TCREUR_Public/160419.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

           Tuesday, April 19, 2016, Vol. 17, No. 076


                            Headlines


A U S T R I A

HETA ASSET: Austria's FMA Wants Banks to Write Down Bonds


D E N M A R K

DONG ENERGY: S&P Affirms 'BB+' Rating on Sub. Hybrid Issues


L U X E M B O U R G

CAPSUGEL SA: Moody's Cuts European Term Loan Rating to B1
MILLICOM INT'L: Fitch Rates SEK2BB 2019 Sr. Unsec. Notes BB+(EXP)


N E T H E R L A N D S

HIGHLANDER EURO: Moody's Raises Rating on Cl. D Notes to Ba1


N O R W A Y

NORSKE SKOG: ISDA Committee Postpones Talks on Credit Event


R O M A N I A

COMPLEXUL ENERGETIC: Court to Decide on Judicial Administrator


R U S S I A

ERGOBANK LLC: Deemed Insolvent, Prov. Administration Halted
KARELIA REPUBLIC: Fitch Affirms 'B+' LT Issuer Default Ratings
MIRAF-BANK JSC: Bank of Russia Discovers Misreporting of Finances
MOSCOW: Fitch Affirms 'BB+' Long-Term Issuer Default Ratings
TRANSAERO AIRLINES: Court Includes Aeroflot in Creditors List


T U R K E Y

KURUM: Albanian Court Appoints Temporary Receiver


U N I T E D   K I N G D O M

CASTLE THEATRE: Owners Placed Into Administration
FINSBURY SQUARE 2016-1: Moody's Rates Class X Notes (P)Ca(sf)
FINSBURY SQUARE 2016-1: Fitch Rates Class X Debt BB-(EXP)sf
GINGER FOX: Sold Out of Administration
MINICABSTER: Falls Into Administration, Assets Get Snapped Up

REACTIV MEDIA: Owner Avoids Fine, Puts Firm in Liquidation


                            *********


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A U S T R I A
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HETA ASSET: Austria's FMA Wants Banks to Write Down Bonds
---------------------------------------------------------
Boris Groendahl and Alexander Weber at Bloomberg News report that
Austria's banking supervisor recommended that the nation's banks
write down bonds of Heta Asset Resolution AG after it earlier
imposed losses on Heta's creditors.

According to Bloomberg, two people with knowledge of the matter
said the Finanzmarktaufsicht, or FMA, which is responsible for
banking supervision and the resolution of Heta, told banks in a
message that they can't assume that guarantees for Heta's debt
issued by the province of Carinthia will help offset losses.

Bloomberg relates that one of the people said the authority told
banks to write down Heta's senior bonds to 30% of face value, and
junior bonds to zero.

FMA took control of Heta last year in the first application of EU
rules designed to end taxpayer-funded bank rescues, Bloomberg
recounts.

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



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D E N M A R K
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DONG ENERGY: S&P Affirms 'BB+' Rating on Sub. Hybrid Issues
-----------------------------------------------------------
Standard & Poor's Ratings Services said it has affirmed its
'BBB+/A-2' long- and short-term corporate credit ratings on Danish
integrated power and gas company DONG Energy A/S.  The outlook is
stable.

At the same time, S&P affirmed its 'BBB+' rating on the company's
senior unsecured issues and S&P's 'BB+' rating on its subordinated
hybrid issues.

The affirmation follows a solid financial performance and
continued revenue and EBITDA growth in the company's subsidized
offshore wind projects.  S&P notes that credit measures were above
our expectations for year-end 2015, with funds from operations
(FFO) to debt of 37.5%, and S&P forecasts that the ratio will be
maintained above 30% over the next couple of years.  This is based
on S&P's assumption that growth in the wind power segment will
offset the company's exposure to falling power and gas prices in
Europe, and that a reduction in oil and gas expenditures will
partially mitigate the significant investments in wind power
projects.  S&P has therefore revised upward the company's
financial risk profile to intermediate from significant, although
this does not materially change S&P's view of DONG Energy's credit
profile.  In S&P's view, the company's large expansion into
offshore wind projects in the U.K. will be supported by the
group's strategy to sell down 50% of the assets in the early
stages or before construction to share the costs.  However,
overall, the expansion will result in negative discretionary cash
flow to debt over the next two years.

Following the IPO -- likely to be completed no later than first-
quarter 2017 -- S&P would expect DONG Energy to return to paying
dividends to shareholders, as dividends paid in 2014 and 2015 were
limited to minority stakes and hybrid holders.  S&P further
assumes that the credit measures will benefit from expected lump
sum payments related to the renegotiation of long-term contracts
in the midstream gas operation.

DONG Energy has also announced its intention to divest its
ownership of its Danish oil and gas infrastructure assets to
Energinet.dk as part of a mandate from the Danish government.  S&P
do not see this as a significant disposal as the assets do not
contribute a significant amount to DONG Energy's earnings.

S&P also does not anticipate any changes in the willingness or
ability of the Danish sovereign to support DONG Energy following
the IPO, although S&P anticipates a reduction in the state's
ownership share to 50.1% from 58.8%.  In line with a broad
political agreement, the Danish government will retain a majority
ownership in DONG Energy, and S&P expects the company will
continue to maintain a strong link with the Danish government.

S&P considers DONG Energy's business risk profile to be
satisfactory and expect the group's business mix to move toward a
growing contribution from subsidized offshore wind production, as
it completes new offshore wind projects.  In addition, the group
has a strong and integrated position in the Danish energy market,
with leading positions in electricity and heat generation, as well
as gas and electricity sales.  S&P believes the relatively small
scale and geographic concentration of oil and gas assets are
partly mitigated by their location in what we view as low risk
countries, including the U.K., Denmark, and Norway.  The group
also has continued to show a good track record of operating
performance in its cost control of the oil and gas segment and
renewable energy production.  However, weather conditions could
influence production levels.

DONG Energy's profitability has been affected by the large
impairments of its oil and gas assets, and lower power, oil, and
gas prices in Europe.  However, as the group's business mix moves
toward a greater portion of earnings from its wind segment, S&P
expects its EBITDA margins and return on capital to recover and
gradually improve.

The stable outlook reflects S&P's assumption that growth in the
wind power segment will offset the decline in contributions from
the oil and gas segment, as well as the weak power price
environment.  S&P also anticipates significant investment outflows
related to wind power projects, which will be partially mitigated
by a decline in oil and gas expenses.  S&P expects that, following
the IPO, DONG Energy's relationship with the government will
remain stable, and that there will be no significant changes to
the company's current strategy or financial policies.

S&P could lower the ratings if DONG Energy's operating performance
deteriorates or if credit metrics weakened so that FFO to debt was
consistently about 25%.  This could occur due to delays in new
projects coming on stream, higher dividends, or greater capital
expenditures than S&P currently forecasts.

