TCREUR_Public/160331.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 31, 2016, Vol. 17, No. 063



OUTOKUMPU OYJ: Moody's Assigns B3 CFR, Outlook Positive


BELVEDERE SA: Makes Early Repayment of Debt to Creditors


S-CORE 2007-1: Fitch Affirms 'Csf' Ratings on 3 Note Classes


GREECE: 40% of Hotels Face Bankruptcy Threat, SETKE Pres. Says


AWAS AVIATION: Moody's Retains Ba2 Ratings on 2 Loans
HARVEST CLO XV: S&P Assigns Prelim. B- Rating to Class F Notes


CB ADMIRALTEISKY: Liabilities Exceed Assets, Inspection Shows
ONORATO ARMATORI: Moody's Assigns Ba3 CFR, Outlook Stable
PAGLIERI SELL: Receivers Seek Potential Buyers for Business
POPOLARE DI VICENZA: Unicredit in Talks Over Capital Raising


GRAIN INSURANCE: S&P Revises Outlook to Pos. & Affirms 'B' CCR


GSC EUROPEAN CDO I-R: S&P Cuts Rating on Class E Notes to B+


NORSKE SKOGINDUSTRIER: Moody's Affirms Caa3 CFR, Outlook Neg.


FIRST CONTAINER: Fitch Assigns Final 'BB' Rating to RUB5BB Notes
SMARTBANK JSC: Placed Under Provisional Administration


ABENGOA SA: Chapter 15 Case Summary
ABENGOA SA: Files for Chapter 15 Bankruptcy in the U.S.
ABENGOA SA: Joint Administration of Chapter 15 Cases Sought
GAS NATURAL: S&P Affirms 'BB+' Rating on 2 Hybrid Instruments


DUFRY AG: S&P Affirms 'BB' CCR & Revises Outlook to Stable

U N I T E D   K I N G D O M

BHS GROUP: Middleston Grange at Risk of Closure Following CVA
TATA STEEL: To Explore Sale of U.K. Business, Jobs at Risk



OUTOKUMPU OYJ: Moody's Assigns B3 CFR, Outlook Positive
Moody's Investors Service has assigned a first time issuer
corporate family rating (CFR) of B3 and B3-PD probability default
rating (PDR) to Finland-based leading stainless steel
manufacturer Outokumpu Oyj.  Concurrently, Moody's assigned B2
ratings to the EUR250 million senior secured fixed rate notes due
September 2019 issued by Outokumpu Oyj.  The outlook on the
ratings is positive.

"The B3 CFR reflects the company's high Moody's-adjusted leverage
and the company being free cash flow negative at the end of
2015", said Hubert Allemani, a Vice President -- Senior Analyst
at Moody's.  "However, we expect that Outokumpu will turnaround
its financial performance achieving better cash flow protection
metrics in 2016.  We also note Outokumpu's leading market
positions in both Europe and the US, as well as our expectations
that the company will improve the profitability of its Coil
Americas, while continuing the restructuring efforts throughout
the group," added Mr. Allemani.

Moody's believes that Outokumpu's management has levers to pull
to improve its profitability over the next two years while
maintaining its financial flexibility.

                        RATINGS RATIONALE

Outokumpu's B3 rating reflects (1) solid business profile
supported by geographical diversification and wide product mix;
(2) positive market fundamentals expected over the next two years
in its two main markets of Europe and NAFTA area; (3) leading
market shares; (4) well invested manufacturing facilities; (5)
stable and supportive shareholders structure including a 26%
indirect stake of the Government of Finland (Aaa, negative)
through Solidium Oy; and (6) conservative financial policy.

However, the rating is constrained by (1) the high level of
competition from Asian manufacturers in both Europe and the US;
(2) low profitability with negative EBIT and negative free cash
flow over the past three years; (3) high leverage as measured
after Moody's standard adjustments of 19.4x as of Dec. 31, 2015;
and (4) weak debt maturity profile with a large portion of short-
term maturities.

Moody's has rated Outokumpu's outstanding senior secured fixed
rate notes at B2, one notch above the CFR, in line with Moody's
loss given default (LGD) methodology, reflecting the benefit from
the security package, the guarantees in place and their priority
in right of payment against the existing unsecured indebtedness.

Moody's believes that the restructuring programs enacted by the
company over the past three years and including closure of
capacity in Europe will bear fruits over the next two years.
Outokumpu's underlying markets are expected to grow in 2016,
albeit at a low rate of 1% to 2% in both EMEA and NAFTA.  Moody's
believes that the growth in demand would support the company's
profitability improvement, particularly in Europe where the
market is protected since mid-2015 by anti-dumping duties on
imports of cold rolled coils (CRC) from China and Taiwan.  As CRC
is Outokumpu's core product, Moody's expects that the company
will be able to capitalize on the slowdown of Chinese imports to
regain market shares in Europe.

Finally, Moodys's expects that the gains realised through the
restructuring and cost efficiency measures will allow the company
to improve its cash generation and that the company will be free
cash flow positive or neutral this year.

Outokumpu benefits from well-invested manufacturing facilities
with a low cost base.  The Tornio, Finland, manufacturing plant
benefits from its integration into ferrochrome and from low
energy prices.  Capex should be limited to maintenance in the
next two years and with the ongoing reduction of working capital
requirements, Moody's expects that the company will improve its
retained cash flow (RCF) to debt ratio to a level close to 10% by
the end of 2017 (compared to -11.8% in 2015).  Given the amount
of annual capex spending is expected to remain limited to about
EUR150-200 million p.a., and that the company does not pay any
dividend, Free Cash Flow should become positive in 2016 and
enable the company to gradually reduce its gross debt over the
next two years.

The company has made significant efforts to reduce its reported
debt to equity ratio to 69% in 2015 from 93% in 2014 by using the
proceeds of the divestments of Shanghai Krupp Stainless (SKS) and
Fischer Mexicana to repay its financial debt.  However, once
adjusted for Moody's standard adjustments of pension liabilities
and operating leases, Outokumpu's leverage is high at close to
20x adjusted 2015 EBITDA.  While about 5x of leverage is owing to
pension and operating lease adjustments, gross leverage remains
very high and outside the range expected for a B3 CFR.  However,
Moody's expects that the company will reduce its leverage to a
level close to 5.5x by 2017 driven by the improved EBITDA and
expected reduction in gross debt, which would place the company's
CFR more comfortably into the single B rating category.

                        LIQUIDITY PROFILE

Outokumpu's liquidity position is adequate in the short term but
is weakened by negative cash generation.  As of Dec. 31, 2015,
Outokumpu's liquidity consisted of EUR186 million of cash (EUR156
million being unrestricted), and a total of EUR879 million
available under various revolving credit facilities.  The company
has access to a dual-tranche syndicated revolver of a total
amount of EUR800 million, EUR655 million maturing in February
2019 and EUR145 million maturing in February 2017.  In addition,
Outokumpu has 4 bilateral revolving facilities granted by Nordic
banks of a total amount of EUR403 million.  Finally, the group
uses a Finnish EUR800 million commercial paper program to manage
its short-term needs.  As of Dec. 31, 2015, EUR339 million were
outstanding (down to EUR264 million as at March 14, 2016).  The
commercial paper has a maturity below 1 year and is therefore
assumed rolled-over to maintain adequate liquidity.

Outokumpu has a short-term maturity profile with a total of
EUR547 million of debt due within one year, that mainly consists
in commercial paper for EUR339 million and secured bond for
EUR150 million.  Because of the company's strong access to the
capital market (particularly in the Nordic region) it should be
able to refinance the maturing notes this year.


The positive outlook reflects Moody's expectations that Outokumpu
will be able to improve its EBIT and EBITDA over the next year
such that credit metrics for profitability, cash flow and Moody's
adjusted leverage are more in line with the single B rating
category.  However, the outlook could be stabilized if Moody's
does not see any significant deleveraging or the company is
unable to improve its profitability.

What Could Change the Rating UP

Moody's could upgrade the ratings if (1) the company successfully
runs its restructuring programs and its commercial ramp-up in the
US, such that EBIT margin trends above 2%; (2) EBIT to interest
trends towards 1.5x on a sustainable basis; (3) the company
maintains an adequate liquidity profile with improving debt
maturity profile; and (4) Moody's adjusted leverage decreases
sustainably towards 6.5x within the next 12 to 18 months with a
clear indication that the trend is towards 5.5x.

What Could Change the Rating DOWN

The ratings could suffer negative pressure if the company fails
to deliver improvements in its US activity or if the liquidity
profile deteriorates so that the company is unable to maintain an
adequate liquidity profile.


The principal methodology used in these ratings was Global Steel
Industry published in October 2012.

