TCREUR_Public/140129.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 29, 2014, Vol. 15, No. 20

                            Headlines

A U S T R I A

HYPO ALPE-ADRIA: Austria Begins Talks with Banks on Wind-Down


C R O A T I A

ZAGREBACKA BANKA: S&P Lowers Counterparty Credit Rating to 'BB'


I R E L A N D

LIGHTPOINT PAN: Moody's Affirms 'Ba3' Rating on EUR9.5MM Notes


L A T V I A

LIEPAJAS METALURGS: Sales Process May Conclude This Summer
LIEPAJAS METALURGS: Costs Reach EUR1.3 Million Since Insolvency


N E T H E R L A N D S

HIGHLANDER EURO: S&P Lowers Rating on Class D Notes to 'CCC-'
NEW WORLD RESOURCES: Moody's Cuts CFR to 'Caa3'; Outlook Negative


P O R T U G A L

BANCO BPI: S&P Affirms BB- Rating on Public-Sector Covered Bonds
BANCO SANTANDER: S&P Affirms BB+ Rating on Mortgage-Covered Bonds


R O M A N I A

* ROMANIA: 26K Firms Enters Insolvency in 11 Mos. Ended Nov. 2013


R U S S I A

NOVOKUZNETSK BANK: Central Bank Revokes License
SUDOSTROITELNY BANK: Moody's Affirms 'B3' Ratings; Outlook Stable
* RUSSIA: Nabiullina Says No "Black List" of Banks Amid Shutdowns


S L O V E N I A

SLOVENIA: Moody's Changes Outlook on Ba1 Bond Rating to Stable


S P A I N

AHORRO CORPORACION: Moody's Withdraws 'B3' Issuer Ratings
BANCO MARE: Fitch Cuts Rating on Mortgage-Covered Bonds


U N I T E D   K I N G D O M

ALBEMARLE & BOND: Sale Process Fails; Covenant Test Extended
AUBURN SECURITIES: Moody's Confirms B2 Rating on GBP5.65MM Notes
BARNETTS SOLICITORS: Assets Sold Following Administration
BOND MISSION: S&P Affirms 'B' Rating on Senior Secured Notes
CLASSIC BUS NORTH WEST: Gone into Administration

ENGMENTS: In Administration; Cuts 15 Jobs
INSHOPS CENTRES: In Liquidation; Retailers Asked to Vacate
KEYDATA: Investors Renew Calls for Inquiry Into Collapse
LATERAL DESIGN: Goes Through Pre-packaged Administration
MANOR PROPERTY LIMITED: In Administration, Business as Usual

PREMIER FOODS: Prepares for GBP300 Million Rights Issue
PUNCH TAVERNS: Jr. Bondholders to Reject Restructuring Proposal
SOUTHERN PACIFIC: S&P Affirms 'B-' Rating on Class E Notes
STRATTON SERVICES: Closes Operations Following Administration
TONE WORLD: In Administration; Continues to Trade


U Z B E K I S T A N

ORIENT FINANS: S&P Raises Counterparty Credit Rating to 'B-'


X X X X X X X X

* Distressed Debt Hedge Fund Commits US$530 Million to Europe


                            *********


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A U S T R I A
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HYPO ALPE-ADRIA: Austria Begins Talks with Banks on Wind-Down
-------------------------------------------------------------
Boris Groendahl at Bloomberg News reports that the Austrian
government is beginning talks with the nation's banks to gain
their support for winding down nationalized Hypo Alpe-Adria-Bank
International AG in a way that keeps it off the state's books.

Bloomberg News relates that Finance Minister Michael Spindelegger
on Monday said Austria will start negotiations with the banks
immediately and will decide next month whether it's possible to
implement a model where they contribute to the cost.

Mr. Spindelegger, as cited by Bloomberg, said the country will
also hold discussions with the European Union's statistics office
Eurostat about whether it can keep Hypo Alpe's bad assets off
government books under the EU's debt rules.

Setting up a vehicle majority-owned by Austrian banks, similar to
Ireland's National Asset Management Agency (NAMA), could avoid
adding the assets to Austria's debt stock under the EU's
Maastricht debt rules, Bloomberg notes.

Hypo Alpe Chairman Klaus Liebscher, who has led a group of
experts advised by Germany's SachsenAM and Bankhaus Lampe to
study alternatives for a bad bank, presented his models together
with Austrian central bank Governor Ewald Nowotny to Spindelegger
and Faymann on Monday, Bloomberg relays.  According to his
favored plan, Austrian banks will contribute membership fees to a
"bank stabilization fund" that would own the bad bank, Bloomberg
discloses.

According to Bloomberg, Mr. Liebscher said to make it
commercially feasible for the lenders, contributions to the fund
may be deductible from Austria's bank levy and the fund could
serve as a precursor to a bank restructuring fund Austria will
have to set up under new EU rules anyway.

Bloomberg relates that Mr. Spindelegger said the bank-supported
model is the "preferred" option for the time being, and the
government will consider a "cascade" of alternatives if it proves
unworkable.

Hypo Alpe-Adria International AG is a subsidiary of BayernLB.  It
is active in banking and leasing.  In banking, HGAA serves both
corporate and retail customers and offers services ranging from
traditional lending through savings and deposits to complex
investment products and asset management services.



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C R O A T I A
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ZAGREBACKA BANKA: S&P Lowers Counterparty Credit Rating to 'BB'
---------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
counterparty credit rating on Croatia-based Zagrebacka banka dd,
to 'BB' from 'BB+'.  The outlook is stable.

The downgrade reflects S&P's similar action on Croatia on
Jan. 24, 2014, prompted by S&P's view that the economic and
budgetary policy measures the Croatian government has introduced
have so far been insufficient to foster economic growth and place
public finances on a more sustainable path.  S&P believes that
economic competitiveness remains weak due to factors such as
labor market rigidities and a complicated business environment.
S&P expects the factors behind the sovereign rating action to
have negative implications for its view of the economic and
industry risks affecting the Croatian banking industry.

According to S&P's criteria, the long-term rating on Zagrebacka
banka is capped by the long-term foreign-currency rating on the
sovereign.  Considering the bank's high exposure to the Croatian
government through holdings in government securities and lending
to government-related entities, S&P don't believe that its rating
can be higher than the sovereign.

S&P continues to consider Zagrebacka banka to be a "strategically
important" subsidiary of UniCredit Bank Austria AG, which is the
controlling shareholder with an 84.5% stake.  According to S&P's
criteria, this could potentially yield up to three notches of
support above the bank's stand-alone credit profile (SACP).  S&P
believes Zagrebacka banka fits well with UniCredit's objective to
be a major player in commercial banking in Central and Eastern
Europe.  Since Zagrebacka banka's SACP is not lower than the
long-term sovereign rating, S&P do not factor any support into
the long-term rating on the bank.

The stable outlook mirrors that on the sovereign.  The outlook
balances S&P's expectations of medium-term benefits from EU
accession against its view of limited prospects for significant
economic-growth-enhancing reforms.

S&P would lower the rating on the bank if it lowered the rating
on the sovereign.  This could be triggered by some deterioration
in the sovereign's funding position and further deterioration in
its external accounts.

S&P would raise its rating on the bank if it took similar action
on the sovereign.  A sovereign upgrade could be triggered by
significant improvement in economic growth prospects and
government finances.



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I R E L A N D
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LIGHTPOINT PAN: Moody's Affirms 'Ba3' Rating on EUR9.5MM Notes
--------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on the
following notes issued by LightPoint Pan-European CLO 2006
p.l.c.:

  EUR23,500,000 Class B Floating Rate Notes Due 2022, Upgraded to
  Aaa (sf); previously on April 5, 2013 Upgraded to Aa1 (sf)

  EUR20,500,000 Class C Deferrable Floating Rate Notes Due 2022,
  Upgraded to Aa3 (sf); previously on April 5, 2013 Upgraded to
  A1 (sf)

Moody's also affirmed the ratings on the following notes:

  EUR220,000,000 Class A Floating Rate Notes Due 2022 (current
  outstanding balance of EUR117,684,373.29), Affirmed Aaa (sf);
  previously on April 5, 2013 Affirmed Aaa (sf)

  EUR20,000,000 Class D Floating Rate Notes Due 2022, Affirmed
  Baa3 (sf); previously on April 5, 2013 Upgraded to Baa3 (sf)

  EUR9,500,000 Class E Floating Rate Notes Due 2022, Affirmed Ba3
  (sf); previously on April 5, 2013 Upgraded to Ba3 (sf)

LightPoint Pan-European CLO 2006 p.l.c issued in January 2007, is
a collateralized loan obligation backed primarily by a portfolio
of senior secured loans issued by European obligors. The
portfolio is managed by Neuberger Berman Fixed Income LLC. The
transaction's reinvestment period ended in January 2013.

Ratings Rationale

These rating actions are primarily a result of deleveraging of
the senior notes and an increase in the transaction's over-
collateralization ratios since April 2013. The Class A notes have
been paid down by approximately 40% or EUR78.6 million since
April 2013. Based on the trustees' December 2013 report, the
over-collateralization (OC) ratio for the Class A/B notes is
140.5%, up from 127.5% on April 2013, the Class C notes is
122.7%, up from 116.6% and the Class D notes is 109.2%, up from
107.7%.

