TCREUR_Public/131227.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

           Friday, December 27, 2013, Vol. 14, No. 255



KEM ONE: Court Ends Insolvency Process; OKs Arkema Takeover


* IRELAND: Examinership Process Saves 832 Jobs in SMEs in 2013


LIEPAJAS METALURGS: To Be Delisted From the Baltic Secondary List


GROSVENOR PLACE CLO I: S&P Raises Rating on Class E Notes to BB-


TDA CAM 4: S&P Lowers Rating on Class B Notes to 'CCC-'
TDA CAM 7: S&P Lowers Rating on Class B Notes to 'D'

U N I T E D   K I N G D O M

ALBEMARLE & BOND: Better Capital Walks Away From Bidding Race
BROADVIEW BLINDS: Sold Out of Administration; 31 Jobs Saved
LEE GROUP: Halts Trading; 90 Jobs Affected
MARBLE ARCH: S&P Lowers Rating on Class B1 Notes to 'BB+'
PREMIER FOODS: In Talks with Trustees Over Deal to Cut Debts

TIMES NEWSPAPERS: Loses More Than GBP500 Million in Past Decade
ZLOMREX INTERNATIONAL: Chapter 15 Case Summary

* Number of Insolvent Accountancy Firms Hits 41% in a Year
* Cornwall Corporate Insolvency on the Rise, Begbies Traynor Says
* UK Retailers Facing "Critical" Financial Problems Up 8%


* BOOK REVIEW: A Legal History of Money in the United States



KEM ONE: Court Ends Insolvency Process; OKs Arkema Takeover
The Lyon commercial court has designated the new owner of Kem One
SAS to put to an end the insolvency proceedings opened on
March 27, 2013.

The commitment of all stakeholders involved, under the aegis of
the public authorities, has enabled the takeover of the company
and the continuation of its business as part of a takeover bid
validated by the commercial court with the full support of the
French government.

In order to facilitate the takeover, Arkema has in particular
waived all its claims on Kem One SAS which had been fully
provisioned, adjusted certain commercial services provided to Kem
One SAS, and undertaken, under certain conditions, to ensure the
internal redeployment of 100 Kem One SAS employees.

On top of the provisions booked in the first quarter financial
accounts related to the insolvency proceeding of Kem One, Arkema
will record in its fourth quarter financial accounts a net
exceptional expense of an estimated amount ranging between
EUR15 million and EUR20 million.

A global chemical company and France's leading chemicals
producer, Arkema is building the future of the chemical industry
every day. Deploying a responsible, innovation-based approach,
the company produces state-of-the-art specialty chemicals that
provide customers with practical solutions to such challenges as
climate change, access to drinking water, the future of energy,
fossil fuel preservation and the need for lighter materials. With
operations in more than 40 countries, some 14,000 employees and
10 research centers, Arkema generates annual revenue of EUR6.4
billion, and holds leadership positions in all its markets with a
portfolio of internationally recognized brands.

KemOne is a France-based chlor-alkali and polyvinyl chloride
maker.  The company operates at 22 industrial sites in 10
countries and has 2,600 employees, of whom 1,780 are based in

A French commercial court opened bankruptcy proceedings for Kem
One in March 2013 at the request of its new owner, Klesch Group,
led by American investor Gary Klesch.


* IRELAND: Examinership Process Saves 832 Jobs in SMEs in 2013
Business & Leadership reports that the latest quarterly Hughes
Blake SME Examinership Index shows examinership process saved 832
jobs in small and medium businesses in Ireland during 2013.

According to Business & Leadership, an additional 1,410 jobs were
saved in examinership of large companies.  The index also reveals
that 16 of the 19 businesses that successfully concluded
examinership in 2013 were SMEs, Business & Leadership notes.

At year end, the process was responsible for sustaining a further
449 jobs in firms that are continuing to trade under the
protection of examinership with agreed survival schemes to be
confirmed for these six companies in January, Business &
Leadership discloses.  In all, it is expected that examinership
will have been responsible for sustaining 2,691 Irish jobs in
2013, Business & Leadership relays.


LIEPAJAS METALURGS: To Be Delisted From the Baltic Secondary List
NASDAQ OMX Riga Management Board resolved on its meeting of
Dec. 20, 2013 to delist AS "Liepajas metalurgs" shares (ISIN
LV0000100535, code LME1R) from the Baltic Secondary List. The
last listing day of AS "Liepajas metalurgs" is Dec. 27, 2013.

NASDAQ OMX Riga Management Board passed the resolution pursuant
to NASDAQ OMX Riga listing and disclosure rules, fulfilling AS
"Liepajas metalurgs" insolvency process administrator's Haralds
Velmers request to delist AS "Liepajas metalurgs" shares from
regulated market.

