TCREUR_Public/140507.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, May 7, 2014, Vol. 15, No. 89

                            Headlines

F I N L A N D

PAROC GROUP: Moody's Rates EUR430MM Senior Secured Notes '(P)B2'
PAROC GROUP: S&P Assigns Preliminary 'B' CCR; Outlook Stable


F R A N C E

ASCOMETAL: French Industrialists Mull EUR40MM Bid for Assets


G R E E C E

YIOULA GLASSWORKS: S&P Raises CCR to 'CCC-' on Debt Extension


I C E L A N D

ICELAND: Needs to Take Tougher Stance on Foreign Creditors


I R E L A N D

HOUSE OF EUROPE: Moody's Raises Ratings on 3 Note Classes to Ca
IHLE GROUP: German Court Starts Insolvency Process
IRISH BANK: Mortgage Holders Protest Over Loan Sale


I T A L Y

ALITALIA SPA: Etihad Open To Talks, But Won't Budge On Demands
SAFILO GROUP: S&P Raises CCR to 'B+' on Improved Credit Metrics
ZUCCHERIFICIO: Offers for Asset Sales Open Until May 19


N E T H E R L A N D S

SNS Bank: Moody's Keeps Rating Over Deal Documentation Amendment


P O L A N D

* POLAND: Number of Bankruptcies Down 26% in April 2014


P O R T U G A L

PORTUGAL: Passes Troika's Final Bailout Review


R U S S I A

VODOKANAL ST. PETERSBURG: S&P Revises Ratings Outlook to Negative


S P A I N

PYMES SANTANDER 9: S&P Assigns Prelim. B- Rating to Class B Notes


U N I T E D   K I N G D O M

CO-OPERATIVE GROUP: Lord Myners to Call for Board Reform
DEGANWY QUAY: Put Up for Sale for GBP7 Million
GHERKIN: Lenders Ask Court to Settle Dispute Over Swaps
JK BUCKENHAM: High Court Sets June 4 Meeting for Scheme Creditors
NORTH WORCESTERSHIRE: Residents Face Six Years of Building Work

* UK: Corporate Insolvencies to Rise in Next 12 Months, R3 Says


X X X X X X X X

* EUROPE: ESM May Directly Invest in Troubled Bank in 2015


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PAROC GROUP: Moody's Rates EUR430MM Senior Secured Notes '(P)B2'
----------------------------------------------------------------
Moody's Investors Service has assigned a first-time corporate
family rating (CFR) of (P)B2 to Paroc Group Oy. Concurrently,
Moody's has assigned a provisional (P)B2 rating to the company's
proposed EUR430 million senior secured notes due 2020 to be
issued by Paroc. The outlook on all ratings is stable.

The proceeds from the notes will be used as part of the
refinancing of the existing debt and shareholder loans. Paroc is
owned by a syndicate of over 30 financial institutions that
gained control of the company after a restructuring of Paroc
Group indebtedness in 2009. Previously, Paroc was acquired by
Arcapita Bank B.S.C. in 2006.

Ratings Rationale

The (P)B2 CFR reflects (i) Paroc's exposure to the cyclical new
construction sector; (ii) strong industry competition, including
from alternative products; (iii) limited size of the company
operating in a niche insulation industry; and (iv) high leverage
pro forma for the transaction of 4.9x (net reported), which
equates to 6.1x Moody's adjusted leverage as of 31 December 2013.
More positively, the rating also reflects: (i) the company's
strong market position in the company's key geographies; (ii)
Paroc's pricing power mitigating raw material price volatility;
(iii) favorable long-term regulation trends related to energy
efficiency; and (iv) Moody's expectation of deleveraging achieved
through expansion in Russia and gaining further market shares
outside of its key geographies of Finland and Sweden.

Paroc operates in premium stone wool insulation where the company
believes to be a market leader in Finland, Sweden and the Baltic
States (together, contributing approximately 54% of total 2013
sales). According to the company's estimates, Paroc's market
share in these countries has remained stable overall over the
past three years. Paroc's other important markets include Norway,
Denmark, Poland, Germany and the UK.

The stone wool market is dominated by branded products and is
fairly concentrated, in particular in the Building Insulation
(BI) and Technical Insulation (TI) divisions, generating
respectively 50% and 31% of total 2013 sales. This is driven by
high barriers to entry, such as capital intensity and
transportation costs in the BI division, combined with
certification requirements in the TI division.

Stone wool competes with other types of insulation materials
(glass wool and foams), although the overlap with foam is limited
to external facades and roofs and sandwich panels. The choice of
insulation material depends on regional and local building
traditions, exterior climate as well as construction
requirements. Paroc products benefit from increased demand for
energy efficiency in buildings driven by governments' efforts to
reduce energy consumption.

Paroc is exposed to the cyclical new construction industry,
representing 71% of its 2013 sales, including 29% in the new
residential construction end-market. The company's BI division
proved to be particularly volatile during the downturn of 2008-
2009. This risk is partially offset by the more stable and
profitable TI division, now comprising almost half of the
company's EBITDA. TI higher value-added products are supplied to
HVAC, oil and gas, power generation, Marine and OEM key end-
markets, which are more resilient in economic downturns. Focus on
growth in the TI division as well as price increases have allowed
the company to restore its EBITDA margin (management reported)
during the past few years close to pre-crisis levels. Moody's
expect this trend to continue, although further profitability
improvement will be harder to achieve.

In January 2014 the company launched its first facility in Tver,
Russia, with capacity of 50k tonnes, following an investment of
EUR60 million. Expansion in Russia, currently contributing
approximately 7% of the company's 2013 sales, is an important
part of the company's growth strategy. However, there are
execution risks associated with the expansion strategy, given the
legal complexity of operating in Russia, possible cost over-run
and the strong presence of Paroc's major competitors in Russia.
In addition, there are concerns over the current geopolitical
situation and the potential impact on companies operating in the
region. If successful, Paroc plans to add a second line and
technical insulation production at the plant at a total cost of
EUR75 million by 2016.

The company's opening leverage proforma for the transaction is
high, at 6.1x Moody's adjusted or 4.9x net reported leverage as
of December 31, 2013. Moody's expects the company to achieve
meaningful deleveraging in the coming years, supported by gradual
recovery in the construction market and some market share gains.
The deleveraging also depends on the success of the company's
operations in Russia which are expected to make a significant
contribution to the company's EBITDA starting from 2016.

