TCREUR_Public/150903.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, September 3, 2015, Vol. 16, No. 174



* CROATIA: New Law to Push 19,646 Companies Into Bankruptcy


GREECE: Gudmundsson Says Capital Controls to Help Prop Up Economy


KINTYRE CLO I: Moody's Raises Rating on Class E Notes to Ba2


STORM 2015-II: Fitch Assigns 'BB(EXP)sf' Rating to Class E Notes


ALFA STAR: To File for Liquidation


AMB BANK: Liabilities Exceed Assets, Bank of Russia Says
BANK ENO: Bank of Russia Ends Provisional Administration
COMSOCBANK BUMERANG: Liabilities Exceed Assets, Probe Finds
FEDERAL GRID: S&P Affirms 'BB+' Long-Term CCR, Outlook Negative
INVESTTRADEBANK JSC: S&P Lowers Counterparty Ratings to 'R/R'

SOGAZ OJSC: S&P Affirms 'BB+' IFS Rating, Outlook Stable
TRANSAERO: Aeroflot Set to Secure Controlling Stake


BEOGRADSKA INDUSTRIJA: Court to Commence Bankruptcy Proceedings


SAAB AUTOMOBILE: Former Execs Accused of Falsifying Documents

U N I T E D   K I N G D O M

FERGUSON MARINE: Named Preferred Bidder for GBP97MM Contract
FINDUS PLEDGECO: Fitch Puts 'B-' IDR on Rating Watch Evolving
GODFREYS: In Administration, Cuts 24 Jobs
SARCON (NO. 177): In Administration, Owes GBP7.5 Million



* CROATIA: New Law to Push 19,646 Companies Into Bankruptcy
According to Xinhua, local media reported that a new Croatian law
on bankruptcy came into effect on Sept. 1, sending 19,646
companies into bankruptcy.

Croatian Minister of Justice Orsat Miljenic said that
implementing the new law would speed up the bankruptcy procedure
and remove companies that generate big insolvency from the
market, Xinhua relates.

The new law stipulates the companies whose assets have been
blocked for more than 120 days will be pushed to bankruptcy,
Xinhua says.

Those companies that did not pay wages to its employees for three
months will also risk entering the bankruptcy procedure,
according to the new Bankruptcy Act, Xinhua notes.

The report said the 19,646 companies owe debts of over HRK19.2
billion (US$2.8 billion), among them 15,001 companies, with no
employees at all, have debts totaling around HRK14.5 billion
(US$2.1 billion dollars), Xinhua relays.


GREECE: Gudmundsson Says Capital Controls to Help Prop Up Economy
Jeff Black and Brendan Greeley at Bloomberg News report that
Greece's capital controls can help the economy recover and don't
have to be disruptive as long as they're managed fairly,
according to the governor of the only other central bank in
Europe with such restrictions in place.

"It is very important that you have a kind of efficient
government apparatus that puts the interests of everybody in view
and is seen to be fair," Bloomberg quotes Central Bank of Iceland
Governor Mar Gudmundsson as saying in an interview.

While "you shouldn't use them lightly, they can work -- they
worked in our case."

The Atlantic island nation is aiming to remove all restrictions
on the movement of money by 2017, nine years after they were
introduced after a banking collapse in October 2008, Bloomberg

Greece, which teetered on the edge of a euro exit this summer
after disagreeing with creditors over aid conditions, limits the
amount of cash citizens can withdraw from their bank accounts,
Bloomberg discloses.

"There are significant differences, because in Greece these are
more controls on domestic residents taking out their money,
whereas in our case we had very big bankruptcies of private
banks," Mr. Gudmundsson, as cited by Bloomberg, said.  "We were
dealing with an overhang of foreign claims on the Icelandic
private sector of maybe half of our" gross domestic product.

Greece became the second country in the euro area, after Cyprus,
to introduce such curbs, even though in principle European law
guarantees the free movement of capital, Bloomberg notes.

Mr. Gudmundsson said official attitudes on capital controls have
changed completely, with creditor institutions such as the
International Monetary Fund seeing them as a useful tool,
Bloomberg relays.


KINTYRE CLO I: Moody's Raises Rating on Class E Notes to Ba2
Moody's Investors Service has upgraded the ratings of these notes
issued by Kintyre CLO I P.L.C.:

  EUR19,950,000 Class D Senior Secured Deferrable Floating Rate
   Notes due 2023, Upgraded to A2 (sf); previously on March 23,
   2015, Upgraded to Baa1 (sf)

  EUR11,550,000 Class E Senior Secured Deferrable Floating Rate
   Notes due 2023, Upgraded to Ba2 (sf); previously on March 23,
   2015, Upgraded to Ba3 (sf)

Moody's also affirmed EUR43.87 million notes:

  EUR239,750,000 (EUR1.87M outstanding balance) Class A Senior
   Secured Floating Rate Notes due 2023, Affirmed Aaa (sf);
   previously on March 23, 2015, Affirmed Aaa (sf)