Nevertheless, the credit quality of the portfolio has
deteriorated since the last rating action in April 2013. Based on
the trustee's December 2013 report, the weighted average rating
factor is currently 2713 compared to 2540 in April 2013.

Methodology Used for 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 Ratings

This transaction is subject to a number of factors and
circumstances that could lead to either an upgrade or downgrade
of the ratings:

1) Macroeconomic uncertainty: CLO performance is subject to a)
uncertainty about credit conditions in the general economy and b)
the large concentration of upcoming speculative-grade debt
maturities, which could make refinancing difficult for issuers.

2) Collateral Manager: Performance can also be affected
positively or negatively by a) the manager's investment strategy
and behavior and b) differences in the legal interpretation of
CLO documentation by different transactional parties owing to
embedded ambiguities.

3) Collateral credit risk: A shift towards collateral of better
credit quality, or better credit performance of assets
collateralizing the transaction than Moody's current
expectations, can lead to positive CLO performance. Conversely, a
negative shift in credit quality or performance of the collateral
can have adverse consequences for CLO performance.

4) Deleveraging: An important source of uncertainty in this
transaction is whether deleveraging from unscheduled principal
proceeds will continue and at what pace. Deleveraging of the CLO
could accelerate owing to high prepayment levels in the loan
market and collateral sales by the manager, which could have a
significant impact on the notes' ratings. Note repayments that
are faster than Moody's current expectations will usually have a
positive impact on CLO notes, beginning with those with the
highest payment priority.

5) 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 its credit estimates in a timely
fashion, the transaction could be negatively affected by any
default probability adjustments Moody's assumes in lieu of
updated credit estimates. Moody's also ran stress scenarios to
assess the collateral pool's concentration risk because loans to
obligors it assesses with credit estimates constitute more than
3% of the collateral pool.

6) Exposure to European obligors: As the Euro area crisis
continues, the rating of the structured finance notes remain
exposed to the uncertainties of credit conditions in the general
economy. The deteriorating creditworthiness of euro area
sovereigns as well as the weakening credit profile of the global
banking sector could negatively impact the ratings of the notes.

In addition to the base case analysis, Moody's also conducted
sensitivity analyses to test the impact of a number of default
probabilities on the rated notes. Below is a summary of the
impact of different default probabilities (expressed in terms of
WARF) on all of the rated notes (by the difference in the number
of notches versus the current model output, for which a positive
difference corresponds to lower expected loss):

Moody's Adjusted WARF -- 20% (2427)

Class A: 0

Class B: 0

Class C: +2

Class D: +2

Class E: +2

Moody's Adjusted WARF + 20% (3641)

Class A: 0

Class B: -1

Class C: -2

Class D: -1

Class E: 0

Loss and Cash Flow Analysis

Moody's modeled the transaction using a cash flow model based on
the Binomial Expansion Technique, as described in Section 2.3 of
the "Moody's Global Approach to Rating Collateralized Loan
Obligations" published in November 2013.

The key model inputs Moody's used 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 collateral pool as having a performing
par balance of EUR201 million, no defaulted par, a weighted
average default probability of 20.69% (implying a WARF of 3034),
a weighted average recovery rate upon default of 47.73%, a
diversity score of 30 and a weighted average spread of 3.87%.

Moody's incorporates the default and recovery properties of the
collateral pool in cash flow model analysis where they are
subject to stresses as a function of the target rating on each
CLO liability reviewed. Moody's derives the default probability
from the credit quality of the collateral pool and Moody's
expectation of the remaining life of the collateral pool. The
average recovery rate for future defaults is based primarily on
the seniority of the assets in the collateral pool. In each case,
historical and market performance and the collateral manager's
latitude for trading the collateral are also factors.

A material proportion of the collateral pool includes debt
obligations whose credit quality Moody's assesses through credit
estimates. Moody's analysis reflects adjustments with respect to
the default probabilities associated with credit estimates.
Specifically, Moody's assumed an equivalent of Caa3 for assets
with credit estimates that have not been updated within the last
15 months, which represent approximately 3.0% of the collateral
pool. Additionally, for each credit estimates whose related
exposure constitutes more than 3% of the collateral pool, Moody's
applied a two-notch equivalent assumed downgrade to approximately
3.7% of the pool.



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L A T V I A
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LIEPAJAS METALURGS: Sales Process May Conclude This Summer
----------------------------------------------------------
The Baltic Course, citing LETA, reports that the sale of the
insolvent metallurgical company Liepajas metalurgs could conclude
by the summer, as the company's insolvency administrator Haralds
Velmers told a press conference on Jan. 24.

According to the Baltic Course, Mr. Velmers said the actual sales
process will commence in mid-February. He believes that selling
Liepajas metalurgs within six months since the company was
declared insolvent, which is the maximum period provided in the
law, will most probably be impossible, the report relays.

The Baltic Course relates that Mr. Velmers said by the summer,
agreement could be reached with one of the bidders, and work on
the sales contract could begin then. It is possible that Liepajas
metalurgs creditors' meeting will have to be called again in
order to extend the period during which the company must be sold,
according to the report.

The report notes that Mr. Velmers said Liepajas metalurgs sales
strategy was submitted to the company's creditors on January 20.
Depending on the creditors' proposals and possible alterations to
the plan, the company's sales process could begin in mid-
February.

No creditors of the company have commented on the sales strategy
so far, Mr. Velmers, as cited by the Baltic Course, added.

Mr. Velmers also said his main objective was to help Liepajas
metalurgs creditors recover as much money as possible from the
company and help Liepajas metalurgs workers return to work at the
company, the report adds.

Liepajas Metalurgs is a Latvian metallurgical company.

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


LIEPAJAS METALURGS: Costs Reach EUR1.3 Million Since Insolvency
---------------------------------------------------------------
The Baltic Course reports that since the insolvency of Liepajas
metalurgs was declared this past November, EUR1.3 million has
already been spent in maintaining the company and its equipment.

According to The Baltic Course, the company's insolvency
administrator Haralds Velmers points out that most of the money
went to paying electricity and gas bills, as well as paying
salaries for essential personnel.

Mr. Velmers points out that there are currently 260 essential
employees still working at the company, The Baltic Course relays.

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

Liepajas Metalurgs is a Latvian metallurgical company.



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N E T H E R L A N D S
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HIGHLANDER EURO: S&P Lowers Rating on Class D Notes to 'CCC-'
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
Highlander Euro CDO B.V.'s class A-2 (prim) and B (prim) notes.
At the same time, S&P has lowered its ratings on the class C
(prim) and D (prim) notes.  S&P has also affirmed its 'AAA (sf)'
rating on the class A-1 (prim) notes.

The rating actions follow S&P's review of the transaction's
performance based on the December 2013 trustee report.  S&P has
applied its relevant criteria and conducted its credit and cash
flow analysis.

The transaction is amortizing and the class A-1 (prim) notes have
partially amortized since the end of the reinvestment period in
2012.  The class A-1 (prim) notes' current outstanding balance is
EUR114.60 million (41.49% of their initial balance).

The overcollateralization tests for the class D (prim) and E
(prim) notes continue to fail compared with S&P's previous
review. The class A, B, and C notes' overcollateralization tests
are above the documented triggers, and S&P has observed that the
cushions (the difference between the percentage of
overcollateralization and the documented triggers) have also
increased.

The transaction's average obligor exposure has increased since
S&P's previous review.  In S&P's view, this is predominantly a
result of the paydown of assets in the pool.  S&P has also
observed that the class D (prim) notes continue to defer their
interest payments.  The principal notional balance of this class
of notes is EUR27.27 million (the original balance was
EUR25.00 million).  Assets that S&P considers to be defaulted
('CC', 'SD', and 'D') have increased since its previous review to
9.11% from 3.72% (in notional terms this figure has increased to
EUR24.7 million from EUR24.7 million).

The pool's weighted-average rating is the same as that observed
in S&P's previous review.  A higher concentration of structured
finance assets in the pool has resulted in higher scenario
default rates (SDRs) at each rating level.  (SDRs are the minimum
level of portfolio defaults S&P expects each collateralized debt
obligation [CDO] tranche to be able to support the specific
rating level using the Standard & Poor's CDO Evaluator.)

"We subjected the capital structure to our cash flow analysis,
based on the methodology and assumptions outlined in our
corporate CDOs criteria, to determine the break-even default
rates for each class of notes.  We used the reported portfolio
balance that we considered to be performing and the principal
cash balance.  We also used the weighted-average spread, which
has increased since our previous review to 4.17% from 4.04%, and
the weighted-average recovery rates that we considered to be
appropriate.  We incorporated various cash flow stress scenarios
using various default patterns, levels, and timings for each
liability rating category, in conjunction with different interest
rate stress scenarios," S&P said.

"Taking into account the results of our credit and cash flow
analysis and developments in the transaction since our previous
review, we consider the credit enhancement available to the class
A-2 (prim) and B (prim) notes to be commensurate with higher
ratings than previously assigned.  We have therefore raised our
ratings on these classes of notes.  We have also affirmed our
'AAA (sf)' rating on the class A-1 (prim) notes as we consider
the available credit enhancement for this class of notes to be
commensurate with its current rating," S&P added.

