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        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, July 3, 2013, Vol. 14, No. 130

                            Headlines




B U L G A R I A

PROCREDIT BANK: Fitch Affirms 'BB+' LT Issuer Default Rating


C Y P R U S

O1 PROPERTIES: S&P Assigns 'B+' Corporate Credit Rating
* CYPRUS: Moody's Calls Default on Recent Debt Exchange


F R A N C E

GREEN FIELDS II: S&P Assigns 'BB' Rating to EUR280MM Cl. A Notes


G E R M A N Y

EUROPROP SA: S&P Downgrades Rating on Class F Notes to 'D'


G R E E C E

EXCEL MARITIME: Chapter 11 Petition Filed
* GREECE: Resumes Talks with Int'l Creditors on Aid Installment


I R E L A N D

PULS CDO 2007-1: S&P Lowers Ratings on Three Note Classes to D
* IRELAND: Examinership Process Success Rate at 75% in First Half


I T A L Y

ILVA: Trade Unions Seek Production Alliance with Lucchini
SPRINGER: S&P Affirms 'B' Corp. Credit Rating; Outlook Stable


L U X E M B O U R G

DUCHESS I CDO: S&P Reinstates 'CCC-' Rating on Class B Notes


P O L A N D

CENTRAL EUROPEAN: Had US$79.4 Million Net Loss in First Quarter
POLIMEX: One Creditor Fails to Sign Debt Payment Extension Deal


P O R T U G A L

BANCO FINANTIA: Moody's Raises Class C Notes' Rating From Ba3
NOVA FINANCE: Moody's Raises Rating on Class C Notes to 'Ba3'


R U S S I A

SMP BANK: Moody's Affirms 'B3' Deposit Ratings; Outlook Stable


S P A I N

EROSKI: May Declare Bankruptcy Soon Over Huge Debt
PRIVATE MEDIA GROUP: Incurs US$485,000 Net Loss in First Quarter


S W I T Z E R L A N D

BARRY CALLEBAUT: Moody's Rates US$400MM Sr. Unsecured Notes Ba1


U N I T E D   K I N G D O M

ATMOSPHERE BARS: Modello Bar Brought Out of Administration
COVENTRY FC: Otium Entertainment Buys Firm Out Of Administration
HI-ARTS: Set to Go Into Liquidation After Financial Collapse
KINGSWOOD MOTORS: Goes Into Liquidation
LISSE LTD: Goes Into Administration

RECKLESS ENTERTAINMENT: Goes Into Liquidation
ROYAL BANK: Rotschild to Advise on Potential Split
TURNER PRODUCTS: QEP Buys Plasplugs Brand Following Liquidation
UK COAL: Set to File for Insolvency; PPF to Take Over
WINDERMERE XI: Fitch Downgrades Rating on Class B Notes to 'CC'


                            *********


===============
B U L G A R I A
===============


PROCREDIT BANK: Fitch Affirms 'BB+' LT Issuer Default Rating
------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings
(IDRs) of Societe Generale Express Bank AD (SGE) and Allianz Bank
Bulgaria AD (ABB) at 'BBB+' with a Stable Outlook and ProCredit
Bank (Bulgaria) AD's (PCB) Long-Term IDR at 'BB+' with a Stable
Outlook. At the same time, the agency has maintained MKB
Unionbank AD's (MKBU) 'BBB+' Long-Term IDR on Rating Watch
Negative (RWN).

KEY RATING DRIVERS - IDRS AND SUPPORT RATINGS

The IDRs and Support Ratings of SGE, ABB, PCB and MKBU are driven
by potential support being available to the banks, if required,
from their respective majority shareholders.

SGE is wholly owned by Societe Generale (SG, A+/Negative). ABB's
ultimate majority shareholder is Allianz SE through its 66% stake
in Allianz Bulgaria Holding which in turn has 80% stake in ABB.
Since 2012, PCB has been fully owned by ProCredit Holding AG &
Co. KGaA (PCH, BBB-/Stable) which acquired a remaining 19.1%
stake in the bank from Commerzbank AG. MKBU's direct owner, MKB
Bank Hungary Zrt (MKBH; Support Rating 2/RWN), is a subsidiary of
Bayerische Landesbank (BayernLB, A+/Stable). MKBH became MKBU's
sole shareholder in May 2013 after the European Bank For
Reconstruction and Development disposed of its remaining 3%
stake.

ABB's ratings reflect potential reputational risk for Allianz
from a subsidiary default, the owner's support track record and
close parental supervision. The notching between Allianz's and
ABB's IDRs is based on Fitch's view of limited strategic
importance of ABB to its parent due to Allianz's focus on its
insurance business and lack of other banking operations in the
CEE. Fitch believes that whether ABB remains in the parent group
depends on ABB's sole performance and its effective contribution
to Allianz's insurance and asset management business. The agency
has also considered the apparent lack of any intention to sell
ABB.

PCB's ratings reflect Fitch's view of PCH's high propensity to
support the bank, if needed, given the bank's strategic
importance for the parent group. This is evidenced by PCB being
PCH's second-largest subsidiary by total assets at end-2012.
PCB's IDRs and Support Ratings are also driven by PCH's moderate
support ability, as reflected in its own IDR.

In Fitch's view, BayernLB is likely to support MKBU as long as it
continues to own the bank, given high reputational risk from the
bank's default, its relative small size and the track record of
capital and funding support. However, MKBU's IDRs and the RWN
also reflect the limited strategic importance of MKBU for
BayernLB and the owner's plan to sell the bank. In July 2012,
BayernLB agreed with the European Commission that it would sell
MKBH and MKBU by end-2016 at the latest as part of its
restructuring program.

In Fitch's view, SGE is a strategically important subsidiary for
SG as part of the parent's strategic focus on the CEE as well as
SGE's stable and relatively good performance. SGE's IDRs are
currently constrained by the Bulgarian Country Ceiling (BBB+).

RATING SENSITIVITIES - IDRS, SUPPORT RATINGS

The banks' IDRs would be downgraded if their respective parents'
IDRs were downgraded (only multi-notch in case of SG). An upgrade
of a parent's IDR would only trigger a similar action on PCB's
IDR and Support Rating. The banks' ratings are also sensitive to
any changes in Fitch's view of their parents' support
willingness, including the lowering of a bank's strategic
importance for its parent group. Delayed or inadequate support
would likely trigger a downward revision of the banks' ratings.

An upgrade of the Bulgarian Country Ceiling (unlikely in Fitch's
view) would likely lead to an upgrade of SGE's IDR and Support
Rating, albeit limited to one notch. A downgrade of the Country
Ceiling (also not Fitch's base case) would result in a downgrade
of all banks' IDRs except for PCB.

A sale of MKBU or ABB (the latter not currently anticipated by
Fitch) could trigger a downgrade of the banks' Long-Term IDRs,
potentially to the current level of their VRs ('b+' and 'bb-',
respectively), if the new owner had a considerably weaker
profile. The IDRs could be affirmed if the banks are sold to
strong new owners. Fitch will resolve the RWN on MKBU's ratings
no later than the disposal of MKBU by BayernLB. Prior to a sale,
MKBU's support-driven ratings could be downgraded if BayernLB
were to fail to provide timely and adequate support for the bank.

KEY RATING DRIVERS AND SENSITIVITIES - VRs

SGE, PCB and ABB's VRs ('bb', 'bb-' and 'bb-', respectively)
reflect the banks' better than market average asset quality and
reserve coverage of non-performing loans (NPLs), solid pre-
impairment profitability, adequate to moderate capitalization and
strong liquidity buffers. This is counterbalanced by the
difficult operating environment resulting in elevated loan
impairment charges (LICs), limited franchise (to a lesser extent
in SGE), some significant reliance on wholesale funding (PCB) and
funding from the parent (SGE).

PCB and SGE have been much more conservative than ABB and MKBU in
terms of credit risk management, which is well evidenced by their
lower NPL ratios and a higher coverage of NPLs by reserves. At
end-2012, regulatory NPLs (non-performing and loss loans)
accounted for 4.9%, 5.5% and 9.9% of total gross loans at SGE,
PCB and ABB, respectively, compared to 16.6% sector average. The
coverage of NPLs by accounting reserves (87%, 75% and 60%,
respectively) was additionally supported by "special" regulatory
provisions (deducted from Tier 1 capital) equal to 15% and 29% of
NPLs for SGE and PCB (none at ABB).

Fitch believes that the banks' capital base provides sufficient
cushion to absorb potential credit losses due to the moderate
exposure to credit risk, moderate to strong reserve coverage and
limited credit risk appetite. At end-2012, Fitch core capital
(FCC)/risk weighted assets amounted to 14.2%, 14.6% and 15.8% at
SGE, PCB and ABB, respectively. NPLs net of accounting reserves
to FCC amounted to 4%, 10% and 28% for SGE, PCB and ABB,
respectively.

The banks maintain robust liquidity buffers, which covered around
30% of total customer deposits at end-Q113. ABB's funding and
liquidity profile is particularly strong compared with peers,
with customer deposits accounting for 90% of total liabilities
and a relatively low 82% loan/deposits ratio at end-Q113. PCB
sourced 17.5% of total non-equity funding from international and
local development financial institutions at end-Q113, while SGE
is significantly reliant on its parent for funding (SG provided
18% of SGE's total non-equity funding at end-2012).

SGE's performance was better than peers due to stability of
profits, relatively low cost/income ratio (52% at end-2012) and
healthy margins. PCB's profitability benefits from wide net
interest margins (6.8% at end-2012) which compensated for weaker
cost efficiency (cost/income ratio of 66% at end-2012). LICs
absorbed a substantial portion of pre-impairment profit at all
three banks, but mostly at ABB (48% at end-2012). Fitch believes
that the banks' performance will remain under pressure in 2013
from the weak economic recovery, which negatively affects loan
demand and asset quality, and falling market interest rates.

MKBU's 'b+' VR reflects the bank's modest capitalization in light
of the high credit risks embedded in its loan book, very weak
internal capital generation and the bank's material, albeit
decreasing, reliance on parental funding. The bank's moderate
liquidity position benefits from subdued lending activity.

MKBU's elevated NPL ratio (15.9% at end-2012) can be attributed
largely to the bank's high exposure to the troubled commercial
real estate and construction sectors. At end-2012, NPL coverage
by accounting reserves was a modest 49%, but would increase to a
much higher 66% after including "specific" provisions. NPLs net
of accounting reserves accounted for a high 55% of MKBU's FCC at
end-2012.

Parental funding is gradually being reduced. However, it still
contributed to 24% of MKBU's total non-equity funding at end-Q113
(2011: 26%). In 2012, MKBU replaced the entire MKBH's funding
with less expensive funding sourced directly from BayernLB. High
loans/deposits ratio (133% at end-Q113) was partly mitigated by a
large pool of highly liquid assets (28% of customer deposits at
end-Q113).

