IFRS (unaudited) assets of
US$3.5 billion and total equity of US$438 million. The bank's net
income amounted to US$15 million as at September 30, 2012.

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


FIRST REPUBLIC: Moody's Cuts Long-term National Ratings to Ba2.ru
-----------------------------------------------------------------
Moody's Interfax Rating Agency downgraded First Republic Bank
JSC's long-term national scale rating to Ba2.ru from Baa3.ru.

Moody's rating action on First Republic Bank is driven by the
bank's fundamental weaknesses -- ongoing weak profitability, low
core capital adequacy and very high borrower concentrations -- as
reflected in its financial metrics.

Ratings Rationale:

The rating downgrade reflects a deterioration in First Republic
Bank's credit profile, demonstrated by (1) ongoing weak
profitability -- the bank's revenues hardly covered its operating
expenses and loan loss charges for the first nine months of 2012,
according to its regulatory reports; (2) low core capital
adequacy, with a Tier 1 ratio of 7.7% as of year-end 2012; and
(3) very high and increasing borrower concentrations, as its top
20 credit exposures accounted for over 500% of the bank's Tier 1
capital as of year-end 2012, up from 430% at end --H1 2012.

The rating agency also notes the risks associated with First
Republic Bank's rapid loan growth, which amounted to 54% in 2012.
Rapid lending growth may also undermine the bank's asset quality
and lead to an increase in non-performing loans from the
currently moderate 5.5% of the total loans.

What Could Move The Ratings Up/Down

A positive rating action is possible if First Republic Bank
improves earnings generation and operational efficiency,
materially reduces its borrower concentration, and demonstrates a
much stronger capitalization.

First Republic Bank's NSR may be downgraded if its capitalization
and profitability demonstrate further material weakening from the
current levels. Also, any substantial deterioration in the bank's
liquidity profile may have negative rating implications.

Headquartered in Moscow, Russia, First Republic Bank reported
total assets, equity and net income of $914 million, $93.8
million and US$28.06 million, respectively, as of the end-Q3
2012, according to its regulatory reports.

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

Moody's Interfax Rating Agency's National Scale Ratings are
intended as relative measures of creditworthiness among debt
issues and issuers within a country, enabling market participants
to better differentiate relative risks. NSRs differ from Moody's
global scale ratings in that they are not globally comparable
with the full universe of Moody's rated entities, but only with
NSRs for other rated debt issues and issuers within the same
country. NSRs are designated by a ".nn" country modifier
signifying the relevant country, as in ".ru" for Russia.


FIRST REPUBLIC: Moody's Lowers Long-term Deposit Ratings to Caa1
----------------------------------------------------------------
Moody's Investors Service downgraded First Republic Bank JSC's
long-term global local and foreign currency deposit ratings to
Caa1 from B3. Concurrently, First Republic Bank's standalone bank
financial strength rating was downgraded to E, equivalent to a
baseline credit assessment of caa1 (from E+, formerly mapping to
a BCA of b3). The outlook on all long-term ratings is stable.

Moody's rating action on First Republic Bank is driven by the
bank's fundamental weaknesses --ongoing weak profitability, low
core capital adequacy and very high borrower concentrations -- as
reflected in its financial metrics.

Ratings Rationale:

Moody's says that the ratings downgrade reflects a deterioration
in First Republic Bank's credit profile, demonstrated by (1)
ongoing weak profitability -- the bank's revenues hardly covered
its operating expenses and loan loss charges for the first nine
months of 2012, according to its regulatory reports; (2) low core
capital adequacy, with a Tier 1 ratio of 7.7% as of year-end
2012; and (3) very high and increasing borrower concentrations,
as its top 20 credit exposures accounted for over 500% of the
bank's Tier 1 capital as of year-end 2012, up from 430% at end --
H1 2012.

The rating agency also notes the risks associated with First
Republic Bank's rapid loan growth, which amounted to 54% in 2012.
Rapid lending growth may also undermine the bank's asset quality
and lead to an increase in non-performing loans from the
currently moderate 5.5% of the total loans.

The Caa1 deposit ratings do not incorporate any systemic support,
given First Republic Bank's relatively small size and limited
importance to the Russian banking system. Consequently, the
deposit ratings are in line with the caa1 BCA.

What Could Move The Ratings Up/Down

A positive rating action is possible if First Republic Bank
improves earnings generation and operational efficiency,
materially reduces its borrower concentration, and demonstrates a
much stronger capitalization.

First Republic Bank's ratings may be downgraded if its
capitalization and profitability demonstrate further material
weakening from the current levels. Also, any substantial
deterioration in the bank's liquidity profile may have negative
rating implications.

Headquartered in Moscow, Russia, First Republic Bank reported
total assets, equity and net income of US$914 million, US$93.8
million and US$28.06 million, respectively, as of the end-Q3
2012, according to its regulatory reports.

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


NS BANK: Moody's Affirms 'E+' BFSR; Outlook Stable
--------------------------------------------------
Moody's Investors Service affirmed NS Bank's E+ standalone bank
financial strength rating, which is equivalent to a baseline
credit assessment of b3, and its B3 long-term local and foreign-
currency deposit ratings. Concurrently, Moody's changed the
outlook on the bank's BFSR and deposit ratings to stable from
negative.

The rating action reflects the overall stabilization in NS Bank's
credit profile -- i.e., improved revenue generation, a material
reduction in borrower concentration and related party lending, as
well as good liquidity profile.

Ratings Rationale:

The stabilization in NS Bank's credit profile is demonstrated in
the following aspects: (1) improvement in revenue generation and
fairly low loan loss provisions led to a 25% increase in the net
income for 2012, with a Return on Average Assets (RoAA) of 1.66%;
(2) a material reduction in borrower concentration, with the
exposure to the 20 largest borrowers declining to about 340% of
the bank's equity at year-end 2012 from over 500% at end-H1 2012;
(3) a significant decline in related party lending as loans to
related entities decreased to 70% of the Tier 1 capital at year-
end 2011 from 170% at year-end 2010; and (4) good liquidity
profile with liquid assets accounting for around half of the
bank's total assets.

