TCREUR_Public/160310.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Thursday, March 10, 2016, Vol. 17, No. 049


                            Headlines


A U S T R I A

HETA ASSET: Creditors Refuse to Lift Lock-Up Agreement


G R E E C E

GREECE: Creditors Return to Athens to Discuss Bailout Issues


I R E L A N D

CELF LOAN III: Moody's Affirms B1 Rating on Class E Notes
HARVEST CLO III: Moody's Affirms 'Ba2' Rating on Cl. E-1 Notes


I T A L Y

IDI: Catholic Priest Faces Indictment in Bankruptcy Probe


N E T H E R L A N D S

WOOD STREET 1: Moody's Affirms B1 Ratings on 2 Note Classes


N O R W A Y

NORSKE SKOG: Obtains Favorable Ruling in Debt Exchange Dispute


R U S S I A

BANK SOVETSKY: DIA to Oversee Financial Rehabilitation
CB ROSAVTOBANK: Placed Under Provisional Administration
ECONOMBANK JSC: DIA to Oversee Financial Rehabilitation


S P A I N

OBRASCON HUARTE: Moody's Lowers CFR to B2, Outlook Stable


T U R K E Y

ZAMAN: European Union Calls on Turkey to Respect Media Freedom


U K R A I N E

AVANT-BANK PJSC: NBU Revokes Licenses, Starts Liquidation


U N I T E D   K I N G D O M

BL9 WEEKENDER: Goes Into Liquidation, Still Owes Music Fans
BROAD OAK: Staff Left in The Dark About Liquidation
FABRIC WAREHOUSE: In Liquidation, 50 Workers Still Upaid
JPMAM: Wins BlueCrest Cash After Investors Reject Liquidation
RANGERS FOOTBALL: Liquidators Can Appeal "Big Tax Case" Ruling

SOHO HOUSE: S&P Lowers CCR to 'CCC', Outlook Stable


X X X X X X X X

* Ba1 & Ba2-Rated EMEA Cos. Show Signs of Default, Moody's Says


                            *********


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


HETA ASSET: Creditors Refuse to Lift Lock-Up Agreement
------------------------------------------------------
Alexander Weber at Bloomberg News reports that Heta Asset
Resolution AG's creditors rebuffed Austrian demands to lift a
lock-up agreement, increasing the likelihood that a discounted
offer for EUR10.8 billion (US$12 billion) of the bad bank's debt
will fail as the March 11 deadline nears.

Austria and the province of Carinthia, a former owner of Heta
which still guarantees its liabilities, "would be well advised to
meet their obligations and fulfill their liabilities, instead of
calling on the creditors to terminate binding contracts,"
Bloomberg quotes the group as saying in a statement.  The
creditors allied in the umbrella group control more than EUR5
billion of Heta's debt, enough to block a tender offer launched
by Carinthia in January, Bloomberg discloses.

On March 8, Mr. Schelling called on creditors to terminate the
lock-up agreement preventing their members from accepting the
offer, warning they may violate cartel rules, Bloomberg relates.
According to Bloomberg, the creditors, which include Commerzbank
AG, Pacific Investment Management Co. and Dexia SA's German unit,
reiterated that the pact conforms to "legally approved" standards
and that it won't be lifted.

While Austrian officials have said that there will be no second
offer for Heta's debt if the first one fails, creditors renewed
their demand for negotiations in order to settle the dispute,
Bloomberg notes.

Heta Asset Resolution AG is a wind-down company owned by the
Republic of Austria.  Its statutory task is to dispose of the
non-performing portion of Hypo Alpe Adria, nationalized in 2009,
as effectively as possible while preserving value.



===========
G R E E C E
===========


GREECE: Creditors Return to Athens to Discuss Bailout Issues
------------------------------------------------------------
Philip Chrysopoulos at Greek Reporter reports that Greece's
creditors arrived in Athens on March 8 in order to start the
evaluation of the implementation of the bailout program with
several issues still open.

According to Greek Reporter, the heads of the creditors' missions
-- Declan Costello of the European Commission, Nicola
Giammarioli of the European Stability Mechanism, Rasmus Rueffer
of the European Central Bank and Delia Velculescu of the
International Monetary Fund -- were scheduled to meet on March 9
with Finance Minister Euclid Tsakalotos and Economy Minister
Giorgos Stathakis to negotiate the issues that still remain open.

It is expected that talks will last until the end of April or
early May, Greek Reporter discloses.  The pending issues are
several and they are a prerequisite for starting negotiations on
Greek debt easing, Greek Reporter says.

The EUR1.8-billion fiscal gap in the 2016 budget and the 3.5%
primary surplus for 2018 are issues that remain pending and
Greece has not presented a credible proposal yet, Greek Reporter
states.

The selling of bad loans to distress funds and the change in
management of Greek banks are also under negotiation with the
Greek side trying to block selling of small business loans to
distress funds and protect low income families from foreclosures
of primary residences, Greek Reporter relays.

Also, creditors insist on the quick establishment of an
independent privatization fund that should be managed by non-
political persons, Greek Reporter notes.



=============
I R E L A N D
=============


CELF LOAN III: Moody's Affirms B1 Rating on Class E Notes
---------------------------------------------------------
Moody's Investors Service has upgraded the ratings of these notes
issued by CELF Loan Partners III plc:

  EUR28 mil. Class B-1 Senior Secured Deferrable Floating Rate
   Notes due Nov. 1, 2023, Upgraded to Aaa (sf); previously on
   Sept. 21, 2015, Upgraded to Aa1 (sf)

  EUR8 mil. Class B-2 Senior Secured Deferrable Fixed Rate Notes
   due Nov. 1, 2023, Upgraded to Aaa (sf); previously on Sept 21,
   2015, Upgraded to Aa1 (sf)

  EUR31.5 mil. Class C Senior Secured Deferrable Floating Rate
   Notes due Nov. 1, 2023, Upgraded to Aa2 (sf); previously on
   Sept. 21, 2015, Upgraded to A2 (sf)

  EUR29 mil. Class D Senior Secured Deferrable Floating Rate
   Notes due Nov. 1, 2023, Upgraded to Baa3 (sf); previously on
   Sept. 21, 2015, Affirmed Ba1 (sf)

