TCREUR_Public/150508.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

             Friday, May 8, 2015, Vol. 16, No. 90



ANTELOPE HOLDCO: Moody's Assigns Definitive 'B3' CFR


CORPORATE COMMERCIAL: Goranov Reveals Details of Current Status


AREVA SA: To Cut 6,000 Jobs, Rescue Options Narrow


NESCHEN AG: Insolvency No Effect on UK Distributor's Services
SOLAR-FABRIK AG: Delays Publication of 2014 Annual Report


GREECE: Repays EUR200MM to IMF; Parallel Currency Possible Option


ATLANTE FINANCE: Fitch Affirms 'BBsf' Rating on Class C Notes
MARCOLIN SPA: Moody's Changes Outlook to Neg. & Affirms B2 CFR
SAFILO SPA: Moody's Raises CFR to 'Ba3', Outlook Stable


KOMMESK-OMIR JSC: Moody's Withdraws B3 IFSR for Business Reasons


PENTA CLO 2: Fitch Assigns 'B-' Rating to Class F Notes


ASTRA ASIGURARI: Up to 5 Investors Interested in Insurer


MAGNITOGORSK IRON: Fitch Affirms 'BB+' IDR, Outlook Stable
SEVERSTAL OAO: Fitch Revises Outlook to Pos. & Affirms 'BB+' IDR


BABYLON IDIOMAS: Enters Insolvency; Closes All Centers


GATEGROUP HOLDING: S&P Affirms 'BB-' Rating, Outlook Positive


BANKA KOMBETARE: Fitch Affirms, Then Withdraws 'B' IDR


DELTA BANK: Depositors Hope For Law that Will Return Deposits
DTEK ENERGY: Moody's Assigns Ca-PD/LD Rating & Affirms Ca CFR

U N I T E D   K I N G D O M

BILTA UK: Liquidators Can Go After Former Directors
CLOSED LOOP: Euro Capital Buys Firm to Keep the Business Going
HIGHTEX: Falls Into Administration
JOHNSTONE'S JUST DESSERTS: Finsbury to Buy Firm, Saves 150 Jobs
PC HARRINGTON: KPMG Administrators Step in to Take Charge

PREMIERE PRODUCTS: Could Move to Manchester at Cost of 48 Jobs
SOUTHDALE LIMITED: Sowerby & Leeming Homes Delayed After Closure
TULLIS RUSSELL: Administrators Set May 18 Deadline for Offers
VEDANTA RESOURCES: Moody's Says FY2015 Results Met Expectations
WARWICK FINANCE: Moody's Rates GBP46.55MM Class F Notes 'B3'

WARWICK FINANCE: S&P Assigns 'BB' Rating to Class F Notes


* BOOK REVIEW: The Money Wars



ANTELOPE HOLDCO: Moody's Assigns Definitive 'B3' CFR
Moody's Investors Service assigned a definitive B3 Corporate
Family Rating to Antelope Holdco S.A., the ultimate parent of
Azelis S.A. Concurrently, Moody's has assigned a B3-PD
Probability of Default Rating to the company and definitive B3
and Caa2 ratings to the first-lien and second-lien facilities
borrowed by Antelope Bidco S.A. The outlook on all ratings
remains stable.

The final terms of the facilities are in line with the drafts
previously reviewed to assign the provisional ratings and the
transaction has now received the required regulatory and
customary approvals.

The PDR at B3-PD, in line with the CFR, reflects Moody's
assumption of a 50% family recovery rate given the capital
structure consists of a mix of first and second lien facilities.

The first-lien facilities all have B3 ratings, in line with the
CFR, as they account for the majority of the debt. The $60
million second-lien facility has a Caa2 rating, two notches below
the CFR as it ranks behind the first lien debt.

Antelope's stable outlook reflects Moody's view that the company
will continue to operate at satisfactory (albeit weak) margin
levels, reduce leverage going forward and maintain an adequate
liquidity position.

The ratings could be upgraded if Antelope were to sustain (1)
Moody's adjusted debt/EBITDA around 5.0x; (2) Moody's adjusted
EBITDA margins at approximately 6%; and (3) positive free cash
flow. Conversely, the ratings could be downgraded if Antelope's
EBITDA margin falls to 5.0%, if debt/EBITDA is sustained above
6.5x, free cash flow turns negative or if liquidity deteriorates.

The principal methodology used in these ratings was Global
Distribution & Supply Chain Services published in November 2011.
Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.

Headquartered in Antwerp, Belgium, Azelis is a leading pan-
European specialty chemical distributor. In fiscal year-end
December 31, 2014, Atlas reported revenues and EBITDA after non-
recurring items of EUR791 million and EUr36 million respectively.


CORPORATE COMMERCIAL: Goranov Reveals Details of Current Status
FOCUS News Agency reports that Bulgarian Minister of Finance
Vladislav Goranov said, "Actions of the assignees at Corporate
Commercial Bank are not against several cameras or a media; they
are against huge debts amassed in the course of years on the
basis of a non-commercial principle".

At the sitting of the government on May 7, Mr. Goranov presented
information about the state of CorpBank, in insolvency, and the
work of the Bulgarian Deposit Insurance Fund in connection with
collecting property that is to be recovered in CorpBank's
insolvency mass, FOCUS News relates.

              About Corporate Commercial Bank AD

Corporate Commercial Bank AD is the fourth largest bank in
Bulgaria in terms of assets, third in terms of net profit, and
first in terms of deposit growth.

Bulgaria's central bank placed Corpbank under its administration
and suspended shareholders' rights in June 2014 after a run
drained the bank of cash to meet client demands.

bne IntelliNews reports that shareholders of Corporate Commercial
Bank, once Bulgaria's fourth largest by assets, are threatening
to sue the state for compensation for allegedly bringing about
the bank's collapse.

The report relates that a lawyer representing fugitive Bulgarian
tycoon Tsvetan Vassilev, the largest shareholder in Corpbank,
which was declared insolvent on April 22, has claimed that a
fellow shareholder, the Omani State General Reserve Fund (SGRF),
has filed a EUR700 million lawsuit against Bulgaria.

In a statement made to Bulgarian broadcaster TV7 on April 27,
Konstantin Simeonov said SGRF's claim had been filed in an
unspecified European country, citing the fund's distrust of the
Bulgarian legal system, according to the report.

No official confirmation of the claim has been made by either the
Bulgarian authorities or the SGRF, which indirectly holds a
30.35% stake in Corpbank via Luxembourg-registered Bulgarian
Acquisition Company II S.a.r.L., and Mr. Simeonov did not explain
why he was the one to announce the news, the report states.

bne IntelliNews notes that Corpbank was taken under central bank
administration in June 2014 after a run on the bank promoted by
corruption rumours in several Bulgarian media outlets. There is
also speculation that the bank's demise was hastened by large
withdrawals of deposits by state-controlled enterprises, the
report says.

Bulgarian Acquisition Company acquired its stake in Corpbank in
January 2009, and is currently the bank's second largest
shareholder after Mr. Vassilev's investment vehicle Bromak. In
September 2014, SGRF proposed a bailout deal for Corpbank,
according to the Bulgarian National Bank (BNB). If adopted, the
plan would have used mainly Bulgarian taxpayers' money to
restructure the bank. Corpbank's third biggest shareholder --
sanctions-hit Russian state-owned VTB Bank with a 9.07% stake --
has kept a low profile after saying in June that it had no plans
to provide liquidity or capital to the troubled bank.

The report relates that in addition to the alleged claim from
SGRF over Corpbank, Mr. Vasilev said in a statement published on
his personal website that he planned to take Bulgaria to court.
He claimed in the statement that Corpbank was "intentionally
attacked with the active cooperation of a number of governmental
authorities and institutions, so as to lead it to an artificial
bankruptcy," the report relays.

In particular, Mr. Vasilev used the site to lash out at central
bank governor Ivan Iskrov and questioned why the BNB granted
liquidity support to First Investment Bank, also the victim of a
bank run in mid-2014, but not Corpbank, says bne IntelliNews.

According to the report, Mr. Simeonov has been at the centre of a
PR offensive over the last few days. A video showing Vassilev and
Iskrov dancing and singing a popular Bulgarian national song at a
party was released the day after the Sofia City Court's judgement
on Corpbank's insolvency and broadcast on one of Nova TV's most
popular shows. After the video flooded social media, Mr. Simeonov
appeared on several other TV shows, warning that more videos
showing close links between Mr. Vassilev other public figures
could be forthcoming.

The report relates that Mr. Vassilev fled to Belgrade in
September, and the Serbian authorities have so far resisted
requests for his extradition. Another of Mr. Simeonov's claims is
that Mr. Vassilev recently received a death threat and has since
been unable to leave his hotel, bne IntelliNews says.

Further controversy surrounds the Sofia City Court's decision in
its April 22 ruling to set the date of the bank's insolvency at
the latest possible date of November 6 -- the day the BNB revoked
its licence, the report states.

According to the report, the BNB said on April 24 that it will
challenge the court's decision on the date of insolvency. "The
position of the central bank is that the starting date of
insolvency should be September 30, 2014, when [Corpbank] reported
negative equity and negative capital adequacy," the central bank

The report notes that the decision to set November 6 as the date
of insolvency means that transactions with an estimated value of
around EUR450 million made before that date will most likely be
considered legally valid, thus favouring selected depositors and
reducing the chances for other creditors, including the largest
-- the Bulgarian state Deposit Insurance Fund -- to recover
their money.


AREVA SA: To Cut 6,000 Jobs, Rescue Options Narrow
Michael Stothard at The Financial Times reports that Areva SA
will be cutting 6,000 jobs over three years -- 14% of its global
workforce -- as options for a government-backed rescue
package begin to narrow.

According to the FT, Areva, which reported a EUR4.8 billion loss
last year, said it was also lowering wages for surviving staff in
an attempt to deliver the bulk of a EUR1 billion cost reduction

However, the state-controlled group, which has seen its equity
capital fall to nearly zero after four years of losses, is
continuing to negotiate an even more radical restructuring plan
with Electricite de France and the French government, the FT

According to the FT, sources close to the discussions said that
these talks now focus on just two remaining options, and a final
decision will be made in the coming months.

Under the first option, EDF, which is 85% government owned, would
acquire the nuclear reactor and engineering businesses of Areva,
taking control of the process of designing and building new
reactors as well as maintaining existing plants, the FT

Under a second, simpler, option -- which people close to the
talks say is preferred by the managements of Areva and EDF --
only the smaller engineering business of Areva would be sold to
EDF, the FT states.

However, people with knowledge of the government's thinking, as
cited by the FT, said the state would ultimately decide the
course of action, as it owns the majority of both Areva and EDF.