Paroc's liquidity is adequate, supported by EUR25 million cash
pro forma closing and a EUR60 million undrawn revolving credit
facility (RCF). There is a single springing maintenance covenant
under the RCF set with significant headroom. However, Moody's
expects some pressure on liquidity as a result of negative free
cash flow generation expected during the next 2 years due to
capital requirements required for the second production line in
Russia. Moody's understands that all of the capex related to the
second line in the Russian facility is uncommitted.

The stable outlook reflects Moody's view that Paroc will benefit
from gradual recovery in the European construction market by
growing its production and market shares outside of its core
Scandinavian markets.

The (P)B2 rating assigned to the Notes reflects their dominance
in the capital structure, ranking behind the RCF. The RCF shares
the first-ranking security with the notes, however the facility
benefits from priority over the notes in the enforcement payment
waterfall.

Moody's ratings are based on the understanding that the
shareholder contribution is downstreamed into Paroc Group Oy
restricted group as ordinary equity therefore the Junior Notes
remaining at Safari Finco 1 Oy, parent of Paroc Group Oy, were
not considered in Moody's analysis.

What Could Change The Rating Up/Down

Positive pressure could arise if the company (i) sustainably de-
levers its balance sheet leading to a Debt to EBITDA ratio below
5.0x; (ii) improves its EBIT to Interest ratio above 2.5x, and
(iii) maintains adequate liquidity. Downward pressure might occur
as a result of underperformance leading to: i) a gross
Debt/EBITDA ratio rising materially above 6.0x; (ii)
EBIT/Interest falling below 2.0x or iii) any concerns about
liquidity or covenant headroom.

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

HVAC, Process Industries (O&G, Power Generation), Marine and
OEMs. Paroc's products include building insulation, technical
insulation, marine and offshore insulation, sandwich panels and
acoustic products. The company generated EUR433 million sales and
EUR80 million management-adjusted EBITDA in 2013.


PAROC GROUP: S&P Assigns Preliminary 'B' CCR; Outlook Stable
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary 'B'
long-term corporate credit rating to Finland-based stone wool
insulation materials provider Paroc Group Oy.  The outlook is
stable.

At the same time, S&P assigned its preliminary 'B' issue rating
to the proposed EUR430 million senior secured notes due 2020, to
be issued by Paroc.  The recovery rating on these notes is '4',
indicating S&P's expectation of average (30%-50%) recovery in the
event of a payment default.

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

Paroc plans to issue EUR430 million of senior secured notes, and
to use the proceeds to repay EUR351.8 million of existing term
debt and partially repay EUR92 million of existing shareholder
loans and accrued payment-in-kind (PIK) interest.

After the refinancing, the group's capital structure will include
EUR42 million of shareholder loans that accrue PIK interest at
10%, which S&P considers to be an aggressive rate.  S&P views
these loans as debt under its criteria.

The stable outlook signifies S&P's expectation that Paroc will be
able to increase its revenues and slightly improve its margins
over the 12 month rating horizon, while investing heavily to meet
anticipated growth in demand.  S&P forecasts that the group's
adjusted debt to EBITDA, including shareholder loans, should be
just under 6x in 2014, and that its cash interest cover will be
good at about 3x.  However, the group's free operating cash flow
will likely be negative due to its sizable capex plan, which will
probably result in the group drawing on its RCF to fund its
investment spend.  If pricing in the sector were to become more
competitive, a lower-than-expected EBITDA growth rate could
result in weaker leverage metrics.

S&P could lower the ratings if Paroc were to experience severe
margin pressure, or poorer cash flows, leading to weaker credit
metrics.  This could occur if the company did not curtail its
capital expenditure in time to reduce debt before a potential
drop in earnings.  Downward rating pressure may also stem from
debt-funded acquisitions or increased shareholder returns.

S&P considers the scope for raising the ratings limited at this
stage, because of Paroc's high leverage and limited prospects for
deleveraging over the 12 month rating horizon -- it plans to
spend any excess cash on capex.  The FS-6 financial policy
assessment effectively caps the financial risk profile at "highly
leveraged," because it creates increased uncertainty regarding
the possibility of future releveraging, aggressive shareholder
returns, and changes to the group's acquisition/disposal
strategy.



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ASCOMETAL: French Industrialists Mull EUR40MM Bid for Assets
------------------------------------------------------------
Geert De Clercq at Reuters reports that a group of French
industrialists and investors said on Monday it planned to make a
bid of at least EUR40 million (US$56 million) for the assets of
Ascometal.

According to Reuters, the group includes Ascometal founder and
former Airbus CEO Noel Forgeard, former Arcelor chief executive
Guy Dolle, and Frank Supplisson, who was chief of staff of former
industry minister Christine Lagarde.  It will deposit an offer
with the Nanterre commercial court by Friday midnight via its
investment vehicle Asco Industrie, Reuters discloses.

Asco Industrie said in a statement that it would hire all of the
bankrupt company's industrial staff and take over all its plants,
invest EUR135 million in the firm over the next four years, and
leave current CEO Jacques Schaffnit in place, Reuters relates.

It plans to cut 62 administrative jobs, Reuters says.

Ascometal is a French specialty steel maker.



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YIOULA GLASSWORKS: S&P Raises CCR to 'CCC-' on Debt Extension
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it has raised its
long-term corporate credit rating on Greece-based glass container
manufacturer Yioula Glassworks S.A. to 'CCC-' from 'CC' and
placed it on CreditWatch with positive implications.

S&P also placed its 'CC' rating on Yioula's existing senior
unsecured notes on CreditWatch positive.

The upgrade primarily reflects the group's extension of its
EUR28 million bank commitment with Eurobank Ergasias to June 2015
(from June 2014).  Following the renegotiation, the group's debt
maturities at year-end 2014 are about EUR12 million.

The CreditWatch placement reflects the likelihood that Yioula
will announce the refinancing of its existing EUR140 million
senior unsecured notes in the near term.  In its 2013 full-year
results publication, Yioula indicated that it is in the process
of issuing senior secured notes.  Nevertheless, given the
execution risks inherent in such a transaction and the
challenging conditions prevailing in Ukraine, the group might not
be in position to access the markets and might postpone its plans
for a third time.

