TCREUR_Public/130529.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Wednesday, May 29, 2013, Vol. 14, No. 105



WALTER NIEMETZ: Heidi Chocolat Buys Firm Out of Insolvency


AXA IMMOSELECT: Sales Slowdown Hits Investor Distribution




RCS MEDIAGROUP: Creditors Agree to Increase Credit Lines


NORTHLAND RESOURCES: Bondholders Block Access to Bank Accounts


POLSKI KONCERN: Fitch May Upgrade Issuer Default Rating From BB+


BANKIA SA: Completes Multi-Billion Euro Cash Injection
PRIVATE MEDIA GROUP: Incurs EUR29.3-Mil. Net Loss in 2011

U N I T E D   K I N G D O M

ACE CLEANING: Bridgestones Appointed as Liquidators
BLACK AND WHITE: Creditors Met Following Liquidation
CO-OPERATIVE BANK: Appoints Niall Booker as Chief Executive
IAN NEALE: Football Stadium Owner Placed in Liquidation
MILLOM & DISTRICT: FSCS Takes Action After Liquidation



WALTER NIEMETZ: Heidi Chocolat Buys Firm Out of Insolvency
Austrian Times reports that the Meinl subsidiary Heidi Chocolat
bought the Schwedenbomben manufacturer Niemetz for EUR5.25
million. The firm promised to keep the production in Austria,
which pleased the Niemetz staff.

Austrian Times says Niemetz, the insolvent Austrian manufacturer
of the "Schwedenbomben" confectionary, could not be saved. More
than EUR4.1 million had to be transferred to the liquidator until
May 21; as this did not happen, the factory was sold immediately.

According to the report, Heidi Chocolat AG made a binding bid for
the sweet factory of Walter Niemetz. The firm thus wants to enter
the Austrian market and to make the sweet Schwedenbombe popular
in the neighbouring countries.

The creditors will get their claims fully substituted.

Heidi Chocolat S.A. was founded in Romania by the Swiss
traditional confiserie Laderach in 1994. It became a subsidiary
of Julius Meinl in April and has shops in more than 40 countries.

The firm, with its headquarters in Pantelimon near Bucharest,
offers a range of classic chocolate bars in various flavours,
pralines, creme and nut bars.

The staff is relieved that the uncertainty of the past weeks is
now followed by a stable and sustainable solution. Apparently,
Austrian Times says, the future owner wants to keep as many
Niemetz employees as possible.


AXA IMMOSELECT: Sales Slowdown Hits Investor Distribution
Property Investor Europe reports that German open-ended AXA
Immoselect, a fund of French AXA Real Estate in liquidation since
October 2011, may not be able to distribute its half-yearly
repayment to investors in June due to a sales slowdown and other


The Budapest Times reports that Zalai Baromfifeldolgozo went into
liquidation and sacked 94 workers at its factory in Pacsao only
16 months after it began operating.

The HUF1.5 billion (EUR5.14 million) unit is one of the largest
in Hungary and before the launch the company won HUF625 million
(EUR2.14 million) in support for the investment, comprising
HUF401 million (EUR1.37 million) from the previous government and
HUF224 million (EUR768,000) in job-creation subsidy from the
current one.

According to the report, receiver Ferenc Somogyi said at the time
the liquidation was requested the company's assets were worth
about HUF1 billion (EUR3.43 million) but debts amounted to around
HUF2.6 billion (EUR8.94 million).

Zalai Baromfifeldolgozo is a poultry-processing company.


RCS MEDIAGROUP: Creditors Agree to Increase Credit Lines
Sonia Sirletti at Bloomberg News, citing La Stampa, reports that
RCS MediaGroup's bank creditors agreed to increase credit lines
to EUR600 million from planned EUR575 million.

According to Bloomberg, La Stampa said RCS is to ratify the
decision at a board meeting scheduled today, May 29.

In an April 14 report, Reuters disclosed that the board of RCS
approved the broad terms of a capital increase and a debt
refinancing plan needed for the loss-making company's turnaround
plan.  The company needs large financial resources to accelerate
its digital transition and reverse losses over the next three
years, Reuters disclosed.