Areva SA is a France-based company that offers technological
solutions for nuclear power generation.  The Company operates
five business divisions, Mining engaged in uranium mines
exploration and operation activities; Front End, which converts
and enriches the uranium and designs the fuel for the nuclear
reactors; Reactors and Services, which includes activities of
design, construction, propulsion and research of reactors, as
well as maintenance of nuclear power plant; Back-End, which
recycles used fuel and provides transport, clean-up and
dismantling services and Renewable Energy, specialized in
development of wind energy, bioenergy, solar power and hydrogen
power solutions.  The Company is present in France, Asia-Pacific
Region, Americas, Africa and Middle East Region through its
subsidiaries, including Areva Mines and KATCO, among others.  The
major shareholder of the Company is Commissariat a l'Energie


NESCHEN AG: Insolvency No Effect on UK Distributor's Services
Sarah Cosgrove at PrintWeek reports that the exclusive UK
distributor of Neschen AG products has said that service will not
be affected following insolvency proceedings of the company in

Neschen has filed for self-administered insolvency proceedings
after struggling with debt repayments, the report says.

PrintWeek relates that the process allows a company to undergo a
formal restructuring and insolvency process through the court
system. If it meets certain requirements, the court must allow it
three months for the process under German law.

According to the report, the management team remains in charge of
the company but insolvency specialist Dr. Bettina Breitenbucher
will work with chief executive Henrik Felbier as a chief revenue
officer. The management will work together with creditors and the
works council to draw up a restructuring plan, the report notes.

PrintWeek says Nottinghamshire-based ArtSystems became the UK
exclusive wholesaler this month following the administration of
parts of Paperlinx earlier this month.

The report relates that ArtSystems managing director Steve Hawker
said he was confident that it would be business as usual after
speaking with senior management at Neschen.

"We are still placing orders and receiving deliveries as normal.
Their announcement of self-administered insolvency will not
affect ongoing supply of Neschen product here in the UK. We
understand this is a necessary step to allow them to complete
their restructuring and expect Neschen AG to emerge a stronger
company at the end of the process," the report quotes Mr. Hawker
as saying.  "I do trust Henrik and I think he's a very capable
As reported in the Troubled Company Reporter-Europe on April 20,
2015, the managing board of Neschen AG filed for the opening of
self-administered insolvency proceedings with the responsible
local court in Bueckeburg on April 17 in order to be able to
continue the restructuring process autonomously.  This does not
affect the operative business of Neschen.  The European
distribution companies are not affected by the insolvency.

The Bueckeburg Local Court -- Insolvency Court -- granted the
application on April 17 and permitted self-administered
preliminary insolvency proceedings to facilitate the
restructuring of the company.  Arndt Geiwitz of Schneider Geiwitz
& Partner was appointed provisional trustee of creditors.
Headquartered in Bueckerburg, Germany, Neschen AG -- develops, produces and markets
innovative coated self-adhesive and digital print media
worldwide, together with their processing machines and
presentation systems.

SOLAR-FABRIK AG: Delays Publication of 2014 Annual Report
Solar Server reports that Solar-Fabrik AG will again postpone the
publication of its 2014 consolidated annual report, the company
related in an Ad hoc announcement.

Solar-Fabrik said the 2014 consolidated annual report cannot be
published by April 30, 2015 because it must consider the
consequences of the insolvency process in self-administration,
the report relays.

The PV producer filed for insolvency proceedings in self-
administration at the Local Court of Freiburg, on Feb. 2, 2015. A
corresponding resolution was adopted by the Managing Board and
approved by the Supervisory Board on Jan. 29, 2015.

The company filed for insolvency, since an insolvency situation
due a shortage of liquidity could occur in the course of the
second quarter 2015, the report notes.

Solar-Fabrik AG -- is a
German PV module manufacturer.


GREECE: Repays EUR200MM to IMF; Parallel Currency Possible Option
The Associated Press reports that cash-strapped Greece scraped
together a EUR200 million (US$222 million) repayment to the
International Monetary Fund on May 6 amid signs its long-stalled
bailout negotiations were making some progress.

The payment came as Greek government officials continued their
whirlwind European tour and Prime Minister Alexis Tsipras spoke
to French President Francois Hollande on how to push matters
forward, The AP relates.

Greece has a much larger commitment of about EUR770 million to
make to the IMF on Tuesday, May 12, The AP discloses.  All
indications are it will struggle to make that payment as well as
meet some pensions and salaries due later that week, The AP

A potential Greek debt default could set off a chain reaction
that jeopardizes its membership in Europe's joint currency and
roils the global economy, The AP states.

Hence the importance of reported progress in Greece's talks with
representatives from the European Commission, European Central
Bank and IMF that could spill into the May 11 meeting of the
eurozone's 19 finance ministers, The AP says.

Greece's left-wing government has been locked in negotiations
with its creditors for the past three months over reforms
required to unlock the remaining EUR7.2 billion installment of
its EUR240 billion bailout, The AP relates.

In Brussels, technical talks that started last week were extended
beyond May 6 amid hopes for a breakthrough, The AP discloses.  A
eurozone official, who asked not to be identified because the
negotiations were ongoing, confirmed there was now visible
progress after the talks had been bogged down for weeks, The AP

Meanwhile, Greek Finance Minister Yanis Varoufakis was in Rome to
discuss the issue with his Italian counterpart Pier Carlo Padoan,
before heading to Madrid today, May 8, to meet his peer Luis de
Guindos, The AP notes.

                          Red Line

Meanwhile, BBC News reports that the Greek government will stick
to the "red line" promises it made to its electorate and not make
concessions in negotiations with creditors.

Spokesman Gabriel Sakellaridis told the press in Athens that
labor and pension issues are non-negotiable, BBC relates.

Talks with the IMF and EU will continue over the weekend, BBC

Creditors have demanded cuts in spending, including plans to trim
the civil service and privatization of state assets, in order for
Greece to continue receiving loans, BBC discloses.

                      Parallel Currency

The Telegraph's Szu Ping Chan reports that Greece could start
using a "parallel currency" to pay its civil servants if it runs
out of cash, one of the European Central Bank's board members has

Highlighting the desperate situation faced by the country, Yves
Merch, a member of the ECB's executive board and governor of
Luxembourg's central bank, told Spanish newspaper La Vanguardia
that Greece could resort to using "exceptional tools" to pay its
obligations, The Telegraph relates.

According to The Telegraph, Mr. Merch told the newspaper "There
are intermediate solutions circulating, such as the issuance of a
parallel currency or IOUs."

"All these measures are among the exceptional tools that any
government can consider if it has no other options.  But all of
them have a high cost."

The ECB has already analyzed how such a scenario could play out.
Officials told Reuters in April that creating a virtual second
currency within the eurozone might not be enough to keep Greece
in the 19-nation bloc, The Telegraph relays.

Analysis showed around 30% of Greeks would end up receiving such
"IOUs" rather than cash, which would put further pressure on
Greek banks as workers dipped into their savings, The Telegraph

Billions of euros have been pulled out of Greek banks since the
end of last year, which has left banks reliant on a drip-feed of
liquidity from the ECB, The Telegraph notes.


ATLANTE FINANCE: Fitch Affirms 'BBsf' Rating on Class C Notes
Fitch Ratings has taken multiple rating actions on Atlante
Finance S.r.l.'s and SME Grecale S.r.l.'s notes as:

Atlante Finance S.r.l.:

Class A notes (ISIN IT0004069032): upgraded to 'AA+sf' from
'AAsf'; Outlook Stable

Class B notes (ISIN IT0004069040): affirmed at 'AAsf'; Outlook

Class C notes (ISIN IT0004069057): affirmed at 'BBsf'; Outlook
revised to Negative from Stable

SME Grecale S.r.l.:

Class A notes (IT0004818263): affirmed at 'AA+sf'; Outlook Stable

Atlante Finance srl (Atlante) is a securitization of a mixed
portfolio comprising (i) loans to Italian SMEs backed by
mortgages on residential and/or commercial properties (commercial
sub pool), (ii) residential mortgage loans to individuals
(residential sub-pool) and (iii) unsecured loans to Italian local
public entities (municipalities, provinces and small companies or
utilities owned by them).  As of Dec. 31, 2014, commercial loans
accounted for 55.9% of the total pool balance, residential loans
42.9% and loans granted to Italian public entities 1.2%.

SME Grecale S.r.l. (Grecale) is a securitization of loans to
Italian SMEs backed by first-lien mortgages on residential and/or
commercial properties (79.5% of the performing and delinquent
pool balance as of 28 February 2015) with the rest of the pool
composed of second-lien (or higher) mortgages and unsecured

Loans in both transactions are originated and are serviced by
Unipol Banca SpA.


Available Credit Enhancement (CE)

The upgrade of the Atlante's class A notes reflects an increase
in CE over the last 12 months following the transaction's
deleveraging and the short expected remaining life of the class A
notes.  Available CE for the class A notes, based on the total
pool balance including the outstanding amount of defaulted
assets, increased to 93.7% in April 2015 from 81.5% in April
2014.  Based on the amortization of the portfolio, the class A
notes are expected to be repaid in full by year-end.

The affirmation of Atlante's class B notes with Stable Outlook
reflects an increase in CE for this class of notes to 85.6% in
April 2015 from 74.4% in April 2014.  Fitch sees the increase in
the current available support as an adequate mitigating factor to
the volatile performance over the last 12 months, due to high
single obligor concentration in the portfolio.

The revision of the Outlook to Negative for Atlante's class C
notes reflects an increase over the past 12 months in defaulted
assets as a share of the pool balance to 48% from 36.6% and an
increase in the unpaid principal deficiency ledger amount to
EUR97.3 million from EUR77.9 million.  This makes the class C
notes' rating reliant on the amount of recoveries still to be
received from the outstanding defaulted assets, considering the
CE, based on the total pool balance including the outstanding
amount of defaulted assets, increased to only 46.8% from 40.4%.

The affirmation of Grecale's class A notes reflects strong CE for
this class, which reached 97.8% in March 2015, up from 85.9% in
June 2014, and its stable performance over the past one year.

High Concentration for Atlante

As at Dec. 31, 2014, the largest obligor group and the top 10
obligor groups accounted for an estimated 13.3% and 20.4%,
respectively, of Atlante's performing and delinquent balance.

The high single obligor concentration is the main reason for
Atlante's performance deterioration over the last 12 months.  As
at Dec. 31, 2014, all loans granted to the top two obligors (both
belonging to the same group) were in arrears by more than 90 days
and were classified as defaulted in February 2015.

As a consequence, the cumulative default since transaction
closing in May 2006 increased to 18.7% in March 2015 from 16.2%
in March 2014.  The share of loans past due by more than 90 days
in Atlante's performing and delinquent balance increased to 14.2%
in December 2014 from 1.9% in March 2014 before falling to 0.7%
in March 2015, after the loans extended to the top two obligors
defaulted in February 2015.

Stable Recoveries from Atlante

Atlante is benefiting from increasing recoveries, albeit at a
slow pace.

As of Dec. 31, 2014, cumulative recoveries over cumulative
defaults since closing stood at 47.4%, up from 42.7% in March
2014, with the majority coming from the defaulted loans
classified by the servicer in the commercial sub-pool.  The
weighted average recovery rate for the commercial sub pool was
49.8% in December 2014, up from 44.3% in March 2014.