However, NS Bank's ratings remain constrained by its limited
franchise and modest core capital adequacy. Most of the bank's
business is related to the construction industry -- 50% of the
total loans and 25% of the customer funds are attributable to
construction and real estate development companies as of year-end
2011, according to the bank's audited IFRS report. The bank's
core capital adequacy has been relatively stable in the past few
years, albeit at modest levels with Tier 1 ratio of 8.9% at year-
end 2012, according to the bank's regulatory reports for year-end
2012.

The B3 global deposit ratings do not incorporate any systemic
support, given NS Bank's relatively small size and limited
importance to the Russian banking system. Consequently, the
deposit ratings are in line with the b3 BCA.

What Could Move the Ratings Up/Down

NS Bank's ratings have limited upside potential at their current
levels. However, improved capitalization, diversification of the
bank's business from the construction industry and a material
further reduction in borrower concentration and could have
positive rating implications.

NS Bank's ratings may come under negative pressure if its
capitalization weakens substantially. Downward rating pressure
could also result from increased borrower concentration and
higher levels of related-party lending.

Headquartered in Moscow, Russia, NS Bank reported total assets of
US$1.48 billion and equity of US$104 million, according to its
regulatory reports. The bank reported net income of US$16 million
for 2012.


* CITY OF SURGUT: S&P Affirms 'BB+' LT Issuer Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'BB+'
long-term issuer credit rating on Russia's City of Surgut and its
'ruAA+' Russia national scale rating on the city.  The outlook is
stable.

The ratings are constrained by our view of the city's low
budgetary flexibility and predictability, as well as its limited
economic growth prospects and the exposure of its tax base to the
volatile oil industry.  Surgut's high wealth levels, continued
prudent financial management, very low debt burden, and
consistently positive liquidity support the ratings.

Surgut's economic wealth is well above the Russian average
because of oil production in the surrounding region.  However,
S&P expects that over the long term the city's economic growth
will stagnate as mature oil fields gradually deplete, and that
industrial output will increase by only 1%-2% annually.  At the
same time, the city's economy's concentration on the oil industry
exposes its budget revenues to volatility.  A single enterprise,
one of Russia's largest oil producers Surgutneftegas (not rated),
employs about 15% of the city's workforce and accounts for more
than 30% of its tax revenues, primarily via personal income tax
(PIT) paid by its employees.

In S&P's view, Surgut's budgetary flexibility and predictability
is also limited by its dependence on the decisions of the federal
government and Khanty-Mansiysk Autonomous Okrug (KMAO) regarding
municipal revenues and spending responsibilities.  Transfers from
higher-tier budgets will likely account for more than 40% of
Surgut's revenues over the next three years, and about 40% will
come from taxes that are not regulated by the city.  In 2013-2015
the city will receive an additional share of PIT that was set by
KMAO and that S&P estimates will provide about 19% of operating
revenues.  Although this proportion is currently favorable for
the city's budget, predictability of tax allocation and ongoing
support beyond the budgeting horizon is limited.

The stable outlook reflects S&P's view that Surgut's management
will counterbalance the continued increase in salary spending and
S&P's expectation of only modest revenue growth by restricting
non-personnel related expenditure in 2013-2015, resulting in
modest operating margins and only minor deficits after capital
accounts of less than 5% of total revenues.  The outlook also
assumes that the city will maintain its cautious approach to
borrowing and positive liquidity.

S&P could take a positive rating action within the next 12 months
if, in line with S&P's upside scenario, Surgut's management's
efforts and documented financial and liquidity policies mitigated
budget revenue volatility and led to a structurally strong
operating performance with operating margins above 5% of
operating revenues and further cash accumulation.

S&P could take a negative rating action if the city's management
moved away from its cautious practices and was unable to control
spending growth, which would result in structural deterioration
of the city's budgetary performance and depletion of its cash
reserves in 2013-2014.  S&P's downside scenario assumes a
persistently negative operating balance, deficits after capital
accounts of more than 5% of total revenues and weakening
liquidity due to short-term debt accumulation.  However, S&P
views a negative rating action in the next 12 months as unlikely.


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


BANCO DE VALENCIA: Fitch Lifts LT Issuer Default Rating From BB-
----------------------------------------------------------------
Fitch Ratings has upgraded Spain-based Banco de Valencia's Long-
term Issuer Default Rating (IDR) to 'BBB' from 'BB-' and Short-
term IDR to 'F2' from 'B' and removed them from Rating Watch
Positive (RWP). The Outlook on the Long-term IDR is Negative. The
rating actions follow the formalization concluded on February 28,
2013, of the acquisition by CaixaBank S.A. of the 98.9% stake in
BdV from Spain's Fund for Orderly Bank Restructuring (FROB). This
follows receipt of all necessary regulatory and legal approvals
and compliance with all conditions stipulated in the sale
agreement.

CaixaBank acquired FROB's stake in BdV for the price of one euro.
Prior to completing the sale, the following conditions had to be
met:

- EUR4.5bn capital injection by the FROB into BdV in the form of
   European Stability Mechanism (ESM) bonds.

- The transfer of EUR1.9 billion in real estate exposures  (net
   of EUR2.9 billion impairment reserves) to the Spanish asset
   management company, Sociedad de Gestion de Activos Procedentes
   de la Restructuracion Bancaria (SAREB), in exchange for state-
   guaranteed SAREB debt issues for the same amount.

- Burden-sharing applied to EUR416m of BdV's subordinated debt
   and preferred stock issues.

- Creation of an asset protection scheme, whereby the FROB
   covers 72.5% of certain unreserved losses on BdV's SME loan
   portfolio and off-balance-sheet exposures over a 10-year
   period.

RATING ACTION RATIONALE AND DRIVERS - IDRS, VR, SUPPORT RATING
AND SUPPORT RATING FLOOR (SRF)

BdV is now a subsidiary of CaixaBank and will be fully
consolidated into the group accounts. Its IDRs have been aligned
with those of CaixaBank because Fitch regards it as a core
subsidiary. According to details provided in the European
Commission's statement published on November 27, 2012, BdV will
cease to exist as an independent entity and will be fully
integrated into CaixaBank.

