TCREUR_Public/140821.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 21, 2014, Vol. 15, No. 165



ZAGREBACKI HOLDING: S&P Affirms 'B' ICR; Outlook Stable


KARSTADT: Supervisory Board Postpones Restructuring Meeting


IRISH RAIL: Warns Strikes Could Lead to Insolvency


EUROMAX III: Fitch Lowers Rating on Class B Notes to 'Csf'


ESTRO GROUP: HIG Europe Acquires Majority of Assets
EURO-GALAXY CLO: S&P Affirms 'B+' Rating on Class E Notes


COMMERCIAL BANK ART-BANK: Bank of Russia Revokes Banking License


ELAN: European Commission Orders Bankruptcy Proceedings
SPORTNI CENTER: BAMC Puts Claims & Equity Shares Up for Sale

U N I T E D   K I N G D O M

CHEVRON LIFTS: Directors Accepted Deposits While Insolvent
FABRIQUE DU: Administrators Seek Buyers For Firm
FERGUSON SHIPBUILDERS: Easdale Brothers Make Rescue Bid
KENDRICK ZALE: High Court Enters Wind Up Order



ZAGREBACKI HOLDING: S&P Affirms 'B' ICR; Outlook Stable
Standard & Poor's Ratings Services revised its outlook on
Croatia-based conglomerate Zagrebacki Holding d.o.o. (ZGH) to
stable from negative.  At the same time, S&P affirmed the 'B'
long-term issuer credit rating on ZGH.

The outlook revision reflects the recent improvement in ZGH's
liquidity position following the successful refinancing of its
short-term debt and additional financial support from Zagreb.
Both factors reduce the possibility of S&P lowering the rating on

The rating on ZGH reflects S&P's assessment of the high
likelihood that the company's 100% owner, Zagreb, would provide
timely and sufficient extraordinary support in the event of
financial distress.  It also reflects S&P's assessment of the
company's weak liquidity position and its 'ccc+' stand-alone
credit profile (SACP).

In accordance with S&P's criteria for rating government-related
entities, S&P's view of the high likelihood of extraordinary
government support is based on its assessment of ZGH's:

   -- Very important role in providing essential municipal
      services, such as transport, gas and water supplies, and
      waste collection, as well as its role as the city's
      financial vehicle in the context of the strict legal limits
      imposed on municipal borrowing in Croatia.  Also, ZGH
      arranges financing for the city's infrastructure projects
      as national legislation limits the city's own debt-raising

   -- Strong link with Zagreb.  The city government has a strong
      influence on ZGH's strategy and S&P do not anticipate any
      challenge to the city's 100% ownership in the medium term.
      Although the holding is currently undergoing a corporate
      restructuring, S&P believes it will retain operational
      control over the main companies and branches that provide
      municipal services.  S&P also assumes that, were ZGH to
      default, it would affect the city's reputation in the
      market.  However, the city's ability to provide timely
      support to the holding has weakened as its cash position
      has been low to modest since 2009.

After the municipal election in June 2013, the city's government
managed to re-establish control of ZGH and increase its support
of the holding.  The city approved a new agreement with the
employees' union, which should enable it to reduce personnel
costs.  It has also helped restructure the company's past-due
leasing obligations and concluded a number of new agreements to
rent and acquire real estate owned by ZGH.  ZGH then sold these
receivables to local banks and managed to significantly reduce
its overdue payables and stock of short-term debt.

Because of S&P's view of the high likelihood of extraordinary
support from Zagreb, the rating on ZGH is two notches higher than
its SACP, which S&P assess at 'ccc+'.

S&P's view of the SACP is based on the combination of ZGH's weak
business risk profile, and its highly leveraged financial risk
profile.  S&P assess ZGH's management and governance as weak, and
its stand-alone liquidity arrangements as weak.

