TCREUR_Public/160205.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, February 5, 2016, Vol. 17, No. 025


                            Headlines


F R A N C E

LABEYRIE FINE: Fitch Assigns B+ Rating to EUR355MM Sr. Sec. Notes
PAPREC HOLDING: S&P Raises Rating on Credit Facility to 'BB'


G E R M A N Y

GLOBAL PVQ: Provides Update on Insolvency Proceedings


I T A L Y

BLUE PANORAMA: March 10 Deadline Set for Submission of Offers
MANUTENCOOP FACILITY: S&P Maintains 'B' CCR on CreditWatch Neg.


K A Z A K H S T A N

ALLIANCE POLIS: Fitch Affirms Then Withdraws 'B' IFS Rating


N E T H E R L A N D S

BOYNE VALLEY: S&P Raises Rating on Class E Notes to BB+
HALCYON STRUCTURED 2007-1: S&P Raises Rating on Cl. E Notes to BB
LINCOLN FINANCING: S&P Assigns 'BB+' ICR, Outlook Stable
LINCOLN FINANCING: Fitch Assigns BB- IDR, Outlook Stable
QUEEN STREET I: S&P Raises Rating on Class E Notes to 'BB+'

SMILE SECURITISATION 2007: S&P Lowers Rating on Cl. E Notes to D


N O R W A Y

NORSKE SKOGINDUSTRIER: Extends Deadline for Debt Exchange Offer


S P A I N

ABENGOA SA: U.S. Unit's Creditors File Chapter 7 Petition
PROMOTORA DE INFORMACIONES: Reaches Debt Exchange Offer Agreement


T U R K E Y

LEKE JEANS: Applies for Postponement of Bankruptcy Proceedings


U K R A I N E

UKRAINE: Insolvent Banks' Asset Sale to Cover Deposit Fund Needs


U N I T E D   K I N G D O M

WISE 2006-1: Moody's Cuts Rating on GBP30MM Class A Notes to B2


X X X X X X X X

* Liquidity Critical for Small EMEA Oil & Gas Cos., Fitch Says
* BOOK REVIEW: Oil Business in Latin America: The Early Years


                            *********



===========
F R A N C E
===========


LABEYRIE FINE: Fitch Assigns B+ Rating to EUR355MM Sr. Sec. Notes
-----------------------------------------------------------------
Fitch Ratings has assigned Labeyrie Fine Foods SAS's (LFF)
proposed increased amount of EUR355 million 5.625% senior secured
notes (including existing senior secured notes of EUR275 million
and planned tap issue of EUR80 million) expected ratings of
'B+(EXP)'/'RR3'. At the same time, Fitch has affirmed LFF's Long-
term Issuer Default Rating (IDR) at 'B' with a Stable Outlook.

The rating actions follow the announcement of LFF's acquisition
of Pere Olive and King Cuisine, which will be funded through the
EUR80 million planned tap issue.  The affirmation reflects
Fitch's expectation of higher leverage over the rating horizon
due to the group's recent acquisitions.  This is balanced by
reducing but still high, business risk, albeit with a profile
which we forecast to remain resilient.  Fitch expects the
operating and financial impact of the current avian flu outbreak
(and consequent government's measures to eliminate it) to be
overall manageable for LFF.  Profitability and free cash flow
(FCF) generation should consistently remain within Fitch's
guidelines for a 'B' IDR while funds from operations (FFO)
adjusted gross leverage should be back within guidelines by
financial year ending June 2018 (FY18).

Pending completion of the acquisitions, the proceeds of the issue
will be deposited in a separate escrow account.  While in escrow,
the notes will not be guaranteed or secured.  If the acquisition
is not completed prior to June 1, 2016, the notes will be subject
to a special mandatory redemption at 100% of the issue price plus
any accrued and unpaid interest.

The assignment of final ratings is contingent on the completion
of the Pere Olive/King Cuisine acquisition and the receipt of
final documents materially conforming to information already
reviewed.

KEY RATING DRIVERS FOR THE BONDS

Pari Passu Ranking Post Completion

Upon completion of the acquisition, the EUR80 million tap issue
will share the same key terms and conditions as the existing
EUR275 million 5.625% senior secured notes due 2021.  They will
be senior secured obligations of LFF and share the same ranking,
coupon and maturity.  They will also benefit from the same
incurrence-based covenants, security package and guarantees.

Above Average Recoveries

The 'B+(EXP)'/'RR3' senior secured notes' rating indicates above
average expected recoveries in the range of 51%-70%.  This is
despite the recent increase in the revolving credit facility (to
EUR45 million from EUR35 million and assumed fully drawn under a
distressed scenario) and Fitch's assumption of higher average
drawings under the factoring line (which we consider as a super
senior claim despite being non-recourse) reflecting our view of
the group's increased scale following the acquisitions.

Fitch also assumes that the acquired companies' existing debt
will remain in place following the acquisitions.  According to
the intercreditor agreement, the senior secured notes will be
effectively subordinated to debt at Aqualande, Sales Sucres' and
residual debt of Pere Olive and King Cuisine as these
subsidiaries will not become their guarantors.  However, this
amount of prior ranking debt is not significant enough to
materially affect the recovery perspectives of the secured notes.
For the purposes of Fitch's recoveries calculation, it estimates
a post-restructuring EBITDA of approximately EUR62 million and a
going-concern multiple of 6x enterprise value/EBITDA.

KEY RATING DRIVERS

M&A, Rating Headroom

The planned acquisitions of Aqualande's downstream activities,
Pere Olive and King Cuisine combined with the impact of the avian
flu lead Fitch to expect LFF's FFO adjusted gross leverage to
peak in FY16 and FY17 at between 5.5x and 5.8x (FY15: 5.1x).
These levels are outside of Fitch's leverage guideline for LFF's
'B' rating.  Therefore the group retains only limited financial
flexibility for further bolt-on acquisitions, and Fitch assumes
that any further large acquisitions would be at least partly
equity-funded.  Based on these assumptions, Fitch expects LFF's
FFO adjusted gross leverage to decrease below 5.5x in FY18.

No Rating Impact from Avian Flu

Fitch expects the impact of avian flu in France on Labeyrie's key
credit metrics to be mostly temporary and manageable for current
rating as foie gras and other duck products represented only
EUR117 million (13.4% of group sales) in FY15.  Fitch understands
that the disease does not impact the health of the ducks, and
that it is not transmissible from ducks to human beings.
Therefore Fitch believes that the adverse effect on the company's
revenues will be broadly limited to a contraction of volumes
availability proportionate to the duck slaughtering stoppage of
approximately four months imposed by the French government during
2016.  However, the impact on profits could be moderately higher
and Fitch has conservatively assumed a EUR10 million EBITDA hit
spread between FY16 and FY17.  Fitch estimates the impact from
this incident on FFO gross leverage at up to 0.5x in FY17,
leading to a peak in this year of 5.8x.  However, it should come
back within Fitch's leverage guideline for a 'B' IDR by end-FY18
(5.3x).

