TCREUR_Public/140109.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Thursday, January 9, 2014, Vol. 15, No. 6

                            Headlines

G E R M A N Y

BLUEBONNET FINANCE: Fitch Withdraws Low-B Rating on Two Notes
DRUCKGUSS HEIDENAU: Oak Hill, OHorizons Global Acquire Assets


I R E L A N D

BANK OF IRELAND: Irish Gov't Sells More Than 43 Million Shares


I T A L Y

ALIVISION: Disputes Bankruptcy Case in Italy
FIAT SPA: Moody's Reviews 'Ba3' CFR for Downgrade


L A T V I A

* Number of Insolvency Cases in Latvia Rises to 2,380 in 2013


L U X E M B O U R G

6922767 HOLDING: Moody's Says CHC's IPO Credit Positive


N E T H E R L A N D S

FRESENIUS FINANCE: Moody's Rates EUR750MM Sr. Unsecured Notes Ba1
FRESENIUS FINANCE: S&P Rates Proposed EUR750MM Unsec. Notes 'BB+'


R O M A N I A

PAMIMAI DISTRIBUTION: Enters Into Insolvency; Owes EUR7 Million


S P A I N

CODERE SA: Creditors Agree to Extend Loan Repayment Deadline


U N I T E D   K I N G D O M

CO-OPERATIVE BANK: FSA Falls Short in Vetting Senior Staff
CORNERSTONE TITAN 2005-1: Fitch Cuts Class D Notes Rating to Csf
DCT GROUP: Engineering Firm Enters Insolvency
GALAXY FINCO: S&P Assigns 'B' Corp. Credit Rating; Outlook Stable
RSA INSURANCE: Capital Black Hole at Irish Unit Isolated Incident

SHARDA GLASS: Sold In Pre-Pack Deal; 65 Jobs Saved
WEB LOANS: Payday Lender Faces Loan Book Deficit


X X X X X X X X

* EUROPE: Lawmakers Try to Reach Compromise on Bank-Union Plan


                            *********


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G E R M A N Y
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BLUEBONNET FINANCE: Fitch Withdraws Low-B Rating on Two Notes
-------------------------------------------------------------
Fitch Ratings has affirmed and withdrawn Bluebonnet Finance plc's
floating-rate notes, due January 2019, as follows:

  -- EUR58m class D (XS0279764335): affirmed at 'BB+sf'; Outlook
     Stable; rating withdrawn

  -- EUR40m class E (XS0280025486): affirmed at 'BBsf'; Outlook
     revised to Stable from Negative; rating withdrawn

Bluebonnet Finance plc is a refinancing of a loan facility
provided by Citigroup Inc. to Lone Star Fund V to acquire from a
German mortgage bank a portfolio of mostly non-performing loans
(NPLs), followed by sub-performing loans (SPLs) and performing
loans (PLs).

The Outlook revision on the class E notes reflects improved
prospects of the notes being paid in full.  This follows sound
credit performance over the past year which led to full
redemption of the class C notes and partial repayment of the
class D notes.  However, with recent instances of junior interest
being deferred (owing in part to the absence of a liquidity
facility), and the direct exposure to the type of performance
volatility characteristic of a seasoned NPL transaction, the
ratings of both classes have not been upgraded.

The withdrawal of the ratings is in response to a note
restructuring recently approved by extraordinary resolution.
Following these amendments, Fitch's ratings are no longer
requested and the receipt of adequate and timely information
necessary to form forward-looking opinions of credit risk is no
longer certain.  Additionally, and among other things, the note
maturity has been extended to January 2019; the margins raised to
4.5% and 6.75% for class D and E respectively; and an 'expected
repayment date' in January 2015 introduced, after which the
margins will further step up.

At closing, the EUR2.8 billion pool consisted of German
commercial and residential (primarily multi-family housing)
mortgage loans.  As of October 2013, the outstanding portfolio
accounted for 1,147 unresolved claims for a total gross book
value of EUR1,254 million, secured on properties whose aggregate
market value is EUR415 million.  The properties are mainly
located in western Germany (57% by property value).  NPLs remain
the larger component (63%, compared with 52% at closing), while
PLs have decreased in their contribution to 13% from 24% at
closing.


DRUCKGUSS HEIDENAU: Oak Hill, OHorizons Global Acquire Assets
-------------------------------------------------------------
Oak Hill Advisors, L.P. and OHorizons Global, Inc. announced on
Jan. 6, 2014, the acquisition of Druckguss Heidenau GmbH,
Druckguss Hof GmbH, and Zerspanungs-und Industrie-technik Dohna
GmbH from insolvency administrator Dr. Franz-Ludwig Danko.  The
assets have been acquired by newly formed entities DGH Heidenau
GmbH & Co. KG, DGH Hof GmbH & Co. KG, and DGH ZIT GmbH & Co. KG
and will continue to be headquartered in Dohna, Germany.

Volker J. Barth will serve as DGH-Group's Executive Chairman.
Mr. Barth has more than 40 years of experience in senior
leadership roles at global automotive vehicle manufacturers and
suppliers. Prior to joining the OHorizons global network, his
roles included President of Delphi Automotive Systems Europe and
President of Delphi Automotive Systems South America.

DGH-Group is a leading supplier of complex, large- and medium-
sized aluminum and magnesium high pressure die casting components
primarily for the automotive industry, with manufacturing
facilities located in Dohna and Hof, Germany.  The company
provides the full value chain of die casting services, including
development, tooling, prototyping, high pressure die casting,
machining, and assembly of highly complex powertrain components.
Its customers include premier automotive manufacturers and
suppliers such as Audi, VW, BMW, Getrag, Getrag Ford
Transmissions, and Mann+Hummel.  The predecessor entities filed
for insolvency in June 2012 and continued to serve customers with
uninterrupted operations throughout the insolvency process.

Jeffrey Kirt, a Partner at Oak Hill Advisors, said, "We are very
excited about the potential of the DGH-Group assets and delighted
to be partnering with OHorizons Global.  It is our hope that this
will be the first of multiple acquisitions we will be making with
OHorizons Global in the European automotive industry."

Mr. Barth said, "We are very pleased to be teaming up with Oak
Hill Advisors on this exciting acquisition.  Throughout its
challenging insolvency period, DGH-Group and its employees
continued to manufacture highly complex powertrain components
while maintaining a superior level of quality and service for its
customers.  Accordingly, we and Oak Hill Advisors would like to
thank the employees, customers, and suppliers of DGH-Group as
well as Dr. Danko for their commitment to the company over the
last 18 months.  We intend to leverage the company's existing
competencies and highly-skilled workforce to establish DGH-Group
as a stable, world-class supplier and a value-added partner for
our customers.  The company will continue to focus on flawless
execution and customer service as it seeks to expand its customer
base in both German and international markets."

