TCREUR_Public/140807.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Thursday, August 7, 2014, Vol. 15, No. 155



AGBANK: S&P Lowers Counterparty Rating to 'B-'; Outlook Stable


RONIN EUROPE: S&P Raises Counterparty Credit Ratings to 'B+'


TALVIVAARA MINING: Has Enough Liquidity for Reorganization


REMY COINTREAU: S&P Lowers Corporate Credit Ratings to 'BB+/B'


DECO 10-PAN EUROPE 4: S&P Raises Rating on Class A2 Notes to BB+


ALLIED IRISH: S&P Affirms 'BB/B' Counterparty Credit Ratings
AVOCA CLO XII: Fitch Assigns 'B-(EXP)sf' Rating to Class F Notes
HARVEST CLO VII: Fitch Affirms 'BBsf' Rating on Class E Notes
O'BRIEN AND O'FLYNN: Court Appoints Provisional Liquidators


ALLIANCE OIL: Fitch Withdraws 'B' Issuer Default Ratings


CITS MEDIJS: Court Freezes Assets After Defamation Claims


BRAAS MONIER: S&P Raises CCR to 'B+' on Completion of IPO
TRAVELPORT FINANCE: S&P Assigns 'CCC+' Corporate Credit Rating


FAXTOR ABS 2005-1: S&P Lifts Rating on Class A-3 Notes to 'BB'


BANCO ESPIRITO: Creditor Agricole Says Unaware of Misconduct


TERMOELECTRICA SA: Several Assets Sold For EUR13.8MM


BREBORO HOLDINGS: S&P Revises Outlook to Neg. & Affirms 'B-' CCR
INTAIR: To Halt Operations on Negative Currency Trends
NORDIC STAR: Goes Bankrupt; Halts Operations
SEVERSTAL OAO: S&P Revises Outlook to Pos. & Affirms 'BB+' CCR
YAKUTSK FUEL: Fitch Affirms 'B-' Long-Term IDR; Outlook Stable


CODERE SA: Standstill Agreement with Creditors to End on Sept. 3


PERSTORP HOLDING: S&P Cuts Rating on EUR270MM Sr. Notes to 'CCC+'


MRIYA AGRO: Fitch Lowers Long-Term Issuer Default Rating to 'C'

U N I T E D   K I N G D O M

EPIC LTD: S&P Lowers Ratings on Three Note Classes to 'D(sf)'
FLOORS-2-GO: In Administration for Third Time
SUMNER'S MEDIA: 11 Jobs Lost as Firm Placed Into Liquidation
WASTE4FUEL: In Administration, Enters Voluntary Arrangement



AGBANK: S&P Lowers Counterparty Rating to 'B-'; Outlook Stable
Standard & Poor's Ratings Services lowered its long-term
counterparty credit rating on Azerbaijan-based AGBank to 'B-'
from 'B'.  The outlook is stable.  At the same time, the 'C'
short-term counterparty credit rating was affirmed.

S&P downgraded AGBank because it thinks think that AGBank's
capital and earnings metrics are substantially deteriorating on
the back of rapid asset growth, increased credit costs, and the
absence of new capital inflow.  S&P now believes its assessment
of the bank's capital position is a negative rating factor in
comparison with last year's assessment, and S&P thinks it will
remain so in 2014-2015.

In S&P's opinion, delays in working out existing high levels of
problem loans negatively affected the bank's overall
profitability and capital buildup in 2013, contrary to S&P's

The ratings on AGBank reflect S&P's 'bb-' anchor, its baseline
assessment for a commercial bank operating in Azerbaijan.  S&P's
view also incorporates its opinion of the bank's "moderate"
business position, "weak" capital and earnings, "moderate" risk
position, "average" funding, and "adequate" liquidity, as S&P's
criteria define these terms.  The stand-alone credit profile is

The stable outlook on AGBank reflects S&P's view that the bank
will gradually stabilize its level of problem loans, increase
provisioning levels, and maintain at least the current
capitalization ratios.

S&P could take a negative rating action if it doesn't see a
pronounced reversal of current negative asset quality trends
within the next 12-18 months.  Another scenario for a downgrade
would be if the bank's capital position further deteriorated
drastically, notably if retained-earnings growth is not able to
match assets growth, with Standard & Poor's projected risk-
adjusted capital (RAC) ratio falling below 3%.

The possibility of a positive rating action is remote at this
time.  S&P could raise the ratings if AGBank sharply reduced its
nonperforming loan (loans overdue more than 90 days and
restructured loans) ratios to single-digit numbers while
recovering its profitability and improving capitalization so that
projected RAC ratio sustainably exceeds 5%.


RONIN EUROPE: S&P Raises Counterparty Credit Ratings to 'B+'
Standard & Poor's Ratings Services raised its long-term
counterparty credit ratings on Ronin Europe Ltd., Cyprus-based
subsidiary of Russian financial group Ronin Partners B.V., to
'B+' from 'B'.  At the same time, S&P affirmed its 'B' short-term
counterparty credit ratings on Ronin Europe.  The outlook is

The upgrade reflects S&P's view that Ronin Partners (the group)
and its Cypriot subsidiary Ronin Europe have demonstrated strong
capital and funding profiles and prudent investment management
policies amid falling equities prices and increased bond yields
on the Russian financial markets.  In the first six months of
2014, Ronin Europe has earned US$5.4 million compared to US$5.0
million for the whole of 2013.

The group has also reconfirmed its focus on relatively low-risk,
client-driven brokerage with a very limited proprietary position.
The average rating on the securities in the group's proprietary
portfolio is at the high end of the 'BB' category.  The group
neither provides complex derivatives, structured products, or
margin lending to its clients, nor does it offer brokerage
services to high-frequency or algorithmic traders.  Ronin
Europe's client base, though concentrated, is stable and
relationship-driven with around 50 active clients who are high-
net-worth individuals with businesses both in and outside of
Russia.  S&P notes that Ronin Europe has recently been accepted
as a direct member of Euroclear.

The group's leverage is very low.  Of total liabilities, 96% is
capital, which helps it absorb unexpected losses.  S&P expects
management to maintain this level of capitalization in the next
18 to 24 months.  The group has recently decreased its cash
management activities, whereby it used clients' funds or assets
to provide overnight collateralized loans to other clients.  This
has strengthened the group's funding structure, in S&P's view.

S&P considers that Ronin Partners has an ample liquidity cushion
in the form of cash and cash equivalents (generally about 30% of
the balance sheet and covering clients' funds).  As of year-end
2013, the group's cash and cash equivalents were US$51 million.
S&P understands that management sold part of its securities
portfolio earlier this year to further increase its liquidity

The ratings on Ronin Europe reflect its core status within the
group.  Ronin Partners owns 100% of Ronin Europe -- the group's
booking center for client-driven brokerage, underwriting
operations, and proprietary securities investments.  Ronin
Europe's business, operations, and strategy are highly integrated
with those of the group.

Ronin Europe is located in Cyprus, essentially for tax reasons,
and does business almost exclusively with Russian and other
overseas clients.  S&P understands that Ronin Europe holds its
proprietary assets and assets of customers at global banking and
financial institutions based outside of Cyprus.  S&P believes
that with its favorable legal and tax regimes and highly skilled
workforce, Cyprus will continue to be a key offshore financial

S&P calculates that Ronin Europe has exposure to Cyprus of well
below 10% of its total assets.  Under S&P's criteria, it do not
perform sovereign stress tests or apply rating caps to issuers
with under 10% exposure to the jurisdiction in which they are
based.  Therefore, S&P rates Ronin Europe above the sovereign
rating on the Republic of Cyprus.

The stable outlook reflects S&P's view that Ronin Partners will
maintain its conservative financial policies, strong
capitalization, and ample liquidity.  S&P anticipates that Ronin
Europe will remain a "core" entity for the group and that Ronin
Partners will continue supporting it, as it has done in the past.

"We could lower the ratings if Ronin Group decided to close its
operations in Cyprus or move them to other jurisdictions.  This
would lead us to reconsider Ronin Europe's "core" status for the
group.  In addition, we could revise the group credit profile
downward and, in turn, lower the ratings on Ronin Europe, if the
group changed its conservative investment philosophy,
substantially increased its risk appetite, and adopted more
aggressive growth strategies that led to a material drop in
profitability and capitalization.  We could also lower the
ratings on Ronin Europe if the group suffered significant
liquidity shortages or we saw an increase in single-name
concentrations both on the revenue and assets sides," S&P said.

At this stage, S&P considers a further upgrade unlikely.  S&P
would, however, consider raising the ratings if Ronin
successfully implemented its strategy, gradually expanding its
customer base and reducing revenue concentrations while improving
clarity about the group structure and maintaining profitability,
capitalization, and liquidity at current levels.


TALVIVAARA MINING: Has Enough Liquidity for Reorganization
Kati Pohjanpalo at Bloomberg News reports that Talvivaara Mining
Co. Ltd. said the company has enough liquidity to continue its
corporate reorganization and operations in the short-term.

According to Bloomberg, filing of the company's second quarter
report will be delayed to Aug. 27 from Aug. 14 due to ongoing
financing talks.

Talvivaara Mining Co. Ltd. is a Finnish nickel producer.

On November 15, 2013, Talvivaara filed for a corporate
reorganization to raise funds and avoid bankruptcy.  The company
suffered from falling nickel prices and a slow ramp-up at its
mine in northern Finland, forcing it to seek fundraising help
from investors and creditors.


REMY COINTREAU: S&P Lowers Corporate Credit Ratings to 'BB+/B'
Standard & Poor's Ratings Services lowered its short- and long-
term corporate credit ratings on French spirits manufacturer Remy
Cointreau S.A. to 'BB+/B' from 'BBB-/A-3'.  The outlook is

At the same time, S&P lowered its issue rating on Remy
Cointreau's senior unsecured notes to 'BB+' from 'BBB-'.  S&P
also assigned its '3' recovery rating to these notes, based on
S&P's application of its recovery methodology when S&P's long-
term rating on the issuer is 'BB+' or lower.