Fitch currently considers the likelihood of CaixaBank supporting
BdV to be high. This is reflected in the upgrade of BdV's Support
Rating to '2' from '3' and the removal of the RWP on this rating.

Fitch has affirmed and withdrawn BdV's Viability Rating (VR) of
'f' and SRF of 'BB-'. The withdrawals reflect the reorganization
of BdV. Given its integration into CaixaBank, Fitch considers
that BdV can no longer be viewed as a stand-alone entity. Its VR
is therefore no longer considered to be analytically meaningful
and is being withdrawn. The primary source of support for BdV is
considered by Fitch to be CaixaBank, rather than the Kingdom of
Spain. SRFs are not assigned to banks whose primary source of
support is institutional.

RATING SENSITIVITIES - IDRS AND SUPPORT RATING

BdV's IDRs are sensitive to the same factors which might drive a
change in the IDRs of CaixaBank, including a deeper and more
protracted recession in Spain or any unanticipated liquidity
shock. The Negative Outlook for BdV's Long-term IDR reflects that
of CaixaBank and the Negative Outlook on Spain's 'BBB' Long-term
IDR. For further information, see 'Fitch Affirms CaixaBank at BBB
on Civica Merger; Downgrades La Caixa to BBB-', dated Aug. 3,
2013 on www.fitchratings.com.

BdV's Support Rating is sensitive to any change in the level of
importance and integration of the bank within CaixaBank, a
lowering of which is considered to be unlikely, and/or to any
sovereign rating action that could affect the ratings of
CaixaBank.

SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

BdV's subordinated debt and preferred stock have been affirmed at
'C' as they were subject to pre-acquisition burden-sharing, as
established by the Memorandum of Understanding signed in July
2012 and Royal Decree Law 24/2012. Burden-sharing was completed
on February 11, 2013, with holders of the tendered bonds
absorbing losses of between 85%-90% through the distressed
exchange into either contingent convertibles or equity. Following
completion of the burden sharing, Fitch has withdrawn the ratings
of these instruments as they have been extinguished in connection
with the exchange.

The rating actions are:

BdV:
-- Long-term IDR: upgraded to 'BBB' from 'BB-'; removed from
    RWP; Outlook Negative

-- Short-term IDR: upgraded to 'F2' from 'B'; removed from RWP

-- VR: affirmed at 'f'; withdrawn

-- Support Rating: upgraded to '2' from '3'; removed from RWP

-- SRF: affirmed at 'BB-'; withdrawn

-- Subordinated debt: affirmed at 'C'; withdrawn

-- Preferred stock: affirmed at 'C'; withdrawn


IBERIA LINEAS: IAG to Push Ahead with 15% Staff Cutbacks
--------------------------------------------------------
Marietta Cauchi at Dow Jones Newswires reports that International
Consolidated Airlines Group SA on Thursday said it is pushing
ahead with staff cutbacks at Spanish carrier Iberia, as a robust
performance at British Airways only partly cushioned the impact
of high fuel prices and a weak Spanish economy last year.

IAG posted a EUR943 million (US$1.24 billion) net loss for 2012
and said it hopes return to profit this year on the planned
restructuring of the unprofitable Spanish airline, which recorded
a EUR343 million write-off of goodwill and EUR202 million in
restructuring costs last year, Dow Jones discloses.  The steep
loss at IAG, formed through the January 2011 merger of British
Airways and Iberia, compared with a EUR562 million net profit in
2011, Dow Jones notes.

According to Dow Jones, the airline operator recorded an
operating loss of EUR23 million, excluding the exceptional
charges and some small gains, compared with an operating profit
of EUR485 million in 2011.

IAG's losses come amid a continuing crisis in Europe's airline
sector, where national airlines are bearing the brunt of the high
price of jet fuel and lackluster economic activity across much of
the region, Dow Jones discloses.  They face intense competition
from discount carriers such as Ryanair Holdings PLC and easyJet
PLC on their European routes, which they need to maintain to feed
traffic to long-haul destinations, Dow Jones notes.

IAG, Dow Jones says, is trying to similarly reorganize its assets
in Spain, which include Iberia and Vueling Airlines SA, a smaller
budget carrier.  IAG has already reorganized British Airways,
despite strikes by staff between 2009 and 2011, Dow Jones
relates.

According to Dow Jones, IAG Chief Executive Willie Walsh said
talks with the Spanish unions at Iberia are continuing, and if no
agreement is reached by March 12 IAG will implement its
restructuring plan.  The plan would involve the loss of 3,807
jobs as part of a targeted 15% cut in capacity, Dow Jones says.
Ground staff and cabin crews planned three five-day strikes
between Feb. 18 and March 22 over the restructuring plan, Dow
Jones discloses.

Iberia made an operating loss of EUR351 million excluding the
EUR545 million restructuring and impairment charges, Dow Jones
says.

Iberia Lineas Aereas de Espana, S.A., commonly known as Iberia,
is the flag carrier airline of Spain.  Based in Madrid, it
operates an international network of services from its main bases
of Madrid-Barajas Airport and Barcelona El Prat Airport.


IM GRUPO: DBRS Assigns 'B(high)(sf)' Rating to EUR662.5MM Notes
---------------------------------------------------------------
DBRS Ratings Limited has assigned final ratings to the Notes
issued by IM GRUPO BANCO POPULAR EMPRESAS V, FTA ("the Issuer"),
as follows:

-- EUR1,987.5 million Series A Notes: A (sf)
-- EUR662.5 million Series B Notes: B (high) (sf)

The transaction is a cash flow securitization collateralized
primarily by a portfolio of bank loans originated by Banco
Popular Espanol, S.A ("Banco Popular") to self-employed
individuals and small-and medium-sized enterprises ("SMEs") based
in Spain.  As of January 28, 2013, the transaction's provisional
pool included 49,580 loans totaling EUR2,866.37 million.  At
closing, the Originator selected the final portfolio of EUR2,650
million from the above mentioned provisional pool.