Noerr LLP served as legal advisor to the purchasers for the
transactions.



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I R E L A N D
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BANK OF IRELAND: Irish Gov't Sells More Than 43 Million Shares
--------------------------------------------------------------
BreakingNews.ie reports that the Irish government has sold some
of its shares in Bank of Ireland.

According to BreakingNews.ie, it has told the stock exchange that
it sold more than 43 million shares in the bank on Monday.

The sale is expected to raise around EUR11.3 million,
BreakingNews.ie says.

The taxpayer now owns 13.95% of the bank, with shares worth
EUR1.25 billion, BreakingNews.ie notes.

Headquartered in Dublin, Bank of Ireland --
http://www.bankofireland.com/-- provides a range of banking and
other financial services.  These include checking and deposit
services, overdrafts, term loans, mortgages, business and
corporate lending, international asset financing, leasing,
installment credit, debt factoring, foreign exchange facilities,
interest and exchange rate hedging instruments, executor,
trustee, life assurance and pension and investment fund
management, fund administration and custodial services and
financial advisory services, including mergers and acquisitions
and underwriting.  The Company organizes its businesses into
Retail Republic of Ireland, Bank of Ireland Life, Capital
Markets, UK Financial Services and Group Centre.  It has
operations throughout Ireland, the United Kingdom, Europe and the
United States.



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


ALIVISION: Disputes Bankruptcy Case in Italy
--------------------------------------------
Guy Dinmore at The Financial Times reports that Terravision is
battling to compete in the Italian airport transfer sector.

Terravision, the FT says, is fighting a long-running turf war
over low-cost airport transport.

"We need a revolution in Italy.  We need to reset everything to
zero and start again.  Speaking as an Italian, this system is a
disgrace," the FT quotes Fabbio Petroni, Italian founder and
chief executive of UK-based Terravision, as saying.

A lawsuit, that began as a complaint by a local competitor and
was taken up by Rome's public prosecutor, alleges that
Terravision's local operator Alivision, which employs 80 people,
is bankrupt and should be closed down, the FT relates.

According to the FT, Alivision was accused by the public
prosecutor in November of owing EUR3.5 million to Equitalia, the
government's debt collection agency, and EUR2 million in relation
to a separate bankruptcy case settled in court last February.
Alivision rebutted the claims and the prosecution last month
revised the debt claims down to a total of EUR177,000, which the
company also contests, the FT relays.  The next hearing is due
this month, the FT discloses.

Terravision has bought advertising space in national newspapers
to defend its position, calling it a "most peculiar" case of
alleged bankruptcy, the FT relates.  It has also posted court
documents online, the FT notes.

According to the FT, Terravision says Alivision has an annual
turnover of EUR10 million and cash resources of EUR4 million --
and not a single creditor requests its bankruptcy.

The case against Alivision was initiated in 2011 by a complaint
to the Rome public prosecutor's office by a lawyer acting on
behalf of Societa Italiana Trasporti (SIT), a direct competitor,
the FT says, citing court documents provided by Terravision.  SIT
accused its rival of not conforming with transport regulations,
the FT recounts.

The prosecutors appointed Luciano Bologna, an expert on public
services at Rome's La Sapienza university, as an independent
consultant to examine Alivision, the FT relates.  In his report
filed to the prosecutors in June 2012, Mr. Bologna writes that he
suspects that Terravision and Alivision were engaged in fraud
through the buying and selling of indebted companies to avoid
payment of several million euros owed in debts and social
security contributions, the FT discloses.

Terravision and Alivision deny the allegations, the FT notes.
According to the FT, in a civil claim that is yet to be resolved,
Alivision is suing Mr. Bologna for damages over what it considers
to be inaccurate statements.

Terravision is a UK bus and tourism company.


FIAT SPA: Moody's Reviews 'Ba3' CFR for Downgrade
-------------------------------------------------
Moody's Investors Service has placed on review for downgrade the
Ba3 corporate family rating (CFR) and the Ba3-PD probability of
default rating (PDR) of Fiat S.p.A. Concurrently, Moody's has
also placed on review for downgrade the debt issued by Fiat's
rated subsidiaries, Fiat Finance and Trade Ltd. S.A. and Fiat
Finance North America Inc., as well as Fiat Finance Canada Ltd's
(P)B1 rating.

The rating action is triggered by Fiat's announcement that it has
signed an agreement with the VEBA Trust to acquire all
outstanding membership interests in Chrysler Group LLC
(Chrysler), in which it currently holds a 58.5% majority stake.

"We are putting Fiat's ratings on review for downgrade because
the announced acquisition will materially weaken Fiat's liquidity
position at a time when the company is still free cash flow
negative," says Falk Frey, a Moody's Senior Vice President and
lead analyst for Fiat. "That said, we anticipate that Fiat's
remaining cash on balance sheet, unused credit facilities and
operating cash flow generation should be sufficient to meet its
anticipated cash needs in 2014."

On Review for Possible Downgrade:

  Issuer: Fiat Finance & Trade Ltd.

    Senior Unsecured Medium-Term Note Program, Placed on Review
    for Possible Downgrade, currently (P)B1

    Senior Unsecured Medium-Term Note Program, Placed on Review
    for Possible Downgrade, currently (P)NP

    Senior Unsecured Regular Bond/Debenture Nov 22, 2017, Placed
    on Review for Possible Downgrade, currently B1

    Senior Unsecured Regular Bond/Debenture Nov 23, 2016, Placed
    on Review for Possible Downgrade, currently B1

    Senior Unsecured Regular Bond/Debenture Sep 7, 2015, Placed
    on Review for Possible Downgrade, currently B1

    Senior Unsecured Regular Bond/Debenture Sep 15, 2014, Placed
    on Review for Possible Downgrade, currently B1

    Senior Unsecured Regular Bond/Debenture Jul 8, 2014, Placed
    on Review for Possible Downgrade, currently B1

    Senior Unsecured Regular Bond/Debenture Apr 1, 2016, Placed
    on Review for Possible Downgrade, currently B1

    Senior Unsecured Regular Bond/Debenture Jul 8, 2018, Placed
    on Review for Possible Downgrade, currently B1

    Senior Unsecured Regular Bond/Debenture Mar 15, 2018, Placed
    on Review for Possible Downgrade, currently B1

    Senior Unsecured Regular Bond/Debenture Oct 14, 2019, Placed
    on Review for Possible Downgrade, currently B1

    Senior Unsecured Regular Bond/Debenture Oct 17, 2016, Placed
    on Review for Possible Downgrade, currently B1

    Senior Unsecured Regular Bond/Debenture Mar 23, 2017, Placed
    on Review for Possible Downgrade, currently B1

    Senior Unsecured Regular Bond/Debenture Feb 13, 2015, Placed
    on Review for Possible Downgrade, currently B1

  Issuer: Fiat Finance Canada Ltd.