In considering a proposed rating for a tranche, S&P ascertains
whether the current credit enhancement is sufficient to address
its applicable supplemental tests and the results of its credit
and cash flow analysis.  S&P's supplemental tests assess whether
a CDO tranche has sufficient credit enhancement to withstand
specified combinations of underlying asset defaults (based on the
ratings on the underlying assets).

S&P has lowered its ratings on the class C (prim) and D (prim)
notes based on the application of these tests.  The results
showed that the available credit enhancement is only commensurate
with lower ratings on the class C (prim) and D (prim) notes,
mainly due to higher defaults in comparison to last review.  S&P
has therefore lowered its ratings on these classes of notes.

Highlander Euro CDO is a CDO transaction, which closed in July
2006.  The transaction securitizes loans to primarily
speculative-grade corporate firms.

RATINGS LIST

Class       Rating         Rating
            To             From

Highlander Euro CDO B.V.
EUR500 Million Secured Floating-Rate and Subordinated Notes

Ratings Raised

A-2 (prim)  AAA (sf)       AA+ (sf)
B (prim)    AA (sf)        A+ (sf)

Ratings Lowered

C (prim)    BB+ (sf)       BBB- (sf)
D (prim)    CCC- (sf)      CCC+ (sf)

Rating Affirmed

A-1 (prim)  AAA (sf)


NEW WORLD RESOURCES: Moody's Cuts CFR to 'Caa3'; Outlook Negative
-----------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating (CFR) of New World Resources N.V. (NWR, or the group) to
Caa3 from Caa1 and its probability of default rating (PDR) to
Caa3-PD from Caa1-PD, following the company's announcement on 22
January of a potential capital structure review. At the same
time, Moody's has downgraded the senior secured rating on the
group's notes due 2018 to Caa2 (LGD2 -- 29%) from B3 and the
senior unsecured rating on its notes due 2021 to Ca (LGD5 -- 89%)
from Caa3. The outlook on the ratings is negative.

"We are downgrading NWR ratings to Caa3 because in our view the
possible restructuring of its capital structure, triggered by the
ongoing deterioration in the coal market, could result in a loss
for existing bondholders, which would mean a default," says
Paolo Leschiutta, a Moody's Vice President-Senior Credit Officer
and lead analyst for NWR.

RATINGS RATIONALE

DOWNGRADE OF CORPORATE FAIMILY RATING TO Caa3 FROM Caa1

The rating action reflects NWR's recent announcement that it
would conduct a review of its capital structure. The planned
review has been triggered by ongoing historically low prices for
coking and thermal coal, which are not sufficient to sustain the
company's current capital structure. In the fourth quarter of
2013, average prices for coking and thermal coal were EUR98 tonne
and EUR55 tonne, respectively. These prices are broadly in line
with the average price for the full year of 2013. For the first
quarter of 2014, however, the company announced prices for coking
and thermal coal of EUR91 tonne and EUR54 tonne, respectively,
indicating further downward pressure in the market.

Moody's recognizes that NWR has successfully implemented a number
of restructuring measures thus far in calendar year 2013,
including the disposal of its coke activities for EUR95 million
(completed in December 2013) and the negotiation of a suspension
of financial covenants contained in its Export Credit Agencies
loan. Moody's also expects that NWR will have sufficient
liquidity to operate for the next 6 to 12 months. However, these
factors are not enough to compensate for the further decline in
market conditions, which are putting significant strain on the
company's ability to generate cash flow. Prospects for recovery
are also modest at the moment, which could lead NWR to consider
additional changes to its capital structure.

RATIONALE FOR NEGATIVE OUTLOOK

The negative outlook on the ratings reflects Moody's view that a
default within the next few months is extremely likely at this
stage and that a debt restructuring that implies a loss for
bondholders could result in a further downgrade.

WHAT COULD CHANGE THE RATING UP/DOWN

Upward pressure on the ratings is currently limited. Nonetheless,
Moody's could upgrade NWR's ratings following an improvement in
(1) market conditions, and, in particular, (2) the currently
depressed coal prices. Such improvements would result in a
recovery in the company's cash generation and a boost to its
liquidity profile.

Conversely, negative rating pressure could result from the
company offering its bondholders a restructuring plan that
implies economic loss. Negative rating pressure could also arise
in case of further deterioration in NWR's liquidity profile or
market conditions.

Principal Methodology

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

Headquartered in the Netherlands, NWR is the largest hard coal
mining group in the Czech Republic (based on coal production) and
operates through its main subsidiary OKD, a.s. The group reported
revenues of EUR1.3 billion and EBITDA of EUR223 million for
fiscal year-end December 2012. NWR exploits the Upper Silesian
basin in the north-eastern part of the Czech Republic.



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P O R T U G A L
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BANCO BPI: S&P Affirms BB- Rating on Public-Sector Covered Bonds
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'A-' ratings on the mortgage covered bonds of Portugal-based
Banco BPI S.A. (BB-/Negative/B).  S&P also affirmed its 'BB-'
ratings on Banco BPI's public-sector covered bonds.  The outlooks
are negative.

At the same time, the ratings were removed from CreditWatch,
where S&P had placed them with negative implications on Sept. 24,
2013.

The rating actions follow the affirmation of S&P's long-term
rating on Banco BPI.

Mortgage-Covered Bonds

Based on S&P's rating criteria, the ratings on the mortgage
covered bonds can be up to six notches higher than the 'BB-'
long-term rating on Banco BPI.

"Under our criteria for rating above the sovereign, if the
sovereign credit rating is in a speculative-grade category ('BB+'
or lower), the covered bond ratings can be at most five notches
higher than the rating on the country where the cover pool assets
are located.  The long-term rating on Portugal is 'BB'; therefore
the long-term ratings on Banco BPI's mortgage covered bond
program and related series are constrained at 'A-'.
Nevertheless, because the long-term rating on Banco BPI is one
notch lower than the sovereign rating, the covered bonds still
achieve the 'A-' ratings," S&P said.

The negative outlook on the program reflects that on the issuer
and the sovereign credit ratings.  This means that, all else
being equal, any future downgrade of either Banco BPI or Portugal
would automatically lead to a downgrade of the covered bond
program and related series.

Public-Sector Covered Bonds

Under S&P's EMU criteria, it considers the collateral of public-
sector covered bonds to have a "high" sensitivity to sovereign
risk.  Therefore, S&P's rating on such a covered bond program
would typically be only one notch higher than the rating on the
country where the cover pool assets are located.

Banco BPI's public-sector covered bonds are exposed solely to
Portuguese public-sector entities.  Additionally, the underlying
public-sector loans rely on sovereign system support and transfer
payments from the Portuguese government.

Therefore, the maximum potential ratings on Banco BPI's public-
sector covered bond program and related series are capped at
'BB+', one notch higher than the long-term rating on Portugal.
This is equivalent to two notches of uplift above the issuer
credit rating.

However, based on S&P's analysis of the most recent data on the
program's credit quality (as of June 30, 2013) and cash flow
structure (as of Sept. 30, 2013), the available credit
enhancement is not able to cover asset default risk.
Consequently, the number of notches of uplift S&P applies to rate
the program is zero, so the ratings are at the same level as the
long-term rating on Banco BPI.

This means that the sovereign rating does not currently constrain
the rating.  If S&P was to lower the long-term rating on Banco
BPI, all else assumed unchanged, it would lower the ratings on
the covered bonds by an equal number of notches.  Therefore, the
negative outlook on the program reflects that on Banco BPI.


BANCO SANTANDER: S&P Affirms BB+ Rating on Mortgage-Covered Bonds
-----------------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'BB+'
ratings on mortgage covered bonds (Obrigacoes hipotecarias) and
related series issued by Portugal-based Banco Santander Totta
S.A. (BB/Negative/B).  The outlook is negative.

As part of S&P's regular surveillance, it reviewed the program's
asset quality as of Sept. 30, 2013, and cash flow information as
of Dec. 31, 2013.  The rating action follows S&P's affirmation of
all its long- and short-term ratings on Portuguese banks and
their removal from CreditWatch with negative implications, where
S&P had placed them on Sept. 20, 2013, following the similar
action on Portugal.

Under S&P's criteria "Revised Methodology And Assumptions For
Assessing Asset-Liability Mismatch Risk In Covered Bonds,"
published Dec. 16, 2009, the ratings on the program can be four
notches above the issuer credit rating (ICR).  However, available
credit enhancement in the program enables the covered bonds to
achieve a single notch of uplift from the ICR.  This leaves the
covered bonds rated at 'BB+'.

The negative outlook on the program reflects that on the issuer.
This means that, all else being equal, any future downgrade of
Banco Santander Totta would automatically lead to a downgrade of
the covered bond program and related series.



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


* ROMANIA: 26K Firms Enters Insolvency in 11 Mos. Ended Nov. 2013
-----------------------------------------------------------------
Romanian Business News-ACTMedia, citing ONRC data, reports that
the companies which went into insolvency last year had debts of
RON5.7 billion (EUR1.3 billion) for a business figure of RON11.4
billion and 61,217 employees.

