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        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, February 6, 2014, Vol. 15, No. 26

                            Headlines

C Y P R U S

IG SEISMIC SERVICES: S&P Affirms 'B' CCR Over Syntech Buyout Bid


D E N M A R K

SPAR NORD: Moody's Withdraws All Ratings for Business Reasons


F R A N C E

GROUPE VIAL: Files For Collective Insolvency Proceedings
MORY DUCROS: Court to Rule on Arcole's Plan to Take Workers


G R E E C E

HELLENIC VEHICLES: In Receivership After Years of Losses


I R E L A N D

STARTS IRELAND: Moody's Confirms Ba2 Rating on US$50MM Notes
* IRELAND: Donnelly Submits Bill to Reduce Examinership Cost


I T A L Y

BANCA MONTE: Paschi Foundation In Advanced Talks to Sell Stake


K A Z A K H S T A N

BTA BANK: Moody's Hikes Deposit Ratings to B3; Outlook Positive
NOSTRUM OIL: Moody's Rates US$400MM Notes 'B2'; Outlook Stable


M A L T A

FANTASY TOURS: Declared Bankrupt by Court


N E T H E R L A N D S

DTEK FINANCE: Moody's Confirms 'Caa1' CFR; Outlook Negative


P O L A N D

COGNOR SA: S&P Lowers CCR to 'SD' on Distressed Bond Exchange


R O M A N I A

TRANSELECTRICA SA: Moody's Affirms Ba2 CFR; Outlook Stable


R U S S I A

DOZHD: Struggles After Losing Main Cable Provider
YAKUTSKENERGO: Fitch Withdraws 'BB' Issuer Default Rating


S L O V E N I A

SID BANKA: Moody's Affirms Ba1 Rating & Revises Outlook to Stable


U K R A I N E

KYIV: Moody's Lowers Currency Rating to 'Caa2'; Outlook Negative
KHARKIV: Moody's Lowers Rating to 'Caa2'; Outlook Negative


U N I T E D   K I N G D O M

APPLEGUILD LIMITED: Court Enters Liquidation Order
EMG DIECUTTING: SFP Appointed as Administrators
PUNCH TAVERNS: Urges Lenders to Support Debt Restructuring Deal
SEADRILL PARTNERS: Moody's Assigns 'Ba3' CFR; Outlook Stable
SEADRILL PARTNERS: S&P Assigns Prelim. 'BB-' CCR; Outlook Stable

SPEED-E-LOANS: Unsecured Creditors Await Payout


                            *********


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C Y P R U S
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IG SEISMIC SERVICES: S&P Affirms 'B' CCR Over Syntech Buyout Bid
----------------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'B'
long-term corporate credit rating on Cyprus-registered IG Seismic
Services PLC (IGSS) and its Russia-based core subsidiary GEOTECH
Seismic Services JSC.  The outlook is positive.  S&P also
affirmed its 'ruA' Russia national scale rating on GEOTECH.

The affirmation follows a January offer from UCE Syntech Holdings
(Syntech), a venture ultimately owned by Nikolay Levitsky, the
key shareholder and CEO of IGSS, to buy the shares in IGSS it
does not already own.

S&P believes that to finance the purchase Syntech shareholders
would raise up to US$244 million in long-term debt without any
recourse to IGSS.

S&P understands from IGSS' management that the offer is not going
to change IGSS' liquidity, strategy, or financial policy, notably
with regard to shareholder distributions.

It is unclear yet if the transaction will proceed, and even if it
does, how many shares will be purchased.  S&P understands that
the offer price is on par with the market price, without any
premium.

"We assess IGSS' financial risk profile as "highly leveraged,"
and see this as the main constraint on the current rating.  We
believe the high volatility and seasonality of IGSS' business
requires stronger financial metrics than more stable businesses,"
S&P said.

"We assess IGSS business risk profile as "weak." The Russian
seismic industry is a niche market with high seasonality and
volatility, in our view.  IGSS is a fairly small group, operating
mostly on short-term contracts which, in our view, could affect
its pricing power and competitive position.  Still, we see as
mildly positive the fact that IGSS has a leading position in this
small market because its technology is more advanced than local
competitors, it has technological support from its shareholder
Schlumberger, and difficult logistics and local regulation create
barriers to market entry.  We expect the Russian seismic market
to grow from its current low level as the country's key oil
provinces mature and oil companies use more advanced
technologies, such as high-density seismic services.  This,
together with a gradual increase in the share of long-term
contracts, could support IGSS' revenue growth and profitability,"
S&P added.

The positive outlook reflects the possibility that S&P might
consider a positive rating action if IGSS' financial risk profile
gradually improved.  For this, the takeover, should it proceed,
should not create any contingent liabilities for the group and
should not trigger any large shareholder distributions.  An
upgrade could happen if growth in the Russian seismic market
reduced volatility in the group's financial metrics and supported
deleveraging via higher profits and cash flows.

The might consider a positive rating action if IGSS' financial
risk profile improved to "aggressive" from "highly leveraged"
under S&P's criteria, that is if FFO to debt was consistently
above 20%, taking into account the high volatility of the
company's metrics.  This could happen if the seismic market
improvement continues to support IGSS' cash flow generation and
deleveraging.  An upgrade would require no deterioration in the
group's liquidity, no significant contingent liabilities for IGSS
as a result of the takeover offer, and no aggressive shifts in
the strategy and financial policy, notably with regard to
shareholder distributions.

S&P could revise the outlook to stable if the group's liquidity
weakened or if the offer created such large contingent
liabilities for IGSS that FFO to debt was unlikely to recover to
above 20% in the next 12-18 months.  S&P could also revise the
outlook to stable in the event of slower-than-expected market
growth or a decrease in demand for the more expensive and complex
services IGSS offers.  Negative pressure could also arise from
large acquisitions or sizable shareholder distributions.



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D E N M A R K
=============


SPAR NORD: Moody's Withdraws All Ratings for Business Reasons
-------------------------------------------------------------
Moody's Investors Service announced that it withdrew all ratings
of Spar Nord Bank A/S for business reasons.

At the time of withdrawal, Spar Nord Bank A/S' ratings are as
follows:

Bank financial strength rating of D+ with a stable outlook

Baseline Credit Assessment of ba1

Adjusted Baseline Credit Assessment of ba1

Long-term local and foreign currency deposit ratings of Ba1 with
a stable outlook

Senior Unsecured MTN foreign of (P)Ba1

Junior Subordinate MTN foreign of (P)Ba3

Pref. Stock Domestic of B1(hyb) with a stable outlook

Short-term local and foreign currency deposit ratings of NP

Other Short Term Foreign of (P)NP

Ratings Rationale

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

The principal methodology used in this rating was Global Banks
published in May 2013.

Headquartered in Aalborg, Denmark, Spar Nord Bank A/S reported
total consolidated assets of around DKK75,080 million (EUR10,100
million) at the end of September 2013.



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F R A N C E
===========


GROUPE VIAL: Files For Collective Insolvency Proceedings
--------------------------------------------------------
Groupe VIAL said that on Jan. 24, 2014, the Board of Directors
decided to request that collective insolvency proceedings be
initiated with regard to Groupe VIAL and its operating
subsidiaries, the aim of this move being to provide the Group
with increased flexibility regarding the reimbursement of its
fiscal, social and institutional debts.

Following its rulings of Feb. 3, 2014, the Toulon Commercial
Court has therefore initiated insolvency proceedings with regard
to GROUPE VIAL, VIAL MENUISERIE, VIAL PORTES, VIAL PVC ALU and
PLATEFORME DES MENUISERIES DU SUD.

These technical procedures follow discussions held with the
institutional and bank creditors of the various Groupe VIAL
companies, and are aimed at ensuring the company's future whilst
protecting all of its jobs.

They should thus enable Groupe VIAL to preserve its cash position
and the VIAL Menuiseries stores and factories to continue
operating as normal.

Prior to the launch of these collective insolvency proceedings,
Groupe VIAL asked the NYSE Euronext Paris to suspend trading in
its shares (FR0010340406 -- VIA) from Jan. 31, 2014, after market
and until further notice.

Groupe VIAL's Board of Directors met on Jan. 31, 2014, to close
the accounts to Dec. 31, 2012. The decision was taken to hold the
Annual Shareholders' Meeting to approve these accounts on
March 26, 2014, from 3:00 p.m. (Paris time).

Paris-based Groupe Vial -- http://www.groupe-vial.com/--
manufactures and distributes millwork and joinery products.


MORY DUCROS: Court to Rule on Arcole's Plan to Take Workers
-----------------------------------------------------------
Andrew Roberts at Bloomberg News, citing Le Figaro, reports that
a commercial court in Pontoise will rule today, Feb. 6, on the
plan by Mory Ducros's owner Arcole Industries to take on 2,210 of
the company's employees.

According to Bloomberg, Le Figaro said that Arcole's offer was
conditional upon the agreement of the CFDT, the company's largest
labor union.

