TCREUR_Public/150114.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Wednesday, January 14, 2015, Vol. 15, No. 9



HYPO ALPE-ADRIA: Austrian Lawmakers to Investigate Collapse


SRPSKA: Moody's Assigns B3 Issuer Rating; Outlook Stable


OBERTHUR TECHNOLOGIES: Fitch Affirms 'B' Issuer Default Rating


FRESENIUS SE: Moody's Changes Ba1 CFR Outlook to Stable
WESTLB AG: Portigon to Put Art Collection Up for Auction


IRISH AIRLINES: Pensioners Protest Against Pension Cuts
IRISH BANK: Quinn Gets Automatic Discharge From EUR2-Bil. Debt


MONTE DEI PASCHI: ECB Raises Minimum Capital Ratio


DH SERVICES: Moody's Affirms B2 CFR & Changes Outlook to Stable


EIGER ACQUISITION: Moody's Assigns (P)B2 Corporate Family Rating


FORNETTI ROMANIA: Hopes to Exit Insolvency This Year

S L O V A K   R E P U B L I C

* SLOVAK REPUBLIC: Business Bankruptcies Rise to 407 in 2014

U N I T E D   K I N G D O M

AV CARGO: Enters Into Company Voluntary Arrangement
BEACON HILL: In Administration, Defaults in Interest Payments
COMPLETE BUILDING: High Court Winds Up Firm
CYAN BLUE: Moody's Assigns 'B2' Corporate Family Rating
SKY BETTING: S&P Assigns Preliminary 'B' CCR; Outlook Stable

TECHELEC: Falls Into Administration

* S&P Took Actions on European CDO Tranches for December 2014



HYPO ALPE-ADRIA: Austrian Lawmakers to Investigate Collapse
Boris Groendahl at Bloomberg News reports that Austrian lawmakers
investigating the multibillion-euro failure of Hypo Alpe-Adria-
Bank International AG will focus on why regulators didn't
intervene before 2008 and why the government kept the bank alive

The opposition Green party released a list on its Web site on
Jan. 9 of 47 issues for an investigative committee that's due to
be installed by Parliament in Vienna this week, Bloomberg

According to Bloomberg, the motion said the committee will look
into Hypo Alpe's rise since 2000, its near-collapse in 2009 and
the government's management after nationalization.  It will also
question why the government decided against plans last year to
let Hypo Alpe go insolvent, and instead spun off a "bad bank" in
a move that will require further taxpayer support, Bloomberg

Hypo, which has so far cost taxpayers about EUR5.5 billion
(US$6.5 billion), remains an embarrassment for the government
five years after its rescue, Bloomberg notes.  The parliamentary
committee will have more powers to summon witnesses, and the Neos
group already presented a list of 200 it plans to question,
Bloomberg states.

The committee will investigate whether the central bank and the
Finanzmarktaufsicht regulator, Hypo Alpe's supervisors, were
influenced by government officials while it was owned by the
state of Carinthia until 2007, Bloomberg discloses.  It will also
question why Austria supported it with aid in 2008 without
requesting a restructuring plan, and whether the government
sufficiently considered alternatives to its emergency
nationalization a year later, Bloomberg says, citing the motion.

                      About Hypo Alpe-Adria

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

Hypo Alpe received EUR1.75 billion in aid in emergency
capital from the Austrian government.  European Union Competition
Commissioner Joaquin Almunia said in March 2013 that Hypo Alpe
faced possible closure for failing to adequately restructure.
The European Commission approved Hypo's recapitalization in
December 2013, but made it conditional on the management
presenting a thorough plan to overhaul the group.  The Austrian
finance ministry, which effectively runs Hypo Alpe, submitted a
restructuring plan to the Commission on Feb. 5, 2013.  On Sept.
3, 2013, the Commission cleared Hypo Alpe's restructuring plan,
which includes the sale of the bank's Austrian unit and Balkans
banking network and the winding-down of non-viable parts.  It
also approved additional aid to wind down the bank.

As reported in the Troubled Company Reporter-Europe on Nov. 3,
2014, The Wall Street Journal said Austria's nationalized lender
Hypo Alpe-Adria-Bank International AG said on Oct. 30 it has
split itself between a wind-down unit, called Heta Asset
Resolution GmbH, and its southeastern European network of banks.

The split is part of the lender's restructuring plan approved by
the European Commission, the Journal disclosed.  According to the
Journal, under the plan, the Austrian government -- Hypo Alpe-
Adria's current owner -- must sell off all of the bank's assets
or transfer them into a wind-down unit by mid-2015.


SRPSKA: Moody's Assigns B3 Issuer Rating; Outlook Stable
Moody's Investors Service EMEA Limited has assigned a first-time
issuer rating of B3 to the Republic of Srpska. The outlook on the
rating is stable.

The rating reflects the following key drivers:

(1) A unique legal status within Bosnia and Herzegovina,
affording a high degree of financial autonomy;

(2) Prudent budgetary management, characterized by solid and
growing operating surpluses;

(3) A very high debt burden, low cash-reserve levels and high
infrastructure needs.

The ratings also reflect the republic's operating environment,
which is linked to the central government of Bosnia and
Herzegovina (B3, stable).

Ratings Rationale

The Republic of Srpska's B3 rating reflects its unique status and
tax regime, which is protected by Bosnia and Herzegovina's
constitution and reflected in the constitution of Republic of
Srpska. The Republic of Srpska's tax base goes beyond the central
government's tax base and it has the flexibility to set the rates
and determine the bases for each tax.

Another driver supporting the rating is Moody's expectation that
the Republic of Srpska will maintain its solid operating margins
in 2014-15, resulting from growing tax revenues, conservative
budgetary management and contained operating expenditures.

The Republic of Srpska has registered solid operating balances
(GOB) over the last three years, which led to a strong
improvement of the republic's GOB to 9% of operating revenue in
2013 from -4% in 2009 and -12% in 2010. The increase resulted
from stronger own tax revenues, driven by robust value added tax
proceeds, which grew at a compound annual growth rate of 4%
during 2009-13.

At the same time, the republic has implemented austerity measures
to control its operating expenditures, leading to a compound
annual growth rate of -2% over the same period. According to
Moody's, the improvement in the GOB, combined with a drop in
capital expenditure, led to a financing surplus of 3% of total
revenues in both 2012 and 2013, compared with a financing deficit
of 4% in 2011 and 20% in 2010. Given the Republic of Srpska's
ability to significantly scale down its investments in case of
need, it is unlikely that the republic will return to a large
financing deficit in the short term, says Moody's.

However, Moody's notes that the Republic of Srpska's high debt
burden, significant infrastructure requirements and low liquidity
levels represent major credit constraints. The republic's
financial debt reached KM3.97 billion (EUR2.03 billion) at year-
end 2013, equivalent to a very high level of 243% of operating
revenues. Moody's expects that this ratio will remain elevated at
around 240% of operating revenues over the next 2-3 years,
because of the republic's substantial investment needs. Annual
debt repayments are also high, representing an expected 20% of
operating revenues in 2014, after they reached a peak of 25% in

What Could Change The Ratings UP/DOWN

The strengthening of Bosnia and Herzegovina's B3 (stable) credit
profile, as captured in an upgrade of the sovereign rating, would
result in upward pressure on the Republic of Srpska's rating. In
addition, significant improvements in the republic's fiscal and
financial performance -- and a reduction in its debt burden --
may lead to a rating upgrade.

Downward pressure on the rating could occur if the republic (1)
further increases its net direct and indirect debt; and/or (2)
suffers a deterioration in its operating and financial

Specific economic indicators as required by EU regulation are not
applicable for this entity.

On November 13, 2014, a rating committee was called to discuss
the rating of the Srpska, Republic of. The main points raised
during the discussion were:

  -- The issuer's economic fundamentals, including its economic

  -- The issuer's institutional strength/framework.

  -- The issuer's governance and management.

  -- The issuer's fiscal or financial strength, including its
     debt profile.

  -- The assessment of extraordinary support.

The principal methodology used in this rating was Regional and
Local Governments published in January 2013.

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


OBERTHUR TECHNOLOGIES: Fitch Affirms 'B' Issuer Default Rating
Fitch Ratings has affirmed Oberthur Technologies Holding S.A.S.'s
Issuer Default Rating (IDR) at 'B' with a Stable Outlook.

