TCREUR_Public/150506.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Wednesday, May 6, 2015, Vol. 16, No. 88



CYPRUS: Key Insolvency Laws Clear Rescue Program Hurdle


LABEYRIE FINE: Fitch Affirms 'B' LT Issuer Default Rating


OAS INVESTMENTS: Fitch Affirms, Then Withdraws C Rating on Notes
SOLAR-FABRIK AG: Freiburg Court Opens Insolvency Proceedings


GREECE: Greek Ministers Launch Push for Bailout Deal
GRIFONAS FINANCE: Moody's Cuts Rating on Class C Notes to 'Caa3'


LANDSVIRKJUN: Moody's Affirms Ba2 Debt Ratings, Outlook Positive


CLAVERHOUSE: "Material Income" Reduction Spurs Liquidation


PARMA FOOTBALL: Receivers Invite Expressions of Interest for Biz


TAP-AIR PORTUGAL: Pilots Strike May Threaten Survival

S L O V A K   R E P U B L I C

VAHOSTAV: Creditors Agree to Write Off Two-Thirds of Debts


FAIRHOLD SECURITIZATION: Moody's Reviews Caa3 Notes for Downgrade
* UK: Number of Administrations Down to 432 in First Quarter 2015
* UK: Baker Tilly Responds to Latest Insolvency Statistics
* UK: Numbers of SME Food Suppliers in Financial Distress Up 120%



CYPRUS: Key Insolvency Laws Clear Rescue Program Hurdle
The Associated Press reports that lawmakers in Cyprus on May 2
passed key insolvency laws designed to open the taps for more
international bailout cash.

The vote makes it possible to operate foreclosure laws that
international creditors have demanded as a condition for
extending more loans to Cyprus, The Associated Press notes.

Recession, high unemployment and declining incomes have produced
defaults on more than half of all private loans, The Associated
Press discloses.  The new laws should make it easier for banks to
demand payment or seize assets, thereby reducing the banks' own
liabilities, The Associated Press states.

Lawmakers had passed some of the legislative package last year,
but delayed enforcement until they could approve other bills also
passed on May 2 that are designed to offer protection to some
vulnerable categories of debtors, The Associated Press recounts.

The International Monetary Fund has been withholding EUR88
million (US$95 million) in rescue money, citing Cyprus' delay in
giving banks the legal tools to deal with their load of bad debt,
The Associated Press relays.

According to The Associated Press, Cyprus government officials
said passage of this package of debt-related bills means the
country should be able to tap international markets for a second
time since its March 2013 bailout.  This could include
participation in the European Central Bank's bond-buying EUR1.1
trillion (US$1.19 trillion) stimulus program, The Associated
Press says.


LABEYRIE FINE: Fitch Affirms 'B' LT Issuer Default Rating
Fitch Ratings has affirmed French packaged food group Labeyrie
Fine Foods SAS's (LFF) Long-term Issuer Default Rating (IDR) at
'B' with a Stable Outlook. Fitch has also affirmed LFF's EUR275
million senior secured notes due 2021 at 'B+'/'RR3'.

The affirmation reflects LFF's resilient business profile, which
is balanced by high business risk. The group achieved sound
growth in the financial year to June 2014 despite a difficult
trading environment characterized by soft demand, intense
competitive pressure and high raw material prices. The group's
high business risk relates to limited geographic and product
diversification as well as high seasonality of sales. This is,
however, counterbalanced by its moderate leverage relative to its
rating category. Based on the group's track record and
management's commitment to a conservative financial policy, Fitch
expects this strong financial profile to be maintained despite
likely growth through bolt-on acquisitions.


Resilient Business Model

LFF's sales resilience reflects its niche positioning in the
premium pleasure food market, which has proven highly stable
through economic cycles. The group benefits from the leading
position of its core brands in the French market, which strongly
enhances its capacity at delivering sales growth in a weak
consumer environment.

In an environment of high competition and intense price pressure
from food retailers, Labeyrie managed to record 5.2% sales growth
and 40bps y-o-y EBITDA margin improvement in FY14. It also gained
market shares in all product categories in FY14 and 1HFY15.

Sustained Profitability

Fitch expects LFF's EBITDA margin to be at or above 8.3% over the
FY15-FY17 period (FY14: 8.9%). Raw material prices fluctuations,
combined with FX variations (notably depreciation of the euro
against the British pound in FY15), should continue to exert
pressure on gross margin. Furthermore we expect the group to
maintain significant marketing investments to to support demand
in a weak consumer and highly competitive environment. However,
these negative factors are likely to be counterbalanced by
further industrial efficiencies and product mix improvements.

Profit Seasonality

LFF generates on average 40% and 65% of its sales and EBITDA,
respectively, between October and December. The seasonality of
the business represents a significant business and financial
risk, especially if it coincides with an external shock (such as
a food scare) during the Christmas season. Fitch views positively
management efforts to reduce this risk by expanding its product
range to less seasonal food. The development of the French
Everyday Delicatessen division (Blini-branded products, herring,
elaborated prawns: less seasonal products), whose share in
consolidated EBITDA increased to 33.3% in FY14 (FY11: 31.2%),
illustrates these efforts.

Scale and Diversification

LFF's scale is small compared with packaged food peers rated in
the 'B' category. Limited geographic, product and customer
diversification leads to high business risk. This is only
partially offset by the group's high-quality image and presence
across various food counters. In this context, Fitch views
positively management's success at securing a new sales contract
with Co-operative group in the UK. This should improve the
business units' low customer diversification and have a positive
impact on EBITDA through increased capacity utilization rate.
However, Fitch still believes LFF's diversification efforts will
only generate meaningful benefits in the long term.

