TCREUR_Public/131009.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Wednesday, October 9, 2013, Vol. 14, No. 200



JETALLIANCE: Flight Company Declares Insolvency


ALCATEL-LUCENT: To Cut 14% of Workforce After Losses


CONERGY AG: To Axe 52 Staff at Mounting-System Manufacturing Unit
GERMAN RESIDENTIAL: Fitch Rates EUR47.8MM Class F Notes 'BB(EXP)'
XELLA INTERNATIONAL: S&P Affirms 'B+' CCR; Outlook Stable


DRYSHIPS INC: Enters Into Equity Offering Sales Agreement
FREESEAS INC: Inks Exchange Agreement with Crede


ALITALIA SPA: At Risk of Bankruptcy if Capital Increase Fails
BANCA MONTE: Pledges to Cut 3,360 Jobs & Increase Capital


POLIMEX-MOTOSTAL: Banks Get Request to Set Aside Provisions

U N I T E D   K I N G D O M

DENIZEN: In Administration, Stops Work on Ageas Bowl
DICKINSON HASLAM: Linder Myers Buys Firm Via Pre-Pack Deal
FAREPAK: GBP1 Million Still Available For Savers
SHIP LUXCO: Moody's Affirms 'Ba3' Corporate Family Rating
UK COAL: Collapse Hit Local Businesses; Owes Selby Council



JETALLIANCE: Flight Company Declares Insolvency
Austrian Times reports that flight company Jetalliance is

The company is to close and be dissolved, the Alpenlandischen
Kreditorenverband creditors announced on October 2.

The recovery plan and continuation of the company is no longer
financeable, the report relays.

Austrian Times notes that eight employees are affected by the
insolvency. The company was already bankrupt last year and in
June this year, administration proceedings were started, the
report notes.  However, the proceedings were no longer viable due
to lack of customers.

The company is in more than EUR9 million of debt.

The first case in the insolvency hearing is due to take place on
December 17 in Wiener Neustadt.  Creditors have until December 3
to report any demands on the company but they are not expected to
get much money back, the report adds.

Based in Kottingbrunn, Lower Austria, Jetalliance was founded in


ALCATEL-LUCENT: To Cut 14% of Workforce After Losses
BBC News reports that Alcatel-Lucent plans to cut 10,000 jobs in
a bid to slash costs.

The cuts represent 14% of its 72,000 workforce and 900 of those
job losses will be made in France, BBC notes.

The company has reported losses in the previous five quarters and
hopes to save US$1.4 billion through costs cuts by 2015, BBC

BBC relates that Chief Executive Michel Combes said the cuts were
necessary to give the company an "industrially sustainable
future" and the company's employees could expect an "open and
transparent dialogue."

Alcatel-Lucent's most recent cuts are in addition to the 5,000
announced in July, BBC recounts.

The company employs 1,400 people in the UK, BBC says.

Last year, the firm reported losses of EUR1.2 billion (US$1.6
billion), BBC relays.

Alcatel Lucent SA -- is a
France-based company that proposes solutions used by service
providers, businesses, and governments worldwide to offer voice,
data, and video services to their own customers.  It is also
engaged in mobile, fixed, Internet Protocol (IP) and optics
technologies, applications and services. The Company operates in
three business segments: Networks; Software, Services and
Solutions and Enterprise.  The Networks segment focuses on on the
Internet Protocol (IP) intelligent router market, manufacture and
market optical networking equipment to transport information,
wireless product offerings, among other activities. The Software
segment focuses on supplying offerings for networks' cycle:
consultation, integration, transformation, outsourcing and
maintenance, among others. The Enterprise segment supply
products, solutions and services for companies to improve
collaborations across employees, customers and partners. It has
over 25 wholly owned subsidiaries.


CONERGY AG: To Axe 52 Staff at Mounting-System Manufacturing Unit
Bernd Radowitz at Recharge News reports that insolvent German PV
group Conergy in October will lay off 52 employees from its
mounting-system manufacturing plant, reducing its staff there to
152 people, but says it is in promising negotiations to find a
buyer for the unit.

"We are satisfied with the course of the search for investors so
far and with the great interest in Mounting Systems - both from
Europe and the USA," the report quotes Mounting Systems managing
director Stefan Spork as saying. He added that Conergy has
received its first offers for the unit, the report relays.

Despite Conergy's difficult situation, order books are
"relatively well filled," Mr. Spork, as cited by Recharge News,
stressed. But he added that pressure in the solar market is
continuing, which requires cost saving measures during the
restructuring process.

According to the report, Conergy's insolvency administrator Sven-
Holger Undritz said he is counting on reaching a deal with
interested parties for the sale.

Conergy AG is a Hamburg-based solar panel manufacturer.

The Company filed for insolvency on July 5 and stopped its module
production in Frankfurt an der Oder near the Polish border after
a delay in payments from a large project and the failure of
executives to bridge the financial gap, Bloomberg New reported.
Conergy said in a separate statement that manufacturing at its
insolvent Conergy SolarModule GmbH & Co. KG will resume on
Systems GmbH in Rangsdorf near Berlin continue, Bloomberg noted.
Conergy's sales last year dropped 37% to EUR473.5 million while
the net loss widened to EUR99 million, Bloomberg disclosed.

GERMAN RESIDENTIAL: Fitch Rates EUR47.8MM Class F Notes 'BB(EXP)'
Fitch Ratings has assigned German Residential Funding 2013-2
Limited expected ratings.

