TCREUR_Public/140123.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 23, 2014, Vol. 15, No. 16



PARTS HOLDINGS: Moody's Assigns '(P)B2' Corp. Family Rating
PARTS HOLDINGS: S&P Assigns Preliminary 'B+' CCR; Outlook Stable


COMMERZBANK CAPITAL: Moody's Raises Sub. Instrument Rating to Ba2
COMMERZBANK CAPITAL: S&P Raises Debt Rating to 'BB+'
DECO 17: Moody's Affirms Caa2 Rating on EUR104.6MM C Notes
HEAT MEZZANINE: Moody's Withdraws Ratings on 3 Note Classes


ALLIED IRISH: Moody's Raises Gov't-Guaranteed Rating From Ba1/NP
BLOXHAM: Liquidator Challenges ISE Membership Revocation
DIRECTROUTE FINANCE: Moody's Raises Secured Loan Rating to Ba2


SNORAS BANK: Antonov & Baranauskas Can Be Extradited in Lithuania


PLAY HOLDINGS: Moody's Assigns 'B1' CFR; Outlook Stable


* PORTUGAL: Moody's Says Q4 2013 RMBS Performance Stable


CODERE SA: May Seek Creditor Protection if Bondholder Talks Fails

U N I T E D   K I N G D O M

AIRCONMECH UK: In Administration; Owes GBP1.4 Million
AVE BIKES: Files For Insolvency
CO-OPERATIVE BANK: Parent Cancels Sale of General Insurance Unit
EDWARDS GROUP: S&P Raises Long-Term Corp. Credit Rating From 'B+'
* UK: Scottish Company Liquidations Up 23% in 4th Qtr. 2013


* AlixPartners Promotes 11 to Managing Director, 35 to Director



PARTS HOLDINGS: Moody's Assigns '(P)B2' Corp. Family Rating
Moody's Investors Service has assigned a corporate family rating
(CFR) of (P)B2 to Parts Holdings (France) S.A.S., a holding
company of the Autodistribution group. Concurrently, Moody's has
assigned a (P)B3 rating to the proposed EUR 240 million senior
secured notes due 2019 to be issued by Autodis S.A. The outlook
on all ratings is stable.

The proceeds from the notes will be used to repay existing loan
facilities, shareholder loans and as the case may be to partly
finance the potential acquisition of ACR Holdings S.A.S. ("ACR").

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

Ratings Rationale

The (P)B2 CFR reflects: (1) Autodistribution's exposure to the
economy of France representing about 90% of LTM October 2013
sales; (2) the company's modest size compared to some of its
suppliers, potentially limiting its bargaining power; (3) intense
competition in the sector leading to price pressure; (4) high
leverage proforma for the transaction; (5) sensitivity of the
automotive aftermarket to macroeconomic conditions and oil price;
and (6) risks relating to potential M&A activity.

Positively, the ratings are supported by: (1) an established
presence in the fragmented aftermarket, characterized by higher
customer loyalty and less cyclicality compared to the automotive
sector; (2) the company's relative size compared to other
independent players, manifesting itself in a dense distribution
network and leading to economies of scale; (3) a fragmented
customer base, consisting of local distributors and garages; and
(4) Autodistribution's track record showing improving operational
performance in the most recent years.

The Independent Automotive Aftermarket ("IAM") channel of the
automotive aftermarket within which Autodistribution operates is
focused on the car park of four years and older, usually not
covered by manufacturer warranties, and is mainly served by
independent garages. This provides greater stability to the
sector compared to the Original Equipment Suppliers ("OES")
channel, which is closely linked to new vehicle registrations.
The current economic environment characterized by diminished
consumer spending power and an increasing age of the car park, as
well as European regulation, are favorable to the IAM channel.
Independent players such as Autodistribution benefit from the
increase in size and complexity of the spare parts catalogue and
lower prices which independent garages are able to offer to

The company's operations are mainly concentrated in France, where
Moody's expects the spare parts aftermarket for light vehicles
and trucks to exhibit very limited growth. However, the market
share of independent garages is already larger than the OES
segment and the IAM channel is at least expected to grow in line
with the total market.

However, the IAM channel is facing different challenges, such as
the increasing quality of cars and parts resulting in less
frequent needs for maintenance (which are partially offset by the
increased complexity and average price per spare part), exposure
to oil prices linked to a decrease in mileage and intense
competition leading to consolidation. The IAM channel in Europe
is very fragmented, with few larger players of similar size to
Autodistribution. Although Autodistribution is the biggest
independent player in its key market of France, the atomization
of the industry results in intensive price competition, from
local competitors as well as from OES trying to capture a share
of the aftermarket channels through the extension of warranties.
However, Moody's considers the company to be well positioned to
compete thanks to its strong local distribution coverage, client
relationships including more than 3,200 Autodistribution-
affiliated garages in France and more than 300 in Poland, its
broad product range and direct access to suppliers.

The company's highly fragmented customer base is supplemented by
the diversification of its suppliers, with the top supplier in
France contributing about 9.2% of the company's total purchases
and no other supplier accounting for more than 3.9% of purchases.
However the bargaining power of the company with its top
suppliers may be limited, given its exposure to large
international players such as Bosch (unrated) and Valeo S.A.
(Baa3 stable).

The company has improved operational performance, evidenced by
the Moody's adjusted EBITDA margin increasing from 5.9% in 2010
to 7.4% in 2012, incorporating initiatives to reduce costs,
improve customer service and loyalty, increase focus on
centralized sourcing and strengthen the distribution network.
With the French automotive aftermarket expected to show limited
near-term growth, the company plans to improve margins though
enhancing its product and service offering, and further reducing
costs of its distribution network and IT systems.

Although market growth in the Polish automotive aftermarket is
likely to be higher than in France, the company's focus for its
Polish operations will remain on margin improvement rather than
sales growth. Future growth is likely to be driven organically by
improving network coverage, the addition of new key accounts and
leveraging on ACR's product expertise and specialized logistic
strengths (if the ACR acquisition occurs). Given the fragmented
nature of the industry the company may also grow via bolt-on
acquisitions, which may be financed by drawings under its EUR 20
million revolving credit facility (RCF).

Moody's expects free cash flow to remain above 3% as a % of debt,
despite higher interest payments under the proposed new capital
structure, working capital cash outflow and higher Capex to
support growth. Moody's expects adjusted gross Debt/pro-forma
EBITDA of 5.1x at the end of 2013, resulting in a highly
leveraged financial profile. Moody's does not anticipate
significant deleveraging given the absence of amortizing debt in
the capital structure and only a modest growth expected in

The proposed capital structure includes EUR240 million five year
fixed-rate senior secured notes due 2019, and a EUR20 million
super-senior RCF maturing in 2018. Both the notes and RCF will be
secured by shares of Parts Holdings (France) S.A.S., a pledge
over its bank accounts and its intragroup receivables, shares of
the Issuer Autodis S.A., substantially all of its assets,
including a pledge over shares of certain subsidiaries held by
Autodis S.A., its bank accounts as well as the rights over
intragroup receivables. The (P)B3 rating on the notes reflects
the limited amount of guarantees from operational entities for
the notes and the liabilities ranking ahead of the notes in the
pro forma structure.

Moody's considers the company's liquidity profile to be adequate
for its near-term requirements, supported by approximately EUR27
million cash pro-forma for the transaction and the EUR20 million
RCF which is expected to be undrawn at closing. The RCF benefits
from a single minimum EBITDA covenant, set with a large headroom
of 45%.

The stable rating outlook is based on Moody's expectation that
the company will continue to improve its operational performance,
maintain and improve its market position and generate positive
cash flow despite the competitive market environment.

What Could Change The Rating UP/DOWN

Positive pressure on the ratings could arise if Moody's adjusted
gross Debt/EBITDA ratio decreases below 5.0x and (EBITDA-Capex)
Interest ratio raises above 2.0x. Negative pressure could arise
if due to underperformance Moody's adjusted gross Debt/EBITDA
ratio rises towards 6.0x or (EBITDA - Capex) / Interest ratio
falls towards 1.5x. Any substantial debt-financed acquisitions
could also have a negative impact on the ratings.

The contemplated ACR acquisition may be partly funded through the
issuance of the notes that will be held into escrow only to be
released upon finalization of the acquisition. A change in the
contemplated terms and conditions of the acquisition or failure
to acquire ACR could have an impact on the final rating.

The principal methodology used in these ratings was the Global
Distribution & Supply Chain Services published in November 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.

Autodistribution is the leading independent distributor of
aftermarket parts for light vehicles and trucks in France. The
company generated revenue of EUR 1,129 million in the twelve
months ended October 31, 2013.