  EUR20,300,000 Class B Senior Secured Deferrable Floating Rate
   Notes due 2023, Affirmed Aaa (sf); previously on March 23,
   2015, Affirmed Aaa (sf)

  EUR21,700,000 Class C Senior Secured Deferrable Floating Rate
   Notes due 2023, Affirmed Aaa (sf); previously on March 23,
   2015, Upgraded to Aaa (sf)

Kintyre CLO I P.L.C., issued in March 2007, is a collateralized
loan obligation (CLO) backed by a portfolio of mostly high-yield
senior secured European loans.  The portfolio is managed by BNP
Paribas.  The transaction's reinvestment period ended in December


The upgrades of the notes are primarily a result of deleveraging
arising from the last payment date in June 2015.  As a result,
the class A note has paid down EUR25.08 million (10.46% of its
initial balance) leading to significant increases in over-
collateralization levels across the capital structure.  As of the
July 2015 trustee report, the Class A, B, C, D and E over-
collateralization ratios are reported at 4788.26%, 404.87%,
204.63%, 140.67% and 119.11% respectively compared with 424.46%,
242.16%, 165.96%, 128.72% and 113.92% in January 2015.

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
EUR pool with performing par and principal proceeds balance of
EUR93.15 million, a defaulted par of EUR9.90 million, a weighted
average default probability of 41.12% (consistent with a WARF of
4111.84 over a weighted average life of 3.69 years), a weighted
average recovery rate upon default of 47.97% for a Aaa liability
target rating, a diversity score of 16 and a weighted average
spread of 4.20%.

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 that 94.20% of the portfolio exposed to senior
secured corporate assets would recover 50% upon default, while
the non first-lien loan corporate assets would recover 15%.  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 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 in
the portfolio.  Moody's ran a model in which it reduced the
weighted average recovery rate by 5%; the model generated outputs
that were within one notch of the base-case results.

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
notes, 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 due to embedded ambiguities.

Additional uncertainty about performance is due to these:

  1) 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 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.

  2) Around 44% of the collateral pool consists of debt
obligations whose credit quality Moody's has assessed by using
credit estimates.

  3) Recoveries on 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.

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.


STORM 2015-II: Fitch Assigns 'BB(EXP)sf' Rating to Class E Notes
Fitch Ratings has assigned STORM 2015-II B.V.'s notes expected
ratings as follows:

Class A floating-rate notes: 'AAA(EXP)sf'; Outlook Stable
Class B floating-rate notes: 'AA(EXP)sf'; Outlook Stable
Class C floating-rate notes: 'A-(EXP)sf'; Outlook Stable
Class D floating-rate notes: 'BB(EXP)sf'; Outlook Stable
Class E floating-rate notes: 'BB(EXP)sf'; Outlook Stable

The transaction is a true sale securitization of prime Dutch
residential mortgage loans originated and serviced by Obvion N.V.
Since May 2012, Obvion has been 100% owned by Rabobank Group and
has an established track record as a mortgage lender and issuer
of securitizations in the Netherlands.

The expected ratings address timely payment of interest,
including the step-up margin accruing from the payment date
falling in September 2021, and full repayment of principal by
legal final maturity in accordance with the transaction
documents. The final ratings are contingent upon the receipt of
final documents and legal opinions conforming to the information
already received.

Credit enhancement (CE) for the class A notes will be 7.0% at
closing, provided by the subordination of the junior notes and a
non-amortizing cash reserve (1%), fully funded at closing through
the class E notes.


Market Average Portfolio

The 46-month seasoned portfolio consists of prime residential
mortgage loans, with a weighted average (WA) original loan-to-
market-value of 90.7% and a WA debt-to-income ratio of 28.8%,
both of which are typical for Fitch-rated Dutch RMBS transactions
and in line with previous STORM transactions.

NHG Loans

32.8% of the loans benefit from a Nationale Hypotheek Garantie
(NHG) guarantee. Fitch received historical claims data to
determine a compliance ratio assumption, which it deemed to be in
line with the market average. Fitch did not apply a reduction in
foreclosure frequency for the NHG loans, since historical data
provided did not show a clear pattern of lower defaults for NHG
loans. Fitch also tested the transaction without giving any
credit to the NHG guarantee and found the ratings on the class A
notes to be identical.

Structure Unchanged

CE will be provided by the subordination of junior notes and a
non-amortizing reserve of 1%, funded through the class E notes.
The transaction also contains a liquidity facility (2% of the
notes, floored at 1.45%) and a margin-guaranteed total return
swap, which is unchanged from previous Fitch-rated STORM

Rabobank Main Counterparty

The transaction relies strongly on the creditworthiness of
Rabobank, which fulfils a number of roles. Fitch gave full credit
to the structural features in place, including those mitigating
construction deposit set-off and commingling risk embedded in the

Robust Performance

The past performance of transactions in the STORM series, as well
as data received on Obvion's loan book, indicate good historical
performance in terms of low arrears and losses.