Headquartered in Espoo, Finland, Outokumpu is a leading global
manufacturer of cold-rolled stainless steel.  It holds the lead
position in Europe with a market share of 30% and number two
market position in North America, with a market share of 21%.
With a total revenue in 2015 of EUR6.4 billion and more than
11,000 employees, Outokumpu is one of the largest Finnish


BELVEDERE SA: Makes Early Repayment of Debt to Creditors
According to Bloomberg News' David Whitehouse, Le Figaro, citing
Marie Brizard CEO Jean-Noel Reynaud, reports that the company,
formerly known as Belvedere SA, has decided to make early
repayment of EUR70 million to creditors,

Le Figaro said the Dijon court has allowed the company to exit
recovery plan early as a result of the payment.

Belvedere SA -- is a France-based
company engaged in the production and distribution of beverages.
The Company's range of products includes vodka and spirits,
wines, and other beverages, under such brands as Sobieski,
William Peel, Marie Brizard, Danzka and others.  Belvedere SA
operates through its subsidiaries, including Belvedere Czeska,
Belvedere Scandinavia, Belvedere Baltic, Belvedere Capital
Management, Sobieski SARL and Sobieski USA, among others.  It is
present in a number of countries, such as Poland, Lithuania,
Bulgaria, Denmark, France, Spain, Russia, Ukraine, the United
States and others.  In addition, the Company holds a minority
stake in Abbaye de Talloires, involved in the hotel and wellness

Belvedere filed for pre-insolvency protection in 2008 after
breaching the floating rate note covenant by repurchasing more of
its stock than terms allowed.  In July 2011, a commercial court
in Nimes in southeastern France granted the company creditor


S-CORE 2007-1: Fitch Affirms 'Csf' Ratings on 3 Note Classes
Fitch Ratings has affirmed the notes of S-Core 2007-1 GmbH as

  EUR6.8 million class C secured notes (ISIN: XS0312779068):
  affirmed at 'Csf'; Recovery Estimate (RE): revised to 0% from

  EUR12.4 million class D secured notes (ISIN: XS0312779142):
  affirmed at 'Csf'; RE: 0%

  EUR19.7 million class E secured notes (ISIN: XS0312779225):
  affirmed at 'Csf'; RE: 0%

The transaction is a cash securitization of certificates of
indebtedness (Schuldscheindarlehen) to German SMEs originated and
serviced by Deutsche Bank AG (A+/Negative/F1+).


S-Core 2007-1 reached scheduled maturity in April 2014. The
companies' remaining Schuldschein loans securitized in the pool,
which were not restructured or extended previously, became due
shortly before the scheduled maturity date. The class C, D and E
notes are still outstanding. As of the last investor report
(January 2016), two companies remained in the portfolio.
According to the manager, a waiver of debt has been agreed with
one of the companies and no further repayments will be received.

The maturity of the other company's loan has been extended
repeatedly. As of the January 2016 report, the loan's outstanding
notional equalled EUR1.5 mil. Fitch does not have information on
the repayment prospects of this company, and given the unsecured
nature of the loan, the agency does not expect any repayment of
the outstanding class C, class D and class E notes. This is
reflected in the 'Csf' ratings.

For the class C notes Fitch has revised its RE to 0% from 5% to
reflect the lack of information about repayment prospects and the
short time to legal final maturity in April 2016. For the
remaining notes the REs were maintained at 0%.

Fitch assigns RE to all notes rated 'CCCsf' or below. REs are
forward-looking recovery estimates, taking into account Fitch's
expectations for principal repayments on a distressed structured
finance security.


After scheduled maturity, the transaction is primarily sensitive
to repayments from underlying defaulted or restructured loans.


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


Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pool and the transaction. There were no findings that were
material to this analysis. Fitch has not reviewed the results of
any third party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing

Fitch did not undertake a review of the information provided
about the underlying asset pool ahead of the transaction's
initial closing. The subsequent performance of the transaction
over the years is consistent with the agency's expectations given
the operating environment and Fitch is therefore satisfied that
the asset pool information relied upon for its initial rating
analysis was adequately reliable.

Overall Fitch's assessment of the information relied upon for the
agency's rating analysis according to its applicable rating
methodologies indicates that it is adequately reliable.


GREECE: 40% of Hotels Face Bankruptcy Threat, SETKE Pres. Says
CIJ Journal reports that Constantinos Brentanos, president of
Greece's Confederation of Tourism Accommodation Entrepreneurs of
Greece (SETKE) said in a press conference, held on the occasion
of the annual general meeting of the association, that 40% of
hotels are threatened by bankruptcy because of tax obligations,
operating expenses, salaries and other running costs.

According to CIJ Journal, Mr. Brentanos forecasts that during
2016, the tourism industry will produce only losses because of
the threat of terrorist attacks in other countries and because of
the refugee crisis.


AWAS AVIATION: Moody's Retains Ba2 Ratings on 2 Loans
Moody's Investors Service has corrected the issuer information
for ratings assigned to two secured term loans previously
identified as having been issued by AWAS Aviation Capital Limited
(AWAS), to reflect that the loans were in fact issued by AWAS
subsidiaries, with the guarantee of AWAS.  The Ba2 ratings
assigned to the two loans, issued by AWAS Finance Luxembourg S.A.
in June 2010 and AWAS Finance Luxembourg 2012 S.A. in July 2012,
are unchanged by this correction.  AWAS' Ba3 corporate family
rating and stable rating outlook are also unaffected.

                         RATINGS RATIONALE

In May 2010, Moody's assigned a Ba2 rating to a proposed AWAS
six-year secured term loan.  When the transaction closed in June
2010, the loan was actually issued by AWAS Finance Luxembourg S.a
r.l. (AWAS LU; now known as AWAS Finance Luxembourg S.A.), with a
full guarantee from AWAS.  Due to an oversight, Moody's did not
reflect the change in the identity of the issuer.  This has now
been corrected by the withdrawal of the Ba2 rating on the secured
term loan previously assigned to AWAS, and the assignment of a
Ba2 backed term loan rating to the secured term loan issued by

In June 2012, Moody's assigned a prospective rating of (P)Ba2 to
a proposed AWAS six-year secured term loan.  When the transaction
closed, the loan was actually issued by AWAS Finance Luxembourg
2012 S.A. (AWAS LU 2012), with a full guarantee from AWAS.
Moody's assigned a definitive Ba2 rating to the secured term loan
in August 2012.  Due to an oversight, Moody's did not reflect the
change in issuer.  This has now been corrected by the withdrawal
of the Ba2 secured term loan rating previously assigned to AWAS,
and the assignment of a Ba2 backed term loan rating to the
secured term loan issued by AWAS LU 2012.

These corrections do not affect the Ba2 ratings assigned to the
two term loans.  The ratings of both loans reflect their
seniority in the respective borrower's capital structure, the
strength of the loans' collateral pledge and loan covenants, and
the credit profile of AWAS as guarantor.  The ratings are one
notch higher than AWAS' Ba3 corporate family rating to reflect
that the loans' terms provide meaningfully lower risk of loss to
secured creditors, based on the pledge of ownership interests of
aircraft owning subsidiaries, as well as security assignments of
associated aircraft leases, and loan-to-value covenants that are
tested semi-annually based on three independent aircraft

The guarantees provided by AWAS meet Moody's standard for full
credit substitution.  AWAS' Ba3 corporate family rating is based
on its strong operating cash flow, solid competitive positioning
as a mid-tier commercial aircraft leasing company, and acceptable
balance among its portfolio risk exposures (geographic, aircraft
type and model, and customer).  Credit constraints include the
company's high reliance on secured funding that limits its
operational and financial flexibility, Moody's expectation that
the company's leverage will increase moderately over the
intermediate term, and uncertainty regarding the company's
ultimate ownership.

The stable outlook reflects Moody's expectation that AWAS will
continue to achieve solid profitability, but that leverage will
moderately increase as a result of distributions to the company's

AWAS' corporate family rating could be upgraded if the company
continues recent strength in operating results, leverage (D/TNW)
declines to 2.5x or lower, it maintains balanced fleet
composition and risk characteristics, and effectively manages
liquidity considering its financing requirements and growth
objectives. Further funding diversification that materially
reduces the reliance on secured debt would strengthen AWAS'
prospects for a rating upgrade.

AWAS' corporate family rating could be downgraded if
profitability materially declines, leverage (D/TNW) increases to
more than 3.5x given current fleet risk characteristics, or if
liquidity weakens.

AWAS Aviation Capital Limited, headquartered in Dublin, Ireland,
is a commercial aircraft leasing company.

HARVEST CLO XV: S&P Assigns Prelim. B- Rating to Class F Notes
Standard & Poor's Ratings Services has assigned preliminary
credit ratings to Harvest CLO XV Designated Activity Company's
class A, B, C, D, E, and F senior secured floating-rate notes.
At closing, Harvest CLO XV will also issue unrated subordinated

Harvest CLO XV is a cash flow collateralized loan obligation
(CLO) transaction securitizing a portfolio of primarily senior
secured loans granted to speculative-grade corporates.  3i Debt
Management Investments Ltd. will manage the transaction.