The transaction is a multi-family (MFH) CMBS arranged for the
refinancing of a commercial real estate loan advanced to the
sponsor (the Gagfah group), itself refinancing loans previously
securitized as part of the DECO 17 - Pan Europe 7 Limited

  EUR431m class A due October 2024 (ISIN TBC): 'AAAsf(EXP)';
  Outlook Stable

  EUR83.6m class B due October 2024 (ISIN TBC): 'AAsf(EXP)';
  Outlook Stable

  EUR53.7m class C due October 2024 (ISIN TBC): 'Asf(EXP)';
  Outlook Stable

  EUR59.7m class D due October 2024 (ISIN TBC): 'BBBsf(EXP)';
  Outlook Stable

  EUR23.9m class E due October 2024 (ISIN TBC): 'BBB-sf(EXP)';
  Outlook Stable

  EUR47.8m class F due October 2024 (ISIN TBC): 'BBsf(EXP)';
  Outlook Stable

The final ratings are contingent upon the receipt of final
documents and legal opinions conforming to the information
already received, and selection of issuer account bank and other
transaction parties.

Key Rating Drivers

The expected ratings are based on Fitch's assessment of the
underlying collateral, available credit enhancement and the
transaction's sound legal structure.

GRF 2013-2 benefits from geographical diversification, with some
27% by market value located in Hamburg, and other pockets of
concentration found in economically strong areas of Germany such
as Hannover (20%), Braunschweig (6%), Gottingen (4%) and
Osnabruck (2%).

The portfolio includes exposures also to less affluent areas of
Germany (Mecklenburg-Vorpommern and Brandenburg as well as some
areas of Schleswig-Holstein). Of the portfolio approximately 15%
is seen as non-core by the sponsor and is targeted to be sold
during the loan term. These assets are largely located in
economically weaker, smaller cities, exhibiting higher than
average vacancy levels.

The portfolio's performance has been stable, with occupancy
fluctuating between 94%-95% since 2010. Minimum capital
expenditure requirements, agreed as part of privatization
agreements with local authorities and covenanted in the loan
agreement, should also support portfolio performance. Overall,
Fitch considers the collateral quality as average.

Taking into account the EUR76.6 million senior continuing debt,
the reported loan-to-value (LTV) is 65%. Annual scheduled
amortization of 0.5% per annum will reduce the exit LTV to 62.8%
by loan maturity. This leverage is slightly higher than for MFH
CMBS peers but in line with the German Residential Funding 2013-1
(GRF 2013-1) transaction. A contingent and additional 0.5%
amortization per annum may be triggered on any loan payment date
on or after 20 February 2016, if the sponsor is not able to meet
its target net operating income margin of 61% (currently reported
at 59%).

The transaction features a six-year tail period between loan
scheduled maturity (2018) and legal final maturity of the notes
(2024), although the borrower benefits from a one-year extension
option. This amount of time reduces the risk of an uncompleted
workout by bond maturity, particularly given the complex borrower
structure and some sales restrictions relating to the
privatization agreement. The borrowers are pre-existing German
limited partnerships with no employees or material outstanding
liabilities. The borrowers' general partners are not insolvency-
remote and their failure would lead to a solvent liquidation of
the partnerships. Therefore, Fitch has concentrated its analysis
on the enforceability of the security under this scenario.

Deutsche Bank AG, London Branch (A+/Stable/F1+) will be hedge
provider, while Bank of America N.A., London Branch (A/Stable/F1)
will be liquidity facility provider. While hedging expires at the
loan's scheduled maturity in 2018, Euribor on the notes
thereafter will be capped at 5%, partially mitigating interest
rate risk during the tail. The issuer account bank provider is
yet to be appointed.

The controlling class of notes from time to time will be the most
junior tranche with sufficient equity as evidenced by the most
recent valuation. Another material feature in the structure is
that the issuer waterfall changes after loan maturity, so that
interest on the class A and B notes will rank ahead of principal,
with remaining funds allocated on an interest principal-interest
principal basis from class C through E.

Rating Sensitivities

Fitch tested the rating sensitivity of the class A to F notes to
various scenarios, including an increase in cost assumptions,
capitalization rates and vacancy assumption. Fitch for example
noted that an increase of 1.2x in these three assumptions would
result in the following downgrades.

Expected impact upon the notes' ratings of shift in
capitalization rate, cost and vacancy assumptions (class A/class
B/class C/class D/class E/class F):

Original Rating: 'AAAsf'/'AAsf'/'Asf'/'BBBsf'/'BBB-sf'/ 'BBsf'

Deterioration in all factors by 1.1x: 'AA-sf'/'A-sf'/'BBB-

Deterioration in all factors by 1.2x: 'A-sf'/BB+sf/'BB-

XELLA INTERNATIONAL: S&P Affirms 'B+' CCR; Outlook Stable
Standard & Poor's Ratings Services said that it affirmed its 'B+'
long-term corporate credit rating on Germany-based building
products manufacturer Xella International S.A.  The outlook on
Xella International is stable.

At the same time, S&P assigned its 'B+' long-term corporate
credit rating to Xella Holdco Finance S.A., a sister entity of
Xella International's parent, Xella International Holdings
S.a.r.l.  The outlook on Xella Holdco Finance is stable.

In addition, S&P assigned its 'B-' issue rating to Xella Holdco
Finance's proposed EUR200 million senior payment-in-kind (PIK)
toggle notes, which have an expected tenor of five years.  S&P
has assigned a recovery rating of '6' to the notes, indicating
its expectation of negligible (0%-10%) recovery for proposed
noteholders in the event of a payment default.