"The downgrade reflects our view that Remy Cointreau's credit
metrics will no longer be consistent with our assessment of its
financial risk profile as "modest."  We now expect our adjusted
debt-to-EBITDA ratio to be between 2x and 3x and have therefore
revised our assessment of the group's financial risk profile
downward to "intermediate."  This follows the sharp fall in Remy
Cointreau's operating profits because of the structural decrease
in the demand for Remy Martin cognac in China.  Both fiscal 2014
(year ended March 31) and first-quarter fiscal 2015 sales show a
slump in demand for cognac in China.  In our view, this fall is
not temporary but rather stems from an abrupt reduction in
Chinese consumption of luxury foreign products. Remy Cointreau
has been hit particularly hard by this shift, due to its leading
position in the upper end of the cognac industry," S&P said.

"We still view the group's business risk profile as "fair."  Our
assessment incorporates our view of the branded nondurables
industry as low risk and intermediate country risk, deriving from
the group's presence in both mature and fast growing countries.
The "fair" competitive position is supported by the group's
leading position globally in the cognac industry. Remy
Cointreau's products are all in the upper end of the cognac
range, however. Its competitive position is constrained by
limited diversification, with cognac representing about 53% of
group sales and 83% of reported operating profit in fiscal 2014
(versus 60% and 88% respectively in fiscal 2013).  The negative
effect of the group's limited diversification was visible in the
fiscal 2014 performance, when Chinese cognac sales shrank, and
both group sales and operating margin contracted sharply, despite
good results in other geographical areas.  We expect the group to
maintain its EBITDA margin in the average range for branded
nondurable goods, at about 16%-18%, and below the 20% achieved
between 2011 and 2013," S&P added.

Remy Cointreau's "intermediate" financial risk profile reflects
S&P's expectation that the group will maintain its adjusted debt-
to-EBITDA ratio in the 2x-3x range.  It had increased to 2.9x at
end-March 2014 as a consequence of weak EBITDA and increased
debt. S&P thinks fiscal 2015 will be another transition year, and
it do not envisage any free cash flow generation from operating
activities.  Debt to EBITDA will therefore likely be more than
3x. However, S&P assumes that from fiscal 2016, the ratio will
slowly improve, owing to gradually increasing EBITDA and resumed
generation of some free operating cash.

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

   -- Marginally positive GDP growth in most of Remy Cointreau's
      European markets, persistently high unemployment rates, and
      still-subdued consumer confidence.  S&P thinks the recent
      reduction in consumption of imported luxury goods in China
      will likely stretch over the next couple of years.

   -- A 13%-15% revenue decrease in 2014, including about 10%
      decrease linked to the Erington contract (a distribution
      contract terminated in March 2014) and about 3% growth in

   -- Reported EBITDA margin at roughly 17% in 2014 and 2015.

   -- Capital expenditures of about EUR40 million per year.

   -- Cash dividends of about EUR50 million in 2014 and EUR60
      million in 2015.

   -- Acquisition spending of EUR10 million in 2014 and EUR5
      million in 2015.

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

   -- An adjusted five-year average debt-to-EBITDA ratio of about
      2.9x (including two historical and three forecast years).

   -- Five-year average EBITDA interest coverage of about 6.6x
      (including two historical and three forecast years).

The stable outlook reflects S&P's view that Remy Cointreau's key
financial ratio -- debt to EBITDA -- will likely exceed 3x in
fiscal 2015 due to the continued effect of destocking in China
and the sluggishness in some European markets.  This compares
with the 2x-3x range that S&P considers to be commensurate with
its current financial risk profile assessment.  According to
S&P's base-case scenario, this ratio will likely improve from
fiscal 2016 to within our range thanks to the end of the
destocking in China and strengthening demand in Europe.

S&P could consider a negative rating action on Remy Cointreau in
the event of further unexpected adverse operating developments,
such as a fresh contraction in sales in China or tougher
competition in Europe.  Such developments could result in a new
sizable shortfall in sales and earnings, and consequently reduce
Remy Cointreau's ability to achieve the ratings-commensurate
metrics indicated above.  Generous shareholder remuneration and
acquisitions that push the credit metrics permanently into S&P's
"significant" category, such as debt to EBITDA of 3x-4x and
EBITDA interest coverage between 3x and 6x could also prompt a
lower rating.

S&P sees the upside as remote at this stage, and constrained by
Remy Cointreau's credit metrics and its financial policy.  S&P
could consider an upgrade only if it thought that the group could
maintain its debt to EBITDA below 2x on a sustainable basis.


DECO 10-PAN EUROPE 4: S&P Raises Rating on Class A2 Notes to BB+
Standard & Poor's Ratings Services raised its credit rating on
DECO 10-Pan Europe 4 PLC's class A2 notes.  At the same time, S&P
has affirmed its ratings on the class B, C, D, and E notes.

The rating actions reflect S&P's review of the transaction's
seven remaining loans, following note principal payments totaling
EUR235.4 million since the January 2014 interest payment date.

DECO 10-Pan Europe 4 is a 2006-vintage commercial mortgage-backed
securities (CMBS) transaction that initially comprised 14
commercial real estate loans, of which seven have now repaid.


As of the June 2014 special servicing report, the loan was
secured on 46 German retail properties (out of 48 at closing).
Of the 46, six of these properties were notarized for sale, for a
gross sale price of EUR20.4 million.  Most of the properties are
located in small cities and towns.  The portfolio consists of a
range of retail properties including department stores, shopping
centers, and food discounters, as well as a car dealership.

This transaction only securitizes EUR89.4 million (50%) of the
EUR178.8 million senior loan.  The remaining EUR89.4 million of
the loan ranks pari passu and is securitized in the EuroProp (EMC
VI) transaction.

The loan entered special servicing in July 2012 after the
borrower failed to repay the loan on the extended maturity date
and the nonpayment of the extension fee.

In April 2014, the servicer reported an interest coverage ratio
(ICR) of 4.87x and a loan-to-value (LTV) ratio of 117.8%, based
on a June 2012 valuation of EUR164.9 million.

S&P has assumed that the loan will experience principal losses in
its expected-case scenario.


The loan is secured on a purpose-built building for Nike's
European headquarters.  It comprises five interconnected multi-
storey office buildings in Arena Business Park, Hilversum, 30
kilometers southeast of Amsterdam.  The current outstanding
securitized balance is EUR49.7 million.

The loan did not repay on its original October 2013 loan maturity
date.  The servicer extended the loan for 12 months to give the
borrower time to continue discussions with the tenant and seek
refinancing opportunities.

In April 2014, the servicer reported an ICR of 10.72x and an LTV
ratio of 88.8%, based on a July 2013 valuation of EUR57.1

S&P has assumed that the loan will not experience principal
losses in its expected-case scenario.


The loan is currently secured on five offices (out of six at
closing) in Frankfurt and Dusseldorf.  The current outstanding
securitized balance is EUR24.0 million.

The loan breached the transaction's documented LTV ratio covenant
and entered special servicing in August 2013.  The loan matured
in October 2013.  The special servicer is discussing a consensual
sale of the remaining assets with the sponsors.

In April 2014, the servicer reported an ICR of 7.47x and an LTV
ratio of 116.0%, based on a June 2013 valuation of EUR21.0

S&P has assumed that the loan will experience principal losses in
its expected-case scenario.


The loan is secured on one retail and leisure site in Lubeck,
Germany.  The property includes supermarkets, a hairdresser, a
health club, a bowling alley, a nightclub, and a car park.  The
current outstanding securitized balance is EUR13.7 million.

The borrower failed to repay the loan at maturity in Oct. 2013.
The loan subsequently entered special servicing.  The loan is in
standstill while the special servicer decides on a workout
strategy with the borrower's new management.

In April 2014, the servicer reported an ICR of 6.04x and an LTV
ratio of 144.8%, based on a January 2014 valuation of
EUR9.5 million.

S&P has assumed that the loan will experience principal losses in
its expected-case scenario.


The loan is secured on six predominantly retail stores in North
Rhine-Westphalia, Germany.  The current outstanding securitized
balance is EUR12.5 million.

The loan defaulted after the borrower failed to make a principal
payment in July 2012, and entered special servicing.  The special
servicer has determined that "voting rights enforcement" is the
most preferable strategy for the loan's resolution.

In April 2014, the servicer reported an ICR of 6.67x and an LTV
ratio of 115.4%, based on a December 2012 valuation of
EUR10.8 million.

S&P has assumed that the loan will experience principal losses in
its expected-case scenario.


The ECP MF portfolio loan matures in July 2016.  The Toom DIY
loan matured in October 2013 and is now in special servicing.
S&P has assumed that the Toom DIY loan will experience principal
losses in our expected-case scenario.


Excess spread, which is distributed to the unrated class X notes,
is not available to mitigate interest shortfalls.

The class C and D notes have previously experienced interest
shortfalls.  This is primarily due to increases in issuer level
expenses and lower revenue receipts due to repayments.  S&P
believes this could recur and make the class A2 and B notes
vulnerable to cash flow disruptions, given the number of loans in
special servicing and recent loan repayments.

The class E notes are subject to an available funds cap (AFC),
which means that any interest shortfall due to the difference
between the weighted-average loan and note margins as a result of
repayments, or prepayments on loans, does not accrue and is
extinguished.  These shortfalls therefore do not represent a
failure to pay interest on a timely basis and do not cause S&P to
lower its ratings on the notes to 'D (sf)', in accordance with
its criteria for rating debt issues based on imputed promises.