Successful Acquisition Track Record

The rating and Stable Outlook also reflect LFF's demonstrated
ability at integrating acquisitions, as with Blini and Farne.
Fitch sees little execution risk in the integration of groupe
Aqualande SA's downstream activities (transaction to be completed
by end-April 2016), King Cuisine and Pere Olive.  The three
companies are positioned in fast-growing markets and enjoy profit
margins that are higher than the existing LFF group.  Fitch does
not expect any meaningful negative impact in case of integration
failure for the lower-margin Sales Sucres (acquired in July 2015)
due to its small size.

Scale and Diversification

Fitch views positively management's acquisition strategy as it
helps diversify the group's operations by product ranges, raw
materials and geography, and diminish sales seasonality.  In
particular, we expect the local footprint acquired in Belgium
(Pere Olive) and the Netherlands (King Cuisine) to support
organic growth and help reduce reliance on core France and UK.
Furthermore, these two businesses enlarge the group's less
seasonal segment "Everyday Delicatessen".  Aqualande should help
diminish the sales and EBITDA seasonality of the Premium
Delicatessen business unit while improving product diversity
(smoked trout as opposed to mainly smoked salmon and foie gras)
and price points as well as organic growth prospects.

Sustained Profitability

Excluding its assumption of a temporary drop down to 8.0%
expected in FY17 due to the avian flu outbreak, Fitch expects
LFF's EBITDA margin to be sustainable at 8.2% in the medium term
(FY15: 8.6%). Continuously high raw material prices for Norwegian
salmon and prawns, combined with unfavorable FX variations and
strong buying power from highly concentrated food retailers
should continue exerting pressure on gross margin.  Furthermore
Fitch expects the group to maintain significant marketing
investments to support volumes and new product ranges expansion.
However, these negative factors are likely to be counterbalanced
by the group's enlarged scale, further industrial efficiencies
(including synergies from acquisitions), and product mix
improvements supported by its strong brand image and demonstrated
innovation capacity.

Seasonality and Leverage

Fitch adjusts LFF's debt -- and therefore FFO gross leverage --
at financial year end to take into account the company's
factoring utilization during the year (for FY15 Fitch applied a
EUR28 million adjustment).  Fitch views the factoring line as a
super-senior claim due to its strategic interest to the group and
its use to fund recurring operations.  At FYE15 the adjustment
increases LFF's FFO gross leverage by 0.4x from 4.7x to 5.1x.
Due to the seasonality of sales, Fitch still expects debt
(including outstanding factoring line) to be higher at the peak
of the season than at FYE.

KEY ASSUMPTIONS

Fitch's key assumptions within the rating case for LFF include:

   -- Around 25% increase in sales in FY16 followed by a drop of
      2.5% in FY17 due to reduced foie gras and other duck
      products availability; mid-single-digit growth thereafter
      driven by both organic growth (close to 2%) and
      acquisitions.
   -- EBITDA margin drop to 8.0% in FY17, stable at 8.2%
      thereafter.
   -- Working capital changes in line with sales development.
   -- Annual capex at 3.3% of sales.
   -- No dividends.
   -- Average annual FCF margin at 1% of sales over FY16-FY18.
   -- EUR118 mil. acquisition spending in FY16, minimal bolt-on
      spending thereafter.

RATING SENSITIVITIES

Positive: future developments that could lead to positive rating
action include:

   -- Strengthened business profile reflected in meaningfully
      lower product seasonality and higher geographic, products
      and customer base diversification.
   -- EBITDA margin trending towards 10% together with higher
      cash flow generation.
   -- Adjusted FFO gross leverage consistently below 4.0x at FYE
      and below 5.0x at end-1HFY (December, including outstanding
      factoring line).

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

   -- EBITDAR margin below 7.5% on a sustained basis.
   -- Neutral to negative FCF margin for two consecutive years.
   -- FFO adjusted gross leverage above 5.5x at FYE and 6.5x at
      end-H1FY (December, including outstanding factoring line).

LIQUIDITY

Following completion of the acquisitions planned for FY16, Fitch
expects LFF's liquidity to remain adequate, supported by positive
FCF generation, the EUR45 million RCF maturing in 2020 and the
EUR80 million factoring facility maturing in 2017.  Furthermore
as the bulk of its debt has a bullet maturity, LFF faces only
minor scheduled debt repayments until 2020.


PAPREC HOLDING: S&P Raises Rating on Credit Facility to 'BB'
------------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised
upward the recovery rating on the super senior revolving credit
facility of France-based waste recycling group Paprec Holding to
'1' from '2'.  As a result, S&P also raised its issue rating on
this instrument by one notch to 'BB' from 'BB-'.  S&P has also
removed the issue rating from "under criteria observation" (UCO)
where S&P placed it on Jan. 20, 2016.

These rating changes are solely due to changes in the ranking of
France's insolvency regime.

S&P's corporate credit rating on Paprec Holding (B+/Stable/--)
remains unchanged, along with S&P's 'B+' issue rating on the
group's senior secured notes and its 'B-' issue rating on its
subordinated notes.



=============
G E R M A N Y
=============


GLOBAL PVQ: Provides Update on Insolvency Proceedings
-----------------------------------------------------
The insolvency administrator of Global PVQ SE, formerly Q-Cells
SE, on Feb. 4, provided an update on the further developments
concerning the insolvency proceedings of the entity after the
creditors' final meeting on August 27, 2015.

The sum set on August 27, 2015, for payments to preferential
creditors has to be reduced by EUR9.2 million due to new
developments.  This is based on the letter issued by the Federal
Ministry of Finance dated November 18, 2015.  This letter
clarifies the temporal application of the principles as set up
by the Federal Court of Finance in its judgment of September 24,
2014.

The regional court of Dessau-Rosslau (Landgericht Dessau-Rosslau)
has dismissed an appeal by a creditor within the legal disputes
regarding an insolvency claim of approximately EUR161 million.
However, the free liquidity, which has been reserved for this
alleged insolvency claim, cannot yet be distributed to the
insolvency creditors because the legal disputes have not been
entirely concluded.

The resulting figures are preliminary and they only indicate a
further preliminary result in the insolvency proceedings.  The
final result of the proceedings and the expected final insolvency
dividend still depend on various factors, which are not yet
certain.

Global PVQ SE engages in the development, manufacture, and
marketing of solar cells, solar modules, and photovoltaic systems
to module manufacturers worldwide.