Positive Free Cash Flow

LFF's free cash flow (FCF) generation should remain positive at
around 1% of sales per annum over FY15-FY17, due to top-line
growth and a resilient EBITDA margin, limited working capital
outflow due to continued tight management, and fairly low capex
needs. This leaves some financial flexibility for bolt-on

Conservative Leverage

Due to seasonality, debt moves upwards in the quarter ending in
December, with intra-year leverage peaking at a level that Fitch
estimates on average approximately 1.0x higher than in June
(FYE). Nevertheless, for most of the year, leverage is more
conservative, compensating for the group's high business profile
and closer to the 'BB' median for packaged food companies. Fitch
forecasts lease-adjusted funds from operations (FFO) gross
leverage at 4.7x for FY15 and approximately 6.0x (including
outstanding factoring line) in December 2015, at the annual peak.

M&A Risk

M&A is an important part of management's strategy to support the
group's scale and diversification by product and geography and is
likely to reduce exposure to seasonality. At the current rating
level, Fitch calculates that LFF's FCF generation capacity and
moderate leverage provide some headroom for bolt-on acquisitions
over FY15-FY17. However, any acquisitions leading to a
significant increase in leverage could put negative pressure on
the ratings.

Fitch assumes EUR15 million spending per annum on potentially
slightly margin-dilutive acquisitions from FY17, with no equity
funding. Under these assumptions LFF's lease-adjusted FFO gross
leverage at year-end should remain comfortably commensurate with
a 'B' rating profile (4.5x at FYE18). In addition management has
expressed commitment at further strengthening LFF's financial


Fitch's key assumptions within our rating case include:

   -- Mid-single digit sales growth driven by both organic growth
      and acquisitions

   -- EBITDA margin stable at 8.3% including potential margin
      dilution from acquisitions

   -- Working capital changes in line with sales development

   -- EUR28 million capex per annum

   -- No dividends

   -- Annual bolt-on acquisition spending of EUR15 million from


Positive: future developments that could lead to a positive
rating action include:

   -- Strengthened business profile leading to sustainably
      improved profitability and cash flow generation

   -- Lease-adjusted FFO gross leverage below 4.0x at FYE and
      below 5.0x at end-1HFY (December, including factoring line)

Negative: future developments that could lead to a negative
rating action include:

   -- EBITDAR margin below 7.5% on a sustained basis

   -- Neutral to negative FCF margin for two consecutive years

   -- Lease-adjusted FFO gross leverage above 5.5x at FYE and
      6.5x at end-H1FY (December, including factoring line)


OAS INVESTMENTS: Fitch Affirms, Then Withdraws C Rating on Notes
Fitch Ratings has affirmed and withdrawn the ratings of the OAS
Group units, which includes OAS S.A., Construtora OAS S.A., OAS
Investments GmbH, OAS Finance Ltd., and OAS Empreendimentos S.A.


Fitch is withdrawing the ratings as the OAS Group has chosen to
stop participating in the rating process. Therefore, Fitch will
no longer have sufficient information to maintain the ratings.
Accordingly, Fitch will no longer provide analytical coverage for
the OAS Group.

Fitch has affirmed and withdrawn the following ratings:


   -- Foreign currency (FC) Issuer Default Rating (IDR) at 'D';
   -- Local currency (LC) IDR at 'D';
   -- National scale rating at 'D(bra)';
   -- BRL300 million debentures 3rd issuance due 2016 at
   -- BRL250 million debentures 4th issuance due 2027 at
   -- BRL300 million debentures 5th issuance due 2015 at

Construtora OAS S.A.:

   -- FC IDR at 'D';
   -- LC IDR at 'D';
   -- National scale rating at 'D(bra)'.

OAS Investments GmbH:

   -- USD850 million senior unsecured notes due 2019 at 'C/RR4'.

OAS Finance Ltd.

   -- USD500 million perpetual bonds at 'C/RR4';
   -- USD400 million senior unsecured notes due 2021 at 'C/RR4'.

OAS Empreendimentos S.A.:

   -- National scale rating at 'D(bra)'.

SOLAR-FABRIK AG: Freiburg Court Opens Insolvency Proceedings
SolarServer reports that the local court in Freiburg, Germany, on
May 4 disclosed that it decided on May 1, 2015, to open the
insolvency proceedings on the assets of Solar-Fabrik AG.

According to SolarServer, the court ordered Dr. Thomas Kaiser of
the law firm Kaiser & Sozien as the insolvency administrator of
the assets of Solar-Fabrik.

On April 29, 2015, the company announced that it will postpone
the publication of the 2014 consolidated annual report scheduled
by April 30, 2015, because it must consider the consequences of
the insolvency process in self-administration, SolarServer

Solar-Fabrik AG is a PV company based in Freiburg.


GREECE: Greek Ministers Launch Push for Bailout Deal
BBC News reports that Greek ministers have launched a concerted
effort to persuade European officials to release more bailout
money as the government runs out of cash.

Finance Minister Yanis Varoufakis first met his French
counterpart before visiting Brussels, while colleagues headed for
the European Central Bank, BBC relates.

The EU and IMF will not release EUR7.2 billion (GBP5.3 billion;
US$8 billion) until they are satisfied with Greek plans for
economic reform, BBC notes.

The EU has now slashed its 2015 growth forecast for Greece from
2.5% to 0.5%, BBC discloses.

The Greek government is desperate to reach a deal with its
international creditors before a scheduled EUR1 billion debt
interest repayment to the IMF on May 12, but the two sides have
yet to agree on labor reforms and pensions, BBC relays.

According to BBC, German Finance Minister Wolfgang Schaeuble said
he doubted whether a deal could be reached in time for a
Eurogroup meeting on May 11.

"I'm somewhat skeptical whether that'll be possible by Monday,
May 11.  But I'm not ruling it out," BBC quotes Mr. Schaeuble as

Mr. Varoufakis was recently removed from Greece's negotiating
team amid reports that eurozone counterparts were unhappy with
his abrasive style, BBC recounts.  But he played a key role in
the Greek diplomatic campaign on May 5, first meeting French
Finance Minister Michel Sapin in Paris before talks with
EU Economic Affairs Commissioner Pierre Moscovici in Brussels,
BBC notes.

