TCREUR_Public/150115.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, January 15, 2015, Vol. 15, No. 10



HERACLES: Put Under Liquidation After Rescue Plan Fails


FREESEAS INC: Issues US$500,000 Convertible Notes to Himmil


LEHMAN BROTHERS: Claims Verification Scheduled for January 20


EIGER ACQUISITIONS: S&P Assigns Prelim. 'B' CCR; Outlook Stable


SUCCES: Files for Insolvency; Court to Decide on Jan. 27


AMSTERDAM TRADE: Moody's Lowers Long Term Deposit Rating to Ba3
SUKHOI CIVIL: Fitch Lowers LT Issuer Default Ratings to 'BB-'


BARCLAYS BANK: S&P Raises Counterparty Rating From 'BB+'


JAMIE'S ITALIAN: Istanbul Unit Seeks Bankruptcy Protection


UKRAINE: EU Commission Proposes Third Bailout Program

U N I T E D   K I N G D O M

ACISION BV: S&P Assigns 'B' CCR & Rates US$160MM Sr. Loan 'B+'
CHAPTER EIGHT: In Administration, Cuts 18 Jobs
CITY LINK: Inquiry on Firm Collapse Could Proceed
DRIVE ASSIST: Debts of GB82 Mil. Force Firm Into Administration
ISIS INVESTMENTS: Jan. 28 IOM Scheme Claims Bar Date Set

VIRGIN MEDIA: Moody's Rates GBP300-Mil. Sr. Secured Notes 'Ba3'



HERACLES: Put Under Liquidation After Rescue Plan Fails
Jim Budd at reports that Heracles, formerly, has been forced into liquidation after a major investor
withdrew support for the troubled company's recovery plan.

According to, the Tribunal de Commerce in Paris put
Heracles into liquidation on Jan. 9, less than two months after
it released the group from administration.

Heracles, which included 1855, ChateauOnline (renamed Ares) and
Cave Privee businesses, owed millions of euros to creditors and
buyers who never received wines purchased en primeur, discloses.

In late November 2014, the Paris court accepted a recovery plan
put forward by Emeric Sauty de Chalon, the founder and president,
and Fabien Hyon, managing director, recounts.

But the deal collapsed when a Luxembourg-based investor called
PLF1 withdrew its support at the beginning of December, relays.

In July 2014, PLF1, as cited by, said it would pay
EUR1 million to cover the group's debts and would invest another
EUR1.5 million if the recovery plan was accepted.

The public prosecutor was also appealing against the Tribunal's
decision to accept the business recovery plan,

Around 11,000 creditors have submitted claims totaling more than
EUR40 million against the Heracles group, discloses.

Heracles is a French online wine merchant.


FREESEAS INC: Issues US$500,000 Convertible Notes to Himmil
FreeSeas Inc. has sold to Himmil Investments Ltd., a non-U.S.
investor, a US$500,000 convertible promissory note, which matures
a year from issuance and accrues interest at the rate of 8% per
annum.  The investor is entitled at any time to convert into
common stock any portion of the outstanding and unpaid principal
and accrued interest, provided that such conversion does not
cause it to own more than 4.99% of the common stock of the
Company, into shares of Common Stock.  The conversion price is
the lower of (i) $0.452 and (ii) 60% of the lowest daily VWAP on
any trading day during the 21 consecutive trading days prior to
conversion.  Upon prior notice, the Company may prepay the
Investor in cash, for 127.5% of any outstanding principal and
interest remaining on the note.

Mr. Ion G. Varouxakis, chairman, president and CEO said, "This
investment strengthens the cash liquidity of the Company at a
time when freight rates are depressed and opportunities flourish
for vessel acquisitions at depressed values.  We look forward to
successfully leveraging our existing unencumbered assets in order
to take advantage of emerging opportunities in the sector.  The
announced transaction is part of our strategy of bringing
together the catalysts required for fleet growth, which will lead
to improved earnings and eventually restoring shareholder value."

                        About FreeSeas Inc.

Headquartered in Athens, Greece, FreeSeas Inc., formerly known as
Adventure Holdings S.A., was incorporated in the Marshall Islands
on April 23, 2004, for the purpose of being the ultimate holding
company of ship-owning companies.  The management of FreeSeas'
vessels is performed by Free Bulkers S.A., a Marshall Islands
company that is controlled by Ion G. Varouxakis, the Company's
Chairman, President and CEO, and one of the Company's principal

The Company's fleet consists of six Handysize vessels and one
Handymax vessel that carry a variety of drybulk commodities,
including iron ore, grain and coal, which are referred to as
"major bulks," as well as bauxite, phosphate, fertilizers, steel
products, cement, sugar and rice, or "minor bulks."  As of
Oct. 12, 2012, the aggregate dwt of the Company's operational
fleet is approximately 197,200 dwt and the average age of its
fleet is 15 years.

FreeSeas Inc. reported a net loss of US$48.7 million in 2013, a
net loss of US$30.88 million in 2012 and a net loss of US$88.2
million in 2011.  The Company's balance sheet at March 31, 2014,
showed US$79.8 million in total assets, US$77.4 million in total
liabilities, all current, and US$2.37 million in total
shareholders' equity.

