TCREUR_Public/160708.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

              Friday, July 8, 2016, Vol. 17, No. 134



BULGARIAN ENERGY: Fitch Affirms 'BB-' IDR, Outlook Negative


DEXIA CREDIT: S&P Lifts Rating on Nondeferrable Sub. Debt to B-


KTG AGRAR: Files for Insolvency, Seeks Self-Administration


M ESTATE: September 7 Deadline Set for Binding Offers


BANCO ESPIRITO: Deloitte Provides Estimates on Credit Recovery
PORTUGAL TELECOM: Bankruptcy Credit Event Triggers Swaps


ARCELORMITTAL SA: Fitch Issues Correction to May 6 Rating Release


CAIXA PENEDES 2: Moody's Hikes Class C Notes Rating to B1(sf)


VIKING SUPPLY: Provides Update on Financial Restructuring Talks

U N I T E D   K I N G D O M

BHS GROUP: Holds Closing Down Sales in Northern Ireland Stores
TATA STEEL UK: To Pause Sale of Business on Brexit Concerns
ULYSSES PLC: Fitch Lowers Rating on Class A Notes to 'BBsf'
* UK: Corporate Insolvency Framework Reforms Need Improvements


* BOOK REVIEW: The Sorcerer's Apprentice - Medical Miracles



BULGARIAN ENERGY: Fitch Affirms 'BB-' IDR, Outlook Negative
Fitch Ratings has affirmed Bulgarian Energy Holding EAD's (BEH)
Long-Term Foreign and Local Currency Issuer Default Ratings (IDR)
and its foreign currency senior unsecured rating at 'BB-'.  The
Outlook is Negative.  The agency has also assigned BEH's upcoming
Eurobond an expected foreign currency senior unsecured rating of
'BB-(EXP)'.  The final rating is contingent on the receipt of
final documents conforming materially to the preliminary

The affirmation reflects BEH group's substantially improved funds
from operations (FFO) in 2015 and 2016 from a very low level in
2014 thanks to various legislative and regulatory changes
implemented during 2015 and successful renegotiations of power
purchase agreements (PPAs) with two thermal power plants.

The Negative Outlook reflects BEH's insufficient liquidity to
cover short-term debt maturing mostly in April 2017 and negative
free cash flow (FCF) projected by Fitch.  After the long-term
bond issue planned for 3Q16, liquidity should cover short-term
debt and negative FCF, which is likely to lead us to revise the
Outlook to Stable from Negative.

The ratings are notched up one level from BEH's standalone
rating, reflecting the group's strong links with the Bulgarian
state (BBB-/Stable), including guarantees for part of the BEH
group's debt. We expect the state to support BEH should the
company have insufficient liquidity in a scenario of payment of
the full arbitration amount recently ordered by an arbitration
court in relation to the terminated Belene nuclear power plant

A declining share of state-guaranteed debt to less than 10%-15%
of total group debt or lack of additional tangible support if
needed would result in a possible removal of the currently
applied one-notch uplift.


NEK's Improved Financial Position

The affirmation reflects the BEH group's substantially improved
cash flow generation in 2015 after very weak results for 2014.
This is largely due to a narrowed power tariff deficit at BEH's
subsidiary Natsionalna Elektricheska Kompania EAD (NEK), a public
supplier of electricity in Bulgaria, following a number of
legislative and regulatory changes implemented during 2015.
These included the creation of a Security of the Electricity
System Fund (SESF), which collects revenues for the co-funding of
NEK's deficit from a new 5% charge on sales of electricity
producers and proceeds from the sale of CO2 allowances by the

In addition, an obligation-to-society fee paid to NEK by
customers on the free market was increased for the regulatory
period from August 2015 to June 2016, although the positive
impact of this change was partially reduced by a cut of NEK's
sale price on the regulated market.  At the same time, NEK's
obligations to purchase electricity from renewable energy sources
and highly efficient cogeneration sources at above-market
preferential prices were reduced.