Under the transaction documents, the rated notes will pay
quarterly interest unless a frequency switch event occurs.
Following this, the notes will permanently switch to semi-annual
interest payments.

The portfolio's reinvestment period will end four years after
closing, and the portfolio's maximum average maturity date will
be eight years after closing.

On the effective date, S&P understands that the portfolio will
represent a well-diversified pool of corporate credits, with a
fairly uniform exposure to all of the credits.  Therefore, S&P
has conducted its credit and cash flow analysis by applying its
criteria for corporate cash flow collateralized debt obligations.

In S&P's cash flow analysis, it has used the portfolio target par
amount of EUR400.00 million, the covenanted weighted-average
spread of 4.20%, and the covenanted weighted-average recovery
rates at each rating level.

Elavon Financial Services Ltd. (AA-/Stable/A-1+) will be the bank
account provider and custodian.  At closing, S&P anticipates that
the participants' downgrade remedies will be in line with S&P's
current counterparty criteria.

At closing, S&P understands that the issuer will be in line with
its bankruptcy remoteness criteria.

Following S&P's analysis of the credit, cash flow, counterparty,
operational, and legal risks, S&P believes its preliminary
ratings are commensurate with the available credit enhancement
for each class of notes.


Harvest CLO XV Designated Activity Company

EUR413 mil senior secured floating-rate deferrable notes

                                       Prelim Amount
Class                 Prelim Rating     (mil, EUR)
A                     AAA (sf)           232
B                     AA (sf)            54
C                     A (sf)             26
D                     BBB (sf)           21
E                     BB (sf)            25
F                     B- (sf)            13
Sub                   NR                 42

NR--Not rated


CB ADMIRALTEISKY: Liabilities Exceed Assets, Inspection Shows
The provisional administration of CB Admiralteisky LLC appointed
by Bank of Russia Order No. OD-2406, dated September 11, 2015,
due to the revocation of its banking license, encountered an
obstruction of its activity starting the first day of performing
its functions.

The management of CB Admiralteisky LLC failed to submit to the
provisional administration loan agreements for loans recorded on
the bank's balance sheet in the amount of about 1.1 billion
rubles, which can point to an attempt to conceal episodes of
asset diversion from the bank.

The provisional administration has revealed transactions which
resulted in a deterioration of the bank's financial standing,
lost of liquid funds in the amount exceeding 510 million rubles,
and transactions in the amount of about 1.6 billion rubles aimed
at diverting the bank's assets, among other things, by
transferring 1.5 billion rubles as payment for non-residential
premises which have not subsequently been registered as the
bank's property.

According to the estimate by the provisional administration, the
assets of CB Admiralteisky LLC do not exceed 6.6 billion rubles,
whereas the bank's liabilities to its creditors amount to 8.5
billion rubles.

On February 1, 2016, the Court of Arbitration of the city of
Moscow ruled to recognize CB Admiralteisky LLC insolvent
(bankrupt) and initiate bankruptcy proceedings with the state
corporation Deposit Insurance Agency appointed as a receiver.

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

ONORATO ARMATORI: Moody's Assigns Ba3 CFR, Outlook Stable
Moody's Investors Service has assigned a definitive Ba3 Corporate
Family Rating and Ba3-PD Probability of Default Rating to Italian
ferry operator Onorato Armatori S.p.A. ("Moby" or "the company").
Concurrently, Moody's has assigned a definitive Ba2 rating, with
a loss given default (LGD) assessment of LGD3, 36%, to the
company's EUR300 million senior secured notes due 2023.  The
outlook on all ratings is stable.


Issuer: Onorato Armatori S.p.A.

  Corporate Family Rating, Assigned at Ba3
  Probability of Default Rating, Assigned at Ba3-PD
  Senior Secured Notes due 2023, Assigned at Ba2

Outlook Action:

  Outlook, Remains Stable

                         RATINGS RATIONALE

The action follows Moby's successful completion of the issuance
of EUR300 million senior secured notes on Feb. 11, 2016.  In line
with expectations, the company also originated a EUR200 million
term loan with a 2021 maturity and a EUR60 million revolving
credit facility due 2021.  Pro forma of this refinancing
transaction, Moby's capital structure is in line with Moody's
initial expectations.  Moody's notes however the higher coupon to
be paid on the bond (7.75%) compared to initial expectations.
While interest coverage metrics are weaker than expected, Moody's
believes that the company's credit metrics are still well in line
with the Ba3 CFR.

Consequently, Moody's definitive ratings for the CFR and senior
secured notes are in line with the provisional ratings assigned
on Feb. 1, 2016.  Moody's rating rationale was set out in a press
release on that date.  The final terms of the notes are also in
line with the drafts reviewed for the provisional instrument
rating assignment.

                        RECENT DEVELOPMENTS

Moody's notes that competition has recently increased on the
Sardinian ferry market.  The recovery of the Sardinian passenger
ferry market in 2015 has prompted ferry operator Grimaldi Lines
("Grimaldi", unrated) to open new routes this year between
mainland Italy and Sardinia.  Moody's further notes that Grimaldi
initiated an aggressive pricing policy in order to gain market
shares in Sardinia, which is Moby's main market.  While this is
credit negative for Moby, this commercial battle with the
Grimaldi group is mitigated by the current low bunker price
environment which is expected to support the company's
profitability in the next 12 to 18 months.

Regarding the current European Commission (EC) investigation on
Moby's potential unauthorized state subvention, Moody's notes
that there is no new development since the first assignment of
the rating.  A final decision is expected in mid-2016.  While
Moby may be required to reimburse part of the received
subvention, the Tirrenia-CIN deferred payments due by Moby are
conditional to the receipt of the full subvention and the EC
approval.  Moody's will closely monitor the potential
implications of the EC decision.

                          RATING OUTLOOK

The stable rating outlook reflects Moody's expectation that
Onorato Armatori will maintain its competitive positioning and
continue to improve its profitability, notably through the
achievement of cost savings expected as part of the integration
of Tirrenia-CIN.  The stable outlook also reflects Moody's
expectations of continued positive free cash flow generation.


Moody's could upgrade the ratings if Onorato Armatori maintains a
solid positive free cash flow generation.  In addition, from a
quantitative perspective, an adjusted (gross) debt/EBITDA
sustainably below 3.5x could trigger an upgrade.

Conversely, Moody's could downgrade the ratings if Onorato
Armatori's free cash flow generation becomes negative for a
prolonged period of time as a result of a weakened operating
performance or higher-than-expected capital expenditures.
Quantitatively, an adjusted (gross) debt/EBITDA ratio trending
towards 4.5x could trigger a downgrade.  A weakening in the
company's liquidity profile could also exert downward pressure on
the rating.


The principal methodology used in these ratings was Global
Shipping Industry published in February 2014.

Headquartered in Milan, Italy, Onorato Armatori S.p.A. is a
maritime transportation services company that focuses primarily
on passengers and freight services in the Tyrrhenian Sea, mainly
between continental Italy and Sardinia.  Through the 100%
ownership of Moby S.p.A. and Tirrenia-CIN, the group operates a
fleet of 63 ships.  In the last 12 months September 2015, the
company recorded, pro forma revenues of EUR614 million and pro
forma EBITDA of EUR162 million.

PAGLIERI SELL: Receivers Seek Potential Buyers for Business
Mario Leonardo Marta, the Official Receiver of Paglieri Sell
System SpA (Bankruptcy no. 7/2016), announced that a procedure
has been initiated to select on the market parties interested in
purchasing the inventory of products and the business owned by
the bankrupt company, concerning the marketing of perfumery and
cosmetic products and the supply of logistic and merchandising

Interested parties must send an e-mail to and to
ask the Official Receiver's office to provide the terms and
conditions for accessing the virtual data room containing the
information on the selection procedure conducted on the market
and on the minimum conditions for sale of the inventory and the
business owned by the bankrupt company.

POPOLARE DI VICENZA: Unicredit in Talks Over Capital Raising
Rachel Sanderson at The Financial Times reports that UniCredit,
Italy's largest bank by assets, is in talks with the government
in Rome about seeking support for a EUR2 billion capital raising
at mutual bank Popolare di Vicenza, a deal seen as a crucial test
of investor confidence in Italy's lenders.

While nominally small in value, UniCredit's underwriting of the
April cash call demanded by the European Central Bank supervisor
at Popolare di Vicenza, an unlisted regional mutual bank engulfed
by a corruption scandal, is considered the latest "flash point"
for the system as an indicator of investor confidence in Italy's
banking sector, the FT says.

Mediobanca analysts wrote this week that any concerns about
UniCredit's underwriting of the Vicenza capital raising or Intesa
Sanpaolo's underwriting a EUR1 billion cash call at another
regional bank Veneto Banca due later in the summer, "could revive
systemic risk on Italian banks", the FT relays.

According to the FT, four people familiar with the matter said
the talks with the government are focused on the terms of
UniCredit's underwriting agreement and the possible use by the
bank of a material adverse change clause, a legal loophole that
could allow UniCredit to back out of its underwriting should the
market environment worsen.