All banks' VRs are most sensitive to increase in NPLs which, if
material and coupled with high LICs, would put pressure on the
banks' capital and result in a downgrade of their VRs. A gradual
improvement of asset quality and lower LICs resulting in stronger
profitability and capital adequacy could trigger an upward
revision of the banks' VRs.

The rating actions are:

Societe Generale Express Bank AD

Long-term IDR: affirmed at 'BBB+'; Outlook Stable
Short-term IDR: affirmed at 'F2'
VR: affirmed at 'bb'
Support Rating: affirmed at '2'

Allianz Bank Bulgaria AD

Long-term IDR: affirmed at 'BBB+'; Outlook Stable
Short-term IDR: affirmed at 'F2'
VR: affirmed at 'bb-'
Support Rating: affirmed at '2'

ProCredit Bank (Bulgaria) AD

Long-term IDR: affirmed at 'BB+'; Outlook Stable
Short-term IDR: affirmed at 'B'
Local-currency long-term IDR: affirmed at 'BB+'; Outlook Stable
Local-currency short-term IDR: affirmed at 'B'
VR: affirmed at 'bb-'
Support Rating: affirmed at '3'

MKB Unionbank AD

Long-term IDR: 'BBB+' maintained on RWN
Short-term IDR: 'F2' maintained on RWN
VR: affirmed at 'b+'
Support Rating: '2' maintained on RWN



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


O1 PROPERTIES: S&P Assigns 'B+' Corporate Credit Rating
-------------------------------------------------------
Standard & Poor's Ratings Services said it has assigned its 'B+'
long-term corporate credit rating to Cyprus-registered real
estate investment company O1 Properties Ltd., which operates in
Russia. The outlook is stable.

S&P also assigned its 'B+' issue rating to the proposed Russian
ruble (RUB)6 billion senior unsecured notes to be issued by
special purpose vehicle O1 Properties Finance.  The recovery
rating on these proposed notes is '4', reflecting S&P's
expectation of average recovery (30%-50%) for bondholders in
the event of a payment default.

The rating on O1 Properties reflects S&P's assessment of the
company's business risk profile as "fair" and its financial risk
profile as "aggressive."

"Underpinning our view of business risk is O1 Properties' good-
quality property portfolio, comprising mainly Class "A" and "B+"
quality office assets, with most operational assets located in
the center of Moscow and enjoying about 98% occupancy.  The
company is large (worth $3.7 billion based on asset value) and
has strong market positions in Moscow.  Recurring cash flows are
supported by well-spread lease maturities (average of 4.7 years)
contracted with a large base of good quality tenants.  We believe
that the current strong demand from tenants for new space should
support rent levels from existing assets and new developments, as
barriers to entry remain high due to local planning and zoning
restrictions.  We note that the company's share of developments
is low, at about 2% of the portfolio value, although the
management has a tolerance up to 20% maximum," S&P said.

"The rating is constrained in our view by high country risk in
Russia, which suffers from structural weaknesses, such as the
economy's strong dependence on hydrocarbons and other
commodities, as well as uncertainties on the rule of law.
Compared with other office property companies that Standard &
Poor's rates, O1 Properties is still in expansion, and bears high
geographical concentration (100% of the portfolio is in Moscow)
and asset concentration (10 operational assets, with the largest
accounting for 27% of market value).  We believe the limited
number of assets leaves the company exposed to rent volatility
from asset rotation and reletting activities (12% of rent is
under risk each year in average)," S&P added.

"In terms of financial risk, we see recurring cash flow
generation as stable thanks to the company's positive rental
income growth and stable lease maturity profile.  We believe that
given the current favorable market conditions in Moscow, O1
Properties' rental upside will come from rent reviews and
additional income from ongoing development projects (Bolschevik
and Sheremetievska), as well as the full-year impact of
acquisitions realized over the past 12 months.  Given the recent
acquisitions and flexibility around dividend payouts, we foresee
improvement in the capital structure, such that the ratio of loan
to value (LTV) should stabilize closer to 60% over the next 12 to
24 months.  Although there are no large debt maturities until
2016, we believe the financial risk profile remains constrained
by heavy amortization schemes and the absence of unencumbered
assets, which limits the company's ability to raise new secured
bank financing in case it faces difficulties to refinance its
existing credit facilities.  We view O1 Properties' access to
capital markets as relatively limited, which leaves it still
highly dependent on the availability of bank financing," S&P
noted.

The stable outlook reflects S&P's forecast that O1 Properties
will likely maintain stable occupancy rates while growing its
income generating asset base.  Rating stability hinges on O1
Properties maintaining an interest coverage ratio close to 1.5x
over the next 12 months.

S&P could lower the rating if O1 Properties' interest coverage
ratio fell to less than 1.5x on sustained basis as a result of a
drop in rental rates, which S&P views as unlikely at this stage.
S&P could also take a negative rating action if the company used
less equity than it currently anticipates to fund acquisitions.

Conversely, S&P could raise the rating if 01 Properties was able
to reduce its leverage, such that its ratio of debt to debt plus
equity reached a 55% inflection point, while keeping an EBITDA
interest coverage ratio of 2x or higher.  Based on the current
market trend, S&P estimates it would correspond to LTV below 55%.


* CYPRUS: Moody's Calls Default on Recent Debt Exchange
-------------------------------------------------------
Moody's Investors Service says that it considers Cyprus
(Caa3/negative) to have defaulted, in line with Moody's default
definitions, further to the conclusion of an exchange of EUR1
billion of existing domestic government bonds. The debt exchange
is in accordance with Cyprus's commitments under the program
agreed with international partners. In July 1, the Cypriot
authorities announced the completion of the exchange of bonds.

Moody's understands that, out of the selected bonds, 67% of the
total outstanding amounts was subject to the exchange. The
exchange involved an extension of existing bonds maturing from
2013 through 2016 with longer maturities and no change in the
bond coupon.

According to Moody's definitions, this exchange represents a
'distressed exchange', and therefore a debt default. This is
because (i) the exchange amounts to a diminished financial
obligation relative to the original obligation, and (ii) the
exchange has the effect of allowing Cyprus to avoid payment
default in the future.

Moody's does not use a 'Default' or 'Selective Default' rating,
but rather maintains ratings on securities in default that are
indicative of the magnitude of losses to investors.

Moody's will revisit Cyprus's rating in due course to assess the
impact of the exchange on the sustainability of Cyprus's debt
burden together with other relevant factors, including Cyprus's
likely compliance with measures that are a condition of external
support and its growth prospects.

Cyprus's sovereign rating is Caa3, negative outlook. Moody's
downgraded it to that level from B3 on January 10, 2013. At the
time, Moody's said that the risk of a payment default or
distressed exchange was high.



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


GREEN FIELDS II: S&P Assigns 'BB' Rating to EUR280MM Cl. A Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its 'BB
(sf)' issue credit rating to the EUR280 million variable-rate
principal-at-risk series 2013-1 class A notes to be issued by
Green Fields II Capital Ltd.  The notes are sponsored by Swiss
Reinsurance Company Ltd. (Swiss Re), the ceding insurer.

The notes are exposed to windstorm risk, affecting France
including Corsica, between July 2013 and December 2016, as
modeled by Risk Management Solutions Inc.

S&P has based its rating on the lower of its 'BB' rating on the
catastrophe risk; its long-term 'AAA' issuer credit rating on the
European Bank for Restructuring and Development (EBRD) as the
issuer of the assets in the collateral accounts; and the risk of
nonpayment of the quarterly contract payment by Swiss Reinsurance
Company Ltd., which has a 'AA-' long-term rating.



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


EUROPROP SA: S&P Downgrades Rating on Class F Notes to 'D'
----------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'D (sf)' from 'CCC-
(sf)' its credit rating on EuroProp (EMC VI) S.A.'s class F
notes. S&P's ratings on the class A, B, C, D, and E notes are
unaffected by the rating action.

The rating action reflects S&P's opinion of cash flow disruptions
in the transaction, and the application of our criteria.

As a result of the losses that the class F notes' principal
deficiency ledger accumulated on the January 2013 interest
payment date (IPD), the class F notes experienced an interest
shortfall on the April 2013 IPD.  The notes did not receive any
of the EUR57,468.86 due.

The issuer was not entitled under the transaction documents to
draw on the liquidity facility to pay the class F notes' interest
shortfall.  This is because the class F notes' principal
deficiency ledger was greater than 50% of the principal amount
outstanding.

In S&P's opinion, the total EUR57,468.86 interest shortfall is
likely to continue and S&P considers that the class F notes'
interest shortfall is therefore unlikely to be repaid.

S&P's ratings on EuroProp (EMC VI)'s notes address timely payment
of interest and repayment of principal no later than the legal
maturity date in April 2017.

S&P has lowered to 'D (sf)' from 'CCC- (sf)' its rating on the
class F notes as a result of its cash flow disruption on the
April 2013 IPD.

EuroProp (EMC VI) is a commercial mortgage-backed securities
(CMBS) CMBS transaction that closed in 2007.  It was originally
secured by 18 commercial real estate assets in Germany and
France. At present, 14 loans remain outstanding.  The
transaction's legal final maturity date is in April 2017.

          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

EuroProp (EMC VI) S.A.
EUR489.775 Million Commercial Mortgage-Backed Floating-Rate Notes

Class             Rating
            To               From

Rating Lowered

F           D (sf)           CCC- (sf)

Ratings Unaffected

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



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


EXCEL MARITIME: Chapter 11 Petition Filed
-----------------------------------------
BankruptcyData reported that Excel Maritime Carriers and more
than 40 affiliated debtors filed for Chapter 11 protection with
the U.S. Bankruptcy Court in the Southern District of New York,
lead case number 13-23060.

According to the report, the Company, which owns and operates of
dry bulk carriers and provides worldwide seaborne transportation
services for dry bulk cargoes, is represented by Jay M. Goffman,
Esq., of Skadden, Arps, Slate, Meagher & Flom.

The Company concurrently announced that it has entered into an
agreement with its senior secure lenders on the terms of a
financial restructuring, the terms of which are substantially
similar to the previously-announced agreement in principle the
Company reached with the steering committee of its senior
lenders, the report related.  This agreement provides the Company
with up to $80 million of additional liquidity, significantly
strengthens its financial profile and positions Excel Maritime
for future growth and success.

Gabriel Panayotides, chairman of the board, explains, "We are
confident that we are taking the right actions and we believe
that the agreement that we signed today with our senior lenders
and the court-supervised process provide for a clear and
expedited path to strengthen our financial profile and position
Excel Maritime for future growth and success," the report cited.

Under the terms of the agreement Excel Maritime will receive the
following: (1) up to $50 million of capital as a result of an
agreement between the senior lenders and an entity affiliated
with the family of Mr. Panayotides (under the terms of that
agreement, this entity will receive a majority of the equity in
Excel Maritime) and (2) the release of an additional $30 million
of currently restricted cash, the report said.

