TCREUR_Public/150820.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Thursday, August 20, 2015, Vol. 16, No. 164

                            Headlines

F R A N C E

LABCO SA: Fitch Cuts Long-Term Issuer Default Rating to 'B'


G E R M A N Y

TUI AG: Moody's Confirms Ba3 CFR & Changes Outlook to Positive


G R E E C E

GREECE: German MPs Support Third Bail-Out, Rutte Faces Backlash
GREECE: Fitch Raises Long-Term Issuer Default Ratings to 'CCC'


I R E L A N D

ANGLO IRISH: Ireland Speeds Up Bond Sales Tied to Liquidation
SPENCER DOCK: Costs Linked to Receivership Soar


I T A L Y

PARMA FOOTBALL CLUB: Trophies Put Up for Auction


L U X E M B O U R G

THESEUS EUROPEAN: Moody's Affirms Ba2 Rating on Class E Notes


N E T H E R L A N D S

ARES EUROPEAN III: Moody's Affirms B1 Rating on Class E Notes
ARES EUROPEAN VII: Fitch Affirms 'B-sf' Rating on Class E Notes
E-MAC DE 2006-II: S&P Lowers Rating on Class D Notes to 'CCC'


P O L A N D

LOT AIRLINES: CEO Steps Down, Investor Talks in Advanced Stage


R U S S I A

RUSSIA: Revenue Growth Negatively Impacts Budgets, Fitch Says
RUSSIA: Fitch Says Tax Proceeds Drop Undermines LRGs' Performance
UTAIR: Faces Another Lawsuit From Tatfondbank
UTAIR LEASING: MTS Bank Files Request to Drop Bankruptcy Suit


S P A I N

PESCANOVA SA: Creditors Reject Restructuring Proposal


U N I T E D   K I N G D O M

BSL BUILT: In Administration, Faces GBP200K of Court Judgements
ENERGY NORTH: Goes Into Liquidation
LECKS TRAVEL: Shuts Down Operations, Cuts 11 Jobs
ULYSSES NO 27: Fitch Lowers Rating on Class D Notes to 'CCsf'
UNIVERSAL ENGINEERING: In Administration, 50 Jobs Affected


X X X X X X X X

* Moody's Says EMEA 60-90 Days Delinquency Rate Dipped in January


                            *********



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F R A N C E
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LABCO SA: Fitch Cuts Long-Term Issuer Default Rating to 'B'
-----------------------------------------------------------
Fitch Ratings has downgraded France-based clinical laboratory
services group Labco SA's Issuer Default Rating (IDR) to 'B' from
'B+' and removed it from Rating Watch Negative (RWN). The Outlook
is Stable. The IDR, together with the instrument ratings on
Labco's existing super senior revolving credit facility (RCF)
(BB/RR2) and its EUR700m senior secured notes due 2018 (BB-/RR3),
has been withdrawn.

The rating action follows the completion of the acquisition of
Labco by funds advised by Cinven via Ephios Bondco PLC (Ephios;
B(EXP)/Stable), and the repayment of Labco's legacy debt
instruments. This has resulted in the removal of the RWN, on
which the ratings were placed on 11 June 2015 on the agency's
view that the acquisition would lead to a slightly more leveraged
capital structure and hence no headroom at the previous rating
level.

The expected ratings on Ephios and Ephios Holdco II PLC (Ephios
Holdco) assigned as part of the acquisitions of Labco and synlab
Holding GmbH (Synlab) by funds advised by Cinven and their
proposed merger have been affirmed at their existing levels.
Ephios' IDR has been affirmed at 'B(EXP)' with a Stable Outlook.
Ephios' EUR1.48 billion senior secured notes due 2022 have been
affirmed at 'B+(EXP)'/'RR3'. Ephios' super senior revolving
credit facility (RCF) -- rated 'BB-(EXP)'/'RR2' -- remains on
Rating Watch Positive (RWP) while Fitch has further affirmed
Ephios Holdco's planned EUR375m senior notes due 2023 at
'CCC+(EXP)'/'RR6'.

The assignment of the final ratings and the resolution of the RWP
are contingent on the completion of the acquisition of Synlab and
its merger with Ephios, the receipt of final documents materially
conforming to information already reviewed and the publication of
audited consolidated statements for the combined group.

Once these conditions have been satisfied, Fitch expects to
assign a final IDR of 'B' to Ephios and then transfer it to
Ephios Holdco, the new top holding entity within the enlarged
restricted borrowing group. We also expect to upgrade the
enlarged super senior RCF to 'BB'/'RR1'.

KEY RATING DRIVERS FOR EPHIOS' IDR

Weak Financial Metrics

The proposed capital structure backing the acquisition of Synlab
and its merger with Ephios will maintain a high funds from
operations (FFO) adjusted gross leverage close to 8.0x. Fitch
believes such high leverage is not commensurate with a 'B' IDR
but it expects gradual deleveraging over the next two years
driven by the combined group's positive free cash flow (FCF).

"We also expect FFO fixed charge cover to improve mildly from our
forecast low point of around 1.7x post-merger. These metrics are
weak relative to peers including Cerberus Nightingale 1 SA
(Cerba; B+/Negative) and Quest Diagnostics Inc. (BBB/Stable),"
Fitch said.

Moderate Deleveraging Prospects

The rating conservatively assumes that Ephios Holdco will
continue with Ephios' and Synlab's respective consolidation
strategies of sourcing and executing low-risk bolt-on
acquisitions of laboratories at attractive multiples and
extracting synergies, driven by the fragmented nature of the
European laboratory testing market and weak organic growth
prospects. As a result Fitch expects FFO adjusted gross leverage
to only gradually reduce to below 7.0x by 2017, a level
compatible with an IDR of 'B' for the sector. Any large,
transformational M&A would be considered as event risk.

Leader in European Laboratory Services

The rating reflects the enlarged group's market position as the
largest clinical laboratory services group in Europe by revenue.
The planned combination of Ephios and Synlab will expand Ephios'
existing presence and place the combined entity as a top-three
player in its core markets. It will reduce the exposure to single
healthcare systems and therefore help strengthen the resilience
of cash flows and earnings.

Steady Profitability

"The merger would slightly dilute Ephios' legacy EBITDA margin as
Synlab has significant exposure to a lower-margin market
(Germany). We believe that the combined group is somewhat reliant
on extracting cost savings from this greater scale, which may be
limited due to little overlap between Ephios' and Synlab's
existing operations. As a result we only expect a mild
improvement in profitability by 2017," Fitch said.

Subdued Organic Performance

Fitch expects the pricing environment to remain challenging in
Ephios Holdco's key markets, namely Germany (29% of 2014 pro
forma sales), France (24%), Italy (12%), Spain (8%) and
Switzerland (8%). Sustained reimbursement pressures by ultimate
payers such as governments and insurance companies are likely to
constrain organic growth prospects in the medium term.

As volumes have proven resilient to economic cycles, underpinned
by broadly favorable demographics and socio-economic factors, we
expect larger players, such as Ephios Holdco, to withstand the
negative impact of tariff pressure on their profitability.


KEY RATING DRIVERS FOR THE INSTRUMENTS

Weak Creditor Protection

Upon completion of the transaction, the proposed super senior RCF
and the senior secured notes (including the tap issue) will share
the same security package, primarily comprising share pledges
over Ephios Bondco Plc, Ephios France SAS, Ephios Acquisition
GmbH as well as over subsidiaries representing around 60% of the
consolidated EBITDA as of end-March 2015.

The senior notes issued by Ephios Holdco, however, will benefit
from a junior-ranking share pledge over the same entities. The
super senior RCF will include a single leverage covenant while
the senior secured notes and the senior notes are protected by
incurrence-based covenants, subject to permitted baskets.

Going Concern Distressed Valuation

Fitch expects a going-concern restructuring to yield stronger
recoveries for creditors than liquidation in a default scenario.
Ftich assumes a distressed sale of the group as a whole at Ephios
Holdco or possibly Ephios Bondco level as a liquidation of
individual labs could prove challenging given laboratory
ownership regulatory constraints in various European
jurisdictions, in particular clinical pathologists' pre-emptive
rights in France. Therefore, Fitch has valued the group on the
basis of a 6.0x multiple applied to an EBITDA that is 20% below
the last 12-month combined EBITDA as of end-March 2015, factoring
in acquisitions already completed and adding back UK operations'
start-up costs.

Poor Recoveries for Holdco's Noteholders

The expected ratings of 'CCC+(EXP)'/'RR6' for Ephios Holdco's
planned senior notes reflect poor recovery prospects for
noteholders in a default scenario given their subordination to
the super senior RCF and certain other obligations of non-
guarantor subsidiaries as well as the enlarged senior secured
notes in the debt waterfall.