PARTS HOLDINGS: S&P Assigns Preliminary 'B+' CCR; Outlook Stable
Standard & Poor's Ratings Services said it had assigned its
preliminary 'B+' corporate credit rating to Parts Holdings
(France) SAS, the holding company of France-based auto parts
distribution group Autodis SA (Autodistribution).  The outlook is

At the same time, S&P assigned its preliminary 'BB-' issue rating
to Autodistribution's proposed EUR20 million super senior
revolving credit facility (RCF), with a preliminary recovery
rating of '2', indicating S&P's expectation of substantial
(70%-90%) recovery for lenders in the event of a payment default.
S&P also assigned its preliminary 'B+' issue rating to
Autodistribution's proposed EUR240 million senior secured bond,
with a preliminary recovery rating of '4', indicating S&P's
expectation of average (30%-50%) recovery in case of default.

The preliminary ratings reflect S&P's view of Autodistribution's
business risk profile as "weak" and financial risk profile as
"aggressive," as S&P's criteria define these terms.

S&P understands Autodistribution plans to refinance its debt
through the issuance of a EUR240 million senior secured bond and
a EUR20 million super senior RCF.  The company intends to use the
proceeds from the bond issuance to refinance the bulk of its
existing debt in the amount of EUR170 million and to partly fund
the potential acquisition of ACR Holding SAS (ACR), a distributor
of spare parts for light vehicles in France, in the amount of
EUR40 million.  As per the terms of the proposed bond issue, the
overall transaction is compliant with the terms of the safeguard
plan that was agreed in 2009 and will continue until 2016 at the
level of Parts Holdings (France) SAS (the parent guarantor), but
will be terminated at the Autodis SA level (the issuer),
following the new debt issuance and repayment of existing debt.

Autodistribution's "weak" business risk profile is constrained by
S&P's view of the company's generally narrow business scope and
exposure to cyclical and mature automotive end-markets in France.

"We assess Autodistribution's financial risk profile as
"aggressive," based on our base-case scenario of the adjusted
debt-to-EBITDA ratio remaining consistently close to or slightly
below 4.0x over the next few years," S&P said.

The stable outlook reflects S&P's expectation that
Autodistribution's low capital intensity and anticipated stable
operating performance will support positive DCF generation and
keep the group's leverage in the "aggressive" category, according
to S&P's criteria.


COMMERZBANK CAPITAL: Moody's Raises Sub. Instrument Rating to Ba2
Moody's Investors Service has upgraded to Ba2 from B1(hyb) the
subordinated instrument issued by Commerzbank Capital Funding
Trust II (XS0248611047). The upgrade and the removal of the
hybrid (hyb) indicator from this rating follows an announcement
by Commerzbank AG (Commerzbank, deposits Baa1 stable, BFSR D+/BCA
ba1 stable) on 16 January 2014 that it has restructured the non-
cumulative Trust Preferred Security into a Trust Lower Tier 2
(Trust LT2) Security. The outlook on the Ba2 rating is stable, in
line with the outlook on Commerzbank's other rated obligations.

Commerzbank's announcement follows a court decision on
July 16, 2013 of the Chancery Court of the State of Delaware,
ruling that holders of instruments issued by Commerzbank Capital
Funding Trust II should be treated pari passu with holders of the
restructured Silent Partnership Certificates issued by Dresdner
Funding Trust IV (Dresdner FT IV) which Moody's rates Ba2 stable.

Concurrently, Moody's affirmed the B1(hyb) ratings for the
securities issued by Commerzbank Capital Funding Trust I and III
(DE000A0GPYR7, DE000CK45783), and changed the outlook for these
ratings to positive from stable. The positive outlook reflects
Moody's view that there may be positive implications from the
Delaware court decision for holders of these instruments.

All other ratings of Commerzbank group are unaffected by the
rating action.

Ratings Rationale

Moody's two-notch upgrade of the restructured Trust LT2 of
Commerzbank Capital Funding Trust II to Ba2, and the removal of
the hybrid indicator from this rating, was prompted by the
communication of Commerzbank (on January 16, 2014) that it has
amended the documentation of this instrument. The amendment
entails (1) the removal of the coupon skip triggers from the
documentation; and (2) the elevation to Lower Tier 2 ranking
(from Tier 1) in liquidation. As a consequence, the risk profile
of these instruments closely resembles that of senior
subordinated (Lower Tier 2) debt issued by Commerzbank AG, which
is rated one notch below Commerzbank's adjusted baseline credit
assessment (adjusted BCA) of ba1.

Commerzbank made the amendment in consideration of a court ruling
on 16 July 2013 which requires the bank to elevate the respective
securities to the same Lower Tier 2 capital class as is
applicable for the instruments issued by Dresdner FT-IV, and to
remove the profit-dependent trigger.

The affirmation and outlook change to positive from stable of
Commerzbank Capital Funding Trust I and III reflects Moody's
assumption that Commerzbank may decide to treat holders of
instruments of the three Funding Trusts the same, implying that
Commerzbank Capital Funding Trust I and III may be restructured
in a similar fashion at a later date. This, in turn, is based on
(1) the Delaware court ruling; and (2) Moody's understanding that
investors in the two Trusts not subject to the ruling may have
similar rights of treatment as investors in Capital Funding Trust
II. However, Commerzbank Capital Funding Trust I and III are only
indirectly affected, if at all, and will not necessarily be
subject to court decisions in the future, although Moody's notes
that the securities of Commerzbank Capital Funding Trust I are
the subject of currently pending litigation in Delaware.

What Could Move the Ratings UP/DOWN

The Ba2 ratings of the Commerzbank Capital Funding Trust II and
the B1(hyb) ratings of Commerzbank Capital Funding Trust I and
III depend on -- and therefore will move in tandem with -- the
ba1 adjusted BCA of Commerzbank, which excludes Moody's
assumptions of systemic support available to Commerzbank. An
improvement in the bank's standalone credit strength might lead
to an upgrade of these instruments, whereas deterioration could
prompt a downgrade.

In addition, if investors receive the same or similar treatment
as those in Commerzbank Capital Funding Trust II, the ratings
could be upgraded -- by up to two notches -- trigged by (1) any
decision by Commerzbank to restructure the coupon payment
features and/or ranking of the Tier 1 hybrid instruments
currently rated B1(hyb); or (2) any respective court ruling that
Commerzbank amends such instruments.

Principal Methodology

The principal methodology used in these ratings was Global Banks
published in May 2013.

COMMERZBANK CAPITAL: S&P Raises Debt Rating to 'BB+'
Standard & Poor's Ratings Services said that it had raised its
rating on debt issued by Commerzbank Capital Funding Trust II
(Commerzbank FT II) to 'BB+' from 'B+'.

The rating action follows the debt issue's conversion into senior
subordinated debt through changes in the documentation.  In S&P's
view, the instrument will now rank pari passu with other lower
Tier 2 capital instruments in a liquidation.  In addition, S&P
believes that coupon payments on this instrument are no longer
subject to a profit trigger.

The instrument no longer qualifies as regulatory Tier 1 capital,
but is expected to qualify as regulatory lower Tier 2 capital
with the revised terms, which, in S&P's view, are now similar to
those of other senior subordinated instruments issued by
Commerzbank AG (A-/Negative/A-2).

S&P considers this conversion to be unusual, but consistent with
the Chancery Court ruling of the State of Delaware on July 16,
2013.  Among other things, this ruling required Commerzbank to
elevate Commerzbank FT II's debt to the same lower Tier 2 capital
class as the debt of Dresdner Funding Trust IV.  Dresdner Funding
Trust IV's debt was converted into senior subordinated debt
instruments early in 2010.

DECO 17: Moody's Affirms Caa2 Rating on EUR104.6MM C Notes
Moody's Investors Service has taken rating actions on the
following classes of Notes issued by Deco 17 -- Pan Europe 7
Limited (amounts reflect initial outstandings):

    EUR750M A1 Notes, Affirmed Aaa (sf); previously on Dec 21,
    2007 Assigned Aaa (sf)

    EUR212M A2 Notes, Upgraded to Aa1 (sf); previously on Dec 7,
    2009 Downgraded to Aa3 (sf)

    EUR88M B Notes, Affirmed Baa2 (sf); previously on Dec 7, 2009
    Downgraded to Baa2 (sf)

    EUR104.6M C Notes, Affirmed Caa2 (sf); previously on May 25,
    2012 Downgraded to Caa2 (sf)

Moody's does not rate Class D, Class E, Class F, Class G, Class V
or Class X Notes issued by Deco 17 -- Pan Europe 7 Limited.

Ratings Rationale

The upgrade action on the Class A2 Notes reflects the large
increase in credit enhancement derived from the full redemption,
and subsequent sequential paydown of the three largest loans in
the pool; WGN MF, WBN MF and Nileg MF.

