TCREUR_Public/130808.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Thursday, August 8, 2013, Vol. 14, No. 156



ALPINE BAU: Corridors of Serbia Terminates Four Contracts


HRVATSKA BANKA: S&P Revises Outlook to Neg. & Affirms 'BB+' ICR
SJAELSOE: Liquidity Woes Prompt Reconstruction Filing


BASISBANK JSC: Fitch Hikes LT Issuer Default Rating to 'B'


FRESENIUS SE: Moody's Revises Outlook on 'Ba1' CFR to Positive
PRAKTIKER AG: Obtains Financing to Pay Suppliers
QUEEN STREET V: S&P Raises Rating on US$75-Mil. Notes to 'BB-'


SEANERGY MARITIME: Annual Shareholders' Meeting on Sept. 5


* Fitch Affirms 32 & Downgrades 6 Irish RMBS Tranches
* Fitch: LongTerm Restructurings to Rise in Irish Mortgage Market


UNI LAND: Declared Bankrupt by Bologna Court; Dec. 11 Hearing Set


CENTRAS INSURANCE: Moody's Changes Outlook on B2 IFSR to Negative
KOMMESK-OMIR: Moody's Affirms Global IFS Rating at 'B3'


DALRADIAN EUROPEAN: Moody's Affirms Ba2 Rating on Class D Notes


* Portuguese Bank Asset Quality to Weaken into 2014, Fitch Says

S E R B I A   &   M O N T E N E G R O

PORT OF BELGRADE: Court Launches Bankruptcy Proceedings


RADECE PAPIR: New Public Auction Set For September

U N I T E D   K I N G D O M

COVENTRY CITY: Club Goes Into Liquidation as Owners Junk CVA
MOSTYNS CURTAINS: In Administration, Closes Businesses
RANGERS FOOTBALL: SFA Responds to Queries on Admin. Penalties
UK COAL: Rejected Surface Mines Offer in Favor of Restructuring
UNIQUE PUB: S&P Affirms 'B+' Rating on Class N Notes

* UK: North Wales Get Jobs Boost From Peacocks & Fat Cat


* Moody's Notes Stable RMBS Delinquencies for EMEA Sectors
* Upcoming Meetings, Conferences and Seminars



ALPINE BAU: Corridors of Serbia Terminates Four Contracts
--------------------------------------------------------- Business News reports that Corridors of Serbia sent a
notice to Austrian company Alpine Bau Gmbh about the break up of
four contracts for works on the eastern branch of Corridor 10 --
a development corridor that encompasses routes in Europe that
require major investment over the next few years.

According to, the contracts were for sections for the
Pirot-Istok-Dimitrovgrad path, and for the bypass from
Dimitrovgrad to the border crossing with Bulgaria.

"In 45 days, the Corridors will start talks for choosing the best
company that will finish the construction of the started
portions," quotes director of Corridors of Serbia
Dmitar Djurovic as saying at a press conference.

The procedure of the break-off of the contract with Alpine Bau
was done in cooperation with international financial
institutions, which financed the works -- the European bank for
Reconstruction and Development and the World Bank,

The public corporation Corridors of Serbia officially starts the
procedures for paying bank guarantees and advances in the amount
of approximately EUR8 million, says.  Mr. Djurovic,
as cited by, said with that aside, the company has a
held deposit for eliminating the defects in the guaranteed
deadline in the amount of approximately EUR3 million. notes that the total debt of Alpine Bau to domestic
companies is around RSD420 million, and that Corridors will do
everything that is necessary for this debt to be paid off.  The
news source adds that Mr. Djurovic said the tender can last up to
eight months but it is certain that the works will be continued
with the start of the construction season in 2014.  It is planned
that the sections on the eastern branch of Corridor 10 will be
completed, states.

More than a month ago, Corridors of Serbia got a notice from the
Alpine company about bankruptcy, but it was not possible to break
off the contracts overnight because there were complicated
relations in question and it was necessary to do consultations
with international experts, recounts.

As reported by the Troubled Company Reporter-Europe on June 20,
2013, The Associated Press disclosed that Alpine Bau GmbH said it
is insolvent.  The news agency related that the company said it
is seeking a reorganization plan that would allow parts of the
conglomerate to continue functioning.  A statement issued by
Alpine said it was not possible to reorganize internally,
"despite significant support from financing banks and intensive
efforts of the owner," AP relayed.

Alpine Bau GmbH is Austria's second biggest construction group.


HRVATSKA BANKA: S&P Revises Outlook to Neg. & Affirms 'BB+' ICR
Standard & Poor's Ratings Services said that it revised its
outlook on 100% state-owned Croatian development bank Hrvatska
banka za obnovu i razvitak (HBOR) to negative from stable.  At
the same time, S&P affirmed the long- and short-term issuer
credit ratings at 'BB+/B'.

The ratings on HBOR are equalized with the sovereign credit
ratings on Croatia.  This reflects S&P's view of an "almost
certain" likelihood of the government providing timely
extraordinary support sufficient to service all debt, should the
need arise in any severe downside scenario.  S&P's assessment of
the likelihood of extraordinary support is based on its view of
HBOR's "critical" role as a main operator of the government's
economic, social, and political policy -- namely the sustainable
development of the Croatian economy and the promotion of exports
-- and its "integral" role with the government through direct
state ownership, ongoing financial support, and unconditional

HBOR is a 100% state-owned development and export bank, and
export credit insurer.  HBOR's mission is to support sustainable
economic growth in Croatia through financing and export credit
insurance products.  It benefits from a public policy mandate and
strong government support.  Its role underpins S&P's view of the
entity's strategic importance for the sovereign.

HBOR is strongly linked with the government.  The supervisory
board includes government ministers and members of parliament,
which gives the state tight control over HBOR as it approves
HBOR's strategy.  HBOR benefits from ongoing financial support.
The bank operates under an explicit state guarantee; Croatia
guarantees HBOR's liabilities unconditionally, irrevocably, and
on first demand.

The negative outlook on HBOR reflects the outlook on Croatia.
S&P could lower the ratings or revise the outlook on HBOR if it
lowered the sovereign ratings on Croatia or revised its outlook.
S&P could also lower the ratings on HBOR if it revised its view
of HBOR role in the government, or the link between HBOR and the
government, which would affect S&P's view of the likelihood of
sufficient and timely extraordinary support, in case of financial

SJAELSOE: Liquidity Woes Prompt Reconstruction Filing
Christian Wienberg at Bloomberg News reports that Sjaelsoe has
filed for reconstruction after it failed to strengthen its

According to Bloomberg, NASDAQ OMX Copenhagen transferred the
company to the suspension list yesterday.

Sjaelsoe Gruppen A/S -- is a Denmark-
based company active within the real estate sector.  The Company
is primarily engaged in project development, project management,
financing, risk management, as well as the sale and rental of
residential, retail and commercial projects.


BASISBANK JSC: Fitch Hikes LT Issuer Default Rating to 'B'
Fitch Ratings has upgraded JSC Basisbank's (BB) Long-term Issuer
Default Rating (IDR) to 'B' from 'B-'. The Outlook is Stable.


The upgrade reflects BB's reasonable financial metrics following
its acquisition by the Chinese Hualing Group (HG) in 2012 and
particularly solid capitalization after HG made a USD30m equity
injection in May 2013. However, the ratings also consider the
fairly high-risk operating environment in Georgia and the
potentially high volatility of BB's performance and credit losses
through the cycle. BB's ratings also reflect the high share of
foreign currency denominated lending (80% of the end-H113 loan
book), which is typical for the Georgian banking sector, planned
fast loan growth (management targets 40%-50% per annum) and
limited track record after the acquisition by HG.

BB's capital position was solid at end-H113, with the regulatory
capital adequacy ratio standing at a high 36%. Fitch estimates
that BB will consume its currently high capital buffer by end-
2016 if it achieves its fast planned loan growth of around 50%
per annum, and a return on average equity of 10%.

BB's loan quality is currently satisfactory, with NPLs (non-
performing loans, 90 days overdue) accounting for a low 2.1% of
the portfolio at end-Q113. Reported related party lending is low,
and according to Fitch's review of BB's largest loan exposures,
the quality and/or collateralization of the latter is reasonable.
However, BB's ability to grow much faster than the market but
maintain adequate quality of lending is yet to be tested.

BB's performance (ROAE of 9% in 2012) is improving, supported by
a solid net interest margin of 7% in 2012 (albeit pressured by
sector-wide margin compression) and better efficiency due to
larger scale. Pre-impairment profit equaled 8.5% of average gross
loans in 2012, indicating significant loss absorption capacity
through the income statement.

