TCREUR_Public/160330.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

          Wednesday, March 30, 2016, Vol. 17, No. 062


                            Headlines


G E R M A N Y

GERMAN PELLETS: U.S. Unit's Municipal-Bond Investors in Limbo


G R E E C E

GREECE: Needs to Pass Bailout Measures to Unlock New Aid


I T A L Y

RHINO BONDCO: S&P Raises LT Corporate Credit Rating to 'BB'
TECNIS SPA: Placed Under Six-Month Receivership


K Y R G Y Z S T A N

KYRGYZ REPUBLIC: S&P Affirms 'B/B' Sovereign Credit Ratings


N E T H E R L A N D S

KHAMSIN CREDIT: S&P Lowers Rating on EUR15MM CLN Tranche to D


R U S S I A

MOSVODOKANALBANK OJSC: Placed Under Provisional Administration
NOVOSIBIRSK CITY: S&P Affirms 'BB+' ICR Then Withdraws Rating
VIMPELCOM LTD: S&P Revises Outlook to Stable & Affirms 'BB' CCR


S P A I N

ABENGOA SA: Files Chapter 15 Bankruptcy Petition
PASTOR CONSUMO 1: S&P Lowers Rating on Class C Notes to CC


U K R A I N E

UKRAINE: Insolvent Banks' Debt Rises to UAH55.55BB as of March 1


U N I T E D   K I N G D O M

AUSTINS: Enters Liquidation After Trading for 186 Years
EP RUGBY: Under Provisional Liquidation Following Legal Action
FRESH HORIZONS: Goes Into Voluntary Liquidation
HAWICK KNITWEAR: Administrators Deliberate on Liquidation
INSIGHT CCI: In Liquidation After Clampdown on Charities

NEWGATE FUNDING 2006-1: S&P Affirms B- Rating on Class E Notes
SAINTS BAR: Abruptly Closed and Set for Liquidation
WEATHERFORD INT'L: S&P Affirms 'BB+' CCR, Outlook Negative


                            *********


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


GERMAN PELLETS: U.S. Unit's Municipal-Bond Investors in Limbo
-------------------------------------------------------------
Brian Chappatta at Bloomberg News reports that Invesco Ltd.,
Waddell & Reed Financial Inc. and AllianceBernstein Holding LP
are among municipal-bond investors left in limbo after Louisiana
Pellets Inc., a subsidiary of German Pellets, the world's biggest
pellet maker in Germany, filed for Chapter 11 bankruptcy last
month.

After selling almost US$300 million in municipal debt since 2013,
it defaulted on some taxable bonds on Jan. 1 because its facility
in a small lumber town struggled to ramp up output to the levels
projected in initial offering documents, Bloomberg discloses.

Facing adverse weather and construction setbacks, the facility
failed to meet production expectations, Bloomberg relays.  A
sharp decline in the price of traditional energy sources like oil
and natural gas added financial strain to the parent company,
Wismar-based German Pellets, which declared insolvency overseas
last month, Bloomberg recounts.

Invesco is the largest holder of Louisiana Pellets debt, with
about US$89 million in its funds as of Dec. 31, data compiled by
Bloomberg show.  The data show the next biggest owner is Waddell
& Reed, with US$22.5 million, then AllianceBernstein with US$18.5
million.

German Pellets began financing the plant in late 2013 when oil
was still selling for about US$100 for a barrel, compared with
US$40 now, Bloomberg notes.

German Pellets is a production company based in Wismar, Germany.
The company produces various kinds of wood pellets for pellet
heating and pellet ovens and animal hygiene products for horses,
large and small animals.

An insolvency court in Schwerin, Germany, in February appointed
Bettina Schmudde of Kanzlei White & Case, as the provisional
insolvency administrator of the company.



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


GREECE: Needs to Pass Bailout Measures to Unlock New Aid
--------------------------------------------------------
Rebecca Christie at Bloomberg News reports that European
Commission Vice President Valdis Dombrovskis said Greek
authorities need to pass the measures required by their bailout
program to unlock new aid, regardless of how Europe's refugee
crisis continues to unfold.

Mr. Dombrovskis, as cited by Bloomberg, said the financial rescue
is on a separate track from European efforts to deal with the
flood of refugees coming into Greece and needs to stay on course.
He urged Greece to take steps on pensions, personal income-tax
measures and privatization to allow the completion of a review of
the rescue and receive a new cash infusion, Bloomberg relays.

"We recognize that the Greek government is facing serious
challenges and providing assistance for dealing with the refugee
crisis, but as regards program negotiations, once again the
program conditionality is set," Bloomberg quotes Mr. Dombrovskis
as saying.  He said the commission hasn't set a deadline for
concluding the review, Bloomberg notes.  Creditor delegates are
expected to return to Athens on April 2, Bloomberg states.

Greece and its bailout monitors ended the latest round of talks
on March 27 without an agreement, while citing progress on
pension and income-tax measures, Bloomberg recounts.

German Finance Minister Wolfgang Schaeuble reiterated on March 23
that Greece's reform efforts are separate from the refugee
crisis, Bloomberg relates.

Once Greece finishes its current bailout review, talks can move
ahead on the role of the International Monetary Fund and on what
kind of debt relief might be possible, Bloomberg says.



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


RHINO BONDCO: S&P Raises LT Corporate Credit Rating to 'BB'
-----------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on Italy-based holding company Rhino Bondco SpA
(Rhiag) to 'BB' from 'B' and removed it from CreditWatch, where
S&P had placed it with positive implications on Jan. 15, 2016.