Fitch has placed the super senior RCF on RWP and expect to
upgrade it to 'BB'/'RR1' upon completion, assuming full
recoveries given its fairly small share and its seniority in the
debt waterfall as we believe Germany will be the group's "Centre
of Main Interest" instead of France.

KEY ASSUMPTIONS

Fitch's expectations are based on the agency's internally
produced, conservative rating case forecasts. They do not
represent the forecasts of rated issuers individually or in
aggregate. Key Fitch forecast assumptions include:

-- Low to mid-single digit organic growth in key markets;

-- Impact of launch of UK activities, strikes in France and
    increase of VAT in Spain on 2015 EBITDA and FFO margins;

-- EBITDA margin improving towards 20% by 2017 (post-merger:
    18%), due to cost savings and economies of scale achieved
    from the enlarged group;

-- Up to EUR100 million of bolt-on acquisitions per year after
    2015;

-- No dividends paid

RATING SENSITIVITIES

Positive: Future developments that could, individually or
collectively lead to a positive rating action include:

-- Meaningful deleveraging such that FFO adjusted gross leverage
    (pro forma for further bolt-on acquisitions) falls to 6.5x,
    combined with FFO fixed charge cover improving towards 2.0x;

-- Positive FCF as a proportion of sales sustainably in the mid
    to high single digits;

-- More conservative financial policy reflected in lower debt-
    funded M&A spending, or growth funded more conservatively by
    existing cash flows or equity funds.

Negative: Future developments that could, individually or
collectively lead to a negative rating action include:

-- FFO adjusted gross leverage (pro forma for acquisitions)
    above 8.0x on a sustained basis;

-- FFO fixed charge cover (pro forma for acquisitions) below
    1.3x on a sustained basis;

-- EBITDA margin below 17% due to failure to extract synergies
    and more integration issues than expected;

-- FCF margin falling to slightly positive territory while
    maintaining a debt-funded acquisition strategy;
-- Large, debt-funded and margin-dilutive acquisitions, combined
   with profitability erosion in key markets, reflecting a more
   challenging operating environment.

LIQUIDITY AND DEBT STRUCTURE

"We expect Ephios Holdco's liquidity to be satisfactory. Under
the proposed capital structure, Ephios Holdco will have access to
the enlarged super senior RCF of EUR250 million, which can be
used for general corporate purposes as well as for bolt-on
acquisitions. The combined group has no meaningful debt
maturities before 2022 and 2023, which will allow it and Cinven
to focus on a successful strategy execution."



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G E R M A N Y
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TUI AG: Moody's Confirms Ba3 CFR & Changes Outlook to Positive
--------------------------------------------------------------
Moody's Investors Service confirmed the Ba3 corporate family
rating (CFR), the Ba3-PD probability of default rating (PDR) and
the Ba3 senior unsecured rating of TUI AG (TUI), Europe's largest
leisure, travel and tourism company.  Concurrently, Moody's has
changed the outlook to positive.  The action concludes the rating
review implemented by Moody's on June 16, 2015.

"Our decision to change the outlook to positive reflects the
reduction in TUI's adjusted debt, following revisions to the way
we capitalize operating leases.  It also considers ongoing
improvements to TUI's underlying operating performance, despite
heightened security concerns in Tunisia and volatility in
Greece," says Sven Reinke, a Moody's Vice President-Senior Credit
Officer and lead analyst for TUI.

Moody's updated approach on standard adjustments for operating
leases is explained in the cross-sector rating methodology
"Financial Statement Adjustments in the Analysis of Non-Financial
Corporations", published on June 15, 2015.

RATINGS RATIONALE

The outlook change and confirmation reflect significant
improvements to TUI's key credit metrics following the changes to
Moody's approach for standard adjustments for operating leases.
For example, TUI's lease adjusted gross debt/EBITDA ratio was
4.3x and its retained cash flow/net debt ratio was 18.4% at the
end of fiscal year 2013-14 (to September), when considering the
revised methodology.  This compares to an adjusted gross
debt/EBITDA ratio of 5.7x and a retained cash flow/net debt ratio
of 12.9% for the same period prior to the changes to the standard
adjustments.

TUI's operating performance continued to improve during the first
nine months of the current fiscal year, as indicated by a
materially lower seasonal loss of EUR78 million in terms of
underlying group EBITA compared with a loss of EUR178 million in
the previous year's period as well as lower net interest expenses
of EUR142 million -- a reduction of EUR40 million. T UI's
improving performance was largely due to its better performing
RIU hotels and cruise ship operations.

However, reported EBITA during the first nine months was largely
unchanged at negative EUR239 million compared with negative
EUR242 million during the first nine months of fiscal 2013-14 due
to materially higher one-off items.  So far, the security
concerns in Tunisia and the economic crisis in Greece have had
only a minor impact on TUI's overall financial results.  In
addition, Moody's positively notes TUI's guidance for a 12.5%-15%
improvement of the group's underlying EBITA for the current
fiscal year and its target of at least a 10% CARG of the
underlying EBITA for the next three years.

TUI's all-share merger with its majority-owned subsidiary, TUI
Travel, is progressing well and TUI has recently increased its
forecasted synergies that will be delivered from the combination
of the two businesses.  In addition, all previous convertible
bonds at TUI AG and TUI Travel PLC were almost fully converted
into equity, thereby reducing the group's debt level.

Moody's concluded its rating review with a change of the outlook
to positive rather than a rating upgrade, as it believes that TUI
faces challenges in the months ahead mainly due to political and
macro-economic uncertainties in some of its key destinations,
such as Greece and Turkey, that could result in weaker demand for
these holiday destinations.

In addition, TUI currently reports a high level of one-off
expenses -- partially related to the merger with TUI Travel PLC
-- that Moody's does not necessarily adjust for.  Accordingly,
Moody's expects that TUI's financial profile will only further
improve in the next fiscal year 2015-16 when more merger
synergies will be realized and one-off expenses reduce.

Moody's believes that TUI's liquidity position is solid with a
three-year syndicated credit facility of EUR1,535 million
maturing in June 2018 that was undrawn at the end of Q3 fiscal
2014-15 in June 2015 as well as EUR1,576 million of cash and cash
equivalents.  Moody's believes that TUI's liquidity is
sufficiently flexible to meet the high seasonal cash swings -- in
particular in the first quarter of the fiscal year -- as well as
the fairly low debt maturities over the next few years.

RATIONALE FOR THE POSITIVE OUTLOOK

The positive outlook reflects Moody's view that the key adjusted
leverage metric will improve in the next fiscal year, mainly
driven by synergies as a result of the merger, less restructuring
and merger related one-off expenses and further improving
underlying performance that will only partially be offset by
rising capex and dividend payments.  The financial profile of TUI
could further benefit if funds from an eventual divestment of the
stake in Hapag-Lloyd AG are applied to debt reduction.

WHAT COULD CHANGE THE RATING UP/DOWN

Moody's would consider upgrading TUI's rating if the company were
to generate merger synergies as forecasted and continue to
improve its operating performance without materially increasing
indebtedness.  In addition, the rating would come under positive
pressure should TUI continue to adapt a prudent financial policy
framework and demonstrate the resilience of its business model to
external shocks.  Quantitatively, positive pressure could arise
if the group's gross adjusted leverage were to fall towards 4.5x
and the retained cash flow (RCF)/net debt metric to increase
towards 15% throughout the seasonal swings of the year, with the
group retaining a solid liquidity profile to address the high
seasonal cash swings.

The rating could be lowered if leverage were to increase above
5.5x and RCF/net debt to fall towards 10.0% over the next 12-18
months, or if the group's liquidity profile were to deteriorate
materially.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Business and
Consumer Service Industry published in December 2014.

TUI AG, headquartered in Hanover, Germany, is Europe's largest
integrated tourism group, and currently retains a stake of around
14% in Hapag-Lloyd AG following the merger with CSAV, which is a
leading provider of container shipping services.  In fiscal year
2013-14 (to September), TUI reported revenues and underlying
EBITA of EUR18.5 billion and EUR870 million, respectively.



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GREECE: German MPs Support Third Bail-Out, Rutte Faces Backlash
---------------------------------------------------------------
Szu Ping Chan at The Telegraph reports that German MPs voted to
back a third bail-out for Greece on Aug. 19 as Dutch prime
minister Mark Rutte faced the threat of a no confidence vote over
his decision to support the EUR86 billion rescue plan.

After a three-hour debate, the Bundestag approved a new rescue
package for Greece with a majority of 454 votes to 113. Eighteen
MPs abstained, The Telegraph relates.

Within Angela Merkel's ruling Christian CDU-CSU coalition, 228
MPs voted in favor of the deal, with 63 voting against and three
abstentions, The Telegraph discloses.  In an earlier vote in
July, 60 coalition MPs voted "no" to new aid for Greece, The
Telegraph recounts.