RCS reported a group's net loss of EUR509.3 million for 2012, and
is seeking shareholders support for a cash call of up to EUR600
million (US$786 million) by 2015, with a first tranche of EUR400
million by July, Reuters related.

In April, the group agreed with creditor banks Unicredit, Intesa
Sanpaolo, Mediobanca, UBI Banca, Bnl-BNP Paribas and Banca
Popolare di Milano to reschedule maturing loans worth EUR575
million, Reuters recounted.

RCS, as cited by Reuters, said that the refinancing, which
entails three new lines of credit due in three to five years, is
conditional on the completion of a capital injection of at least
EUR400 million.

RCS MediaGroup is the publisher of Italy's newspaper Il Corriere
della Sera, whose ownership groups some of Italy's biggest
financial and industrial names


NORTHLAND RESOURCES: Bondholders Block Access to Bank Accounts
Karl-Axel Waplan, President & CEO, Northland Resources S.A.,
disclosed that Norsk Tillitsman, the Trustee, acting on behalf of
the bondholders of the US$370 million senior secured bond, on
May 24 decided to enforce on bank account pledges leaving the
Company without access to its own funds.

As a consequence Northland lacks the liquidity to make any
payments.  The Board of Directors has therefore decided that as
of May 24, none of the companies in the Group shall order or
receive any goods or services.  The Company will over the weekend
pursue all available options to try to find a solution for the
short and long term funding.

The decision to block the bank accounts came after a meeting on
May 24 between the Trustee, a few larger bondholders and their
advisers where they also turned down the proposed US$35 million
short bridge facility which would have required a bondholder
approval which was planned for Thursday, May 30.

Headquartered in Luxembourg, Northland Resources S.A. (OSLO:NAUR)
producer of iron ore concentrate, with a portfolio of production,
development and exploration mines and projects in northern Sweden
and Finland.  The first construction phase of the Kaunisvaara
project is complete and production ramp-up started in November
2012.  The Company expects to produce high-grade, high-quality
magnetite iron concentrate in Kaunisvaara, Sweden, where the
Company expects to exploit two magnetite iron ore deposits,
Tapuli and Sahavaara.  Northland has entered into off-take
contracts with three partners for the entire production from the
Kaunisvaara project over the next seven to ten years.  The
Company is also preparing a Definitive Feasibility Study ("DFS")
for its Hannukainen Iron Oxide Copper Gold ("IOCG") project in
Kolari, northern Finland and for the Pellivuoma deposit, which is
located 15 km from the Kaunisvaara processing plant.


POLSKI KONCERN: Fitch May Upgrade Issuer Default Rating From BB+
Fitch Ratings has assigned Polish oil refining and marketing
company Polski Koncern Naftowy ORLEN S.A.'s (PKN) domestic 4-year
PLN200 million bonds a 'BBB+(pol) National senior unsecured
rating. PKN is rated 'BBB+(pol)'/Positive Outlook on the national
rating scale and 'BB+'/Positive Outlook on the international
rating scale.

The bonds are issued within the PLN1 billion bond issue program.
The bonds constitute senior unsecured obligations of PKN. There
are no financial covenants included in the bond documentation.

Key Rating Drivers

Positive Outlook

The Positive Outlook reflects Fitch's view that PKN's ratings may
be upgraded in 2013-2014, including the company's Long-term
Issuer Default Ratings (IDRs) to 'BBB-' from 'BB+', should the
company consistently maintain credit ratios at a moderate level.
The future leverage level will mainly depend on the strategy
implementation, in particular capex levels in relation to cash
flows, and the macroeconomic conditions for refining and
petrochemicals operations in the medium term.

Better Financial Profile

The ratings reflect PKN's improved financial profile thanks to
several measures taken by management to reduce leverage,
including the disposal of Polkomtel S.A. (after-tax proceeds of
PLN3.2 billion (US$1 billion)), its modest capex in 2011-2012
following a capex-intensive period in 2007-2010, and no dividends
paid in 2011-2012. This supports PKN's creditworthiness in the
still difficult conditions for the European oil refining sector
due to the overcapacity and weak demand.