    Senior Unsecured Medium-Term Note Program, Placed on Review
    for Possible Downgrade, currently (P)B1

  Issuer: Fiat Finance North America Inc.

    Senior Unsecured Medium-Term Note Program, Placed on Review
    for Possible Downgrade, currently (P)B1

    Senior Unsecured Medium-Term Note Program, Placed on Review
    for Possible Downgrade, currently (P)NP

    Senior Unsecured Regular Bond/Debenture Jun 12, 2017, Placed
    on Review for Possible Downgrade, currently B1

  Issuer: Fiat S.p.A.

     Probability of Default Rating, Placed on Review for Possible
     Downgrade, currently Ba3-PD

     Corporate Family Rating, Placed on Review for Possible
     Downgrade, currently Ba3

     Senior Unsecured Medium-Term Note Program, Placed on Review
     for Possible Downgrade, currently (P)B1

     Senior Unsecured Medium-Term Note Program, Placed on Review
     for Possible Downgrade, currently (P)NP

Outlook Actions:

  Issuer: Fiat Finance & Trade Ltd.

    Outlook, Changed To Rating Under Review From Negative

  Issuer: Fiat Finance Canada Ltd.

    Outlook, Changed To Rating Under Review From Negative

  Issuer: Fiat Finance North America Inc.

    Outlook, Changed To Rating Under Review From Negative

  Issuer: Fiat S.p.A.

    Outlook, Changed To Rating Under Review From Negative

RATINGS RATIONALE

The decision to place Fiat's ratings on review for downgrade was
prompted by the company's announcement on January 1, 2014 that it
has signed an agreement with the VEBA Trust to acquire all
outstanding membership interests in Chrysler. According to the
statement, the VEBA Trust will receive a total consideration
amounting to USD3.65 billion (approximately EUR2.65 billion) of
which Fiat will pay USD1.75 billion (approximately EUR1.27
billion) as of the expected date of closing of the transaction
(on or before January 20, 2014) and Chrysler the remaining USD1.9
billion as special dividend (of which USD1.1 billion relating to
Fiat's current 58.5% stake). In addition, Chrysler will make a
USD700 million contribution, which will be paid in four equal
annual installments beginning at the date of closing of the deal.

Given the substantial cash outflow of around EUR1.27 billion at
the closing of the transaction, Fiat's standalone cash and
marketable securities in the industrial business will reduce to
approximately EUR7.1 billion from EUR8.4 billion on a pro-forma
basis as of September 30, 2013. As a consequence, Fiat's
liquidity position will weaken materially. As per
September 30, 2013, Fiat's debt maturities (excluding Chrysler)
for the next five quarters until end 2014 total EUR5.9 billion.
Summing up all expected cash requirements in Moody's standard
scenario (including capex, working capital swings, day-to-day
needs) the remaining cash on balance sheet together with Fiat's
available unused credit facility (EUR2.1 billion), and operating
cash flow generation should be sufficient to cover all these
anticipated cash needs in 2014.

The transaction will facilitate further integration of the
financial and operating strategies of the two companies.
Nonetheless, Moody's notes that at this stage Fiat has not yet
decided on the legal form of its future combined entity following
the 100% ownership of Chrysler held by its Fiat North America
LLC, a fully owned indirect subsidiary of Fiat S.p.A.
Correspondingly, Moody's cautions that, despite Fiat's
consolidated financial results, which benefit from the current
strong performance of Chrysler, Fiat bondholders will be unable
to fully access Chrysler's on balance sheet cash and the cash
flow it generates, except for restricted payments under
Chrysler's credit agreements and bond documentations (within the
existing covenant limits, dividend payout limited to 50% of net
income basket, while intercompany lending to Fiat is feasible
with the only limitation that it has to be done on an arm's
length basis). As such, Moody's intends to maintain separate CFRs
for Chrysler and Fiat for the time being. However, it is likely
that these would merge over time to the extent that financing
arrangements of the two entities would converge.

Moody's expects that Fiat's standalone financial performance and
credit metrics will weaken further as of year-end 2013 (compared
with LTM 30 September 2013 figures) with only limited potential
for meaningful improvement in 2014. Disaggregating Chrysler's
financials from Fiat's consolidated accounts, Fiat's standalone
credit metrics are weak for its Ba3 corporate family rating, as
evidenced by an adjusted debt/EBITDA of around 10.3x and negative
free cash flow of approximately EUR1.2 billion for the 12 months
ended September 2013.

In addition, Moody's cautions that Fiat's operational and
financial performance in Brazil, which, for Fiat standalone, is
its most profitable foreign market (market share of approx.
21.3%), has deteriorated markedly since 2011, primarily owed to
rising competitive pressure. In Moody's opinion, Fiat's ability
to compensate for the sluggish demand in Italy has diminished
further, with domestic passenger car sales dropping 7.7% year-on-
year in the first 11 months of 2013.

Moody's review will focus mainly on (1) the impact of the
announced transaction on Fiat's liquidity profile for the next
12-18 months and the company plans to protect its cash position;
(2) a reassessment of the present and future capital structure
and the priority of debt within the Fiat Group, in particular the
position of the Fiat bondholders within that structure to
determine whether the rating of the instruments might be
negatively affected by a potential change of the CFR level; (3)
possible further steps planned in order to simplify the legal
structure of the Group; as well as (4) the operating performance
in FY2013; and, moreover, (5) the impact on Fiat's cash
generation capability and operating performance going forward, in
view of the rising challenges in Latin America and a continued
erosion in profitability from that region, which served as a key
mitigating factor to the losses generated in the EMEA region.
Furthermore, the review will also assess possible positive
impacts on the future synergies between Fiat and Chrysler
operations going forward.

STRUCTURAL CONSIDERATIONS

The senior unsecured notes issued by Fiat's treasuries -- Fiat
Finance &Trade, Fiat Finance North America and Fiat Finance
Canada, with the latter not currently having any notes
outstanding -- are structurally subordinated to a significant
portion of liabilities located at Fiat's operating subsidiaries
(mainly trade payables), with a preferred claim on the cash flows
at these entities. Consequently, the ratings of Fiat's
outstanding bonds are currently one notch below the group's CFR,
according to Moody's Loss Given Default Methodology.

