TCREUR_Public/140122.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Wednesday, January 22, 2014, Vol. 15, No. 15

                            Headlines

G E R M A N Y

LOEWE AG: Investors Group to Take Over Television Maker
PROKON: Opts to Halt Interest Payments Amid High Redemptions
WIRSOL GROUP: Court Appoints Provisional Liquidator to Unit


H U N G A R Y

AURORA HOTELS: Enters Into Agreement with Creditors


I C E L A N D

LANDSBANKINN HF: S&P Assigns 'BB+/B' Counterparty Credit Ratings


I T A L Y

GRUPPO ARGENTA: KKR Agrees to Inject EUR100MM to Reduce Debt Load


K A Z A K H S T A N

ALLIANCE BANK: Dollar Bond Up Amid Second Debt Restructuring


N E T H E R L A N D S

GATEWAY II: Moody's Affirms Ba3 Rating on EUR20MM Class B-2 Notes
HALCYON STRUCTURED: Moody's Raises Rating on Class E Notes to Ba1


P O L A N D

P4 SP ZOO: Fitch to Assign 'B+' LT Issuer Default Rating
PLAY HOLDINGS 2: S&P Assigns Prelim. 'B+' Corp. Credit Rating


R O M A N I A

CARREFOUR ROMANIA: Bucharest Court Cancels Insolvency Procedures
* ROMANIA: 3,700 Corporate Insolvencies Recorded in Bucharest


S P A I N

GC PASTOR: S&P Lowers Rating on Class C Notes to 'D'
SANTANDER CONSUMER: Fitch Affirms 'CCC' Rating on Class D Notes
SUPERMERCADO LA NUCIA: In Receivership, Assets Auction Set
* SPAIN: Banks' Bad Loans Up in November 2013


U N I T E D   K I N G D O M

CO-OPERATIVE BANK: KPMG Faces Probe Over Handling of Accounts
DCT GROUP: In Administration Over Legal Costs, Cuts 100 Jobs
DONCASTER ROVERS: Denies Administration Talk
GAME: Stores Rebound From Falling Into Administration
GLYNN PRINT: In Creditors' Voluntary Liquidation

KMS COMPONENTS: In Administration, Cuts 30 Jobs
PUNCH TAVERNS: Gives Ultimatum to Lenders on Restructuring Deal
PYKES THE JEWELLERS: In Administration, Assets for Sale
SCHOOL DINNER: Goes Into Liquidation
TANFIELD ENGINEERING: Dozens Jobs Saved as Tinsley Buys Business

* UK: RBS Faces Probe Over Business Loan Default


                            *********


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


LOEWE AG: Investors Group to Take Over Television Maker
-------------------------------------------------------
Reuters reports that Loewe AG said it would be taken over by a
group of investors that include former senior managers at Apple
and Bang & Olufsen, six months after seeking creditor protection.

Reuters says German family-business entrepreneurs and executive
board members at Loewe were also part of the group, which is
acquiring "significant parts" of Loewe's assets.

"Continuity of the Loewe traditional brand in German hands has
been secured," the company said in a statement, without
disclosing financial terms.

As reported in the Troubled Company Reporter-Europe on Oct. 2,
2013, Reuters related that Loewe filed for insolvency on Oct. 1
and needs to find an investor before the end of the year to avert
closure.  Loewe fell into difficulties after it failed to keep up
with mass-market rivals such as Samsung and LG Electronics, and
struggled to cope with a slide in the average price of TV sets,
Reuters disclosed.  It filed for protection from creditors'
demands in July to give it breathing space while it sought an
investor and restructured the company, Reuters noted.

Loewe AG is a German high-end television maker.


PROKON: Opts to Halt Interest Payments Amid High Redemptions
------------------------------------------------------------
Ludwig Burger at Reuters reports that Prokon said it had to stop
interest payments and would not for now redeem the millions of
euros worth of so-called profit-sharing certificates sold to
mainly retail investors, as too many were demanding their money
back.

"In the current situation we are unable to make repayments or
interest payouts," Reuters quotes the group's managing director
Carsten Rodbertus as saying in a statement on the group's website
on Friday, addressing its 75,000 certificate holders.  "Any
payments could be and would be claimed back by an administrator
in case of insolvency proceedings anyway."

The company had raised some EUR1.4 billion (US$1.9 billion) by
selling the profit-participation certificates, Reuters discloses.

According to Reuters, the company had won mainly retail investors
through TV advertising campaigns on German prime-time television,
but last week warned it may have to file for insolvency if it was
unable to strike a deal with investors.

It had drawn criticism from consumer advocate groups for luring
investors with promises of possible returns of at least 6%,
without sufficiently warning of the risks, Reuters relays.

More and more investors have requested their money back following
several reports in German media that have questioned whether
Prokon's payouts are backed by actual profits, Reuters relates.

According to Reuters, the company added that to avert insolvency,
at least 95% of investors' capital would have to remain with the
company until the end of October, urging investors not to cancel
their securities.

Financial reports posted by Prokon on its website showed that as
of October 2013, it had paid out EUR330 million in interest, even
though it had made a loss of EUR210 million (US$287 million),
Reuters discloses.

Prokon is a German wind park operator.


WIRSOL GROUP: Court Appoints Provisional Liquidator to Unit
-----------------------------------------------------------
Solar Server reports that a German district court has assigned
provisional liquidator Steffen Rauschenbusch to oversee the sale
of assets for Wirsol Solar Energy AG (Mannheim, Germany), a
subsidiary of Wirsol Group (Waghaeusel, Germany).

According to the report, Wirsol Group and three subsidiaries
entered insolvency in October 2013, with the aim of
rehabilitating the company.  Wirsol has since sold its UK
division to an investor, and announced that it will liquidate its
wind division, the report relates.

No investor has been found to purchase the entire group, and the
company has not published any news on what will happen to the
other subsidiaries, Solar Server relays.

Additionally, founder Markus Wirth and Mark Hogan have stepped
down from the board of the company, leaving Nikolaus Krane alone
on the management committee, adds Solar Server.



=============
H U N G A R Y
=============


AURORA HOTELS: Enters Into Agreement with Creditors
---------------------------------------------------
MTI-Econews reports that troubled Aurora Hotels, which operates
the Ramada Hotel in Balatonalmadi, on Lake Balaton, has reached
an agreement with its creditors.

According to MTI-Econews, Zoltan Kungli, the bailiff overseeing
the company's assets, said the agreement was reached in the first
week of January.

Aurora Hotels filed for bankruptcy protection last November,
MTI-Econews recounts.

Wossala Hotels, the Balatonalmadi Ramada's earlier operator, went
under liquidation in 2011 and the hotel was acquired by Erste
Leasing, MTI-Econews relays.  Erste Leasing then leased the hotel
to Aurora Hotels, a company set up by the hotel's management,
MTI-Econews relates.

Balatonalmadi Ramada is a twelve-storey, 210-room hotel in
Hungary.



=============
I C E L A N D
=============


LANDSBANKINN HF: S&P Assigns 'BB+/B' Counterparty Credit Ratings
----------------------------------------------------------------
Standard & Poor's Ratings Services said it had assigned its 'BB+'
long-term and 'B' short-term counterparty credit ratings to
Iceland-based Landsbankinn hf.  The outlook is stable.

The ratings reflect S&P's 'bb' anchor for banks operating in
Iceland and its view of Landsbankinn's "adequate" business
position, "strong" capital and earnings, "adequate" risk
position, "average" funding, and "adequate" liquidity, as S&P's
criteria define these terms. The stand-alone credit profile
(SACP) is at 'bb+'.

Landsbankinn was created in October 2008 from the domestic
operations of the now defunct Landsbanki Islands hf. (LBI) group.
S&P considers Landsbankinn's business position "adequate" because
of its strong domestic market share (30%-40%) in primary business
lines (corporate and retail banking, asset management, and
corporate finance) and growing presence in retail mortgage
lending.  However, Landsbankinn is relatively small, with total
assets of Icelandic krona (ISK) 1.2 trillion (about EUR7 billion)
in September 2013, which limits its diversification in an
international context.