According to documents filed with the Court, "Reduced cash flows
and liquidity, combined with the Debtors' overleveraged capital
structure, have left the Debtors struggling to service their
debt.  As a result, the Debtors have not been able to comply with
certain covenants in their loan agreements.  Industry forecasts
remain bleak, with low charter rates expected to persist, and
vessel values expected to remain under severe pressure."

                        About Excel Maritime

Based in Athens, Greece, Excel Maritime Carriers Ltd. --
http://www.excelmaritime.com/-- is an owner and operator of dry
bulk carriers and a provider of worldwide seaborne transportation
services for dry bulk cargoes, such as iron ore, coal and grains,
as well as bauxite, fertilizers and steel products.  Excel owns a
fleet of 40 vessels and, together with 7 Panamax vessels under
bareboat charters, operates 47 vessels (5 Capesize, 14 Kamsarmax,
21 Panamax, 2 Supramax and 5 Handymax vessels) with a total
carrying capacity of approximately 3.9 million DWT.  Excel Class
A common shares have been listed since Sept. 15, 2005, on the New
York Stock Exchange (NYSE) under the symbol EXM and, prior to
that date, were listed on the American Stock Exchange (AMEX)
since
1998.


* GREECE: Resumes Talks with Int'l Creditors on Aid Installment
---------------------------------------------------------------
Niki Kitsantonis at The New York Times reports that officials
representing Greece's international creditors were back in Athens
on Monday, three weeks after mass layoffs at the state
broadcaster ERT prompted a political crisis that led one party to
quit the shaky coalition government.

According to the New York Times, representatives of the troika of
creditors -- the European Commission, the European Central Bank
and the International Monetary Fund -- came to determine whether
the Greek authorities have made sufficient progress with their
economic overhauls to justify the release of the next installment
of aid for the country.

But before talks between the creditors and Greek officials began
on Monday, news reports suggested that the lenders planned to
release only part of the next installment of aid rather than the
full EUR8.1 billion, or US$10.6 billion, in order to keep
pressure on Athens to deliver on its pledges, the New York Times
relates.

The IMF, which last month conceded that the troika made major
missteps in Greece's first bailout in 2010, might have to suspend
loan payments to Greece if the authorities are unable to cover a
funding shortfall, the New York Times recounts.  The
organization's rules dictate that governments must have at least
12 months of financing secured to receive bailout money, the New
York Times says.

Although the IMF's admission of error had fueled hopes that the
creditors would adopt a more lenient approach, the Greek media
was dominated Monday by speculation that the government might be
asked to impose further austerity measures despite a deepening
recession and unemployment that has climbed to 27%, the New York
Times notes.

According to the New York Times, the reports cited a leaked
document, purportedly sent by the troika to Greek officials,
suggesting that the government might have to make fresh spending
cuts if it fails to collect adequate tax revenue and close a
funding shortfall of around EUR1 billion.  The gap is attributed
chiefly to the debts of the main health care provider, Eopyy, the
New York Times states.



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I R E L A N D
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PULS CDO 2007-1: S&P Lowers Ratings on Three Note Classes to D
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
PULS CDO 2007-1 Ltd.'s class A-1, A-2A, A-2B, B, C, and D notes.
At the same time, S&P has affirmed its rating on the class E
notes.

The rating actions follows S&P's review of the transaction using
the latest available performance reports and loan-level data the
portfolio manager provided to S&P on April, 25, 2013.  On the
April 2013 payment date, the class B, C, and D notes missed their
interest payments.  S&P has therefore lowered to 'D (sf)' its
ratings on the class B, C, and D notes.

S&P's ratings on the class A-1, A-2A, A-2B, B, C, and D notes
address timely payment of interest and ultimate payment of
principal.  S&P's rating on the class E notes addresses ultimate
payment of interest and principal.

"On the April 2013 payment date, the issuer's available interest
proceeds were insufficient to fully pay amounts due to the hedge
counterparty as well as interest on any of the rated notes--in
accordance with the interest priority of payments.  As a result,
and in accordance with the principal priority of payments, the
issuer used the available principal proceeds to make up the
interest shortfall on the class A-1, A-2A, and A-2B notes.  The
issuer used any remaining principal proceeds to partially repay
the principal amount outstanding on the class A-1 and A-2A notes.
Consequently, the class B, C, and D notes suffered an interest
shortfall, while the class E notes' interest continued to be
deferred in accordance with the priority of payments.  We note
that according to the transaction documents the class A-1 and A-2
notes are paid pro rata and pari passu, while within the class A-
2 notes, available interest and principal funds are applied first
toward the payment of the class A-2A notes, and second toward
payment of the class A-2B notes," S&P said.

"Since our last review on Jan. 24, 2012, the number of defaulted
obligors has increased to 23 from 19.  Over the same period, the
amount of defaults has increased to EUR123.3 million
(approximately 41% of the initial pool balances) from
EUR96.8 million (about 32% of the initial pool balance).  To
date, nine obligors have returned recoveries totaling
approximately EUR3.68 million or 3% of the total defaulted
notional," S&P noted.

"We calculate the remaining performing portfolio balance
(excluding defaults and repayments) to be EUR130 million,
comprising 31 bonds pertaining to 30 obligors.  The current
combined outstanding balance of the class A-1, A-2A, and A-2B
notes is EUR129.6 million.  In our view, this exposes the class
A-1 and A-2B notes in particular to the risk of principal
shortfalls.  According to the April 2013 portfolio manager
report, the manager currently considers one obligor (amounting to
EUR3 million) as credit impaired , while an additional four
obligors totaling EUR16.3 million are on the manager's credit
watch list, which mainly indicates a decrease in profitability or
a current challenging market environment.  In our opinion, the
available credit enhancement for the class A-1 and A-2B notes is
insufficient to cover the default of the smallest obligor
currently on this watch list.  Overall, the portfolio has high
concentration levels with the top obligor accounting for 7.3% of
the performing balance, and the top five obligors representing
close to 31.4% of the performing pool," S&P added.

"Furthermore, the worsening of the portfolio's performance has
contributed to a significant reduction in available interest
proceeds.  Consequently, the issuer has had to rely on principal
proceeds to fully pay amounts due to the hedge counterparty under
its fixed-to-floating interest rate hedge, as well as interest
due on the class A-1, A-2A and A-2B notes, which has further
depleted the source of principal repayment.  The current low
interest rate environment is aggravating this situation as it
reduces the floating amounts the issuer receives under the
interest rate swap, while keeping the amount that the issuer has
to pay fixed.  We also note that the swap notional amount exceeds
the performing asset balance by about EUR100.7 million.
Furthermore, given that the underlying assets are largely bullet
maturing in about one year, available periodic principal is
limited to principal received from unrated bonds were partial
repayment schedules have been agreed, and any prepayments or
recoveries.  All of the above factors expose the class A-1, A-2A,
and A-2B notes to the risk of nonpayment of interest, in our
view," S&P added.

As a result of the above developments, the class A-1, A-2A, and
A-2B notes are vulnerable to nonpayment, in S&P's view.  S&P has
therefore lowered to 'CCC- (sf)' from 'B (sf)' its rating on the
class A-1 notes, to 'CCC- (sf)' from 'BB (sf)' its rating on the
class A-2A notes, and to 'CCC- (sf)' from 'B (sf)' its rating on
the class A-2B notes.

At the same time, S&P has affirmed its 'CC (sf)' rating on the
deferrable interest class E notes to reflect the fact that any
payments to this class remain highly unlikely.

PULS CDO 2007-1 is a collateralized debt obligation (CDO)
transaction backed by a static portfolio of senior unsecured and
subordinated bonds issued by German, Austrian, and Swiss small
and midsize enterprises (SMEs).

          STANDARD & POOR'S 17-G7 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            Rating
            To                From

PULS CDO 2007-1 Ltd.
EUR300 Million Senior and Subordinated Deferrable
Floating-Rate Notes Series 2007-1

Ratings Lowered

A-1         CCC- (sf)         B (sf)
A-2A        CCC- (sf)         BB (sf)
A-2B        CCC- (sf)         B (sf)
B           D (sf)            CCC- (sf)
C           D (sf)            CCC- (sf)
D           D (sf)            CC (sf)

Rating Affirmed

E           CC (sf)


* IRELAND: Examinership Process Success Rate at 75% in First Half
-----------------------------------------------------------------
Fiona Reddan at The Irish Times, citing new statistics, reports
that three out of every four companies that concluded an
examinership process in the first half of the year exited
successfully, saving 680 jobs in the process according to new
statistics.

According to the Irish Times, the Hughes Blake SME Examinership
Index shows that the examinership process continues to be a
successful vehicle for saving small and medium businesses that
experience challenges, and a total of eleven SMEs successfully
emerged from examinership in the first half of this year.

Three-quarters of troubled firms were saved in the process, and
demand for examinership is increasing, with twice as many firms
concluding the examinership process in the first half of 2013
compared with the same period last year, the Irish Times
discloses.  The increased number of firms coming through the
process this year indicates both recessionary conditions which
are afflicting the Irish economy once again and the growth in
popularity of a mechanism that has been proven to be effective,
the Irish Times notes.  Last year in Q2, just five companies
concluded the examinership process, the Irish Times recounts.
This year, eleven concluded the process within the quarter, the
Irish Times discloses.

"The increasing popularity of the mechanism is no doubt largely
due to continuing difficulties in the state of the Irish economy.
However, it is also attributable to the fact that the process has
been shown to be very successful at saving businesses.  Some
well-known companies will continue to trade as a result of the
process including Pamela Scott, Monsoon and The Sunday Business
Post," the Irish Times quotes Neil Hughes, managing partner at
Hughes Blake, as saying.

More Leinster based firms use the process than those based
elsewhere in the country, the Irish Times states.  Neil Hughes,
managing partner at Hughes Blake, said this is not unexpected as
the High Court remains the only place where examinerships can be
carried out, according to the Irish Times.



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


ILVA: Trade Unions Seek Production Alliance with Lucchini
---------------------------------------------------------
Silvia Antonioli at Reuters reports that trade unions asked the
Italian government last week to promote a production alliance
between Italy's two largest steel producers, ILVA and Lucchini,
to help the troubled firms stave off further declines.

"Only by pushing forward production integration among the largest
Italian steel players can we think of getting out of this tough
situation.  No plant can save itself on its own," Reuters quotes
Gianni Venturi, national coordinator for the steel sector at
union CGIL FIOM, as saying.

According to Reuters, the government has put troubled producers
ILVA and Lucchini under "special administration", a procedure
designed to save large companies and avoid big job losses.

Earlier this month, it appointed restructuring specialist Enrico
Bondi as special commissioner to run ILVA and oversee a two-year
cleanup of its plant in the southern Italian city of Taranto at
the center of an environmental scandal, Reuters relates.