WHAT COULD CHANGE THE RATINGS DOWN/UP

Prior to the review process, Moody's had noted that Fiat's rating
could be downgraded if the company failed to limit its standalone
negative net industrial free cash flow to significantly less than
EUR2.5 billion in 2013, with no indication of a material
improvement in 2014. The rating could also come under pressure if
Fiat were to lose significant market shares in Europe and/or if
the company's earnings and cash flow contribution from its
Brazilian operations, a major source of cash flow, were to
decline, most likely as a result of rising competitive pressures
from new capacities and additional market entrants. Moreover, a
further rise in Fiat's debt resulting from its intention to
purchase the remaining shares in Chrysler could, depending on the
financing mix, result in additional downward rating pressure.

Moody's also noted prior to the review that, for the rating
agency to consider an upgrade, Fiat would have to achieve break-
even free cash flow on a standalone basis, with further
indications that it will likely achieve positive free cash flows
with which it could reduce company debt.

The principal methodology used in this rating was the Global
Automobile Manufacturer Industry published in June 2011. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.

Headquartered in Torino, Italy, Fiat S.p.A. is one of Italy's
leading industrial groups and one of Europe's largest automotive
manufacturers by unit sales. Fiat S.p.A. owns a 58.5% stake in
Chrysler Group LLC (rated B1/stable), generated consolidated
group revenues of EUR84.6 billion and reported a trading profit
of EUR3.5 billion in the 12 months ended September 2013.



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L A T V I A
===========


* Number of Insolvency Cases in Latvia Rises to 2,380 in 2013
-------------------------------------------------------------
The Baltic Course reports that 2,380 insolvency cases against
individuals and legal entities were launched in Latvia in 2013,
125 cases more than in 2012 and 723 cases more than in 2011,
according to the Register of Enterprises' Lursoft data, cites
LETA/Nozare.lv.

Nevertheless, the number of insolvency cases in 2013 did not
reach the record-high figure of 2010, when 2,814 insolvency cases
were opened, the report relates.

According to the Baltic Course, the number of legal protection
processes and extra-judicial legal protection processes also rose
in 2013. 166 legal protection processes were launched in 2013, a
46.90% increase on 2012, when 113 legal protection processes were
opened.

The number of extra-judicial protection processes rose 44.18% to
49 processes, the report adds.



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


6922767 HOLDING: Moody's Says CHC's IPO Credit Positive
-------------------------------------------------------
Moody's Investors Service said CHC Group Ltd.'s (unrated) initial
public offering (IPO), commenced on January 6, is credit positive
for its subsidiary, 6922767 Holding Sarl ("CHC", B2/ stable)
because a portion of the net proceeds will be used to reduce the
company's debt and strengthen its liquidity. The magnitude of the
expected improvement to the company's leverage and cash flow to
debt ratios, however, is modest so its ratings are unaffected.

The principal methodology used in rating 6922767 Holding Sarl was
the Global Oilfield Services rating methodology published in
December 2009.



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N E T H E R L A N D S
=====================


FRESENIUS FINANCE: Moody's Rates EUR750MM Sr. Unsecured Notes Ba1
-----------------------------------------------------------------
Moody's Investors Service has assigned a Ba1 rating to EUR750
million of senior unsecured guaranteed notes to be issued by
Fresenius Finance B.V. The new notes will be split between a
5-year tranche and a 7-year tranche. Fresenius SE & Co. KGaA's
(FSE)Ba1 Corporate Family Rating (CFR), Ba1-PD Probability of
Default (PDR), Senior Secured (Baa3) and Senior Unsecured (Ba1)
ratings of its subsideries remain unchanged. The outlook on the
ratings is negative.

Ratings Rationale

The Ba1 rating (LGD 4, 61%) assigned to EUR750 million of senior
unsecured guaranteed notes reflects the instrument's ranking in
the group's capital structure. The new notes will be guaranteed
on a senior basis by FSE and key intermediary holding companies
(same as available to other unsecured creditors) and will rank
pari passu with all existing and future unsecured obligations of
Fresenius.

The new notes will be used to take out EUR750 million from the
EUR1.8 billion bridge financing facility put in place to finance
the acquisition of the Rhoen Klinikum hospitals and therefore de-
risk the financing package put in place at the time of the
announcement of the transaction by extending the overall debt
maturity structure.

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

The rating is constrained by (i) FSE's leverage (around 3.5x on a
consolidated basis) as of September 2013 and increasing to 4.0x
proforma for the acquisition of 43 hospitals from Rhoen Klinikum,
which positions FSE weakly in the Ba1 rating category; (ii) the
group's exposure to regulatory changes, reimbursement and pricing
pressure from governments and healthcare organizations worldwide;
(iii) relatively weak structural liquidity profile driven by the
need to continuously refinance its debt, despite adequate short
term liquidity cushion; and (iv) a track record of aggressive
debt-financed external growth as most recently highlighted by the
Rhoen transaction.

Given the elevated leverage, the current rating assumes that FSE
will reduce its external growth activities going forward, in
order to support deleveraging to levels back to ratios which are
in line with FSE's own targets, as well as within the triggers
set to maintain the current rating.

Assignments:

Issuer: Fresenius Finance B.V.

   EUR750 million Senior Unsecured Guaranteed Notes , Assigned
   Ba1, LGD4, 61%

Rating Outlook

The negative outlook reflects Moody's expectation that FSE's
credit metrics may remain weaker than the credit metrics expected
for the Ba1 rating for an extended period of time.

What Could Change the Rating -- Up

As current metrics position FSE weakly in its rating category,
prospects for an upgrade are remote. However, Moody's would
consider upgrading the ratings if FSE were to (1) reduce its
leverage on a sustainable basis towards 3.0x; (2) achieve further
improvements in its liquidity and debt maturity profiles, helping
to reduce its reliance on capital market refinancing; and (3)
limit debt-funded acquisition activity.

What Could Change the Rating -- Down

The ratings could be subject to downward pressure if FSE's
leverage metrics would not improve to levels to or below
consolidated adjusted debt/EBITDA 4.0x and/or consolidated EBITDA
margins decline below 20%. Large debt-financed acquisitions or
negative free cash flows, materially reducing the prospect of
deleveraging or worsening liquidity profile, could also be
drivers of a downward rating migration.

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

Fresenius SE & Co. KGaA is a global healthcare group providing
products and services for dialysis, the hospital and the medical
care of patients at home. It is a holding company whose major
assets are investments in group companies and inter-company
financing arrangements. Around 55-60% of group sales and EBIT are
generated by Fresenius Medical Care AG & Co. KGaA (Ba1 Corporate
Family Rating, stable Outlook), which is fully consolidated into
the FSE group, although only 31% owned, based on managerial
control and a particular ownership legal structure. Fresenius'
other operations, which are majority or fully-owned, are
Fresenius Kabi (infusion therapy, intravenously administered
generic drugs and clinical nutrition), Fresenius Helios
(operating private hospitals in Germany) and Fresenius Vamed (77%
owned, hospital and other healthcare facilities projects and
services). Based on the trailing 12 months figures as per 30
September 2013, the group reported revenues of EUR20.2 billion.
Fresenius is owned 27% by Else-Kroner Foundation.