The report relates that for the analysed period Jan. 1 to Nov. 30
2013, about 26,806 firms entered insolvency.  Figures about
business, number of employees, and debts of companies in
insolvency are for 2012.  Figures representing the business
figure and the level of debts could be higher considering that
only 7,966 of the 26,806 firms presented financial situations for
2012, ACTMedia relays.

According to the report, Bucharest is a leader for the business
figure of the 3,565 firms which became insolvent in 2013 (703 of
which published their 2012 report) with RON4.7 billion.  Debts of
Bucharest firms amount to RON1.7 billion and they employ 15,700
persons.  The report relates that Timis county ranks second;
there companies with business figures of RON553 million went into
insolvency. It is followed by Buzau -- RON529 million, Bihor --
RON548 million and Ilfov -- RON497 million, the report discloses.

According to ONRC, the number of companies which entered
insolvency in 2013 was 30,000, 10.4% more than in 2012, over a
third of them being retails firms, the news agency relays.



===========
R U S S I A
===========


NOVOKUZNETSK BANK: Central Bank Revokes License
-----------------------------------------------
Jason Corcoran at Bloomberg News reports that Russian regulators
canceled the license of AKB Novokuznetsk Municipal Bank OAO,
saying the Siberian lender made high-risk loans and allowed its
owners to borrow from the company.

The Russian central bank said in a statement on its Web site that
NMB, as the lender is known, was running "a high-risk credit
policy" and not adequately creating reserves for possible loan
losses, Bloomberg relates.  The regulator, as cited by Bloomberg,
said that the bank, which is in Russia's top 300 lenders by
assets as of Dec. 1, didn't fulfill its obligations to creditors
and depositors because of insufficient cash flow.

NMB said in the statement that depositors with as much as
RUR700,000 (US$21,000) are entitled to a full reimbursement from
the Deposit Insurance Agency, Bloomberg relays

NMB, which focused on the Kemerovo region of Siberia, was set up
in 1994 and provides services to companies and individuals,
according to its website.


SUDOSTROITELNY BANK: Moody's Affirms 'B3' Ratings; Outlook Stable
-----------------------------------------------------------------
Moody's Investors Service has affirmed the B3 long-term local and
foreign-currency deposit and long-term local-currency senior
unsecured debt ratings of SB Bank (Sudostroitelny Bank). Its
standalone E+ bank financial strength rating (BFSR) -- equivalent
to a baseline credit assessment (BCA) of b3 -- and Not Prime
short-term bank deposit ratings were also affirmed. The outlook
on the bank's standalone BFSR and its long-term ratings is
stable.

Moody's assessment of the ratings is largely based on SB Bank's
audited financial statements for 2012, its unaudited financial
statements for H1 2013 and Q3 2013, prepared under IFRS, as well
as information received from the bank.

Ratings Rationale

The affirmation of SB Bank's ratings takes into account moderate
concentrations in the loan book and customer base compared to its
peers, reflecting the bank's focus on small and medium-sized
business as well as its acceptable asset quality. The affirmation
also reflects the bank's continued weaknesses such as (1) modest
capitalization; (2) weak and volatile profitability; (3) the
limited diversification and scale of the business; and (4) high
dependence on wholesale funding.

Moody's notes that SB Bank's capitalization has declined to
modest levels, with the regulatory capital ratio (N1) declining
to 11.4% (only 110 basis points above the regulatory minimum) at
end-November 2013 (end-H1 2013: 12.43%; year-end 2012: 14% and
year-end 2011: 18%). This decline is the result of low recurring
internal capital generation which has lagged significantly behind
the pace of growth in risk-weighted assets.

SB Bank's profitability has been modest, with return on average
assets (ROAA) below 1.6% in recent years (e.g., less than 1% in
Q3 2013), mainly because of low yields on a large securities
portfolio and a large share of low-yielding cash equivalents.
Profitability from stable sources (interest income plus fees)
barely covered loan loss charges and administrative costs in Q3
2013 (compared to losses at year-end 2012).

Despite substantial asset growth during the last several years,
SB Bank is still a mid-sized institution -- ranked among the 78
largest banks in Russia. The bank focuses on lending to second-
tier companies and small and medium-sized companies (SMEs), while
retail operations have been negligible.

Around 38% of SB Bank's non-equity funding was generated from
wholesale sources (including repo) as at end-Q3 2013. Such
dependence on wholesale funding renders liquidity potentially
vulnerable to refinancing risk: according to Moody's stress test,
the bank would have to significantly reduce new lending
operations in order to address all wholesale repayments and
substantial customers outflow.

SB Bank's borrower concentration is moderate and lower than many
of its peers in Russia. According to SB Bank, its top 20
exposures accounted for 1.4x regulatory capital minus
subordinated debt at end-Q3 2013.

Moody's notes SB Bank's better-than-average asset quality which
is a result of the fact that short-term working capital financing
accounts for most of the bank's lending activity. As a result,
according to SB Bank, at end-Q3 2013, non-performing loans (NPLs,
defined as 90+ days overdue) accounted for 2% of gross loans.

What Could Move The Ratings UP/DOWN

SB Bank's deposit and debt ratings could be upgraded as a result
of a (1) reduction in its reliance on wholesale funding; (2)
improvement in its capitalization; and (3) lower market risk
appetite. The bank's ratings could be downgraded as a result of
any material increase in borrower concentration, deterioration in
its asset quality, or a significant decline in capital adequacy
or liquidity.

Principal Methodology

Headquartered in Moscow, Russia, SB Bank reported total assets of
RUB65 billion ($2 billion) under IFRS (unaudited) as of end-
October 2013. The bank recorded a net profit of RUB213 million
(US$7 million) in the first nine months of 2013.


* RUSSIA: Nabiullina Says No "Black List" of Banks Amid Shutdowns
-----------------------------------------------------------------
Elena Popina and Halia Pavliva at Bloomberg News report that
Bank Rossii Governor Elvira Nabiullina said she doesn't have a
"black list" of Russian banks she aims to shut down after closing
30 small lenders in her first seven months on the job.

"There is no black list of Russian banks; it's nonsense,"
Bloomberg quotes Ms. Nabiullina as saying in an interview with
Russia's Channel One TV on Monday.  "Withdrawing a license is
always a measure of last resort for the central bank.  We will
always work with a bank first."

Since taking office as Bank Rossii governor on July 1,
Ms. Nabiullina has stepped up efforts to tighten regulation of
banks and curtail net capital outflows that were forecast at
about US$55 billion last year, Bloomberg relates.

Mr. Nabiullina, as cited by Bloomberg, said the central bank has
been intervening in the foreign-exchange market to mitigate the
currency's fluctuations.


===============
S L O V E N I A
===============


SLOVENIA: Moody's Changes Outlook on Ba1 Bond Rating to Stable
--------------------------------------------------------------
Moody's Investors Service has changed the outlook on Slovenia's
Ba1 government bond rating to stable from negative. Concurrently,
Moody's has affirmed Slovenia's Ba1 government bond rating.

The key drivers of the outlook change are:

1) The greater clarity over banks' capital needs following the
asset quality review, and the stabilization of the banking system
through recapitalization.

2) In consequence, decreased uncertainty about the sovereign's
funding prospects and a diminished probability that the sovereign
will require external financial assistance.

3) And, overall, a balancing of the risks to the fiscal outlook.

In addition, Slovenia's foreign and local-currency country
ceilings for long-term debt and deposits have been raised to Baa1
from Baa2. The country ceilings for short-term foreign-currency
debt and deposits remain at P-2. These ceilings reflect a range
of undiversifiable risks to which issuers in any jurisdiction are
exposed, including economic, legal and political risks.
Slovenia's ceilings also incorporate the risk of euro exit and
redenomination, consistent with our treatment of other sovereigns
in a currency union. These ceilings act as a cap on ratings that
can be assigned to the foreign and local-currency obligations of
entities domiciled in the country.

RATINGS RATIONALE

The principal driver of Moody's decision to change Slovenia's
rating outlook to stable is the decreased uncertainty regarding
the capital shortfall faced by Slovenian banks following the
announcement of the results of the banking system stress tests
and asset quality review (AQR) in late December 2013. The AQR and
stress tests revealed recapitalization needs for the country's
banks which are manageable for the sovereign and which greatly
decrease the probability that the sovereign will require external
financial assistance to meet its funding needs and stabilize the
banking system. The total fiscal cost of 11.1% of GDP (including
bank liquidations) is in line with Moody's estimate of 8%-11% at
the time of the last rating action. As the uncertainty
surrounding the size of the system's capital shortfall receded,
yields on the sovereign's debt securities and liquidity pressures
have fallen, allowing Slovenia more room for manoeuvre in seeking
additional funds and diminishing the probability of the
government losing access to the private debt markets.

The Bank Asset Management Company (BAMC or the "bad bank") began
the purchase of impaired bank assets shortly after the AQR
results were announced. The process involved the issuance of debt
securities by the BAMC with a sovereign guarantee that were
exchanged for the non-performing assets at a heavy discount that
averaged approximately 65%. The authorities have confirmed that
the two largest banks (NLB and NKBM) have sold the majority of
their impaired assets to BAMC (approximately EUR1.01 billion) at
the end of 2013. Prior to the exchange and after bailing in the
existing shareholders and junior bondholders, the state
recapitalized the banks deploying, in part, the sovereign
deposits held with banks. Moody's estimates that the sovereign's
liquidity buffer, a portion of which was deposited at the banks,
was large enough to meet both the banks' recapitalization needs
and the sovereign's financing requirements through the third
quarter of 2014. Moody's highlights the authorities' willingness
to resolve the recapitalization process quickly following the
announcement of the AQR and stress tests.