In accordance with  the article 63, paragraph one, point 2 of the
Insolvency Law after the proclamation of insolvency proceedings
of a legal person the activity of the administrative institutions
of the debtor have been suspended, and the administration of the
debtor is performed by the administrator. Administrator's
decision to delist AS "Liepajas metalurgs" shares from the
regulated market was taken on Dec. 18, 2013.

Liepajas Metalurgs is a Latvian metallurgical company.

As reported by the Troubled Company Reporter-Europe on Nov. 15,
2013, The Baltic Times related that the Liepaja Court launched
insolvency process against the financially-troubled Liepajas
Metalurgs.  The court has decided to halt the companies legal
protection process and launch an insolvency process against it,
The Baltic Times disclosed.  Liepajas Metalurgs legal protection
administrator, Haralds Velmers, has been appointed the company's
insolvency administrator, The Baltic Times said.  Mr. Velmers'
insolvency petition was submitted to the court on Nov. 4, The
Baltic Times recounted.


GROSVENOR PLACE CLO I: S&P Raises Rating on Class E Notes to BB-
Standard & Poor's Ratings Services raised its credit ratings on
Grosvenor Place CLO I B.V.'s class A-1, A-2, A-3, A-4, B, C, D,
and E notes.

Since S&P's March 2012 review, it notes that the transaction's
performance has benefited from the following factors:

   -- The class A-1, A-2, and A-3 notes have amortized to 26% of
      their original balance (taking into account currency
      exchange rate changes);

   -- The class E notes have amortized to 59% of their original

   -- Overcollateralization has increased for all classes of
      notes since its March 2012 review; and

   -- The portfolio's weighted-average spread has increased to
      3.90% from 3.45%.

                                     Notional               OC
                           Current      as of Current    as of
        Rating   Rating   notional   Mar.2012      OC Mar.2012
Class       to     from     (mil.)     (mil.)     (%)      (%)
A-1    AAA(sf)   AA(sf)   EUR45.99  EUR171.01      71       38
A-2    AAA(sf)   AA(sf)    GBP7.32   GBP27.21      71       38
A-3    AAA(sf)   AA(sf)    EUR9.59   EUR37.21      71       38
A-4    AAA(sf)   A+(sf)   EUR20.00   EUR20.00      60       33
B      AA-(sf)  BBB(sf)   EUR47.00   EUR47.00      35       21
C     BBB+(sf)  BB+(sf)   EUR19.00   EUR19.00      24       16
D      BB+(sf)   BB(sf)   EUR14.50   EUR14.50      17       12
E      BB-(sf)   B+(sf)    EUR5.91   EUR10.00      13       10
F Sub  NR        NR       EUR41.50   EUR41.50       0        0

OC -- Overcollateralization.
NR -- Not rated.
Note: S&P converted non-euro amounts using the prevailing spot

S&P applied various cash flow scenarios incorporating different
default patterns, interest rate curves, and foreign exchange
stresses, to determine each tranche's break-even default rate at
each rating level.

                                                         As of
                                             Current  Mar.2012
Portfolio of assets total notional (mil.EUR)  194.87    388.61
Principal cash amount (mil.EUR)                 9.08      1.15
Weighted-average spread (%)                     3.90      3.45
AAA WARR (%)                                   36.75     41.50
AA WARR (%)                                    42.00     46.25
A WARR (%)                                     46.50     50.25
BBB WARR (%)                                   51.00     54.50
BB WARR (%)                                    59.75     64.00
B/CCC WARR (%)                                 63.50     67.75
Portfolio weighted-average rating                  B         B
Portfolio weighted-average life (years)         3.63      4.22
Reinvestments assumed                             No       Yes
Number of obligors                                28        49

WARR -- Weighted-average recovery rate.
Note: S&P converted non-euro amounts using the prevailing spot

Of the transaction's collateral, 11% is exposed to country risk
through Spain (BBB-/Stable/A-3), and 5% through Italy
(BBB/Negative/A-2; unsolicited).  Under S&P's nonsovereign
ratings criteria, it limit the credit given to assets in
countries with a sovereign rating of more than six notches below
the liabilities' rating to 10% of the total collateral.
Therefore, in S&P's 'AAA' and 'AA+' cash flow scenarios, it
applied a EUR11.81 million haircut to the collateral, and a
EUR1.31 million haircut (discount) in its 'AA' scenario.

Taking the above factors into account, S&P considers that the
available credit enhancement for all of the rated notes is
commensurate with higher ratings.  S&P has therefore raised its
ratings on all classes of notes.

Grosvenor Place CLO I is a cash flow collateralized loan
obligation (CLO) transaction managed by CQS Cayman Limited
Partnership.  It is backed by a portfolio of loans to European
corporate firms.  The transaction closed in June 2006 and entered
its amortization period in July 2012.