S&P subsequently withdrew the rating at the company's request.
At the time of the withdrawal, the outlook was stable.

At the same time, S&P withdrew its 'B' issue rating and '4'
recovery rating (recovery prospects in the lower half of the 30%-
50% range) on Rhiag's EUR265 million fixed rate and EUR200
million floating-rate notes.

The rating actions follow the completion of U.S. replacement auto
parts provider LKQ Corp.'s acquisition on March 18, 2016, of an
intermediate holding company of Italy-based Rhiag-Inter Auto
Parts Italia SpA.  As a result, Rhiag redeemed its EUR265 million
fixed rate and EUR200 million floating-rate notes on March 24,
2016.  S&P understands the money to repay the notes came from
drawings on LKQ's revolving credit facility.

Based on S&P's group rating methodology and its view of Rhiag as
a core subsidiary of LKQ group, S&P aligned its rating on Rhiag
with that on the new parent LKQ.  S&P took into account that LKQ
acquired 100% of Rhiag and refinanced its debt as part of the
transaction.  Also, Rhiag accounts for more than 10% of LKQ's
2015 revenue and fits in with the group's strategy of expanding
its presence in Europe.

The stable outlook at the time of the withdrawal reflected the
stable outlook on the parent company LKQ.


TECNIS SPA: Placed Under Six-Month Receivership
-----------------------------------------------
ANSA reports that a Catania court on March 29 placed under a
six-month receivership 24 contracting companies held by two
businessmen who are under investigation for kickbacks to
government-owned ANAS highways construction and maintenance
company.

According to ANSA, the 24 contractors are held by Tecnis SpA,
Artemis SpA e Cogip Holding Srl, which belong to suspects Mimmo
Costanzo and Concetto Bosco Lo Giudice.

The three controlling companies are under court-ordered
receivership since Feb. 12 and are accused of "aiding and
abetting Cosa Nostra (Sicilian Mafia) members who are subject to
criminal proceedings for Mafia association and extortion", ANSA
discloses.

The two businessmen are being investigated for bid-tampering and
corruption, ANSA relays.



===================
K Y R G Y Z S T A N
===================


KYRGYZ REPUBLIC: S&P Affirms 'B/B' Sovereign Credit Ratings
-----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B/B' long- and
short-term foreign and local currency sovereign credit ratings on
the Kyrgyz Republic (Kyrgyzstan).  The outlook is stable.

                             RATIONALE

The ratings are constrained by low GDP per capita and a narrow
economic base, weak governance, and a weak external profile,
characterized by high dependence on remittances from, and trade
with, Russia, and weak monetary policy flexibility.

The ratings are supported by so far moderate government debt,
which consists mostly of official concessional loans.

Kyrgyzstan benefits from the most pluralist political system, by
far, in Central Asia.  Under the new constitution adopted in
2010, the country is a parliamentary republic.  The parliament
nominates the prime minister and forms the government.  The
recent parliamentary elections held in October 2015 ran
relatively smoothly, and S&P expects a reasonable degree of
policy continuity, with the incumbent coalition, the Social
Democrats, winning the largest share of the votes.  However, S&P
still thinks that domestic political challenges present a risk to
policy predictability, especially in light of upcoming local
elections in 2016 and the presidential election in 2017, as both
will be held in the context of weak personal income growth and
currency depreciation.  In the past, political stability in the
republic has regularly been challenged at the time of elections.

Kyrgyz GDP per capita, which S&P estimates at about $1,100 in
2016, is low by international standards.  Despite the very low
base, per capita GDP growth has been very volatile due to the
economy's high dependence on one key industry -- gold mining --
and frequent political instability, which deters investments and
reduces domestic demand.

"We expect GDP growth to slow to 3% in 2016. Risks to the growth
outlook stem from the ongoing recession in Russia and lower
growth in Kazakhstan and China, Kyrgyzstan's key trading
partners.  The impact from Russia is especially pronounced, given
that it accounts for over 30% of foreign trade and 70% of worker
remittances, which in turn contribute 30% of GDP via consumption,
private construction, and imports of goods and services.  That
said, 3.5% GDP growth reported in 2015 indicates that Russia's
slowdown has so far been mitigated by the growth of output in the
country's single biggest enterprise -- the Kumtor gold mine,
which accounts for 8%-9% of GDP and over 30% of exports.
However, gold output and export performance has been very
volatile due to fluctuations of international gold prices and
ongoing political tensions around Kumtor's ownership structure.
Growth volatility is evidenced by a drop in real GDP reported by
the government in January-February 2016, due to weak industrial
production and private construction," S&P said.

Although the government has been trying to reduce infrastructure
constraints (mainly those in transport and energy), which could
improve the country's growth potential, Kyrgyzstan's GDP
trajectory will continue to depend heavily on Russia's
performance, especially since Kyrgyzstan joined the Russia-led
Eurasian Economic Union (EEU) in August 2015.  The Kumtor mine's
continued operations will also remain important to Kyrgyzstan's
economic growth.