On September 13, 2013, FSE announced that it has agreed to
acquire 43 hospitals and other related assets from Rhoen Klinikum
AG, in a transaction valued at around EUR3.1 billion. The
transaction is expected to contribute some EUR2.0 billion of
sales and EUR250 million of EBITDA, increasing the FSE's leverage
by around 0.4x proforma for this transaction on a consolidated
basis.


FRESENIUS FINANCE: S&P Rates Proposed EUR750MM Unsec. Notes 'BB+'
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its
'BB+' issue rating to the proposed EUR750 million senior
unsecured notes to be issued by Fresenius Finance B.V., a
subsidiary of Germany-based health care group Fresenius SE & Co.
KGaA (FSE).  At the same time, S&P assigned its recovery rating
of '4' to the proposed notes, reflecting its expectation of
average (30%-50%) recovery for debtholders in the event of a
payment default.  The ratings on the proposed debt are subject to
S&P's review of the final documentation.

In addition, S&P affirmed its 'BB+' issue ratings on the existing
senior unsecured debt issued by FSE's subsidiaries Fresenius
Finance and Fresenius US Finance II, Inc.  The senior unsecured
debt instruments comprise the $500 million 9.00% senior notes due
2015; the EUR275 million 8.75% senior notes due 2015; the
EUR500 million 2.875% senior notes due 2020; and the
EUR500 million 4.25% senior notes due 2019.  Furthermore, S&P
revised downward to '4' from '3' the recovery rating on the
aforementioned senior unsecured debt instruments.  The downward
revision of the recovery rating reflects S&P's expectation of
lower recovery prospects at this level of the capital structure
as FSE puts in place the long-term funding for its acquisition of
German hospital and clinic operator Rhon-Klinikum AG.

The issue and recovery ratings on all the other debt instruments
issued by FSE and Fresenius Finance remain unchanged.

S&P understands that FSE will use the proposed senior unsecured
notes to partially refinance the EUR1.8 billion bridge financing
that it has arranged to fund part of the EUR3.07 billion cost to
acquire the majority of Rhon-Klinikum's hospitals.  S&P also
assumes that the remainder of the unsecured bridge loan will,
over time, be refinanced by similar unsecured notes.

                        RECOVERY ANALYSIS

The proposed senior unsecured notes will be guaranteed by the
parent FSE and subsidiaries Fresenius Kabi AG and Fresenius
ProServe GmbH.

The documentation for the proposed notes allows for additional
indebtedness subject to a consolidated coverage ratio of at least
2x, with provisions for additional debt that in S&P's view are
slightly more relaxed than those for the existing unsecured debt.

S&P has revised its valuation assumptions to assume a full
refinancing of the bridge loan with the proceeds of the senior
unsecured notes.  This leads to a stressed enterprise value of
EUR5.9 billion at the point of S&P's hypothetical default in
2018, based on a stressed EBITDA multiple of 6.5x.

From the stressed enterprise value, S&P deducts priority
liabilities of about EUR1.05 billion -- mainly comprising
enforcement costs, pension liabilities, debt at the subsidiary
level, and finance leases -- and arrive at a net stressed
enterprise value of about EUR4.85 billion.

This value is available for EUR3.30 billion of senior secured
debt outstanding, including six months of prepetition interest.
Although coverage is more than 100%, S&P caps the recovery rating
on the senior secured debt at '2', indicating its expectation of
substantial (70%-90%) recovery prospects in the event of a
default.  S&P's cap reflects its view that the structural and
contractual seniority of the senior secured debt, and the
recovery value available, is unlikely to be sufficient to
maintain any upward notching of the issue rating in the event
that S&P raised the corporate credit rating on FSE to 'BBB-'.

On the basis of the aforementioned calculations, there is
EUR1.55 billion of residual value for the EUR4.05 billion of
senior unsecured debt outstanding, including six months of
prepetition interest.  This equates to a recovery rating of '4'
on the senior unsecured debt, indicating S&P's expectation of
average (30%-50%) recovery prospects in the event of a default.

Thereafter, there is no residual value for the EUR308 million of
senior subordinated euro notes outstanding.  This results in a
recovery rating of '6' on the subordinated euro notes, indicating
S&P's expectation of negligible (0%-10%) recovery prospects in
the event of a default.



=============
R O M A N I A
=============


PAMIMAI DISTRIBUTION: Enters Into Insolvency; Owes EUR7 Million
---------------------------------------------------------------
Mirabela Tiron and Catalina Apostoiu at Ziarul Financiar report
that Pamimai Distribution entered insolvency at its own request
in 2013 after piling up debts of EUR7 million.

According to Ziarul Financiar, the largest lenders of Pamimai
were BCR and Banca Transilvania.

"The firm holds no debt with the Finance Ministry," Ziarul
Financiar quotes Ovidiu Neacsu, the representative of Sierra
Quadrant, the legal administrator of Pamimai Distribution, as
saying.

Mircea Oprescu, a stakeholder in the company and its chief
executive officer, says there were several factors that led to
insolvency, Ziarul Financiar relays.

"There is not just one reason, there are several reasons: the
economic environment we operate in, the banks' reactions.  The
only good thing is that we believe in this business that now
consists only of telecom activities, in which we've invested a
lot," Mr. Oprescu told Ziarul Financiar.

On November 6, 2013, the Bucharest Court of Law approved
Pamimai's request and launched general insolvency proceedings,
Ziarul Financiar relates.

"It's better to ask for insolvency than be executed by the
others, you can save your business, protect yourself.  We are
supporting them legally.  The bank is also backing us, it's
awaiting the reorganization plan," Mr. Neacsu, as cited by
Ziarul Financiar, said.

According to Ziarul Financiar, he also maintained the firm is
solid, is has "everything it needs for the loans it took out, it
has assets" and that it had "bad luck".  Mr. Neacsu also
specified the tobacco distribution activity led to the current
situation and the company would most likely give up this activity
after reorganization, Ziarul Financiar relates.

Pamimai Distribution lost the contract with British American
Tobacco as the approval for a letter of bank guarantee came late,
Ziarul Financiar recounts.  "We requested insolvency as we needed
peace to reshuffle the business.  We managed to generate
operating income, we are confident we will succeed," Mr. Oprescu,
as cited by Ziarul Financiar, said.

Pamimai Distribution is Romanian distribution company.  The
company distributes cigarettes, prepay cards and toys.  It
generated revenue of RON327 million (EUR74.3 million) in 2012.