The ratings on the proposed notes are subject to the successful
issuance of this instrument and S&P's review of the final
documentation.  Any change in the amount, terms, or conditions of
the notes issue could affect the ratings on the proposed notes.

The affirmation reflects S&P's view that the proposed transaction
has no material effect on Xella International's financial profile
and credit metrics.  This is because S&P previously included the
vendor loan note from former owner, Franz Haniel & Cie GmbH, as
part of S&P's adjusted debt calculations.  S&P estimates Xella
International's Standard & Poor's-adjusted debt to EBITDA for
financial year ending Dec. 31, 2013 (financial 2013) to be about
9.1x (5.3x excluding shareholders' loans) based on S&P's forecast
of about EUR1.8 billion of debt (about EUR1.1 billion excluding
shareholders' loans).

The interest on the PIK toggle notes falls due semi-annually and
the first interest payment will be paid in cash.  Subsequent
payments of cash interest depend on the availability of funds at
the holding companies (either Xella International Holdings or
Xella Holdco Finance) to service the vendor loan note or Xella
International's ability to upstream cash to Xella International
Holdings to service the vendor loan note.  At the close of the
proposed transaction, S&P calculates the cash held by the holding
companies to be about EUR40 million.

In S&P's view, Xella International will benefit from the gradual
improvement in construction activity in Germany for the remainder
of financial 2013 and thereafter.

The group has maintained stable profitability under tough
operating conditions over the past few years.  S&P believes that
Xella International's relatively flexible cost base should enable
positive free operating cash flow (FOCF) generation in the medium
term to repay the amortizing debt.  In addition, S&P forecasts
that Xella International will maintain adjusted EBITDA interest
coverage of about 3x over the next 18 months.

Downward rating pressure could arise from increased competition
and a sustained decline in construction in Xella International's
key markets, which together would constrain its cash flow and
result in sustained negative FOCF.  The ratings could also come
under pressure if Xella International undertakes any significant
debt-financed acquisitions or shareholder returns.  Deterioration
in the group's liquidity could also be a rating trigger.

S&P believed that ratings upside remains limited in the near
term, due to Xella International's high debt burden (including
shareholder loans).


DRYSHIPS INC: Enters Into Equity Offering Sales Agreement
DryShips Inc., a global provider of marine transportation
services for drybulk and petroleum cargoes and through its
majority owned subsidiary, Ocean Rig UDW Inc., of offshore
deepwater drilling services, on Oct. 4 disclosed that it has
entered into an Equity Offering Sales Agreement, dated October 4,
2013, with Evercore Group L.L.C., or Evercore, for the offer and
sale of up to $200.0 million of common shares of Dryships Inc.

In accordance with the terms of the sales agreement, the Company
may offer and sell its common shares at any time and from time to
time through Evercore as its sales agent.  Sales of the common
shares, if any, will be made by means of ordinary brokers'
transactions on The Nasdaq Global Select Market or otherwise at
market prices prevailing at the time of sale, at prices related
to the prevailing market prices, or at negotiated prices.

George Economou, Chairman and Chief Executive Officer of the
Company, commented:

"Drybulk shipping rates and ship values have increased recently
and we believe this trend will continue particularly in the
larger asset classes.  Given the improved market backdrop, we
believe this is an opportune time to flexibly access the equity
capital markets to reduce some or all of our funding needs
through 2014 that we currently estimate at $150 million.  In
addition, we are nearing agreements with certain banking
syndicates to reduce our debt service payments over the next year
and adjust certain financial covenants.  Finally, we are pleased
to report that Ocean Rig continues to improve its level of
performance.  Preliminary data for the third quarter of 2013
indicates that the Ocean Rig fleet operated at a 98.5% operating
efficiency on available for drilling days, which is a record for
Ocean Rig."

                        About DryShips Inc.

Headquartered in Athens, Greece, DryShips Inc. (NASDAQ: DRYS) is
an owner of drybulk carriers and tankers that operate worldwide.
Through its majority owned subsidiary, Ocean Rig UDW Inc.,
DryShips owns and operates 10 offshore ultra deepwater drilling
units, comprising of 2 ultra deepwater semisubmersible drilling
rigs and 8 ultra deepwater drillships, 3 of which remain to be
delivered to Ocean Rig during 2013 and 1 is scheduled for
delivery during 2015.  DryShips owns a fleet of 46 drybulk
carriers (including newbuildings), comprising of 12 Capesize, 28
Panamax, 2 Supramax and 4 Very Large Ore Carriers (VLOC) with a
combined deadweight tonnage of about 5.1 million tons, and 10
tankers, comprising 4 Suezmax and 6 Aframax, with a combined
deadweight tonnage of over 1.3 million tons.

The Company reported a net loss of US$288.6 million on
US$1.210 billion of revenues in 2012, compared with a net loss of
US$47.3 million on US$1.078 billion of revenues in 2011.

The Company's balance sheet at Dec. 31, 2012, showed
US$8.878 billion in total assets, US$5.010 billion in total
liabilities, and shareholders' equity of US$3.868 billion.

                       Going Concern Doubt

Ernst & Young (Hellas), in Athens, Greece, expressed substantial
doubt about DryShips Inc.'s ability to continue as a going
concern, citing the Company's working capital deficit of
US$670 million at Dec. 31, 2012, and in addition, the non-
compliance by the shipping segment with certain covenants of its
loan agreements with banks.