Owing to the narrow export base and high dependence on consumer
and fuel imports as well as remittance inflows, the country's
external position is exposed to a marked deterioration in
external financing.  This is illustrated by high current account
deficits, which averaged 20% of GDP in the past three years.
Despite moderate improvement in the current account in 2015 to
about 12% of GDP because of a significant reduction in imports,
S&P still believes that the deficit will stay at about 20%-21% on
average over 2016-2019.  This is due to constrained export
receipts because of weak global gold prices and, more
importantly, structurally weaker worker remittances from some
500,000 Kyrgyz citizens working in Russia.  Remittances to
Kyrgyzstan fell by over 30% in U.S. dollar terms in 2015,
according to data from the Russian central bank.

S&P expects the Russian economy to contract by another 1.3% in
2016 and grow only modestly thereafter.

S&P believes that Kyrgyzstan's current account deficits will
continue to be financed by a combination of external borrowings
and foreign direct investment (FDI) from China and Russia.

Kyrgyzstan has traditionally relied on official loans, most of
which have been related to public investment.  Increasing
borrowings from concessional lenders, as well as bilateral
lenders such as Russia and China, will likely increase the
country's net external debt to approximately 80% of current
account receipts (CARs) in 2016-2019, compared with roughly 30%
in 2012-2015, unless import adjustments continue or remittance
inflows recover more rapidly.  Net FDI is likely to stabilize at
about 5% of GDP over 2016-2019, given a number of confirmed
projects and Russia's commitment to support Kyrgyzstan's
accession to the EEU via a newly established $1 billion Russia-
Kyrgyz fund.

Over 2016-2019, gross external financing needs, which relate
mostly to current account payments, will likely remain high, at
slightly over 100% of CARs plus usable reserves on average, and
the country's net external liability position will weaken
significantly to over 115% of GDP or nearly 200% of CARs.
However, external analysis on Kyrgyzstan is complicated by the
poor quality of external data, including very high errors and
omissions, and stock and flow mismatches.

Given the ongoing implementation of infrastructure projects, the
country's fiscal position will likely remain relatively weak,
although S&P views infrastructure expenditure as an important
contributor to increasing the economy's production capacity.  Due
to infrastructure spending plans, S&P expects fiscal deficits to
widen to some 4.5% of GDP in 2016-2017 from an average of 2% over
2013-2015.  Although deficits depend on the pace of capital
expenditure allocation, which is difficult to forecast, S&P
believes that, in 2018-2019, recovering revenues fueled by
economic growth and higher customs receipts will allow the
government to contain fiscal deficits within an average of 3.5%
of GDP.  However, due to the significant size of the country's
informal economy, Kyrgyzstan's tax mobilization capacity is
constrained.

Because the government has relied on external foreign-currency-
denominated borrowings and the Kyrgyz som has depreciated, gross
general government debt to GDP is likely to approach 70% of GDP
on average in 2016-2019, compared with roughly 55% in 2012-2015.
However, most of the government debt consists of official funding
with concessional rates and with a long average maturity (over 25
years), with traditional official lenders China, Russia, the
International Monetary Fund, and other multilateral lending
institutions expressing willingness to continue providing
funding. Kyrgyzstan's contingent liabilities, in particular those
coming from the banking system and state-owned enterprises, are
limited, in S&P's view, since both sectors are relatively small.

The National Bank of the Kyrgyz Republic (NBKR) has little
flexibility in implementing monetary policy, in S&P's view.  NBKR
has maintained a relatively flexible exchange rate policy.  After
attempts to intervene in the fourth quarter of 2014 and first
quarter of 2015 to smooth spikes in the some exchange rate,
triggered by the collapse of the Russian ruble and a slowdown in
the economies of key trading partners, NBKR seems to have allowed
an adjustment to take place, evidenced by an almost 30% weakening
of the som against the U.S. dollar since 2015.

However, the national bank's ability to affect domestic demand or
inflation expectations is limited due to the small size of the
banking sector (below 30% of GDP) and almost nonexistent capital
markets.  The high dollarization of the financial system further
constrains the effectiveness of NBKR's policies, with foreign
currency deposits accounting for over 60% of total commercial
bank deposits and over 50% of total bank loans.

Since Kyrgyzstan relies heavily on imports of food and fuel,
inflation tends to fluctuate with global prices for these
commodities as well as exchange rate movements.  The depreciation
of the som and higher import tariffs triggered by accession to
the EEU will result in a hike of inflation to over 10% in 2016,
in S&P's view.  This will pose difficult policy choices for the
NBKR, between inflation control, supporting lending and GDP
growth, and maintaining financial stability in light of an
expected increase in nonperforming loans.

                               OUTLOOK

The stable outlook reflects S&P's view that, over the next year,
growing external risks coming from the sharp slowdown in Russia
and hence significantly weaker remittances will be
counterbalanced by the government's good access to concessional
official funding.

S&P could lower the ratings if risks to domestic political
stability rise or if political tensions around the Kumtor gold
mine result in a significant drop of exports and output or weaker
access to external concessional borrowings.  Weaker fiscal
discipline or deeper currency devaluation, resulting in net
general government debt exceeding 80% of GDP could also put
pressure on the ratings.

S&P could consider a positive rating action if it saw
improvements in external and fiscal balances well beyond S&P's
base-case assumptions.  Greater monetary policy flexibility,
resulting from stronger financial intermediation and the lower
dollarization of the financial system, could also support a
higher rating.  Finally, a higher degree of transparency and
availability of external data would also support a positive
rating action.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable.  At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee
by the primary analyst had been distributed in a timely manner
and was sufficient for Committee members to make an informed
decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee agreed that all key rating factors were unchanged.