Class            Rating
            To            From

Grosvenor Place CLO I B.V.
EUR366 Million, GBP27.528 Million Floating-Rate Notes

Ratings Raised

A-1         AAA (sf)      AA (sf)
A-2         AAA (sf)      AA (sf)
A-3         AAA (sf)      AA (sf)
A-4         AAA (sf)      A+ (sf)
B           AA- (sf)      BBB (sf)
C           BBB+ (sf)     BB+ (sf)
D           BB+ (sf)      BB (sf)
E           BB- (sf)      B+ (sf)


TDA CAM 4: S&P Lowers Rating on Class B Notes to 'CCC-'
Standard & Poor's Ratings Services lowered to 'CCC- (sf)' from
'BB (sf)' its credit rating on FTPYME TDA CAM 4, Fondo de
Titulizacion de Activos' class B notes.

The downgrade follows S&P's review of the transaction's
performance using October 2013 data.

Cumulative defaults have increased to 6.94% of the portfolio's
original balance in October 2013 from 4.85% in October 2012.
Under the transaction documents, if cumulative defaults exceed
8.00% of the securitized assets' original balance as of closing,
the class B notes' interest would be deferred until after the
senior notes amortize.  Due to the increased cumulative defaults
over the past year, class B notes' interest deferral trigger will
likely be breached in the short term, in S&P's view.

The fast pace of observed and forecasted of credit deterioration,
in S&P's view, increases the default risk of the class B notes.
The class B notes' available credit enhancement -- calculated
with a performing balance excluding 90+ day arrears -- has
decreased to 1.04% from 4.23%, as the reserve fund has been fully
depleted over the last year.

The likelihood of a breach of the class B notes' interest
deferral trigger and the decreasing available credit enhancement
increase their default probability in line with a 'CCC- (sf)'
rating level. According to S&P's ratings definitions, an
obligation rated in the 'CCC' rating category is vulnerable to
nonpayment, and is dependent on favorable business, financial,
and economic conditions for the obligor to meet its financial
commitment on the obligation.  If business, financial, or
economic conditions are adverse, S&P considers that the obligor
is not likely to be able to meet its financial commitment on the
obligation.  S&P has therefore lowered to 'CCC- (sf)' from 'BB
(sf)' its rating on FTPYME TDA CAM 4's class B notes.

FTPYME TDA CAM 4 closed in December 2006 and securitizes secured
and unsecured loans granted to small and midsize enterprises
(SMEs).  Banco CAM S.A.U., which has merged with Banco de
Sabadell S.A., is the transaction's originator.  Banco de
Sabadell is the servicer of the loans.

TDA CAM 7: S&P Lowers Rating on Class B Notes to 'D'
Standard & Poor's Ratings Services lowered its credit ratings on
TDA CAM 7, Fondo de Titulizacion de Activos' class A2, A3, and B

The downgrades follow S&P's review of the transaction's
performance using data as of October 2013.

Under the transaction documents, the interest deferral trigger
for the class B notes, which is based on the level of cumulative
defaults over the original balance of the assets securitized at
closing, is 10.0%.  The level of cumulative defaults over the
original portfolio balance has increased to 10.53% in October
2013 from 7.82% in October 2012.  Due to this considerable
increase over the past year, the class B notes breached their
interest deferral trigger on the November 2013 interest payment
date (IPD). As a result of this breach, combined with the full
depletion of the reserve fund in August 2013, the class B notes'
interest was not paid on the last IPD.  S&P's ratings in TDA CAM
7 address the timely payment of interest and the payment of
principal during the transaction's life.  S&P has therefore
lowered to 'D (sf)' from 'CCC (sf)' its rating on TDA CAM 7's
class B notes.

Delinquencies of more than 90 days decreased to 3.26% in October
2013 from 4.42% in October 2012.  While the level of
delinquencies may appear to be stabilizing, the rolling over of
delinquencies into defaults has increased year-on-year to 9.06%
of the assets' outstanding balance in October 2013, from 4.95%.
This has reduced the available credit enhancement for the class
A2 and A3 notes to 6.78% in November 2013 from 10.57% in November
2012.  S&P has therefore lowered to 'A (sf)' from 'AA- (sf)' its
ratings on the class A2 and A3 notes.

TDA CAM 7 closed in October 2006 and securitizes Spanish
residential mortgage loans.  Banco de Sabadell is the originator,
following its merger with Banco CAM S.A.U.


These ratings are based on S&P's applicable criteria, including
those set out in the criteria article "Nonsovereign Ratings That
Exceed EMU Sovereign Ratings: Methodology And Assumptions,"
published on June 14, 2011.  However, please note that these
criteria are under review.