S&P could also lower the ratings if it considers that the
likelihood of government support has reduced.  This could happen
if the government was less likely or able to support its
investment in DONG Energy or no longer held a majority share.

S&P currently sees the potential for a positive rating action as
limited, but it could raise the ratings if DONG Energy modified
its financial policies to sustainably support stronger credit
metrics, for example, a ratio of FFO to debt sustainably above
40%.  S&P could also raise the ratings if it believed there was a
higher likelihood that the company would receive extraordinary
government support.  However, S&P views this as unlikely at
present.



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L U X E M B O U R G
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CAPSUGEL SA: Moody's Cuts European Term Loan Rating to B1
---------------------------------------------------------
Moody's Investors Service downgraded the ratings of Capsugel S.A.
Luxembourg (Capsugel), including the ratings on the company's
senior secured revolver and European term loan from Ba3 to B1.
Moody's also assigned a B1 credit rating to Capsugel's upsized and
extended U.S. term loan. Moody's affirmed all other ratings on
Capsugel, including the Corporate Family Rating (CFR) at B2.

The downgrade of Capsugel's first lien credit facilities reflects
a refinancing transaction in which the company redeemed $200
million of senior unsecured PIK toggle notes at Capsugel S.A.
Luxembourg with proceeds from incremental term loan borrowings at
Capsugel Holdings US, Inc. and Capsugel FinanceCo S.C.A.
Luxembourg. "This refinancing is credit negative for previously
participating senior secured creditors, because the collateral
pool must now secure a greater amount of first lien debt," stated
Jonathan Kanarek, Moody's Vice President.

The affirmation of Capsugel's CFR reflects the transaction's muted
impact on firmwide leverage and the benefits of lower effective
interest expense and the concurrent maturity extension on the U.S.
term loan borrowings. Moody's overall ratings rationale remains
intact.

The following is a summary of rating actions taken:

Capsugel S.A. Luxembourg

  Ratings affirmed:
  Corporate Family Rating at B2
  Probability of Default Rating at B2-PD
  Senior unsecured holdco PIK notes due 2019 at Caa1 (LGD 5)

Capsugel Holdings US, Inc.

  Ratings assigned:
  Senior secured U.S. term loan due 2021 at B1 (LGD 3)

  Ratings downgraded:
  Senior secured revolving credit facility expiring 2019 to B1
  (LGD 3) from Ba3 (LGD 3)

Capsugel FinanceCo S.C.A

  Ratings downgraded:
  Senior secured European term loan due 2021 to B1 (LGD 3) from
  Ba3 (LGD 3)

The outlook on all ratings is stable.

RATINGS RATIONALE

The B2 Corporate Family Rating reflects Capsugel's very high
financial leverage and aggressive financial policies, including
significant shareholder dividends. The rating also reflects the
company's modest overall size (by revenue), and high concentration
in the niche hard capsule market. Other credit risks include the
company's exposure to gelatin costs. The rating is supported by
the company's good track record of organic, constant currency
revenue growth, and operating margin expansion. The rating is also
supported by the company's leadership in supplying hard capsules
to the pharmaceutical and dietary supplement industries, its track
record of technological innovation, and its good diversity by
geography and customer.

The stable outlook balances the company's very high leverage with
its relatively good business stability and liquidity and Moody's
expectation that debt/EBITDA will remain below 6.5 times.

The ratings could be downgraded if Moody's expects leverage to be
sustained above 6.5 times, free cash flow to debt to be negative
for a sustained period, or liquidity to materially worsen.

The ratings could be upgraded if Moody's expects adjusted debt to
EBITDA to be sustained below 5.0 times, continued stability in
profit margins despite price fluctuations in gelatin and other
commodities, and Capsugel to adhere to more conservative financial
policies.

Capsugel, headquartered in Morristown, New Jersey, is the leading
developer and manufacturer of empty, gelatin-based hard-shell
capsules to the pharmaceutical and dietary supplement industries.
The company also provides specialty polymer (non-gelatin)
capsules, dosage formulation services and liquid-filled capsules
to its customers. Capsugel is owned by Kohlberg Kravis Roberts &
Co. L.P. For the trailing twelve months ended December 31, 2015,
Capsugel generated revenue of $1.0 billion.


MILLICOM INT'L: Fitch Rates SEK2BB 2019 Sr. Unsec. Notes BB+(EXP)
-----------------------------------------------------------------
Fitch Ratings expects to rate Millicom International Cellular,
S.A. (MIC)'s proposed up to SEK2 billion senior unsecured notes
due 2019 'BB+(EXP)'. Proceeds from the issuance are expected to be
used for general corporate purposes, including tender offers for
its SEK2 billion outstanding notes due 2017.

MIC's ratings reflect the company's geographical diversification,
strong brand recognition and network quality, all of which have
contributed to its leading market positions in key markets, steady
subscriber growth, and solid operational cash flow generation. In
addition, the rapid uptake in subscribers' data usage, as well as
MIC's ongoing expansion into the under-penetrated fixed-line
services bode well for its medium- to long-term revenue growth.

Despite these diversification benefits, MIC's ratings are
constrained by the company's presence in countries in Latin
America and Africa with low sovereign ratings. The ratings are
also tempered by the recent increase in the company's financial
leverage due to M&A activities, historically high shareholder
returns, and debt allocation between subsidiaries and the holding
company.

While operational fundamentals and key financial metrics are
stable, the ongoing investigation regarding the improper payment
on behalf of Tigo Guatemala is credit negative. The timeline or
the magnitude of the potential impact stemming from this issue
remains largely uncertain at this time. Fitch will closely monitor
the situation and take immediate action, if necessary, when
details become available.

KEY RATING DRIVERS

Leading Market Positions:

Fitch expects MIC to retain its market leadership position in its
key cash-generating operating companies over the medium term
backed by its extensive network quality, strong service quality
and brand recognition. MIC has managed to retain its market
leadership in most of its key cash-generating operating countries
such as Guatemala, Paraguay, and Honduras by maintaining steady
subscriber-base expansion. MIC mobile subscribers grew 11% by
year-end 2015 compared to 2014. Additionally, the company's
increasing investment into fixed-line operation will help acquire
more revenue-generating units going forward.

Solid Performance:

MIC has continued to achieve a stable revenue and EBITDA
improvement during the fourth quarter of 2015 (4Q15), driven by
continued data subscriber expansion, solid growth in its fixed-
line operation, and the improved cost structure. On a constant
currency basis, the company has improved its revenues and EBITDA
by about 6% and 5%, respectively, compared to a year ago. The
EBITDA margin remained stable at 31% backed by the company's
efforts to rein in marketing and by holding down corporate costs,
which is a noticeable improvement compared to its consistent
EBITDA margin erosion until 2014 due to competitive pressures.
Excluding the one-off charges, including restructuring and
integration costs mainly booked in Q415, the EBITDA margin was
33.7%, which favorably compares to the 2014 level of 33.0%.