As a consequence, Moody's believes that risks to Slovenia's
fiscal outlook have become balanced. Further pressures on the
government's finances are most likely to arise as a result of (1)
private banks being unable to raise sufficient capital, which
would require sovereign intervention; and (2) the economy
continuing to contract beyond 2014, pushing debt ratios up even
further. Set against these downside risks, however, there is the
potential (1) for inflows from the government's privatization
program (which Moody's has not reflected in its financial
analysis, given the high uncertainty which surrounds the results
of such initiatives); and (2) for profits should recoveries by
the BAMC exceed those reflected in the haircuts applied when
purchasing them from the banks, as well as from the sale of
equity held in the three state-owned banks.

Although Moody's acknowledges credit-positive elements, including
the progress in stabilizing the country's banking system,
fundamental challenges remain which keep Slovenia's rating at
Ba1. Moody's estimates that Slovenia's economy likely contracted
by a further 2.0% in 2013 and will continue to contract by 0.7%
in 2014. In addition, corporate sector leverage remains high,
albeit decreasing, relative to regional and rating peers, and
credit is likely to remain highly constrained in the short term
as the system undergoes restructuring. The IMF estimates that
growth-enhancing reforms will only have a positive impact in the
medium term following the ongoing economic rebalancing. In the
meantime, the economy will remain highly dependent on net exports
and therefore on the recovery elsewhere, particularly Germany.

Slovenia's government debt metrics have weakened relative to 'Ba'
peers, with debt-to-GDP continuing its divergence from the peer
median. Moody's forecasts that, even absent shocks, government
debt will reach 76% of GDP (from 54.4% at the end of 2012) once
the restructuring of the banking system is finalized, and will
only stabilize in 2016-17, peaking at slightly over 80% in 2016-
17. The general government interest-to-revenue ratio could exceed
7%, consistent with 'Ba' category medians.

WHAT COULD MOVE THE RATING UP/DOWN

Moody's would consider upgrading the rating in the case of
further progress in rebalancing the economy away from net exports
towards sustainable forms of domestic demand, alongside a more
rapid reversal of the deterioration in government finances,
including a decrease of government indebtedness.

Conversely, Slovenia's sovereign rating could be downgraded in
the event of a substantial weakening of the country's
macroeconomic environment or a re-emergence of concerns over
access to debt markets. Economic or financial shocks arising from
the ongoing banking system stabilization could also jeopardize
the economic rebalancing and the sovereign's fiscal metrics,
resulting in a loss of creditworthiness.

GDP per capita (PPP basis, US$): 27,837 (2012 Actual) (also known
as Per Capita Income)

Real GDP growth (% change): -2.5% (2012 Actual) (also known as
GDP Growth)

Inflation Rate (CPI, % change Dec/Dec): 3.1% (2012 Actual)

Gen. Gov. Financial Balance/GDP: -3.8% (2012 Actual) (also known
as Fiscal Balance)

Current Account Balance/GDP: 3.3% (2012 Actual) (also known as
External Balance)

External debt/GDP: [not available]

Level of economic development: Moderate level of economic
resilience

Default history: At least one default event (on bonds and/or
loans) has been recorded since 1983.

The principal methodology used in this rating was Sovereign Bond
Ratings published in September, 2013.

On January 22, 2014, a rating committee was called to discuss the
rating of Slovenia, Government of. The main points raised during
the discussion were: The issuer's fiscal or financial strength,
including its debt profile and decreased uncertainty about the
sovereign's funding prospects following AQR and bank
recapitalizations. The issuer has become less susceptible to
event risks.



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


AHORRO CORPORACION: Moody's Withdraws 'B3' Issuer Ratings
---------------------------------------------------------
Moody's Investors Service has withdrawn the B3/Not-Prime long-
term and short-term issuer ratings of Ahorro Corporacion
Financiera S.V., S.A. At the time of withdrawal, the ratings
carried a negative outlook.

Moody's has withdrawn the rating for its own business reasons.


BANCO MARE: Fitch Cuts Rating on Mortgage-Covered Bonds
-------------------------------------------------------
Fitch Ratings has assigned Banco Mare Nostrum's (BMN,
BB+/Negative/B) issue of EUR500 million mortgage covered bonds
(Cedulas Hipotecarias or CH) a 'BBB+' final rating with a
Negative Outlook.

Outstanding CHs under BMN's CH program after the new issue's
settlement date on January 21, 2014 has increased to EUR12
billion (from EUR11.5 billion), which is secured by the bank's
total mortgage book of about EUR20.5 billion, resulting in
nominal overcollateralization (OC) of 71%.  This compares with
BMN's public minimum OC commitment of 67% to which the agency has
given credit in its analysis.

The rating assigned to the new CH issue is based on BMN's Long-
term Issuer Default Rating (IDR) of 'BB+', a Discontinuity-Cap
(D-Cap) of 1 (very high discontinuity risk), and our assessment
of recoveries.

It also reflects that the relied-upon OC for the entity's CH
program of 67% is greater than the program's break-even OC of 44%
that is commensurate with a 'BBB+' rating.  In Fitch's opinion,
this 44% OC would provide for outstanding recoveries in excess of
91% to CH investors under a 'BBB+' stress following an assumed CH
default.

The Negative Outlook on the program's rating is driven by the
Outlook on BMN's IDR.

A downgrade of BMN's IDRs by two notches or more to 'BB-' or
below would result in a downgrade of the CH program.

Moreover, the rating is vulnerable to downgrade if the program's
relied-upon OC drops below the break-even OC ratio of 44%. If OC
falls to the legal minimum of 25% the rating may be downgraded by
a notch.



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


ALBEMARLE & BOND: Sale Process Fails; Covenant Test Extended
-------------------------------------------------------------
Ashley Armstrong at The Daily Telegraph reports that Albemarle &
Bond ended its sale process without success.

According to The Daily Telegraph, the company has managed to
negotiate another extension with its banks to postpone its
covenant testing dates to March 31 from Feb. 3.

Albemarle & Bond, as cited by The Daily Telegraph, said that none
of the proposals made by parties "were deemed to represent a fair
value for the company."

"The failure to secure a successful transaction means that it is
likely that the business will go into administration at the end
of March, excluding a last minute solution," The Daily Telegraph
quotes N+1 Singer analyst Andrew Watson as saying.

Barclays and Lloyds Banking Group, which are owed GBP50 million
by the Aim-listed company, have already hired
PricewaterhouseCoopers to advise them on their options, The Daily
Telegraph discloses.  Canaccord Genuity is advising the company's
board on the sale process, The Daily Telegraph notes.

As reported by the Troubled Company Reporter-Europe on Dec. 27,
2013, The Scotsman related that Albemarle & Bond put itself up
for sale early in December after its trading was hit by a slump
in gold prices and rising competition in a sector that has more
than doubled in size over the past five years.  It has been
trading at a loss in recent months and is in danger of breaching
financial covenants while it looks to secure its future before
the end of a three-month reprieve from its lenders at the start
of February, The Scotsman disclosed.

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


AUBURN SECURITIES: Moody's Confirms B2 Rating on GBP5.65MM Notes
----------------------------------------------------------------
Moody's Investors Service has confirmed the ratings of two junior
and one mezzanine notes in two UK residential mortgage-backed
securities (RMBS) transactions: Auburn Securities 4 PLC and
Auburn Securities 5 PLC as a result of the rating agency's
detailed analysis of swap counterparty exposure. Other ratings in
these deals, which were not on review for possible downgrade,
have been affirmed.

The rating action concludes the review of the ratings of Class E
notes in Auburn 5, which Moody's placed on review on 14 November
2013, in relation to swap counterparty exposure following the
introduction of the rating agency's updated approach to assessing
swap counterparty linkage in structured finance transactions.
This rating action also concludes the review of the rating of
Class E notes in Auburn 4 and Class D notes in Auburn 5, which
Moody's placed on review on August 17, 2012 also as a result of
swap counterparty exposure.

Ratings Rationale

The rating action reflects the impact on the two transactions of
their exposure to Permanent tsb p.l.c. (Permanent, B3/NP) as swap
counterparty, following the introduction of the rating agency's
updated approach to assessing swap counterparty linkage in
structured finance cash flow transactions ("Approach to Assessing
Linkage to Swap Counterparties in Structured Finance Cash Flow
Transactions" published on the 12 November 2013).