According to The Telegraph, Wolfgang Schaeuble, Germany's finance
minister, told policymakers that a deal was in the "interest of
Europe", and while his backing for a third bail-out deal was "not
easy" and there was "no guarantee of success", denying Greece
more aid would be "irresponsible".

A Dutch backlash against a third deal was led by right-wing
politician Geert Wilders, who has called for the Netherlands to
withdraw from the European Union, The Telegraph relays.

Mr. Wilders, as cited by The Telegraph, said Mr. Rutte had
reneged on a pledge in September 2012 that "enough is enough" and
that Greece would get no more financial help from the country.

Mr. Rutte said he took "responsibility" for his comments, but
defended the government's decision to back a third bail-out,
claiming that "no-one could have foreseen" in 2012 how the
situation in Greece would evolve, The Telegraph notes.


GREECE: Fitch Raises Long-Term Issuer Default Ratings to 'CCC'
--------------------------------------------------------------
Fitch Ratings has upgraded Greece's Long-term foreign and local
currency Issuer Default Ratings (IDRs) by one notch to 'CCC' from
'CC'. The issue ratings on Greece's senior unsecured foreign and
local currency bonds have also been upgraded to 'CCC' from 'CC'.
The Short-term foreign currency IDR has been affirmed at 'C'. The
Country Ceiling has been raised by one notch to 'B-' from 'CCC'.

Under EU credit rating agency (CRA) regulation, the publication
of sovereign reviews is subject to restrictions and must take
place according to a published schedule, except where it is
necessary for CRAs to deviate from this in order to comply with
their legal obligations. Fitch interprets this provision as
allowing us to publish a rating review in situations where there
is a material change in the creditworthiness of the issuer that
we believe makes it inappropriate for us to wait until the next
scheduled review date to update the rating or Outlook/Watch
status. The next scheduled review date for Fitch's sovereign
rating on Greece is November 13, 2015, but Fitch believes that
developments in Greece warrant such a deviation from the calendar
and our rationale for this is laid out below.

KEY RATING DRIVERS

The upgrade of Greece's IDRs reflects the following key rating
drivers and their relative weights:

HIGH

The August 14 agreement reached between Greece and the European
Institutions on the framework for a third official bailout
program has reduced the risk of Greece defaulting on its private
sector debt obligations. An initial disbursement of about EUR23bn
is expected this week and will ease the acute liquidity strain of
recent months, covering the repayment of EUR3.2bn of bonds held
by the Eurosystem maturing on 20 August as well as a European
Financial Stabilisation Mechanism bridging loan maturing in
September.

The program is intended to facilitate an eventual return to
market funding. However, the risks to the program's success
remain high. It will take some time for trust to be restored
between Greece and its creditors, which increases the risk of
delayed program reviews. Meanwhile, the political situation in
Greece remains unpredictable.

Last week's deal was reached relatively quickly and without the
brinkmanship seen in the run-up to previous deadlines. This
suggests that relations with the creditors have improved, as
implied by the public statements from key players, although they
remain delicate. The ruling Syriza party can rely on the support
of centrist parties to carry key votes in parliament but the
party itself is at risk of splitting, and has suffered large
rebellions over key reform votes. The prospect of snap elections
before the end of the year is likely, which raises uncertainty
over the future direction of relations with the creditors.

The agreement sets out the broad conditionality that Greece will
be expected to implement under a European Stability Mechanism
(ESM; AAA/Stable) program. This covers a wide range of structural
reforms, notably to pensions and the labor and product markets. A
long-term privatization fund targeting EUR50 billion in receipts
is also stipulated. The track record of privatization since 2010
suggests this figure is unlikely to be met.

Targets for the government's primary balance have also been
stipulated and imply a further fiscal drag in the near term. The
targets are ambitious and pose a risk to Greece's economic
performance. The latter is already likely to be extremely weak in
2H15 due to the banking system shutdown that followed the expiry
of the previous bailout program.

The overall funding envelope for the ESM program is expected to
be "up to" EUR86 billion. The role of the IMF is more uncertain
than in previous programs. The Fund states that it expects to
remain involved in the program but only if "significant" debt
relief is forthcoming. Discussions on debt relief are slated for
the first program review (October) although there may yet be
disagreements between the IMF and Europe as to the ambition of
the debt relief on offer. Fitch does not expect principal
haircuts on the official debt stock given the political
sensitivities around this issue.

Part of the ESM program consists of a package of up to EUR25
billion for bank recapitalization, with EUR10 billion forming
part of this week's disbursement. Fitch believes that EUR25
billion should be sufficient. However, capital needs could also
exceed this amount, especially if deferred tax assets are not
given full equity credit. The ECB is providing sufficient ELA
liquidity to the Greek banks although capital controls are likely
to persist at least until next year.

The breakdown in relations between Greece and its creditors in
January-July culminated in the explicit threat of a Greek exit
from the eurozone being made by key creditor countries. It is
reasonable to assume that if such a situation was reached again,
the risk of 'Grexit' would be high.

RATING SENSITIVITIES

Developments that could, individually or collectively, result in
a downgrade include:

-- A repeat of the prolonged break-down in relations between
    Greece and its creditors seen in January to July, for example
    in the context of an ESM program review.

-- Non-payment, redenomination and/or distressed debt exchange
    of government debt securities issued in the market or a
    government-declared moratorium on all debt service.

Future developments that could, individually or collectively,
result in an upgrade include:

-- A track record of successful implementation of the ESM
    program, brought about by an improved working relationship
    between Greece and its official creditors and a relatively
    stable political environment.

-- An economic recovery, further primary surpluses, and official
    sector debt relief would put upward pressure on the ratings
    over the medium term.

KEY ASSUMPTIONS

The ratings are sensitive to the following key assumptions:

Fitch assumes that the first disbursement under the ESM program
will take place before the August 20 bond payment to the
Eurosystem (EUR3.2 billion).

Fitch assumes that any debt relief given to Greece under the ESM
program will apply to official-sector debt only, and would not
therefore constitute an event of default under the agency's
criteria.



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ANGLO IRISH: Ireland Speeds Up Bond Sales Tied to Liquidation
-------------------------------------------------------------
Reuters reports that Ireland's debt agency purchased and
cancelled EUR500 million of bonds from the country's central bank
for the second time this year, speeding up a timetable tied to a
2013 deal to ease the state's burden.

As part of the deal struck with the European Central Bank (ECB)
to stretch out the cost of liquidating the collapsed Anglo Irish
Bank, Ireland pledged to slowly dispose of new bonds worth EUR25
billion via the country's central bank, according to Reuters.

The central bank, which last year disposed of the minimum EUR500
million, is obliged to sell at least another EUR500 million a
year until 2018 but had come under pressure from the ECB to
embark on a more ambitious sales schedule, the report adds.


SPENCER DOCK: Costs Linked to Receivership Soar
-----------------------------------------------
Irish Examiner reports that the costs associated with the
receivership of Treasury Holdings's main Spencer Dock firm have
risen over EUR4 million in the last six months.

David Hughes and Luke Charleton of Ernst Young were appointed as
receivers to various retail units, undeveloped sites and part
developed sites owned by Spencer Dock Development Co Ltd on
January 25, 2012 by NAMA, according to Irish Examiner.

The report notes that documents filed with the Companies Office
show that the combined professional, management, and receiver
fees total EUR6.8 million in the three and a half years to July
25.

However, costs associated with the receivership in the last six
months outstrip the costs of the preceding three years, the
report relates.

The report says that the documents lodged show that chief factor
behind the soaring costs was the EUR3.07 million paid out in
professional fees between January 26 and July 25 this year.

However, no detail is provided on what the professional fees were
spent on, the report discloses.

Management fees from the period from January to July 25 total
EUR669,720, about EUR100,000 more than the EUR559,050 in
management fees incurred over the prior three years, the report
relays.  In total, management fees from the receivership amount
to EUR1.228 million.

The figures show that EY has had receiver fees of EUR270,731 in
the most recent six-month period.

This is in addition to the EUR387,648 paid out to the receivers
since January 2012 resulting in an overall total of EUR658,379 to
EY, the report notes.

The report discloses that Spencer Dock Development Co Ltd was
placed in receivership with net liabilities totaling over EUR401
million.  Nine months after the main Spencer Dock firm was placed
in receivership, the parent entity, Johnny Ronan and Richard
Barrett's Treasury Holdings, was wound up, in October 2012, the
report says.

The receivership was unsuccessfully challenged in the High Court
by Treasury Holdings, the report adds.



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PARMA FOOTBALL CLUB: Trophies Put Up for Auction
------------------------------------------------
BBC News report that trophies won by former Serie A side Parma
Football Club have been put up for auction after the club went
bankrupt.

Creditors on behalf of the defunct club are selling a number of
lots, including Uefa Cups won in 1995 and 1999, three Copa Italia
trophies, a Cup Winners' Cup and a European Supercup, according
to BBC News.