The people said UniCredit is seeking support from the state in
drumming up support from Italian institutional investors and
bankers, the FT notes.

                       Fund Raising Plan

As reported by the Troubled Company Reporter-Europe on March 7,
2016, Reuters related that shareholders in Italy's Banca Popolare
di Vicenza begrudgingly approved a crucial fundraising plan
that includes a rights issue of up to EUR1.75 billion (US$1.9
billion) to avert supervisors taking control of the troubled
bank.  The bank must raise the cash by May to comply with ECB
demands that it meet minimum capital thresholds, having posted a
EUR2.2 billion loss in 2014-2015 due to a balance-sheet clean-up,
Reuters disclosed.

Banca Popolare di Vicenza is an Italian cooperative bank.


GRAIN INSURANCE: S&P Revises Outlook to Pos. & Affirms 'B' CCR
Standard & Poor's Ratings Services revised its outlook on
Kazakhstan-based Grain Insurance Co. JSC to positive from stable.
The 'B' long-term corporate credit rating and 'kzBB+' Kazakhstan
national scale rating on the company were affirmed.

The outlook revision reflects S&P's view that Grain Insurance is
improving its enterprise risk management (ERM) and tightening
control over key risks.  S&P understands that the company made
some progress in formalizing its risk management process in 2015.
S&P understands that the company is planning to develop internal
limits and controls over catastrophe exposures, but S&P thinks
these efforts will take some time.  In particular, there are no
controls on accumulation risk and no modeling of catastrophe
risk. S&P still therefore considers Grain Insurance's ERM as
weak, but believe it could improve and stop being a negative
assessment in S&P's analysis.

The ratings on Grain Insurance continue to reflect S&P's views of
its highly vulnerable business risk profile and weak financial
risk profile.

Grain Insurance has a weak competitive position, in S&P's view,
mainly stemming from its very small size in terms of premium
written and its predominant focus on a single sector.  This
exposes it to potentially material legislative or industry
changes, particularly due to its dependence on crop insurance and
its newly created business, including loan insurance.  Also, S&P
thinks Grain Insurance's competitive position relies heavily on
long-term business relationships that its shareholders have
established, which creates some vulnerability.

Despite its established market position in agricultural insurance
(especially in insuring crop risks and grain elevators), Grain
Insurance's domestic market share remains very low -- at 0.6% in
2015 or Kazakhstan tenge (KZT) 1.3 billion (US$5.8 million) --
and is unlikely to surpass 1% in 2016.  Grain Insurance's
operating results are highly volatile and will likely remain so
in 2016-2017.  As an agricultural insurer with no stable
reinsurance coverage, Grain Insurance is not immune to large
losses.  S&P anticipates that net profit in 2016-2017 will be
close to KZT360 million-KZT380 million.  Return on equity and
return on revenues should reach 10% and 30%, respectively, in
2016 under S&P's base-case scenario.  S&P expects that the
company's net combined (loss and expense) ratio will be close to
70%, which compares with ratios of other insurance companies in
the region.

S&P regards Grain Insurance's capital and earnings as lower
adequate and cap S&P's assessment at this level based on the
company's small capital base of US$10 million as of the year-end
2015.  Grain Insurance's capital adequacy significantly exceeds
S&P's threshold for the 'AAA' level under its risk-based capital
model, and S&P do not anticipate that it will change materially
in 2015-2016.

The positive outlook on Grain Insurance reflects S&P's view that
the company is in the process of formalizing and enhancing its
ERM practices.  Grain Insurance is also developing its franchise
in new lines of business, such as loan insurance.  S&P expects
that the company will continue to improve ERM over the next 12-18
months.  In S&P's view, the company's risk-based capital adequacy
supports the current rating and will remain extremely strong over
the next 12 months, despite Grain Insurance's weak competitive
position and significant proportion of high-risk assets.

A positive rating action within the next 12-18 months would
depend on improvements in Grain Insurance's ERM, notably
tightening and further enhancement of risk management practices
linked to catastrophe and accumulation risks.  In addition, S&P
would look for evidence of a sound and stable operating
performance, particularly a strengthening track record in the
company's newer lines of business.

S&P could revise the outlook to stable within the next 12-18
months if S&P sees that Grain Insurance's risk management is
formalized but is not fully implemented and S&P sees no controls
of accumulation and catastrophe risks.  S&P could take a negative
rating action if within the next 12 months it observes
significant weakening in the credit quality of Grain Insurance's
investment portfolio or S&P witness marked deterioration in the
company's competitive position in agricultural insurance,
particularly with volatile results in crop and loan insurance.


GSC EUROPEAN CDO I-R: S&P Cuts Rating on Class E Notes to B+
Standard & Poor's Ratings Services raised its credit ratings on
GSC European CDO I-R S.A.'s class C1, C2, and D notes.  At the
same time, S&P has lowered its rating on the class D notes.

The rating actions follow S&P's credit and cash flow analysis of
the transaction using data from the latest trustee report (and
recent note valuation report dated March 3, 2016) and the
application of S&P's relevant criteria.

According to S&P's analysis, the rated liabilities have
significantly deleveraged since S&P's June 11, 2014 review, which
has raised the credit enhancement for all classes of notes.  The
class A1, A2, A3, and B notes have fully repaid and the class C1
and C2 notes have repaid more than EUR23 million of their
aggregate original outstanding principal balance.

At the same time, however, the portfolio has become more
concentrated in terms of the number of loans/obligors in the
underlying portfolio over the same period.  Currently, there are
16 distinct obligors that comprise the underlying portfolio, with
approximately 3.7% of the portfolio comprising long-dated assets.

"We factored in the above observations and subjected the capital
structure to our cash flow analysis, based on the methodology and
assumptions outlined in our updated corporate collateralized debt
obligation (CDO) criteria, to determine the break-even default
rate (BDR) for each class of notes.  The BDR represents our
estimate of the maximum level of gross defaults, based on our
stress assumptions, that a tranche can withstand and still fully
repay the noteholders.  We used the reported portfolio balance
that we considered to be performing, the principal cash balance,
the current weighted-average spread, and the weighted-average
recovery rates that we considered to be appropriate.  We applied
various cash flow stress scenarios using various default
patterns, levels, and timings for each liability rating category,
in conjunction with different interest rate and currency stress
scenarios," S&P said.

S&P also applied its supplemental tests, which address event and
model risk.  These tests assess whether a CDO tranche has
sufficient credit enhancement to withstand the default of a
certain number of the largest obligors at different liability
rating levels.

S&P's credit and cash flow analysis indicates that all classes of
notes are able to achieve higher ratings than those currently
assigned.  S&P has raised to 'AAA (sf)' from 'AA (sf)' its
ratings on the class C1 and C2 notes as the results from S&P's
analysis indicate that the available credit enhancement for these
classes of notes is commensurate with 'AAA' ratings.  At the same
time, S&P considers that the increased credit enhancement for the
class D notes is now commensurate with a 'BBB+' rating.  S&P has
therefore raised to 'BBB+ (sf)' from 'BBB- (sf)' its rating on
this class of notes.

Similarly, for the class E notes, S&P's credit and cash flow
analysis indicates that the notes are able to achieve higher
ratings than those currently assigned.  However, the application
of S&P's largest obligor supplemental test constrains the rating
on the notes at 'B+ (sf)'.  As a result, S&P has lowered to
'B+ (sf)' from 'BB- (sf)' its rating on this class of notes.

GSC European CDO I-R is a cash flow collateralized loan
obligation (CLO) transaction that securitizes loans granted to
primarily speculative-grade corporate firms.


Class        Rating             Rating
             To                 From

GSC European CDO I-R S.A.
EUR371 Million Floating- And Fixed-Rate Notes

Ratings Raised

C1           AAA (sf)           AA (sf)
C2           AAA (sf)           AA (sf)
D            BBB+ (sf)          BBB- (sf)

Rating Lowered

E            B+ (sf)            BB- (sf)


NORSKE SKOGINDUSTRIER: Moody's Affirms Caa3 CFR, Outlook Neg.
Moody's Investors Service has affirmed Norske Skogindustrier
ASA's (Norske Skog) Corporate Family Rating (CFR) at Caa3 and the
Probability of Default Rating (PDR) at Ca-PD.  Moody's also
affirmed Norske Skog's Ca (LGD5) ratings of the legacy senior
unsecured notes due 2016, 2017 and 2033, the Caa2 (LGD2) rating
of the EUR290 million senior secured notes due Dec-2019 issued by
Norske Skog AS, as well as the Caa3 (LGD3) rating of the senior
unsecured notes due 2021 and 2023, issued by Norske Skog Holdings
AS.  The outlook on all ratings is negative.

The provisional (P)Ca (LGD 5) rating of the proposed senior
unsecured Exchange Notes due December 2026 and provisional (P)C
(LGD 6) rating of the senior subordinated Perpetual Notes issued
by Norske Skog remain unchanged.