The provisional pool exhibits low obligor concentration with the
top obligor and the largest ten obligor groups representing 0.59%
and 3.67% of the outstanding balance, respectively.  The
provisional pool is well diversified across regions.  The top
three regions are Madrid, Catalonia and Andalusia, representing
about 16.4%, 16.3%, and 13.2% of the provisional pool balance,
respectively.  The portfolio is sufficiently diversified across
industries.  The top three industries by NACE industry group are
"Manufacturing" 26.5%), "Wholesale and retail trade; repair of
motor vehicles, motorcycles and personal and household goods"
(24.6%), and "Renting and business activities" (10.3%)  The
exposure to the "Construction" sector is 7.7%.  The exposure is
lower than seen in seasoned transactions and is in line with
other recent transactions DBRS has seen.

These ratings are based upon DBRS's review of the following
analytical considerations:

  * Transaction structure, the form and sufficiency of available
credit enhancement.

      -- At closing, the Series A Notes benefits from a total
         credit enhancement of 35% which DBRS considers to be
         sufficient to support the A (sf) rating.  The Series B
         Notes will benefit from a credit enhancement of 10%
         which DBRS considers to be sufficient to support the B
         (high) (sf) rating.  Credit enhancement is provided by
         subordination and the Reserve Fund.  In addition, the
         Notes also benefit from available excess spread.

      -- The Reserve Fund ("RF") is non-amortizing with a balance
         of EUR265 million, 10% of the aggregate balance of the
         Series A and Series B Notes.  The RF is available to
         cover shortfalls in the senior expenses and interest on
         the Series A Notes, throughout the life of the Notes.
         The RF will only be available as credit support for the
         Notes at the Legal Final Maturity.

   * The ability of the transaction to withstand stressed cash
flow assumptions and repay investors according to the approved
terms.  For this transaction, the rating of the Series A Notes
addresses the timely payment of interest, as defined in the
transaction documents, and the ultimate payment of principal on
each Payment Date during the transaction, and, in any case, at
their Legal Final Maturity on October 22, 2043.  The rating of
the Series B Notes addresses the ultimate payment of interest, as
defined in the transaction documents, and the ultimate payment of
principal on each Payment Date during the transaction, and, in
any case, at their Legal Final Maturity on October 22, 2043.
Interest and principal payments on the Notes will be made
quarterly, generally on the 22nd day of January, April, July and
October with the First Payment Date on April 22, 2013.

  * The transaction parties' financial strength and capabilities
to perform their respective duties, and the quality of
origination, underwriting and servicing practices.

  * Soundness of the legal structure and presence of legal
opinions which address the true sale of the assets to the trust
and the non-consolidation of the special purpose vehicle, as well
as the consistency with the DBRS Legal Criteria for European
Structured Finance Transactions.

DBRS determined key inputs used in its analysis based on
historical performance data provided for the originator and
servicer as well as analysis of the current economic environment.
Further information on DBRS's analysis of this transaction will
be available in a rating report on http://www.dbrs.comor by
contacting us at info@dbrs.com

The principal methodology is Master European Granular Corporate
Securitisations (SME CLOs), which can be found on www.dbrs.com.

The sources of information used for this rating include IM GRUPO
BANCO POPULAR EMPRESAS V, FTA, Intermoney Titulizacion S.G.F.T.,
S.A. and Banco Popular Espanol, S.A. DBRS considers the
information available to it for the purposes of providing this
rating was of satisfactory quality.


ORIZONIA: In Receivership, To Close 950 Agency Offices
--------------------------------------------------------
EuroWeeklyNews reports that Orizonia going into receivership and
is is likely to close 950 travel agency offices that operate
under the brand name Vibo Viajes.

The consumer support group FACUA is trying to help travellers
affected by the receivership, according to EuroWeeklyNews.

The report relates that FACUA recommends that anyone who has
booked a holiday through Vibo Viajes should confirm that their
hotels and airlines will provide the service that has been paid
for with written confirmation.

If the pre-agreement by tour operator Barcel¢ to buy Vibo Viajes
does not go ahead, customers could find themselves having to make
application to the creditors for refunds and compensation, the
report notes.

Orizonia is a Spanish tour giant.


PESCANOVA SA: Failure to Sell Salmon Biz Cues Insolvency Filing
---------------------------------------------------------------
Reuters reports that Spanish fishing firm Pescanova said on
Friday it had filed for insolvency having failed to sell part of
its salmon farming business.

The company, based in the northwestern city of Pontevedra, now
has up to four months to renegotiate its debt with creditors
under Spanish law, the report notes.

According to Reuters, Pescanova, which had debt worth EUR1.52
billion ($1.99 billion) at the end of September last year,
struggled in the last months to make its investments into farmed
crustaceans and fishes profitable.

Its main shareholder - with 14.5% of the equity - is Manuel
Fernandez de Sousa-Faro. He has also been the CEO of the company
for more than 30 years.

Reuters recalls that Spain's stock market regulator earlier
suspended trading in Pescanova's shares after the company failed
to release results before an end of February deadline.

Pescanova said in a statement it had not posted results because
it was waiting to close a deal to sell part of the salmon farming
business and that it would have to restructure its debt if the
deal was unsuccessful, Reuters adds.

Based in Pontevedra, Spain, Pescanova, S.A., engages in fishing
and aquaculture businesses.


* SPAIN: Suffer Worst Drop in Corporate Quarterly Earnings
----------------------------------------------------------
Miles Johnson and Tobias Buck at The Financial Times report that
Spain's largest companies suffered the worst drop in quarterly
earnings since the country's crisis began as new data showed the
Spanish economy was shrinking at a faster rate than expected.

On a day when more than a third of Spain's Ibex 35 index reported
full-year results Bankia, the nationalized lender, reported a net
loss of EUR19.2 billion, the largest in Spanish corporate
history, the FT relates.  Meanwhile, ongoing restructuring woes
at Spanish carrier Iberia saw International Airlines Group swing
to a near EUR1 billion full-year pre-tax loss from a profit the
year before, the FT discloses.

"It has been the worst year for corporate earnings in Spain since
the crisis began," the FT quotes Emmanuel Cau, European equity
strategist at JPMorgan, as saying.  "Earnings have collapsed in
Spain for domestically focused businesses, which reflects a sharp
fall in domestic GDP."