S&P's ratings in DECO 10-Pan Europe 4 address the timely payment
of interest, payable quarterly in arrears, and the payment of
principal no later than the October 2019 legal final maturity

Following principal repayments totaling EUR235.4 million since
the January 2014 interest payment date, the available credit
enhancement for the class A2 notes has increased.

However, S&P's rating on the class A2 notes is constrained at
'BB+ (sf)' due to the potential risk of cash flow disruptions.
S&P has therefore raised its rating on the class A2 notes to 'BB+
(sf)' from 'BB-(sf)'.

For the class B notes, the amount of available credit enhancement
is sufficient to address S&P's principal loss expectations under
a 'B' rating level scenario.  Therefore, S&P has affirmed its 'B
(sf)' rating on the class B notes.

S&P has also affirmed its 'D (sf)' ratings on the class C and D
notes because they are highly vulnerable to principal losses and
have previously experienced interest shortfalls.

S&P has affirmed its 'CCC- (sf)' rating on the class E notes
because they are highly vulnerable to principal losses and are
covered by an AFC.


DECO 10-Pan Europe 4 PLC
EUR1.039 billion commercial mortgage-backed floating-rate notes

                               Rating           Rating
Class        Identifier        To               From
A2           24358TAC8         BB+ (sf)         BB- (sf)
B            24358TAD6         B (sf)           B (sf)
C            24358TAE4         D (sf)           D (sf)
D            24358TAF1         D (sf)           D (sf)
E            24358TAG9         CCC- (sf)        CCC- (sf)


ALLIED IRISH: S&P Affirms 'BB/B' Counterparty Credit Ratings
Standard & Poor's Ratings Services affirmed its 'BB/B'
counterparty credit ratings on Allied Irish Banks PLC (AIB).  The
outlook is negative.

AIB has made further significant progress in rebalancing its
funding and liquidity profiles, in S&P's view, and has shown a
stronger return to profitability than it anticipated, which S&P
believes should support the bank's return to normal access to
funding markets.  S&P has revised its stand-alone credit profile
(SACP) upward to 'bb-' from 'b+'.  However, the rating is
constrained by S&P's belief that the likelihood of extraordinary
government support available to AIB's senior unsecured
bondholders will likely diminish over the next two years.  The
ratings affirmation reflects S&P's balanced view of these

AIB reported a profit before tax of EUR437 million for the first
half of 2014 -- its first profit since 2008 and a sharp rise from
a loss of EUR838 million in the first half of 2013.  This
performance was well ahead of our forecast of a return to modest
profitability in 2014.  The results were driven by improvements
in all major items, including revenues, due to a continued
widening of the net interest margin, and a fall in expenses and
loan impairment charges.  The remarkable reduction in the loan
impairment charge to EUR92 million from EUR744 million year-on-
year was due largely to improving economic conditions,
particularly rising house prices, leading to a reduction in
impaired loans and in collective provisions.  AIB's lower
collective provisions were largely attributable to the bank's
revision of its peak-to-trough house price reduction assumption
to 52% from 55% in the first half of the year.

"While we anticipate that the bank should remain profitable for
the rest of the year, we do not expect the loan impairment
charges to remain at the exceptionally low level they reached in
the first half of the year.  This is partly because household
debt in the system is still elevated, and because there remains a
significant stock of nonperforming assets that AIB and other
banks have to work through.  AIB's gross nonperforming assets
still exceeded 30% of customer loans at end-June 2014," S&P said.

"We have revised upward our liquidity assessment of AIB to
"adequate" from "moderate."  As a result, our combined funding
and liquidity assessment is now a neutral factor for the ratings.
We believe AIB has made substantial progress in rebalancing its
funding and liquidity profile.  In particular, we note the
reduction in its reliance on funding from monetary authorities to
around EUR4 billion at end-June 2014, from EUR22 billion at end-
2012, and recent issues on both a secured and unsecured basis.
While some uncertainties remain around the conversion of the
government preference shares, and possibly the European Central
Bank's comprehensive assessment, we believe that the rebound in
performance represents a key milestone that should support AIB's
gradual return to normalized access to funding.  We expect that
its funding and liquidity metrics will demonstrate stability
going forward," S&P added.

"We estimate that the bank's ratio of broad liquid assets to
short-term wholesale funding, as we measure it, was comfortably
in excess of 1x at end-June 2014.  Although we do not adjust this
metric for the asset encumbrance of some of the bank's liquidity
portfolio, it nevertheless suggests that AIB has adequate
liquidity to manage without access to the wholesale funding
markets for a year.  Our stable funding ratio is in excess of
100%, also suggesting that the bank's liabilities have a sound
maturity profile.  AIB reported a 96% loan-to-deposit ratio at
end-June 2014, down from 168% at end-2010 and 115% at end-2012,"
S&P noted.

Despite the return to profitability in the first half of the
year, S&P's measure of the bank's capital remains a ratings
weakness.  S&P estimates that AIB's risk-adjusted capital (RAC)
ratio was about 2.7% at June 30, 2014, slightly up from 2.4% at
end-2013. The increase is due to a moderate increase in total
adjusted capital, the sale of insurance subsidiary Ark Life, and
a further decrease in credit risk-weighted assets during the
period.  S&P has revised its projected RAC range for 2015 to
slightly above 3% -- our threshold for a "weak" capital and
earnings assessment-by the end of 2015 -- from under 3% in S&P's
previous forecast.

This revised projection is based on S&P's expectation that the
return to profitability will be sustained, despite an increase in
loan impairment charges to 80-100 basis points (bps) of average
customer loans in the second half of 2014 and in 2015 (from the
exceptionally low level of around 20 bps in the first half of
2014).  S&P expects a continued widening in the net interest
margin during the period, with the loan book returning to modest
growth from 2015.

S&P notes the bank's statement that it is in discussions with the
Department of Finance in relation to the possible conversion of
some or all of the EUR3.5 billion preference shares into ordinary
shares.  S&P understands that the timing of any agreement will
take into consideration the ongoing comprehensive assessment by
the European Central Bank.  Barring any distribution from the
bank to the state, the conversion of all of the government
preference shares to common equity would lift the mid-2014 pro
forma RAC ratio to around 6%.

"We have incorporated a one-notch negative adjustment into our
rating on AIB, offsetting the higher SACP.  This adjustment
reflects our view that the rating is constrained by the
likelihood that extraordinary government support available to
AIB's senior unsecured bondholders will diminish over the next
two years.  After this adjustment, the rating incorporates one
notch of uplift to reflect our view that AIB is of "high"
systemic importance to Ireland, which we view as "supportive" of
private-sector commercial banks.  However, we could reduce or
remove this uplift shortly before the January 2016 introduction
of the EU Bank Recovery and Resolution Directive's bail-in powers
for senior unsecured liabilities.  These rules indicate to us
that EU governments will be much less able to support senior
unsecured bank creditors, even though it may take several more
years to eliminate concerns about financial stability and the
resolvability of systemically important banks.  As a result of
AIB's higher SACP, we do not anticipate a reduction in government
support to have more than a one-notch impact on the rating on
AIB, assuming no changes to our stand-alone assessment of the
bank," S&P said.

The negative outlook indicates that S&P may lower the ratings on
AIB by year-end 2015 if S&P believes there is a greater
likelihood that senior unsecured liabilities may incur losses if
the bank fails.  Specifically, S&P may lower the long-term
counterparty credit rating by one notch if it considers that
extraordinary government support is less predictable under the
new EU legislative framework.

The negative outlook also reflects what S&P sees as the lack of
certainty on the scale and timing of a potential recovery in
AIB's capitalization by S&P's measures.  S&P could lower the
ratings if it do not project AIB's RAC ratio to move sustainably
to above 3% in the next 18 months.  S&P would most likely reflect
this projection in a downward revision of our capital and
earnings assessment to "very weak" from "weak."

S&P could revise the outlook back to stable if it considers that
potential extraordinary government support for AIB's senior
unsecured creditors is unchanged in practice, despite the
introduction of bail-in powers and international efforts to
increase banks' resolvability.  A revision to stable might also
follow if S&P believed that any steps AIB might take that provide
substantial additional flexibility to absorb losses while a going
concern fully offset increased bail-in risks; or in the event of
a strengthening of its SACP, possibly on the back of an improving
RAC projection to closer to 5%.

AVOCA CLO XII: Fitch Assigns 'B-(EXP)sf' Rating to Class F Notes
Fitch Ratings has assigned Avoca CLO XII Limited notes expected
ratings, as follows:

EUR240m class A: 'AAA(EXP)sf'; Outlook Stable
EUR43m class B: 'AA+(EXP)sf'; Outlook Stable
EUR27m class C: 'A(EXP)sf'; Outlook Stable
EUR19m class D: 'BBB(EXP)sf'; Outlook Stable
EUR26m class E: 'BB(EXP)sf'; Outlook Stable
EUR13m class F: 'B-(EXP)sf'; Outlook Stable
EUR47m subordinated notes: not rated

The assignment of the final ratings is contingent on the receipt
of final documents conforming to information already reviewed.

Avoca CLO XII Limited is an arbitrage cash flow collateralized
loan obligation (CLO).  Net proceeds from the issuance of the
notes will be used to purchase a EUR400 million portfolio of
European leveraged loans.  The portfolio is managed by Avoca
Capital Holdings, recently absorbed into KKR and Co L.P
(A/Stable).  The transaction features a four-year reinvestment


'B'/'B-' Portfolio Credit Quality

Fitch expects the average credit quality of obligors to be in the
'B'/'B-' range.  Fitch has credit opinions on 100% of the
identified portfolio.  The Fitch-weighted average rating factor
(WARF) of the initial portfolio is 31.4, lower than the
covenanted maximum of 33.0 for the current ratings.  The asset
manager is able to purchase loans only.  Bonds purchases are
prohibited by the eligibility criteria.