BB's cushion of liquid assets equaled a high 47% of end-H113
total liabilities following the equity injection and strong
deposit growth (60% during H113). Fitch understands that liquid
assets are likely to be partially channeled into new lending, and
views BB's liquidity profile in the context of lumpy customer
funding (the 20 largest customers accounted for a high 33% of
end-2012 liabilities) and medium- to long-term loan book, which
is largely exposed to project finance lending.


Downside pressure on the ratings could arise if there was marked
asset quality deterioration in the rapidly expanding loan book or
related party lending increases significantly. The ratings could
also be downgraded if there was a marked deterioration of the
operating environment should this result in significant liquidity
outflow and/or asset quality erosion.

A further upgrade of BB's ratings is unlikely in the near term.
However, an extended track record of resilient asset quality and
reasonable financial metrics would be credit positive.


BB's Support Rating has been affirmed at '5' and its Support
Rating Floor at 'No Floor', indicating the agency's view that
support from the Georgian authorities is uncertain, given the
bank's small share of banking system assets (around 2% of end-


An upgrade of these ratings based on sovereign support would
probably require a marked increase in market shares and systemic
importance. An upgrade of the Support Rating based on possible
support from HG is unlikely, given the group's relatively small
size and lack of track record in Georgian banking sector.

The rating actions are:

  Long-term foreign currency IDR upgraded to 'B' from 'B-' ;
  Outlook Stable

  Short-term foreign currency IDR affirmed at 'B'

  Viability Rating upgraded to 'b' from 'b-'

  Support Rating affirmed at '5'

  Support Rating Floor affirmed at 'No Floor'


FRESENIUS SE: Moody's Revises Outlook on 'Ba1' CFR to Positive
Moody's Investors Service has changed to positive from stable the
outlook on the Ba1 corporate family rating (CFR) and Ba1-PD
probability of default rating (PDR) of Fresenius SE & Co. KGaA.
The ratings of Fresenius SE & Co. KGaA and all the subsidiaries
have been affirmed. Concurrently, Moody's has assigned a Baa3
rating (with a loss given default (LGD) assessment of LGD3, 32%)
to the proposed $500 million term loan B issuance to be borrowed
by Fresenius US Finance I, Inc., a wholly owned subsidiary of
FSE. The Ba1 CFR with a stable outlook of FSE's subsidiary
Fresenius Medical Care AG & Co. KGaA (FME), the world's leading
provider of dialysis products and dialysis services, remains

The facility will benefit from the same guarantee and security
package as the existing senior secured debt. Moody's expects that
FSE will use the term loan proceeds to refinance short-term debt
and for general corporate purposes.

Ratings Rationale:

"The change in the rating outlook to positive reflects the
reduced prospect of FSE making large debt-funded acquisitions,
the group's increasing scale and strong market positions in its
different divisions, and its gradually improving liquidity and
maturity profiles," says Alex Verbov, a Moody's Vice President -
Senior Analyst and lead analyst for FSE. "In addition, the change
of outlook to positive reflects the consistently lower adjusted
leverage at FSE stand-alone, i.e. excluding the full
consolidation of FME, than at the consolidated level -- at around
3.2x compared with 3.5x per June 2013 at the group level," adds
Mr. Verbov.

Moody's has not incorporated in its assessment the possibility of
another attempt by FSE to acquire Rhoen-Klinikum AG (Baa3
negative). This is because there remains uncertainty about if,
when and how this transaction will resurface. Moody's will
evaluate the likely impact on FSE of such a transaction when
there is more clarity on this issue.

The Baa3 rating on the new term loan B reflects the instrument's
relative position in FSE's capital structure, in line with other
senior secured debt issued by the company, and ranking ahead of
its unsecured debt, which consists predominantly of bonds

FSE's current Ba1 CFR reflects (1) the group's sizeable and
increasing scale as a global provider of healthcare services and
medical products as well as the recurring nature of a large part
of its revenue and cash flow base; (2) its segmental
diversification within the healthcare market, supported by strong
positions in its four segments; (3) its track record of accessing
both equity and debt markets to support its acquisition growth
and refinancing needs, and of successfully deleveraging following
large acquisition peaks; and (4) the attractive valuation of
FSE's 31% stake in its subsidiary FME.

The rating is constrained by (1) FSE's leverage (around 3.2x on a
standalone basis as of June 2013); (2) the group's exposure to
regulatory changes, reimbursement and pricing pressure from
governments and healthcare organizations worldwide; (3) the
group's structural weakness in liquidity profile driven by the
need to continuously refinance its debt, despite the availability
of an adequate short-term liquidity cushion; and (4) a track
record of aggressive acquisitions in the recent past.

Rationale For Positive Outlook

The positive rating outlook reflects Moody's expectation that,
save for a material transaction, such as the possible acquisition
of Rhoen, FSE's credit metrics will continue to improve gradually
in line with organic growth.

What Could Change The Rating Up/Down

Moody's would consider upgrading the ratings to investment grade
if FSE were to (1) maintain on a sustainable basis leverage
around or below 3.25x at the consolidated group level, which
would translate into leverage of below 3.0x on a standalone
basis; (2) achieve further improvements in its liquidity and debt
maturity profiles, helping to reduce its reliance on capital
market refinancing; and (3) continue to limit debt-funded

Moody's does not anticipate that FSE's rating will be more than
one notch higher than FME's rating. This reflects the existence
of cross-default provisions and the strategic importance of FME
to the FSE, as a result of which a possible upgrade of FSE's
rating would be dependent on FME's rating at least remaining

The ratings could be subject to downward pressure if FSE's
leverage metrics weaken sustainably, as reflected by consolidated
adjusted debt/EBITDA exceeding 4.0x (around 3.6x on a standalone
basis) and/or consolidated EBITDA margins decline below 20%.
Large debt-financed acquisitions or negative free cash flows,
materially reducing the prospect of deleveraging, could also be
drivers of a downward rating migration.

Principal Methodology

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

Fresenius SE & Co. KGaA is a global healthcare group providing
products and services for dialysis, the hospital and the medical
care of patients at home. It is a holding company whose major
assets are investments in group companies and inter-company
financing arrangements. Based on the trailing 12 months figures
as per June 30, 2013, the group reported revenues of EUR20

PRAKTIKER AG: Obtains Financing to Pay Suppliers
Maria Sheahan at Reuters reports that Praktiker AG has secured
financing to pay suppliers and keep shelves stocked as it seeks
an investor.

Praktiker filed for insolvency last month after talks with
creditors failed, triggering fears of heavy job losses, Reuters
recounts.  Administrators have kept the business running while
reviewing options for the chain, a household name in Germany,
Reuters discloses.

"We reached an agreement on financing for the supply of goods
following intensive negotiations with credit insurers, banks and
suppliers," Reuters quotes insolvency administrator Christopher
Seagon as saying in a statement on Tuesday.

Praktiker did not disclose details of the agreement, which
affects Praktiker-branded stores and some other outlets with a
total of 11,600 employees, Reuters notes.

According to Reuters, talks for a similar deal for Praktiker's
Max Bahr chain, which filed for insolvency separately on July 25,
are ongoing.

Separately, Praktiker said its biggest investor, Austria-based
Donau Invest had cut its stake to 4.7% from almost 10%, Reuters

As reported by the Troubled Company Reporter-Europe on August 1,
2013, Reuters related that the insolvency administrators of
Praktiker on July 30 said they have stepped up the search for an
investor by appointing Macquarie as advisor.  The administrators
hope that by finding an investor they can secure as many jobs and
stores as possible at the group, which has around 20,000 full and
part-time employees, Reuters disclosed.  They said they did not
expect any results from the search before the start of September,
but that all the 300 stores affected by the insolvency would
continue trading for now, Reuters related.  Of the 300 stores in
the insolvency process, 168 are Praktiker stores, 78 are Max Bahr
stores and a further 54 are Praktiker-branded shops that have
recently been converted to the Max Bahr signage, Reuters noted.

Praktiker AG is a German home-improvement retailer.

QUEEN STREET V: S&P Raises Rating on US$75-Mil. Notes to 'BB-'
Standard & Poor's Ratings Services said that it raised its rating
on the US$75 million principal-at-risk notes issued by Bermudan
special-purpose insurer Queen Street V Re Ltd. to 'BB- (sf)' from
'B+ (sf)'.  The transaction is sponsored by Munich Reinsurance
Co. (Munich Re).