RBSM LLP, in New York, issued a "going concern" qualification on
the consolidated financial statements for the year ended Dec. 31,
2013.  The independent auditors noted that the Company has
incurred recurring operating losses and has a working capital
deficiency.  In addition, the Company has failed to meet
scheduled payment obligations under its loan facilities and has
not complied with certain covenants included in its loan
agreements.  Furthermore, the vast majority of the Company's
assets are considered to be highly illiquid and if the Company
were forced to liquidate, the amount realized by the Company
could be substantially lower that the carrying value of these
assets.  These conditions among others raise substantial doubt
about the Company's ability to continue as a going concern.


LEHMAN BROTHERS: Claims Verification Scheduled for January 20
Me Jacques DELVAUX & Me Laurent FISCH, trustee of Lehman Brothers
(Luxembourg) Equity Finance S.A. (LBEF), in bankruptcy, disclosed
that the procedure of the verification of claims of LBEF with
registered office in L-2163 Luxembourg - 29, Avenue Monterey, in
bankruptcy, RCSL number B101448 (LBEF) and the closure of the
minutes of the verification of the claims of such liquidation
will take place at a hearing on January 20, 2015 at 9:15 a.m. at
the Luxembourg District Court, sitting in commercial matters, at
Plateau du Saint-Esprit, 7, Rue du Saint Esprit, 1st Floor, Room


EIGER ACQUISITIONS: S&P Assigns Prelim. 'B' CCR; Outlook Stable
Standard & Poor's Ratings Services assigned its preliminary 'B'
long-term corporate credit rating to Netherlands-based software
company Eiger Acquisitions B.V. (Exact).  The outlook is stable.

At the same time, S&P assigned its preliminary 'B' issue rating
to Exact's proposed senior secured loans due 2022 and the RCF due
2020, with a preliminary recovery rating of '3' indicating S&P's
expectation of meaningful (50%-70%) recovery in the event of a

S&P also assigned its preliminary 'CCC+' issue rating to the
proposed senior unsecured loans due 2023, with a preliminary
recovery rating of '6' indicating S&P's expectation of negligible
(0-10%) recovery in the event of a default.

The preliminary long-term corporate credit rating reflects S&P's
assessment of Exact's business risk profile as "weak" and its
financial risk profile as "highly leveraged."

In S&P's view, Exact has a narrow product offering and is
relatively small, and the industry shows only limited barriers to
entry.  Exact mainly provides accounting software and enterprise
resource planning (ERP) solutions to small and midsize companies
in The Netherlands, and to a lesser extent in Belgium.  S&P
considers its overall competitive position to be weaker than that
of larger international competitors -- including Microsoft, SAP,
and Oracle -- which however mainly target larger customers, and
it is somewhat smaller than domestic players, including Unit 4.
Other weaknesses include limited geographic diversification,
despite a presence in North America where it generates about 25%
of its revenues.  S&P believes it could technically be rather
simple for a customer to switch to an alternative software
supplier, particularly for accounting solutions, despite the
related costs.

These weaknesses are partly offset by Exact's solid niche market
positions in its main segments.  According to Exact, it enjoys a
market share of about 30% in online accounting software in the
Netherlands, thanks to its relationships with 40% of the
country's accountants.  Exact also has a market share of about
15% in ERP business with midsize companies in The Netherlands.
Other strengths include growth prospects in the Dutch cloud ERP
market, supported by a solid economic environment and a
moderately high average customer retention rate of about 92% on
average in the Business and Specialized Solutions segments, which
represent 85% of revenues.  Moreover, Exact has a high proportion
of recurring revenues, slightly more than 70%, which is likely to
increase as business in the Cloud Solutions segment develops; a
large and diversified customer base; and broadly average
profitability despite some distortion caused by the carve-out of
the Cloud Solutions International (CSI) segment, divestments,
withdrawal of some older products, and restructuring.

S&P's financial risk profile assessment primarily reflects
Exact's high leverage.  At year-end 2015, S&P forecasts a gross
adjusted debt-to-EBITDA ratio of 6.7x (S&P's adjusted EBITDA
measure is after capitalized development costs, in line with
S&P's methodology) and funds from operations to debt of 7.7%.
S&P's calculations are based on its understanding that all the
sponsor's financial contributions will be equity.  These
weaknesses are partly offset by EBITDA cash interest coverage of
about 2.5x -- including S&P's understanding that floating
interest rates will be fully hedged -- and S&P's anticipation of
stable free operating cash flow (FOCF) generation resulting in
FOCF to debt exceeding 5% in 2015.

The stable outlook reflects S&P's anticipation of modestly
increasing revenues at Exact, with a Standard & Poor's-adjusted
EBITDA margin of about 30%, positive FOCF, and adequate

S&P could lower the rating if FOCF were at breakeven (for
instance because investments in CSI materially exceed our
projections, there is weaker-than-expected revenue growth, and
additional restructuring costs) and EBITDA cash interest coverage
were at about 2x, or if Exact's liquidity weakened to "less than

S&P thinks ratings upside is limited over the next 12 months
because it does not expect the adjusted debt-to-EBITDA ratio to
fall below 5x.


SUCCES: Files for Insolvency; Court to Decide on Jan. 27
Romania Insider reports that Succes, owned by the businessman
Nicolae Sarcina, recently filed for insolvency.

According to Romania Insider, Ziarul Financiar reported that the
company which posted a EUR350 million turnover in 2013 will
receive the court decision on its insolvency request on Jan. 27.

Profi and Mega Image, two of the largest supermarket chains in
Romania, are interested in taking over Succes stores, Romania
Insider discloses.  Belgian Mega Image is after the ten Succes
stores in Bucharest, while Profi, owned by the Polish investment
fund Enterprise Investors, wants to buy more Succes stores in
Bucharest and in the rest of the country, Romania Insider notes.