The rating action follows Norske Skog's recently revised debt
exchange offer that was launched to all holders of the 2017 notes
which, if executed successfully, would qualify as distressed
exchange under Moody's definition.  The new exchange offer
expires at 12 noon GMT on Wednesday April 6.  Upon successful
conclusion of the transaction, Moody's expects to assign a "/LD"
indicator to the company's PD rating.

The other provisional ratings ((P)Ca senior unsecured notes
rating of Norske Skog and (P)Caa1 senior secured notes rating of
Norske Skog AS) assigned prior to the recently revised exchange
offer are withdrawn.

                         RATINGS RATIONALE

Norske Skog has decided to terminate the exchange offer of 2016
senior secured notes and to proceed with the exchange offer of
the 2017 senior secured notes.  The previous exchange offer has
been amended and the holders of the 2017 senior unsecured bonds
are offered to receive 46.8% (increased from previously 26.4%) of
nominal value as unsecured exchange notes due 2026 bearing a cash
interest rate of 3.5% (unchanged) and a PIK interest rate of 3.5%
(unchanged), a 36.2% (unchanged) of nominal value as perpetual
exchange notes, bearing 2% interest subject to deferral rights
(unchanged).  The 2017 holders also have the right to subscribe
to 6.877% from previously 4.418% of nominal value in cash for
ordinary shares of Norske Skogindustrier ASA at a price of NOK
2.24 (unchanged).

While the revised transaction addresses the 2017 maturities, the
procurement of sufficient funding in time for the repayment of
the equivalent NOK1,044 million 11.75% notes maturing in June-
2016 (now excluded from the revised offer) is highly uncertain
and could otherwise result in a default.  Liquidity remains tight
even after a successful exchange and envisaged rights issue as
Norske reported a further reduction in liquidity as per December
2015 to NOK 536 million from NOK699 million as per September
2015.  In addition, the exchange offer is expected to only result
in a pro-forma total debt reduction of up to around NOK180
million (down from NOK800 mil. previously envisaged) in case of
full participation, and given the currently very weak
profitability the effect on pro forma leverage will be modest.

The Caa3 CFR and negative outlook reflects Norske Skog's weaker
than expected profitability and cash flow generation in 2015.
Its high exposure to the mature publication paper market in
Europe and Australia weighs on the company's ability to improve
profitability.  Recently announced investments in growth
projects, namely biogas and tissue production as well as the
acquisition of a New Zealand-based wood pellet production to
diversify away from the traditional publication paper market are
not sufficient to materially offset challenging market conditions
in its paper operations.  Moody's notes that these investments
will only moderately improve profit generation over time.
Nevertheless, the incremental profits from the investments as
well as slight improvements in paper prices during 2016 should
help to improve profitability, which subject to the reduction and
extension of near-term maturities would ease the immediate
refinancing pressure until 2019 and would therefore be credit

The continued weak profitability is reflected in a negative
EBITDA as adjusted by Moody's as of LTM ending September 2015.
Also, Moody's forecasts that despite recent capacity reductions
in newsprint and magazine production capacity, demand for
publication paper will continue to decline in the coming years.
Historically, pricing power has been subdued while raw material
costs remain elevated and add pressure to profitability and cash
generation. This will make it challenging for Norske Skog to
materially improve profit and cash flow generation and to
meaningfully reduce its debt load to more sustainable levels.
However, for the period of 2016 we expect a recovery in the
group's profitability levels due to improvements in paper prices,
which could help stabilize Norske Skog's liquidity profile.


Pursuant to the revised debt exchange offer, the Caa2-rated
EUR290 million senior secured notes issued by Norske Skog AS is
rated 1 notch above the CFR, reflecting the relatively higher
recovery expectations compared to the structurally and
contractually subordinated legacy unsecured exchange notes and
the remaining unsecured legacy notes.  This is because the
secured notes enjoy first priority ranking pledges over assets
and bank accounts, land charges on lands and buildings from
Australian and New Zealand subsidiaries as well as upstream
guarantees from all material subsidiaries.  The Caa3 rating of
the senior notes maturing in 2021 and 2023 is in line with the
CFR and reflective of the junior ranking to the sizeable amount
of secured bonds but seniority over the remaining portion of the
unsecured debt due to upstream guarantees from operating
entities, placing them ahead of other unsecured debt at the
holding company level, namely the legacy 2016, 2017 and 2033 as
well as the proposed new (P)Ca rated senior unsecured exchange
notes due 2026.  Lastly, the proposed perpetual notes are
contractually subordinated to all other debt in the group and
therefore rated (P)C.

The above instrument ratings are based on the assumption of a
full participation by the 2017 note holders and are therefore
subject to the level of participation and final outcome of the


The negative outlook reflects that a default continues a likely
threat in the near term and that a failure of the exchange offer
and/or failure to procure sufficient funding to repay the debt
maturing in June 2016 could be credit negative with potentially
weaker recovery prospects for creditors in case of disorderly

What Could Change the Rating UP/DOWN

The outlook could be stabilized if the 2017 debt maturity was
successfully refinanced, sufficient funding for the June 2016
maturity procured and Norske Skog was able to improve its
profitability to sustainable levels and generate meaningful
positive free cash flow allowing the company to de-leverage over
time.  However, given Norske Skog's highly leveraged capital
structure and diminished profitability and cash flow generation,
Moody's considers that an upgrade of the ratings would require
substantial profit improvement and increase in cash-flow
generation for considering a potential upgrade.

Conversely, the rating of the CFR and the existing bonds could be
downgraded if the exchange offer does not attract sufficient
interest from existing bondholders, and therefore would heighten
the company's refinancing risk towards its June 2016 debt
maturity with the risk of a disorderly payment default and a
bankruptcy, which could imply low recovery prospects for

The principal methodology used in these ratings was Global Paper
and Forest Products Industry published in October 2013.

Norske Skogindustrier ASA, with headquarters in Oslo, Norway, is
among the world's leading newsprint and magazine producers with
production in Europe and Australasia.  During 2015 Norske Skog
recorded sales of around NOK11.6 billion (approximately EUR1.23


FIRST CONTAINER: Fitch Assigns Final 'BB' Rating to RUB5BB Notes
Fitch Ratings has assigned Russia-based First Container
Terminal's (FCT) RUB5 billion notes a final local currency senior
unsecured rating of 'BB' with Stable Outlook. The rating of the
notes is aligned with the Long-term Issuer Default Rating (IDR)
of parent Global Port Investment Plc (GPI), which provides a
public irrevocable offer to repurchase the notes.

GPI is rated at Long-term IDR 'BB'


The bond bears a coupon of 12.5% per year and has a maturity of
10 years with a mandatory call option for FCT to buy back the
bond in March 2021, effectively reducing the maturity to five
years. On the closing date, FCT swapped the rouble-denominated
bond into $US.

GPI's Op Co to Issue Bonds

The bond represents the last of three tranches totalling
RUB5billion each issued under a RUB30 billion domestic bond
program. The other two RUB5 billion tranches were issued in
December 2015 and February 2016. FCT is one of GPI's main
operating subsidiaries and 100%-owned by GPI, fully consolidated
in the group accounts, which generates 35% of GPI's operating
cash flow. Outside of the GPI group, FCT is a small player with
little market power and exposed to competition.

Irrevocable Offer

Bondholders benefit from an irrevocable offer by GPI. Under this
offer, GPI irrevocably and publicly undertakes to purchase the
bond following non-payment of interest or principal. This
obligation ranks pari-passu with all other direct, unsecured GPI

"If and when the bondholders accept the offer, it turns into a
sale and purchase agreement of the bond where GPI is obliged to
pay principal, coupon and accrued interest on the 13th business
day after non-payment of the rated bond. Under this structure,
the parent is strongly incentivized to financially support the
issuing entity before it defaults. The probability of default of
the rated bond is therefore linked to that of GPI, in our view.
As a result, Fitch has aligned the local currency senior
unsecured rating of the notes with GPI's Long-term local currency

Bonds Proceeds for Refinancing

The bonds' proceeds are being used to refinance FCT's outstanding
bank loans. GPI's consolidated leverage will therefore not
increase as a result of this transaction.


The rating of the notes is credit-linked to the Long-term IDR of
GPI; future development that could lead to negative rating
actions on both GPI and the FCT bond include:

-- Dividend distributions impacting GPI's expected deleveraging

-- Fitch-adjusted GPI's consolidated debt/EBITDA remaining above
    3.0x over a three-year horizon to 2018 in the Fitch rating

-- Adverse policy decisions or geopolitical events affecting the
    port sector

-- Failure to maintain adequate liquidity to cover GPI's debt
    service maturities

-- Failure to comply with covenants at op cos and consolidated

-- "A material increase in bullet debt or a potential change in
    shareholder structure with the co-controlling shareholder
    APMT disposing partly or entirely its stake in GPI, which may
    affect our analysis of some rating factors such as
    refinancing risk and potentially GPI's ratings."