With eight companies still to report, the Ibex 35 index as a
whole reported a net loss of EUR2.7 billion in the fourth
quarter, according to analysis by Mirabaud, the worst since the
crisis began, with banks contributing to the bulk of the losses,
the FT notes.

Analyst expectations for corporate earnings in Spain has
collapsed since the crisis began, with 12 month forecasts for
earnings per share growth down by 42% from their peak five years
ago, the FT says, citing an analysis by JPMorgan.

"Everyone is saying we have seen the worst, and the second half
is going to be better, but there are few signs of this.  We have
heard this before," the FT quotes Ignacio Mendez Terroso, head of
strategy at Mirabaud in Spain.



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


NORD WEST: In Administration, Seeks New Investors
-------------------------------------------------
Motor Boats Monthly reports that Nord West went into
administration.

Staff were said to be shocked by the development, brought on by a
lack of liquidity following the acquisition of the Najad sailboat
brand in 2012, according to Motor Boats Monthly.  The report
relates that the strength of the Swedish Krona has also hurt the
business's export levels.

The administrator brought in is said to be hopeful of finding new
investors, and of keeping both brands within the business.
Current boat production will be maintained, and orders fulfilled,
however the workforce will be downsized, the report notes.

Nord West sales manager, Johan Stubner, is confident that both
Nord West and Najad will survive, the report adds.

Nord West is a Swedish builder firm.


* SWEDEN: Moody's Says New Rules Evolve to Support Covered Bonds
----------------------------------------------------------------
New regulations that the Swedish FSA has recently published
present no radical changes, but are designed to support Swedish
covered bonds as a safe and effective funding instrument, says
Moody's Investors Service in a new Special Comment entitled "
Swedish Covered Bonds: Regulations Evolve to Support Key Role of
Covered Bonds ".

"The new regulations include enhancements such as stress tests on
property values and improved monitoring by the independent
inspector," says Jane Soldera, a Moody's Vice President Senior
Credit Officer and author of the report. "The changes aim to
support the already strong market confidence in Swedish covered
bonds and, in practice, should improve covered bonds' resilience,
if an issuer becomes insolvent," explains Ms. Soldera.

Moody's report highlights four main changes:

(1) An increased emphasis on sensitivity testing for changes in
real property values. In particular, a requirement to test
annually (at least) for property price declines of 5%-30% in 5%
intervals and report results to the FSA;

(2) An option for issuers to re-value mortgage collateral upwards
and downwards, potentially based on indices in the case of
residential property.

(3) Clarification of swap counterparty criteria and more direct
scrutiny by the FSA if counterparty credit quality declines.

(4) The independent inspector's duties are adjusted to increase
his or her focus on pro-actively identifying risk areas. The
inspector must review property re-valuations annually and
consider where the greatest risks of price falls may lie. Where
appropriate, the inspector will also review IT and systems risks.



===========
T U R K E Y
===========


YASAR HOLDING: Moody's Affirms 'B2' CFR; Outlook Negative
---------------------------------------------------------
Moody's Investors Service affirmed the B2 corporate family rating
and the B2-PD probability of default rating whilst the outlook
was changed to negative from stable for Yasar Holding A.S.

Ratings Rationale:

"The change of outlook to negative reflects the challenges Yasar
is facing in its core food and beverage as well as coatings
businesses. Increased competition in the F&B segment from private
label products, industry fragmentation, higher costs associated
with advertisement and product promotions as well as pass-through
of raw material price increases to end customers with a time lag
has left negative marks on operating profitability and cash flow
generation," said Martin Kohlhase, Vice President -- Senior
Analyst and lead analyst for Yasar. He added that "an additional
factor is Yasar's currency mismatch as evidenced by the company's
exposure to foreign currency denominated debt, predominantly the
US dollar, and Turkish lira generated revenues resulting in
volatile earnings and debt protection metrics."

Yasar sells its food products that account for approximately two
thirds of group sales through the Pinar brand. Whilst it has --
according to Euromonitor International -- captured additional
market share and thus solidified its leading position over the
period 2007 to 2012 in the chilled processed food category (2012:
20.4% vs. 2007: 17.5%), its share in the dairy market declined to
8.6% from 9.8% in the same period, relinquishing its previous
number 1 spot for dairy products in Turkey. Nevertheless, despite
the market share gains in one of its activities, the food
processing industry in general has been facing overall rising
consumer inflation and tax increases for petroleum and alcoholic
beverages implemented in 2012, although with no direct impact on
Yasar, made competing for the share of the consumers' wallets
fiercer. Inflation for 2011 was 10.4% and estimated by Moody's
Sovereign Risk Group to be 8.0% for 2012 and 7.8% in 2013.

Rising input costs, inflation in the high single digits and
competition will continue to make it difficult to maintain or
indeed expand operating profitability margins (LTM June 2012 EBIT
margin: 6.7%; FY 2009: 9.4%) and protect operating cash flows
from further deterioration (RCF/net debt: 1.5%; 11.5% over the
same period). Nevertheless, Yasar's strong Pinar brand is
established in the market and well-recognized by Turkish
consumers, which offers a degree of competitive protection as
evidenced by multinational consumer groups struggling to gain
significant market share in the Turkish market. In addition,
Yasar has access to its vast distribution channels, established
logistic network as well as procurement sources that position it
more competitively.

Yasar's market position of its second biggest segment, Coatings,
that accounts for the bulk of the remaining group sales (ca. 22%)
is a strong number 2 in a highly concentrated home paint market
with essentially four companies. Yet, the segment's sales tend to
be very volatile and dependent on consumer sentiment as evidenced
by the double-digit sales decline during the times of the global
financial crisis. Profitability margins are affected by the
impact of foreign currency movements on US dollar denominated raw
material purchases as was the case in 2011 when the Turkish lira
sharply depreciated against the US dollar and resulting in
operating segment losses that have been reversed in the first
half of 2012.

The negative outlook is tied to how quickly the company can stem
its margins erosion and improve its operational performance from
current levels.