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


CODERE SA: Creditors Agree to Extend Loan Repayment Deadline
------------------------------------------------------------
Katie Linsell and Julie Miecamp at Bloomberg News report that
GSO Capital Partners LP and Canyon Capital Partners LLC are
allowing Codere SA to miss a loan repayment deadline as the
company continues talks to restructure EUR1.1 billion (US$1.5
billion) of debt.

Codere said in a statement on Tuesday it has been given 30 days
to repay EUR127.1 million of loans, Bloomberg relates.

According to Bloomberg, Codere said that if the company manages
to reach an agreement with creditors within the next month, the
loan will be extended until April 15.

"Conversations with bondholders are continuing and are
productive," Bloomberg quotes the company as saying in a separate
e-mailed statement.  "There is a constructive attitude which we
appreciate.  Codere wants to reach an agreement."

The company sought preliminary creditor protection Jan. 2, giving
it as much as four months to reach an agreement with lenders as
the founding Martinez Sampedro family fights to retain as much
control as possible, Bloomberg recounts.

Codere has reported losses for seven straight quarters as
earnings have been hurt by recessions and higher taxes in its
European markets and stricter gambling regulations and smoking
bans in Latin America, Bloomberg discloses.

The company, as cited by Bloomberg, said that under the extension
agreement, the loan will pay an additional 1% on existing
interest.

Codere and its creditors are planning to reduce debt by as much
as 50%, Bloomberg says, citing two people familiar with the
talks, who asked not to be identified because they are private.
The people said that the two sides have yet to agree on how much
equity will be transferred to creditors and how much the
Martinez Sampedro family will retain, Bloomberg notes.

Codere missed a EUR31-million coupon payment on its 8.25% bonds
on Dec. 15, triggering a 30-day grace period to pay the interest,
Bloomberg relays.

Codere SA is a Spain-based company engaged, together with its
subsidiaries, in the operation of activities related to the
private gaming sector, principally in the operation of arcade and
slot machines, sports betting houses, bingo halls, casinos and
racetracks.  The Company has presence in Spain, Italy, Argentina,
Brazil, Colombia, Mexico, Panama and Uruguay.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Dec. 23,
2013, Standard & Poor's Ratings Services lowered to 'SD'
(selective default) from 'CC' its long-term corporate credit
rating on Spain-based gaming company Codere S.A.  At the same
time, S&P lowered its issue rating on the EUR760 million senior
notes due 2015 issued by Codere Finance (Luxembourg) S.A. to 'D'
(default) from 'CC'.  The recovery rating on these notes remains
unchanged at '4', reflecting S&P's expectation of average (30%-
50%) recovery in the event of a payment default.



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


CO-OPERATIVE BANK: FSA Falls Short in Vetting Senior Staff
----------------------------------------------------------
Sharlene Goff at The Financial Times reports that the entire
financial services industry should comply with new stricter rules
governing the appointment of banking executives and directors,
the City watchdog said on Tuesday as it admitted it had fallen
short in vetting senior staff at the Co-operative Bank.

The backing for a drastic expansion of the new "senior persons
regime" which would affect tens of thousands of senior City
employees came as the regulator testified over the scandal at the
Co-op Bank whose disgraced former chairman, Paul Flowers, was
filmed buying illegal drugs, the FT relates.

Clive Adamson, formerly of the Financial Services Authority and
now a senior director at the Financial Conduct Authority,
admitted that in 2010, under the old rules, he approved
Mr. Flowers to be chairman of the Co-op Bank after one 90-minute
interview, even though he had no banking experience and had
disclosed a previous criminal conviction, the FT relays.

Although the process for appointing senior staff has been
tightened for banks, the rest of the City is still governed by
the previous rule book, the FT says.  According to the FT,
Mr. Adamson told MPs on the Treasury committee that the regulator
"would have preferred the new regime to apply to all financial
services firms".

Mr. Adamson was the latest in a string of witnesses to appear in
front of the Treasury committee to discuss the Co-op Bank's
troubles following the exposure of a GBP1.5 billion capital hole
last year, the FT recounts.

He repeatedly defended his decision to wave through the
appointment of Mr. Flowers, who was removed from the Co-op Bank's
board last summer, the FT discloses.  However, he said that while
the decision was the right one at the time, with hindsight
Mr. Flowers would not have been approved, the FT notes.

He admitted the regulator had not quizzed Mr. Flowers about a
1981 criminal conviction for gross indecency -- which he said was
irrelevant to his ability to perform the role -- nor ask for any
personal references, the FT relays.

                     About Co-operative Bank

Co-op Bank -- part of the mutually owned food-to-funerals
conglomerate Co-operative Group -- traces its history back to
1872.  The bank gained prominence for specializing in ethical
investment.  It refuses to lend to companies that test their
products on animals, and its headquarters in Manchester is
powered by rapeseed oil grown on Co-operative Group farms.

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

                           *     *     *

The Troubled Company Reporter-Europe on Nov. 14 and 18, 2013 has
reported that Moody's Investors Service has affirmed The
Co-operative Bank's Caa1 senior unsecured debt and deposit
ratings, and changed the outlook on the rating to negative from
developing, and Fitch Ratings has downgraded the company's Issuer
Default Rating to 'B' from 'BB-' and placed it on Rating Watch
Negative.


CORNERSTONE TITAN 2005-1: Fitch Cuts Class D Notes Rating to Csf
----------------------------------------------------------------
Fitch Ratings has downgraded Cornerstone Titan 2005-1 plc's
class D CMBS notes due, July 2014, as follows:

  GBP0 class C (XS0227571642); paid in full

  GBP937,000 class D (XS0227571725) downgraded to 'Csf' from
  'CCCsf'; Recovery Estimate (RE) 70%

KEY RATING DRIVERS

The downgrade reflects losses incurred after the resolution of
the Eagle Office loan, as well as the anticipated losses due to
the imminent resolution of the Jubilee Way loan.

The Mitre House office was the last property securing the Eagle
Office portfolio loan. Its sale resulted in net recoveries of
GBP63 million paid sequentially at the October 2013 interest
payment date (IPD), first in repaying in full the class C notes,
with the balance used in substantially repaying the class D notes
(leaving GBP936,000 outstanding). A loan loss of GBP13 million
was fully absorbed by the most junior class F notes, which are
not publicly rated.

Following an unsuccessful marketing period lasting more than
three years, and with legal final maturity fast approaching (July
2014), the Jubilee Way retail units were split into three lots
and placed under auction. Two lots were sold in December,
fetching a total of GBP0.6 million; a sale of the third is
reportedly close to being completed (there are currently two live
offers), with approximately GBP0.31 million expected.