The chair ensured every voting member was given the opportunity
to articulate his/her opinion.  The chair or designee reviewed
the draft report to ensure consistency with the Committee
decision. The views and the decision of the rating committee are
summarized in the above rationale and outlook.  The weighting of
all rating factors is described in the methodology used in this
rating action.

RATINGS LIST

                                        Rating       Rating
                                        To           From
Kyrgyz Republic
Sovereign Credit Rating
  Foreign and Local Currency            B/Stable/B   B/Stable/B
Transfer & Convertibility Assessment   B            B



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


KHAMSIN CREDIT: S&P Lowers Rating on EUR15MM CLN Tranche to D
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its rating on the
EUR15 mil. Leveraged Super Senior Portfolio CLN tranche from
Khamsin Credit Products (Netherlands) II B.V.'s series 26 to 'D
(sf)' from 'CCC- (sf)' after S&P received notice of a loss
trigger event from Portigon AG, the transaction's calculation
agent.  Khamsin Credit Products (Netherlands) II B.V.'s series 26
is a leveraged super senior synthetic collateralized debt
obligation (LSS SCDO) transaction with loss triggers that
reference the portfolio of Carnuntum High Grade I Ltd., a
European cash flow CDO backed by mainly high-grade European
residential mortgage-backed (RMBS) securities.

S&P's rating action follows its receipt of a loss trigger event
notice dated March 10, 2016.  The loss trigger event notice
states that calculation agent Portigon AG has determined that,
based on the Jan. 15, 2016, investor report for Carnuntum High
Grade I Ltd., the transaction has breached a loss trigger
threshold, leading to a loss trigger event.  According to the
transaction documents, once a loss trigger has been breached, the
noteholders have the choice to either partially de-leverage the
transaction by funding additional proceeds or to initiate an
early termination of the transaction.

S&P lowered its rating to 'D (sf)' because, in accordance with
its imputed promises criteria, S&P believes the noteholders can
no longer expect to receive the timely interest and full
principal owed to them due to the loss trigger event.

S&P will continue to review whether, in its view, the rating
assigned to the notes remains consistent with the credit support
available to them, and S&P will take rating actions as it deems
necessary.



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


MOSVODOKANALBANK OJSC: Placed Under Provisional Administration
--------------------------------------------------------------
The Bank of Russia, by its Order No. OD-1015, dated March 28,
2016, revoked the banking license from the Moscow-based credit
institution Commercial Bank Mosvodokanalbank, OJSC (OJSC CB MVKB)
from March 28, 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 Article 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" and Bank of Russia regulatory requirements issued in
accordance with the said law, equity capital adequacy ratios
below two per cent, decrease in bank equity capital below the
minimum value of the authorized capital established 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)".

OJSC MVKB placed funds into low-quality assets and did not create
loan loss provisions and provisions for other assets adequate to
the risks assumed.  As a result of meeting the supervisor's
requirements on due assessment of available risks, the credit
institution fully lost its equity capital.  Besides, OJSC CB MVKB
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
and credible notification of the authorized body about operations
subject to obligatory control.

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-1016, dated March 28,
2016, appointed a provisional administration to OJSC CB MVKB 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 the federal laws, the powers of
the credit institution's executive bodies have been suspended.

OJSC CB MVKB 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 provides for the payment of indemnities to the bank's
depositors, including individual entrepreneurs, in the amount of
100% of the balance of funds but no more than 1.4 million per one
depositor.

According to the financial statements, as of March 1, 2016, OJSC
CB MVKB ranked 532nd by assets in the Russian banking system.


NOVOSIBIRSK CITY: S&P Affirms 'BB+' ICR Then Withdraws Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB+' long-term
issuer credit rating and 'ruAA+' Russia national scale rating on
Russia's City of Novosibirsk.  S&P subsequently withdrew the
ratings because the rating engagement was not renewed.  At the
same time, S&P affirmed and then subsequently withdrew its 'BB+'
and 'ruAA+' issue ratings on the city's senior unsecured bonds.

At the time of the withdrawal, the outlook was negative.

                            RATIONALE

At the time of the withdrawal, the ratings on Novosibirsk were
constrained by what S&P sees as the city's relatively weak
economy and Russia's volatile and unbalanced institutional
framework, which limits the city's budgetary flexibility at S&P's
weak assessment.  These constraints were mitigated by
Novosibirsk's satisfactory management quality and reasonable cost
control, which result in average budgetary performance, adequate
liquidity, low debt, and very low contingent liabilities.

At the time of withdrawal, the negative outlook on Novosibirsk
solely mirrored that on Russia.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable.  At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee
by the primary analyst had been distributed in a timely manner
and was sufficient for Committee members to make an informed
decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot.

The chair ensured every voting member was given the opportunity
to articulate his/her opinion.  The chair or designee reviewed
the draft report to ensure consistency with the Committee
decision. The views and the decision of the rating committee are
summarized in the above rationale and outlook.  The weighting of
all rating factors is described in the methodology used in the
rating action.

RATINGS LIST

                               Rating         Rating
                               To             From
Novosibirsk (City of)
Issuer Credit Rating
  Foreign and Local Currency   BB+/Neg./--    BB+/Neg./--
  Russia National Scale        ruAA+/--/--    ruAA+/--/--
Senior Unsecured
  Local Currency               BB+            BB+
  Russia National Scale        ruAA+          ruAA+

Ratings Subsequently Withdrawn

Novosibirsk (City of)
Issuer Credit Rating
  Foreign and Local Currency    NR             BB+/Neg./--
  Russia National Scale         NR             ruAA+/--/--
Senior Unsecured
  Local Currency                NR             BB+
  Russia National Scale         NR             ruAA+

NR--Not rated


VIMPELCOM LTD: S&P Revises Outlook to Stable & Affirms 'BB' CCR
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised its
outlook on Netherlands-headquartered global telecommunications
operator VimpelCom Ltd. to stable from positive.  The 'BB' long-
term foreign and local currency corporate credit ratings were
affirmed.