S&P considers that Landsbankinn has been well managed since its
creation in 2008, demonstrating superior operating efficiency and
a reduction of nonperforming loans.  The bank also operates with
significant liquidity and capital buffers and low leverage in the
difficult economic environment.

Capital and earnings are "strong" because S&P projects its risk-
adjusted capital (RAC) ratio for Landsbankinn to remain below 15%
at year-end 2015, after 13.1% at year-end 2012.  Given the
relatively high risk weights for Icelandic exposures, this strong
RAC ratio understates the bank's leverage position.  S&P's
leverage ratio for Landsbankinn (adjusted common equity to
adjusted assets) was higher than 20% in September 2013.

In S&P's view, Landsbankinn's "adequate" risk position reflects
its significant market shares and loan book, given risks in the
market and the time to restructure existing loans.
Landsbankinn's nonperforming loan stock is decreasing, which S&P
expects to continue as the market recovers.

S&P considers Landsbankinn's funding to be "average," balancing
its relatively strong funding metrics against its high use of
wholesale funding and demanding debt-repayment schedule.  As of
Sept. 30, 2013, S&P estimates the bank's stable funding ratio at
127%, demonstrating a steady improvement from 106% in 2010.

"Despite solid ratios by our measures, we assess the bank's
liquidity as "adequate."  In September 2013, Landsbankinn's ratio
of broad liquid assets to short-term wholesale funding was 2.7x,"
S&P said.

S&P considers Landsbankinn to have "high" systemic importance in
Iceland; however, S&P do not add any notches of uplift to the
SACP because future extraordinary government support is
uncertain.

The stable outlook reflects S&P's view that over the next 24
months Landsbankinn's capital will continue to strengthen and
that it will restructure a significant amount of legacy bonds due
in 2014-2018.

S&P could take a positive rating action if the bank's capital
improved beyond its present forecast and it reported sustainably
stronger revenues or lower credit losses than S&P expects.  S&P
could also take a positive rating action on Landsbankinn if risks
for Iceland's economy and banking sector were to diminish.  In
addition, S&P could revise its assessment of the bank's overall
funding and liquidity upward if it reduced the concentrations in
its debt-maturity profile, which might lead to an upgrade.

S&P could take a negative rating action if the asset quality of
the bank's loan portfolio required significant additional
provisioning or if unexpected valuation risks in the legacy loan
book and securities portfolio arose.  However, S&P has used
conservative loss assumptions in its capital and earnings
forecast, so S&P views a downgrade as unlikely at present.



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


GRUPPO ARGENTA: KKR Agrees to Inject EUR100MM to Reduce Debt Load
-----------------------------------------------------------------
Anne-Sylvaine Chassany at The Financial Times reports that KKR
has agreed to inject EUR100 million into Gruppo Argenta mostly in
the form of loans to help the company reduce its debt load and
get cash for expansion.

Argenta's private equity owner, Paris-based Motion Equity
Partners, has agreed to inject an additional EUR10 million, the
FT relates.  KKR will become a minority shareholder with board
representation, Marc Brown, a director at KKR's special
situations in London, told the FT.

According to the FT, banks approached the New York-based fund
manager because they wanted to have the riskier junior debt they
were holding repaid.  The riskier the loan, the bigger the
regulatory capital a lender needs to put aside to cover potential
losses, the FT notes.

"It was too onerous for them from a capital requirement point of
view to keep that junior tranche.  The refinancing means the
company will also have more headroom in terms of maturities and
covenants.  We'll see more of that type of transaction as banks
seek to de-lever," the FT quotes Mr. Brown as saying.

Gruppo Argenta operates vending machines that offer snacks,
beverages and coffee from Illy, Lavazza and Nespresso in 88,000
sites throughout Italy.  The company employs 1,200 people.



===================
K A Z A K H S T A N
===================


ALLIANCE BANK: Dollar Bond Up Amid Second Debt Restructuring
------------------------------------------------------------
Reuters reports that the dollar bond due 2017 of Kazakhstan's
Alliance Bank rose 1.5 points to 41.5 cents on Monday, Jan. 20,
as investors awaited the terms of the banks' second debt
restructuring since the global financial crisis.

Alliance said on Monday it would meet creditors in London on
Wednesday, Reuters relates.  At a similar meeting last month the
bank said it would not pay out on a series of recovery notes,
Reuters discloses.

The bond has slumped from a high of 93 cents set last May, due to
expectations of the restructuring, Reuters recounts.  But
investors are hoping to recover around 50 cents on the dollar,
citing the 44% recovery rate on another Kazakh bank, BTA, which
they said was in a worse financial condition than Alliance,
Reuetrs notes.

                    About JSC Alliance Bank

JSC Alliance Bank is the sixth largest bank in Kazakhstan by net
loans.  JSC Alliance is a bank with substantially all of its
operations in the Republic of Kazakhstan.  As of June 30, 2009,
the Bank's net assets constituted 4.9% of the total assets of the
banking system in Kazakhstan.  It has 3,900 employees.  The
Bank's only assets in the U.S. are certain correspondent accounts
with U.S. Banks.

JSC Alliance Bank filed for Chapter 15 bankruptcy (Bankr.
S.D.N.Y. Case No. 10-10761) to protect itself from U.S. lawsuits
and creditor claims while it reorganizes in Kazakhstan.  The
Chapter 15 petition says that assets and debts are in excess of
US$1 billion.  Law firm White & Case LLP, based in New York, is
representing JSC Alliance in the Chapter 15 case.



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


GATEWAY II: Moody's Affirms Ba3 Rating on EUR20MM Class B-2 Notes
-----------------------------------------------------------------
Moody's Investors Service has taken the following rating actions
on the following notes issued by Gateway II Euro CLO B.V.:

Issuer: Gateway II Euro CLO B.V.
        (Previously Named Hudson CLO 1 B.V.)

    EUR190M (outstanding balance of EUR161.4M) Class A-1E Senior
    Secured Floating Rate Notes due 2023, Affirmed Aaa (sf);
    previously on Apr 28, 2011 Upgraded to Aaa (sf)

    EUR80M (outstanding balance of EUR67.8) Class A-1R Senior
    Secured Variable Funding Notes due 2023, Affirmed Aaa (sf);
    previously on Apr 28, 2011 Upgraded to Aaa (sf)

    EUR35.5M Class A-2 Senior Secured Floating Rate Notes due
    2023, Upgraded to Aa1 (sf); previously on Sep 21, 2011
    Confirmed at Aa2 (sf)

    EUR27.5M Class A-3 Deferrable Senior Secured Floating Rate
    Notes due 2023, Upgraded to A1 (sf); previously on Sep 21,
    2011 Upgraded to A2 (sf)

    EUR24M Class B-1 Deferrable Senior Secured Floating Rate
Notes
    due 2023, Affirmed Baa3 (sf); previously on Sep 21, 2011
    Upgraded to Baa3 (sf)

    EUR20M (outstanding balance of EUR19.2M) Class B-2 Deferrable
    Senior Secured Floating Rate Notes due 2023, Affirmed Ba3
    (sf); previously on Sep 21, 2011 Upgraded to Ba3 (sf)

Gateway II Euro CLO B.V., issued in April 2007, is a
multicurrency Collateralised Loan Obligation ("CLO") backed by a
portfolio of mostly high yield European loans. The portfolio is
managed by Pramerica Investment Management. This transaction
passed its reinvestment period in July 2013.

RATINGS RATIONALE

According to Moody's, the rating actions taken on the notes
result from an improvement in credit metrics of the underlying
portfolio and also the benefit of modelling actual credit metrics
following the expiry of the reinvestment period in July 2013.