The implied gross sales price of GBP0.91 million is greatly down
from a July 2010 valuation of GBP3.7 million. This indicates the
lack of interest in tertiary quality regional retail,
particularly one that has suffered persistent vacancy of 30%-40%.
The Jubilee Way loan is the last remaining loan in the
transaction, and expected losses are likely to leave a small
final loss on the class D notes in the January 2014 IPD, as
reflected in the rating of 'Csf'.

RATING SENSITIVITIES

The class D notes will in all probability be downgraded to 'Dsf'
and withdrawn once the Jubilee Way loan is resolved. Fitch
estimates note recoveries of some GBP0.65m, although this RE is
sensitive to the quantum of senior ranking expenses.


DCT GROUP: Engineering Firm Enters Insolvency
---------------------------------------------
Alex Bell at Manchester Evening News reports that around 100
people have been made redundant after DCT Group entered
insolvency.

The report says the group failed because it is was unable to pay
substantial costs following a legal dispute.

The group had three trading businesses, DCT Holdings, DCT Plant
Limited and DCT Civil Engineering.

EY Partners Tom Jack -- tjack1@uk.ey.com -- and Sam Woodward, at
the company's Manchester office, have been appointed joint
administrators, the report discloses.

According to the report, the failure of the group, which had an
annual turnover of around GBP37 million, arises following
judgment in a long-standing legal dispute between the Group and
Liverpool County Council.

While this judgment was in the group's favour, DCT is now
required to pay substantial legal and other costs which it
doesn't have the resources to fund, the report notes.

The report says following insolvency the majority of the
workforce has been made redundant with 13 employees retained to
assist the Joint Administrators.

DCT Group was established in 1980 and was involved with
infrastructure projects relating to highways, public realm,
environmental, renewable energy and water and sewerage.


GALAXY FINCO: S&P Assigns 'B' Corp. Credit Rating; Outlook Stable
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its 'B'
long-term corporate credit rating to U.K.-based warranty services
provider Galaxy Finco Ltd. (trading as Domestic & General; D&G).
The outlook is stable.

At the same time, S&P assigned its 'B' issue rating to the
GBP175 million senior secured floating-rate notes due 2019 and
the GBP200 million senior secured notes due 2020, issued by D&G's
100% subsidiary Galaxy Bidco.  The recovery rating on both the
senior secured floating-rate notes and the senior secured notes
is '4', indicating S&P's expectation of average (30%-50%)
recovery in the event of a payment default.

In addition, S&P assigned its 'CCC+' issue rating to the
GBP125 million senior notes due 2021 issued by D&G.  The recovery
rating on the senior notes is '6', indicating S&P's expectation
of negligible (0%-10%) recovery for lenders in the event of a
payment default.

The ratings on D&G reflect S&P's assessment of the group's
financial risk profile as "highly leveraged" and business risk
profile as "fair," as S&P's criteria define these terms.

D&G has been acquired by private equity firm CVC.  To fund the
acquisition, D&G issued GBP125 million of new senior notes, and
Galaxy Bidco issued GBP175 million of new senior secured
floating-rate notes and GBP200 million of new senior secured
notes.  D&G used the proceeds of these new notes to repay
GBP318.7 million of existing term debt and GBP50.5 million of
existing shareholder loans and accrued payment-in-kind (PIK)
interest.

The group's new capital structure includes GBP125 million of
shareholder loans that accrue PIK interest at what S&P considers
to be an aggressive rate of 10%, and GBP95 million of preference
shares.  S&P views both the shareholder loans and preference
shares as debt under its criteria.

D&G's "fair" business risk profile reflects the fact that the
group's geographic footprint is relatively concentrated, with a
significant portion of sales generated in the U.K.  The group is
also vulnerable to potential reputational damage and the risk of
litigation.  Furthermore, D&G has relatively high client
concentration, with its top three end customers accounting for
nearly one-half of annual revenues.

On the other hand, D&G has significant scale and a strong market
position in the U.K.  The U.K. warranty services market is
generally well-developed and mature, whereas the international
market is underdeveloped and fragmented.  Overall, demand tends
to be stable, with good customer retention rates and relatively
benign price competition.  Barriers to entry are moderate.
Switching costs for end customers are low.

In S&P's view, demand for D&G's services should remain strong
over the next 12-18 months, and the group's margins will remain
robust.

S&P believes that rating upside is limited at this stage, because
of D&G's high tolerance for aggressive financial policies and
very high leverage.  S&P could raise the ratings if D&G's credit
metrics were to improve to levels it views as commensurate with
an "aggressive" financial risk profile.  This could occur if the
group's EBITDA margins were to rise or debt levels were to fall.
More specifically, an upgrade would require the group to improve
its adjusted funds from operations to debt to more than 12% and
its adjusted debt to EBITDA to less than 5x (including
shareholder loans and preference shares), with clear evidence
that these improvements were sustainable.

S&P could lower the ratings if D&G were to experience severe
margin pressure, or poorer cash flows, leading to weaker credit
metrics.  Downward rating pressure may also stem from debt-funded
acquisitions and/or increased shareholder returns.


RSA INSURANCE: Capital Black Hole at Irish Unit Isolated Incident
-----------------------------------------------------------------
James Quinn at The Telegraph reports that RSA Insurance has said
it believes the scandal surrounding a GBP200 million capital
black hole at the group's Irish operations was an isolated
incident.

According to The Telegraph, in a statement on Tuesday, the
insurer also confirmed that it does not expect to take further
writedowns related to the incident.

The Telegraph last weekend reported that an independent
investigation by accountancy firm PwC is expected to come to the
same conclusion, The Telegraph recounts.

PwC, which was set to hand its report to RSA yesterday, was
expected to say that the shortfall occurred despite strict group
governance controls being in place, The Telegraph discloses.

The report, due to be publicly published this morning, is
expected to draw a line under the problems in the Irish business,
which first emerged in November, The Telegraph says.

The scandal, which contributed to RSA delivering three profit
warnings in six weeks in the run-up to Christmas, has already led
to the resignation of group chief executive Simon Lee, The
Telegraph relays.

It remains unclear what the report will say of the three
executives who ran the Irish business, however, with legal advice
still being sought by PwC and RSA, The Telegraph notes.

The trio were suspended in November, and one of the three, RSA
Ireland chief executive Philip Smith, subsequently resigned, The
Telegraph recounts.

RSA Insurance Group plc is a multinational general insurance
company headquartered in London, United Kingdom.  It has over 17
million customers in 140 countries across the World.


SHARDA GLASS: Sold In Pre-Pack Deal; 65 Jobs Saved
--------------------------------------------------
John Brazier at InsolvencyNews reports that 65 jobs have been
saved following the sale of Sharda Glass Limited to the
construction and industrial sectors.

