TCREUR_Public/151106.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Friday, November 6, 2015, Vol. 16, No. 220

                            Headlines

G R E E C E

EUROBANK ERGASIAS: S&P Lowers Counterparty Credit Rating to 'D'
GLITNIR HF: Creditors' Meeting Scheduled for November 20
GLITNIR HF: Composition Meeting Scheduled for November 20
NATIONAL BANK: S&P Lowers Counterparty Credit Rating to 'D'


I R E L A N D

* IRELAND: 129 Companies Declared Insolvent in October


I T A L Y

* ITALY: Retail, Tourism Bankruptcies Up 5.6% in 3rd Qtr. 2015


R U S S I A

MILL RESIDENTIAL: Fails to Attract Investment, Mulls Liquidation
RUSSIAN SALMON: To File for Bankruptcy Following Losses
URALSIB BANK: Kogan Acquires 82% Stake to Avert Bankruptcy


S P A I N

BBVA RMBS 12: DBRS Confirms 'BB(sf)' Rating on Series B Notes
PYMES SANTANDER 3: DBRS Cuts Rating on Series C Notes to D (sf)
PYMES SANTANDER 7: DBRS Discontinues C Rating on Series C Notes


T U R K E Y

GLOBAL LIMAN: Fitch Affirms 'BB-' Rating on Sr. Unsecured Notes


U N I T E D   K I N G D O M

LOWELL GROUP: S&P Affirms Then Withdraws 'B+' CCR
* UK: Implements Package of Reforms for "Pre-Pack" Sale


X X X X X X X X

* Bank Rating Changes Return to Lower Levels in 3Q15, Fitch Says
* Liquidity Risk Key Concern for Credit Mutual Funds, Fitch Says


                            *********



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G R E E C E
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EUROBANK ERGASIAS: S&P Lowers Counterparty Credit Rating to 'D'
---------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
counterparty credit rating on Greece-based Eurobank Ergasias S.A.
to 'D' from 'SD'.

S&P also lowered its issue ratings on the bank's senior unsecured
debt to 'D' from 'CCC-' and its subordinated debt ratings to 'D'
from 'C'.

The downgrades follow Eurobank's launch, on Nov. 4, of a tender
offer to exchange securities from holders of its Tier 1 (T1)
debt, Tier 2 debt, and senior debt instruments with equity.  This
constitutes a "distressed exchange" under S&P's criteria because
it implies that investors will receive less value than the
promise of the original securities.  This is because the issuer
offers to exchange the securities for an instrument of lower
ranking in the issuer's capital structure.  Additionally, S&P
thinks the offer is not purely opportunistic, according to its
criteria, given the financial position of the bank.

Therefore, following the launch of the offer, and taking into
account the capital controls which are still in place in Greece,
S&P considers that Eurobank is in default on most of its on-
balance-sheet financial obligations, according to S&P's
methodology.  Combined, the securities subject to the offer
amount to approximately EUR877.5 million.

The offer also includes these rated instruments:

   -- EUR294.8 million of senior unsecured instruments (ISIN
      XS1081588086);

   -- EUR35.0 million of senior unsecured instruments (ISIN
      XS0311550882);

   -- EUR6.2 million of senior unsecured instruments (ISIN
      XS0250255121);

   -- EUR12.6 million of senior unsecured instruments (ISIN
      XS0295043854);

   -- EUR22.1 million of senior unsecured instruments (ISIN
      XS0256198119);

   -- EUR18.0 million of senior unsecured instruments (ISIN
      XS0277353800);

   -- EUR40.9 million of senior unsecured instruments (ISIN
      XS0248405812);

   -- EUR31.0 million of senior unsecured instruments (ISIN
      XS0215337857);

   -- EUR33.0 million of senior unsecured instruments (ISIN
      XS0230457292); and

   -- EUR266.8 million of outstanding of Tier 2 notes (ISIN
      XS0302804744).

The offer is being conducted in two phases.  First, on Nov. 4,
2015, the bank offered to exchange the securities with cash to be
deposited in a special account for the bank's share capital
increase.  S&P understands the offer will expire on Nov. 11,
2015. In the second phase, which is likely to occur on about Nov.
22, 2015, special deposit holders will receive new shares issued
by the bank.