Succes' owner Nicolae Sarcina is under investigation for tax
evasion, Romania Insider says, citing the local media.

Succes is a Romanian retailer.  The company has 1,600 employees.


AMSTERDAM TRADE: Moody's Lowers Long Term Deposit Rating to Ba3
Moody's Investors Service has downgraded Amsterdam Trade Bank
NV's local- and foreign-currency long-term deposit ratings to Ba3
from Ba2, as well as the bank's standalone bank financial
strength rating (BFSR) to D- (equivalent to a baseline credit
assessment (BCA) of ba3) from D (ba2). The long-term ratings and
standalone BFSR were also placed on review for further downgrade.
The Not-Prime local- and foreign-currency short-term deposit
ratings are unaffected by the actions.

Ratings Rationale

The downgrade of Amsterdam Trade Bank's BFSR to D- reflects the
likelihood of asset quality deterioration resulting from the
bank's substantial exposures to Ukraine and Russia against the
backdrop of increased geopolitical and economic tensions. At
year-end 2013, Amsterdam Trade Bank reported total exposures to
Ukraine of EUR444 million, which included bank exposures
totalling EUR206 million mainly in the form of pledged deposits,
and a small exposure to Alfa-Bank Ukraine (unrated, a subsidiary
of the bank's parent). As at the same date, the credit exposure
to Ukraine represented approximately 79% of Tier 1 capital. The
bank's exposure to Russia was EUR259 million at year-end 2013, or
86% of Tier 1 capital. By end-November, Moody's understand that
credit exposures to Ukraine had diminished by 15%, thanks to the
relatively short-term nature of lending and the discontinuation
of lending activity in the country.

Nonetheless, Moody's believes that the balance of risks for
Amsterdam Trade Bank's asset quality has shifted to the downside
because of still high political tensions in Ukraine, compounded
with an economic contraction in Russia. The significant borrower
concentrations in the bank's loan book and the uncertainty
surrounding the quality and availability of collateral in regions
experiencing material stress entails significant negative
pressure on asset quality. In addition, although Moody's
understands that Amsterdam Trade Bank is not affected by
sanctions imposed by the US Treasury on Russian entities and
individuals, the rating agency believes that the threat of EU and
further US sanctions pose additional risks to the region,
including an exacerbation of the current economic slowdown.

The downgrade of Amsterdam Trade Bank's deposit ratings to Ba3 is
driven by the corresponding downgrade of the bank's BFSR. Moody's
assessment of the likelihood of support from Amsterdam Trade
Bank's Russian parent, Alfa-Bank (deposits Ba1 on review for
downgrade, BFSR D/BCA ba2 on review for downgrade) results in a
moderate probability of parental support. However, the support
assumptions do not provide for any rating uplift for the bank's
long-term deposit ratings. Moody's does not assume any systemic
support from the Dutch government (Aaa stable) in Amsterdam Trade
Bank's long-term deposit ratings.

Factors to be Considered in the Continuing Rating Review

Amsterdam Trade Bank's long-term deposit ratings and standalone
BFSR remain on review for downgrade in view of the significant
uncertainties around the unfolding of events in Ukraine in 2015.
The review also reflects the severe and rapid deterioration in
the operating environment in Russia and the heightened risk of a
more prolonged and acute economic downturn than originally
anticipated. The review for downgrade of the bank's ratings will
be carried out alongside the review for downgrade of the long-
term ratings and BFSR of the bank's Russian parent Alfa-Bank
initiated on December 23, 2014.

Considering the adverse changes to the operating environment of
Amsterdam Trade Bank, Moody's review will focus on (1) the
implications of any further volatility in the bank's operating
environment in Ukraine and Russia; (2) the severity of asset
quality deterioration and its consequences on the bank's
financial metrics, as well as the bank's capacity to absorb
negative shocks; and (3) any actions the bank's parent Alfa-Bank
may decide to enhance its subsidiary's ability to absorb further

Moody's will also monitor the current financial difficulties
faced by the Ukrainian government since its default could cause
severe credit losses, notably because one third of the bank's
Ukrainian exposures are linked to energy-related issuers that
have close ties to the government. In addition, currency controls
from Russia or Ukraine involving strict restrictions on local-
currency conversion into US dollar and euro as well as US/EU
sanctions could severely impair the bank's ability to receive
payments on its loans originated in the region.

What Could Change The Rating Up/Down

A lowering of Amsterdam Trade Bank's BCA could be triggered by
(1) any scenarios that lead to a lowering of parent Alfa-Bank's
BCA below ba3; and (2) a weakening of the bank's financial
fundamentals due to asset quality deterioration, which may
materialize as a consequence of further deterioration the
Ukrainian/Russian crisis. A lowering of Amsterdam Trade Bank's
BCA will likely result in a downgrade of the bank's long-term

Conversely, stabilization of the Ukrainian geopolitical
situation, improvement in Russia's economic growth prospects and
renewed support of Alfa-Bank in favor of its subsidiary could
stabilize ratings at their current levels.

Given the ongoing review for downgrade, Moody's considers that
upward pressure on the long-term deposit ratings and BFSR of
Amsterdam Trade Bank is unlikely in the near term.

SUKHOI CIVIL: Fitch Lowers LT Issuer Default Ratings to 'BB-'
Fitch Ratings has taken rating actions on 13 Russian companies,
following Fitch's downgrade of the Russian sovereign.