As a result, NEK's EBITDA loss narrowed to BGN124 mil. in 2015
from BGN503 mil. in 2014.  Exceptionally high losses in 2014 were
driven by NEK's inability to fully recover the costs of purchased
electricity from various generation sources, including renewable
energy sources, cogeneration plants and thermal power plants with
PPAs, given the insufficient level of NEK's regulated sale

Fitch expects NEK's cash flows to improve further in 2016 due to
the full-year impact of 2015 legislative and regulatory changes
and also due to the renegotiation of NEK's PPAs with two thermal
power plants, AES-3C Maritsa East 1 EOOD and Contour Global
Maritsa East 3 AD, which came into force following the repayment
of NEK's overdue trade payables to these two plants in April
2016. As a result, Fitch expects NEK to generate positive EBITDA
of about BGN0.1 bil. in 2016 for the first time since 2012.

Regulatory Regime's Weakness

Despite recent positive developments addressing NEK's tariff
deficit, the BEH group is yet to establish a track record of
improved cash flows while the Bulgarian operating environment
remains subject to high regulatory and political risk.  This is a
constraint for the rating.

The regulatory framework in Bulgaria is less developed than in
most other EU countries and provides lower and far less
predictable remuneration for electricity and gas networks and for
electricity and gas supply.  Another constraint relates to
electricity price-setting for a substantial part of power
generation, which is often influenced by political decisions.
Planned liberalization of the electricity generation market in
Bulgaria may improve cash flows of the BEH group given that part
of electricity generation is currently sold at regulated prices,
below market levels.

Repayment of Overdue Payables

NEK's widened tariff deficit in 2014 created liquidity issues for
the company and an increase of overdue trade payables to its
suppliers.  In April 2016, after several months of attempts to
raise new funding, BEH managed to raise a bridge loan of
EUR535 mil. (BGN1 billion) which allowed NEK to repay overdue
trade payables of BGN1.1 bil. to two thermal power plants.  The
bridge facility is part of the plan to raise long-term debt
initiated in September 2015.  The bridge facility is planned to
be repaid from the proceeds of an upcoming bond issue.

After the repayment of overdue trade payables to two thermal
power plants, renegotiation of NEK's long-term contracts with
these two plants agreed in April 2015 came into force.  As a
result, the capacity tariffs NEK pays to both power plants
decreased by about 15%, which has a positive impact on NEK's
EBITDA of about BGN100m per year.

Decision on Belene Arbitration

An arbitration court has recently ordered NEK to pay EUR550 mil.
(BGN1.1 bil.) to Russia's Atomstroyexport for the nuclear power
plant equipment following a long arbitration process related to
the terminated Belene nuclear power plant project.  Fitch assumes
in our rating case projections that NEK will pay the ordered
amount to the Russian party by end-2017.  This would increase
BEH's FFO adjusted net leverage in 2017 to 3.7x (compared with
2.3x in a scenario of no payment for the Belene arbitration)
still well below the negative rating guideline of 5x.

It is possible that NEK will not have to pay the full arbitration
amount of EUR550 mil. (BGN1.1 bil.), which is the value of the
produced equipment but only a net amount as the equipment could
be sold back to the Russian party.  The Bulgarian government has
recently started discussions with the Russian counterparty
regarding a net payment.  If the negotiations with the Russians
are not successful, an alternative measure could be for the
Bulgarian state to inject cash to BEH group by purchasing non-
operational assets related to the construction of the Tsankov
Kamak dam from NEK.  These assets are worth about BGN900 mil. and
are mainly related to road infrastructure and a dam wall which by
law should not be held on NEK's balance sheet, but should be
exclusive state property.  Effectively, the arbitration payment
could be financed from the cash injection by the state.