The recovery rate fell to 42.6% in March 2015 due to the jump in
cumulative defaults following the default classification of all
the loans extended to the top two obligors.

Stable Performance for Grecale

Defaults and delinquency rates have stabilized for Grecale during
the last 12 months.  The average annualized quarterly defaults
rate was 3.9% during 2Q14-1Q15 which compares with 8.2% during
2Q13-1Q14.  Loans in arrears by more than 90 days stood at 2.1%
of Grecale's performing and delinquent balance in March 2015,
down from 2.9% in June 2014.  In March 2015, reported cumulative
defaults since transaction closing in June 2012 were 10.8% of the
initial portfolio balance, up from 8.9% in June 2014.


Changes to Italy's Long-term Issuer Default Rating (BBB+/Stable)
and the rating cap for Italian structured finance transactions,
currently 'AA+sf', could trigger rating changes on the class A
notes of both transactions.

The class A notes of both transactions are resilient to high
stressful scenarios.  Assuming no recoveries on already
outstanding defaulted loans, an increase in the probability of
default of each obligor in the two portfolios or reducing
recoveries on expected defaults by 25% each would not affect the
class A notes' ratings.

Atlante's class B and C notes' ratings are sensitive to the
amount of recoveries that are still expected to come from
outstanding defaults.  Zero recoveries on outstanding defaulted
loans would result in the class B notes being downgraded by three
notches and the class C notes by two rating categories.  If Fitch
further assumes a 25% increase in the probability of default of
each obligor in the portfolio, the class B and C ratings would be
downgraded by a further notch.

MARCOLIN SPA: Moody's Changes Outlook to Neg. & Affirms B2 CFR
Moody's Investors Service changed to negative from positive the
outlook on Marcolin S.p.A. B2 corporate family rating, B2-PD
probability of default rating (PDR) and B2 senior secured rating
to the group's EUR200 million of notes due 2019. Concurrently,
Moody's has affirmed these ratings.

"The decision to change the outlook to negative on Marcolin's
ratings reflects the liquidity deterioration and the slower-than-
anticipated deleveraging, despite the successful integration of
Viva. Although Moody's still expect that the company will reduce
its financial leverage over time, Moody's now expect that
financial leverage, measured by the ratio debt/EBITDA, adjusted
for operating leases and pension deficits, will remain close to
5.5x over the next 12-18 months, a level that is high for the
current rating", said Lorenzo Re, a Moody's Senior Analyst - Vice
President and lead analyst for Marcolin.

In 2014, Marcolin's free cash flow was approximately negative
EUR33 million, significantly worse-than-anticipated by Moody's,
despite the 4.6% (5.1% at constant exchanges rates) sales growth
(EUR362 million from EUR346 million pro-forma for Viva
acquisition in 2013) and the improvement in the adjusted EBITDA
(EUR43.8 million from EUR38.8 million in 2013 pro-forma).
However, cash generation was burdened by (1) a number of one-off
costs, partly related to some license agreement renegotiations,
which will have a positive impact on profitability and cash
generation in coming years; (2) worse working capital absorption,
owing to inventory built-up to support the introduction of a new
licensed brand in 2015; and (3) higher capex and investments into
new initiatives (i.e., commercial joint ventures and production
capacity expansion in Italy).

As a result, gross debt was materially higher than expected, as
Marcolin also draw EUR20 million from its EUR25 million RCF. This
also reduces the company's available liquidity and financial
flexibility. Moody's adjusted debt/EBITDA at 2014 was
approximately 5.7x, which is high for the current rating. The
current rating still assumes that Marcolin will reduce its
financial leverage over the next 12 to 18 months. However,
Moody's now assumes that this process will be slower than
previously anticipated, with leverage remaining close to 5.5x
over the next 12-18 months.

Marcolin's B2 CFR reflects the group's strong geographic and
product diversification. However, the rating is constrained by
the group's modest size, the exposure of some of its products to
discretionary spending, and the risk of licenses not being

Following the acquisition of the US-based eyewear wholesaler
Viva, competed in 2013, Marcolin became the 4th largest producer
in the global eyewear sector and significantly improved its
business profile thanks to (1) a better geographic
diversification (with the US and Europe representing respectively
39% and 36% of revenues); (2) a balanced product offering of
sunglasses and prescription glasses (representing respectively
49% and 51% of group revenues); and (3) a wider product offering,
with a mix of high-end and mainstream brands and good coverage
across price segments.

However, Marcolin still has some concentration risks, as two core
brands generate approximately 50% of its revenues, while its top
five brands represent almost 70% of revenues. In addition,
Marcolin lacks significant proprietary brands (the company's own
brand, Web, generates only marginal revenue), that exposes the
company to the risk of license renewal. However, this is
mitigated by the company's longstanding and stable relationships
with licensed brands, by its positive track-record in obtaining
new licenses and by the fact that Marcolin's three largest brand
licenses will expire after the maturity of the notes, providing a
degree of revenue visibility.

The negative outlook on the ratings reflects Moody's expectation
that Marcolin's financial leverage will only marginally improve,
remaining close to 5.5x over the next 12-18, despite the expected
further improvement in the company's operating performance. The
negative outlook also reflects the deterioration in Marcolin's
liquidity, due to the limited availability under the RCF and
tightening headroom under financial covenants.

Sustained improvement in operating performance leading to an RCF
to net debt in the high teens and a track record of positive free
cash flow generation could result in a rating upgrade. Downward
rating pressure could arise if the group's operating
profitability or liquidity profile deteriorates, or if prolonged
negative free cash flow results in a failure to reduce financial
leverage below 5.5x.

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

Founded in 1961 and based in Italy, Marcolin S.p.A. is a leading
designer, manufacturer and distributors of eyewear. During 2014,
the group generated EUR362 million of revenues, and EUR44 million
of EBITDA excluding one-off and exceptional items.

SAFILO SPA: Moody's Raises CFR to 'Ba3', Outlook Stable
Moody's Investors Service upgraded Safilo S.p.A.'s corporate
family rating to Ba3 from B1 and its probability of default
rating to Ba3-PD from B1-PD. Concurrently, the rating agency
changed the outlook on all ratings to stable from positive.

"Our upgrade of Safilo's ratings reflects the company's stable
operating performance and solid financial metrics," says Lorenzo
Re, a Moody's Vice President - Senior Analyst and lead analyst
for Safilo. "We expect that Safilo will maintain a sound
financial profile in the next few years, although the termination
of the Gucci license at end-2016 will pose some challenges, even
if we do not believe it will prompt a fundamental change in the
industry's fundamentals or company's business model."

The rating action reflects Safilo's resilient operating results
in the last 12-18 months and its solid credit metrics. Safilo
leverage (measured as Moody's adjusted debt/EBITDA) of 3.2x and
retained cash flow (RCF)/net debt of 19.7% in 2014 are strong for
the current rating. Moody's expects that the company operating
performance will remain solid in 2015 and 2016, with revenue
growing at mid-single digits, boosted by (1) favorable market
trends in North America (representing approximately 40% of
Safilo's sales); (2) solid growth of recently acquired licensed
brands (Fendi) and future licensed brands (from 2016, Givenchy);
and (3) the company's continued efforts to expand into new
markets and channels. While increased marketing expenses to
support Safilo's proprietary brands could exert some pressure on
margins, Moody's expects EBITDA to continue to grow in the next
12-18 months and cash generation to improve. This growth will
also be boosted by the compensation from Kering for the early
termination of the Gucci license (EUR90 million, of which EUR30
million paid in January 2015 and the rest to be paid in 2016 and

The termination of the license agreements with the Kering group,
and particularly the Gucci license, is a major issue for Safilo.
At this stage, Moody's do not believe that Kering decision will
be followed by other luxury brands, that could threaten Safilo's
business model. Independent eyewear producers still have a
competitive advantage compared to luxury brands in terms of
distribution network (especially for prescription frames) that
makes the license-based model more efficient.

Moody's expects that Safilo sales and recurring EBITDA will
materially drop in 2017 as a consequence of the loss of the Gucci
license, which is assumed to currently account for approximately
20% of Safilo sales. However, apart from the non-recurring
compensation from Kering to be accounted through P&L in 2017 and
2018, part of the loss will be offset thanks to (1) the
production agreement signed between Safilo and Kering and (2)
organic growth of other brands, particularly proprietary brands.
Overall, the company's credit metrics will likely remain solid
and comfortably in line with the current rating.

The ratings incorporate some moderate M&A risk, which has
increased since the termination of the Gucci license. Safilo's
business plan through 2020 does not entail any external growth.
However, small acquisitions with a strong strategic fit in the
company's brand and markets portfolio could be possible, and
could be largely financed by Safilo's internally generated cash
flows, with a limited impact on leverage. In contrast, a large
debt-funded acquisition could be credit negative, although such
an impact is unlikely.

Lastly, the current ratings reflect Moody's expectation that
Safilo will maintain a prudent financial policy, in line with the
past few years. In particular, the agency assumes that Safilo
will continue to pay no or very modest dividends in the next few

The stable outlook on the ratings reflects Moody's view that
Safilo will be able to maintain solid credit metrics, with
debt/EBITDA at or below 3.0x and RCF/net debt above 20%, despite
the expected deterioration in 2017 from the Gucci license

An upgrade of the ratings is unlikely before 2017, as Moody's
would wait to see the impact of the termination of the Gucci
license before considering any potential upward pressure. Moody's
could consider an upgrade if Safilo's operating performance were
to improve further, with continuing improvement in operating
profitability, while maintaining leverage at a low level, with
debt/EBITDA remaining materially below 3x and positive free cash
flow to debt in the mid-teens. In addition, Moody's would require
an improvement in the group's business profile, with lower
dependence from licensed brands and lower revenue concentration
in terms of brands.

Negative pressure on the ratings could arise following a
deterioration in the operating performance, with sustained
negative free cash flows or an increase in the financial leverage
with the debt/EBITDA ratio increasing to above 3.5x.

The principal methodology used in these ratings was Consumer
Durables Industry published in September 2014.

Headquartered in Padua, Italy, Safilo S.p.A. is a global
manufacturer and seller in the premium eyewear sector, offering a
strong portfolio of both owned and licensed brands. The group
sells sunglasses, prescription glasses and sport-specific eyewear
in more than 130 countries. In fiscal year 2014, Safilo reported
sales of EUR1,179 million and EBITDA of EUR111 million.


KOMMESK-OMIR JSC: Moody's Withdraws B3 IFSR for Business Reasons
Moody's has withdrawn Kommesk-Omir Insurance Company JSC's B3
insurance financial strength rating (IFSR) and NSR
Insurance Financial Strength for its own business reasons. Prior
to withdrawal, the B3 global IFS rating had a stable outlook.

Moody's has withdrawn the rating for its own business reasons.