Oberthur continues to perform in line with management guidance at
the revenue and EBITDA level, although cash flow was pressured
during 2014 by a reversal in working capital and costs related to
plans to consolidate the company's European manufacturing
facilities. Along with refinancing costs and negative working
capital, funds from operations (FFO) net adjusted leverage is
estimated to have peaked at around 5.8x by YE14; providing
headroom, albeit reduced, with a downgrade guideline of 6.5x.

Improved cash flow performance is expected to resume in 2015 in
our base case and leverage return to an improving trend. Oberthur
has a solid industry number two position, with long-term demand
trends for secure digital solutions considered to be positive.
Technology risk, the presence of sizeable restructuring charges
and volatile working capital swings underpin the risk of cash
flow volatility. Nonetheless, Fitch expects greater consistency
of cash flows over the next two to three years and that moderate
deleveraging is possible.


Business Model
Oberthur benefits from a strong market number-two position
(behind Gemalto) in secure smartcard and SIM-based solutions to
the payment, telecom industries and public sector. Pricing
pressure in commoditized SIMs provides EBITDA margin pressure and
the need to maintain operating efficiencies and sell more
advanced products, although cost efficiencies and the changing
revenue mix drove solid gross margin gains in 2014. Long-
established relationships and the lead time to certify or
validate products with a new customer provide high barriers to
entry within the Payments division.

Growth Markets
There was a change in the revenue mix in 2014, with Payments
(secure payment cards) accounting for 54% of revenues in 9M14 (up
from 48%: 9M13); Telecoms (SIM cards, embedded Secure Element and
related technologies) falling to 30% from 38% and Identity
(e-Passports, e-ID cards, e-driving licenses) accounting for 13%,
up from 11%. While the Telecoms division is experiencing
weakness, overall group revenue growth at 9M14 stood at 3% at
constant currency. Despite the current weakness in telecoms,
Fitch views long-term growth prospects for the business as
positive, with technology shifts such as contactless payment, NFC
and the adoption of EMV (Europay, Mastercard Visa) in markets
like the US underpinning demand.

Technology Risk
Mobile money/wallet offers growth potential to operators, handset
manufacturers and technology providers. Determining who will win
in complex and fast-evolving businesses is less clear. Near Field
Communications (NFC) remains at an early stage but is expected to
grow rapidly. Oberthur's main competitor, Gemalto, seems better
positioned in NFC SIM, with Oberthur stronger in embedded Secure
Element (eSE). The ultimate positioning of competing technologies
therefore has the potential to upset growth prospects. Long-term
trends remain healthy and Oberthur's revenue diversification and
breadth of customers limits the risk of shocks in a given
technology migration.

2014 Leverage, Cash Flow Pressure
After some deleveraging driven by improved cash flow in 2013 --
net debt to EBITDA falling to 4.4x at YE13 -- cash restructuring
associated with the consolidation of its European manufacturing
facilities (of around EUR30m), refinancing costs and a build-up
in working capital increased leverage in 2014. Fitch's
expectations are that net debt / EBITDA will have closed 2014 at
around 4.5x, with FFO net adjusted leverage in the region of 5.8x
(2013A: 5.5x); compared with our downgrade guideline of 6.5x.
However, we expect leverage to have peaked in 2014, given the
underlying growth trends in the business and ongoing margin
expansion. We expect one-off cash out flows to continue into 2015
given the scale of restructuring costs related to the site

Restructuring Costs, Benefits
European site consolidation costs along with debt repricing fees
and working capital outflows will have resulted in negative free
cash flow for 2014. These plans, which envisage the company
concentrating manufacturing at one main site in France, from a
total of five spread across Europe, are estimated to result in
cash restructuring of EUR30 million. Management is targeting a
two-year payback and has implied savings of EUR15 million a year,
which should flow directly through to EBITDA. Gross margin
expansion has been strong with a 9M14 gross margin of 34.1%
versus 31.2% in 9M13. Efficiency gains, once delivered, should
have a positive effect on earnings and cash flow. Management
estimates these benefits will be felt in full by the start of


Negative: The ratings could be negatively affected by FFO net
adjusted leverage above 6.5x and FFO fixed charge cover below 2x
on a permanent basis and any material loss in market share in the
Payment or Telecom divisions.

Positive: The ratings could be positively affected by FFO net
adjusted leverage below 4.5x and FFO fixed charge cover above
2.5x on a permanent basis along with an expectation of consistent
positive FCF generation.


Fitch considers Oberthur to be well funded, having refinanced its
entire capital structure in 2013 and subsequently re-priced its
bank debt in 1Q14; which is expected to have achieved cash
savings of EUR5 million a year. Its secured bank debt, combining
a EUR260 million and USD280 million Term Loan B, mature in 2019,
and the EUR190 million unsecured notes in 2020. Liquidity is
provided by a EUR88 million RCF maturing 2018. This is currently
EUR40 million drawn and could potentially experience further
drawings given current cash flow trends. Nonetheless, Fitch
expects the company to reduce its negative free cash flow trend
in 2015 and considers that Oberthur has adequate liquidity. With
the majority of debt maturing in 2019, Fitch would expect
refinancing to start to be addressed by 2017, by which time our
base case envisages leverage to have improved.

The rating actions are as follows:

Oberthur Technologies Holding SAS:

  Issuer Default Rating: affirmed at 'B'; Stable Outlook

  Senior secured term loan B1 due 2019: affirmed at 'BB-'/'RR2'
  Issued by Oberthur Technologies SA

  Senior secured term loan B2 due 2019: affirmed at 'BB-'/'RR2'
  Issued by Oberthur Technologies of America Corp

  RCF due 2018: affirmed at 'BB-'/'RR2'

Available to Oberthur Technologies Finance SAS, Oberthur
Technologies of America Corp,
and Oberthur Technologies SA

  Unsecured Notes due 2020: affirmed at 'CCC+'/'RR6'
  Issued by Oberthur Technologies Holding SAS


FRESENIUS SE: Moody's Changes Ba1 CFR Outlook to Stable
Moody's Investors Service has changed the outlook to Stable from
Negative on Fresenius SE & Co. KGaA's ('FSE') Ba1 Corporate
Family rating and Ba1-PD Probability of Default rating.
Concurrently, Moody's has affirmed all the ratings of Fresenius
SE & Co. KGaA and of its guaranteed subsidiaries. The outlook on
all ratings is stable.

Ratings Rationale

The revision of the outlook to stable reflects Moody's
expectation that FSE's credit metrics will continue to reverting
back to commensurate levels for the current rating category (i.e.
adjusted Debt/EBITDA of around 4.0x or below) within the next 6
to 9 months supported by organic earnings growth, a focus on
deleveraging as well as the earnings contributions from recent
acquisitions. FSE's point-in-time credit metrics remain slightly
elevated for the rating category as a result of the full
consolidation of the Rhon-Klinikum acquisition debt whilst
earnings from the acquisition have been only consolidated for
respectively 3 months (10% of hospitals), 7 months (20% of
hospitals) and 9 months (70% of hospitals). Fresenius Medical
Care AG & Co. KGaA's ("FME", rated Ba1 stable) acquisition of
Sound Inpatients for approximately USD600 million at the end of
Q2 2014 is also weighing on consolidated point in time credit
metrics of FSE.

The group's year-to-date September 2014 operating performance was
broadly in line with our expectations despite a challenging
backdrop (pressure on reimbursement rates at FMC, normalization
of drug shortages in the US weighing on operating margins of Kabi
and dilutive effect from consolidation of Rhon hospitals). The
revision of the outlook also takes into account a lower
reimbursement rate cut risk for Medicare and Medicaid dialysis
patients in the US than we anticipated when we assigned the
negative outlook back in September 2013. At the current juncture
we expect reimbursement rates to remain broadly flat for 2015 and

The stabilization of the outlook is also informed by our
expectation that FSE will focus on deleveraging to bring back its
leverage towards its target of Net debt / EBITDA of 2.5x-3.0x.
Reported Net debt / EBITDA stood at 3.44x as per LTM September
2014 and is expected to decrease to 3.25x by year-end 2014.

As part of the revision of the outlook Moody's has amended its
rating trigger for a potential upgrade to Baa3. Fresenius needs
to achieve an adjusted Debt/EBITDA ratio of below 3.5x versus a
requirement of 3.0x in the past. The amendment of the trigger
reflects Moody's view that Fresenius's business profile has
improved over the last few years supported by a higher business
and geographical diversification and increased scale. Despite
running a relatively aggressive capital structure Fresenius has
demonstrated a very strong track of profitable external growth
and deleveraging post acquisition.


