TCREUR_Public/150515.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 15, 2015, Vol. 16, No. 95



AMERIABANK: Fitch Publishes 'B+' Long-Term IDR; Outlook Negative


CARINTHIA: Austrian Finance Minister Rules Out Insolvency


CARMEUSE HOLDING: S&P Affirms Then Withdraws 'BB' LT CCR


NUNAMINERALS A/S: Greenland Court to Declare Bankruptcy


GREECE: Slips Back Into Recession, Varoufakis Brings Up Debt Swap


ORWELL PARK: Fitch Assigns 'B(EXP)sf' Rating to Class E Notes
PERMANENT TSB: S&P Affirms 'B+' Long-Term Rating, Off Watch Neg


LUSITANO SME NO.1: Fitch Raises Class C Notes Rating to 'B-sf'


ASKO-LIFE: Bank of Russia Suspends Insurance License
POKROVITEL: Put Under Provisional Administration; License Revoked
REGIONAL INSURANCE: Bank of Russia Suspends License


CM BANCAJA 1: Fitch Affirms 'CCsf' Rating on Class E Notes


AZOVMASH: In Debt Restructuring Talks with Banks-Creditors

U N I T E D   K I N G D O M

PAPERLINX: Sells UK Packaging Arm to Antalis
REACT ENERGY: Files Petition to Appoint Examiner in High Court
SPHERE & TURRET: In Administration; Fife Stores Closed
TEN SQUARE: In Administration; 84 Jobs Affected
THE EMPORIUM: Shuts Down, More Than 100 Stall-Holders Locked Out

X-SUBSEA HOLDING: James Fisher Acquires Assets


* BOOK REVIEW: The Money Wars



AMERIABANK: Fitch Publishes 'B+' Long-Term IDR; Outlook Negative
Fitch Ratings has published the Long-term Issuer Default Rating
(IDR) rating of Ameriabank at 'B+' with a Negative Outlook.


Ameriabank's IDRs are driven by its Viability Rating (VR) of 'b+'.
The VR reflects the bank's high dollarization of the balance
sheet, significant risk concentrations, rapid recent growth in a
fairly high-risk environment and an only moderate loss absorption
capacity under pressure from an upward revaluation of FX-
denominated assets. The ratings also consider the bank's so far
reasonable financial metrics, sizeable liquidity buffer,
manageable refinancing risks and solid domestic franchise.

The bank's Support Rating Floor of 'No Floor' and '5' Support
Rating reflect Fitch's view that the Armenian authorities have
limited financial flexibility to provide extraordinary support to
banks, if necessary, given the banking sector's large foreign-
currency liabilities relative to the country's international
reserves. Potential support from the private shareholders is also
not factored into the ratings, as it cannot be reliably assessed.

The Negative Outlook on the bank's Long-term IDR is driven by a
weaker operating environment in Armenia, characterized by a
stagnating economy (we expect Armenia to fall into a mild
recession in 2015), devaluation pressures and higher interest
rates. In Fitch's view, this is likely to negatively impact the
bank's margins, asset quality, performance and potentially

Ameriabank has leading positions in domestic lending (13% market
share), trade finance and liabilities to customers (12%), despite
keen competition in the market. The bank's profitability is solid,
with return on average equity (ROAE) of 17.8% and return on
average asset (ROAA) of 2.1% in 2014, underpinned by growing
lending, stable funding costs and only moderate loan impairment
charges (LICs). Fitch expects profitability metrics to weaken in
2015, due to higher LICs as loans season in a challenging
environment, while funding costs are likely to rise, in line with
sector trends.

At end-2014, the share of non-performing loans (NPLs, over 90 days
overdue) was a low 2.3% of the total portfolio, in part reflecting
recent rapid loan expansion. Reserve coverage of NPLs was low at
41%, reflecting high reliance on collateral. Significant credit
risks also arise from concentrations (the top 25 groups of
borrowers accounted for 36% of gross loans or 2.5x of Fitch Core
Capital at end-2014) and from high FX lending (86% of the total),
mostly to unhedged borrowers, whose debt servicing capacity could
have been affected by the recent devaluation of the AMD and
recessionary environment.

In this context, the bank's loss absorption capacity is viewed as
only moderate. Fitch estimates that at end-1Q15, the bank could
have increased its loan impairment reserves/gross loans ratio only
to 3.5%, without breaching the regulatory capital adequacy limit
of 12%. Annual pre-impairment profit (equal to 3.8% of gross loans
in 2014) offers additional moderate loss absorption.