Eurobank is offering 100% of the nominal value for senior notes,
80% for the subordinated debt, and 50% for outstanding preferred
securities.


GLITNIR HF: Creditors' Meeting Scheduled for November 20
--------------------------------------------------------
An open creditors' meeting in the winding-up proceedings of
Glitnir hf., ID No. 550500-3530, will be held at the Silfurberg,
Harpa Conference Centre, Austurbakki 2, 101 Reykjavik on Friday,
November 20, 2015 at 9:30 a.m.

Creditors' attention is brought to the fact that in addition to
the normal business of an open creditors' meeting the following
items will be on the meeting agenda:

1. Revised Stability Contribution and consequential amendments
2. Release of liability (including for government parties)
3. Vote on resolution regarding Revised Stability Contribution
   and consequential amendments
4. Vote on resolution regarding release of liability (including
   for government parties)

Creditors that are entitled to attend the meeting are those who
have lodged a claim against Glitnir hf. that has not been finally
rejected, and creditors that have lawfully gained interests in
such lodged claims by way of transfer.  Meeting material will be
made available on Glitnir's secured website, www.glitnir.info

                      About Glitnir Banki

Headquartered in Reykjavik, Iceland, Glitnir banki hf --
http://www.glitnir.is/-- offers an array of financial services
to corporation, financial institutions, investors and
individuals.

Judge Stuart Bernstein of the U.S. Bankruptcy Court for the
Southern District Court of New York granted Glitnir permission to
enter into a proceeding under Chapter 15 of the U.S. bankruptcy
code on January 6, 2008.


GLITNIR HF: Composition Meeting Scheduled for November 20
---------------------------------------------------------
Pursuant to Article 151 of the Act No. 21/1991 on Bankruptcy etc.
(as amended), a meeting to consider a composition proposal by
Glitnir hf., with registered number 550500-3530 to its
composition creditors pursuant to Chapter XXI of the Act No.
21/1991 on Bankruptcy (as amended) and Article 103a of Act No.
161/2002 on Financial Undertakings (as amended) will be held at
the Silfurberg, Harpa Conference Centre, Austurbakki 2, 101
Reykjavik on Friday, November 20, 2015 at 11:00 a.m.

All creditors who have duly filed their claims, and whose claims
have not been finally rejected, are entitled to attend the
Composition Meeting.  However, only Composition Creditors who do
not hold Contingent Claims and who are not Related Parties in
accordance with Act No. 21/1991 on Bankruptcy etc., are entitled
to vote on the Composition Proposal.

The Composition Proposal, as well as a list of Composition
Creditors, and their respective voting rights, will be published
on Glitnir's website at www.glitnir.info

These can also be inspected at Glitnir's office at Soltun 26, 105
Reykjavik, Iceland for two weeks prior to the Composition
Meeting.

                  About Glitnir Banki

Headquartered in Reykjavik, Iceland, Glitnir banki hf --
http://www.glitnir.is/-- offers an array of financial services
to corporation, financial institutions, investors and
individuals.

Judge Stuart Bernstein of the U.S. Bankruptcy Court for the
Southern District Court of New York granted Glitnir permission to
enter into a proceeding under Chapter 15 of the U.S. bankruptcy
code on January 6, 2008.


NATIONAL BANK: S&P Lowers Counterparty Credit Rating to 'D'
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
term counterparty credit rating on National Bank of Greece S.A.
to 'D' from 'SD'.

S&P also lowered its issue ratings on the bank's senior unsecured
debt to 'D' from 'CCC-' and its subordinated debt ratings to 'D'
from 'C'.

The downgrades follow NBG's launch on Nov. 2 of a tender offer to
exchange securities from holders of its Tier 1 (T1) debt, Tier 2
debt, and senior debt instruments with equity.  This constitutes
a "distressed exchange" under S&P's criteria because it implies
that investors will receive less value than the promise of the
original securities.  This is because the issuer offers to
exchange the securities for an instrument of lower ranking in the
issuer's capital structure.  Additionally, S&P thinks the offer
is not purely opportunistic, according to its criteria, given the
financial position of the bank.