Lucchini, Italy's second-largest producer, was placed under
special administration late last year after being declared
insolvent, Reuters recounts.

Italy's top union bosses suggested in a meeting with industry and
government officials last week that Lucchini should boost
production in order to supply semi-finished products to ILVA's
Taranto plant to fill the gap while the plant cuts production to
carry out the clean-up, Reuters discloses.

Reuters notes that the unions proposed Lucchini's plant in
Piombino, Tuscany, which is currently producing below its maximum
capacity due to lack of funding, could produce steel slab to be
re-rolled at the ILVA processing facility.

State Secretary for economic development, Claudio De Vincenti, as
cited by Reuters, said the commissioners in charge of the two
companies would have to determine whether such cooperation is
possible.

ILVA is an Italian steel mill.


SPRINGER: S&P Affirms 'B' Corp. Credit Rating; Outlook Stable
-------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook to stable
from positive on professional publisher Springer Science+Business
Media S.A. (Springer).  At the same time, S&P affirmed its 'B'
long-term corporate credit rating on the group.

S&P left unchanged its 'B+' issue rating on Springer's existing
senior secured debt, one notch above the corporate credit rating.
The '2' recovery rating on this debt remains unchanged,
reflecting S&P's expectation of substantial (70%-90%) recovery in
the event of a payment default.  S&P left unchanged its 'CCC+'
issue rating on the group's existing EUR547 million mezzanine
debt, two notches below the corporate credit rating.  The '6'
recovery rating on this debt remains unchanged, reflecting S&P's
expectation of negligible (0%-10%) recovery in the event of a
payment default.

"We have revised the outlook because we no longer see any
potential for an upgrade in the coming 12 months, following the
recent agreement by the current owners of Springer, private
equity houses EQT Partners and GIC, to sell a majority stake of
the group to BC Partners for a total consideration of about
EUR3.3 billion. While full details of the proposed transaction
are not yet available, we understand that Springer's debt to
EBITDA would significantly increase to about 8x in 2013 from
about 6.2x at year-end 2012.  We view the group's financial
policy as "very aggressive" in light of the likely substantial
releveraging," S&P said.

"Our affirmation of the ratings reflects our expectation that
Springer's leverage will steadily decline under the proposed
financing, thanks to nominal EBITDA growth and the application of
a significant proportion of free cash to debt reduction through a
cash sweep mechanism.  The affirmation also reflects our forecast
of the group's sound free cash flow generation despite the
additional debt burden and EBITDA that would cover more than 2x
adjusted interest (which excludes accruing interest on the
group's proposed shareholder loans) post transaction, which is
commensurate with the current long-term rating," S&P noted.

S&P understands that the sale agreement would be subject to
completion of the proposed financing as well as receipt of anti-
trust approvals in some of the group's key markets.  The group
expects to complete the proposed transaction by early August
2013.

"We think that Springer may report flat revenues in 2013 as a
result of some noncore and underperforming asset sales made in
the first quarter of 2013 within its scientific, medical, and
technical (STM), healthcare, and professional publishing
businesses.  However, we forecast low- to mid-single-digit like-
for-like revenue growth for full-year 2013 on sound performance
at the group's STM business thanks to high and steady renewal
rates. The STM unit accounts for about 84% of group revenues and
an even higher percentage of total EBITDA.  We believe other
growth drivers will include the group's ability to continue
increasing its revenue on key portfolio titles and its broad
product offering, which should sustain the use of journals and
electronic books," S&P said.

"Our assessment of Springer's business risk profile as
"satisfactory" mainly reflects its strong position as the world's
largest publisher of STM books and second-largest publisher of
STM journals.  The group generates a high proportion of stable
and recurring subscription sales, and solid profitability through
its STM business.  Tempering these positive factors is our
opinion that STM publishers are likely to remain in a difficult
pricing environment over the next few years owing to budgetary
constraints facing libraries and other institutional customers.
Our assessment of Springer's financial risk profile as "highly
leveraged" mainly reflects its very high debt burden under the
proposed financing, and our expectation of steady gross debt
deleveraging--excluding shareholder loans--over the next few
years," S&P added.

"The stable outlook reflects our view that Springer's credit
metrics will likely remain commensurate with a 'B' long-term
rating over the next 12 months under the proposed capital
structure.  The outlook also reflects our expectation that
Springer's steady operating performance and sound FOCF generation
should enable the group to steadily reduce adjusted leverage--
excluding shareholder loans--over the next 12 months and that the
group's liquidity will remain adequate during the period.
Furthermore, we believe that, if the proposed transaction doesn't
complete over the next two months, the current owners are likely
to continue looking for a monetization of their stake in the
short term, which could also result in a releveraging of the
group.  S&P considers a ratio of adjusted EBITDA interest
coverage of over 1.3x--equivalent to 2.0x excluding the
shareholder loans accruing interest--to be commensurate with the
current rating.

S&P could lower the ratings if Springer's EBITDA contracted
substantially over the next 12 months, resulting in significant
weakening of liquidity, or if the group generated significant
negative free cash flow.  S&P could also consider a negative
rating action if the adjusted EBITDA interest coverage ratio fell
below 2.0x excluding the shareholder loans accruing interest, or
if the group made significant and credit-dilutive acquisitions.

S&P do not see any rating upside at this point, as the rating
already includes its deleveraging expectations for Springer under
the new proposed capital structure over the next 12 months.
However, S&P could consider raising the ratings if the group
managed to achieve adjusted cash interest coverage of 2.5x,
excluding shareholder loans accruing interest, and continued
generating positive free cash flow, while approaching adjusted
debt to EBITDA of 6x excluding shareholder loans.



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


DUCHESS I CDO: S&P Reinstates 'CCC-' Rating on Class B Notes
------------------------------------------------------------
Standard & Poor's Ratings Services reinstated its 'AA- (sf)' and
'CCC- (sf)' credit ratings on Duchess I CDO S.A.'s class A-2 and
B notes, respectively.

On June 29, 2013, S&P withdrew its ratings on the class A-2 and B
notes in error.  S&P has reinstated its ratings on the notes at
the rating levels at which it withdrew them.

Duchess I CDO is a cash flow collateralized debt obligation (CDO)
transaction that closed in June 2001.

          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



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


CENTRAL EUROPEAN: Had US$79.4 Million Net Loss in First Quarter
---------------------------------------------------------------
Central European Distribution Corporation filed with the U.S.
Securities and Exchange Commission its quarterly report on Form
10-Q disclosing a net loss attributable to the Company of
US$79.45 million on US$328.07 million of sales for the three
months ended March 31, 2013, as compared with net income
attributable to the Company of US$60.18 million on US$321.75
million of sales for the same period during the prior year.

As of March 31, 2013, the Company had US$1.52 billion in total
assets, US$1.75 billion in total liabilities, US$29.44 million in
temporary equity, and a US$252.66 million total stockholders'
deficit.

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

                        http://is.gd/oKFN8L

                   Terminates E&Y as Accountants

CEDC notified Ernst & Young Audit Sp. z o.o. that it was being
dismissed as the Company's independent registered public
accountant.  The audit relationship ceased on June 28, 2013, upon
EY's completion of review of the Company's interim condensed
consolidated financial statements as of March 31, 2013, and for
three-month period then ended.

The reports of E&Y on the consolidated financial statements of
the Company as of and for the fiscal years ended Dec. 31, 2012,
and 2011, did not contain an adverse opinion or a disclaimer of
opinion and were not qualified or modified as to uncertainty,
audit scope, or accounting principles, except that:

   (i) E&Y's report dated June 17, 2013, was modified to indicate
       that the consolidated financial statements included in the
       Form 10-K/A dated Oct. 4, 2012, had been restated to
       correct certain errors resulting from improper accounting
       for deferred tax assets and liabilities relating to the
       acquisition of the Russian Alcohol Group in 2009; and

  (ii) E&Y's report dated Oct. 4, 2012, was modified to include
       an emphasis of matter regarding substantial doubt about
       the Company's ability to continue as a going concern and
       also to indicate that the Company has restated its
       consolidated financial statements as of Dec. 31, 2011, and
       for the year then ended to correct certain errors.

The Company currently intends to appoint PricewaterhouseCoopers
Sp. z o.o. as its independent registered public accountant.
However, PwC has not yet been engaged.

                             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.

On April 7, 2013, CEDC and two subsidiaries sought bankruptcy
protection under Chapter 11 of the Bankruptcy Code (Bankr. D.
Del. Lead Case No. 13-10738) with a prepackaged Chapter 11 plan
that reduces debt by US$665.2 million.

Attorneys at Skadden, Arps, Slate, Meagher & Flom LLP serve as
legal counsel to the Debtor.  Houlihan Lokey is the investment
banker.  Alvarez & Marsal will provide the chief restructuring
officer. GCG Inc. is the claims and notice agent.

The Bankruptcy Court approved the Disclosure Statement and
confirmed the Second Amended and Restated Joint Prepackaged Plan
of Reorganization.  CEDC's Plan, which won approval from the
U.S. Bankruptcy Court for the District of Delaware on May 13,
2013, was declared effective on June 5.


POLIMEX: One Creditor Fails to Sign Debt Payment Extension Deal
---------------------------------------------------------------
Piotr Skolimowski at Bloomberg News reports that Polimex said in
a regulatory filing on July 1 one of the company's 31 creditors
failed to sign an agreement to allow for extending debt payment
time.

All creditors had to sign the extension agreement by the end of
July 1, Bloomberg notes.

Polimex said in a regulatory filing on June 29 that the company
asked creditors to extend the deadline and spread payment over
time, Bloomberg relates.

Polimex-Mostostal is a Polish engineering and construction
company that has been on the market since 1945.  The Company is
distinguished by a wide range of services provided on general
contractorship basis for the chemical as well as refinery and
petrochemical industries, power engineering, environmental
protection, industrial and general construction.  The Company
also operates in the field of road and railway construction as
well as municipal infrastructure.  Polimex-Mostostal is the
largest manufacturer and exporter of steel products, including
platform gratings, in Poland.



===============
P O R T U G A L
===============


BANCO FINANTIA: Moody's Raises Class C Notes' Rating From Ba3
-------------------------------------------------------------
Moody's Investors Service has affirmed and confirmed the ratings
on the Class B and Class D notes, respectively, and upgraded the
class C notes from Ba3 (sf) to Baa3 (sf) in LTR Finance No. 6
plc. (LTR 6). Sufficient levels of credit enhancement, which
protect against sovereign and counterparty risk, primarily drove
the rating actions. This transaction is an asset-backed
securities (ABS) transaction backed by Portuguese (85.0%) and
Spanish (15.0%) auto receivables originated by Banco Finantia
S.A. (not rated). The outstanding securitized receivables are
predominantly auto loans - 80.0% of the current outstanding
portfolio - besides auto lease and long-term rental receivables
which make up 20.0% of the portfolio. These rating actions
conclude the review for downgrade initiated by Moody's on
September 11, 2012.