=========
I T A L Y
=========


BLUE PANORAMA: March 10 Deadline Set for Submission of Offers
-------------------------------------------------------------
Giuseppe Leogrande, The Extraordinary Commissioner of Blue
Panorama Airlines S.p.A., under Extraordinary Administration, in
compliance with the authorization issued by the Ministry of the
Economic Development on January 15, 2016, disclosed that with the
aim of giving a new impulse to the procedure for the sale through
private negotiation of the going concern conducted by the
Company, the deadline for submission of binding purchase offers
has been extended until noon on March 10, 2016.

The binding offers should be delivered by registered letter to
the office of the Notary Public Annamaria Rastello, in Via Sebino
no. 16, Rome, from 9:00 a.m. to 1:00 p.m., and from 4:00 p.m. to
7:00 p.m. on Monday through Thursday and from 9:00 a.m. to 1:00
p.m. on Friday.

Any interested party may ask Studio Legal Pierallini to be
provided with a non-disclosure agreement and copy of the document
summarizing the terms and conditions for the admissibility of the
offers, which are both to be signed for acceptance and then
delivered to Studio Legale Pierallini as condition for the access
to the data room.

Studio Legal Pierallini can be reached at:

          Attn: Avv. Laura Pierallini
                Avv. Gianluigi Ascenzi
          Studio Legale Pierallini
          Viale Liege n. 28
          Rome, Italy
          Telephone: +39 06 8841713
          Fax: +39 06 8840249
          E-mail: l.pierallini@pieralallini.it
                  g.ascenzi@pierallini.it

Any request of clarifications and/or integrations of the
documents included in the data room can be made until
February 26, 2016.

Blue Panorama Airlines S.p.A. is an Italian airline headquartered
in Fiumicino operating scheduled and charter flights from Italy,
especially Rome-Fiumicino and Milan-Malpensa, to various
international destinations.


MANUTENCOOP FACILITY: S&P Maintains 'B' CCR on CreditWatch Neg.
---------------------------------------------------------------
Standard & Poor's Ratings Services maintained its CreditWatch
with negative implications on its 'B' long-term corporate credit
rating on Italy-based facility services provider Manutencoop
Facility Management SpA (MFM).

S&P also maintained its CreditWatch negative on its 'B' issue
rating on MFM's EUR425 million senior secured notes (outstanding
nominal value of EUR300 million).  The recovery rating on these
notes is unchanged at '3' (with recovery prospects in the upper
half of the 50%-70% range).

The CreditWatch follows the Italian Competition Authority's
(ICA's) decision to levy a EUR48.5 million fine for MFM's
infringement of competition rules in the tender arranged by
Consip for the cleaning services of school buildings.  MFM stated
it will appeal to the Italian administrative tribunal (the TAR)
against the merits of ICA's decision and also seek the suspension
of enforcement of the penalty until the appeal process is
completed. While the TAR has no mandatory requirement to decide
on suspension of the enforcement of ICA's decision within a
specified period, S&P understands that such decision could be
made in about 90 days from the date of MFM's appeal application.
Given the material uncertainty about the likely outcome of the
TAR's decision, S&P has not included the payment of a fine in its
base-case assumption.  However, there could be a scenario where
the TAR (overseeing the first appeal) and the Council of State
(second and last appeal) determine not to suspend MFM's
obligation to pay the fine, in which case the company will have
to pay the amount of the penalty before end-April 2016.   S&P
considers this scenario to be less likely, but if this is the
case, S&P believes that MFM would be subject to a liquidity
shortage unless additional new committed sources of funding are
put in place.  In presence of a material liquidity shortfall that
compromises MFM operations, S&P could lower its ratings by more
than one notch.

S&P's base case assumes:

   -- Italy's GDP increasing by 1.3% in 2016.

   -- That MFM's revenue will remain flat or modestly declining
      by 1%-2% in the financial-year ending Dec. 31, 2016 (FY16)
      due to competitive pricing pressure and the company winning
      fewer new contracts.

   -- That the group will maintain EBITDA margins of about 8.5%-
      9.0% as the impact of the pricing pressure is offset by
      efficiency measures and a reduction in nonrecurring costs.
      S&P understands that management's forecast for revenue and
      EBITDA are higher than S&P's base case.

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

   -- Adjusted ratio of debt to EBITDA of about 5.5x-6.0x for
      FY16.

   -- S&P's adjusted debt in our leverage metrics also
      consolidate about EUR172 million related to the deferred
      compensation agreement and the put options that MFM's main
      shareholder, Manutencoop Societa Cooperativa (with a 79%
      stake), has written in favor of private equity minority
      shareholders. Excluding this adjustment, S&P calculates the
      leverage to be about 4.0x.

S&P expects to resolve the CreditWatch placement within next 90
days after reviewing management's ability to put in place
additional new committed long-term financing facilities and
incorporating any impact of the TAR decision to be made within
next 90 days.

S&P would lower the ratings if MFM were unable to restore its
liquidity position due to an absence of a credible plan to
address the situation, thus resulting in a weak liquidity
profile.  S&P could downgrade MFM by more than one notch if S&P
believes that its liquidity shortfall would compromise its normal
course of operations.

S&P could affirm the ratings if MFM is able to put in place new
committed funding plans to meet any potential payment of fines
and performance bonds, or if there is a favorable decision from
TAR cancelling or materially reducing the fine.



===================
K A Z A K H S T A N
===================


ALLIANCE POLIS: Fitch Affirms Then Withdraws 'B' IFS Rating
-----------------------------------------------------------
Fitch Ratings has affirmed Kazakhstan-based JSC IC Alliance
Polis's Insurer Financial Strength rating at 'B' and National IFS
rating at 'BB+ (kaz)'.  The ratings have been removed from Rating
Watch Negative (RWN) and simultaneously withdrawn.  The Outlooks
are Negative.

KEY RATING DRIVERS

Fitch has chosen to withdraw the ratings of Alliance Polis for
commercial reasons.

The Negative Outlook reflects Fitch's expectation that the
transfer of the major part of Alliance Polis's portfolio to a
smaller Kazakh insurer JSC Insurance Company 'Standard' (IC
'Standard') from Feb. 1, 2016, might be exposed to execution
risks and result in a weakening of Alliance Polis's financial
profile. The portfolio transfer follows the intent of Alliance
Polis's shareholder to withdraw from the insurance sector.

According to Kazakh regulation, Alliance Polis would need to
obtain written consent from every policyholder to be able to
transfer each individual policy to IC 'Standard'.  Fitch does not
expect this to complete by February 1, 2016, which raises the
possibility that at least some part of the portfolio-in-force
will remain with Alliance Polis.  The liabilities relating to the
expired workers compensation policies will remain on the balance
sheet of Alliance Polis to be managed in run-off till end-2018.
According to Alliance Polis's assessment, these liabilities
amount to KZT1.7 billion.