Other lots include the Parma FC trademark, gym equipment and
furniture, the report relates.

Parma went bankrupt in March with more than EUR200 million
(GBP143 million) debt, although they were allowed to finish the
season, the report notes.

The club, who were relegated from Serie A last season, failed to
find a buyer prepared to pay EUR22.6 million (GBP16.2 million) to
take on the club, the report relays.

A new Parma football club Parma Calcio 1913 will begin the season
in Serie D, the report discloses.

The items are listed on the Web site fallimentiparma.com by
administrators Angelo Anedda and Alberto Guiotto, and all bids
must be received by September 11.



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THESEUS EUROPEAN: Moody's Affirms Ba2 Rating on Class E Notes
-------------------------------------------------------------
Moody's has taken a variety of rating actions on these notes
issued by Theseus European CLO S.A.:

  EUR135.00 mil. (current outstanding balance of EUR 22.37 mil.)
   Class A1 Notes, Affirmed Aaa (sf); previously on Oct. 29,
   2014, Affirmed Aaa (sf)

  EUR90.00 mil. (current outstanding balance of EUR 6.57 mil.)
   Class A2A Notes, Affirmed Aaa (sf); previously on Oct. 29,
   2014, Affirmed Aaa (sf)

  EUR10.00 mil. Class A2B Notes, Affirmed Aaa (sf); previously on
   Oct 29, 2014, Affirmed Aaa (sf)

  EUR16.00 mil. Class B Notes, Affirmed Aaa (sf); previously on
   Oct 29, 2014, Upgraded to Aaa (sf)

  EUR19.00 mil. Class C Notes, Upgraded to Aa1 (sf); previously
   on Oct 29, 2014, Upgraded to A1 (sf)

  EUR11.00 mil. Class D Notes, Upgraded to A3 (sf); previously on
   Oct 29, 2014, Affirmed Baa3 (sf)

  EUR15.00 mil. Class E Notes, Affirmed Ba2 (sf); previously on
   Oct. 29, 2014 Affirmed Ba2 (sf)

Theseus European CLO S.A., issued in August 2006, is a
collateralized loan obligation (CLO) backed by a portfolio of
mostly high-yield senior secured European loans.  The portfolio
is managed by Invesco Senior Secured Management, Inc.  The
transaction's reinvestment period ended in August 2012.

RATINGS RATIONALE

According to Moody's, the rating action taken on the notes is a
result of the improvement in over-collateralization ratios since
the last rating action in October 2014.

The Class A1 and the Class A2A notes have paid down by
approximately EUR14.8 million (10.9% of closing balance) and
EUR10.9 milion (12.2% of closing balance), respectively, in the
last payment date since last rating action.  As a result of the
deleveraging, over-collateralization (OC) ratios have increased.
As per the trustee report dated July 2015, the Class A (Senior),
Class B, and Class C OC ratios are reported at 292.9%, 207.6%,
and 154.2% compared to October 2014 levels of 209.3%, 167.8%, and
135.8% respectively.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers.  In its base
case, Moody's analyzed the underlying collateral pool as having a
performing par of EUR90.5 million, principal proceeds balance of
EUR24.6 million, defaulted par of EUR3.9 million, a weighted
average default probability of 30.6% (consistent with a 10 year
WARF of 3,067), a weighted average recovery rate upon default of
42.7% for a Aaa liability target rating, a diversity score of 17
and a weighted average spread of 3.61%.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool.  The estimated average recovery rate on
future defaults is based primarily on the seniority of the assets
in the collateral pool.  For a Aaa liability target rating,
Moody's assumed a recovery of 50% for the 78.66% of the portfolio
exposed to first-lien senior secured corporate assets upon
default, of 15% for the 13.40% of the portfolio exposed to non-
first-lien loan corporate assets upon default and of 18.02% for
the 7.95% of portfolio exposed to structured finance assets upon
default.  In each case, historical and market performance and a
collateral manager's latitude to trade collateral are also
relevant factors.  Moody's incorporates these default and
recovery characteristics of the collateral pool into its cash
flow model analysis, subjecting them to stresses as a function of
the target rating of each CLO liability it is analyzing.

Methodology Underlying the Rating Action:

The principal methodology used in this rating was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
February 2014.

Factors that would lead to an upgrade or downgrade of the
ratings:

In addition to the base-case analysis, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it assumed a lower weighted average recovery rate for
the portfolio.  Moody's ran a model in which it reduced the
weighted average recovery rate by 5%; the model generated outputs
that were unchanged for Classes A1, A2A, A2B, B, C and E, and
within one notch of the base-case results for Class D.

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
note, in light of uncertainty about credit conditions in the
general economy.  CLO notes' performance may also be impacted
either positively or negatively by 1) the manager's investment
strategy and behavior and 2) divergence in the legal
interpretation of CDO documentation by different transactional
parties because of embedded ambiguities.

Additional uncertainty about performance is due to:

  Portfolio amortization: The main source of uncertainty in this
   transaction is the pace of amortization of the underlying
   portfolio, which can vary significantly depending on market
   conditions and have a significant impact on the notes'
   ratings.  Amortization could accelerate as a consequence of
   high loan prepayment levels or collateral sales by the
   collateral manager or be delayed by an increase in loan amend-
   and-extend restructurings.  Fast amortization would usually
   benefit the ratings of the notes beginning with the notes
   having the highest prepayment priority.

  Around 13% of the collateral pool consists of debt obligations
   whose credit quality Moody's has assessed by using credit
   estimates.  As part of its base case, Moody's has stressed
   large concentrations of single obligors bearing a credit
   estimate as described in "Updated Approach to the Usage of
   Credit Estimates in Rated Transactions", published in Oct.
   2009,

  Recovery of defaulted assets: Market value fluctuations in
   trustee-reported defaulted assets and those Moody's assumes
   have defaulted can result in volatility in the deal's over-
   collateralization levels.  Further, the timing of recoveries
   and the manager's decision whether to work out or sell
   defaulted assets can also result in additional uncertainty.
   Moody's analyzed defaulted recoveries assuming the lower of
   the market price or the recovery rate to account for potential
   volatility in market prices. Recoveries higher than Moody's
   expectations would have a positive impact on the notes'
   ratings.

  Long-dated assets: The presence of assets that mature beyond
   the CLO's legal maturity date exposes the deal to liquidation
   risk on those assets.  Moody's assumes that, at transaction
   maturity, the liquidation value of such an asset will depend
   on the nature of the asset as well as the extent to which the
   asset's maturity lags that of the liabilities.  Liquidation
   values higher than Moody's expectations would have a positive
   impact on the notes' ratings.

In addition to the quantitative factors that Moody's explicitly
modeled, qualitative factors are part of the rating committee's
considerations.  These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio.  All information available
to rating committees, including macroeconomic forecasts, input
from other Moody's analytical groups, market factors, and
judgments regarding the nature and severity of credit stress on
the transactions, can influence the final rating decision.



=====================
N E T H E R L A N D S
=====================


ARES EUROPEAN III: Moody's Affirms B1 Rating on Class E Notes
-------------------------------------------------------------
Moody's Investors Service announced that it has taken rating
actions on these classes of notes issued by Ares European CLO III
B.V.:

  EUR52.50 mil. (current balance EUR22.37M) Class A1 Senior
   Secured Floating Rate Variable Funding Notes due 2024,
   Affirmed Aaa (sf); previously on July 19, 2007, Assigned Aaa
   (sf);

  EUR145.00 mil. (current balance EUR48.01M) Class A2 Senior
   Secured Floating Rate Notes due 2024, Affirmed Aaa (sf);
   previously on July 19, 2007, Assigned Aaa (sf);

  EUR49.50 mil. Class A3 Senior Secured Floating Rate Notes due
   2024, Affirmed Aaa (sf); previously on Oct. 18, 2011, Upgraded
   to Aaa (sf)

  EUR21.00 mil. Class B Senior Secured Deferrable Floating Rate
   Notes due 2024, Upgraded to Aa1 (sf); previously on Oct. 18,
   2011 Upgraded to Aa3 (sf)

  EUR21.00 mil. Class C Senior Secured Deferrable Floating Rate
   Notes due 2024, Upgraded to A2 (sf); previously on Oct. 18,
   2011, Upgraded to A3 (sf)

  EUR19.00 mil. Class D Senior Secured Deferrable Floating Rate
   Notes due 2024, Affirmed Ba1 (sf); previously on Oct. 18,
   2011, Upgraded to Ba1 (sf)

  EUR22.00 mil. Class E Senior Secured Deferrable Floating Rate
   Notes due 2024, Affirmed B1 (sf); previously on Oct. 18, 2011,
   Upgraded to B1 (sf)

  EUR15.00 mil. (current rated balance EUR5.75M) Class P
   Combination Notes due 2024, Affirmed Aa1 (sf); previously on
   March 28, 2013, Downgraded to Aa1 (sf)

Ares European CLO III B.V., issued in July 2007, is a multi-
currency collateralized loan obligation (CLO) backed by a
portfolio of mostly high-yield senior secured European loans
managed by Ares Management Limited.  The transaction's
reinvestment period ended in August 2014.  The majority of the
transaction's assets and rated liabilities are denominated in
EUR; GBP and USD assets are naturally hedged by GBP and USD
drawings under the Class A1 Variable Funding Notes.  As per the
July 1, 2015, trustee report, GBP assets exceeded GBP liabilities
by GBP2.3 million, and USD assets exceeded USD liabilities by
USD3.6 million.