What Could Change the Rating Up/Down

If metrics remain weak, i.e. unchanged from the last twelve month
ending in June 2012, Moody's could downgrade the rating. Moody's
recorded an EBIT margin of 6.7%, debt/EBITDA of 4.6x and
EBIT/interest expense of 1.0x. If a reversal becomes visible,
Moody's will assess whether the macroeconomic environment and the
degree of competition are conducive for a trajectory, so that
metrics improve to levels where they more appropriately position
the rating in the B2 category: EBIT margin in excess of 8%,
debt/EBITDA trending towards 4.0x and EBIT/interest cover of
above 2x. An upgrade given the negative outlook is unlikely to
occur.

Established in 1945 and controlled by the Selcuk Yasar family,
Yasar Holding is a leading diversified Turkish consumer products
group with major interests in food and beverage (68% of sales, as
of FY 2011) and coating (22%), where the company has two market
leading brands through Pinar (for F&B) and Dyo (for coatings).
Yasar has 13 F&B production facilities and 155,000 sales points
as well as four production plants and 13,000 sales points in
coatings, spread all over the country.



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


2E2: Outsourced Data Storage to Third-Parties, Onyx CEO Says
------------------------------------------------------------
Graeme Burton at Computing News reports that 2e2 outsourced large
amounts of the data it was managing for clients to third-parties,
raising question marks over the due diligence that companies need
to perform before putting data and applications "in the cloud".

Despite the bankruptcy of 2e2 -- for reasons unrelated to its
datacenter business -- the datacenter construction industry is
booming at the moment, with operators struggling to keep up with
demand, Computing News notes. However, new datacenter
construction requires high, upfront capital expenditure, which is
one reason why datacenter operators are routinely "outsourcing"
storage of client data to rival companies in order to satisfy
customer demands, Computing News discloses.

But Neil Stephenson, CEO of Onyx, one of the growing datacenter
companies that 2e2 outsourced some of its data storage needs to,
believes that most customers are already aware that such
arrangements are widespread in the industry, Computing News
relates.

"Nobody buys into a cloud infrastructure -- or they shouldn't buy
a cloud infrastructure -- and come back later and say 'I did not
realize that it was shared'," Computing News quotes Mr.
Stephenson as saying.

Mr. Stephenson, as cited by Computing News, said that companies
that want to keep a tight rein on precisely where their data is
stored ought to use their own equipment in their outsourced
datacenter, he added.

"The core issue is, have you got your own kit or do you share
kit? And the whole idea of this [cloud computing] model is that
you share kit. That's how you get your economies [of scale],"
Computing News quotes Mr. Stephenson as saying.

One of the reasons why the 2e2 crash "spooked" the market, he
continued, is that it happened suddenly, with staff sacked by the
thousand one week, and abrupt demands for payments to keep
datacenters open the next -- with no possibility of migrating
possibly mission-critical data in the short space of time before
2e2's administrator's threatened to shut-up shop, Computing News
notes.

According to Computing News, while 2e2's datacenters were
acquired at the eleventh hour by Daisy Group, the company had
also used the services of Onyx for many of its clients as 2e2 was
unable to expand its datacenter business any other way.

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
force.


AXMINSTER CARPETS: Calls Administrators, Cuts Jobs
--------------------------------------------------
Bridport News reports that Axminster Carpets has gone into
administration with hundreds of workers to lose their jobs and
another 100 hang in the balance.

The company said that it has been forced to make the move as the
carpet industry continues to suffer, according to Bridport News.
The report relates that the administrators said it has 'no
alternative' other than to make 300 employees redundant at the
Axminster and Buckfast sites.

The report notes that only 100 workers will be kept on by the
administrators Duff & Phelps as they continue to try and find a
buyer for the business.

The report discloses that the two factory outlet stores have
remained open for business and the company hopes to fulfill
existing customer orders.

Benjamin Wiles, Geoffrey Bouchier and David Whitehouse, all of
Duff & Phelps were appointed joint administrators.

"Trading has been difficult and although it saddens the board to
make the decision to enter administration it could not be
avoided. . . .  The management have been working with key
suppliers, creditors and lenders to resolve the company's
financial difficulties and whilst the last few weeks have been
stressful, the company managed to pay the wages. . . . We are now
committed to working with the administrators to asses all viable
options for the future of the business and achieve the best
possible outcome for all concerned and most importantly the
staff," the report quoted company Director Joshua Dutfield as
saying.


BAKER AND BOND: High Court Enters Liquidation Order
---------------------------------------------------
Baker and Bond Ltd and Baker and Bond (UK) Ltd, two companies
that offered debt collection services, were ordered into
liquidation in the High Court on Jan. 29, 2013, on grounds of
public interest. This follows an investigation by Company
Investigations (CI) of The Insolvency Service.

The investigation showed Baker and Bond Limited and Baker and
Bond (UK) Limited, which were based in Wakefield and linked
through a common director and addresses, charged customers an up
front fee of up to GBP595 to provide debt collection services and
also charged the debtor from whom they were collecting,
additional collection fees.

The investigation also established that the companies traded as
one, utilising the same premises, staff, customer database, bank
account, VAT registration and the names of both companies were
used interchangeably on documentation and correspondence sent to
customers.

The investigation found that BBL traded between August 2011 and
November 2011 and that BBUK traded between October 2011 and
November 2011.

The investigation also established that BBL and/or BBUK failed to
provide contracted services and responded with abuse and/or
threats to customers, failed to maintain, preserve and/or deliver
up adequate company records and continued to collect debts on
behalf of customers despite it 'disappearing' and/or ceasing to
trade in November 2011.

The investigation found that during their trading period,
receipts in to the known bank accounts totalled over GBP145,000.
Investigators were unable to trace the recorded director or the
accounting records of the companies, and, due to the absence of
proper accounting records, it was not possible to distinguish
between the respective incomes of the companies. Nor was it
possible to establish whether those monies paid into the bank
accounts comprised up-front fees paid by clients or debts
recovered on behalf of clients.

The High Court found that it was in the public interest that BBL
and BBUK be wound up.