Material increases in the frequency of defaults and loss severity
on defaulted receivables could produce losses larger than Fitch's
base case expectations, which in turn may result in negative
rating actions on the notes. Fitch's analysis revealed that a 30%
increase in the WA foreclosure frequency, along with a 30%
decrease in the WA recovery rate, would result in a model-
implied-downgrade of the class A notes to 'Asf'.


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


For its rating analysis, Fitch received a data template with all
fields fully completed.

Fitch reviewed the results of a third party assessment conducted
on the asset portfolio information. Each year, an internationally
recognized accounting firm conducts the report on a single
eligible mortgage pool, which will be used for all transactions
in the respective year. The report indicated no adverse findings
material to the rating analysis.

Overall and together with the assumptions referred to above,
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.


ALFA STAR: To File for Liquidation
Reuters reports that Alfa Star will file for liquidation.

The company said it lost its financial liquidity on Aug. 29,
according to Reuters.

The report notes that the company stopped travel services and
started the procedure of guaranteeing clients' returns from
holidays and providing them with other services, including
reimbursement of incurred costs

The report adds that it is preparing to file for bankruptcy,
including the liquidation of the company's assets.


AMB BANK: Liabilities Exceed Assets, Bank of Russia Says
The Bank of Russia, by its Orders Nos. OD-1770, OD-1772, OD-1774,
dated July 24, 2015, and Order No. 1790, dated July 27, 2015,
cancelled the banking licenses of AMB BANK (PJSC), M BANK (CJSC),
(PJSC) (hereinafter, the group of banks) and appointed
provisional administration to manage these banks.

In the course of its examination of the quality of the assets of
the group of banks and non-governmental pension funds associated
with it, the Bank of Russia established that intra-group
transactions carried out with the involvement of banks'
management and owners were aimed at withholding information from
the supervision body on the actual financial standing of the
banks and non-governmental pension funds of the group of banks as
well as on transactions made to move out the assets.

The group of banks actually ignored core banking activity.  The
funds attracted were placed in the interests of the owners of the
group of banks and related companies hence more than 50% of the
credit portfolio of the group of banks is currently hard to

The analysis of the mortgage participation certificates on the
balance sheet of the group of banks worth RUR10.5 billion showed
that a fair value of land plots served as collateral is
overstated at least twofold.

Currently, the provisional administrations to manage these credit
institutions are examining their financial standing with the
preliminary results showing that liabilities of the group of
banks worth RUR210.5 billion are well above the real value of
their assets (RUR109.9 billion).

The Bank of Russia submitted the information on financial
transactions bearing the evidence of criminal offences conducted
by the former management and owners of the group of banks to the
Prosecutor General's office of the Russian Federation, the
Russian Ministry of Internal Affairs and the Investigation
Committee of the Russian Federation for consideration and
procedural decision making.

BANK ENO: Bank of Russia Ends Provisional Administration
Due to the August 14, 2015 ruling of the Court of Arbitration of
the Krasnodar Territory on the forced liquidation of the credit
institution Joint-Stock Commercial Bank Eno (Public Joint-Stock
Company) and appointing a receiver in compliance with Clause 3 of
Article 18927 of the Federal Law "On the Insolvency
(Bankruptcy)", the Bank of Russia took a decision (Order No. OD-
2321, dated September 1, 2015) to terminate from September 2,
2015, the activity of the provisional administration of
Commercial Bank Eno appointed by Bank of Russia Order No. OD-
1552, dated July 3, 2015, "On the Appointment of the Provisional
Administration to the Krasnodar-based JOINT-STOCK COMMERCIAL BANK
ENO (PJSC) Due to the Revocation of Its Banking License".

COMSOCBANK BUMERANG: Liabilities Exceed Assets, Probe Finds
The provisional administration of JSC ComSocbank Bumerang
appointed by Bank of Russia Order No. OD-1110, dated May 20,
2015, due to the revocation of the banking license, in the course
of examination of its financial standing has established the fact
of withdrawal of assets over RUR1 billion worth through extending
loans to companies with dubious creditworthiness.

Besides, prior to the revocation of the banking license, while
having creditworthiness problems the bank management performed
operations to move out liquid assets through paying bonuses to
the bank management and personnel in the amount that exceeded
manifold their average monthly wages over the last year as well
as extended loans to several legal entities with subsequent money
transfer to account of the Chairman of the Board and paying him
from the cash desk of the bank.

As a result of the examination, the provisional administration
established that the values of bank assets did not exceed RUR350
million while its liabilities to creditors amounted to RUR1,167.7
million.  Given the situation, on July 2, 2015, the Court of
Arbitration of the Vologda Region took a decision to declare
ComSocbank Bumerang insolvent (bankrupt) and to initiate
bankruptcy proceedings with the state corporation Deposit
Insurance Agency appointed as a receiver.