As a result of this review, S&P's future criteria applicable to
ratings above the sovereign may differ from its current criteria.
This potential criteria change may affect the ratings on all
outstanding notes in this transaction.  S&P will continue to rate
and surveil these notes using our existing criteria.


Ratings Lowered

Class                    Rating
              To                      From

TDA CAM 7, Fondo de Titulizacion de Activos
EUR1.75 Billion Mortgage-Backed Floating-Rate Notes

A2            A (sf)                  AA- (sf)
A3            A (sf)                  AA- (sf)
B             D (sf)                  CCC (sf)

U N I T E D   K I N G D O M

ALBEMARLE & BOND: Better Capital Walks Away From Bidding Race
Graeme Evans at The Scotsman reports that Albemarle & Bond's bid
to secure a rescue deal was dealt a blow after a potential buyer
walked away.

According to The Scotsman, Albemarle said on Tuesday it was still
in talks with a number of other interested parties following the
withdrawal of corporate turnaround firm Better Capital, whose
investments include parcel delivery firm City Link and fashion
business Jaeger.

The company put itself up for sale early this month after its
trading was hit by a slump in gold prices and rising competition
in a sector that has more than doubled in size over the past five
years, The Scotsman relays.

It has been trading at a loss in recent months and is in danger
of breaching financial covenants while it looks to secure its
future before the end of a three-month reprieve from its lenders
at the start of February, The Scotsman discloses.

Rival chain H&T is understood to be one of a number of trade and
financial buyers that have formally lodged interest in buying
Albemarle, The Scotsman notes.

"The board of Albemarle & Bond understands that Better Capital
has withdrawn its interest in the company's formal sales process.
The board confirms that the formal sales process is ongoing and
that it is continuing discussions with a number of interested
parties," The Scotsman quotes the company as saying in a
statement issued on Tuesday.

Albemarle & Bond Holdings PLC provides pawnbrokering services.
The Company, through its subsidiaries, provide pawnbroking, check
cashing services, retail jewelry sales and unsecured lending.
Albemarle operates in the United Kingdom.

BROADVIEW BLINDS: Sold Out of Administration; 31 Jobs Saved
A total of 31 jobs has been saved after Broadview Blinds Limited
went into administration.

Broadview Blinds went into administration on Dec. 13, 2013 and
appointed Julie Palmer -- -- and
Simon Campbell -- -- of
business recovery and insolvency specialist Begbies Traynor's
Salisbury office, as administrators.

The company, which is headquartered in Poole, Dorset, but is
renowned for serving customers across the South West region,
produced and fitted a variety of blinds, awnings and shutters for
retail and commercial customers.

Having traded successfully for over 30 years, it was affected by
the economic downturn and the reduction in both new builds and
other sales in the housing market. As a result, the company
sought to refocus the business by expanding its commercial
offering whilst continuing to meet the demands of residential

Immediately after Begbies Traynor's appointment, the business and
assets of part of the company were sold as a going concern to
Broadview Vehicle Awnings Limited.  The seamless transfer
preserved the jobs of 31 staff and ensured the best possible
outcome for creditors affected by the insolvency.

Unfortunately 27 staff were made redundant as the purchasers
restructured the business by closing down a number of the smaller
retail sales outlets.

Julie Palmer, regional managing partner at Begbies Traynor
commented: "Broadview is a well-established, well managed and
operationally sound business which has been restructured
successfully through the rescue mechanism of administration. It
is a difficult time for those who have lost their jobs,
particularly at this time of year, and everything is being done
to assist them. But we're confident the business is now in a
sound position to trade forward and prosper in the future."

LEE GROUP: Halts Trading; 90 Jobs Affected
Lindsay Gale at Demolition & Recycling International reports that
Lee Group has ceased trading with immediate effect with the loss
of all 90 full-time and contract positions.

Reports suggest that the company's debts exceed GBP3 million
(US$4.9 million), Demolition & Recycling International discloses.

Ranked at 52 in this year's D&Ri 100 with a reported turnover for
2012 of GBP18.7 (US$30.6 million), the company entered a Company
Voluntary Arrangement in September this year under which it could
continue to trade and creditors would be paid a dividend of
GBP0.23 in the pound for five years, Demolition & Recycling
International relates.  This was an alternative approach to
liquidation, Demolition & Recycling International notes.

However, according to accountants Begbies Traynor there had been
delays in customer payments and a declining turnover, which have
together prevented the company from surviving, Demolition &
Recycling International relays.  Begbies Traynor, with the
support of HM  Revenue & Customs, who is reported as being owed
GBP715,000 (US$1.2 million), have petitioned for the liquidation
of the company, according to Demolition & Recycling

Lee Group was a UK contractor.