On Jan. 9, 2015, Fitch downgraded Russia's Long-term foreign and
local currency Issuer Default Ratings (IDR) to 'BBB-' from 'BBB'.
The issue ratings on Russia's senior unsecured foreign and local
currency bonds were also downgraded to 'BBB-' from 'BBB'.  The
Outlooks on the Long-term IDRs are Negative.  The Country Ceiling
was lowered to 'BBB-'from 'BBB'.  The Short-term foreign currency
IDR was affirmed at 'F3'.

The rating actions reflect Fitch's view that these entities'
ratings are now constrained by the sovereign Rating and Outlook,
and have been revised to reflect this.  This rating view is
consistent with the lowering of the Russian Country Ceiling to
'BBB-'.  State-owned issuers notched down from the sovereign IDR
on the basis of Fitch's 'Parent and Subsidiary Rating Linkage'
criteria have also been downgraded to maintain the respective
rating differentials.

Fitch expects to publish a further rating action commentary in
the near future summarizing non-financial corporate Russian
National Scale ratings.

The rating actions are:

JSC Atomic Energy Power Corporation (Atomenergoprom)

Long-term local currency IDR: downgraded to 'BBB-' from 'BBB';
Outlook Negative

Short-Term Local Currency IDR affirmed at 'F3'

Long-term foreign currency IDR: downgraded to 'BBB-' from 'BBB';
Outlook Negative

Short term foreign currency IDR; affirmed at 'F3'

OAO Gazprom

Long-term local currency IDR: downgraded to 'BBB-' from 'BBB';
Outlook Negative

Short-term IDR: affirmed at 'F3'

Long-term foreign currency IDR: downgraded to 'BBB-' from 'BBB';
Outlook Negative

Senior unsecured rating: downgraded to 'BBB-' from 'BBB'

Senior unsecured rating for OOO Gazprom Capital: downgraded to
'BBB-' from 'BBB'

Short-term Commercial Paper Rating from Gazprom ECP SA: affirmed
at F3.

JSC Gazprom Neft

Long-term local currency IDR: downgraded to 'BBB-' from 'BBB';
Outlook Negative

Long-term foreign currency IDR: downgraded to 'BBB-' from 'BBB';
Outlook Negative

Foreign currency senior unsecured rating: downgraded to 'BBB-'
from 'BBB'

Short-term IDR affirmed at 'F3'

Senior unsecured rating for GPN Capital SA: downgraded to 'BBB-'
from 'BBB'

The rating actions on Gazprom Neft and GPN Capital SA applies to
all debt issued prior to August 2014.


Long-term local currency IDR: downgraded to 'BBB-' from 'BBB';
Outlook Negative

Long-term foreign currency IDR: downgraded to 'BBB-' from 'BBB';
Outlook Negative

Short term IDR affirmed at F3

Foreign currency senior unsecured rating: downgraded to 'BBB-'
from 'BBB'

Senior unsecured rating for LUKOIL International Finance BV:
downgraded to 'BBB-' from 'BBB'

OAO Novatek

Long-term local currency IDR: affirmed at BBB-; Outlook revised
to Negative from Stable
Long-term foreign currency IDR: affirmed at BBB-; Outlook
revised to Negative from Stable

Foreign currency senior unsecured rating: affirmed at 'BBB-'

Senior unsecured rating for Novatek Finance Limited: affirmed at

The affirmation of OAO Novatek and Novatek Finance applies to all
debt issued prior to 1 August 2014.

Rating Drivers and Rating Sensitivities.

JSC Russian Railways

Long-term local currency IDR: downgraded to 'BBB-' from 'BBB';
Outlook Negative

Long-term foreign currency IDR: downgraded to 'BBB-' from 'BBB';
Outlook Negative

Local currency senior unsecured rating: downgraded to 'BBB-'
from 'BBB'

Short term foreign currency IDR affirmed at 'F3'

Short-term local currency IDR affirmed at 'F3'

RZD Capital PLC foreign currency senior unsecured rating:
downgraded to 'BBB-' from 'BBB'

JSC Federal Passenger Company

Long-term local currency IDR: downgraded to 'BB+' from 'BBB-';
Outlook Negative

Long-term foreign currency IDR: downgraded to 'BB+' from 'BBB-';
Outlook Negative

Short term foreign currency IDR downgraded to 'B' from 'F3'

Short-term local currency IDR downgraded to 'B' from 'F3'

OJSC Federal Grid Company of Unified Energy System

Long-term local currency IDR: downgraded to 'BBB-' from 'BBB';
Outlook Negative

Long-term foreign currency IDR: downgraded to 'BBB-' from 'BBB';
Outlook Negative

Foreign currency senior unsecured rating: downgraded to 'BBB-'
from 'BBB'

Short-term foreign currency IDR affirmed at 'F3'

Federal Grid Finance Limited local currency senior unsecured
rating downgraded to 'BBB-' from 'BBB'

Polyus Gold International Limited

Long-term foreign currency IDR: affirmed at 'BBB-'; Outlook
revised to Negative

Foreign currency senior unsecured rating: affirmed at 'BBB-'

Short-term IDR affirmed at 'F3'

Rostelecom OJSC

Long-term foreign currency IDR: affirmed at 'BBB-'; Outlook
revised to Negative from Stable

Foreign currency senior unsecured rating: affirmed at 'BBB-'

Sukhoi Civil Aircraft

Long-term local currency IDR: downgraded to 'BB-' from 'BB';
Outlook Negative

Long-term foreign currency IDR: downgraded to 'BB-' from 'BB';
Outlook Negative

Foreign currency senior unsecured rating: downgraded to 'BB-'
from 'BB'

Short-term IDR: affirmed at 'B'

Local currency Short-term IDR: affirmed at 'B'

Rating Drivers and Rating Sensitivities.