Ratings Rationale:

These rating actions primarily reflect the availability of
sufficient credit enhancement to address sovereign and increased
counterparty risk. The current credit enhancement levels are
94.4% for the Class B notes, 45.6% for the Class C notes and
23.7% for the Class D notes. Credit enhancement has built up to
these levels as a result of the deleveraging since the end of the
revolving period in November 2009.

The introduction of new adjustments to Moody's modeling
assumptions to account for the effect of deterioration in
sovereign creditworthiness has had no negative effect on the
ratings in this transaction.

- Additional Factors Better Reflect Increased Sovereign Risk

Moody's has supplemented its analysis to determine the loss
distribution of securitized portfolios with two additional
factors, the maximum achievable rating in a given country (the
local currency country risk ceiling) and the applicable portfolio
credit enhancement for this rating. With the introduction of
these additional factors, Moody's intends to better reflect
increased sovereign risk in its quantitative analysis, in
particular for mezzanine and junior tranches.

The Portuguese country ceiling is Baa3, which is the maximum
rating that Moody's will assign to a domestic Portuguese issuer
including structured finance transactions backed by Portuguese
receivables. The portfolio credit enhancement represents the
required credit enhancement under the senior tranche for it to
achieve the country ceiling. By lowering the maximum achievable
rating, the revised methodology alters the loss distribution
curve and implies an increased probability of high loss
scenarios.

Under the updated methodology incorporating sovereign risk on ABS
transactions, loss distribution volatility increases to capture
increased sovereign-related risks. Given the expected loss of a
portfolio and the shape of the loss distribution, the combination
of the highest achievable rating in a country for structured
finance and the applicable credit enhancement for this rating
uniquely determine the volatility of the portfolio distribution,
which the coefficient of variation (CoV) typically measures for
ABS transactions. A higher applicable credit enhancement for a
given rating ceiling or a lower rating ceiling with the same
applicable credit enhancement both translate into a higher CoV.

- Moody's Revises Key Collateral Assumptions

Following Moody's update of its methodology, the rating agency
increased the CoV, which is a measure of volatility, to 71.6%
from 35.0%. Together with the updated assumption on the mean
default rate of 10.0% on current pool balance and the recovery
rate of 20.0%, this volatility increase corresponds to a
portfolio credit enhancement of 24.0%.

- Counterparty Exposure Has Increased

The conclusion of Moody's rating review also takes into
consideration the increased counterparty exposure due to weakened
counterparty creditworthiness. Banco Finantia and its subsidiary
Sonfinloc (not rated) act as servicers and Natixis (A2/P-1) acts
as swap counterparty in this transaction.

All issuer accounts including the reserve account reside at HSBC
Bank plc. (Aa3/P-1). In Moody's view, the P-1 rating of the
issuer account bank minimizes the risk of losing monies on the
issuer accounts. In addition, the fact that the servicer
transfers estimated collections daily to the issuer account limit
the commingling loss on the collections.

The rating agency also assessed the exposure to Natixis as the
swap counterparty, which does not have a negative effect on the
rating levels at this time.

- Other Developments May Negatively Affect the Notes

In consideration of Moody's new adjustments, any further
sovereign downgrade would negatively affect structured finance
ratings through the application of the country ceiling or maximum
achievable rating, as well as potentially increased portfolio
credit enhancement requirements for a given rating.

As the euro area crisis continues, the ratings of structured
finance notes remain exposed to the uncertainties of credit
conditions in the general economy. The deteriorating
creditworthiness of euro area sovereigns as well as the weakening
credit profile of the global banking sector could further
negatively affect the ratings of the notes.

Moody's describes additional factors that may affect the ratings
in the Request for Comment, "Approach to Assessing Linkage to
Swap Counterparties in Structured Finance Cashflow Transactions:
Request for Comment", July 2, 2012.

In reviewing this transaction, Moody's used ABSROM to model the
cash flows and determine the loss for each tranche. The cash flow
model evaluates all default scenarios that are then weighted
considering the probabilities of the lognormal distribution
assumed for the portfolio default rate. In each default scenario,
Moody's calculates the corresponding loss for each class of notes
given the incoming cash flows from the assets and the outgoing
payments to third parties and noteholders. Therefore, the
expected loss for each tranche is the sum product of the
probability of the occurrence of each default scenario and the
loss derived from the cash flow model in each default scenario
for each tranche.

As such, Moody's analysis encompasses the assessment of stressed
scenarios.

When remodeling this transaction affected by the rating action,
Moody's adjusted some inputs to reflect the new approach.

Methodologies:

The methodologies used in this rating were "Moody's Approach to
Rating Auto Loan-Backed ABS", published in May 2013 and "The
Temporary Use of Cash in Structured Finance Transactions:
Eligible Investment and Bank Guidelines", published in March
2013.

The revised approach to incorporating country risk changes into
structured finance ratings forms part of the relevant asset class
methodologies, which Moody's updated and republished or
supplemented on March 11, 2013, along with the publication of its
Special Comment "Structured Finance Transactions: Assessing the
Impact of Sovereign Risk".

List of Affected Ratings:

Issuer: LTR Finance No. 6 plc.

EUR35M B Notes, Affirmed Baa3 (sf); previously on Sep 11, 2012
Downgraded to Baa3 (sf)

EUR30.6M C Notes, Upgraded to Baa3 (sf); previously on Sep 11,
2012 Ba3 (sf) Placed Under Review for Possible Downgrade

EUR13.15M D Notes, Confirmed at B3 (sf); previously on Sep 11,
2012 B3 (sf) Placed Under Review for Possible Downgrade


NOVA FINANCE: Moody's Raises Rating on Class C Notes to 'Ba3'
-------------------------------------------------------------
Moody's Investors Service has upgraded by two to four notches the
senior and mezzanine tranches of Nova Finance No. 4 Limited. At
the same time, Moody's confirmed the ratings of the junior
tranche at Caa1 (sf). Sufficient credit enhancement, which
protects against sovereign and counterparty risk, primarily drove
the rating upgrades and confirmation.

The rating action concludes the review for downgrade initiated by
Moody's on September 11, 2012. The transaction is a Portuguese
asset-backed securities transaction backed by consumer loans to
individuals (Consumer ABS) that were originated by Banco
Comercial Portugues, S.A. (B1/NP).

Ratings Rationale:

The rating action primarily reflects the availability of
sufficient credit enhancement to address sovereign and increased
counterparty risk. The introduction of new adjustments to Moody's
modeling assumptions to account for the effect of deterioration
in sovereign creditworthiness has had no effect on the rating of
the junior Class D notes which is confirmed at Caa1 (sf).
Furthermore, the current level of credit enhancement available
under the Class A notes (42.6%), the Class B notes (33.9%) and
the Class C notes (23.1%) in the form of subordination and
reserve fund is sufficient to support the following upgrades: to
Baa3 (sf) from Ba2 (sf) for the Class A notes, to Ba1 (sf) from
B2 (sf) for the Class B notes and to Ba3 (sf) from B3 (sf) for
the Class C notes.

- Additional Factors Better Reflect Increased Sovereign Risk

Moody's has supplemented its analysis to determine the loss
distribution of securitized portfolios with two additional
factors, the maximum achievable rating in a given country (the
local currency country risk ceiling) and the applicable portfolio
credit enhancement for this rating. With the introduction of
these additional factors, Moody's intends to better reflect
increased sovereign risk in its quantitative analysis, in
particular for mezzanine and junior tranches.

The Portuguese country ceiling is Baa3, which is the maximum
rating that Moody's will assign to a domestic Portuguese issuer
including structured finance transactions backed by Portuguese
receivables. The portfolio credit enhancement represents the
required credit enhancement under the senior tranche for it to
achieve the country ceiling. By lowering the maximum achievable
rating, the revised methodology alters the loss distribution
curve and implies an increased probability of high loss
scenarios.

Under the updated methodology incorporating sovereign risk on ABS
transactions, loss distribution volatility increases to capture
increased sovereign-related risks. Given the expected loss of a
portfolio and the shape of the loss distribution, the combination
of the highest achievable rating in a country for structured
finance and the applicable credit enhancement for this rating
uniquely determines the volatility of the portfolio distribution,
which the coefficient of variation (CoV) typically measures for
ABS transactions. A higher applicable credit enhancement for a
given rating ceiling or a lower rating ceiling with the same
applicable credit enhancement both translate into a higher CoV.

- Moody's Revises Key Collateral Assumptions

Moody's revised its default and recovery rate assumptions for the
transaction to 1) 9% of current balance for future defaults --
equivalent to a 3% default assumption over original balance and
replenishment (down from 4.75%) and 2) 15% recovery rate (up from
initially 10%). The revision of both rating assumptions was
driven by better-than-expected performance. The cumulative
default probability over original balance and replenishment
stands currently at 2.1%. The observed recovery rate exceeds 25%
while the delinquencies beyond 90 days follow a declining trend
at approximately 2.5% as of end of March 2013 versus 2.9% as of
March 2012.

According to the updated methodology, Moody's increased the CoV
from 40% to 71.2%, which, combined with the revised key
collateral assumptions, corresponded to a portfolio credit
enhancement of 23%.

- Moody's Has Considered Exposure to Counterparty Risk

The conclusion of Moody's rating review also takes into
consideration the increased commingling risk and potential risk
that borrowers set off their deposits against outstanding loans.

In the transaction, BCP acts as servicer and transfers
collections on a daily basis to the issuer account bank (Citibank
(A3/P-2)). Moody's has incorporated into its analysis the
potential default of BCP as servicer, which could expose the
transaction to a loss of one month of collections.

In addition, Moody's assumed that approximately 8% of the pool
would be exposed to set-off risk in an originator insolvency
scenario, based on past information, as the rating agency was not
provided with the actual figure by the originator. The increased
set-off risk resulting from the downgrade of the originator to B1
from Ba3 on December 4, 2012 did not have a negative impact on
the notes rating.

- Other Developments May Negatively Affect the Notes

In consideration of Moody's new adjustments, any further
sovereign downgrade would negatively affect structured finance
ratings through the application of the country ceiling or maximum
achievable rating, as well as potentially increased portfolio
credit enhancement requirements for a given rating.

As the euro area crisis continues, the ratings of structured
finance notes remain exposed to the uncertainties of credit
conditions in the general economy. The deteriorating
creditworthiness of euro area sovereigns as well as the weakening
credit profile of the global banking sector could further
negatively affect the ratings of the notes.

Moody's describes additional factors that may affect the ratings
in its Request for Comment, "Approach to Assessing Linkage to
Swap Counterparties in Structured Finance Cashflow Transactions:
Request for Comment", July 2, 2012.