According to the report, Sharda Glass was sold to CCPE
Architectural Glass Limited on Dec. 20, 2013, in a pre-pack deal
by administrators from KSA Group.

Despite a period of rapid growth, the company suffered from "a
sharp deterioration in its financial position in the last few
weeks of December 2013, which put unsustainable pressure on its
cash flow," the report relays.

InsolvencyNews relates that the administrators and directors of
the company were unable to restructure Sharda Glass' debts
through a company voluntary arrangement (CVA).

Several buyers had approached the company and KSA Group, so a
decision was taken to market the business and assets for sale,
the report notes.

InsolvencyNews says Consensus Capital Private Equity Limited was
the successful bidder and it formed a new company, CCPE
Architectural Glass Limited, to acquire the assets from the
administrators, Eric Walls -- ericw@ksagroup.co.uk -- and
Wayne Harrison, who were appointed on Dec. 20, 2013.


WEB LOANS: Payday Lender Faces Loan Book Deficit
------------------------------------------------
Alex Cardno at Credit Today reports that Web Loans Processing,
which traded as Toothfairy Finance, was owed GBP10.8 million by
customers before its insolvency but less than GBP1 million of
that is expected to be recovered, new documents have revealed.

Web Loans Processing went into administration in December 2013
with a loan book valued at GBP10.8 million, according to
administrators Harris Lipman.

Credit Today relates that a company called Loads of Dosh Limited
has since bought the company's assets for GBP30,000, of which
GBP4,998 is for "equipment" while the remaining GBP25,000 is for
the loan book, which also has a deferred consideration of 55% of
gross recoveries on the debts owed.

The administrators estimate that consideration to be worth
GBP797,500, which places a total estimated value of GBP822,500 on
the loan book, equivalent to just 7.5% of the outstanding loans.

Harris Lipman's deferred consideration estimate is based on a
separate claim by one of the firm's directors that up to GBP1.45
million of the loan book is potentially recoverable.

"On the basis of total collections in the region of GBP1.45m, the
deferred consideration has a value of GBP797,500. The actual
value of the deferred consideration will depend upon the level of
collections which can be achieved by Loads of Dosh Limited,"
joint administrators Freddy Khalastchi --
freddy.khalastchi@harris-lipman.co.uk -- and Martin Atkins --
martin.atkins@ harris-lipman.co.uk -- said in a statement, Credit
Today relays.

According to Credit Today, the administrator's statement said the
company's problems surfaced in September 2013 after several
unnamed investors served notice to recover loans they had made to
the company.

Despite this, the business went on to receive two bridging loans
of GBP250,000 each in October 2013 from Rosemount Investments
Limited and Gullfoss Properties Limited, which were secured by
fixed and floating charges on the business while due diligence
was carried out.

However, the company soon fell into a position where it could not
pay its debts and while one unidentified debenture holder was
repaid most of its funds, the other was repaid only a fraction as
the directors gave notice of their intention to appoint
administrators.



===============
X X X X X X X X
===============


* EUROPE: Lawmakers Try to Reach Compromise on Bank-Union Plan
--------------------------------------------------------------
Jim Brunsden at Bloomberg News reports that the credibility of
Europe's efforts to restore confidence in its financial system
hangs in the balance as lawmakers try to broker a deal on a
bank-failure authority for the 18-nation euro area.

As U.S. Treasury Secretary Jacob J. Lew tours European Union
capitals to push for tougher banking regulations, European
Parliament legislators and officials from Greece, which holds
the EU's rotating presidency, began negotiations in Brussels on
Wednesday to create a central agency for saving or shuttering
euro-zone banks before elections in May, Bloomberg relates.

When EU finance ministers ended a fractious debate and settled on
a blueprint in December, European Central Bank President
Mario Draghi "strongly" welcomed the plan, though it diverged
broadly from the ECB's position, Bloomberg recounts.  The
parliament's stance is closer to the original proposal made in
July by Michel Barnier, the EU's financial-services chief,
Bloomberg notes.  Now the two sides will try to reach a
compromise on the legislation, Bloomberg states.

"With the political clock ticking in Brussels, and with evidence
of regulatory fatigue on a number of fronts, it's all about
reaching a position that allows those concerned to claim
that plans for a banking union are moving ahead, but at the same
time leaving many details to be worked out over the coming months
or even years," Bloomberg quotes Richard Reid, a research fellow
for finance and regulation at Scotland's University of Dundee, as
saying.

The Single Resolution Mechanism bill is part of an effort to
build a banking union that would sever the financial links
between lenders and sovereigns that fueled Europe's debt crisis,
Bloomberg discloses.

Mr. Barnier's proposal for a strong central authority backed by a
single fund to cover resolution costs met with broad approval
from the parliament and the ECB, but faced an initial barrage of
German-led complaints from governments, centered on warnings
that the blueprint went too far in taking financial decisions out
of national hands, and that some of the measures overstepped
what's possible under the bloc's treaties, Bloomberg recounts.
The final bill must be approved by the parliament and member
states to take effect, Bloomberg says.

"To complete the banking union, a Single Resolution Mechanism
must be finalized in the coming months," Arlene McCarthy, a
deputy head of the European Parliament's Economic and Monetary
Affairs Committee, as cited by Bloomberg, said.  "Negotiations
will be tough, as there are fundamental issues on who decides if
a bank will be resolved and who pays for it that need to be
agreed."

As the talks begin, Mr. Lew is pressing European officials to
follow the U.S. in adopting tougher banking regulations to ensure
that American financial firms aren't put at a competitive
disadvantage, Bloomberg relates.  His trip takes in France,
Germany and Portugal, Bloomberg discloses.

According to Bloomberg, in reaching a common position on the
bank-failure plan, EU finance ministers overcame conflicts that
pitted big nations against small ones, euro members against those
outside the currency bloc, and Germany's desire to shield
taxpayers against ECB calls for central control.

The finance chiefs pledged to create a EUR55 billion (US$75
billion) industry-financed resolution fund over the next 10
years, backed an agency to make decisions on handling failing
banks and agreed on cost-sharing procedures, Bloomberg relays.

Yet they postponed decisions on how they'll jointly back up the
new system, saying that a common public backstop would be
developed in coming years, Bloomberg notes.  And they split the
proposal in two, with the resolution agency created through EU
legislation, Bloomberg states.  Financing arrangements would be
set up in a separate agreement among nations, cutting out the
European Parliament, Bloomberg says.

According to Bloomberg, Elisa Ferreira, who is leading the
parliament's negotiation team on the draft law, has said that
it's "a very serious possibility" that no deal will be possible
on the bill, because the ministers' plan is "completely
different" from the parliament's.


                            *********

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

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

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

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


                            *********


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

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

Copyright 2014.  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
202-241-8200.


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