S&P also affirmed its 'BB' issue ratings on the group's senior
unsecured debt.

The outlook revision reflects S&P's view that the closure of a
deal on merger of VimpelCom's fully owned Italian subsidiary Wind
Telecomunicazioni S.p.A. (WIND) with CK Hutchison's subsidiary 3
ztalia S.p.A., through a 50-50 joint venture (JV) between
VimpelCom and Hutchison, is now less likely to result in an
upgrade.  This is because of VimpelCom's significant hard-
currency debt exposure and the negative impact of the weaker
domestic currencies in Russia and Ukraine on VimpelCom's
operating performance.  Both countries together accounted for
around 54% of the group's total revenues in 2015, contributing
56% of total EBITDA.

The outlook revision also reflects the uncertainty related to the
potential exit of Telenor, VimpelCom's second-largest
shareholder, holding 43% of voting shares.  S&P assumes that this
exit could create uncertainty as to the VimpelCom group's
financial policy and governance.

S&P do not consider VimpelCom's liquidity as strong because S&P
believes that VimpelCom would not be able to absorb a high-impact
low-probability event without refinancing.  S&P also takes into
consideration the augmented country risk in Russia, which, in
particular, might hinder the ability of VimpelCom's Russian unit
to access the capital markets.  That said, S&P takes into
consideration that in 2015, the Russian entity of VimpelCom's
group had good access to the debt market in Russia.

The stable outlook on VimpelCom reflects S&P's view that the
benefits from the deconsolidation of WIND's debt after the
closure of the transaction with Hutchison will be offset by the
decrease of VimpelCom's EBITDA resulting from weaker domestic
currencies, in particular, in Russia and Ukraine.  In S&P's view,
the completion of the announced transaction would lead to
adjusted debt to EBITDA of around 2.0x-2.5x in 2016, reflecting
the deconsolidation of WIND, and of about 3.0x pro forma for
VimpelCom's 50% stake in the JV.

A downgrade might result if operating performance falls
significantly short of S&P's base-case expectations and results
in Standard & Poor's-adjusted leverage rising toward 3.0x in
2016, reflecting the deconsolidation of WIND.

A negative rating action may also result from a change in the
financial policy related to exit of Telenor, depending on the
strategy of the new shareholder and the impact of the exit on
VimpelCom's liquidity and capital structure.

To consider an upgrade, S&P would take into account other
important factors, such as:

   -- VimpelCom's operating performance relative to S&P's base-
      case expectations;

   -- S&P's view of VimpelCom's future financial policy;

   -- Any change in S&P's foreign currency sovereign rating on
      Russia, which could cap S&P's rating on VimpelCom; and

   -- VimpelCom's ability to sufficiently strengthen its metrics,
      including Standard & Poor's-adjusted debt to EBITDA (WIND
      having been deconsolidated) below 2.0x in 2016, to
      compensate for the slight dilution of its business risk
      profile that S&P expects post transaction.



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


ABENGOA SA: Files Chapter 15 Bankruptcy Petition
------------------------------------------------
Phil Milford at Bloomberg News reports that Abengoa SA, a Spanish
engineering-services firm that said on March 28 it needed more
time to negotiate restructuring of US$10.5 billion in debt, filed
Chapter 15 bankruptcy petitions to protect its U.S. assets.

Abengoa, based in Seville, has said more than 75% off its lenders
agreed to continue talks, helping the company, for now, to avoid
insolvency, Bloomberg relates.

"The purpose of these Chapter 15 cases is to facilitate the fair,
efficient, and centralized administration of the Spanish
proceeding in a manner that preserves and maximizes the value of
the foreign debtors," Abengoa foreign representative
Christopher Morris, as cited by Bloomberg, said on March 29 in
papers filed in Wilmington, Delaware.

As of Dec. 31, he said, Abengoa Group had about EUR16.6 billion
(US$18.6 billion) in assets and consolidated debt of EUR14.6
billion, Bloomberg notes.

According to Bloomberg, Mr. Morris said the company's problems,
in part, stem from "an insufficient upswing in the market,"
difficulty obtaining financing and "imbalances in cash flow."

Under a restructuring agreement, the company hopes to borrow as
much as EUR1.5 billion for as long as five years, Bloomberg
relays, citing the March 29 filing.

Abengoa SA is a Spanish renewable-energy company.


                        *       *       *

As reported by the Troubled Company Reporter-Europe on March 17,
2016, Moody's Investors Service downgraded the corporate family
rating (CFR) of Abengoa S.A. (Abengoa), and the senior unsecured
ratings at Abengoa, Abengoa Finance, S.A.U. and Abengoa
Greenfield, S.A., to Ca, from Caa3.  Moody's said the outlook on
the ratings remains negative.


PASTOR CONSUMO 1: S&P Lowers Rating on Class C Notes to CC
----------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'CC (sf)' from
'CCC- (sf)' its credit rating on TDA Pastor Consumo 1, FTA's
class C notes.