As reported by the Troubled Company Reporter-Europe on Feb. 3,
2014, Reuters related that unions at Mory-Ducros agreed to a deal
that saves 2,150 jobs but offers little solace to French
President Francois Hollande's efforts to reduce unemployment.
Workers at Mory-Ducros had been locked in dispute with majority
shareholder Arcole for weeks, occupying several company sites
after the courier business filed for bankruptcy in November and
launched a restructuring program that put 5,200 jobs in jeopardy,
Reuters disclosed.  According to Reuters, the deal with unlisted
industrial holding group Arcole protects 2,150 jobs and improves
severance terms for the more than 3,000 employees who still face
redundancy.  In a statement, six unions said they had agreed to
lift their blockade and signed off on the new deal, in which
Arcole promises to raise its total payout for redundancies to
EUR30 million (US$40.93 million) from EUR21 million, Reuters
relayed.

Mory-Ducros is France's second biggest courier business.



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G R E E C E
===========


HELLENIC VEHICLES: In Receivership After Years of Losses
--------------------------------------------------------
Theodore L. Valmas at IHS Jane's 360 reports that Hellenic
Vehicles Industry S.A. has gone into receivership, after years of
losses, following a ruling by the Thessaloniki Court of Appeals
on Jan. 30.

The decision follows a petition by the Greek State to apply
article 14A of Law 3249/2005 and place the company in special
receivership, IHS Jane's 360 relays.

ELVO has recorded aggregate losses of EUR100 million in 2006-13
and owes EUR48 million to suppliers and banks, IHS Jane's 360
discloses.  IHS Jane's 360 notes that although the company is
state-owned, a cash injection by the Greek State is not seen as
feasible, given European Union laws on state aid and subsidies,
IHS Jane's 360 states.

Ernst & Young are to be appointed as receivers, IHS Jane's 360
relates.

Hellenic Vehicles Industry S.A. is a Greek state-owned armoured
vehicle maker.



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I R E L A N D
=============


STARTS IRELAND: Moody's Confirms Ba2 Rating on US$50MM Notes
------------------------------------------------------------
Moody's Investors Service announced the following rating action
on Starts (Ireland) PLC Series 2007-31:

Issuer: Starts (Ireland) PLC Series 2007-31

Series 2007-31 USD50,000,000 Class A2-D2 AAA/Aaa Rated Floating-
Rate Credit-Linked Notes due 2017, Confirmed at Ba2 (sf);
previously on November 19, 2013 Ba2 (sf) Placed Under Review for
Possible Downgrade

This transaction is a corporate synthetic collateralized debt
obligation (CSO) referencing a portfolio of corporate senior
unsecured bonds, originally rated in 2007.

Ratings Rationale

The actions reflect key changes to Moody's modeling assumptions,
which incorporate 1) removing the 30% macro default probability
stress for corporate credits, 2) lowering the average recovery
rate assumptions for most types of debt, 3) modifying the
modeling framework for corporate asset correlations, 4)
introducing an adverse selection adjustment on default
probabilities where relevant, and 5) simplifying the cheapest-to-
deliver haircut that applies to recoveries. This action concludes
the review of the CSO, announced on 19 November 2013, because of
its update to the CSO methodology.

Although the key changes in modeling assumptions resulted in
lower modeled results, the effect is mitigated by a higher
remaining subordination given the CSO's time to maturity relative
to expectations since the last rating action. The remaining time
to maturity of the transactions is 3.4 years and the attachment
point is 7.35%, based on the trustee's December 2013 report.

The portfolio's ten-year weighted average rating factor (WARF) is
723, excluding settled credit events. Moody's rates the majority
of the reference credits investment grade, with 3.0% rated Caa
(sf) or lower. In addition, the number of reference credits with
a negative outlook is 22, compared to four with a positive
outlook; there are no reference credits on review for downgrade,
compared to one on review for upgrade.

The average gap between MIRs and Moody's senior unsecured ratings
is -0.8 notches for over-concentrated sectors and 1.0 notch for
non-over concentrated sectors. Currently, the over-concentrated
sectors are Banking, Finance, Insurance and Real Estate
comprising 36% of the portfolio.

Based on the trustee's December 2013 report, six credit events,
equivalent to 6.4% of the portfolio based on the portfolio's
notional value at closing, have taken place. Since inception, the
subordination of the rated tranche has declined by 2.05% due to
credit events on Fannie Mae, Freddie Mac, Lehman Brothers, CIT
Group and PMI Group, net of trading gains and losses.

Methodology Underlying the Rating Action

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

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

These transactions are subject to a high level of uncertainty,
primarily because of 1) unexpected volatility in the credit and
macroeconomic environment; 2) divergence in the legal
interpretation of documentation by different transactional
parties because of embedded ambiguities; and 3) unexpected
changes in the portfolio composition as a result of the actions
of the transaction parties.

For CSOs, the performance of the credit default swaps can be
affected either positively or negatively by 1) variations over
time in default rates for instruments with a given rating; 2)
variations in recovery rates for instruments with particular
seniority/security characteristics; and 3) uncertainty about the
default and recovery correlations characteristics of the
reference pool. Given the tranched nature of CSO liabilities,
rating transitions in the reference pool can have leveraged
rating implications for the ratings of the CSO liabilities that
could lead to a high degree of rating volatility, which is likely
to be higher for the more junior or thinner liabilities.

In addition to the base case analysis described above, Moody's
also conducted sensitivity analyses, discussed below. Results are
in the form of the difference in the number of notches from the
base case, in which a higher number of notches corresponds to
lower expected losses, and vice-versa.

Moody's ran a scenario in which it reduced the maturity of the
CSO by six months keeping all other things equal. The result of
this run was 0.5 notches higher than in the base case.

Moody's conducted a sensitivity analysis in which the adverse
selection adjustment is removed and MIRS are modeled in place of
the corporate fundamental ratings to derive the default
probability of the reference entities in the portfolio. The
result of this run was 3.0 notches higher than in the base case.

Moody's conducted a stress analysis in which it defaulted all
entities rated Caa or lower. The result was 0.4 notches lower
than in the base case.

In addition to the quantitative factors Moody's models
explicitly, rating committees also consider qualitative factors
in the rating process. These qualitative factors include a
transaction's structural protections, recent deal performance in
the current market environment, the legal environment, specific
documentation features and the portfolio manager's track record.
All information available to rating committees, including
macroeconomic forecasts, input from other Moody's analytical
groups, market factors, and judgments regarding the nature and
severity of credit stress on the transactions, can influence the
final rating decision.


* IRELAND: Donnelly Submits Bill to Reduce Examinership Cost
------------------------------------------------------------
Tom Lyons at The Irish Times reports that Independent TD Stephen
Donnelly was set to submit a bill to the Oireachtas yesterday
aimed at cutting the average cost of examinership from more than
EUR70,000 to EUR20,000.

Mr. Donnelly told The Irish Times he believed current
examinership legislation to allow firms restructure their debts
was unsuitable for small businesses.

"Last year, banks put 360 businesses into receivership but only
about 21 firms opted for examinership.  Clearly the system is
broken," The Irish Times quotes Mr. Donnelly as saying.

Mr. Donnelly, as cited by The Irish Times, said his proposed
legislation would reduce the cost of examinership by allowing
business owners and creditors to interact outside the courtroom
first to try and agree a rescue deal, before going to court at
the end to receive its approval for any rescue plan.

The former management consultant said his proposal would give
more powers to examiners by allowing them impose lending
conditions on secured lenders and impose changes in leases in
order to allow more SMEs to survive, The Irish Times relates.

According to The Irish Times, Mr. Donnelly said that creditors
can still appeal to the courts if they feel they are being
treated unfairly but in many cases this will not required.



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I T A L Y
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BANCA MONTE: Paschi Foundation In Advanced Talks to Sell Stake
--------------------------------------------------------------
Sonia Sirletti and Elisa Martinuzzi at Bloomberg News report that
Fondazione Monte dei Paschi di Siena is in advanced talks mainly
with foreign investors to sell its stake in Banca Monte dei
Paschi di Siena SpA while there are no discussions with Italy's
foundations.

According to Bloomberg, Fondazione Monte dei Paschi di Siena
Chairman Antonella Mansi favors strategic buyers for the stake
though she hasn't ruled out any potential suitors.

Ms. Mansi, 39, is trying to bolster the non-profit foundation's
finances after debt mounted as it borrowed to back Monte Paschi's
capital-raisings, Bloomberg notes.

Now, the foundation and its adviser, Lazard Ltd., are seeking
buyers for its shares to repay about EUR450 million (US$608
million) in loans and avoid a default, Bloomberg says.

Ms. Mansi didn't identify the investors she's in talks with, nor
did she elaborate on the price the foundation is seeking for the
stock, Bloomberg notes.  Ms. Mansi, as cited by Bloomberg, said
that the foundation may sell shares to one or more investors.

Ms. Mansi said that the ideal solution for the foundation would
be to keep a small stake in the lender, raising enough funds to
pay back debt and contribute to Monte Paschi's planned EUR3
billion capital increase to avoid a big dilution, Bloomberg
relays.