Non-deposit funding is significant (42% of end-2014 liabilities),
of which nearly half comes from International Financial
Institutions (IFIs), providing long-term funds to the bank. Annual
refinancing requirements are manageable in 2015 and onwards, while
the bank keeps a large amount of highly liquid assets (mostly cash
and equivalents, but also including a portion of unencumbered
government securities) equivalent to a quarter of the bank's
assets (40% of which is foreign currency liquidity) or around 60%
of customer deposits at end-1Q15.


The bank's credit metrics remain sensitive to the performance of
the economy and stability of the local currency. The ratings could
be downgraded if the weaker operating environment translates into
a marked deterioration in the bank's asset quality, performance
and capital metrics. Stabilisation of the country's economic
prospects would reduce downward pressure on the ratings.

The rating actions are as follows:


Long-term IDR: published at 'B+', Outlook Negative
Short-term IDR: published at 'B'
Viability Rating: published at 'b+'
Support Rating: published at '5'
Support Rating Floor: published at 'No Floor'


CARINTHIA: Austrian Finance Minister Rules Out Insolvency
Michael Shields at Reuters reports that Austrian Finance Minister
Hans Joerg Schelling said the cash-strapped province of Carinthia
will not go bust.

"No one wants Carinthia to go bust. It is the worst of all
solutions, and I rule out from my perspective that it comes to an
insolvency," he told Austrian broadcaster ORF on April 30.

Carinthia, home province of lender Hypo Alpe Adria, has been hit
hard by the bank's failure, the report notes.

It is pressing to regain access to borrowing through the federal
treasury to avoid running out of cash, and is trying to get Vienna
to share the load of more than EUR10 billion (US$11.2 billion) in
Hypo debt guarantees it granted, according to the report.

Mr. Schelling has offered to help but only if Carinthia adopts
financial reforms, says Reuters.

Pressed on whether he could exclude the possibility 100 percent,
he said: "For me, I rule this out 100 percent," Reuters relays.


CARMEUSE HOLDING: S&P Affirms Then Withdraws 'BB' LT CCR
Standard & Poor's Ratings Services affirmed its 'BB' long-term
corporate credit rating on Belgian lime producer Carmeuse Holding
S.A. We subsequently withdrew the rating at the company's request,
said S&P.

At the time of the withdrawal, the outlook was stable.

On May 1, 2015, Carmeuse fully repaid, in advance, its EUR450
million high-yield bonds due in 2018, replacing it with bank debt
at favorable conditions. As a result, Carmeuse has no outstanding
rated or public debt, and it asked S&P to withdraw all our

At the time of withdrawal, the rating and stable outlook reflected
S&P's core assumption that Carmeuse will be able to sign new,
material, long-term bank lines in the short term that help
refinance its bridge loan and other debts, while ensuring EUR100
million of availability.

S&P said, "The rating reflected our view of Carmeuse's business
risk profile as "satisfactory," stemming from the company's strong
market position as one of the largest players in the highly
fragmented and regional lime market, with 2014 revenues of EUR1.1
billion. Our business risk assessment also captured the company's
supportive profitability, with an EBITDA margin higher than 20%
and stay-in-business capital expenditure at about 50% of EBITDA.
These strengths are, however, partly offset by Carmeuse's exposure
to cyclical end markets such as steel, accounting for 21% of
revenues in 2013, and building and construction, accounting for
41%. Another constraint relates to the capital-intensive nature of
limestone production.

"The rating also captured our assessment of Carmeuse's financial
risk profile as "significant," given our assumption of funds from
operations (FFO) to debt at about 25%, and our view that the
company's growth-oriented strategy will likely fully or almost
fully absorb free operating cash flow (FOCF) or result in some
debt-funded growth capital expenditure or acquisitions.

The stable outlook at the time of the withdrawal reflected the
balance between a degree of financial leeway at Carmeuse, against
the potential for negative FOCF in 2015 as a result of peak
capital expenditures due to high investments for expansion.

"Under our base-case scenario, we forecast adjusted FFO to debt of
about 25% for Carmeuse in 2015, which we saw as commensurate with
the rating."


NUNAMINERALS A/S: Greenland Court to Declare Bankruptcy
NunaMinerals A/S confirmed in the April 19, 2015 company
announcement no. 11 that the meeting at which the Court of
Greenland can declare bankruptcy is scheduled to take place on
Friday, May 15, 2015.

Announcement No. 11 reveals that the Company's Board of Directors
have decided on filing bankruptcy for NunaMinerals.  Prior to the
publication of the announcement regarding NunaMinerals' filing for
bankruptcy, a letter proposal was made by Greenland Mining
Management Ltd. (GMM) on certain conditions.  The Government of
Greenland, however, as the largest shareholder in NunaMinerals,
did not find the proposal acceptable.

Subsequently, GMM worked out a new model for NunaMinerals'
operations, which is currently being discussed with the government
and NunaMinerals.  Whether such ongoing discussions may lead to a
last minute solution for restructuring NunaMinerals' activities is
still very uncertain at this point in time.