Therefore, following the launch of the offer, and taking into
account the capital controls which are still in place in Greece,
S&P considers that NBG is in default on most of its on-balance-
sheet financial obligations, according to S&P's methodology.
Combined, the securities subject to the offer amount to
approximately EUR802.5 million.

The offer also includes this rated instrument:

   -- EUR18.3 million of outstanding of Tier 2 notes (ISIN
      XS0527011554).

The offer is being conducted in two phases.  First, on Nov. 2,
2015, the bank offered to exchange the securities with cash to be
deposited in a special account for the bank's share capital
increase.  S&P understands the offer will expire on Nov. 11,
2015. In the second phase, special deposit holders will receive
new shares issued by the bank.

NBG is offering 100% of the nominal value for senior notes, 75%
for the subordinated debt, and 30% for outstanding preferred
securities.



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I R E L A N D
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* IRELAND: 129 Companies Declared Insolvent in October
------------------------------------------------------
Business World reports that the latest figures from Vision-
Net.ie, show that 129 Irish companies were declared insolvent
last month, a figure down 12% year-on-year.

Dublin was the most insolvent county, accounting for 57% of all
insolvencies in Ireland; though this figure is down 19% on the
same period last year, Business World notes.

According to Business World, accounting for a quarter of all
insolvencies, the finance industry was the most insolvent last
month, rising by 250% year-on-year, from 10 to 35.

Professional services insolvencies declined by 59% from 41 to 17,
while real estate insolvencies dropped dramatically by 89%, from
35 to 4, Business World discloses.



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I T A L Y
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* ITALY: Retail, Tourism Bankruptcies Up 5.6% in 3rd Qtr. 2015
--------------------------------------------------------------
ANSA reports that the retailers' association Confeserecenti on
Nov. 2 said bankruptcies of Italian retail stores and tourist
businesses in the third quarter of this year were the highest
since 2009.

According to ANSA, as many as 530 retail and tourism firms
formally declared bankruptcy from July to September, an increase
of 5.6% on the 502 failures during the same period last year and
an increase of as much as 123% compared to the same period in
2009.

On average as many as seven shops or tourist companies filed for
bankruptcy a day in Italy over the first nine months this year,
numbering 1,860 in total, a slight dip on the 1,934 failures in
the first nine months of 2014, ANSA discloses.



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R U S S I A
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MILL RESIDENTIAL: Fails to Attract Investment, Mulls Liquidation
----------------------------------------------------------------
Judith Evans at The Financial Times reports that The Mill
Residential Reit is looking to close down and return cash to
investors less than a year after listing on London's junior
market.

The Mill Residential Reit, which had said it wanted to tap into
the rise of "Generation Rent", is seeking shareholder approval to
de-list from the Alternative Investment Market on Nov. 16 after
failing to attract enough equity investment, the FT relates.

According to the FT, the fund said it may take up to 10 months to
return cash to investors.  Investors who bought at its launch are
set to lose money in the liquidation, which is expected to return
between GBP2.95 million and GBP3.15 million to shareholders, the
FT says.

The fund failed to grow rapidly through further share issuance as
planned, while its net asset value declined as set-up costs and
fees -- including GBP58,000 in fund management fees and
directors' pay, and GBP78,000 for advice on the listing --
exceeded net rental income in its first months, the FT discloses.

At least 75% of shareholders must approve the liquidation for it
to go ahead, the FT notes.

The Mill Residential Reit is the UK's first buy-to-let real
estate investment trust.


RUSSIAN SALMON: To File for Bankruptcy Following Losses
-------------------------------------------------------
Vladimir Kuznetsov at Bloomberg News reports that Baltic Coast
CJSC and Russian Salmon PJSC plan to file for bankruptcy.

According to Bloomberg, Baltic Coast development director Anna
Sheveleva, as cited by Vedomosti, said Russian Salmon losses from
foreign currency loans and death of fish exceed RUR1.5 billion.

Vedomosti said the bankruptcy filing is aimed at restoring the
company's financial health not liquidating it, Bloomberg notes.