  EUR11 mil. (current outstanding balance of EUR7,604,393.19)
   Class R Combination Notes due Nov. 1, 2023, Upgraded to
   Aaa (sf); previously on Sept. 21, 2015, Upgraded to Aa1 (sf)

Moody's also has affirmed the ratings on these notes:

  EUR293 mil. (current outstanding balance of EUR74,633,117.36)
   Class A-1 Senior Secured Floating Rate Notes due Nov. 1, 2023,
   Affirmed Aaa (sf); previously on Sept. 21, 2015, Affirmed
   Aaa (sf)

  EUR52 mil. Class A-2 Senior Secured Floating Rate Notes due
   Nov. 1, 2023, Affirmed Aaa (sf); previously on Sept. 21, 2015,
   Affirmed Aaa (sf)

  EUR19.5 mil. Class E Senior Secured Deferrable Floating Rate
   Notes due Nov.1, 2023, Affirmed B1 (sf); previously on
   Sept. 21, 2015, Affirmed B1 (sf)

CELF Loan Partners III plc, issued in October 2006, is a single
currency Collateralised Loan Obligation backed by a portfolio of
mostly high yield European loans.  The portfolio is managed by
CELF Advisors LLP.  This transaction passed its reinvestment
period in November 2013.

                         RATINGS RATIONALE

The upgrade of the notes is primarily a result of deleveraging in
November 2015.  As a result, the class A1 notes have paid down
approximately EUR45.5 million (16% of initial balance) resulting
in increases in over-collateralization levels.  As of the January
2016 trustee report, the Class A, B, C, D and E
overcollateralization ratios are reported at 199.23%, 155.13%,
129.96%, 113.07% and 103.98% respectively compared with 170.74%,
141.20%, 122.63%, 109.39 and 101.98% in October 2015.

The ratings of the combination notes address the repayment of the
rated balance on or before the legal final maturity.  For the
Class R Combination notes, the 'rated balance' at any time is
equal to the principal amount of the combination note on the
issue date times a rated coupon of 1.5% per annum accrued on the
rated balance on the preceding payment date, minus the sum of all
payments made from the issue date to such date, either interest
or principal.  The rated balance will not necessarily correspond
to the outstanding notional amount reported by the trustee.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers.  In its base
case, Moody's analyzed the underlying collateral pool as having
performing par and principal proceeds balance of EUR241.4
million, a defaulted par of EUR12.8 million, a weighted average
default probability of 20.39% (consistent with a WARF of 2830
over a weighted average life of 4.54 years), a weighted average
recovery rate upon default of 45.81% for a Aaa liability target
rating, a diversity score of 28 and a weighted average spread of
3.61%.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool.  The estimated average recovery rate on
future defaults is based primarily on the seniority of the assets
in the collateral pool.  Moody's generally applies recovery rates
for CLO securities as published in "Moody's Approach to Rating SF
CDOs".  In some cases, alternative recovery assumptions may be
considered based on the specifics of the analysis of the CLO
transaction.  In each case, historical and market performance and
a collateral manager's latitude to trade collateral are also
relevant factors.  Moody's incorporates these default and
recovery characteristics of the collateral pool into its cash
flow model analysis, subjecting them to stresses as a function of
the target rating of each CLO liability it is analyzing.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's
Global Approach to Rating Collateralized Loan Obligations"
published in December 2015.

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

In addition to the base-case analysis, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it assumed a lower weighted average recovery rate in
the portfolio.  Moody's ran a model in which it reduced the
weighted average recovery rate by 5%; the model generated outputs
that were one notch lower than the base-case results for classes
C, D and E. Classes A and B were not significantly impacted.

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

Additional uncertainty about performance is due to:

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

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

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


HARVEST CLO III: Moody's Affirms 'Ba2' Rating on Cl. E-1 Notes
--------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of these notes
issued by Harvest CLO III plc:

  EUR30,750,000 Class C-1 Senior Subordinated Deferrable Floating
   Rate Notes due 2021, Upgraded to Aaa (sf); previously on
   May 7, 2015, Upgraded to Aa1 (sf)

  EUR12,000,000 Class C-2 Senior Subordinated Deferrable Fixed
   Rate Notes due 2021, Upgraded to Aaa (sf); previously on
   May 7, 2015, Upgraded to Aa1 (sf)

  EUR16,750,000 Class D-1 Senior Subordinated Deferrable Floating
   Rate Notes due 2021, Upgraded to A2 (sf); previously on May 7,
   2015, Upgraded to Baa1 (sf)

  EUR9,250,000 Class D-2 Senior Subordinated Deferrable Fixed
   Rate Notes due 2021, Upgraded to A2 (sf); previously on May 7,
   2015, Upgraded to Baa1 (sf)

Moody's has also affirmed the ratings on these notes:

  EUR77,000,000 (current outstanding balance Euro 51.8 mil.)
   Class B Senior Floating Rate Notes due 2021, Affirmed
   Aaa (sf); previously on May 7, 2015, Upgraded to Aaa (sf)

  EUR15,750,000 Class E-1 Senior Subordinated Deferrable Floating
   Rate Notes due 2021, Affirmed Ba2 (sf); previously on May 7,
   2015, Affirmed Ba2 (sf)

  EUR3,000,000 Class E-2 Senior Subordinated Deferrable Fixed
   Rate Notes due 2021, Affirmed Ba2 (sf); previously on May 7,
   2015, Affirmed Ba2 (sf)

Harvest CLO III plc, issued in April 2006, is a collateralized
loan obligation backed by a portfolio of mostly high-yield senior
secured European loans.  The portfolio is managed by 3i Debt
Management Investments Limited.  The transaction's reinvestment
period ended in June 2013.  The collateral assets that are not
denominated in Euro are hedged by perfect asset swaps or a macro
swap.