The Board of Directors will provide a further update to the market
as soon as there are any further developments.


GREECE: Slips Back Into Recession, Varoufakis Brings Up Debt Swap
The Wall Street Journal's Marcus Walker reports that Greece
slipped back into recession in the first quarter, European Union
data confirmed on May 13, showing how the confrontation between
the Athens government and its creditors and uncertainty about the
country's ability to pay its debts is taking a fresh toll on its
battered economy.

Greek gross domestic product fell 0.2% in the first quarter
compared with the previous quarter, according to seasonally
adjusted data from the EU's statistics arm, Eurostat, The Journal
discloses.  That followed a 0.4% contraction in the fourth quarter
from the third. Recessions in Europe are commonly defined as two
or more successive quarterly contractions in GDP, The Journal

Political uncertainty has been weighing on Greece's economy since
late 2014, reversing a tentative recovery that began early last
year, The Journal notes.

Greece's snap elections in January, which resulted in the election
of a new government led by the radical-left Syriza party, have led
to a monthslong standoff between Athens and its lenders -- the
rest of the eurozone and the International Monetary Fund -- about
the conditions of fresh bailout aid, The Journal relates.

Uncertainty about whether Greece's government might default on its
debts this summer, potentially leading to the country's exit from
the euro, has unnerved businesses, consumers and bank depositors,
The Journal states.  The country now finds itself back in the
downturn that has wiped out a quarter of its economic output since
2008, according to The Journal.

                            Debt Swap

Lefteris Papadimas and Renee Maltezou at Reuters report that
Greece's finance minister on May 14 said repayment of what Greece
owes to the European Central Bank should be pushed into the
future, but it is not an option because it fills ECB chief
Mario Draghi's "soul with fear".

Yanis Varoufakis said Mr. Draghi, president of the European
Central Bank, cannot risk irritating Germany with such a debt swap
because of Berlin's objection to his bond-buying program, Reuters

Mr. Varoufakis first raised the idea of swapping Greek debt for
growth-linked or perpetual bonds when his leftist government came
to power earlier this year, but Athens has since dropped the
proposal after it got a cool reception from euro zone partners,
Reuters recounts.

The outspoken minister, who has been sidelined in talks with
European Union and International Monetary Fund lenders, brought it
up again on May 14, saying EUR27 billion of bonds owed to the ECB
after EUR6.7 billion worth are repaid in July and August should be
pushed back, Reuters discloses.

"What must be done (is that) these 27 billion of bonds that are
still held by the ECB should be taken from there and sent
overnight to the distant future," Reuters quotes Mr. Varoufakis
as saying.

"How could this be done? Through a swap.  The idea of a swap
between the Greek government and the ECB fills Mr. Draghi's soul
with fear.  Because you know that Mr. Draghi is in a big struggle
against the Bundesbank, which is fighting against QE. Mr. Weidmann
in particular is opposing it."

Mr. Varoufakis was referring to the ECB's quantitative easing (QE)
or bond-buying plan and Bundesbank President Jens Weidmann's
unabashed criticism of it, Reuters notes.

Mr. Varoufakis, as cited by Reuters, said the bond-buying plan is
"everything for Mr. Draghi" but that "allowing such a swap of our
own new bonds with these bonds . . . would feed Mr. Weidmann with
excuses to create problems with the ECB's QE."


ORWELL PARK: Fitch Assigns 'B(EXP)sf' Rating to Class E Notes
Fitch Ratings has assigned Orwell Park CLO Limited notes expected
ratings, as follows:

Class A-1: 'AAA(EXP)sf'; Outlook Stable

Class A-2: 'AA+(EXP)sf'; Outlook Stable

Class B: 'A(EXP)sf'; Outlook Stable

Class C: 'BBB(EXP)sf'; Outlook Stable

Class D: 'BB+(EXP)sf'; Outlook Stable

Class E: 'B(EXP)sf'; Outlook Stable

Subordinated notes: not rated

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

Orwell Park CLO Limited 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 all
but one of the obligors in the identified portfolio. The
covenanted maximum Fitch weighted average rating factor (WARF) for
assigning expected ratings is 34. The WARF of the identified
portfolio is 32.8.

High Recovery Expectations
The portfolio will comprise a minimum 90% senior secured
obligations. The covenanted minimum weighted average recovery rate
(WARR) for assigning expected ratings is 67.5%. The WARR of the
identified portfolio is 72.0%.

Diversified Asset Portfolio
Unlike other CLO 2.0s, 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 Exposure
Fitch modelled both a 5% and a 0% fixed-rate bucket in its
analysis, and the rated notes can withstand the interest rate
mismatch associated with both scenarios.