The downgrade follows S&P's review of the transaction considering
recent delinquency, default, and recovery levels, as well as the
transaction's current structural features, and the application of
S&P's relevant criteria.

S&P expects the default of this tranche to be a virtual certainty
based on the current undercollateralization and S&P's expectation
of recoveries even under the most optimistic collateral
performance scenario.

As indicated in S&P's previous review, there is insufficient
performing collateral available to fully repay the class C notes'
principal amount outstanding.  As of the January 2016 investor
report, the class C notes' outstanding balance is EUR8,375,632.40
and the collateral principal balance not in default is EUR
1,593,891.97.  Cumulative recoveries since closing represent
12.54% of the cumulative defaults.

To avoid a final nonpayment, the transaction must benefit from an
unprecedented recovery rise over the current defaulted assets.
In S&P's view, this is extremely unlikely to occur, even under
optimistic macroeconomic assumptions.  Therefore, and in line
with S&P's criteria, it has lowered to 'CC (sf)' from 'CCC- (sf)'
its rating on the class C notes to reflect S&P's opinion that the
issuer is unlikely to pay principal due at maturity on this class
of notes.  S&P's ratings on the notes in this transaction address
the timely payment of interest due under the rated notes, and
ultimate payment of principal at maturity of the rated notes.

TDA Pastor Consumo 1 is a Spanish asset-backed securities (ABS)
of consumer loans transaction, which Banco Pastor, S.A. (now
merged with Banco Popular Espanol S.A.) originated and currently
services.



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


UKRAINE: Insolvent Banks' Debt Rises to UAH55.55BB as of March 1
----------------------------------------------------------------
Interfax-Ukraine reports that total debt of insolvent banks on
refinancing credits issued by the National Bank of Ukraine (NBU)
as of March 1, 2016 reached UAH55.55 billion (including
interest).

The NBU said this is 8.8% up month-over-month, Interfax-Ukraine
notes.

According to Interfax-Ukraine, the central bank said that debt
increase is linked to declaring of Rodovid Bank insolvent on
February 25, 2016.

Net debt of insolvent banks totaled UAH48.75 billion and interest
accrued -- UAH 6.8 billion, Interfax-Ukraine discloses.

Payments on refinancing credits issued to now insolvent banks in
2015 amounted to UAH1.1 billion, Interfax-Ukraine says.



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


AUSTINS: Enters Liquidation After Trading for 186 Years
-------------------------------------------------------
Hanna Sharpe at Business Sale reports that Austins, one of the
oldest independent department stores in the world, has gone into
liquidation after trading for 186 years.

It survived the great Irish famine, two world wars and the Ulster
Troubles, but Austins has gone into liquidation with the loss of
53 jobs, according to Business Sale.

The retail company, which is based in Derry city centre, Northern
Ireland, was opened by Thomas Austin in 1830.  Its iconic
building was thought to house one of the oldest independent
department stores in the world, opening before both Harrods and
Macy's.

The report notes that a City Hotel Group statement said: "We
would point out that the City Hotel Group have no involvement in
the trading business conducted by Hassonzender Ltd.

Sarah McLaughlin, the chief executive of the Londonderry Chamber
of Commerce, said: "At one stage, it was the city centre and very
much the heart of people's purchasing, and that has changed, the
report relays.

"It has had a number of tough trading years. The city centre has
rejigged itself but it has had challenging times with competition
from the multinationals," Ms. McLaughlin added.

The report relays that the Northern Ireland Independent Retail
Trade Association (NIIRTA) said news of Austins' liquidation was
not just a loss for Derry, but for the wider Northern Ireland
retail sector.


EP RUGBY: Under Provisional Liquidation Following Legal Action
--------------------------------------------------------------
Planet Rugby reports that Eastern Province Rugby has been placed
under provisional liquidation following a ruling issued by the
Port Elizabeth High Court.

The High Court ruled in favor of an application of a group of
somewhat 36 players that took legal action against the union for
not paying their salaries, dating back as far as September 2015,
according to Planet Rugby.

The report notes that the Union will have until May 10 this year
to settle the outstanding debts, which has been believed to be
millions of rands.  Should they fail to rectify the outstanding
amount this ruling could move from provisional to final, the
report relays.

SA Rugby has taken over the administration of the union since
last November, however, after numerous attempts to secure
sponsorships and investors EP Rugby's woeful financial situation
remains unchanged, the report notes.

In a statement release by the EP Rugby, it stated the following:
"It is important to note that the provisional liquidation does
not impact on the day to day operations of the Pty Ltd in any
way.  This means that EP Rugby Pty Ltd will continue with our
preparations for the upcoming Currie Cup tournament that begins
on April 8.

"Further, it should be noted that the EP Rugby Union executive
have been given a mandate by the clubs during the special general
meeting on February 25 to seek business rescue in order to
stabilise the financial circumstances of the union.  We are
currently engaging with our legal advisors as well as with SA
Rugby, government and other stakeholders on this matter," the
statement added.


FRESH HORIZONS: Goes Into Voluntary Liquidation
-----------------------------------------------
Chloe Glover at The Examiner reports that Fresh Horizons, a major
social enterprise in Huddersfield, has gone into voluntary
liquidation.  And there are fears for dozens of jobs and an
historic archive of music.

Insolvency experts Brook Business Recovery Limited confirmed that
Deighton-based Fresh Horizons has ceased operations, following a
meeting with creditors at a meeting, according to The Examiner.