High Recovery Expectations

At least 90% of the portfolio will comprise senior secured loans.
Recovery prospects for these assets are typically more favorable
than for second-lien, unsecured, and mezzanine assets.  Fitch has
assigned Recovery Ratings (RR) to all of the assets in the
identified portfolio.

Payment Frequency Switch

The notes pay quarterly, while the portfolio assets can reset to
semi-annual.  The transaction has an interest-smoothing account,
but no liquidity facility.  A liquidity stress for the non-
deferrable classes A and B, stemming from a large proportion of
assets resetting to semi-annual in any one quarter, is addressed
by switching the payment frequency on the notes to semi-annual,
subject to certain conditions.

Low Weighted Average Spread

The investment manager has indicated the expected minimum
weighted average spread (WAS) test to be 3.75% as of the closing
date.  This WAS is one of the lowest among all CLOs 2.0 rated by
Fitch to date.

Limited Interest Rate Risk

Fixed-rate assets cannot exceed 2.5% of the portfolio, while the
liabilities are floating-rate.  Consequently, the impact of
unhedged interest rate risk caused by the exposure to these
assets is limited.

Documentation Amendments

The transaction documents may be amended subject to rating agency
confirmation or noteholder approval.  Where rating agency
confirmation relates to risk factors, Fitch will analyze the
proposed change and may provide a rating action commentary if the
change has a negative impact on the ratings.  Such amendments may
delay the repayment of the notes as long as Fitch's analysis
confirms the expected repayment of principal at the legal final

If in the agency's opinion, the amendment is risk-neutral from a
rating perspective Fitch may decline to comment.  Noteholders
should be aware that the structure considers the confirmation to
be given if Fitch declines to comment.


A 25% increase in the expected obligor default probability would
lead to a downgrade of up to two notches for the rated notes.  A
25% reduction in expected recovery rates would lead to a
downgrade of up to three notches for the rated notes.

HARVEST CLO VII: Fitch Affirms 'BBsf' Rating on Class E Notes
Fitch Ratings has affirmed Harvest CLO VII Limited as follows:

EUR177.0m class A affirmed at 'AAAsf'; Outlook Stable
EUR34.0m class B affirmed at 'AA+sf'; Outlook Stable
EUR20.0m class C affirmed at 'Asf'; Outlook Stable
EUR13.6m class D affirmed at 'BBB+sf'; Outlook Stable
EUR23.0m class E affirmed at 'BBsf'; Outlook Stable

Harvest CLO VII is an arbitrage cash flow collateralized loan
obligation.  Net proceeds from the issuance of the notes were
used to purchase a EUR300.7 million portfolio of European
leveraged loans and bonds.  The portfolio is managed by 3i Debt
Management Investments Limited.


The affirmation reflects the transaction's performance being in
line with Fitch's expectations.  All portfolio quality tests and
portfolio profile tests are passing.

The transaction became effective as of December 2013.  Between
closing in September 2013 and the June 2014 report date, credit
enhancement had increased marginally on all notes through active
trading and par building.  There are no defaulted or 'CCC' assets
and the majority of underlying assets is rated in the 'B'

Unhedged fixed rate assets make up 2.20% of the portfolio.  There
is no mezzanine obligation and 3.60% of the portfolio consists of
unsecured senior obligations, second-lien loans and high yield
bonds.  The largest country is the US, contributing 19.50% of the
portfolio and Germany contributing 19.06%.  European peripheral
exposure is presented by Spain, Italy and Ireland, which make up
for 6.02% of the performing portfolio and cash balance.  The 10
largest obligors account for 17.58% of the portfolio.  The
largest obligor is 2.05% of the portfolio.


Fitch has incorporated two stress tests to simulate the ratings'
sensitivity to the changes of the underlying assumptions.  A 25%
increase in the expected obligor default probability would lead
to a downgrade of one to three notches for the rated notes.

A 25% reduction in the expected recovery rates would lead to a
downgrade of one to four notches for the rated notes.

O'BRIEN AND O'FLYNN: Court Appoints Provisional Liquidators
----------------------------------------------------------- reports that NAMA subsidiary National Assets Loan
Management Ltd (NALM) asked Mr. Justice Paul Gilligan to appoint
joint provisional liquidators to ensure an orderly winding up of
O'Brien and O'Flynn Ltd Building Contractors, of Doughcloyne
House, Vicars Road, Cork.

The company's directors are brothers Dan and Denis O'Flynn, the
report says.

According to the report, the court heard the company owes the
National Asset Management Company (NAMA) some EUR71.2 million
with assets worth less than half that amount. The debt to NAMA
arose after it took over loans advanced to the company by Bank of
Ireland and AIB in 2010 and 2008, the report notes. relates that Robert Fitzpatrick Bl, for NALM, said
appointment of liquidators to what was an insolvent firm would
not just be "in the interests of the taxpayer and NAMA" but also
"creditors of the company."

Counsel also told the court that there was some urgency in the
application because NALM had concerns that assets maybe
dissipated unless liquidators were appointed, the report relays.

Mr. Fitzpatrick said the company was insolvent on both a balance
sheet and on a cash flow basis, the report relates. A demand for
repayment of the loans was made on the company earlier this week
but had not been satisfied, the report notes.

According to, counsel said that in recent years,
the company had been able to survive due to funding provided to
it from NAMA, and from rents it received from certain property
assets.  That funding however has now dried up and NAMA was no
longer providing the company with financial support, the report

The report notes that there had been talks between NAMA and the
company for some time, but NAMA became concerned about the
involvement of a third party in efforts to restructure the

Counsel said NALM also had concerns about the proceeds of sale of
one of the company's property assets, the report adds.

The proceeds, thought to be some EUR1.3 million, should go
towards paying off what it is owed. NALM however is unaware if
that money remains within the company, states.

According to the report, Mr. Justice Gilligan said he was
satisfied to appoint John McStay -- -- and
Tom Rogers -- -- of insolvency
practitioners McStay Luby as provisional liquidators of the
company. The matter was adjourned to a date next month, the
report notes.


ALLIANCE OIL: Fitch Withdraws 'B' Issuer Default Ratings
Fitch Ratings has withdrawn Alliance Oil Company Ltd.'s (AOIL)

Fitch has withdrawn the ratings as the agency no longer has
sufficient information to maintain the ratings after AOIL has
chosen to stop participating in the rating process.  Accordingly,
Fitch will no longer provide ratings or analytical coverage for

The rating actions are as follows:

Alliance Oil Company Ltd.

  Long-Term foreign currency IDR: 'B', Rating Watch Negative
  (RWN), withdrawn

  Long-Term local currency IDR: 'B', RWN, withdrawn

  Short-Term foreign currency IDR: 'B', withdrawn

  Short-Term local currency IDR: 'B', withdrawn

  Foreign currency senior unsecured rating: 'B'/'RR4', RWN,

  National Long-Term Rating: 'BBB(rus)', RWN, withdrawn

OJSC Alliance Oil Company

  Local currency senior unsecured rating: 'B'/'RR4', RWN,

  National senior unsecured rating: 'BBB(rus)', RWN, withdrawn


CITS MEDIJS: Court Freezes Assets After Defamation Claims
The Baltic Times reports that the Riga Central District Court
announced on July 31 it would freeze assets worth EUR22,979 of
Cits Medijs, who publish Ir.

According to the report, the court orders come after a petition
was filed by insolvency administrator Maris Spruds who claims a
series of articles published by the magazine were in defamation
of his character.

Cits Medijs board member Gundega Grinberga told the
court decision was an "attack on freedom of speech that a
democratic country should never tolerate," The Baltic Times

"This is the first time in Latvian court practice we know of
where a lawsuit against a medium over defamation of character
results in the court ordering the publisher's assets frozen --
even though the case has not been reviewed yet and therefore no
one knows if the lawsuit has is justified," the report quotes
Grinberga as saying.

Ir editor in chief Nellija Locmele called the court decision
absurd and a parody, the report says.

"There is no chance Sprudzs could win the case, which is why he
is playing for time and trying to do as much harm to 'Ir' as he
can," The Baltic Times quotes Locmele as saying.  "This parody of
rule of law proves how direly the Latvian judicial system needs
reforms. There are also plans to reform the insolvency
administration system, but these reforms are being hampered

The Baltic Times notes that the court decision follows Spruds'
claim in a civil case concerning an article "Insolvency Kitchen"
printed in the magazine "Ir" in September 2012.  The case was
opened already in December 2012, however, the court has still not
reviewed it, the report notes.

According to The Baltic Times, the publisher said Ir will still
be printed while it will try to overturn the court decision.

The report says it's not the first time Ir has been sued for
libel.  Former insolvency administrator Aigars Lusis, now an
employee at the Justice Ministry also sued the magazine. The case
has not been reviewed, the report adds.


BRAAS MONIER: S&P Raises CCR to 'B+' on Completion of IPO
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on Luxembourg-based building materials manufacturer
Braas Monier Building Group S.A. to 'B+' from 'B'.  The outlook
is positive.

At the same time, S&P affirmed the short-term ratings on Brass
Monier at 'B'.

In addition, S&P raised to 'B+' from 'B' the issue ratings on the
EUR315 million senior secured floating-rate debt instruments,
EUR100 million revolving credit facility, and EUR200 million term
loan issued by Braas Monier.  The recovery rating on these
facilities is '4', indicating S&P's expectation of average
(30%-50%) recovery in the event of a payment default.

"The upgrade reflects our opinion that Braas Monier will maintain
a more moderate financial policy as a publicly traded company,
notwithstanding its partial ownership by private equity firms,"
said Standard & Poor's credit analyst Jebby Jacob.