S&P continues to assess Yioula's financial risk profile as
"highly leveraged" because of its Standard & Poor's-adjusted
total debt to EBITDA in excess of 5x.  S&P's view of the group's
business risk profile as "weak" primarily stems from its narrow
focus on the Balkan area and presence within countries featuring
moderate to high country risk.  The group's low cash balance and
still limited free operating cash flow (FOCF) generation,
resulting from heavy capital outlays for the refurbishment of its
furnaces, continue to weigh on the ratings.

S&P aims to resolve the CreditWatch placement within the next 90
days and following the group's disclosure of its refinancing
plans.

The CreditWatch placement reflects S&P's expectation that it
would likely raise the corporate credit rating by up to two
notches, should the refinancing result in an improvement in the
debt maturity profile and address Yioula's liquidity issues.

If management fails to access the market in the very near term,
S&P would affirm the ratings at 'CCC-'.  Under this scenario, the
company would have to face successive debt maturities in the
following 12 to 18 months, including EUR28 million to Eurobank,
EUR13 million to Piraeus, and EUR140 million of senior unsecured
notes.



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ICELAND: Needs to Take Tougher Stance on Foreign Creditors
----------------------------------------------------------
Omar R. Valdimarsson at Bloomberg News reports that
Fridrik Jonsson, an Icelandic economic adviser working for the
Washington-based World Bank, said Iceland needs to take a tougher
stance on foreign creditors in its failed banks to protect the
krona during a planned exit from a half-decade-old regime of
capital controls.

"Since the beginning, the priority seems to have been on how the
country can bail out the holders of offshore kronur,"
Mr. Jonsson, as cited by Bloomberg, said in an interview.

The island imposed capital controls in 2008 to protect the
currency after Landsbanki Islands hf, Glitnir Bank hf and
Kaupthing Bank hf collapsed, Bloomberg recounts.  While it has
since won key battles in its economic resurrection, including
regaining an investment grade status at Fitch Ratings, Iceland
has yet to untangle its US$16 billion economy from US$7.2 billion
in offshore kronur that are locked behind currency restrictions,
Bloomberg notes.

"Another option would be to force the failed banks into
bankruptcy and hand over kronur for their foreign assets,"
Mr. Jonsson, as cited by Bloomberg, said warning that this method
would come with litigation risk from the creditors of Iceland's
failed banks."

"A third option would be to hand over the foreign assets of the
failed banks and fully tax their kronur assets," Bloomberg quotes
Mr. Jonsson as saying.



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HOUSE OF EUROPE: Moody's Raises Ratings on 3 Note Classes to Ca
---------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on notes
issued by House of Europe Funding V PLC:

EUR580,000,000 Class A1 House of Europe Funding V PLC Floating
Rate Notes Due November 8, 2090 (current outstanding balance of
EUR377,143,726.48), Upgraded to Ba3 (sf); previously on March 6,
2014 B3 (sf) Placed Under Review for Possible Upgrade

EUR70,000,000 Class A2 House of Europe Funding V PLC Floating
Rate Notes Due November 8, 2090, Upgraded to Caa3 (sf);
previously on March 18, 2009 Downgraded to Ca (sf)

EUR70,000,000 Class A3-a House of Europe Funding V PLC Floating
Rate Notes Due November 8, 2090, Upgraded to Ca (sf); previously
on March 18, 2009 Downgraded to C (sf)

EUR15,000,000 Class A3-b House of Europe Funding V PLC Fixed Rate
Notes Due November 8, 2090, Upgraded to Ca (sf); previously on
March 18, 2009 Downgraded to C (sf)

EUR21,000,000 Class B House of Europe Funding V PLC Floating Rate
Notes Due November 8, 2090,Upgraded to Ca (sf); previously on
March 18, 2009 Downgraded to C (sf)

House of Europe Funding V PLC, issued in October 2006, is a
collateralized debt obligation backed primarily by a portfolio of
European RMBS, CMBS, and CDOs.

Ratings Rationale

The rating actions are primarily a result of deleveraging of the
Class A1 notes and an increase in the transaction's over-
collateralization ratios since August 2013. The Class A1 notes
have paid down by approximately 14.3%, or EUR63.0 million, since
August 2013. Based on Moody's Calculation, the over-
collateralization ratios of the Class A1 and Class A2 notes are
currently 112.7% and 95.04%, respectively versus 109.4% and
93.79% in August 2013, respectively.

The deal also benefits from shorter remaining term to maturity
for approximately EUR88.5 million bespoke collateralized
synthetic obligations (CSOs) in the portfolio. Out of seven
assets, six CSOs currently retain positive enhancement levels
with all of them having less than one year remaining until their
maturities.

The rating action reflects the updates to Moody's SF CDO
methodology described in "Moody's Approach to Rating SF CDOs"
published on March 6, 2014. These updates include: (i) lowering
the resecuritization stress factors for RMBS (US Prime, Subprime,
Manufactured Housing), CDOs exposed to investment grade corporate
assets, and ABS backed by franchise loans or by mutual fund fees;
(ii) using a common table of recovery rates for all structured
finance assets (except for CMBS and SF CDO); and (iii) providing
more guidance on the rating caps Moody's apply to deals
experiencing event of default. In taking the foregoing actions,
Moody's also announced that it had concluded its review of its
rating on the issuer's Class A1 Notes announced on March 6, 2014.
At that time, Moody's said that it had placed the rating on
review for upgrade as a result of the aforementioned methodology
updates.

Methodology Underlying the Rating Action

The principal methodology used in this rating was "Moody's
Approach to Rating SF CDOs," published in March 2014.

Factors That Would Lead To an Upgrade or Downgrade of the Rating:

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

1) Macroeconomic uncertainty: Primary causes of uncertainty about
assumptions are the extent of any slowdown in growth in the
current macroeconomic environment and in the commercial and
residential real estate property markets. Although the commercial
real estate property markets are gaining momentum, consistent
growth will be unlikely until the volume of transactions
increases, distressed properties are cleared from the pipeline
and job creation rebounds. The residential real estate property
market is subject to uncertainty about housing prices; the pace
of residential mortgage foreclosures, loan modifications and
refinancing; the unemployment rate; and interest rates.

2) Deleveraging: One source of uncertainty in this transaction is
whether deleveraging from unscheduled principal proceeds,
recoveries from defaulted assets, and excess interest proceeds
will continue and at what pace. Faster deleveraging than Moody's
expects could have a significant impact on the notes' ratings.

3) Recovery of defaulted assets: The amount of recoveries
received from defaulted assets reported by the trustee and those
that Moody's assumes as having defaulted as well as the timing of
these recoveries create additional uncertainty. Moody's analyzed
defaulted assets assuming no recoveries, and therefore,
realization of any recoveries in the future would positively
impact the notes' ratings.