Strategy Implementation

Fitch views PKN's strategy update announced in November 2012 as
supporting the company's credit profile. One of PKN's strategic
targets is to maintain credit ratios at a safe level, including
the gearing ratio below 30% and covenant net debt-to-EBITDA below
1.5x. While the capex plan for 2013-2017 of PLN22.5 billion is
large -- about 50% higher than in 2008-2012, the company also
expects an increase in EBITDA partly due to investments. Fitch
views positively the fact that around PLN7bn of the planned capex
for 2013-2017 is discretionary (mostly in the upstream and energy
segments) and may be deferred or cancelled in case of weaker than
expected cash flows.

Improved Flexibility

Fitch believes that PKN has much greater flexibility to reduce
its capex in case of weaker cash flows now than in 2007-2010,
when it was conducting some major committed investments. The
agency views positively PKN's proven ability to manage its
working-capital changes in line with changes in its financial
position. This could provide additional flexibility for the
company should industry conditions weaken, leading to a
deterioration of reported credit ratios potentially close to the
covenant level defined in the main bank loan agreements.

Cyclical Sectors

Most of PKN's EBITDA is generated in two highly cyclical sectors:
oil refining and petrochemicals (each sector generated about 40%
of 2011-2012 EBITDA before inventory holding gains/losses). The
remaining 20% of EBITDA comes from the more stable fuel retailing
business. Fitch views PKN as a refining company with high
business diversification in light of its substantial
petrochemical operations and a strong position in fuel retail

Rating Sensitivities

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

-- The company's ability to consistently maintain credit ratios
   at moderate levels, including funds from operations (FFO)
   adjusted net leverage of about 2x (excluding inventory holding
   gains/losses) and FFO fixed charge cover of about 5x
  (excluding inventory holding gains/losses);

-- Positive free cash flow across the cycle;

-- Reduced working capital burden for compulsory stock in case of
   changed Polish regulations increasing the role of government
   in the storage of compulsory stock ;

-- Reduced volatility of PKN's profit margins.

Negative: The current Outlook is Positive. As a result, Fitch's
sensitivities do not currently anticipate developments with a
material likelihood, individually or collectively, leading to a
rating downgrade. Nonetheless, factors that may potentially lead
to a stabilization of the Outlook or even negative rating action

-- A marked deterioration in cash flows and credit metrics due,
   for example, to substantially weaker than expected conditions
   for refining and petrochemicals operations;
-- Capex substantially above FFO resulting in highly negative
   free cash flow in the medium term;

-- Aggressive dividend policy.

Liquidity and Debt Structure

At end-March 2013, short-term debt of PLN3.2 billion (US$1
billion) was covered by cash of PLN1.3 billion, and unused
committed bank facilities of PLN9.6 billion, which expire mostly
in 2016. PKN's debt maturity profile is not onerous with no major
repayments until 2016. The company had sufficient headroom within
its financial covenants at end-December 2012.

Full List of Ratings

Long-term foreign currency IDR at 'BB+'; Outlook Positive
Long-term local currency IDR at 'BB+'; Outlook Positive
Short-term foreign currency IDR at 'B'
Short-term local currency IDR at 'B'
Foreign currency senior unsecured rating at 'BB+'
Local currency senior unsecured rating at 'BB+'
National Long-term rating at 'BBB+(pol)'; Outlook Positive
National senior unsecured rating at 'BBB+(pol)'


BANKIA SA: Completes Multi-Billion Euro Cash Injection
Reuters reports that Bankia SA has completed a multi-billion euro
cash injection.

According to Reuters, more than 11 billion shares issued as part
of a EUR15.5 billion (GBP13.3 billion) recapitalization of the
bank started trading in what was meant to be a new beginning
after a EUR24 billion bailout last year.

But some analysts say the stock could remain under pressure, with
little hope of a quick recovery amid tough business conditions,
Reuters notes.

Following the cash injection, the Spanish state owns 68.4% of
Bankia, with the rest held by former holders of preference shares
and hybrid debt, often small savers who were mis-sold these
complex financial instruments and were forced to swap them at a
discount for ordinary shares, Reuters discloses.

Further pressure will come from a recession which economists
expect to last at least another two quarters, Reuters says.

The bank also needs to pay back public aid and cheap European
Central Bankloans received last year and faces a possible new
round of provisioning to cover losses on the refinanced loans
portfolios, Reuters states.