Participation Agreement
At closing, the issuer will enter into a participation agreement
with Blackstone/GSO Corporate Funding Limited (the seller)
regarding the initial portfolio assets. The seller has granted the
issuer a fixed charge over the initial portfolio assets while the
title is being transferred to the issuer. A fixed charge over such
financial assets is difficult to establish, given the lack of
control. However, Fitch received a legal opinion that the fixed
charge in this case is likely to be upheld, given the control over
the accounts of the seller.


Net proceeds from the notes issue will be used to purchase a
EUR400 million portfolio of mostly European leveraged loans and
bonds. The portfolio is managed by Blackstone/GSO Debt Funds
Management Europe 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 three notches for the rated notes. A 25%
reduction in expected recovery rates would lead to a downgrade of
up to three notches for the rated notes.


The majority of the underlying assets have ratings or credit
opinions from Fitch. Fitch has relied on the practices of the
relevant Fitch groups 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.

PERMANENT TSB: S&P Affirms 'B+' Long-Term Rating, Off Watch Neg
Standard & Poor's Ratings Services said that it affirmed its 'B+'
long-term counterparty credit rating on Permanent TSB PLC (PTSB).

"At the same time, we removed the ratings from CreditWatch, where
we had initially placed them with negative implications on
Oct. 30, 2014. The outlook is positive. We also affirmed the
short-term counterparty credit rating at 'B'," S&P said.

The affirmation of the ratings reflects our view that the
successful completion of the bank's capital raise -- comprising
EUR400 million common equity plus EUR125 million additional tier 1
(AT1) securities -- combined with its deleveraging commitments to
the European Commission (EC), substantially reduce downside risks
to our combined view of the bank's capital and risk positions.

We calculate PTSB's risk-adjusted capital (RAC) ratio before
diversification adjustments to be 7.8% at end-2014. This
represents a significant increase from 6.3% at end-2013, primarily
reflecting a decline in Standard & Poor's risk-weighted assets
(RWAs) due to an improvement in our view of economic risk
in Ireland, some reduction in exposures, and a narrowing of PTSB's
statutory pre-tax loss to EUR48 million in 2014 from EUR668
million in 2013. We expect that the RAC ratio will increase
further to the 8.5%-9% range by end-2016, a projection that
enables us to raise our assessment of capital and earnings to
"adequate" from "moderate," as our criteria define these terms.
The key assumptions underpinning this forecast are as follows: As
a result of the capital raise, total adjusted capital (TAC), the
numerator of the RAC ratio, benefits from the additional EUR400
million common equity and the issuance of EUR125 million AT1
securities. The AT1 securities receive intermediate equity credit
in line with our criteria. The notes are perpetual instruments and
have loss absorption features on a going-concern basis as the bank
has the ability to suspend coupons at any time.

In line with the EC restructuring plan, disposal of the group's
EUR6.5 billion of buy-to-let (BTL) loans from its U.K. CHL
portfolio at a discount of 10% of the book value, plus
approximately EUR80 million of transaction costs, results in a
large statutory loss in 2015 and to a lesser extent in 2016. These
disposal losses are partly offset by disposal gains on the sale of
the EUR1.7 billion commercial real estate (CRE) portfolio. Overall
net interest margin (NIM) continues its trajectory of gradual
improvement on the back of lower funding costs and improved
margins on new lending, which serve to mitigate the continued drag
on margins from tracker mortgages.
Loan loss rates remain slightly below 40 basis points (bps) over
the forecast horizon, reflecting a lower level of new defaults,
adequate provision coverage of nonperforming loans (NPLs), and the
disposal of noncore portfolios. Importantly, we do not at this
time assume any further provision releases resulting from changes
in house price assumptions.

Standard & Poor's RWAs decline to reflect announced deleveraging
measures. That said, reductions in RWAs lag the decline in gross
loans because the U.K. CHL portfolio attracts a lower risk weight
relative to Irish mortgage assets.

S&P said, "Our assessment of PTSB's risk position as "adequate"
continues to reflect our view that the risk weights applied to
PTSB's Irish mortgage exposures are sufficiently conservative to
capture the risk profile of the loan book. It further reflects our
view that unlike other Irish peers, PTSB avoided the worst
elements of Irish commercial real estate (CRE) lending. Post the
deleveraging measures, PTSB's predominant exposures will be in
Irish owner-occupier and BTL mortgages. In this context, we
consider that PTSB's reported provision coverage of NPLs at end-
2014 of the core residential mortgage portfolio at 45% is broadly
in line with industry norms. Although PTSB's reported headline NPL
ratio remains high at 26% (at end-2014), we note the progress PTSB
has made to engage with customers and agree on restructuring
solutions. Finally, the pace of new defaults slowed materially in
2014 to EUR861 million from EUR1,869 million in 2013.