URALSIB BANK: Kogan Acquires 82% Stake to Avert Bankruptcy
----------------------------------------------------------
Alexander Winning and Oksana Kobzeva at Reuters report that
Russian businessman Vladimir Kogan has acquired 82% of Uralsib
Bank's shares as part of a central bank plan to avert bankruptcy
at the top-30 Russian lender.

According to Reuters, the state agency said the Deposit Insurance
Agency (DIA) will also give Uralsib loans for RUR14 billion
(US$224 million) for six years and RUR67 billion (US$1 billion)
for 10 years to help improve its financial position.

The central bank said it will continue its activity as now,
including fulfilling its obligations to its clients, Reuters
relates.

Mr. Kogan is the largest shareholder in the Neftegazindustriya
firm, which owns the Afipsky oil refinery, and Russian media
reported on Tuesday he was in line to buy a controlling stake in
Uralsib, Reuters discloses.

Uralsib is Russia's 26th largest bank by assets, according to an
Interfax ranking.



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


BBVA RMBS 12: DBRS Confirms 'BB(sf)' Rating on Series B Notes
-------------------------------------------------------------
DBRS Ratings Limited (DBRS) confirmed the ratings on the
following bonds issued by BBVA RMBS 12 FTA (the Issuer):

-- Series A Notes at A (low) (sf)
-- Series B Notes at BB (sf)

The confirmation of the ratings on the Series A and Series B
Notes is based on the following analytical considerations as
described more fully below:

-- Portfolio performance, in terms of delinquencies and
    defaults, as of July 2015.
-- Updated portfolio default rate, loss given default and
    expected loss assumptions for the remaining collateral pool.
-- Current available credit enhancement to the Series A and
    Series B Notes to cover the expected losses at the A (low)
    (sf) and BB (sf) rating levels, respectively.

BBVA RMBS 12 FTA is a securitization of Spanish prime residential
mortgages originated and serviced by Banco Bilbao Vizcaya
Argentaria, S.A. (BBVA). The transaction closed in December 2013.

As of July 2015, two- to three-month arrears are at 0.38%, up
slightly from 0.22% in July 2014. The 90+ delinquency ratio was
at 0.36%. The current cumulative default ratio is low at 0.09%.

As of July 2015, credit enhancement to the Series A Notes was
23.81%, up from 22.59% in July 2014. Credit enhancement to the
Series A Notes consists of subordination of the Series B Notes
and the Cash Reserve. Credit enhancement to the Series B Notes
was 5.42%, up from 5.13% in July 2014, and is provided solely by
the Cash Reserve.

The transaction benefits from a Cash Reserve that is available to
cover senior fees as well as interest and principal shortfall on
the Series A and Series B Notes. The Cash Reserve is currently at
the target level of EUR 217.50 million and is only permitted to
amortize under certain conditions.

BBVA acts as account bank for this transaction. The DBRS public
rating of BBVA at "A" complies with the Minimum Institution
Rating, given the rating assigned to the Series A Notes, as
described in DBRS's "Legal Criteria for European Structured
Finance Transactions" methodology.


PYMES SANTANDER 3: DBRS Cuts Rating on Series C Notes to D (sf)
---------------------------------------------------------------
DBRS Ratings Limited discontinued its ratings of AAA (sf) and BBB
(sf) on the Series A notes and Series B notes, respectively,
issued by FTA PYMES SANTANDER 3 (the Issuer). DBRS has also
downgraded its rating on the Series C notes to D (sf) from C (sf)
and subsequently discontinued this rating. The transaction is a
cash flow securitization collateralized primarily by a portfolio
of bank loans originated by Banco Santander, SA to Spanish small
and medium-sized enterprises and self-employed individuals.

The rating action reflects:

(1) The payment in full of the Series A notes and Series B notes
    as of October 8, 2015. The remaining balance prior to the
    final repayment of the Series A notes was EUR37,470,901.12
    and the balance of the Series B notes was EUR266,900,000.00.
(2) The failure to pay ultimate interest and principal of the
    Series C notes. After repayment of the Series A notes and
    Series B notes, the remaining proceeds accounted for only
    94.97% (EUR 298,218,121.73) of the outstanding balance
    (EUR314,000,000.00) of the Series C notes.