The credit quality has improved as reflected in the average
credit rating of the portfolio (measured by the weighted average
rating factor, or WARF). As of the trustee's November 2013
report, the WARF was 2702, compared with 2754 in January 2013 and
2855 at the time of the last rating action in September 2011. The
weighted average spread also increased to 4.07% in November 2013,
from 3.33% in September 2011.

In light of reinvestment restrictions during the amortization
period, and therefore the limited ability to effect significant
changes to the current collateral pool, Moody's analyzed the deal
assuming a higher likelihood that the collateral pool
characteristics will continue to maintain a positive buffer
relative to certain covenant requirements. In particular, the
deal is assumed to benefit from a shorter amortization profile
and higher spread levels compared to the levels assumed prior the
end of the reinvestment period in July 2013.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. In its base
case, Moody's analyzed the underlying collateral pool as having a
performing par and principal proceeds balance of EUR343.2
million, defaulted par of EUR10.7 million, a weighted average
default probability of 19.37% (consistent with a WARF of 2767
with a weighted average life of 4.34 years), a weighted average
recovery rate upon default of 49.34% for a Aaa liability target
rating, a diversity score of 38 and a weighted average spread of
4.07%.

In its base case, Moody's addresses the exposure to obligors
domiciled in countries with local currency country risk bond
ceilings (LCCs) of A1 or lower. Given that the portfolio has
exposures to 12.38% of obligors in Italy, Ireland, and Spain,
whose LCC are A2 (Ireland and Italy) and A3 (Spain), Moody's ran
the model with different par amounts depending on the target
rating of each class of notes, in accordance with Section 4.2.11
and Appendix 14 of the methodology. The portfolio haircuts are a
function of the exposure to peripheral countries and the target
ratings of the rated notes, and amount to 0.952% for the Class A-
1E, A-1R and A-2 notes and 0.595% for the Class A-3 notes.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on
future defaults is based primarily on the seniority of the assets
in the collateral pool. For a Aaa liability target rating,
Moody's assumed that a recovery of 50% of the 97.37% of the
portfolio exposed to first-lien senior secured corporate assets
upon default and of 15% of the remaining non-first-lien loan
corporate assets upon default. In each case, historical and
market performance and a collateral manager's latitude to trade
collateral are also relevant factors. Moody's incorporates these
default and recovery characteristics of the collateral pool into
its cash flow model analysis, subjecting them to stresses as a
function of the target rating of each CLO liability it is
analyzing.

Methodology Underlying the Rating Action:

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

Factors that would lead to an upgrade or downgrade of the rating:

In addition to the base-case analysis, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it assumed lower credit quality in the portfolio to
address refinancing risk. Loans to European corporates rated B3
or lower and maturing between 2014 and 2015 make up approximately
4.76% of the portfolio, which could make refinancing difficult.
Moody's ran a model in which it raised the base case WARF to 2910
by forcing ratings on 50% of the refinancing exposures to Ca; the
model generated outputs that were within one notch of the base-
case results.

Moody's also considered a model run where the base case weighted
average spread (WAS) reduced from 4.07% to 3.50%. This run
generated model outputs that were one to two notches away from
the base case results.

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
note, in light of 1) uncertainty about credit conditions in the
general economy and 2) the large concentration of lowly- rated
debt maturing between 2013 and 2015, which may create challenges
for issuers to refinance. CLO notes' performance may also be
impacted either positively or negatively by 1) the manager's
investment strategy and behavior and 2) divergence in the legal
interpretation of CDO documentation by different transactional
parties due to because of embedded ambiguities.

Additional uncertainty about performance is due to the following:

1) Portfolio amortization: The main source of uncertainty in this
transaction is the pace of amortization of the underlying
portfolio. Pace of amortization could vary significantly subject
to market conditions and this may have a significant impact on
the notes' ratings. In particular, amortization could accelerate
as a consequence of high levels of prepayments in the loan market
or collateral sales by the liquidation agent / the Collateral
Manager or be delayed by rising loan amend-and-extend
restructurings. Fast amortization would usually benefit the
ratings of the notes beginning with the notes having the highest
prepayment priority.

2) Recovery of defaulted assets: Market value fluctuations in
trustee-reported defaulted assets and those Moody's assumes have
defaulted can result in volatility in the deal's over-
collateralization levels. Further, the timing of recoveries and
the manager's decision whether to work out or sell defaulted
assets can also result in additional uncertainty. Moody's
analyzed defaulted recoveries assuming the lower of the market
price or the recovery rate to account for potential volatility in
market prices. Recoveries higher than Moody's expectations would
have a positive impact on the notes' ratings.

3) Foreign currency exposure: The deal has significant exposure
to GBP denominated assets. Volatility in foreign exchange rates
will have a direct impact on interest and principal proceeds
available to the transaction, which can affect the expected loss
of rated tranches.

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


HALCYON STRUCTURED: Moody's Raises Rating on Class E Notes to Ba1
-----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of the
following notes issued by Halcyon Structured Asset Management
European Long Secured/Short Unsecured CLO 2008-I B.V.:

    EUR278M Class A Senior Secured Floating Rate Notes due 2023
    (outstanding balance: EUR 260.9M), Upgraded to Aaa (sf);
    previously on Nov 7, 2011 Upgraded to Aa1 (sf)

    EUR10M Class B Deferrable Secured Floating Rate Notes due
    2023, Upgraded to Aa1 (sf); previously on Nov 7, 2011
Upgraded
    to A2 (sf)

    EUR20M Class C Deferrable Secured Floating Rate Notes due
    2023, Upgraded to A1 (sf); previously on Nov 7, 2011 Upgraded
    to Baa2 (sf)

    EUR17M Class D Deferrable Secured Floating Rate Notes due
    2023, Upgraded to Baa2 (sf); previously on Nov 7, 2011
    Upgraded to Ba1 (sf)

    EUR11M Class E Deferrable Secured Floating Rate Notes due
    2023, Upgraded to Ba1 (sf); previously on Nov 7, 2011
Upgraded
    to B1 (sf)

Ratings Rationale

According to Moody's, the rating actions taken on the notes
result from the benefit of modeling actual credit metrics
following the expiry of the reinvestment period in June 2013. In
particular, prior to the end of the reinvestment period Moody's
modeled the weighted average spread as the midpoint between the
covenant and the actual level. The weighted average spread
increased to 4.38% in November 2013, compared with 3.96% in
November 2012 and 3.16% of the last rating action in November
2011 based on the trustee report as of October 2011.

In consideration of the reinvestment restrictions applicable
during the amortization period, and therefore the limited ability
to effect significant changes to the current collateral pool,
Moody's analyzed the deal assuming a higher likelihood that the
collateral pool characteristics will continue to maintain a
positive buffer relative to certain covenant requirements. In
particular, the deal is assumed to benefit from a shorter
amortization profile and higher spread levels compared to the
levels assumed before the end of the reinvestment period in June
2013.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. In its base
case, Moody's analyzed the underlying collateral pool as having a
performing par and principal proceeds balance of EUR363.9 million
(EUR4.9 million of non-Euro obligations hedged via perfect assets
swaps), defaulted par of EUR11.5 million, a weighted average
default probability of 23.42% over 4.5 year WAL (consistent with
a 10 year WARF of 3243), a weighted average recovery rate upon
default of 49.10% for a Aaa liability target rating, a diversity
score of 33 and a weighted average spread of 4.19% for variable
paying assets and WAC of 6.82% for fixed paying.

In its base case, Moody's addresses the exposure to obligors
domiciled in countries with local currency country risk bond
ceilings (LCCs) of A1 or lower. Given that the portfolio has
exposures to 10.83% of obligors in Ireland and Spain, whose LCC
are A2 and A3, respectively, Moody's ran the model with different
par amounts depending on the target rating of each class of
notes, in accordance with Section 4.2.11 and Appendix 14 of the
methodology. The portfolio haircuts are a function of the
exposure to peripheral countries and the target ratings of the
rated notes, and amount to 0.33% for the Class A notes, 0.21% for
the Class B notes and, 0.08% for the Class C notes.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on
future defaults is based primarily on the seniority of the assets
in the collateral pool. For a Aaa liability target rating,
Moody's assumed that a recovery of 50% of the 97.44% of the
portfolio exposed to first-lien senior secured corporate assets
upon default and of 15% of the remaining non-first-lien loan
corporate assets upon default. In each case, historical and
market performance and a collateral manager's latitude to trade
collateral are also relevant factors. Moody's incorporates these
default and recovery characteristics of the collateral pool into
its cash flow model analysis, subjecting them to stresses as a
function of the target rating of each CLO liability it is
analyzing.