RATINGS RATIONALE

According to Moody's, the rating actions taken on the notes are
the result of substantial deleveraging over the past twelve
months.  Class A1 and Class A2 notes have paid down in aggregate
by approximately EUR52.9 million (26.8% of closing balance) since
between July 1, 2014 and July 1, 2015, as a result of which over-
collateralization (OC) ratios of all classes of rated notes have
increased.  As per the trustee report dated July 2015, Class A,
Class B, Class C, Class D, and Class E OC ratios are reported at
150.50%, 134.96%, 122.34%, 112.79%, and 103.44% compared to July
2014 levels of 136.48%, 119.60%, 112.10%, 106.60%, and 101.10%,
respectively.

The rating of the Combination Notes addresses the repayment of
the Rated Balance on or before the legal final maturity.  For
Class P the 'Rated Balance' is equal at any time to the principal
amount of the Combination Note on the issue date minus the
aggregate of all payments made from the issue date to such date,
either through interest or principal payments.  The Rated Balance
may not necessarily correspond to the outstanding notional amount
reported by the trustee.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers.  In its base
case, Moody's analyzed the underlying collateral pool as having a
performing par and principal proceeds of EUR240.85 million and
GBP23.88 million, a weighted average default probability of 20.8%
(consistent with a WARF of 2974 over a weighted average life of
4.26 years), a weighted average recovery rate upon default of
48.69% for a Aaa liability target rating, a diversity score of 33
and a weighted average spread of 3.69%.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool.  The estimated average recovery rate on
future defaults is based primarily on the seniority of the assets
in the collateral pool.  For a Aaa liability target rating,
Moody's assumed a recovery of 50% on 95.9% of the portfolio
exposed to first-lien senior secured corporate assets upon
default, 15% on the 1.9% exposed to non-first-lien loan corporate
assets, and 21.0% on the 2.2% exposed to structured finance
assets.  In each case, historical and market performance and a
collateral manager's latitude to trade collateral are also
relevant factors.  Moody's incorporates these default and
recovery characteristics of the collateral pool into its cash
flow model analysis, subjecting them to stresses as a function of
the target rating of each CLO liability it is analyzing.

Moody's notes that shortly after this analysis was completed, the
August 2015 payment date report has been issued.  There is no
material change in key portfolio metrics such as WARF, diversity
score, and weighted average spread as well as OC ratios for
Classes A, B, C, D, and E from their July 2015 levels.

Methodology Underlying the Rating Action

The principal methodology used in this rating was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
February 2014.

Factors that would lead to an upgrade or downgrade of the rating:

In addition to the base-case analysis, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it assumed a lower weighted average recovery rate for
the portfolio.  Moody's ran a model in which it reduced the
weighted average recovery rate by 5%; the model generated outputs
that were unchanged for Classes A1, A2, and A3, and within one to
two notches of the base-case results for Classes B,C,D, and E.

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
note, in light of uncertainty about credit conditions in the
general economy.  CLO notes' performance may also be impacted
either positively or negatively by 1) the manager's investment
strategy and behavior and 2) divergence in the legal
interpretation of CDO documentation by different transactional
parties because of embedded ambiguities.

Additional uncertainty about performance is due to:

  Portfolio amortization: The main source of uncertainty in this
   transaction is the pace of amortization of the underlying
   portfolio, which can vary significantly depending on market
   conditions and have a significant impact on the notes'
   ratings.  Amortization could accelerate as a consequence of
   high loan prepayment levels or collateral sales by the
   collateral manager or be delayed by an increase in loan amend-
   and-extend restructurings. Fast amortization would usually
   benefit the ratings of the notes beginning with the notes
   having the highest prepayment priority.

  Around 14% of the collateral pool consists of debt obligations
   whose credit quality Moody's has assessed by using credit
   estimates.  As part of its base case, Moody's has stressed
   large concentrations of single obligors bearing a credit
   estimate as described in "Updated Approach to the Usage of
   Credit Estimates in Rated Transactions," published in
   Oct. 2009

  Foreign currency exposure: The deal has material exposures to
   non-EUR denominated assets.  As noted earlier, there is an
   excess of both GBP and USD assets compared to GBP and USD
   liabilities.  Volatility in foreign exchange rates will have a
   direct impact on interest and principal proceeds available to
   the transaction, which can affect the expected loss of rated
   tranches.

In addition to the quantitative factors that Moody's explicitly
modeled, qualitative factors are part of the rating committee's
considerations.  These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio.  All information available
to rating committees, including macroeconomic forecasts, input
from other Moody's analytical groups, market factors, and
judgments regarding the nature and severity of credit stress on
the transactions, can influence the final rating decision.


ARES EUROPEAN VII: Fitch Affirms 'B-sf' Rating on Class E Notes
---------------------------------------------------------------
Fitch Ratings has affirmed Ares European CLO VII B.V.'s notes, as
follows:

  EUR207.4 million Class A-1 (XS1084357554): affirmed at 'AAAsf';
  Outlook Stable

  EUR23.3 million Class A-2A (XS1084357984): affirmed at 'AA+sf';
  Outlook Stable

  EUR11.3 million Class A-2B (XS1084358792): affirmed at 'AA+sf';
  Outlook Stable

  EUR20.4 million Class B (XS1084359170): affirmed at 'A+sf';
  Outlook Stable

  EUR14.2 million Class C (XS1084359840): affirmed at 'BBB+sf';
  Outlook Stable

  EUR28.3 million Class D (XS1084360343): affirmed at 'BBsf';
  Outlook Stable

  EUR11.3 million Class E (XS1084360426): affirmed at 'B-sf';
  Outlook Stable

Ares European CLO VII BV is an arbitrage cash flow collateralized
loan obligation (CLO). Net proceeds from the issuance of the
notes were used to purchase a EUR340m portfolio of European
leveraged loans and bonds. The portfolio is managed by Ares
Management Limited. The transaction features a four-year
reinvestment period.

KEY RATING DRIVERS

The affirmation reflects the transaction's performance, which has
been in line with Fitch's expectations. Since closing in
September 2014, all notes have experienced marginal increases in
credit enhancement as a result of trading increasing the par
value of the portfolio.

The transaction went effective as of October 2014 and will remain
in its reinvestment period until the end of 2018, during which
the manager can purchase and sell assets as long as collateral
quality tests, portfolio profile tests and coverage tests are
satisfied or if failing, maintained or improved.

All portfolio profile and coverage tests are currently passing.
Also, all collateral quality tests are currently passing at the
current matrix point. The covenants for the portfolio have moved
since closing: the weighted average rating factor to 35 from 33,
the weighted average rating recovery to 68.9% from 69% and the
weighted average spread to 4.25% from 4%, which are also
currently passing. The portfolio's current results are 32.66,
69.9% and 4.47%, respectively. The weighted average coupon is
currently 6.46%, compared with a minimum trigger of 5%.

The majority of the assets are rated in the 'B' category and are
well diversified with 121 assets from 95 obligors. The largest
industry is chemicals at just below 12%, followed by healthcare.
The largest country exposure is to Germany with over 27%,
followed by the US with 14% and Netherlands with just above 13%.
European peripheral exposure is represented by Spain and Italy
and remains at 5%, around half of the maximum allowed exposure of
10%.

RATING SENSITIVITIES

As the loss rates for the current portfolio are below those
modelled for the stress portfolio, the sensitivities shown in the
new issue report still apply for this transaction

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation
to this rating action.

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pool and the transaction. There were no findings that were
material to this analysis. Fitch has not reviewed the results of
any third party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.

The majority of the underlying assets have ratings or credit
opinions from Fitch and/or other Nationally Recognized
Statistical Rating Organizations 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.

Prior to the transaction closing, Fitch did not review the
results of a third party assessment conducted on the asset
portfolio information.

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


E-MAC DE 2006-II: S&P Lowers Rating on Class D Notes to 'CCC'
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'CCC (sf)' from
'CCC+ (sf)' its credit rating on E-MAC DE 2006-II B.V.'s class D
notes.  At the same time, S&P has lowered to 'D (sf)' from
'CCC (sf)' its rating on the class E notes.