IHLE GROUP: German Court Starts Insolvency Process
--------------------------------------------------
Tyrepress reports that the local regional court (Neu-Ulm) last
week commenced insolvency proceedings against Ihle Group after
determining an inability to pay and over-indebtedness.

The court has appointed lawyer Prof. Dr. Martin Hormann
liquidator for Reifen-Ihle GmbH while lawyer Alexander Reus is
responsible for Reifen Ihle Service GmbH, according to Tyrepress.

The court has also appointed a creditors' committee, the report
says.

Creditors will meet together on June 25 and based on the
liquidators' report, decide how to go forward with the process,
Tyrepress notes.

Gunzburg, Bavaria-based Ihle Group is Germany's largest
retreader. The group filed for insolvency in late February.


IRISH BANK: Mortgage Holders Protest Over Loan Sale
---------------------------------------------------
RTE News reports that ten Irish Bank Resolution Corp. (IBRC)
mortgage holders who are protesting against their loans being
sold are staging a sit-in in liquidator KPMG's Dublin offices.

The protesters said in a statement that they are representing
former Irish Nationwide Building Society mortgage holders who
have become embroiled in the IBRC liquidation, RTE relates.

KPMG, as liquidators, decided to sell 13,250 mortgages in
portfolios and refused mortgage holders the opportunity to bid
for their loans, RTE discloses.

"About 6,000 mortgages have already been auctioned to the vulture
funds like Oaktree or Lone Star.  They were able to bid for our
homes while we were left powerless by the liquidator and the law.
We are totally opposed to this immoral sale and the manner in
which it is being carried out," RTE quotes the protesters as
saying.

According to RTE, a new sales process will begin in the coming
weeks for the remaining unsold 6,000 mortgages.

                   About Irish Bank Resolution

Irish Bank Resolution Corp., the liquidation vehicle for what was
once one of Ireland's largest banks, filed a Chapter 15 petition
(Bankr. D. Del. Case No. 13-12159) on Aug. 26, 2013, to protect
U.S. assets of the former Anglo Irish Bank Corp. from being
seized by creditors.  Irish Bank Resolution sought assistance
from the U.S. court in liquidating Anglo Irish Bank Corp. and
Irish Nationwide Building Society.  The two banks failed and were
merged into IBRC in July 2011.  IBRC is tasked with winding them
down and liquidating their assets.  In February, when Irish
lawmakers adopted the Irish Bank Resolution Corp., IBRC was
placed into a special liquidation in the Irish High Court to
complete liquidation and distribution of the two banks' assets.

IBRC's principal asset as of June 2012 was a loan portfolio
valued at some EUR25 billion (US$33.5 billion). About 70 percent
of the loans were to Irish borrowers. Some 5 percent of the
portfolio was under U.S. law, according to a court filing.  Total
liabilities in June 2012 were about EUR50 billion, according
to a court filing.

Most assets in the U.S. have been sold already.  IBRC is involved
in lawsuits in the U.S.

IBRC was granted protection under Chapter 15 of the U.S.
Bankruptcy Code in December 2013.

Kieran Wallace and Eamonn Richardson of KPMG have been named the
special liquidators.



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ALITALIA SPA: Etihad Open To Talks, But Won't Budge On Demands
--------------------------------------------------------------
Reuters reported that Etihad Airways has signaled that it is
ready to continue talks on a potential investment in Italy's
troubled Alitalia but it refuses to budge on tough conditions on
debt restructuring and job cuts, a source close to the talks
said.

According to the report, loss-making Alitalia was kept afloat by
a government-engineered EUR500 million (US$691 million) rescue
package last year, but it needs to find a cash-rich partner
quickly to revamp its flight network or risk having to ground its
planes.

Sources have said that Abu Dhabi-based Etihad could invest
EUR500 million in return for a 49 percent stake, but talks
reached a stalemate this month when the Italian carrier raised
concerns over the Gulf airline's conditions, the report related.

In a letter, Etihad reiterated that it wants banks to convert
half of Alitalia's debt of more than EUR800 million into shares
and the other half to be written off, Reuters further related,
citing the source.  It also wants up to cut 3,000 jobs from
Alitalia's 14,000-strong workforce.

"The letter suggests Etihad is willing to negotiate, but the room
for manoeuvre is slim," Reuters cited the source as saying.

                          About Alitalia

Alitalia-Compagnia Aerea Italiana has navigated its way through
a successful restructuring.  After filing for bankruptcy
protection in 2008, Alitalia found additional investors, acquired
rival airline Air One, and re-emerged as Italy's leading airline
in early 2009.  Operating a fleet of about 150 aircraft, the
airline now serves more than 75 national and international
destinations from hubs in Fiumicino (Rome), Milan, Turin, Venice,
Naples, and Catania.  Alitalia extends its network as a member of
the SkyTeam code-sharing and marketing alliance, which also
includes Air France, Delta Air Lines, and KLM.  An Italian
investor group owns a majority of the company, while Air France-
KLM owns 25%.


SAFILO GROUP: S&P Raises CCR to 'B+' on Improved Credit Metrics
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it had raised its
long-term corporate credit ratings on Italy-based eyewear
manufacturer Safilo Group SpA and Safilo SpA to 'B+' from 'B'.
The outlook is stable.

The upgrade reflects S&P's view that Safilo will likely maintain
the resilient operating performance and stable credit metrics S&P
saw last year, enabling it to refinance its debt facilities, most
of which mature in June 2015.  In 2013, Safilo's organic revenue
declined by about 1%, while the Standard & Poor's adjusted EBITDA
margins held steady at about 12%, despite the termination of the
profitable Armani license at the end of 2012.

The strong performance of Safilo's portfolio of licenses
(excluding Armani) and the growth of its house brands -- in
particular Polaroid following a global relaunch -- enabled a
resilient top-line performance in 2013.  The group's Standard &
Poor's adjusted EBITDA margins remained broadly stable, thanks to
fairly stable revenues, a positive product mix, and a solidarity
agreement between Safilo, the unions, and the Italian government,
whereby Safilo is able to adjust its workforce in Italy to the
level of its production.  The solidarity agreement was put in
place after the license with Armani was terminated; most of the
Armani eyewear products were made at Safilo's Italian facilities.