As a result of the recent IPO, Monier Holdings S.C.A.'s stake in
Braas Monier has shrunk from 100% to 48%, but it continues to be
the company's largest shareholder.  S&P treats Monier Holdings
S.C.A as a financial sponsor because private equity firms hold
majority ownership in that entity.  However, S&P also
acknowledges that publicly traded companies tend to exercise less
aggressive financial policies than firms owned entirely by
private equity interests.  S&P notes that five out of the 10
directors on Brass Monier's board are independent directors, and
should be in a position to protect the interests of other
stakeholders in the business against any potentially aggressive
recommendations from its largest shareholder.  Consequently, S&P
has revised its assessment of the group's financial policy upward
to 'Financial sponsor (FS)-5' from 'FS-6'.

"We note that management has taken a number of measures to
improve the company's profitability, including significantly
reducing its fixed costs.  The company has also taken measures to
significantly reduce its labor costs over the past two years and,
therefore, its profitability has been affected by material cash
outflows for staff redundancy payments in financial 2012 and
2013.  We anticipate that Braas Monier will have minimal
restructuring costs going forward, although we do estimate that
there will be a cash outflow of about EUR40 million related to
charges expensed in previous years.  We believe the substantial
improvement owing to these cost restructuring measures will
result in better operating efficiencies and profitability, and
could lead us to revise the company's business risk profile
upward to "fair" from "weak"," S&P said.

"We could raise the ratings on Braas Monier over the next 12-18
months if the company is able to improve its profitability and
operating efficiency on a sustainable basis.  We believe that
Braas Monier's operations will benefit from the cost reductions
it made in 2012-2013, and profitability could rebound more
quickly if volumes stabilize at current levels.  More
specifically, we could consider an upgrade if Braas Monier
sustains adjusted EBITDA margins at about 15%," S&P added.

"We could revise the outlook to stable if Braas Monier fails to
maintain profitability at the levels we currently expect.  We
might also consider revising the outlook to stable if the group's
credit metrics weaken to below the level we consider commensurate
with the current rating, including debt to EBITDA between 4x-5x.
This could be caused by several factors, for example if
construction activity in Germany and the U.K. dissipates, or if
Braas Monier becomes less able to push through price increases,"
S&P noted.

TRAVELPORT FINANCE: S&P Assigns 'CCC+' Corporate Credit Rating
Standard & Poor's Ratings Services assigned its 'CCC+' long-term
corporate credit rating to U.S.-based travel services provider
Travelport Worldwide Ltd. (Travelport) and its new wholly owned
financing entity, Travelport Finance (Luxembourg) S.a.r.l.
(Travelport Finance).

S&P then equalized the corporate credit rating on intermediate
holding company Travelport Holdings Ltd. and its primary
operating subsidiary Travelport LLC with that on Travelport, the
holding company for the group.

At the same time, S&P placed all abovementioned ratings on
CreditWatch with positive implications.

In addition, S&P assigned 'B-' issue ratings to the proposed
US$2.3 billion senior secured term loan and the proposed US$100
million revolving credit facility (RCF) to be issued by
Travelport Finance.  The recovery rating on these instruments is
'3', indicating S&P's expectation of meaningful (50%-70%)
recovery in the event of a payment default.

S&P expects to withdraw its ratings on Travelport Holdings Ltd.
and Travelport LLC following the successful completion of the

The CreditWatch positive placement primarily reflects
Travelport's plans to refinance its capital structure in the
short term, which is contingent on the company issuing of a new
US$2.3 billion senior secured first-lien term loan.  The
placement also reflects S&P's expectation that Travelport will
repay its remaining debt with the proceeds of new senior
unsecured debt.

If the transaction closes as expected, Travelport's gross
financial debt would be US$2.9 billion (including capital
leases). S&P forecasts that Standard & Poor's-adjusted funds from
operations (FFO) to debt would improve to about 8% (from about
1.8% in 2013).  Under this scenario, S&P would maintain its
assessment of Travelport's financial risk profile as "highly
leveraged," as S&P's criteria defines the term.

"In our opinion, following the refinancing, Travelport will
benefit from a simplified capital structure and improved
financial flexibility.  At the moment, the company's operating
performance is constrained by its high debt and cash interest
costs, which in our view makes the current capital structure
unsustainable in the medium-to-long term.  However, following the
refinancing, we anticipate that cash interest costs will reduce
significantly, by about US$110 million-US$130 million on an
annual basis.  We consider that this should enable sustainable,
positive free cash flow generation that supports some
deleveraging over the medium term. We place a significant amount
of reliance on management's commitment to improving Travelport's
capital structure, and our understanding that the restoration of
the financial risk profile would remain a high priority against
growth-oriented investments. We also believe that post-
refinancing, the risk of another distressed debt exchange will be
significantly lower," S&P said.

"Our assessment of Travelport's business risk profile as "fair"
is constrained by our view of the travel industry's seasonal and
cyclical nature; the sector's competitive and consolidating
nature, leading to competition on pricing; and the sector's
exposure to event risks.  These weaknesses are partly offset by
our view of Travelport's position as a leading player in the
global distribution systems (GDS) market and its strong
geographical diversification compared with other GDS peers.  In
2013, Travelport's GDS business held about 26% of the global
shares of GDS air segments, with balanced positions across the
main world travel regions of the Americas (44%), Europe (26%),
the Middle East and Africa (11%), and Asia/Pacific (18%).  By
comparison, although Amadeus IT Holding S.A. and Sabre Holdings
Corp. hold about 60% and 80%, respectively, of their GDS-
processed business in Europe and America, these companies lack
exposure to the growing Asia/Pacific and Middle East markets.
Our assessment of Travelport's competitive position is supported
by industry-average profitability measures under our base-case
scenario, such as return on capital of between 8%-9%.  However,
Travelport's operating profitability demonstrates low volatility
relative to its transportation cyclical industry peers and is a
key consideration in our assessment of its "strong" competitive
position," S&P noted.

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

   -- A low single-digit revenue increase in 2014, followed by a
      marginal increase in 2015;
   -- A reported EBITDA margin of at least 19% in 2014-2015;
   -- Capital requirements of about 6%-7% of forecast revenues;
   -- No committed acquisitions; and
   -- No potential dividend payouts.

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

   -- A weighted-average of adjusted FFO-to-debt ratio of about
      8%; and

   -- Adjusted debt to EBITDA of about 7x.

The Creditwatch placement reflects S&P's view that, following the
successful completion of the refinancing, it will likely raise
its rating on Travelport by one notch to 'B-'.

An upgrade to 'B-' would reflect S&P's view that the lower annual
cash interest costs post-refinancing should enable sustainable,
positive free cash flow generation that supports some
deleveraging over the medium term.  In this context, S&P would
expect weighted-average FFO to debt of about 8%-9% over the next
two years, which would be commensurate with a 'B-' rating.

S&P's CreditWatch placement does not incorporate Travelport's
plans to float an IPO within the next couple of months.  While
S&P would assume that the company would use a portion of IPO
proceeds to repay existing debt, at this stage S&P cannot
estimate the certainty of such an event or its potential effect
on leverage.

S&P could affirm the ratings at their current level if the
refinancing does not go ahead as planned, although this is not
S&P's base-case scenario.


FAXTOR ABS 2005-1: S&P Lifts Rating on Class A-3 Notes to 'BB'
Standard & Poor's Ratings Services raised its credit ratings on
FAXTOR ABS 2005-1 B.V.'s class A-1, A-2E, A-2F, and A-3 notes.

The rating actions follow S&P's analysis of the transaction using
data from the trustee report dated June 30, 2014, and the
application of S&P's relevant criteria.

The transaction's post-reinvestment period began in Feb. 2011.
The class A-1 notes have amortized by about EUR48 million since
S&P's Jan. 23, 2013 review.  This has increased the available
credit enhancement for all classes of notes.

The portfolio's credit quality has decreased since S&P's previous
review.  The proportion of assets that S&P considers to be
defaulted (rated 'CC', 'C', 'SD' [selective default], or 'D') has
increased to 12% from 8% of the portfolio balance excluding cash.
The proportion of assets that S&P rates in the 'CCC' category
('CCC+', 'CCC', and 'CCC-') has also increased to 13% from 6% of
the total portfolio, over the same period.

"We conducted our cash flow analysis to determine the break-even
default rate (BDR) for each rated class of notes at each rating
level.  The BDR represents our estimate of the maximum level of
gross defaults, based on our stress assumptions, that a tranche
can withstand and still fully repay interest and principal to the
noteholders.  We gave credit to an aggregate collateral amount of
EUR136 million, used the reported weighted-average spread of
1.99%, and the weighted-average recovery rates calculated in
accordance with our 2012 criteria for collateralized debt
obligations (CDOs) of pooled structured finance assets.  We
applied various cash flow stresses using our standard default
patterns and timings for each rating category assumed for each
class of notes," S&P said.

S&P's cash flow analysis shows that the deleveraging of the
capital structure and the increase of the weighted-average spread
has largely mitigated the portfolio's negative rating migration.

The class A-3 notes are passing their overcollateralization test
with a higher cushion than in S&P's previous review.

S&P's analysis also indicates that the available credit
enhancement for the class A-1, A-2E, A-2F, and A-3 notes is
commensurate with higher ratings than previously assigned.  S&P
has therefore raised its ratings on the class A-1, A-2E, A-2F,
and A-3 notes.

The application of the largest obligor default or largest
industry test did not constrain S&P's ratings on any of the
classes of notes.

FAXTOR ABS 2005-1 is a cash flow mezzanine structured finance CDO
of a portfolio that consists predominantly of residential
mortgage-backed securities and, to a lesser extent, CDOs of
corporates, CDOs of asset-backed securities (ABS), and commercial
mortgage-backed securities.  The transaction closed in Dec. 2005
and IMC Asset Management manages it.