Local regulation requires the accepting party, IC 'Standard', to
comply with prudential requirements after the transfer.  The
regulatory approval has not yet been received by IC 'Standard',
while an assessment of the transferable assets, liabilities and
required regulatory capital has yet to be completed.  Both
Alliance Polis and IC 'Standard' had significant buffers in their
regulatory solvency margin at 330% and 252% at end-November 2015,
respectively.  However, Alliance Polis's portfolio may put
pressure on IC 'Standard's regulatory capital since the accepting
party is a smaller company with only KZT2.4 billion of net
written premiums in 11M15, compared with KZT4.8 billion written
by Alliance Polis in the same period.

The commitment of Alliance Polis's shareholder to support the
insurer, is also uncertain, should the liabilities managed in the
run-off mode exceed the assessment made at the transfer.

RATING SENSITIVITIES.  Not applicable.



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


BOYNE VALLEY: S&P Raises Rating on Class E Notes to BB+
-------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
Boyne Valley B.V.'s class C-1, C-2, D, E, and T combination
notes. At the same time, S&P has affirmed its 'AAA (sf)' rating
on the class B notes.

The rating actions follow S&P's credit and cash flow analysis of
the transaction using data from the latest trustee report and the
application of S&P's relevant criteria.

Boyne Valley is a cash flow collateralized loan obligation (CLO)
transaction that securitizes loans to primarily European
speculative-grade corporate firms.  The transaction closed in
December 2005.

According to S&P's analysis, since its April 30, 2015 review, the
rated liabilities have significantly deleveraged, which has
raised the available credit enhancement for all classes of notes.
All of the class A-1 and A-2b notes have now fully redeemed, and
the class B notes have deleveraged by approximately EUR28.4
million. This represents a more than 88% aggregate reduction in
the principal amount outstanding of these classes of notes.

"We factored in the above observations and subjected the capital
structure to our cash flow analysis, based on the methodology and
assumptions outlined in our updated corporate collateralized debt
obligation (CDO) criteria, to determine the break-even default
rate (BDR).  We used the reported portfolio balance that we
considered to be performing, the principal cash balance, the
current weighted-average spread, and the weighted-average
recovery rates that we considered to be appropriate.  We
incorporated various cash flow stress scenarios using various
default patterns, levels, and timings for each liability rating
category, in conjunction with different interest rate stress
scenarios," S&P said.

Upon publishing S&P's updated corporate CDO criteria, it placed
those ratings that could potentially be affected "under criteria
observation".  Following S&P's review of this transaction, its
ratings that could potentially be affected by the criteria are no
longer under criteria observation.

In S&P's opinion, the full redemption of the class A-1 and A2-b
notes -- combined with the significant deleveraging of the class
B notes -- has increased the available credit enhancement for the
class C-1, C-2, D, E, and T combination notes.  S&P's credit and
cash flow analysis indicates that all of these classes of notes
are now able to achieve higher ratings that those currently
assigned.

S&P has therefore raised its ratings on these classes of notes.

The results of S&P's credit and cash flow analysis indicate that
the available credit enhancement for the class B notes is
commensurate with its current 'AAA(sf)' rating.  S&P has
therefore affirmed its 'AAA (sf)' rating on the class B notes.

RATINGS LIST

Boyne Valley B.V.
EUR419 mil secured floating-rate and subordinated notes

                                    Rating        Rating
Class             Identifier        To            From
B                 XS0236596036      AAA (sf)      AAA (sf)
C-1               XS0236597513      AAA (sf)      A+ (sf)
C-2               XS0236598248      AAA (sf)      A+ (sf)
D                 XS0236599212      A+ (sf)       BBB+ (sf)
E                 XS0235842043      BB+ (sf)      B+ (sf)
T comb            XS0236607171      A+ (sf)       BBB+ (sf)


HALCYON STRUCTURED 2007-1: S&P Raises Rating on Cl. E Notes to BB
-----------------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
Halcyon Structured Asset Management European CLO 2007-1 B.V.'s
variable funding notes and class A1, A2, B, C, D, and E notes.

The upgrades follow S&P's analysis of the transaction's
performance and the application of its relevant criteria.

Since S&P's May 28, 2014 review, the variable funding notes and
the class A1 notes have continued to amortize.  Taking into
account the notes' amortization and the evolution of the total
collateral amount, overcollateralization has increased for all
the rated classes of notes since S&P's previous review.

S&P subjected the capital structure to our cash flow analysis to
determine the break-even default rate (BDR) for each class of
notes at each rating level.  The BDRs represent S&P's estimate of
the level of asset defaults that the notes can withstand and
still fully pay interest and principal to the noteholders.

S&P has estimated future defaults in the portfolio in each rating
scenario by applying its updated corporate collateralized debt
obligation (CDO) criteria.

S&P's analysis shows that the available credit enhancement for
the variable funding notes and the class A1, A2, B, C, D, and E
notes is now commensurate with higher ratings than those
previously assigned.  Therefore, S&P has raised its ratings on
these classes of notes.

None of the ratings were capped by the application of S&P's
largest obligor or largest industry tests, two supplemental
stress tests that S&P outlines in its corporate CDO criteria.

Halcyon Structured Asset Management European CLO 2007-1 is a cash
flow collateralized loan obligation (CLO) transaction managed by
Halcyon Loan Investors LP.  A portfolio of loans to U.S. and
European speculative-grade corporates backs the transaction.
Halcyon Structured Asset Management European CLO 2007-1 closed in
May 2007 and its reinvestment period ended in July 2013.

RATINGS LIST

Halcyon Structured Asset Management European CLO 2007-1 B.V.
EUR600 mil senior secured variable funding floating-rate notes

                                   Rating              Rating
Class            Identifier        To                  From
VFN                                AAA (sf)            AA+ (sf)
A1               XS0294601249      AAA (sf)            AA+ (sf)
A2               XS0294601835      AAA (sf)            AA (sf)
B                XS0294602056      AA+ (sf)            A+ (sf)
C                XS0294602213      AA (sf)             BBB+ (sf)
D                XS0294602569      BBB- (sf)           BB+ (sf)
E                XS0294602726      BB (sf)             B- (sf)


LINCOLN FINANCING: S&P Assigns 'BB+' ICR, Outlook Stable
--------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
and short-term counterparty credit ratings on Dutch bank
LeasePlan Corporation N.V. to 'BBB-/A-3' from 'BBB/A-2'.  The
outlook is stable.

At the same time, S&P removed the ratings from CreditWatch, where
it initially placed them with negative implications on July 28,
2015.