The Bank of Russia submitted the information on financial
transactions bearing the evidence of the criminal offence
conducted by the former management and owners of ComSocbank
Bumerang to the Prosecutor General's office of the Russian
Federation, the Russian Ministry of Internal Affairs and the
Investigation Committee of the Russian Federation for
consideration and procedural decision making.

FEDERAL GRID: S&P Affirms 'BB+' Long-Term CCR, Outlook Negative
Standard & Poor's Ratings Services affirmed its 'BB+' long-term
corporate credit rating and 'ruAA+' long-term Russia national
scale rating on Russian electricity transmission grid operator
Federal Grid Co. of the Unified Energy System (FGC).  The outlook
is negative.

The rating affirmation reflects S&P's view of FGC's unchanged
stand-alone credit profile (SACP) of 'bb+' and S&P's assessment
of a "very high" likelihood of timely and sufficient
extraordinary state support from the government of Russia
(foreign currency BB+/Negative/B) in case of need.

"The company has negotiated a reduced investment program for the
next regulatory period (2015-2019) with annual spending of about
Russian ruble (RUB) 80 billion (US$1.2 billion); this compares
with RUB60 billion-RUB150 billion per year in 2010-2014.  We
think that these investments will largely be covered by internal
cash flows, with only moderate exposure to new borrowing.  We
also note that FGC plans to obtain access to the Russian National
Wealth Fund through electricity grid modernization projects for
the Baikal-Amur Mainline and TransSib rail routes.  We expect
this funding to be provided in a debt-like form to FGC, most
likely via issuance of bonds on beneficial terms (extended
maturities and relatively low rates, similar to infrastructure
bonds)," S&P said.

In accordance with S&P's criteria for rating government-related
entities (GREs), its view of a "very high" likelihood of
extraordinary government support is based on S&P's assessment of

   -- "Very important" role, given the company's strategic
      importance to the Russian government as a monopoly provider
      of essential electricity infrastructure; and

   -- "Very strong" link with the Russian Federation, given the
      government's indirect majority ownership of the company
     (via a holding by transmission and distribution grid company
      Rosseti), strong track record of ongoing financial support,
      and the level of control over FGC's strategy and
      operations.  As stipulated by law, the state's share in FGC
     (either direct or indirect) cannot fall below 50% plus one

The negative outlook on FGC mirrors S&P's negative outlook on
Russia.  Given S&P's assessment of FGC's likelihood of
extraordinary government support as "very high" and full exposure
of the company's operations to Russian country risk, S&P do not
expect to rate FGC higher than the foreign currency sovereign
rating on Russia.

Any lowering of the foreign currency rating on Russia is likely
to lead to a similar rating action on FGC.

Under S&P's GRE criteria, it could also lower the long-term
rating on FGC if S&P revised its assessment of the company's SACP
downward by three notches or more, assuming S&P's assessment of
the "very high" likelihood of extraordinary government support
and our long-term ratings on Russia remain unchanged.  This might
result from FGC adopting more aggressive financial policies than
S&P currently anticipates.  This would include any unanticipated
weakening in the company's liquidity position, heavier reliance
on short-term funding, or higher-than-expected debt leverage
indicating a "highly leveraged" financial risk profile, with a
debt-to-EBITDA ratio exceeding 5.0x and FFO to debt below 12% on
a consistent basis.  This is currently not a part of S&P's base

S&P could revise its outlook on FGC to stable if S&P revised the
outlook on Russia to stable.

INVESTTRADEBANK JSC: S&P Lowers Counterparty Ratings to 'R/R'
Standard & Poor's Ratings Services lowered its long- and short-
term counterparty credit ratings on Russia-based Investtradebank
JSC to 'R/R' from 'B/B' and the Russia national scale ratings on
Investtradebank to 'R' from 'ruBBB+'.  S&P does not assign
outlooks to regulatory supervision ratings.

The downgrade reflects the regulatory risk related to the Central
Bank of Russia's (CBR's) intervention and the Deposit Insurance
Agency's (DIA's) involvement and possible -- though not
certain -- introduction of a moratorium on some of
Investtradebank's credit obligations.  On Aug. 28, 2015, the CBR
assigned the DIA to be temporary manager of Investtradebank and
to develop a plan for its financial rehabilitation.

S&P is not aware of any details of the rehabilitation plan as of
this publication, although it is possible that the regulator will
prioritize some of the bank's credit obligations over others.
S&P therefore lowered its ratings on Investtradebank to 'R'
(indicating the obligor is under regulatory supervision), as per
S&P's criteria.

In addition, S&P believes that the bank could breach the
prudential capital and liquidity norms that the CBR has set.
Since the beginning of 2015, Investtradebank has created
additional provisions of Russian ruble (RUB) 2.3 billion
(approximately US$34 million as of this publication), the major
part of which was created over last two months at the CBR's
request.  As a result, as of Aug. 1, 2015, Investtradebank's
regulatory capital had decreased to RUB14.4 billion and its
regulatory capital adequacy ratio was 10.44% (very close to the
regulatory minimum of 10%).