Ongoing FX Headwind:

MIC's recent solid performance has been largely diluted by the
ongoing local currency depreciation against the U.S. dollar, the
reporting currency of the company. The largest impact among the
key subsidiaries was seen in Colombia with 32% and Paraguay with
25%. Currency mismatch is also high for MIC with regard to its
debt structure, as 70% of its total debt is denominated in $US
while its cash flow generation is predominantly based in local
currency.

Positively, we believe that this risk is manageable, as the
company has stable cash flow generation without any sizable $US
bond maturities until 2020, while its access to international
capital markets have historically been solid. Also, MIC plans to
increase the local-currency denominated debt proportion up to 40%
within the next 24 months.

Diversifying Revenue Mix:

MIC's growth strategy will be increasingly centered on mobile
data, fixed internet and pay-TV services as it tries to alleviate
pressure on the traditional voice/SMS revenues. The mobile data
customer base reached 30% of total subscribers as of Dec. 31,
2015, from 20% as of end-2013, which supported 24% mobile data
revenue growth during 2015, compared to a year ago. Broadband and
pay-TV businesses also maintained solid growth, largely due to UNE
EPM Telecomunicaciones S.A., as segmental revenues grew by 164%
during the same period. As this trend continues, Fitch forecasts
mobile service revenues will to continue to fall toward 60% of
total revenues over the medium term, which compares to 83% in
2013.

Leverage to Improve:

Fitch forecasts MIC's leverage will gradually fall over the medium
term as the company continues to refrain from aggressive
shareholder payouts amidst EBITDA improvement and asset disposals,
including the recently announced DRC operation. The company's
dividend payment remained stable at $US264 million in 2015, in
line with the 2014 level, which was a sharp reduction from $US731
million including share repurchases in 2012 and $US991 million in
2011. In addition, capex should remain relatively flat at around
$US1.2-1.3 billion over the medium term, representing about 18% of
revenues, which is a decline from 22.5% in 2013.

This should lead to neutral to modest positive free cash flow
(FCF) generation and help the company reduce its leverage
moderately over the medium term, barring any material financial
impact from the ongoing legal investigation. On a proportionate
consolidation basis, the net leverage ratio was 2.3x during the
same period.

Concentration in Low-Rated Sovereigns:

Despite the diversification benefit, MIC's ratings are tempered by
its operational footprint in countries in Latin America and Africa
with low sovereign ratings and GDP per capita. The operational
environment in these regions, in terms of political and regulatory
stability and economic conditions, tends to be more volatile than
developed markets, which could have an adverse effect on MIC's
operations. This also adds currency mismatch risk, as 70% of MIC's
total debt was based in $USs while most of its cash flows are
generated in local currencies in each country.

KEY ASSUMPTIONS

-- Mid-single-digit annual revenue growth over the medium term;

-- Cable & Digital Media segment to grow to well over 25% of
    consolidated revenues over the medium term, compared to 16%
    in 2013, largely due to UNE consolidation;

-- EBITDA margin to remain stable in the short- to medium-term,
    reflecting the minority dividend payment;

-- Annual capex to remain at about $US1.2-1.3 billion over the
    medium term in line with 2015;

-- No significant increase in shareholder distributions in the
    short- to medium-term with annual dividend payments remaining
    at $US264 million.

RATING SENSITIVITIES

Negative rating action could be considered in case of an increase
in net leverage toward 3.0x without a clear path to deleveraging
due to any one or combination of the following: sustained negative
free cash flow generation due to competitive/regulatory pressures
amidst market maturity, sizable M&A activities, and aggressive
shareholder distributions.

Also, any potential material financial impact from the ongoing
investigation regarding the improper payment on behalf of its
joint venture operation in Tigo Guatemala would pressure the
ratings.

In Fitch's analysis of MIC's financial profile, the group's
proportionately consolidated key financial metrics and the amount
and the geographical breakdown of the upstream cash flow income
from its subsidiaries will remain key considerations.

Positive rating action in the short- to medium-term is unlikely
given the company's higher leverage level than in the past, its
operational concentration in low-rated countries, and the ongoing
investigation.

A positive rating action could be considered in the case of a
material improvement in diversification of cash flow generation,
mainly from investment-grade-rated countries, and stronger market
positions and stable positive free cash flow generation leading to
consistent recovery in its leverage.

LIQUIDITY

MIC's liquidity profile is good given its large cash position,
which fully covered the short-term debt as well as its well-spread
debt maturities with an average life of 5.8 years. As of Dec. 31,
2015, the consolidated group's readily available cash was $US937
million, which compares to its short-term debt of $US251 million,
on a fully consolidated basis. Fitch does not foresee any
liquidity problem for both the operating companies and the holding
company given operating companies' stable cash generation and
their consistent cash upstream to the holding company.

In addition, MIC has a $US500 million undrawn credit facility
which further bolsters its liquidity. MIC also has a good track
record in terms of its access to capital markets when in need of
external financing, which supports its liquidity management.



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N E T H E R L A N D S
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HIGHLANDER EURO: Moody's Raises Rating on Cl. D Notes to Ba1
------------------------------------------------------------
Moody's Investors Service has taken rating actions on these notes
issued by Highlander Euro CDO B.V.:

  EUR45 mil. (current balance of EUR25,960,062.32) Class B
   Primary Senior Secured Floating Rate Notes due 2022, Affirmed
   Aaa (sf); previously on June 18, 2015, Affirmed Aaa (sf)

  EUR41.25 mil. Class C Primary Senior Secured Deferrable
   Floating Rate Notes due 2022, Upgraded to Aa1 (sf); previously
    on June 18, 2015, Upgraded to A3 (sf)

  EUR25 mil. Class D Primary Senior Secured Deferrable Floating
   Rate Notes due 2022, Upgraded to Ba1 (sf); previously on
   June 18, 2015, Upgraded to Ba3 (sf)

  EUR13.75 mil. (current balance of EUR 18,191,986.40) Class E
   Secondary Senior Secured Deferrable Floating Rate Notes due
   2022, Affirmed Ca (sf); previously on Jun 18, 2015 Affirmed
   Ca (sf)

Highlander Euro CDO B.V., issued in August 2006, is a
collateralized loan obligation (CLO) backed by a portfolio of
mostly high-yield senior secured European loans.  The portfolio is
managed by CELF Advisors LLP.  The transaction's reinvestment
period ended in August 2012.