According to BBC, as Greek ministers launched their push for a
deal, officials in Athens told Reuters that they were willing to
move ahead with two big asset sales -- a EUR1.2 billion deal with
German operator Fraport to run regional Greek airports and the
re-opening of bidding for a 51% stake in the biggest Greek port,
at Piraeus.

GRIFONAS FINANCE: Moody's Cuts Rating on Class C Notes to 'Caa3'
Moody's Investors Service downgraded 18 notes and affirmed 1 note
in 8 Greek structured finance transactions. This follows Moody's
lowering of its country ceiling on Greece to B3 from Ba3 and its
downgrade of Greece's sovereign rating to Caa2 from Caa1 that
occurred on April 29, 2015.

As a result of the rating actions, the maximum achievable rating
for outstanding Greek structured finance securities is now
B3(sf), down from Ba3(sf) previously.

This rating action concludes the review of the seven senior notes
that started on April 20, 2015 for ABS and RMBS transactions due
to a) heightened uncertainty regarding the Greek government's
negotiations with its international lenders, b) its adverse
effect on the Greek economy and c) the risk of the government
imposing deposit freezes, or other capital controls, to preserve
financial stability and the review of Titlos plc that started on
February 11, 2015 as a the result of the Greek sovereign rating

Maximum Achievable Rating For Greek Structured Finance
Transactions is now B3(sf):

The rating actions reflect Moody's downgrade of Greece's local
and foreign currency bond ceilings to B3 from Ba3.

The bond ceilings essentially reflect the risk of Greece leaving
the euro area and the impact of the resulting currency
redenomination on holders of Greek debt. Moody's acknowledges
that default need not entail exit, which would ultimately reflect
a political decision. However, the lower ceiling reflects Moody's
view that the probability of the one leading to the other has

Concurrently, Moody's has lowered the local- and foreign-currency
bank deposit ceilings to Caa3 from Caa1 reflecting the increase
in the risk of the government placing restrictions on accessing
foreign- and local-currency deposits. Moody's decision to lower
the deposit ceilings to one notch below the level of the
government bond rating reflects the rating agency's view that the
risk of the government imposing deposit freezes or similar
capital restrictions in order to contain deposit outflows and
preserve financial stability is now slightly higher than the risk
of the government defaulting on its own debt.

Approach Used For RMBS Ratings:

MILAN CE is a key input in the RMBS methodology used to calibrate
the loss distribution in the cash flow model, however given the
low level of the Greek country ceilings, and the relatively high
level of expected losses, a MILAN CE that would generate the
desired loss distribution cannot be established. Therefore
Moody's did not carry out the cash flow analysis to determine the
note rating, but rather used a qualitative approach. The ratings
were positioned according to the ratio of the note credit
enhancement to the portfolio expected loss (CE/EL). The position
in the capital structure as well as note size were also taken
into account in the ratings. For illustration senior notes with a
CE/EL ratio of 2 or above can generally achieve a Ba3(sf) rating,
whereas a mezzanine or junior note with the CE/EL ratio of 2
would on average achieve a Caa1(sf) rating. If CE/EL ratio
approximately equals 1, a senior note would likely achieve a
B1(sf) rating, whereas a mezzanine or junior note would likely
achieve a Caa3(sf) rating. Such approach is further adjusted in
view of maximum achievable rating.

16 RMBS Notes Downgraded and 1 Note Affirmed:

Moody's assessed the current credit enhancement (CE) level under
each senior RMBS note and compared it against the observed
performance and the expected loss for each transaction.

Moody's downgraded the six senior notes to the highest achievable
rating B3(sf) given the sufficient CE/EL for all transactions.

Small subordinated notes are subject to higher severities given
that 1) available cash flows would first be allocated to the
senior notes; and 2) any allocation of losses in smaller tranches
results in a higher severity compared to the same level of losses
in a much larger note. As a result, Moody's downgraded ten
subordinated notes in six transactions and affirmed one junior

RMBS Collateral Performance:

Moody's has reduced the recovery rates assumptions to 10% down
from 45%. Reported recoveries trend downwards as a result of a
weakening economy. The economy's fragile recovery and the
government's fiscal consolidation efforts have been derailed.
Moreover, risks to the growth outlook are firmly towards the
downside as lingering uncertainty is likely to have a negative
impact on investment, the nascent recovery in consumption and
property prices.

With few exceptions, arrears levels have so far remained low and
stable. The performance may however be distorted by loan
buybacks. Moody's notes that Estia Mortgage Finance II PLC
experienced deteriorating delinquencies with the 30 days
delinquencies accounting for 23% of the pool as of February 2015
vs. 15% in May 2014.

Titlos PLC Notes Downgraded on Increased Sovereign Risk:

Moody's downgraded the note issued by Titlos plc to Caa2(sf) from
Caa1(sf) on review for downgrade. The note is backed by a swap
relying on payments by the Greek government, reflecting the Greek
sovereign rating. Moody's believes the main risk driver of this
transaction is Greek sovereign risk and, as such, the rating on
the notes closely mirror that of the Greek government.

Epihiro PLC Notes Downgraded on Increased Sovereign Risk:

Moody's has downgraded the Class A of EPIHIRO PLC. Class A
benefits from a substantial credit enhancement of approximately
51%. Moody's notes that the principal source of liquidity is
provided by a reserve fund kept in an account located in Greece
and maintained by Alpha Bank AE (Caa3/ NP). Moody's believes that
the reserve fund won't be affected by the possible deposit
restrictions reflected in the Foreign Currency Bond Deposit
Ceiling currently at Caa3. Nevertheless, should such restrictions
materialize, draws on the reserve are likely to be delayed due to
operational complexity in determining which obligation would be

The principal methodology used in rating Estia Mortgage Finance
II PLC, Grifonas Finance No. 1 Plc, KION Mortgage Finance Plc,
Themeleion II Mortgage Finance Plc, Themeleion III Mortgage
Finance Plc and Themeleion IV Mortgage Finance Plc was "Moody's
Approach to Rating RMBS Using the MILAN Framework", published in
January 2015. The principal methodology used in rating EPIHIRO
PLC was "Moody's Global Approach to Rating Collateralized Loan
Obligations", published in February 2014. The principal
methodology used in rating Titlos plc was "Moody's Approach to
Rating Repackaged Securities", published in December 2014.