According to Bloomberg, while Ms. Mansi is trying to reduce the
stake, the bank is under pressure by regulators to repay state
aid by the end of the year.  Ms. Mansi opposed management's
proposal to sell stock in January at a Dec. 28 investors' meeting
to allow the foundation to have more time to find buyers,
Bloomberg states.

Banca Monte dei Paschi di Siena SpA -- http://www.mps.it/-- is
an Italy-based company engaged in the banking sector.  It
provides traditional banking services, asset management and
private banking, including life insurance, pension funds and
investment trusts.  In addition, it offers investment banking,
including project finance, merchant banking and financial
advisory services.  The Company comprises more than 3,000
branches, and a structure of channels of distribution.  Banca
Monte dei Paschi di Siena Group has subsidiaries located
throughout Italy, Europe, America, Asia and North Africa.  It has
numerous subsidiaries, including Mps Sim SpA, MPS Capital
Services Banca per le Imprese SpA, MPS Banca Personale SpA, Banca
Toscana SpA, Monte Paschi Ireland Ltd. and Banca MP Belgio SpA.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on Sept. 18,
2013, Fitch downgraded MPS's Viability Rating (VR) to 'ccc' from
'b' and removed it from Rating Watch Negative (RWN).

TCR-Europe also reported on June 19, 2013, that Standard & Poor's
Ratings Services lowered its long-term counterparty credit rating
on Italy-based Banca Monte dei Paschi di Siena SpA (MPS) to 'B'
from 'BB', and affirmed the 'B' short-term rating.  S&P also
lowered its rating on MPS' Lower Tier 2 subordinated notes to
'CCC-' from 'CCC+'.  S&P affirmed the ratings on MPS' junior
subordinated debt at 'CCC-' and on its preferred stock at 'C'. At
the same time, S&P removed the ratings from CreditWatch, where it
placed them with negative implications on Dec. 5, 2012.



===================
K A Z A K H S T A N
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BTA BANK: Moody's Hikes Deposit Ratings to B3; Outlook Positive
---------------------------------------------------------------
Moody's Investors Service has upgraded BTA Bank's long-term
local- and foreign-currency deposit ratings to B3 from Caa1.
Concurrently, Moody's raised the corresponding baseline credit
assessment (BCA) to caa2 from caa3. The rating agency affirmed
BTA Bank's standalone E bank financial strength rating (BFSR) and
Not Prime short-term ratings. Moody's current assessment of a
moderate probability of systemic support results in two notches
uplift above the BCA of caa2. The outlook on the bank's long-term
deposit ratings was revised to positive from developing, while
the outlook on the BFSR remains stable.

Moody's rating action on BTA Bank is driven by restored
capitalization, improved pre-provision earnings, and diminished
refinancing risks following the bank's recent restructuring, and
its better loss absorption cushion compared to low rated peers in
its domicile (Kazakhstan).

The positive outlook on the long-term deposit ratings reflects
the anticipated acquisition of a controlling stake in BTA Bank by
Kazkommertsbank (deposits B2 stable, BFSR E/BCA caa1 stable) and
their plans for a subsequent merger -- under a preliminary non-
binding agreement, announced at end December 2013 -- which
Moody's believes will be credit positive for BTA Bank's
development.

Ratings rationale

Standalone rating

BTA Bank reported restored capitalization and pre-provision
earnings following the restructuring in December 2012, which
included the cancellation of existing debt, a debt-to-equity
conversion as well as the issuance of longer-maturity bonds. The
restructuring resulted in BTA Bank's capital being restored with
a current shareholder equity-to-assets ratio of 18.2% and a Total
Capital Adequacy ratio under Basel II of 24.9% as of 1 October
2013, compared to a deficit at mid-2012.

BTA Bank's pre-provision earnings also recovered as a result of
improved net interest margin on the back of (1) increased
interest rates on Kazakhstan's National Welfare Fund (Samruk-
Kazyna) bonds held by BTA Bank to 6% from 4%; and (2) reduced
liabilities following the debt restructuring. The bank reported
operational breakeven in 2013, with core recurrent revenues (net
interest income and commissions) covering operating expenses.
However, its net interest margin -- at 1.5% -- is still below the
Kazakh peer average because of the high volume of non-performing
loans. The difference in accrued and received interest income is
high at 25%, thus diminishing the quality of BTA Bank's earnings.
Moody's is concerned about the ability of the bank to generate a
strong and good quality loan portfolio to secure an adequate
level of earnings.

BTA Bank's high level of problem loans (87% of gross loans under
Moody's estimate) is adequately covered by loan loss reserves
(74.8% of gross loans) as of Q3 2013. The bank's loan loss
reserve coverage of problem loans at 85.8% and enhanced total
loss absorption cushion, including high capital, compare it
favorably to peers. Moody's believes that further new loan loss
provision requirements will depend on BTA Bank's ability to work
out problem loans and generate a good quality loan portfolio.

BTA Bank's refinancing risks have diminished following the
partial write-off and extended maturity of market borrowings.
Current wholesale debt securities reduced to 5.7% of liabilities
as of end-Q3 2013 from 34% as of year-end 2011.

Systemic Support

Moody's incorporates a moderate probability of systemic support
into BTA Bank's deposit ratings given the bank's significant
market share in the Kazakh banking system and its government
ownership. As a result of this support assessment, BTA Bank's B3
deposit ratings receive two-notches of uplift from its caa2 BCA,
in accordance with Moody's joint default analysis methodology.

Rating Outlook

Moody's believes that the preliminary agreement of
Kazkommertsbank taking control over BTA Bank, and plans for the
further potential merger of two banks are credit positive for BTA
Bank. The rating agency expects that, as a result of the
transaction, BTA Bank will benefit from cost optimization and
potential improvement in profitability aided by Kazkommertsbank's
stronger market position and customer franchise, lower level of
problem loans and, thus, better pre-provision income generation
capacity. In addition, the potential merger will not result in
any changes in Moody's systemic support considerations, given the
large market share of the newly combined bank in the Kazakh
banking sector. Consequently, the deposit ratings carry a
positive outlook.

What Could Move The Ratings Up/Down

Upwards pressure might develop on BTA Bank's standalone and
deposit ratings if the bank completes the merger with
Kazkommertsbank and improves its financial fundamentals by
restoring recurring operating profitability at sustainable
levels.

Downwards pressure might develop on BTA Bank's rating and outlook
if the agreement on Kazkommertsbank acquisition of BTA Bank's
stake and potential merger doesn't take place.

Principal Methodologies

The principal methodology used in this rating was Global Banks
published in May 2013.


NOSTRUM OIL: Moody's Rates US$400MM Notes 'B2'; Outlook Stable
--------------------------------------------------------------
Moody's Investors Service has assigned a B2 rating and a Loss
Given Default (LGD) score of 4 (53%) to the proposed US$400
million of notes to be issued by Nostrum Oil & Gas Finance B.V.
(the issuer) and jointly guaranteed on a senior basis by its
indirect 100% parent, Nostrum Oil & Gas LP, and all of its
subsidiaries (the guarantors). Concurrently, Moody's has affirmed
Nostrum Oil & Gas's corporate family rating (CFR) and probability
of default rating (PDR) at B2 and B2-PD, respectively. The
outlook on the ratings is stable.

"The rating assignment directly reflects Nostrum Oil & Gas's
rating," says Julia Pribytkova, a Moody's Vice President-Senior
Analyst and lead analyst for the issuer. "The proposed notes will
be the issuer's and the guarantors' senior obligations and will
rank equally with all of the issuer's and the guarantors' other
senior indebtedness."

The proceeds from the issuance will be used for the sole purpose
of financing a loan to Zhaikmunai LLP, a Kazakhstan-incorporated,
100% indirectly owned operating subsidiary of Nostrum Oil & Gas.
Moody's understands that, following the issue, Zhaikmunai LLP
will substitute Nostrum Oil & Gas Finance as the issuer of the
notes, in line with the approach taken for the two existing
issues.

The noteholders will benefit from certain restrictive covenants,
including a negative pledge and restrictions on mergers and
disposals.

Ratings rationale

Assignment of b2 rating to proposed notes

The assignment of a B2 rating to the proposed US$400 million in
notes to be issued by Nostrum Oil & Gas Finance is in line with
Nostrum Oil & Gas's CFR, which is solidly positioned at B2. The
B2 CFR reflects the group's (1) relatively modest scale of
operations by international standards (with current average daily
production of approximately 45 thousand barrels of oil equivalent
per day); (2) high field concentration with one field currently
in operation; (3) the company's large-scale investment plan,
which includes Phase 2 of its gas treatment facility (GTF) and an
extensive drilling program planned for the medium term; and (4)
exposure to Kazakhstan's country and operational risks.

More positively, the rating also acknowledges (1) the substantial
improvement in Nostrum Oil & Gas's operating and financial
metrics, following an increase in the company's oil production
and the launch of Phase 1 of its GTF; (2) the company's positive
track record of implementing large investment projects; (3)
Nostrum Oil & Gas's good field geology, which accounts for the
company's strong re-investment metrics and low production costs;
and (4) its conservative financial profile and liquidity
management.