Methodology Underlying the Rating Action

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

Factors that would lead to an upgrade or downgrade of the rating

In addition to the base-case analysis, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it assumed lower credit quality in the portfolio to
address refinancing risk. Loans to European corporates rated B3
or lower and maturing between 2014 and 2015 make up approximately
4.5% of the portfolio, which could make refinancing difficult.
Moody's ran a model in which it raised the base case WARF to 3311
by forcing ratings on 25% of the refinancing exposures to Ca; the
model generated outputs that were within one notch of the base-
case results.

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
note, in light of 1) uncertainty about credit conditions in the
general economy 2) the exposure to lowly- rated debt maturing
between 2014 and 2015, which may create challenges for issuers to
refinance. CLO notes' performance may also be impacted either
positively or negatively by 1) the manager's investment strategy
and behavior and 2) divergence in the legal interpretation of CDO
documentation by different transactional parties due to because
of embedded ambiguities.

Additional uncertainty about performance is due to the following

1) Exposure to credit estimates: The deal contains a large number
of securities whose default probabilities Moody's has assessed
through credit estimates. If Moody's does not receive the
necessary information to update the credit estimates in a timely
fashion, the transaction could be affected by any default
probability stresses Moody's assumes in lieu of updated credit
estimates

2) Portfolio amortization: The main source of uncertainty in this
transaction is the pace of amortization of the underlying
portfolio, which can vary significantly depending on market
conditions and have a significant impact on the notes' ratings.
Amortization could accelerate as a consequence of high loan
prepayment levels or collateral sales by the collateral manager
or be delayed by an increase in loan amend-and-extend
restructurings. Fast amortization would usually benefit the
ratings of the notes beginning with the notes having the highest
prepayment priority.

3) Recovery of defaulted assets: Market value fluctuations in
trustee-reported defaulted assets and those Moody's assumes have
defaulted can result in volatility in the deal's over-
collateralization levels. Further, the timing of recoveries and
the manager's decision whether to work out or sell defaulted
assets can also result in additional uncertainty. Moody's
analyzed defaulted recoveries assuming the lower of the market
price or the recovery rate to account for potential volatility in
market prices. Recoveries higher than Moody's expectations would
have a positive impact on the notes' ratings.

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



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


P4 SP ZOO: Fitch to Assign 'B+' LT Issuer Default Rating
--------------------------------------------------------
Fitch Ratings expects to assign Poland-based P4 Sp. z.o.o. (P4 or
Play) a Long-term Issuer Default Rating (IDR) of 'B+' with a
Positive Outlook.  The agency has assigned expected ratings of
'BB-(EXP)'/'RR3' to the proposed senior secured notes to be
issued by Play Finance 2 S.A. and 'B-(EXP)'/'RR6' to the senior
notes to be issued by Play Finance 1 S.A.  Final ratings of the
notes are contingent on the receipt of final documents conforming
materially to the preliminary documentation.

The expected IDR assumes the successful completion of P4's
refinancing/recapitalization activity, including the issuance of
the expected senior secured and unsecured notes, repayment of
existing bank debt (approximately PLN2.5bn) and the payment of a
shareholder dividend of PLN1.3bn.

P4 has proven a nimble and fast-growing challenger in the Polish
mobile market, establishing itself as a strong brand, with an
easily understood service message and competitive distribution
network.  Revenues and cash flows demonstrate strong growth, with
the company exhibiting improving margins, albeit below market and
positive (pre-distribution) free cash flow.

The rating is constrained by some uncertainty over future
financial policy, the pace of growth, market position among
competitors, and the currency mismatch of the proposed debt
structure.

The Positive Outlook reflects Fitch's opinion that delivery of
management's planned 2014 budget would result in robust financial
metrics for a 'B+' rating.  The evolution of the capital
structure following the transaction (i.e. how closely the
shareholders choose to manage leverage to covenant), continued
rational development of the market and evidence that roaming
agreements are largely insulated from material price inflation or
renegotiation risk, could support a higher rating.

              Rational Market, Low Convergence Risk

Fitch views competition in the Polish mobile market as developed
and well dimensioned with no single operator owning a
disproportionate share of the market, while as the market
challenger, Play has taken a measured approach to market share
gains, product position and pricing.  The agency considers that a
population of 38 million people in a reasonably advanced economy
can support a four player market and that the market structure is
less likely to experience the kind of value-destructive price
wars seen in some markets.  The somewhat underdeveloped fixed
telephony infrastructure and limited pervasion of traditional
triple-play services, suggest an aggressive move to convergent
fixed-mobile bundles is currently a limited medium-term risk.

                 Efficient Infrastructure Strategy

Play has developed an efficient approach to network coverage
concentrating its own network infrastructure in more populous and
urban areas, relying to a limited extent on roaming agreements,
which currently exist with each of the other three main network
operators.  Data traffic is almost entirely carried on the
company's own network, while spectrum and planned LTE (next
generation data technology) investment appear adequately
provisioned relative to the competition.  This hybrid asset-light
approach allows for a lower level of capital intensity, in turn
supporting an improving cash flow.  While roaming agreements are
entirely commercially negotiated, Fitch does not perceive a high
degree of renegotiation risk given the current existence of
multiple agreements.

                   Effective Commercial Approach

Play appears to have developed a consistent and well-communicated
brand, seeking to be the mobile number porting destination of
choice and has acquired customers on a relatively evenly balanced
basis across the market (ie. without targeting any one particular
competitor).  Management appear conscious of the need not to be
seen as a disruptive challenger, which could provoke a
destructive price war.  Distribution channels (ie. the number of
retail shops/distributors) among competitors appear evenly
matched, which is important, given the absence of an independent
distribution chain (ie. a Carphone Warehouse equivalent) .
Although virtual mobile network operators have been present in
the market for a number of years, they have not proven overly
disruptive.

                     Mature Competitive Market

As the smallest in a four player market in an emerging economy,
Play has proven a nimble competitor and has grown quickly and
consistently. The pace of growth will continue to require careful
management while the presence of two large incumbent- owned
multinational competitors -- Orange (BBB+/Negative) and T-Mobile
(Deutsche Telecom; BBB+/Stable) -- provides financially strong
and experienced competitors with the capacity to intensify the
operating environment if they choose.

                     Financial Policy Evolving

Financial policies that allow leverage to remain somewhat high
(incurrence tests of 4.25x net leverage; 3.0x net secured
leverage and a restricted payment test limited at 3.75x net debt
to EBITDA) and the currency mismatch of a predominantly euro-
denominated debt structure and 100% domestic revenue base, are
constraining factors for the rating.

POSITIVE: Any positive action would be subject to the continued
rational behavior of the market and that market share gains and
other performance indicators are in line with Fitch's rating
case.  The shareholders' approach to financial policy will also
be important.  With a potential IPO deemed a number of years off
and the bonds incorporating a restricted payment test (set at
3.75x) Fitch expects recurring dividends to consistently re-
leverage the balance sheet.  The level at which the shareholders
choose to establish this, combined with continued operational
performance will determine whether the financial profile supports
a 'BB-' rating.

The following metrics would be important for an upgrade to be
considered:

  -- Continued strong subscriber growth and an ongoing shift in
     the subscriber mix to postpaid customers, with subscriber
     acquisition cost and postpaid churn close to management's
     expectations.

  -- EBITDA margin in the high 20s and EBITDA less capex margin
     in the high teens.