AIR Worldwide Corp. provided the risk analysis for this
transaction and acts as the calculation agent.  On July 1, 2013,
AIR released a reset report detailing the new attachment and
exhaustion points.  For U.S. hurricanes, the updated attachment
points are 110,944 (from 104,000) and the updated exhaustion
points are 143,863 (from 136,000).  For European windstorms, the
attachment points are 13,067 (from 16,569) and the exhaustion
points are 16,174 (from 20,414).

Since the issuance of the Queen Street V Re notes on Feb. 27,
2012, Munich Re has shifted its European exposures toward the
U.K. from France and Germany.  In addition, there has been an
increase in PERILS' market penetration for its industry exposure
database. This led to a change in payout factors for the
different CRESTA zones in Europe.  Coupled with AIR's
disaggregation process, this has resulted in a lasting change in
the shape of the "exceedance probability" curve over time.
Applying S&P's adjustments, it has raised the implied catastrophe
risk rating to 'BB-' from 'B+', and consequently S&P has also
raised the rating on the Queen Street V Re notes to 'BB- (sf)'
from 'B+ (sf)'.

Queen Street V Re provides protection to Munich Re against
hurricanes in the U.S. and windstorms in Europe and is one of
numerous catastrophe bond issues with a similar structure
sponsored by Munich Re.  The notes trigger based on industry
losses related to U.S. hurricanes (as reported by Property Claims
Service) and European windstorms (as reported by PERILS AG).

S&P bases its ratings on the notes on the probability of
attachment in each year.  Because S&P expects the actual results
to differ from the modeled results, it adjusts the probability of
attachment for each class of notes in line with strengths and
weaknesses identified in the transaction, and then derive
adjusted probabilities of attachment for each class of notes.


SEANERGY MARITIME: Annual Shareholders' Meeting on Sept. 5
The annual meeting of the holders of shares of common stock of
Seanergy Maritime Holdings Corp. will be held on Sept. 5, 2013,
at 6:00 p.m. local time, at the Company's executive offices at
1-3 Patriarchou Grigoriou, 16674 Glyfada, Athens, Greece, for
these  purposes:

  1. To elect two Class A Directors to serve until the 2016
     Annual Meeting of Shareholders;

  2. To approve the appointment of Ernst & Young (Hellas)
     Certified Auditors Accountants S.A. to serve as the
     Company's independent auditors for the fiscal year ending
     Dec. 31, 2013;

  3. To transact other business as may properly come before the
     Meeting or any adjournment thereof.

                            About Seanergy

Athens, Greece-based Seanergy Maritime Holdings Corp. is an
international company providing worldwide seaborne transportation
of dry bulk commodities.  The Company owns and operates a fleet
of seven dry bulk vessels that consists of three Handysize, two
Supramax and two Panamax vessels.  Its fleet carries a variety of
dry bulk commodities, including coal, iron ore, and grains, as
well as bauxite, phosphate, fertilizer and steel products.

In its audit report on the consolidated financial statements for
the year ended Dec. 31, 2012, Ernst & Young (Hellas) Certified
Auditors Accountants S.A., in Athens, Greece, expressed
substantial doubt about Seanergy Maritime's ability to continue
as a going concern.  The independent auditors noted that the
Company has not complied with the principal and interest
repayment schedule and with certain covenants of its loan
agreements, which in turn gives the lenders the right to call the
debt.  "In addition, the Company has a working capital deficit,
recurring losses from operations, accumulated deficit and
inability to generate sufficient cash flow to meet its
obligations and sustain its operations."

The Company reported a net loss of US$193.8 million on US$55.6
million of net vessel revenue in 2012, compared with a net loss
of US$197.8 million on US$104.1 million of net vessel revenue in

As of March 31, 2013, the Company had US$93.01 million in total
assets, US$193.56 million in total liabilities and a US$100.54
million total deficit.


* Fitch Affirms 32 & Downgrades 6 Irish RMBS Tranches
Fitch Ratings affirms 32 and downgrades 6 tranches of 14 Irish
RMBS transactions. The downgrades affect tranches from Celtic 11,
Emerald 4 and Kildare.


- Increased Credit Enhancement Offsets Declining Asset

The affirmation of 32 tranches is primarily driven by the
sufficient credit enhancement that has built up in the
transactions. Reserve funds remain at target for all transactions
except Celtic 11 and Lansdowne 1. The Celtic 11 reserve fund is
only below target due to the dynamic-provisioning mechanism where
the target is linked to arrears levels, while Lansdowne 1's
reserve drawing was attributed to losses.

- High Arrears Driven by Limited Enforcement Activity:

Arrears levels across the majority of transactions continue to
worsen. The portion of loans in arrears by more than three months
as a percentage of current balance are in double figures for all
transactions except Mespil 1, Kildare and Phoenix 5, which are
respectively at 8.4%, 8.7% and 2%.

In Fitch's view, most of the rising arrears trend is driven by
the moratorium on lenders taking properties into possession,
which has affected borrower willingness to make payments on their
mortgages. The absence of repossession activity has resulted in
the level of arrears by more than 12 months as a percentage of
current collateral balance exceeding 5% in most transactions
(excluding Mespil 1, Kildare and Phoenix 5).

There has been a marked improvement in Fastnet 8's arrears levels
that has been attributed to significant investment in arrears
management by the originator and servicer, Permanent TSB. These
efforts have resulted in arrears levels reducing to 16% of the
current pool balance from 18.5% in Q113.

Meanwhile, the two non-conforming transactions (Lansdowne 1 and
2) have seen the volume of loans in arrears by more than nine
months reach as far as 55% of the outstanding portfolio.

The slow pace of mortgage enforcement coupled with significant
arrears highlights the concern that losses will mostly be
realized in the future, yet excess spread is currently flowing
back to the originators. It also demonstrates the benefit of
certain structural features, such as the provisioning mechanisms
in Mespil 1, Emerald 5 and Phoenix 5, in offsetting future losses
and reducing the costs of carrying non-performing loans. Concerns
over deteriorating asset performance and growing pipelines of
potential losses are reflected in Fitch's downgrades of certain
tranches of Celtic 11, Emerald 4 and Kildare.

Removal of Legal Uncertainty:

Fitch notes the recent signing of The Land and Conveyancing Law
Reform Bill 2013 will allow the resumption of the process of
mortgage enforcement for non-performing loans. Given the extent
of negative equity in the country, Fitch believes that
repossession will be an option of last resort and lenders will
instead be incentivized to seek alternative repayment
arrangements, which are likely to be enhanced by the recent
amendments to the Code of Conduct on Mortgage Arrears. Fitch's
foreclosure timing and foreclosure cost assumptions have been
amended to reflect the changes to the 2013 Bill.


Macroeconomic Environment:

Fitch expects the macroeconomic environment and the level of
negative equity to continue to weigh on the performance of
mortgage loans.

The recent arrears resolution developments have provided clarity
to the Irish mortgage market. However, these changes are still in
their infancy and the extent of their effectiveness remains to be
seen. The return of repossession as a viable option for lenders
should also ensure that the level of behavioral mortgage non-
payment is curbed. Fitch expects this will slow the increase in

* Fitch: LongTerm Restructurings to Rise in Irish Mortgage Market
Long-term restructuring of Irish mortgages will become more
prevalent now a cohesive and credible framework for dealing with
arrears has taken shape, Fitch Ratings says. Fitch said "We
expect tools such as split mortgages or trade-down products for
borrowers in negative equity to be used first, followed by
Personal Insolvency Arrangements (PIAs). Repossession or
voluntary surrender will be a last resort."

In July, the latest version of Ireland's Code of Conduct on
Mortgage Arrears (CCMA) and the Personal Insolvency Act came into
effect, and the Land and Conveyancing Law Reform Act passed into
law. It is still early to estimate how many mortgages will be
subject to the three main options of restructuring, PIA and
repossession, but we can make an initial assessment of how they
will interact.

The Land and Conveyancing Law Reform Act reopens the repossession
route, and we expect the number of repossessions to rise. But we
also think it will create incentives for lenders and borrowers to
agree longer-term alternative repayment arrangements.

Lenders have started deploying longer-term strategies as the
short-term arrangements common in Ireland, such as principal
payment holidays, have often failed to restore borrowers to
performing status. Furthermore, the central bank has set targets
for lenders to achieve sustainable solutions for mortgages in

By allowing more borrower contact and widening the definition of
non-co-operation, the new CCMA should accelerate discussion of
arrears problems between borrowers and lenders, and limit the
risk that the prospect of debt relief reduces willingness to pay.