"We have revised upward our assessment of PTSB's liquidity to
"moderate" from "weak". This reflects our view that PTSB's
liquidity position has improved, with reduced usage of ECB funding
(to 15% of total funding in 2014 from 34% in 2011), retirement of
a EUR3.1 billion own use bond in late 2014, and the
repayment of a EUR1.4 billion medium-term note in early March
2015. PTSB no longer has large or unusual liquidity needs and
should be in a position to maintain its current liquidity profile
under benign market conditions, in our view.

"As a result of the improvement in PTSB's liquidity assessment, we
have revised up the stand-alone credit profile (SACP) to 'b+' from
'b'. Nevertheless, we have not raised the issuer credit rating at
this time due to the application of a negative notch of
adjustment. This adjustment factor reflects the following:
Notwithstanding the capital raise, PTSB has some way to go in
returning to steady-state, sustainable profitability. The bank is
unlikely to be profitable before the second half of 2016 and to
report full-year profits before 2017. This compares unfavorably to
larger peers Bank of Ireland (BOI) and Allied Irish Banks (AIB),
which returned to profitability in 2014.

"Despite the progress in addressing NPLs, the high stock of NPLs
(and our expectation of a gradual decline) represents tail risk if
the Irish economic recovery falters. PTSB's future asset quality
evolution is to a large extent predicated on a continuation of
Irish macroeconomic recovery, in our view. The positive outlook
indicates the likelihood that we could raise the rating (and
remove the negative adjustment notch) over the next one to two
years if PTSB's pre-provision earnings capacity and statutory
profitability improve faster than we currently expect.

"We could revise the outlook to stable if we perceive that PTSB's
earnings capacity and profitability will continue to materially
lag the wider industry."


LUSITANO SME NO.1: Fitch Raises Class C Notes Rating to 'B-sf'
Fitch Ratings has upgraded Lusitano SME No.1 plc's class C notes
and affirmed the class A and B notes, as follows:

Class A notes affirmed at 'A+sf'', Outlook Stable

Class B notes affirmed at 'AAAsf', Outlook Stable

Class C notes upgraded to 'B-sf' from 'CCCsf', Outlook Stable

Lusitano SME No.1 plc is a cash flow securitization of a EUR862.6
million revolving pool of loans granted to Portuguese small and
medium enterprises by Novo Banco. In accordance with the
transaction documents, the revolving period ended in February


The upgrade of the class C notes reflects their increase in credit
enhancement as a result of the continuing amortization of the
underlying portfolio. Over the past year, the class A notes have
paid down to 0.8% and the class B and C to 64.7% of their original

The class A notes have been affirmed at 'A+sf' as their rating is
capped at six notches above the sovereign rating of Portugal
(BB+/Positive/B). The Stable Outlook also reflects the 'A+sf'
transaction rating cap due to payment interruption risk from the
highly volatile reserve fund. The class B notes have been affirmed
at 'AAAsf' as the tranche is guaranteed by the European Investment
Fund (EIF; AAA/Stable/F1+).

The reserve fund is highly volatile and was below its target level
as of August and November 2014 payment data, leading to sequential
amortization of the notes. In January 2015, the reserve fund was
at its required amount and so the notes switched to pro-rata
amortization for the fourth times since the inception of the
transaction. Further pro-rata amortization is possible if the
reserve fund remains at its required amount.

Concentration risk has increased as the portfolio pays down. As of
the January 2015 investor report, the number of performing
obligors in the pool has decreased to 247 from 335 as of the last
review and the top 10 obligors have increased to 37.7% from 31.5%
of the performing balance. In Fitch's view, the available
protection for the rated notes adequately addresses the
concentration risk.


Fitch incorporated several stress tests to analyze the ratings'
sensitivity to a change in the underlying scenarios. The first
test simulated an increase of the default probability by 25%,
whereas the second test reduced recovery assumptions by 25%.

Both tests indicated that the class C notes would be downgraded to
'CCCsf' or below should either scenario materialize. The class A
and B notes would not be impacted given the high credit
enhancement available and the guarantee of the EIF on the class B


ASKO-LIFE: Bank of Russia Suspends Insurance License
By its Order No. OD-998, dated May 7, 2015, the Bank of Russia
suspended the insurance license of Insurance Company ASKO-Life, a
limited liability company.

The decision is taken due to the insurer's failure to duly meet
the Bank of Russia instruction, particularly, financial stability
and solvency requirements in terms of creating insurance reserves,
procedure and conditions to invest equity and insurance reserve
funds.  The decision becomes effective the day it is published in
the Bank of Russia Bulletin.