MARBLE ARCH: S&P Lowers Rating on Class B1 Notes to 'BB+'
Standard & Poor's Ratings Services lowered to 'BB+ (sf)' from
'BBB (sf)' its credit rating on Marble Arch Residential
Securitisation No. 3 Ltd.'s class B1 notes.  At the same time,
S&P has affirmed its ratings on all other classes of notes.

The rating actions follow S&P's credit and cash flow analysis of
the most recent information that it has received for this
transaction (September 2013) and the application of S&P's
relevant criteria.

In the December 2012 investor report, the servicer (Acenden Ltd.)
updated how it reports arrears to include amounts outstanding,
delinquencies, and other amounts owed.  The servicer's definition
of other amounts owed includes (among other items), arrears of
fees, charges, costs, ground rent, and insurance.  Delinquencies
include principal and interest arrears on the mortgages, based on
the borrowers' monthly installments.  Amounts outstanding are
principal and interest arrears, after payments from borrowers are
first allocated to other amounts owed.

In this transaction, the servicer first allocates any arrears
payments to other amounts owed, then to interest amounts, and
subsequently to principal.  From a borrowers' perspective, the
servicer first allocates any arrears payments to interest and
principal amounts, and secondly to other amounts owed.  This
difference in the servicer's allocation of payments for the
transaction and the borrower results in amounts outstanding being
greater than delinquencies.  Except for a 1.93% drop in total
delinquencies between December 2012 and June 2013, amounts
outstanding and delinquencies have both been rising, with the
former increasing at a higher rate.

Acenden uses amounts outstanding to determine the level of 90+
day arrears.  The transaction pays principal sequentially because
the 90+ day arrears trigger of 22.5% (the current level is
32.46%) remains breached.  As the amounts outstanding continue to
increase, S&P considers that the transaction will likely continue
paying principal sequentially and we have incorporated this
assumption in its cash flow analysis.

The transaction's total delinquencies are higher than S&P's U.K.
nonconforming residential mortgage-backed securities (RMBS)
index. In addition, 120+ days delinquencies increased to 15.81%
in September 2013, from 11.07% in September 2012.  Given this
rise in 120+ days delinquencies and to address the potential for
increasing arrears in the pool, it has projected arrears in its
credit analysis.  Further, loan-level data show that previously
certain arrears amounts had been capitalized.  In the absence of
further information on the nature of these amounts, S&P has
considered them as capitalizations of arrears in its analysis.
Consequently, S&P has raised its weighted-average foreclosure
frequency (WAFF) estimates since its previous review on June 8,
2012.  Given the servicer's method of payment allocation for
other amounts owed for the transaction, in S&P's analysis, it
expects potential losses to be higher and has factored the other
amounts owed into its weighted-average loss severity (WALS)

Rating     WAFF     WALS
level       (%)      (%)
AAA       73.10    39.06
AA        67.56    33.25
A         58.31    23.36
BBB       50.43    17.94
BB        43.59    14.49
B         39.77     9.51

With 371 loans remaining and high arrears in the transaction, S&P
has also considered the risk relating to significantly
concentrated back-ended defaults.

As the transaction has been deleveraging, the available credit
enhancement has increased for all classes of notes.  However, the
increased available credit enhancement for the class B1 notes is
insufficient to offset S&P's higher WAFF assumptions.
Consequently, S&P has lowered its rating on the class B1 notes to
'BB+ (sf)' from 'BBB (sf)'.

The remaining classes of notes continue to benefit from
sufficient credit enhancement to support the currently assigned
rating levels.  S&P's current counterparty criteria continue to
cap the maximum achievable ratings on these classes of notes at
its long-term 'A-' issuer credit rating on the Royal Bank Of
Scotland PLC as the currency swap provider.  S&P has therefore
affirmed its 'A- (sf)' ratings on the class A1a, A1b, M1, and M2

Marble Arch Residential Securitisation No. 3 is a securitization
of nonconforming U.K. residential mortgages originated by Matlock


Class       Rating            Rating
            To                From

Marble Arch Residential Securitisation No. 3 Ltd.
EUR221 Million, GBP172.6 Million Mortgage-Backed Floating-Rate

Rating Lowered

B1          BB+ (sf)          BBB (sf)

Ratings Affirmed

A1a         A- (sf)
A1b         A- (sf)
M1          A- (sf)
M2          A- (sf)

PREMIER FOODS: In Talks with Trustees Over Deal to Cut Debts
Scheherazade Daneshkhu at The Financial Times reports that
Premier Foods is in talks with trustees of its pension fund about
a deal to reduce its liabilities as part of a corporate
restructuring which the heavily-indebted company said on Monday
could involve a rights issue next year.