"Rating upside potential is currently limited. We do not expect
improvement in the Russian economy in the near term, as indicated
by the Negative Outlook on Russia's sovereign rating."

SMARTBANK JSC: Placed Under Provisional Administration
The Bank of Russia, by its Order No. OD-1013, dated March 28,
2016, revoked the banking license of the Moscow-based credit
institution Joint Stock Company SMARTBANK (JSC SMARTBANK) 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 a year of Bank of Russia
requirements stipulated by Articles 6 and 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", capital adequacy ratios being below 2 percent and
considering the repeated application within a year of the
measures stipulated by the Federal Law "On the Central Bank of
the Russian Federation (Bank of Russia)".

JSC SMARTBANK implemented a high-risk lending policy connected
with the placement of funds in low-quality assets.  At the same
time, the bank's capital adequacy ratios reached critical levels.
Besides, the bank failed to comply with the requirements of law
and the Bank of Russia regulations on countering the legalization
(laundering) of criminally obtained incomes and the financing of
terrorism with regard to submitting information to the authorized
body on time and in full.  JSC SMARTBANK was involved in dubious
operations including dubious transit operations.

The management and owners of the credit institution did not take
any action to bring its activities back to normal. Under these
circumstances, the Bank of Russia performed its duty on the
revocation of the banking license of 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-1014, dated March 28,
2016, appointed a provisional administration to JSC SMARTBANK for
the period until the appointment of a receiver pursuant to the
Federal Law "On the 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.
JSC SMARTBANK 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 not more than 1.4 million rubles
per depositor.

According to the financial statements, as of March 1, 2016, JSC
SMARTBANK ranked 378th by assets in the Russian banking system.


ABENGOA SA: Chapter 15 Case Summary
Chapter 15 Petitioner: Christopher Morris

  Chapter 15 Debtors                                   Case No.
  ------------------                                   --------
  Abengoa ,S.A.                                        16-10754
  1 Kaiser Plaza
  Suite 1675
  Oakland, CA 94612

  Abengoa Finance, S.A.,                         16-10755
  Abengoa Greenbridge S.A.U.                           16-10756
  Abengoa Greenfield S.A.U.                            16-10757
  Abencor Suministros S.A.                             16-10758
  Abener Energia S.A.                                  16-10759
  Abeinsa, Ingeniera y Construccion Industrial S.A.    16-10760
  Instalaciones Inabensa S.A.                          16-10761
  Abeinsa Infraestructuras Medio Ambiente, S.A.        16-10762
  Abengoa Bioenergia S.A.                              16-10763
  Abentel Telecomunicaciones S.A.                      16-10764
  Ecoagricola, S.A.                                    16-10765
  Abengoa Water SL                                     16-10766
  Europea de Construcciones Metalicas SA               16-10767
  Negocios Industriales y Comerciales SA               16-10768
  Teyma Gestion de Contratos and                       16-10769
  de Construccion E Ingenieria, S.A.,
  Abengo Solar Expana SA                               16-10770
  Bioetanol Galicia SA                                 16-10771
  Siema Technologies SL                                16-10772
  Abengoa Solar SA                                     16-10773
  Abengoa Solar New Technologies SA                    16-10774
  Abeinsa Inversiones Latam SL                         16-10775
  Abengoa Concessions SA                               16-10776
  Abeinsa Asset Management SL                          16-10777
  Asa Desulfuracion SA                                 16-10778

Type of Business: Engineering and clean technology company

Chapter 15 Petition Date: March 28, 2016

Court: United States Bankruptcy Court
       District of Delaware (Delaware)

Chapter 15
Petitioner's Counsel: R. Craig Martin, Esq.
                      DLA PIPER LLP (US)
                      1201 North Martket Street
                      21st Floor
                      Wilmington, DE 19801
                      Tel: 302-468-5655
                      Fax: 302-778-7834

                                    - and -

                      Richard A. Chesley, Esq.
                      Oksana K. Rosaluk, Esq.
                      DLA PIPER LLP (US)
                      203 North LaSalle Street
                      Suite 1900
                      Chicago, IL 60601-1293
                      Tel: 312.368.4000
                      Fax: 312.236.7516

Total Assets: EUR 16.6 billion as of Dec. 31, 2015

Total Current Liabilities: EUR 14.6 billion as of Dec. 31, 2015

ABENGOA SA: Files for Chapter 15 Bankruptcy in the U.S.
Abengoa, S.A. and certain of its affiliates sought creditor
protection under Chapter 15 of the Bankruptcy Code in the U.S.
Bankruptcy Court for the District of Delaware, to ensure the
effective implementation of a standstill agreement with creditors
-- comprised of banks and holders of bonds -- while they continue
to negotiate regarding a restructuring of their debt.

Christopher Morris, in his capacity as the duly authorized
foreign representative of the Debtors, said: "During 2015,
various factors, such as an insufficient upswing in the market in
which the Abengoa Group operates and the difficulty of obtaining
financing, precluded compliance with the company's business plan,
which caused imbalances in cash flow."

As disclosed in the bankruptcy filing, as of Dec. 31, 2015, the
Company had total assets of approximately EUR 16.6 billion,
including its goodwill, with revenues of approximately EUR 5.8
billion, and a total loss for 2015 of about EUR 1.3 billion.  The
company's current liabilities total approximately EUR 14.6

To address its financial situation, Abengoa had entered into a
framework agreement with Gonvarri Corporacion Financiera in early
November 2015, with the support of the Company's main
shareholder, which set out terms and conditions for an investment
by Gonvarri of EUR 250 million through an increase in the share
capital of Class A Shares and Class B Shares.  Gonvarri
terminated the framework agreement due to the failure of certain

As no other proposal was received from any other potential
subscriber that would immediately replace Gonvarri, Abengoa and
24 of its affiliates, on Nov. 25, 2015, filed a communication
with Commercial Court No. 2 in Seville, Spain for protection
under article 5 bis under the Spanish Insolvency Law.

The 5 bis Proceeding provided a statutory four-month period for
protection against judicial or extrajudicial foreclosures on
assets or on rights that may be necessary to continue the
professional or corporate activity of the Foreign Debtors.
Article 5 bis provides that at the end of this four-month period,
the debtor may submit an application for judicial homologation of
the refinancing agreement agreed to between it and its creditors
as a means of preventing the opening of insolvency proceedings.

During this period, the Abengoa Group notified the Spanish Court
that they had commenced negotiations with their principal
creditors in order to reach a global agreement on the refinancing
and restructuring of their liabilities to achieve the viability
of the Abengoa Group in the short and long term.

The Abengoa Group entered into a Standstill Agreement that
establishes the restructuring framework for final negotiation
with a group of creditors, dated March 18, 2016, which they then
submitted to the Spanish Court on March 28, 2016, for judicial
homologation (the "Spanish Proceeding").

The fundamental principles of the agreement were the following:

  (i) New money would be lent to the company in a range between
      EUR 1.5 billion and EUR 800 million for a maximum term of 5
      years.  Creditors would be entitled to 55% of the share
      capital.  This financing would rank senior with respect to
      the existing debt and would be guaranteed by certain
      assets, including unpledged shares of YieldCo.

(ii) The amount of the old debt that would be capitalized would
      correspond to 70% of its nominal value.  Such
      capitalization grants the right to subscribe 35% of the new
      share capital.

(iii) The financial indebtedness corresponding to Revolving Lines
      and the December Facilities (a total amount of EUR 231
      million (plus accrued financial expenses)) will be subject
      to refinancing by extending the term by 2 years.  This
      indebtedness would be secured by the shares of YieldCo and
      would be prepaid in case of sale of the shares of YieldCo.

(iv) The amount of the share capital increase that would be
      reserved to those creditors, who provide EUR 800 million of
      the bank guarantees requested, would be 5% of the new

In order for the Spanish Court to homologate such proceeding in
accordance with the Spanish Insolvency Law, 75% of the requisite
creditors need to accede to the agreement.  In order to permit
the Abengoa Group with sufficient time to solicit and obtain the
requisite supermajority votes with respect to the Restructuring
Proposal, the Abengoa Group requested its financial creditors to
adhere to a standstill agreement under which the Abengoa Group
companies that are signatories to the Standstill Agreement will
request its financial creditors to stay certain rights and
actions vis-a-vis the relevant Abengoa companies during a period
of seven months from the date of the Standstill Agreement.

The Abengoa Group advised creditors that once the Standstill
Agreement is signed by at least 60% of the company's various
financial creditors, the Abengoa Group intended to apply for
judicial approval (homologacion judicial) of the Standstill
Agreement pursuant to the Spanish Insolvency Act, so that the
Standstill Agreement becomes binding upon all the relevant
financial creditors of the company.

On March 28, 2016, the Foreign Debtors and certain other members
of the Abengoa Group filed the Judicial Confirmation Request for
homologation of the Standstill Agreement.  On that same day, the
clerk of the Spanish Court published a resolution (Providencia)
of the Spanish Court accepting the jurisdiction over the Judicial
Confirmation Request and imposing a moratorium on enforcement
actions against the Foreign Debtors.