A final rating of the Series C notes was initially assigned on
July 19, 2012.

Notes:
All figures are in euros unless otherwise noted.

The principal methodology applicable is Rating CLOs Backed by
Loans to European Small and Medium Sized Enterprises (SMEs).

The rating actions derive directly from an acknowledgement of
fact. In DBRS's opinion, a Discontinued rating action does not
require the application of the entire principal methodology.

The sources of information used for these ratings includes
information provided by Santander de Titulizacion SGFT, S.A.

DBRS does not rely upon third-party due diligence in order to
conduct its analysis. DBRS was not supplied with third-party
assessments; however, this did not impact the rating analysis.

DBRS considers the information made available to it for the
purposes of providing these ratings to have been of satisfactory
quality.

DBRS does not audit the information it receives in connection
with the rating process, and it does not and cannot independently
verify that information in every instance.

The previous rating action on this transaction took place on
April 23, 2015, when the rating on the Series A notes was
upgraded to AAA (sf) from AA (sf), the rating of the Series B
notes was upgraded to BBB (sf) from BB (sf), UR-Pos. and the
rating of the Series C notes was confirmed at C (sf).


PYMES SANTANDER 7: DBRS Discontinues C Rating on Series C Notes
---------------------------------------------------------------
DBRS Ratings Limited discontinued its ratings on the Series A
Notes, Series B Notes and Series C Notes (collectively, the
Notes) issued by FTA PYMES SANTANDER 7 (the Issuer).

The discontinuation reflects the payment in full of the Notes as
of the last payment date, October 8, 2015.

The remaining balance and the ratings of the Notes before the
payment in full were:

-- EUR11,449,432 Series A Notes at AA (sf).
-- EUR340,000,000 Series B Notes at A (high) (sf).
-- EUR340,000,000 Series C Notes at C (sf).



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T U R K E Y
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GLOBAL LIMAN: Fitch Affirms 'BB-' Rating on Sr. Unsecured Notes
---------------------------------------------------------------
Fitch Ratings has affirmed Global Liman Isletmeleri A. S.'s
(Global Ports Holding, or GPH) USD250 million senior unsecured
notes due 2021 at 'BB-' with a Stable Outlook.

Fitch has reviewed GPH's ratings as part of its regular annual
review schedule.  The affirmation considers GPH's recent
financial performance, which is broadly in line with Fitch's
rating case expectations.

In Sept. 2015, the European Bank for Reconstruction and
Development (EBRD; AAA/Stable) acquired 10.84% of GPH through a
capital increase.  Fitch expects to receive an updated business
plan once it has been approved by GPH's board following this
change in shareholding structure.  Once this is received, the
agency will assess whether an additional interim review of the
rating is necessary.

GPH's 'BB-' rating reflects its structural exposure to two
volatile business segments: the commercial segment (around 57% of
2014 pro forma EBITDA) with significant exposure to the
containerized export of marble from Akdeniz, and the cruise
business (around 43%).  Fitch views the cruise sector to be
relatively sensitive to business cycles.  The rating is also
constrained by the issuer's acquisitive corporate profile and
unsecured bullet debt structure including exposure to refinancing
risk.

Our analysis of GPH focuses on the Turkish port business
(recourse business perimeter) as the Turkish subsidiaries are
designated as guarantors of the rated bond.  Under Fitch's
approach, the subsidiaries funded with non-recourse debt
contribute to the recourse perimeter only through dividend
distributions.

KEY RATING DRIVERS

Volume Risk - Weaker

Commercial volume continues to be predominantly driven by
containerized marble exports to China from GPH's Akdeniz port.
While lower demand has impacted these volumes in 2014 and 1H15,
this has allowed GPH to increase diversification in its
commercial segment to some degree (down from 75% of total
commercial revenues in 1H14 to 66% in 1H15).  The decline in
volumes due to containerized marble has been compensated in part
by increases in other commodity volumes and by price increases.