As of Dec. 31, 2012, the shipping segment was not in compliance
with certain loan-to-value ratios contained in certain of its
loan agreements.  In addition, as of Dec. 31, 2012, the shipping
segment was in breach of certain financial covenants, mainly the
interest coverage ratio, contained in the Company's loan
agreements relating to US$769,098,000 of the Company's debt.  As
a result of this non-compliance and of the cross default
provisions contained in all bank loan agreements of the shipping
segment and in accordance with guidance related to the
classification of obligations that are callable by the creditor,
the Company has classified all of its shipping segment's bank
loans in breach amounting to US$941,339,000 as current at
Dec. 31, 2012.

FREESEAS INC: Inks Exchange Agreement with Crede
FreeSeas Inc., on Sept. 25, 2013, entered into an Assignment and
Amendment Agreement with Deutsche Bank Nederland N.V., Hanover
Holdings I, LLC, Crede CG III, Ltd., and the Company's wholly-
owned subsidiaries, Adventure Two S.A., Adventure Three S.A.,
Adventure Seven S.A. and Adventure Eleven S.A.

As previously reported, the Company entered into a Debt Purchase
and Settlement Agreement with Deutsche Bank, Hanover and the
Company's wholly-owned subsidiaries.

Hanover assigned its right under the Settlement Agreement to
Crede on Sept. 25, 2013.  Pursuant to the terms of the Settlement
Agreement, as amended, Crede agreed to purchase US$10,500,000 of
outstanding indebtedness owed by the Company to Deutsche Bank.
Upon payment in full of the US$10,500,000 purchase price for such
purchased indebtedness by Crede to Deutsche Bank in accordance
with the terms and conditions of the Settlement Agreement, as
amended, the remaining outstanding indebtedness of the Company
and its subsidiaries to Deutsche Bank will be forgiven, and the
mortgages granted to Deutsche Bank on two vessels will be
discharged and the Company would own these two vessels free and
clear of all such liens granted to Deutsche Bank.

On Sept. 26, 2013, Crede filed a complaint against the Company in
the Supreme Court of the State of New York, seeking to recover an
aggregate of US$10,500,000, representing all amounts due under
the Settlement Agreement, as amended.  On Sept. 26, 2013, Crede
and the Company entered into an Exchange Agreement, in order to
settle the Claim.  Pursuant to the Exchange Agreement, upon court
approval, the Company will initially issue and deliver to Crede
5,059,717 shares of the Company's common stock, US$0.001 par
value. The Settlement Shares represent approximately 9.9 percent
of the total number of shares of Common Stock outstanding at the
time of execution of the Exchange Agreement.

A copy of the Exchange Agreement is available for free at:


                        About FreeSeas Inc.

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

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

Freeseas disclosed a net loss of US$30.88 million in 2012, a net
loss of US$88.19 million in 2011, and a net loss of US$21.82
million in 2010.  The Company's balance sheet at Dec. 31, 2012,
showed US$114.35 million in total assets, US$106.55 million in
total liabilities and US$7.80 million in total shareholders'

RBSM LLP, in New York, issued a "going concern" qualification on
the consolidated financial statements for the year ended Dec. 31,
2012.  The independent auditors noted that the Company has
incurred recurring operating losses and has a working capital
deficiency.  In addition, the Company has failed to meet
scheduled payment obligations under its loan facilities and has
not complied with certain covenants included in its loan
agreements.  It has also failed to make required payments to
Deutsche Bank Nederland as agreed to in its Sept. 7, 2012,
amended and restated facility agreement and received notices of
default from First Business Bank.  Furthermore, the vast majority
of the Company's assets are considered to be highly illiquid and
if the Company were forced to liquidate, the amount realized by
the Company could be substantially lower that the carrying value
of these assets.  These conditions, among others, raise
substantial doubt about the Company's ability to continue as a
going concern.


ALITALIA SPA: At Risk of Bankruptcy if Capital Increase Fails
Giselda Vagnoni at Reuters reports that a government source said
on Tuesday loss-making Italian airline Alitalia SpA risks having
to file for bankruptcy if no deal on a proposed capital increase
is reached in a couple of weeks.

According to Reuters, Alitalia needs about EUR500 million (GBP423
million) to keep going and invest in a new turnaround strategy,
analysts have said, after accumulating losses of more than EUR1
billion and debt of a similar size since being privatized in

Its shareholders will vote on a capital increase of at least
EUR100 million on Oct. 14 to help to keep the company in
business, Reuters discloses.

Reuters relates that suppliers have said the group has come under
increasing pressure and has also fallen behind in its payments
for fuel.

"In four or five days, Alitalia risks not being able to fly,"
Reuters quotes the source as saying.

                          About Alitalia

Alitalia-Compagnia Aerea Italiana has navigated its way through
a successful restructuring.  After filing for bankruptcy
protection in 2008, Alitalia found additional investors, acquired
rival airline Air One, and re-emerged as Italy's leading airline
in early 2009.  Operating a fleet of about 150 aircraft, the
airline now serves more than 75 national and international
destinations from hubs in Fiumicino (Rome), Milan, Turin, Venice,
Naples, and Catania.  Alitalia extends its network as a member of
the SkyTeam code-sharing and marketing alliance, which also
includes Air France, Delta Air Lines, and KLM.  An Italian
investor group owns a majority of the company, while Air France-
KLM owns 25%.