PENTA CLO 2: Fitch Assigns 'B-' Rating to Class F Notes
Fitch Ratings has assigned Penta CLO 2 B.V. expected ratings, as:

Class A: 'AAA(EXP)sf'; Outlook Stable
Class B: 'AA(EXP)sf'; Outlook Stable
Class C: 'A(EXP)sf'; Outlook Stable
Class D: 'BBB(EXP)sf'; Outlook Stable
Class E: 'BB(EXP)sf'; Outlook Stable
Class F: 'B-(EXP)sf'; Outlook Stable
Subordinated notes: not rated

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

Penta CLO 2 B.V. is an arbitrage cash flow collateralized loan
obligation (CLO).


'B'/'B-' Portfolio Credit Quality

Fitch places the average credit quality of obligors in the
'B'/'B-' range.  The agency has public ratings or credit opinions
on 96% of the identified portfolio.  The Fitch weighted average
rating factor (WARF) of the identified portfolio is 34.6, above
the covenanted maximum for assigning the expected ratings of 34.
The portfolio WARF must be in compliance with the covenant on the
effective date.

High Recovery Expectations

The portfolio will comprise a minimum 90% senior secured
obligation.  Fitch has assigned Recovery Ratings to 96% of the
identified portfolio.  The weighted average recovery rate (WARR)
of the identified portfolio is 65.8%, above the covenanted
minimum for assigning expected ratings of 63.4%.

Diversified Asset Portfolio

This transaction contains a covenant that limits the top 10
obligors in the portfolio to 20% of the portfolio balance.  This
ensures that the asset portfolio will not be exposed to excessive
obligor concentration.

Limited Interest Rate Risk

While interest due on the rated notes is based on a floating
index, fixed-rate assets can account for up to 10% of the
portfolio balance.  Fitch factored in a 10% fixed-rate bucket in
its cash flow analysis, which shows the rated notes can withstand
excess spread compression in a rising interest rate environment.

Payment Frequency Switch:

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


Net proceeds from the notes issue will be used to purchase a
EUR400m portfolio of mostly European leveraged loans and bonds.
The portfolio is managed by Partners Group (UK) Management
Limited.  The reinvestment period is scheduled to end in 2019.

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

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


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


The majority of the underlying assets have ratings or credit
opinions from Fitch and/or other Nationally Recognised
Statistical Rating Organisations and/or European Securities and
Markets Authority registered rating agencies.  Fitch has relied
on the practices of the relevant Fitch groups and/or other rating
agencies to assess the asset portfolio information.

Overall, Fitch's assessment of the asset pool information relied
upon for the agency's rating analysis according to its applicable
rating methodologies indicates that it is adequately reliable.


ASTRA ASIGURARI: Up to 5 Investors Interested in Insurer
Romania Insider reports that up to five investors are interested
in taking over the insolvent insurer Astra Asigurari. None of
them is active on the Romanian market, said Misu Negritoiu,
president of the Financial Supervisory Authority.

However, the situation stalls due to a "price issue," the report
says.  According to the report, the company needs an urgent boost
of almost EUR100 million, but the necessary amount to buy Astra
Asigurari amounts to EUR317 million.

"The effort is substantial, that's why it's still uncertain
whether the acquisition will take place," said Negritoiu, cited
by local, Romania Insider relays.

Astra Asigurari has been under financial administration for
almost a year. Its fate is still unclear, as the company's
liquidity ratio approaches zero, the report notes.

Astra Insurance is a Romania-based insurance company. The company
is listed on Rasdaq market of the Bucharest Stock Exchange.


MAGNITOGORSK IRON: Fitch Affirms 'BB+' IDR, Outlook Stable
Fitch Ratings has revised the Outlook on Russia-based OJSC
Magnitogorsk Iron & Steel Works' (MMK) Long-term Issuer Default
Rating (IDR) to Stable from Negative and affirmed the IDR at

The ratings reflect MMK's strong position on the Russian market
as a supplier of a wide range of high value-added steel products.
The revision of the Outlook reflects the company's material
deleveraging in 2014 when funds from operations (FFO) adjusted
leverage fell to 1.8x from 3.2x in 2013.


Decreasing Leverage

MMK's total debt reduced by USD0.6 billion in 2014.  Since 2011
the company has reduced indebtedness by USD1.8 billion and is
still committed to deleverage using cash funds and cash flow from
operations.  The management's mid-term target is to have a gross
debt/EBITDA ratio below 2.0x (1.64x at end-2014).  The company
has remained free cash flow (FCF) positive, which contributed to
a decline in FFO adjusted gross leverage to 1.77x at end-2014
from 3.2x at end-2013 (Fitch calculated).  Fitch expects MMK to
continue generating positive FCF in 2015-2018, due to the
moderate capital spending program.

Reliance on Domestic Market

Up to 78% of the company's revenue and 82% of total sales volumes
are generated in Russia and CIS, resulting in concentration risk.
Domestic demand for steel products in Russia has been
deteriorating lately and this may continue throughout 2015.  This
should push Russian steel producers to reorient sales to export
markets to avoid production cuts.  In this case MMK could be
disadvantaged due to its longer distance to export markets, and
will have to reduce production.

Benefiting from Low Prices of Raw Materials

The current weak raw materials market environment is benefiting
MMK, which has lower vertical integration than its peers.
Falling prices of coking coal and iron ore mean raw materials
from suppliers became cheaper than the operating costs of in-
house suppliers (typically medium to high cash cost producers).
MMK's mining assets have relatively high cash costs and were EBIT
negative in 2014.

Moderate Capital Spending

The company's capital spending is expected to be moderate in
contrast to its previous aggressive spending at USD440 million
(Fitch estimate) in 2015 vs an average of USD1 billion per year
in 2010-2014. After 2015, some pick up in spending is expected
driven by higher outflows on MMK Metalurji and main steel
facilities in Magnitogorsk.  Fitch expects MMK to remain FCF
positive (2015 forecast: USD573m) over the forecasting period.

Narrowed Losses in Turkey

MMK's Turkish division continued to narrow its operating losses
to USD37 million in 2014, from USD86 million in 2013, following
suspended steel-making production in late 2012 and running only
rolling mills.  It reported EBITDA of USD28 million in 2014
versus negative EBITDA of USD75 million in 2012.

Average Corporate Governance

Fitch assesses MMK's corporate governance as in line with other
Russian corporates.  The country's overall weak standards of
governance and lack of legal safeguards constrain the ratings.
As a result, Fitch has notched down MMK's ratings by two notches,
which is common for companies in Russia with similar standalone


Acceptable Liquidity

The company's liquidity position is acceptable with USD327
million of cash in hand, USD222 million of short-term investments
and USD1.1 billion of committed unutilized bank loans at end-2014
compared with USD0.9 billion of short-term borrowings.  Fitch
also considers MMK's 5% stake in Fortescue Metals Group Limited
(BB+/Negative) as an additional source of liquidity, if needed.
MMK's stake is currently valued at around USD300 million.


Fitch's key assumptions within our rating case for the issuer

   -- Marginal 0.2% sales volume decline yoy in 2015 with
      marginal growth of 0.8% afterwards.
   -- 18% yoy decline in average realised prices in 2015 with 2%
      annual recovery afterwards.
   -- Average RUB/USD exchange rate in 2015 of 57.9 and 55


Positive: Future developments that could lead to positive rating
actions include:

   -- FFO adjusted gross leverage consistently below 1.5x.
   -- Positive FCF on a sustained basis.
   -- Continued improvement of corporate governance either on an
      individual basis or as a result of an improvement in the
      Russian business climate.

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

   -- Negative rating action on the Russian sovereign.
   -- Negative FCF on a sustained basis.
   -- FFO adjusted gross leverage sustainably above 2.5x.

Full List of Rating Actions

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

Long-term local currency IDR: affirmed at 'BB+'; Outlook revised
to Stable from Negative

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

National Long-term Rating: affirmed at 'AA(rus)'; Outlook revised
to Stable from Negative

Senior unsecured foreign currency rating: affirmed at 'BB+'

SEVERSTAL OAO: Fitch Revises Outlook to Pos. & Affirms 'BB+' IDR
Fitch Ratings has revised Russian steel company OAO Severstal's
Outlook to Positive from Stable.  Its Long-term Issuer Default
Rating (IDR) has been affirmed at 'BB+'.

The Outlook revision reflects Severstal's successful
deleveraging, driven by healthy free cash flow (FCF) generation
and the disposal of its North American assets.  The company is on
track to reach our numerical guidance for a positive rating
action of funds from operations (FFO) gross leverage in 2015 of
1.5x.  However an upgrade would require us to form a view that
Severstal's leverage will remain consistently below this level,
which is unlikely this year.


Divestment of Foreign Assets

In September 2014, Severstal completed the sale of two steel
plants in North America, Severstal Columbus and Severstal
Dearborn, to Steel Dynamics Inc. and AK Steel Corporation
respectively for a total cash consideration of USD2.3 billion.
With the sale of the plants Severstal has completely disposed of
international assets and become a purely Russian integrated steel
company.  This development has in part worsened the
diversification and operational profile of the company.  At the
same time the price received for the assets has contributed
materially to the company's deleveraging.  Severstal's North
America division generated USD768 million of loss before
financing and taxation for 1H14 versus a USD2.9 million loss a
year ago.

Strong Profitability

Severstal's profitability improved materially in 2014, due to
rouble devaluation and implemented cost control measures.  Its
EBITDA margin in 1Q15 grew to 38.5%, realizing the full effect of
rouble devaluation, from 32.1% in 4Q14 and compared with 26.6%
for the whole of 2014.  Fitch do not believe that such margin
will be sustained, due to weakening export prices, and expect it
to decline to around 30% in 2015 and to 27% in 2016.  The company
is on track with cost-cutting initiatives at its mining division,
including headcount reduction, the launch of a methane power
plant at Vorkutaugol in May 2014 and the idling of high-cost pits
in September 2014.


Severstal reduced its total debt by approximately USD1.3 billion
in 2014.  In early February 2015 the company completed an early
repayment in total of USD221 million on two outstanding notes
issues maturing in 2016 and 2017.  The company remained FCF-
positive in 2014 (USD148 million) even after paying increased
dividends in the amount of USD1 billion. FFO-adjusted gross
leverage declined to 1.61x in 2014, from 2.81x at end-2013 and
Fitch expects it to fall to 1.49x by end-2015.

New Dividend Policy

Following the Board resolution on 9 October 2014, Severstal is
now committed to paying no less than 50% (25% previously) of its
net profit for the reporting period provided that net debt/EBITDA
is below 1.0x (0.7x at end-2014).  Fitch expects a moderate
capital spending program during the forecasting period, which
along with strong cash flow generation should allow Severstal to
pay increased dividends.