                         RATINGS RATIONALE

The rating actions on the notes are primarily a result of
deleveraging since the last rating action in June 2015.  The Class
A-2 notes have been redeemed in full and Class B notes have paid
down by approximately EUR19.0 million (42.3% of closing balance).
As a result of the deleveraging, over-collateralization (OC)
ratios have increased.  As per the trustee report dated March
2016, the Classes B, C, D and E OC ratios are reported at 405.1%,
156.5%, 114.0% and 95.24% respectively, compared to 194.0%,
128.0%, 106.1% and 94.4% in the May 2015 report.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers.  In its base
case, Moody's analyzed the underlying collateral pool as having a
performing par and principal proceeds balance of EUR105.6million,
defaulted par of EUR9.0 million, a weighted average default
probability of 19.9% (consistent with a WARF of 2914 and a WAL of
4.1), a weighted average recovery rate upon default of 47.6% for a
Aaa liability target rating, a diversity score of 14, a weighted
average spread of 3.5%.

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

Methodology Underlying the Rating Action:

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

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

In addition to the base-case analysis, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it assumed a lower weighted average recovery rate in the
portfolio.  Moody's ran a model in which it reduced the weighted
average recovery rate by 5%; the model generated outputs were
within two notches.

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

Additional uncertainty about performance is due to:

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

  Around 9.1% of the collateral pool consists of debt obligations
   whose credit quality Moody's has assessed by using credit
   estimates.  As part of its base case, Moody's has stressed
   large concentrations of single obligors bearing a credit
   estimate as described in "Updated Approach to the Usage of
   Credit Estimates in Rated Transactions," published in October
   2009 and available at:

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

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

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



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N O R W A Y
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NORSKE SKOG: ISDA Committee Postpones Talks on Credit Event
-----------------------------------------------------------
Luca Casiraghi at Bloomberg News reports that the International
Swaps and Derivatives Association, Inc.'s determinations committee
voted to postpone discussion on whether Norske
Skogindustrier ASA is in a restructuring credit event.

According to Bloomberg, the meeting will take place no later than
April 22.

                        Capital Injection

As reported by the Troubled Company Reporter-Europe on March 22,
2016, Bloomberg News related that Blackstone Group LP's GSO
Capital Partners and Cyrus Capital Partners agreed to provide as
much as EUR120 million (US$135 million) to Norske Skog to keep the
Norwegian paper maker afloat.  Norske Skog, as cited by Bloomberg,
said in a statement on March 18 the funds will inject EUR15
million in equity, provide about EUR95 million in a new
securitization facility and may buy back as much as EUR10 million
of secured notes.

                       About Norske Skog

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

As reported by the Troubled Company Reporter-Europe on April 15,
2016, Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Norway-based Norske Skogindustrier ASA
(Norske Skog) to 'SD' from 'CC'.

As reported by the Troubled Company Reporter-Europe on March 31,
2016, Moody's Investors Service affirmed Norske Skogindustrier
ASA's (Norske Skog) Corporate Family Rating (CFR) at Caa3 and the
Probability of Default Rating (PDR) at Ca-PD.




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R O M A N I A
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COMPLEXUL ENERGETIC: Court to Decide on Judicial Administrator
--------------------------------------------------------------
Romania Insider reports that the court will decide at the end of
the month if the company Euro Insol gets appointed judicial
administrator of Complexul Energetic Hunedoara (CEH).

According to Romania Insider, the Energy Ministry wanted to
appoint Euro Insol as the producer's judicial administrator.
However, the representative of Romania's Tax Agency ANAF voted
against this proposal in the creditors' meeting held last week,
arguing that a tender needed to be carried out to select the
judicial administrator, Romania Insider relays, citing local
Agerpres.

ANAF is the main creditor of CEH, holding 78% of the company's
debts, Romania Insider discloses.  The insolvency house GMC SPRL
is the producer's temporary judicial administrator, Romania
Insider notes.

CEH, Romania Insider says, has total debts of EUR268 million.

Remus Borza, the representative of Euro Insol, said two weeks ago
that CEH could be saved only if half of the miners and the
employees of the thermal plants in Valea Jiului were laid off,
Romania Insider recounts.

Complexul Energetic Hunedoara is a Romanian energy company.



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R U S S I A
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ERGOBANK LLC: Deemed Insolvent, Prov. Administration Halted
-----------------------------------------------------------
The Court of Arbitration of Moscow issued a ruling dated
March 16, 2016, with regard to case No. A40-12417/16-177-27B,
recognizing that credit institution Commercial Bank ERGOBANK, LLC
is insolvent (bankrupt) and ordering the appointment of a receiver
for the entity.

Accordingly, by virtue of the Arbitration Court's ruling, the
Bank of Russia entered a decision, Order No. OD-1140, to terminate
from April 8, 2016, the activity of the provisional administration
of ERGOBANK.

The Bank of Russia previously appointed the provisional
administration of ERGOBANK, by Order No. OD-88 dated January 15,
2016, following the revocation of the entity's banking license.


KARELIA REPUBLIC: Fitch Affirms 'B+' LT Issuer Default Ratings
--------------------------------------------------------------
Fitch Ratings has affirmed the Russian Republic of Karelia's Long-
term foreign and local currency Issuer Default Ratings (IDRs) at
'B+' and National Long-term rating at 'A(rus)'.

The agency has also affirmed the republic's Short-term foreign
currency IDR at 'B'. The Outlook on the Long-term IDRs and
National Long-term rating is Stable. Karelia's senior debt ratings
have also been affirmed at 'B+' and at 'A(rus)'.

The affirmation reflects Fitch's unchanged baseline scenario
regarding Karelia's still volatile fiscal performance over the
medium term, along with the republic's stabilized credit metrics
that are commensurate with the ratings.

KEY RATING DRIVERS

"The 'B+' rating reflects Karelia's weak fiscal performance,
material direct risk, and weak liquidity amid a continuing
difficult macro-economic environment in Russia. The ratings also
factor in our expectations of volatile operating performance in
2016-2018 and a consistently negative current balance. We expect
the republic's direct debt (bank loans and domestic bonds) to be
around 50% of current revenue over the medium term (2015: 46%)."

"We expect continued weakness in the republic's 2016 fiscal
performance, with an operating surplus of just 1% of operating
revenue. We expect an improvement in fiscal performance in 2017-
2018, driven by a recovery of tax revenues, extraordinary support
from the federal government and operating expenditure restraint.
Otherwise, Karelia would continue posting negative margins
(operating and current), reflecting prolonged structural
imbalances of its budget, which could be negative for ratings."

In its base case scenario, Fitch expects Karelia to gradually
narrow its deficit before debt variation to about 10% of total
revenue in 2016, and further to 6%-8% in 2017-2018. This compares
with a deficit before debt variation of 11.5% in 2015 and 12% in
2014. Fitch expects the trend of shrinking deficit in 2017-2018 to
be driven by the recovering profits of the republic's key tax
payers in the industrial sector.