Cargo and throughput have grown by 0.8% and 10.7%, respectively,
from 2012-2014; cruise passengers have grown by 32.2% over this
period, driven in part by acquisitions.  In 1H15, sluggish
Chinese demand for marble and the weakening EUR/USD in the
European cruise ports impacted USD-denominated revenues and
EBITDA, respectively, for the commercial and cruise segments.
The concentration risk of commercial revenues and exposure to the
more volatile cruise segment suggest a 'weaker' volume
assessment.

Price Risk - Midrange

In both commercial and cruise segments, GPH's Turkish ports
benefit from full flexibility with regards to its pricing policy.
For the Turkish ports within Fitch's recourse perimeter, the
Turkish competition law and authorities only prevent against
'excessive and discriminatory pricing', for which there is no
history of enforcement.  The shipping lines calling at the port
have not contested the tariffs so far.  The management at GPH
typically favors short-term contracts with its customers,
including incentives at times.  The pricing flexibility is
balanced by the lack of long-term visibility and results in a
Midrange assessment.

Infrastructure Development and Renewal - Stronger

None of the Turkish ports within GPH's portfolio has a regulatory
requirement to increase capacity, and all have sufficient
capacity headroom to deliver the expected throughput.  However,
Port of Bar and Port of Lisbon have committed to carry out
upgrade works for an overall amount nearing USD25m as an
undertaking of the respective concession agreements.  These works
will most likely be funded on a non-recourse debt at the
subsidiary level.

Debt Structure- Weaker

Rated debt consists of USD250 million senior unsecured corporate-
style debt issued by GPH.  The debt matures in 2021, which
exposes the issuer to refinance risk at maturity, similar to that
of Mersin Port (BBB-/Stable), which also has bullet USD debt but
is a more project finance style structure.  Covenants are weak
and include a gross debt/EBITDA covenant of 5x.  There are no
current limitations on acquisitions but the recent (September
2015) acquisition of approximately 11% of GPH by the EBRD is
expected to result in additional oversight, corporate governance,
due diligence etc. for any new acquisitions.

RATING SENSITIVITIES

A diversification of the business perimeter, leading to greater
stability of the cash flow, which does not compromise GPH's
financial performance, could result in positive rating action.

A material reduction of the business perimeter, diversification
into riskier business areas, or weaker prospects for refinancing
a few years before maturity could result in negative rating
action.

SUMMARY OF CREDIT

GPH is a fairly diversified Turkish port conglomerate with
operations spanning both commercial and cruise activities.  The
largest contributor in the group is the commercial port in
Antalya, Port Akdeniz, an export-led facility focused on the
shipment of containerized marbles to Asia.  Port Akdeniz benefits
from a virtually captive hinterland with good in-land
connections.



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LOWELL GROUP: S&P Affirms Then Withdraws 'B+' CCR
-------------------------------------------------
Standard & Poor's Ratings Services said that it has affirmed the
'B+' long-term counterparty credit rating on U.K.-based debt
collection agency Lowell Group Ltd. and the 'B+/B' long- and
short-term ratings on Luxembourg-based Garfunkelux Holdco 3 S.A.
S&P subsequently withdrew the ratings on both entities at the
issuers' request.  The outlooks were stable prior to the
withdrawal.

The rating affirmation on Lowell reflects S&P's assessment of its
status as a core entity, under S&P's group rating methodology,
within the wider group consolidating Lowell and Germany-based
debt collection agency GKFL Financial Services under intermediate
holding company Garfunkelux Holdco 2 S.A.

The affirmation highlights S&P's expectations that Lowell will be
wholly integrated with the rest of the group through its
centralized funding, and that Lowell's activities will make up
around 60%-65% of the group's revenues on an ongoing basis.  The
withdrawal follows the redemption of Lowell's senior secured
notes on Oct. 15, 2015.

The rating affirmation on intermediate holding company
Garfunkelux Holdco 3 S.A. is in line with S&P's rating on
Garfunkelux Holdco 2 S.A.

The withdrawal follows the new corporate structure of the wider
group, put in place following the acquisition and subsequent
merger of Lowell Group and GFKL Financial Services by funds
backed by U.S. private equity firm Permira.  Under the new
structure, intermediate holding company Garfunkelux Holdco 2 S.A.
consolidates Garfunkelux Holdco 3 S.A., special-purpose entities
Garfunkel Holding GmbH and Simon Bidco Ltd., and primary
operating companies GFKL Financial Services AG and Lowell Group
Ltd.