Fitch treats these scenarios as an upside to the rating.  The
company does not expect to pay the full amount without the
government's tangible support or expects to pay only a net amount
to the Russian party.  Therefore, no new external funding is
planned for the Belene arbitration payment.

Bond Issue to Improve Liquidity

BEH group's available liquidity, mostly comprising BGN1.2 bil. of
unrestricted cash, at end-April 2016 was not sufficient to fully
cover short-term debt of BGN1.2 bil. and negative FCF of
BGN0.3 bil. (projected by us for 2016, which is a proxy for FCF
for 12 months starting from end-April 2016).  This negative FCF
excludes BGN0.9 bil. of working capital changes which mostly
comprise an outflow in April 2016 to repay overdue trade payables
funded by a bridge loan.

After the long-term bond issue planned for 3Q16 liquidity should
be sufficient to cover short-term debt and the Fitch-projected
negative FCF.  Fitch expects the state to support BEH should the
company have insufficient liquidity in a scenario of payment of
the full arbitration amount recently ordered by an arbitration
court in relation to the terminated Belene nuclear power plant

Following the planned bond issue and bridge loan repayment, the
next large debt maturity is in November 2018 when the EUR500m
bond (BGN1bn) issued in 2013 matures.  Fitch expects BEH to start
the bond refinancing process well ahead of maturity.

Senior Unsecured Debt Rating

The senior unsecured rating is at the same level as the IDR.
However, if the ratio of prior-ranking debt (the debt of
subsidiaries who do not guarantee BEH) to consolidated EBITDA is
above 2x on a sustained basis then Fitch would consider rating
unsecured debt one notch lower than the IDR.  This ratio was
temporarily above 2x in 2014 due to depressed EBITDA but improved
to below 1x in 2015 thanks to EBITDA recovery.  Fitch expects
that prior-ranking debt to EBITDA will remain well below 2x in
the next few years.

Strong Links with the State

The IDR is notched up one level from BEH's standalone rating,
reflecting the group's strong links with the Bulgarian state.
This is mainly evidenced by state guarantees for 23% of the
group's debt provided to some BEH subsidiaries (as of end-2015),
down from 50% in 2012, its strong operational ties with the state
and its strategic importance due to its dominant market position
in the country's electricity and gas market.

Fitch expects that the level of state guarantees will decline
further in 2016-2017 as the state-guaranteed debt is amortized
and most new debt is unlikely to be guaranteed in Fitch's view.
The only planned new state-guaranteed loan is for a gas
interconnector with Greece (BGN215 mil.) to be taken in 2016.
The declining share of state-guaranteed debt to less than 10%-15%
of total group debt or lack of additional tangible support if
needed would be negative for the rating.

The government did not provide a guarantee for the bridge
facility, which was initially expected by potential lenders,
saying that NEK's deficit issue has to be resolved first.
However, the government was instrumental in the implementation of
legal and regulatory changes to improve NEK's financial situation
supporting Fitch's view of current strong links with BEH.

The government plans to issue a comfort letter before the
Eurobond issue stating that the Bulgarian State will undertake
necessary measures to financially support BEH so that BEH meets
its obligations to the bondholders.  The letter will say that
notification to the EU will be made before support is granted in
line with the EU's state aid rules.  Fitch treats comfort letters
as a weaker form of support than guarantees.

Corporate Governance Limitations

The ratings reflect BEH's corporate governance limitations,
including a qualified audit opinion for BEH group's 2009-2015
financial statements and frequent management changes.  Fitch
views the group's financial transparency, including on business
segments as weak compared with its European peers.

                         KEY ASSUMPTIONS

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

   -- Improvement in NEK's EBITDA from a BGN0.5 bil. loss in 2014
      to a BGN0.1 bil. profit in 2016 on the back of regulatory
      and legislative changes and renegotiation of PPAs.  This is
      the key driver of improved profitability of the BEH group.

   -- Proceeds from the upcoming bond issue used to repay
      EUR535 mil. (BGN1 bil.) bridge loan raised in April 2016.