FSE manages the liquidity needs of its 31% controlled, but fully
consolidated subsidiary FME under a service contract and all
transactions between the two companies are based on arms-lengths
arrangements. Hence, Moody's analyzes the liquidity profile of
FSE on a standalone basis considering access to FME's cash and or
credit lines to be temporary only and likely not available in a
period of liquidity stress. However, due to the existence of
cross default clauses between FSE's and FME's debt the
creditworthiness and short term liquidity of FME are also an
important factor when determining the liquidity of FSE. Currently
Moody's views FME's as well as FSE's liquidity to be adequate.

FSE excluding FME had EUR568 million of cash and cash equivalents
on-balance sheet as of the end of September 2014. Furthermore,
FSE (excluding FME) benefited from EUR1.1 billion availability
under EUR1.1 billion revolving credit facilities at
September 30, 2014 and from access to other bilateral lines.
Considering the track record and expectation of continuing
positive free cash flows after dividends, all of these liquidity
sources should be available to cover non-operating liquidity
needs, especially debt maturities. The existing liquidity profile
includes bank lines that have been put in place through the FSE
2013 credit agreement. The Company still remains dependent on
access to the capital market, but has an established track record
of accessing capital markets even during challenging times. The
maturity profile is now much less concentrated and better staged,
than previously notwithstanding that EUR883 million of debt is
coming due in 2015.

What Could Change the Rating -- UP

Moody's would consider upgrading the ratings if FSE were to (1)
reduce its leverage to below 3.5x on a sustainable basis ; and
(2) maintain moderate debt-funded acquisition activity.

What Could Change the Rating -- DOWN

The ratings could be subject to downward pressure if FSE's
leverage metrics would not improve to levels to or below
consolidated adjusted debt/EBITDA 4.0x and/or consolidated EBITDA
margins decline below 20%. Large debt-financed acquisitions or
negative free cash flows, materially reducing the prospect of
deleveraging or worsening liquidity profile, could also be
drivers of a downward rating migration.

The principal methodology used in these ratings was Global
Healthcare Service Providers published in December 2011. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.

Fresenius SE & Co. KGaA is a global healthcare group providing
products and services for dialysis, the hospital and the medical
care of patients at home. It is a holding company whose major
assets are investments in group companies and inter-company
financing arrangements. Around 50-55% of group sales and EBIT are
generated by Fresenius Medical Care ("FME") (Ba1 Corporate Family
Rating, stable outlook), which is fully consolidated into the FSE
group, although only 31% owned, based on managerial control and a
particular ownership legal structure. FSE' other operations,
which are majority or fully-owned, are Fresenius Kabi (infusion
therapy, intravenously administered generic drugs and clinical
nutrition), Fresenius Helios (operating private hospitals in
Germany) and Fresenius Vamed (77% owned, hospital and other
healthcare facilities projects and services). Based on the
trailing 12 months figures as per September 30, 2014, the group
reported revenues of around EUR22 billion. FSE is owned 27% by
Else-Kroner Foundation.

List of Affected Ratings


Issuer: Fresenius SE & Co. KGaA

  Probability of Default Rating, Affirmed Ba1-PD

  Corporate Family Rating (Foreign Currency), Affirmed Ba1

  EUR300 Million Senior Secured Bank Credit Facility (Local
  Currency) Jun 28, 2018, Affirmed Baa3

  EUR500 Million 0% Senior Unsecured Conv./Exch. Bond/Debenture
  (Local Currency) Sep 24, 2019, Affirmed Ba1

Issuer: Fresenius Finance B.V.

  EUR500 Million 2.875% Senior Unsecured Regular Bond/Debenture
  (Local Currency) Jul 15, 2020, Affirmed Ba1

  EUR300 Million 2.375% Senior Unsecured Regular Bond/Debenture
  (Local Currency) Feb 1, 2019, Affirmed Ba1

  EUR450 Million 3% Senior Unsecured Regular Bond/Debenture
  (Local Currency) Feb 1, 2021, Affirmed Ba1

  EUR500 Million 4.25% Senior Unsecured Regular Bond/Debenture
  (Local Currency) Apr 15, 2019, Affirmed Ba1

  EUR450 Million 4% Senior Unsecured Regular Bond/Debenture
  (Local Currency) Feb 1, 2024, Affirmed Ba1

Issuer: Fresenius Finance II B.V.

  EUR300 Million Senior Secured Bank Credit Facility (Local
  Currency) Jun 28, 2019, Affirmed Baa3

  EUR1250 Million Senior Secured Bank Credit Facility (Local
  Currency) Jun 28, 2018, Affirmed Baa3

  EUR600 Million Senior Secured Bank Credit Facility (Local
  Currency) Jun 28, 2018, Affirmed Baa3

Issuer: Fresenius US Finance I, Inc.

  US$300 Million Senior Secured Bank Credit Facility (Local
  Currency) Jun 28, 2018, Affirmed Baa3

  US$500 Million Senior Secured Bank Credit Facility (Local
  Currency) Jun 28, 2019, Affirmed Baa3

  EUR600 Million Senior Secured Bank Credit Facility (Foreign
  Currency) Jun 28, 2018, Affirmed Baa3

Issuer: Fresenius US Finance II, Inc.

  US$300 Million 4.25% Senior Unsecured Regular Bond/Debenture
  (Local Currency) Feb 1, 2021, Affirmed Ba1

  US$500 Million 9% Senior Unsecured Regular Bond/Debenture
  (Local Currency) Jul 15, 2015, Affirmed Ba1

  EUR275 Million 8.75% Senior Unsecured Regular Bond/Debenture
  (Foreign Currency) Jul 15, 2015, Affirmed Ba1

Outlook Actions:

Issuer: Fresenius SE & Co. KGaA

  Outlook, Changed To Stable From Negative

Issuer: Fresenius Finance B.V.

  Outlook, Changed To Stable From Negative

Issuer: Fresenius Finance II B.V.

  Outlook, Changed To Stable From Negative

Issuer: Fresenius US Finance I, Inc.

  Outlook, Changed To Stable From Negative

Issuer: Fresenius US Finance II, Inc.

  Outlook, Changed To Stable From Negative

WESTLB AG: Portigon to Put Art Collection Up for Auction
Nicholas Comfort at Bloomberg News reports that the art
collection of failed lender WestLB AG, including a piece by
Morris Louis of the Washington Color School movement, is going on
sale as the German state seeks to retrieve funds used in the
bank's rescue.

"We have to use all assets and the art is part of that wealth,"
Bloomberg quotes Kai Wilhelm Franzmeyer, chief executive officer
of the Dusseldorf, Germany-based entity which is winding down
WestLB, as saying in an interview on Deutschlandfunk radio on
Jan. 7.

According to Bloomberg, the radio station reported that Portigon
AG, which emerged from WestLB's collapse, has drafted a
confidential list of 400 artworks for North Rhine-Westphalia's
parliament.  Walter Hillebrand-Droste, a Portigon spokesman,
declined to comment on the number of paintings that will be sold
or their value when contacted by Bloomberg.

Mr. Franzmeyer, as cited by Bloomberg, said Portigon will lend
some of the artworks to local museums before selling them.

                        About WestLB AG

Headquartered in Duesseldorf, Germany, WestLB AG (DAX:WESTLB)
-- provides financial advisory,
lending, structured finance, project finance, capital markets and
private equity products, asset management, transaction services
and real estate finance to institutions.  In the United States,
certain securities, trading, brokerage and advisory services are
provided by WestLB AG's wholly owned subsidiary WestLB Securities
Inc., a registered broker-dealer and member of the NASD and SIPC.
WestLB's shareholders are the two savings banks associations in
NRW (25.15% each), two regional associations (0.52% each), the
state of NRW (17.47%) and NRW.BANK (31.18%), which is owned by
NRW (64.7%) and two regional associations (35.3%).


IRISH AIRLINES: Pensioners Protest Against Pension Cuts
RTE News reports that about 60 people took part in a protest at
Dublin Airport on Jan. 5 against proposals to tackle the
EUR750 million deficit in the Irish Airlines Superannuation
Scheme (IASS).

The insolvent fund is operated by Aer Lingus and the Dublin
Airport Authority, the report says.

According to RTE News, demonstrators said they were facing cuts
of up to 60% to their pensions, or the equivalent of 30 weeks'
income per year.

The cuts were implemented on January 1 this year, RTE News

RTE News says current employees have now moved to a new defined
contribution scheme, while active retirees and deferred
pensioners now receive combined pensions, whereby the IASS
portion of their pension will be reduced to take into account the
State pension.