In reviewing this transaction, Moody's used ABSROM to model the
cash flows and determine the loss for each tranche. The cash flow
model evaluates all default scenarios that are then weighted
considering the probabilities of the lognormal distribution
assumed for the portfolio default rate. In each default scenario,
Moody's calculates the corresponding loss for each class of notes
given the incoming cash flows from the assets and the outgoing
payments to third parties and noteholders. Therefore, the
expected loss for each tranche is the sum product of the
probability of occurrence of each default scenario and the loss
derived from the cash flow model in each default scenario for
each tranche.

As such, Moody's analysis encompasses the assessment of stressed
scenarios.

In the context of the rating review, Moody's has remodeled the
transaction and adjusted a number of inputs to reflect the new
approach.

Methodologies:

The methodologies used in this rating were "Moody's Approach to
Rating Consumer Loan ABS Transactions", published in May 2013 and
"The Temporary Use of Cash in Structured Finance Transactions:
Eligible Investment and Bank Guidelines", published in March
2013.

List of Affected Ratings:

Issuer: Nova Finance No. 4 Limited

EUR644M A Notes, Upgraded to Baa3 (sf); previously on Sep 11,
2012 Ba2 (sf) Placed Under Review for Possible Downgrade

EUR14M B Notes, Upgraded to Ba1 (sf); previously on Sep 11, 2012
B2 (sf) Placed Under Review for Possible Downgrade

EUR17.5M C Notes, Upgraded to Ba3 (sf); previously on Sep 11,
2012 B3 (sf) Placed Under Review for Possible Downgrade

EUR24.5M D Notes, Confirmed at Caa1 (sf); previously on Sep 11,
2012 Caa1 (sf) Placed Under Review for Possible Downgrade



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


SMP BANK: Moody's Affirms 'B3' Deposit Ratings; Outlook Stable
--------------------------------------------------------------
Moody's Investors Service has affirmed SMP Bank's B3 long-term
local- and foreign-currency deposit ratings, Not Prime short-term
local- and foreign-currency deposit ratings, the B3 long-term
global local-currency debt rating and the E+ standalone bank
financial strength rating (BFSR), equivalent to a baseline credit
assessment (BCA) of b3. The outlook on the bank's BFSR and long-
term deposit and debt ratings remains stable.

Ratings Rationale:

According to Moody's, the rating action reflects the rating
agency's assessment of the overall stability in SMP Bank's credit
profile, which remains constrained by (1) mediocre profitability,
with a return on average assets of 0.9% at year-end 2012,
stemming from modest interest margin and higher operating costs;
(2) modest capital adequacy; (3) single-name concentration in the
bank's loan portfolio. At the same time, SMP Bank's ratings are
underpinned by the bank's (1) improved territorial coverage; (2)
sufficient liquidity buffer, and (3) relatively low level of
problem loans.

In 2012, SMP Bank's net income increased to RUB1.2 billion, up
from RUB1.1 billion in 2011, which translated to a modest return
on average assets of around 0.9% (2011: 1.2%). Moody's notes that
the bank's profitability was pressured by narrow net interest
margin of around 1.9% in 2012 and that the bank remained reliant
on a volatile non-recurring income source, as almost 40% of
operating income in 2012 was contributed by gains on financial
instruments and was partly derived from transactions with related
parties. At the same time, profitability was supported by good
asset quality which led to a low level of loan loss provisions.

In 2012, SMP Bank's asset quality indicators remained good
following their material improvement in 2010-11. According to the
audited IFRS statement for 2012, impaired loans decreased by 4%
in nominal terms and accounted for around 5% of gross loans
(2011: 9%). Non-performing loans (overdue more than 90 days)
accounted for only 1.74% of gross loans at year-end 2012 (2011:
2.5%) and were sufficiently covered by loan loss reserves.
However, Moody's says that SMP Bank's high credit concentration
in the loan portfolio represents a key risk challenge for asset
quality and capital.

In recent years, SMP Bank's capital adequacy levels have been
pressured by the bank's asset growth. As a result, SMP Bank's
Tier 1 capital adequacy ratio declined to 7.2% in 2012 (2011:
8.65%), while the total capital adequacy ratio (CAR) increased
marginally to 12.11% in 2012 (2011: 11.28%) supported by the
injection of Tier 2 capital.

According to Moody's, SMP Bank has maintained a sufficient
liquidity buffer, supported by its growing customer base along
with reasonable cushion of liquid assets (around 20% of total
assets at end-April 2013) mainly represented by cash and funds on
nostro accounts. The liquidity buffer increased during the first
four months of 2013 because the bank has reduced its fixed-income
portfolio while the loan book has not grown.

What Could Move The Ratings Up/Down

Any upgrade of SMP Bank's ratings will be contingent on the
bank's ability to (1) reduce its single-borrower
concentrations;(2) materially improve its core profitability
(without increasing dependence on related-party transactions) and
capital adequacy levels while also demonstrating a sustained
track record of adequate liquidity profile and asset quality
metrics. Downward pressure could be exerted on SMP Bank's ratings
by any material adverse changes in the bank's risk profile,
particularly significant impairment of the bank's liquidity
profile, material deterioration of asset quality.

The principal methodology used in this rating was Global Banks
published in May 2013.



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


EROSKI: May Declare Bankruptcy Soon Over Huge Debt
--------------------------------------------------
Eleconomista reports that with an accumulated debt of EUR2,830
million, the Basque chain Eroski can no longer compete with
current price wars and might declare bankruptcy soon.

In 2011, the mega supermarkets in the region of Madrid were sold
in a bid to revive the core business, but this was not enough to
curb the downward spiral, Eleconomista discloses.

From 2008, the company suffered huge losses, Eleconomista
relates.  The chain did not adapt to the new demands of
consumers, Eleconomista says.  A part of the work force, of which
25% was let go, is integrated into other companies, Eleconomista
states.  Eroski could not compete with the low prices of its
competitors, Eleconomista notes.

According to Eleconomista, to cope with the growing debt, the
cooperative has developed a strategy for 2013-2016, which is
aimed at reducing costs and lowering prices.  A new orientation
is toward revised concepts for hypermarkets and convenience
stores, and customer loyalty, Eleconomista says.


PRIVATE MEDIA GROUP: Incurs US$485,000 Net Loss in First Quarter
----------------------------------------------------------------
Private Media Group, Inc., on June 28, 2013, filed with the U.S.
Securities and Exchange Commission its quarterly report on Form
10-Q for the three months ended March 31, 2013.  Concurrently
with the Form 10-Q filing, the Company also filed its 2012 annual
report and 2012 periodic reports.

As a result of the recent change of management prior to the end
of fiscal quarter ended March 31, 2012, and because new
management was unable to obtain or locate certain of the
financial information necessary to complete the preparation of
the Company's Form 10-Q for the quarter ended March 31, 2012, the
Company was unable to file its quarterly report and the
succeeding periodic reports within the prescribed time period.

The Group incurred a net loss of EUR379,000 (US$485,000) on
EUR1.49 million of net sales for the three months ended March 31,
2013, as compared with a net loss of EUR921,000 on EUR1.70
million of net sales for the same period during the prior year.

As of March 31, 2013, the Company had US$9.06 million in total
assets, US$9.40 million in total liabilities, US$10.24 million in
EUR 10.00 Series B 6% Convertible Redeemable Preferred Stock, and
a US$10.58 million total shareholders' deficit.

The Group had a net loss of EUR2.31 million(US$3.04 million) on
EUR6.69 million of net sales for the year ended Dec. 31, 2012, as
compared with a net loss of EUR29.32 million on EUR7.92 million
of net sales for the year ended Dec. 31, 2011.

BDO Auditores, S.L., in Barcelona, Espana, issued a "going
concern" qualification on the consolidated financial statements
for the year ended Dec. 31, 2012.  The independent auditors noted
that the Group has suffered recurring losses from operations,
and, at Dec. 31, 2012, have a working capital deficit and a
negative equity position.  These factors raise substantial doubt
about its ability to continue as a going concern.

Copies of the Reports are available for free at:

          (a) 2012 10K http://is.gd/hPGEZY
          (b) Q1 2012  http://is.gd/sguYwD
          (c) Q2 2012  http://is.gd/C4KP8Q
          (d) Q3 2012  http://is.gd/GCuNrN
          (e) Q1 2013  http://is.gd/Vg7DBY

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
Gibraltar.



=====================
S W I T Z E R L A N D
=====================


BARRY CALLEBAUT: Moody's Rates US$400MM Sr. Unsecured Notes Ba1
---------------------------------------------------------------
Moody's Investors Service has assigned a definitive Ba1 rating
with a loss given default assessment of 4 (LGD 4) to Barry
Callebaut's US$400 million senior unsecured note issuance due
2023, issued by Barry Callebaut Services N.V., a fully owned and
guaranteed subsidiary of Barry Callebaut AG, following a review
of final documentation. All other ratings, including Barry
Callebaut's Ba1 corporate family rating, the Ba1 ratings on the
company's existing EUR350 million of senior notes due 2017 and
EUR250 million of senior notes due 2021 and the Ba1-PD
probability of default rating (PDR), remain unchanged. The
outlook on all ratings is stable.

Ratings Rationale:

Moody's assignment of a definitive Ba1 rating to Barry
Callebaut's senior unsecured notes due 2023 is in line with the
provisional (P) Ba1 rating assigned on June 4, 2013. The notes
rank pari passu with all of the issuer's other senior unsecured
debt.

Barry Callebaut will use the proceeds of the offering to part-
fund the acquisition of the Cocoa Ingredients Division of Petra
Foods Ltd, which is expected to close in summer 2013.

Moody's notes that the size of the issuance has reduced to $400
million (with estimated gross proceeds of US$392.5 million) from
US$600 million at the time of assigning the (P) Ba1 rating. The
reduction in size of the issuance reflects market conditions,
with the company reporting that pricing was higher than
anticipated at a coupon of 5.5% per annum. This compares to a
coupon of 5.375% for the notes maturing in 2021. The new issuance
will be used to part-fund the Petra acquisition, with the balance
funded by the existing bridge loan negotiated for the
acquisition. The bridge loan will now need to finance a higher
amount of the Petra transaction, due to the lower level of note
issuance, which reduces the company's financial flexibility over
the next 12 months. Moody's rating incorporates the expectation
of a successful refinancing of the bridge loan into longer-dated
term debt in the short term.