Discussions with lenders suggest they will deploy their own
restructuring tools first, before moving on to a PIA if
necessary. They view a PIA as a niche product, most suitable
where a borrower has various creditors and types of debt. We
maintain our view that PIA is not an easy route to debt
forgiveness, as it would be likely to entail relatively stern
restrictions on living costs.

Repossession will be the final resort. The number of borrowers in
negative equity means that lenders may not want to repossess a
distressed property and crystallize a larger loss. Nevertheless,
all three options are likely to involve losses for mortgage
pools, if not through recovery shortfall then through debt write-

Predicting the impact of longer-term alternative repayment
arrangements on RMBS transactions will be difficult until
implementation data is available, which may not be for several
months. Alongside the stronger CCMA they may begin to halt the
rise in arrears (as would an increase in foreclosures on long-
term problem borrowers). Broadly, we would expect the warehoused
portion of a split mortgage to translate into a debit on
principal deficiency ledgers. Trade-down mortgages may lead to a
mild prepayment increase, although it is not yet clear if these
will be widely used by banks.

Earlier recognition of a loss can benefit RMBS noteholders
because excess spread can be used to clear the loss. But deals
cope less well when losses are concentrated and it remains to be
seen if longer-term arrangements will be treated consistently
across transactions.


Standard & Poor's Ratings Services raised its credit ratings on
Italfinance Securitisation Vehicle S.r.l.'s class C and D notes.
At the same time, S&P has affirmed its ratings on the class A and
B notes.

The rating actions follow S&P's credit and cash flow analysis and
the application of its relevant criteria.

The transaction currently has a pool factor (undistributed
original principal) of only 10.9%. After arrears peaked at 10.2%
in December 2008, they began stabilizing from 2010.  Since then,
arrears have ranged between 2% and 6%, decreasing to 1.8% in June

The issuer purchased additional receivables during the first 18
months after closing (the revolving period).  Defaulted
receivables comprise 9.2% of the sum of the initial collateral
and of the additional receivables' balance.  The pace of
cumulative gross defaults has slowed since 2010, after a spike in
2009. Cumulative gross defaults net of recoveries have been
relatively low, currently at 1.9%.  This is due to the high level
of recoveries, equal to 78.5% of the transaction's cumulative
gross defaults.  The originators' repurchases of defaulted
receivables have so far amounted to about 15% of total

S&P considers that the notes will likely receive timely interest
because cumulative net default ratios are within the
transaction's interest deferral triggers.  These ratios remained
within the triggers when S&P stressed its ratings on the class B,
C, and D notes under 'A-', 'BBB', and 'B' scenarios,

The transaction's debt service reserve is at its floor (minimum)
level of EUR4.47 million.  The issuer can use it to pay senior
expenses and interest on the rated notes.  The rated notes are
redeeming pro rata since the transaction's pro rata amortization
conditions are satisfied.

The transaction has fully cured defaults using excess spread.  As
a result, the notes' outstanding balance does not exceed the sum
of the performing portfolio (net of defaults) and the debt
service reserve.

The available credit enhancement for the rated notes has
increased since July 2011.


Class             Credit enhancement
            To (%)                    From (%)
A           34.5                          29.7
B           22.5                          16.9
C           14.4                           8.3
D           11.8                           5.4

Since the swap documents are not in line with S&P's current
counterparty criteria, in its cash flow analysis, S&P tested
additional scenarios where it did not give benefit to the
interest rate swap.

The results of S&P's cash flow analysis without the benefit of
the swap show that the swap provider no longer supports S&P's
ratings on the class A, B, C, and D notes.  Following S&P's
performance review, it has taken rating actions in line with the
stress test results without the benefit of the swap in S&P's cash
flow analysis for all the rated notes.  In line with S&P's stress
test results, it has raised its ratings on the class C and D
notes because they pass at higher rating levels.  At the same
time, S&P has affirmed its ratings on the class A and B notes
because they pass at the currently assigned rating levels.

Italfinance Securitisation Vehicle is backed by Banca Italease
SpA and Mercantile Leasing SpA's Italian lease receivables.


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

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



Class       Rating          Rating
            To              From

Italfinance Securitisation Vehicle S.r.l.
EUR1.128 Billion Asset-Backed Floating-Rate Notes Series 2005-1

Ratings Affirmed

A          AA (sf)
B          A- (sf)

Ratings Raised

C          BBB (sf)         B (sf)
D          BB (sf)          B- (sf)

UNI LAND: Declared Bankrupt by Bologna Court; Dec. 11 Hearing Set
Jim Silver at Bloomberg News reports that the Bologna Bankruptcy
Court declared Uni Land bankrupt on Aug. 1.

According to Bloomberg, the court approves continuation of
operations through Nov. 30 subject to extension.  It has
scheduled a Dec. 11 hearing.

Uni Land S.p.A. provides land banking and development.  The
Company's operations include franchising and commercial
divisions.  Uni Land also develops buildings.


CENTRAS INSURANCE: Moody's Changes Outlook on B2 IFSR to Negative
Moody's Investors Service has affirmed the B2 insurance financial
strength rating (IFSR) of Centras Insurance. The outlook was
revised to negative.

Centras is a modest-sized insurance company based in Kazakhstan
with gross premiums written KZT3.5 billion of (US$23 million).
Centras is a key component of the Centras Capital group, which
also owns another non-life insurer, Kommesk-Omir Insurance
(IFSR:B3 Stable).

Ratings Rationale:

The negative outlook reflects Moody's view that Centras'
profitability and solvency levels will remain under pressure in
the medium term in light of the difficult operating environment
in Kazakhstan.

Centras' operating environment has seen a number of significant
challenges, primarily through regulatory changes in recent years.
These changes mainly included limitations in foreign reinsurance
for compulsory insurance, reliance on a limited number of brokers
and transfer of employee liability insurance from non-life to
life companies (7% of Centras' gross premiums written at 2011).
As a result, Centras has gone through a number of strategic
changes, such as increases in its retention in compulsory lines
(up to 100% in 2012 from 45% in 2010), reductions in its reliance
on brokers and development of its direct distribution
proposition. Nevertheless, the company's market position has
halved to 1.5% at YE2012 in recent years. Management has focused
on seeking growth in retail insurance; nevertheless the company's
market share in its main retail line, compulsory motor third-
party liability, is still relatively modest at 6%.

Centras' profitability has also weakened, and Moody's expects
this to remain pressurized in the medium term due to the
difficult operating environment and continuing fierce
competition. The company reported a net income of KZT88 million
at YE2012, up from KZT43 million at YE2011 but well below the
bottom line profits recorded in the past (YE2010: KZT1,229
million, YE2009: KZT385 million). In addition, top-line premiums
were stable at YE2012, but remain 25% below the level in 2010.
Underwriting profitability has also significantly deteriorated
even allowing for the non-recurring capital expenditures
(combined ratio in 2012:117% compared with a five-year average of
80% at YE2010). Moody's notes ,more positively, that management
has taken some steps to readdress the deterioration in
profitability by targeting retail insurance through its direct
distribution network. However, Moody's believes that future
profitability is likely to be significantly below its historical
levels as the operating environment is likely to remain

In addition, Centras' solvency position has been and will likely
remain weak in the short to medium-term. The solvency ratio was
low at 1.3x at YE2012, compared with 2.0x at YE 2010. Management
targets a solvency ratio of 1.5x. However, Moody's believes that
the pressures on profitability and the challenging operating
environment in Kazakhstan can continue to weigh on the company's
solvency levels.

Rating Drivers

The rating is on negative outlook and therefore an upgrade is
unlikely at this stage. The ratings could stabilize if 1)
capitalization substantially improves with a solvency cover
consistently above 1.5x, 2) a significant improvement in the
market position of Centras, as indicated by sustained market
share improvements without deterioration in underlying
profitability or capitalization.

On the other hand, the rating may experience downward pressure
from 1) solvency cover remaining at consistently below 1.3x, 2)
deterioration in underlying profitability as evidenced by
combined ratios consistently above 100% or return on capital
under 4%, 3) higher investment risk levels with a deterioration
in the quality of fixed income or increased exposure to equities
and property.

The following rating was affirmed with a negative outlook:

Centras insurance -- B2 insurance financial strength rating

The principal methodology used in this rating was Moody's Global
Rating Methodology for Property and Casualty Insurers published
in May 2010.

Based in Almaty, Kazakhstan, Centras recorded a net income of
KZT88 million as of December 31, 2012, gross premiums written of
KZT3,501 million and total equity of KZT2,526 million.