As part of its review, Moody's has incorporated the risk of
additional losses on the notes in the event of them becoming
unhedged following a swap counterparty default. Assets backing
the notes in these two deals are mostly referenced to the Bank of
England Bank Rate (BBR), while notes are referenced to one-month
GBP LIBOR. The two transactions include a swap agreement with
Permanent to hedge this risk. All the swaps are basis risk swaps,
which do not provide excess spread to the transactions. Net swap
payments in recent periods were modestly in favor of the swap
counterparty in the affected transactions, given the current
interest rate environment. However, net swap payments could be in
favor of the issuer in future. Current margins on the loans are
at a good level and partially offset basis risk (i.e., weighted
average margins on the loans stood at 142 basis points (bps) in
Auburn 4 and 147 bps in Auburn 5 as of the November 2013 pool
cuts).

Moody's run cash flow models taking into consideration additional
losses to be incurred if the affected transactions become un-
hedged. Moody's determined that available excess spread and
credit enhancement in each transaction mitigate the risk of swap
counterparty default.

Moody's understands that a swap collateral account has been
opened with Barclays Bank plc and that the swap counterparty is
currently posting collateral for the affected transactions.

Factors That Would Lead to an Upgrade or Downgrade of the Rating

Factors or circumstances that could lead to a downgrade of the
ratings affected by the action would be the worse-than-expected
performance of the underlying collateral or deterioration in the
credit quality of the counterparties.

Factors or circumstances that could lead to an upgrade of the
ratings affected by the action would be the better-than-expected
performance of the underlying assets, or a decline in
counterparty risk.

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
November 2013.

List of Affected Securities

Issuer: Auburn Securities 4 PLC

  GBP597.5M A2 Notes, Affirmed A2 (sf); previously on Jun 2, 2011
  Downgraded to A2 (sf)

  GBP15M M Notes, Affirmed A2 (sf); previously on Jun 2, 2011
  Downgraded to A2 (sf)

  GBP40M B Notes, Affirmed A2 (sf); previously on Jun 2, 2011
  Downgraded to A2 (sf)

  GBP40M C Notes, Affirmed A3 (sf); previously on Jun 2, 2011
  Confirmed at A3 (sf)

  GBP25M D Notes, Affirmed Baa3 (sf); previously on Oct 11, 2004
  Definitive Rating Assigned Baa3 (sf)

  GBP12.5M E Notes, Confirmed at Ba2 (sf); previously on Aug 17,
  2012 Ba2 (sf) Placed Under Review for Possible Downgrade

Issuer: Auburn Securities 5 PLC

  GBP255.6M A2 Notes, Affirmed A2 (sf); previously on Jun 2, 2011
  Downgraded to A2 (sf)

  GBP20M M Notes, Affirmed A2 (sf); previously on Jun 2, 2011
  Downgraded to A2 (sf)

  GBP9M B Notes, Affirmed A2 (sf); previously on Jun 2, 2011
  Downgraded to A2 (sf)

  GBP18M C Notes, Affirmed A2 (sf); previously on Jun 2, 2011
  Confirmed at A2 (sf)

  GBP11.25M D Notes, Confirmed at Baa3 (sf); previously on Aug
  17, 2012 Baa3 (sf) Placed Under Review for Possible Downgrade

  GBP5.65M E Notes, Confirmed at B2 (sf); previously on Nov 14,
  2013 B2 (sf) Placed Under Review for Possible Downgrade


BARNETTS SOLICITORS: Assets Sold Following Administration
---------------------------------------------------------
Hanna Sharpe at business-sale.com reports that Leonard Curtis has
succeeded in securing buyers for the four parts of Barnetts
Solicitors immediately on entering administration.

business-sale.com relates that the northwest-based firm appointed
administrators on January 21, and swiftly completed the sale of
Barnetts' business to four buyers the same day.  The deal means
that all 130 jobs are retained and the 3,000 existing clients
kept on, the report says.

Its conveyancing business was taken over by DC Law, and the
personal injury and litigation sector was bought by SGI Legal.
Simpson Millar snapped up the care home division, while the
interest rate swap aspect was purchased by Seneca Banking
Consultants, the report discloses.

According to the report, Senior partner Richard Barnett said the
sale represented a "fantastic opportunity for the firm to be able
to move forward to the next level."

"The structure of the business had disparate parts, and it was
therefore unlikely that we could ever have achieved one buyer for
the whole," the report quotes Mr. Barnett as saying.


BOND MISSION: S&P Affirms 'B' Rating on Senior Secured Notes
------------------------------------------------------------
Standard and Poor's Ratings Services said that it affirmed its
'B' issue rating on the senior secured floating-rate notes due
2019 issued by Bond Mission Critical Services PLC (Bond), a U.K.-
based provider of mission-critical helicopter services.  Bond is
the subsidiary of Avincis Mission Critical Services Holdings,
S.L.U. (S&P refers to Bond and Avincis Mission Critical Services
Holdings together as the group).  The recovery rating on the
senior secured notes is unchanged at '3', indicating S&P's
expectation of meaningful (50%-70%) recovery prospects for
lenders in the event of payment default.

The affirmation follows Bond's announcement that it will issue
another GBP60 million under the senior secured notes due 2019,
thereby increasing the total amount to GBP260 million.  S&P
understands that the group will use the GBP60 million increase in
debt partly for capital expenditures and general corporate
purposes.

Recovery Analysis

S&P's issue and recovery ratings on the GBP260 million senior
secured notes due 2019, issued by Bond, reflect S&P's valuation
of the group as a going concern in an event of default, and the
fleet of helicopters that the group owns, which has a market
value of about GBP205 million.

The noteholders benefit from a comprehensive security and
guarantee package, which notably includes the owned helicopters
in the collateral provided to the noteholders.  Nevertheless, the
recovery prospects on the GBP260 million notes are constrained to
some extent by their subordination to the group's GBP25 million
super senior revolving credit facility.

To calculate recoveries, S&P simulates a hypothetical default
scenario.  S&P's simulated default scenario assumes a decline in
revenues arising from the hypothetical loss of several key
customers, combined with a reduction in spending on helicopter
services by air ambulance charities and public bodies.  In S&P's
recovery analysis, it uses a discrete asset valuation as a proxy
for the value available to creditors under a going-concern
scenario.

Simulated default and valuation assumptions

   -- Year of default: 2017
   -- Jurisdiction: U.K.

Simplified waterfall

   -- Discounted asset valuation at default: GBP177 mil.*
   -- Administrative costs: GBP12 mil.*
   -- Net value available to creditors: GBP165 mil.*
   -- Priority claims: GBP26 mil.*
   -- Senior secured debt claims: GBP271 mil.*
   -- Recovery expectation: 50%-70%

* All debt amounts include six months' prepetition interest.


CLASSIC BUS NORTH WEST: Gone into Administration
------------------------------------------------
Paul Berentzen of The Gazette reports that Blackpool-based
Classic Bus North Westthat, the company that terminated a vital
bus service without warning amid rumors of financial difficulty,
has gone into administration on December 31.

Classic Bus North West sparked outrage when it pulled out of its
contract to run the number 80 bus, linking the resort and
Preston, after just 11 days, according to The Gazette.  The
report relates that the news comes as a new company prepares to
take over the route, which includes links to Inskip and Great
Eccleston.

Boss Philip Higgs told The Gazette that 16 jobs had been saved
after a deal was struck with Oakwood Travel, of which he is a
director.

"Eight driving jobs were lost as a result and six jobs from the
loss-making bus refurbishment side of the business," the report
quoted Mr. Higgs as saying.

Kevin Murphy -- kevin.murphy@leonardcurtis.co.uk -- and Andrew
Poxon -- andrew.poxon@leonardcurtis.co.uk --, of Leonard Curtis,
in Manchester, have been appointed joint administrators.

Classic Bus took over the route on a commercial basis on Dec. 9.
It terminated the contract without warning on Dec. 20.

However, the report notes that Poulton Company Archway Travel is
set to take over the running of the route.


ENGMENTS: In Administration; Cuts 15 Jobs
-----------------------------------------
Derby Telegraph reports that Engments has shed 15 jobs and gone
into administration.

Engments has called in joint administrators Paul Finnity --
paul.finnity@bakertilly.co.uk -- and Jill Sandford --
jill.sandford@bakertilly.co.uk --  from Baker Tilly.

In the last couple of years, the firm, which employs 54 people,
has been trading at a loss, following a decline in contracts,
according to Derby Telegraph.

The report relates that in a move designed to maintain jobs at
the firm, Bombardier has confirmed it will continue support to
Engments in order to give the administrators time to secure a
successful sale of the business.

"Engments has suffered trading losses over the last two years as
the rail industry experienced a decline in contracts, the report
notes.  However, we are pleased to see that Bombardier has been
hugely understanding and helpful in these difficult times, which
will give us the best chance of finding a buyer for the
business," the report quoted Mr. Finnity as saying.  "It's a very
forward-thinking gesture by Bombardier and one for which the
management and staff at Engments are extremely grateful," Mr.
Finnity said, the report notes.

However, the report notes that Mr. Finnity confirmed that some
redundancies had already been made at the business.

"Everyone is pulling in the right direction to make sure Engments
is sold as a viable business that will thrive again in the future
and Baker Tilly is seeking interested parties to take it
forward," Mr. Finnity said, the report adds.

Engments, in Chequers Road, on the West Meadows Industrial
Estate, is a supplier to Derby train-maker Bombardier which has
been operating for more than 50 years.