BANCA MONTE: Pledges to Cut 3,360 Jobs & Increase Capital
Sonia Sirletti and Elisa Martinuzzi at Bloomberg News report that
Banca Monte dei Paschi di Siena SpA, Italy's third-biggest bank,
pledged to cut an extra 3,360 jobs and increase capital to win
European Union support for EUR4.1 billion (US$5.6 billion) in

According to Bloomberg, Monte Paschi said on its website on
Monday that the company will shed 8,000 staff by 2017, up from a
previous goal of 4,640 reductions by 2015.  The Siena-based
company will also carry out a EUR2.5 billion share sale next year
and reduce administrative costs by EUR440 million by 2017,
Bloomberg discloses.

Mr. Viola, 55, and Chairman Alessandro Profumo are being forced
by European regulators to conduct a more rigorous overhaul of the
world's oldest bank than initially planned to secure the state
aid, Bloomberg notes.  Messrs. Viola and Profumo, 56, appointed
last year, sought the cash after their predecessors lost billions
of dollars on Italian sovereign debt and derivatives contracts,
Bloomberg recounts.

The plan, Bloomberg says, also sets a profit goal of about
EUR900 million for 2017 and caps management pay at EUR500,000
annually.  The bank already reduced its workforce by 2,700 to
28,473 as of the end of June, Bloomberg states.

Monte Paschi said on Monday it expects EU approval of its
restructuring plan by Nov. 14, Bloomberg relates.

Monte Paschi, as cited by Bloomberg, said it will use the capital
increase to help repay EUR3 billion of government funds next year
and the rest by 2017.  UBS AG is advising on the offering,
Bloomberg says.

According to Bloomberg, Chief Financial Officer Bernardo Mingrone
said on on Monday's conference call with Mr. Viola the state aid
will be converted into new shares for the government "should
market conditions prevent the completion of the capital raising
within the time frame set".

Banca Monte dei Paschi di Siena SpA -- is
an Italy-based company engaged in the banking sector.  It
provides traditional banking services, asset management and
private banking, including life insurance, pension funds and
investment trusts.  In addition, it offers investment banking,
including project finance, merchant banking and financial
advisory services.  The Company comprises more than 3,000
branches, and a structure of channels of distribution.  Banca
Monte dei Paschi di Siena Group has subsidiaries located
throughout Italy, Europe, America, Asia and North Africa.  It has
numerous subsidiaries, including Mps Sim SpA, MPS Capital
Services Banca per le Imprese SpA, MPS Banca Personale SpA, Banca
Toscana SpA, Monte Paschi Ireland Ltd. and Banca MP Belgio SpA.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on Sept. 18,
2013, Fitch downgraded MPS's Viability Rating (VR) to 'ccc' from
'b' and removed it from Rating Watch Negative (RWN).

As reported by the Troubled Company Reporter-Europe on June 19,
2013, Standard & Poor's Ratings Services said that it lowered its
long-term counterparty credit rating on Italy-based Banca Monte
dei Paschi di Siena SpA (MPS) to 'B' from 'BB', and affirmed the
'B' short-term rating.  S&P also lowered its rating on MPS' Lower
Tier 2 subordinated notes to 'CCC-' from 'CCC+'.  S&P affirmed
the ratings on MPS' junior subordinated debt at 'CCC-' and on its
preferred stock at 'C'.  At the same time, S&P removed the
ratings from CreditWatch, where it placed them with negative
implications on Dec. 5, 2012.


Moody's Investors Service has assigned a (P)B3 rating to the
proposed EUR200 million PIK Toggle Notes due 2018 to be issued by
Xella HoldCo Finance S.A., with a stable outlook.

At the same time, Moody's placed Xella International S.A.'s
Corporate Family Rating (CFR) of Ba3 and Probability of Default
Rating (PDR) of Ba3-PD under review for downgrade.

Moody's also affirmed the existing Ba3 rating on EUR300 million
senior secured notes due 2018 issued by Xefin Lux S.C.A.

Moody's issues provisional ratings in advance of the final sale
of securities and these ratings reflect Moody's preliminary
credit opinion regarding the transaction only. Upon conclusive
review of the final documentation, Moody's will endeavor to
assign a definitive rating to the PIK Toggle Notes. A definitive
rating may differ from a provisional rating.

Ratings Rationale:

The review for downgrade of CFR and PDR follows the offering of
EUR200 million PIK Toggle Notes by Xella HoldCo Finance S.A.,
which is a sister company of Xella International Holdings S.
r.l., the parent entity of Xella International S.A. ("Xella").
The proceeds from the PIK Notes will be used by the Issuer to
purchase the existing Vendor Loan Note (which will remain
outstanding) from Haniel as well as for cash over-funding of the

Upon the successful closing of the PIK Notes transaction Moody's
expects to move the CFR from Xella International S.A. to Xella
International Holdings S. r.l.reflecting Moody's view that all
Xella's group debt including the new PIK Toggle Note should be
considered in consolidated metrics. This will also lead to
downwards pressure on the company's financial metrics, such as
leverage, interest cover and cash flow generation. As a result
Moody's expects to downgrade CFR and PDR to B1 upon transaction
closing, with stable outlook.

Xella HoldCo Finance S.A. is a holding company with no
independent business operations and will rely on cash provided by
Xella International Holdings S.  r.l. under the Vendor Loan Note.
Xella International Holdings S. r.l. itself is a holding
company with no independent business operations and will rely on
cash up-streaming from its subsidiaries to service interest on
the Vendor Loan. The proposed PIK Toggle Notes include a "pay if
you can" mechanism of cash interest payments, subject to
availability of cash and maximum amount of permitted dividends,
distributions or restricted payments available for up-streaming.
Such distributions are limited, among other things, by a maximum
1.75x net senior secured leverage requirement under the existing
senior facilities agreement.