The weak business risk profile reflects S&P's assessment of ZGH's
weak regulatory environment, its poor operational performance
(for instance, water leakage of ZGH's water-supply subsidiary
amounts to about 50% of the total water supply), low
profitability, track record of inefficient decisions and negative
returns, high leverage, and weak cash flow ratios.  These
weaknesses are offset by ZGH's monopoly position as a provider of
public services, strong ongoing support from its owner via
operating and capital subsidies, guarantees on some debt (which
is repaid indirectly from the city's budget), and asset
transfers.  Overall, through the purchase of services and
subsidies, Zagreb contributes about 30% of ZGH's operating
revenues.  The city's government determines the makeup of ZGH's
management board, most tariffs for its regulated businesses, and
its investment plan.

S&P assess ZGH's financial risk profile as highly leveraged.
Since 2008, ZGH has lacked a long-term financial strategy, and
this weighs on the rating.  The holding also remains subject to
the city's politically-motivated decisions on mandates and
sources of income.

ZGH has recently applied some cost-cutting measures, especially
regarding personnel.  Together with additional financial support
from the city, these measures helped ZGH achieve a small profit
in 2013.  This allowed the holding to start refinancing its
short-term loans with long-term borrowing, thereby alleviating
the pressure on its liquidity position.  In S&P's base-case
scenario, these, together with increased tariffs on public
transport and water supply and a reduction in the number of
people eligible for free public transport, may improve its funds
from operations (FFO) generation in 2013-2014.  Its debt burden
is expected to remain high over this period, with debt-to-EBITDA
projected to average a high 6.5x-7.0x and FFO to debt staying at
about 12%.

S&P views ZGH's liquidity as weak, under its criteria, despite
the substantial improvement achieved over the past 12 months.
S&P also notes, however, that the city continues to transfer
funds earmarked for the repayment of a portion of the holding's

Throughout 2013 and 2014, ZGH's average cash position was about
Croatian kuna (HRK) 150 million (EUR20 million), well below its
debt service due within the next year of about HRK0.6 billion.

Based on S&P's forecast, the holding's sources of liquidity
(cash, committed credit lines, and FFO) will cover only 80% of
the uses of liquidity -- such as capital investments and
principal repayment -- over the next year.  In 2014, S&P expects
ZGH will increase its capital expenditure up to HRK0.7 billion to
finalize the construction of two kindergartens, a swimming pool,
and implement a water supply and sewage project sponsored by the
European Bank for Reconstruction and Development.

After the refinancing of its short-term debt, the holding's debt
repayment has halved to about HRK0.6 billion over the next 12
months.  The company could make recourse to long-term borrowing,
as it did in 2013 when it achieved an accounting profit (under
Croatian law, a public-sector company is not allowed to raise
long-term borrowings when it generates losses).  S&P notes that
the holding has also managed to repay about HRK0.9 billion of
overdue payables, further alleviating pressure on its liquidity

The company owns significant real estate assets.  It initially
planned to start selling these to private entities in 2008, with
the proceeds going to repay debt.  However, the continuous slump
in the real estate market has delayed the sale of these assets by
more than six years.

In 2017, however, ZGH will have to repay its outstanding bonds
issue.  Total maturity for that year is HRK3 billion.  In S&P's
opinion, the holding has not yet developed a feasible plan for
redeeming this obligation.

The stable outlook reflects S&P's view that ZGH's liquidity
position has stabilized and that increased financial support from
Zagreb sufficiently mitigates any residual challenges.

S&P could raise the rating on ZGH if the company manages to
improve its liquidity position such that sources of liquidity
consistently exceed uses of liquidity.  S&P may also consider an
upgrade if it revises upward its view of the likelihood of
extraordinary support from Zagreb.

S&P could lower the rating on ZGH if, as a result of insufficient
consolidation measures, it fails to improve its profitability; if
it takes on materially more short-term debt than S&P envisage in
its base-case scenario; or if its access to external liquidity

S&P could also lower the rating on ZGH if it revised downward its
view of the likelihood of extraordinary support from Zagreb.


KARSTADT: Supervisory Board Postpones Restructuring Meeting
Deutsche Welle reports that Karstadt's supervisory board
announced Tuesday it had postponed a meeting scheduled for
Aug. 21, where executives would have discussed plans for the
floundering department store chain's restructuring.