In the 2014-16 period, Nostrum Oil & Gas expects to invest
approximately US$1.2 billion into (1) the construction of Phase 2
of its GTF and (2) the exploration and development of traditional
and new fields. Following completion, the GTF will have a
capacity of 4.2 billion cubic meters (bcm), up from 1.7 bcm
currently, and will help to double production at the
Chinarevskoye field. The company intends to further grow its
reserves base via investment into licenses and appraisal
exploration activities aimed at transferring possible and
probable reserves into proved reserves.

As Nostrum Oil & Gas expects to be able to fund the GTF project
with internally generated cash flows and available cash balances
at oil prices above US$85/barrel, it will instead utilize the
proceeds of the new notes primarily to repurchase the outstanding
US$92.5 million of its 10.5% per annum senior unsecured notes due
2015. The company will use the amount remaining from the proposed
issuance to (1) finance the purchase of the subsoil use rights to
new oil and gas fields in Kazakhstan; and (2) underpin the
company's liquidity position during the active investment phase.
The proposed new issuance will help to defer all debt maturities
beyond the completion of the investment period, and maintain a
cash cushion in excess of US$100.0 million at all times.

The stable outlook on Nostrum Oil & Gas's ratings reflects
Moody's expectation that there will be no movement in the
company's rating over the short term, taking into consideration
the active investment stage of the GTF project and exploration
activity. Moody's expect the company's financial metrics,
including leverage, to remain consistent with our expectations
for the current rating category following completion of the
tender offer and the new issuance.

What Could Change The Rating Up/Down

The ratings would experience positive pressure if Nostrum Oil &
Gas were to demonstrate an ability to (1) efficiently implement
Phase 2 of the GTF project with minimal cost overruns and
construction delays; (2) sustainably grow production and
feedstock base for the increasing GTF capacity in the medium
term; (3) adhere to conservative financial policies, and (4)
maintain strong liquidity.

Moody's could downgrade the ratings as a result of any
developments that weaken Nostrum Oil & Gas's operational or
financial profile, including (1) a decline in production; (2)
continuous failure to replenish its reserves; (3) a deterioration
in its liquidity and financial profile; and (4) the imposition by
the Government of Kazakhstan of material regulatory and/or
contractual changes adversely affecting the economics of Nostrum
Oil & Gas's operations.

Principal Methodology

The principal methodology used in this rating was the Global
Independent Exploration and Production Industry published in
December 2011. Other methodologies used include Loss Given
Default for Speculative-Grade Non-Financial Companies in the US,
Canada and EMEA published in June 2009.

Nostrum Oil & Gas LP (formerly known as Zhaikmunai LP), domiciled
in the Isle of Man, United Kingdom, is an independent exploration
and production oil and gas company operating in North-Western
Kazakhstan through its fully-owned subsidiary Zhaikmunai LLP. The
company's primary field and license area is the Chinarevskoye
Field located in the northern part of the Pre-Caspian Basin. For
the nine months ended September 30, 2013, Nostrum Oil & Gas
reported revenue US$657 million and EBITDA of US$412 million.



=========
M A L T A
=========


FANTASY TOURS: Declared Bankrupt by Court
-----------------------------------------
Malta Independent reports that a court formally declared
Fantasy Tours and its parent company Golden Travel Ltd. bankrupt.

The decision was given on Tuesday following an application by
company directors and shareholders Karl and his estranged wife
Audrey Camilleri, Malta Independent relates.

According to Malta Independent, Mr. Justice Joseph Zammit McKeon
noted that he was satisfied that parent company Golden Travel Ltd
was not in a position to pay its debts.

The court was therefore ordering the dissolution of the company,
Malta Independent says.  Dr. Richard Galea Debono was appointed
liquidator, Malta Independent discloses.

Fantasy Tours is a travel agency based in Malta.



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


DTEK FINANCE: Moody's Confirms 'Caa1' CFR; Outlook Negative
-----------------------------------------------------------
Moody's Investors Service has confirmed the Caa1 corporate family
rating (CFR) and the Caa1-PD probability of default rating (PDR)
of DTEK Holdings B.V. (DTEK). Moody's has also confirmed the Caa1
senior unsecured bond ratings of DTEK Finance B.V. and DTEK
Finance Plc, fully owned finance subsidiaries of DTEK.
Concurrently, the rating agency assigned a negative outlook to
all the ratings.

This concludes the review initiated by Moody's on September 24,
2013.

The rating action follows Moody's decision to downgrade Ukraine's
government bond rating by one notch to Caa2 from Caa1 and assign
a negative outlook to the rating on January 31, 2014, while the
Caa1 foreign-currency bond country ceiling remains at Caa1.

Ratings Rationale

The confirmation of DTEK's rating reflects Moody's view that
DTEK's rating remains constrained by the Ukrainian foreign
currency bond country ceiling of Caa1. Absent such a constrain
DTEK would have a rating higher than Caa1, given the company's
sustainable business of a large, vertically integrated utility
and moderate leverage. As a result, DTEK's rating is one notch
above the sovereign rating.

In Moody's view, DTEK's capacity to service its foreign currency
debt is substantially exposed to actions that may be taken by the
Ukrainian government to preserve the country's foreign-exchange
reserves and earnings. Although DTEK's Ukraine-based business
generates foreign currency in an amount exceeding its current
debt-servicing needs, Moody's believes that the company's
revenues and cash flows generated both inside and outside of the
country could be exposed to foreign-currency transfer and
convertibility risks, which are reflected in the Caa1 ceiling.
Moody's notes that DTEK has trading operations and cash balances
outside of Ukraine. However, the rating agency believes they are
not sufficient to warrant a rating higher than the country
ceiling given the risk that the company may be stopped from using
export revenues to service foreign currency debt.

Though Moody's estimated that DTEK's financial metrics weakened
in 2013 under pressure from challenging economic conditions and a
large capital expenditure program, the agency believes that the
company has headroom within the current rating category with
regard to the metrics. At the same time, we note that DTEK's
liquidity profile remains dependent on the company's access to
external funding, ability to implement capital expenditure plans
in line with cash flow generation and to control its foreign
currency risk by ensuring that its debt-service costs are more
than covered by available cash generated by export revenues.

The outlook on the ratings is negative reflecting the negative
outlook on Ukraine's sovereign rating and the consequent risk of
a downgrade of the foreign-currency bond country ceiling.

What Could Move The Rating Up/Down

Given the negative outlook, Moody's does not currently expect
upward pressure on DTEK's rating. However, Moody's could upgrade
the rating if (1) it raises the Ukrainian foreign-currency bond
country ceiling; and (2) DTEK continues to deliver strong
operating performance, increases export revenues and maintains a
good liquidity position and long-term debt maturity profile. As
DTEK's integrated electric utility business is focused on
Ukraine, the company's rating will be ultimately dependent on
further developments at the sovereign level.

Conversely, downward pressure could be exerted on DTEK's rating
as a result of a further downgrade of the sovereign rating and
lowering of the foreign-currency bond country ceiling. The
ratings could also face downward pressure if DTEK's financial
profile deteriorates materially and sustainably from its last-
twelve-months level as of mid-2013 and/or Moody's believes that
the company's liquidity position may be stressed.

The methodologies used in these ratings were Unregulated
Utilities and Power Companies published in August 2009, and Loss
Given Default for Speculative-Grade Non-Financial Companies in
the U.S., Canada and EMEA published in June 2009.

Headquartered in Donetsk and Kyiv, DTEK is one of the major
energy companies in Ukraine and part of a financial and
industrial group System Capital Management (SCM). DTEK generated
revenue of UAH82.6 billion, or US$10.3 billion, including heat
tariff compensation, in 2012. DTEK's H1 2013 revenue, including
heat tariff compensation, and net profit were UAH43.8 billion, or
US$5.5 billion, and UAH1.2 billion, or US$149.8 million,
respectively.



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


COGNOR SA: S&P Lowers CCR to 'SD' on Distressed Bond Exchange
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
term corporate credit rating on Poland-based steel maker Cognor
S.A. to 'SD' (selective default) from 'CC', and its short-term
corporate credit rating on Cognor to 'SD' from 'C'.

At the same time, S&P reinstated its 'CC' issue rating on the
EUR118 million senior secured notes, due Feb. 1, 2014, issued by
Cognor's subsidiary Zlomrex International Finance S.A.  Due to an
error, the senior secured notes were marked as "not rated" in
S&P's systems on Feb. 1, 2014.  S&P subsequently lowered the
issue rating on the EUR118 million senior secured notes to 'D'
(default) from 'CC'.

The downgrade follows Cognor's announcement on Jan. 28, 2014,
that a court has recognized the "scheme of arrangement" under
which the company will exchange the EUR118 million outstanding of
its senior secured notes due Feb. 1, 2014, for new senior secured
and exchangeable notes.