In S&P's base case, it assumes:

   -- That demand for eyewear products will continue to increase.
      This is based on S&P's forecast of improved macroeconomic
      prospects in developed markets, continuing growth in
      emerging markets, and the increasing penetration of
      prescription frames and sunglasses;

   -- About 2%-3% growth in organic revenues in 2014 and 2015,
      reflecting continued growth of existing licenses and in-
      house brands, albeit slower than last year because they
      benefitted from the termination of the license with Armani.

   -- S&P anticipates that Safilo will be able to renew most of
      its expiring licenses, while benefiting from new license
      agreements, such as with Fendi;

   -- Slight pressure on the EBITDA margin, despite higher
      operating leverage.

   -- This is to account for the end of the solidarity agreement
      in August 2014, which S&P understands could be extended by
      a year.  S&P also considers Safilo's sustained high
      expenses in marketing to support the growth of house brands
      such as Polaroid and Carrera;

   -- Moderately negative working capital movements, reflecting
      S&P's forecast of top-line growth;

   -- Fairly stable capital expenditure levels, at about 3.5% of
      revenues;

   -- No shareholder returns; and

   -- Limited acquisition activity.

Based on these assumptions, S&P arrives at the following credit
measures, using a weighted average calculation for 2012-2016 in
line with S&P's criteria:

   -- Adjusted debt to EBITDA of about 3x and funds from
      operations (FFO) to debt of about 20%.  S&P adjusts
      Safilo's reported debt by adding pension liabilities and
      operating leases, and S&P do not deduct any surplus cash.

   -- Positive free cash flow generation in excess of
      EUR10 million annually.

"We assess Safilo's business risk profile as "weak" and its
financial risk profile as "significant."  Together, these
assessments lead to an anchor of 'bb-' for Safilo.  The anchor is
the starting point in assigning an issuer credit rating to a
company under our corporate criteria.  We subtract one notch from
the anchor because of our negative view of the company's
financial policy, resulting in a rating of 'B+'," S&P said.

"The one-notch downward adjustment reflects our view of the
uncertainties about the timing of the group's refinancing, given
that in 2013 Safilo secured additional liquidity lines only
shortly before its bond matured.  In addition, we consider that
the company may continue using its currently low-interest-rate
credit facilities, which are available for another 14 months.
Furthermore, the adjustment reflects uncertainties concerning
Safilo's future acquisition plans.  So far, acquisitions have
been conservatively financed, primarily due to the group's
stretched liquidity.  But we believe this may change once the
upcoming refinancing of the group's 2015 facilities provides
additional liquidity," S&P added.

The stable outlook reflects S&P's view that Safilo will maintain
resilient operating performance and stable credit metrics in 2014
and 2015.  It incorporates S&P's forecast that Safilo will keep
adjusted debt to EBITDA in the 3x-4x range and FFO to debt at
about 20%, while maintaining positive free cash flow generation.

Upside scenario

Once Safilo has addressed its June 2015 refinancing needs, S&P
could raise the rating if Safilo sustained financial metrics at
the middle of its category for "significant" financial risk,
including FFO to debt of about 25%.  However, an upgrade would
hinge on Safilo's commitment to maintaining this lower debt
leverage ratio and increasing clarity regarding future debt
financing and acquisitions.

Downside scenario

S&P could lower the rating if Safilo's debt-to-EBITDA ratio
increased, exceeding 4x, or its free cash flow turned negative.

In addition, although S&P views this scenario as unlikely at the
moment, it could lower the rating by several notches if Safilo
was unable to refinance its debt by the end of 2014.


ZUCCHERIFICIO: Offers for Asset Sales Open Until May 19
-------------------------------------------------------
Dr. Lorenzo Di Nicola, the liquidator of the Creditors
Arrangement Act of Zuccherificio del Molise s.p.a., intends to
dispose the following assets in one single batch:

(1) Sugar production and marketing enterprise, consisting of
     property, plant, machinery and equipment on an area of
     roughly 256,000 m2.  The assets are located in Pantano
     Basso, S.S. Sannitica km 217, Termoli (CB), Italy.

     Interested parties are notified that a business branch of
     the company has been leased to Nuovo Zuccherificio del
     Molise S.r.l. with deed issued by Notary Colavita in Larino
     dated Oct. 7, 2012.

(2) Shareholdings comprising the whole share capital of Nuovo
     Zuccherificio del Molise s.r.l., with registed office in
     Pantano Basso, S.S. Sannitica Km 217, Termoli (CB), Italy.
     Share capital is EUR10,000.  With Ministry of Agriculture,
     Food and Forestry Decree prot. no. 000404 dated July 25,
     2012, the Company was assigned the production of 84,326 tons
     of white sugar.

The basic tender price for the entire lot is equal to EUR20
million.

The expressions of interest must be received by 1:00 p.m. on
May 19, 2014, at the Liquidator's office.  Those submitting
expressions of interest shall be granted access to the Virtual
Data Room.

The binding offers shall be received by 1:00 p.m. on June 10,
2014 at the Bankruptcy Registry of the Court of Larino (CB).

The envelope containing the bids received will be opened on
June 11, 2014 at 12:00 p.m. before the Designated Magistrate at
the Court of Larino (CB) and awarded to the bidder, with relative
tender if more than one bid is received.

The complete Specification, the estimation surveys and other
documents relating to the sale are available on the
www.zuccherificiodelmolise.it and at the Virtual Data Room.

For further information, interested parties may contact:

          Dr. Lorenzo Di Nicola
          Liquidator
          Via Muzii 51 - 65123 Pescara, Italy
          Tel No: (39) 085 380207
          Fax No: (39) 085 4415009
          E-mail: lorendin@tin.it



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


SNS Bank: Moody's Keeps Rating Over Deal Documentation Amendment
----------------------------------------------------------------
Moody's Investors Service said that annual amendments to deal
documentation would not, as of this time, result in a reduction
or withdrawal of the current ratings on the covered bonds issued
by SNS Bank N.V. (deposits Baa2 stable, standalone bank financial
strength rating D+/adjusted baseline credit assessment ba1)

On April 30, 2014, the covered bonds transaction underwent a
number of changes, including (1) the implementation of
commingling risk protection in the asset cover test, sized at
approximately 1.5 times the monthly collections; (2) the addition
of bank savings loans as newly eligible assets (such inclusion
being conditioned to the Covered Bond Company, ('CBC') entering
into bank savings participation agreements in order to mitigate
the inherent set-off risk of these loans); (3) the increase of
the swap margin retained by the CBC in the total return swap with
SNS to 90 bps from 70 bps; and (4) the formalization of the
transfer of the administrator's role from SNS to Intertrust
Administrative Services B.V. with retroactive effects as of
January 2012.