However, former workers on deferred pensions have said they have
no power to limit cuts to their pension, because they do not have
union representation and cannot take industrial action, the
report states.

IRISH BANK: Quinn Gets Automatic Discharge From EUR2-Bil. Debt
Maeve Sheehan at Sunday Independent reports that former
billionaire Sean Quinn could be forced to surrender his earnings
for the next two years once his bankruptcy expires this week.

According to Sunday Independent, the former tycoon is due to
receive an automatic discharge from his debts of EUR2 billion to
the former Anglo Irish Bank on Jan. 16, three years since he was
officially declared bust with just EUR300 in cash to his name.

But in a setback to his hopes for a fresh start, Mr. Quinn was
due before the High Court on Jan. 12 when the court-appointed
official supervising his bankruptcy was expected to seek an
income payment order over all or part of his future earnings in
the next two years, Sunday Independent relates.

Chris Lehane, the official assignee of bankruptcy, was expected
to make the case before Ms. Justice Caroline Costello at 11:00
a.m., Sunday Independent says.  The case is listed as number 52
in the legal diary under "Sean Quinn, bankrupt", Sunday
Independent discloses.  If the application is approved,
Mr. Lehane would have a claim on part or all of Mr. Quinn
earnings until 2017, with the money most likely going into a pot
for his creditors, mainly IBRC, Sunday Independent notes.

Mr. Quinn went bankrupt soon after he was ordered by the High
Court to repay more than EUR2 billion to the former Anglo Irish
Bank, Sunday Independent recounts.

Once the richest man in Ireland, he ran up the debts while
gambling on the bank's share price as the economic crash loomed,
Sunday Independent relays.  Nationalized, under new management
and renamed IBRC, the bank pursued Mr. Quinn for the massive
debts on behalf of the taxpayer, Sunday Independent discloses.
The highest judgments ever made by an Irish Court were made
against Mr. Quinn for sums of EUR417 million and EUR1.7 billion,
according to Sunday Independent.

Mr. Quinn claimed he was working to repay the money when he was
unceremoniously ousted from the Quinn Group in April 2011 by an
IBRC-appointed special receiver, Sunday Independent notes.
Mr. Quinn first attempted to go bankrupt in Northern Ireland but
that was overturned, Sunday Independent relays.  He was
subsequently declared bankrupt in Ireland, Sunday Independent

                   About Irish Bank Resolution

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

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

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

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

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


MONTE DEI PASCHI: ECB Raises Minimum Capital Ratio
Sonia Sirletti at Bloomberg News reports that Banca Monte dei
Paschi di Siena SpA will probably need to hold more capital as
the European Central Bank raises the bar for the banks it deems

According to Bloomberg, Monte dei Paschi on Jan. 9 said the ECB
is recommending the firm increase its minimum capital ratio as
part of its fundraising plan.  The lender already intends to
raise EUR2.5 billion (US$3 billion) after emerging from the ECB's
exam with a EUR2.1 billion shortfall, Bloomberg discloses.

The ECB is pushing lenders to raise equity levels after becoming
supervisor of the continent's biggest banks, Bloomberg says.  The
requirement is part of the supervisory review and evaluation
process, an analysis the ECB will perform on each bank it
oversees, Bloomberg notes.

The bank, as cited by Bloomberg, said the targeted level of Monte
Paschi's capital ratio is under discussion and may be reviewed,
adding that it will give comments to the ECB's supervisors on
Jan. 16.

                    About Monte dei Paschi

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


DH SERVICES: Moody's Affirms B2 CFR & Changes Outlook to Stable
Moody's Investors Service has affirmed the B2 corporate family
rating and the B2-PD Probability of Default rating of DH Services
Luxembourg S.a.r.l. ("Dematic") but changed the rating outlook to
stable from negative. Concurrently, ratings on the senior secured
revolver were upgraded to Ba3 from B1 while ratings on the senior
secured term loan were also upgraded to Ba3 from B1.

Issuer: DH Services Luxembourg S.a.r.l.

Ratings/Outlook changed:

  Rating Outlook, to Stable from Negative

The following ratings were affirmed:

Corporate Family Rating, B2

Probability of Default Rating, B2-PD

US$265 million senior unsecured notes due December 2020, Caa1

Issuer: Mirror BidCo Corp

Ratings/Outlook changed:

  Rating Outlook, to Stable from Negative

The following ratings were upgraded:

  US$75 million senior secured revolving credit facility due
  December 2017, upgraded to Ba3 (LGD3) from B1 (LGD3)

  US$582 million senior secured term loan due December 2019,
  upgraded to Ba3 (LGD3) from B1 (LGD3)

Ratings Rationale

The rating outlook has been revised to stable from negative to
reflect a marked improvement in Dematic's operating performance
over the last 12 months which has resulted in an across-the-board
strengthening of the company's credit metrics and a reduction in
financial leverage. The stable outlook also reflects Dematic's
improved cash flow and liquidity profile and expectations of
modest single-digit revenue and earnings growth during FY 2015.

Dematic's B2 corporate family rating recognizes the company's
leading position within the automated material handling equipment
market, long-standing relationships with blue chip customers, and
the company's good diversity by end market and geographic region.
For the fiscal year ended September 2014, solid earnings growth
and improved execution resulted in meaningful improvements in key
credit metrics with Debt-to-EBITDA declining to less than 5.5x
and EBITDA-to-Interest improving to about 3.5x. The ratings are
also supported by on-going trends such as continued growth in
direct distribution and e-commerce, greater use of automation in
warehouses and distribution centers, and the increased complexity
of supply chains, all of which, should allow for continued
revenue and earnings growth. Rating constraints include the
somewhat elevated customer concentration, exposure to cyclicality
of customers' investment budgets and the execution risk
associated with major projects.

Dematic has a good liquidity profile supported by relatively
robust free cash flow generating capabilities and availability of
about US$70 million (after giving effect to outstanding
guarantees) under its US$75 million revolving credit facility due
2017. The company is expected to generate about US$55 million in
free cash flow in FY 2014 which equates to mid-single digits free
cash flow as a % of debt. Liquidity is further supported by cash
balances of about US$210 million (as of September 2014) and
minimal amortization of US$6 million on the company's term loan.
The revolving credit facility contains a springing senior secured
leverage covenant which comes into effect if usage under the
facility exceeds 20%.

The rating outlook is stable and anticipates a relatively stable
demand environment coupled with gradual improvements in top-line
and earnings growth and continued generation of free cash flow.

The ratings and/or outlook could be lowered if weaker earnings or
free cash flow were to result in a deterioration in key credit
metrics such that debt-to-EBITDA were to approach 6.5x. A more
aggressive financial, a large debt-financed acquisition or a
weakening of Dematic's liquidity profile could also result in
downward rating pressure.

Factors that could contribute to a ratings upgrade include
leverage approaching 4.75x times, continued revenue and EBITDA
growth, and free cash flow to debt consistently above 5%.

The US$265 million senior notes were issued by holding company DH
Services Luxembourg S.a.r.l. whereas the senior secured credit
facilities (comprised of a US$75 million revolver and US$585
million term) were issued by Mirror BidCo Corp., a holding and
subsidiary of DH Services Luxembourg S.a.r.l. The Caa1 (LGD5)
rating assigned to the US$265 million senior unsecured notes due
2020 is two notches below the B2 Corporate Family Rating,
reflecting that the notes are unsecured obligations of the
company and rank junior to the company's senior secured credit

The principal methodology used in these ratings was Global
Manufacturing Companies published in July 2014. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.

Headquartered in Luxembourg, DH Services Luxembourg S.a.r.l
("Dematic") is a leading provider of logistics and materials
handling solutions with a strong focus on food, general
merchandise and apparel retail. For the fiscal year ended
September 30, 2014, the company is expected to generate revenues
of about US$1.5 billion. Dematic is owned by funds managed by
private equity firms AEA Investors LP and Teachers' Private
Capital (the private equity arm of Ontario Teachers' Pension


EIGER ACQUISITION: Moody's Assigns (P)B2 Corporate Family Rating
Moody's Investors Service, has assigned a provisional corporate
family rating (CFR) of (P)B2 to Eiger Acquisition B.V. ("Exact"),
a (P)B1 to the USD335 million senior secured first lien term loan
and EUR30 million senior secured revolving credit facility and a
(P)Caa1 to the USD125 million second lien facilities, borrowed by
Eiger Acquisition B.V. The outlook on all ratings is stable.