According to S&P's criteria, it views this as a distressed
exchange and tantamount to a default.  This is because, under the
new offer, the interest rates for the new notes are lower than
the original yield, the new notes' maturities (to 2019 and 2020)
extend beyond the original maturity date, and the exchangeable
notes will be subordinated in the capital structure.

S&P expects to raise its long-term rating on Cognor to 'CCC+' or
'B-' once the transaction is completed and S&P has received
further information from the company.  In S&P's view, the higher
rating should be supported by Cognor's ability to generate
positive free operating cash flow, helping the company to reduce
debt, as well as its extended debt maturity profile.



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


TRANSELECTRICA SA: Moody's Affirms Ba2 CFR; Outlook Stable
----------------------------------------------------------
Moody's Investors Service has affirmed Transelectrica S.A.'s Ba2
long-term corporate family rating and Ba2-PD probability of
default rating (PDR). The outlook on the ratings has been changed
to stable, from negative. There is no rated debt outstanding.

Ratings Rationale

"Transelectrica's stabilized outlook reflects progress made by
the company to strengthen its liquidity position, notably
bolstered by the RON200 million bond issued in December 2013 that
helped to reduce a reliance on short-term bank debt," says
Nicholas Stevens, Moody's lead analyst for Transelectrica.
"Transelectrica still has some work to do in order to create a
structurally stable liquidity base, such as signing material
multi-year committed liquidity facilities, but it has now
accessed the domestic bond market and is expected to repeat this
in the latter half of 2014," adds Mr. Stevens.

Transelectrica has historically relied on development bank
funding for defined capital projects, making up the majority of
outstanding debt, and relatively shorter term bank finance in
order to fund its ongoing capital expenditure program. Moody's
considers that this reliance on bank finance, in absence of
committed bank facilities, exposes the company to liquidity risk
in the event of any market disruption. By accessing domestic
investors through public bond issuance, Transelectrica has gone
some way to diversifying its funding sources and is now
sufficiently funded for the capital program over the next 15
months. While this approach is not ideal, as it requires pre-
funding annual net expenditure and retaining cash on the balance
sheet, it provides the company with good visibility of available
cash sources.

In addition, Transelectrica has demonstrated over 2013 a
stabilization in its financial performance benefiting from (1)
favorable generation reserve operations, (2) improved tariffs,
and (3) a reduction in the cost of grid losses. Some of these
drivers are not fully manageable by the company, and Moody's
understands that the upcoming regulatory settlement - due to
apply from H2 2014 - may go some way to address the discrepancy
by mitigating those elements of volatility that are not in the
company's control. We would consider that trend to be a credit
positive generally, but will need to review the detail once that
is implemented.

Given its majority ownership by the government of Romania (Baa3,
negative), Transelectrica falls within the scope of Moody's
rating methodology for government-related issuers (GRIs). In
accordance with this methodology, Transelectrica's rating
incorporates a two notch uplift for potential government support
to its standalone credit quality, which is expressed as a
baseline credit assessment (BCA) of b1. In the event that the
supporter's rating were to be downgraded, this would not
necessarily result in a downgrade of Transelectrica's own rating
however Moody's would need to look at the circumstances
applicable at the time.

What Could Change The Rating Up/Down

Given the negative outlook on the Romanian sovereign rating,
Moody's would not expect to upgrade Transelectrica's rating in
the near term. If that were to stabilize, over time, we would
consider to what extent the regulatory framework had demonstrably
stabilized and whether that might support a stronger BCA and
hence higher rating. Transelectrica's rating and BCA could come
under downward pressure if the expectation of possible sovereign
support was to deteriorate or the company's credit profile was to
weaken materially, as reflected by (1) funds from operations
(FFO)/interest coverage ratio falling below 4.0x; and (2) its
FFO/debt ratio declining below 20%.

Principal Methodologies

The methodologies used in this rating were Regulated Electric and
Gas Networks published in August 2009, and the Government-Related
Issuers: Methodology Update published in July 2010.

Transelectrica, headquartered in Bucharest, is a majority state-
owned electricity transmission system and market operator in
Romania. In 2012, the company's total consolidated revenues were
RON2.8 billion (around EUR622 million).



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


DOZHD: Struggles After Losing Main Cable Provider
-------------------------------------------------
Courtney Weaver at The Financial Times reports that Dozhd is
fighting for its survival after losing its main cable and
satellite providers -- the result of political pressure,
according to the channel's owner.

Tricolore, Russia's biggest satellite provider, announced it was
cutting Dozhd (TV Rain) from its package this week, making it the
21st cable or satellite provider to stop broadcasting the channel
in less than a week, the FT relates.

The providers say they decided to drop Dozhd because of a January
27 poll the channel posted on its website asking whether the then
Soviet government should have given up Leningrad to the Germans
in the second world war in order to avoid more than 1m deaths
during the city's blockade, the FT discloses.

According to the FT, Dmitry Peskov, a spokesman for Russian
president Vladimir Putin, denied the station was being closed
down, but said the poll crossed a "moral red line", as did
representatives of the country's leading broadcast providers --
an increasing number of whom have announced they are dropping
Dozhd's coverage.

Alexander Vinokurov, Dozhd's owner, said the exodus had slashed
Dozhd's TV audience by 80 per cent and amounted to its "effective
closure" as a TV station, the FT relays.

"The government says they didn't close Dozhd -- in reality they
did," the FT quotes Mr. Vinokurov as saying.  "We fully believe
that the operators didn't decide to shut us off voluntarily but
that this was done under pressure."

Dozhd is Russia's leading opposition television channel.


YAKUTSKENERGO: Fitch Withdraws 'BB' Issuer Default Rating
---------------------------------------------------------
Fitch Ratings has withdrawn Russian utilities company OAO AK
Yakutskenergo's ratings.

KEY RATING DRIVERS

Fitch has withdrawn the ratings as the agency no longer has
sufficient information to maintain the ratings after
Yakutskenergo has chosen to stop participating in the rating
process.

Accordingly, Fitch will no longer provide ratings or analytical
coverage for Yakutskenergo.

The ratings actions are as follows:

   -- Long term foreign currency Issuer Default Rating (IDR):
      'BB', Outlook Stable; withdrawn

   -- Long term local currency Issuer Default Rating (IDR): 'BB',
      Outlook Stable; withdrawn

   -- Long term National Rating: 'AA-(rus)', Outlook Stable;
      withdrawn



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


SID BANKA: Moody's Affirms Ba1 Rating & Revises Outlook to Stable
-----------------------------------------------------------------
Moody's Investors Service has affirmed the Ba1 the issuer and
senior unsecured ratings of SID banka, d.d., Ljubljana (SID
Banka), a government-owned specialised development bank whose
liabilities benefit from a government guarantee. The outlook for
these ratings was changed to stable, from negative.

Ratings Rationale

The action follows change in outlook to stable on the Ba1
Slovenia's government bond rating on January 24, 2014.

The bank continues to be rated at the same level as the
government bond rating due to an explicit government guarantee on
all the bank's liabilities (under the amended Slovene Export and
Development Bank Act).

As a fully government-owned specialized institution the bank's
policy mandate is to extend funding to development projects and
the promotion of export activities in the Slovenian economy.

What Could Drive The Ratings Down/Up

In case of SID banka an upgrade to Slovenia's government bond
rating will likely result in a similar action.

Similarly, a downgrade of Slovenia's government bond rating will
likely result in a similar action on these ratings. Given the
stable outlook on the ratings, however, the likelihood of a
downgrade is not likely in the near term.

Principal Methodology

The principal methodology used in this rating was Government-
Related Issuers: Methodology Update published in July 2010.



=============
U K R A I N E
=============


KYIV: Moody's Lowers Currency Rating to 'Caa2'; Outlook Negative
----------------------------------------------------------------
Moody's Investors Service has downgraded the foreign and local-
currency ratings of the Ukrainian cities of Kyiv and Kharkiv to
Caa2 from Caa1 and changed the outlook to negative. The action
concludes the review for downgrade that was initiated in
September 2013.

The main driver for the decision on these ratings was the
deterioration of the Ukrainian government's credit profile, as
reflected by Moody's recent downgrade of the sovereign's Caa1
bond rating to Caa2 with negative outlook.

Ratings Rationale

Rationale for rating downgrade

The deterioration in Ukraine's credit profile has direct
implications for the ratings of Kyiv and Kharkiv given their
institutional, financial and macroeconomic linkages with the
central government.

Institutional and financial linkages with the sovereign are
reflected in the fact that the government sets local government
budget revenues and spending targets annually, limiting both
cities' budgetary flexibility. Moody's notes that both cities are
exposed to possible reductions in funding from the central
government, which it may undertake to balance its own budget.
Moreover, the central government has the power to temporarily
withdraw liquidity from municipal treasury accounts, which has
occurred in the past when it needed additional cash. In addition,
its reduced capacity to provide short-term, interest-free soft
loans to the municipalities may result in further liquidity
pressure on Kyiv and Kharkiv.

Kyiv's and Kharkiv's tax revenues are exposed to the same
deterioration in domestic economic conditions that affects the
sovereign, given that personal income tax is pro-cyclical and
accounts for the majority of the cities' tax revenues.