S&P also assigned a 'BB+' issuer credit rating to Lincoln
Financing Holdings PTE Ltd. (Singapore), the intermediary
nonoperating holding company of Lincoln Finance Ltd. (Jersey),
issuer of the proposed EUR1.55 billion senior secured notes.  The
outlook is stable.  S&P assigned a 'BB+' rating to the proposed
notes.

The rating actions follow LeasePlan's announcement that
regulators have approved its sale to a consortium of investors,
funded with a mix of shareholder equity and debt.  In S&P's view,
the approved transaction will diminish the creditworthiness of
LeasePlan because it will lead to a marked increase in leverage
at the consolidated group level.

Financial sponsor ownership can lead to further risks related to
financial policy and risk appetite, but S&P has limited the
downgrade to one notch.  S&P believes that LeasePlan will
continue to operate largely as an independent, regulated entity,
through the "Structuurregime."  This piece of legislation
requires separation of the non-executive supervisory board, the
executive management board, and LeasePlan's shareholders.  This
is likely to provide LeasePlan with a reasonable degree of
protection from direct shareholder influence on financial policy.

Under the proposed transaction terms, the consortium of investors
will finance the acquisition of LeasePlan through about
EUR1.9 billion equity, a EUR0.5 billion mandatory exchangeable
facility (MEF) that will convert to equity after three years, and
EUR1.6 billion senior secured notes.  The interest payments on
the proposed senior secured notes, to be issued by Lincoln
Finance Ltd. (Jersey), will depend on the flows of dividends
upstreamed from LeasePlan.

Therefore, in line with S&P's group rating methodology, it now
considers LeasePlan to be part of a wider group and S&P has
determined a group credit profile (GCP) based on the new group
structure. (A GCP is not a rating, but a component of a rating
that represents S&P's opinion of a group's creditworthiness as if
it were a single legal entity.)  LeasePlan is by far the largest
part of the group, contributing close to 100% of the consolidated
group assets.  S&P therefore views it as a core group entity and
equalize the issuer credit rating on LeasePlan with the GCP.

In S&P's view, its projected risk-adjusted capital (RAC) ratio
for LeasePlan (the stand-alone regulated entity) of 12.5%-13.0%
over the next 12-24 months insufficiently captures the risks
present at the consolidated group level.  This is partly because
of the relatively high double leverage at the ultimate holding
company level, which S&P calculates at 180%-190% (a pro forma
calculation, based on the proposed transaction structure, of
investment in subsidiaries divided by holding company
shareholders' equity).  S&P's view of the wider group's
capitalization is also weaker than LeasePlan's RAC ratio on a
consolidated basis.  To reflect these factors, S&P makes a
qualitative adjustment to its risk position assessment, revising
it down to moderate from adequate.  The other factors that
underpin S&P's group credit profile are the same as its
assessment of LeasePlan prior to the transaction.  This results
in a GCP of 'bbb-'.

S&P expects LeasePlan's operating performance to remain solid
over the two-year outlook horizon, even allowing for potentially
less-favorable secondhand auto market conditions.  It's currently
difficult to quantify the potential effect on the residual value
of LeasePlan's fleet, following the recent engine emissions and
fuel consumption issues at Volkswagen, but S&P's base-case
expectation is that any direct financial impact will be
manageable.

S&P's rating on Lincoln Financing Holdings PTE Ltd. (Singapore)
(FinCo) is based on S&P's assessment of it as the nonoperating
holding company (NOHC) of the vehicle issuing the senior secured
notes.  Under S&P's group rating methodology for NOHCs, it
usually assigns an issuer credit rating (ICR) to the NOHC one
notch below the GCP if the latter is 'bbb-' or above, to reflect
the NOHC's reliance on dividends being upstreamed to meet its
obligations. This applies to FinCo.  S&P do not notch down twice
for structural subordination, as it considers that potential
regulatory barriers to cash flows will only exist between
LeasePlan as an operating company and LeasePlan's holding
company, LP Group B.V. (The Netherlands).  S&P do not consider
that there will be further potential barriers to cash flows
beyond LeasePlan Group B.V. to FinCo.

S&P also believes that liquidity at FinCo will be adequate to
service its obligations, as covenants to the senior secured notes
and the MEF restrict dividends to shareholders while the MEF has
not been converted to equity.  The indenture also requires that
interest coverage be maintained at a level of 2.5x.  S&P
therefore expects a noteworthy build-up of excess cash and higher
coverage levels for at least three years, while the MEF is not
converted and LeasePlan is upstreaming dividends to the NOHC.

S&P equalizes the rating on the proposed senior secured notes
with the 'BB+' ICR on FinCo.  The rating is subject to S&P's
review of the notes' final documentation.

The stable outlook reflects S&P's view that, over the next two
years, LeasePlan will maintain its solid operating performance,
strong capitalization, and supportive asset quality profile, and
that new ownership will not result in a more aggressive financial
policy and risk appetite.

S&P could lower the ratings on LeasePlan if S&P sees evidence
that its new ownership is altering the business or financial
strategy of the company; for example, if the new owners further
leveraged the holding structure above LeasePlan in a way
detrimental to its creditworthiness.

A positive rating action is unlikely within the next two years,
in S&P's view.  However, S&P could consider an upgrade if it
believed that the double leverage at the ultimate holding company
was materially diminishing or if S&P expected LeasePlan to
maintain a RAC ratio sustainably above 15%.


LINCOLN FINANCING: Fitch Assigns BB- IDR, Outlook Stable
--------------------------------------------------------
Fitch Ratings has assigned Lincoln Finance Ltd's (LFL) proposed
senior secured notes a 'BB-(EXP)' rating, and their guarantor,
Lincoln Financing Holdings Pte Ltd (LFHPL), a Long-term Issuer
Default Rating of 'BB-(EXP)'.  The Outlook on the expected Long-
term IDR is Stable.

LFHPL and LFL were established as part of the pending acquisition
of LeasePlan Corporation NV (LeasePlan; A-/Rating Watch Negative)
by a consortium of new owners.  LeasePlan is a global leader in
vehicle leasing, and also a licensed bank, regulated by De
Nederlandsche Bank (DNB).

The expected ratings reflect the capital structure anticipated
post-acquisition, incorporating five and seven-year senior
secured issuance by LFL totaling EUR1.55 billion.

Final ratings are contingent upon the receipt of final documents
conforming to information already received.  Failure to issue the
instruments would result in the withdrawal of the expected IDR
and senior secured debt ratings.

KEY RATING DRIVERS

IDR AND SENIOR SECURED DEBT

On conclusion of the acquisition, LeasePlan will represent
LFHPL's only significant asset, and neither LFHPL nor LFL will
have material source of income other than dividends from
LeasePlan. There will be no cross-guarantees of debt between LFL
and LeasePlan, and the ratings reflect the structural
subordination of LFHPL and LFL creditors to those of LeasePlan.
In Fitch's view, debt issued by LFL is sufficiently isolated from
LeasePlan so that failure to service it, all else being equal,
may have limited implications for the creditworthiness of
LeasePlan.  Consequently, the instrument rating is based on the
standalone profile of LFL and the guarantor.