Prospects for the bank are also clouded by uncertainty over
government plans for handling state-owned banks and potential
risks from arbitration over the mis-selling of preference shares
and hybrid debt which it could have to settle in cash, according
to Reuters.

Bankia SA is a Spanish banking conglomerate that was formed in
December 2010, consolidating the operations of seven regional
savings banks.  As of 2012, Bankia is the fourth largest bank of
Spain with 12 million customers.

PRIVATE MEDIA GROUP: Incurs EUR29.3-Mil. Net Loss in 2011
Private Media Group, Inc., filed on May 23, 2013, its annual
report on Form 10-K for the year ended Dec. 31, 2011.

The Company said: "As explained in greater detail in this Annual
Report on Form 10-K, the former principal executive officers of
Private Media Group, Inc., were relieved of their duties in
December 2011, and most of the former members of the Board of
Directors were removed by the shareholders at the annual meeting
of the shareholders held in January 2012.  Upon assuming control,
the new officers and directors discovered that many of Private
Media Group, Inc.'s important financial and corporate records,
including those necessary to complete the 2011 audited financial
statements, were in disarray and/or missing.  As a result of the
change in management and the condition of the financial and
corporate records, Private Media Group, Inc., and its auditors
were unable to complete the audited financial statements for the
year ended Dec. 31, 2011, until May 2013.

BDO Auditores, S.L., in Barcelona, Spain, expressed substantial
doubt about Private Media Group's ability to continue as a going
concern, citing the Company's recurring losses from operations,
and working capital deficit and negative net equity position at
Dec. 31, 2011.  "Moreover, as of Dec. 31, 2012, the Group has not
yet reestablished profitable operations.

The Company reported a net loss of EUR29.3 million on
EUR7.9 million of sales in 2011, compared with a net loss of
EUR4.3 million on EUR23.3 million of sales in 2010.

"The decrease in net sales is attributable to both (a) the
exclusion of EUR11,423,000 of net sales [of] Game Link and
Sureflix in 2011, which net sales were excluded from net sales in
fiscal 2011 because of the divestiture of those two subsidiaries,
and (b) an overall decrease in net sales in our core "Private"
branded operations.

The Company's balance sheet at Dec. 31, 2011, showed
EUR11.5 million in total assets, EUR17.8 million in total
liabilities, and a stockholders' deficit of EUR6.3 million.

A copy of the Form 10-K is available at

Located in Barcelona, Spain, Private Media Group, Inc., is an
international provider of branded adult media across a wide range
of digital platforms and physical formats.  It conducts its
operations through various non-U.S. subsidiaries located in a
number of countries, including Cyprus, Sweden, Spain and

U N I T E D   K I N G D O M

ACE CLEANING: Bridgestones Appointed as Liquidators
Joe McGrath at Insolvency News reports that Ace Cleaning Company
Limited (ACCL) is to be wound up following a meeting of creditors
on May 7, 2013.

Jonathan Lord of Bridgestones is the insolvency practitioner
appointed to handle the liquidation of the business.

The most recent annual accounts filed with Companies House show
that the company had amounts falling due of GBP712,905 within one
year as declared at the end of February 2012 against total
current assets of GBP280,457.

Ace Cleaning Company Limited is a cleaning company featured on
ITV's Grimefighters.  Ace Cleaning has three offices in Coventry,
Leicester and Tamworth offering cleaning services to businesses
in the Midlands.

BLACK AND WHITE: Creditors Met Following Liquidation
Jennifer Faull at The Drum reports that Newcastle-based ad agency
Black and White has called a meeting of creditors after going
into liquidation.

"A statement of affairs of the company, and a list of the
creditors of the company and the estimated amount of their
claims, will be presented at the meeting, and, if thought fit, a
liquidator may be nominated and a liquidation committee
appointed," a notice in the London Gazette obtained by The Drum

"Resolutions may be taken at the meeting specifying the terms on
which the liquidator is to be remunerated. The meeting may also
receive information about the costs of preparing the statement of
affairs and convening the meeting."

P&A Partnership has been called in to act as an insolvency
practitioner, says The Drum.

The first meeting, called by managing director Anne Lamb, took
place on May 21.

Black and White, which was established in 1984, has delivered
campaigns for The Bed Shed, Reid Furniture, Edinburgh Woollen
Mill and Leeds Building Society.