  -- A financial policy that is likely to see FFO net adjusted
     leverage managed at or below 4.0x, a level consistent with
     net debt/EBITDA of around 3.3x-3.4x.

A stabilization of the rating at the current ('B+') level is
likely if the competitive (pricing) environment intensifies,
making revenue growth and margin expansion targets more
challenging.  An expectation that convergent services were deemed
by the market to be a more important offering could also
undermine the Positive Outlook.

A financial policy that included FFO net adjusted leverage
consistently managed above 4.0x would be expected to stabilize
the rating at 'B+'.  In the absence of greater clarity on
publicly stated financial policy from management/the owners,
Fitch would not expect any positive rating action until a second
dividend has been declared.

Full List of Rating Actions

  -- P4 Sp. Z.o.o. Long-Term IDR: Fitch expects to rate: 'B+';
     Outlook Positive

  -- Play Finance 2 S.A. Senior Secured Notes: 'BB-(EXP)'/'RR3'

  -- Play Finance 1 S.A. Senior Notes: 'B-(EXP)'/'RR6'


PLAY HOLDINGS 2: S&P Assigns Prelim. 'B+' Corp. Credit Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its
preliminary 'B+' long-term corporate credit rating to Poland-
based wireless telecommunications company Play Holdings 2
S.a.r.l. (PLAY).  The outlook is stable.

At the same time, S&P assigned its preliminary 'B+' issue rating
to the group's EUR630 million equivalent proposed senior secured
notes due 2019, to be issued by Play Finance 2 S.A. and S&P's 'B-
' issue rating to the group's EUR240 million proposed unsecured
notes due 2019, to be issued by Play Finance 1 S.A.

The preliminary rating on PLAY reflects S&P's assessment of its
financial risk profile as "aggressive" and its view of its
business risk profile as "fair," as well as its view of the
group's significant exposure to currency mismatch risk owing to
its euro-denominated debt and Polish zloty-denominated revenue.
PLAY is planning to issue EUR870 million of senior secured and
unsecured notes and use the proceeds, along with cash on its
balance sheet, to refinance existing debt and fund shareholder
distributions of about EUR309 million.

"PLAY's "fair" business risk profile reflects our view of its
solidifying position as the No. 4 mobile network operator in
Poland, with relatively significant subscriber market share of
over 18%, representing over 10 million subscribers.  We also
consider PLAY to have a strong brand as a value-for-money
provider, and we view the company's meaningful growth in recent
years and declining customer turnover as positives for our
assessment.  In addition, the business risk profile is supported
by our anticipation of additional growth in revenue and EBITDA
for PLAY, owing to the room for growth from mobile broadband and
additional subscribers.  We consider its operating efficiency to
be adequate, with a relatively low-cost business model and
attractive network sharing agreements," S&P said.

The business risk profile is constrained by PLAY's lack of
operating diversity, as it relies on a single market in a single
country, with a relatively high proportion of low value-based
prepaid subscribers.  S&P views the competition from larger
operators -- which have greater financial resources, higher
network coverage, or broader product ranges -- as a primary
constraint to S&P's evaluation of PLAY's business risk profile.
S&P also assess the company's profitability as below average for
the industry.

S&P's assessment incorporates its view of the telecoms and cable
industry's "intermediate" risk and its view of Poland's
"moderately high" country risk.

"We assess PLAY's financial risk profile as "aggressive" due to
its controlling financial sponsor ownership of over 40% (it is
about 50% owned by NTP S.a r.l.) and the degree of uncertainty we
have regarding its long-term financial policy and leverage
targets.  Our financial risk profile assessment also reflects our
forecast that the group's Standard & Poor's-adjusted debt-to-
EBITDA ratio will decline to below 4.0x in 2014 from about 5.3x
in 2013, pro forma the planned recapitalization of its balance
sheet. Furthermore, we forecast that the group's adjusted debt to
EBITDA will likely remain comfortably below 5x going forward, in
view of its meaningful organic deleveraging prospects and
limitations on debt incurrence.  We anticipate that the group's
free cash flow generation will be negative in 2013, due to the
acquisition of a spectrum license.  We anticipate that free cash
flows could be negative in 2014, as they were in 2013, due to the
possible purchase at auction of a 800MHZ/2600 MHZ spectrum
license. However, we forecast meaningful improvement in the
group's recurring free cash flows, excluding one-off spectrum
license acquisitions, despite increasing interest burden and
capital expenditure (capex) requirements in order to increase the
company's LTE high-speed data coverage," S&P added.

"We assess PLAY's anchor at 'bb-'.  To reach the long-term
corporate credit rating of 'B+', we make a one-notch downward
adjustment to the anchor for our comparable ratings analysis,
whereby we review an issuer's credit characteristics in
aggregate. This reflects what we view as significant currency
mismatch exposure.  The group's debt will be predominantly euro-
denominated, but we anticipate that it will generate nearly 100%
of its EBITDA in Polish zloty (PLN), with no hedging of its
principal in place.  The company's plans to hedge near-term
coupon payments only partly offsets currency risks, in our view.
The modifier also reflects our view of the company's lower-than-
average profitability compared with industry peers," S&P noted.

S&P's base-case operating scenario for PLAY assumes:

   -- GDP growth in Poland of 1.0% this year and 2.0% in 2014;

   -- Meaningful service revenue growth in 2013 (about 20%),
      reflecting a significant increase in subscribers following
      PLAY's introduction of all-inclusive voice plans, mostly
      offset by declining interconnect revenues--leading to
      overall revenue growth of 3%-4%.

   -- High-single-digit revenue growth in 2014, reflecting
      continued, though moderated, subscriber growth and
      stabilizing average revenue per user (ARPU) due to growth
      in data revenues.

   -- Subscriber acquisition and retention costs remaining
      significant at over 20% of revenues.

   -- Adjusted EBITDA margin of about 21% in 2013, increasing to
      over 25% in 2014, from about 19% in 2012.  The main factor
      behind the margin growth is the meaningful decline in
      interconnect costs in 2013 thanks to a 48% cut in Poland's
      mobile termination rates (MTR) in July (PLAY is a net payer
      of MTR).  In addition, margins are supported by improving
      economies of scale.

   -- Capital expenditure (capex) of 10%-11% of revenues in 2014.

Based on these assumptions, S&P arrives at the following credit
measures:

   -- Funds from operations (FFO) to debt of 13% at year-end
      2013, increasing to over 15% in 2014;

   -- Debt to EBITDA of 5.3x at year-end 2013, declining to below
      4.0x in 2014;

   -- Adjusted interest coverage of over 3.0x in 2014; and

   -- Adjusted free operating cash flow to debt of 7%-10% in
      2014, excluding the potential spectrum license acquisition.

The stable outlook reflects S&P's view of the prospects that
PLAY's profitability and cash flow generation will meaningfully
improve over the next 12 months.  S&P anticipates that this is
likely to happen even if growth is slower than in its base-case
scenario, due to lower subscriber acquisition costs.

S&P sees limited chances of an upgrade over the next 12 months.
This is due to S&P's view that it will continue to assess PLAY's
business risk profile as fair given its position as a challenger
in the mobile market and its relatively low profitability.  The
company's currency risk exposure, controlling sponsor ownership,
and lack of a defined financial policy also reduce the likelihood
of an upgrade.  S&P could consider raising the ratings, however,
if PLAY substantially hedges its debt principal, while
maintaining adjusted leverage below 5x and EBITDA margins in the
mid-20% range.  This will likely require the company to clarify
any additional spectrum spending requirements.