LFHPL will commence its ownership of LeasePlan with an interest
reserve account containing cash equal to a minimum of 2.5 years'
coupon payments on the senior secured notes.  This will ease
LFL's initial debt service pressure.  LFHPL is also covenanted to
maintain at least this same level of cash coverage in the
interest reserve account thereafter.  However, replenishment of
this cash will be dependent both on LeasePlan's ongoing ability
to generate profits, and on DNB approval for their distribution
in dividend form.

Fitch does not expect LeasePlan to adopt a significantly
different strategy under new ownership to that employed at
present.  Its recent results have been strong, with net income in
1H15 of EUR245.7 mil. and a common equity Tier 1 ratio at June
30, 2015, of 17.5%.  Profits have since 2013 been boosted by a
level of gains on used vehicle sales in excess of longer-term
norms, but operating performance has also been sound.  The Rating
Watch Negative on LeasePlan reflects the pending acquisition and
associated debt issuance by LFL.  Fitch views this as potentially
reducing LeasePlan's financial flexibility, by virtue of the
additional servicing requirement within the new parent,
notwithstanding regulatory safeguards in respect of the release
of dividends.

RATING SENSITIVITIES

IDR AND SENIOR SECURED DEBT

Both the IDR and the rating of the notes would be negatively
sensitive to any significant depletion of liquidity within LFHPL
which affected its continuing ability to service its debt
obligations.  This would most likely be prompted by a material
fall in earnings within LeasePlan, which restricted its capacity
to pay dividends.

Positive rating action would be likely to require accumulation of
significant additional cash within LFHPL, accompanied by
expectation of its retention there, as this would reduce the
dependence of ongoing debt service on future LeasePlan dividends.

The ratings could also be sensitive to the addition of new
liabilities or assets within LFHPL, but the impact would depend
on the balance struck between increasing LFHPL's debt service
obligations and diversifying its income away from reliance on
LeasePlan dividends.


QUEEN STREET I: S&P Raises Rating on Class E Notes to 'BB+'
-----------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
Queen Street CLO I B.V.'s class A2, B, C1, C2, D1, D2, and E
notes.  At the same time, S&P has affirmed its rating on the
class A1 notes.

The rating actions follow S&P's analysis of the transaction's
performance and the application of its relevant criteria.

Since S&P's April 9, 2014 review, the class A1 notes have
amortized by EUR221.69 million.

Taking into account the notes' amortization and the evolution of
the total collateral amount, overcollateralization has increased
for all of the rated classes of notes since S&P's previous
review.

S&P has subjected the capital structure to its cash flow analysis
to determine the break-even default rate (BDR) for each class of
notes at each rating level.  The BDRs represent S&P's estimate of
the level of asset defaults that the notes can withstand and
still fully pay interest and principal to the noteholders.

S&P has estimated future defaults in the portfolio in each rating
scenario by applying its updated corporate collateralized debt
obligation (CDO) criteria.

S&P's analysis shows that the available credit enhancement for
the class A2, B, C1, C2, D1, D2, and E notes is now commensurate
with higher ratings than those previously assigned.  Therefore,
S&P has raised its ratings on these classes of notes.

S&P's analysis also indicates that the available credit
enhancement for the class A1 notes is still commensurate with the
currently assigned rating.  Therefore, S&P has affirmed its 'AAA
(sf)' rating on the class A1 notes.

None of the ratings were capped by the application of S&P's
largest obligor or industry test, which are supplemental stress
tests that S&P outlines in its corporate CDO criteria.

Queen Street CLO I is a cash flow collateralized loan obligation
(CLO) transaction managed by Ares Management Ltd.  A portfolio of
loans to U.S. and European speculative-grade corporates backs the
transaction.  Queen Street CLO I closed in January 2007 and its
reinvestment period ended in April 2013.

RATINGS LIST

Queen Street CLO I B.V.
EUR550.14 mil senior secured fixed and floating-rate notes and
subordinated notes

                                    Rating          Rating
Class             Identifier        To              From
A1                74824AAA4         AAA (sf)        AAA (sf)
A2                74824AAB2         AAA (sf)        AA+ (sf)
B                 74824AAC0         AAA (sf)        AA- (sf)
C1                74824AAD8         AA- (sf)        BBB+ (sf)
C2                74824AAE6         AA- (sf)        BBB+ (sf)
D1                74824AAK2         A- (sf)         BB+ (sf)
D2                74824AAL0         A- (sf)         BB+ (sf)
E                 74824AAM8         BB+ (sf)        B- (sf)


SMILE SECURITISATION 2007: S&P Lowers Rating on Cl. E Notes to D
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'D (sf)' from
'CCC- (sf)' its credit rating on SMILE Securitisation Company
2007 B.V.'s class E notes.

The downgrade follows the optional call exercised by the issuer
on the March 2015 payment date, following which the class A to D
notes were fully paid and the class E notes were partially
redeemed.  Under the transaction documents, following the
optional redemption date, the remaining outstanding notes will
stop accruing interest.

Under S&P's criteria for rating debt issues based on imputed
promises, it expects the issuer to pay timely interest on the
outstanding notes.

The terms and conditions in SMILE 2007 permit the nonpayment of
interest to the class E notes following the call date.  However,
such nonpayment of interest constitutes a breach of the imputed
promise under S&P's imputed promises criteria.

Under the terms of the transaction, any principal shortfall on
the class E notes may be further redeemed on the four succeeding
quarterly payment dates.  Therefore, the redemption period ends
on the March 2016 payment date.  S&P has looked at the payments
received by the class E notes on the June, September, and
December 2015 payment dates and concluded that the principal
outstanding on the class E notes is very unlikely to be fully
paid on the March 2016 payment date, after which there will be no
further claims against the issuer for the principal amount
outstanding on these notes.  S&P also considers the nonpayment to
be permanent. Therefore, under S&P's temporary interest shortfall
criteria, it considers this nonpayment to be a default.

Following the application of S&P's criteria, it has lowered to
'D (sf)' from 'CCC- (sf)' its rating on the class E notes.  Due
to an error, S&P did not previously lower its rating on the class
E notes to reflect the nonpayment of interest.  The downgrade
corrects this error.

SMILE Securitisation Company 2007 is a Dutch small and midsize
enterprise transaction that closed in February 2007.