                          RATINGS RATIONALE

The upgrade of the notes is primarily a result of deleveraging
since the last two payment dates in June 2015 & December 2015.
As a result; the Class A notes have been redeemed in full, the
Class B notes have amortized by approximately EUR25.2 million or
33% of its original outstanding balance, resulting in increases
in over-collateralization levels.  As of the January 2016 trustee
report, the Class B, Class C, Class D and Class E over-
collateralization ratios are reported at 302.88%, 165.99%,
130.20% and 112.68% % respectively compared with 157.21%,
128.32%, 115.42 and 107.62% in May 2015.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers.  In its base
case, Moody's analyzed the underlying collateral pool as having
performing par and principal proceeds balance of EUR149.77
million and GBP1.00 million, a defaulted par of EUR 11.66 million
and GBP1.20 million, a weighted average default probability of
18.92% (consistent with a WARF of 2767 over a weighted average
life of 4.17 years), a weighted average recovery rate upon
default of 46.53% for a Aaa liability target rating, a diversity
score of 19 and a weighted average spread of 3.75%.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool.  The estimated average recovery rate on
future defaults is based primarily on the seniority of the assets
in the collateral pool.  In each case, historical and market
performance and a collateral manager's latitude to trade
collateral are also relevant factors.  Moody's incorporates these
default and recovery characteristics of the collateral pool into
its cash flow model analysis, subjecting them to stresses as a
function of the target rating of each CLO liability it is
analyzing.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's
Global Approach to Rating Collateralized Loan Obligations"
published in December 2015.

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

In addition to the base-case analysis, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it assumed a lower weighted average recovery rate in
the portfolio.  Moody's ran a model in which it reduced the
weighted average recovery rate by 5%; the model generated outputs
that were unchanged for Classes B, C-1 and C-2 within one notch
of the base-case results for Classes D-1, D-2, E-1 and E-2.

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

Additional uncertainty about performance is due to:

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

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

  3) Around 12% of the collateral pool consists of debt
     obligations whose credit quality Moody's has assessed by
     using credit estimates.  As part of its base case, Moody's
     has stressed large concentrations of single obligors bearing
     a credit estimate as described in "Updated Approach to the
     Usage of Credit Estimates in Rated Transactions," published
     in October 2009 and available at:

    http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_120461

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



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


IDI: Catholic Priest Faces Indictment in Bankruptcy Probe
---------------------------------------------------------
ANSA reports that a Catholic priest on the board of Rome skin
hospital IDI was among 40 people prosecutors asked to indict on
March 7 in a probe into a Church-run healthcare group.  Father
Franco Decaminada was head of its health sector until December
2011, ANSA discloses.

The case involves the multi-million-euro crack-up of a religious
body that ran the Rome hospital and two clinics, ANSA relays.

According to ANSA, the 40 are threatened with indictment on 144
counts of bankruptcy fraud, money laundering and embezzlement in
what prosecutors said was the 2007-2012 "despoiling" of the
religious entity, called the Italian Province of the Congregation
of the Sons of the Immaculate Conception (Picfic).

Complaints by IDI employees that they were not getting their
paychecks sparked the probe, which led to the seizure of EUR6
million in assets from Decaminada and Temperini, ANSA states.

Finance police discovered IDI was EUR845 million in the red and
EUR450 million in tax evasion while EUR82 million had been
diverted and EUR6 million in public funds embezzled, ANSA
relates.

Picfic declared bankruptcy and went into receivership in May
2013, ANSA recounts.



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


WOOD STREET 1: Moody's Affirms B1 Ratings on 2 Note Classes
-----------------------------------------------------------
Moody's Investors Service has upgraded the ratings on these notes
issued by Wood Street CLO 1 B.V.:

  EUR29.9 mil. Class C Senior Secured Deferrable Floating Rate
   Notes, Upgraded to Aaa (sf); previously on July 31, 2015,
   Upgraded to Aa2 (sf)

  EUR27.8 mil. Class D1 Senior Secured Deferrable Floating Rate
   Notes, Upgraded to Baa2 (sf); previously on July 31, 2015,
   Affirmed Ba1 (sf)

  EUR1.5 mil. Class D2 Senior Secured Deferrable Floating Rate
   Notes, Upgraded to Baa2 (sf); previously on July 31, 2015,
   Affirmed Ba1 (sf)

Moody's also affirmed these notes issued by Wood Street CLO 1
B.V.:

  EUR310.5 mil. (outstanding balance of EUR 31,877,546.21)
   Class A Senior Secured Floating Rate Notes, Affirmed Aaa (sf);
   previously on July 31, 2015, Affirmed Aaa (sf)

  EUR36 mil. Class B Senior Secured Floating Rate Notes, Affirmed
   Aaa (sf); previously on July 31, 2015 Affirmed Aaa (sf)

  EUR10.6 mil. Class E Senior Secured Deferrable Floating Rate
   Notes, Affirmed B1 (sf); previously on July 31, 2015, Upgraded
   to B1 (sf)

  EUR5 mil. Class Z Combination Notes, Affirmed B1 (sf);
    previously on July 31, 2015, Upgraded to B1 (sf)

Wood Street CLO 1 B.V., issued in September 2005, is a
collateralised loan obligation (CLO) backed by a portfolio of
mostly high-yield senior secured European loans.  The portfolio
is managed by Alcentra Limited.  The transaction's reinvestment
period ended in November 2011.

                       RATINGS RATIONALE

The rating upgrades of the notes are primarily a result of the
deleveraging of senior notes and subsequent increases of the
overcollateralization ratios of the remaining classes of notes.
Moody's notes that the class A notes partially redeemed by
approximately EUR21.5 million at the November 2015 payment date.
As a result of the deleveraging the OC ratios of the notes have
increased significantly.  According to the January 2016 trustee
report, the classes A/B, C, D and E OC ratios are 227.80%,
158.10%, 121.70% and 112.35% respectively compared to levels just
prior to the payment date in November 2015 of 198.26%, 148.54%,
119.30% and 111.38% respectively.