"We also see limited chances of a downgrade in the short term,
given our view of the company's solid deleveraging prospects.  We
could lower the rating if we were to revise downward our
assessment of PLAY's business risk profile.  This could happen if
the group's positive momentum significantly slows in 2014 due to
tougher market conditions and an increase in subscriber retention
costs, leading to lower profitability.  We may also assess the
business risk profile as weaker if PLAY has no access to 800MHZ
spectrum (either by owning licenses or acquiring access through a
wholesale agreement), as we think it could place PLAY at a
significant long-term disadvantage compared with its competitors.
We may also lower the rating if financial policy is more
aggressive than in our base-case assumptions, leading to an
increase in leverage to over 5x and decline in free cash flow to
debt (excluding one-off spectrum acquisition) to below 5%," S&P
added.



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


CARREFOUR ROMANIA: Bucharest Court Cancels Insolvency Procedures
----------------------------------------------------------------
The Diplomat reports that Carrefour Romania wins in court the
cancellation of insolvency procedures previously asked by one of
the company's suppliers, on the ground of unpaid debts worth
EUR180,000.  The company was represented in court by law firm
Acuca Zbarcea and Associates.

According to The Diplomat, GSL Logistic, a distributor for
children and adult accessories has asked for the insolvency.  The
retailer officials, the report relates, commented that the
decision of Bucharest Court of Law has been taken in rush and
Carrefour does not face any financial distress.

The retailer recently announced it opened two more proximity
stores of Express network in Bucharest, in partnership with
Salviamax, respectively in Brasov, in partnership with RostCom.
Both stores will be run in franchise system. Following the
openings, Carrefour reached a total network of 58 proximity
stores, out of which 10 are located in Brasov and 48 are located
in Bucharest and Ilfov.

Currently, Carrefour operates 4 retail formats, with a total of
159 stores: 25 hypermarkets, 77 supermarkets, 56 proximity
Express stores and online store.  Carrefour Romania has more than
1,500 private label products on the local market, which represent
around 13 percent of the company total turnover.


* ROMANIA: 3,700 Corporate Insolvencies Recorded in Bucharest
-------------------------------------------------------------
Romania-Insider.com reports that around 30,000 Romanian companies
entered insolvency last year, up 10 percent on 2012. Over a third
of the newly insolvent ones were retail companies, according to
Trade Registry data.

December saw the start of insolvency procedures for 2,400
companies, down on 3,500 in November and 3,300 in October,
Romania-Insider.com discloses.

Romania-Insider.com relates that most insolvencies were recorded
in Bucharest -- 3,700, up 5.4 percent on 2012 -- and Bihor, with
1,800 insolvencies, a 40 percent growth on 2012. The smallest
number of insolvencies was recorded in Calarasi -- only 217
cases, and Olt -- 244 cases.

After retail trade, construction companies were the second most
affected by insolvency -- 3,800 insolvencies, which was however
down on 6,100 in 2012. Hotels and restaurants kept a steady trend
-- 3,400 insolvencies, compared to 3,100 in 2012, relays Romania-
Insider.com.



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


GC PASTOR: S&P Lowers Rating on Class C Notes to 'D'
----------------------------------------------------
Standard & Poor's Ratings Services lowered to 'D (sf)' from 'CCC-
(sf)' its credit rating on GC Pastor Hipotecario 5, Fondo de
Titulizacion de Activos' class C notes.

The downgrade follows the class C notes' interest payment default
on the Dec. 23, 2013 interest payment date (IPD).  The rest of
the capital structure remains unaffected.

As S&P noted in its previous review on July 26, 2013, its rating
on the class C notes reflect the proximity of the notes to their
interest deferral trigger and the lack of liquidity, as the
reserve fund has been fully depleted since July 2010.

The trustee's data for the December 2013 IPD shows that
cumulative defaults account for 7.04% of the closing portfolio
balance, which is above the transaction's 6.7% trigger for the
class C notes.

The class C notes defaulted on their interest payment on the
December 2013 IPD following the breach of the interest deferral
trigger and a lack of available liquid funds.  As S&P's ratings
in this transaction address the timely payment of interest and
the ultimate payment of principal, it has lowered to 'D (sf)'
from 'CCC- (sf)' its rating on the class C notes.

GC Hipotecario Pastor 5 closed in June 2007 and securitizes a
portfolio of mortgages granted to individuals, self-employed
individuals, and small and midsize enterprises (SMEs) to buy
Spanish residential or commercial properties.  Banco Pastor (now
Banco Popular) originated and currently services the portfolio.


SANTANDER CONSUMER: Fitch Affirms 'CCC' Rating on Class D Notes
---------------------------------------------------------------
Fitch Ratings has taken rating actions on Santander Consumer
Spain 09-1 FTA (09-1) and Santander Consumer Spain 10-1 FTA (10-
1).

The rating actions are as follows:

Santander Consumer Spain 09-1, FTA:

  -- EUR70.9m class B: affirmed at 'A+sf'; Outlook Stable
  -- EUR37.8m class C: upgraded to 'BBB+sf' from 'BBBsf'; Outlook
     Stable
  -- EUR35.7m class D: affirmed at 'CCCsf'; Recovery Estimate 70%

Santander Consumer Spain 10-1, FTA:

  -- EUR48.6m class A: affirmed at 'AA-sf'; Outlook Stable
  -- EUR57m class B: affirmed at 'AA-sf'; Outlook Stable
  -- EUR49.5m class C: affirmed at 'Asf'; Outlook Stable

Santander Consumer 09-1 and 10-1 are both securitizations of auto
and consumer loans extended to Spanish consumers.

Key Rating Drivers

The rating actions reflect the transaction's solid performance
over the past 12 months.  Both deals have significantly
deleveraged, leading to an increase in the available credit
support. Fitch expects this deleveraging trend to continue.

Arrears for Santander Consumer 10-1 have seen an increasing trend
since closing in July 2010, albeit on a low level. As of the most
recent interest payment date (IPD) in November 2013, 30+ days
past-due delinquencies stood at 3.3%.  As a result, excess spread
trends have remained healthy.  The reserve fund for 10-1 has also
remained fully funded since closing.

Santander Consumer 09-1 has seen less positive trends, based on
the most recent IPD in October 2013, with late-stage
delinquencies continuing to increase and the reserve fund being
drawn for the second time since closing in August 2009.  A
principal retention reserve is also in place whereby collections
of up to 20% of the outstanding portfolio balance, including
write-offs, are retained within the structure with the intention
of extending the life of the notes.  This introduces an
additional layer of counterparty exposure to the account bank as
EUR56.7 million of enhancement for the deal is currently held in
cash.

Despite these factors, Fitch has upgraded the ratings of the
class C note by one notch as the available credit enhancement,
after accounting for the additional risks, is still sufficient to
support the higher rating.  However, the recent reserve fund draw
may have a negative impact on the future performance of the lower
class D tranche, which Fitch will to continue to monitor.

The ratings of the senior tranches for each deal are capped by a
five-notch uplift from Spain's sovereign rating (BBB/Stable/F2),
despite the considerable credit enhancement available.

Rating Sensitivities

Santander Consumer Spain 09-1,FTA

Expected impact upon the note rating of increased defaults
(class B/C/D):

  Current ratings: 'A+sf'/'BBB+sf'/'CCCsf'
  Increase base case defaults by 25%: 'A+sf'/'BBB+sf'/'CCCsf'

Expected impact upon the note rating of reduced recoveries
(class B/C/D):

  Current ratings: 'A+sf'/'BBB+sf'/'CCCsf'
  Reduce base case recoveries by 25%: 'A+sf'/'BBB+sf'/'CCCsf'

Santander Consumer Spain 10-1,FTA

Expected impact upon the note rating of increased defaults
(class A/B/C):

   Current ratings: 'AA-sf'/'AA-sf'/'Asf'
   Increase base case defaults by 25%: 'AA-sf'/'AA-sf'/'Asf'

Expected impact upon the note rating of reduced recoveries
(class A/B/C):

  Current ratings: 'AA-sf'/'AA-sf'/'Asf'
  Reduce base case recoveries by 25%: 'AA-sf'/'AA-sf'/'Asf'


SUPERMERCADO LA NUCIA: In Receivership, Assets Auction Set
----------------------------------------------------------
Euroweekly News reports that official receivers have decided to
auction Supermercado La Nucia.