"The republic's expenditure remains rigid, with the share of
inflexible current transfers exceeding 80% of operating
expenditure in 2013-2015. The region's financial flexibility is
also limited, as the scope for capex reduction is almost
exhausted, with capital outlays decreasing to below 10% of total
spending in 2014-2015 (2011-2013: average 15%). We expect capex
(about 10% of total spending) to extend in 2016-2018, unless the
region receives extraordinary capital transfers from the federal
government."

"We expect moderate growth of Karelia's direct debt to about 50%
of current revenue by end-2018. The republic's direct debt (in
nominal terms) increased to RUB12bn in 2015 from RUB10.5bn in
2014, or 45.5% of current revenue (2014: 42%). The region's direct
risk also increased modestly as contracted budget loans rose to
RUB9bn at end-2015, from RUB8.3bn at end-2014. Those loans are low
in interest cost and have extended maturities, stretching up to
2034."

Karelia's tax base has historically been sound, supporting above-
national median wealth metrics. However, fiscal changes introduced
in 2012-2013 by the federal government have had a profound
negative effect on the republic's fiscal capacity. In addition,
prospects for a swift recovery of Russia's economy remain weak;
Fitch expects continued contraction in the national economy of
about 1.5% yoy in 2016 (2015: -3.7%).

Russia's institutional framework for subnationals is a
constraining factor on the republic's ratings. Frequent changes in
allocation of revenue sources and assignment of expenditure
responsibilities between the tiers of government limit Karelia's
forecasting ability and negatively affect the republic's fiscal
capacity and financial flexibility. Fitch expects the region's
dependence on financial support from the federal government to
increase in 2016-2018.

RATING SENSITIVITIES

An inability to sustainably curb growth of direct risk above 80%-
85% of current revenue (2015: 79.9%), and a negative operating
balance for two years in a row, would lead to a negative rating
action.

A positive rating action could result from stabilized fiscal
performance with operating surpluses leading to sufficient
coverage of interest costs.


MIRAF-BANK JSC: Bank of Russia Discovers Misreporting of Finances
-----------------------------------------------------------------
In the course of performing its supervisory function with regard
to the activities of Miraf-Bank JSC, the Bank of Russia
established facts of gross misreporting of data received from the
bank, as these data did not show its real financial standing,
failed to include or included only partially the bank's default on
its obligations to creditors.

The presentation of reliable statements by Miraf-Bank JSC would
have resulted in grounds to revoke the bank's license pursuant to
Clause 4 of Part 2 of Article 20 of the Federal Law "On Banks and
Banking Activities".

The Bank of Russia demanded Miraf-Bank JSC to present reliable
statements, but this was left unmet by the bank.

Thus, the bank's management concealed from the supervisory
authority the grounds stipulated by the legislation of the Russian
Federation for the obligatory revocation of its banking license
that bore the evidence of a criminal offence, specified in Article
172.1 of the Criminal Code of the Russian Federation.

By its Order No. OD-137, dated January 21, 2016, the Bank of
Russia revoked the banking license of Miraf-Bank JSC effective as
of January 21, 2016.

The Bank of Russia submitted information on the activity of
management of Miraf-Bank JSC bearing the evidence of the criminal
offence to the Investigative Committee of the Russian Federation
for consideration and procedural decision-making.


MOSCOW: Fitch Affirms 'BB+' Long-Term Issuer Default Ratings
------------------------------------------------------------
Fitch Ratings has affirmed the Moscow Region's Long-term foreign
and local currency Issuer Default Ratings (IDRs) at 'BB+' with
Stable Outlooks and Short-term foreign currency IDR at 'B'. The
agency has also affirmed the region's National Long-term rating at
'AA(rus)' with a Stable Outlook.

"The affirmation reflects Moscow Region's 2015 performance being
in line with Fitch's expectation and also takes in account our
unchanged baseline scenario regarding the region's stable
budgetary performance, high self-financing capacity and low debt."

KEY RATING DRIVERS

The ratings reflect Moscow Region's satisfactory operating
performance, low net overall risk and wealth and economic
indicators that are above the national median. The ratings also
factor in an extensive public sector that raises contingent risk
to the region's budget, a weak institutional framework for Russian
sub-nationals and deteriorated national economic environment.

"Fitch projects the region's operating balance in 2016 to
consolidate at about 10% of operating revenue, which will be 4x
interest payments (2015: 5.8x). We forecast the operating balance
will moderately decline (from 13% in 2015) as operating
expenditure will be fuelled by inflation (Fitch expects 9.5% in
2016), without being fully offset by stagnating tax revenue. The
region's government managed to keep operating expenditure stable
in 2015 but we do not expect this trend to continue and expect it
to grow 5%-6% annually in 2016-2018."

Fitch forecasts Moscow Region to record a deficit before debt
variation of 3%-5% of total revenue over the medium term as the
region invests in infrastructure and maintains capex at about 15%
of total expenditure (2015: 18.7%). A significant 90% (2015: 100%)
of the capex will be funded by the region's strong current
balance, capital transfers from the federal budget and cash
reserves. At end-2015, Moscow Region had RUB56 billion liquidity,
of which RUB17 billion was earmarked for expenditures
pre-financed by the state.

Fitch expects direct risk to stabilize at about 30% of current
revenue (2015: 27%) over the medium term, supported by the
region's strong self-financing capacity. Moscow Region's reduced
to RUB98.5 billion in 2015 from RUB102.8 billion in 2014 after
partial repayment. The region's funds its activities with one-to-
five year bank loans, which composed 70% of direct risk at end-
February 2016 (RUB68.3 billion). The remaining 30% of direct risk
is represented by budget loans (RUB30.2 billion). Refinancing
needs are spread out in 2016-2018 with the largest loans (40% of
total debt) maturing in 2018. In 2016, Moscow Region needs to
repay RUB21.6 billion debt, which is 2x covered by its strong
liquidity.

Moscow Region directly and indirectly controls an extensive public
sector, consisting of more than 100 companies. This creates
additional contingent risks for the regional budget and puts
pressure on budget expenditure through administrative expenses and
subsidies. At present Fitch does not consider risk from the sector
to be significant due to the large size of the region's budget and
prudent debt practice, with no material guarantees to the public
sector.

The region's credit profile remains constrained by the weak
institutional framework for Russian local and regional governments
(LRGs), which has a shorter record of stable development than many
of its international peers. Weak institutions lead to lower
predictability of Russian LRGs' budgetary policies, which are
subject to the federal government's continuous reallocation of
revenue and expenditure responsibilities within government tiers.

Moscow Region has a well-diversified economy based on services and
processing industries that provide stable tax proceeds to the
region's budget. The region's proximity to the City of Moscow
(BBB-/F3/Negative), which is not part of the Moscow Region but a
separate administrative unit of the Russian Federation (BBB-
/F3/Negative), supports its wealth and economic indicators being
above the national median. In 2014, GRP per capita was 29% above
the national median and in December 2015 average salary was 55%
over the national median.