RATINGS LIST

SMILE Securitisation Company 2007 B.V.
EUR4.907 bil asset-backed floating-rate notes

                                     Rating         Rating
Class             Identifier         To             From
E                 XS0288455883       D (sf)         CCC- (sf)



===========
N O R W A Y
===========


NORSKE SKOGINDUSTRIER: Extends Deadline for Debt Exchange Offer
---------------------------------------------------------------
Sally Bakewell at Bloomberg News reports that Norske
Skogindustrier ASA pushed back its deadline for a debt exchange
offer backed by Blackstone Group LP after a rival group of
bondholders posed a last minute challenge to the plan.

According to Bloomberg, Norske Skog said in a statement on Feb. 3
holders of EUR326 million (US$356 million) of the distressed
company's bonds now have until Feb. 26 to decide whether to swap
their notes for longer-term securities.  A New York judge
temporarily blocked the deal on Feb. 2 after the group of
investors holding secured bonds filed a lawsuit, Bloomberg
relates.

"Norske Skog will defend its position vigorously and the legal
advisors see no merit in the allegations made by the plaintiff in
the court proceedings," Bloomberg quotes the company as saying in
the statement.  The company said the content of the exchange
offer will remain unchanged, Bloomberg notes.

The offer violates an agreement governing the notes because it
allows the company to incur new secured debt obligations, a
trustee representing the secured bondholders, as cited by
Bloomberg, said in the lawsuit filed in New York state court on
Feb. 2.

                      About Norske Skog

Norske Skogindustrier ASA or Norske Skog, which translates as
Norwegian Forest Industries, is a Norwegian pulp and paper
company based in Oslo, Norway and established in 1962.

As reported by the Troubled Company Reporter-Europe in mid-
November 2015, Moody's Investors Service downgraded Norske
Skogindustrier ASA's (Norske Skog) Corporate Family Rating
("CFR") to Caa3 from Caa2 and its Probability of Default Rating
(PDR) to Ca-PD from Caa2-PD.  Standard & Poor's Ratings Service
also downgraded the Company's long-term corporate credit rating
to CC from CCC.



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


ABENGOA SA: U.S. Unit's Creditors File Chapter 7 Petition
---------------------------------------------------------
Tracy Rucinski and Tom Hals at Reuters report that creditors of
Abengoa Bioenergy of Nebraska LLC asked a federal judge to put
the U.S. affiliate of troubled Spanish renewable energy group
Abengoa into bankruptcy because it owes them more than US$4
million for grain.

The petition for a Chapter 7 liquidation of Abengoa Bioenergy of
Nebraska, which operates a bioethanol plant in that Midwestern
state, was filed in the U.S. Bankruptcy Court of Nebraska late on
Feb. 1, Reuters relates.

According to Reuters, court documents showed Abengoa Bioenergy of
Nebraska owes US$4.07 million to Gavilon Grain LLC, the Farmers
Cooperative Association and The Andersons Inc, for grain.

Among other assets up for sale, Abengoa is looking for a buyer
for its biofuels division, Abengoa Bioenergy, where it is also
trying to consolidate offices and streamline costs, Reuters
relays, citing a source familiar with the matter.

Abengoa Bioenergy of Nebraska is part of Abengoa Bioenergy,
Reuters notes.

The Nebraska operator can seek to dismiss the involuntary
petition or convert the case to a voluntary bankruptcy, which
allows the company to control the proceedings, Reuters states.

Abengoa SA is a Spanish renewable-energy company.


                        *       *       *

As reported by the Troubled Company Reporter-Europe on Dec. 21,
2015, Standard & Poor's Ratings Services lowered to 'SD'
(selective default) from 'CCC-' its long-term corporate credit
rating on Spanish engineering and construction company Abengoa
S.A.  S&P also lowered the short-term corporate credit rating on
Abengoa to 'SD' from 'C'.  S&P said the downgrade reflects
Abengoa's failure to pay scheduled maturities under its EUR750
million Euro-Commercial Paper Program.


PROMOTORA DE INFORMACIONES: Reaches Debt Exchange Offer Agreement
----------------------------------------------------------------
Charles Penty at Bloomberg News reports that Promotora de
Informaciones SA reached an accord with some of its main
creditors to carry out an issue of bond necessarily convertible
into ordinary shares of the company via exchange of debt for
minimum amount of EUR100.2 million and maximum of EUR150 million.

According to Bloomberg, the bonds are to have a two-year maturity
and EUR10 per share conversion price.

The bonds are to be divided into two tranches: a tranche of
EUR32.1 million for bank creditors; and tranche of EU117.9
million for holders of participative loans from the December 2013
syndicated financing contract, Bloomberg discloses.

Promotora de Informaciones SA is Spain's biggest media company
and publisher of El Pais newspaper.



===========
T U R K E Y
===========


LEKE JEANS: Applies for Postponement of Bankruptcy Proceedings
--------------------------------------------------------------
Benjamin Harvey at Bloomberg News, citing Hurriyet newspaper,
reports that Leke Jeans applied for postponement of the company's
bankruptcy proceedings.

According to Bloomberg, Ismail Serkan Yelgin, Leke Jean's lawyer,
as cited by Hurriyet newspaper, said market volatility, lira
weakness and falling demand hit the company's finances.

The court approved the company's request for bankruptcy
postponement and appointed two trustees, Bloomberg discloses.

Mr. Yelgin, as cited by Hurriyet, said the company aims to
continue operations and repay its debts, Bloomberg relates.

Leke Jeans is a Turkish clothing company.  It sells products in
about 380 stores and employs about 2,000 people.



=============
U K R A I N E
=============


UKRAINE: Insolvent Banks' Asset Sale to Cover Deposit Fund Needs
----------------------------------------------------------------
Interfax-Ukraine reports that National Bank of Ukraine Governor
Valeriya Gontareva said at a press conference on Jan. 28 the
needs of the Individuals' Deposit Guarantee Fund in financing in
2016 would be small, and they will be mainly satisfied thanks to
the sale of assets of insolvent banks.

According to Interfax-Ukraine, Ms. Gontareva said that this year
the fund plans to sell assets of insolvent banks worth around
UAH7 billion.



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


WISE 2006-1: Moody's Cuts Rating on GBP30MM Class A Notes to B2
---------------------------------------------------------------
Moody's Investors Service has downgraded the rating of one class
of notes issued by WISE 2006-1 PLC:

-- GBP30,000,000 Class A Credit-Linked Notes due 2058,
    Downgraded to B2 (sf); previously on May 22, 2015 Downgraded
    to B1 (sf)

Moody's affirmed the ratings of two classes of notes issued by
WISE 2006-1 PLC:

-- GBP22,500,000 Class B Credit-Linked Notes due 2058, Affirmed
    Caa1 (sf); previously on May 22, 2015 Downgraded to Caa1 (sf)

-- GBP11,250,000 Class C Credit-Linked Notes due 2058, Affirmed
    Caa3 (sf); previously on May 22, 2015 Downgraded to Caa3 (sf)

Moody's also affirmed the rating of the Super Senior CDS, entered
into by Dexia Credit Local (protection buyer):

Issuer: Dexia Credit Local - Super Senior Credit Default Swap
WISE 2006-1 PLC

-- GBP1436.25 million (current outstanding balance GBP 1320.9M)
    Super Senior Swap Notes, Affirmed Aa2 (sf); previously on
    May 22, 2015 Downgraded to Aa2 (sf)

The transaction is a synthetic project finance CDO with an
underlying portfolio consisting of GBP denominated PFI and
regulated utility bonds, each guaranteed by one of seven
monolines.