The ratings on the outstanding GBP565 million and EUR365 million
senior secured notes issued out of Garfunkelux Holdco 3 S.A.
remain 'B+', in line with group credit profile, with a recovery
rating of '3' (in the lower half of the 50%-70% range).  The
senior secured notes are guaranteed on a senior basis by
Garfunkelux Holdco 2 S.A. and various subsidiaries of the wider
group.


* UK: Implements Package of Reforms for "Pre-Pack" Sale
-------------------------------------------------------
Creditman on Nov. 2 disclosed that directors, shareholders and
others connected with an insolvent company can now have their
acquisition of its business through a "pre-pack" sale reviewed by
an independent "pool" of experts -- in a move to improve
transparency in UK business rescue.

Pre-packs, which involve the sale of a struggling business being
negotiated before it is put into administration and being
completed by the administrators shortly after their appointment,
are the subject of a package of reforms being launched on Nov. 2.

The reforms follow the recommendations of an independent review
into pre-packs for the government by Teresa Graham CBE in 2014.
The report acknowledged the economic benefits of pre-packs and
highlighted the need for greater transparency for creditors,
employees and directors in the process, particularly when
businesses are sold to so-called "connected parties" -- those who
are already involved with the company.

The reforms, which also include new guidance on marketing
proposed "pre-packed" businesses to third parties to get a better
deal for creditors, are backed by creditor groups, government,
the insolvency profession, and regulators.

They include ACCA, the British Property Federation, the British
Printing Industries Federation, CARB, the Chartered Institute of
Credit Management, ICAEW, ICAS, the Insolvency Practitioners
Association, the Insolvency Service, the Institute of Directors,
and insolvency trade body, R3.

Duncan Grubb, director of Pre-Pack Pool Limited, the body
responsible for the Pool, and former chair of the British
Property Federation's insolvency committee says: "Pre-pack
administrations are an important part of the economy, helping
rescue businesses and jobs.  Business owners and creditors,
however, need to trust and have confidence in the process, which
is why big steps are being taken to improve transparency."

"The reforms strike a balance between transparency and the
discretion needed for business and job rescue.  While the Pool is
voluntary and its opinions are not binding, it will reassure
creditors about the reasonableness of the pre-pack transaction
and its justification in the circumstances.  And with enhanced
guidance for directors on marketing and valuations, creditors can
have more confidence that a pre-pack sale achieves the best deal
for them too.  As a whole, the reforms will further boost
confidence in the UK's internationally-admired insolvency
regime."

Last year some 20,000 businesses went through an insolvency
process, with less than 5% involving a pre-pack.  Around
two-thirds of those pre-packs involve purchasers already
connected to the insolvent company, and it is in these cases that
the additional scrutiny provided by the Pool will be beneficial.
Author of last year's review into pre packs, Teresa Graham CBE,
says: "I believe the changes to SIP16, and the added confidence
that creditors will gain from the independent scrutiny by
experienced business people of connected party pre-pack sales,
will transform trust in pre-pack insolvency as a form of business
rescue."

"I am delighted that the government, insolvency profession and
creditors have delivered these reforms, and I am hopeful that
those contemplating a connected pre-pack will make full use of
the voluntary elements."

The Pool is open to directors and other ‘connected parties'
hoping to purchase a company out of administration through a pre-
pack sale.

Application to the Pre-Pack Pool is voluntary and connected
parties will be made aware of the Pool by an insolvency
practitioner.  The pool is made up of 20 independent senior
business experts who will deliver a response within 48 hours.

The Pool's response to applications will be made available to
creditors.



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


* Bank Rating Changes Return to Lower Levels in 3Q15, Fitch Says
----------------------------------------------------------------
Fitch Ratings says in a new report that the number of bank rating
changes returned to more average levels in 3Q15, after
significant downgrades in 2Q15 driven mainly by support
revisions.  Changes were mainly driven by rating actions on
banks' Viability Ratings (VRs) in developed markets (DM) and to a
lesser extent in emerging markets (EM).  Europe continues to make
up most rating changes and all seven VR downgrades in DM were in
Europe.