The region's GRP is estimated by Fitch to have decreased 2.8% in
2015, which is slightly better than the wider Russian economy (-
3.7%) as growing processing industries offset declining
construction and trade output. Fitch projects national GDP will
contract 1.5% in 2016, constraining the region's economic recovery
although economic indicators of Moscow Region should remain
strong.

RATING SENSITIVITIES

Restoration of the operating margin to the historical high of 15%
or above, accompanied by sound debt metrics with a direct risk-to-
current balance (2015: 2.1 years) below the weighted average debt
maturity profile (2015: 2.5 years) and a Russian economic
recovery, could lead to an upgrade.

Sharp growth of direct risk to above 50% of current revenue,
coupled with deterioration of operating performance resulting in
weak debt coverage, could lead to a downgrade.


TRANSAERO AIRLINES: Court Includes Aeroflot in Creditors List
-------------------------------------------------------------
PRIME reports that the Arbitration Court of St. Petersburg and the
Leningrad Region has substantiated a RUR5.3 billion debt claim of
flagship carrier Aeroflot against troubled airline Transaero and
included it into a list of creditors.

On March 3, 2015, the Ninth Arbitration Court of Appeals upheld a
decision of the Moscow Arbitration Court to order Transaero to
repay approximately RUR5.3 billion debt to Aeroflot, PRIME
relates.

Transaero, whose air operator certificate was recalled in late
October 2015, has failed to service RUR250 billion of debt, PRIME
discloses.

The airline's largest creditors -- Sberbank, Alfa-Bank, and VTB
Bank -- as well as the Federal Tax Service and the airline itself
earlier filed for bankruptcy to the court, PRIME recounts.

OJSC Transaero Airlines is a Russian airline with its head office
in Saint Petersburg.  It operates scheduled and charter flights to
103 domestic and international destinations.



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


KURUM: Albanian Court Appoints Temporary Receiver
-------------------------------------------------
SeeNews reports that a first-instance Albanian court said it
appointed a temporary receiver at Kurum, one of the biggest
industrial companies in the country, until it completes a
restructuring process.

In the beginning of March, the steel mill unexpectedly filed for
bankruptcy and restructuring with the Tirana court, SeeNews
relates.

According to SeeNews, the court said in a ruling published on its
website on April 15 that all Kurum creditors can submit their
claims by June 15.

Kurum will continue operations during the restructuring process,
SeeNews relays, citing local broadcaster Top Channel.

Top Channel said Kurum owes banks and international institutions
some EUR135 million (US$152.9 million) in credits and overdrafts,
SeeNews notes.

Kurum is a Turkish-owned steel producer.



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


CASTLE THEATRE: Owners Placed Into Administration
-------------------------------------------------
Rob Moore at Business Sale reports that the operating company
behind the Castle Theatre in Wellingborough has been placed into
administration.

The announcement follows on less than a month since Wellingborough
Council cited "poor financial management" as the chief reason for
ending Castle (Wellingborough)'s contract to operate, according to
Business Sale.

The operating company has subsequently been told to wrap up its
business in the venue within six months, the report notes.
Wellingborough Council will use that time to find another
operating solution for the theatre, the report relays.

Local administrator company PBC Business Recovery and Insolvency
issued the following statement: "The Castle (Wellingborough) . .
has today been placed into administration.

"The directors were compelled to act in the best interests of the
company's creditors following the recent announcement by
Wellingborough Council that they had terminated the contract to
operate the Castle Theatre.

"All performances and other community activities will, as far as
possible, continue to go ahead, and the administrator will pay
staff and performers through ticket sales and merchandise
revenue."

Castle Theatre was in the process of laying the groundwork for a
GBP12 million investment to refurbish the venue and add a new
studio theatre to the existing facilities, the report says.

Gary Pettit -- garypettit@pbcbusinessrecovery.co.uk -- a joint
administrator at PBC Business Recovery and Insolvency, said: "This
is very sad news for the Wellingborough community and, while we
are working hard to find a solution so that the Castle can remain
a focus in Wellingborough, we would encourage you all to continue
to support the theatre," the report adds.


FINSBURY SQUARE 2016-1: Moody's Rates Class X Notes (P)Ca(sf)
-------------------------------------------------------------
Moody's Investors Service has assigned provisional long-term
credit ratings to Notes to be issued by Finsbury Square 2016-1:

  GBP Class A mortgage backed floating rate notes due February
   2058, Assigned (P)Aaa (sf)
  GBP Class B mortgage backed floating rate notes due February
   2058, Assigned (P)Aa1 (sf)
  GBP Class C mortgage backed floating rate notes due February
   2058, Assigned (P)A1 (sf)
  GBP Class D mortgage backed floating rate notes due February
   2058, Assigned (P)Baa1 (sf)
  GBP Class E mortgage backed floating rate notes due February
   2058, Assigned (P)Caa2 (sf)
  GBP Class X floating rate notes due February 2058, Assigned
   (P)Ca (sf)

Moody's has not assigned ratings to the GBP Class Z.

The portfolio backing this transaction consists of UK prime
residential loans originated by Kensington Mortgage Company
Limited.

On the closing date Kensington Mortgage Company Limited will sell
the portfolio to Kayl PL S.a.r.l. and Koala Warehouse Limited.  In
turn the Sellers will sell the portfolio to Finsbury Square
2016-1.

                        RATINGS RATIONALE

The ratings take into account the credit quality of the underlying
mortgage loan pool, from which Moody's determined the MILAN Credit
Enhancement and the portfolio expected loss, as well as the
transaction structure and legal considerations.  The expected
portfolio loss of [2]% and the MILAN required credit enhancement
of [12]% serve as input parameters for Moody's cash flow model and
tranching model, which is based on a probabilistic lognormal
distribution.

Portfolio expected loss of [2]%: this is higher than the UK Prime
RMBS sector average and was evaluated by assessing the
originator's limited historical performance data and benchmarking
with other UK prime RMBS transactions.  It also takes into account
Moody's stable UK Prime RMBS outlook and the UK economic
environment.

MILAN CE of [12]%: this is higher than the UK Prime RMBS sector
average and follows Moody's assessment of the loan-by-loan
information taking into account the historical performance
available and the following key drivers: (i) although Moody's have
classified the loans as prime, it believes that borrowers in the
portfolio often have characteristics which could lead to them
being declined from a high street lender; (ii) the weighted
average CLTV of [71.52]%, (iii) the very low seasoning of [0.46]
years, (iv) the proportion of interest-only loans ([20.66]%); and
(v) the absence of any right-to-buy, shared equity, fast track or
self-certified loans.