The proceeds of the funds will be used to finance the acquisition
of Exact Holding N.V. by Eiger Acquisition B.V., a holding
company owned by the private equity house Apax Partners. The
agreement for the acquisition was announced on October 9, 2014,
and the tender offer expected to close on February 25, 2015.

Moody's issues these provisional ratings in advance of the final
sale of securities and the completion of the planned acquisition.
These ratings reflect Moody's preliminary credit opinion
regarding the transaction only. Upon conclusive review of the
final documentation, Moody's will endeavor to assign definitive
ratings. A definitive rating may differ from the provisional

Ratings Rationale

The (P)B2 CFR is constrained by: (1) the high opening leverage of
6.2x (based on last twelve months to September 2014 and pro-forma
for the acquisition); (2) the geographic revenue concentration in
the Netherlands; (3) the niche product offering focused solely on
the SMB ("Small and Medium Businesses") market; and the (4)
exposure to smaller customers which leaves the company more
vulnerable to business cycles.

At same time, the CFR is supported by: (1) Exact's strong and
established presence in its core markets in the Netherland; (2)
the good revenue visibility provided by its high recurring
revenues; (3) its high profit margins and cash flow generation;
(4) the company's good position to capture the industry's gradual
transition to hosted software from on-premises solutions.

Exact is an enterprise resource planning (ERP) software provider
with a focus on the SMB market in Benelux. Since its inception in
1984, the company has established a good position in its core
market of the Netherlands (51% of 2013 revenues), having a 14.8%
estimated market share in the Dutch ERP segment for medium sized
businesses and being the leader in the fragmented Dutch cloud
accounting software market with 30% share, more than double the
next competitor. Outside of the Netherlands, Exact has expanded
its operations into over 120 other countries, the most notable of
these is North America (22% of 2013 revenues) which it entered
through several acquisitions done in the 2000s. However its
operations outside of the Netherlands do not benefit from the
same leading market share, and brand recognition, as its domestic

Exact's product offerings are aimed at a relatively niche market,
offering ERP, Customer Relationship Management and Accountancy
solutions to the lower end of the SMB market. The company sells
on-premises and hosted ERP through its 'Business Solutions'
division and 'Specialized Solutions' division (for its North
American clients) and true software as a service (SaaS) in the
Netherlands and Belgium through its 'Cloud Solutions' division.
While a strong player in its niche, overall Moody's sees the
product offering as relatively small compared to other single B
rated peers across the software industry universe. This, combined
with the high geographical focus in the Netherlands, adds to
Exact's business risk profile compared to peers.

As is typical of the software industry, the company benefits from
revenue visibility and stability due to the recurring nature of
its maintenance and subscription revenue streams. As of September
2014, these accounted for 72% of total revenues. The increasing
preference of customers towards an annual subscription based
payment method rather than the traditional license model products
(characterized by a large upfront payment for the license
followed by a relatively small recurring revenue stream for
maintenance) will gradually increase the proportion of recurring
revenues. However in the short-term it will negatively impact the
top line of Exact's more established divisions -- Business
Solutions and Specialized Solutions, which account for around 85%
of revenues, as the number of upfront payments reduces.

Revenue visibility is also enhanced by the low churn rates
inherent to the industry, with Exact's current attrition levels
being around 8%. However, while Exact's large exposure to small
customers helps to reduce customer concentration, it leaves the
company more vulnerable to business cycles when comparing it to
peers. In 2013, approximately 30% of invoiced maintenance
revenues were generated by companies with less than 10 employees
in its Business Solutions division.

Exact's early adoption of Cloud Solutions with its "Exact Online"
product, launched in 2005, has placed the company in a good
position to capture the general industry trend of SaaS adoption
by small companies. Moody's expects Exact will benefit from Cloud
Solutions' expansion in Benelux, supported by Exact's established
strong brand awareness and the first mover advantage in the
region. In this regard, Exact's new management, appointed in
2012, have articulated a refocused strategy, through which they
are targeting Exact's cloud solutions product at smaller
companies with up to 100 employees and have up scaled the target
market to medium sized companies between 50 and 500 employees for
its on-premises and hosted solutions. As such, Moody's expects
any decline in its Business Solutions and Specialized Solutions
divisions to be more than offset by the high growth of its Cloud
Solutions division.

The financial profile is constrained by the high Moody's adjusted
debt to EBITDA at around 6.2x as of the last twelve months to
September 2014 (pro forma for the acquisition) with no
expectation for substantial deleveraging. However, it is
supported by the good profitability with EBITDA margin above 30%
and good free cash generation, given the low working capital
needs, and low maintenance capex and capitalized R&D costs --
which are expected be around 4 to 5% of revenues.

Moody's considers Exact to have a good liquidity profile. At
closing, Exact is expected to have EUR10 million of cash on the
balance sheet and a fully undrawn EUR30 million revolving credit
facility (RCF) maturing in 5 years. Going forward, Moody's
expects positive free cash flow generation driven by the minimum
working capital needs, low maintenance capex and capitalized R&D.
Liquidity is further supported by the low yearly debt repayments:
first lien amortizes by 1% per annum and mandatory prepayments of
excess cash flow are subject to first lien net leverage ratio
step downs, with the remaining amount being a 7 year bullet
repayment, and second lien is a 8 years bullet repayment. Exact
will have only one financial covenant, the first lien net
leverage ratio, expected to be set-up with a 30% headroom, which
will be tested if the RCF is drawn by more than 30%.

Structural Considerations

The (P)B1 ratings on the USD335 million first lien term loan and
pari passu EUR30 million revolving credit facility, one notch
above the (P)B2 CFR, reflects the fact that this debt ranks ahead
of the USD125 million second lien term loan, which is
consequently rated two notches below the CFR at (P)Caa1.

The 'Exact Cloud International B.V.' subsidiary, containing the
international expansion of Exact's Cloud Solutions (Cloud
Solutions International or "CSI"), will be an unrestricted
subsidiary of the group and will be financed with EUR20 million
of cash up front. Moody's expects future cash leakage from the
restricted group directed to CSI due to an additional EUR20
million basket contemplated in the finance documents; however,
given the initial cash injection, this additional funding is not
expected to be utilized until 2016. The credit agreement
restricts any additional payments above these amounts, subject to
a leverage test. Launched in 2013, CSI is in early development
stages with revenues and costs for the last twelve months to
September 2013 amounting EUR0.2 million and EUR11.4 million


The stable outlook reflects Moody's expectation that the company
will deleverage towards 5.5x in the next 18 months, supported by
a conservative financial policy with no debt-funded acquisitions.
The stable outlook also assumes a good liquidity position and
positive free cash flow.

What Could Change The Ratings UP

Given the company's relatively weak position within the B2 rating
category, an upgrade is unlikely in the short term. However,
positive pressure on the ratings could develop if Exact
demonstrates strong operating performance and improve
geographical diversification, leading to a financial leverage of
around 4.5x and Free Cash Flow/Debt sustainably above 10%.

What Could Change The Ratings DOWN

Conversely, negative pressure on the ratings could occur if a
deleveraging from the current high level doesn't occur and
Moody's believes leverage will remain above 6x by the end of
2015, if its liquidity profile deteriorates and/or if free cash
flow turns negative.

Principal Methodologies

The principal methodology used in this rating was Global Software
Industry published in October 2012. Other methodologies used
include Loss Given Default for Speculative-Grade Non-Financial
Companies in the U.S., Canada and EMEA published in June 2009.

Corporate Profile

Headquartered in Delf, Exact is an enterprise resource planning
(ERP) software provider for small and medium businesses. Exact
has 200,000 clients in over 125 countries, however its primary
focus is the Netherlands and North America (accounting for over
70% of revenues). The company operates under three segments:
"Business Solutions" (60% of 2013 revenues) provides on-premises
and hosted ERP solutions in Benelux and 120 other countries;
"Specialized Solutions" (25% of 2013 revenues) operating in the
US under three distinct business units -- Jobbos, Macola, Max;
and "Cloud Solutions" (15% of revenues) providing accountancy as
well as industry specific ERP solutions in Benelux. Exact's
customer base is concentrated on three verticals: manufacturing,
wholesale & distribution and professional services.

For the last twelve months ending September 2014, Exact generated
pro-forma revenues and EBITDA of EUR185 million and EUR60 million


FORNETTI ROMANIA: Hopes to Exit Insolvency This Year
----------------------------------------------------, citing Mediafax, reports that Fornetti
Romania ended 2014 with a EUR500,000 profit and a EUR22.2 million
turnover, hoping to exit insolvency this year.