Investtradebank's liquidity risks also increased in August when
the information on the creation of additional provisions was made
public.  The bank faced problems in the Ivanovo region, where an
outflow of deposits exceeded RUB2 billion and eroded the bank's
liquidity cushion.

Any further rating actions on Investtradebank will largely depend
on the details of the rehabilitation procedure to be implemented
by the DIA and on S&P's opinion of the bank's business and
financial prospects once these details are available and after
the financial rehabilitation plan has been implemented.

There are several options that the DIA might chose to resolve the
issues at Investtradebank, including:

   -- A total or partial sale to a strategic investor that is
      willing to take over the bank;

   -- Long-term management under the DIA rehabilitation plan if
      there is no investor interest; and

   -- A run-off of the bank's operations if it appears that its
      business model is not viable.

SOGAZ OJSC: S&P Affirms 'BB+' IFS Rating, Outlook Stable
Standard & Poor's Ratings Services affirmed its 'BB+' long-term
insurer financial strength ratings and counterparty credit
ratings on Russian insurer OJSC Sogaz and its core subsidiary
CJSC Insurance Co. TRANSNEFT (IC TRANSNEFT).  The outlook is

At the same time, S&P affirmed its 'ruAA+' Russia national scale
rating on both companies.

The affirmation reflects Sogaz's fair business risk profile,
which is supported by its strong competitive position on the
Russian insurance market.  The ratings continue to incorporate
the company's less-than-adequate financial risk profile, which is
supported by strong capital and earnings and capped by the
weighted average credit quality of the investment portfolio at

"We equalize the rating on IC TRANSNEFT with that on Sogaz due to
our view of its core status within the group.  This indicates
that we believe: IC TRANSNEFT is unlikely to be sold; its
operations are integral to the overall group strategy; it has no
ongoing performance problems; and it represents at least 5% of
consolidated group capital.  We expect that IC TRANSNEFT will be
fully integrated within the group by end-2016 and closely linked
to the group's reputation and risk management," S&P said.

Sogaz has a strong competitive position in the Russian insurance
market, in particular in commercial lines of business and
voluntary medical insurance.  In S&P's base-case scenario, the
company's premium growth will largely depend on economic
conditions in Russia and close ties maintained with Russian
vertically integrated gas company Gazprom OAO and its related
entities.  Taking into account the current deceleration of the
Russian economy and additional U.S. sanctions, S&P foresees a
potential negative impact on the company's growth prospects and
availability of the appropriate reinsurance protection provided
by Western reinsurers.  However, S&P expects annual premium
growth will be at least 10% in 2015 and 2016, supported by the
company's focus on the corporate sector.

S&P expects Sogaz's earnings stream will remain stable in 2015
under S&P's base-case scenario, with net income of more than
Russian ruble (RUB) 11 billion (about US$150 million) in 2015 and
RUB12 billion in 2016.  S&P believes that sufficient internal
capital generation will enable the company to maintain stronger
capital adequacy.  S&P has therefore revised upward its
assessment of the company's capital and earnings to strong from
moderately strong.  Also, improvements in capital adequacy are
fueled by lower asset-risk charges stemming from investments in
equities and property.

After applying S&P's foreign-currency sovereign stress scenario,
it considers that Sogaz would likely retain positive regulatory
capital and maintain a liquidity ratio in excess of 100%.  S&P
believes that Sogaz is unlikely to default on its insurance
liabilities under the scenario.  Therefore, the ratings on Sogaz
can be higher than S&P's 'BB+' long-term foreign currency rating
on Russia, but are limited by the 'BBB-' long-term local currency
rating on the sovereign.  Currently, S&P would not rate Sogaz
more than one notch above the foreign currency rating on Russia,
owing to the company's substantial exposure to its Russia-based

The stable outlook reflects S&P's view that Sogaz will likely
maintain its strong competitive position in the Russian insurance
market, strong capital adequacy, and at least less-than-adequate
investment quality under S&P's methodology over the next 12-18
months.  S&P also thinks the company will continue to benefit
from its strong ties with Gazprom.

S&P would likely lower the ratings on Sogaz over the next 12-18
months if S&P lowered its local currency sovereign credit rating
on Russia by two notches.  S&P could also consider a negative
rating action if it was to observe a weakening of Sogaz's close
ties with Gazprom or if it were to pay higher-than-expected
dividends or make large acquisitions of noncore assets.  Should
Sogaz's average credit quality deteriorate to weak from the
current less-than-adequate level, S&P could also consider a
negative rating action.

In light of S&P's negative outlook on the local and foreign
currency sovereign ratings on Russia, S&P currently views a
positive rating action on Sogaz as remote.

However, a positive rating action could follow if the average
credit quality of Sogaz's investments improves to adequate and
doesn't cap the financial risk profile at its current less-than-
adequate level.