The (P)B3 rating for the PIK Toggle Notes reflects their
subordination to all other debt within the group. The notes are
guaranteed by Xella International Holdings S. r.l. only and
secured by a pledge over rights of the issuer under the Vendor
Loan Note from the issuer to Xella International Holdings S.
r.l. remaining in the structure. The Vendor Loan Note amount of
EUR244 million is in excess of that of the PIK Toggle notes to be
issued. However Moody's understands that cash interest payments
under the Vendor Loan Note will be matched with those on the PIK
Toggle Notes (except that the final maturity of the Vendor Loan
Note will be on August 29, 2018, prior to the final maturity of
the PIK Toggle Notes).

Gross leverage (including the PIK notes) as adjusted by Moody's
is expected to be at c. 5.3x at the transaction closing, or 5.5x
including a higher amount of the Vendor Loan Note which will be
included in Xella International Holdings S. r.l.'s balance

In addition to the issuance of PIK Toggle notes, the company is
extending the maturity of some of its senior secured bank

The company demonstrated resilient performance in 2012 despite
continued soft market conditions in European construction
industry, with 1% year-on-year growth in sales and 4% increase in
management EBITDA. The performance was supported by a continued
robust environment in Germany, which contributed c. 45% of
Xella's sales in 2012, the strength of Xella's brands and the
diversification resulting from Xella's presence in the higher-
margin lime business. In the first half of 2013, Xella's sales
and management EBITDA declined by 4% and 10% respectively
reflecting severe weather conditions affecting the industry in
the first quarter. However, this was somewhat mitigated by a
recovery in the second quarter.

As of June 30, 2013 Xella's liquidity consisted of EUR55 million
cash balance at Xella International S.A. level, and a EUR75
million undrawn RCF, the availability of which was reduced by
EUR21 million guarantees. Moody's views Xella's liquidity, pro
forma for the transaction, as adequate. The pro forma liquidity
will include c. EUR23 million cash located at Xella International
Holdings Sarl, and c. EUR18 million cash overfunding at the
issuer (pro forma for the transaction costs). Cash balance at
Xella International Holdings Sarl and the issuer is expected to
be used to pay cash interest on the PIK notes.

The principal methodology used in these ratings was the Global
Building Materials Industry published in July 2009. 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 Duisburg (Germany), Xella is a manufacturer of
modern building materials and a producer of lime. Xella is
currently owned by PAI partners and Goldman Sachs Capital
partners. The company reported consolidated revenues of EUR1.3
billion for the year ended 31 December 2012.

POLIMEX-MOTOSTAL: Banks Get Request to Set Aside Provisions
Konrad Krasuski at Bloomberg News, citing Gazeta Wyborcza,
reports that some Polish banks received request from the
financial regulator to set aside provisions for 100% of Polimex's

According to Bloomberg, Gazeta said others were asked to consider
it as high-risk.

Bloomberg relates that Gazeta said Lukasz Dajnowicz, spokesman
for regulator, declined to comment on Polimex and said that the
watchdog "regularly reminds banks" on legal requirements
concerning provisions.

Gazeta, as cited by Bloomberg, said that Polimex banking debt
amounted to PLN800 million at end-June, while bank guarantees
were at PLN1.26 billion.

Gazeta said that PKO, Pekao, Bank Zachodni, Bank Ochrony
Srodowiska are among largest Polimex's largest creditors,
Bloomberg notes.

As reported by the Troubled Company Reporter-Europe on July 2,
2013, Bloomberg News related that Polimex failed to pay interest
on its debt by the June 28 deadline.  The company signed in
December 2012 a deal with creditors allowing it to restructure
outstanding debt and raise new capital, Bloomberg disclosed.

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 a large
manufacturer and exporter of steel products, including platform
gratings, in Poland.

U N I T E D   K I N G D O M

DENIZEN: In Administration, Stops Work on Ageas Bowl
BBC News reports that work to build a hotel at Hampshire's Ageas
Bowl cricket ground has stopped after the developers, Denizen,
went into administration.

The multi-million pound project, backed by GBP38.5million from
Eastleigh council, will see a new 175-room Hilton Hotel.

Council leader Keith House said taxpayers were not exposed as the
council is buying the completed hotel, according to BBC News.

The report relates that developer Denizen said efforts to turn
the firm around failed.

"The move follows stringent efforts . . . to fix the business
after 'serious flaws' were unearthed in the pricing of a number
of the contracts . . . . The current outcome . . . was never
envisaged and it was the new board's expectation that they would
be able to complete the three contracts on its books," Denizen
said in a statement, according to BBC News.

In an email obtained by BBC News, managing director Steven McGee
wrote: "We have encountered considerable difficulties in
progressing and completing current projects . . . . This has been
brought about by erroneous project budgets, exacerbated by supply
chain cost increases as the industry emerges from recession . . .
. The Southampton project will be closed forthwith until a
solution can be found."

BBC News notes that it is not yet clear how many jobs will be
affected.  The Ageas Bowl development was agreed in 2012 with the
council committing to invest GBP38.5million.

The report adds that the hotel was "75% completed" and was
confident it would be finished without a long delay.

DICKINSON HASLAM: Linder Myers Buys Firm Via Pre-Pack Deal
John Brazier at InsolvencyNews reports that Northern law firm
Linder Myers Solicitors has acquired the practice of Dickinson
Haslam via a pre-pack deal.

Paul Stanley and Dean Watson of Begbies Traynor were in charge of
the insolvency and resulting sale of Dickinson Haslam, the report

The deal, completed for an undisclosed sum, is another step
towards Linder Myers' fee income goal of GBP25 million by 2015.