Alex Deane, an Investigations Supervisor with The Insolvency
Service said: "These companies engaged in unacceptable business
practices and sought to dupe both their customers and those
customers' clients. Despite operating in the financial sector,
they showed a complete disregard towards their duty to keep
proper books and records. The Insolvency Service will take action
to remove such companies from the business environment".


DREAMS: Sun European Nears Pre-Pack Administration Deal
-------------------------------------------------------
Andrea Felsted at The Financial Times reports that private equity
group Sun European Partners is poised to acquire Dreams that was
put up for sale earlier this year.

According to the FT, people familiar with the situation said that
a deal with Sun European, which specializes in acquiring
struggling retailers, is likely to happen by way of a so-called
pre-pack administration, involving the closure of about 90 of
Dreams' 260 stores and the loss of hundreds of jobs.

The management of Dreams had been keen to avoid an
administration, but Ernst & Young, which has managed the sale
process, was expected to be appointed as administrator yesterday,
the FT notes.

Sun European is thought to have bid about GBP35 million for
Dreams, seeing off competition from Mike Clare, the founder of
Dreams, who was working with Apollo Management, the buyout firm.
Although he proposed a different model, he would also have closed
some of Dreams' stores, the FT discloses.

The deal ends a long-running stand-off over the future of Dreams
between its private equity owner Exponent and Dreams' lending
banks, led by state-backed Royal Bank of Scotland, the FT says.

The FT relates that Sir Philip Green, the retail billionaire and
owner of BHS, looked at Dreams earlier in the process, but did
not submit a bid by last Friday's deadline for second round
offers.  RBS's private equity arm also submitted a first-round
bid, the FT states.  However, Sun European and Mr. Clare were the
most aggressive bidders in later rounds, the FT notes.

Dreams is Britain's biggest beds retailer.


GLOBAL SHIP: CMA CGM Owns 46.6% of Class A Shares at Feb. 11
------------------------------------------------------------
In an amended Schedule 13D filing with the U.S. Securities and
Exchange Commission, CMA CGM S.A. and Jacques R. Saade disclosed
that, as of Feb. 11, 2013, they beneficially own 23,610,550
shares of Class A common shares of Global Ship Lease, Inc.,
representing 46.6% of the shares outstanding.  A copy of the
filing is available for free at http://is.gd/R7aJ9I

                     About Global Ship Lease

London, England-based Global Ship Lease (NYSE: GSL, GSL.U and
GSL.WS) -- http://www.globalshiplease.com/-- is a containership
charter owner.  Incorporated in the Marshall Islands, Global Ship
Lease commenced operations in December 2007 with a business of
owning and chartering out containerships under long-term, fixed
rate charters to world class container liner companies.

Global Ship Lease owns 17 vessels with a total capacity of 66,297
TEU with a weighted average age at June 30, 2010, of 6.3 years.
All of the current vessels are fixed on long-term charters to CMA
CGM with an average remaining term of 8.6 years.  The Company has
contracts in place to purchase two 4,250 TEU newbuildings from
German interests for approximately US$77 million each that are
scheduled to be delivered in the fourth quarter of 2010.  The
Company also has agreements to charter out these newbuildings to
Zim Integrated Shipping Services Limited for seven or eight years
at charterer's option.

As reported in the Dec. 1, 2012, edition of the TCR, Global Ship
Lease disclosed that it had entered into an agreement with its
lenders to waive until Nov. 30, 2012, the requirement under its
credit facility to conduct loan-to-value tests.  The credit
facility requires that loan-to-value, which is the ratio of
outstanding borrowings under the credit facility to the aggregate
charter-free market value of the secured vessels, cannot exceed
75%.

The Company's balance sheet at Sept. 30, 2012, showed US$907.84
million in total assets, US$549.46 million in total liabilities
and US$358.38 million in total stockholders' equity.


GLOBAL SHIP: Amends Registration Rights Agreement with CMA CGM
--------------------------------------------------------------
Global Ship Lease, Inc., entered into an amendment to the
registration rights agreement to, among other things, facilitate
the pledge of shares by CMA CGM.  A copy of the First Amendment
is available for free at http://is.gd/YWQy0v

                      About Global Ship Lease

London, England-based Global Ship Lease (NYSE: GSL, GSL.U and
GSL.WS) -- http://www.globalshiplease.com/-- is a containership
charter owner.  Incorporated in the Marshall Islands, Global Ship
Lease commenced operations in December 2007 with a business of
owning and chartering out containerships under long-term, fixed
rate charters to world class container liner companies.

Global Ship Lease owns 17 vessels with a total capacity of 66,297
TEU with a weighted average age at June 30, 2010, of 6.3 years.
All of the current vessels are fixed on long-term charters to CMA
CGM with an average remaining term of 8.6 years.  The Company has
contracts in place to purchase two 4,250 TEU newbuildings from
German interests for approximately US$77 million each that are
scheduled to be delivered in the fourth quarter of 2010.  The
Company also has agreements to charter out these newbuildings to
Zim Integrated Shipping Services Limited for seven or eight years
at charterer's option.

As reported in the Dec. 1, 2012, edition of the TCR, Global Ship
Lease disclosed that it had entered into an agreement with its
lenders to waive until Nov. 30, 2012, the requirement under its
credit facility to conduct loan-to-value tests.  The credit
facility requires that loan-to-value, which is the ratio of
outstanding borrowings under the credit facility to the aggregate
charter-free market value of the secured vessels, cannot exceed
75%.

The Company's balance sheet at Sept. 30, 2012, showed US$907.84
million in total assets, US$549.46 million in total liabilities
and US$358.38 million in total stockholders' equity.


GOLDMAN VICENTI: High Court Winds Up Debt Collection Firm
---------------------------------------------------------
Goldman Vicenti Ltd, a company that offered debt collection
services, was wound up by the High Court on 16 January 2013 on
grounds of public interest.

The winding up follows the presentation of a winding up petition
on behalf of the Secretary of State for Business, Innovation and
Skills and an investigation by Company Investigations (CI) of The
Insolvency Service.