The suspension of license prohibits the insurance agent from
entering into new contracts of insurance and introducing
amendments resulting in increase in insurance agent's obligations
under the current contracts.

The insurance company must accept notifications of claim and meet
its obligations.

POKROVITEL: Put Under Provisional Administration; License Revoked
The Bank of Russia took a decision to appoint a provisional
administration to the insurance company Insurance House
Pokrovitel, a limited liability company.

The decision to appoint a provisional administration was taken due
to the suspension of the Company's insurance license (Bank of
Russia Order No. OD-1034, dated 12 May 2015).

The powers of the executive bodies of the Company are suspended.

Igor Rekunov, member of the non-profit partnership Far-Eastern
Interregional Self-Regulatory Organisation of Professional
Receivers, has been appointed as a head of the provisional

REGIONAL INSURANCE: Bank of Russia Suspends License
By its Order No. OD-997, dated May 7, 2015, the Bank of Russia
suspended the insurance license of Regional Insurance Centre, a
limited liability company.

The decision is taken due to the insurer's failure to duly meet
the Bank of Russia instructions, particularly, financial stability
and solvency requirements in terms of creating insurance reserves,
procedure and conditions to invest equity and insurance reserve
funds. The decision becomes effective the day it is published in
the Bank of Russia Bulletin.

The suspension of license prohibits the insurance agent from
entering into new contracts of insurance and introducing
amendments resulting in increase in insurance agent's obligations
under the current contracts.  The insurance company must accept
notifications of claim and meet its obligations.


CM BANCAJA 1: Fitch Affirms 'CCsf' Rating on Class E Notes
Fitch Ratings has upgraded CM Bancaja 1, FTA's class B notes and
affirmed the others as follows:

EUR8.8 million class B (ES0379349014): upgraded to 'AA+sf' from
'Asf'; Outlook Stable

EUR14 million class C (ES0379349022): affirmed at 'BBsf', Outlook

EUR13.2 million class D (ES0379349030): affirmed at 'Bsf'; Outlook

EUR13.8 million class E (ES0379349048): affirmed at 'CCsf'; RE 0%

CM Bancaja 1, FTA is a cash flow securitization of a static pool
of loans to Spanish SMEs granted by Caja de Ahorros de Valencia
Castellon y Alicante (Bancaja, now part of Bankia S.A., BBB-
/Negative/F3). The issuer is represented by Titulizacion de
Activos SGFT, SA (the Sociedad Gestora), a securitization fund
management company incorporated under the laws of Spain.


The transaction has significantly deleveraged over the past 12
months, with the class A notes having been paid in full and class
B notes representing only 34.7% of its original balance. This has
increased the credit enhancement (CE) for the class B C and D
notes by 27.4%, 16.4% and 6.0% to 105.0%, 66.0% and 29.4%,

The upgrade of the class B notes to 'AA+sf' is due to the high
level of CE. Their rating is capped at six notches above the
sovereign rating of Spain (BBB+/Stable/F2).

The performing portfolio factor decreased to 6.6% from 9.2% at
last review and the number of obligors decreased to 35 from 47.
The largest obligor accounts for 14.1% of the transaction and the
10 largest obligors make up 60% of the transaction. As the pool
has amortized it has become heavily concentrated. The affirmation
reflects both the increased CE and portfolio concentration.

The Negative Outlook on the class D notes reflects the notes'
exposure to underlying obligor concentration and reliance on
future recoveries to pay back noteholders.

Current defaults have increased to 14.2% from 8.2% of the
outstanding balance (not including defaults) at last review. This
is due to a combination of new defaults and smaller outstanding
balance as the loans are being paid down. Large obligors move in
and out of the delinquency buckets, causing volatile performance
over the lifetime of the deal. Loans that are in arrears by 90+
days and by 180+ days have decreased to 0% from16.3% and 2.5% of
the outstanding balance, respectively. Both buckets were 1.5% two
years ago. The weighted average recovery rate is 48% of the total
defaults since closing in September 2005.

The reserve fund is slightly under-funded at EUR10.6m with a
target amount of EUR13.8m.


Fitch has run two sensitivity scenarios. We increased the default
probability by 25% and reduced the recovery rate by 25%. Both
resulted in a one-notch downgrade of the class D notes.


AZOVMASH: In Debt Restructuring Talks with Banks-Creditors
Interfax-Ukraine reports that Azovmash has held negotiations with
banks-creditors as part of the plan to restructure its credit
liabilities, and a draft "Memorandum of Non-Aggression" has been
sent to the banks.