OAO Tatneft

Long-term foreign currency IDR: affirmed at 'BBB-'; Outlook
revised to Negative from Stable

Short-term IDR affirmed at 'F3'


Long-term foreign currency IDR: affirmed at 'BBB-'; Outlook
revised to Negative from Stable

Uralkali Finance Limited foreign currency senior unsecured
rating: affirmed at 'BBB-'


BARCLAYS BANK: S&P Raises Counterparty Rating From 'BB+'
Standard & Poor's Ratings Services said that it raised to 'BBB/A-
2' from 'BB+/B' the long- and short-term counterparty credit
ratings on Spain-based Barclays Bank S.A.U. (BBSAU).  The outlook
is stable.

The upgrade follows the completion of the full acquisition of
BBSAU by Spain-based Caixabank S.A., as announced by Caixabank on
Jan. 2, 2015.  S&P considers that BBSAU has become a core
subsidiary of Caixabank, and S&P has therefore equalized the
ratings on the subsidiary with those on the parent.  S&P expects
the legal merger of both entities to take place this year.  Once
the merger is completed and BBSAU ceases to exist, S&P will
withdraw its ratings on BBSAU.

S&P generally rates core subsidiaries at the same level as the
group credit profile of the parent, which in this case is 'bbb'.
Despite BBSAU being a newly acquired subsidiary, S&P considers it
core to Caixabank based on S&P's expectation that it will be
fully merged into the parent during 2015.

Because S&P's ratings on BBSAU are now based on its core status
for Caixabank, S&P no longer have a stand-alone credit profile
(SACP) on the bank.

The stable outlook mirrors that on Caixabank, as S&P expects the
ratings on BBSAU to move in tandem with those on its parent.


JAMIE'S ITALIAN: Istanbul Unit Seeks Bankruptcy Protection
Isobel Finkel at Bloomberg News reports that Jamie's Italian
eatery in Istanbul, part of the restaurant chain established by
British celebrity chef Jamie Oliver, filed for legal protection
to overcome financial difficulties.

The Istanbul outlet of Jamie's Italian opened 14 months ago at
the new Zorlu Center mall, a shopping complex built by Zorlu
Holding at a cost of US$2.5 billion, Bloomberg says, citing
information on Zorlu Center's Web site.

Hurriyet Daily News reported that the Istanbul location was
unable to reach targets due to lower-than-forecast traffic to the
Zorlu mall, Bloomberg relays.  Hurriyet said the legal filing
also cited lower prices required to compete in Istanbul,
Bloomberg relates.

According to Bloomberg, the company said in a statement that
protection from bankruptcy is being sought for a short time only.
It said the restaurant will continue operating and stakeholders
and the landlord are expected to be supportive, Bloomberg notes.


UKRAINE: EU Commission Proposes Third Bailout Program
Peter Spiegel, Shawn Donnan, Neil Buckley and Elaine Moore at The
Financial Times report Jean-Claude Juncker, the European
Commission president, proposed a third EU bailout program for
Ukraine on Jan. 8, urging approval of another EUR1.8 billion in

The package still needs the approval of EU member states, where
willingness to loan Kiev additional funds has cooled amid
concerns that the Ukrainian government has not lived up to its
economic reform commitments, the FT notes.

The news came as International Monetary Fund officials began
talks on Jan. 8 with the new government in Kiev as part of a
review of its existing program and Ukraine's reform agenda, over
which there have been differences, the FT relays.

Ukraine won agreement on a US$17 billion IMF bailout in April,
topped up to US$27 billion including contributions from other
donors, the FT discloses.  But because of the country's weakening
economy, a US$15 billion budget gap has opened up, prompting the
fund to hold off distributing its latest aid tranche until it is
filled, the FT states.

According to the FT, the European Commission said if the EUR1.8
billion funds were approved, disbursement would be contingent on
Kiev getting agreement on further tranches of its US$17 billion
IMF bailout.

U N I T E D   K I N G D O M

ACISION BV: S&P Assigns 'B' CCR & Rates US$160MM Sr. Loan 'B+'
Standard & Poor's Ratings Services assigned its 'B' long-term
corporate credit rating to U.K.-based software firm Acision B.V.
The outlook is positive.

At the same time, S&P assigned its 'B+' issue rating to the
company's US$160 million senior secured loan. The recovery rating
is '2'.

The rating reflects S&P's view of Acision's business risk profile
as "weak" and its financial risk profile as "aggressive."

Acision has completed the issuance of US$160 million of senior
secured loans and will use the proceeds to refinance existing
loans maturing in 2015.  As part of this transaction, the
company's investors are also amending existing shareholder loans
to be subordinated to all the debt and to mature six months after
the company's senior debt.

Acision's business risk profile is constrained by its narrow
product offering -- most of the company's products are related to
short message service (SMS) or multimedia messaging service (MMS)
and there are revenue pressures on the legacy messaging
infrastructure products.  S&P anticipates this trend will
continue as the commoditization of SMS causes consumer SMS
revenues in developed markets to shrink and usage of alternative
"over-the-top" (OTT) messaging applications increases.  That
said, Acision has its own IP messaging solutions, which could
partly offset some of these pressures.  The business risk profile
is further constrained by meaningful client concentration, as
well as exposure to spending in the telecoms sector.  In
addition, Acision operates in a fragmented market and faces
competition from both small and big telecom infrastructure
providers.  Its profitability is somewhat lower than average.