KOMMESK-OMIR: Moody's Affirms Global IFS Rating at 'B3'
Moody's Investors Service has affirmed the B3 global insurance
financial strength rating (IFSR) and national scale rating
of Kommesk-Omir Insurance Company JSC. The rating outlook is

Kommesk-Omir is a modest-sized insurance company based in
Kazakhstan with gross written premiums of KZT 2,905 million in
2012 ($19 million). It is owned by the financial conglomerate
Centras group, which also owns Centras Insurance.

Ratings Rationale:

The affirmation of Kommesk-Omir reflects the improvement in the
company's investment risk with a significant reduction in
exposure to non-investment grade bonds and an increasing business
orientation towards more granular retail insurance. Nevertheless,
Kommesk-Omir has been impacted by some of the regulatory changes
in Kazakhstan with a significant deterioration in its
profitability. In addition, Moody's believes that the challenging
operating environment in Kazakhstan and increasingly competitive
environment can continue to weigh on Kommesk-Omir's profitability
and capitalization.

Kommesk-Omir's investment risk has materially improved with a
sizeable reduction in exposure to non-investment grade bonds. The
high risk asset ratio has significantly reduced over a number of
years to 90% at YE2012, down from 154% at YE 2009, driven by
actively decreasing exposure to non-investment grade bonds. In
addition, the company has increasingly focused on expanding its
retail proposition (around 40% of premiums at YE 2012), which
will benefit the granularity of its business profile.

Nevertheless, Kommesk-Omir has been impacted by the regulatory
changes in Kazakhstan, such as the transfer of employee liability
insurance from non-life companies to life insurers. This had a
material impact in the company's top-line premiums (down by 12%
to KZT2.9 billion), partly offset by substantial growth in other
lines of business. In addition, underwriting profitability
deteriorated in 2012 with the loss ratio hitting a high 68%
(YE2011: 43%) and a combined ratio at 111% (YE2011: 88%). Moody's
believes that the challenging operating environment in Kazakhstan
will continue to weigh on the company's profitability going
forward. In addition, although capitalization remains adequate
for the rating level, the regulatory solvency position has
deteriorated following changes to the local regulatory capital
requirements. The company's solvency cover went down to 1.3x at
YE2012 (YE2011: 1.5x).

Rating Drivers

Moody's said that upward rating pressure for Kommesk-Omir may
evolve over time from 1) market share improvements without
meaningful deterioration in underlying profitability or
capitalization, 2) substantial improvement in capitalization with
a solvency position consistently above 1.5x, 3) Consistent
improvement in underwriting profitability with combined ratios
consistently below 100%.

On the other hand, the rating may experience downward pressure
from 1) substantial deterioration in capitalization with gross
underwriting leverage ratio above 3x or further substantial
pressure on solvency position, 2) deterioration in business
profile with increased exposure to commercial or liability lines,
3) material increase in investment risk levels.

The following ratings were affirmed with a stable outlook:

Kommesk-Omir Insurance Company -- B3 insurance financial strength

Kommesk-Omir Insurance Company -- national-scale insurance
financial strength rating

The principal methodology used in this rating was Moody's Global
Rating Methodology for Property and Casualty Insurers published
in May 2010.

Based in Almaty Kazakhstan, Kommesk-Omir recorded as of December
31, 2012 a net income of KZT 27 million, gross premiums written
of KZT2,905 million and total equity of KZT2,422 million.

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


DALRADIAN EUROPEAN: Moody's Affirms Ba2 Rating on Class D Notes
Moody's Investors Service has upgraded the ratings of the
following notes issued by Dalradian European CLO I B.V.:

EUR52.5M Class A2 Senior Secured Floating Rate Notes, Upgraded to
Aaa (sf); previously on Oct 28, 2011 Upgraded to Aa1 (sf)

EUR27.85M Class B Deferrable Secured Floating Rate Notes,
Upgraded to Aa2 (sf); previously on Oct 28, 2011 Upgraded to A1

EUR19.25M Class C Deferrable Secured Floating Rate Notes,
Upgraded to A3 (sf); previously on Oct 28, 2011 Upgraded to Baa1

Moody's also affirmed the ratings of the following notes issued
by Dalradian European CLO I B.V.:

EUR75M Senior Secured Floating Rate Variable Funding Notes
(currently approximately EUR 31.62M outstanding), Affirmed Aaa
(sf); previously on Jun 19, 2006 Assigned Aaa (sf)

EUR101.5M Class A1 Senior Secured Floating Rate Notes (currently
EUR 52.23M outstanding), Affirmed Aaa (sf); previously on Jun 19,
2006 Assigned Aaa (sf)

EUR24.5M Class D Deferrable Secured Floating Rate Notes, Affirmed
Ba2 (sf); previously on Oct 28, 2011 Upgraded to Ba2 (sf)

Dalradian European CLO I B.V., issued in May 2006, is a multi
currency Collateralized Loan Obligation ("CLO") backed by a
portfolio of mostly high yield European loans. The portfolio is
managed by N M Rothschild & Sons Limited. This transaction passed
its reinvestment period in June 2012.

Ratings Rationale:

According to Moody's, the rating actions taken on the notes
result primarily from an improvement in the overcollateralization
ratios of the rated notes pursuant to amortization of the
portfolio. The variable funding notes and the Class A-1 notes
amortized by approximately EUR36.4 million (or 23%) on the latest
payment date in June 2013, and by approximately EUR76 million (or
48%), since the last rating action in October 2011.

As a result of this deleveraging, the overcollateralization
ratios (or "OC ratios") of the senior notes have increased since
the rating action in October 2011. However, due to increased
defaults the OC ratios of the junior classes have decreased. As
of the latest trustee report dated June 17, 2013, the Class A,
Class B, Class C, Class D and Class E OC ratios are reported at
152.52%, 131.35%, 119.85%, 107.83% and 102.76%, respectively,
versus August 2011 levels of 148.62%, 131.38%, 121.62%, 111.12%
and 106.40%, respectively. These OC ratios based on the June 2013
report do not reflect the latest payment date report in June

In consideration of the reinvestment restrictions applicable
during the amortization period, and therefore the limited ability
to effect significant changes to the current collateral pool,
Moody's analyzed the deal assuming a higher likelihood that the
collateral pool characteristics will continue to maintain a
positive buffer relative to certain covenant requirements. In
particular, the deal is assumed to benefit from a shorter
amortization profile and higher spread levels compared to the
levels assumed prior to the end of the reinvestment period in
June 2012 and at the time of the last rating action in October

In its base case, Moody's analyzed the underlying collateral pool
to have a performing par and principal proceeds balance of
EUR216.7 million, defaulted par of EUR25 million, a weighted
average rating factor of 2777 (corresponding to a default
probability of 18.33% over 3.91 years), a weighted average
recovery rate upon default of 44.97% for a Aaa liability target
rating, a diversity score of 29 and a weighted average spread of
3.81%. The default probability is derived from the credit quality
of the collateral pool and Moody's expectation of the remaining
life of the collateral pool. The average recovery rate to be
realized on future defaults is based primarily on the seniority
of the assets in the collateral pool. For a Aaa liability target
rating, Moody's assumed that 85.6% of the portfolio exposed to
senior secured corporate assets would recover 50% upon default,
while the remainder non first-lien loan corporate assets would
recover 15%. In each case, historical and market performance
trends and collateral manager latitude for trading the collateral
are also relevant factors. These default and recovery properties
of the collateral pool are incorporated in cash flow model
analysis where they are subject to stresses as a function of the
target rating of each CLO liability being reviewed.

In addition to the base case analysis, Moody's also performed
sensitivity analyses on key parameters for the rated notes:
Deterioration of credit quality to address the refinancing and
sovereign risks -- Approximately 15% of the portfolio are
European corporate rated B3 and below and maturing between 2014
and 2016, which may create challenges for issuers to refinance.
Approximately 3.4% of the portfolio are exposed to obligors
located in Ireland and Spain. Moody's considered a model run
where the base case WARF was increased to 3096 by forcing ratings
on 25% of such exposure to Ca. This run generated model outputs
that were within one notch from the base case results.

Moody's notes that this transaction is subject to a high level of
macroeconomic uncertainty, which could negatively impact the
ratings of the notes, as evidenced by 1) uncertainties of credit
conditions in the general economy and 2) the large concentration
of speculative-grade debt maturing between 2014 and 2016 which
may create challenges for issuers to refinance. CLO notes'
performance may also be impacted either positively or negatively
by 1) the manager's investment strategy and behavior and 2)
divergence in legal interpretation of CDO documentation by
different transactional parties due to embedded ambiguities.