The rating of the combination notes address the repayment of the
rated balance on or before the legal final maturity.  For the
class Z notes, the rated balance is equal at any time to the
principal amount of the combination note on the issue date minus
the aggregate of all payments made from the issue date to such
date, either through interest or principal payments.  The rated
balance may not necessarily correspond to the outstanding
notional amount reported by the trustee.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers.  In its base
case, Moody's analyzed the underlying collateral pool as having a
cash and performing par balance of EUR155.9 million, a weighted
average default probability of 24.91% (consistent with a WARF of
3546 and a weighted average life of 4.16 years), a weighted
average recovery rate upon default of 48.24% for a Aaa liability
target rating and a diversity score of 17.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool.  The estimated average recovery rate on
future defaults is based primarily on the seniority of the assets
in the collateral pool.  In each case, historical and market
performance and a collateral manager's latitude to trade
collateral are also relevant factors.  Moody's incorporates these
default and recovery characteristics of the collateral pool into
its cash flow model analysis, subjecting them to stresses as a
function of the target rating of each CLO liability it is
analyzing.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's
Global Approach to Rating Collateralized Loan Obligations"
published in December 2015.

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

In addition to the base-case analysis, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it lowered the weighted average recovery rate by 5
percentage points; the model generated outputs that were in line
with the base-case results for classes A and B and within with
two notches for classes C, D and E.

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

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

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

  Around 19.23% of the collateral pool consists of debt
   obligations whose credit quality Moody's has assessed by using
   credit estimates.  As part of its base case, Moody's has
   stressed large concentrations of single obligors bearing a
   credit estimate as described in "Updated Approach to the Usage
   of Credit Estimates in Rated Transactions," published in
   October 2009 and available at:

    http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_120461

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

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



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


NORSKE SKOG: Obtains Favorable Ruling in Debt Exchange Dispute
--------------------------------------------------------------
Luca Casiraghi at Bloomberg News reports that Norske
Skogindustrier ASA, the distressed Norwegian paper maker backed
by Blackstone Group LP's credit arm, won a court ruling in a
dispute over a debt exchange it says is needed to avoid
bankruptcy.

U.S. District Judge Richard Sullivan denied a request by a group
of bondholders that would block the plan, Bloomberg relays,
citing a court ruling on March 8.  According to Bloomberg, while
the judge said the arguments put forward against the exchange
weren't sufficient to stop it, he said the proposed plan is
prohibited by existing bond documents.

Norske Skog's debt-swap plan has divided investors, with
opposition from a group of secured bondholders including
BlueCrest Capital Management, New York-based Marathon Asset
Management and Finnish insurer Sampo Oyj, Bloomberg discloses.

The company said in a statement on March 9 it will review the
details of the ruling with its legal advisers and consider any
effects on the exchange offer, Bloomberg relates.

The exchange was temporarily blocked by a New York state judge
and Norske Skog extended the deadline to March 11, Bloomberg
notes.  The judge, as cited by Bloomberg, said Norske Skog still
has to respond to an amended complaint by the group.

                       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.



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


BANK SOVETSKY: DIA to Oversee Financial Rehabilitation
------------------------------------------------------
The Bank of Russia has approved amendments to the Plan for
Participation of the State Corporation Deposit Insurance Agency
in Bankruptcy Prevention of JSC Bank Sovetsky.

As a result of the bankruptcy prevention, tender held by the
Agency PJSC Tatfondbank with the most favorable bankruptcy
prevention offering for the Bank has been selected as an
investor.

The bankruptcy prevention measures for JSC Bank Sovetsky are
aimed at reaching its compliance with the Bank of Russia
requirements for financial stability of credit institutions.


CB ROSAVTOBANK: Placed Under Provisional Administration
-------------------------------------------------------
The Bank of Russia, by its Order No. OD-766, dated March 4, 2016,
revoked the banking license of Moscow-based credit institution
Commercial Bank Regional Sectoral Specialised Automotive Industry
Bank, LLC (LLC CB ROSAVTOBANK) from March 4, 2016.

The Bank of Russia took such an extreme measure -- revocation of
the banking license -- because of the credit institution's
failure to comply with federal banking laws and Bank of Russia
regulations, repeated violations within one year of Bank of
Russia requirements stipulated by Articles 6, 7 (excluding Clause
3 of Article 7) of the Federal Law "On Countering the
Legalisation (Laundering) of Criminally Obtained Incomes and the
Financing of Terrorism", equity capital adequacy ratios below 2
per cent, decrease in bank equity capital below the minimum value
of the authorized capital established by the Bank of Russia as of
the date of the state registration of the credit institution, due
to repeated application within a year of measures envisaged by
the Federal Law "On the Central Bank of the Russian Federation
(Bank of Russia)", considering a real threat to the creditors'
and depositors' interests.

LLC CB ROSAVTOBANK implemented high-risk lending policy and
failed to create loan loss provisions adequate to the risks
assumed. Due credit risk assessment resulted in a full loss of
the bank's equity capital.

Besides, Bank LLC CB ROSAVTOBANK failed to meet the Bank of
Russia regulations on countering the legalization (laundering) of
criminally obtained incomes and the financing of terrorism,
including, but not limited to, the timely notification of the
authorized body about operations subject to obligatory control.
Moreover, the bank was involved in dubious transit operations.

The management and owners of the credit institution did not take
effective measures to normalize its activities.  Under these
circumstances, the Bank of Russia performed its duty on the
revocation of the banking license from the credit institution in
accordance with Article 20 of the Federal Law 'On Banks and
Banking Activities.'

The Bank of Russia, by its Order No. OD-767, dated March 4, 2016,
appointed a provisional administration to LLC CB ROSAVTOBANK for
the period until the appointment of a receiver pursuant to the
Federal Law "On Insolvency (Bankruptcy)" or a liquidator under
Article 23.1 of the Federal Law "On Banks and Banking
Activities".  In accordance with federal laws, the powers of the
credit institution's executive bodies are suspended.

LLC CB ROSAVTOBANK is a member of the deposit insurance system.
The revocation of the banking license is an insured event as
stipulated by Federal Law No. 177-FZ "On the Insurance of
Household Deposits with Russian Banks" in respect of the bank's
retail deposit obligations, as defined by law.  The said Federal
Law stipulates the insurance premium as 100% reimbursement of the
balance of funds to bank depositors, including individual
entrepreneurs, but not more than 1.4 million in aggregate per
depositor.

According to the financial statements, as of February 1, 2016,
LLC CB ROSAVTOBANK ranked 254th by assets in the Russian banking
system.