The remaining eight loans exhibit stark differences in the
expected losses Moody's has ascribed. LWB, the largest loan in
the pool with a current balance of EUR133.3 million representing
25.6% of the securitized balance is also the strongest. With a
low loan-to-value ratio (LTV) of 32.7%, a senior ICR of 3.4x and
being secured by a Multi-family portfolio, Moody's expects the
loan to redeem in full at its scheduled loan maturity date in
April 2014.

Gabriel and AFI are the two other loans which are also secured by
a granular income stream derived from either pure Multi-family
housing or a mixture of commercial and residential space. Both
loans have in the agency's analysis outperformed the remaining
five loans which are backed by retail assets.

The retail loans share similar characteristics of all being
occupied by typical German discount retailers on weighted average
(WA) remaining lease terms ranging from 5.75 years in the case of
Mansford Edeka to just 2 years for Faktor. Given that the values
of the properties are mostly driven by the in-place lease
agreements and the adverse lease expiry profile, recoveries could
be potentially higher if the servicer or special servicer was
able to implement certain asset management initiatives including
re-gearing some of the leases. All five of these loans have
Moody's LTVs of over 100% and four have been assigned expected
losses of between 30-50%. Elbblick, due to its extreme LTV has an
expected loss level in excess of 80%.

All loans are scheduled to mature this year, a full six years
ahead of legal final maturity in 2020, although it is likely that
the workout process for some loans will go beyond 2014 as three
loans are currently in special servicing; Mayne, Mansford Edeka
and Faktor. The long tail period is however advantageous with the
expiration of hedging typically coterminous with loan maturity,
it does allow for a de-leveraging strategy of amortising loans
through the sweeping of excess cash, as the in-place swap rate is
typically considerably higher than current floating interest
rates. This strategy does require in-place rental income to be
maintained, which is uncertain considering the lease rollover
profile for many of the loans.

Although Class B and C Notes also benefit from rising credit
enhancement, the ratings of these classes have been affirmed
because they are at increased risk from further deterioration of
some of the weaker loans that remain in the pool.

The current credit enhancement level on the Class B and Class C
is sufficient to maintain the Baa2 and Caa2 ratings despite the
high loss expectation for the outstanding pool. Following the
sequential allocation of principal proceeds from the full
repayment of three loans, the Class A1 credit enhancement
increased to 86% from 44% since Moody's last transaction review
in March 2013. The credit enhancement for Classes A2, B and C
currently stand at 51.9%, 35.9% and 16.8%, respectively.

Methodology Underlying the Rating Action:

The principal methodology used in this rating was Moody's
Approach to Rating EMEA CMBS Transactions published in December

Other factors used in this rating are described in European CMBS:
2013 Central Scenarios published in February 2013.

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

Main factors or circumstances that could lead to a downgrade of
the ratings include a decline in the property values backing the
underlying loans that is worse than Moody's expected. The highest
risk is with the retail properties. Another factor could be an
increase in refinancing risk especially for the Multi family
loans for which Moody's expects a redemption in full.

Main factors or circumstances that could lead to an upgrade of
the rating are lower expected losses, especially on all the
Multi-family loans, as well as significant lease extensions on
the retail loans which would go some way to lowering their
downside risk.


DECO 17-Pan Europe 7 Limited closed in December 2007 and
represents the securitization of initially 12 loans originated by
Deutsche Bank AG, London Branch. As of the October 2013 interest
payment date (IPD), the transaction's total pool balance was
EUR520.5 million, down by 58% since closing. This is due to the
repayment of four loans since closing. Eight loans remain in the
pool secured by a portfolio of over 1,000 properties mainly in
use as Multi-family (62.3% by underwritten market value), retail
(22.2%), mixed (15.3%) and office (0.2%).

As of the October 2013 IPD, three loans (22.7% of the current
pool) were in default.

To date no loans have been worked out with losses, however
EUR2.3m of non-accruing interest (NAI) amounts have been
allocated to the Classes E, F and G. The transaction waterfall
has switched to sequential on the April 2012 distribution date
and consequently all principal proceeds are first being allocated
to the Class A1 Notes.

Portfolio Loss Exposure: Moody's expects a significant amount of
losses on the securitized portfolio, stemming mainly from the
high leverage and subsequently high default probability of all
the loans except the LWB loan. Given the default risk profile and
the anticipated work-out strategy for potentially defaulting
loans, the expected losses are likely to crystallize only in the
medium term as the note legal final maturity date is only in

The updated assessment is a result of Moody's on-going
surveillance of commercial mortgage backed securities (CMBS)
transactions. Moody's prior assessment is summarized in a press
release dated December 20, 2012. The last Performance Overview
for this transaction was published on January 10, 2014.

HEAT MEZZANINE: Moody's Withdraws Ratings on 3 Note Classes
Moody's Investors Service has withdrawn the ratings of three
classes of notes issued by H.E.A.T Mezzanine S.A. (Compartment 2)

Issuer: H.E.A.T Mezzanine S.A. (Compartment 2)

    EUR218.4M A Notes, Withdrawn (sf); previously on May 15, 2013
    Downgraded to Caa3 (sf)

    EUR30.8M B Notes, Withdrawn (sf); previously on May 15, 2013
    Downgraded to C (sf)

    EUR10M Combo Notes, Withdrawn (sf); previously on May 15,
    2013 Downgraded to Ca (sf)

H.E.A.T Mezzanine S.A. (Compartment 2) is a static CDO of a
portfolio of German SME mezzanine loans with bullet maturities
that reached its scheduled redemption date on 13 April 2013.

Ratings Rationale

Moody's has withdrawn the rating because it believes it has
insufficient or otherwise inadequate information to support the
maintenance of the rating.

Moody's has been advised that, following the failure to redeem
Class A and Class B notes in full on scheduled maturity date, the
issuer has, with the consent of the note-holders, made certain
amendments to the trust deed in order to reduce the ongoing
expenses relating to the notes and to provide the issuer with
greater flexibility to restructure or sell the remaining
defaulted collateral in the transaction. As part of this
restructuring, the listing of the rated notes on the Irish stock
exchange had been terminated on June 12, 2013, and the issuer is
no longer producing periodic investor reports with detailed
information on the transaction liabilities and assets.

Consequent to this restructuring, Moody's does not have
sufficient information to monitor this transaction and maintain
its ratings, which are accordingly being withdrawn.

The principal methodology used in this rating was "Moody's
Approach to Rating EMEA SME Balance Sheet Securitisations"
published in May 2013.


ALLIED IRISH: Moody's Raises Gov't-Guaranteed Rating From Ba1/NP
Moody's Investors Service has upgraded to Baa3/P-3 from Ba1/NP
the government-guaranteed debt ratings of four Irish banks:
Allied Irish Banks, p.l.c. (AIB), Bank of Ireland (BoI), EBS Ltd
(EBS), and Permanent tsb p.l.c (PTSB). The outlook on these debt
ratings changed to positive from stable. The action follows
Moody's upgrade of Ireland's government bond rating to Baa3 from
Ba1 and the change in outlook on this rating from stable to

All other ratings of these banks including the deposit ratings,
senior and subordinated debt ratings are unaffected by this
rating action since the banks' standalone bank financial strength
ratings (BFSRs) remains unchanged.

The other Irish bank ratings are unaffected by the Jan. 21

Ratings Rationale

In line with the upgrade of the Irish government bond rating to
Baa3 and the change in outlook to positive from stable, Moody's
has upgraded to Baa3/P-3 the government-backed senior debt of

These four banks have all issued public debt under the Eligible
Liabilities Guarantee scheme, which ceased on March 28, 2013 for
new issuances. The assigned government-backed Baa3/P-3 ratings
are based on the unconditional and irrevocable guarantee from the
Irish government.

What Could Change the Rating UP/DOWN

Moody's aligns the government-guaranteed bond ratings and their
outlooks with the rating and outlook of the Irish government bond
rating, respectively.

The principal methodology used in these ratings was Global Banks
published in May 2013.

BLOXHAM: Liquidator Challenges ISE Membership Revocation
Mary Carolan at The Irish Times reports that the High Court has
heard the creditors of liquidated stockbroking firm Bloxham could
get 40% of what they are owed, rather than 10%, if the liquidator
wins his challenge to the Irish Stock Exchange's decision to
revoke its membership.

The firm's largest creditors include National Irish Bank, owed
EUR8.5 million, and the Revenue Commissioners, owed EUR2.3
million, The Irish Times discloses.