Factors that would lead to an upgrade or downgrade of the

Factors or circumstances that could lead to an upgrade of the
ratings are (1) a decreased probability of high-loss scenarios
owing to a downgrade of the country ceiling; (2) improvement in
the notes' available CE; and (3) improvement in the credit
quality of the transaction counterparties.

Factors or circumstances that could lead to a downgrade of the
ratings are (1) an increased probability of high-loss scenarios
owing to a downgrade of the country ceiling; (2) performance of
the underlying collateral that does not meet Moody's
expectations; (3) deterioration in the notes' available CE; and
(4) deterioration in the credit quality of the transaction

Sensitivity Analysis:

Moody's did not conduct a cash flow analysis as the main driver
of the rating actions was its downgrade of the country ceiling
for Greece.

List of Affected Ratings:


  -- EUR1623 million Class A Notes, Downgraded to B3 (sf);
     previously on Apr 20, 2015 Ba3 (sf) Placed Under Review for
     Possible Downgrade

Issuer: Estia Mortgage Finance II PLC

  -- EUR1137.5 million A Notes, Downgraded to B3 (sf); previously
     on Apr 20, 2015 B1 (sf) Placed Under Review for Possible

Issuer: Grifonas Finance No. 1 Plc

  -- EUR897.7 million A Notes, Downgraded to B3 (sf); previously
     on Apr 20, 2015 Ba3 (sf) Placed Under Review for Possible

  -- EUR23.8 million B Notes, Downgraded to Caa2 (sf); previously
     on Aug 18, 2014 Upgraded to B3 (sf)

  -- EUR28.5 million C Notes, Downgraded to Caa3 (sf); previously
     on Aug 18, 2014 Upgraded to Caa2 (sf)

Issuer: KION Mortgage Finance Plc

  -- EUR553.8 million A Notes, Downgraded to B3 (sf); previously
     on Apr 20, 2015 Ba3 (sf) Placed Under Review for Possible

  -- EUR28.2 million B Notes, Downgraded to Caa2 (sf); previously
     on Aug 18, 2014 Upgraded to Caa1 (sf)

  -- EUR18 million C Notes, Downgraded to Caa3 (sf); previously
     on Aug 18, 2014 Upgraded to Caa2 (sf)

Issuer: Themeleion II Mortgage Finance Plc

  -- EUR690 million A Notes, Downgraded to B3 (sf); previously on
     Apr 20, 2015 Ba3 (sf) Placed Under Review for Possible

  -- EUR37.5 million B Notes, Downgraded to B3 (sf); previously
     on Aug 18, 2014 Upgraded to B1 (sf)

  -- EUR22.5 million C Notes, Downgraded to Caa1 (sf); previously
     on Aug 18, 2014 Upgraded to B3 (sf)

Issuer: Themeleion III Mortgage Finance Plc

  -- EUR900 million A Notes, Downgraded to B3 (sf); previously on
     Apr 20, 2015 Ba3 (sf) Placed Under Review for Possible

  -- EUR20 million B Notes, Downgraded to Caa1 (sf); previously
     on Aug 18, 2014 Upgraded to B3 (sf)

  -- EUR40 million C Notes, Downgraded to Caa3 (sf); previously
     on Aug 18, 2014 Upgraded to Caa2 (sf)

  -- EUR40 million M Notes, Downgraded to B3 (sf); previously on
     Aug 18, 2014 Upgraded to B2 (sf)

Issuer: Themeleion IV Mortgage Finance Plc

  -- EUR1352.9 million A Notes, Downgraded to B3 (sf); previously
     on Apr 20, 2015 Ba3 (sf) Placed Under Review for Possible

  -- EUR155.5 million B Notes, Downgraded to Caa3 (sf);
     previously on Aug 18, 2014 Upgraded to Caa2 (sf)

  -- EUR46.6 million C Notes, Affirmed Caa3 (sf); previously on
     Aug 18, 2014 Affirmed Caa3 (sf)

Issuer: Titlos plc

  -- EUR5100 million A Notes, Downgraded to Caa2 (sf); previously
     on Feb 11, 2015 Caa1 (sf) Placed Under Review for Possible

Moody's Investors Service downgraded to B3 from Ba3 the corporate
family rating and to B3-PD from Ba3-PD the probability of default
rating of Hellenic Telecommunications Organization S.A. (OTE).
Concurrently, the rating agency downgraded to (P)B3 from (P)Ba3
the senior unsecured ratings of the global medium-term note
program (GMTN) and to B3 from Ba3 the rating on the global bonds
issued by OTE PLC (OTE's fully and unconditionally guaranteed
subsidiary). The outlook on all ratings is negative.

This rating action follows Moody's decision to downgrade the
Government of Greece's government bond ratings to Caa2 from Caa1
and foreign-currency ceiling to B3 from Ba3. For more details,
please refer to Moody's press release: "Moody's downgrades
Greece's government bond rating to Caa2 from Caa1; outlook

"While OTE has taken steps to insulate itself from the Greek
economy, the company is predominantly a Greek business with
approximately 70% of its revenues generated in Greece," says
Carlos Winzer, a Moody's Senior Vice President and lead analyst
for OTE. "As such, the downgrade of the government bond rating
exerts pressure on the ratings of OTE as the company's outlook
will remain closely linked to conditions in its domestic

The action reflects Moody's recent decision to downgrade Greece's
government bond rating to Caa2, as well as the risk of further
deterioration of OTE's business and financial prospects that
would likely accompany further deterioration in the Greek
economic environment.