"These factors are partially offset by Acision's relatively
strong position in this niche market -- its software is embedded
in many of the world's largest telecom carriers' mission-critical
infrastructure.  In our view, the company's long-term
relationship with and access to the carriers' network could
enable it to develop additional products and upsell new products
to existing clients.  New products include Collect SMS (a
"receiver pays" model for SMS messaging), Internet Protocol (IP)
messaging, and secured enterprise messaging.  The business risk
profile is further supported by recurring revenues from support
(which comprises about 50% of revenues).  Acision's support
services have retention rates of over 90% because of high
switching costs. Additionally, we consider that, given that SMS
is the only messaging service that is embedded in virtually all
mobile handsets, the company's products in messaging
infrastructure are likely to continue to generate revenues over
the long term," S&P said.

"Our assessment of Acision's financial risk profile reflects our
view that the company's adjusted leverage will be about 4x in
2014, following the refinancing, and that the company will start
to generate solid free cash flow from 2014 onward, as its
restructuring outflows are reducing meaningfully.  Our adjusted
debt calculation includes a provision for tax liability of about
US$48 million.  However, we understand that it is unlikely that
the full amount will be paid in cash.  Excluding the provision
for tax liability, we forecast that leverage will reach about
3.1x-3.2x in 2014.  We calculate adjusted EBITDA to include
capitalized development costs and restructuring costs, in line
with our criteria," S&P added.

"The financial risk profile is further constrained by our view
that the company's majority sponsor ownership could cause it to
have more aggressive funding in the future.  However, the
sponsor's track record with Acision so far suggests that it is
unlikely that the company will releverage to more than 5x
adjusted debt/EBITDA.  We expect credit ratios to experience some
volatility based on exchange rates; Acision's debt will be
entirely dollar-denominated.  This might create mismatches with
some of the currencies in which it bills customers.  In addition,
the largest staffing costs are in British pound sterling (31%),
U.S. dollars (20%), and Czech koruna (17%), because Acision's
employee base is predominantly located in the U.K., the U.S., and
the Czech Republic," S&P noted.

Because the company's profitability is lower than that of other
rated software peers, it has a track record of meaningful
restructuring, and it has seen continued decline in its core
revenues, S&P adjusts the rating downward by one notch from its
anchor of 'b+'.

S&P's base case assumes:

   -- The 2014 numbers are pro forma for the full-year
      consolidation of recent acquisition MindMatics.

   -- Third-party and core messaging infrastructure will continue
      to decline, but more slowly, especially from 2015 onward,
      when the revenues will predominantly comprise support.

   -- Double-digit growth in new products.  A revenue decline of
      about 1%-3% in 2014 and flattish revenues in 2015.

   -- Slightly lower margins in 2014 because expansion in the
      low-margin "rich enterprise" segment will have a meaningful
      effect on margins, which should stabilize in 2015 as lower-
      margin deployment declines and application-to-person (SMS
      messages sent between users and applications) profitability
      improves.  Operating expenditure meaningfully down in 2014
      as a result of further cost cuts, causing the adjusted
      EBITDA margin to improve to 25%-26%.

   -- Restructuring costs of about $4 million included in 2014

   -- Limited maintenance capital expenditure (capex) of about $2
      million-$3 million.

   -- No surplus cash adjustment because excess cash will likely
      be used to fund further acquisitions.

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

   -- EBITDA interest coverage of about 3x;
   -- Debt to EBITDA of about 4x in 2014, declining to about 3.5x
      in 2015; and
   -- Free operating cash flow (FOCF) to debt of about 13.5% in
      2014, improving to about 15%-16% in 2015.

The positive outlook reflects the potential for a one-notch
upgrade if growth of new products offsets the continued decline
in legacy messaging infrastructure, supporting further
improvement in adjusted EBITDA margins.

S&P could upgrade Acision to 'B+' if the company is successful in
stabilizing its revenues, minimizing its restructuring costs, and
generating meaningful free cash flows, in line with S&P's base-
case scenario.  S&P anticipates that a successful turnaround
would position it more comfortably within the "weak" business
risk profile and provide more certainty about its future
performance. An upgrade would be subject to adjusted EBITDA
margins improving to more than 25% and maintenance of adjusted
leverage well below 4.5x.

S&P could revise the outlook to stable if it sees continued
pressure in the company's top-line performance, resulting in
additional restructuring, and limited free cash flow generation.
Failure to stabilize earnings with growth from new products may
also cause S&P to revise the company's business risk profile to
"vulnerable," limiting the potential for rating upside.

CHAPTER EIGHT: In Administration, Cuts 18 Jobs
Yorkshire Evening Post reports that Chapter Eight has entered
administration, leading to 18 redundancies.

Sue Laverick, financial director at Chapter Eight, confirmed the
business ceased trading on January 9, according to Yorkshire
Evening Post.

"Unfortunately the board has taken steps today to put Chapter
Eight into liquidation and will convene a meeting of creditors in
due course," the report quoted Ms. Laverick as saying.

"We have spent the day informing staff and clients of the
decision. Creditors will be contacted once an administrator has
been formally appointed," Ms. Laverick said, the report relates.
"Our first priority has been informing our staff and ensuring
they receive support," Ms. Laverick added.