According to, 2014 was the first year with
profit since the company became insolvent at the end of 2011 and
entered a reorganization plan that ends on May 31, 2015.

Fornetti Romania posted a EUR15.7 million turnover and EUR1.2
million losses in 2013, discloses citing
information from the Ministry of Public Finance.

S L O V A K   R E P U B L I C

* SLOVAK REPUBLIC: Business Bankruptcies Rise to 407 in 2014
According to The Slovak Spectator, a new analysis published by
CRIF-Slovak Credit Bureau suggests that the number of declared
business bankruptcies in Slovakia rose by 13 compared to last
year, to reach a new record of 407 in 2014.

The data show that among the bankrupt entities the majority were
companies (336), while 71 bankruptcies were declared concerning
the property of private individuals (the self-employed), The
Slovak Spectator discloses.  The TASR newswire reported that
initially, restructuring was allowed in 30 cases, but this was
not successful and bankruptcy followed, The Slovak Spectator

The most high-risk branches were, as in previous years, in trade,
industry and construction, The Slovak Spectator notes.

Meanwhile, the number of businesses that ended up in
restructuring also rose in 2014, The Slovak Spectator says.
While in 2013 the number of allowed restructuring cases stood at
113, last year it reached 115, The Slovak Spectator relays.

U N I T E D   K I N G D O M

AV CARGO: Enters Into Company Voluntary Arrangement
Alex Lennane at Loadstar reports that AV Cargo Airlines, the
resurrected Avient, has entered a Company Voluntary Arrangement
(CVA), a device used by insolvent companies to pay creditors over
a fixed period.

In a meeting in November, creditors, who are owed 96% of the
company's GBP4 million debt, agreed to the CVA, with just two,
Kent Airport Ltd (Manston) and the former financial controller of
AV Cargo Airlines, who left the company in May, voting against,
Loadstar relates.

A CVA allows a company to continue trading if creditors owed 75%
of the debt agree to a repayment schedule. If the company then
fails to pay, any of the creditors can apply to wind up the
business, Loadstar notes.

Loadstar says key AV Cargo creditors include Liege Airport and
business park, owed just under GBP345,000, Swissport
(GBP340,000),  Avient Ltd (GBP1.8 million) and International
Aviation Group (GBP1.3 million), a now-dissolved company which
was owned by Neil Glover, a 50% shareholder in AV Cargo Airlines

Mr. Glover, who according to documents filed at Companies House,
is owed GBP1.1 million, agreed to rank after non-preferential
creditors, the report relates. It was also decided that the air
navigation agency of Africa and Madagascar, ASECNA, listed as
being owed GBP454,000, was not in fact not a creditor of the
company, according to Loadstar.

Loadstar states that there have been signals for some time that
Avient's latest incarnation, which was incorporated just one year
ago, was likely to be wound down. The two shareholders, Mr.
Glover and CEO Simon Clarke, in June set up yet another company,
Global Associated Aviation.

AV Cargo Airlines Ltd was the successor to AV Cargo Ltd, which
was dissolved in December 2013. The latter had the same three
shareholders (Andrew and Samantha Smith and Lewis Kling) as
Avient Ltd, which continues to be in liquidation.

The new carrier, Global Africa Aviation, is expected to continue
to ply intra-African routes on behalf of one customer, the report

BEACON HILL: In Administration, Defaults in Interest Payments
StockMarkeWire reports that Beacon Hill Resources and its wholly
owned subsidiary, BHR Mining Limited, have gone into

Graham Bushby -- and Phillip
Sykes -- of Baker Tilly
Restructuring and Recovery LLP, have been appointed as joint
administrators, according to StockMarkeWire.

The report notes that the company said that further to its
announcement of December 17, the board has been unable to secure
any viable alternative funding and it is now in default in
respect of interest payments due to certain holders of the
group's outstanding convertible loan notes.

Beacon Hill is a coking coal developer. It focused on the Minas
Moatize Coking Coal Mine in Tete, Mozambique.

COMPLETE BUILDING: High Court Winds Up Firm
Four companies involved in the mis-selling of undeveloped land
for investment to the public, raising GBP3.3 million in the
process, have been ordered into liquidation in the High Court on
grounds of public interest following an Insolvency Service

Complete Building Systems Limited, Rawtenstall CBS Limited,
Evesham CBS Limited, and Hounslow West London Limited were all
wound-up on December 18, after the High Court found them, to have
continued a thoroughly disreputable land banking scheme and to
have misled the public into buying overpriced plots of land for

The companies were formerly based at offices at The Coach House
and at Commercial House in Bromley, Kent.

Investors who had bought plots of land from an earlier company
called The Property Partnership were told that Complete Building
Systems Limited would buy from or sell on behalf of investors
plots which they had bought from The Property Partnership.

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

"Investors were bullied and lied to by these rogue companies and
their representatives to persuade them to invest in plots of land
of negligible value.

"Some investors were falsely told that unless they bought more
plots their existing plots would not be developed and would
become recreational plots such as flower beds or children's play
area and that they would then be charged maintenance by the local

"In some cases, particularly vulnerable investors, some suffering
some form of physical or mental disorder, were cynically targeted
and ripped off.

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

Complete Building Systems Limited sold plots of land at
Rawtenstall and Evesham. Its marketing of those sites co-incided
with the commencement of the Secretary of State's statutory
investigation into RTW (Burnhill) Ltd and Burnhill Land
Investments Limited which were both ordered into liquidation on
grounds of public interest on Aug. 7, 2013.

In addition to the Rawtenstall site (initially bought by a third
party for GBP40,000 and divided into 165 plots) and the Evesham
site (initially bought by a third party for GBP45,000 and divided
into 100 plots), plots were sold at several other sites, namely:

  * Goffs Oak, Hammond Street, Waltham Cross, Hertfordshire
  * Cross Keys, Norwich
  * Snakey Lane, Feltham
  * Boal Quay, Kings Lynn.

Plots were sold to investors for between GBP4,500 and GBP15,000

At least GBP3.3 million was raised from the public of which some
GBP1.4 million was paid out in commission to sales staff
including a Mr. Michael Doohan and a Mr. Steven Sulley.
Additionally payments were made to Mr. Christopher Shipton, the
registered director of the four companies, totalling some

According to Mr. Shipton land could be "sold for whatever price
you wanted".

CYAN BLUE: Moody's Assigns 'B2' Corporate Family Rating
Moody's Investors Service has assigned a B2 corporate family
rating (CFR) to Cyan Blue Holdco 2 Limited (Sky Bet, or the
company) as well as a probability of default rating (PDR) of B2-
PD. Concurrently, Moody's has assigned a B2 rating to the GBP340
million term loan B due 2022, to be issued by Cyan Blue Holdco 3
Limited, a subsidiary of Sky Bet, and a B2 rating to the GBP50
million revolving credit facility, to be issued by Cyan Blue
Holdco 3 Limited and Cyan Bidco Limited, an indirect subsidiary
of Sky Bet. The outlook on the ratings is stable.

Proceeds from the debt issuance will be used to partially finance
the acquisition of a controlling stake in Sky Bet by funds
managed by CVC Capital Partners (CVC), and to pay transaction
costs. CVC will acquire a circa 78% equity stake in Sky Bet from
Sky Plc (Sky, Baa2, stable), with Sky retaining an interest in
the company through a circa 21% equity interest, a vendor loan of
GBP70 million and an earn-out of up to GBP50 million.

Ratings Rationale

"Sky Bet is a leading player in on-line gaming in the UK", says
Martin Hallmark, senior vice-president and Moody's lead analyst
for Sky Bet. "This is supported by the Sky brand and commercial
relationship with Sky, the quality of the company's in-house
technology and its strong mobile bet offering, which has enabled
the company to gain share in a very competitive marketplace."

The rating reflects the highly competitive nature of the on-line
gaming industry, with limited differentiation in offer between
players, no clear market leader, high customer churn and a
reliance on marketing and free bet offers to win new customers.
In addition there is a significant risk of increasing regulator
pressure in particular through increased taxation on gaming
activities. The rating also takes into consideration the
relatively high initial leverage at 5.2x gross debt to EBITDA
(based on Moody's-adjusted pro forma standalone EBITDA for the 12
months to October 2014), and the ability within the shareholder-
friendly senior facilities documentation to increase total net
leverage to 6x through the use of incremental facilities.