At closing the mortgage pool balance will consist of GBP million
of loans.  The General Reserve Fund will be equal to 2.0% of the
principal amount outstanding of Class A and E notes at issue date.
This amount will only be available to pay senior expenses, Class A
to D note interest and to cover losses.  After class D has been
fully amortized, the General Reserve Fund will be equal to 0%.
The General Reserve fund will be released to the revenue waterfall
on the final legal maturity or after the full repayment of Class D
notes.  If the Reserve fund is less than 1.5% of the principal
outstanding of class A to E, the Liquidity Reserve Fund will be
funded with principal proceeds up to an amount equal to 2% of the
Class A and Class B outstanding balance.

Operational risk analysis: Kensington Mortgage Company Limited
("KMC", not rated) will be acting as servicer.  KMC will sub-
delegate certain primary servicing obligations to Home Loan
Management (HML, not rated).  In order to mitigate the operational
risk, there will be a back-up servicer facilitator, and Wells
Fargo Bank, N.A. (Aa1/P-1/Aa1(cr)) will be acting as a back-up
cash manager from close.  To ensure payment continuity over the
transaction's lifetime the transaction documents including the
swap agreement incorporate estimation language whereby the cash
manager can use the three most recent servicer reports to
determine the cash allocation in case no servicer report is
available.  The transaction also benefits from principal to pay
interest for Class A to D notes, subject to certain conditions
being met.

Interest rate risk analysis: BNP Paribas (A1/P-1/Aa3(cr)) is
expected to act as the swap counterparty for the fixed-rate
mortgages in the transaction.  The floating-rate loans will be
unhedged.  Moody's has taken into consideration the absence of
basis swap in its cash flow modeling.

The provisional ratings address the expected loss posed to
investors by the legal final maturity of the Notes.  Moody's
issues provisional ratings in advance of the final sale of
securities, but these ratings represent only Moody's preliminary
credit opinions.  Upon a conclusive review of the transaction and
associated documentation, Moody's will endeavor to assign
definitive ratings to the Notes.  A definitive rating may differ
from a provisional rating.  Other non-credit risks have not been
addressed, but may have a significant effect on yield to
investors.

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
January 2015.

The analysis undertaken by Moody's at the initial assignment of
ratings for RMBS securities may focus on aspects that become less
relevant or typically remain unchanged during the surveillance
stage.

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

Significantly different loss assumptions compared with Moody's
expectations at close due to either a change in economic
conditions from our central scenario forecast or idiosyncratic
performance factors would lead to rating actions.  For instance,
should economic conditions be worse than forecast, the higher
defaults and loss severities resulting from a greater
unemployment, worsening household affordability and a weaker
housing market could result in downgrade of the ratings.
Deleveraging of the capital structure or conversely a
deterioration in the notes available credit enhancement could
result in an upgrade or a downgrade of the rating, respectively.

Stress Scenarios:

Moody's Parameter Sensitivities: If the portfolio expected loss
was increased from [2]% to [4]% of current balance, and the MILAN
CE was increased from [12]% to [16.8]%, the model output indicates
that the Class A notes would still achieve Aaa(sf) assuming that
all other factors remained equal.  Moody's Parameter Sensitivities
quantify the potential rating impact on a structured finance
security from changing certain input parameters used in the
initial rating.  The analysis assumes that the deal has not aged
and is not intended to measure how the rating of the security
might change over time, but instead what the initial rating of the
security might have been under different key rating inputs.

Moody's Parameter Sensitivities provide a quantitative/model-
indicated calculation of the number of rating notches that a
Moody's structured finance security may vary if certain input
parameters used in the initial rating process differed.

The analysis assumes that the deal has not aged and is not
intended to measure how the rating of the security might migrate
over time, but rather how the initial rating of the security might
have differed if key rating input parameters were varied.
Parameter Sensitivities for the typical EMEA RMBS transaction are
calculated by stressing key variable inputs in Moody's primary
rating model.


FINSBURY SQUARE 2016-1: Fitch Rates Class X Debt BB-(EXP)sf
-----------------------------------------------------------
Fitch Ratings has assigned Finsbury Square 2016-1 plc's notes
expected ratings as follows:

Class A: 'AAA(EXP)sf', Outlook Stable
Class B: 'AA(EXP)sf', Outlook Stable
Class C: 'A(EXP)sf', Outlook Stable
Class D: 'BBB(EXP)sf', Outlook Stable
Class E: not rated
Class X: 'BB-(EXP)sf', Outlook Stable
Class Z: not rated

This transaction will be a securitization of near-prime owner-
occupied and buy-to-let (BTL) mortgages originated by Kensington
Mortgage Company in the UK. The ratings are based on Fitch's
assessment of the underlying collateral, available credit
enhancement, Kensington's origination and underwriting procedures,
and the transaction's financial and legal structure.

KEY RATING DRIVERS

Near-Prime Mortgages

Fitch believes Kensington's underwriting practices are robust and
that the lending criteria do not allow for any adverse credit 24
months before application. Kensington has a manual approach to
underwriting, focusing on borrowers with some form of adverse
credit and/or complex income.

Historical book-level performance data indicates robust
performance, although data is limited, especially for BTL
originations. Fitch assigned default probabilities using the prime
default matrix while applying an upward correction for the lender
adjustment.

Split Owner Occupied and Buy-to-Let Originations
Unlike in recent transactions with Kensington originations
(Gemgarto 2015-1 and 2015-2), the pool that is to be securitized
consists of a split of owner-occupied and BTL originations. The
proportion of BTL originations in the provisional portfolio is
18.6%.

Adverse Credit

The pool has a higher proportion of adverse credit than Gemgarto
2015-1 plc, and is comparable to that of Gemgarto 2015-2. The
number of county court judgments in the provisional portfolio is
12.8%, which is high compared to transactions classified by Fitch
as prime. Fitch has applied an upward adjustment to the default
probability for these characteristics, in line with its criteria.

Unrated Originator and Seller

The originator and seller are unrated entities and so may have
limited resources to repurchase mortgages if there is a breach of
the representations and warranties. However, there are mitigating
factors, such as a low occurrence of previous breaches of the
representations and warranties, a file review performed by Fitch
and the provision of a draft third-party agreed-upon procedures
(AUP) report, which indicated no adverse findings material to the
rating analysis. Fitch expects to receive the final AUP report
before assigning final ratings.

RATING SENSITIVITIES

Material increases in the frequency of defaults and loss severity
on defaulted receivables that produce losses greater than Fitch's
base-case expectations may result in negative rating actions on
the notes. Fitch's analysis revealed that a 30% increase in the
weighted average foreclosure frequency, along with a 30% decrease
in the weighted average recovery rate, would imply a downgrade of
the class A notes to 'A+sf' from 'AAAsf'.