Agreements on the extension of payment terms for the period which
are enough for restructuring were signed with large banks
Ukrainian banks -- Ukreximbank, VTB and Subsidiary Bank of
Sberbank of Russia, Interfax-Ukraine says, citing an open letter
written by Azovmashinvest Holding Director Keimpe Reitsma to
Mariupol Mayor Yuriy Khotlubei, which has been posted on
Azovmash's website.

The letter said "Unfortunately, we cannot reach an understanding
with public JSC Alfa-Bank.  We continue working", Interfax-Ukraine

Mr. Reitsma, as cited by Interfax-Ukraine, said the company plans
to hold a second round of talks in May and expects that the debt
restructuring parameters will be reached with all banks and the
"Memorandum of Non-Aggression" will be signed.

Azovmash is a Ukraine-based heavy engineering company.

U N I T E D   K I N G D O M

PAPERLINX: Sells UK Packaging Arm to Antalis
Nic White at ProPrint reports that Paperlinx has managed to sell a
third piece of its crumbling UK business, offloading the packaging
supplies arm to rival Antalis.

Meanwhile, senior Paperlinx executives across Europe are jumping
ship or being pushed overboard as the company prepares to downsize
back to the Asia Pacific, with company secretary Michelle Wong and
chief financial officer Joost Smallenbroek both departing,
according to ProPrint.

The report notes that the three packaging subsidiaries were some
of the few parts of the British operation not sent into
administration six weeks ago, and are therefore likely still in
decent shape despite being up for sale since the rest of it

According to sister magazine PrintWeek, all 63 staff have been
retained and will continue to serve the primarily local client
base, all within a 45km radius of the three businesses, the report

Antalis Managing Director David Hunter said the three companies
have combined turnover of more than GBP20 million (A$39 million),
and that he and his team were 'thrilled to bits' at securing the
business, the report relays.

"We were interested from day one.  We looked at all the
opportunities Paperlinx had to offer, and had wide-ranging
discussions with Deloitte.  But these three packaging businesses
were the bits we were really interested in," the report quoted Mr.
Hunter as saying.

REACT ENERGY: Files Petition to Appoint Examiner in High Court
REACT Energy plc on May 13 disclosed that the directors of REACT
and its related companies Newry Biomass Limited, Enfield Biomass
Limited, Reforce Energy Limited, Grass Door Limited and Plymouth
Biomass Limited have applied to the High Court in Dublin to seek
the appointment of an examiner.  REACT and related companies are
now under the protection of the court under the examinership

Under Irish Law, the examinership process provides court
protection to enable the appointed examiner of companies to put
together a scheme of arrangement with creditors with a view to
allowing the companies to trade as sustainable businesses post
the examinership.

REACT and related companies have sought to enter examinership with
the objective of restructuring the business to create a
sustainable business model which is currently hampered due to
funding issues arising from inter alia disputes with landlords and
legal actions by certain creditors.

The decision to seek examinership follows the suspension of
funding discussions with a strategic investor which resulted from
a dispute with the landlord on its Enfield site, related
difficulties in financing the repowering of its Newry site and
actions taken by certain creditors of REACT and related companies.

An Independent Accountants' Report from Grant Thornton on REACT
and related companies has concluded that it is possible for a
sustainable and profitable business to emerge from the
examinership process based on a restructuring of REACT and related
companies.  Altair Group Investment Limited, an existing loan note
holder, is prepared to support REACT throughout the examinership
process and together with a third party strategic investor have
indicated that they would be prepared to invest in REACT to
facilitate a scheme of arrangement for the restructured business.

REACT also disclosed that as part of the examinership process it
has issued a loan note to Altair Group Investment Limited
("Altair") for up to EUR500,000.  The proceeds of the loan note
will be used to fund the examinership process.  The loan note is
repayable 14 business days after the end of the examinership
period and carries an annual interest rate of 9%.  REACT has also
signed a Deed of Amendment and Confirmation with Altair the
purpose of which is to confirm that the security attaching to
the one year GBP1.5 million 9% Secured Loan Note issued to Altair
announced on June 24, 2014 comprising a first charge held by REACT
in its project operating and development companies, also attaches
to further monies advanced by Altair to REACT.

REACT Energy plc is a developer and operator of energy
infrastructure using clean technologies in the UK and Ireland. The
Group was founded in 2005 and listed on the Alternative Investment
Market in October 2008.

SPHERE & TURRET: In Administration; Fife Stores Closed
Lori Cormack at Fife Today reports that Sphere & Turret called in
administrators on May 13.

In Fife, stores in Kirkcaldy, Leven, Glenrothes and Dunfermline
have closed, while shops in Forfar, Clydebank, Kirkintilloch,
Broughty Ferry, Arbroath and Cumbernauld have also shut down, Fife
Today relates.

It is believed at least five staff members at that store have been
left without a job, with hundreds more across Scotland now
unemployed as well, Fife Today discloses.