However, the rating also reflects the significant benefits from
the company's association with Sky which will continue following
the transaction. Sky Bet's relationship with Sky confers
significant advantages in terms of the strong brand, editorial
links and a direct channel for sourcing new customers at low
cost, with approximately 60% of customers being subscribers to
Sky. The Sky brand is highly trusted, an important factor for
gaming customers, and synonymous with live sport. The company has
a technology focus and a strong mobile betting offering, which is
delivering growth significantly in excess of the market.

Over the period from the year ended 30 June (FY) 2012 to FY2014,
Sky Bet grew net revenues by 31% CAGR and EBITDA by 29% CAGR. The
company has gained market share supported by the early launch of
its mobile betting app, its overweight position in football
betting and leveraging the Sky relationship, driving growth in
both customer numbers and spend per customer. As the market
matures growth rates are likely to moderate but remain strong in
the medium term. Gross leverage based on Moody's adjusted pro
forma standalone EBITDA for the 12 months to October 2014 is
5.2x. The company is expected to degear rapidly as a result of
continued EBITDA growth, subject to any releveraging and dividend
distributions permitted under the documentation.

The company's liquidity position is good with the GBP50 million
revolving credit facility undrawn at closing, low capital
expenditure requirements and negative working capital. The
company is expected to meet its cash flow requirements from
internal cash generation with no utilization of the revolving
credit facility. Free cash flow to debt is expected to exceed 15%
per annum resulting in a significant build up of cash balances,
which may be used for dividend distributions subject to
restricted payment tests within the documentation.

Structural Considerations

Sky Bet's PDR is aligned with the CFR, reflecting our assumption
of a 50% family recovery rate, as is customary for capital
structures including first lien bank loans with covenant-lite


The stable outlook reflects our view that Sky Bet should continue
with its positive trend in terms of revenue and EBITDA growth and
deleveraging. The stable outlook also assumes that the group
maintains its existing relationship with Sky and that it will not
engage in material debt-funded acquisitions or shareholder

What Could Change The Rating -- UP

Positive pressure on the ratings could arise over time if (1)
leverage falls towards 4x on a sustainable basis, (2) free cash
flow to debt trends towards 20%, and (3) the company maintains
adequate liquidity.

What Could Change The Rating -- DOWN

Negative ratings pressure could develop if (1) the company fails
to reduce leverage below 5x on a sustainable basis; (2) free cash
flow to debt falls towards 10%; (3) if liquidity concerns arise;
or (4) aggressive financial policies lead to a releveraging.

Principal Methodologies

The principal methodology used in these ratings was Global Gaming
published in June 2014. Other methodologies used include Loss
Given Default for Speculative-Grade Non-Financial Companies in
the U.S., Canada and EMEA published in June 2009.

Sky Bet, based in Leeds, U.K., is a leading operator of on-line
betting and gaming. For the year ended June 2014 it generated pro
forma standalone net revenues of GBP183 million and EBITDA of
GBP64.8 million. The company is owned by funds managed by CVC
Capital Partners and Sky plc.

Deutsche Bank AG
London and N.V.
Noord-Brabant       EUR156.311 mil      B-srp (sf)   CCC+srp

SKY BETTING: S&P Assigns Preliminary 'B' CCR; Outlook Stable
Standard & Poor's Ratings Services assigned its preliminary 'B'
long-term corporate credit rating to U.K.-based gaming and
betting group Sky Betting & Gaming (Sky Bet).  The outlook is

At the same time, S&P assigned its preliminary 'B' issue rating
to Sky Bet's proposed oe340 million senior secured loan due 2022.
The preliminary recovery rating on this loan is '3', indicating
S&P's expectation of average (50%-70%) recovery in the event of a
payment default.

The preliminary ratings on Sky Bet reflect S&P's assessment of
the company's "weak" business risk, and its "highly leveraged"
financial risk profiles, underpinned by S&P's Financial Sponsor-6
assessment of Sky Bet's financial policy.

The rating is primarily constrained by S&P's assessment of Sky
Bet's financial risk profile as highly leveraged, which in turn
is underpinned by S&P's view of the financial policy of its
controlling shareholder, CVC, as aggressive.  S&P also takes into
account Sky Bet's ability to increase its leverage beyond the
relatively modest level at the closing of the transaction, as
permitted in the bank documentation.

At the transaction's close, Sky Bet's debt will mainly comprise
the GBP340 million senior secured loan.  S&P believes Sky Bet's
low capital intensity and working capital benefitting from
customer prepayments support the company's ability to generate
robust operating cash flow.  On a Standard & Poor's adjusted
basis, for 2015 S&P estimates that its funds from operations
(FFO)-to-debt ratio will be 10%-12% and debt to EBITDA will range
between 5.0x-5.25x.  All leverage ratios exclude a shareholder
loan and a vendor loan together totaling just below GBP500
million, which S&P treats as equity, according to its criteria.

Sky Bet is an online betting and gaming company operating almost
entirely in the U.K.  In S&P's opinion, Sky Bet's business risk
profile is primarily constrained by the concentration risk of its
operations, which focus on just the online and mobile segment of
the overall gaming and betting market.  This is underpinned by
the absence of material overseas operations; the company's modest
share in the U.K.'s overall gaming market; and the threat to
historically solid profitability from execution risk related to
Sky Bet's carve out from Sky PLC (Sky).  S&P also takes into
account regulatory risk such as that related to the new point-of-
consumption tax, introduced in December 2014.

S&P estimates that Sky Bet has an overall share of between 2% and
3% of the total gaming market, comprising online and offline
segments.  S&P believes that both online and offline represent
one single market space where existing high street gaming
companies are able to effectively push their offline market power
into online space.

S&P believes the barriers to entry in the online segment are
weaker than those in the traditional model, which requires
significant investment in rolling out a retail network.  In
addition, unlike in the traditional gaming segment, the number of
licenses for online operations is unlimited.

At the same time, S&P sees Sky Bet's relationship with Sky as a
main supporting factor for the former's business risk profile.
This encompasses mainly the licensed usage of the well-
established brand name and partnership with Sky Sports, which
allows the company to attract new customers and create additional
media exposure.  This, in S&P's opinion, underpins Sky Bet's
leading market share in the mobile gaming segment and its robust
customer retention rates.

Relatively flexible cost structure reflecting the online nature
of Sky Bet's business, is another supporting factor for the
business risk profile.  As a result, Sky Bet has historically
posted a solid EBITDA margin of about 30%, one of the highest
among its rated peers.

The combination of a "weak" business risk profile and a "highly
leveraged" financial risk profile results in an anchor of 'b'.
S&P has chosen the higher of the two possible anchor outcomes
(the other being 'b-')reflecting Sky Bet's leverage, which S&P
considers to be at the strong end of the category, as well its
sturdy interest coverage metrics.

S&P's base case assumes:

   -- The U.K. economy will grow at 3.1% in 2014, 2.7% in 2015,
      and 2.6% in 2017.

   -- Sky Bet's revenues will grow by about 25% in 2015, and by a
      high-single-digit percentage in 2016 and thereafter,
      supported by online gaming market growth and the company's
      marketing efforts.

   -- A decline in the EBITDA margin by about 200-300 basis
      points from the 31.7% level posted in the financial year to
      June 30, 2014.  This is mainly to reflect S&P's view of the
      risk of cost-base realignment once the company starts
      operating on a stand-alone basis and any effect of the
      point-of-consumption tax.

   -- Working capital will remain flat in the next few years.

   -- Annual capital expenditure (capex) of about GBP3 million in

   -- No ongoing dividend payments in 2015-2016.

   -- Surplus cash not available for netting off debt as per
      S&P's criteria for financial sponsor-owned companies.

   -- Deleveraging underpinned by growth in EBITDA and mandatory
      excess cash flow sweep, in line with the bank

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

   -- An EBITDA margin of about 28.5%-29.5%.

   -- Standard & Poor's adjusted debt to EBITDA of 5.0x-5.25x in
      financial 2015, declining to about 4.0x?4.5x by the end of

   -- Standard & Poor's adjusted FFO to debt of 12%-15%.

The stable outlook reflects S&P's expectation that Sky Bet will
continue to grow its business in the U.K. and will be able to
maintain its profitability and positive free operating cash flow
generation at the levels outlined in S&P's base-case scenario.
The outlook also reflects S&P's anticipation that any surplus
cash accumulated in the business would be used for either growth
investment or shareholder remuneration, reflected in S&P's
assessment of the financial policy as aggressive.  S&P sees a
debt-to-EBITDA ratio of about 5x?6x as commensurate with the
current rating.  Sky Bet's operational links with Sky and its
ability to use the brand name are necessary conditions for S&P to
maintain the current rating.