"Dickson Haslam has gained an enviable reputation for providing
quality legal services in Lancashire with a long history in the
region," the report quotes Bernard Seymour, managing partner at
Linder Myers, as saying.  "I am pleased to welcome the new teams
to the business and look forward to building on our combined
strengths as we continue to grow the practice."

InsolvencyNews relates that Dickson Haslam directors David
Southern and Raymond Green said: "Dickson Haslam has been
providing legal services in Lancashire for more than two
centuries; however, the current market has been the most
challenging in the history of the firm.

"Linder Myers proved a good cultural and business fit for us with
a strong infrastructure allowing us to better service clients and
we look forward to working with our new colleagues."

FAREPAK: GBP1 Million Still Available For Savers
Emma Lidiard at Swindon Advertiser reports that a GBP1 million
pot of money is still available for victims who lost out after
Farepak collapsed nearly seven Christmases ago.

About 114,000 people were told last year they would be able to
claim compensation after the Swindon-based festive hamper company
closed in 2006, according to the report.

Swindon Advertiser says the Insolvency Service has confirmed that
about GBP1 million is still left from GBP1.03 million handed to
them by liquidators BDO.

The report relates that labour's prospective parliamentary
candidate for South Swindon, Anne Snelgrove, who campaigned for
families to receive compensation, urged residents to come forward
and claim their money, "We have run a number of campaigns trying
to get people to put in their claims," the report quotes
Mrs. Snelgrove as saying.

"I suspect a lot of people in Swindon don't want to rake up the
past because it was a very painful time and people don't want to
go through that pain again. When the firm went under lots of
families were faced with no money to buy presents after they had
paid into the Christmas saving scheme. A number of campaigns were
launched by different organisations to raise money for families

Farepak Food & Gifts Ltd. (fka Floatraise Ltd., Kleeneze U.K.
Ltd. and Kleeneze Investments Ltd.) and Farepak Mail Order Ltd.
(fka Farepak Hampers Ltd., Farepak Ltd. and Farepak Hampers
Ltd.) called in Martha H. Thompson and Dermot Power of BDO Stoy
Hayward as joint liquidators on Oct. 4, 2007, for the creditor's
voluntary winding-up proceeding.

Farepak moved from administration to creditors' voluntary
liquidation following the joint administrators' proposals, a
course of action approved by 97% of the company's creditors.

Farepak Food & Gifts Ltd., Farepak Hampers Ltd., Farepak
Holdings Ltd., and Farepak Mail Order Ltd. appointed BDO Stoy
Hayward LLP as joint administrators on Oct. 13, 2006.

SHIP LUXCO: Moody's Affirms 'Ba3' Corporate Family Rating
Moody's Investors Service has affirmed Ship Luxco 3 Sarl's
(WorldPay or the company) Ba3 corporate family rating (CFR) and
B1-PD probability of default rating (PDR) as well as the Ba3
instrument ratings of the Term Loan A, B and C, the CAR Facility,
the Acquisition Facility, and Revolving Credit Facility (RCF).
Moody's has also assigned a (P)Ba3 instrument rating to the
GBP150 million add-on term loan facility maturing in 2019 (add-on
facility) that, depending on the final currency of the facility,
will be issued by either Ship Midco Limited (for GBP issuance),
or WorldPay US Inc or WorldPay US Finance LLC (for USD issuance),
all subsidiaries of the company. The outlook on all ratings is

Moody's issues provisional ratings in advance of the final sale
of securities and these ratings reflect Moody's preliminary
credit opinion regarding the transaction only. Upon a conclusive
review of the final documentation, Moody's will endeavor to
assign a definitive rating to the facilities. A definitive rating
may differ from a provisional rating.

Ratings Rationale:

Moody's decision to affirm WorldPay's Ba3 CFR reflects Moody's
expectation that the company will be able to sustain its positive
momentum in terms of revenue and EBITDA growth while maintaining
an adequate liquidity position in order to mitigate the
significant upwards revision of separation and new platform costs
and the re-leveraging event following the raising of the add-on

Subject to lenders' consent, WorldPay intends to raise the GBP150
million add-on term loan facility, the proceeds of which will be
used to finance the acquisition of Century Payments, WorldPay's
largest Independent Sales Organization (ISO) in the United
States, for a purchase price including transaction costs of GBP55
million. The remaining GBP95 million will be used for general
corporate purposes and potential future bolt-on acquisitions.

Following the issuance of the add-on facility and the acquisition
of Century Payments, WorldPay's adjusted gross leverage will
increase to slightly above 5.0x. However, based on the company's
strong recent operating performance and expected continued
momentum, we expect that WorldPay will be able to de-leverage to
below 5.0x over the short-term.

In 2012, all of WorldPay's business units experienced income
growth of 6%, 15%, and 19% for UK Streamline, eCommerce, and
WorldPay US, respectively. This strong performance group-wide led
to an increase in EBITDA (pre separation and exceptional as
reported by the company) to GBP305 million compared to GBP270
million a year earlier. The positive trend continued in H1 2013
as total income increased by 9% compared to the same period last
year driven by a 6% income growth for Streamline, 13% for
eCommerce and 8% for WorldPay US. In H1 2013, EBITDA grew by
11.3% to GBP155 million versus H1 2012 driven by income growth
and tight cost control.