OTE remains exposed to developments in the domestic Greek market
despite demonstrating a degree of resilience through the recent
period of sovereign stress and having taken steps to further
insulate itself from the Greek economy. In this regard, the
company has limited exposure to domestic banks and enhanced
international banking relationships. The rating agency notes that
the impact of any disruption in the Greek banking system on OTE
will likely be limited as it has no Greek bank debt exposure.

Whilst these factors allow OTE's ratings to be positioned higher
than the government's bond rating, and at the B3 sovereign
ceiling, the increased uncertainty over whether Greece's new
government will come to an agreement with its official creditors
in time to meet its near-term funding and liquidity needs exerts
negative pressure on Greece's sovereign creditworthiness and, in
turn, OTE's ratings.

At B3, OTE's ratings reflect (1) the fact that a non-Greek
financial subsidiary (OTE PLC, which is domiciled in the UK and
subject to English law) issues its debt; (2) the fact that around
30% of OTE's revenues and 25% of its EBITDA are generated outside
of Greece; (3) Moody's expectation that OTE will maintain
substantial cash balances of around EUR1.15 billion to pre-fund
future bond maturities; and (4) the implicit support it receives
from its largest shareholder, Deutsche Telekom AG (Baa1 stable).

Given the challenges currently affecting Greece, no upward
pressure on OTE's ratings are expected in the near term.
Ultimately, any potential for positive rating development would
require an upgrade of the Greek Sovereign rating, a more
substantial dissociation of the company's business and financial
prospects from those of the Greek economy, and/or more explicit
support from Deutsche Telekom.

A rating downgrade could occur if (1) Moody's were to downgrade
Greece's government bond rating; (2) conditions in the domestic
environment were to deteriorate further as a result of a
weakening of Greece's credit profile or a material increase in
the risk of Greece exiting the euro area; and/or (3) unexpected
pressure on OTE's liquidity were to emerge, particularly as a
result of a failure by the company to maintain comfortable cash

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

Hellenic Telecommunications Organization S.A. (OTE) is the
leading telecommunications operator in Greece, servicing 2.8
million retail fixed access lines, 1.3 million retail fixed-line
broadband connections, 353,482 TV subscribers and 7.4 million
mobile customers in Greece as of December 2014. In addition to
its wireless operations in Greece, OTE offers mobile telephony
services to customers in Albania (two million customers) and
Romania (six million customers) through Cosmote, Greece's leading
provider of mobile telecommunications services. In addition, OTE
offers wireline services in Romania through Telecom Romania. OTE
is also involved in a range of other activities in Greece,
notably in real estate. OTE owns 100% of Germanos, the largest
distributor of technology-related products in southeast Europe.
OTE's major shareholder is Deutsche Telekom with an equity stake
of 40%.


LANDSVIRKJUN: Moody's Affirms Ba2 Debt Ratings, Outlook Positive
Moody's Investors Service revised Landsvirkjun's rating outlook
to positive from stable. Concurrently, Moody's has affirmed all
the company's un-guaranteed ratings, including the (P)Ba2/(P)NP
ratings of the US$1 billion EMTN program and the company's Ba2
senior unsecured debt ratings. In addition, Moody's has affirmed
the (P)Baa3/(P)P-3 backed senior unsecured rating of the US$2.5
billion EMTN program and the Baa3 ratings of the debt issued
thereunder, all benefitting from a guarantee of collection from
the Government of Iceland (Baa3 stable).

The change of outlook to positive acknowledges the progress
Landsvirkjun has made with regard to improving its business
fundamentals and strengthening its financial profile over the
recent past and the increased likelihood that the company will
meet Moody's ratio guidance for a Ba1 rating of the unguaranteed
debt in the next 12 to 18 months.

The majority of Landsvirkjun's energy generation is sold to power
intensive industrial customers through long-term take-or-pay US
dollar-denominated contracts that provide valuable foreign
currency earnings, but at the same time expose the company to an
additional source of volatility as half of its contracted volume
is directly linked to aluminium prices.

Moody's recognize that Landsvirkjun's financial profile has
steadily improved over the last years, underpinned by solid
operating performance and management efforts to reduce exposure
to commodity and financial market risks. In particular, after the
renegotiation of the long term contract with Rio Tinto in 2010,
the implementation of a prudential pricing strategy for new
signed contracts and consistent hedging activities, revenue from
power sales has started to decouple from aluminium prices.
Moreover, the company has also made progress to reduce the
mismatch between its foreign currency income and its debt
servicing obligations, as well as decreasing the proportion of
liabilities with floating interest rates.

Since Landsvirkjun is 100% owned by the state, Moody's considers
the company to be a government-related issuer. Therefore, its
rating is determined by an assessment of its standalone credit
quality (expressed as a baseline credit assessment, or "BCA"),
and factors pertaining to the likelihood of extraordinary support
being provided by the Government of Iceland in the event this was
needed to avoid a payment default.

Landsvirkjun's BCA factors in positively (1) the company's
dominant position in the Icelandic energy market; (2) its low-
cost renewable generation asset base and minimal levels of
capital expenditure; and (3) its ability to generate relatively
stable cash flows. However, the company's assessment is
constrained by (1) Landsvirkjun's still high financial leverage;
(2) its concentrated exposure to a comparatively small number of
counterparties, mainly in the aluminium industry; (3) its degree
of exposure to aluminium prices in a weak commodity market; (4)
its foreign exchange risk; and (5) a considerable proportion of
outstanding debt linked to floating interest rates.

The company's (P)Ba2/(P)NP unguaranteed ratings incorporate two
notches of uplift from the company's BCA of b1 to reflect the
high level of commitment that Iceland has shown in the past to
support Landsvirkjun's debt and the strategic importance of
Landsvirkjun to the Icelandic economy.