ECONOMBANK JSC: DIA to Oversee Financial Rehabilitation
-------------------------------------------------------
The Bank of Russia has approved amendments to the Plan for
Participation of the State Corporation Deposit Insurance Agency
in bankruptcy prevention of Joint-stock Commercial Bank of
Reconstruction and Development Econombank (JSC Econombank).

As a result of the bankruptcy prevention, tender PJSC METCOMBANK
with the most favorable bankruptcy prevention offering for the
Bank has been selected.

As part of the Participation Plan the Agency is vested with the
authority of a provisional administration of JSC Econombank from
March 9, 2016.  The powers of the Bank's shareholders related to
their participation in the authorized capital, including the
right to call a general shareholders' meeting, as well as the
powers of its executive bodies have been suspended.

The Participation Plan stipulates acquisition by the Investor of
shares in the Bank in the amount sufficient for the overall
decision-making.



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


OBRASCON HUARTE: Moody's Lowers CFR to B2, Outlook Stable
---------------------------------------------------------
Moody's Investors Service has downgraded to B2 from B1 the
corporate family rating of Spanish multinational construction and
civil engineering company Obrascon Huarte Lain S.A. (OHL) and the
ratings on the group's senior unsecured debt instruments.

"The downgrade is driven principally by the slump in earnings at
OHL's Engineering and Construction division in 2015 and the
limited prospects for recovery in 2016, both of which have pushed
leverage to levels that can no longer sustain a B1 rating," says
Matthias Heck, a Moody's Vice President -- Senior Analyst.

Concurrently, the rating agency downgraded OHL's probability of
default rating (PDR) to B2-PD from B1-PD.  The outlook on the
ratings is stable.

                        RATINGS RATIONALE

The rating downgrade primarily reflects the company's
deteriorated operating performance within its recourse activities
in 2015, and the dim prospects for material improvements in 2016,
only partially offset by the EUR1 billion rights issue that was
conducted in October 2015.  As a result, OHL's financial
leverage, measured as recourse debt/recourse EBITDA, remains too
high for the previous rating level and is rather commensurate
with a B2 rating.

In 2015, OHL's recourse activities have performed very weakly,
with a 27% EBITDA decline in its construction division (to EUR150
million, from EUR206 million in 2014), as well as a shrinking
order book (book-to-bill ratio of 0.7x in 2015).  OHL's other
recourse activities recorded a combined slightly negative EBITDA,
including another EBITDA loss of EUR20 million at its industrial
activities division.

As a result, OHL's recourse EBITDA totaled to EUR147 million in
2015, excluding dividends from OHL Concesiones.  Moody's does not
include these dividends, because they do not result in a cash
inflow for OHL as they are used to offset the existing
intercompany loan of EUR530 million (EUR1.08 billion as per
December 2014).  Moody's expects this loan to be redeemed within
the next 18 months.  Thereafter, however, Moody's believes that
OHL Concesiones' capacity to pay cash dividends remains very
limited, given the sizeable debt of EUR3.5 billion sitting at OHL
Concesiones.

OHL's Construction division had an implied EBITDA margin of 4.6%
in 2015, weakening from 7.4% in 2014.  The margin weakness
reflects a regional shift by the company towards more developed
economies with lower margins, and a more conservative estimate of
final construction targets for various projects.

While Construction margins may not necessarily continue their
weakness in 2016, a material recovery towards historically higher
levels appears unlikely, given the shrunken order book and the
generally lower margin level in some of OHL's core regions.  In
addition, securing additional construction contracts in its core
markets might be more challenging going forward.

In 2015, OHL's gross recourse debt remained high at EUR1.2
billion.  This leaves gross recourse debt/recourse EBITDA at a
very high level of 8.4x in 2015, compared to Moody's rating
trigger of 4.5-5.5x to maintain the B1 rating.  OHL has
historically maintained a rather high cash balance, which the
rating agency assumes is necessary to run its business.  Even if
Moody's assumed part of that cash to be applied to debt
reduction, this would keep the leverage of OHL above 6x.

In addition, the majority (55%) of OHL's consolidated EBITDA
(which includes profits from its concession subsidiaries) of
EUR967 million remained non-cash in 2015, given the
capitalization of expected returns on its Mexican concessions.
As a result, the consolidated leverage, calculated as net
debt/cash EBITDA, amounted to very high 9.6x in 2015.

                 RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects the expectation that the company
continues its efforts to reduce leverage, both on a recourse and
consolidated basis.  This is evidenced by the company's
successful capital increase of EUR1.0 billion executed in October
2015, proceeds of which are largely used to reduce debt, as
reflected by the tender offer for the bond maturing in 2020.
After the tender offer, the remaining outstanding volume amounts
to EUR230 million. The complete buyback would reduce gross debt
to slightly below EUR1.0 billion and reduce gross leverage to
6.6x.

The stable outlook also reflects the expectation that the company
will modestly grow its operating profits, leading to an
improvement in recourse EBITDA, compared to depressed 2015
levels. Such an EBITDA improvement, in combination with a
reduction of outstanding debt, would further bring gross recourse
leverage down into Moody's new ratio guidance of 5.5-6.5x, which
Moody's expects for the B2 rating level.

The stable outlook also reflects the company's improved liquidity
situation which is now at adequate levels on the back of (1)
proceeds from the abovementioned capital increase, (2) the
settlement of some litigation claims, (3) the reduction of margin
loans at the level of OHL Concesiones, as well as (4) several
asset disposals (75% of the EUR250 million target achieved
already).  Moody's understands that the target for asset
disposals could be even overachieved, with a positive impact on
liquidity and net financial leverage.

WHAT COULD CHANGE THE RATING UP/DOWN

Positive pressure could develop if OHL's credit metrics improved
on a sustainable basis such that gross recourse debt/recourse
EBITDA falls to well below 5.5x, with the maintenance of a solid
liquidity profile, including the generation of positive free cash
flow.