According to Deutsche Welle, Karstadt Chairman Stephan Fanderl
said the meeting had not been rescheduled because the board
wanted to wait for a decision by German anti-trust regulators on
the recent takeover of the 133-year-old retailer by Austria's
Signa Group.

Last Friday, Karstadt's board asked Germany's Federal Cartel
Office to approve the retail group's takeover by Signa,
Deutsche Welle recounts.  A decision on the transaction is not
expected until mid-September at the earliest, Deutsche Welle

Signa, as cited by Deutsche Welle, said Mr. Berggruen, who bought
Karstadt in 2010, would completely hand over ownership of the
group to Austrian investor Rene Benko.

Occupying prime sites in Germany's main shopping centers,
Karstadt had in recent years battled falling sales as well as
criticism of what pundits called its out-to-date retailing style,
Deustche Well relates.

A deal had been in the works for months for Karstadt, which
employs some 17,000 people, Deutsche Welle notes.

Karstadt is a German department store chain.


IRISH RAIL: Warns Strikes Could Lead to Insolvency
-------------------------------------------------- reports that Irish Rail said the planned strikes at
the company will see the company face insolvency and will damage
customer loyalty and affect hundreds of thousands of regular
commuters. relates that SIPTU and the NBRU have extended their
work stoppages from four days to five.

According to the report, strike action will now be carried out on
Aug. 24 and 25 as well as on Sept. 7, 8 and 21 -- dates that
include the All-Ireland Hurling and Football Finals in an ongoing
dispute over pay-cuts. quotes Barry Kenny from Irish Rail as saying that the
action could lead to insolvency: "There's obviously going to be
GAA fixtures, there's going to be our regular customers that will
be travelling across the country at weekends. It's also going to
affect two Mondays, which will affect our regular commuters as

"Which will damage customer loyalty again at a time when our
business is starting to grow again and all that does is widen the
financial gap which has to be filled and our trade unions
recognise and accept the company is going to face insolvency."


EUROMAX III: Fitch Lowers Rating on Class B Notes to 'Csf'
Fitch Ratings has downgraded Euromax III MBS Ltd., as follows:

  EUR38 million Class A-1 (XS0158773324): downgraded to 'CCCsf'
  from 'B-sf'

  EUR6 million Class A-2 (XS0158774991): downgraded to 'CCsf'
  from 'CCCsf'

  EUR12 million Class B (XS0158775022): downgraded to 'Csf' from

Euromax III MBS Ltd (the issuer) is a cash arbitrage
securitization of structured finance assets.

Key Rating Drivers

The downgrade reflects the increased risk of an event of default
as a result of the step-up coupon as well as concentration in the
remaining portfolio.  Only 24 assets remain in the portfolio and
amortization is slow.  Since the last review in September 2013,
the class A-1 notes have amortized by EUR13.4 million and credit
enhancement increased to 48% from 38%.  Principal collections
from underlying assets during the past 12 months were EUR5.5
million, of which EUR5 million was generated by one single asset.
The remaining amortization was provided by principal collections
from the previous year held in a cash account at the time of the
last review.

The transaction includes a step-up coupon which will take effect
in December 2014 and will significantly increase the cost of the
liabilities.  Fitch calculates that based on the projection in
the investor report, the interest collection will be just
sufficient to pay senior fees and interest on the class A-1 and
A2 notes.  Any increase in Euribor may cause an event of default.
While principal is available to cover interest shortfalls,
principal amortization from the remaining portfolio is limited
and volatile.

The portfolio currently comprises 70% RMBS and 21% CMBS assets.
The 'CCC' and below bucket has increased to 52.9% from 39% since
the last review in September 2013.  The portfolio comprises
assets of a tranche size below 10%.  The deal's legal maturity is
in 2095.  There are currently no long-dated assets included in
the portfolio.

Rating Sensitivities

Fitch tested the impact on the ratings of bringing the maturity
of the assets in the portfolio to their legal maturity, and this
stress would not affect the notes' ratings.