The (P)Baa3/(P)P-3 guaranteed ratings reflect the additional
credit support provided by the guarantee of collection from its
owner and the expectation that the state is highly likely to
intervene in a timely fashion and provide financial or other
assistance to support notes issued thereunder if needed to ensure
timely payments.

The positive rating outlook reflects Moody's expectation that
Landsvirkjun will continue to improve its financial profile,
continue to reduce leverage and exposure to market risks and
prudently manage its liquidity position and capital expenditure

Moody's would consider an upgrade of the unguaranteed debt
ratings if (1) Landsvirkjun continues to demonstrate the ability
to withstand significant volatility in commodity and financial
markets and maintain its strong operational performance; and (2)
the company demonstrates a funds from operation (FFO)/ total debt
ratio greater than 10% on a consistent and sustainable basis,
while continuing to make progress in reducing leverage.
Additionally, an improvement in the Government of Iceland rating
would be required before Moody's would consider an upgrade of
Landsvirkjun's backed senior unsecured ratings that benefit from
a guarantee of collection from the state.

Given the positive outlook, downward rating pressure on the
unguaranteed ratings is not anticipated in the near term but
could develop as a result of (1) a substantial deterioration in
Landsvirkjun's operating performance, which would cause financial
metrics to materially deviate from Moody's expectation or
considerably increase funding requirements; and/or (2) if it
appears likely that the company's available liquidity were not
sufficient to insulate it from market risks, particularly in
relation to sudden movements in exchange rates, aluminium prices
or interest rates. The unguaranteed ratings would also come under
downward pressure if Moody's were to revise the current
assumption of a very high probability of timely support from the
government. Equally, the guaranteed ratings would be downgraded
if the rating of the Government of Iceland is downgraded.

The principal methodologies used in rating Landsvirkjun were
Unregulated Utilities and Unregulated Power Companies, published
in October 2014, and Government-Related Issuers, also published
in October 2014.

Landsvirkjun is Iceland's dominant power producer, responsible
for around 72% of Iceland's total electricity production of 18.1
TWh in 2014. The company currently operates 14 hydropower plants,
2 geothermal plants and 2 wind turbines with total installed
capacity of 1,960 MW. It provides 100% renewable energy for
domestic users via electricity sales to public utilities,
although the majority of sales are to power intensive industries,
mostly for aluminium smelting, under long-term take-or-pay
contracts. Additionally, Landsvirkjun is the majority owner
(64.7%) of Landsnet, which owns and operates the country's
electricity transmission system and is a fully regulated company.


CLAVERHOUSE: "Material Income" Reduction Spurs Liquidation
Richard Crump at Accountancy Age reports that partners from FRP
Advisory have been appointed joint provisional liquidators at
Claverhouse, one of the largest providers for Tayside, Scotland,
of employment support services to the unemployed.

Tom MacLennan and Iain Fraser were appointed to the Dundee-based
business after it went into liquidation on May 1, Accountancy Age

According to Accountancy Age, although Claverhouse had a source
of recurring income, it had become increasingly dependent upon
contractors to deliver enough placements to generate the levels
of income required, which reduced its to control pricing and
overall delivery of projects.  FRP, as cited by Accountancy Age,
said this resulted in a "material reduction" of income in recent

"As a result, Claverhouse will be unable to meet the direct costs
and overheads of the business with further significant losses
being anticipated in the next 12 months," Accountancy Age quotes
FRP as saying.

As part of the winding up process, discussions are taking place
with other contract providers in an effort to protect services
and, where possible, the employment of staff, Accountancy Age
relays.  Claverhouse employed 39 permanent staff with a further
13 staff on fixed term contracts, Accountancy Age discloses.

Founded in 1981, Claverhouse operated as a social enterprise and
charity through three companies that provided the unemployed with
employment training, interview training, work experience and job
placement services, in partnership with colleges, charities,
training enterprises, economic development agencies and local


PARMA FOOTBALL: Receivers Invite Expressions of Interest for Biz
Dott. Angelo Anedda and Dott. Alberto Guiotto, the receivers of
Parma Football Club S.p.A., in Bankruptcy Proceedings, invite all
interested parties to express their interest for the purchase of
the Sports Business as identified and evaluated in the appraisal
filed by prof. Fabio Buttignon and dott. Roberto Marrani on
April 14, 2015.

Expressions of interest may be submitted by collective Italian
enterprises in the form of limited liability companies or stock
corporations or by collective foreign enterprises in the form of
legal entities corresponding to limited liability companies or
stock corporations in their home countries.

The call for tenders, providing more detailed information
regarding the competitive selling procedure, is available on
Parma FC website at the following address:

This notice shall be deemed as an invitation to express interest
and is not an invitation to offer, nor an offer to the public
pursuant to Article 1336 of the Italian Civil Code, nor a public
solicitation to investors or public offering pursuant to Articles
No. 94 and subsequent, of the Legislative Decree No. 58 of 24
February 1998.


TAP-AIR PORTUGAL: Pilots Strike May Threaten Survival
Peter Wise at The Financial Times reports that pilots in dispute
over plans to privatize TAP-Air Portugal began a 10-day strike on
May 1 in a protest that the government and unions warn could
destroy the debt-laden national airline.

The stoppage, which could affect more than 2,700 flights and
300,000 passengers, is due to end days before a May 15 deadline
for investors to submit binding offers for TAP in Lisbon's second
attempt to sell off the struggling airline in two years, the FT

Trade union leaders representing about 500 pilots ignored
last-minute appeals from Pedro Passos Coelho, Portugal's prime
minister, and others to call off the stoppage that TAP said could
cause EUR70 million in direct losses, the FT relates.  Overall
losses to the economy including tourism are estimated at more
than EUR300 million, the FT notes.

The pilots' union is pressing for 10%-20% of TAP's capital to be
set aside for employees in the privatization, against 5% being
offered by the government, the FT says.