DUE DILIGENCE USAGE

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

DATA ADEQUACY

Kensington provided Fitch with a loan-by-loan data template. All
relevant fields were provided in the data tape, with the exception
of prior mortgage arrears. Performance data on historical static
arrears were provided for all loans originated by Kensington, but
the scope of the data was limited due to rather low origination
volumes, especially in 2010-2012, and the length of available
history (Kensington started a new lending programme in 2010).

Kensington has experienced only four sold repossessions since
2009, due to its limited origination history. When assessing the
relevant assumptions to apply for the quick-sale adjustment (QSA),
Fitch considers the robustness of the initial valuations as the
key driver together with the special servicing arrangements.

The QSA assumptions are based on a comparison between sale price
and an indexed original valuation, so it is important to be clear
that the original valuations obtained were robust and that
sufficient controls and processes were in place to help ensure the
veracity of the valuations received.

In Fitch's view Kensington has a robust approach to obtaining
property valuations -- with full valuations always required
together with additional desktop valuation checks, and audits made
when the valuations differ substantially. Fitch also considers
that the special servicing, which is performed by Kensington,
demonstrates high overall servicing ability. The agency has
therefore applied QSA assumptions in line with its standard
criteria and has not applied any upward adjustments.

In the last 12 months, Fitch conducted a site visit to
Kensington's offices and conducted a file review to check the
quality of Kensington's originations. Fitch reviewed the results
of the draft AUP conducted on the asset portfolio information,
which indicated no adverse findings material to the rating
analysis. Fitch expects to receive the final AUP report before
assigning final ratings.

Overall, and together with the assumptions referred to above,
Fitch's assessment of the asset pool information relied on for the
agency's rating analysis under its applicable rating methodologies
indicates that it is adequately reliable.


GINGER FOX: Sold Out of Administration
--------------------------------------
Insider Media Limited reports that Ginger Fox Ltd, a Cheltenham-
based company which designs and develops games and novelty gifts,
has been sold out of administration.

Simon Girling -- simon.girling@bdo.co.uk -- and Shay Bannon --
shay.bannon@bdo.co.uk -- from BDO were appointed as joint
administrators of Ginger Fox Ltd on April 11, 2016.

Listed parent LiteBulb Group has confirmed that the business and
assets have been bought to Hacche Retail Ltd for a consideration
of GBP321,892, the report notes.  BDO said that following the deal
staff had transferred to the new company with no redundancies
made, the report says.

Ginger Fox was founded in 2007 and specializes in adult and family
games, brainteasers and novelty gifts.

Hacche Retail has also acquired Meld Marketing Strategies Ltd,
another Cheltenham-based company in the group, from administration
for GBP131,109, the report notes.  A third group company, Litebulb
Studios Ltd, was sold to Hubcom Ltd for consideration of
GBP20,000, the report relays.

In a statement, Litebulb said it was unable to provide "guidance
on the timeframe for, or likelihood of, realisations" but at this
stage the directors believed there was likely to be "no return to
shareholders," the report notes.

Earlier this month, Litebulb-owned businesses Concept Merchandise
Ltd and Bluw Ltd were placed into administration, the report
discloses.

Shares in Litebulb were suspended last month after the branded
product developer announced it would dispose of its trading
operations having decided not to pursue additional financing, the
report adds.


MINICABSTER: Falls Into Administration, Assets Get Snapped Up
-------------------------------------------------------------
Chris St Cartmail at Business Sale reports that a Minicabster (or
Anycabs as it was once known), a business start-up that created an
app to compare minicab prices recently fallen into administration,
has had its assets bought at an arguably very cheap price by an
astute business in the transport industry.

Minicabster (or Anycabs as it was once known) began life in 2011,
and allows people to type in their journey details into the
website or its mobile app and get live quotes from local cab
operators, according to Business Sale.  It fell into
administration at the end of February this year as it struggled
with customer acquisition and the difficulties of keeping drivers
on the books, the report notes.

The administrators Elwell Watchorn & Saxton LLP are believed to
have worked hard to try and sell the business, but in the end
Transport Innovation picked up the assets, which may include the
customer database and app search, for a five figure sum, the
report relays.

Transport Innovation run a Freephone taxi service "The UGO
Freephone", mostly found in supermarkets across the country, the
report notes.

The press is full of stories of ambitious start-up raising capital
to pursue their dreams of taking over the market. However one
ought not to forget the fact that most start-ups in fact fail,
most within two years the report says.  Considering there are a
number of very well-funded players in this sector, including Uber,
Kabbee and Hailo, it's surprising that Minicabster lasted as long
as it did without a strongly differentiated product, the report
discloses.

Back in August 2013, Minicabster founders Brooke Purse and David
Buttress raised GBP2 million of funding from investors including
and Tom Singh, founder of New Look and Daniel McPherson, founder
of Launcha, the report relays.


REACTIV MEDIA: Owner Avoids Fine, Puts Firm in Liquidation
----------------------------------------------------------
Emily Chan at Mail Online report that the millionaire boss of a
cold call business has avoided paying a GBP75,000 fine after
putting his company into liquidation -- as he plans a lavish
wedding at The Savoy.

Tony Abbott, 44, has filed a petition to wind up Reactiv Media,
which was fined by the Information Commissioner's Office (ICO) for
'bombarding' people with nuisance calls, according to Mail Online.

The West Yorkshire-based company - which cold called people to
sell insurance, find mis-sold PPI claimants and conduct surveys -
has refused to pay the fine, the report notes.

The report discloses that Mr. Abbot is set to get married to one
of his company co-directors, Stephanie Bell, at The Savoy in a
wedding expected to cost more than GBP100,000, the Sunday
Telegraph reported.

Reactiv Media Ltd was initially fined GBP50,000 in July 2014 by
the ICO, after 600 complaints were made about the company making
unsolicited calls between November 2012 and December 2013, the
report says.

It was increased to GBP75,000 in April 2015, after the company --
which has eight million phone numbers on its database -- appealed
to the Information Tribunal, the report notes.

The company is believed to owe hundreds of thousands to creditors.

Mr. Abbott set up a new company, called Flip It Marketing, last
September.

According to a Sunday Telegraph investigation, 14 out of 20
companies that have been fined by the ICO for nuisance calls have
gone bust or declared themselves insolvent, the report relays.

An ICO spokesperson said: 'The people behind nuisance calls cause
upset, alarm and distress, the report discloses.

'The fines we issue send a clear message that we're prepared to
come down hard on companies that break the law.  We can pursue
companies who do not pay fines through the courts.  The law
doesn't give us the power to prosecute company directors, nor can
we take action against directors of companies that go into
liquidation while still owing a fine,' the report quoted an ICO
spokesperson as saying


                            *********

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

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

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


                            *********


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

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

Copyright 2016.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000 or Nina Novak at
202-362-8552.


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