Solid Business Profile

The divestment of its North American assets has slightly weakened
Severstal's operational profile through smaller production scale
and less geographical diversification.  Nevertheless, Severstal
remains one of Russia's most self-sufficient companies with a
balanced product mix and strong sales diversification.  It
benefits from almost full self-sufficiency in iron ore and is
more than self-sufficient in coking coal.  Severstal is one of
the leading Russian steel producers by its share of high value
added products in total sales (50%).

Corporate Governance

Severstal announced plans in respect of changes to Chairmen and
CEO in April 2015, which would take effect on May 26, 2015.
According to the plans Alexey Mordashov, Severstal's major
shareholder, would step down as the company's CEO to be elected
as Chairmen of Severstal's Board.  Vadim Larin, current COO of
Severstal, is expected to become new CEO of the company.

While replacing an independent Chairman with a majority
shareholder may appear to represent a weakening of governance,
this action brings Severstal in line with Russian peers.  Fitch
will continue to place more emphasis on how governance is being
practically implemented than on structure.  Fitch will monitor
how the new arrangement and three new independent Directors
affect decision-making as the new structure matures.

Fitch typically applies an explicit two-notch discount for
Russian companies with a similar underlying credit profile to
Severstal. This reflects the country's overall poor standards of
governance and lack of legal safeguards, which we believe are
constraints on credit quality.  Even after the recent board
changes Fitch considers it likely that Severstal's corporate
governance will be relatively strong, but not sufficiently so as
to warrant a reduction to this discount.  As a result Fitch
continues to notch down the company's ratings by two levels.


Severstal's liquidity position is strong with USD1.9 billion of
cash in hand and USD0.4 billion of undrawn committed bank
facilities compared with only USD0.8 billion of short-term
borrowings at end-2014.


Fitch's key assumptions within our rating case for the issuer

   -- Flat sales volume growth in 2015 with marginal growth of
      0.8% afterwards
   -- 18% yoy decline in average realised prices in 2015 with 2%
      annual recovery afterwards
   -- Average RUR/USD exchange rate of 57.9 in 2015 and 55


Positive: Future developments that could lead to positive rating
actions include:

   -- Improvement in the Russian business environment
   -- Positive FCF on a sustained basis
   -- FFO-adjusted gross leverage consistently below 1.5x

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

   -- Negative rating action on Russian sovereign
   -- EBITDAR margin below 16% on a sustained basis
   -- Failure to deleverage in line with Fitch's expectations,
      resulting in FFO gross leverage above 2.5x

Full List of Ratings

OAO Severstal

Long-term foreign and local currency IDRs: affirmed at 'BB+';
  Outlook changed to Positive from Stable
Short-term foreign currency Issuer Default Rating: affirmed at
National Long-term rating: affirmed at 'AA(rus)'; Outlook
   changed to Positive from Stable
LPNs issued by Steel Capital SA
Senior unsecured foreign currency rating: affirmed at 'BB+'


BABYLON IDIOMAS: Enters Insolvency; Closes All Centers

Sara Custer at The PIE News reports that Spain-based language
school Babylon Idiomas has closed all its centres and filed for
insolvency last month.

The company has not paid staff, host families or agent partners
since January and students have been unable to recover course
fees, The PIE News relates.

Teachers went on strike in late February but classes continued in
most schools until mid-April, the report says.

The PIE News reports that owner Steven Muller confirmed the
school operated four centres in Madrid, Barcelona, Valencia and
Seville, all of which closed last month.

Mr. Muller told The PIE News a sharp fall in demand for Spanish
language schools in Spain which began in 2012 left the company
with few resources to cover costs.

"We have been talking since late last year with various investors
and although we were very close to an agreement it did not work
out in the end," the report quotes Mr. Muller as saying.  "Up
until last week [mid-April] it looked good that we were going to
get out of it and that's frustrating. We've let our clients and
staff down in a way that I never thought could happen for which I
sincerely apologise," he said.

An ex-employee told The PIE News that some 80 staff and teachers
have been left unemployed.

There are also estimates that between 80-200 Spanish and English
language students across all four centres have paid for courses
that they will not receive, including a Chinese student who lost
EUR11,000 for a year's worth of Spanish courses, the report says.

After filing insolvency, a judge will appoint an executor to pay
creditors. However, with no funds available it is unlikely course
fees will be returned or salaries recuperated, according to The
PIE News.

"There are a few agencies who are owed money," Mr. Muller, as
cited by The PIE News, said. "There will be some damage there. Is
it enormous? No, but on a personal level I'm ashamed we won't be
able to pay those fees.

"The main drama is with clients who were with us in the school or
made a down payment for a course that was starting in the next
few weeks."

In February, staff and teachers in Barcelona went on strike in
reaction to not being paid for two months. They were followed by
employees in Valencia and Madrid, the report recalls.

Established in 2002, Babylon Idiomas owns and operates four
schools in Spain and works closely with different partner schools
in Argentina and Cuba. The school was accredited by Instituto
Cervantes, the Swedish Ministry of Education and for
Bildungsurlaub programmes in Germany and won an award for Best
Spanish Language School in 2008 and 2011.


GATEGROUP HOLDING: S&P Affirms 'BB-' Rating, Outlook Positive
Standard & Poor's Ratings Services affirmed its rating on
Switzerland-based airline solutions provider gategroup Holding AG
at 'BB-'.  The outlook remains positive.

In addition, S&P affirmed its 'BB-' issue rating on the remaining
EUR250 million 6.75% senior unsecured notes due 2019, issued by
wholly-owned subsidiary gategroup Finance (Luxembourg) S.A.  The
recovery rating on this instrument is '4', indicating S&P's
expectation of average recovery prospects, in the lower half of
the 30%-50% range, in the event of a payment default.

The positive outlook reflects S&P's opinion that gategroup's
credit metrics could strengthen in the next 12-18 months through
a mix of improved operating results and reduced cash interest
costs. The company repaid EUR100 million of its EUR350 million
6.75% high-yield bond in a recent refinancing exercise, and in
S&P's opinion will benefit from optimizing its financing
structure over the next 12 months.  In addition, as part of the
same transaction, the company secured a new EUR240 million,
five-year revolving credit facility (RCF), replacing a EUR100
million revolver maturing in June 2016 and leading S&P to revise
its assessment of gategroup's liquidity to "strong" from

The company reported revenue of Swiss francs (CHF) 3,009 million
in 2014 and an EBITDA margin of 5.6%, broadly in line with 2013
but somewhat below S&P's previous expectations.  The 2014 results
were dampened by the strong Swiss franc following the Swiss
National Bank's decision to let the currency float freely.
Generally, gategroup's expenses are paid in the same currency as
its income and are therefore quite efficiently hedged on a cash-
flow basis.  That said, as gategroup's EBITDA is relatively small
on an absolute basis, any currency mismatch could have a
noticeable effect on its EBITDA margin.

Under S&P's base case, it expects gategroup to benefit from high
growth in emerging markets, where margins are higher than in
mature markets, and from its ongoing cost-cutting program.  This,
together with our expectation of a reduced cash interest bill,
should enable the company to generate credit metrics commensurate
with a "significant" financial risk profile and a 'BB' rating
within the next 12-18 months.  Under S&P's base-case scenario, it
forecasts gategroup to remain positively free cash flow
generative -- in line with historical performance -- and
supported by its low maintenance capital expenditure (capex)

S&P's base case assumes:

   -- A decline in revenues of up to 3% in 2015, followed by low-
      single-digit increase in 2016;
   -- A reported EBITDA margin of 5.5%-6.0% in 2015 and 2016;
   -- Capital requirements of about 3% of forecast revenues; and
   -- No committed acquisitions.

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

   -- A weighted average of adjusted funds from operations (FFO)-
      to-debt ratio of around 19% in 2015 and around 21% in 2016;
   -- Adjusted debt to EBITDA of between 3.0x-3.5x over the same

The positive outlook reflects the potential for a one-notch
upgrade in the next 12-18 months if the company's operating and
financial performance continues to improve and S&P believes the
company will sustain FFO to debt of 20% or more.

S&P could raise the rating if it believes that gategroup is able
to sustain FFO to debt of 20% or more, which would lead S&P to
revise the financial risk profile to "significant."  S&P believes
gategroup should be able to achieve this in the next 12-18 months
through a mix of improving operating results in its European
Airline Solutions business and its reduced cash interest bill.
S&P expects debt to EBITDA and EBITDA interest coverage to remain
3.5x and 4.5x, respectively, which is already commensurate with a
"significant" financial risk profile.

An upgrade would also require gategroup to maintain at least an
"adequate" liquidity profile and generate positive free cash
flow, supported by low maintenance capex.

S&P could revise the outlook to stable if gategroup's operating
performance and cash flow metrics do not improve, notably if FFO
to debt continues to stagnate below 20%.  This could result from
a material drop in profitability due to weakening industry
conditions and/or adverse currency movements, or from a more
aggressive financial policy than we currently envisage, involving
larger-than-expected acquisitions or shareholder returns.


BANKA KOMBETARE: Fitch Affirms, Then Withdraws 'B' IDR
Fitch Ratings has affirmed BKT's (BKT's) Long-term Issuer Default
Ratings (IDR) at 'B'.  At the same time, the agency has withdrawn
the ratings as the bank has chosen to stop participating in the
rating process.  Therefore, Fitch will no longer have sufficient
information to maintain the ratings.  Accordingly, the agency
will no longer provide ratings or analytical coverage for BKT.


BKT's IDRs are driven by its standalone creditworthiness, as
captured in its 'b' Viability Rating (VR).  The ratings reflect
the bank's challenging operating environments (mainly in Albania
but also in Kosovo), opportunistic strategy, fairly aggressive
risk appetite and significant related party operations.
Consequently, and factoring in the loan book concentrations, 0%
risk-weighting applied to BKT's sizeable portfolio of Albanian
government bonds and fairly significant unreserved non-performing
loans, Fitch regards capitalization as only moderate (end-2014
regulatory capital adequacy ratio of 15.6%).  High foreign
currency lending is also a source of risk, although this has
largely been mitigated by the historical stability of the
LEK/euro exchange rate.  In addition, a large portion of the
bank's lending is medium to long term, with many of the largest
exposures structured with bullet repayment schedules.

However, these factors are balanced by BKT's generally
satisfactory financial metrics, with operating profitability
supported by low loan impairment charges to date, the breadth of
the bank's franchise in the Albanian market (BKT was ranked first
by total assets and deposits among Albanian banks at end-January
2015) and limited reliance on non-deposit funding.  Overall
liquidity ratios are also comfortable, supported by a stable
deposit base and a low loans/assets ratio.  However, foreign
currency liquidity could come under pressure in a stress scenario
given that approximately half of BKT's deposits are euro-


BKT's '5' Support Rating reflects Fitch's view that support from
BKT's owner, Turkey's Calik Holding, and from the Albanian state,
although possible, cannot be relied upon.  The Support Rating
Floor of 'No Floor' mainly reflects the sovereign's limited
financial flexibility and potential constraints on its ability to
provide foreign currency support to banks in case of need.