Other amendments mostly align the program documentation with the
current legislation and regulations.

In Moody's view, the amendments listed above do not affect the
ratings on the outstanding covered bonds.

Moody's opinion only addresses the credit impact associated with
the proposed amendments. Moody's is not expressing any opinion as
to whether these actions have, or could have, other non-credit
related effects on the interests of noteholders or
counterparties.



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


* POLAND: Number of Bankruptcies Down 26% in April 2014
-------------------------------------------------------
Warsaw Business Journal reports that the number of bankruptcies
fell to 65 in April 2014, compared to 88 in the corresponding
month last year, a 26% decrease, according to Euler Hermes
calculations based on official data.

"Within the first four months of this year, 263 companies have
been declared bankrupt, against 328 in the same period last
year," WBJ quotes the firm as saying in a statement.

The three companies with the largest revenue that went bust in
April were wholesalers, WBJ notes.

Euler Hermes, as cited by WBJ, said that the number of
manufacturers and construction firms going bankrupt has decreased
significantly this year, although still remains high.  A total of
60 manufacturing companies have gone under this year thus far,
WBJ states.



===============
P O R T U G A L
===============


PORTUGAL: Passes Troika's Final Bailout Review
----------------------------------------------
Sergio Goncalves and Axel Bugge at Reuters report that Portugal's
Deputy Prime Minister Paulo Portas and creditors said on Friday
the economy has passed a final review by its EU and IMF lenders,
paving the way for a smooth exit from its EUR78 billion bailout
program this month.

According to Reuters, Portugal has passed all reviews of its
economy under the bailout, which it signed up to in mid-2011 as
the euro zone debt crisis engulfed the country, triggering its
worst downturn since the 1970s.

Experts from the "troika" -- the European Commission, the
European Central Bank and International Monetary Fund -- finished
their review on Thursday after a two-week visit to Lisbon,
Reuters relates.

"The program remains on track to be concluded, following
completion of this final review," Reuters quotes the troika as
saying in a statement.  "The program has put the Portuguese
economy on a path towards sound public finances, financial
stability and competitiveness."

But they warned that Portugal needs to stick to reforms and cut
its budget deficit after the end of the bailout on May 17,
Reuters notes.



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


VODOKANAL ST. PETERSBURG: S&P Revises Ratings Outlook to Negative
-----------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Russian
regional water utility Vodokanal St. Petersburg to negative from
positive.

At the same time, S&P affirmed its 'BB+/B' long- and short-term
corporate credit ratings and 'ruAA+' Russia national scale rating
on the utility and S&P's 'BB+' foreign currency long-term rating
on its senior unsecured debt.

The affirmation reflects the revision of S&P's assessment of
VKSPB's stand-alone credit profile (SACP) to 'bb-' from 'b+'
based on S&P's revised view of the company's liquidity management
and assessment of its liquidity as "adequate."  It also reflects
the lowering of S&P's ratings on the City of St. Petersburg to
'BBB-' from 'BBB', as it continues to see a "very high"
likelihood that VKSPB would receive timely and sufficient
extraordinary support from the city, its ultimate owner, if
necessary.

S&P's view of VKSPB's liquidity as adequate is based on the
utility's track record of cautious liquidity management,
including maintenance of sufficient headroom under financial
covenants, improved financial management, and S&P's estimation of
potential sources of liquidity to potential uses of liquidity of
above 1.2x in the next year.

S&P's assessment of VKSPB's stand-alone credit profile at 'bb-'
is also based on its view of the utility's "weak" business risk
profile and "intermediate" financial risk profile, and a one-
notch downward adjustment for S&P's "negative" financial policy
modifier.

The negative outlook mirrors that on St. Petersburg and reflects
S&P's view of the company's strategic role for the city, its 100%
owner.

S&P assumes that VKSPB will have operational and financial
performance commensurate with the current SACP, including an
EBITDA margin of 30%-40%, debt to EBITDA below 1.5x, and FFO to
debt above 60%.  S&P also expects that the company will retain
its solid monopoly position and maintain an adequate liquidity
and maturity profile.

S&P could lower the rating on VKSPB if it downgraded St.
Petersburg by one notch, all else being equal.  Under S&P's
criteria for GREs, it might consider a negative rating action if
it was to revise its assessment of the likelihood of
extraordinary government support to "high" from "very high,"
although in S&P's view there are no signs of the utility's role
for and link with the St. Petersburg city government weakening
over the ratings horizon.

S&P could revise the outlook to stable if it revised the outlook
on St. Petersburg to stable and VKSPB's SACP remained unchanged.

In accordance with S&P's criteria, it would need to revise the
SACP upward by at least two notches to result in a one-notch
upgrade of VKSPB.  However, this is unlikely, in S&P's view, in
the near term owing to the utility's substantial investment
program.



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


PYMES SANTANDER 9: S&P Assigns Prelim. B- Rating to Class B Notes
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned preliminary credit
ratings to Fondo de Titulizacion de Activos PYMES SANTANDER 9's
class A and B notes.

The issuer is a "fondo de titulizacion de activos" (a Spanish
special-purpose entity established to issue the notes), which S&P
considers to be in line with its European legal criteria.

S&P's preliminary ratings on the class A and B notes reflect its
assessment of the transaction's credit and cash flow
characteristics, as well as S&P's analysis of the transaction's
exposure to counterparty, legal, and operational risks.  For the
class A notes, S&P's analysis indicates that the available credit
enhancement is sufficient to mitigate the transaction's exposure
to credit and cash flow risks at a higher rating level than 'A
(sf)'.  S&P considers that the class A notes can withstand all of
its relevant cash flow stresses applicable at a 'AA+ (sf)' rating
level.  However, the transaction's exposure to counterparty risk
caps at 'A (sf)' S&P's preliminary rating on the class A notes
under its current counterparty criteria.

This transaction is exposed to counterparty risk through Banco
Santander S.A. as the bank account provider, holding the payment
account and the cash reserve account.  Banco Santander is also
the originator and servicer of the loans.  The documented
downgrade provisions state that if S&P's rating on the bank
account provider falls below 'BBB/A-2', the issuer would have to
find a suitably rated replacement within 60 calendar days.  Banco
Santander would bear any costs arising from the remedy action.
This counterparty risk exposure is classified as "bank account
limited" under S&P's current counterparty criteria, which caps
the transaction's maximum achievable rating at 'A (sf)'.