Sources of additional performance uncertainties:

1) Portfolio Amortization: The main source of uncertainty in this
transaction is whether delevering from unscheduled principal
proceeds will continue and at what pace. Delevering may
accelerate due to high prepayment levels in the loan market
and/or collateral sales by the liquidation agent, which may have
significant impact on the notes' ratings. Typically, fast
amortization will benefit the ratings of the senior notes but may
negatively impact the ratings of the mezzanine and junior notes.

2) Recovery of defaulted assets: Market value fluctuations in
defaulted assets reported by the trustee and those assumed to be
defaulted by Moody's may create volatility in the deal's
overcollateralization levels. Further, the timing of recoveries
and the manager's decision to work out versus sell defaulted
assets create additional uncertainties. Moody's analyzed
defaulted recoveries assuming the lower of the market price and
the recovery rate in order to account for potential volatility in
market prices.

3) The deal has significant exposure to non-EUR denominated
assets. Volatilities in foreign exchange rate will have a direct
impact on interest and principal proceeds available to the
transaction, which may affect the expected loss of rated

The principal methodology used in this rating was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
May 2013.

Moody's modeled the transaction using the Binomial Expansion
Technique, as described in Section of the "Moody's Global
Approach to Rating Collateralized Loan Obligations" rating
methodology published in May 2013.

Under this methodology, Moody's used its Binomial Expansion
Technique, whereby the pool is represented by independent
identical assets, the number of which is being determined by the
diversity score of the portfolio. The default and recovery
properties of the collateral pool are incorporated in a cash flow
model where the default probabilities are subject to stresses as
a function of the target rating of each CLO liability being
reviewed. The default probability range is derived from the
credit quality of the collateral pool, and Moody's expectation of
the remaining life of the collateral pool. The average recovery
rate to be realized on future defaults is based primarily on the
seniority of the assets in the collateral pool.

The cash flow model used for this transaction is Moody's EMEA
Cash-Flow model.

This model was used to represent 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 binomial distribution assumed for the portfolio default rate.
In each default scenario, the corresponding loss for each class
of notes is calculated given the incoming cash flows from the
assets and the outgoing payments to third parties and
noteholders. Therefore, the expected loss or EL for each tranche
is the sum product of (i) the probability of occurrence of each
default scenario; and (ii) the loss derived from the cash flow
model in each default scenario for each tranche. Therefore,
Moody's analysis encompasses the assessment of stressed

In addition to the quantitative factors that are explicitly
modeled, qualitative factors are part of the rating committee
considerations. These qualitative factors include the structural
protections in each transaction, the recent deal performance in
the current market environment, the legal environment, specific
documentation features, the collateral manager's track record,
and the potential for selection bias in the portfolio. All
information available to rating committees, including
macroeconomic forecasts, input from other Moody's analytical
groups, market factors, and judgments regarding the nature and
severity of credit stress on the transactions, may influence the
final rating decision.

On March 12, 2013, Moody's released a report, which describes how
sovereign credit deterioration impacts structured finance
transactions and the rationale for introducing two new parameters
into its general analysis of such transactions. In the coming
months, Moody's will update its methodologies relating to multi-
country portfolios including the one for Collateralized Loan
Obligations (CLOs) as well as for other types of collateralized
debt obligations (CDO), asset-backed commercial paper (ABCP) and
commercial mortgage-backed securities (CMBS). Once those
methodologies are updated and implemented, the rating of the
notes affected by these rating actions may be negatively


* Portuguese Bank Asset Quality to Weaken into 2014, Fitch Says
Asset quality deterioration, the biggest risk for Portuguese
banks, is likely to continue in 2014, Fitch Ratings says. "We
believe banks' asset quality is likely to suffer for some time
because of a lagging effect, even though we expect the economy to
come out of recession next year," Fitch says.

"Loans to SMEs and construction, real estate, and the domestic
consumer sectors have experienced the greatest deterioration in
the last 18 months. We expect these segments to remain
vulnerable, especially as we expect Portuguese GDP to fall 2.6%
in 2013 and grow a mere 0.2% in 2014. Residential mortgages have
held up well considering the tough environment, despite some
weakening. But we believe retail housing loans are at risk as
unemployment is increasing by more than we originally envisaged.
We forecast unemployment will rise to 18.5% by 2014.

"The major Portuguese banks we rate -- Caixa Geral de Depositos
(CGD), Millenium bcp, Banco BPI and Santander Totta -- face high
single-name risk concentration, which could pose a risk if large
credits experience difficulties. However, most of the largest
exposures tend to be to major domestic private-sector companies
and utilities, which so far have proved resilient and are

"We expect non-performing loans to rise in 2013 and 2014,
although at a slower pace if the economic recession recedes. The
latter should also be reflected in loan impairment charges as
banks will want to keep coverage ratios stable to offset downside
risk in Portugal, including that of falling collateral values.
These charges together with pressure on net interest margins will
threaten earnings, and only partially be offset by revenue
opportunities from carry trades, profitable foreign business and
cost reductions."

There is also a risk of an increasing spill-over of loan
impairments into other assets, for example property assets,
although, unlike other European countries, Portugal has not
experienced a housing bubble. Portuguese authorities have been
reviewing the banks' loan books since 2011, which should temper
further material regulatory impairments.

The banking system has improved its capitalization and is
balancing its funding structure but remains vulnerable to adverse
macroeconomic and sovereign developments. The recent resignation
of Portugal's finance minister and the tendered resignation of
the foreign minister generated market volatility and uncertainty.

However, our base case remains that program implementation will
stay on track. A sustained stabilization of the economy and the
political situation in Portugal would support scope for Viability
Rating upside for the two banks with better financial and credit
risk profiles -- Banco BPI and Santander Totta. Portuguese banks'
Issuer Default Ratings are driven by support.

S E R B I A   &   M O N T E N E G R O

PORT OF BELGRADE: Court Launches Bankruptcy Proceedings
B92 reports that the Commercial Court in Belgrade on Tuesday said
it had launched bankruptcy proceedings for the Port of Belgrade.

Gordana Despotovic Roza was appointed an interim acting manager,
B92 relates.

According to B92, the interim acting manager was instructed to
check the accuracy of the reorganization plan, and whether the
assessment of the value of all movable and immovable property,
claims of creditors and liabilities that Luka has with third
parties was properly carried out.

The hearing at which it will be voted on the reorganization plan
is scheduled for Sept. 9 in the Commercial Court, B92 discloses.

Meanwhile payments from the Port account, as well as the disposal
of its assets without the consent of the acting manager were
prohibited, B92 notes.


RADECE PAPIR: New Public Auction Set For September
EUWID reports that creditors are making another attempt to sell
Slovenia's insolvent security and graphic paper manufacturer
Radece papir.

EUWID says Radece papir is going on the block again.  A new
public auction for the entire business entity of Radece papir
will be held in September, EUWID relates citing information from
the insolvency administrator's office.  According to the report,
a spokesperson said the auction would probably take place at the
end of September, but the exact data was still to be determined.
The starting auction price is set at EUR2.5 million, the report

A previous attempt to auction off Radece papir in November last
year failed, EUWID notes. In fact, the auction did not even take
place as none of the potential buyers had lodged the deposit
required.  The starting price at the November auction stood at
EUR6.2 million.

As reported in the Troubled Company Reporter-Europe on Jan. 6,
2012, EUWID said Radece applied for the opening of compulsory
settlement proceedings and has filed a financial restructuring
plan with the District Court of Celje in December.  Radece blames
its financial situation on production difficulties, extended
machine downtime as well as soaring cotton linters and pulp
prices, which saw net losses amounting to almost EUR6.5 million
in the first nine months of the financial year 2011.

Radece Papir d.o.o. is Slovenia-based paper manufacturer. The
company runs two paper machines and employs a total of 372
people.  Radece papir d.o.o. operates as a subsidiary of G-M&M.

U N I T E D   K I N G D O M

COVENTRY CITY: Club Goes Into Liquidation as Owners Junk CVA
Danielle Joynson at reports that Coventry City
Ltd have gone into liquidation following a meeting with major
creditors ACL.

The meeting, which is said to have taken place August 2, resulted
in ACL, who are the owners of the club's home ground the Ricoh
Arena, rejecting a Company Voluntary Agreement (CVA), according
to the report. relates that the CVA would have allowed the
League One outfit to come out of administration, but the ACL's
refusal has resulted in one of the club's companies Coventry City
Ltd facing liquidation.