Members of the company's technical team have formed a business
that will continue to run clients' websites in the short-term and
has bought the necessary assets from the firm, Ms. Laverick said,
the report notes.

A total of 18 staff have been made redundant by the company,
which was based at The Basilica on King Charles Street, the
report relays.

Founded in 2002 by managing director Mario Thomas, Chapter Eight
provided web design, online retail and other software products to
brands including Coca Cola, Aston Villa Football Club and Sock

CITY LINK: Inquiry on Firm Collapse Could Proceed
Coventry Telegraph reports that an inquiry into the collapse of
delivery firm City Link could take place, Vince Cable has said.

The Business Secretary said the decision to proceed with an
investigation depends on the findings from the administrator,
according to Coventry Telegraph.

It comes after MPs and unions across the country criticized the
behavior of City Link bosses, the report notes.

The report discloses that the administrators at EY announced
2,356 redundancies on New Year's Eve, after talks with a
potential buyer fell through.

The report says that the news comes a day after administrators
announced a further 230 redundancies, as 51 depots prepare to
close by January 15.  A total of 141 staff will remain at the
Coventry headquarters, as well as across a number of other sites,
to help wind the business down, the report adds.

DRIVE ASSIST: Debts of GB82 Mil. Force Firm Into Administration
Fleet News reports that Drive Assist UK, once one of Britain's
leading non-fault accident vehicle replacement companies, and its
two sister companies have collapsed owing more than GBP82

The accident management specialist and its Millennium Motor Group
and Sol Car Rentals businesses went into administration following
the loss of a major contract and an inability to raise GBP10
million to continue trading, according to Fleet News.

The report notes that more than two months after administrators
from Zolfo Cooper were appointed, the companies are now being
wound down with thousands of cars being recovered and due to be
sold.  The collapse of the Tamworth-based company has also
resulted in the loss of around 640 jobs, the report relates.

The report says that its downfall comes after it reported profits
of GBP32.6 million in 2007.

At the time, Drive Assist UK operated a fleet of more than 14,000
cars and vans and had a turnover of above GBP100 million.

The report says that the business continued to expand, but for
the 12 months to May 31, 2011, accounts reveal that Drive Assist
Holdings, the parent company, reported a pre-tax loss of GBP233.4
million on turnover of GBP107.2 million, compared with a loss of
GBP24.9 million on a turnover of GBP157.2 million for the
previous 12 months.

                  Insurance Company Contract Loss

TA Associates, a leading buyout and private equity firm, invested
in Drive Assist in 2003, and four years later, realized a return
of more than triple its investment through the $500 million
(GBP322 million) sale of its stake to Charterhouse Capital
Partners, another buy-out specialist and private equity firm, the
report notes.

The report relays that the creditors' report highlights that last
year Drive Assist lost a major contract from an unnamed insurance
company, although it is reported to have been the Peterborough-
based BGL Group, that had historically accounted for an average
of 30% of the company's annual revenues.

When the administrators were appointed Drive Assist operated a
fleet of 7,458 vehicles, the vast majority of which were acquired
on short-term purchase and buy-back agreements from
manufacturers, the report says.

Most of the vehicles were funded by Lombard North Central, Fortis
Lease UK and United Dominions Trust.

The report notes that Millennium, which traded under the name
Nottingham Autopark, was reliant on Drive Assist to provide
vehicles, although it did acquire some from other sources via a
separate stocking facility.

Meanwhile, Sol was engaged in the short-term rental of vehicles
to either individual or corporate customers, with around 900 on
hire for durations ranging typically from between six and nine
months, the report discloses.  When the company entered
administration, 215 of the vehicles were being used as company
cars by Drive Assist employees, with the remainder on hire to
third parties, the report relays.

              In Contravention of Financing Agreements

However, the creditors' report says such lengthy hire periods
appeared to be in direct contravention of financing agreements
with funders, which prohibited hire periods of greater than 28
days, the report notes.  As a result, Deloitte was asked to
perform a review of certain aspects of the businesses, the report

While that review was in progress, Zolfo Cooper was engaged by
Drive Assist's syndicate of banks to perform a contingency
planning exercise, while the directors explored further funding
options, the report notes.

The report relays that the creditors report said: "It became
clear that the companies would not be able to continue to pay for
the financing associated with its fleet and the associated
operating costs.

"As a result, the vehicle funders made it clear that they would
require the immediate return of all funded vehicles as quickly as
possible to preserve the residual value of the fleet and minimise
the loss suffered."

The report highlights that by January 25, about 4,797 vehicles
had either been returned, or were in transit to the vehicle
funders, with a further 1,060 available for collection either
from Drive Assist's 13 depots, which are being closed, or end-

                Contracts Terminated on All Sol Cars

As a result of the breach of the hire agreement, the vehicle
funders requested that the contracts be terminated on all cars
operated by Sol and the vehicles recovered, the report relates.
The creditors' report reveals that to date, approximately 394 Sol
vehicles have been returned to the vehicle funders, the report

The creditors' report also reveals that prior to the
administrators' appointment, Drive Assist had received payments
in relation to the sale of several hundred vehicles financed by
the vehicle funders, the report notes.

The creditors' report related: "All of these vehicles were
subject to financing agreements with the vehicle funders and, as
such, the proceeds of sale should have been paid directly into a
separate designated account, charged to the vehicle funders.