The last rights issue in 2009 was heavily dilutive but Premier's
financial position now is stronger after selling assets and
cutting costs that has led to healthier trading, the FT recounts.
It was also granted a breathing space by its lenders in 2012 when
they agreed a refinancing that lasts until June 2016, the FT

However, new financing would need to be in place by late 2014 for
auditors to sign off on the 2014 accounts and most analysts
expect a deal to be struck some time between March and the autumn
next year, the FT notes.

According to the FT, Premier said it had not made a final
decision on the form of the capital restructuring but analysts
close to the company believe it needs at least GBP300 million in
new equity, as well as a deal with pension trustees and
refinancing of a proportion of its debt in the bond market.

The company also aims to strike a deal with lenders to reduce
their number from 28 to a core group of about five, the FT says.

Premier had GBP890 million of net debt at the end of June, the FT
discloses.  It also has a pension deficit of GBP394.7 million and
pension liabilities of GBP3.65 billion, the FT says. The
company's market value is just GBP313 million, the FT states.

A deal with the trustees is regarded as the first step in the
capital restructuring, the FT notes.  The company was granted a
two-year grace period in 2012 by its pension fund owner to defer
deficit contributions but this runs out next month, the FT

According to the FT, Ondra Partners is conducting an auction and
has drawn up a shortlist of potential investors, dominated by
private equity groups, including PAI Partners and Sun Capital.

Premier Foods plc is United Kingdom-based company engaged in food
manufacturing, processing and distribution.  It is the maker of
Mr. Kipling cakes and Hovis bread.

TIMES NEWSPAPERS: Loses More Than GBP500 Million in Past Decade
Henry Mance at The Financial Times reports that Times Newspapers
Limited, the group that owns The Times newspaper, has lost more
than GBP500 million in the past decade, highlighting the
challenge facing Rupert Murdoch as he seeks to reinvent his media

According to the FT, Times Newspapers, which operates The Times
and The Sunday Times, reported a pre-tax loss of GBP24.4 million
for the year ending June 2013.

That extends a run of losses covering every year since 2002,
triggered by falling circulation and advertising, the FT notes.

The losses total GBP505 million before tax -- more than wiping
out the profits that Rupert Murdoch made after buying the
newspapers in 1981, the FT discloses.

The figures come amid continued difficulties at sister newspaper
The Sun, which has been unable to replace the lost advertising
and circulation of the News of the World, closed following
allegations of phone-hacking, the FT states.

John Witherow, The Times's editor, warned staff earlier this year
that News Corp, which owns both The Times and The Sun, would no
longer subsidise newspaper losses, the FT relays.

It is thought the newspapers are aiming to be profitable within
three years, the FT says.

ZLOMREX INTERNATIONAL: Chapter 15 Case Summary
Chapter 15 Petitioner: Krzysztof Zola

Chapter 15 Debtor: Zlomrex International Finance S.A.
                   90 Long Acre
                   Covent Garden
                   London WC2E 9RZ

Chapter 15 Case No.: 13-14138

Type of Business: Steel company

Chapter 15 Petition Date: December 23, 2013

Court: United States Bankruptcy Court
       Southern District of New York (Manhattan)

Judge: Hon. Sean H. Lane

Chapter 15 Petitioner's Counsel: Richard A. Graham, Esq.
                                 WHITE & CASE, LLP
                                 1155 Avenue of the Americas
                                 New York, NY 10036
                                 Tel: (212) 819-8630
                                 Fax: (212) 354-8113

                                      - and -

                                 Scott G. Greissman, Esq.
                                 WHITE & CASE LLP
                                 1155 Avenue of the Americas
                                 New York, NY 10036
                                 Tel: (212) 819-8567
                                 Fax: (212) 354-8113

Estimated Assets: $100 million to $500 million

Estimated Debts: $100 million to $500 million

* Number of Insolvent Accountancy Firms Hits 41% in a Year
Rachael Singh at Accountancy Age reports that accountancy firms
entering insolvency processes have increase 41% in a year,
according to research from specialist lending business.

Syscap, using Companies House data, found that 103 firms became
insolvent in the last year, up from 73 the year before,
AccountancyAge relays.

The report notes that high street firms have been hit hard this
year, with a crackdown on tax planning and micro entity auditing.

Following revelations that large corporates, such as Starbucks,
Amazon and Google, had used tax planning strategies to cut their
corporation tax payments, firms found they were unable to put
them forward for their clients, over fears of public backlash and
a crackdown by HMRC.

Audit also changed for micro-entities, previously businesses with
less than GBP6.5m turnover and a minimum balance sheet of
GBP3.26m could opt out of having an audit. However, now companies
are exempt if they meet two out of three qualifying criteria - a
balance sheet of less than GBP3.26 million, turnover below
GBP6.5m and fewer than 50 staff.