ESTRO GROUP: HIG Europe Acquires Majority of Assets
Private Equity Wire reports that HIG Europe has acquired the
majority of the assets of Estro Group.

According to Private Equity Wire, the group has been relaunched
under the name Smallsteps, operating 251 former Estro locations
and employing 2,750 former Estro staff.

The deal was completed shortly after Estro was temporarily placed
into administration, Private Equity Wire relates.  All continuing
locations are operating under "business as usual" conditions,
Private Equity Wire notes.

Estro Group is a provider of childcare services in the

EURO-GALAXY CLO: S&P Affirms 'B+' Rating on Class E Notes
Standard & Poor's Ratings Services took various credit rating
actions in Euro-Galaxy CLO B.V.

Specifically, S&P has:

   -- Raised its ratings on the class A-1, A-2, B-1, B-2, and C
      notes; and

   -- Affirmed its 'BBB (sf)' rating on the class D notes and its
      'B+ (sf)' rating on the class E notes.

The rating actions follow S&P's review of the transaction's
performance using data from the July 11, 2014 trustee report.
S&P has conducted a credit and cash flow analysis and has applied
its relevant criteria.

S&P subjected the capital structure to a cash flow analysis to
determine the break-even default rate (BDR) for each rated class
of notes at each rating level.  The BDR represents S&P's estimate
of the maximum level of gross defaults, based on its stress
assumptions, that a tranche can withstand and still fully repay
principal to the noteholders.  In S&P's analysis, it used the
reported portfolio balance that it considered to be performing
(EUR215,279,103), the current and covenanted weighted-average
spreads (3.99% and 2.45%, respectively), and the weighted-average
recovery rates calculated in line with S&P's corporate
collateralized debt obligation (CDO) criteria.  S&P applied
various cash flow stress scenarios, using standard default
patterns, in conjunction with different interest rate stress

Since S&P's Aug. 21, 2013 review, the aggregate collateral
balance has decreased by EUR102.68 million, to EUR215.28 million
from EUR317.96 million.  This decrease is mostly due to the
partial amortization of the class A-1 and A-2 notes.

In S&P's view, the partial amortization of the class A-1 and A-2
notes has increased the available credit enhancement for all
rated classes of notes.

S&P has observed that overcollateralization, the transaction's
weighted-average spread, and the portfolio's credit quality have
all improved over the same period.

Non-euro-denominated assets currently comprise 10.11% of the
total performing assets.  Cross-currency swap agreements hedge
these assets.  In S&P's opinion, the documentation for the
derivative counterparties does not fully comply with S&P's
current counterparty criteria.  Therefore, in S&P's cash flow
analysis, for ratings above the long-term issuer credit rating
splus one notch on the derivative counterparties, S&P has
considered scenarios where the counterparties do not perform, and
where, as a result, the transaction may be exposed to greater
currency risk.

S&P's analysis indicates that the available credit enhancement
for the class A-1, A-2, B-1, B-2, and C notes is commensurate
with higher ratings than previously assigned.  S&P has therefore
raised its ratings on these classes of notes.

S&P's analysis also indicates that the available credit
enhancement for the class D notes is commensurate with the
currently assigned rating.  S&P has therefore affirmed its 'BBB
(sf)' rating on the class D notes.

The application of the largest obligor default test--a
supplemental stress test in S&P's corporate CDO criteria--
constrains its rating on the class E notes at 'B+ (sf)'.  S&P has
therefore affirmed its 'B+ (sf)' rating on the class E notes.

Euro-Galaxy CLO is a managed cash flow collateralized loan
obligation (CLO) transaction that securitizes loans to primarily
European speculative-grade corporate firms.  The transaction
closed in Sept. 2006 and is managed by Pinebridge Investments
Europe Ltd.  The transaction's reinvestment period ended in
Oct. 2012.