TRANSAERO: Aeroflot Set to Secure Controlling Stake
Courtney Weaver at The Financial Times reports that Russian
state-controlled airline Aeroflot is set to secure a controlling
stake in troubled carrier Transaero, as the country's economic
crisis fuels consolidation in the transport industry and other

The deal, announced during a meeting on Sept. 1 chaired by
Igor Shuvalov, Russia's first deputy prime minister, will combine
the country's two biggest airlines, the FT relates.

As part of the deal, Aeroflot will pay a symbolic one rouble --
or about one US cent -- to take a 75% stake plus one share in
heavily indebted Transaero, the FT relays, citing Russian news

The government-backed deal has already been confirmed by
privately held Transaero, and is expected to be approved by
Aeroflot's board at its next meeting, the FT notes.

According to the FT, a person involved in the Sept. 1 discussions
said Aeroflot would take on all of Transaero's customers holding
valid tickets.

A merger with Aeroflot saves Transaero from bankruptcy, the FT
says.  It also averts any social upheaval from Transaero's
thousands of employees losing their jobs, and safeguards the
tickets held by tens of thousands of customers, according to the

It is less clear what the deal will mean for Aeroflot, which is
expected to have to take on Transaero's debts, the FT relays.

At the end of March, Transaero's net debt stood at RUR67.6
billion, the FT discloses.

Last month, Russian lender Otkritie, a Transaero creditor, filed
a RUR1.3 billion lawsuit against the carrier for late payments,
the FT recounts.

OJSC Transaero Airlines is a Russian airline with its head office
in Saint Petersburg.  It operates scheduled and charter flights
to 103 domestic and international destinations.


BEOGRADSKA INDUSTRIJA: Court to Commence Bankruptcy Proceedings
SeeNews reports that the commercial court in Belgrade has ruled
there are grounds to launch bankruptcy proceedings for indebted
Serbian brewer Beogradska Industrija Piva.

The request for the launch of bankruptcy proceedings was lodged
by the country's tax administration to which the brewer owes some
RSD782.6 million (US$7.3 million/EUR6.5 million), SeeNews relays,
citing news daily Vecernje Novosti.

In July, local media reported that an agreement for the sale of
the brewery had been reached between Serbia's prime minister, the
brewer's trade union, the economy minister and the director of
the Privatisation Agency, SeeNews recounts.

The Privatisation Agency was given three months to wrap up the
sale deal, SeeNews relates.  However, Novosti reported that
despite talks of a sell-off, bankruptcy has been announced at the
expense of minority shareholders who most likely won't see their
share of the company's capital, SeeNews notes.

Novosti, as cited by SeeNews, said small shareholders claim that
the brewery had begun to repay its debts and could have avoided

BIP turned to a net loss of RSD550.8 million dinars in 2014 from
a net profit of RSD186.9 million a year earlier, SeeNews


SAAB AUTOMOBILE: Former Execs Accused of Falsifying Documents
The reports that Swedish car maker Saab's former CEO Jan
ke Jonsson and the firm's former head lawyer Kristina Geers have
appeared in court in Vaenersborg in west Sweden, accused of
falsifying financial documents shortly before the company went
bankrupt in 2011.

The pair is accused of falsifying the paperwork at the height of
the Swedish company's financial difficulties at the start of the
decade, The discloses.

A third person -- who has not been named in the Swedish media --
is accused of assisting them by issuing false invoices adding up
to a total of SEK30 million (US$3.55 million), The

The charges relate to the firm's business in Ukraine and the
paperwork in question was signed just before former CEO Jan Ake
Jonsson resigned, The relays, citing court documents.

All three suspects deny all the charges against them, The discloses.
Saab filed for bankruptcy at the end of 2011, after teetering on
the edge of collapse for nearly two years, The recounts.

Chief prosecutor Olof Sahlgren told the court in Vanersborg on
Sept. 2 that the alleged crimes took place in March 2011, when
Saab was briefly owned by the Dutch company Spyker Cars, The relates.

It was eventually bought by National Electric Vehicle Sweden
(Nevs), a Chinese-owned company after hundreds of staff lost
their jobs, The relays.

The car maker, which is based in west Sweden, has struggled to
resolve serious financial difficulties by attracting new
investors since the takeover, The states.

                     About Saab Automobile

Saab Automobile AB is a Swedish car manufacturer owned by Dutch
automobile manufacturer Swedish Automobile NV, formerly Spyker
Cars NV.  Saab halted production in March 2011 when it ran out of
cash to pay its component providers.  On Dec. 19, 2011, Saab
Automobile AB, Saab Automobile Tools AB and Saab Powertain AB
filed for bankruptcy after running out of cash.

Some of Saab's assets were sold to National Electric Vehicle
Sweden AB, a Chinese-Japanese backed start-up that plans to make
an electric car using Saab Automobile's former factory, tools and

On Jan. 30, 2012, more than 40 U.S.-based Saab dealerships filed
an involuntary Chapter 11 petition for Saab Cars North America,
Inc. (Bankr. D. Del. Case No. 12-10344).  The petitioners,
represented by Wilk Auslander LLP, assert claims totaling US$1.2
million on account of "unpaid warranty and incentive
reimbursement and related obligations" or "parts and warranty
reimbursement."  Leonard A. Bellavia, Esq., at Bellavia Gentile &
Associates, in New York, signed the Chapter 11 petition on behalf
of the dealers.