The rating actions are:


  Long-term foreign and local currency IDRs: affirmed at 'B';
   Outlook Stable, withdrawn
  Short-term foreign and local currency IDRs: affirmed at 'B',
  Viability Rating: affirmed at 'b', withdrawn
  Support Rating: affirmed at '5',withdrawn
  Support Rating Floor: affirmed at 'No Floor', withdrawn


DELTA BANK: Depositors Hope For Law that Will Return Deposits
Interfax-Ukraine reports that the large depositors of the
insolvent Delta Bank (Kyiv) expect the Ukrainian parliament to
pass a law which will return their deposits, representative of
the initiative group of the depositors of insolvent Delta Bank
Herman Panikar said at a press conference at Interfax-Ukraine on
April 23.

Interfax-Ukraine relates that Mr. Panikar said the draft law on
amending some Ukrainian laws to expand the tools of the
Individuals' Deposit Guarantee Fund to remove insolvent banks
from the market, with the purpose of retaining the deposits at
insolvent banks (No. 2188), proposes an efficient mechanism on
liquidating insolvent banks via the transfer of their assets and
liabilities to an accepting or transition bank, with the
condition that deposits larger than UAH200,000 covered by the
deposit guarantee fund are temporarily frozen.

The report relates that Mr. Panikar said that this way of
removing insolvent banks from the market will retain the funds of
all depositors and clients of banks: funds received from payment
of credits and work with assets will be gradually allocated to
pay deposits.

"The deposits will be frozen and banks would not require
injections from the budget. We believe that the transition bank
created at the deposit guarantee fund would be able to cope the
task best of all," the report quotes Mr. Panikar as saying.

According to the report, President of the Association of
Ukrainian Banks (AUB) Oleksandr Suhoniako said that the model was
used in Germany, which shows that it is efficient.

Draft law No. 2188 was registered in the parliament on
February 20, 2015. The initiators of the document were MPs Serhiy
Rybalka, Mykhailo Dovbenko, Viktor Romaniuk, Yuriy Solovei, Ivan
Fursin, Oleh Lavryk, and Stepan Kubiv, the report discloses.

Delta Bank is based in Kyiv.  Temporary administration at Delta
Bank was introduced on March 3, 2015.

DTEK ENERGY: Moody's Assigns Ca-PD/LD Rating & Affirms Ca CFR
Moody's Investors Service assigned a limited default (/LD)
designation to DTEK ENERGY B.V.'s Ca-PD probability of default
rating. At the same time, Moody's affirmed DTEK's Ca corporate
family rating, as well as the Ca rating of DTEK Finance Plc's
$750 million 7.875% notes due 4 April 2018. The change of the PDR
to Ca-PD/LD follows the completion of the exchange of DTEK
Finance B.V.'s $200 million 9.5% notes on the notes' maturity
date, 28 April 2015. The transaction was effected pursuant to a
UK Scheme of Arrangement. These $200 million notes were exchanged
into new $160 million 10.375% notes due 28 March 2018, issued by
DTEK Finance Plc for this purpose, and $44.9 million of cash,
including an early exchange offer acceptance fee, which was paid
to note holders on 28 April 2015. The Ca rating of DTEK Finance
B.V.'s exchanged notes was withdrawn. Moody's expects to remove
the "/LD" suffix after approximately three business days.

The outlook on all ratings remains negative.

The change in DTEK's PDR to Ca-PD/LD follows the completion of
the exchange of DTEK Finance B.V.'s $200 million 9.5% notes due
28 April 2015 as described above. As Moody's signaled in its
press release on DTEK's ratings dated 27 March 2015, the agency
sees this transaction as a distressed exchange, which constitutes
a default under Moody's definition.

The affirmation of DTEK's CFR and senior unsecured rating
acknowledges that the completed exchange contributes to an
improvement of DTEK's liquidity profile. However, it does not
solve DTEK's stressed liquidity position, which will persist over
the next 12 months on the back of the weak operating environment
in Ukraine and closed public capital markets, making it likely
that the company will seek to restructure the majority of its
debt. The Ca ratings factor in the likelihood of substantial loss
that may be incurred by the company's creditors as a result of a
debt restructuring.

The outlook on the ratings is negative, which reflects (1) DTEK's
stressed liquidity and the likelihood of default and substantial
loss for the company's creditors; (2) the pressures of the weak
economic environment reflected in Ukraine's sovereign rating of
Ca with a negative outlook and the consequent risk of a downgrade
of the foreign-currency bond country ceiling.

Given the negative outlook, Moody's does not expect upward
pressure on DTEK's ratings until the company manages to improve
its liquidity position so that it is able to meet debt payments
on a timely basis. At the same time, Moody's notes that, as
DTEK's integrated electric utility business is focused on
Ukraine, the company's ratings remain dependent on further
developments at the sovereign level.

Conversely, downward pressure could be exerted on DTEK's ratings
if DTEK fails to improve its liquidity or if there is a downgrade
of Ukraine's sovereign rating and/or lowering of the foreign-
currency bond country ceiling.

The methodologies used in these ratings were Unregulated
Utilities and Unregulated Power Companies published in October
2014, and Loss Given Default for Speculative-Grade Non-Financial
Companies in the U.S., Canada and EMEA published in June 2009.

Headquartered in Kyiv, DTEK ENERGY B.V. (previously DTEK Holdings
B.V. before completion of restructuring and name change on
September 22, 2014) is one of the major energy companies in
Ukraine and part of a financial and industrial group System
Capital Management (SCM). DTEK generated revenue of UAH93.0
billion, or US$7.8 billion, including heat tariff compensation,
in 2014.

U N I T E D   K I N G D O M

BILTA UK: Liquidators Can Go After Former Directors
Keith Goldberg at Law360 reports that the U.K.'s top court on
April 22 said that Bilta (UK) Ltd.'s alleged participation in a
tax scheme that led to its insolvency doesn't prevent liquidators
from going after its former directors and other conspirators
based in Switzerland, and that U.K.'s insolvency laws have extra-

The liquidators of Bilta (UK) Ltd., which was wound up in 2009
after being unable to pay debts of over GBP38 million to U.K. tax
authorities, claim its two former directors, Swiss company
Jetivia SA and its chief executive engaged in a value-added tax
fraud involving European emission trading scheme carbon
allowances designed to sink Bilta, Law360 relates.  In seeking to
dismiss the claims, the defendants argued that Bilta's claims
against its directors were barred by the criminal nature of
Bilta's conduct while under their control, Law360 notes.

According to Law360, the defendants also said the liquidators
can't seek payments from them under Section 213 of the U.K.
Insolvency Act, which provides a remedy against anyone who
knowingly becomes a party to fraudulently carrying on a company's
business, because they don't reside in the U.K.

However, the U.K. Supreme Court unanimously affirmed a lower
court's rejection of the dismissal bid, saying an illegality
defense can't bar Bilta's claims because the conduct of its
directors can't be attributed to the company in the context of a
claim against the directors for breaching their fiduciary duties,
Law360 discloses.

The high court also unanimously concluded that Section 213 of the
Insolvency Act has extraterritorial effect, saying while the
context of the provision is the winding up of a company registers
in the U.K., the effect of such a winding-up order is worldwide,
Law360 relays.

Bilta went belly up in November 2009, Law360 recounts.  The
company's liquidators then went after the company's two former
directors, one of whom was its only shareholder, Jetivia and its
chief executive, claiming that between April and July 2009, the
Bilta directors breached their fiduciary duties by entering the
company into a series of transactions known as carousel frauds,
Law360 says, citing the opinion.

Bilta (UK) Ltd. was a carbon-credit trading company.

CLOSED LOOP: Euro Capital Buys Firm to Keep the Business Going
-------------------------------------------------------------- reports that London based plastics
firm Closed Loop Recycling has been sold to Dubai-based
investment company, Euro Capital Group, who has pledged an
ongoing investment program to keep the business going.

Grant Thornton UK LLP was appointed as administrators to sell the
business, which has suffered as a result of the drop in oil
prices -- making virgin polymers cost competitive with recycled
alternatives, according to

The report notes that Chris Dow will become chief executive
officer of the company, which will be renamed Euro Closed Loop
Recycling, with all jobs said to be protected at the Dagenham

In March, Closed Loop responded to an article in the Guardian
that claimed the company could fall into administration, the
report notes.

Closed Loop, based in Dagenham, was commissioned in 2007 to
recycle soft drinks bottles made from polyethylene terephthalate
(PET) and was the first plastics recycling plant in Europe to
recycle high density polyethylene (HDPE) from plastic milk
bottles.  The facility is equipped to recycle up to 35,000 tons
of bottles each year and employees approximately 97 staff.

Closed Loop is the second major UK casualty as a result of the
plummeting oil price, with ECO Plastics sold in December to
German investor, Aurelius, the report relates.

At the end of April, four European plastic organizations said the
European plastics industry is in danger of losing credibility and
that an urgent restoration of normal supply is imperative, the
report discloses.

The report notes that Mr. Dow said: "We are delighted that Euro
Cap has come on board.  The number one priority for us and our
investors is to continue to support the Dairy Road Map in the UK.
In the last eight weeks, the industry has shown real commitment
to recycled HDPE content.  This deal offers the potential for the
supply chain to meet this obligation of 30% recycled content, but
this will only happen if the retailers enforce this through the
whole of the supply chain."

The report relays that David Dunckley of Grant Thornton, said:
"Closed Loop has struggled financially in recent years, with
problems reflective of the drop in oil prices impacting on
competition with virgin plastics combined with increased costs in
raw materials. It has made considerable progress in addressing
its operating cost base and rebuilding revenues but continued
adverse market conditions have made stabilizing the business

"The sale to Euro Capital will see the transfer of employees and
give Closed Loop the financial resources to stabilize itself and
start capitalizing on its well-known brand in a marketplace where
sentiment and volumes are improving," Mr. Dunckley added.

The sale ensures the continual supply of recycled content for the
milk bottle market in the UK to achieve the goals of the Dairy
Roadmap, according to Mr. Dow, the report says.

HIGHTEX: Falls Into Administration
Construction Enquirer reports that roofing specialist Hightex has
fallen into administration.

The company confirmed the move in a Stock Exchange announcement
today following months of financial trouble, according to
Construction Enquirer.

Trevor John Binyon -- -- and Steven
John Parker -- -- of Opus Restructuring
LLP have been appointed as Joint Administrators to the Company.

The report notes that Hightex warned in March that it was in a
"critical financial situation."

The firm ran into financial trouble following problems on two
contracts at the 2014 World Cup in Brazil, the report relates.

The report relays that the Brazil contracts were run by Hightex's
German arm which is now being bought by an Austrian rival
following a financial restructuring.

The report discloses that Hightex said at the time: "A decisive
factor in the creation of this critical financial situation for
Hightex GmbH was the misappropriation of funds totaling 3.3
million Euros by the managers of the Brazilian joint venture
company in connection with the construction of two stadia for the
FIFA 2014 World Cup."