Class         Rating              Rating
              To                  From

Euro-Galaxy CLO B.V.
EUR412.775 Million Senior-Secured Fixed- and Floating-Rate Notes

Ratings Raised

A-1           AAA (sf)            AA+ (sf)
A-2           AAA (sf)            AA+ (sf)
B-1           AA+ (sf)            AA (sf)
B-2           AA+ (sf)            AA (sf)
C             A+ (sf)             A (sf)

Ratings Affirmed

D             BBB (sf)
E             B+ (sf)


COMMERCIAL BANK ART-BANK: Bank of Russia Revokes Banking License
BBR reports that the Bank of Russia revoked the banking license
from the Vladikavkaz-based credit institution Commercial Bank
Art-Bank, limited liability company, or CB Art-Bank LLC from
Aug. 18.

According to BBR, the Bank of Russia took the step because of the
credit institution's failure to comply with federal banking laws
and Bank of Russia regulations, significant unreliability of
reporting data, inability to meet creditors' claims on monetary

CB Art-Bank LLC implemented high-risk lending policy and did not
create loan loss provisions adequate to risks assumed, BBR
discloses.  Due to the loss of liquidity, the Bank failed to
timely honor its liabilities to creditors, BBR notes.  CB
Art-Bank also presented significantly unreliable financial
statements to the Bank of Russia and failed to meet the
supervisor's requirements to disclose its real financial
standing.  The management and owners of the credit institution
have not taken measures required to normalize its activities, BBR

By Order No. OD-2124 dated Aug. 18, the Bank of Russia appointed
a provisional administrator to CB Art-Bank for the period until
the appointment of a receiver pursuant to the Federal Law "On the
Insolvency (Bankruptcy) of Credit Institutions" or a liquidator
under Article 23.1 of the Federal Law "On Banks and Banking
Activities", BBR relates.  In accordance with federal laws, the
powers of the credit institution's executive bodies are
suspended, BBR states.

As of August 1, 2014, CB Art-Bank LLC ranked 674th by assets in
the Russian banking system.


ELAN: European Commission Orders Bankruptcy Proceedings
Deutsche Presse-Agentur, citing the STA news agency, reports that
the European Commission has ordered Slovenia to begin bankruptcy
proceedings within 20 days at Elan.

The company, best known for its skiing equipment, is to go
bankrupt because it remains unable to repay a EUR10 million
(US$13.3 million) state loan, dpa discloses.

The Commission ruled in 2012 that a state capital injection to
Elan violated EU competition rules and had to be repaid by the
end of that year, dpa recounts.

As Elan failed to return the money, the government was supposed
to sell it and collect in that way, but privatization plans
remained at a standstill, dpa notes.

The company, with a majority stake in the hands of a state-owned
fund, confirmed that it was notified of the Commission order, dpa

According to dpa, the company, as cited by STA, said that it was
still hoping to find a private investor and resolve the issue
through the sale, and insisted that it would legally challenge
the Commission's ruling.

Elan is a Slovenian sports goods manufacturer.

SPORTNI CENTER: BAMC Puts Claims & Equity Shares Up for Sale
Bank Assets Management Company (BAMC) announced the following
public call for offers to purchase claims held against the
following companies:

-- Sportni Center Pohorje d.o.o., Mladinska ulica 29, 2000
-- Branik Maribor Ski Club
-- GTC Kope d.o.o, Glavni trg 041, Slovenj Gradec
-- Rikom d.o.o., Mladinska ulica 32, 2000 Maribor

Along with these claims, BAMC also intends to sell equity shares
in Sportni Center Pohorje d.o.o.

BAMC is interested in selling off all its claims plus charges,
interest and other fees, as well as accesory rights in relation

-- Sportni Center Pohorje d.o.o., which amounts to
    EUR44,920,061.76 as of June 18, 2014, including charges,
    accrued interest and other fees

-- Branik Maribor Ski Club, amounting to EUR1,174.190.29 as of
    June 18, 2014, including charges, accrued interest and other

-- GTC Kope d.o.o., amounting to EUR8,540,961.68 as of June 18,
    2014, including charges, accrued interest and other fees

-- Rikom d.o.o., amounting to EUR1,061,878.21 as of June 18,
    2014, including charges, accrued interest and other fees

Along with these claims, the seller intends to also sell equity
shares in Sportni Center Pohorje d.o.o., as follows: (i) 72.9848%
share (registered with AJPES to NKBM, d.d., share no. 221142),
which corresponds to the nominal contribution of EUR7,500,000.00;
(ii) 12.0310% shae (registered with AJPES to NLB, d.d., share no.
221143), which corresponds to the nominal contribution of
EUR1,236,317.88; and (iii) 12.2973% share (registered with AJPES
to NLB, d.d., share no. 221145), which corresponds to the nominal
contribution of EUR1,263,682.12.