Conversely, there could be negative rating pressure if the
company were to fail to de-lever as expected, with gross recourse
debt/recourse EBITDA remaining above 6.5x.  Negative rating
pressure could also emerge if (1) OHL's performance does not
enable a return to positive free cash flow generation on a
recourse and consolidated basis and (2) recourse EBITDA were to
deteriorate further from currently already low levels.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Construction
Industry published in November 2014.

Headquartered in Madrid, OHL is one of Spain's leading
construction/concessions groups.  The company owns a 56.14%
equity stake in OHL Mexico, a large concessions operator in
Mexico, and a 13.93% equity stake in Spanish infrastructure
operator Abertis.  In 2015, OHL reported sales of EUR4.4 billion
and EBITDA of EUR967 million.



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


ZAMAN: European Union Calls on Turkey to Respect Media Freedom
--------------------------------------------------------------
PTI reports that the European Union on March 5 asked Turkey to
respect media freedom after Turkish police seized top-selling
opposition newspaper Zaman.

"The EU has repeatedly stressed that Turkey, as a candidate
country, needs to respect and promote high democratic standards
and practices, including freedom of the media," PTI quotes the
EU's diplomatic service as saying in a statement.

Zaman newspaper published a defiant edition on March 5 warning of
the "darkest days" in the history of the press after authorities
seized control of its headquarters in a dramatic late-night raid
by riot police, PTI relays.

As reported by the Troubled Company Reporter-Europe on March 7,
2016, The Telegraph related that Zaman, linked to a US-based
preacher who is the arch-foe of the Turkish president, was
ordered into administration by an Istanbul court on March 4 after
a request from state prosecutors.  The newspaper has been
strongly critical of Recep Tayyip Erdogan, the Turkish president,
and his government, The Telegraph noted.

The newspaper has a readership of more than 630,000, and its
sister Today's Zaman is one of a few newspapers printed in
English on paper and online, according to The Telegraph.



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


AVANT-BANK PJSC: NBU Revokes Licenses, Starts Liquidation
---------------------------------------------------------
According to Interfax-Ukraine, the National Bank of Ukraine has
decided to revoke the banking license and liquidate Avant-Bank
PJSC.

The bank was classified as problem in the beginning of
December 2015, Interfax-Ukraine relays, citing NBU's report.

"At the end of the year the liquidity of PJSC Avant-Bank
deteriorated significantly.  At the same time, we've started
receiving complaints from individuals and legal entities with
respect to the bank's non-fulfillment of its obligations.  The
regulator explained the decision was made on the basis of the
bank shareholders' having no clear plans for the restoration of
the bank's liquidity and the failure to perform customers'
operations in the period established by the legislation,"
Interfax-Ukraine quotes the NBU report as saying.

Avant-Bank PJSC is based in Kyiv.



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


BL9 WEEKENDER: Goes Into Liquidation, Still Owes Music Fans
------------------------------------------------------------
manchestereveningnews.co.uk reports that the company behind the
failed BL9 Weekender music festival has called in the
liquidators.

Some ticket holders are still owed refunds after the event was
relocated, then postponed and later called off last summer,
according to manchestereveningnews.co.uk.

Andrew Brooks, director of organisers BL9 Media, told the M.E.N.
the company had been hit with heavy losses as a result and said
he was considering legal action against Bury Council for not
allowing it to go ahead at the original venue, the report notes.

"We did our best but unfortunately we had some big losses due to
the cancellation and trying to reschedule," the report quoted
Mr. Brooks as saying.  "We are just deciding whether there is any
course of action to be taken against the council and are
reviewing with our legal team," Mr. Brooks added.

The event was due to be headlined by Happy Mondays and Razorlight
at Bury FC's Gigg Lane stadium on June 13 and 14 last year.

But council bosses would not allow it to go ahead at the ground,
citing 'serious concerns about public safety,' the report notes.
Organisers said it gave them no choice but to find a new venue so
it could go ahead on the same dates and moved it to EventCity in
Trafford, the report relays.

But later, they announced it would be postponed until 'later in
the summer', claiming the relocation left them without enough
time to plan it properly, the report discloses.

A spokesman for the council said: "We refused to grant the BL9
organisers a special safety certificate for the proposed Gigg
Lane concert because we had serious concerns for public safety.

Ticket holders were told they could get a full refund or use
their tickets for the rescheduled event, the report notes.

But the M.E.N. has been contacted by several music fans who are
still waiting for their money back nearly nine months on, the
report relays.


BROAD OAK: Staff Left in The Dark About Liquidation
---------------------------------------------------
The Gazette reports that employees said they had no idea what was
going on at Broad Oak Toiletries until they lost their jobs on
Friday.

A handful of staff made redundant four days ago said the company
didn't bother to inform staff what was happening, according to
The Gazette.

The report notes that this comes after it was announced that
Broad Oak Toiletries Ltd had ceased trading after failing to
secure a buyer.

The company has now gone into administration leaving 214 members
of staff redundant and without pay for January, the report
relays.

The Gazette was told some employees learned their fate from the
Job Centre Plus.

A former employee has said he believed that management was not
telling the staff the full story, the report discloses.

The Gazette has attempted to contact Broad Oak Toiletries but has
not received response.

Broad Oak Toiletries Ltd was a leading UK manufacturer of
toiletries and health and beauty products.  It made products for
high-end brands such as Jo Malone and Jack Wills.

It was announced that BDO LLP was appointed to oversee the
administration process on Friday, February 5, the report relays.

Simon Girling -- simon.girling@bdo.co.uk -- one of the
administrators for the company, has been contacted for comment.

In a statement issued to the Gazette, Mr. Girling said: "Broad
Oak had significantly developed its customer base over the last
18 months, but this led to capacity issues at its Tiverton
manufacturing plant which put insurmountable pressures on its
working capital.

"The company exhausted all possible options to continue to trade
and, ultimately, in the absence of a buyer of the business as a
going concern, it was forced to cease to trade and unfortunately
all employees have been made redundant.

"The joint administrators will seek purchasers of the specialist
assets and interest in the significant leasehold properties in
Tiverton and Burlescombe and, going forward, will seek to
maximise recoveries for the benefit of all creditors.

"We would urge staff and creditors with any concerns to contact
the Joint Administrators via BRNOTICE@bdo.co.uk."