The dealers want the vehicle inventory and the parts business to
be sold, free of liens from Ally Financial Inc. and Caterpillar
Inc., and "to have an appropriate forum to address the claims of
the dealers," Leonard A. Bellavia said in an e-mail to Bloomberg

Saab Cars N.A. is the U.S. sales and distribution unit of Swedish
car maker Saab Automobile AB.  Saab Cars N.A. named in December
an outside administrator, McTevia & Associates, to run the
company as part of a plan to avoid immediate liquidation
following its parent company's bankruptcy filing.

On Feb. 24, 2012, the Court granted Saab Cars NA relief under
Chapter 11 of the Bankruptcy Code.

Donlin, Recano & Company, Inc., was retained as claims and
noticing agent to Saab Cars NA in the Chapter 11 case.

On March 9, 2012, the U.S. Trustee formed an official Committee
of Unsecured Creditors and appointed these members: Peter Mueller
Inc., IFS Vehicle Distributors, Countryside Volkwagen, Saab of
North Olmstead, Saab of Bedford, Whitcomb Motors Inc., and
Delaware Motor Sales, Inc.  The Committee tapped Wilk Auslander
LLP as general bankruptcy counsel, and Polsinelli Shughart as its
Delaware counsel.

The Troubled Company Reporter, on July 18, 2013, reported that
the U.S. arm of Saab Automobile AB won approval of its Chapter 11
liquidation plan, marking the end of the road for Swedish auto
maker's bankruptcy proceedings.

U N I T E D   K I N G D O M

FERGUSON MARINE: Named Preferred Bidder for GBP97MM Contract
Edd Gent at E&T reports that Ferguson Marine Engineering Ltd.,
the Scottish shipyard that went bust a year ago, has been named
preferred bidder for a GBP97 million contract to build new
ferries after being saved by a local entrepreneur.

According to E&T, the Ferguson shipyard will build two 100m
ferries built at its base in Port Glasgow, the largest new
ferries on the Clyde since 2001, which can accommodate 127 cars
or 16 HGVs or a combination of both and up to 1,000 passengers.

The deal could secure more than 150 jobs at FMEL, which was taken
over by Scottish billionaire and former independence supporter
Jim McColl, who has said he plans to invest up to GBP65 million
in the business, E&T discloses.

The design and tendering of the ferries have been overseen by
Caledonian Maritime Assets Limited and CalMac Ferries, both
wholly owned by the Scottish Government, and the SNP said the
contract is "just reward" for Mr. McColl's investment Mr. McColl
and should act as a springboard for further contracts, E&T

Cash flow problems at the shipyard, which dates back to 1902 and
is the last commercial shipbuilder on the River Clyde, saw it go
into administration last August with the loss of 70 jobs,
Mr. McColl's company Clyde Blowers Capital fought off four other
bids to take control of the business, E&T recounts.

FINDUS PLEDGECO: Fitch Puts 'B-' IDR on Rating Watch Evolving
Fitch Ratings has placed Findus Pledgeco S.a.r.l's (Findus) 'B-'
Long-term Issuer Default Rating (IDR) on Rating Watch Evolving
(RWE). At the same time, the 'B+'/'RR2' rating on Findus BondCo
S.A.'s senior secured notes have also been placed on RWE.

In addition, Findus PIK S.C.A. (holdco)'s IDR of 'CCC' IDR and
its EUR200 million 8.25%/9% senior PIK notes at 'CC'/'RR6' have
been placed on RWE.

The RWE reflects the range of possible outcomes of the announced
option agreement under which Nomad Foods Limited (Nomad) will
acquire Findus' continental European business for GBP500 million.
The financial structure of the transaction is unclear at this
stage, given the uncertainty on the application of the sale
proceeds. It is currently unknown whether all or part of the
proceeds will be used to refinance existing senior secured debt
at the Findus Pledgeco restricted group level totaling GBP367
million as at June 27, 2015 (3Q15) and whether the GBP148.7
million PIK notes at holdco level would be refinanced into the
restricted group level.

The transaction will leave Findus with a smaller UK-only business
in a challenging trading environment. If the transaction is
completed without leaving the remaining UK business highly
leveraged and is accompanied by a mildly improved financial
profile the IDR may be affirmed.