S&P could take a negative rating action if Sky Bet's earnings are
significantly weaker than S&P assumes in its base case.  This
could occur in the case of unforeseen costs resulting from the
company's separation from Sky, unfavorable changes in regulation,
or intensified competition.  S&P could also lower the rating if
the company raised additional debt such that its leverage
materially exceeded S&P's expectation of the 5x-6x range
accommodated for in the bank documentation, or if Sky Bet's
EBITDA margin falls and stays significantly below 28%.

S&P could upgrade Sky Bet if it posts debt to EBITDA of
sustainably less than 5x and commits to maintaining leverage at
that level.  Similarly, S&P could upgrade Sky Bet if it posted
material growth in earnings, including an EBITDA margin higher
than 30%, while generating positive free operating cash flow.
Any upgrade would depend on S&P's view of the company's ability
to sustain such growth over a prolonged period, while maintaining
debt to EBITDA not materially higher than its current level.

TECHELEC: Falls Into Administration
Catherine Deshayes at reports that it has been
confirmed that Techelec, a Brighton, East Sussex-based electrical
firm, has collapsed into administration.

The firm received a winding up order through the High Court just
before Christmas, and it has now entered administration,
according to

The report notes that the company was first formed in 1968 and
employed 40 people, all of whom have now lost their jobs. The
administration of Techelec -- which had assets of GBP7.1 million
-- will be handled by BM Advisory. According to the last set of
accounts issued, the firm had more than doubled its turnover to
GBP16 million in the year to March 2014, the report relays. says that reports have confirmed that charge
holders and the administrators will now aim to recover and
realize the company's assets, which principally are made up of
property and debtors.

Prior to its administration, the firm was understood to have been
working on a 16-storey student halls scheme in Bournemouth, which
was being run by Watkins Jones Group, the report notes.  It was
also working on Brookfield Multiplex's University of Kent halls
of residence scheme in Canterbury and Balfour Beatty's Royal
College of Music student halls, the report discloses.

Techelec, located in Crowhurst Road, Holingbury, specialized in
mechanical and electrical contracting and operated predominantly
in London and Southern England.

* S&P Took Actions on European CDO Tranches for December 2014
After running its month-end SROC (synthetic rated
overcollateralization) figures, Standard & Poor's Ratings
Services, on Jan. 12, 2015, took various credit rating actions on
15 European synthetic collateralized debt obligation (CDO)

Specifically, S&P has:

   -- Raised and removed from CreditWatch positive its ratings on
      nine tranches;

   -- Placed on CreditWatch positive our rating on one tranche;

   -- Affirmed its ratings on five tranches.

The rating actions are part of S&P's regular monthly review of
European synthetic CDOs.  The actions incorporate, among other
things, the effect of recent rating migration within reference
portfolios and recent credit events on corporate entities.


The SROC (synthetic rated overcollateralization; see "What Is
SROC?" below) has fallen below 100% during the November 2014
month-end run.  This indicates to S&P that the current credit
enhancement may not be sufficient to maintain the current tranche


The SROC has risen above 100% during the November 2014 month-end
run.  This indicates to S&P that the current credit enhancement
is sufficient to maintain the current tranche rating.


The tranche's current SROC exceeds 100%, which indicates to S&P
that the tranche's credit enhancement is greater than that
required to maintain the current rating.  Additionally, S&P's
analysis indicates that the current SROC would be greater than
100% at a higher rating level than currently assigned.


S&P has run SROC for the current portfolio and have projected
SROC 90 days into the future, while assuming no asset rating

S&P has lowered its ratings to the level at which SROC is above
or equal to 100%.  However, if the SROC is below 100% at a
certain rating level but greater than 100% in the projected 90-
day run, S&P may leave the rating on CreditWatch negative at the
revised rating level.


S&P has raised its ratings to the level at which SROC exceeds
100% and meets its minimum cushion requirement.


S&P has affirmed its ratings on those tranches for which credit
enhancement is, in S&P's opinion, still at a level commensurate
with their current ratings.


S&P has lowered its ratings to 'CC' where losses in a portfolio
have already exceeded the available credit enhancement or where,
in S&P's opinion, it is highly likely that this will occur once
it knows final valuations.  S&P has done so as it considers that
it is highly likely that the noteholders will not receive their
full principal.


S&P has lowered its ratings to 'D' where it has received
confirmation that losses from credit events in the underlying
portfolio have exceeded the available credit enhancement and
partially reduced the notes principal amount.  This means the
noteholders did not receive interest based on the full notional
of the notes.


For all of S&P's European synthetic CDO transactions, it applies
its corporate CDO criteria.  Therefore, S&P has run its analysis
on CDO Evaluator model 6.3, which includes the top obligor and
industry test SROCs.

In addition to the obligor and industry tests, and the Monte
Carlo default simulation results, S&P may consider certain
factors such as credit stability and rating sensitivity to
modeling parameters when assigning ratings to CDO tranches.  S&P
assess these factors case-by-case and may adjust the ratings to a
rating level that is different to that indicated by the
quantitative results alone.


One of the main steps in S&P's rating analysis is the review of
the credit quality of the portfolio referenced assets.  SROC is
one of the tools S&P uses when surveilling its ratings on
synthetic CDO tranches with reference portfolios.

SROC is a measure of the degree by which the credit enhancement
(or attachment point) of a tranche exceeds the stressed loss rate
assumed for a given rating scenario.  SROC helps capture what S&P
considers to be the major influences on portfolio performance:
Credit events, asset rating migration, asset amortization, and
time to maturity.  It is a comparable measure across different
tranches of the same rating.

Ratings List

Issuer                                        Rating    Rating
                                              To        From

C.L.E.A.R. PLC   EUR25 mil limited recourse   BBB- (sf) BB+/
                 secured variable-rate                  Watch Pos
                 credit-linked notes series
                 (Acqua 2006-1)

Credit Default
Swap             EUR111.8 mil unfunded credit  BBB-srp  BB+srp/
                 default swap between          (sf)     Watch Pos
                 (Deutsche Bank AG (NY Branch)
                 and Coriolanus Ltd.)

Deutsche Bank
AG London and
N.V. Slibverwerking
Noord-Brabant       EUR84.27 mil credit         B-srp    B-srp
                    default swap (including
                    a tap issuance of
                    EUR21,700 million)

Deutsche Bank AG
London and N.V.
Noord-Brabant       EUR156.311 mil             B-srp   CCC+srp
                    credit default swap                (sf)/
                    (including a tap                  Watch Pos
                    EUR18.996 million)

Deutsche Bank AG
London and N.V.
Noord-Brabant       EUR29.39 mil
                    credit default swap       BB-srp   B+srp
                                              (sf)     (sf)
                                                      Watch Pos

Helix Capital
(Jersey) Ltd.       EUR5 mil                   B-(sf)  CCC
                    PowerTranche partial              (sf)/Watch
                    kicker fixed-rate                  Pos
                    managed synthetic
                    CDO notes series 2006-7

Brooklands Euro
Referenced Linked
Notes 2004-1 Ltd.   EUR182.5 mil, JPY677.5 mil  B+(sf)  CCC(sf)/
                    fixed- and floating-rate           Watch Pos

Brooklands Euro
Referenced Linked
Notes 2004-1 Ltd.   EUR182.5 mil, JPY677.5 mil  D(sf)       D(sf)
                    fixed- and floating-rate

Dorset Street
Finance Ltd.        EUR309.75 mil           CCC- (sf)   CCC- (sf)
                    credit-linked notes

Dorset Street
Finance Ltd.        EUR309.75 mil
                    credit-linked notes     D (sf)         D (sf)

Dorset Street
Finance Ltd.        EUR309.75 mil
                    credit-linked notes     D (sf)         D (sf)

Dorset Street
Finance Ltd.         EUR309.75 mil
                     credit-linked notes    D (sf)      D (sf)
Proventus European
ABS CDO PLC          EUR115 mil
                     secured floating-rate
                     credit-linked notes     BBB+(sf)  BB+(sf)/
                                                       Watch Pos
Proventus European
ABS CDO PLC          EUR115 mil
                     secured floating-rate
                     credit-linked notes     BB+(sf)    B+(sf)/
                                                       Watch Pos

Proventus European
ABS CDO PLC          EUR115 mil
                     secured floating-rate
                     credit-linked notes     B+(sf)    CCC+(sf)/
                                                       Watch Pos


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 2015.  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 * * *