Supermercado La Nucia is one of the few places where foreign
residents could buy products they missed from home, according to
Euroweekly News.

The report relates that it gradually but inexorably fell victim
to the crisis and the brothers failed to reach agreement over the
supermarket's future and it is now in receivership.

The report notes that an auction was decided on to ensure that
the business continues to operate and the 34 employees do not
lose their jobs.  It will be held on January 23 in Alicante, with
a reserve price of EUR2,213,539.

Supermercado La Nucia was founded by brothers Enrique and Juan
Bautista Mendoza just over 33 years ago.


* SPAIN: Banks' Bad Loans Up in November 2013
---------------------------------------------
David Roman at The Wall Street Journal reports that bad loans
held by Spanish banks rose again in November, the latest in a
series of months in which they hit an all-time high, an
indication that the balance sheets of the country's lenders will
take time to reflect the gradual improvement of the economy since
mid-2013.

According to the Journal, data released Friday by the Bank of
Spain showed that non-performing loans stood at 13.07% of all
loans in November, up from 13% in October.  Bad loans amounted to
EUR192.5 billion (US$262 billion) in November, up from EUR190.9
billion in the previous month, the Journal says.

In a significant departure from previous months, total loans
increased to EUR1.471 trillion from EUR1.469 trillion in
October -- the first such monthly increase since March 2013, the
Journal discloses.



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


CO-OPERATIVE BANK: KPMG Faces Probe Over Handling of Accounts
-------------------------------------------------------------
BBC News reports that KPMG is being investigated over its
handling of the troubled Co-operative bank's accounts.

According to BBC, the Financial Reporting Council will look into
the "preparation, approval and audit" of the Co-op bank's
finances up to the end of 2012.

The accountancy group said it would co-operate fully, BBC
relates.

The Co-op bank is struggling financially, and is also suffering
from a scandal involving its former chairman Paul Flowers, BBC
relays.  Mr. Flowers, a Methodist minister with little experience
in banking, joined the Co-op board in 2009 as a non-executive
director, BBC discloses.

Co-op Bank was rescued last year under a deal with bondholders,
after it emerged the bank faced a GBP1.5 billion black hole, BBC
recounts.

                     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.


DCT GROUP: In Administration Over Legal Costs, Cuts 100 Jobs
------------------------------------------------------------
BBC News reports that engineering firm DCT Group is in
administration over legal costs

About 100 staff at a civil engineering firm has been made
redundant after the company went into administration, according
to BBC News.  The report relates that DCT Group said legal costs
following a dispute with Liverpool City Council had pushed it
into insolvency.

Liverpool City Council said it was "disappointed" it had not been
contacted to discuss the situation, the report relays.

The report notes that administrator Tom Jack said DCT Group had
been involved in a long-standing legal dispute with Liverpool
City Council.  "DCT Group was a long-established engineering
business that has been impacted by the outcome of a legal
dispute.  As a result the group has insufficient cash flow to
fund continued trading," the report quoted Mr. Jack as saying.

Oldham-based DCT Group is an engineering firm.  The company
focused on infrastructure projects relating to highways, public
realm, environmental, renewable energy and water and sewerage.


DONCASTER ROVERS: Denies Administration Talk
--------------------------------------------
Paul Goodwin at Thorne and District Gazette reports that
Doncaster Rovers have strenuously denied they are considering
entering administration.

Doncaster Rovers was thought to be weighing up the drastic move
due to concerns centered on money owed to John Ryan, according to
Thorne and District Gazette.

But, the report notes that following the announcement of Richie
Wellens' arrival on an 18-month contract, Doncaster Rovers was
keen to point to that deal in a statement denying they were
contemplating administration.

The report says that Chief Executive Gavin Baldwin said: "The
club's top priority is to support the manager in every way
possible to ensure we maintain our Championship status. . . . The
owners have shown a clear intent for the future by making funds
available for new signings during the transfer window."

"In addition to this we have also gone above and beyond our
normal parameters to ensure that Richie Wellens remains at the
club long term . . . .  These are not the actions of a club who
are considering administration as an option," the report quoted
Mr. Baldwin as saying.

The report says that news surfaced in the national press
suggesting the club could be on the verge of going into
administration; the latest twist in an extraordinary season of
off the field activity.  The report relates that the issue at the
heart of that story is the money owed to Mr. Ryan.

Mr. Ryan revealed he is owed GBP4 million by the club when he
announced his resignation as chairman and a director following
the 0-0 draw at Barnsley in November, the report notes.

Sequentia Capital is understood to have agreed to buy that loan
off Ryan as part of their strategy to take over the club, the
report discloses.

The Free Press understands that neither Mr. Ryan nor Sequentia
Capital are likely to call that loan in -- but there has been
anxiety in the Rovers boardroom about the cash owing, the report
notes.

Sequentia have written to Rovers' majority shareholders
attempting to dissuade them from entering administration and also
expressing their continued interest in buying the club and
investing in squad strengthening, the report relates.


GAME: Stores Rebound From Falling Into Administration
-----------------------------------------------------
express.co.uk reports that the popularity of new computer games
such as Grand Theft Auto 5 helped retailer Game steal a march on
rivals and boost festive sales.

Games like Grand Theft Auto V have boosted sales by over 80 per
cent for Game stores Games like Grand Theft Auto V have boosted
sales by over 80 per cent for Game stores, according to
express.co.uk.

The report notes that the gaming group, which fell into
administration two years ago before being bought by private
equity outfit OpCapita, said total sales in the six weeks to
January 4 had raced 83 per cent higher compared to market growth
of 53 per cent.  The report relates that sales at stores open at
least a year grew 90 per cent and online sales, helped by a new
mobile app, surged 213 per cent.

Led by Chief Executive Martyn Gibbs, it said games such as FIFA
14 as well as new computer consoles PlayStation 4 and Xbox One
proved popular at its 320 stores, the report notes.

The report relays that Mr. Gibbs said: "These figures reflect the
transformation of the operational and financial profile of the
business.  Gamers are coming to us because of our in-depth
product knowledge and exclusive content. We see strong momentum
in our business."

Analyst Nick Bubb said: "Game might very well be big enough again
to be thinking about a listing," the report adds.


GLYNN PRINT: In Creditors' Voluntary Liquidation
------------------------------------------------
PrintWeek News reports that joint liquidators Chris Stirland --
chris.stirland@frpadvisory.com -- and Phil Pierce --
phil.pierce@frpadvisory.com -- from restructuring firm FRP
Advisory were appointed on Dec. 31, following a meeting of the
board of directors on December 17 during which the decision was
taken to place the company into CVL.

The Stourton-based group, which employed 49 staff at The Website
and 77 at Glynn Print Finishers, ceased trading immediately,
according to PrintWeek News.

The report notes that its demise has been blamed on the
unexpected cancellation just before Christmas of a major
contract, for which a number of full-time employees had been
recruited, as well as a string of bad debts impacting cashflow.

The report relates that the last contract, speculated to be for
pizza chain Domino's, is understood to have involved as much as
GBP500,000 worth of work every six weeks.  PrintWeek understands
that a change in the management of the Domino's contract has
resulted in a switch of print supplier.

Following the contract, cancellation attempts to sell off some of
the group's assets, in an effort to ease the cash flow shortages,
were unsuccessful, the report notes.

The report relays that statement from FRP Advisory said: "The
wider paper and card printing market has been in chronic decline
over a number of years since the advent of online publishing and
the pace of that decline is increasing, however the group had
managed to win market share in the past three years by investment
in cutting edge printing press machinery."  "The group was
increasingly reliant on revenue provided from The Website but the
cancellation of a key order from a previously loyal customer on
short notice without warning left it with a large deficit which
it was unable to fund."

The report discloses that joint liquidator Mr. Stirland said: "It
is hugely regrettable that a strong Leeds-based business with a
loyal national customer base and which has employed over 100
staff for more than a decade has had to close."