S&P's European small and midsize enterprise (SME) collateralized
loan obligation (CLO) criteria contain supplemental stress tests.
S&P determined that the maximum achievable rating for the class A
notes is 'A (sf)'.  Consequently, the largest industry and the
largest region default tests are not applicable under S&P's
criteria.  The transaction's current capital structure passes the
largest obligor default test, which is the only stress test
applicable under S&P's criteria.

At closing, the transaction will have a reserve fund, which will
provide credit enhancement to the class A and B notes.  This will
pay interest and principal shortfalls on the class A and B notes
during the transaction's life.  A subordinated loan provided by
Banco Santander at closing will fund the reserve fund.  The
reserve fund's initial amount will be 20% of the initial
collateral balance, and the issuer will deposit it in the
treasury account held with Banco Santander.

The total available credit enhancement for the class A notes will
be 53.66%, which subordination and the reserve fund provides.
The available credit enhancement for the class B notes will be
20%, which only the reserve fund provides.

There will be no interest rate swap agreement to hedge the
transaction's exposure to interest rate risk arising from the
mismatch between the interest rate paid under the assets and the
interest rate paid under the notes.

As is typical in other Spanish transactions, interest and
principal will be combined into a single priority of payments,
with an interest deferral trigger for the class B notes, based on
cumulative defaults.  Interest on the class B notes will be
postponed if cumulative defaults reach 5% of the initial
collateral balance.  Principal for the class B notes will be
fully subordinated to the class A notes.

The class A and B notes will pay a floating rate of interest
quarterly (three-month Euro Interbank Offered Rate [EURIBOR] plus
a 0.75% and 0.80% margin, respectively).

PYMES SANTANDER 9 securitizes a static pool of secured and
unsecured loans, which Banco Santander granted to Spanish SMEs
and self-employed borrowers.

POTENTIAL EFFECTS OF PROPOSED CRITERIA CHANGES

These preliminary ratings are based on S&P's applicable criteria,
including those set out in the criteria article "Nonsovereign
Ratings That Exceed EMU Sovereign Ratings: Methodology And
Assumptions," published on June 14, 2011.  However, please note
that these criteria are under review.

As a result of this review, S&P's future criteria applicable to
ratings above the sovereign may differ from its current criteria.
This potential criteria change may affect the ratings on all
outstanding notes in this transaction.  S&P will continue to rate
and surveil these notes using its existing criteria.

RATINGS LIST

Fondo de Titulizacion de Activos, PYMES SANTANDER 9
EUR500 Million Asset-Backed Floating-Rate Notes

Class    Prelim.            Prelim.
         rating              amount
                           (mil. EUR)

A        A (sf)              331.70
B        B- (sf)             168.30



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


CO-OPERATIVE GROUP: Lord Myners to Call for Board Reform
--------------------------------------------------------
Scott Reid and John-Paul Ford Rojas at The Scotsman report that
this week, Lord Myners is expected to call for the Co-operative
Group to adopt a slimmed-down, plc-style management body,
ushering in sweeping changes to the group's complex structure.

The former City minister's long-awaited proposals will come a
week after the running of the troubled mutual was criticized in a
review by Sir Christopher Kelly into the near-collapse of its
banking arm, The Scotsman says.

It is thought that Mr. Myners will call for the abolition of the
Co-op's existing 21-member board -- replacing it with a "plc-
style" body to take commercial decisions, The Scotsman notes.  He
has rejected the description, claiming his proposed board would
be far more accountable than that of any listed company, while
other reforms would place increased power in the hands of its
employees and eight million members, The Scotsman relates.

The peer has pinned the blame for the disastrous losses at the
group on former managers "who were allowed to run amok like kids
in a sweet shop", The Scotsman relays.

Regional membership boards and independent societies that
currently hold sway in the group, whose interests span food
retailing, travel and funeral provision, are reported to be
unhappy about the Myners proposals, The Scotsman states.

But in an interim review published in March, he insisted the
mutual had to take urgent steps to reform a "massive failure" of
governance or it would go bust, according to The Scotsman.  The
Co-op has already set out details of a resolution based on
measures drawn up by Mr. Myners that is due to be put to its
annual general meeting on May 17, The Scotsman discloses.

Co-operative Group is a mutually owned food-to-funerals
conglomerate.  Founded in 1863, the Co-op Group has more than six
million members, employs more than 100,000 people, and has
turnover of more than GBP13 billion.


DEGANWY QUAY: Put Up for Sale for GBP7 Million
----------------------------------------------
Neil Gerrard at Caterer and Hotelkeeper reports that the Deganwy
Quay hotel in Conwy in Wales has been put up for sale for
GBP7 million, after its holding company went into administration.

The hotel, which overlooks Conwy estuary, will continue to trade
as normal as it is run separately under a lease by a different
company, Caterer and Hotelkeeper discloses.

The move came after administrator PricewaterhouseCoopers was
appointed as administrator of non-trading holding company
Albemarle Leisure earlier this year, Caterer and Hotelkeeper
relates.


GHERKIN: Lenders Ask Court to Settle Dispute Over Swaps
-------------------------------------------------------
Kit Chellel at Bloomberg News reports that lenders to the Gherkin
tower asked a London court to settle a dispute over GBP140
million (US$236 million) from interest-rate swaps as the
skyscraper prepares for a debt restructuring or sale.

Landesbank Hessen-Thueringen Girozentrale and other lenders said
GBP400 million in loans used to buy the property should be repaid
ahead of money owed to Bayerische Landesbank under the swaps,
Bloomberg relays, citing court documents at a hearing on
April 30.

Lenders to the Gherkin hired Deloitte LLP on April 24 after loan
terms were breached, Bloomberg recounts.

Bayerische Landesbank, as cited by Bloomberg, said in legal
documents that about GBP140 million that would be due under the
swap should take priority.  As well as being a counterparty, the
Munich-based bank is a lender to the Gherkin, Bloomberg notes.