Class                Rating
             To                 From

FAXTOR ABS 2005-1 B.V.
EUR308.4 Million Asset-Backed Floating And Fixed-Rate Notes

Ratings Raised

A-1          A+ (sf)            A- (sf)
A-2E         BBB+ (sf)          BBB- (sf)
A-2F         BBB+ (sf)          BBB- (sf)
A-3          BB (sf)            B+ (sf)


BANCO ESPIRITO: Creditor Agricole Says Unaware of Misconduct
Fabio Benedetti-Valentini, Anabela Reis and Tom Beardsworth at
Bloomberg News report that Credit Agricole SA, the second largest
shareholder in bailed-out Banco Espirito Santo SA, was unaware of
misconduct at the Portuguese bank.

According to Bloomberg, Credit Agricole Chief Executive Officer
Jean-Paul Chifflet said that the Espirito Santo family, which
controlled the lender, "deceived" the French bank.  Mr. Chifflet,
as cited by Bloomberg, said that the French bank, which wrote off
its 14.6% stake on Aug. 4, is weighing legal options to defend
its interests.

Mr. Chifflet's remarks show the rising tensions over governance
failures at the Portuguese lender, which was kept afloat with a
EUR4.9 billion (US$6.6 billion) rescue that will leave
shareholders and junior bondholders with losses, Bloomberg notes.
Portugal's regulators and prosecutors are looking into the
circumstances that led to the near collapse, Bloomberg discloses.

Credit Agricole has been an investor in the lender since 1990 and
had five directors on the Lisbon-based bank's board, or a fifth
of the total, at the end of last year, Bloomberg states.

According to Bloomberg, when asked to comment, Ricardo Salgado,
Banco Espirito Santo's former CEO and a great-grandson of the
founder, stuck to a statement from Aug. 4 that he will wait until
the "context allows for an objective and serene analysis of what
led to the sharp drop in the value of BES and the consequent
state intervention."

Credit Agricole on Aug. 4 reported that its second-quarter profit
was nearly wiped out by EUR708 million in charges related to the
Portuguese bank, Bloomberg relates.

The Bank of Portugal said on July 30 there are indications of
"seriously harmful acts of management" at the lender, and a
failure to comply with the central bank's directives, Bloomberg
recounts.  The bank said it is reviewing the actions of various
individuals, including Salgado, who was replaced by Vitor Bento
as CEO last month, Bloomberg relates.

Mr. Chifflet said Credit Agricole blames "bad practices that were
unknown to us and outside of any governance procedure" of the
Portuguese bank, Bloomberg relays.

Banco Espirito Santo is a private Portuguese bank based in
Lisbon.  It is 20% owned by Espirito Santo Financial Group.


TERMOELECTRICA SA: Several Assets Sold For EUR13.8MM
The Diplomat reports that several assets of Termoelectrica S.A.,
including the facilities at Doicesti and Aninoasa in Dambovita
county, have been sold for EUR13.8 million to a Czech-based
company, according to a release of the company liquidator Musat
and Associates Restructuring and Insolvency.

The Diplomat relates that the assets have been purchased for
RON60.89 million by European Energy Communications, registered in
Czech Republic and owned by 80% by European Communications SRO
company.  The other shareholders are Ion Cebuc (6.67%) and Ioan
Liviu Popescu (13.33%).

Termoelectrica S.A. is a Romanian power producer.  Termoelectrica
started the insolvency following a general shareholders' meeting
in March 2013.


BREBORO HOLDINGS: S&P Revises Outlook to Neg. & Affirms 'B-' CCR
Standard & Poor's Ratings Services revised its outlook on Breboro
Holdings and its subsidiary LLC MC Kvartstroy to negative from
stable.  At the same time, S&P affirmed its 'B-' long-term
corporate credit ratings on the two companies.

The outlook revision reflects S&P's view that Breboro's operating
performance was weaker than S&P anticipated in 2013, with
evidence of project completion delays and expensive land
acquisition.  This is highlighted by the company reporting still
negative EBITDA and free operating cash flow (FOCF) on
December 31, 2013.  Furthermore, S&P believes that the company
could face difficulties in covering its working capital
requirements if sales of completed apartments weakened in its
core market, the city of Nizhny Novgorod, and considering the
lack of funding availability and equity support from one of its
shareholders, the fund Conlu Ltd.

That said, S&P still believes that the company should be able to
grow its revenue base in 2014-2015, mainly through the delivery
of assets in Nizhny Novgorod, and preserve its capacity to meets
its short-term financial commitments.  However, S&P thinks that
it could become more vulnerable to business conditions over the
next 12 months.

S&P still views Breboro's business risk profile as "vulnerable,"
as S&P's criteria define the term, which reflects the generally
high cyclicality and capital intensity of the real estate
development business in Russia.  It also factors in the risks
associated with Breboro's fairly small size, and the high
concentration of income derived from its projects in Nizhny

S&P still views Breboro's financial risk profile as "highly
leveraged" and its liquidity as "weak," owing to its high
reliance on short-term debt funding and project-level debt
funding, which restricts credit availability for the wider group.
Owing to the high working capital needs of its residential
development projects, Breboro is likely to require additional
external liquidity before there is a significant step-up in free
cash flow generation from its development operations.

S&P still assess Breboro's management and governance as "weak."
This is because S&P believes that Breboro has weak long-term
equity support, which constrains the scope of future development
projects and, consequently, the company's ability to improve
operating margins and free cash flow from operations.

The negative outlook reflects S&P's opinion that there is one
chance in three that it will lower its rating on Breboro's rating
to the 'CCC' category.  This would mean the company would become
more vulnerable to nonpayment and highly dependent upon favorable
business, financial, and economic conditions.

S&P could lower the rating if Breboro was not able to generate
enough cash flow or get bank financings to fund its working
capital requirements and debt principal amortization over the
next 12 months.  This would result from an unexpected fall in
demand affecting the company's cash flow generation and operating
margin. S&P could also take a negative rating action if it saw
evidence of Breboro's shareholder support weakening further over
the next 12 months.

S&P could revise the outlook to stable if Breboro was able to
increase its liquidity as a result of higher free cash flow
generation from operations.

INTAIR: To Halt Operations on Negative Currency Trends
------------------------------------------------------ reports that IntAir on Tuesday said it was
suspending operations due to the negative impact of currency
trends and the political situation.

IntAir suffered a similar fate to four other Russian travel
agencies, including Saint Petersburg-based Neva and Expo Tour,
and Moscow-based Labirint, and Roza Vetrov Mir,

Russia's state travel watchdog Rosturism admitted Tuesday that
the suspension of the activities of IntAir would have a negative
impact on tourism sector, relates.

IntAir is a Russian travel agency.

NORDIC STAR: Goes Bankrupt; Halts Operations
-------------------------------------------- reports that The Nordic Star has gone out of

The Nordic Star is the seventh Russian tour operator to terminate
its activities since July, notes.

The Web site of the company informs that it has gone bankrupt and
that it is unable to fulfill its obligations to tourists, says, citing ITAR-TASS.

The company makes it clear that it is insured and customers will
be able to address the insurance company providing financial
support to the tour operator, relates.

Applications for compensation are to be filed by May 2015, discloses.

SEVERSTAL OAO: S&P Revises Outlook to Pos. & Affirms 'BB+' CCR
Standard & Poor's Ratings Services revised its outlook on Russia-
based steel producer OAO Severstal to positive from stable.  At
the same time, S&P affirmed its 'BB+' long-term corporate credit
rating and the 'ruAA+' Russia national scale rating on the group.

S&P also affirmed the 'BB+' issue rating on Severstal's senior
unsecured notes.  The recovery rating is unchanged at '3',
indicating S&P's expectation of meaningful (50%-70%) recovery in
the event of a payment default.

The outlook revision reflects S&P's expectation that the recently
announced sale of Severstal's North American assets will enable
the group to reduce debt without significantly impairing EBITDA.

In July 2014, Severstal signed a deal to sell its U.S.-based
steel assets Severstal Columbus and Severstal Dearborn for total
consideration of US$2.325 billion.  Severstal also announced in
July the sale of its American met coal asset PBS Coal for total
cash consideration of US$60 million.  S&P understands that
Severstal will use about US$1 billion of these proceeds to reduce
debt (totaling US$3.57 billion at June 30, 2014, as adjusted by
Standard & Poor's) in the coming six to eight months.  As a
result, S&P estimates that Severstal's ratio of adjusted debt to
EBITDA will fall to 1.5x-2.0x in 2014 from 2.1x in 2013.

S&P expects that the disposal of the North American division
would only moderately affect Severstal's EBITDA.  In 2013, this
division modestly contributed about US$0.2 billion of
approximately US$2.1 billion of the group's total EBITDA.  S&P
believes that Severstal's EBITDA margin should slightly improve
to about 18% in 2014 from 15%-16% in 2012-2013.  The North
American division has a lower EBITDA margin of about 6%, compared
with 19% for the Russian operations.  S&P expects that a weaker
ruble, together with the Severstal's ongoing cost-efficiency
program, will support the group's operating margins.

S&P believes that Severstal's competitive position will remain
strong after the sale of the North American assets, despite a
reduction in revenues and output capacity by about 30%.
Severstal's competitive position will continue to be supported by
a sizable share of higher value-added products, a diversified
product mix, and solid profitability, which S&P continues to
assess as above average for metals and mining downstream.  With a
capacity of about 10 million metric tons after the transaction,
Severstal will remain an important player in the Russian and
global steel industry and still comparable with its key local
peers in terms of EBITDA.

"In our base case, we assume no additional material negative
developments in Russia that would affect Severstal.  This
includes no sanctions on the Russian metals and mining sector, no
further deterioration in access to bank funding, or weakening of
conditions in the local steel market.  Under our base-case
scenario, we expect Severstal to demonstrate high capacity
utilization (over 80%) and relatively stable production volumes
of its Russian assets, notably when factoring in the launch of
Volga district-located Balakovo mini-mill, with an installed
capacity of 1 million metric tons (producing long steel products,
mostly used in construction) in July 2014, and its ramp up
through 2015.  We factor into our assumptions iron ore price at
US$95 per metric ton (/mt)(in CFR China) in the remaining months
of 2014 and 2015-2016 (compared with about US$130/mt in 2013),
and moderate improvement of the Russian segment's EBITDA per
metric ton in 2014," S&P said.