The firm has also failed to win any work on the 2018 World Cup in
Russia, the report adds.

JOHNSTONE'S JUST DESSERTS: Finsbury to Buy Firm, Saves 150 Jobs
Greig Cameron at Herald Scotland reports that Finsbury Food Group
is close to completing a deal to buy Johnstone's Just Desserts
from administrators and save around 150 jobs in Scotland.

AIM-listed cake and baked goods supplier Finsbury Food already
employs around 1,100 Scottish workers at facilities in Hamilton
and Twechar, East Dunbartonshire, according to Herald Scotland.

The report notes that the proposed transaction will see it add
the Johnstone's headquarters and factory at East Kilbride, which
is on the former Fujitsu site in the town, as well as the
customer list of the business.

Johnstone's is said to have had a turnover of around GBP9 million
in 2014 and specializes in selling cakes to UK-wide coffee shop
chains. Its products include the likes of caramel shortcake,
lemon cheesecake and rocky road and chocolate tiffin.

Johnstone's went into administration in March with FRP Advisory
working to find a buyer since then, the report discloses.

The report relays that Finsbury said it was in talks with FRP to
finalize property lease details but it was hopeful the deal will
go through soon.

It intends to put manufacturing and finance staff into
Johnstone's to help make the integration process smoother until
the formal completion is signed, the report says.

Finsbury also said it intends to work with the management at
Johnstone's and retain all 150 staff, the report discloses.

The value of the agreement has not been revealed.

The report notes that John Duffy, chief executive of Finsbury
Food Group, said: "Johnstone's Just Desserts will be a bolt on
acquisition and is in line with our strategy to diversify into
new channels.

"This, illustrates the group's continued reach into the
foodservice 'out of home eating' market and the broadening of our
product offering and customer base," the report quoted Mr. Duffy
as saying.

"The strength of Johnstones' customer relationships are testament
to the quality of its products and we look forward to welcoming
the company into the Finsbury Group and providing the resources
and investment to develop its full potential over the coming
years," Mr. Duffy added.

The report notes that the most recent accounts available at
Companies House for Johnstone's, which cover the 12 months to
November 30, 2013, show turnover of GBP9.1 million and pre-tax
profit of GBP26,316.

The balance sheet recorded net debt of GBP1.89 million in the
November of that year, the report relays.

Its most recent annual return, dated from September last year,
shows Kevin Moore as the sole director and main shareholder, the
report discloses.

Finsbury sells birthday and celebration cakes to supermarkets
mainly through Lightbody Cakes in Hamilton, and Cardiff based
Memory Lane Cakes.

Last year, it bought Fletchers for GBP56 million to expand its
presence in buns, muffins, scones and baguettes with a view to
increasing its presence in restaurants, coffee shops, bars and
fast food outlets, the report notes.

Fletchers, which employed around 600 people, had bakeries in
Sheffield, Manchester and London.

PC HARRINGTON: KPMG Administrators Step in to Take Charge
Robyn Wilson at Construction News reports that administrators
from KPMG have been appointed to take charge of PC Harrington

The appointment was made following weeks of uncertainty at the
troubled contractor, according to Construction News.

Howard Smith -- -- and Jonny Marston -- -- of KPMG's restructuring practice have
been named as administrators.

The report notes that PC Harrington Contractors filed a notice of
intention to appoint an administrator at Leeds High Court in
early April.

According to its latest accounts, the company made a loss of
GBP4.1 million in the 2013/14 financial year, despite revenue
rising to GBP64.7 million from the previous year's GBP61.1
million, the report relays.

In its annual report for the year, company directors blamed the
loss on "two large contracts which were taken on as the economy
was coming out of recession and which were subject to severe
delays resulting in cost overruns that could not be fully
recovered," the report discloses.

Construction News says that they further claimed that the company
"was unable to sufficiently recover increases in labor and fuel
costs that arose after the tender was agreed".

In a statement issued, KPMG said: "PC Harrington Contractors Ltd
has experienced difficult trading conditions since the economic
downturn and has recently suffered from a number of loss making
contracts, the report relays.

"This led the business, which does not have any direct employees,
to cease trading shortly prior to the appointment of
administrators.  The administrators will concentrate their
efforts on realizing value for the company's assets, which are
primarily contract debts," KPMG said, the report notes.

"The company also owns the shares of one of the group's
subsidiaries, Slipform International Ltd, which is outside of the
insolvency process and continuing to trade under the control of
its existing management, as are the other companies in the PC
Harrington Group," KPMG said, the report relays.

PC Harrington Contractors is part of the PC Harrington Group,
which also owns HTC Plant.

Last November, HTC Plant faced strike action from crane operators
demanding an increase in pay from their employer, with a second
planned strike only called off after negotiations between
construction union Ucatt and HTC secured a 14 per cent pay rise
over three years, the report notes.

PC Harrington is the latest in a string of firms to go into
administration in recent weeks, the report relays.

Since the start of March, GB Building Solutions, Midlands firm
Parkstone Group and Dundee-based Muirfield Contracts have all
entered administration, while February saw the collapse of Anglo
Holt Construction, with the loss of 52 jobs, the report adds.

PREMIERE PRODUCTS: Could Move to Manchester at Cost of 48 Jobs
Lewis Pennock at Gloucestershire Echo reports that Premiere
Products, in Bouncers Lane, has been bought after it went into
administration and the future of its 48 staff now remains

Premiere Products, in Bouncers Lane, has been bought after it
went into administration and the future of its 48 staff now
remains uncertain, according to Gloucestershire Echo.

The report notes that doubt has been cast over nearly 50 jobs
following the sale of a Cheltenham company.

Premiere Products, based in Bouncers Lane, is a cleaning product
manufacturer and was sold in April after it went into
administration, the report relates.

It is now owned by James Briggs Ltd, an aerosol and consumer
chemical producer, which must decide the fate of the company, the
report discloses.

The business and assets were acquired, but not the Bouncers Lane
site, which means it is possible that Premiere could be relocated
to Manchester, where its new owner is based, at a cost of 48
jobs, the report adds.

SOUTHDALE LIMITED: Sowerby & Leeming Homes Delayed After Closure
BBC News reports that work has temporarily stopped on two major
housing developments in North Yorkshire after a building firm
went into administration.

Southdale Limited, which specializes in affordable housing, shut
last month with the loss of 87 jobs, according to BBC News.

The report notes that work has stopped on the Sowerby Gate and
Leeming Gate developments while alternative contractors are

Developers Mulberry Homes said work was due to restart on site
"very soon," the report discloses.

In a statement, the company said any homes that were near to
completion would be delivered as per the schedule, the report

It said: "We have entered into discussions with the administrator
and alternative contractors, and we are keeping all our future
options open at the time," the report notes.

The 925-home Sowerby Gate development attracted objections from
residents when it was given planning permission in 2011, the
report recalls.

Protesters said they were concerned the area's transport links
could not cope with the new development, the report adds.

TULLIS RUSSELL: Administrators Set May 18 Deadline for Offers
Sarah Cosgrove at PrintWeek reports that joint administrators of
Tullis Russell Papermakers, Blair Nimmo and Tony Friar of KPMG,
have issued an Information Memorandum to 14 potential buyers who
have signed a confidentiality agreement.

According to PrintWeek, the joint administrators, appointed on
April 27 on the request of company directors, have given the
interested parties a deadline of May 18 to come back with initial

They are in the process of arranging site visits to the mill,
meetings with the company's senior management team and providing
additional information to interested parties, PrintWeek

Speaking to PrintWeek, Mr. Nimmo said there had been "a
significant level of interest in all aspects of the business" but
much of that boiled down to individual assets, stock and

"Some of that seems to be in the business and parts of the
business.  We've got in order of 20 parties and 14 of them have
followed up that process."

Mr. Nimmo, as cited by PrintWeek, said the 14 were a mixture of
investors, trade players and "people just seeing an opportunity"
and they were from various countries, although he did not have a

Kilmacolm-based paper merchant PG Paper, owned by husband and
wife team Puneet and Poonam Gupta is the only business so far to
declare its interest publicly, PrintWeek notes.

As reported by the Troubled Company Reporter-Europe on April 29,
2015, The Scotsman related that more than 300 workers have been
made redundant at Tullis Russell Papermakers following its
collapse into administration.  The company had been suffering a
long-term decline in its markets and had racked up losses
totaling GBP18.5 million over the last five years, The Scotsman
disclosed.  Steps began last year to find a buyer for the
employee-owned business, which was founded 206 years ago, but
these proved unsuccessful with more than 70 competitors rejecting
opportunities to buy the firm, The Scotsman recounted.

Tullis Russell is a paper-making firm based at Markinch in Fife.

VEDANTA RESOURCES: Moody's Says FY2015 Results Met Expectations
Moody's Investors Service says Vedanta Resources Plc's (Vedanta
Resources, Ba1 negative) subsidiary, Vedanta Ltd.'s results for
the fiscal year ended March 2015 (FY2015) were broadly in line
with expectations. Vedanta Ltd. was formerly known as Sesa
Sterlite Ltd. and includes Vedanta Resource's substantial
businesses, including stakes in Cairn India, Hindustan Zinc and

"The aluminium business exceeded our expectations, zinc (India)
and oil and gas performed broadly in line with our expectations,
but its copper, zinc international, iron ore and power businesses
slightly underperformed," says Kaustubh Chaubal, a Moody's Vice
President and Senior Analyst.

Moody's conclusions are contained in its just-released report on
Vedanta Resources Plc, entitled "Vedanta Resources Plc: Full-Year
Results Broadly Meet Expectations".

"While the full year performance can be accommodated within our
current negative outlook on Vedanta Resources, pressures continue
to build and set high expectations from its non-oil businesses to
perform to partially mitigate the effect of low oil earnings,"
adds Chaubal, who is the lead analyst for Vedanta.

Vedanta Ltd. (unrated) -- a subsidiary of Vedanta Resources --
declared its audited consolidated Q4 2015 and full FY 2015
results on April 29.

The results also showed a goodwill impairment of INR191.8 billion
(US$3.1 billion) on Vedanta Ltd.'s investment in Cairn India Ltd.
(CIL, unrated) and a INR2.8 billion (US$44 million) goodwill
impairment charge on its copper mines in Tasmania. These one-
time, non-cash charges will however not by itself affect Vedanta
Resources' credit metrics.

Although Vedanta Ltd. reduced debt by 4% to INR777.5 billion
(US$12.4 billion), lower EBITDA led to its gross leverage rising
to 3.5x as of March 2015 from 3.1x in March 2014. Consolidated
cash and liquid investments of US$7.4 billion covered 60% of
total debt, but almost 60% of the cash was held at Hindustan Zinc
(unrated), which is 65%-owned by Vedanta Ltd.