Liquidator Kieran Wallace claims the decision of the ISE to
revoke the membership cost Bloxham some EUR6 million, was not
made for proper purposes or for the benefit of the company as a
whole, and should be set aside as null and void, The Irish Times
relays.  His senior counsel Lyndon MacCann, as cited by The Irish
Times, said the revocation had to be seen against the background
of "project Chrysalis", under which the ISE was planning to
restructure so as to allow corporate members benefit from its
EUR45 million reserves.

According to The Irish Times, the counsel argued that the
decision to revoke Bloxham's membership in December 2012, when
project Chrysalis was under way, appeared to arise from a view
that, if Bloxham could be "got rid of", there would be "a bigger
cake" to be shared among a smaller number of firms.

The court heard that several major firms, including NCB
Stockbrokers, Goodbody and Davy, stood to benefit from the
restructuring, under which it was proposed to distribute some
EUR28 million in excess capital from the reserve capital, the
Irish Times relates.

Bloxham is one of Ireland's oldest stockbrokers.

DIRECTROUTE FINANCE: Moody's Raises Secured Loan Rating to Ba2
Moody's Investors Service has upgraded to Ba2 from Ba3 the rating
for the EUR143.5 million guaranteed secured loan due 2040, and
the EUR97.6 million guaranteed secured loan from the European
Investment Bank both raised by DirectRoute (Limerick) Finance
Limited. Concurrently, the rating outlook has been changed to
positive from stable.

The Issuer is a financing conduit that on-lent the proceeds of
the Loans to DirectRoute (Limerick) Limited ("ProjectCo"), a
special purpose company that in 2006 entered into a 35-year
concession agreement with the Irish National Roads Authority
(state body of Ireland responsible for the national road network)
to design, build, maintain and operate a 10 km user-pay tolled
dual carriageway road to the southwest of the city of Limerick in
the Republic of Ireland (the "Project").

Ratings Rationale

The rating action follows Moody's recent upgrade of Ireland's
government debt ratings to Baa3/P-3 from Ba1/NP.

The Ba2 rating on the senior debt facilities is constrained by
(1) actual traffic volume on the Project road being materially
below initial projections and the NRA's contractually guaranteed
levels, making the Project dependent on payments from the NRA;
(2) Ireland's Baa3 government bond rating and Moody's approach of
generally rating projects at least two notches below the
offtaker's credit quality; and (3) the Project's high leverage,
which reduces its ability to withstand unexpected stress.

However, the rating also reflects as positives (1) ProjectCo's
long-term concession agreement with the NRA; (2) timely payments
from the NRA under its minimum traffic guarantee; (3) ProjectCo's
track record of satisfactory operating performance; (4) the
protection afforded to senior creditors by the terms and
conditions of the concession agreement, particularly the
compensation provisions in the event of an NRA default; (5) the
Issuer's sizeable cash balance of EUR11.7 million at
December 31, 2013, on top of its mandatory reserves of EUR12.8
million; and (6) Moody's expectation that there is a likelihood
of high recovery for senior lenders in the event of any default
by the Issuer.

The two-notch differential between the credit quality of
ProjectCo's offtaker and the Ba2 rating on the Loans reflects the
risk of delay or interruption of payments from the National Roads
Authority ("NRA") and the limited ability of ProjectCo to
withstand such an event given its tight debt service coverage
ratios. Based on the latest financial model (June 2013),
ProjectCo's projected minimum and average DSCRs are 1.05x
(December 2034) and 1.46x, respectively, over the life of the

The Issuer's positive outlook reflects the positive outlook on
Ireland's ratings.

Scheduled payments of principal and interest under the Loans are
unconditionally and irrevocably guaranteed by MBIA UK Insurance
Limited ("MBIA", B1 positive) pursuant to a financial guarantee
insurance policy. The rating on the Loans is determined as the
higher of (1) MBIA's insurance financial strength rating; and (2)
the Ba2 standalone credit quality of the Loans, absent the
benefit of the guarantee. Accordingly, the rating on the Loans is

What Could Change The Ratings UP/DOWN

Moody's could upgrade the ratings as a result of (1) an upgrade
of Ireland's ratings; or (2) growth in traffic volumes on the
Project road such that ProjectCo is no longer dependent on the
NRA's payments under the minimum traffic guarantee.

Conversely, Moody's could downgrade the ratings as a result of
(1) a downgrade of Ireland's ratings; (2) a delay in ProjectCo
receiving payments from the NRA under the minimum traffic
guarantee; (3) O&M and lifecycle cost assumptions proving
inadequate; (4) poor service delivery, increasing the possibility
of a ProjectCo default under the CA; or (5) a deterioration in
the relationships between the Project parties.

Principal Methodology

The principal methodology used in this rating was Operating Risk
in Privately-Financed Public Infrastructure (PFI/PPP/P3) Projects
published in December 2007.

DirectRoute (Limerick) Limited is ultimately owned by Strabag AG
(20%), PPP Roadholdings Ltd (10%), Lagan Projects Investments
Limited (10%), Spandor Limited (10%), Allied Irish Banks Holdings
and Investments PLC (25%) and Meridiam Infrastructure Finance
S.a.r.l (25%).


SNORAS BANK: Antonov & Baranauskas Can Be Extradited in Lithuania
Andrius Sytas and Julia Fioretti at Reuters report that the
Westminster Magistrates' Court ruled on Monday Vladimir Antonov,
a former owner of Portsmouth Football Club, and his Lithuanian
business partner Raimondas Baranauskas, can be extradited from
Britain to Lithuania in connection with the collapse of Snoras,
the Baltic country's fifth largest bank.

Lithuania seized the bank, Snoras, in November 2011 after the
central bank said it found a LTL1 billion (US$393 million) hole
in its assets, which it later increased to around LTL4 billion,
Reuters relates.

According to Reuters, the Lithuanian General Prosecutor office
has said Messrs. Antonov and Baranauskas are wanted on suspicion
of charges including asset embezzlement valued at a combined 1.7
billion litas and document fraud.  They have both denied
wrongdoing and are expected to appeal against the ruling handed
down by the court, Reuters says.

Mr. Antonov bought the English club in June 2011, but had to step
down as its chairman after the club's parent company went into
administration following the closure of Snoras, which he owned
more than 60% of, Reuters recounts.

Mr. Baranauskas, who had a 25% stake of Snoras, left Lithuania
for London after the bank's closure, while Mr. Antonov had been
living there even before it was shut, Reuters relays.

The closure also led to the winding up of its subsidiary in
neighboring Latvia, Krajbanka, Reuters notes.

                        About Bankas Snoras

Bankas Snoras AB is Lithuania's fifth biggest lender.  Snoras
held LTL6.05 billion in deposits and had assets of LTL8.14
billion at the end of September.  It competes with Scandinavian
lenders including SEB AB, Swedbank AB (SWEDA), and Nordea AB.  It
also controls investment bank Finasta and Latvian lender Latvijas
Krajbanka AS.

As reported in the Troubled Company Reporter-Europe on Dec. 2,
2011, The Baltic Times, citing LETA/ELTA, said Vilnius District
Court accepted the application regarding the initiation of
bankruptcy proceedings against Snoras bank.  The Bank of
Lithuania delivered application on Snoras bankruptcy on Nov. 28,

The TCR-Europe, citing Bloomberg News, reported on Nov. 28, 2011,
that Lithuania's central bank said that Snoras' financial
situation is "worse than previously identified" and saving the
bank "would cost significantly more and would take longer than
the available liquidity" at Snoras.  Governor Vitas Vasiliauskas
said at a news conference on Nov. 24 that some LTL3.4 billion
(US$1.3 billion) in assets are missing, according to Bloomberg.


PLAY HOLDINGS: Moody's Assigns 'B1' CFR; Outlook Stable
Moody's Investors Service has assigned a first-time B1 corporate
family rating (CFR) and a Ba3-PD probability of default rating
(PDR) to Play Holdings 2 S.a r.l., the ultimate parent of P4 Sp.
Z o.o. (PLAY), Poland's fourth-largest mobile network operator.
Concurrently, Moody's has assigned a provisional (P)B1 rating and
loss given default (LGD) assessment of LGD4 (59%) to the proposed
equivalent EUR630 million worth of senior secured notes due in
2019 to be issued by Play Finance 2 S.A. and a provisional
(P)B2/LGD 6 (95%) to the proposed EUR240 million worth of senior
unsecured notes due in 2019 to be issued by Play Finance 1 S.A.
The outlook for all ratings is stable. This is the first time
that Moody's has assigned ratings to PLAY.