S&P thinks that after the finalization of Balakovo, Severstal's
capital expenditures will be well contained within the range of
US$0.8 billion-US$0.9 billion annually.

In S&P's current base case, it factors in the special dividends
of approximately US$1 billion, which S&P understands Severstal
expects to pay out until year-end after the sale of its North
American assets, on top of normal dividends, which the company
plans at 25% of net income (under International Financial
Reporting Standards).

According to S&P's estimates, Severstal's EBITDA will remain near
US$1.8 billion-US$1.9 billion in full-year 2014, accounting for
the sale of the North American assets in July 2014.  At the same
time, Severstal's debt would decrease markedly to approximately
US$3.0 billion-US$3.5 billion at year-end 2014 from US$4.3
billion (on a Standard & Poor's-adjusted basis) at year-end 2013,
thanks to about US$0.7 billion in adjusted debt reduction in the
first half of 2014, and assuming a repayment of about US$1.0
billion after the North American transaction.  This translates
into adjusted debt to EBITDA of below 2.0x and funds from
operations (FFO) to debt exceeding 40% by year-end 2014, compared
with 2.1x and 37.1%, respectively, in 2013.

Under S&P's ratings approach, the combination of a "fair"
business risk profile and an "intermediate" financial risk
profile translates into an anchor of 'bb+'.  Because the
modifiers do not affect the rating, our rating on Severstal is

The positive outlook reflects S&P's expectation that the group's
improving financial metrics could lead us to upgrade Severstal in
the next 12-18 months, in the absence of material negative
developments related to current conditions in Russia, such as
weakening in the local steel market, further deterioration in
access to funding, or any new sanctions that would affect the
group.  S&P anticipates that Severstal's financial risk profile
will strengthen if the group successfully finalizes the sale of
its North American assets, and if it earmarks at least US$1.0
billion for debt reduction within the next six to eight months.
If so, the group's debt to EBITDA would, in our view, stabilize
in the range of 1.5x-2.0x, and its FFO to debt at higher than

S&P would consider a positive rating action on Severstal if it
achieves and sustains FFO to debt of over 45% and debt to EBITDA
in the range of 1.5x-2.0x, despite stagnating Russian steel
demand.  Furthermore, S&P's current assessment of the group's
"adequate" liquidity would have to remain unchanged or improve
for S&P to consider a positive rating action.

Rating downside would be related to a significant slowdown in the
Russian economy or additional sanctions imposed on Russia,
affecting Severstal's operations or its liquidity.  A substantial
and/or prolonged weakening of the group's FOCF and FFO-to-debt
ratios could also trigger a negative rating action.

YAKUTSK FUEL: Fitch Affirms 'B-' Long-Term IDR; Outlook Stable
Fitch Ratings has affirmed OJSC Yakutsk Fuel and Energy Company's
(YATEC) Long-term foreign currency Issuer Default Rating (IDR) of
'B-' with Stable Outlook and subsequently withdrawn its ratings.


Small Regional Gas Producer

The affirmation of YATEC's ratings follows the company's
performance being generally in line with Fitch's expectations
during 2013.  YATEC is a small producer of natural gas, gas
condensate and oil products located in the Republic of Sakha
(Yakutia, BBB-/Stable).  Its 2013 production was 1,729 million
cubic meters of gas, a mere 0.3% of Russia's total for the year,
and 88 thousand tons of condensate.

Improved Leverage, Lower Guarantees

YATEC repaid a RUB3 billion domestic bond in full in 2013 and
also dramatically reduced the amount of guarantees given to
related parties compared with end-2012.  Its RUB9 billion of
gross Fitch-adjusted debt at end-2013 included RUB5.8 billion in
an off-balance sheet guarantee in favor of a related party, while
its net EBITDA leverage was 1.4x, down from 2.1x at end-12.

Fitch has withdrawn YATEC's ratings as the agency no longer has
sufficient information to maintain the ratings after YATEC has
chosen to stop participating in the rating process.  Accordingly,
Fitch will no longer provide ratings or analytical coverage for

The rating actions are as follows:

  Long-Term foreign currency IDR: affirmed at 'B-', Stable
  Outlook, withdrawn

  Long-Term local currency IDR: affirmed at 'B-', Stable Outlook,

  Short-Term foreign currency IDR: affirmed at 'B', withdrawn

  National Long-Term Rating: affirmed at 'BB+(rus)', Stable
  Outlook, withdrawn


CODERE SA: Standstill Agreement with Creditors to End on Sept. 3
Katie Linsell at Bloomberg News reports that Codere S.A. has
reached a new standstill agreement with its creditors that will
end at 5:00 a.m. on Sept. 3.

According to Bloomberg, the accord can be lifted early from
Aug. 13 with 24 hours' notice with the agreement of majority of

The new agreement is the company's 13th standstill accord with
creditors, Bloomberg notes.

                       About Codere S.A.

Codere SA is a Madrid-based gaming company.  It operates betting
shops and race tracks from Italy to Argentina.  The firm sought
preliminary creditor protection on Jan. 2 after reporting seven
consecutive quarters of losses.


PERSTORP HOLDING: S&P Cuts Rating on EUR270MM Sr. Notes to 'CCC+'
Standard & Poor's Ratings Services lowered to 'CCC+' from 'B-'
the issue ratings on the EUR270 million senior secured notes due
2017 and the US$380 million senior secured notes due 2017 issued
by Perstorp Holding.  S&P also revised down to '3' from '2' the
recovery rating on these notes, indicating its expectation of
meaningful (50%-70%) recoveries in the event of a payment

S&P also affirmed its 'CCC-' issue credit rating on the US$370
million second-lien secured notes due 2017 issued by Perstorp.
The recovery rating is unchanged at '6', indicating S&P's
expectation of negligible (0%-10%) recovery in the event of a
payment default.

The rating actions follow Perstorp recently securing a EUR70
million three-year trade receivables financing facility.  S&P
assumes that Perstorp will use the facility in full during its
tenure and anticipate that it will rank above the rated notes, at
the same level as the fully utilized Swedish krona (SEK) 550
million revolving credit facility (RCF), unfunded pension
obligations, and various local facilities.

The recovery rating on the second-lien notes reflects these
notes' contractual subordination to a significant amount of debt,
including the SEK550 million committed super senior RCF, the
anticipated EUR70 million of assets which have been sold under
the trade receivables financing facility, and the first-lien
senior secured notes.

The debt structure is multilayered.  Perstorp issued all the debt
instruments, including the RCF and the first- and second-lien
notes, and the EUR255 million third-lien mezzanine loan due 2017.
The three liens of debt share the same security package, but an
intercreditor agreement establishes their relative ranking.

Most of the security consists of tangible assets from Perstorp's
subsidiaries in Sweden, Germany, the U.S., and the U.K., and
share pledges.  S&P understands that the assets account for about
50% of the company's total assets.  The notes also benefit from a
guarantee from subsidiaries that represents about 85% of the
company's EBITDA.

In S&P's hypothetical default scenario, it projects a default
would be triggered by a combination of revenue deflation, due to
intensified competition and slowing demand from European markets;
margin pressure, due to inflation in raw material costs; and an
increase in variable interest rates.  These factors would lead to
a default in 2015 caused by the company's inability to pay
interest and by EBITDA declining to about SEK1 billion.

"We envisage a stressed enterprise value of about SEK5 billion at
the point of hypothetical default, which is equivalent to 5x
stressed EBITDA.  After deducting priority liabilities -- mainly
comprising enforcement costs, 50% of the unfunded pension
deficit, local credit facilities, finance leases, and the
EUR70 million of assets that have been sold under the newly
signed trade receivables financing facility -- we arrive at a net
enterprise value of about SEK3.7 billion.  We anticipate that the
RCF would be fully drawn, leaving about SEK3.2 billion of value
available for the first-lien senior secured notes.  This results
in meaningful (50%-70%) recovery prospects for the first-lien
noteholders, but negligible (0%-10%) value for the second- and
third-lien noteholders," S&P noted.


MRIYA AGRO: Fitch Lowers Long-Term Issuer Default Rating to 'C'
Fitch Ratings has downgraded Ukraine-based agricultural producer
Mriya Agro Holding Public Limited's Long-term foreign currency
Issuer Default Rating (IDR) to 'C' from 'CCC'.

The downgrade reflects substantial uncertainties related to
Mriya's announced balance sheet restructuring plans.  The absence
of information regarding the magnitude of Mriya's failure to make
interest and amortization payments on certain of its debt
obligations and hence the likelihood that cross-default could be
triggered earlier than expected, adds even more uncertainty.

In line with Fitch's Global Cross-Sector Criteria on 'Distressed
Debt Exchange' dated June 30, 2014, the downgrade reflects a
probability that the bond restructuring could lead to a material
reduction in the contractual terms against the original terms for
the rated bonds.  The final terms that will be offered to
bondholders following the review of the group's business and
financial position will be a key driver of the ratings.  While
liquidity post restructuring would be another factor determining
the direction of the ratings, at present we assess the likelihood
of a debt restructuring aligned with our definition of a
distressed debt exchange (DDE) as inevitable based on the
information available to Fitch.


Uncertainty over Restructuring Negotiation

On August 1, 2014, Mriya announced its intention to start
negotiations with its creditors on a potential debt
restructuring. Currently Mriya, together with its financial
advisers, is reviewing the company's financial position and its
business plan. The timeframe of any potential proposals and
restructuring options to the company's lenders are uncertain.
Mriya's next bond coupon payment on September 30, 2014 is
therefore highly uncertain while a restructuring event entailing
losses to existing lenders seems inevitable.