A source told PrintWeek that final negotiations were now underway
with a potential buyer for some of the group's assets that "could
lead to a couple of dozen jobs being created within the next few
days."


KMS COMPONENTS: In Administration, Cuts 30 Jobs
-----------------------------------------------
Penarth Times reports that KMS Components Limited has gone into
administration with the loss of more than 30 jobs.

KMS Components went into administration on Wednesday, January 8.

Of the 55 people that were employed at KMS House, by Penarth
Marina, 36 have been made redundant with 19 staff currently
remaining, according to Penarth Times.

Richard Michael Hawes -- rhawes@deloitte.co.uk -- and Matthew
David Smith of Deloitte LLP were appointed Joint Administrators
of KMS Components Limited on January 8.

Penarth-Based KMS Components Limited is one of the largest
distributors of tablets and other computer components in the UK.
KMS Components was founded in 1994.


PUNCH TAVERNS: Gives Ultimatum to Lenders on Restructuring Deal
---------------------------------------------------------------
This is Money reports that Troubled Punch Taverns has given an
ultimatum to lenders to accept a restructuring deal or risk
Britain's second largest pubs group falling into administration.

Punch Taverns' board has wrangled with a consortium of pension
funds, who control the GBP2.3 billion debt pile, over the past 14
months, according to This is Money.

But in a surprise move Punch Taverns issued 'final proposals',
warning that failure to push them through -- at a meeting on
Valentine's Day -- could result in the business defaulting, the
report notes.

The report relates that Executive Chairman Stephen Billingham
said: "Failure to do so will lead to a much worse outcome with
considerable uncertainty for the business and potentially
significant loss of value."

The report discloses that the details of the restructuring were
made without final consultation of the ABI Senior Noteholder
Committee pension funds.

The group believes Punch is overplaying 'future uncertainty' in a
bid to force lenders to agree to the restructuring, the report
relays.

The ABI consortium is just one of 16 groups of lenders who have
to vote 75 per cent in favor for the restructuring to go through.

As reported in the Troubled Company Reporter-Europe on Jan. 16,
2014, Nathalie Thomas at The Telegraph reports that Punch Taverns
has published final proposals to restructure its GBP2.3 billion
debt pile, warning that failure to secure agreement from lenders
will lead to "considerable uncertainty."  According to The
Telegraph, the company said the restructuring deal will create a
"robust debt structure" that will provide stability for the
business.

Punch is weighed down by two complex debt structures, which suck
up large amounts of cash from the company to avoid a default, The
Telegraph notes.

The structures, which together amount to GBP2.3 billion, are a
legacy of a debt-fuelled acquisition boom last decade, The
Telegraph states.

The company has so far faced opposition to its restructuring
plans from senior lenders, who warned in December that they would
vote against the proposals on the table at that time, The
Telegraph relates.

Punch Taverns plc is a United Kingdom-based pub company.  The
Company is engaged in the operation of public houses under either
the leased model or as directly managed by the Company.  The
Company operates in two business segments: punch partnerships, a
leased estate and punch pub company, a managed estate.


PYKES THE JEWELLERS: In Administration, Assets for Sale
-------------------------------------------------------
Chester Chronicle News reports that Pykes the Jewellers is up for
sale after going into administration on Jan. 3 more than 135
years since being founded.

It is believed the business has been impacted by reduced
discretionary spending during the down-turn, competition from
online jewelry websites and a rise in the price of precious
metals, according to Chester Chronicle News.

The report notes that Liverpool-based Parkin S Booth & Co has
been instructed to oversee the administration of the company,
with Ian Brown and John Fisher appointed as joint administrators.
The report relates that they hope to sell the business as 'a
going concern' with 'some interest' already expressed from
potential buyers.

Pykes' four shops will remain open while a buyer is sought, with
no redundancies so far, the report discloses.   There is
currently a discount sale across all stores to help drive
footfall and sales, the report adds.

Pykes the Jewellers is a family-run jewellery chain.  It has
shops in Chester, Birkenhead, and Liverpool.  The North West
jeweller was established by William Pyke in Market Street,
Birkenhead, in 1876.


SCHOOL DINNER: Goes Into Liquidation
------------------------------------
Gloucester Citizen reports that 17 primary schools across
Gloucestershire are searching for a new school dinner provider
after an independent Cheltenham caterer has gone into
liquidation.

The School Dinner Company (SDL) has informed schools and
creditors that it stopped trading as of Jan. 2.

The report notes that its chefs cooked out of seven kitchens in
the Cheltenham area serving primary schools including St
Gregory's, Rowanfield School, and Swindon Village Primary School
and catered for around 1,500 schoolchildren and staff.

The report notes that a notice said: "We regret to advise you
that The School Dinner Company LLP has ceased to trade and will
shortly be commencing liquidation proceedings.  The Partners have
instructed Andrew Shackleton of Smart Insolvency Solutions to
assist in this process. If you are a creditor of the Company you
will receive formal notification shortly."

School Dinner Company (SDL) is based in Park Farm Industrial
Estate, Evesham Road, was set up by partners Julie Owen and Adam
Hands and, on its website, claimed to have more than 22 years
experience.


TANFIELD ENGINEERING: Dozens Jobs Saved as Tinsley Buys Business
----------------------------------------------------------------
Robert Gibson at The Journal reports that dozens of North East
jobs have been saved after a buyer was found for one of the
Tanfield Group plc's divisions.

The Journal notes that Tanfield Engineering Systems Ltd was
placed into administration in November last year by its directors
after posting substantial losses in the previous financial year.

The Recovery & Insolvency team at RMT Accountants & Business
Advisors was appointed as administrators for the Tanfield-based
business with a view to trading the business to protect its
substantial debtor book, marketing it and attempting to sell it
as a going concern, the report says.

According to the report, interest was shown by a number of
potential buyers, and after the suitability of each interested
party was assessed, a deal was agreed with specialist heavy
transport industry manufacturer Tinsley Special Projects Ltd,
which has premises in Eaglescliffe and Peterlee in County Durham.

The Journal reports that 68 jobs have been retained from the 97-
strong Tanfield Engineering Systems workforce as part of the sale
to Tinsley.

"The synergies that lay within Tanfield Engineering Systems made
it an excellent fit with our existing portfolio of operations,
and this strategic acquisition has developed an even stronger
overall client offering and indeed client base," the report
quotes a spokesperson for Tinsley Special Projects as saying.

"The RMT team was very proactive in ensuring that the Tanfield
business remained a viable going concern, and their support in
reaching a successful conclusion to this process has been
invaluable."

UK-based Tanfield Engineering Systems Ltd provides engineering
services.


* UK: RBS Faces Probe Over Business Loan Default
------------------------------------------------
Max Colchester at The Wall Street Journal reports that the U.K.
banking regulator is bringing in external help to probe
allegations that Royal Bank of Scotland Group Royal Bank of
Scotland Group PLC forced several small businesses into default
to boost its profits.

According to the Journal, the regulator said it hired Promontory
Financial Group and accountancy group Mazars to write a report.
The review will look at a sample of customers who were referred
to RBS's restructuring unit and decide whether they were badly
treated and whether this behavior was widespread, the Journal
says.  The FCA will publish its final findings in the third
quarter of 2014, the Journal discloses.

The probe followed a report by Lawrence Tomlinson, an adviser to
Business Secretary Vince Cable, which alleged that RBS forced
several business customers to default on loans so that the bank
could charge higher fees or seize their assets, the Journal
notes.

Mr. Tomlinson's report fueled concern in political circles that
banks aren't doing enough to support the U.K.'s small and medium
sized businesses -- an accusation that 81% state controlled RBS
has long sought to deny, the Journal relays.

RBS has also denied its GRG unit mistreated these customers, the
Journal relates.  An independent report commissioned by RBS found
that fewer than 10% of businesses referred to the bank's Global
Restructuring Group unit ended up in bankruptcy, the Journal
discloses.



                            *********

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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