- Ba1 Senior Unsecured Instrument Rating And Ba1-PD PDR

The Ba1 rating on the new senior unsecured notes reflects that
they rank pari passu with all of Barry Callebaut's other senior
unsecured debt, including its existing EUR350 million of senior
notes due 2017, its EUR250 million of senior notes due 2021 and
the senior revolving credit facility due 2016. Whilst Barry
Callebaut will assume around US$43 million of local Petra debt on
completion, this is not material from a structural subordination
perspective, especially given that the company intends to repay
the facility within one year of completion. The Ba1 senior
unsecured notes rating is in line with Barry Callebaut's CFR and
the existing senior unsecured instrument ratings. This reflects
the lack of significant structural subordination and that the
notes are fully guaranteed by Barry Callebaut AG. The company's
probability of default (PDR) rating of Ba1-PD reflects the use of
a 50% family recovery rate, consistent with a bank and bond
capital structure.

The new notes are guaranteed on a senior basis by the issuer's
direct parent company, Barry Callebaut AG, and certain of its
material subsidiaries that also guarantee the existing 2017 and
2021 notes and the amended revolving credit facility. As at
August 31, 2012, the issuer and the guarantors represented
approximately 74% of the company's EBIT and 82% of its net sales
on a consolidated basis.

The new senior notes benefit from negative pledge, change-of-
control (investor put at 101%) and cross-acceleration provisions,
consistent with a cross-over credit covenant structure.

The company's liquidity consists of the EUR600 million revolving
credit facility (recently amended to accommodate the Petra
acquisition) as well as a EUR400 million commercial paper program
and a EUR275 million asset-backed security program. Moody's
considers that following the transaction, these facilities should
be sufficient to fund the company's growth strategy and to cover
potentially higher levels of volatility in working capital cycles
owing to fluctuations in cocoa prices. That said, the rating
agency anticipates that the cost of financing under the
commercial paper program will have increased following the recent
downgrade of Barry Callebaut's long-term issuer rating to Ba1
from Baa3 in May 2013. Again, the rating assumes a successful
refinancing of the bridge loan for the Petra transaction during
the next 12 months.

- Ba1 CFR

Barry Callebaut's Ba1 CFR reflects the fact that recent
acquisitions, infrastructure investments and costs associated
with outsourcing contracts have weakened Barry Callebaut's key
credit metrics, which Moody's expects to remain in high-yield
territory for the foreseeable future. Further, the Petra
transaction -- which the company expects to complete in summer
2013 -- will test Barry Callebaut's ability to turn around the
financial performance of a large business. Barry Callebaut is
reliant on politically unstable countries such as Cote d'Ivoire
for the supply of cocoa beans. Whilst Moody's recognizes that the
political situation in C“te d'Ivoire has stabilized since the
turmoil in 2011, and that Barry Callebaut has begun diversifying
to countries with a more stable political environment such as
Malaysia and Indonesia (and Brazil through the Petra
acquisition), the company remains significantly exposed to
politically unstable countries. This adds to existing supply
disruption risks, although these are inherent to the industry.

However, more positively, the rating also reflects Barry
Callebaut's established presence in all major global markets, and
its focus on diversifying the current Europe-based revenues
towards new markets such as Brazil, Russia, India, China and
Mexico, which typically display higher growth prospects. Through
the Petra acquisition, Barry Callebaut will further expand its
operations in Singapore, Malaysia and Indonesia and gain new
facilities in Thailand. The company's rating also reflects the
resilience of its hedging policy to volatile cocoa bean prices.
Barry Callebaut's cost-plus business model, which covers around
80% of its sales volumes, has proved successful in recent years
and enabled it to sustain fairly stable operating margins levels,
despite volatile cocoa bean prices. Moody's expects that Petra's
less successful cocoa hedging strategies will be replaced by
Barry Callebaut's.

Outlook

The stable outlook on the ratings reflects Barry Callebaut's
solid business profile and operating performance. It also
reflects Moody's expectation that the company's key credit
metrics will weaken over the next three to five financial years
if the Petra acquisition completes. Regardless of whether or not
the transaction closes, Moody's expects Barry Callebaut's metrics
to weaken over the next 12-18 months as a result of the company's
recent significant investment activity. To the extent that
deleveraging is delayed beyond the expected timeframe, the
company's ratings would likely experience downward pressure.

What Could Change The Rating Down/Up

Negative pressure could be exerted on the rating if Barry
Callebaut's credit metrics were to remain weak, with adjusted
retained cash flow (RCF)/net debt in the mid-teens in percentage
terms and adjusted leverage above 3.75x. Negative rating pressure
could also occur if the company were unable to maintain its
adjusted EBITDA margins at high single-digit levels, or if
Moody's were to have renewed concerns with regard to supply risk.

Conversely, although not expected in the short term, positive
rating pressure could develop if, in conjunction with increased
diversification of raw materials supply, Barry Callebaut were
able to (1) deliver improved credit metrics on a sustainable
basis, with adjusted RCF/net debt above 20% and adjusted leverage
trending towards 3.0x; and (2) improve its adjusted EBITDA
margins towards double-digit levels on a sustainable basis.

Principal Methodology

The principal methodology used in this rating was the Global
Protein and Agriculture Industry published in May 2013. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.

Headquartered in Zurich, Switzerland, and with reported annual
sales of CHF4.8 billion (approximately EUR4.0 billion) for
financial year (FY) 2011/12 (ended August 31), Barry Callebaut AG
is the world's leading supplier of premium cocoa and chocolate
products (based on sales volumes), servicing customers across the
wide spectrum of the global food industry.



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


ATMOSPHERE BARS: Modello Bar Brought Out of Administration
----------------------------------------------------------
This is Somerset.co.uk reports Modello Bar and Kitchen has been
saved from closure after its owners, Atmosphere Bars and Clubs,
went into administration.

Modello Bar and Kitchen, on Stars Lane, is one of ten bars owned
by Atmosphere Bars and Clubs to be bought after the company went
into administration in May, according to This is Somerset.co.uk.

The report notes that a total of 14 full-time and part-time jobs
have now been saved in Yeovil after the bar was bought by Chicago
Leisure Limited.

The report relates that the chief executive of Atmosphere Bars
and Clubs, Christian Rose, has been made chief executive of the
new company, which is an affiliate of Sun European Partners, LLP.

The report relays that Atmosphere operated 24 venues and employed
500 staff when administrators Deloitte were called in on May 14.

The report notes that speaking to the Western Gazette, Mr. Rose
said the sale does not affect the company's stance on plans by
the owner of the premises to convert the building -- which backs
onto Middle Street -- into residential accommodation.


COVENTRY FC: Otium Entertainment Buys Firm Out Of Administration
----------------------------------------------------------------
Eleanor Ward at Business Sale.com reports that Paul Appleton, the
administrator handling Coventry Football Club, has confirmed that
the club has been sold to Otium Entertainment Group.

The club was initially put into administration as the result of a
long-running dispute with the owner of its Ricoh Arena home
ground, Arena Coventry Ltd (ACL), according to Business Sale.com.
The report relates that the issue has gone on for over a year and
revolved around disagreements over rent.

The report notes that matters are a step closer to being resolved
now with Otium taking the reins.

The report relates that the buyer was founded by three former
directors of Coventry, all of whom have a connection to outgoing
owners Sisu.

Onye Igwe, Leonard Brody and the club's ex-chairman Ken Dulieu
founded the group but the current registered directors at London-
based Otium are chief executive Tim Fisher and Coventry City
director Mark Labovitch, the report notes.

The report notes that Mr. Appleton has issued a statement
regarding the business sale, in which he confirmed: "Otium has
purchased the right and title to certain assets possessed in CCFC
Limited, including the shares in the Football League and the
Football Association."

The report adds that while the sale has been confirmed the club
is set to remain in administration until a CVA can be issued and
agreed between all parties.


HI-ARTS: Set to Go Into Liquidation After Financial Collapse
------------------------------------------------------------
Brian Ferguson at scotsman.com reports that Hi-Arts, an
Inverness-based outfit, with staff in Argyll, Knoydart, Skye,
Lewis and Aberdeenshire, is to go into liquidation after
effectively running out of money to keep operating.

According to the report, the company has blamed shake-ups in the
way funds are distributed by its two principal backers, Highlands
and Islands Enterprise and Creative Scotland, for the move.

scotsman.com relates that it emerged in April the organisation's
future had been plunged into doubt and its 10 staff were facing
redundancy due to a cash crisis caused by the ending of long-term
financial agreements.

Hi-Arts was set up 23 years ago by HIE and helped set up the
Screen Machine mobile cinema, The Booth online box office, and an
online arts journal for the Highlands.


KINGSWOOD MOTORS: Goes Into Liquidation
---------------------------------------
Daniel Evans at The Bristol Post reports that Kingswood Motors
has gone into liquidation as the recession claims yet another
victim.

The Briston Post relates that Kingswood Motors, run by former
rally driver Nigel Rockey, has failed to pull itself out of
financial trouble and is now looking for a buyer.

"I've always traded on my good name and prided myself on having
the cleanest cars in the city. I always like to keep them in mint
condition," the report quotes Mr. Rockey as saying.  "We used to
sell 1,000 cars a year up to 2008 and that was profitable, but
now we're struggling to hit 600."

The report says Mr. Rockey started trading with a small lot of
cars on September 2, 1968.  "I started with an orange Cortina
worth GBP400 and built the business up from there," he said.

Kingswood Motors was founded on May 1, 1970, selling low mileage
second-hand cars.  Turnover peaked at GBP6 million between 2002
and 2008 but when the economy went into free-fall the motor trade
was one of the worst hit industries. Turnover dropped to GBP3.5
million as the number of people looking to buy cars fell
dramatically.

Regrettably, Mr Rockey had to reduce his staff from 17 to 11 and
in recent years that the business has no longer been making a
profit.

Kingswood Motors is a well-known garage that has been trading for
43 years.


LISSE LTD: Goes Into Administration
-----------------------------------
John Campbell at BBC News reports that Two Isle of Man registered
companies owned by Chris Walsh, a Belfast-based property
investor, have been placed into administration.

Lisse Ltd and Tolomeo Ltd were both controlled by Mr. Walsh.  The
two firms' assets were shopping centers in England.

Mr. Walsh had been involved in a High Court battle with the
former Bank of Scotland Ireland (BoSI), according to BBC News.

The report relates that in April 2012 he obtained an injunction
that prevented the bank from taking enforcement action against
him or his companies.  A case was expected to be heard later this
year but according to the Northern Ireland Courts Service the
matter was settled in March, the report notes.

The report discloses that it involved a 'Tomlin order' meaning
the court action was stayed following an agreement between the
bank and Mr. Walsh.

Lisse's assets are the Nags Head Shopping Centre and Seven
Sisters Road covered market in north London.  The report
discloses that according to its latest annual return the firm had
a total indebtedness of GBP8.2million.  Tolomeo's asset is the
Riverside Walk Shopping Centre, Thetford, Norfolk.  The report
says that according to its latest annual return it had a total
indebtedness of GBP6.2million.

The report relates that in February of this year, another of Mr.
Walsh's firms, Wallender Ltd, sold a retail and residential
development on Kensington High Street in west London to Lum Chang
Holdings of Singapore for GBP40million.