Other workers at TAP, which has more than 6,000 employees and is
a member of the Star Alliance of 26 carriers, have demonstrated
against the stoppage, the FT states.

Carlos Silva, head of the UGT trade union federation, as cited by
the FT, said the strike was "a step towards the abyss and the
destruction of the company".

Citigroup has declined to comment on reports that it will advise
on the sale of TAP to one or more buyers, which will have to take
on more than EUR1 billion in liabilities and agree to inject new
capital into the airline, the FT notes.

Portugal agreed with its international bailout lenders to sell
off TAP as part of a privatization program that has raised EUR8
billion since 2011, exceeding an initial target of EUR5.5
billion, the FT recounts.

According to the FT, the plan is to sell 66 per cent of the group
in a first phase, of which 5% will go to employees, and the
remaining 34% within the following two years.

The prime minister has warned that a failure to privatize TAP
could lead to massive job losses and oblige taxpayers to
recapitalize the national carrier, the FT relates.

TAP posted losses of EUR85.1 million in 2014 compared with a loss
of EUR5.9 million in 2013, the FT discloses.

TAP Portugal, founded in 1945 as Transportes Aereos Portugueses,
SGPS, S.A., commonly known as TAP, is the flag carrier airline of

S L O V A K   R E P U B L I C

VAHOSTAV: Creditors Agree to Write Off Two-Thirds of Debts
CIJ Journal reports that creditors of Vahostav, currently in
restructuring process, have agreed to write off two-thirds of the
company's debts.

The decision is yet to be approved by the court, CIJ Journal

The banks have reportedly given up EUR4 million, enabling
creditors to collect EUR180 per invoiced EUR1,000, CIJ Journal
discloses.  Vahostav, CIJ Journal says, will be making payments
in five annual payments starting on June 30, 2015.  Some of the
creditors, however, were not satisfied with the outcome and plan
to sue for a higher amount, CIJ Journal relays.

The court has yet to decide about Vahostav's restructuring plan,
CIJ Journal says citing

Vahostav is a Slovak construction company.


FAIRHOLD SECURITIZATION: Moody's Reviews Caa3 Notes for Downgrade
Moody's Investors Service has placed on review for downgrade four
classes of notes issued by Fairhold Securitisation Limited.

Moody's rating action is as follows:

  -- GBP329 million A Notes, B2 (sf) Placed Under Review for
     Possible Downgrade; previously on Jul 9, 2014 Downgraded to
     B2 (sf)

  -- GBP84.7 million A(N) Notes, B2 (sf) Placed Under Review for
     Possible Downgrade; previously on Jul 9, 2014 Downgraded to
     B2 (sf)

  -- GBP24 million B Notes, Caa3 (sf) Placed Under Review for
     Possible Downgrade; previously on Jul 9, 2014 Downgraded to
     Caa3 (sf)

  -- GBP5.8 million B(N) Notes, Caa3 (sf) Placed Under Review for
     Possible Downgrade; previously on Jul 9, 2014 Downgraded to
     Caa3 (sf)

The action reflects Moody's increased concerns regarding the
refinancing of the loan due in October 2015. In terms of asset
performance the transaction has been stable since the previous
downgrade of the notes in July 2014 and Moody's continues to
recognize the very good quality and predictability of the cash
flows derived from the ground rents. However, due to the
continued low interest rate environment, no material positive
developments are expected on the swap mark to market valuation
amount by loan maturity. Moody's will focus on these factors in
its review.

The principal methodology used in this rating was Moody's
Approach to Rating EMEA CMBS Transactions published in December

Other factors used in this rating are described in European CMBS:
2014-16 Central Scenarios, published in March 2014.

Main factors that could lead to a downgrade or an upgrade of the
rating are (i) the swap mark to market valuation and (ii) the
valuation of the underlying assets. Both factors are subject to
change; primary sources of assumption uncertainty are (i)
sensitivity of the swap mark to market amounts to future changes
in interest and inflation rates and (ii) sensitivity of asset
valuation to real interest rate expectations. The value
volatility of the assets is substantial due to the limited
evidence of large transactions in the investment market for
ground rent portfolios.

* UK: Number of Administrations Down to 432 in First Quarter 2015
The volume of companies that entered administration during the
first quarter of 2015 has fallen to around 432, a decline
year-on-year of 16.9% but a 9.2% rise quarter-on-quarter although
volumes overall are still at their third lowest for a quarter
since the third quarter of 2004 when they totaled 421, according
to FRP Advisory analysis of official statistics out on April 29.

Last year in 2014 second quarter, administrations totaled 403 and
in the October to December period they plumbed as low as 396,
revised figures from the Insolvency Service on April 29 reveal.

The analysis of official statistics by FRP Advisory, the
restructuring and advisory firm, point to a continuing
strengthening economy with property and leisure sectors following
the continuing strength of the services sectors, led by London
and the South-East.  The quarter on quarter pick up in
administrations points to large bumps remaining in the road ahead
for the UK economy with some industrial sectors affected by the
continued low oil price and supermarket-led price competition for
groceries and other consumer staples while the construction
industry continues to struggle in parts of the country.  The
slower than expected rise in GDP in the first quarter points to
all not being clear sailing ahead.

Highlights by numbers from the FRP Advisory analysis of q1 2015
and earlier official data include:

   -- 432 number of companies entering administration v 520 in q1
      2014, 396 in q4 2014

   -- 1,750: annual run rate of administrations for 2015,
      for any pre Xmas pick-up

   -- 1,790: annual administrations in 2014; 1602: annual
      administrations in 2004

   -- 4,822: annual administrations in 2008; 4161: annual
      administrations in 2009

Glyn Mummery -- -- partner at FRP
Advisory, said: "The annual decline in quarterly administrations
is a clear barometer of continuing improvement in overall
economic growth, mirroring the sharp year-on-year declines in
volumes of administrations seen in the final three months of
2014.  The latest January to March figures mark more than two
years of quarterly declines in administrations with quarterly
volumes for the past four successive quarters now averaging just
over 400, down from a recent peak of 779 in the first quarter of
2012.  The first quarter has shown one of the sharpest annual
declines since the advent in 2004 of the new turnaround culture
for businesses, when the Enterprise Act 2003 first came into
force.  The quarter on quarter rise in administrations points
however to certain parts of the economy failing to enjoy the
strong support services led economic boom while inevitably some
businesses struggle with cash-flow as they come out of a long
period of stagnation and enter periods of growth.  The
construction industry is still undergoing stress with
housebuilding volumes for example still a long way below their
pre 2008 highs.