Pending Transaction

Nomad has entered into a binding offer through an option
agreement to acquire Findus' continental European business in
Sweden, Norway, Finland, Denmark, France, Spain and Belgium.
Nomad will pay GBP400 million in cash and GBP100 million in
shares. The transaction is expected to be completed in 4Q15,
subject to regulatory approvals. Findus will be left with an UK-
only business with sales of GBP590.5 million and EBITDA of
GBP38.8 million in 2014, around half the size of the business

Rating Affirmation Most Likely

Fitch assumes the most likely scenario is for Findus to repay
most or all of its debt at the Findus restricted group level and
refinance the PIK notes as senior debt at the restricted group
level. This level of debt, combined with a smaller funds from
operations (FFO) generation from an UK-only business could result
in a FFO adjusted gross leverage of 5.5x-6x. Such a leverage
profile, combined with a strong UK business profile with leading
market shares but constrained by high customer concentration,
should continue to support a 'B-' IDR.

Limited Upgrade Potential

If the transaction is completed and most of the sales proceeds
are used to repay most of the existing senior secured debt at the
restricted group level this could result in an upgrade of
Findus's IDR by one notch on the basis of potentially low
financial leverage at Findus restricted group level.

An upgrade is also subject to the underlying performance and
growth prospects of the remaining UK business (particularly given
its recent loss of the Sainsbury's chilled salmon contract)
provided the PIK notes remain at holdco level and retain their
equity-like characteristics or do not constrain Findus's
financial flexibility if holdco elects to pay cash interest.

Limited Downgrade Risk

If however, the transaction completes with only partial or no
meaningful debt reduction at Findus restricted group level,
Findus' weakened financial and business profile stemming from the
lack of geographical diversification and smaller size could
result in a downgrade. Although possible, this scenario is
unlikely given Findus' ambition to retain a clear leadership
position in the UK, especially in a growing chilled market. High
leverage would hinder the group's ambition and growth prospects.

The RWE will be resolved once the financial structure of Findus
is made known post transaction with details on the use of the
sale proceeds.


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

-- Completion of the disposal of Findus' continental European
    business no later than January 2016

-- All or part of the sales proceeds to be used to refinance
    existing senior secured debt at Findus restricted group

-- All or part of the PIK notes to be refinanced into the
    restricted group level


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

-- The remaining UK business undermined by high execution risks
    and by highly volatile or constantly negative free cash flow

-- FFO adjusted gross leverage at or above 6x

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

-- The remaining UK business showing signs of sustainability
    with moderate execution risks and neutral to positive FCF

-- FFO adjusted gross leverage at or below 4x

GODFREYS: In Administration, Cuts 24 Jobs
----------------------------------------- reports that 24 jobs have been lost as administrators
work to sell the struggling Lowestoft store Godfreys.

Administrators Price Bailey LLP say they've managed to save 15
jobs and a clearance sale has helped to raise money, according to

Now the administrators are in talks with a number of companies
interested in buying the business, the report notes.

"We have been talking to potentially interested parties in the
business and others who are looking at the building in Suffolk
Road, Lowestoft.  Unfortunately it has been necessary to make 24
members of staff redundant while 15 remain, but we wish to point
out that some of those made redundant may return to work if we
find a purchaser for some or all of the business," the report
quoted Joint Administrator Stuart Morton as saying.

Price Bailey said they hope the business will be sold within two
weeks, the report adds.

SARCON (NO. 177): In Administration, Owes GBP7.5 Million
BBC News reports that the company that developed the James Clow
apartments close to Belfast docks has been put into

Bank of Ireland appointed the administrator to Sarcon (No. 177)
Ltd, a firm controlled by the Cookstown builder Desmond Nugent.
The apartments were completed in 2009 and the administrators
report shows that 54 out of 135 have been sold, with the other 81
retained by the company, according to BBC News.

Sarcon (No. 177) owes the bank almost GBP7.5 million.

It is not yet clear how much of that it will get back, BBC News

Earlier this year, a group of up to 40 people who had agreed to
buy apartments in the development won a case which meant they did
not have to go through with the purchase, the report relays.

It is not clear if that case prompted the bank's action -- the
administrators report simply states that the firm "failed to meet
the requirements" of the bank, the report discloses.

The report also states that a Belfast law firm is owed an
estimated GBP278,000 by Sarcon (No. 177), the report notes.

The bank has also appointed an administrator to a related firm,
Mangan Developments Ltd, the report says.

Its assets are former council offices at the Square in
Hillsborough, County Down and a four-acre site in Templepatrick,
County Antrim, the report discloses.

The bank is owed just over GBP3.4 million by the company, the
report adds.


Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than US$3 per
share in public markets.  At first glance, this list may look
like the definitive compilation of stocks that are ideal to sell
short.  Don't be fooled.  Assets, for example, reported at
historical cost net of depreciation may understate the true value
of a firm's assets.  A company may establish reserves on its
balance sheet for liabilities that may never materialize.  The
prices at which equity securities trade in public market are
determined by more than a balance sheet solvency test.

Each Friday's edition of the TCR includes a review about a book
of interest to troubled company professionals.  All titles are
available at your local bookstore or through  Go to order any title today.


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez,
Joy A. Agravante, Ivy B. Magdadaro, and Peter A. Chapman,

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

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

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

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

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