Accordingly, the Debtors filed the Chapter 15 cases to seek
cross-border recognition of the Spanish Proceeding to extend the
Standstill Agreement with respect to the Foreign Debtors within
the territorial jurisdiction of the United States of America.
The Debtors' assets in the United States consist of direct or
indirect ownership in numerous Delaware companies.

A copy of the Petition for Recognition is available for free at:

                         About Abengoa

Spanish energy giant Abengoa S.A. is a leading engineering and
clean technology company with operations in more than 50
countries worldwide that provides innovative solutions for a
diverse range of customers in the energy and environmental
sectors.  Abengoa is one of the world's top builders of power
lines transporting energy across Latin America and a top
engineering and construction business, making massive renewable-
energy power plants worldwide.

As of the end of 2015, Abengoa, S.A. was the parent company of
687 other companies around the world, including 577 subsidiaries,
78 associates, 31 joint ventures, and 211 Spanish partnerships.
Additionally, the Abengoa Group held a number of other interests
of less than 20% in other entities.

On Nov. 25, 2015 in Spain, Abengoa S.A. announced its intention
to seek protection under Article 5bis of Spanish insolvency law,
a pre-insolvency statute that permits a company to enter into
negotiations with certain creditors for restricting of its
financial affairs.  The Spanish company is facing a March 28,
2016, deadline to agree on a viability plan or restructuring plan
with its banks and bondholders, without which it could be forced
to declare bankruptcy.

On Feb. 24, 2016, Abengoa Bioenergy US Holding, LLC and five
other U.S. units of Abengoa S.A. each filed a voluntary petition
for relief under Chapter 11 of the United States Bankruptcy Code
in the United States Bankruptcy Court for the Eastern District of
Missouri.  The cases are pending before the Honorable Kathy A.
Surratt-States and are jointly administered under Case No. 16-

Abengoa, S.A., and 24 of its subsidiaries filed Chapter 15
petitions (Bankr. D. Del. Case Nos. 16-10754 to 16-10778) on
March 28, 2016, to seek U.S. recognition of a standstill
agreement with creditors and its restructuring proceedings in
Spain.  Christopher Morris signed the petitions as foreign
representative.  DLA Piper LLP (US) represents the Debtors as

ABENGOA SA: Joint Administration of Chapter 15 Cases Sought
Abengoa, S.A. and its debtor affiliates ask the U.S Bankruptcy
Court for the District of Delaware to enter an order directing
joint administration of their related Chapter 15 cases under the
case of "Abengoa, S.A.," Case No. 16-10754.

"Given the integrated nature of the Foreign Debtors' operations,
joint administration of these chapter 15 cases will provide
significant administrative convenience without harming the
substantive rights of any party in interest," said Craig R.
Martin, Esq., at DLA Piper LLP (US), counsel to Christopher
Morris, in his capacity as the duly authorized foreign

According to Mr. Martin, the entry of an order directing joint
administration of these chapter 15 cases will reduce fees and
costs by avoiding duplicative filings and objections, allow the
Office of the United States Trustee for the District of Delaware
and all parties in interest to monitor these chapter 15 cases
with greater ease and efficiency and will not adversely affect
the Debtors' respective constituencies because this Motion
requests only administrative, not substantive, consolidation of
the Chapter 15 bankruptcy cases.

                         About Abengoa

Spanish energy giant Abengoa S.A. is a leading engineering and
clean technology company with operations in more than 50
countries worldwide that provides innovative solutions for a
diverse range of customers in the energy and environmental
sectors.  Abengoa is one of the world's top builders of power
lines transporting energy across Latin America and a top
engineering and construction business, making massive renewable-
energy power plants worldwide.

As of the end of 2015, Abengoa, S.A. was the parent company of
687 other companies around the world, including 577 subsidiaries,
78 associates, 31 joint ventures, and 211 Spanish partnerships.
Additionally, the Abengoa Group held a number of other interests
of less than 20% in other entities.

On Nov. 25, 2015 in Spain, Abengoa S.A. announced its intention
to seek protection under Article 5bis of Spanish insolvency law,
a pre-insolvency statute that permits a company to enter into
negotiations with certain creditors for restricting of its
financial affairs.  The Spanish company is facing a March 28,
2016, deadline to agree on a viability plan or restructuring plan
with its banks and bondholders, without which it could be forced
to declare bankruptcy.

On Feb. 24, 2016, Abengoa Bioenergy US Holding, LLC and five
other U.S. units of Abengoa S.A. each filed a voluntary petition
for relief under Chapter 11 of the United States Bankruptcy Code
in the United States Bankruptcy Court for the Eastern District of
Missouri.  The cases are pending before the Honorable Kathy A.
Surratt-States and are jointly administered under Case No. 16-

Abengoa, S.A., and 24 of its subsidiaries filed Chapter 15
petitions (Bankr. D. Del. Case Nos. 16-10754 to 16-10778) on
March 28, 2016, to seek U.S. recognition of a standstill
agreement with creditors and its restructuring proceedings in
Spain.  Christopher Morris signed the petitions as foreign
representative.  DLA Piper LLP (US) represents the Debtors as

GAS NATURAL: S&P Affirms 'BB+' Rating on 2 Hybrid Instruments
Standard & Poor's Ratings Services said it has affirmed its
'BBB/A-2' long- and short-term corporate credit ratings on Spain-
based vertically integrated gas and electricity utility Gas
Natural SDG S.A.  The outlook remains stable.

S&P also affirmed its 'BBB' issue credit rating on the senior
debt and S&P's 'BB+' issue credit rating on the two hybrid
capital instruments issued by Gas Natural Fenosa Finance B.V
(GNF) and guaranteed by Gas Natural.

The affirmation reflects Gas Natural's strong financial
performance, with both EBITDA and FFO remaining stable, despite
challenging market conditions.  This tough operating environment
has led to a number of rating actions in the utilities sector.

The rating reflects Gas Natural's strong business risk profile,
based on the group's sizable share of low-risk regulated gas and
electricity activities, resilient business model, international
diversification, and flexible international gas midstream
operations.  About 60% of Gas Natural's revenue comes from
regulated activity, about half of which is derived from Europe
and the rest from South America.  Although S&P views the
regulatory frameworks in South America as somewhat weaker than in
Spain, S&P views Gas Natural's diversification and operating
efficiency as strong.  These strengths are partially offset by
Gas Natural's exposure to Spain, which S&P considers to be
material in light of weak conditions in the Spanish gas and
electricity markets.  S&P also sees increased risks from
decreasing prices and demand for liquefied natural gas (LNG)
after 2016.

S&P's assessment of Gas Natural's significant financial risk
profile reflects S&P's expectation that Gas Natural will
comfortably maintain FFO to debt at or above 18% and positive
cash flow generation after dividends and capital expenditure
(capex). However, S&P sees risks from exposure to foreign
currency risk in Latin America, which could lead to some
volatility in cash flow generation, despite the natural hedge
from the local cost base and funding strategy.

In S&P's base case, it assumes:

   -- Macroeconomic conditions, in particular low-power prices,
      will hamper previously anticipated growth but cash flow
      generation will continue to be supported by Gas Natural's
      high share of regulated activities.

   -- Moderate decline in Gas Natural's revenue in 2016, driven
      by the unregulated part of the GNF business but
      compensated, to an extent, by regulated activities.

   -- Some stability in EBITDA margins given management's strong
      track record for controlling costs.

   -- That said, unforeseen variation of cash flow generation
      could come from foreign exchange exposure.

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

   -- Financial ratios in line with Gas Natural's financial
      profile.  FFO-to-debt ratio remaining comfortably at or
      above 18%.

   -- Positive cash flow generation after dividend payments and
      capex.  Newly announced and slightly more aggressive
      dividend policy -- introducing a floor of dividend payments
      -- and a payout ratio increase to 70% will have a limited
      impact on S&P's base case.

The stable outlook on Gas Natural reflects S&P's expectation that
the company will maintain financial credit metrics commensurate
with S&P's significant financial risk profile.  S&P believes that
the group will maintain a ratio of Standard & Poor's-adjusted FFO
to debt at or above 18% over 2016-2019, despite ongoing
challenges in power and gas generation activities and increasing
uncertainty regarding LNG margins, derived from tighter pricing
and a potential oversupply.

S&P believes that Gas Natural's balanced business model will be
resilient to tough operating conditions in its unregulated
activities and that the group's increased geographic
diversification, stronger presence in Latin America, and
increasingly flexible LNG business will contribute to cash flow
generation and debt reduction.  However, this will occur at a
slower pace than in the past.  S&P therefore expects that Gas
Natural will post positive cash after capex and dividends over
2016-2019, allowing the group to continue debt reduction efforts
instigated in 2010.