There are still bumps ahead in key parts of the UK economy with
GDP growth slowing this year as predicted at the end of last
year, exacerbated by stress put on skilled manufacturing and
engineering jobs as oil and gas support services take the hit
from upstream explorers cutting back on capital expenditure in
the face of the new norm of low oil prices.  While low oil prices
may have given a boost to consumer spending, benefitting by price
stagnation or deflation, parts of the support services sector
dependent on the food industry will be taking the pain passed on
from a supermarket-led price war as retailers and wholesalers
feel pressure on their own margins.

Overall the annual decline in company administrations continues.
Last year the UK enjoyed an annual fall to 1,790 administrations
in 2014 compares to 2,365 companies in England and Wales that
entered administration in 2013.  We are now on track to come to
between 1700 and 1750 administrations in 2015 which, as we near a
general election, compares favorably with the annual peaks amid a
double dip recession in 2008 when they totaled 4,822, averaging
over 1200 a quarter, and in 2009 when administrations totaled
4,161, averaging over 1,000 a quarter.

FRP Advisory predicts that with further economic growth for the
year ahead, albeit it a slightly slower pace than last year, and
interest rates remaining benign until after the election, that
administration volumes will edge nearer to record low levels last
seen in 2004 when 1,602 companies filed for administration, a
year that marked the start of the modern turnaround culture under
the then newly created Enterprise Act."

* UK: Baker Tilly Responds to Latest Insolvency Statistics
Responding to the corporate insolvency statistics for England and
Wales released on April 29 by The Insolvency Service,
Graham Bushby -- -- Baker Tilly's
National Head of Restructuring and Recovery said:

"With company insolvencies at their lowest level since the fourth
quarter of 2007, the latest figures from the Insolvency Service
present a positive picture of corporate financial health in
England and Wales.  However, the statistics don't really tell the
whole story as there are many companies still experiencing
significant financial distress and a number of reasons why we
could see insolvency levels rising again within the next one to
two years.

"We have seen a trend for the banks to sell off their non-core
bad debt books to private equity groups.  As these groups work
through those debt books, they are prioritizing those firms that
they can realise assets from first.  However, as they start to
focus on the more distressed companies in the portfolios, they
may then be left with little choice but to enter them into some
kind of insolvency procedure.

"We are also seeing a significant number of companies servicing
their debts on an interest only basis.  By doing this many of
them are avoiding entering into insolvency procedures, but they
are also failing to pay off any capital.  If we see a rise in
interest rates and inflationary pressures beginning to emerge,
this could leave many companies in a vulnerable position.

"A more buoyant market also brings with it a risk of overtrading,
so companies need to keep a close eye on their cash position to
ensure they don't get into trouble."

* UK: Numbers of SME Food Suppliers in Financial Distress Up 120%
While most of the UK's largest supermarkets are embarking on
turnaround strategies in an attempt to claw their way back to
financial health, their means of slashing prices and delaying
payments is grinding many food suppliers and smaller high street
grocers to the ground, warns business recovery specialists
Begbies Traynor.

According to Begbies Traynor's Red Flag Alert research for Q1
2015, which monitors the financial health of UK companies, the
UK's food retailing industry continues to experience rising
"Significant" financial distress, increasing 66% to 4,696
struggling businesses over the past year (Q1 2014: 2,823).

However, the major casualty remains the UK's food and beverage
manufacturing industry.  Companies in this sector, many of which
supply the major UK headquartered supermarkets, continue to
experience "Significant" distress with 1,414 businesses now
struggling to make ends meet, compared to 728 at the same stage
last year; a devastating 94% increase.

Begbies Traynor warns that it is the SME food suppliers which are
really being flattened by this new savage landscape in the UK
retail food industry, as "Significant" distress among this group
of businesses has increased by 120% year on year, from 574 SMEs
to 1,267.

Julie Palmer -- -- Partner and
retail expert at Begbies Traynor, said:

"The four main UK supermarkets continue to cut prices as a core
component of their turnaround strategies and with Tesco expected
to announce positive progress at its full year results on
April 22, this price slashing practice seems to be working for
them.  However, these mass price reductions have severe
consequences for less established food retailers and suppliers,
particularly SME's, who now seem to be locked in a David and
Goliath-style battle; although this time it appears David can't

"With GBP1 deals for fresh produce goods such as bread and milk
remaining a firm feature at the major supermarkets, it's no
wonder that suppliers lower down the food chain are struggling to
achieve a fair price for their produce.  Meanwhile, wastage on
farms continues to be a problem as suppliers are increasingly
struck by last-minute order cancellations and overzealous
cosmetic specifications set by the large supermarkets when it
comes to the look of food that it will accept from farmers.

"Looking to the future, the picture only gets bleaker for small
UK food suppliers, as German discounters, Aldi and Lidl, are
predicted to capture 20% of UK market share.  As the majority of
Aldi and Lidl's packaged stock comes from overseas, struggling UK
suppliers could find themselves squeezed even further, if not
stamped out altogether.

"The introduction of the Prompt Payment Code and the powers given
to the groceries code adjudicator to fine supermarkets in breach
of the Grocery Supply Code of Practice have only had a minimal
impact, and these latest Red Flag figures indicate that they may
simply be too little too late for many in the SME supply chain."


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 * * *