The rating assignment follows the company's dividend
recapitalization, as a result of which PLAY will distribute
PLN1.3 billion (EUR309 million) to its shareholders and will
refinance PLN2.5 billion (EUR597 million) of existing bank debt
through the issuance of PLN3.7 billion (EUR870 million) worth of
senior secured and senior unsecured notes. Around PLN561 million
(EUR133 million) of proceeds from the senior unsecured notes
issuance will be placed into an escrow account, and will be
released to the shareholders or the company subject to certain

"The assigned B1 rating balances our assessment of, among other
things, PLAY's small size, its concentration in Poland, the
weakness of its mobile-only model and its foreign currency risk
against more positive factors, such as its track record of
revenue and market share growth and the expected fast
deleveraging profile due to its growing free cash flow
generation," says Ivan Palacios, a Moody's Vice President -
Senior Credit Officer and lead analyst for PLAY.

Moody's issues provisional ratings in advance of the final sale
of securities and these ratings reflect the rating agency's
preliminary credit opinion regarding the transaction only. Upon a
conclusive review of the final documentation, Moody's will
endeavor to assign a definitive rating to the company's proposed
senior secured and senior unsecured notes. The definitive rating
may differ from the provisional rating.



The assigned B1 rating negatively reflects (1) PLAY's small size,
its fourth-place position in the Polish mobile market and its
concentration in Poland; (2) its mobile-only business model,
which Moody's believes is weaker than an integrated business
model; (3) its foreign exchange risk, given that the majority of
its debt and part of its costs and capex are denominated in
foreign currency while revenues are primarily denominated in
local currency; (4) the uncertainty regarding the outcome of the
800MHz/2600MHz spectrum auction; and (5) the flexibility embedded
in the structure, which allows the shareholders to relever the
company up to 3.75x net reported debt/EBITDA in order to
distribute additional dividends.

At the same time, the rating positively reflects (1) PLAY's track
record of growth in market share and revenues since commercial
launch in 2007; (2) the better growth prospects for the Polish
market when compared with other European markets; (3) the
expected stabilization of the competitive and regulatory
environments in Poland; (4) the expected fast deleveraging
profile, as the company benefits from operating leverage and
stable capex; (5) its growing free cash flow generation; and (6)
its adequate liquidity profile.

With reported revenues of PLN3.7 billion (EUR889 million) and
EBITDA of PLN689 million (EUR163 million) for the last 12 months
ended September 2013, PLAY is one of the smaller mobile telecom
operators in Moody's rated universe in Europe. As such, the
company's scale and its lack of geographical diversification are
likely to remain constraining factors on the ratings. An
offsetting consideration is the fact that Poland enjoys better
dynamics than other European markets in terms of GDP growth and
mobile broadband growth.

PLAY's mobile-only business model makes it more vulnerable to the
potential success of convergent offerings provided by integrated
operators, although the benefits of an integrated business model
may be less clear in Poland than in other countries due to the
underinvestment in fixed-line infrastructure, the low level of
broadband penetration and the low pricing environment.

The Polish mobile market has been very competitive over the past
few years, primarily driven by PLAY's aggressive market share
growth strategy. Since commercial launch in 2007, PLAY has taken
market share from the three competitors, T-Mobile (Deutsche
Telekom AG), Orange (Telekomunikacja Polska S.A.) and Plus
(Eileme 1 AB (publ)), to reach a market share of 18.4% of total
mobile subscribers as of September 2013. Now that PLAY has
achieved critical mass, and with its increased focus on customer
retention, Moody's expects the competitive environment to
stabilize. Moody's also expects the regulatory environment to be
less challenging going forward, as mobile termination rates are
now at the low end of the EU's recommended target.

PLAY's network coverage is weaker than peers, as is its spectrum
ownership in the <1GHz band. However, PLAY has signed national
roaming/network sharing agreements with all three operators in
Poland to enhance its network coverage and optimize capex while
benefitting from a relatively fixed opex base. The company could
enhance its spectrum portfolio in the upcoming 800MHz/2600Mhz
spectrum auction, but the outcome is uncertain.

Initial leverage at transaction closing will be high, given that
debt/EBITDA (as adjusted by Moody's) will be around 4.8x.
However, Moody's expects that PLAY will delever to around 4.0x by
end-2014. The company should enjoy a fast deleveraging profile,
as a result of improved cash flow generation through the combined
benefits of operating leverage and stable capex. However, the
company retains the flexibility to relever the balance sheet up
to 3.75x net debt/EBITDA (as reported by the company) to pay
additional shareholder distributions.

PLAY's liquidity profile post transaction will be adequate,
supported primarily by the availability under the PLN400 million
(EUR95 million) four-year super senior revolving credit facility
(SSRCF) with no financial maintenance covenants. Its debt
maturity profile will be good, with no mandatory debt repayments
until the maturity of the SSRCF in 2018.

Given that the SSRCF is covenant-lite, Moody's has used an "all-
bond" capital structure assumption for the group's family
recovery rate (35% instead of the standard 50%). Under an "all-
bond" structure, recoveries for noteholders in the event of a
default are typically lower than in a "bank-bond" structure due
to the absence of maintenance financial covenants. As a result,
PLAY's PDR is one notch higher than the CFR, at Ba3-PD.


The rating on the EUR630 million senior secured notes is (P)B1,
in line with the CFR, given that it is the largest piece of debt
in the capital structure. The EUR240 million senior unsecured
notes are rated (P)B2, one notch lower than the rating on the
senior secured notes. The one-notch difference reflects the high
initial leverage and the substantial amount of secured bond debt
that effectively ranks senior to the senior unsecured notes. This
debt potentially limits the amount of residual collateral value
available to the senior unsecured noteholders in a recovery

Rationale for the Stable Outlook

The stable outlook reflects the initially weak positioning of
PLAY's credit metrics for the rating category, but also factors
in Moody's expectation that the company will deleverage quickly
and maintain an adjusted debt/EBITDA ratio (as adjusted by
Moody's) between 4.2x and 3.5x, while it will continue to
generate positive free cash flows.

What Could Change The Rating UP/DOWN

Upward pressure on the rating could develop if the company
delivers on its business plan, such that its adjusted debt/EBITDA
ratio drops below 3.5x on a sustained basis. However, upward
pressure on the rating may be limited due to the flexibility
embedded in the bond indenture, as a result of which the
shareholders may relever the balance sheet to distribute
additional dividends as long as net debt/EBITDA (as reported by
the company) is below 3.75x.

Downward pressure could be exerted on the rating if PLAY's
operating performance weakens or the company increases debt as a
result of acquisitions or shareholder distributions such that its
adjusted debt/EBITDA remains above 4.2x. A weakening in the
company's liquidity profile could also exert downward pressure on
the rating.

Principal Methodology

The principal methodology used in these ratings was the Global
Telecommunications Industry published in December 2010. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.

Play Holdings 2 S.a r.l. is the ultimate parent of P4 Sp. Z o.o.,
Poland's fourth mobile network operator in terms of subscribers.
The company operates under the commercial name "PLAY" and offers
voice, non-voice and mobile broadband products and services to
residential and business customers.

As of September 2013, PLAY had approximately 10.3 million
reported subscribers (of which 44% were contract subscribers) and
a mobile market share of 18.4%. In the last 12 months ended
September 2013, PLAY reported revenues of PLN3.7 billion
(c.EUR889 million) and EBITDA of PLN689 million (EUR163 million).
PLAY's shareholders are Olympia Development (through Tollerton
Investments Limited) with a 50.3% stake, and Novator with a 49.7%


Standard & Poor's Ratings Services affirmed its 'B' long-term
issuer credit rating on Portugal-based Participacoes Publicas
(SGPS) S.A.  At the same time, S&P removed the rating from
CreditWatch, where it was placed with developing implications on
Sept. 19, 2013.  The outlook is negative.

The affirmation and removal from CreditWatch developing follows
S&P's affirmation of the sovereign credit ratings on Portugal on
Jan. 17, 2014.

PARPUBLICA is a 100% sovereign-owned holding company, with
investments in operating subsidiaries and a portfolio of real
estate assets.  It has executed several successful
privatizations, and the majority of its privatization receipts
are usually used to allow the state to reduce its debt burden.
The rating on PARPUBLICA is based on the company's stand-alone
credit profile (SACP), which S&P assess at 'ccc', and our opinion
that there is a "very high" likelihood that the Portuguese
government would provide timely and sufficient extraordinary
support to PARPUBLICA in the event of financial distress.

Under S&P's criteria for government-related entities (GREs), its
view of a "very high" likelihood of extraordinary government
support is based on its assessment of PARPUBLICA's:

   -- "Very important" role, as Portugal's entity for holding,
      managing, and privatizing key participations on behalf of
      the government.

   -- "Very strong" link with the Portuguese state as its 100%
      owner, and S&P's view of the close operational link between
      the two in the absence of an explicit and timely guarantee
      for PARPUBLICA's debt.