S&P could consider a positive rating action if the group's
adjusted FFO-to-debt ratio improved sustainably to more than 20%.
However, according to S&P's base-case scenario, it considers this
unlikely over 2016-2019.

S&P could downgrade Gas Natural if its adjusted FFO to debt fell
structurally and sustainably below 18%.  The most likely cause of
such a drop would be any major and unexpected adverse
repercussion from regulatory measures in Latin America, a
significant margin erosion in LNG operations, or a sizable debt-
financed acquisition.


DUFRY AG: S&P Affirms 'BB' CCR & Revises Outlook to Stable
Standard & Poor's Ratings Services said it has affirmed its 'BB'
long-term corporate credit rating on Swiss travel retailer Dufry
AG.  At the same time, S&P revised its outlook on Dufry to stable
from positive.

At the same time, S&P affirmed its 'BB' issue ratings on the
company's existing senior unsecured debt facilities, including a
$500 million bond due 2020, a EUR500 million bond due 2022, a
EUR700 million bond due 2023, and a Swiss franc (CHF) 900 million
revolving credit facility (RCF) due 2019.  The recovery rating on
these instruments is '4', indicating average recovery prospects
of 30%-50%.

The downward revision of S&P's outlook follows the release of
slightly disappointing full-year 2015 results, which revealed a
decline in like-for-like revenues of 5.3% year-on-year.
Excluding difficult trading in Brazil and Russia, organic growth
reached a positive growth of 4.0% year-on-year, which shows that
the remaining businesses are performing very well.

On a Standard & Poor's-adjusted basis, the EBITDA margin fell to
10.8% from 12.7% in 2014, which was also slightly short of S&P's
expectations.  On a company-reported basis, the EBITDA margin
came down to 11.8% from 13.7% in 2014, despite the realization of
synergies from the acquisition of The Nuance Group.  Furthermore,
due to the delay in the completion of the WDF acquisition, S&P
recognizes that debt and leverage metrics for 2015 incorporate
the full acquisition debt without the corresponding benefit.

As a consequence, S&P has lowered its projections and no longer
anticipate that Dufry will deleverage sufficiently enough to
justify an upgrade in fiscal 2016.  According to S&P's estimates,
Dufry's ratios of funds from operations (FFO) to debt and debt to
EBITDA will not be commensurate with S&P's significant financial
risk assessment before 2017.

Dufry's business risk is supported by the company's position as
the world's leading travel retailer.  Following the acquisition
of competitors The Nuance Group in 2014 and WDF in 2015, Dufry
expanded its market share in the airport retail industry to about
5% from about 10% previously.  The world's No. 2 travel retailer
is LS Travel Retail (Lagardere group), which only has about 8% of
the market share.

Dufry's large size results in a strong negotiating position with
its suppliers.  It also better positions the company to compete
for new and up-for-renewal concession contracts.  The long
duration for most of its concessions provides fairly good
visibility and implies limited risk of shortfalls in revenues and
profits from unexpected concession terminations.

Before the WDF acquisition, S&P already viewed Dufry's
geographical mix as well balanced.  The acquisition of WDF has
further enhanced Dufry's geographical reach, as WDF is
particularly strong in the U.K. and Spain.

Although S&P expects deleveraging to occur, it now forecasts its
core leverage ratios of FFO to debt and debt to EBITDA to remain
in S&P's aggressive category in 2016 and to only improve to the
significant financial risk category in 2017.  S&P factors in the
temporary shortfall in its core ratios by lowering its 'bb+'
anchor by one notch using S&P's comparable rating analysis
modifier.  This also reflects the integration risk from the
acquisition of WDF.

S&P's base-case scenario assumes:

   -- Real world GDP to rise by about 3.0%-4.0% per year for 2016
      and 2017, with the number of international passengers
      climbing by about 6.0% per year over the same period.

   -- Underlying revenue growth rate of about 5.0% per year,
      supported by passenger growth and a very slight expansion
      in sales.

   -- Revenues to rise by about 30% year-on-year to about CHF8.0
      billion in 2016 and to CHF8.3 billion-CHF8.4 billion in
      2017, helped by the full contribution from WDF.

   -- Adjusted EBITDA margin to improve to 11.0%-12.0% in 2016
      from 10.8% in 2015, helped by synergies and a reduction in
      restructuring expenses.  EBITDA margin to expand to 12.0%-
      12.5% in 2017, driven by synergies.

   -- Reported operating cash flow post interest expenses and
      additional working capital needs of CHF650 million-CHF750
      million per year.

   -- Capital expenditures (capex) of CHF250 million-CHF300
      million per year and dividends of about CHF50 million per
      year, leaving a discretionary cash flow (DCF) of CHF300
      million-CHF400 million per year.

Based on these assumptions, S&P arrives at these adjusted credit
measures for 2016 and 2017 on average:

   -- FFO to debt of about 18%-22%;
   -- Debt to EBITDA of 3.5x-4.2x; and
   -- EBITDA interest coverage of 5.0x-6.0x.

The stable outlook reflects S&P's expectation that Dufry's
leverage metrics should improve from low 2015 levels on the back
of higher cash flow generation and the smooth integration of WDF.
S&P expects underlying revenue growth to be in the mid- to
single-digit area and S&P's adjusted EBITDA to improve slightly.
This should result in DCF material enough to deleverage the group
into S&P's significant financial risk category by 2017.

S&P could raise its ratings should the company's operations
perform better than S&P anticipates, leading to significant
deleveraging of its balance sheet.  Specifically, S&P could raise
its ratings should our adjusted FFO-to-debt ratio rise
sustainably above 20% and free operating cash flow (FOCF) to debt
strongly above 10%.  S&P also expects a smooth integration of WDF
with no disruptions of the operational business or unexpected
restructuring needs.

S&P could lower its ratings if deleveraging is slower than S&P
currently anticipates, in particular, if FFO to debt remains
below 20% and FOCF to debt below 10%.  This may be the result of
either slower underlying business, for example, as a result of a
general slowdown in air traffic or disruptions during the
integration process of WDF.  The latter could also involve
additional restructuring costs.  Although not in S&P's base case,
the rating may also be lowered if management embarks on new
significant acquisitions.  S&P could also revise its outlook
should liquidity become less than adequate, primarily because of
tightening covenant headroom.

U N I T E D   K I N G D O M

BHS GROUP: Middleston Grange at Risk of Closure Following CVA

Hartlepool Mail reports that shopping center bosses have started
crunch talks as one of its flagship retail traders faces up to
the threat of closure.

According to Hartlepool Mail, chiefs at Middleton Grange Shopping
Centre, in Hartlepool, are weighing up the "impact" on its
operations after retail chain BHS entered into a company-
voluntary arrangement, as it battles to restructure its ailing

The BHS branch in the shopping center is one of 40 facing the axe
unless rent levels can be reduced, Hartlepool Mail notes.

The store could keep its doors open if a deal to slash rent
payments by 25% can be agreed, Hartlepool Mail states.

Now, LaSalle Investment Management, which operates Middleton
Grange Shopping Centre, say they are searching for a "long-term
solution" for all parties, Hartlepool Mail relays.

BHS Group is a department store chain.  The company employs
10,000 people and has 164 shops.

TATA STEEL: To Explore Sale of U.K. Business, Jobs at Risk
David Stringer at Bloomberg News reports that Tata Steel Ltd.,
part of India's biggest conglomerate, said a slump in global
prices has forced it to consider selling its U.K. business, a
decision that threatens to accelerate the demise of Britain's
steel industry.

Global oversupply, high manufacturing costs and rising steel
exports mean trading conditions in the U.K. and Europe have
"rapidly deteriorated," Bloomberg quotes Mumbai-based Tata Steel
as saying in a statement.  The producer said Tata Steel Europe's
board will "explore all options for portfolio restructuring,"
including a potential divestment of the U.K. unit, Bloomberg

Tata's U.K. assets, once controlled by state-owned British Steel
and bought for YS$12 billion a decade ago, include the giant Port
Talbot works in South Wales, Bloomberg notes.  The risk of losing
thousands of industrial jobs in an economically deprived region
will put pressure on David Cameron's government to ensure it
remains a going concern, Bloomberg states.

According to Bloomberg, Anna Soubry said in a BBC radio interview
the government wouldn't rule out temporary state control as a way
to ensure sufficient time for a buyer to be found, U.K. business

The producer said in the statement that a review of Tata's U.K.
strip products unit, centered on Port Talbot, concluded planned
restructuring proposals were unaffordable, Bloomberg relays.

Tata Steel, as cited by Bloomberg, said it is continuing
discussions with Greybull Capital LLP over a potential sale of
its U.K. long products business and also holding talks with the
U.K. government.  That agreement covers Scunthorpe steelworks in
England as well as mills in Teesside and northern France,
Bloomberg discloses.

The producer is seeking to pare debt by selling loss-making units
in the U.K, Bloomberg says.

Tata Steel is the UK's biggest steel company.


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

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

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


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

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

Copyright 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

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