"However, these funds were paid directly into Drive Assist's main
current account and some of the funds were subsequently used to
provide additional working capital.  The administrators, with the
agreement of both the senior lenders and vehicle funders, took
independent legal advice on this matter to determine how this
should be dealt with.  This legal advice is confidential but has
been shared with the senior lenders and vehicle funders and
discussions are in progress to resolve this matter," creditors'
report added, the report says.

ISIS INVESTMENTS: Jan. 28 IOM Scheme Claims Bar Date Set
Conditions to the proposed scheme of arrangement pursuant to
section 152 of the Companies Act 1931 between Isis Investments
Limited and its Scheme Creditors were satisfied on December 23,
2014, at which point the Isle of Man Scheme became effective in
accordance with its terms.

Accordingly, the Effective Date is December 23, 2014, and the Bar
Date will be 5:00 p.m. (London time) on January 28, 2015.

Scheme Creditors may request a Claim Form from the Scheme
Supervisor using the contact details below.

Any questions should be directed to Andrew Paul Shimmin, the
Scheme Supervisor using the contact details below:

          13-15 Hope Street
          Douglas, Isle of Man, IM1 1AQ
          FAO: Andrew Paul Shimmin
          Tel No: (+44)-01624-627744
          Fax No: (+44)-01624-629666

VIRGIN MEDIA: Moody's Rates GBP300-Mil. Sr. Secured Notes 'Ba3'
Moody's Investors Service assigned a Ba3 rating to the proposed
new GBP300 million senior secured notes due January 2025 to be
issued by Virgin Media Secured Finance PLC and a B2 rating to the
new GBP625 million equivalent senior notes to be issued by Virgin
Media Finance PLC, both indirect subsidiaries of Virgin Media
Inc. ("Virgin Media", or "the company"). Virgin Media's existing
ratings, including the company's Ba3 Corporate Family Rating
(CFR) remain unchanged and the outlook remains stable.

Proceeds from the new issuance will be used for general purposes,
including the funding of the planned acquisition of UPC Broadband
Ireland Ltd. ("UPC Ireland") and its subsidiaries (the "UPC
Ireland Group") for an undisclosed purchase price, distributions
to parent companies or the refinancing of existing debt. The UPC
Ireland Group provides digital cable, broadband internet and
fixed-line telephony in five regional clusters in Ireland,
including the cities of Dublin, Cork, Galway and Limerick to both
residential and B2B customers. It generated revenue of GBP 215
million and OCF of GBP101 million for the nine months period to
September 30, 2014.

Ratings Rationale

Virgin Media's Ba3 CFR reflects the resilient operating
performance of the company's cable business considering the
competitive nature of UK broadband and television markets,
continued improvements in the quality of the broadband and
digital TV offer supported by the capabilities of its DOCSIS 3.0
networks and evidenced by increased TiVo penetration and an
improved broadband subscriber mix; and revenue growth
opportunities offered by the company's mobile and B2B services.
However, the rating remains constrained by the strong competition
in the company's broadband and television markets evidenced by
muted RGU net adds over recent quarters; (ii) Virgin Media's
significant leverage of around 5.2x Debt/EBITDA (as adjusted by
Moody's) on a last-twelve-months (LTM) to 30 September 2014 basis
adjusted for the potential UPC Ireland acquisition; and (iii) a
financial policy that is now aligned with Liberty Global plc's
(Ba3, Stable) more leverage-tolerant stance.

The potential UPC Ireland acquisition makes good strategic sense,
has some potential for synergies for example from corporate
overhead reduction and is, in conjunction with other potential
uses of the issuance proceeds, only modestly leveraging. The
stable outlook reflects Moody's expectation that Virgin Media's
up-selling strategy and operating leverage will lead to some
moderate growth in revenue and EBITDA going forward.

What Could Change the Rating -- UP

While positive ratings development is unlikely in the near term,
strong operating performance and solid revenue growth along with
leverage as measured by the Debt/EBITDA (as adjusted by Moody's)
ratio falling sustainably below 4.5x.

What Could Change the Rating -- DOWN

Sustained weak operating performance or an increase in
Debt/EBITDA (as adjusted by Moody's) above 5.5x could result in
downward pressure. Furthermore weak liquidity would put downward
pressure on the ratings.

Moody's views Virgin Media's liquidity profile as solid. As of 30
September 2014 the company had GBP 34 million of cash on balance
sheet (pro forma for its October 2014 refinancing) and GBP 660
million available under its unused revolving credit facility.
Similar to other Liberty Global plc group companies, Virgin Media
actively manages its debt obligations to optimize borrowing costs
and extend maturities. As of the end of Q3 2014, around 96.1% of
the company's debt (including capital leases and vendor
financing, excluding premium and amounts representing interest)
was scheduled to mature in 2019 and beyond. In Moody's view,
internally generated cash flows together with cash in hand should
provide Virgin Media with a good level of flexibility for its
operational needs over the next 12 to 18 months. Subject to
covenant compliance Moody's believe that any surplus liquidity
will likely be up-streamed to Liberty Global from time to time.

The principal methodology used in these ratings was Global Pay
Television - Cable and Direct-to-Home Satellite Operators
published in April 2013. Other methodologies used include Loss
Given Default for Speculative-Grade Non-Financial Companies in
the U.S., Canada and EMEA published in June 2009.

Virgin Media Inc. is a cable communications company offering
broadband internet, television, mobile telephony and fixed line
telephony services to residential and commercial customers in the
UK. The company generated LTM revenue of GBP4.2 billion for the
period to September 30, 2014. Virgin Media is an indirectly
wholly-owned subsidiary of Liberty Global plc.


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
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re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
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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,
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