Cumulative losses over the original portfolio balance for E-MAC
DE 2006-II have increased to 6.90% at the end of May 2015, up
from 3.05% in May 2013.  The collateral pool's poor performance
resulted in the reserve fund being depleted in May 2014.  This
has reduced the available credit enhancement for all classes of
notes.

Due to the increased cumulative net losses, E-MAC DE 2006-II's
class E notes missed their interest payments on the May 2015
interest payment date.  Consequently, S&P has lowered to 'D (sf)'
from 'CCC (sf)' its rating on this class of notes.

S&P has lowered to 'CCC (sf)' from 'CCC+ (sf)' its rating on the
class D notes.  In S&P's view, the timeframe for when it
anticipates this class of notes to default has reduced, due to
weakening collateral performance and limited available credit
enhancement.

The transaction is a true sale German residential mortgage-backed
securities (RMBS) transaction originated by GMAC-RFC Bank GmbH.
CMIS Investments is the mortgage payment transaction provider,
with Hypotheken Management as sub-servicer for primary servicing,
and Adaxio AMC and Paulus Westerwelle as delinquent loan
servicer.

RATINGS LIST

Class                    Rating
              To                     From

Ratings Lowered

E-MAC DE 2006-II B.V.
EUR703.5 Million Mortgage-Backed Floating-Rate Notes

D             CCC (sf)               CCC+ (sf)
E             D (sf)                 CCC (sf)



===========
P O L A N D
===========


LOT AIRLINES: CEO Steps Down, Investor Talks in Advanced Stage
--------------------------------------------------------------
Christopher Jasper and Konrad Krasuski at Bloomberg News report
that Polish national airline LOT has lost its chief executive
officer as the government debates whether to sell part of the
company to an outside investor.

According to Bloomberg, the Warsaw-based carrier said on Aug. 18
in a statement Sebastian Mikosz, who has run LOT since February
2013 after ending an initial stint at the helm in 2010, handed in
his resignation and will depart on Sept. 17.

Wojciech Chmielewski, Poland's deputy Treasury minister, said in
a separate release Mr. Mikosz's decision comes with LOT in
advanced talks with a potential investor, Bloomberg notes.  Prime
Minister Ewa Kopacz, as cited by Bloomberg, said she wasn't aware
of the reason for the CEO's exit but that the moment to seek an
investor "needs to be carefully considered" and must be to the
company's benefit.

Mr. Chmielewski said that the government isn't delaying the sale
of LOT and that the process requires the preparation of many
documents, including a business plan and valuation, that aren't
ready yet, Bloomberg relays.  The minister added that he tried to
persuade Mr. Mikosz to seek a capital increase to help secure an
investor "on a good basis both for the company and for the
Treasury", according to Bloomberg.

Poland's Puls Biznesu newspaper said last week that the Treasury
has been in talks with Indigo Partners LLC for months about the
U.S. investor taking a majority stake in LOT, without saying
where it got the information, Bloomberg recounts.  The paper said
on Aug. 18 the government might not finish its analysis in the
current term, Bloomberg relays.

Poland last year instructed Mr. Mikosz to step up the search for
a strategic investor after loosening ownership rules to encourage
the European Commission to approve PLN804 million  (US$260
million) of state aid, Bloomberg discloses.

Headquartered in Warsaw, Poland, Polskie Linie Lotnicze LOT, or
LOT Polish Airlines -- http://www.lot.com-- serves about a dozen
cities in Poland and about 120 destinations across Europe and
North America.  Subsidiaries include regional carrier EuroLOT and
charter operator Centralwings.  Overall, LOT and its affiliates
maintain a fleet of about 55 aircraft, consisting of Embraer
regional jets, Boeing 767s and 737s, and ATR turboprops.  The
airline is a member of the Star Alliance marketing group, and LOT
serves many of its North American destinations through code-
sharing with Star partners United Airlines and Air Canada.
(Code-sharing allows airlines to sell tickets on one another's
flights and thus extend their networks.) The Polish government
owns 68% of the company.



===========
R U S S I A
===========


RUSSIA: Revenue Growth Negatively Impacts Budgets, Fitch Says
-------------------------------------------------------------
Fitch Ratings expects that the budget performance and
creditworthiness of Russian local and regional authorities will
be under pressure due to slowing growth in tax revenues and
higher capital expenditures in the 2nd half of 2015 the Agency
will assess the degree of deterioration of budgetary performance
on an individual basis within the framework of monitoring the
ranking of cities and regions.

At present, 19 out of 45 Russian local and regional authorities,
rated by the agency have "Negative" outlook on the ratings. Fitch
expects the slowdown in revenues from the two largest sources of
tax -- a tax on personal income ("PIT") and corporate income tax,
which in 2014 accounted for 70% of tax revenues of the Russian
cities and regions -- in the 2nd half of 2015 in a difficult
economic environment that will be exacerbated by low oil prices,
a weak ruble and sanctions from the US and the EU. Fitch does not
expect that the federal government will compensate the slowdown
in regional tax revenues.

According to forecasts of the agency, local and regional
authorities will end 2015 with a total deficit of about 400
billion. rub, or 4% of total revenues.

In the 1st half of 2015, Russian cities and regions together had
a surplus of RUB436 billion, which corresponds to 8% of total
revenues (1 half of 2014: 3%). This surplus was due to the tight
control of expenditure, which increased slightly, only 6% of the
previous year, significantly below inflation in the country at
16%, while revenues increased by 12% due to one-off increase in
revenues from corporate income tax.

Revenues from corporate income tax showed an impressive growth in
the 1st half of 2015 by 26% to the previous year, partly
offsetting weak revenues from personal income tax for the same
period. At the same time, according to Fitch, the growth of
revenues from corporate income tax will slow down in the 2nd half
of 2015 as a one-off effect of the devaluation of the ruble will
come to naught, and the financial performance of the corporate
sector will be weakened.

In the 1st half of 2015, revenues from corporate income tax
supported by higher profits of export companies that have
benefited from the sharp depreciation of the ruble at the end of
2014 High volume of state defense orders is also supported by the
growth of revenues from corporate income tax. In the 1st half
2015 revenues from personal income tax declined in 17 regions,
and the total revenue from this tax has increased by only 4% over
the same period of the previous year, below expectations of
Russian cities and regions.

Most subnational entities rated by Fitch expects growth in
revenues from personal income tax by 7% in 2015 on the basis of
economic forecasts produced by the federal government at the end
of 2014. Currently, the federal government expects wage growth to
average 3.9% in 2015, which is lower than previous forecasts
growth of 7% -9%. Average wages rose moderately by 5% in the 1st
half of 2015 to the corresponding period of the previous year,
while in the 1st half of 2014, the increase was 9%. The wage fund
in the public sector has not changed or has been indexed for
minor 5% in 2015, to relieve pressure on the budgets of the
regions in a difficult economic environment.

This followed the decision of the federal government to suspend
further wage increases for certain categories of civil servants
in accordance with the presidential decree of 2012 In the private
sector wages are more sensitive to the economic slowdown. The
Company's frozen salary increase, cancel the payment of premiums,
transferred to part-time and, if more complex circumstances,
postpone payment of salaries or wages in the shadow of output.
Other factors that have a negative impact on revenues from the
personal income tax, the decrease of dividend payments to
individuals due to reduction of corporate profits and an increase
in tax deductions for individuals on the newly acquired property.


RUSSIA: Fitch Says Tax Proceeds Drop Undermines LRGs' Performance
-----------------------------------------------------------------
Fitch Ratings expects Russian local and regional governments'
(LRGs) budgetary performance and creditworthiness to come under
pressure from a deceleration of tax revenue growth and higher cap
expenditures in 2H15.

The agency will assess the severity of such deterioration
individually when monitoring the LRGs' ratings. As of today, 19
out of 45 LRGs rated by Fitch are on Negative Outlooks.

Fitch expects the two largest tax items -- personal income tax
(PIT) and corporate income tax (CIT), which contributed 70% of
Russian LRGs' tax revenue in 2014 -- will see slower growth in
2H15 amid a difficult economic environment exacerbated by low oil
prices, a weak rouble and US and EU sanctions. Fitch does not
expect the federal government to compensate Russian LRGs for
slower tax revenue growth.

Fitch forecasts LRGs will end 2015 with a total deficit of about
RUB400 billion, or 4% of total revenue. In 1H15, Russian LRGs
recorded a RUB436 billion surplus in aggregate, which corresponds
to 8% of total revenue (1H14: 3%). This was driven by strict
control over expenditure, which saw a subdued 6% yoy increase,
significantly below the country's 16% inflation while revenue
grew 12%, driven by a one-off increase in CIT.

CIT grew an impressive 26% yoy in 1H15, which partially
compensated weak PIT collection during the same period. However,
in Fitch's view CIT growth will decelerate in 2H15 as the one-off
effect of rouble depreciation winds down and financial
performance in the corporate sector weakens. In 1H15 CIT proceeds
were supported by higher profits of export companies, which
benefited from sharp rouble depreciation at end-2014. High
military procurements financed by the federal budget were also
supportive of CIT growth.