"Like law firms, larger accountancy firms have also suffered from
the collapse in M&A and corporate finance work. Accountants have
been hit as a result of government policy - most notably the
exemption of an ever increasing number of businesses from the
need to get an audit done," AccountancyAge quotes Syscap CEO
Philip White as saying.

* Cornwall Corporate Insolvency on the Rise, Begbies Traynor Says
Richard Frost at Insider Media reports that the number of
businesses in Cornwall facing the threat of insolvency has
increased significantly even though the overall number of
companies in trouble across the South West dropped.

According to the report, Julie Palmer, regional managing partner
for the South West and Wales at Begbies Traynor, said there was a
20 per cent year-on-year decline in the amount of South West
companies deemed to be in critical distress. There were 210
businesses in this position in the third quarter of 2013 compared
to 262 a year earlier, the report relays.

In particular, Ms. Palmer noted a drop in the distress levels of
tourism and leisure businesses. However, other sectors were
apparently not performing so well, Insider Media relays.

"Taken on a county by county basis, pockets of growth inequality
begin to emerge with construction and manufacturing experiencing
the highest numbers of companies with problems," Ms Palmer told
Insider Media.

"Cornwall reported a 63 per cent increase in critical distress
levels in Q3 2013, compared to Devon, which experienced a 6 per
cent drop. Somerset enjoyed a 41 per cent annual reduction in
businesses in critical distress in Q3."

* UK Retailers Facing "Critical" Financial Problems Up 8%
New research from Begbies Traynor, the UK's leading independent
business recovery practice, has revealed that the retail sector
is in need of some Christmas cheer this festive season as 151 UK
retailers are now facing "critical" financial problems, up 8%
from Q4 2012, while the number of retail businesses with
"significant" financial issues rose by 15% to 15,792.

These latest figures suggest that although consumer spending is
improving on the back of a slow economic recovery, many UK
retailers continue to face major structural challenges. These
problems are particularly acute for retailers that either don't
have a convincing online offering, or don't benefit from high
levels of customer retention and satisfaction, with several
"traditional" bricks and mortar retailers still being adversely
affected by higher fixed costs from business rates and rental

However, the research also shows that traditional, store-based
retailers are not alone in their struggles this Christmas, as a
growing number of online start-ups have also failed to capture
consumers' attention in an increasingly competitive marketplace.
While online sales in the UK rose to a monthly record of 10.1bn
in November*, Begbies Traynor's research reveals that 1,816 non-
store firms are currently in "significant" financial distress, a
rise of 28% from the equivalent period last year, in line with
recent findings* that online only brands are growing at a slower
rate than multi-channel retailers.

Julie Palmer, Partner at Begbies Traynor, commented: "A flush of
online start-ups, which are typically at higher risk of failure
in the early stage of their life cycles, has driven a significant
rise in financial problems in non-store retailers. Many of these
are falling victim to larger online and multi-channel competitors
who offer lower prices due to greater buying power, increased
visibility from better search engine rankings, or the convenience
of click-and-collect."

Those retailers that have experienced the highest increases in
"significant" distress include second hand stores and market
stalls (up 29%) and food, drink and tobacco retailers (up 20%)
whilst electrical goods merchants (up 16%) and clothing and
footwear retailers (up 12%) are also showing evidence of further

Commenting on the figures, Julie Palmer said: "The big
supermarket chains began their Christmas promotions earlier than
ever this year, while they are also aggressively expanding into
the convenience and express store market, causing smaller food
and drink retailers to suffer most in the lead up to Christmas.
Unable to compete on the range of goods they offer, combined with
the growing trend for consumers to do their festive food shopping
online for the best deals, local shops can be expected to
continue to suffer as this relentless competition and price
pressure persists.

"The move to online shopping across the retail industry has also
had a major impact in the rise in the number second hand and
market stalls in distress, with consumers preferring the
convenience of buying these types of goods online. Well known
online marketplaces now offer such large, accessible and
convenient platforms for independent traders to reach consumers
that many antique, vintage and second hand goods stores are
simply being edged out.

"Though consumer debt is increasing, people are becoming
increasingly savvy in their spending, either forgoing the latest
fashions or shopping around online for the best prices when
buying clothes or electronics. Online price comparison and
cashback sites are compounding the problem for those retailers
that trade purely on the basis of price rather than service

Businesses that have fared better in the past 12 months include
department stores and those specialising in furniture and
furnishings ("significant" distress up just 10% for furnishings
and 11% for department stores), highlighting the changing pattern
of consumer behaviour, as well sectors which are less exposed to
discretionary spending such as chemists, medical and personal
care retailers (up just 7.4%).