The investigation showed that the company charged customers an up
front fee of up to GBP595 to provide debt collection services and
also charged the debtors who owed these companies money,
unjustified additional collection fees.

CI's investigation established, and the court found that the
company failed to adhere to its own terms and conditions of
service by:

  -- charging VAT on its services, despite it not being
registered
     for VAT,

  -- charging debtors excessive fees and collection charges,
     failing to refund clients the full debt collected on behalf
     of the client,

  -- failing to safeguard monies recovered from debtors on behalf
     of customers.

The investigation also showed Goldman Vicenti Ltd also failed to:

  -- explain transactions on its bank accounts,
  -- provide evidence of testimonials used on its website or,
  -- to maintain adequate books and records as is the statutory
     duty of company directors.

Although the company failed to maintain adequate books and
records, the investigation established that Goldman Vicenti Ltd
appeared to be insolvent with liabilities due to its clients as
well as to HM Revenue & Customs.

The High Court found that it was in the public interest that
Goldman Vicenti Ltd be wound up.

Alex Deane, an Investigation Supervisor with The Insolvency
Service said: "This company engaged in unacceptable business
conduct in that it failed in its duty to its customers and their
clients. They deliberately posted false testimonials on their
website thus giving the incorrect impression that they were
trustworthy. The Insolvency Service will take action to remove
such companies from the business environment".


HEARTS: Can Fall Into Administration Over Ownership Confusion
-------------------------------------------------------------
stv News reports that Heart of Midlothian Football Club staff
have been told the club could go into administration -- as they
await news from Lithuania on the ownership situation at
Tynecastle.

Officials stated administration was a possibility if the right
assurances were not received from majority shareholders UBIG,
according to stv News.

The report relates that administration was mentioned as one, but
not the only, possible outcome.

stv News says that it is understood Hearts Director Sergejus
Fedotovas expects to receive news from Lithuania, which it is
hoped will make the financial picture at Tynecastle clearer for
the current board of directors.

It emerged that Vladimir Romanov had quit from the board of UBIG,
the company which owns 79% of the club's shareholding, the report
notes.  A new board of directors will be appointed at UBIG in due
course, the report discloses.

The resignations at UBIG followed the suspension of trading at
Lithuanian bank Ukio Bankas, which funds the company, stv News
relays.

If the club went into administration before the end of the
2012/13 Scottish Premier League season, they would be deducted 18
points from their current tally, stv News adds.


IMPRINT SCHOOLWEAR: Placed Into Liquidation
-------------------------------------------
Rob Smyth at Coventry Telegraph reports that schoolwear firm
Imprint Schoolwear has been placed into liquidation.  The
company's directors revealed that the current economic climate
had forced them to take the difficult decision.

The report relates that bosses also said that 'increase in
availability of school uniform from supermarkets' had been a
major factor in the move.

"The directors and staff of Imprint Schoolwear would like to
thank customers for their custom, support and encouragement over
the past three years," the firm said in a statement cited by the
Coventry Telegraph.  "Unfortunately, due to the current economic
climate and the increase in availability of school uniform from
supermarkets, we have taken the difficult decision to place the
company into liquidation."

Based in Bretby Business Park, Ashby Road, Imprint Schoolwear
provided uniforms for youngsters in Burton and South Derbyshire.
The firm supplied uniforms for a host of secondary schools,
including Abbot Beyne, John Port, John Taylor, Paulet, Pingle and
William Allitt.


SUPERGLASS: May Struggle to Repay "Unsustainable" Debt
------------------------------------------------------
Gareth Mackie at The Scotsman reports that Superglass warned it
would struggle to meet its "unsustainable" debt obligations.

The company, which said operating profits and cashflow were being
hit by low levels of housebuilding activity in the UK, is due to
repay GBP8.2 million in debt over the three years to November
2016, the Scotsman discloses.

"The board's view is that for so long as market conditions remain
as they are now, these debt service obligations will be
unsustainable, the Scotsman quotes the company as saying in a
statement.  "As a result, the board is considering all options to
strengthen the company's balance sheet, including the potential
for a further equity issue. It is likely that any refinancing
measure would result in significant dilution to existing
shareholders' equity."

According to the Scotsman, Superglass, headed by chief executive
Alex McLeod, said its bankers "continue to be supportive".

Superglass is a Stirling-based insulation maker.



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


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------

Apr. 10-12, 2013
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA Spring Conference
         JW Marriott Chicago, Chicago, Ill.
            Contact: http://www.turnaround.org/

Apr. 18-21, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Annual Spring Meeting
         Gaylord National Resort & Convention Center,
         National Harbor, Md.
            Contact:   1-703-739-0800; http://www.abiworld.org/

June 13-16, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Central States Bankruptcy Workshop
         Grand Traverse Resort, Traverse City, Mich.
            Contact:   1-703-739-0800; http://www.abiworld.org/

July 11-13, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Northeast Bankruptcy Conference
         Hyatt Regency Newport, Newport, R.I.
            Contact:   1-703-739-0800; http://www.abiworld.org/

July 18-21, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Southeast Bankruptcy Workshop
         The Ritz-Carlton Amelia Island, Amelia Island, Fla.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Aug. 8-10, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Mid-Atlantic Bankruptcy Workshop
         Hotel Hershey, Hershey, Pa.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Aug. 22-24, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Southwest Bankruptcy Conference
         Hyatt Regency Lake Tahoe, Incline Village, Nev.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Oct. 3-5, 2013
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA Annual Convention
         Marriott Wardman Park, Washington, D.C.
            Contact: http://www.turnaround.org/

Nov. 1, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      NCBJ/ABI Educational Program
         Atlanta Marriott Marquis, Atlanta, Ga.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Dec. 2, 2013
   BEARD GROUP, INC.
      19th Annual Distressed Investing Conference
          The Helmsley Park Lane Hotel, New York, N.Y.
          Contact:   240-629-3300 or http://bankrupt.com/

Dec. 5-7, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Winter Leadership Conference
         Terranea Resort, Rancho Palos Verdes, Calif.
            Contact:   1-703-739-0800; http://www.abiworld.org/


                            *********

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.


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

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

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

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

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

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


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