The government influences PARPUBLICA's strategic and operational
activities by approving its budgets and financial plans;
appointing its main managerial bodies; and deciding which assets
should be transferred to PARPUBLICA or privatized.  While the
government does not provide an explicit and timely guarantee for
PARPUBLICA's debt, it is subject to article 501 of the Portuguese
Companies Code, which indicates that a parent is legally
responsible for the liabilities of its fully-owned subsidiaries.
S&P understands that the statute may provide a means for
creditors of the subsidiary to make claims against the parent
from 30 days after the subsidiary defaults, which likely supports
recovery prospects.

S&P believes the scope of PARPUBLICA's role could diminish, as
the number of remaining state assets to privatize declines over
time. S&P notes, however, the current government's stated
commitment to PARPUBLICA's obligations, and the possibility that
PARPUBLICA could be included in the general government accounts.
However, S&P understands that PARPUBLICA's refinancing needs were
not included in the 2014 government budget.

In 2014, EUR650 million of PARPUBLICA's long-term debt is
maturing.  S&P understands that the Portuguese government expects
PARPUBLICA to refinance this debt with own funds or commercial
sources.  In contrast, the financing needs of public entities
that are already included in the general government, including
Metropolitano de Lisboa E.P., are covered by budgeted funds.

If PARPUBLICA were included in the general government account, it
could potentially benefit from a budget allowance and centralized
state financing.  This, in turn, could lead S&P to review its
assessment of the likelihood of extraordinary government support.

The SACP is constrained by S&P's view of PARPUBLICA's weak
portfolio characteristics, including geographic concentration of
assets in Portugal, as well as limited financial flexibility and
a weak liquidity position.  The company remains highly leveraged
with a loan-to-value (LTV) ratio of above 55% at year-end 2012.
It had about EUR4.9 billion of debt at the holding level at the
end of 2012, down about 3% from a year earlier.  It signed a 30-
year bank loan of approximately EUR600 million in the first
quarter of 2013.  This amount was initially allocated to a high-
speed rail project, which was cancelled.  S&P estimates total
debt at June 30, 2013, to be around EUR4.9 billion. In July 2013
the company repaid EUR800 million in euro medium-term notes

PARPUBLICA's portfolio of equity stakes in Portuguese companies
remains adequately diversified in terms of sectors despite the
privatizations and divestment of significant shareholdings in
recent years.  The group is present in sectors such as air
transportation, postal services, water and waste, real estate
management and development, and to a lesser extent in
agriculture, forestry, services, production of currency, and

However, overall portfolio diversification is weak, in S&P's
view, given that government receivables constitute a large share
of the global portfolio.  PARPUBLICA had approximately EUR4
billion in government receivables at year-end 2012, and we
estimate that the company held about EUR3 billion in receivables
as a claim on the government after the transfers of assets to
PARPUBLICA in January 2013.  S&P expects this figure to decrease
further as the state continues to transfer additional state
assets to PARPUBLICA to offset some of these receivables.  The
company's SACP is also constrained by the weak portfolio quality,
which stems from the poor financial performance of a majority of
its subsidiaries (including TAP).

"We assess the company's management and governance as "weak," as
our criteria define the term, partly owing to the lack of
independence from the state, as PARPUBLICA's funding decisions
and general strategy depend largely on the Portuguese
government," S&P said.

S&P views PARPUBLICA's liquidity on a stand-alone basis as
"weak," under its criteria.  S&P acknowledges that the liquidity
position has somewhat improved with the repayment of the EUR1
billion exchangeable bonds in December 2012 and the EUR800
million EMTNs repaid in July 2013.  However, committed liquidity
sources remain insufficient to cover the funding needs in the
next 12 months.

In order to address the mismatch between estimated available
liquid sources and uses, S&P anticipates that PARPUBLICA will
contract additional debt with Portuguese banks or draw on its
commercial paper line with Caixa Geral de Depositos S.A. (CGD).
S&P also believes the state could transfer additional assets to
offset PARPUBLICA's claims on the state. PARPUBLICA could also
use some of its assets as collateral to secure funding from

As a last resort, S&P expects direct, extraordinary support would
come from the Portuguese state treasury.

Principal Liquidity Sources

   -- Cash position of about EUR200 million at year-end 2012.

   -- Proceeds from the sale of EDP - Energias de Portugal shares
      of about EUR356 million.

   -- 10% of the proceeds from the sale of ANA Aeroportos de
      Portugal of about EUR1.1 billion in 2013, 90% of which has
      been upstreamed to the government.

   -- Around EUR125 million in dividends received from

   -- 10% of the EUR467 million privatization receipt from the
      sale of CTT Correios de Portugal shares, 90% of which has
      been upstreamed to the government.

Principal Liquidity Uses

   -- EUR800 million bonds repaid in July 2013 and EUR650 million
      bonds maturing in 2014.

   -- Around EUR130 million of commercial paper currently drawn
      under a total program of around EUR1 billion with CGD,
      expected to be rolled over.

   -- Around EUR125 million in commercial paper currently fully
      drawn under the program with Banco Santander Totta,
      expected to be rolled over.

The negative outlook reflects the outlook on the Republic of
Portugal.  S&P could lower the rating on PARPUBLICA if it lowered
the rating on the sovereign or if it believed extraordinary
government support for PARPUBLICA had weakened from S&P's current
assessment of "very high."  S&P could also lower the ratings if
it believed the refinancing of maturing debt in the next 12
months had become more uncertain.

The rating on PARPUBLICA could stabilize at the current level if
the sovereign ratings are revised to stable and there is more
certainty regarding its refinancing sources.

* PORTUGAL: Moody's Says Q4 2013 RMBS Performance Stable
The performance of Moody's-rated Portuguese residential mortgage-
backed securities (RMBS) deals continued to stabilize in the
four-month period to November 2013, according to the latest
indices published by Moody's Investors Service.

In November 2013, 60+ and 90+ days delinquencies decreased to
1.38% and 1.08%, respectively, from 1.56% and 1.19% in July.
Outstanding defaults (360+ days overdue, up to write-off)
increased to 2.59% over the current balance in November 2013,
from 2.41% in July 2013. This increase was partially due to the
decrease of the portfolio current balance in the period. The
prepayment rate remained stable during the four months up to
November at 1.35%, increasing slightly from 1.30% 12 months

Most Portuguese RMBS transactions benefit from a provisioning
mechanism, whereby excess spread is captured to provide for
future losses on highly delinquent loans, before losses are
actually realised. When excess spread is insufficient for
provisioning the reserve fund is drawn. At the end of November
2013, the reserve funds in eight transactions were below target
levels and two transactions have fully drawn their reserve funds.

Moody's expects that Portuguese GDP will slightly increase by
0.7% year-on-year in 2014 after declining 2.0% in 2013. Household
borrowers' disposable income will fall as unemployment rises.
Moody's expects that the unemployment rate will end in 2014 at
16.6% down from 16.9% in 2013.

Overall, Moody's has rated 32 Portuguese RMBS transactions since
2001, of which 26 are outstanding, with a total outstanding pool
balance of EUR16.47 billion as of November 2013 compared to
EUR18.91 billion as of November 2012.


CODERE SA: May Seek Creditor Protection if Bondholder Talks Fails
Katie Linsell at Bloomberg News reports that Codere SA said it
will file for creditor protection if it fails to reach an
agreement with bondholders who have submitted five proposals for
the company's restructuring.

Codere has about two weeks to complete a deal with 50% of
bondholders before it must repay a EUR127.1 million (US$172
million) loan to funds including GSO Capital Partners LP and
Canyon Capital Partners LLC, Bloomberg discloses.

According to Bloomberg, Codere said in a filing late on Tuesday
that in a response to creditors, the company submitted four
counter proposals.

Codere's founding Martinez Sampedro family is fighting to retain
as much control as possible of the company that's reported losses
for seven straight quarters, Bloomberg says.

The company sought preliminary creditor protection on Jan. 2,
giving the company as much as four months to reach an agreement
to restructure EUR1.1 billion of debt, Bloomberg recounts.

Codere's earnings have been hurt by higher taxes, stricter
gambling regulations, casino closures and smoking bans in Latin
America, Bloomberg notes.

Codere SA is a Madrid-based gaming company.  It operates betting
shops and race tracks from Italy to Argentina.

U N I T E D   K I N G D O M

AIRCONMECH UK: In Administration; Owes GBP1.4 Million
Margaret Canning at Belfast Telegraph reports that AirconMech UK
went bust owing GBP1.4 million following the administration of a
key customer.

According to Belfast Telegraph, staff at AirconMech UK, which had
an address at BDO in Belfast, were made redundant after it went
into administration on October 30 last year.