It is believed that the Football League has been notified and
they are considering the number of deducted points to issue the
club with, according to the report.

"It is with great regret that a proposed Company Voluntary
Agreement (CVA), which would have brought CCFC Ltd out of
administration and would have recovered a substantial sum of
money for its creditors, has been rejected by Arena Coventry
Limited (ACL)," the club said in a statement,

"It means CCFC Ltd is likely to be put into liquidation which is
expected to result in a points penalty for the club going into
the new season."

Reports have claimed that a minimum of 15 points could be taken
away from the Sky Blues, who were hit with a 10-point penalty
last season for falling into administration,

As reported in the Troubled Company Reporter-Europe on March 26,
2013, Coventry Observer said Coventry City Football Club has
confirmed they have put their non-operating subsidiary of the
club into administration.  The announcement comes on the eve of a
High Court hearing in London as the company that runs the club's
stadium, ACL, attempts to force the League One club into
administration over the GBP1 million they are owed, according to
Coventry Observer.  The report relates that the Sky Blues could
still face a ten-point deduction, which would all but end any
hopes of making the play-offs.

Coventry City is an English association football club based in
Coventry, central England.

MOSTYNS CURTAINS: In Administration, Closes Businesses
John Brazier at Insolvency News reports that soft furnishers
Mostyns Curtains Limited has closed its stores after entering
administration, less than one year after it was sold through a
pre-pack deal.

Steve Adshead and Greg Palfrey of accountancy firm Smith &
Williamson were appointed joint administrators to the company on
July 18, 2013.

"It was not possible to sell the business as a going concern and
there was no other choice but for the firm to go into
administration and for all stores to close. . . . It should be
stressed that customer's existing orders are being fulfilled in
the vast majority of cases.  If for any reason an existing
customer order cannot be met, all moneys the individual has paid
will be reimbursed . . . .  This is a very difficult time across
the retail sector and there is immense online competition in the
soft furnishing business.  Despite a restructuring of the
business in September 2012, the difficulties have proved
insurmountable," the administrators said in a statement obtained
by the news agency.

The report notes that the stock of Mostyns, which is the
company's principle asset, has been sold to an unnamed buyer.

The factory and customer services department are to continue on a
scaled-down basis for the next few weeks in order to fulfill
existing orders, the report says.

The report recalls that Mostyns first entered administration in
September 2012.  The business and assets of Mostyns Ltd and
Mostyn Group Ltd, which owns 100% of the shares in Mostyns Ltd,
were sold to WCDI Ltd, the report relays.

RANGERS FOOTBALL: SFA Responds to Queries on Admin. Penalties
BBC News reports that the Scottish Football Association has moved
to clarify why Rangers Football Club were fined for going into
administration, while Hearts of MidLothian Football Club and
Dunfermline Athletic Football Club Ltd. were not.

The Ibrox club was fined GBP50,000 after entering administration
in February 2012 over then owner Craig Whyte's non-payment of
tax, according to BBC News.

The SFA says that unlike Hearts or Dunfermline, Rangers had the
means to pay tax at the time but chose not to, the report
relates.  BBC News says that it adds that the club's lawyer
"specifically asked for" a fine.

BBC News notes that Rangers Football Club Chief Executive Craig
Mather and manager Ally McCoist asked for answers from the
governing body after Hearts were spared a fine and were instead
given a registration embargo after calling in the administrators.

The SFA revealed it had not received a formal written request for
clarification but was happy to "reiterate the salient points"
from the note of reasons, BBC News notes.

BBC News recalls that Rangers was placed into administration
following the deliberate non-payment of social taxes, despite --
as the evidence provided -- having the money to do so when the
decision was first taken to withhold the money.

"The disciplinary rules of the judicial panel protocol provide a
sliding scale of sanctions, with a suggested tariff of low-end,
mid-range, top-end and maximum.  This reflects the potential
variations in seriousness of any breaches and any aggravating or
mitigating factors. . . .  Rangers were fined GBP50,000 for a
breach of Rule 14(g) based on the panel's view that the evidence
presented on both sides merited a sanction at the maximum end of
the tariff," the report quoted a SFA spokesperson as saying.

The SFA quoted statements from the panel's notes which read: "At
the time of the first withheld payment in September 2011, Rangers
FC's financial situation was such that it could have made the
payment due to Her Majesty's Revenue & Customs . . . .  The non-
payment was a deliberate act in furtherance of a decision of the
chairman and director of Rangers FC not to make payment as a
negotiating tactic in the resolution of 'the Big Tax Case'. . . .
In the case of the non-payment of tax (which was possibly by the
smallest margin the most serious breach) the massive extent of
the failure, and the intentional and calculated manner in which
it was carried out, aggravated the breach even further."

The report notes that that the statement added: "Rangers were
placed into administration following the deliberate non-payment
of social taxes, despite - in the evidence provided - having the
money to do so when the decision was first taken to withhold the
money.  This was not a feature in the Heart of Midlothian or
Dunfermline Athletic cases. . . . Contrary to Mr. Mather's
statement, Rangers' registration embargo was applied in a
separate rule breach, rule 66 - bringing the game into disrepute.
. . . The administrators in the two other cases (Heart of
Midlothian and Dunfermline Athletic) submitted that fines would
be inappropriate as the clubs effectively had no money and any
fine could jeopardise attempts to save the club."

They made submissions on their clubs' financial position to
reinforce their view, the report adds.

UK COAL: Rejected Surface Mines Offer in Favor of Restructuring
Andrew Bounds at The Financial Times reports that documents show
UK Coal rejected a bid to buy its surface mines and run its deep
mines under contract in favor of a restructuring that could cost
British companies millions in pension payments.

According to the FT, the revelation is contained in the report to
creditors compiled by PwC, which handled the administration and
liquidation of Britain's largest coal producer, hiving most of
its assets into linked businesses.

Hargreaves Services, the listed coal miner and importer, is
believed to have made the bid on June 5, a month before UK Coal
entered administration on July 9, the FT notes.

UK Coal, struggling with a GBP888 million pension liability, was
further hit by a fire at Daw Mill colliery in February that led
to its closure and the loss of 280 jobs, costing more than GBP38
million and destroying GBP160 million worth of equipment, the FT

According to the FT, the report implies that had the bid been
accepted the Pension Protection Fund, which rescues insolvent
schemes and is paid for by a private sector levy, would have
received about GBP23 million.  Instead the PPF has reduced its
claim to GBP37.7 million, and will receive about 7.15p in the
pound along with other creditors, about GBP2.2 million, the FT

However, it has also been given a GBP60 million loan note by the
new company and will receive dividends beyond that until the
shortfall is made up, the FT states.

The PPF, as cited by the FT, said it expected to get higher
returns through the restructuring than insolvency or sale.

The bidder offered GBP20 million for the six surface mines and to
run the two remaining pits under a management agreement with the
creditors, the FT discloses.  The FT relates that the
administrators said it would have given creditors a 2.61%
dividend, similar to that offered by insolvency "with any further
return to creditors dependent on future earnings from the deep
mines business", essentially sharing the risk with the PPF.

The FT notes that the report concludes, "The proposal . . . was
considered to represent a greater risk for creditors [other than
the PPF]."

UK Coal plc -- is a United Kingdom-
based company engaged in surface and underground coal mining,
property regeneration and management, and power generation.  The
Company operates four deep mines, located in Central and Northern
England.  Its deep mines business consists of Daw Mill
(Warwickshire), Kellingley (Yorkshire) and Thoresby and Welbeck
(Nottinghamshire).  The Company had five active surface mines.
Total surface mining reserves and resources are estimated at
approximately 55 million tons.  The Company owns approximately
45,000 acres (18,200 hectares) of predominantly agricultural
land.  During the year ended December 31, 2008, it acquired 50%
of UK Strategic Partnership Limited as a joint venture company
with Strategic Sites Limited for the development of certain
investment properties.  In January 2009, it sold 50% share in
Coal4Energy Limited to Hargreaves Services PLC.

UNIQUE PUB: S&P Affirms 'B+' Rating on Class N Notes
Standard & Poor's Ratings Services said that it revised to stable
from negative the outlook on all outstanding classes of notes
issued by The Unique Pub Finance Co. PLC.  At the same time, S&P
affirmed the ratings on the notes.  In addition, S&P withdrew the
rating on the class A2N notes following their redemption.

This transaction is a corporate securitization backed by future
cash flows generated by a portfolio of 2,690 tenanted public
houses owned by the borrower Unique Pub Properties Ltd. (Unique).