Kyiv

Kyiv's ratings reflect (1) the city's volatile revenue, given the
central government's own volatile finances; (2) its weak
liquidity profile, which limits the municipality's ability to
absorb revenue shocks; and (3) exposure to foreign-currency
risks, given that around 35% of its net direct and indirect debt
is denominated in foreign currency. As a result, Kyiv's
refinancing risks will likely remain an important credit factor
in the long term. At the same time, Kyiv's position as the
Ukrainian capital and the national economic hub, as well as its
more flexible expenditure compared with other Ukrainian
municipalities, mitigate the aforementioned risks.

Kharkiv

Kharkiv's ratings are constrained by a rigid operating
expenditure structure and a weak liquidity profile. These
pressures are only partially counterbalanced by the city's
limited exposure to market volatility due to its low level of
debt, which in 2012 was 10.6% of operating revenue.

What Could Change The Ratings Down/Up

A further downgrade of the sovereign and/or a material weakening
in the municipalities' standalone fiscal performances could
result in downward pressure on Kyiv's and Kharkiv's ratings.

In contrast, an upward change in the ratings outlooks and/or
upgrades of the ratings of both cities could arise from a similar
rating action on the sovereign.

Specific economic indicators as required by EU regulation are not
applicable for these entities.

On January 31, 2014, a rating committee was called to discuss the
ratings of the Kyiv, City of and Kharkiv, City of. The main
points raised during the discussion were: The issuers' fiscal or
financial strength, including their debt profiles, has materially
decreased. The systemic risk in which the issuers operate has
materially increased

The principal methodology used in these ratings was Regional and
Local Governments published in January 2013.

The weighting of all rating factors is described in the
methodology used in this rating action, if applicable.


KHARKIV: Moody's Lowers Rating to 'Caa2'; Outlook Negative
----------------------------------------------------------
Moody's Investors Service has downgraded the foreign and local-
currency ratings of the Ukrainian cities of Kyiv and Kharkiv to
Caa2 from Caa1 and changed the outlook to negative. The action
concludes the review for downgrade that was initiated in
September 2013.

The main driver for the decision on these ratings was the
deterioration of the Ukrainian government's credit profile, as
reflected by Moody's recent downgrade of the sovereign's Caa1
bond rating to Caa2 with negative outlook.

Ratings Rationale

Rationale for rating downgrade

The deterioration in Ukraine's credit profile has direct
implications for the ratings of Kyiv and Kharkiv given their
institutional, financial and macroeconomic linkages with the
central government.

Institutional and financial linkages with the sovereign are
reflected in the fact that the government sets local government
budget revenues and spending targets annually, limiting both
cities' budgetary flexibility. Moody's notes that both cities are
exposed to possible reductions in funding from the central
government, which it may undertake to balance its own budget.
Moreover, the central government has the power to temporarily
withdraw liquidity from municipal treasury accounts, which has
occurred in the past when it needed additional cash. In addition,
its reduced capacity to provide short-term, interest-free soft
loans to the municipalities may result in further liquidity
pressure on Kyiv and Kharkiv.

Kyiv's and Kharkiv's tax revenues are exposed to the same
deterioration in domestic economic conditions that affects the
sovereign, given that personal income tax is pro-cyclical and
accounts for the majority of the cities' tax revenues.

Kyiv

Kyiv's ratings reflect (1) the city's volatile revenue, given the
central government's own volatile finances; (2) its weak
liquidity profile, which limits the municipality's ability to
absorb revenue shocks; and (3) exposure to foreign-currency
risks, given that around 35% of its net direct and indirect debt
is denominated in foreign currency. As a result, Kyiv's
refinancing risks will likely remain an important credit factor
in the long term. At the same time, Kyiv's position as the
Ukrainian capital and the national economic hub, as well as its
more flexible expenditure compared with other Ukrainian
municipalities, mitigate the aforementioned risks.

Kharkiv

Kharkiv's ratings are constrained by a rigid operating
expenditure structure and a weak liquidity profile. These
pressures are only partially counterbalanced by the city's
limited exposure to market volatility due to its low level of
debt, which in 2012 was 10.6% of operating revenue.

What Could Change The Ratings Down/Up

A further downgrade of the sovereign and/or a material weakening
in the municipalities' standalone fiscal performances could
result in downward pressure on Kyiv's and Kharkiv's ratings.

In contrast, an upward change in the ratings outlooks and/or
upgrades of the ratings of both cities could arise from a similar
rating action on the sovereign.

Specific economic indicators as required by EU regulation are not
applicable for these entities.

On January 31, 2014, a rating committee was called to discuss the
ratings of the Kyiv, City of and Kharkiv, City of. The main
points raised during the discussion were: The issuers' fiscal or
financial strength, including their debt profiles, has materially
decreased. The systemic risk in which the issuers operate has
materially increased

The principal methodology used in these ratings was Regional and
Local Governments published in January 2013.

The weighting of all rating factors is described in the
methodology used in this rating action, if applicable.



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


APPLEGUILD LIMITED: Court Enters Liquidation Order
--------------------------------------------------
A London-based company that sold coloured diamonds to the public
as investment but did not deliver them was ordered into
liquidation on January 29 on grounds of public interest following
an investigation by the Insolvency Service.

Appleguild Limited, which traded as "Gold Standard Commodities",
falsely claimed to be an independent commodities broker based in
the City of London since 2007.  According to its now defunct
website www.gscommodities.co.uk, the company claimed it had been:

"Advising clients on mainstream commodities which we believe can
hedge our clients against the difficulties that face us in
today's economy. We pride ourselves on the returns we show our
clients. As you may already be aware commodities are in a bull
market and continue to outperform in the current economic
climate."

The company was in fact located at 1 Warwick Row, London, SW1E
5ER and operated only from August 2011 -- when the company
registration was bought "off-the-shelf" from a company formation
agent -- to January 2012, when its activities were forcibly
closed.

Investigators were not able to establish the extent of the
company's business due to lack of co-operation from the company's
officers responsible for this period of trading and inadequate
financial records.

The company's de facto director, Christopher Newhouse said 15
customers had placed orders for over GBP100,000 but only one
order was fulfilled.

Welcoming the court's winding up decision, Chris Mayhew, Company
Investigations Supervisor at the Insolvency Service, said:

"This formally brings to an end the activities of a thoroughly
disreputable company which said it 'prided itself' on the
investment returns for its clients, but who, in all but one
instance, failed to supply investors with any diamonds".

"Investors should not respond to cold-calling investment sharks
as they stand to gain nothing and risk losing everything."

"If any investor has been contacted by this company, the Official
Receiver now handling its affairs will be glad to receive details
of its dealings with you.

"The Insolvency Service will not allow rogue companies to rip-off
vulnerable and honest people and will investigate abuses and
close down companies if they are found to be operating or about
to operate, against the public interest."

The petition to wind up the company, which was unopposed, was
presented in the High Court on Oct. 24, 2013.


EMG DIECUTTING: SFP Appointed as Administrators
-----------------------------------------------
According to www.creditman.co.uk , insolvency practitioners SFP
has been appointed Administrators to Kettering-based packaging
manufacturing company EMG Diecutting Limited (EMG) after it
suffered cash flow difficulties and ceased to trade.

SFP's Simon Plant and Daniel Plant -- both licensed members of
the Insolvency Practitioners' Association -- were appointed Joint
administrators on Jan. 30, 2014, www.creditman.co.uk discloses.

"EMG was placed into administration due to serious cash flow
issues which led the company to cease to trade in November last
year. Given the cessation of trading, a going concern sale was
not achievable. Accordingly, the tangible assets will be disposed
of on a piecemeal basis and the outstanding affairs of EMG will
be attended to," the report quotes Mr. Plant, one of the Joint
Administrators and Group Director at SFP, as saying.

Established in 2010, EMG Diecutting Limited specialised in the
manufacture and distribution of steel products for the packaging
industry from its base in Kettering. Its annual approximate
turnover was GBP600,000.


PUNCH TAVERNS: Urges Lenders to Support Debt Restructuring Deal
---------------------------------------------------------------
Nathalie Thomas at The Telegraph reports that Punch Taverns,
Britain's second biggest pubs group, will warn its lenders on
Wednesday that failure to pass a controversial debt restructuring
deal could lead to at least five years of "mess" and
"uncertainty."

The company, which has 4,000 pubs in the UK, has been wrestling
with its lenders and shareholders over the last 14 months over
how to restructure its complex GBP2.3 billion debt pile, built up
during an acquisition spree last decade, The Telegraph relays.

The pub landlord last month published it final proposal, which
would see net debt reduced to GBP1.8 billion and would avoid a
default, The Telegraph recounts.  The plan, which will be put to
the vote on Feb. 14, has already been rejected by several
powerful groups of bondholders with blocking votes, who are
pressing for talks to be re-opened, The Telegraph notes.

However, Stephen Billingham, executive chairman of Punch, has
made a last minute plea to creditors to back the deal, warning
that negotiations would likely go on for years if the deal isn't
passed, The Telegraph discloses.