According to Belfast Telegraph, a statement of affairs filed this
month by administrators Keenan CF said: "The construction sector
has come under significant pressure with the general economic
downturn during the recent years.  As a result the company faced
pressure on margins, and incurred significant bad debt when a
customer entered administration on October 11, 2013.  This caused
severe liquidity pressure for the company."

The administrators said there was no indication of the prospects
or value of any possible dividend, Belfast Telegraph notes.

AirconMech UK is a Belfast-based ventilation systems firm.

AVE BIKES: Files For Insolvency
Mark Sutton at, citing Bike Europe, reports that
Electric bike label AVE has reportedly applied for insolvency.

"Poor market conditions" during the past year have been blamed
for the firm's fortunes, though there is a rumour that the brand
will be taken on by Pantherwerke AG, relates.  Late
deliveries also contributed to the brand's troubles, the report
says. notes that the e-bike brand has become known for
build quality in the past few years, with the majority of its
catalogue based around the renowned Bosch mid-motor system.

AVE bikes are carried by EBC in the UK.

CO-OPERATIVE BANK: Parent Cancels Sale of General Insurance Unit
James Quinn at The Telegraph reports that the Co-operative Group
has opted to hold on to its general insurance business, ten
months after putting it up for sale.

According to The Telegraph, the decision was made as the mutual
no longer needs the money the sale could have brought in,
following a revision of the plans to fill the Co-op Bank's
GBP1.5 billion black hole.

Co-op management, led by chief executive Euan Sutherland, felt
that the bids undervalued the business given its growth potential
and value to the group overall, The Telegraph says.  Analyst
estimates as to its worth varied between GBP250 million and
GBP600 million, The Telegraph discloses.

The mutual originally decided to part with the business in March
2013 as part of plans to bolster the Co-op Bank's capital
position, The Telegraph recounts.

Proceeds from the sale of the general insurance arm -- and the
life insurance arm, which was sold to Royal London for GBP219
million last July -- were intended to be used to safeguard the
future of the bank, The Telegraph relays.  Following the
discovery of a GBP1.5 billion capital shortfall at the bank last
summer, the requirement for the proceeds intensified yet further,
The Telegraph notes.

Under the Co-op Group's original recapitalization plans for the
bank, the group was due to fund GBP1 billion, with GBP500 million
coming from bondholders, The Telegraph discloses.

However, following a redrafting of those plans in November,
distressed debt funds which held a significant portion of the
Co-op Bank's debt opted to inject a greater amount, meaning the
Co-op Group's funding requirement reduced from GBP1 billion to
GBP462 million, The Telegraph states.

In a statement, the Group, as cited by The Telegraph, said that
the decision to hold on to general insurance was part of
Mr. Sutherland's wider strategic wider review, the details of
which are expected as early as its annual results in March.

                   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

EDWARDS GROUP: S&P Raises Long-Term Corp. Credit Rating From 'B+'
Standard & Poor's Ratings Services said that it has raised its
long-term corporate credit rating on U.K.-based Edwards Group
Ltd., a worldwide supplier of vacuum technology, to 'BBB+' from
'B+' and removed it from CreditWatch, where it was placed with
positive implications on Aug. 19, 2013.

Subsequently, S&P is withdrawing the corporate credit rating on
Edwards at the issuer's request.  At the time of the rating
withdrawal, the outlook was stable.

At the same time, S&P is withdrawing its 'B+' issue rating on the
group's US$560 million senior secured term loan and its 'BB'
rating on the US$90 million super senior revolving credit
facility (RCF) issued by subsidiary Edwards (Cayman Islands II)
Ltd., because the loans have been redeemed in full.

The upgrade, ahead of the ratings withdrawal at the company's
request, primarily reflected the significant improvement of
Edwards' financial risk profile following the takeover by Sweden-
based Atlas Copco AB (A/Stable/A-1) and S&P's assessment of
Edwards as a strategically important subsidiary of Atlas Copco.

* UK: Scottish Company Liquidations Up 23% in 4th Qtr. 2013
BBC News reports that the number of Scottish companies failing
rose by more than 23% in the final three months of last year --
with a steep rise in compulsory liquidations.

The figures from the Accountant in Bankruptcy also showed a sharp
increase in the number of companies choosing voluntary
liquidation, BBC notes.


* AlixPartners Promotes 11 to Managing Director, 35 to Director
AlixPartners, the global business advisory firm, on Jan. 20
announced the promotions of 11 professionals to managing director
and 35 professionals to director.  The appointments were
Jan. 1.

"AlixPartners is promoting substantially more professionals to
these senior roles than we did at this time a year ago, which is
a testament to our commitment to our people's careers, to the
continued growth of our firm and, last but certainly not least,
to the exceptional talent and hard work of these outstanding
individuals," said Fred Crawford, chief executive officer of
AlixPartners.  "AlixPartners stands apart in the industry for
itsresults-oriented practitioners, and all of these professionals
have distinguished themselves for the results they have brought,
and will continue to bring, to clients around the world."

All promotions are listed below, by office location, starting
with the 11 promoted to managing director:


Bill Ebanks, promoted to managing director in AlixPartners'
Enterprise Improvement group, began his career as an oil-and-gas
operations engineer at Tenneco Inc.'s Tenneco Oil Exploration and
Production unit and went on to hold positions at Hewlett-Packard
Co. before leading strategy, operations and organizational-design
engagements as a senior engagement manager at McKinsey & Company.
Since joining AlixPartners in 2007, Mr. Ebanks has earned a
reputation for his broad consulting skills, sharp business
insights and strong leadership, as well as being recognized for
his deep expertise in oil and gas as a core member of
AlixPartners' Energy Practice -- which has seen strong growth in
recent years.  He has a track record of delivering highly
successful service to clients, which include many big names in
the energy space, and also of undertaking research of great
interest and use to clients.

Mr. Ebanks holds a MBA from Rice University in Houston and a
bachelor's degree in petroleum engineering from the University of
Texas in Austin.


Mark Wakefield, promoted to managing director in AlixPartners'
Enterprise Improvement group, has earned a reputation as an
automotive industry expert and trusted advisor in that space in
product planning, supply chain, manufacturing, marketing, auto
finance and the aftermarket.  Now also leader of the firm's
Automotive Practice in North America, he joined AlixPartners in
2006 and has consulted for many of the largest automakers and
auto suppliers in the world.  Prior, his career included
consulting at McKinsey & Company, engineering and program-
management positions at Magna International Inc. and business
development at HSBC Finance Corp.  Known for his creative
thinking and intellectual rigor, Mr. Wakefield in 2012 was a
recipient of an AlixPartners "Achievements in Excellence Award."

Mr. Wakefield has a MBA from the Wharton School at the University
of Pennsylvaniaand a bachelor's degree in mechanical engineering
from Queen's University in Kingston, Ontario.

Los Angeles

William Choi, promoted to managing director in AlixPartners'
Financial Advisory Services group, specializes in the application
of economic theory and quantitative methods.  He has served as
the principal consultant on complex financial and statistical
matters on behalf of large governmental agencies and Fortune 500
companies.  He also is an experienced and skillful expert
witness, having testified on numerous occasions related to
intellectual-property damages, finance, market structures and
statistical methods.  He joined AlixPartners in 2005, from Econ
One Research Inc.  During his distinguished career, he has been
published in economics and law journals; has presented at many
outside organizations, including the American Bar Association and
the Licensing Executives Society; and taught economics courses at
Duke University.

Mr. Choi holds a Ph.D. in economics from Duke University, a
master's degree in economics from Duke, a master's in business
economics from the University of California at Santa Barbara and
a bachelor's degree in economics from the University of
California at Riverside.


Andrea Alghisi, promoted to managing director in AlixPartners'
Enterprise Improvement group, is recognized for his exceptional
client service in the everything from turnaround to performance
improvement to growth, particularly involving large and complex
engagements where his clients have included some of Europe's
biggest names.  He has more than 20 years of experience in
leading programs in the automotive, industrial-goods, retail and
consumer-products industries.   Prior to joining AlixPartners in
2003, his career included serving for three years as interim CEO
of a large Italian pet-food retailer, leading a turnaround.
Before that, he worked at Boston Consulting Group after beginning
his career as a mechanical engineer with Fiat Group SpA.  Since
joining AlixPartners, he has been a key contributor to the growth
of the firm's practices in Europe and globally.  In recognition
of his important contributions to the infrastructure growth of
the firm over his tenure, in 2012 he received an AlixPartners
"Founders Award."

Mr. Alghisi has a MBA from SDA Bocconi School of Management at
Bocconi University in Milan and a bachelor's degree in mechanical
engineering from the Polytechnic University of Turin (Politecnico
Di Torino) in Turin.  He is currently a visiting professor of
strategic entrepreneurship and member of a development committee
at the business school ESCP Europe.