"We understand that Unique's ultimate parent company, Enterprise
Inns PLC, the U.K.'s largest tenanted pub operator, has been
focusing on managing its high leverage by debt reduction through
asset sales.  In the context of the Unique portfolio, which was
levered at approximately 8.4x debt to EBITDA as of the quarter to
March 2013, these sales have resulted in a contraction of the
estate by almost 10% in terms of the number of pubs over the past
couple of years.  Cash from disposals has been used to supplement
operating cash flow to allow Unique to purchase and cancel issuer
debt, such that on the same date, total debt repayments are
GBP99.4 million ahead of the amortization schedule of the class A
notes.  This has served to reduce the previously identified risk
of Unique being unable to fund debt service payments from
operating cash flows once the class A3 notes start amortizing in
September 2013," S&P said.

Unique's business risk profile remains constrained by its
exposure to U.K. consumers' discretionary spending, as well as
structural issues in the U.K. tenanted pub sector.  These issues
include an oversupply of pubs, constraints on pub valuations and
rental incomes, and falling on-trade beer volumes.  Growth in
off-trade sales, with more consumers entertaining at home, high
alcohol excise duties, and changing consumer preferences are
further structural difficulties.

"We anticipate that the operating environment for U.K. tenanted
pub operators will remain tough.  In April 2013, the U.K.
government launched a consultation on proposals to establish a
statutory code for the pub industry.  One aim of the proposed
legislation is to ensure that pub tenants that are subject to a
"beer tie" (an agreement obliging tenanted pubs to buy beer and
other drinks from their landlord) are no worse off than those
that are free of the tie.  While it remains unclear to us how
much pub company revenues would ultimately decline under the new
code, we believe that for some rated pub companies, such as
Enterprise Inns, there remains a risk that profitability and
operating cash flow could weaken.  Depending on its final shape,
we could also view the new regulatory framework as a negative
rating factor in our business risk profile analysis," S&P added.

Nonetheless, in S&P's opinion, Unique's improved liquidity
position should provide sufficient headroom over its debt service
obligations to absorb the above challenges in the medium term.
Consequently, S&P has revised its outlook on all classes of notes
o stable.

In addition, the ratings on the notes continues to benefit from
structural enhancements aimed at mitigating financial and other
risks.  In particular, certain structural enhancements aim to
maintain Unique's GBP65 million borrower-level cash reserve and
GBP190 million third-party liquidity facility.  This liquidity
facility remains undrawn and, together with the cash reserve, is
considered sufficient to allow the issuer to meet full and timely
payment of senior expenses, and interest and principal under
stressed scenarios.


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:



The Unique Pub Finance Co. PLC
GBP2.371 Billion Fixed- And Floating-Rate Asset-Backed Notes

Ratings Affirmed; Outlook Stable

Class  Rating                Rating
       To                    From

A3     BBB- (sf)/Stable      BBB- (sf)/Negative
A4     BBB- (sf)/Stable      BBB- (sf)/Negative
M      BB- (sf)/Stable       BB- (sf)/Negative
N      B+ (sf)/Stable        B+ (sf)/Negative

Ratings Withdrawn

Class   Rating               Rating
        To                   From

A2(N)   NR                   BBB- (sf)/Negative

* UK: North Wales Get Jobs Boost From Peacocks & Fat Cat
Daily Post reports that a double retail boost will create or
secure up to 40 jobs as Peacocks returns to Wrexham and a pub is
bought out of administration.

The national clothes retailer will return to Wrexham town centre
18 months after closing its store when the company went into
administration, according to Daily Post.

The report relates that there will be up to 20 jobs created while
filling the large central site will boost the retail centre of
the town.

Meanwhile, Daily Post notes that in Bangor administrators
confirmed a deal had been done for the Fat Cat pub.

The report recalls that the chain went into administration in
April with the Llandudno bar closing and the Bangor site run by
administrators Cooper Parry as they sought a new buyer.

The report says that now a local businessman has bought the
Bangor pub - securing 15 jobs with the potential for additional
staff to now be taken on.

Earlier this year, the Llandudno bar reopened as the Lilly Bar
and Grill, the report notes.

Daily Post discloses that the town centre manager at Wrexham
Isobel Garner said the return of Peacocks was a major boost for
the town.

The report relays that the Wrexham shop closed along with the
store at Flint as the company was bought out of administration by
Edinburgh Woollen Mill in February 2012.  The Flint store re-
opened the following month.

"It is a vote of confidence in the town and as a popular retailer
they will help in terms of footfall and underlining Wrexham's
reputation as the shopping capital of North Wales," the report
quoted Kevin Critchley, the manager of Eagles Meadow shopping
centre in Wrexham, as saying.

The report says that in Bangor the secured pub site will now
undergo a re-brand to the Feral Cat.

"When we went into administration, there was a risk the pub could
close and the jobs lost . . . . But the community here really
rallied around the pub and supported when they could have stopped
coming . . . .  Now a local businessman has bought the pub out of
administration and the future is secure," the report quoted Will
Avenell, assistant manager at Fat Cat, as saying.


* Moody's Notes Stable RMBS Delinquencies for EMEA Sectors
Moody's Investors Service's index of 60-90 day delinquencies of
EMEA residential mortgage-backed securities (RMBS) remained below
1.00% for most EMEA RMBS markets, with the exception of Greece,
Ireland and Spain, which remained the worst performing countries
in terms of the 60-90 day delinquency rate.

In the 12-month period leading up to April 2013, the Greek RMBS
market remained the most affected market in terms of the
deterioration of its 60-90 day delinquency rate. The 60-90 day
delinquency rate of the Greek RMBS market increased to 2.53% in
April 2013 from 2.20% in April 2012. Even though Irish RMBS 60-90
day delinquencies fell to 1.84% in April 2013, the Irish RMBS
market remained one of the worst performing markets in terms of
90+ day delinquency rates, recording 18.12% in April 2013.

The Dutch NHG RMBS and Dutch Prime RMBS markets remained among
the best performing EMEA markets in terms of 60-90 day
delinquency rates. Both markets recorded the lowest 60-90 day
delinquency rate in April 2013 at 0.20% and 0.25%, respectively.

In the 12-month period leading up to April 2013, the Spanish and
Italian RMBS markets showed similar trends in terms of a
cumulative default rate increase, recording 3.12% and 2.78%,
respectively. However, the Spanish RMBS market performed weaker
in terms of 60-90 day delinquency rates, recording 1.04% in April
2013. The 60-90 day delinquency rate of Italian RMBS increased
slightly to 0.52% in April 2013.

In the 12-month period leading up to April 2013, all EMEA RMBS
markets recorded a decrease in their outstanding pool balance.
The UK Prime RMBS market recorded the most significant
outstanding pool balance decrease, with a 32.1% drop. This
significant decrease was mainly driven by the redemption of two
Master Trusts (Mound Financing and Lothian Mortgages).

Moody's outlooks for the collateral performance of RMBS
transactions is 1) negative for Greece, Ireland, Italy, Portugal,
Spain and South Africa; and 2) stable for the UK, the
Netherlands, France and Germany. Moody's expects that the
performance of existing ABS and RMBS transactions in stronger
countries such as UK and the Netherlands will remain stable and
within its expectations because of the relatively less negative
macroeconomic conditions. High unemployment levels, declining
house prices and contracting economy in southern Europe countries
will continue to weaken collateral performance.

* Upcoming Meetings, Conferences and Seminars

Aug. 8-10, 2013
      Mid-Atlantic Bankruptcy Workshop
         Hotel Hershey, Hershey, Pa.
            Contact:   1-703-739-0800;

Aug. 22-24, 2013
      Southwest Bankruptcy Conference
         Hyatt Regency Lake Tahoe, Incline Village, Nev.
            Contact:   1-703-739-0800;

Oct. 3-5, 2013
      TMA Annual Convention
         Marriott Wardman Park, Washington, D.C.

Nov. 1, 2013
      NCBJ/ABI Educational Program
         Atlanta Marriott Marquis, Atlanta, Ga.
            Contact:   1-703-739-0800;

Dec. 2, 2013
      19th Annual Distressed Investing Conference
          The Helmsley Park Lane Hotel, New York, N.Y.
          Contact:   240-629-3300 or

Dec. 5-7, 2013
      Winter Leadership Conference
         Terranea Resort, Rancho Palos Verdes, Calif.
            Contact:   1-703-739-0800;


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

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

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

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


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

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

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

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

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

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

                 * * * End of Transmission * * *