RATINGS RATIONALE

The rating actions are primarily a result of the deterioration in
the credit quality of the underlying reference portfolio since
the last rating action in May 2015. The deterioration in credit
quality is largely attributable to the downgrade of the
guaranteed index linked senior secured bonds issued by Catalyst
Healthcare (Manchester) Financing, a UK based PPP project in the
healthcare sector. Catalyst Healthcare (Manchester) Financing's
bonds were initially downgraded to Ba1, under review for further
downgrade, from Baa1 in June 2015; and later confirmed at Ba1 in
September 2015.

Deterioration in credit quality is observed through a higher
average rating factor of the portfolio (as measured by the
weighted average rating factor "WARF"). In particular, the WARF
(as calculated by Moody's) has increased to 341 as of January
2016 from 310 in May 2015.

Moody's analysis also incorporates the downgrade to MBIA
Insurance corporation ("MBIA Corp") Insurance Financial Strength
rating on January 19, 2016 to B3, under review for further
downgrade.

MBIA Corp, one of the seven monolines, provides a guaranty to
three regulated utility bonds for a notional of GBP 150 million,
or 10.8% of the portfolio.



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


* Liquidity Critical for Small EMEA Oil & Gas Cos., Fitch Says
--------------------------------------------------------------
The fall in oil prices has put most small oil and gas producers
operating in EMEA under significant strain and liquidity is
likely to be a critical factor in their ability to withstand the
pressure, Fitch Ratings says.

Smaller oil and gas firms, which are typically rated in the 'B'
category, are more vulnerable to liquidity problems than bigger
producers because they often have higher leverage, negative free
cash flow, limited access to banks and capital markets and
production concentrated in one or two locations.  Low oil prices
significantly exacerbate these weaknesses, but companies' ability
to cope varies significantly.  Key differentiators include the
amount of accumulated unrestricted cash versus short-term debt,
capex commitments, undrawn credit lines, hedging positions and
production cash costs.

Looking at sources and uses of cash over the next one to two
years, Kosmos Energy (B/Stable) has the strongest liquidity
position among the EMEA frontier firms in Fitch's coverage, with
over USD1bn of liquidity.  Seven Energy International (B-/Rating
Watch Negative) is at the other end of the spectrum, with its
liquidity largely dependent on its ability to raise new equity or
debt capital.

Fitch do not believe current oil prices are sustainable even in
the short term and expect a moderate recovery later this year.
But if there are no signs of a meaningful recovery in the next
two to three months, liquidity in the sector could significantly
weaken, potentially forcing higher-cost producers to reduce
output and seek external funding.

Some small players' high reliance on reserve based lending (RBL)
as their primary source of funding may complicate the liquidity
issue in the sector.  Under RBL, banks use the value of proved
reserves to assess how much a producer can borrow.  This is
normally reviewed at least twice a year and in the spring
redetermination Fitch expects banks to be less supportive unless
oil prices are on clearly recovering.


* BOOK REVIEW: Oil Business in Latin America: The Early Years
-------------------------------------------------------------
Author: John D. Wirth Ed.
Publisher: Beard Books
Softcover: 282 pages
List price: $34.95
Review by Gail Owens Hoelscher
Buy a copy for yourself and one for a colleague on-line at
http://is.gd/DvFouR

This book grew out of a 1981 meeting of the American Historical
Society. It highlights the origin and evolution of the stateowned
petroleum companies in Argentina, Mexico, Brazil, and
Venezuela.

Argentina was the first country ever to nationalize its
petroleum industry, and soon it was the norm worldwide, with the
notable exception of the United States. John Wirth calls this
phenomenon "perhaps in our century the oldest and most
celebrated of confrontations between powerful private entities
and the state."

The book consists of five case studies and a conclusion, as
follows:
* Jersey Standard and the Politics of Latin American Oil
Production, 1911-30 (Jonathan C. Brown)
* YPF: The Formative Years of Latin America's Pioneer State
Oil Company, 1922-39 (Carl E. Solberg)
* Setting the Brazilian Agenda, 1936-39 (John Wirth)
* Pemex: The Trajectory of National Oil Policy (Esperanza
Duran)
* The Politics of Energy in Venezuela (Edwin Lieuwen)
* The State Companies: A Public Policy Perspective (Alfred
H. Saulniers)

The authors assess the conditions at the time they were writing,
and relate them back to the critical formative years for each of
the companies under review. They also examine the four
interconnecting roles of a state-run oil industry and
distinguish them from those of a private company. First, is the
entrepreneurial role of control, management, and exploitation of
a nation's oil resources. Second, is production for the private
industrial sector at attractive prices. Third, is the
integration of plans for military, financial, and development
programs into the overall industrial policy planning process.

Finally, in some countries is the promotion of social
development by subsidizing energy for consumers and by promoting
the government's ideas of social and labor policy and labor
relations.

The author's approach is "conceptual and policy oriented rather
than narrative," but they provide a fascinating look at the
politics and development of the region. Mr. Brown provides a
concise history of the early years of the Standard Oil group and
the effects of its 1911 dissolution on its Latin American
operations, as well as power struggles with competitors and
governments that eventually nationalized most of its activities.
Mr. Solberg covers the many years of internal conflict over oil
policy in Argentina and YPF's lack of monopoly control over all
sectors of the oil industry. Mr. Wirth describes the politics
and individuals behind the privatization of Brazil's oil
industry leading to the creation of Petrobras in 1953. Mr. Duran
notes the wrangling between provinces and central government in
the evolution of Pemex, and in other Latin American countries.
Mr. Lieuwin discusses the mixed blessing that oil has proven for
Venezuela., creating a lopsided economy dependent on the ups and
downs of international markets. Mr. Saunders concludes that many
of the then-current problems of the state oil companies were
rooted in their early and checkered histories." Indeed, he says,
"the problems of the past have endured not because the public
petroleum companies behaved like the public enterprises they
are; they have endured because governments, as public owners,
have abdicated their responsibilities to the companies."

Jonh D. Wirth is Gildred Professor of Latin American Studies at
Standford University.


                            *********

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 2016.  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.


                 * * * End of Transmission * * *