CO-OPERATIVE BANK: Appoints Niall Booker as Chief Executive
Philip Aldrick at The Telegraph reports that the Co-operative
Group has hired a former senior HSBC director to take charge of
its struggling banking arm.

Niall Booker, 54, who was head of HSBC's North American
operations until a management shake-up in 2011, is joining the
mutual as chief executive of the Co-op Bank and deputy chief
executive of the entire supermarkets-to-funerals group, the
Telegraph discloses.

According to the Telegraph, Mr. Booker's immediate job will be to
fix the problems in the banking arm, which is believed to be
facing a capital shortfall of between GBP1 billion and GBP1.5
billion and has ceased new business lending.  The hire is also
likely to scotch speculation that the bank will be sold or shut
down, the Telegraph says.

The group is working with regulators to find a solution to its
capital problems, the Telegraph discloses.  A three-pronged
strategy is currently being explored that is likely to see both
the lender and the group sell off businesses, and the bank's
GBP1.3 billion subordinated bondholders take a hit, according to
the Telegraph.

Co-op Bank preference shares have already collapsed in value, the
Telegraph relates.  Its permanent interest bearing shares, which
are often held by retail investors, could also be under threat,
the Telegraph notes.

The Co-op has seen a series of senior executives quit in the wake
of disastrous results and a credit downgrade to "junk" by Moody's
earlier this month, when it also suggested the bank might need
state support, the Telegraph recounts.

Founded in 1863, the Co-op has more than six million members,
employs more than 100,000 people and has turnover of more than
GBP13 billion.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on May 13,
2013, Moody's Investors Service downgraded the deposit and senior
debt ratings of Co-operative Bank plc to Ba3/Not Prime from
A3/Prime 2, following its lowering of the bank's baseline credit
assessment (BCA) to b1 from baa1.  The equivalent standalone bank
financial strength rating (BFSR) is now E+ from C- previously.

IAN NEALE: Football Stadium Owner Placed in Liquidation
Coventry Telegraph reports that Ian Neale Construction Group Ltd,
the company which owns Nuneaton Town's football stadium, has been
placed in liquidation.

A meeting of shareholders and creditors met on May 21 which
could begin a process to sell the club's Liberty Way ground.

According to the report, liquidators were appointed for Ian Neale
Construction Group Ltd and act as landlord for the stadium.

John Rimmer, insolvency practitioner at BRI Business Recovery and
Insolvency, in Coventry, was appointed along with Peter Windatt,
the report says.

"We can now start the process of getting a valuation and inviting
offers (for the stadium).  We will now see what creditors claim
are and what the company's assets are," the report quotes Mr.
Rimmer as saying.  "A liquidator looks to close the liquidation
as soon as possible but we're looking at a matter of months
rather than weeks."

Mr Rimmer added: "We want to make it clear that there is no
change to the football club. We are merely acting as (stadium)
landlord and it's business as usual for the football club."

Ian Neale Construction Group holds the freehold of the stadium
but the football club is owned by a separate company, Boro
Leisure Limited, which holds a ten-year lease to occupy the

MILLOM & DISTRICT: FSCS Takes Action After Liquidation
Kevin White at FTAdviser reports that the Financial Services
Compensation Scheme has pledged to protect members of The Millom
& District Credit Union after it became the 18th to enter into
liquidation across the United Kingdom in less than two years.

The Millom & District Credit Union entered liquidation on May 15,
2013, after the FA suspended it last November from lending money
or allowing members access to their accounts.

FTAdviser relates that an FSA supervisory notice said it was not
satisfied that management of the credit union was "fit and
proper," and had failed to provide audited financial information
and regulatory returns.

According to the report, FSCS said 530 people have approximately
GBP235,000 deposited with the credit union. People with less than
GBP1,000 will receive a letter to enable them to get cash over
the counter at a post office. Anyone with more than this figure
will receive a cheque.

Earlier this month, trade body the Association of British Credit
Unions launched an expansion project designed to offer a wider
range of products for members, including current accounts,
budgeting accounts and Cash Isas, the report notes.


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
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related conferences are encouraged.  Send announcements to

Each Friday's edition of the TCR includes a review about a book
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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
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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,
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