In 1H15, PIT declined for 17 regions and total PIT collection
grew only 4% yoy, which was below the Russian LRGs' expectation.
Most of the regions rated by Fitch are forecasting 7% PIT growth
in 2015 based on economic projections provided by the federal
government at end-2014. Federal authorities now expect salaries
to grow on average 3.9% for 2015, down from the 7% to 9%
previously expected.

The average salary increased by a moderate 5% yoy in 1H15, slower
than the 9% growth in 1H14. Salaries within the public sector
remained unindexed or have been increased by a low 5% in 2015 to
ease pressure on the LRGs' budget amid challenging economic
conditions. This followed the federal government's decision to
cease further salary increases for certain types of public
employees as declared by the presidential decree of 2012.

Within the private sector, salaries are more sensitive to the
economic slowdown. Companies freeze wages, cancel bonus payments,
turn to part-time employment, and in more challenging
circumstances, delay payment of salaries or pay salaries through
tax evasion. Other factors weighing on PIT proceeds are reduced
dividend payments to individuals due to a decline in corporate
profits as well as increased individual tax deduction on newly
acquired dwellings.


UTAIR: Faces Another Lawsuit From Tatfondbank
---------------------------------------------
PRIME Business News Agency reports that UTair, the struggling
airline, is facing yet another lawsuit from Tatfondbank.

The bank expressed its intention on Aug. 18 to file a bankruptcy
suit against UTair with the Arbitration Court of the Khanty-Mansi
Autonomous District, which is already processing other similar
suits filed from several creditors, PRIME relates.

The airline's biggest creditor, Alfa Bank, announced the
settlement of all claims against UTair in May, PRIME discloses.
The bank restructured the company's debt and dropped all relevant
lawsuits, PRIME relays.

UTair is based in Russia.


UTAIR LEASING: MTS Bank Files Request to Drop Bankruptcy Suit
-------------------------------------------------------------
PRIME Business News Agency, citing TASS, reports that MTS Bank
has filed a request with the Arbitration Court of the Tyumen
Region to dismiss its bankruptcy suit against UTair Leasing.

The request was set to be reviewed on Aug. 19, PRIME discloses.

The bankruptcy suit was filed by MTS Bank on May 7, PRIME
relates.  Prior to that, the lending institution submitted a
total of 12 claims against UTair, PRIME recounts.

UTair Leasing is a subsidiary of UTair.



=========
S P A I N
=========


PESCANOVA SA: Creditors Reject Restructuring Proposal
-----------------------------------------------------
Katie Linsell at Bloomberg News reports that Pescanova SA
creditors, who are set to take control of the Spanish fishing
company, rebuffed a proposal to ease terms for shareholders in
the restructuring plan.

The company withdrew the suggestion to let investors have a 20%
stake, Bloomberg relays, citing a regulatory filing.

Pescanova said it will instead present a proposal in line with
the original plan for a 5% shareholding plus an option to buy as
much as 15% more, Bloomberg relates.

Under the restructuring, which won court approval in May 2014,
creditors will gain control of Pescanova following a capital
increase in November, Bloomberg discloses.  The fishing company
sought protection from lenders in 2013, when auditors found more
than EUR2 billion (US$2.2 billion) of previously undisclosed debt
and fraud investigators began a probe, Bloomberg recounts.

Pescanova borrowed from more than 100 lenders, Bloomberg says,
citing a list prepared by Deloitte, the court-appointed receiver.
The creditors due to take control of the company are Banco de
Sabadell SA, Banco Popular Espanol SA, CaixaBank SA, NCG Banco
SA, Banco Bilbao Vizcaya Argentaria SA, Bankia SA and Unione di
Banche Italiane SCPA, Bloomberg discloses.

Pescanova SA is a Galicia-based fishing company.  The company
catches, processes, and packages fish on factory ships.  It is
one of the world's largest fishing groups.

Pescanova filed for insolvency on April 15, 2013, on at least
EUR1.5 billion (US$2 billion) of debt run up to fuel expansion
before economic crisis hit its earnings.  The Pontevedra
mercantile court in northwestern Galicia accepted Pescanova's
insolvency petition on April 25.  The court ordered the board of
directors to step down and proposed Deloitte as the firm's
administrator.



===========================
U N I T E D   K I N G D O M
===========================


BSL BUILT: In Administration, Faces GBP200K of Court Judgements
---------------------------------------------------------------
Gavriel Hollander at H&V News reports that a Southeast contractor
that went into administration had almost GBP200,000 worth of
unsettled county court judgments made against it in the weeks
before it went under.

Administrators from Duff & Phelps were appointed after Essex-
based BSL Built Solutions filed for administration on July 16,
but Construction News has learned that the firm had been the
subject of eight court judgments against it since June 25,
according to H&V News.

H&V News sister publication Construction News reported that those
judgments, from creditors that made claims in advance of the
company falling into administration, totaled GBP193,670.

Seven of the judgments ordered payments of more than GBP20,000,
with one for more than GBP50,000, the report notes

Credit rating agency Top Service also told Construction News that
BSL Built Solutions had been subject to 75 adverse reports from
its customers over the last 12 months, H&V News relates.

The report notes that one subcontractor that worked with BSL on a
recent job told Construction News that it was still owed
GBP30,000 for work it had carried out.

BSL subsidiaries BSL Joinery Solutions and BSL Built Solutions
London also fell into administration last month.

BSL's last full set of published accounts, for the 12 months to
October 2011, show it had a turnover of GBP5.4 million and made a
pre-tax profit of GBP465,000, the report relays.

The company's business was focused on high-value housing
refurbishment work.


ENERGY NORTH: Goes Into Liquidation
-----------------------------------
Phil Allan at Energy Voice reports that non-profit Scottish
industry trade body Energy North has gone bust.

More than 200 members have been informed by letter from the
Invergordon-based organization that the Energy North board had
taken steps to put the company into liquidation, according to
Energy Voice.

The report relates that Energy North was set up to promote the
interests of those involved in the oil and gas, nuclear and
renewable sectors across the north of Scotland and the islands.

Originally formed as the North of Scotland Industries Group, its
area of operation covered Aberdeen, Aberdeenshire, Orkney,
Shetland, Caithness, Sutherland, Skye, Lochalsh, Ross-shire,
Lochaber, Inverness, Moray, Argyll, and the Outer Hebrides.
Member companies included Amec Foster Wheeler, Chevron, Barclays
and Subsea 7 and Highland Council.

The report discloses that in a letter seen by Energy Voice,
members were informed: "It is with deep regret the Board of
Energy North writes to advise you that the directors of Energy
North have taken steps to put the company into Liquidation."

"The [board] took the difficult decision to enter Liquidation as
a result of declining income, a fall in membership and
significant uncertainties affecting the sector which are expected
to impact further upon future sources of funding."

"The Board very much regret that it is not possible in the
current climate for the organization to continue its valuable
work on behalf of our members across the energy sector.  We
remain confident that the energy sector in the north will recover
strongly from the current challenges, as it has done in the past,
drawing upon the outstanding people, facilities and resources our
region has to offer."

"This decision is no reflection on our team of dedicated staff,
who have worked hard in recent months to secure Energy North's
survival.  We would particularly like to acknowledge the efforts
made by Stuart Deed since joining us as chief executive in June."

The report says that Mr. Deed took over as chief executive from
Ian Couper, who stepped down after eight years at the helm.

Baker Tilly Restructuring and Recovery will be appointed joint
interim liquidators, the report notes.  It will oversee the
orderly wind down of the company and recover the assets for the
benefit of creditors, the report adds.


LECKS TRAVEL: Shuts Down Operations, Cuts 11 Jobs
-------------------------------------------------
North West Evening reports that Lecks Travel disclosed that is
has ceased trading with immediate effect.

The company announced that it ceased trading August 12 and a
meeting is due to take place on August 25 to officially place the
company in liquidation, according to North West Evening.

It is understood that the company will not be fulfilling existing
bookings and alternative arrangements are being made, the report
notes.

Lecks Travel has contacted any customers that have been affected
and full refunds have been made, the report relates.

A statement from The P&A Partnership -- the company appointed to
manage to process -- said: "On Wednesday, August 12 Lecks Travel
was closed for business and ceased all trade.   Booths had
terminated their free bus service on August 31.  New school
contracts had been greatly undercut and ongoing increasing costs,
time and effort of running the business all had an effect on this
decision."

"The process will be handled on a voluntary liquidation basis by
The P&A Partnership Limited who have been appointed by the
director of Lecks Travel.  A meeting of creditors will be held on
August 25 to formally place the company in liquidation.  Buyers
are being sought to take over the company bookings going
forward."

"Short term arrangements have been made for immediate bookings.
All 11 employees have now been made redundant."