INSHOPS CENTRES: In Liquidation; Retailers Asked to Vacate
----------------------------------------------------------
Rachel Loxton at Evening Times reports that the future of
Glasgow's Savoy Centre is in doubt after dozens of traders were
told to pack up and leave their shops.

Retailers and other traders at the center were given a week's
notice to vacate the site after InShops Chief Executive Frederic
Bonnet revealed it was going into liquidation, according to
Evening Times.

Mr. Bonnet, the report relates, wrote that InShops Centre Limited
and InShops Starters Limited had, "suffered from increasing
losses and are now unable to generate sufficient cash to allow
them to continue."

Mr. Bonnet added that the firm had been working with advisors to
try and find a solution but despite this, the directors, "have
concluded that the business can no longer continue to trade,"
and, "it is necessary to appoint liquidators to wind up the
companies," the report says.

The report discloses that the shop owners spoke of their shock at
the move -- and now fear for the future.

There are around 60 to 70 traders in the Savoy, which is one of
the city's top indoor markets and is visited by around 47,000
people a week.  Businesses include cafes, furniture shops, food
outlets and clothes shops.

The report relays that other shopping developments run by the
company across the country have also been hit.

Belfast-based property group PBN is the owner of the Sauchiehall
Street site.  However, negotiations are ongoing and it is unclear
exactly what is going to happen, the report notes.

InShops Centres Ltd is a Geraud UK Ltd subsidiary.  Its
headquarters are in Liverpool, where the company's management and
administration teams are based.


KEYDATA: Investors Renew Calls for Inquiry Into Collapse
--------------------------------------------------------
Professional Adviser reports that a group of Lifemark-backed
Keydata bond investors are renewing their efforts to organize a
public inquiry into the collapse of the investment scheme nearly
five years ago, by lobbying their Member of Parliaments to act.

Keydata was put into administration by the then regulator the
Financial Services Authority (FSA) in June 2009 due to liquidity
problems after about GBP300 million had been invested in second-
hand traded life policies, according to Professional Adviser.

The report notes that the Lifemark Bondholder's Action group
wants a formal investigation into what they call the "clumsy" way
the FSA handled the failure.

Peter Hilton, an investor and the group's leader, is calling on
investors to write to their MPs to "remind them of the Keydata
affair and the effect it has had on you", the report notes.

"After four and a half years, we have no answers as to why the
FSA went about bringing down Keydata and Lifemark in the clumsy
way it did," the report quoted Mr. Hilton as saying.

In 2011, the report recalls that the Treasury rejected calls for
it to conduct an independent Keydata inquiry before the FSA's own
investigation into the scandal is completed, the report says.

This investigation -- which Mr. Hilton has branded "grossly
incompetent" -- is still ongoing, and is now being undertaken by
the new regulator the Financial Conduct Authority (FCA), the
report notes.

The FCA said in July that it was "taking steps to restart
disciplinary proceedings against [Keydata founder] Stewart Ford
and Keydata", after Ford' application to appeal a court decision
to allow the regulator to use certain documents to build its case
against him was turned down, the report discloses.

The report says that the Serious Fraud Office and the Luxembourg
authorities have decided that they do not intend to take any
action against the directors of Keydata and/or Lifemark.

Mr. Hilton, the report relays, said there are a number of
complaints about the handling of the Keydata debacle that have
been lodged with the FSA and FCA, but that complainants have been
told these cannot be responded to until the regulator's
investigation is completed.

Keydata Investment Services Ltd. designs, distributes and
administers structured investment products.  Keydata operates
from three locations, being London, Glasgow and Reading and
administers its own products as well as portfolios for third
parties.


LATERAL DESIGN: Goes Through Pre-packaged Administration
--------------------------------------------------------
James Graham at The Business Desk reports that Lateral Design
Concepts has gone through a pre-packaged administration.

The business has been acquired by director Stephen Greenwood from
Manchester-based administrators Kevin Lucas and Fiona Rae of
insolvency specialist Lucas Johnson, according to The Business
Desk.

"The firm has been affected by reduced NHS spending and changes
to a Government mobility scheme for people with disabilities.
European exports also declined and these facts," the report
quoted Kevin Lucas as saying.

Lateral Design Concepts is a Keighley firm that specializes in
adapting vehicles to accommodate wheelchairs.


MANOR PROPERTY LIMITED: In Administration, Business as Usual
------------------------------------------------------------
Hull Daily Mail reports that Manor Property Limited, a property
group linked to a number of stalled developments in Hull, said it
is "business as normal", despite one of its companies going into
administration.

Manor Property Limited is now being run by Leeds-based
administrators Deloitte.

The move follows the separate appointment of liquidators for
another Manor company, Manor Cube (Cambridge) Ltd, just before
Christmas, according to Hull Daily Ma.  There are 32 companies
registered at the group's address in North Ferriby.

"Manor Property Limited was an administration company with no
property assets of its own.  The administration does not impact
on any of the sites in Hull. As far as they are concerned, it is
business as usual," the report quoted an unnamed spokesman as
saying.

The group's portfolio in Hull includes three sites in the city
centre.  They include the derelict Rank Hovis mill next to
Drypool Bridge, the former Heaven and Hell nightclub in Anne
Street and the empty former Co-op store in Jameson Street
according to the report.


PREMIER FOODS: Prepares for GBP300 Million Rights Issue
-------------------------------------------------------
Graham Ruddick at The Daily Telegraph reports that Premier Foods
is preparing to push the button on a GBP300 million rights issue
after handing control of Hovis, the 128-year-old bread brand, to
American investment firm The Gores Group.

Premier, which is battling to reduce a debt pile and pension
deficit of GBP1.3 billion, has sold a 51% stake in Hovis to Gores
for GBP30 million, The Daily Telegraph relays.

The sale is the latest in a line of disposals by Premier to
reduce its debt, The Daily Telegraph notes.  The company has also
sold Branston pickle, Sarson's vinegar and Hartley's jam to
foreign buyers, The Daily Telegraph relates.

The Premier boss admitted that the board is "actively considering
options" about the company's financing, The Daily Telegraph
notes.

Gavin Darby, chief executive of Premier, as cited by The Daily
Telegraph, said the sale of Hovis meant the food company could
now be seen by investors as a "cleaner, simpler story."

The under-pressure Premier Foods, which has been squeezed by
supermarkets and rising commodity prices, will be spun off into a
separate company called Hovis Ltd., The Daily Telegraph relates.
This will include its mills and bakery facilities, which employ
4,000 people, according to the report.

Premier Foods is the maker of Mr. Kipling cakes and Hovis bread.


PUNCH TAVERNS: Jr. Bondholders to Reject Restructuring Proposal
---------------------------------------------------------------
Anil Mayre and Owen Sanderson at Reuters report that three junior
holders and a committee representing senior bondholders of
Punch Taverns' securitized debt said on Monday morning they would
reject a proposed restructuring at an investor meeting scheduled
to take place on Feb. 14.

According to Reuters, in its restructuring proposal launched on
Jan. 15, the company threatened to default if investors fail to
agree to the terms put forward that would cut debt from GBP2.3
billion to GBP1.83 billion and net leverage from 11 to 8.7 times
Ebitda.

Reuters relays that a statement from the four creditor groups
indicates the noteholders see default as an empty threat.

"The Creditors and their advisors have carefully considered the
revised proposals issued by Punch and the related legal documents
made available.  They are unable to support these proposals (in
relation to either Punch A or Punch B) and accordingly will vote
against the proposals at any meetings of the Issuer Companies,"
Reuters quotes three firms and the ABI Noteholder Committee as
saying on Monday morning.

These investors have blocking stakes in the transactions, meaning
they hold large enough majorities of the different classes of the
16 bonds to reject any proposals, Reuters discloses.

According to Reuters, a source close to the bondholder groups
said: "There are issues with the commercial terms, the structure
of the new notes and the documentation."

The company released a notice on Monday in response, noting the
statement from the bondholders, and saying that it continued to
be available to discuss bondholders' views of the restructuring
proposals, Reuters relates.  However, it reiterated that the
proposals were final, Reuters notes.

It also published the debt amortization schedules that were part
of the restructuring proposal outlined on Jan. 15, along with an
invitation for noteholders to contact tabulation agent Deutsche
Bank to get hold of the full terms, Reuters discloses.

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.


SOUTHERN PACIFIC: S&P Affirms 'B-' Rating on Class E Notes
----------------------------------------------------------
Standard & Poor's Ratings Services took various credit rating
actions in Southern Pacific Financing 06-A PLC.

Specifically, S&P has:

   -- Raised to 'AA- (sf)' from 'A+ (sf)' our rating on the class
      A notes;

   -- Raised to 'A+ (sf)' from 'A (sf)' its rating on the class B
      notes; and

   -- Affirmed its ratings on the class C, D1, and E notes.

The rating actions follow S&P's credit and cash flow analysis of
the most recent information that it has received for this
transaction (dated December 2013).  S&P's analysis reflects the
application of its U.K. residential mortgage-backed securities
(RMBS) criteria and its current counterparty criteria.

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

In this transaction, the servicer first allocates any arrears
payments to other amounts owed, then to interest amounts, and
subsequently to principal.  From a borrowers' perspective, the
servicer first allocates any arrears payments to interest and
principal amounts, and then to other amounts owed.  This
difference in the servicer's allocation of payments for the
transaction and the borrower results in amounts outstanding being
greater than delinquencies.