Punch's debt is held in two complex vehicles dubbed "Punch A and
Punch B", which the publicly-listed company has to service with
large sums of cash to avoid a default, The Telegraph states.

Mr. Billingham, as cited by The Telegraph, said it would no
longer be "economic" for the public company to continue
supporting Punch A in particular, which is close to default. In
the case of a "no" vote next week, one or both of the structures
are likely to put into administrative receivership.

The company wouldn't go bust and pub landlords would continue to
pay their leases but Mr. Billingham said the squabbling among
lenders would likely continue for several years, leaving a cloud
of uncertainty hanging over the group, The Telegraph relates.

The two debt structures could exist for years without collapsing
as they have access to a total of GBP462 million of liquidity
provided by Royal Bank of Scotland and Lloyds Banking Group, The
Telegraph says.

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.


SEADRILL PARTNERS: Moody's Assigns 'Ba3' CFR; Outlook Stable
------------------------------------------------------------
Moody's Investors Service has assigned a first-time Ba3 corporate
family rating (CFR) and a Ba3-PD probability of default rating
(PDR) to Seadrill Partners LLC (SDLP). Concurrently, Moody's has
assigned a provisional (P)Ba3 rating to the proposed US$1.7
billion senior secured term loan due 2021, borrowed by Seadrill
Operating LP and Seadrill Partners Finco LLC, subsidiaries of
SDLP. Moody's has also assigned a provisional (P)Baa3 to the
proposed US$100 million first out secured revolving credit
facility (RCF) due 2019, borrowed by Seadrill Operating LP,
Seadrill Partners Finco LLC, and Seadrill Capricorn Holdings LLC,
also a subsidiary of SDLP. The outlook on all ratings is stable.

The proceeds from the term loan, will be used in combination with
funding raised by SDLP in December 2013, comprising of US$465
million of equity issuance and a US$70 million 0% coupon discount
note issued to SDLP's parent Seadrill Limited (SDRL, unrated), to
repay existing debt (US$1,475 million), purchase the equity of
the 6th generation semi-submersibles West Leo and West Sirius
(US$528 million), distribute cash to SDRL (US$164 million) and
for general corporate purposes (US$29 million, net of fees).

Moody's issues provisional ratings in advance of the final sale
of securities. Upon closing of the transaction and a conclusive
review of the final documentation, Moody's will endeavor to
assign definitive ratings. A definitive rating may differ from a
provisional rating.

Ratings Rationale

The CFR reflects the (i) relatively high consolidated leverage
that Moody's expects at approximately 4.0x at the end of 2014,
(ii) high degree of structural complexity and the shareholder
friendly nature of the MLP/LLC structure, (iii) credit and
management linkages with the much larger but aggressively
managed, unrated parent SDRL, including cross-defaults and cross-
acceleration with the newly rated credit facility, (iv) the
limited track record of SDLP with regards to funding of dropdowns
and access to the equity markets, and (v) asset concentration
with only eight vessels but with the potential for further
vessels to be dropped down from SDRL. The rating also considers
the inherent volatility of the offshore drilling market and the
lack of audited information at the level of the borrowing group.

However, these are partly mitigated by (i) the strong US$4.7
billion contract backlog, with nearly four years on average
remaining on the contracts and all the collateral rigs contracted
out until 2017, (ii) the high quality fleet of rigs and tender
barges with an average age of only 3.2 years, (iii) the vast
majority of customers being highly rated investment grade
companies such as Chevron Corporation (Aa1 stable) and BP p.l.c.
(A2 stable), (iv) its strong operating track record and high
dayrates, and (v) its diversified geographic presence in three
major offshore markets. The rating also reflects the lack of
construction and start-up risk at SDLP, as vessels are only
dropped-down from SDRL once they have been operating on contract
and SDRL's large and very young fleet, which provides access to
numerous drop-down candidates.

SDLP is 62% owned by SDRL. Its creditworthiness is closely linked
to SDRL's through cross-defaults and cross guarantees. However,
the Ba3 CFR does not assume any support or any pressure on the
rating from the creditworthiness of the much larger parent.
Nevertheless, Moody's views SDLP as having weak corporate
governance due to the many operating and management linkages with
the parent. The rating agency also notes SDRL's large funding
requirements for its extensive newbuilding program and Moody's
expectation of weak covenant headroom over the next 12-18 months.

SDLP's strengths are tempered by its master limited partnership
structure that accordingly distributes a high proportion of its
operating cash flow. The LLC has a high degree of structural
complexity. MLPs involve high distribution payouts, financing
risk, acquisition event risk, and weak corporate governance, and
they require ever-greater cash flow to support distributions. As
such, Moody's only expects minimal deleveraging at the SDLP
consolidated level below the 4.0x (and 3.5x at the collateral
group level) the rating agency expects at the end of 2014.

SDLP was only formed in June 2012 and although there are a large
number of drop-down candidates from SDRL's pool of assets, there
is a limited track record in terms of the equity funding
component and access to external equity funding. However, the
rating assumes that any future drop-downs will be funded with
approximately 50% equity and Moody's notes that SDRL has provided
equity funding for some of the drop-downs in the past.

SDLP's liquidity is good. At the end of 2013 and pro-forma for
the transaction, the company had cash on balance sheet of
approximately US$117 million. SDLP also had US$200 million of
undrawn revolving credit facilities, of which US$100 million is
provided under the new senior credit facilities (the RCF) and
matures in 5 years and the remaining being provided by SDRL and
matures in 3 years. Moody's expects headroom under the one
financial covenant, the Combined Senior Secured Net Leverage
Ratio, should be comfortably met over the next 12-18 months. The
next material debt repayment is in Q2 2015 when the US$70 million
0% coupon note issued to SDRL and the US$70 million final payment
of a US$1.2 billion facility for the Vencedor rig are due.
Moody's expects SDLP to remain free cash flow positive (excluding
any capex for drop-downs) due to the long term contracts, history
of high utilization and minimum maintenance capex. However, the
rating agency notes that the 2.0x interest coverage ratio test
restricting dividends provides the ability for the company to
distribute most of its cash if so desired. Moody's also assumes
that any drop-downs will not have significant negative impacts on
liquidity due to the expected equity funding of part of the
purchases. Notwithstanding the good liquidity at SDLP, Moody's
also notes SDLR's large future funding requirements and tight
covenant headroom as mentioned above.

The Ba3-PD PDR, in line with the CFR, assumes a recovery rate of
50%, as is common for a structure consisting of different
ranking, secured and unsecured debt. The RCF and the term loan
are secured by a first priority cross-collateralized interest in
all tangible and intangible assets of the subsidiaries which own
the West Capella, West Aquarius, West Sirius and West Leo
vessels, including direct liens on the vessels. The RCF security
will be first-out.

The (P)Baa3 assigned to the super senior RCF, three notches above
the CFR, reflects the presence of the US$1.7 billion senior
secured term loan (rated (P)Ba3), the US$100 million unsecured
RCF from SDRL, as well as US$70 million unsecured discount note,
all of which rank below the RCF. The (P)Ba3 assigned to the
senior secured term loan, in line with the CFR, reflects the fact
that the presence of the first out secured RCF is mitigated by
the cushion provided by the unsecured RCF from SDRL and the US$70
million discount note.

There are cross-defaults and cross guarantees in the structure,
from part of the debt associated with the vessels that are not
pledged as collateral for the rated debt (West Vencedor, West
Capricorn, T15 and T16), which link to SDRL and introduce
challenges into the structural analysis. Additionally, Moody's
expects any future drop-downs to provide residual value as part
of the borrowing group but to be pledged as collateral for any
new financing as part of the drop-down financing.

The stable outlook assumes that the company continues to operate
at high levels of utilization and that future dropdowns and
financial policy do not lead to a deterioration in credit
metrics. It also assumes that the company will maintain good
liquidity and that Moody's continues to expect Seadrill Limited
will have no funding problems or covenant breaches.

What Could Change The Rating Up/Down

The rating could be downgraded if consolidated leverage
approaches 4.5x, the collateral group leverage approaches 4.0x,
or if the conditions for a stable outlook are not met.
Conversely, the rating could be upgraded if consolidated leverage
is maintained below 3.5x, the collateral group leverage is
maintained below 3.0x, the fleet at the borrowing group level
grows materially and there is no negative pressure from the
credit linkage with Seadrill Limited.

The principal methodology used in these ratings was the Global
Oilfield Services Rating Methodology published in December 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.

Seadrill Partners LLC, is a Marshall Islands registered company,
fully controlled by Seadrill Limited. 62% of SDLP's LLC interest
is owned by SDRL, with the remainder held by public unitholders.
It is a provider of offshore drilling services to the oil and gas
industry and its fleet consists of four 6th generation ultra-
deepwater semi-submersibles and one ultra-deepwater drillship,
two tender barges and one semi-tender barge. It generated revenue
and EBITDA of US$614 million and US$336 million respectively in
FY2012 and has a current market capitalization of approximately
US$1.9 billion. Seadrill Limited, which has an operating
agreement with SDLP, has a fleet of 69 units, including 21 under
construction. For FY2012, it reported revenues of US$4.5 billion
and Moody's adjusted EBITDA of US$2.6 billion. It has a current
market capitalization of approximately US$17 billion.