WARWICK FINANCE: Moody's Rates GBP46.55MM Class F Notes 'B3'
Moody's Investors Service assigned definitive long-term credit
ratings to notes issued by Warwick Finance Residential Mortgages
Number One PLC:

  -- GBP1,088,000,000 Class A mortgage backed floating rate notes
     due September 2049, Definitive Rating Assigned Aaa (sf)

  -- GBP180,090,000 Class B mortgage backed floating rate notes
     due September 2049, Definitive Rating Assigned Aa2 (sf)

  -- GBP52,480,000 Class C mortgage backed floating rate notes
     due September 2049, Definitive Rating Assigned A2 (sf)

  -- GBP30,000,000 Class D mortgage backed floating rate notes
     due September 2049, Definitive Rating Assigned Baa2 (sf)

  -- GBP40,530,000 Class E mortgage backed floating rate notes
     due September 2049, Definitive Rating Assigned Ba2 (sf)

  -- GBP46,550,000 Class F mortgage backed floating rate notes
     due September 2049, Definitive Rating Assigned B3 (sf)

Moody's has not assigned ratings to the Principal Residual
Certificates or Revenue Residual Certificates.

The portfolio backing this transaction consists of UK non-
conforming and buy-to-let residential loans originated by
Platform Funding Limited and GMAC-RFC Limited.

The ratings take into account the credit quality of the
underlying mortgage loan pool, from which Moody's determined the
MILAN Credit Enhancement and the portfolio expected loss, as well
as the transaction structure and legal considerations. The
expected portfolio loss of 4.5% and the MILAN required credit
enhancement of 19% serve as input parameters for Moody's cash
flow model and tranching model, which is based on a probabilistic
lognormal distribution.

Portfolio expected loss of 4.5%: this is lower than most other
pre-crisis non-conforming pools in the UK and is based on Moody's
assessment of the lifetime loss expectation taking into account:
(i) the originators' better than average historical performance,
(ii) the current macroeconomic environment in the UK, (iii) the
strong collateral performance to date along with an average
seasoning of 8.4 years; and (iv) benchmarking with similar UK
non-conforming transactions.

MILAN CE of 19%: this is broadly in line with other UK non-
conforming transactions and follows Moody's assessment of the
loan-by-loan information taking into account the historical
performance and the pool composition including 24.2% buy-to-let
loans and 7.4% loans to borrowers with prior County Court
judgments (CCJs).

The transaction will also benefit from a liquidity reserve in the
event the reserve fund is used to cover losses on the portfolio.
The liquidity reserve is available only to cover shortfalls in
senior fees and interest payments on Classes A and B. When the
reserve fund falls below 1.5% of the outstanding portfolio
balance, the liquidity reserve will build up to 2% of the
outstanding balance of Classes A and B by trapping principal
receipts. The liquidity reserve will amortize to 2% of the
outstanding balance of Classes A and B.

Operational Risk Analysis: Western Mortgage Services Limited
("WMS", not rated) will be acting as servicer. In order to
mitigate the operational risk, Homeloan Management Limited
("HML", not rated) is appointed as a back-up servicer, and there
will be a back-up servicer facilitator. The transaction benefits
from an independent cash manager, Citibank, N.A. (London Branch)
(A2, on review for upgrade/(P)P-1). To ensure payment continuity
over the transaction's lifetime the transaction documents
incorporate estimation language whereby the cash manager can use
the three most recent servicer reports to determine the cash
allocation in case no servicer report is available. The
transaction also benefits from principal to pay interest for the
Classes A to F.

Interest Rate Risk Analysis: The interest rate risk in the
transaction will be unhedged. In mitigation the transaction
contains a requirement for the servicer to not reduce SVR margin
over 3 months Libor below a minimum level of 2%. There are no
fixed rate loans in the portfolio, but only SVR linked (17% of
the portfolio), Bank of England Base rate linked (48% of the
portfolio) and 3 months Libor linked loans (35% of the
portfolio), therefore the transaction is only exposed to basis
risk but not fixed-floating risk.

The ratings address the expected loss posed to investors by the
legal final maturity of the notes. In Moody's opinion, the
structure allows for timely payment of interest and ultimate
payment of principal with respect to the Notes by the legal final
maturity. Moody's ratings address only the credit risks
associated with the transaction. Other non-credit risks have not
been addressed, but may have a significant effect on yield to

Moody's Parameter Sensitivities: If the portfolio expected loss
was increased from 4.5% to 7.9% of current balance, and the MILAN
CE was increased from 19% to 26.6%, the model output indicates
that the Class A notes would still achieve Aaa(sf) assuming that
all other factors remained equal. Moody's Parameter Sensitivities
quantify the potential rating impact on a structured finance
security from changing certain input parameters used in the
initial rating.

Moody's Parameter Sensitivities provide a quantitative/model-
indicated calculation of the number of rating notches that a
Moody's structured finance security may vary if certain input
parameters used in the initial rating process differed.

The analysis assumes that the deal has not aged and is not
intended to measure how the rating of the security might migrate
over time, but rather how the initial rating of the security
might have differed if key rating input parameters were varied.
Parameter Sensitivities for the typical EMEA RMBS transaction are
calculated by stressing key variable inputs in Moody's primary
rating model.

The principal methodology used in this rating was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
January 2015. Significantly different loss assumptions compared
with our expectations at close due to either a change in economic
conditions from our central scenario forecast or idiosyncratic
performance factors would lead to rating actions. For instance,
should economic conditions be worse than forecast, the higher
defaults and loss severities resulting from a greater
unemployment, worsening household affordability and a weaker
housing market could result in downgrade of the ratings.
Deleveraging of the capital structure or conversely a
deterioration in the notes available credit enhancement could
result in an upgrade or a downgrade of the rating, respectively.

WARWICK FINANCE: S&P Assigns 'BB' Rating to Class F Notes
Standard & Poor's Ratings Services assigned its credit ratings to
Warwick Finance Residential Mortgages Number One PLC's class A to
F notes.  At closing, Warwick Finance Residential Mortgages
Number One also issued unrated principal and revenue residual

Warwick Finance Residential Mortgages Number One is a
securitization of a pool of prime, nonconforming, and buy-to-let
residential mortgage loans (including their overpayments).  The
loans are secured on first-priority charges over freehold and
leasehold properties in England, Wales, and Northern Ireland, or
first-ranking standard securities over heritable and long-
leasehold properties in Scotland.

Of the collateral pool, 70.29% was originated in 2006 and 2007.
GMAC-RFC Ltd. (now called Paratus AMC Ltd.) originated 44.50% and
Platform Funding Ltd. (PFL) originated 55.50%.  At closing, the
issuer purchased the portfolio from the sellers (PFL, Mortgage
Agency Services Number Four Ltd., and Mortgage Agency Services
Number Five Ltd.) and obtained the beneficial title to the
mortgage loans.

Western Mortgage Services Ltd. (WMS) a wholly owned subsidiary of
The Co-operative Bank acts as servicer for all of the loans in
the transaction.  The Co-operative Bank is currently in
negotiations with Capita PLC and it is expected that Capita will
acquire WMS and its servicing business, and assume responsibility
for The Co-operative Bank's other mortgage processing and
administration operations.

S&P's ratings reflect its assessment of the transaction's payment
structure, cash flow mechanics, and the results of S&P's cash
flow analysis to assess whether the rated notes would be repaid
under stress test scenarios.  Subordination, the principal
residual certificates, the general reserve fund, the excess
available revenue receipts, the overpayments ledger, and the
liquidity reserve fund (only for the class A and B notes) provide
credit enhancement to the notes.  Taking these factors into
account, S&P considers the available credit enhancement for the
rated notes to be commensurate with the ratings that it has


Warwick Finance Residential Mortgages Number One PLC
GBP1.501 Billion Mortgage-Backed Floating-Rate Notes And
Principal And Revenue
Residual Certificates

Class            Rating            Amount
                                 (mil. GBP)

A                AAA (sf)        1,088.00
B                AA (sf)           180.09
C                A+ (sf)            52.48
D                A (sf)             30.00
E                BBB (sf)           40.53
F                BB (sf)            46.55
Principal RC     NR                 63.00
Revenue RC       NR                   N/A

RC--Residual certificates.
NR--Not rated.
N/A--Not available.


* BOOK REVIEW: The Money Wars
Author: Roy C. Smith
Publisher: Beard Books
Softcover: 370 pages
List Price: $34.95
Review by David Henderson
Get your own personal today at

Business is war by civilized means. It won't get you a tailhook
landing on an n aircraft carrier docked in San Diego, but the
spoils of war can be glorious to behold.

Most executives do not approach business this way. They are
content to nudge along their behemoths, cash their options, and
pillage their workers. This author calls those managers "inertia
ridden." He quotes Carl Icahn describing their companies as run
by "gross and widespread incompetent management."

In cycles though, the U.S. economy generates a few business
warriors with the drive, or hubris, to treat the market as a
battlefield. The 1980s saw the last great spectacle of business
titans clashing. (The '90s, by contrast, was an era of the
investment banks waging war on the gullible.) The Money Wars is
the story of the last great buyout boom. Between 1982 and 1988,
more than ten thousand transactions were completed within the
U.S. alone, aggregating more than $1 trillion of capitalization.

Roy Smith has written a breezy read, traversing the reader
through an important piece of U.S. history, not just business
history. Two thirds of the way through the book, after covering
early twentieth century business history, the growth of financial
engineering after WWII, the conglomerate era, the RJR-Nabisco
story, and the financial machinations of KKR, we finally meet the
star of the show, Michael Milken. The picture painted by the
author leads the reader to observe that, every now and then, an
individual comes along at the right time and place in history who
knows exactly where he or she is in that history, and leaves a
world-historical footprint as a result. Whatever one may think of
Milken's ethics or his priorities, the reader will conclude that
he is the greatest financial genius this country has produced
since J.P. Morgan.

No high-flying financial era has ever happened in this country
without the frothy market attracting common criminals, or in some
cases making criminals out of weak, but previously honest men
(and it always seems to be men). Something there is about
testosterone and money. With so many deals being done, insider
trading was inevitable. Was Michael Milken guilty of insider
trading? Probably, but in all likelihood, everybody who attended
his lavish parties, called "Predators' Balls," shared the same

Why did the Justice Department go after Milken and his firm,
Drexel Burnham Lambert with such raw enthusiasm? That history has
not yet been written, but Drexel had created a lot of envy and
enemies on the Street. When a better history of the period is
written, it will be a study in the confluence of forces that made
Michael Milken's genius possible: the sclerotic management of
irrational conglomerates, a ready market for the junk bonds
Milken was selling, and a few malcontent capitalist like Carl
Icahn and Ted Turner, who were ready and able to wage their own
financial warfare.

This book is a must read for any student of business who did not
live through any of these fascination financial eras. Roy C.
Smith is a professor of entrepreneurship, finance and
international business at NYU, and teaches on the faculty there
of the Stern School of Business. Prior to 1987, he was a partner
at Goldman Sachs. He received a B.S. from the Naval Academy in
1960 and an M.B.A. from Harvard in 1966.


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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Information contained herein is obtained from sources believed to
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