Reduced support expectations factored into DM ratings in 2Q15
mean that VRs now drive even more of DM ratings.  State support
expectations remain more important in EM bank ratings, where VRs
drive less than 60% of Long-term Issuer Default Ratings (IDR).
Fitch does not expect a material change in support propensity in
the medium term for EM or DM banks.

Sovereign credit profiles had limited effect on bank ratings in
3Q15.  However, persistently low oil prices and a deterioration
in Oman's fiscal position contributed to the downgrades of five
Omani banks' Long-Term IDRs, from weaker expected ability of the
sovereign to support the banks.  The revision of the Outlook on
Saudi Arabia's sovereign rating to Negative from Stable was
mirrored in four Saudi banks' Outlooks.

Multi-notch rating changes were limited to Ukrainian and Andorran
banks.  Two Andorran banks were downgraded by three notches,
while another was downgraded by two notches, on reassessment of
the operating environment.  In Ukraine, the completion of
external debt restructurings was the key driver behind upgrades
of two banks' ratings to 'CCC' from RD.


* Liquidity Risk Key Concern for Credit Mutual Funds, Fitch Says
----------------------------------------------------------------
Fitch Ratings says it is unclear whether asset managers' greater
focus on liquidity management techniques would be enough to match
redemption demands in the event of severe market stress, as
liquidity has declined in the fixed income markets, with central
banks rather than banks and broker-dealers now providing a
liquidity buffer.

Liquidity risk was a key topic at Fitch's "The Changing Landscape
of European Credit Markets" events in London and Paris in late
October.  Over 80% of delegates viewed it as a systemic issue
needing an industry wide solution, given the majority of credit
funds continue to offer investors the ability to redeem their
fund holdings daily.

As an example, 96% of UCITS corporate credit funds provide
liquidity on a daily basis as of Sept. 2015, with settlement
typically one day after the redemption request.  This is despite
the fact that UCITS rules provide for a minimum redemption
frequency of twice monthly and allow for settlement up to 10 days
after the redemption request has been received.

The potential commercial consequences through fund outflows of
being a 'first mover' away from daily liquidity are likely to
stymie fund provider appetite for adjusting fund liquidity terms.
Instead, additional regulatory scrutiny of liquidity risk
management may instead be a driver for change.  In the US, the
SEC recently proposed new liquidity management requirements for
retail mutual funds.

Outflows from UCITS corporate credit funds have not affected all
fund segments or been precipitous as yet.  Total assets have
remained flat since end-December 2014 (in EUR terms), according
to Lipper data.  Outflows have been strongest in emerging market
corporate credit funds, while European high yield funds continue
to see inflows.

"We see some evidence of fund flows following returns.  In the US
high yield fund sector, outflows followed weak performance in
1H11, 2Q13, 3Q14 and this trend has repeated itself since the
middle of this year.  The performance of fixed income fund
categories year to end-October has been mixed and volatile, as
USD and euro corporate credit markets diverge and a negative
emerging market sentiment weighs on developed markets.  For
example, global investment grade funds lost 4.8% (in USD terms)
while European High Yield funds gained 2.2% (in EUR terms),"
Fitch said.

Across the universe of funds Fitch rates it sees a greater focus
on liquidity management techniques, in response to market
conditions characterized by more frequent, episodic bouts of
volatility, as observed in Bund pricing for example, in periods
of parched or absent liquidity.

On the liability side, liquidity risk management tools may
include position sizing and diversification rules limiting, for
example, the maximum percentage ownership of a given security, or
the maintenance of specific cash balances.  Fund managers may
also actively use derivatives (such as total return swaps) as a
liquidity risk management tool, although the active usage of
derivatives can change the profile of a fund and, more
fundamentally, any downside protection achieved through a
derivative-based strategy may limit upside potential.  Lastly,
fund managers are paying closer attention to trade execution and
cost.

On the asset sides, fund investors will typically limit their
maximum holding in a fund to 10% or less of its total assets, a
rule which fund providers will also typically apply.


                            *********

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
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
202-362-8552.


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