FABRIC WAREHOUSE: In Liquidation, 50 Workers Still Upaid
--------------------------------------------------------
Insider Media Limited reports that Fabric Warehouse, a retail
chain owned by a former Liverpool mayoral candidate, has
reportedly gone into liquidation.

The report, citing Liverpool Echo, relates that Fabric Warehouse,
a division of Prescot-based Caldeira Holdings, has shut its doors
and approximately 50 staff who work for it have not yet been paid
for January.

Caldeira Holdings is owned by Tony Caldeira, who was the
Conservative candidate for the position of first elected mayor of
Liverpool in 2012, the report recalls.  The contest was
eventually won by Joe Anderson.

Fabric Warehouse went into administration in 2008 and Caldeira
Retail Ltd subsequently rescued 14 of the 40 stores, the report
notes.  However, its store count has since fallen to seven, the
report says.

Kerry Bailey -- kerry.bailey@bdo.co.uk -- of BDO has been
appointed as liquidator of the business.


JPMAM: Wins BlueCrest Cash After Investors Reject Liquidation
-------------------------------------------------------------
Sean Butters at citywire.co.uk reports that JP Morgan Asset
Management (JPMAM) has won the mandate for the BlueCrest AllBlue
Fund investment trust, ending a period of uncertainty for trust
shareholders.

The deal sees GBP262 million of assets -- out of an initial
GBP713 million -- brought under the remit of JPMAM's $29 billion
multi-strategy alternative investment arm, Highbridge Capital
Management, according to citywire.co.uk.

The announcement comes following a period of speculation over the
future of the trust, with the Bluecrest board having at one point
considered liquidating the portfolio, the report notes.  JPM said
that a shareholder declaration of support in favour of continuing
to run the portfolio prompted an about-turn, the report relays.

Management of the fund will be spread across the Highbridge
investment team, which offers 12 risk-adjusted strategies led by
chief investment officer Mark Vanacore, the report discloses.

It will target investment opportunities across the asset class
spectrum, including equity, credit convertibles and capital
structure, in North American, European and Asian markets, the
report notes.

Bluecrest All Blue Fund IT will subsequently be renamed
Highbridge Multi-Strategy Fund to reflect the change, the report
says.

Simon Crinage, head of JPMAM's investment trust business,
outlined the firm's intention to continue broadening its
footprint in the alternative assets space following the mandate
win, the report notes.

"This allows us to diversify away from equity-focused strategies
and move into alternative asset classes," the report quoted Mr.
Crinage as saying.  "This is particularly important in the
current market environment, where investors are seeking sources
of return that are less correlated to traditional markets," Mr.
Crinage added.

"Given 2016 has got off to a choppy start and market turmoil is
unlikely to dissipate anytime soon, we expect to see increased
appetite for alternative assets in the investment trust sector as
professional investors increasingly seek out investment
strategies which offer lower risk for their clients," the report
notes.

At market-close on February 24, the BlueCrest AllBlue Fund was
trading at a 6.3% discount to net asset value of GBP761.9
million, the report relays.  In the five years to January 31, the
trust returned 10.26% versus the FTSE World's 46.64% in the same
time-frame, the report adds.


RANGERS FOOTBALL: Liquidators Can Appeal "Big Tax Case" Ruling
--------------------------------------------------------------
Hilary Duncanson at Press Association reports that the
liquidators of the Rangers Football Club have been given
permission to take an appeal over the so-called "big tax case" to
the UK's highest civil court.

Three judges at the Court of Session in Edinburgh have granted
BDO's request to bring an appeal against an earlier legal ruling
to the Supreme Court in London, Press Association relates.  No
date has been set for the hearing but cases are generally heard
by the London court around six to 12 months after leave to appeal
is granted, Press Association notes.

The judges four months ago decided any income derived from
employees' services is classed as earnings and subject to income
tax, Press Association recounts.

The decision was in relation to Murray Group companies, including
the liquidated company now called RFC 2012 plc, and does not
affect the current regime at Ibrox, Press Association discloses.

"We are ready to contest the appeal in the Supreme Court," Press
Association quotes an HMRC spokesman as saying.

                   About Rangers Football Club

Rangers Football Club PLC -- http://www.rangers.premiumtv.co.uk/
-- is a United Kingdom-based company engaged in the operation of
a professional football club.  The Company has launched its own
Internet television station, RANGERSTV.tv.  The station combines
the use of Internet television programming alongside traditional
Web-based services.  Services offered include the streaming of
home matches and on-demand streaming of domestic and European
games, which include dedicated pre-match, half-time and post-
match commentary.  The Company will produce dedicated news
magazine and feature programs, while the fans can also access a
library of classic European, Old Firm and Scottish Premier League
(SPL) action.  Its own dedicated television studio at Ibrox
provides onsite production, editing and encoding facilities to
produce content for distribution on all media platforms.


SOHO HOUSE: S&P Lowers CCR to 'CCC', Outlook Stable
---------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on U.K.-based private membership club and
restaurant operator Soho House & Co. Ltd. (Soho House, formerly
Soho House Group Ltd.) to 'CCC' from 'B-'.  The outlook is
stable.

As a consequence, S&P also lowered its issue rating on Soho
House's GBP152.5 million senior secured notes to 'CCC' from 'B-'.
The recovery rating is unchanged at '4', indicating S&P's
expectation of average (30%-50%) recovery in the event of a
payment default.

At the same time, S&P lowered its issue rating on the group's
super senior RCF to 'B-' from 'B+'.  The recovery rating is
unchanged at '1', indicating S&P's expectation of very high (90%-
100%) recovery in the event of a payment default.

S&P also withdrew its issue and recovery ratings on the group's
previously proposed GBP200 million senior secured notes, which
were not executed.

The downgrade reflects S&P's view that, despite rapid new club
house openings and robust revenue growth, Soho House's aggressive
debt-funded expansion strategy has weakened the group's overall
EBITDA margin.  Combined with weak liquidity, elevated leverage,
and negative cash flows, S&P views the group's capital structure
as unsustainable.