WorldPay's liquidity position has been impacted over the last
couple of quarters by the significant P&L and Capex spend related
to the separation process from Royal Bank of Scotland and the set
up of a new operational platform. In October 2013, WorldPay
announced that it had revised its estimated total spend to GBP400
million from GBP300 million due to the slightly slower pace for
full build of the new platform and the lower risk approach to
customers migration. While the additional spend puts further
pressure on WorldPay's free cash flow generation which should
remain depressed over 2013 and 2014, we take into consideration
that it is limited in time as the platform is expected to be
completed by Q1 2015. Until completion, the company's liquidity
should remain adequate supported by a cash balance of GBP130
million as of July 2013 or GBP225 million (pro-forma for the
raising of the add-on facility and the acquisition of Century
Payments) and the undrawn GBP75 million RCF.

WorldPay's B1-PD PDR is one notch below the CFR, as a result of
the assumed group recovery rate of 65% due to the senior secured
bank debt-only capital structure. The GBP150 million add-on term
loan facility will rank pari-passu with the company's existing
Term Loan A, B, and C, the CAR Facility, the Acquisition Facility
and the Revolving Credit Facility (together the term loans) and
benefit from the same security and guarantee package. The
instrument ratings of the term loans are in line with the
company's Ba3 CFR in the absence of other significant liabilities
ranking ahead or below.

The stable rating outlook reflects our expectation that WorldPay
will be able to raise the add-on facility in order to finance the
acquisition of Century Payments and improve the company's
liquidity position and will maintain its strong momentum in terms
of operating performance resulting in its adjusted gross leverage
falling below 5.0x in a short period of time.

What Could Change the Ratings Down/Up:

Moody's believes that if the company were able to maintain
margins in line with expectations, defend its strong market
position leading to debt/EBITDA ratio close to around 4.0x and
EBITDA-Capex/Interest Expense above 2.5x, while maintaining a
strong liquidity, there could be scope for positive pressure on
its ratings over time. Conversely, negative pressure could result
if the ratio of EBITDA-Capex/Interest Expense deteriorates below
2.0x over a sustained period of time, debt/EBITDA ratio trends
towards 5.5x, and free cash flow remains weak. Any significant
upwards revision of separation and platform set up costs or any
major implementation issues as the company transitions to the new
platform could also result in negative ratings pressure.

Headquartered in London (UK), WorldPay is a leading global
payment services provider. The company offers services across the
whole acquiring value chain including transaction capture,
processing and acquiring.

UK COAL: Collapse Hit Local Businesses; Owes Selby Council
Yorkshire Post reports that when a deal to save up to 2,000 jobs
at eight UK coal mines -- including Kellingley Colliery -- was
announced in July, there was rejoicing in the mining communities
they served.

However, some local businesses who were owed money following the
collapse of the company that ran the mines are facing a deficit
running into thousands of pounds, Yorkshire Post discloses.

According to Yorkshire Post, they include Donna Smith, of Selby-
based Flowclean Services, who claims that some firms are facing
"serious financial problems".  She believes the company which has
emerged from the collapse of UK Coal should pay back all the
money it owed, Yorkshire Post discloses.  Her company, which
worked at Kellingley for 24 years, is owed GBP10,000 by UK Coal,
and she fears she has little or no chance of getting the money
back, Yorkshire Post says.

Other creditors include Selby Council, which is owed more than
GBP126,000, Yorkshire Post notes.

Ms. Smith, as cited by Yorkshire Post, said: "These companies,
including ourselves, have to plug the holes in their accounts.
The knock-on effect for us could result in serious financial
implications, resulting in the loss of jobs, orders to other
local companies being cancelled, and maybe even closure of our

UK Coal, which operates deep mines at Kellingley in North
Yorkshire and Thoresby in Nottingham, announced in July that two
of its companies had gone into administration, Yorkshire Post
relates.  UK Coal Mine Holdings and UK Coal Operations' assets
are now held in individual companies owned by a new business, UK
Coal Production, Yorkshire Post notes.

The restructuring plans have seen the remaining mines taken over
with the backing of Britain's pension rescue scheme, The Pension
Protection Fund (PPF), Yorkshire Post states.

According to Yorkshire Post, a spokesman for Selby Council
confirmed that UK Coal owed the council GBP126,473 in national
non-domestic rates.  The council, Yorkshire Post says, is working
with the administrators to recover this amount.
Yorkshire Post relates that a UK Coal spokesman said the
administration of UK Coal Mine Holdings and UK Coal Operations
followed a devastating fire that closed the Daw Mill deep mine in

"Production of coal from Daw Mill represented around a third of
UK Coal Operations' revenue and the forced closure of the mine
had threatened the ongoing viability of the remaining two deep
mines and six surface mines," Yorkshire Post quotes the spokesman
as saying.

"A compromise with major creditors was agreed which enabled the
viable mining operations at Kellingley and Thoresby deep mines,
and the six surface mines, to successfully restructure and secure
2,000 jobs.

"As part of the restructuring, many difficult decisions had to be
taken but this was the best outcome possible to preserve any of
the business and save jobs."

A spokesman for Mr. Adams, as cited by Yorkshire Post, said he
had written to Michael Fallon, the Minister of State for Energy
last month in connection with the points raised by Ms Smith.

A spokesman for the administrators, PricewaterhouseCoopers (PwC)
declined to comment, but confirmed that the creditors' report has
not been released yet, Yorkshire Post notes.

UK Coal plc -- is a United Kingdom-
based company engaged in surface and underground coal mining,
property regeneration and management, and power generation.


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
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re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

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

The TCR Europe subscription rate is US$775 per half-year,
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,
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