The report relays that Mr. Walsh's other firms are unaffected by
the administration of Lisse and Tolomeo.  During the legal action
the High Court heard that at its peak Mr Walsh's property
portfolio was valued at more than GBP100million, the report adds.

BBC news discloses that Bank of Scotland Ireland ran up enormous
losses in the property crash and is now being shut down by its
ultimate owners, Lloyds Banking Group.


RECKLESS ENTERTAINMENT: Goes Into Liquidation
---------------------------------------------
Matthew Hemley at The Stage reports that cast and crew involved
in the failed Coronation Street musical "Street of Dreams" said
they have given up hope of receiving thousands of pounds owed to
them, after administrators were unable to prevent production
company Reckless Entertainment Ltd from going into liquidation.

Reckless Entertainment -- listed as one of two production
companies behind the Street of Dreams musical -- was placed into
administration in November 2012 after it ran into financial
difficulties with the show, which starred Paul O'Grady, The Stage
recalls. It was pulled just two days into its run.

The Stage relates that administrators at Chantrey Vellacott DFK
said at the time that they hoped to achieve a "return to all
stakeholders involved." Now, however, Reckless Entertainment has
been placed into liquidation, with many involved in the
production left thousands of pounds out of pocket, the report
relays.

According to The Stage, a report to creditors -- among whom
O'Grady's management company is listed as being owed GBP80,000 --
reveals there will no "asset recoveries".  A subsequent letter
from the Insolvency Service to potential creditors of Reckless
Entertainment also shows there is "no prospect of a distribution
to creditors," The Stage relates.

Total costs for a list of more than 40 identified creditors is
recorded as GBP404,858, says The Stage.  However, a document
outlining "possible creditors" catalogues more than 100 other
people connected with Reckless Entertainment who could be owed
money, the report adds.


ROYAL BANK: Rotschild to Advise on Potential Split
--------------------------------------------------
Patrick Jenkins at The Financial Times reports that the
government has moved quickly to appoint advisers on the potential
split of Royal Bank of Scotland into a good bank and bad bank,
with Rothschild set to be named to run the assessment.

Rothschild's role could be announced as soon as this week, people
close to the situation, as cited by the FT, said after the
investment bank saw off competition from Deutsche Bank and Bank
of America Merrill Lynch at presentations last week.

The bad bank idea -- raised in the final report of the
Parliamentary Commission on Banking Standards, published shortly
before Mr. Osborne's speech -- had been endorsed by prominent
figures including commission member and former chancellor Lord
Lawson, and Sir Mervyn King, who stepped down as Bank of England
governor last week, the FT discloses.

Rothschild is expected to begin the study immediately with the
aim of completing it by September, removing the uncertainty over
RBS's future structure as soon as possible, the FT says.

The prospect of a good bank and bad bank split has caused tumult
among investors, the FT notes.  According to the FT, bank
analysts said that Mr. Osborne's statement that the idea should
be properly investigated was a key reason for an 18% fall in
RBS's share price in the past month, and a slump in the value of
the bank's subordinated debt.

"Everyone's terrified they're going to get bailed in," said one,
referring to the belief among bond investors that RBS's debt
could be restructured, with existing bondholders taking a
"haircut" to help fund the capital.

The Royal Bank of Scotland Group plc (NYSE:RBS) --
http://www.rbs.com/-- is a holding company of The Royal Bank of
Scotland plc (Royal Bank) and National Westminster Bank Plc
(NatWest), which are United Kingdom-based clearing banks.  The
company's activities are organized in six business divisions:
Corporate Markets (comprising Global Banking and Markets and
United Kingdom Corporate Banking), Retail Markets (comprising
Retail and Wealth Management), Ulster Bank, Citizens, RBS
Insurance and Manufacturing.  On October 17, 2007, RFS Holdings
B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V.,
Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and
controlled by RBS, completed the acquisition of ABN AMRO Holding
N.V. (ABN AMRO).  In July 2008, the company disposed of its
entire interest in Global Voice Group Ltd.


TURNER PRODUCTS: QEP Buys Plasplugs Brand Following Liquidation
---------------------------------------------------------------
Insider Media reports that QEP Co UK Ltd, trading as Vitrex, has
bought the trade name and assets of the Plasplugs brand for an
undisclosed sum.

Turner International, which traded as Plasplugs, was sold out of
administration in a pre-pack deal in March 2012, saving all 13
jobs.

Insider Media relates that the tools and fixings supplier was
sold immediately on the appointment of insolvency specialist The
P&A Partnership to new company Plasplugs Products Ltd -- set up
by Neale Turner, a director of Turner International. The name was
subsequently changed to Turner Products Ltd which has now
appointed The P&A Partnership as liquidator.

"Combined with the company's recent purchase of the Homelux
business, the Plasplugs products will further enhance the global
QEP product offering by adding another established range of
fasteners, tiling tools and power tools," the report quotes Lewis
Gould, chairman of QEP, as saying.

Plasplugs was founded in the 1970s and its product range includes
tiling tools and spacers, tile cutters and saws.


UK COAL: Set to File for Insolvency; PPF to Take Over
-----------------------------------------------------
Andrew Bounds at The Financial Times reports that the bulk of
Britain's coal industry is set to end up in the hands of the
Pension Protection Fund with UK Coal Operations, the miner,
poised to file for insolvency.

According to the FT, the deal would save 2,000 jobs but the
GBP543 million pension liability is among the largest the PPF,
which takes over underfunded schemes of insolvent companies and
relies on a levy on businesses, has had to absorb.

UK Coal Operations, the rump of the once-nationalized British
Coal, was formed in December after UK Coal split its mining and
property arms, the FT relates.

The company, which owns two deep and six open cast mines, is
owned by the miners' pension scheme, which also controls 74.1% of
Harworth, the property development business with about GBP250
million of assets, the FT discloses.

It hoped to plug the deficit with profits from the mines but
within months a fire closed Daw Mill in Warwickshire, its largest
mine, the FT notes.

UK Coal bosses had originally proposed that the pension funds
retain ownership but shed debts by voluntary liquidation, leaving
creditors including four big power generators -- EDF, Drax, SSE
and Eon -- with about 32p in the pound, the FT recounts.

According to the FT, a person involved in the talks said that the
pensions regulator vetoed the idea.

Unions are unhappy as the 6,800 members of the scheme are likely
to see pensions cut by about 25%, the FT says.

UK Coal Mine Holdings is the country's biggest coal producer,
supplying about 5% of the UK's energy needs.


WINDERMERE XI: Fitch Downgrades Rating on Class B Notes to 'CC'
---------------------------------------------------------------
Fitch Ratings has upgraded Windermere XI plc's class A notes and
downgraded the class B notes, due April 2017, as follows:

-- GBP318.9m class A: upgraded to 'BBsf' from 'Bsf'';
   Outlook Stable

-- GBP53.4m class B: downgraded to 'CCsf' from 'CCCsf';
   Recovery Estimate (RE) 50%

-- GBP41.8m class C: affirmed at 'Csf'; RE0%

-- GBP17.6m class D: affirmed at 'Dsf'; RE0%

Key Rating Drivers

The upgrade to the class A notes is driven primarily by the
improving prospects for two large loans, Devonshire House (44% of
outstanding balance) and Long Acre (26%). These are exposed to
central London office markets that have enjoyed further yield
compression as the rental market picks up. Both loans are due in
April 2014, and Fitch expects them to repay in full. With the
sequential principal payment rules in force, this would leave
only a small balance left on the senior tranche that ought to be
recoverable from the remaining two loans. However, both these
loans' assets have deteriorated in the last year, offering class
B note holders a lower chance to be repaid in full in Fitch's
view, justifying the negative rating action taken here.

The GBP191 million Devonshire House loan is secured by a grade A
office property located in the heart of Mayfair. The borrower
drew on a GBP11.3 million capital expenditure reserve at the
April 2012 interest payment date (IPD) to make renovations across
the property and these have now been completed. Reflecting the
solid prospects for occupancy to return towards market norms
(vacancy is currently in the region of 40%, requiring the
borrower to top up interest service) and broader market
confidence, a valuation in March 2013 reported a 10% increase on
2008 (to GBP285 million from GBP260 million). Fitch expects the
loan to repay, if necessary after an equity injection.

Security for the GBP111 million Long Acre loan is a multi-let
office in London's midtown. Vacancy is low (less than 3%)
although the weighted average lease length is just over two
years, which exposes the borrower to the occupational market.
This is not ideal given that the loan matures in April 2014.
Regardless, the building's prime location and trophy asset status
make it an attractive investment opportunity, as reflected in the
December 2012 valuation of GBP162 million, marginally down from
2008. Moreover, there are press reports that the collateral has
generated significant investor interest and Fitch expects the
loan to be redeemed.

The GBP79.6 million Government Income Portfolio loan (18%) had
been due in October 2012 but has since been extended for at least
another 12 months. It is secured by 16 properties (down from 23
in the last year) following the sale of seven buildings in time
for the October 2012 IPD (this was a precondition to the
extension). Release pricing was met in each case, yielding a
GBP33.5 million loan prepayment.

However, these assets were clearly "cherry picked" for their
longer leases and also accounted for the last remaining exposure
to London. Nevertheless, the associated debt prepayment was
around GBP4 million in excess of the corresponding values
reported in the last appraisal, which had been prepared in H212
for all 23 properties and which reported a 50% fall in value to
GBP82.3 million.

The remaining Government Income Portfolio collateral is far
weaker, leaving no London exposure and far shorter average lease
terms. An unspecified portion of excess rent (after deducting
debt service and opex/capex costs) is intended to reduce
indebtedness, although to meet the conditions for a further one-
year loan extension in October, the borrower does not have to
reduce debt by much (to GBP76 million).

A sterner test awaits in October 2014 (the loan balance must be
down to GBP40 million), at which point Fitch expects the loan
formally to default and the special servicer to assume direct
control. The reported loan to value ratio (LTV) is 153%, and
extracting much value after October 2014 -- when lease terms will
be even shorter -- will prove challenging, although the 2.5 years
left from that date until bond maturity ought to allow for
sufficient recoveries for class A noteholders.

The Westville loan (11%) has been highly impaired since its
transfer into special servicing in July 2009. It is now secured
by only three assets, with three having been sold in the last
year. The reported remaining value (as at April 2012) was GBP8.7
million as compared to outstanding debt of GBP58 million.
Unsurprisingly, rental income is not sufficient to make debt
service payments, compounding the losses expected on the loan.

Rating Sensitivities

The ratings are sensitive to the rate at which the Government
Income Portfolio loan returns principal. Any shock to sentiment
toward central London trophy properties could also hinder the
repayment prospects for Devonshire House and Long Acre and result
in negative rating action.

Fitch will continue to monitor the performance of the
transaction.


                            *********

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

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

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

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


                            *********


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

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

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

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