Liquidity Shortage

Liquidity issue remains one of the major risks for Mriya as the
group is highly dependent, as a farming company, on the
availability of working capital financing.  Fitch estimates that
seasonal working capital movements intra-year absorb at least 50%
of annual EBITDA (in excess of USD100 million).  Although Mriya
has managed to finance its spring sowing campaign, the harvesting
season and the upcoming sowing of winter crops require additional
financing, which is of limited availability given the current
economic environment in Ukraine.

The ability to finance swings in working capital with internally
generated cash flows has been impaired by a recent drop in soft
commodity prices.  Nevertheless, the high marketability of
inventories, once the harvesting is complete in 4Q, can support
the group's liquidity in case of need.

Operations under Pressure

Liquidity shortage may also put pressure on Mriya's operations,
in particular the upcoming winter sowing campaign, which can be
reduced in volumes or even cancelled due to insufficient working
capital financing.  If commodity prices remain at the currently
low levels, and input costs including seeds, fuel, fertilizers
continue to be on the rise (affected by the hryvnia devaluation)
we would expect a substantial decline in EBITDA in 2014-15
relative to our previous forecasts.

High Leverage

Due to the challenging operating environment and limited
availability of external funding, Mriya has substantially scaled
back its capex for 2014.  However, worsened operating performance
is likely to result in marginal or even negative free cash flow
(FCF) in 2014, leading to an increase in funds from operations
(FFO)-adjusted gross leverage to up to 5x (4.3x in 2013).

High but Volatile Margins

Due to the lack of integration towards logistics and trading,
Mriya's profit margins are more volatile and heavily depend on
grain price fluctuations.  The recent drop in commodity prices,
combined with the difficult operating and financing environment
in Ukraine, has resulted in a serious challenge to Mriya's
business model.  The high risk nature of a purely farming
business, together with an inability to hedge against soft
commodity price volatility and limited access to working capital
financing in Ukraine, will remain a major constraint on Mriya's

Average Recoveries Post Default

In line with Fitch's "Recovery Ratings and Notching Criteria for
Non-Financial Corporate Issuers" we continue to expect average
recovery prospects for Mriya's bondholders (capped by the
Ukrainian jurisdiction) under the going-concern restructuring
approach.  Mriya's operations are based on Ukraine's most
productive land in the country, supported by substantial storage
capacity (newly constructed silos) and highly marketable


Negative: Future developments that could lead to negative rating
action include:

   -- A successful DDE offer, which will lead to a downgrade of
      the Long-term IDR to 'RD' (Restricted Default) on

   -- Bankruptcy filings, administration, receivership,
      liquidation or other formal winding-up procedure, which
      could lead to a downgrade of the Long-term IDR to 'D'

Positive: A positive rating action from the current level of 'C'
is unlikely.  However Fitch would assign new ratings post DDE
based on the issuer's post-exchange capital structure, risk
profile and prospects.


Long-term foreign currency IDR: downgraded to 'C' from 'CCC'

Short-term foreign currency IDR: affirmed at 'C'

Long-term local currency IDR: downgraded to 'C' from 'B-'

Short-term local currency IDR: downgraded to 'C' from 'B'

Foreign currency senior unsecured rating: downgraded to
'C'/Recovery Rating of 'RR4' from 'CCC'/'RR4'

National Long-term rating: downgraded to 'C(ukr)' from 'AA-

U N I T E D   K I N G D O M

EPIC LTD: S&P Lowers Ratings on Three Note Classes to 'D(sf)'
Standard & Poor's Ratings Services lowered to 'D (sf)' from 'CC
(sf)' its credit ratings on Epic (Drummond) Ltd.'s class E, F,
and G notes.

The rating actions reflect the issuer's principal loss allocation
to the class E, F, and G notes following the liquidation of the
Project DD loan in July 2014.

The insolvency administrator sold the Project DD loan property
portfolio on July 20, 2012, for an aggregate price of EUR169.1
million.  The recoveries were not sufficient to fully repay the
loan.  As a result of outstanding post-portfolio sale completion
work that the insolvency administrator had undertaken, the
determination of the losses (according to the credit default
swap) was delayed to July 2014.

On the July 2014 note payment date, the issuer applied principal
losses of EUR43.3 million to the notes in reverse sequential
order.  As a result, the issuer has entirely written off both the
class F and G notes, and has allocated EUR8.7 million in
principal losses to the class E notes.

As a result of the issuer's principal loss allocation, S&P has
lowered to 'D (sf)' from 'CC (sf)' its ratings on the class E, F,
and G notes, in line with S&P's criteria.

Epic (Drummond) is a synthetic European commercial mortgage-
backed securities (CMBS) transaction, which was initially backed
by credit default swaps for a portfolio of 13 reference loans
that the Royal Bank of Scotland originated and serviced.


Epic (Drummond) Ltd.
EUR1.143 bil commercial mortgage-backed floating-rate notes
                                 Rating        Rating
Class        Identifier          To            From
E            XS0303392236        D (sf)        CC (sf)
F            XS0303392400        D (sf)        CC (sf)
G            XS0303393986        D (sf)        CC (sf)

FLOORS-2-GO: In Administration for Third Time
Birmingham Post reports that administrators have been called into
Birmingham-headquartered natural flooring and laminate retailer
Floors-2-Go for a third time.

Droitwich-based MB Insolvency was appointed to the brand's owner
Nixon & Hope Ltd earlier this month.

Floors-2-Go was placed into administration in 2008 after which a
buyout deal was struck with brothers Robert and Richard Hodges
who are part of the company's founding family which launched the
business in 1999, according to Birmingham Post.

The report relates that administrators were called in again in
2011 when 53 stores were closed, resulting in almost 200 job

The report notes that a total of 35 shops were rescued when a
deal was struck with Nixon & Hope, a new company formed at that
time for the purposes of the buyout.

F2G Retail Sales was incorporated at the end of May and does not
share any directors with Nixon & Hope.

The report relates that a statement from MB Insolvency said: "The
business of the company is not trading in administration and had
ceased trading before (it) entered administration.

"It is understood that the company transferred all of its assets
and employees on or around April 1, 2014, to Floors to Go Ltd and
the business is being traded by F2G Retail Sales Ltd," the
statement said, the report notes.

"Customer enquiries regarding supply of goods should be directed
in the first instance to Floors to Go Ltd and/or F2G Retail Sales
Ltd who we understand are continuing to trade the business of
Floors-2-Go," the statement added, the report discloses.

SUMNER'S MEDIA: 11 Jobs Lost as Firm Placed Into Liquidation
Manchester Evening News reports that Sumner's Media City has
appointed The Business Debt Advisor, to advise the directors and
shareholders of SMCL on achieving a sale.

Eleven jobs have been lost as Sumner's Media City called in

Sumners faced a steady decline due to increased competition
following the relocation of the BBC to MediaCityUK, according to
Manchester Evening News.

The report discloses that a Company Voluntary Arrangement was
agreed for Sumners in December 2012 which was resulted in a
GBP17,000 surplus and equipment for creditors.

"SMCL acquired the majority of the equipment and set-up
operations at The Pie Factory.  However, higher than expected
set-up costs and delays, meant that the company had to fund
overheads with no significant income for three months," the
report quoted Bev Budsworth, managing director of The Business
Debt Advisor, as saying.

"Turnover for the first year of trading was GBP800,000, with the
business making a loss of GBP30,000, which was actually really
good, given the circumstances.  However, this year has seen
income decline due mainly to increased competition and the slow
drift of Manchester post production work back to London,"
Mr. Budsworth said.

All of the company's 11 staff were made redundant.

"The Sumners name has been largely synonymous with the post
production sector in the North West over the last 25 years.
Unfortunately, Sumners seems to have been a victim of funding
issues and ultimately stricter invoice discounting terms made it
impossible to continue trading. Even more unfortunate is the fact
that eleven staff have lost their jobs as a result," Mr.
Budsworth added, the report relates.

The boutique post production facility, which had been trading out
of the Pie Factory, was founded by husband and wife team, Andy
and Janet Sumner in 1992.

WASTE4FUEL: In Administration, Enters Voluntary Arrangement
James Verrinder at MRW News reports that troubled recycling
company Waste4Fuel has been put into administration and its
owners have abandoned its site in Orpington, Kent.

The firm has entered into a company voluntary arrangement and
instructed insolvency practioners Ian Franses & Associates to act
on its behalf, according to MRW News.

Meanwhile, the report notes that the Environment Agency (EA) said
that Waste4Fuel staff had not been at the site for a week and
have fenced off the site.  An EA spokesman told MRW that only the
agency's officers and the fire brigade had keys to gain access to
the site.

In July, the report recalls that the High Court dismissed the
EA's case for contempt against the waste disposal firm after the
agency bought action against the company, former managing
director Bryan Hughes, managing director Shelley Hurst and site
manager Jonathan Beckson.  The court said they had failed to
observe an earlier court order to reduce the amount of waste,
remove combustible material and install a 24-hour presence, the
report relates.

MRW notes that this was followed up by an enforcement notice that
required Waste4Fuel to fence off the site and stop accepting new

The report relays that EA said it was the responsibility of the
site operator, and then the landowner, to clear up the site and
it was working with the London Borough of Bromley on reducing the
amount of waste left at the location, and its long-term future.

"We understand the frustration of local residents and we're
committed to finding a solution that will bring to an end the
upset and nuisance for the community," the report quoted Chris
Hazelton, environment manager at the EA, as saying.

"We hope to make significant improvements at the site in the near
future; however we cannot do this alone so we will continue to
work with London Borough of Bromley and other partners to resolve
this issue," Mr. Hazelton said, 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
determined by more than a balance sheet solvency test.

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


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

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

Copyright 2014.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000 or Nina Novak at

                 * * * End of Transmission * * *