Amounts outstanding have increased for this transaction since Q3
2011.  Acenden references the level of amounts outstanding to
determine the level of 90+ days arrears.  This figure (including
repossessions) has increased to 31.41%.  Total amounts
outstanding have increased to 40.69% of the pool from 37.42% in
December 2012.

The notes in this transaction are currently amortizing
sequentially because the pro rata 90+ days arrears trigger
remains breached.  As the amounts outstanding continue to
increase, S&P considers that the transaction will likely continue
paying principal sequentially.  S&P has incorporated this
assumption in its cash flow analysis.  The transaction benefits
from increased available credit enhancement since S&P's last
review.  This is a result of the reserve fund's nonamortization
as well as sequential note amortization.

S&P has decreased its weighted-average foreclosure frequency
(WAFF) assumptions.  This is primarily due to an increase in
seasoning and the fact that S&P considers delinquencies rather
than amounts outstanding when applying its arrears adjustment.
S&P has increased its weighted-average loss severity (WALS)
assumptions because it expects potential losses to be higher,
given that the servicer first allocates any arrears payments to
other amounts owed.

Rating        WAFF       WALS
level          (%)        (%)

AAA          43.15      45.33
AA           36.53      39.36
A            30.08      29.92
BBB          25.64      24.75
BB           20.68      20.89
B            18.21      14.95

Available credit enhancement for all classes of notes has
increased.  This has offset the pool's increased credit risk, in
S&P's view, and the bank account agreement has been amended in
line with its current counterparty criteria.  S&P has therefore
raised its ratings on the class A and B notes.

S&P has affirmed its ratings on the class C, D1, and E notes as
it considers the ratings to be commensurate with its current
rating stresses.

S&P's credit stability analysis indicates that the maximum
projected deterioration that it would expect at each rating level
over one and three-year periods, under moderate stress
conditions, are in line with its credit stability criteria.

This transaction is backed by non-conforming U.K. residential
mortgages originated by Southern Pacific Mortgage Ltd.

RATINGS LIST

Class       Rating            Rating
            To                From

Southern Pacific Financing 06-A PLC
GBP423.36 Million Mortgage-Backed Floating-Rate Notes Plus
an Overissuance of Mortgage-Backed Floating-Rate Notes

Ratings Raised

A           AA- (sf)          A+ (sf)
B           A+ (sf)           A (sf)

Ratings Affirmed

C           BBB- (sf)
D1          B (sf)
E           B- (sf)


STRATTON SERVICES: Closes Operations Following Administration
-------------------------------------------------------------
Laurence Kilgannon of Insider Media Limited reports that Stratton
Services has ceased trading with the loss of 20 jobs.

Howard Smith -- howard.smith@kpmg.co.uk -- and Mark Firmin --
mark.firmin@kpmg.co.uk -- of KPMG's restructuring team in
Yorkshire were appointed joint administrators of the business on
January 2, 2014.

On the appointment of administrators, the company ceased trading
and 20 employees were made redundant, according to Insider Media
Limited.  The remaining three employees were retained on a
temporary basis to assist the administrators to complete
outstanding orders, the report relates.

"Stratton Services saw a decline in orders, which impacted its
cashflow, and became unable to continue to trade as a going
concern.  We are working to recover the value of the assets of
the business," the report quoted Howard Smith, associate partner
in the restructuring team at KPMG, as saying.

Stratton Services is a Bradford-based designer and manufacturer
of engineered components.


TONE WORLD: In Administration; Continues to Trade
-------------------------------------------------
Shelina Begum of Manchester Evening News reports that a Tone
World Limited has been placed into administration on January 8,
2014.

John Kelly -- john.kelly@begbies-traynor.com -- and Nigel Price
-- nigel.price@begbies-traynor.com -- of business recovery and
insolvency specialists Begbies Traynor are appointed as
administrators.

The business continues to trade while a buyer is sought,
according to Manchester Evening News.

"We're still in the stages of making initial assessments and have
begun marketing the business in the hope that a suitable buyer
can be found," the report quoted Mr. Kelly as saying.

Mr. Kelly, the report relates, said that one of the reasons for
the business failure was that it has become embroiled in an
ongoing legal dispute.

Two members of staff have been made redundant as a result of the
business entering administration, the report notes.

Tone World Limited is a Manchester-based guitar supplier that has
worked with a number of major bands and solo artists.



===================
U Z B E K I S T A N
===================


ORIENT FINANS: S&P Raises Counterparty Credit Rating to 'B-'
------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
counterparty credit rating on Uzbekistan-based Orient Finans Bank
to 'B-' from 'CCC+'.  S&P also affirmed its 'C' short-term
rating. The outlook is stable.

The rating action on Orient Finans Bank reflects S&P's view of
the increasing stability of its revenue base and improving
business position, demonstrated by a jump in both operating
activity and clientele.  S&P consequently revised its assessment
of Orient Finans Bank's business position to "moderate" from
"weak."  The bank's expansion strategies over the past year have
strengthened its competitive position in the currency conversion
business -- a very important revenue source for Uzbek banks.  The
bank's asset base reached Uzbek sum (UZS) 275 billion (US$128
million) as of Sept. 30, 2013, under Uzbek generally accepted
accounting principles (GAAP), compared with UZS198 billion as of
Dec. 31, 2012.  Also, the new branch in the Samarkand region
further diversifies the bank's operations.

Moreover, because Orient Finans Bank has operated for more than
three years, S&P don't consider it a start-up entity.  S&P views
the bank's strategy as sustainable despite its view of potential
risks linked to the bank's continued expansion into lending
activities.

Nevertheless, S&P's assessment of Orient Finans Bank's business
position remains constrained by the following:

   -- The bank's marginal market share in Uzbekistan is only a
      rough 1% of total assets;

   -- S&P sees its client base of 1,300 legal entities and 35,000
      individuals as limited; and

   -- S&P regards the dynamics of the bank's loan book as
      generally unstable.

With low net interest margin in 2013 of about 1.8% under Uzbek
GAAP, net interest income is a marginal contributor to the bank's
operating revenues.  Meanwhile, fee and commission income
represented roughly 95% of preprovision operating revenues for
the first nine months of 2013 under Uzbek GAAP.  This makes
Orient Finans Bank highly vulnerable to the risks associated with
a possible revocation of its foreign currency license.

In S&P's view, high growth rates could squeeze capitalization.
S&P projects that its risk-adjusted capital (RAC) ratio for the
bank, before adjustments for concentrations and diversification,
will decline over the next 18 months to 3.5%-4.0%, versus its
previous estimate of 4%-5%.  Yet, S&P believes that this slight
decrease in the ratio is currently not enough of a contraction to
affect the bank's credit quality.

S&P also incorporates into its ratings its 'b+' anchor for banks
operating predominantly in Uzbekistan and its view of the Orient
Finans Bank's "moderate" business position, "weak" capital and
earnings, "moderate" risk position, "average" funding, and
"adequate" liquidity, as S&P's criteria define these terms.

S&P's stable outlook on Orient Finans Bank reflects its
expectation that the bank's financial profile will remain broadly
unchanged over the next 12 months, mainly because retained
earnings will likely prevent a substantial erosion of capital.

"Because we view the bank's capital position as the main weakness
for the ratings, a deterioration would most likely trigger a
negative rating action.  We could lower the ratings if the bank's
already weak RAC ratio (before adjustments) decreased to below 3%
as a result of insufficient capital build-up to match asset
growth or higher-than-expected losses, which would burden profit
generation.  We could also consider lowering the ratings if the
bank failed to expand its lending activities or did not complete
its planned business expansion," S&P said.

S&P do not expect to raise the ratings on Orient Finans Bank in
the next 12 months.  A positive rating action could occur on the
back of a material and sustainable improvement in the bank's
capitalization, such as an increase in its RAC ratio (before
adjustments) to above 7%, or an improvement in the granularity of
the loan book and deposit bases.  S&P believes these improvements
are unlikely in 2014.



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


* Distressed Debt Hedge Fund Commits US$530 Million to Europe
-------------------------------------------------------------
Alexandra Stevenson, writing for The New York Times' DealBook,
reported that Marathon Asset Management has gained a reputation
for being a rag-and-bone picker, finding opportunities in the
aftermath of financial disaster.

According to the report, Marathon, a US$11 billion hedge fund, is
going scavenging in Europe with a new fund dedicated to
distressed debt on the Continent, hoping to profit from improving
economic prospects in the region.

The US$530 million fund was opened on Jan. 15 and will start with
investments in Spain, Germany and Ireland, according to someone
familiar with the fund's strategy, the report related.

The move comes as European banks continue to offload unwanted
assets amid a new regulatory landscape that has required banks to
hold more cash on their balance sheets, the report said.  It also
follows a handful of hedge funds and private equity firms that
piled into the region last year.

The private equity firms Apollo Global Management and the
Blackstone Group have been fighting over assets in Spain, while
hedge funds like John Paulson's Paulson & Company and Daniel
Loeb's Third Point have been circling assets in Greece, the
report further related.


                            *********

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.


                 * * * End of Transmission * * *