The deadline for submission of indicative offers is September 1,
2014 at 12:00 noon.  It will be possible to carry out the process
of due diligence in the period between September 17, 2014 and
October 17, 2014.  Bidders may submit binding offers until
October 27, 2014.

More detailed information will be available online at

U N I T E D   K I N G D O M

CHEVRON LIFTS: Directors Accepted Deposits While Insolvent
Stuart Michael Conneely and Mark Orest Kaspruk, directors of
Chevron Lifts Ltd, have been disqualified for seven years each
for accepting a deposit when they ought to have known there were
no reasonable grounds for believing they would be able to provide
the goods. They are also believed to have entered into
transactions to their benefit totalling GBP18,582 while Chevron
was insolvent.

Messrs. Conneely's and Kaspruk's disqualification follows an
investigation by the Insolvency Service.

Mr. Conneely, 39, and Mr. Kaspruk, 51, have given undertakings to
the Secretary of State for Business, Innovation & Skill, which
prevents them from becoming directly or indirectly involved in
the promotion, formation or management of a company for seven
years from Aug. 13, 2014.

Commenting on the disqualification, Sue Macleod, Chief
Investigator at The Insolvency Service, said:  "This is a case in
which the directors clearly accepted a deposit from a customer
when the company was insolvent.

"Directors have fiduciary duties to company creditors and
behaviour such as this is likely to lead to investigation by the
Insolvency Service and result in disqualification."

In giving their undertakings, Messrs. Conneely and Kaspruk
accepted that:

  -- They caused or allowed Chevron Lifts Ltd from Nov. 24 to 26,
     2010 to enter into transactions to Mr. Kaspruk's benefit and
     to the detriment of its other creditors by paying GBP18,582
     to him at a time when Chevron was insolvent.

  -- Chevron paid GBP5,082.30 to Mr. Kaspruk on Nov. 24, 2010,
     and GBP4,500 on Nov. 25, 2010.

  -- Chevron paid GBP9,000 to Mr. Kaspruk on Nov. 26, 2010, the
     day after receiving professional advice that no payments
     should be authorised to existing creditors and that no
     creditor should be preferred over another.

  -- These payments were to the detriment of creditors (other
     than the directors) totalling GBP577,659.

  -- Despite receiving professional advice on Nov. 24 & 25, 2010
     not to accept customer deposits, they caused or allowed the
     company a few days later on Nov. 29 to obtain a customer
     deposit of GBP11,471 for goods and services when they knew
     or ought to have known the company was insolvent and that
     there were no reasonable grounds for believing the company
     would be able to provide the goods or services.

  -- On Nov. 29, 2010, Chevron paid GBP11,471 from a customer
     into the company bank account for goods/services, which were
     then not supplied but which reduced the personally
     guaranteed overdraft by GBP11,471.

The investigation showed that:

A creditor obtained a County Court judgment for GBP83,141.45
against Chevron on Nov. 27, 2009, and on Dec. 16, 2009,
petitioned for Chevron to be wound up. The company disputed the
debt, but offered a GBP20,000 settlement on Nov. 11, 2010, which
was rejected. Chevron also had VAT arrears of GBP93,197 overdue
from July 31, 2010 and PAYE/NIC arrears of GBP64,538 overdue from
at least April 19, 2010.  The directors sought advice on Nov. 11,
24 and 25, 2010 regarding placing Chevron into administration.

On Nov. 30, 2010, directors met with an insolvency practitioner
to place Chevron into liquidation.