Sphere & Turret is one of Scotland's largest retailers.  It has 16
stores across Scotland.

TEN SQUARE: In Administration; 84 Jobs Affected
John Mulgrew at Belfast Telegraph reports that a number of staff
have been let go at Belfast hotel Ten Square following its
administration, with the business owing creditors more than GBP4

Now a detailed statement of proposals from the administrators EY
has outlined the extent of the business's debts, Belfast Telegraph

The hotel -- which was run under the company name of Yorkshire
House Ltd. -- had its debt bought from the National Asset
Management Agency, the Republic's bad bank, by Promontoria Eagle
Ltd. last July, Belfast Telegraph recounts.

But the company was "unable to meet its debt when they fell due"
and despite "debt restructuring arrangements" being discussed with
the directors "negotiations were unsuccessful", Belfast Telegraph

That led to administrators being appointed, Belfast Telegraph

According to Belfast Telegraph, it owes Promontoria Eagle Ltd., a
company which is linked to Cerberus, almost GBP3 million.

Yorkshire House Limited also guarantees debt out to Promontoria by
its parent company Killynether Ltd., amounting to more than GBP15
million, Belfast Telegraph says, citing administrators.

It had employed 84 full and part-time staff, but administrators
have said that "unfortunately it has been necessary to make a
number of staff redundant" since taking the wheel at the hotel,
Belfast Telegraph relates.

The four-star venue is now being operated by Ireland's largest
hotel firm, Dalata, and being run as normal, Belfast Telegraph

Creditors are now owed around GBP4.2 million from Ten Square,
which the report says amounts to "at least 10% of the total debts
of the company", Belfast Telegraph notes.

According to Belfast Telegraph, the administrators' report also
states: "It is highly unlikely that there will be sufficient funds
available to enable a distribution to the unsecured creditors
other than by virtue of the prescribed act".

Ten Square occupies a Grade 1 listed building within Donegall
Square called Yorkshire House.

THE EMPORIUM: Shuts Down, More Than 100 Stall-Holders Locked Out
Darren Slade at Bournemouth Echo reports that a new indoor
shopping attraction has closed at short notice, leaving more than
100 stall-holders locked out.

The Emporium opened last month in the former Mostyn's curtain
factory in Bridge Street, Christchurch.  But the business became
insolvent after its two directors had a "falling out" and it has
stopped trading, the report relates.

According to the report, the business opened on April 18, bringing
together arts and crafts businesses in a "village fete-style"
atmosphere. It was opened without planning permission, leaving
Christchurch councillors to consider a retrospective application,
the report says.

Bournemouth Echo relates that Gemma Laurent, partner with
Bournemouth-based insolvency adviser Mark Liddle Partnership, said
a "falling out between the directors" had led to the rent going

"The business is insolvent. It can't pay its debts when they fall
due," the report quotes Ms. Laurent as saying.  "It has not been
trading long, but there has been a dispute between the directors."

The two directors involved in the dispute were 50-50 shareholders
in the business, the report notes.

"We have been instructed by one of the directors, Leslay-Ann
Simmons. She's unable to make any decision to instruct us to put
the business into liquidation without the consent of the other
director. You need 75 per cent of shareholders to agree," Ms.
Laurent, as cited by Bournemouth Echo, as saying.  "She has asked
us to try to find a resolution."

Bournemouth Echo relates that the insolvency advisers would be
aiming to contact the other director, Simon O'Sullivan, to see
whether the business could resume trading or would have to fold.

According to the report, Ms. Laurent said the company employed two
full-time staff and there were 117 stall-holders. "The company
took all the sales proceeds and then paid out to each trader based
on a commission," she said.

She understood the business was a week in arrears paying the stall
holders, the report adds.

X-SUBSEA HOLDING: James Fisher Acquires Assets
---------------------------------------------- reports that James Fisher & Sons has purchased
the assets and intellectual property rights of X-Subsea Holding
Limited for a total consideration of GBP14.8 million

Headquartered in Aberdeen, X-Subsea went into administration on
April 27, following the collapse of its Norwegian parent company
Reef Subsea AS, according to

The report notes that X-Subsea was a world leading designer and
operator of specialized excavation, trenching and dredging
equipment, which is rented and operated worldwide for subsea
operations in the oil & gas, telecoms and renewable energy

It was the main competitor of James Fisher Mass Flow Excavation,
operating from bases in Aberdeen, Dubai, Singapore, and the Gulf
of Mexico.  Its equipment and tools, many of which are patented,
are used in challenging environments to prevent damage to
pipelines, cables, structures and the environment, the report


* 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.

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 information.

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

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, Editors.

Copyright 2015.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000 or Nina Novak at

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