SEADRILL PARTNERS: S&P Assigns Prelim. 'BB-' CCR; Outlook Stable
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary long-
term 'BB-' and preliminary short-term 'B' corporate credit
ratings to the Marshall Islands domiciled, offshore drilling
company Seadrill Partners LLC and its subsidiary, Seadrill
Capricorn Holdings LLC.  The outlook is stable.

At the same time, S&P assigned its preliminary 'BB' issue rating
to the proposed US$100 million super-senior revolving credit
facility (RCF) due in 2019, co-issued by Seadrill Operating LP
and Seadrill Capricorn Holdings LLC. and S&P's 'BB-' issue rating
to the US$1.7 billion secured term loan B maturing in 2021,
issued by Seadrill Operating LP and guaranteed by Seadrill
Capricorn Holdings LLC.  The preliminary recovery rating on the
RCF is '2', indicating S&P's expectation of substantial (70%-90%)
recovery prospects for lenders in the event of a payment default.
The preliminary recovery rating on the US$1.7 billion loan is
'3', indicating S&P's expectation of meaningful (50%-70%)
recovery prospects in the event of a payment default.

Final ratings will depend on our receipt and satisfactory review
of all final transaction documentation.  Accordingly, the
preliminary ratings should not be construed as evidence of final
ratings.  If Standard & Poor's does not receive final
documentation within a reasonable time frame, or if final
documentation departs from materials reviewed, S&P reserves the
right to withdraw or revise its ratings.  Potential changes
include, but are not limited to, utilization of bond proceeds,
maturity, size and conditions of the bonds, financial and other
covenants, security and ranking.

The preliminary ratings on Seadrill Partners reflect S&P's
assessment of the company's business risk profile as "fair" and
its financial risk profile as "significant."  S&P's business risk
assessment recognizes Seadrill Partners' very modern, high
specification fleet of contracted vessels with a revenue backlog
of US$4.7 billion.  S&P also notes that the contracts have
relatively high day rates and an average length of nearly four
years, with the earliest finishing in 2015.  These provide
medium-term visibility on revenues and also operating cash flow
generation, as a result of cost escalation clauses.  Rig
utilization and profitability have been high in the actual and
pro forma reported periods prior to Seadrill Partners' formation
in June 2012.  Free operating cash flow is forecast to be
positive as a result of modest capital expenditures on the modern
vessels.  S&P sees the anticipated lack of new vessel building as
positive for its ratings.  Seadrill Partners is likely to avoid
construction, start-up, initial contracting, and associated
funding and liquidity risks, as these are largely borne by its
parent, the large Bermuda-based offshore driller Seadrill
Limited.

Under agreements with its majority owner Seadrill Limited,
Seadrill Partners is likely to continue to acquire rigs and
fractional interests in rigs that already have contracts for more
than five years.  These so-called "drop downs" have been funded
with a mix of new equity or unit interests in Seadrill Partners
as well as secured debt, raised externally by Seadrill Limited
and lent to Seadrill Partners' entities, including the borrowers.
The proposed US$1.7 billion term loan will refinance some of
these facilities and other intercompany loans.

As a result of its growing asset base and cash generation,
Seadrill Partners is expected to continue increasing
distributions to its unitholders.  The future balance between
fleet expansion, leverage, and quarterly distributions will be
important factors for S&P's assessment of Seadrill Partners'
financial policy.  S&P notes that proposed maintenance covenants
would allow debt to EBITDA of up to 5x, closer to the leverage at
Seadrill Limited, although S&P do not project this in the near
term for Seadrill Partners.

Another constraint for the ratings is the relative lack of
diversification across the business, compared with the parent and
other large operators.  Geographically, the vessels under current
contracts are in three main regions.  Operationally, there are
five ultra-deepwater floaters and three tender barges, so more
than a few days off day-rate for one or more vessels has a
meaningful effect on performance.  Also, although Seadrill
Partners currently has indirect stakes in these eight vessels,
Seadrill Limited has the remaining, material interests.  Seadrill
Limited has a 44% interest in collateral vessel West Capella,
although the other borrowers have 100% interests in the rig-
owning entities.  S&P do not anticipate debt at Seadrill Partners
itself and analytically consolidate it and its controlled
entities in line with the International Financial Reporting
Standards accounts.  S&P notes the cross-default clauses between
these entities, but also see Seadrill Partners' 30% interest in
borrower Seadrill Operating LP and 51% interest in borrower
Seadrill Capricorn Holdings LLC as a structural shortcoming,
resulting in material dividend leakage to Seadrill Limited

S&P's base case assumes:

   -- A Brent oil price of $100 per barrel (/bbl) in 2014 and
      $95/bbl in 2015.

   -- Day rates as contracted and average utilization of 95% in
      2014 and 2015.EBITDA margins of more than 55%.

   -- No modeled drop downs or acquisitions of interests in
      specific rigs.

   -- Although these activities are likely, S&P assumes no
      resultant material net change in cash flow leverage
      measures.

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

   -- Adjusted funds from operations to debt of 20%-25% in 2014
      and 2015.

   -- Adjusted debt to EBITDA of 3.4x to 4.0x in 2014 and 2015.

   -- Positive free operating cash flow (FOCF), after maintenance
      capital investment before distributions, of US$300 million
      to US$500 million in 2014 and 2015.

The stable outlook reflects S&P's view that with the contracted
revenues providing visibility on operating cash flow in 2014 and
2015 (at least), debt coverage measures should remain in line
with a "significant" financial risk profile, as defined by S&P's
criteria.  FFO to debt is forecast to be more than 20% and
discretionary cash flow (after modest capital investment and
distributions) is projected to be positive.

S&P do not see an upgrade as likely in the near term.  S&P could
raise the ratings, however, if funds from operations (FFO) to
debt reaches more than 30% on a sustained basis and discretionary
cash flow is at least breakeven.  This could happen if operating
performance is stronger than S&P's base case assumes and the
increased assets at Seadrill Partners are funded prudently.

S&P could consider a negative rating action if it observes a
deterioration in operating performance, such that FFO to debt
declines to below 20% on a sustained basis and debt to EBITDA
increases to more than 4x.  This would be exacerbated if
utilization falls or if the predictability or profitability of
operations weakens.  Borderline metrics alone would not
necessarily result in a downgrade if S&P considers that Seadrill
Partners is establishing a solid operating track record and
discretionary cash flow is positive.  This reflects the strong
cash conversion of EBITDA into free cash flow that S&P
anticipates.


SPEED-E-LOANS: Unsecured Creditors Await Payout
-----------------------------------------------
Credit Today reports that unsecured creditors of a collapsed
payday lender, Speed-E-Loans, must await the results of a legal
investigation into the firm's former chief executive to see if
they will receive any money back.

Speed-E-Loans collapsed into administration on June 28, 2013
following an unsuccessful financial restructuring and the
departure of chief executive Gary Miller-Cheevers, now a director
at pawnbroker Albemarle & Bond, the report discloses.

According to Credit Today, the company's loan book -- valued at
GBP1.9 million -- has been sold to a Croydon-based business
called Safeloans for GBP50,000, facilitating a payment to Fluid
Capital Japan Limited which held a fixed and floating charge over
the assets of Speed-E-Loans.

However, administrators Accura Accountants have since instructed
solicitors to investigate the possibility of recovering
outstanding amounts owed to the company by Miller-Cheevers, which
would be used to make a return to unsecured creditors, the report
says.

"During the period (of insolvency), I have been made aware of
outstanding amounts due to the company from the former director
Mr Gary Miller-Cheevers," administrator Alan Simon said in a
statement, Credit Today relays.

"I have instructed solicitors to review the position with a view
to any potential recoveries for the benefit of the company's
creditors. Unfortunately at the time of writing I am unable to
disclose any further information in this regard as I do not want
to prejudice the position."

Credit Today notes that the revelations contradict a statement
released by Speed-E-Loans last year, which said the debts owed to
the business by Miller-Cheevers following his departure had been
settled.

Unsecured creditors of Speed-E-Loans are currently owed around
GBP10.2 million, according to the administrator's update, Credit
Today discloses.

To date, claims have been made for GBP3.16 million of that total
from 22 creditors, but there are still 31 creditors who are owed
debts totalling GBP7.1 million but have not made a claim,
according to Credit Today.

According to the report, Mr. Simon also revealed he has submitted
a report on the conduct of the company's directors to the
Department for Business, Innovation & Skills (BIS), but did not
disclose details due to the confidentiality of the report.

The administrators have charged GBP77,666.50 for their work on
the case, of which GBP18,000 plus disbursements of GBP1,095 have
been drawn, the report adds.


                            *********

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
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A list of Meetings, Conferences and Seminars appears in each
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related conferences are encouraged.  Send announcements to
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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
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Information contained herein is obtained from sources believed to
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