The Haverthwaite company has served residents in South Cumbria
for more than 90 years, providing vital services such as the free
Booths bus in Ulverston.   Established in 1924 under the guise of
Lecks Garage, the family firm began doing small taxi runs for the
local school which eventually led to its rebrand as Lecks Travel
in 1997.


ULYSSES NO 27: Fitch Lowers Rating on Class D Notes to 'CCsf'
-------------------------------------------------------------
Fitch Ratings has downgraded Ulysses (European Loan Conduit No.
27) Plc's class D notes and affirmed the others, as follows:

  GBP249 million class A (XS0308745107) affirmed at 'BBBsf';
  Outlook revised to Negative

  GBP76 million class B (XS0308747657) affirmed at 'Bsf'; Outlook
  Stable

  GBP48 million class C (XS0308748200) affirmed at 'B-sf';
  Outlook Negative

  GBP45 million class D (XS0308748622) downgraded to 'CCsf' from
  'CCCsf'; Recovery Estimate (RE) RE50%

  GBP11 million class E (XS0308749356) affirmed at 'CCsf'; RE0%

KEY RATING DRIVERS

The revision of the Outlook on the class A notes to Negative
reflects the potential for this class to be downgraded should a
sale of the asset not be secured 12 months before the July 2017
legal final maturity (LFM) of the notes. A full recovery of the
interest shortfalls accruing on the class D notes is increasingly
unlikely, which led to this class being downgraded to 'CCsf'.

With the London City office market experiencing a squeeze on
floor space availability, the consequent increases in rental
levels (across all property grades) add downward pressure on
yields that are already depressed given significant investor
appetite. This is reflected in the most recent valuation in
December 2014, which revealed an increase in value to GBP498
million from GBP444.3 million earlier that year.

This bodes well for recovery prospects, which if this trend
continues, could see the principal on all bonds (if not interest
shortfalls on the D and E) repay in full -- despite the presence
of senior ranking issuer costs. These are in the form of a capex
facility, drawings on the servicer advance facility (SAF) and
break costs relating to the issuer's interest rate swap -- the
size of the latter two largely dependent on when the sale of the
asset occurs.

However, valuations across the market are well above long-term
trends, which questions the sustainability of current values even
in the shorter term. Fitch's more conservative estimate of value
is around GBP440 million (before costs).

Asset management initiatives are progressing well with take up of
previously vacant space leaving only 9,000 sq ft of floor space
(1.5% of total) now unoccupied. This will be offset once four
tenants (providing 14% of contracted rental income) vacate in
mid-2016. However, it is very marketable space (on the upper
floors), and the asset manager has access to GBP14m from the
capex facility that it can use for tenant incentives.

The increased occupancy (net rental income increased to a peak of
GBP6.9 million in 2Q15 from GBP5.6 million in 3Q14) has
approximately halved the quarterly drawing on the SAF. As the
accumulated drawings of GBP29.7 million rank senior to note
principal, continuing to restrict SAF drawdowns (which will be a
greater challenge after the four tenants vacate next year) would
lessen the final burden on the issuer.

The SAF is primarily being drawn to meet payments to the interest
rate swap provider (which rank senior to interest under the
notes). The swap, which covers the whole loan rather than just
the securitized portion, creates a drag that has contributed to
the interest shortfalls on the class D and E notes. As these are
unlikely to be recovered in full prior to LFM, Fitch expects an
eventual default of the notes even if full principal recovery is
achieved.

The interest rate swap expires at bond maturity in July 2017.
Fitch estimates its current mark-to-market value at around GBP35
million to GBP40 million (in favor of the bank counterparty).
Assuming no significant change in interest rates, this issuer
liability should fall to around GBP20 million by mid-2016, when
asset disposal is more likely.

RATING SENSITIVITIES

A failure to secure a sale of the asset by mid-2016 could result
in a downgrade of the class A notes. A failure to secure lease
extensions on key tenants, a downturn of market conditions or a
tenant default resulting in increased drawings on the SAF could
see further downward pressure on the ratings of the most junior
notes.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation
to this rating action.

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pool and the transaction. Fitch has not reviewed the results of
any third party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.


UNIVERSAL ENGINEERING: In Administration, 50 Jobs Affected
----------------------------------------------------------
BBC News reports that Universal Engineering has gone into
administration with the loss of around 50 jobs.

According to BBC, the administrators said 75 workers at both
plants would be kept on while they explore options to keep parts
of the company going.

A downturn in the global oil and gas market has been blamed, BBC
discloses.

Workers were made redundant on Aug. 18, after last week being
warned 124 jobs were a risk -- including 81 at Llantrisant, BBC
relays.

"Discussions have been held with parties interested in acquiring
parts of the business and a number of its customers have been
hugely supportive in assisting the company in this challenging
time," BBC quotes Bristol-based Milstead Langdon administrators
as saying.

Universal Engineering is a south Wales engineering company.



===============
X X X X X X X X
===============


* Moody's Says EMEA 60-90 Days Delinquency Rate Dipped in January
-----------------------------------------------------------------
The performance of EMEA residential mortgage-backed securities
(RMBS) markets slightly improved in the six-month period ended
January 2015, according to the latest indices published by
Moody's Investors Service.

With the exception of the RMBS markets in Greece (Caa3 on review
for downgrade), the 60-90 day delinquencies index remained below
1% for most EMEA RMBS markets.

The Dutch RMBS and German RMBS markets remained among the best-
performing EMEA markets in terms of 60-90 day delinquency rates.
Both Dutch NHG (Nationale Hypotheek Garantie) RMBS and German
prime RMBS markets showed stable 60-90 day delinquency rates,
standing at 0.19% in January 2015.

The RMBS markets in Ireland (Baa1, stable) and Spain (Baa2,
positive) continued to show signs of stabilization in the twelve
months since January 2014.  The Irish 60-90 day delinquencies
index significantly improved, decreasing to 0.87% in January 2015
from 1.63% in January 2014.  The Spanish 60-90 delinquencies
continued improving, dropping to 0.84% in January 2015 from 0.95%
in January 2014.

The Portuguese and Italian RMBS 60-90 delinquency rates also
decreased modestly over the same period.  The Italian 60-90 day
delinquencies index fell to 0.63% in January 2015 from 0.70% in
January 2014, while in Portugal the rate decreased to 0.28% in
January 2015 from 0.29% in January 2014.

In the 12-month period ended January 2015, the overall
outstanding balance of all EMEA RMBS rated by Moody's decreased
by 1.1%. However, the French RMBS market reported higher
outstanding pool balances and the Spanish RMBS market outstanding
balance remained stable, owing to the issuance of new
transactions.

As of Aug. 2015, Moody's outlooks on the collateral performance
of RMBS transactions were (1) negative for Greece and South
Africa; (2) stable for Spain, Ireland, the Netherlands, France,
Germany, Portugal and Italy; and (3) positive for the UK.

Moody's believes that the performance of UK mortgage securitized
pools will continue to improve, aided by higher GDP growth,
prevailing low interest rates and low unemployment compared to
the rest of Europe.  In addition, Moody's expects that the UK
mortgage deals will be resilient to the anticipated rise in the
UK's base rate.

Moody's expects the performance of German and Dutch RMBS
transactions to remain strong, supported by low unemployment
rates, appreciating house prices and low interest rates in the
two countries.

Moody's outlook for the Spanish and Irish RMBS sectors remains
stable, owing to improving economic indicators.  For Spanish
RMBS, Moody's expects improvements in unemployment levels to
translate into lower defaults and delinquencies.  The likely
decrease in house prices between -5% and 0% for 2015 will
continue to depress recoveries of Spanish RMBS.  However, the
increase in mortgage origination could help to slow down the
house price decline in Spain.

In Ireland, the improving economy, employment growth and reduced
moral hazard on mortgage loans prompted by changes in government
policy will continue to support the improving mortgage arrears
trend.  Moody's expects the housing market to show a 5%-10% house
price increase in 2015, which will reduce loss severities.  Irish
banks' decision not to write-off mortgages from financially able
borrowers unwilling to pay will lead to a rise in repossession
rates, but overall rates will remain low.

In line with Moody's negative collateral performance outlook for
Greece, on 3 July 2015, Moody's downgraded and placed on review
for downgrade the ratings on 14 notes and placed on review for
downgrade the ratings on five notes in eight Greek structured
finance transactions.  The rating action reflects a lowering of
Greece's country ceiling to Caa2 from B3 and the downgrade of
Greece's sovereign rating to Caa3 from Caa2 that occurred on 1
July 2015.

Link to excel file:

http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF415835


                            *********

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 Amazon.com.  Go to
http://www.bankrupt.com/booksto 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
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Information contained herein is obtained from sources believed to
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or balance thereof are US$25 each.  For subscription information,
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                 * * * End of Transmission * * *