Giacomo Mori, promoted to managing director in AlixPartners'
Enterprise Improvement group,has an impressive track record of
leading complex international assignments requiringdeep
functional expertise, particularly in automotive, aerospace and
industrial goods.  He is also a procurement expert, and last year
was appointed co-leader of AlixPartners' Procurement Practice in
Europe.  His client work includes consulting to global
automakers, global equipment companies and many others.  He
joined the firm after more than 10 years of consultancy and
industry expertise in the automotive, aerospace and industrial-
goods sectors.  Prior to joining AlixPartners, in 2003, he led
several European and North American engagements as a senior
manager and automotive project leader at A.T. Kearney.  Before
that, he held positions at Fiat Auto SpAin multiple departments,
including manufacturing, quality, product development and
strategic marketing.

Mr. Mori has a bachelor's degree in mechanical and naval
engineering from the University of Genoain Liguria, Italy, and
completed the executive program on business economics at the
ISVOR Fiat School of Management in Milan.


Michael Dorn, promoted to managing director in AlixPartners'
Turnaround & Restructuring Services group, is a deeply
experienced turnaround and restructuring expert, known for his
success in complex interim-management roles and in operational
turnaround as well.  He is adept at working through difficult
business issues and dealing with complicated stakeholder
concerns, and his expertise also includes issues surrounding
union negotiations and headcount reductions under complex German
and European labor laws.  Dorn joined AlixPartners in 2012.
Prior to that, he served as both chief restructuring officer and
chief operating officer at both PrimaCom AG and Tele Columbus
GmbH, successfully managing the financial and operational
restructuring of those companies.  Other previous employers
include Axel Springer AG and Roland Berger Strategy Consultants.

Mr. Dorn holds a MBA (diplom-kaufmann) from the Leipzig School of
Management in Leipzig, Germany, and has also studied at the
WHU-Otto Beisheim School of Management in Koblenz, Germany, and
at the University of Victoria in Victoria, Canada.

Jens Haas, promoted to managing director in AlixPartners'
Turnaround & Restructuring Services group, has extensive
expertise in managing complex, multi-dimensional and cross-
functional projects, be they restructuring, performance-
improvement or large-scale transformation programs.  He is a
recognized expert in automotive and is co-leader of AlixPartners'
Automotive Practice in Germany.  His clients include some of the
biggest auto companies in the world, as well as leading companies
in various other industries.  Prior to joining AlixPartners in
2005, he worked at McKinsey & Company and, before that, at Roland
Berger Strategy Consultants.  At both firms, he was responsible
for projects in the automotive and turnaround-and-restructuring
practices.  In 2011, he was a recipient of an AlixPartners
"Achievements in Excellence Award," in recognition of his
outstanding performance and initiative.

Haas holds a MBA (diplom-kaufmann) from the University of
Tubingenin Tubingen, Germany, and has also studied at San
Francisco State University.

New York

Vineet Sehgal, promoted to managing director in AlixPartners'
Information Management Services group, is a data-analytics expert
skilled at helping clients leverage analytics and electronic
discovery in financial investigations, and in forensic and
litigation situations.

He has deep experience in systems analysis and reporting,
financial-data modeling and analysis, database planning and
design, and overall project management.  He also has extensive
experience in managing high-profile corporate litigation and
investigation projects.  His client assignments have been among
the most critical, including key roles in AlixPartners' support
of the U.S. Trustee in the liquidation of Bernard L. Madoff
Investment Securities LLC, including the distribution of billions
of dollars to claimants.  Mr. Sehgal has more than 15 years of
experience in data analytics, and prior to joining AlixPartners
in 2007, held positions of increasing responsibility at the
consultancy Deloitte.  He was a recipient of an AlixPartners
"Achievements in Excellence Award" in 2013, which cited his
strong leadership and relationship-building skills.

Mr. Sehgal holds a master's degree in information systems and a
bachelor's degree in finance, both from Pace University in metro
New York.


Nicolas Beaugrand, promoted to managing director in AlixPartners'
Enterprise Improvement group, offers to his clients a broad set
of skills that include functional expertise in operations,
engineering, aerospace program management and other areas.  He
has consistently delivered superior client service in such
industries as automotive, aerospace and defense, and
transportation, and the clients for which he's worked include
many top names in those industries and others, including
Mecachrome SAS, which was named "Turnaround of the Year 2012" by
the French turnaround association ARE (Association pour le
Retournement des  Entreprises).
Mr. Beaugrand joined AlixPartners in 2007 from A.T. Kearney.

Mr. Beaugrand is a graduate from the French Ecole Polytechnique,
and has a master's degree in engineering from the Ecole des Mines
de Paris (Mines Paris Tech) in Paris, and he also completed a
post-graduate business administration program through the
University of Michigan.

Amir Hosseini, promoted to managing director in AlixPartners'
Information Management Services group, boasts 25 years of IT
experience in both the consulting and corporate worlds, and is
well known for both his technical abilities and outstanding
delivery of services to clients -- which include companies in
many industries.  He is also now in charge of the IT practice for
AlixPartners' Paris office.  Since joining AlixPartners in 2006,
he has, among other successful assignments, served as interim CIO
for clients in crisis situations.  Before AlixPartners, he was a
board member and managing director at IDS Scheer-Western Europe,
and held positions of responsibility at Ernst & Young in Atlanta,
Mars Inc.'s Masterfoods Europe division and KPMG Peat Marwick in
Paris and London.

Mr. Hosseini holds a MBA from the business school INSEAD in
Fontainebleau, France, a master's degree in information
technology from SKEMA Business School in Sophia Antipolis,
France, and a master's degree in electrical engineering from the
Ecole Speciale des Travaux Publicsin Paris.

Florent Maisonneuve, promoted to managing director in
AlixPartners' Enterprise Improvement group, is known for both his
strategy expertise and strong functional operations capabilities
in sourcing, complex cost reduction, manufacturing, and support
and services.  He joined AlixPartners in 2006, and has worked in
multiple industries including oil and gas, aerospace and defense,
and automotive, working on engagements for many well-known
companies.  Prior to AlixPartners, he was a manager at A.T.
Kearney, where hiswork included consulting in the area of
manufacturing engineering.

Mr. Maisonneuve holds a master's degree in engineering from Ecole
CentraleParis in Paris and another master's in engineering from
the Technical University of Munich (Technische Universitat
Menschen) and he also completed a post-graduate business
administration program through the University of Michigan.

The 35 AlixPartners professionals promoted to director are, by
office location:


Ryan Graham, Enterprise Improvement group
Andrew Gust, Financial Advisory Services group
Josh Knauff, Enterprise Improvement group
Darren Morrison, Enterprise Improvement group


Sundaram Chokkalingam, Enterprise Improvement group
Kyle Elam, Financial Advisory Services group
Steven Fratus, Information Management Services group
Brian Johns, Information Management Services group
Myles McCormack, Financial Advisory Services group
Kyle Nelson, Information Management Services group
Timothy Rosolio, Information Management Services group


Dan Hearsch, Enterprise Improvement group
Jason King, Enterprise Improvement group

Hong Kong

Baljinder Singh, Financial Advisory Services group


Natalie Butcher, Information Management Services group
Olaf Geretzki, Turnaround & Restructuring Services group
Bhaskar Neppalli, Enterprise Improvement group
Bjoern Velden, Enterprise Improvement group


Nils Wemhoener, Enterprise Improvement group

New York

Chris Brown, Financial Advisory Services group
James Hogarth, Turnaround & Restructuring Services group
Sonia Lapinsky, Enterprise Improvement group
Rob Mastrigli, Enterprise Improvement group
Silvio Palumbo, Information Management Services group
Noam Paransky, Enterprise Improvement group
Spencer Ware, Turnaround & Restructuring Services group


Julien Charlier, Enterprise Improvement group
Nicolas Harmouche, Turnaround & Restructuring Services group
Cecilia Mattson, Enterprise Improvement group
Julien Nathan, Enterprise Improvement group

San Francisco

Michael Chang, Enterprise Improvement group
Jonathan Greenway, Enterprise Improvement group
Scott Jones, Information Management Services group
Chris Pocek, Information Management Services group


Qian Xu, Enterprise Improvement group

                        About AlixPartners

AlixPartners -- is a global
business advisory firm of results-oriented professionals who
specialize in creating value and restoring performance at every
stage of the business lifecycle.  The firm's expertise covers a
wide range of businesses and industries whether they are healthy,
challenged or distressed.  Since 1981, the firm has taken a
unique, small-team, action-oriented approach to helping corporate
boards and management, law firms, investment banks and investors
respond to critical business issues.


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

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

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

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


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

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

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

                 * * * End of Transmission * * *