FABRIQUE DU: Administrators Seek Buyers For Firm
Hanna Sharpe at Insolvency News reports that administrators are
now working to find a buyer for Fabrique Du Metal Limited.

The business, which trades as Advanced Seating Designs, was
affected by alterations to government policy for the assessment
and funding of disability products, the report says. It had also
been hurt by a fall in orders from corporate clients.

Insolvency News relates that following these difficulties the
company directors put the company into administration at the end
of July. Alex Cadwallader --
-- and Andrew Duncan -- -- of
Leonard Curtis were drafted in as the joint administrators on
August 1.

Mr. Cadwallader told Insolvency News: "We are working quickly to
identify potential buyers for assets and have instructed
professional agents, AgentCite Limited, to market the assets for

"Having already received expressions of interest in the company's
order book, customer list and product portfolio, we are keen to
ensure that the value of assets are maximised for the benefit of

Fabrique Du Metal Limited makes ergonomic and orthopaedic office

FERGUSON SHIPBUILDERS: Easdale Brothers Make Rescue Bid
BBC News reports that Greenock-based businessmen Sandy and James
Easdale, who own McGill's Buses, have expressed an interest in
saving Ferguson Shipbuilders, the last commercial shipbuilder on
the River Clyde.

According to BBC, the businessmen have contacted the
administrators of Ferguson in Port Glasgow.

About 70 workers were made redundant on Friday after the firm
went bust due to a lack of orders and cash flow issues, BBC

Scottish Finance Secretary John Swinney visited the yard on
Monday, BBC discloses.  Mr. Swinney attended a task force meeting
at Ferguson Shipyard on Monday with the aim of looking at options
to save the yard, BBC notes.

Ferguson Shipbuilders, which dates back to 1902, went into
administration following "significant cash flow pressure" in
recent months, BBC relates.

While best known for its shipbuilding capability, Ferguson
Shipbuilders is also known for engineering and joinery, materials
handling, fluids distributions, system hydraulics, power
distribution and management and civil engineering.

KENDRICK ZALE: High Court Enters Wind Up Order
Kendrick Zale Ltd, a broking company which sold carbon credits
and gold mining partnerships as investment opportunities was
wound up in the public interest by the High Court on July 16,
2014 for making false claims about investment returns.

The closure follows an investigation by the Insolvency Service.

The investigation found that Kendrick Zale had traded from a
rented office at 70 Mary Axe in the City of London until
September 2013, engaging 20 people at its peak. The company
mainly sold carbon credits to members of the public, as
investment opportunities, making unsubstantiated claims as to
likely investment returns, including that customers would expect
to see the price of carbon credits they had purchased at GBP3
rise to GBP7.80 to & GBP8 within 18 months. Up to the date it
ceased trading, the company had taken over GBP1.1 million from
members of the public for the sale of carbon credits. The company
targeted vulnerable and unsuspecting individuals, typically those
over 60 years of age and in a number of instances, those over 80,
using high pressure sales tactics.

Welcoming the court's decision to wind-up the company, David
Hill, a Chief Investigator with the Insolvency Service, said:
"In spite of their grand claims, this company's services, were
simply designed to fleece vulnerable investors.

"I would urge anyone cold-called and pressured to invest in any
kind of investment to simply end the call as genuine investments
are not likely to be sold in such a manner.

"No one should be left in any doubt that the Insolvency Service
will continue to take robust action whenever serious failings are
discovered and in particular against contemptible companies as in
this case, preying on vulnerable investors."

The company failed to even provide ownership rights to those
customers who had purchased carbon credits, instead those
customers purchases were held in sub accounts in third party

The Financial Conduct Authority and Environment Agency have
issued warnings concerning the viability of carbon credits as
investment products, stating that carbon credits, both Voluntary
Emission Reduction and Certified Emission Reduction types, are
not suitable as investment products for members of the public.

The petition to wind up the company was presented in the High
Court on May 15, 2014 under the provisions of section 124A of the
Insolvency Act 1986 following confidential enquiries by Company
Investigations under section 447 of the Companies Act 1985, as


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

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