S&P estimates that Standard and Poor's-adjusted debt to EBITDA
could reach 14.6x in financial year (FY) 2015, while the EBITDAR
cash interest coverage (defined as unadjusted EBITDA before
deducting rent over cash interest plus rent) will be about 0.8x
in FY2015.  This reflects S&P's view that the group's profits
will not grow sufficiently to service its high debt and interest
costs, resulting in S&P's highly leveraged financial risk profile
assessment.

Due to substantial costs and working capital investments required
for rapid new site construction and openings, S&P expects the
majority of the RCF will be drawn, leading to weak liquidity.
The group's high capex has therefore been largely funded by
additional debt.  However, management has indicated that the
group has the flexibility to rein in expansionary capex if it
does not receive sufficient equity contribution.

Soho House plans to continue opening various new sites and
restaurants including in Amsterdam, Tokyo, and Hong Kong.
Although newly opened sites attract additional members and
spending, driving strong revenue growth, they contribute lower
earnings during the early stages of the maturity cycle.

Moreover, Soho House is increasingly involved in the construction
activities of its club houses, which exhibit minimal gross
margin. Consequently, rapid expansion significantly dilutes the
group's overall profitability, which S&P now assess as below
average.  As the group continues to accelerate its growth plans,
S&P forecasts that the group's overall EBITDA margin will remain
subdued over the next three years.  S&P therefore revised Soho
House's business risk profile to weak.  At the same time, S&P
removed its negative comparable rating analysis modifier, which
previously resulted in S&P adjusting the corporate credit rating
downward by one notch.

Nevertheless, S&P considers that Soho House benefits from its
exclusive brand, premium offerings, and a very strong and growing
membership base of 57,000 existing members, with a long waiting
list of 30,000 potential members and a very low attrition rate of
3%.

S&P's base case assumes:

   -- Very strong group revenue growth of 26% in 2016, reflecting
      resilient growth in the group's membership base and
      spending in several major new openings, as well as its
      significant involvement in constructing new club houses.

   -- Adjusted EBITDA margin of about 11% in 2016, mainly as a
      result of substantial costs associated with club house
      development, construction, and opening activities and
      relatively weak margins in newly opened clubs that dilute
      the group's overall profitability.  S&P do not expect
      profitability to materially improve in the meantime,
      considering Soho House's expansion plan.

   -- Increased planned capex of GBP59 million in 2016 on the
      back of equity injection, primarily funding new openings in
      the U.K., the U.S., and Barcelona, as well as
      refurbishments and maintenance.  S&P understands that the
      new club houses in Barcelona, Ludlow, and downtown
      Los Angeles have been fully funded.

   -- In accordance with management's commitment, capex would
      reduce to about GBP25 million in 2016 if the group does not
      receive common equity injections of about GBP34 million to
      fund those projects.

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

   -- Adjusted debt to EBITDA (after having reached about 14.6x
      in 2015) could moderate toward 12.9x in 2016 as newly
      opened clubs progress through their maturity cycle,
      contributing to EBITDA growth.  EBITDAR cash interest
      coverage will be about 0.8x-0.9x in 2016, reflecting S&P's
      expectation that earnings may not grow sufficiently in line
      with interest costs in light of accelerated expansion.

   -- Negative reported operating cash flow of GBP5 million-GBP10
      million.  However, this could turn positive if the group
      scales back its expansion plan.

The stable outlook on S&P's 'CCC' corporate credit rating
reflects its view that unless Soho House scales back its growth
projects, funds its expansionary capex and related cash needs
with common equity, or reduces debt, the group could face
difficulties in servicing its high debt level, leading to the
risk of a liquidity shortfall or a potential distressed exchange
offer.

S&P could consider a downgrade if a liquidity shortfall, a
distressed exchange offer, or violation of financial covenants
appears inevitable within the next six months.  S&P would view a
distressed exchange offer as tantamount to a default.  However,
as far as S&P knows, Soho House is currently not taking any
tangible steps in this direction.

S&P could consider raising the ratings if Soho House
substantially reins in capex and focuses on improving EBITDA
margins in its existing operations, such that its free operating
cash flow generation significantly improves.  S&P could also take
a positive rating action if the group meaningfully reduces its
debt level through asset disposal and common equity contribution,
resulting in EBITDAR cash interest coverage rising toward 1.0x a
sustainable basis.



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


* Ba1 & Ba2-Rated EMEA Cos. Show Signs of Default, Moody's Says
---------------------------------------------------------------
While early warning signs of default are most prevalent among B3-
rated EMEA high-yield companies, a number of fallen angels in the
Ba1 and Ba2 rating band are also showing warning signs, says
Moody's Investors Service today in a new report.  Fallen angels
are companies that have lost their investment grade rating. 20%
of Ba1-rated companies were riskier issuers, rising to 21.6% for
Ba2s then falling to 13% for Ba3s and 7.1% for B1s.

This report assesses the entire Moody's rated universe of high-
yield companies in EMEA using a set of 17 quantitative and
qualitative early warning signs of default.  It marks the first
time that such an assessment of the more than 500 public and non-
public high-yield entities has been aggregated into one report.

"While we might expect Ba-rated companies to show fewer early
warning signs than B-rated companies, the frequency of these
signs at the Ba1 and Ba2 level can be linked to the high
concentration of fallen angels at this level," says
Gianmarco Migliavacca, a Moody's Vice President -- Senior Credit
Officer and author of the report.

Such companies are often positioned at the higher end of the
speculative-grade spectrum because they still benefit from some
of the characteristics reflected in their previous investment-
grade status, such as large size or strong business profile.
However often the factors behind their downgrade persist and now
constitute early warning signs.

Moody's report shows that quantitative early warning signs, such
as excessive leverage or weak liquidity, are clustered around the
B3 rating band.  On the other hand, most qualitative signs, such
as exposure to a declining sector or high product concentration,
tend to be spread more evenly along the rating scale.

Companies showing multiple warning signs are more common in
sectors with a negative Moody's outlook or high intrinsic sector
risk.  These include mining, energy oilfield services, steel and
manufacturing.  However, many companies displaying warning signs
are also present in sectors with a stable outlook but
characterized by a higher concentration of LBOs, such as retail
or consumer packaged goods.



                            *********

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.


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