Julie Palmer added that: "Department stores have returned to form
over the past few years and become the retailers of choice for
many consumers who are keen to complete all of their Christmas
shopping under one roof. The secret to their success is in
providing customers with the convenience of multiple brands and
products all in one place, while offering "omni-channel"
retailing - the ability to purchase in-store or online, with the
choice of home delivery or click-and-collect. This convenience is
extremely valuable to consumers, especially in the run up to
Christmas as the number shopping days quickly runs out. We expect
"omni-channel" selling to become an increasingly important factor
for retailers that want to win share in a changing consumer
landscape during 2014 and beyond.

"We are also seeing the impact of the housing market recovery
which has helped furniture and furnishing stores to perform
better than other sectors again this winter. Government led
schemes such as Help to Buy have acted as a significant impetus
to the market, with retailers in this sector benefitting from an
increasing number of homeowners readying their houses for sale
combined with a growing population of new owners shopping for
furnishings for new properties.

"While it is encouraging to see an improved outlook for consumer
spending, the approaching December quarter rent day will be an
ongoing concern for many struggling retailers whose only source
of income is through their bricks and mortar premises.

"As the latest footfall numbers showed a 2.9 percent** drop in
visits to high streets, out-of-town sites and shopping centres
last month, these retailers will be dependent on a strong finish
to 2013 as they try to attract customers to their stores with
last minute deals and end of year sales. But after the excesses
of Christmas, and an increasing willingness by consumers to fund
their seasonal generosity on credit cards, we question whether
shoppers will have enough credit left to keep these retailers
afloat in the New Year.

"We therefore expect to see more high profile retail failures as
we enter 2014, particularly early in the year, as creditors
typically wait for vulnerable retailers to have higher post-
Christmas cash balances but won't want to wait for those balances
to be diminished through traditionally tougher first quarter
trading. Shop owners will be looking ahead to their next business
rates and quarterly rent payments, while working out how they
will survive throughout the early months of the year as their
cash reserves gradually melt away."


* BOOK REVIEW: A Legal History of Money in the United States
Author: James Willard Hurst
Publisher: Beard Books
Paperback: US$34.95
Review by Gail Owens Hoelscher
Order your personal copy today and one for a colleague at
This book chronicles the legal elements of the history of the
system of money in the United States from 1774 to 1970. It
originated as a series of lectures given by James Hurst at the
University of Nebraska in 1973. Mr. Hurst is quick to say that
he, as a historian of the law, took care in this book not to
make his own judgments on matters outside the law. Rather, he
conducted an exhaustive literature review of economics, economic
history, and banking to recount the development of law over the
operations of money. He attempted to "borrow the opinions of
qualified specialists outside the law in order to provide a
meaningful context in which to appraise what the law has done or
failed to do."

Mr. Hurst define money, for the purposes of this books, as "a
distinct institutional instrument employed primarily in
allocating scarce economic resources, mainly through government
and market processes," and not shorthand for economic, social,
or political power held through command of economic assets."
From the beginning, public and legal policy in the U.S. centered
on the definition of legitimate uses of both law affecting
money, and allocation of power over money among official
agencies, both federal and state. The foundations of monetary
policy were laid between 1774 and 1788. Initially, individual
state legislatures and the Continental Congress issued paper
currency in the form of bills of credit. The Constitutional
Convention later determined that ultimate control of the money
supply should be at the federal level. Other issues were not
clearly defined and were left to be determined by events.
The author describes how law was used to create and maintain a
system of money capable of servicing the flow of resource
allocations in an economy of broadly dispersed public and
private decision making. Law defined standard money units and
made those units acceptable for use in conducting transactions.
Over time, adjustment of the money supply was recognized as a
legitimate concern of law. Private banks were delegated
expansive monetary action powers throughout the 1900s and
private markets for gold and silver were allowed to affect the
money supply until 1933-34. Although the Federal Reserve Act
was not aimed clearly at managing money for goals of major
economic adjustment, it set precedents by devaluing the dollar
and restricting the use of gold.

Mr. Hurst devotes a large part of his book to key issues of
monetary policy involving the distribution of power over money
between the nation and the states, between legal and market
processes, and among major agencies of the government. Until
about 1860, all major branches of government shared in making
monetary policy, with states playing a large role. Between 1908
and 1970, monetary policy became firmly centralized at the
national level, and separation or powers questions arose between
the Federal Reserve Board, the White House (The Council of
Economic Advisors), and the Treasury.

The book was an enormous undertaking and its research
exhaustive. It includes 18 pages of sources cited and 90 pages
of footnotes. Each era of American legal history is treated
comprehensively. The book makes fascinating reading for those
interested in the cause and effect relationship between legal
processes and economic processes and t hose concerned with
public administration and the separation of powers.
James Willard Hurst (1910-1997) is widely regarded as the
grandfather of American legal history. He graduated from
Harvard Law School in 1935 and taught at the University of
Wisconsin-Madison for 44 years.


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 * * *