JK BUCKENHAM: High Court Sets June 4 Meeting for Scheme Creditors
-----------------------------------------------------------------
The High Court of Justice of England and Wales has directed for a
meeting to be convened of the Scheme Creditors of J.K. Buckenham
Limited (also traded as "Weather Direct") at 11:00 a.m. (GMT) on
June 4, 2014 at the offices of PricewaterhouseCoopers LLP, at 7
More London Riverside, London SE1 2RT, United Kingdom for the
purpose of considering, and if thought fit, approving (with or
without modification) the scheme of arrangement proposed to be
made between the Scheme Company and its Scheme Creditors pursuant
to Part 26 of the Companies Act 2006.

The meeting directive was issued in an April 16, 2014 Order.

All Scheme Creditors will be required to register their
attendance at such place and time either in person or by proxy.
Registration will commence at 10:00 a.m. and Scheme Creditors are
requested to arrive no later than 10:45 a.m.

The Scheme Document (including a short statement explaining the
effect of the Scheme), Proxy and Voting Form for use at the
Scheme Meeting and the Notes for completing the Proxy and Voting
Form can be downloaded from the Website.  Alternatively, hard
copies of all documents can be obtained, free of charge, by
contacting the Scheme Company or the Scheme Adviser.

Scheme Creditors may attend and vote in person (or, if a
corporation, by a duly authorized representative) at the Scheme
Meeting.  Alternatively, they may appoint another person, whether
a Scheme Creditor or not, as a proxy to attend and vote in their
place.

Proxy and Voting Forms should be returned electronically by e-
mail to scheme@jkb.co.uk or by post or personal delivery to the
Scheme Company, and in any event, so that they are received by
5:00 p.m. (GMT) no later than 3 business days before the Scheme
Meeting.  Proxy and Voting Forms may also be handed in at the
registration desk prior to the commencement of the Scheme
Meeting.

By the same Order, the Court has appointed Peter Greaves, or
failing him, Douglas Nigel Rackham, both of
PricewaterhouseCoopers LLP, of 7 More London Riverside, London
SE1 2RT to act as chairman of the Scheme Meeting and has directed
the chairman to report the result of the meeting to the Court.

In the event the Scheme of Creditors vote in favor of the Scheme,
it will be subject to the subsequent approval of the Court.

J.K. Buckenham Limited's business address is:

         Scheme Company
         J.K. Buckenham Limited
         16 Eastcheap
         London
         EC3M 1BD
         United Kingdom
         Contact: Gemma Seymour or Will Bloomer
         Tel No: (+44)-0-20-7648-7127
         E-mail: scheme@jkb.co.uk

The Scheme Adviser can be reached at:

        PricewaterhouseCoopers LLP
        7 More London Riverside
        London
        SE1 2RT
        United Kingdom
        Contact: James Ferris or Madhavi Velani
        Tel: (+44)-0-20-7804-5779
        E-mail: jkb@uk.pwc.com


NORTH WORCESTERSHIRE: Residents Face Six Years of Building Work
---------------------------------------------------------------
http://www.birminghampost.co.uk/news/local-news/northfield-
residents-living-near-north-7066049
(matet)

Birmingham Post reports that residents living near a century-old
golf club set to be redeveloped as a housing estate face six
years of building work in their neighbourhood, a Parliamentary
candidate claims.

Plans have been drawn up by Bloor Homes to build 800 homes at the
North Worcestershire Golf Club, in Northfield, which faces
insolvency due to declining membership, the Birmingham Post says.

According to the report, Prospective Conservative MP for
Northfield Rachel Maclean accepted the club has no option but to
sell its land for redevelopment after discussions involving a
partnership with Bournville College collapsed.

However, she said local people faced up to six years of
construction work in their neighbourhood if the plans were
approved -- which is "too much to ask," the report relays.

"There is a real sense of uncertainty and, in some cases, anger,
over the situation, that will, after all, have a significant
impact on people's daily lives while the construction is in
progress," the report quotes Ms. Maclean as saying.

"The nearby Balaam Wood development at Egg Hill is already
adversely affecting people. I hear regularly from residents who
are concerned that construction lorries are using residential
streets that are not fit for purpose, increasing the risk of an
accident taking place.  As well as this, Longbridge residents
across the area have already patiently endured years of building
work as the new town centre takes shape. The feeling now is that
they have had enough. Six more years of construction work is too
much to ask."

The Birmingham Post notes that the proposals come after adult
male membership at the club fell from more than 400 in 2005 to
only 276 last year, meaning income has dipped by GBP130,000.

Bloor Homes said the proposals could include playing fields,
footpaths, cycleways and extensive public open space, the report
adds.


* UK: Corporate Insolvencies to Rise in Next 12 Months, R3 Says
---------------------------------------------------------------
Insider Media reports that corporate insolvencies will rise over
the next 12 months according to a majority of members of an
insolvency trade body.

More than half (56 per cent) of R3 members who work on corporate
insolvency made the prediction which ties in with the latest
insolvency statistics released, Insider Media relates.

Those figures show an increase in corporate insolvencies in the
first three months of the year compared with the previous quarter
and also compared with the same period the previous year,
according to the report.

Corporate insolvencies have historically peaked during the early
stages of an economic recovery, the report says. Insolvencies
last peaked during the 2008-2009 recession before falling away
again as the recovery failed to gain ground.

"Sustained economic recovery is very welcome, but many businesses
are not out of the woods yet," the report quotes William
Ballmann, chairman of insolvency trade body R3 in Yorkshire and
partner at national law firm Gateley, as saying.  "The early
stages of a recovery can be even more difficult for a business to
negotiate than a recession."



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


* EUROPE: ESM May Directly Invest in Troubled Bank in 2015
----------------------------------------------------------
Martin Santa and Jan Strupczewski at Reuters report that
Jeroen Dijsselbloem, the chairman of euro zone finance ministers
said on Monday, the euro zone's bailout fund, the European
Stability Mechanism, could directly invest in a troubled bank
next year, after 8% of the bank's total liabilities are written
off.

The bloc's leaders agreed in 2012 that the ESM must have the
option of directly buying a stake in a troubled bank to break the
"doom loop" that binds indebted governments to the unstable banks
they are trying to prop up, Reuters relates.

According to Reuters, Mr. Dijsselbloem, who chairs meetings of
euro zone finance ministers, said ministers agreed the ESM should
be able to invest in banks next year after the option of raising
money from private investors or the government failed.

This means the direct investment of the euro zone bailout fund in
a troubled euro zone bank would be a last-resort measure after
all other options were exhausted, Reuters notes.


                            *********

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
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Information contained herein is obtained from sources believed to
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                 * * * End of Transmission * * *