The report notes it is not yet known exactly why the not for
profit property management and construction firm has become
insolvent.

But its insolvency has also cast doubt over the future of the
UK's largest music lending library, the Yorkshire Music Library
(YML) at Red Doles Lane, which was managed by the organisation
and has since been forced to close, the report relays.

Troubles were first highlighted by Fresh Horizons last September,
when it had to make 20 people in its construction team redundant,
after a two-year contract to totally renovate 60 derelict and
semi-derelict homes across Kirklees and Calderdale ended, the
report notes.

But then Executive Director Andi Briggs assured people that other
aspects of the operations of the organisation, which employed a
further 40 people, were not in any danger, the report says.

However, the next month, it began the process of an insolvency
corporate voluntary arrangement, the report relays.

Sophie Anderson, the Yorkshire Music Library's co-ordinator, said
that following the meeting, the library, which opened in its
current location in 2011 had closed "immediately," the report
notes.

Ms. Anderson believes that the collection, that loaned over half
a million scores and orchestral sets to 2,000 choirs and
orchestras but was not open to the public could be taken on by a
provider in a different location, which could see it leave
Huddersfield.

"I understand that Leeds Libraries intend to take on the
collection, however I have not been given any details of a time
scale," she added.


HAWICK KNITWEAR: Administrators Deliberate on Liquidation
---------------------------------------------------------
iTV reports that administrators of Hawick Knitwear met in
Edinburgh to make an agreement which is likely to see the company
liquidated.

The firm, which was established in 1874 and employed 179 people,
went into administration in January, according to iTV.

The report notes that workers still owed wages and some pension
benefits are expected to receive their money in full.


INSIGHT CCI: In Liquidation After Clampdown on Charities
--------------------------------------------------------
Paul Bisping at Business Sale Report reports that Insight CCI, a
call center in Norwich, has gone into liquidation following a
clamp down on charities in the wake of the much-publicized death
of Olive Cooke in Bristol last year.

Insight CCI Managing Director Melvyn Hill has stated that the
closure of the call center, which primarily worked on behalf of
charities, has come about because of increased regulatory
pressure upon charitable organizations, according to Business
Sale Report.

The report notes that Mr. Hill also said negative press
surrounding the death of 92-year-old poppy seller Olive Cooke,
who received over 3,000 mailings from charities in the space of
one year and took her life in May 2015, has meant that many
charities withdrew their business from Insight CCI.

The report relays that the company struggled to survive with
debts eventually amounting to more than GBP700,000, before giving
staff a few days' notice of the closure in February.  Many of the
150 workers are still awaiting their final wages, the report
notes.

Mr. Hill added: "We thought we could ride this storm but we
couldn't.  The negative publicity turned on us, the sector, and
also charities themselves.

"Our objective has been to raise money for good causes but we
were finding the charities were afraid to make decisions and
afraid to use people like us," the report quoted Mr. Hill as
saying.

Insight CCI, which had previously worked with some of Britain's
biggest charities including Macmillan Cancer Support and Diabetes
UK, is the latest in a list of call centers to go under.

The report notes Andrew Kensall, insolvency partner at Larking
Gowen, said: "The market for charity conditions continued to
deteriorate, and by early February 2016 the directors spoke to me
again about how the CVA wasn't going to work. The only real
solution was a liquidation."

The report relays The company has assets of around GBP146,000.


NEWGATE FUNDING 2006-1: S&P Affirms B- Rating on Class E Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its credit ratings on
all classes of notes in Newgate Funding PLC series 2006-1.

The affirmations follow S&P's credit and cash flow analysis of
the transaction using information from the March 2016 investor
report and December 2015 loan-level data.  S&P's analysis
reflects these application of its U.K. residential mortgage-
backed securities (RMBS) criteria and its current counterparty
criteria.

In S&P's opinion, the performance of the loans in the collateral
pool has improved since S&P's March 4, 2013 review.  Total
delinquencies have decreased to 30.62% from 40.62%, 90+ days
delinquencies to 21.44% from 28.65%, and repossessions to 0.28%
from 1.45%.  Although the abovementioned decreases are in line
with the evolution observed in S&P's U.K. nonconforming RMBS
index, Newgate Funding 2006-1's pool has historically performed
worse than the other transactions in S&P's index.

Prepayments have remained stable since S&P's previous review.  As
of March 2016, the prepayment rate in this transaction was about
10.0%, which is higher than the 7.8% observed in our index.

Since S&P's previous review, its credit assumptions have slightly
increased at the 'AAA' rating level and decreased for lower
rating categories, driven by a higher weighted-average
foreclosure frequency (WAFF) and a lower weighted-average loss
severity (WALS).

The lower arrears levels and greater proportion of the loans in
the pools receiving seasoning credit are being offset by the
greater adjustments S&P applies to capitalized arrears, which in
turn has increased S&P's WAFF calculations.  S&P's WALS
assumptions have increased at the 'AAA' level but have decreased
at other rating levels.  The transaction has benefitted from the
decrease in the weighted-average current loan-to-value (LTV)
ratios.  However, this has been offset by the increase in S&P's
repossession market-value decline assumptions, which S&P has
increased at the 'AAA' level.

Rating        WAFF     WALS
               (%)      (%)
AAA          57.16    34.22
AA           52.48    27.45
A            47.77    17.14
BBB          39.58    11.84
BB           35.70     8.60
B            33.94     6.05

WAFF--Weighted-average foreclosure frequency.
WALS--Weighted-average loss severity.

Credit enhancement levels have increased for all rated classes of
notes since S&P's previous review.  The notes benefit from a
liquidity facility and reserve funds.  The facilities are not
amortizing as the respective cumulative loss triggers have been
breached.

The structure is currently amortizing sequentially because the
90+ day delinquencies (21.44%) are greater than the prorata
trigger of 20%.  Since arrears are decreasing, there is now a
high possibility of this trigger being cured within the next 12
months. S&P has considered this in its cash flow analysis.

S&P's credit and cash flow analysis indicates that the available
credit enhancement for the class Ca, Cb, D, and E notes is
commensurate with the currently assigned ratings.  S&P has
therefore affirmed its ratings on these classes of notes.

In S&P's credit and cash flow analysis, it considers the
available credit enhancement for the class A4, Ma, Mb, Ba, and Bb
to be commensurate with higher ratings than those currently
assigned. However, the liquidity facility and bank account
provider (Barclays Bank PLC; A-/Stable/A-2) breached the 'A-1+'
downgrade trigger specified in the transaction documents,
following S&P's lowering of its long- and short-term ratings in
November 2011. Because no remedy actions were taken following
S&P's November 2011 downgrade, its current counterparty criteria
caps the maximum potential rating on the notes in this
transaction to its 'A-' long-term issuer credit rating on
Barclays Bank.  S&P has therefore affirmed its 'A- (sf)' ratings
on the class A4, Ma, Mb, Ba, and Bb notes.

Newgate Funding series 2006-1 is a U.K. nonconforming RMBS
transaction with collateral comprising a pool of first-ranking
mortgages over freehold and leasehold owner-occupied properties.
Based on loan-level data provided for December 2016, the
collateral pool comprises 23.34% first-time buyer loans and
66.71% self-certified loans.

RATINGS LIST

Class        Rating

Newgate Funding PLC
EUR117.5 Million And GBP503.95 Million Mortgage-Backed Floating-
Rate Notes Series 2006-1

Ratings Affirmed

A4           A- (sf)
Ma           A- (sf)
Mb           A- (sf)
Ba           A- (sf)
Bb           A- (sf)
Ca           A- (sf)
Cb           A- (sf)
D            B (sf)
E            B- (sf)


SAINTS BAR: Abruptly Closed and Set for Liquidation
---------------------------------------------------
Nuneaton News reports that Saints Bar and Grill, a Nuneaton venue
that suddenly closed, is now in the hands of liquidators.

Saints Bar and Grill boarded up, with a note displayed saying it
was 'closed until further notice,' according to Nuneaton News.

But the News has now received a statement from Coventry-based
insolvency practitioners Business Recovery and Insolvency (BRI)
that has revealed that the company ceased trading on March 16 and
is expected to go into liquidation next month.

The report relays that John Rimmer of BRI said: "The director
recently sought advice on the company's position from my firm
and, unfortunately, a number of factors have had a detrimental
effect on trading results and recent initiatives intended to
increase revenues were not successful.

"The director has provided significant funding to the company out
of his own pocket over the last 18 months but the situation is no
longer sustainable," Mr. Rimmer said, the report relays.

"The director took the difficult decision to cease trading and a
meeting of the company's creditors has therefore been convened
for April 6, 2016.  It is anticipated that the company will
formally enter liquidation on that date," he added.


WEATHERFORD INT'L: S&P Affirms 'BB+' CCR, Outlook Negative
----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB+' corporate
credit and debt ratings on Ireland-based diversified oilfield
services company Weatherford International plc and revised the
outlook to negative.  The short-term corporate credit rating
remains 'B'.  The short-term corporate credit rating remains 'B'.

S&P also affirmed its 'BB+' issue-level rating on the company's
senior unsecured debt (issued by subsidiary Weatherford
International Ltd.).  The recovery rating remains '3', indicating
meaningful (higher end of the 30%-50% range) recovery in the
event of a payment default.  S&P also affirmed the 'B' short-term
rating on commercial paper issued by Weatherford International
Ltd.

Capital spending in the oil and gas exploration and production
(E&P) industry fell nearly 35% in 2015 and S&P expects another
sharp reduction this year.  Consequently, S&P has reduced its
revenue and EBITDA estimates for Weatherford, and expect credit
measures to deteriorate compared with S&P's previous forecast.
The negative outlook reflects S&P's view that funds from
operations (FFO) to debt will fall below 12% in 2016, but improve
in 2017 as commodity prices recover under S&P's price deck
assumptions.

"The ratings on Weatherford reflect our assessment of the
company's satisfactory business risk and aggressive financial
risk profiles, as well as adequate liquidity," said Standard &
Poor's credit analyst Carin Dehne-Kiley.

The negative outlook reflects S&P's view that Weatherford's FFO
to debt are weak for the rating in 2016 but should improve in
2017 as commodity prices recover under S&P's price deck
assumptions.  The negative outlook also incorporates the risk,
which S&P views as low, that the company will be unable to extend
its credit facility at similar terms.

S&P could lower the rating if it expected Weatherford's FFO/debt
to remain below 12% for a sustained period.  This would most
likely occur if revenues declined by more than S&P currently
anticipates and the company's margins did not improve.

S&P could revise the outlook to stable if it expected Weatherford
to bring and maintain FFO/debt above 12% for a sustained period,
which would most likely occur if the company were able to improve
operating margins in conjunction with an industry recovery.


                            *********

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 * * *