   -- Capex of BGN3 bil. in 2016-2019, co-funded with EU grants
      and CO2 reimbursement; capex to add to negative FCF in the
      medium term

   -- NEK to pay EUR550 mil. (BGN1.1 bil.) to the Russian party
      by end-2017.

   -- Forthcoming tangible state support in case of prolonged
      tight liquidity position

                       RATING SENSITIVITIES

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

   -- Prolonged tight liquidity position.

   -- FFO adjusted net leverage exceeding 5x on a sustained

   -- Weakening links between BEH and Bulgaria through, for
      instance, a reduction in the share of state-guaranteed debt
      to less than 10%-15% of total group debt or lack of
      additional tangible support if needed.

   -- Sustained increase in prior-ranking debt above 2x EBITDA,
      which would be negative for the senior unsecured rating.

Positive: The Outlook is Negative and Fitch currently thus does
not anticipate an upgrade.  Nonetheless, future developments that
could lead to positive rating action include:

   -- Improved liquidity position and projected FFO adjusted net
      leverage below 5x on a sustained basis would lead to a
      revision of the Outlook to Stable.

   -- Tangible government support, including additional state
      guarantees materially increasing the share of state-
      guaranteed debt or cash injections for NEK's payment of the
      arbitration amount related to the terminated Belene nuclear
      project would support the one-notch uplift over the
      standalone rating for strong links with the state in the
      longer term.

   -- Substantially lower payment for the Belene nuclear power
      plant equipment agreed with the Russian party compared with
      the amount ordered by the arbitration court.

   -- Longer track record of a shrinking accumulated tariff
      deficit at NEK.

   -- Progress in the liberalization of the electricity market
      through a rising share of market-based pricing in the
      generation sector.

   -- Stronger corporate governance.


DEXIA CREDIT: S&P Lifts Rating on Nondeferrable Sub. Debt to B-
S&P Global Ratings affirmed its 'BBB/A-2' long- and short-term
counterparty credit ratings on France-based Dexia Credit Local
(DCL).  The outlook remains stable.

At the same time, S&P raised the issue rating on DCL's
nondeferrable subordinated debt to 'B-' from 'CCC-'.

In addition, S&P affirmed its 'BBB-/A-3' issuer credit ratings on
Dexia Crediop SpA (Crediop), DCL's Italy-based subsidiary.  The
outlook is stable.

The affirmation of the ratings on DCL incorporates S&P's view of
the continuous strong commitment of the Belgian and French
governments to assist DCL in its orderly wind-down.  S&P regards
DCL as a government-related entity (GRE), based on the bank's
ownership by the Belgian and French governments.  The long-term
rating on DCL incorporates S&P's opinion that there is a high
likelihood of timely and sufficient extraordinary support from
the government owners if needed.

"We acknowledge that DCL's dependence on exceptional funding
mechanisms and financing from the central bank has diminished.
DCL is increasingly using short- and medium-term market funding
through market repurchase agreement transactions to complement
the EUR85 billion maximum available amount in government-
guaranteed issues.  We view this positively as it indicates the
bank is recovering a bit of the funding flexibility it lost when
the group was bailed out in 2011.  As a result, we reassessed the
bank's liquidity to moderate from weak, leading to a stronger
stand-alone credit profile (SACP) assessment.  At the same time,
we have removed the three notches of uplift we previously applied
to account for our view of short-term extraordinary government
support.  We believe that the French and Belgian governments have
demonstrated their willingness to support DCL's plans to restore
its ongoing liquidity to a level in line with our moderate
category, and to reduce DCL's reliance on funding from central
banks.  Our revised assessments offset each other, leading us to
affirm the long-term rating on DCL at 'BBB'," S&P said.

In addition to these factors, the ratings on DCL are based on the
bank's 'bbb+' anchor and S&P's assessments of its adequate
business position, moderate capital and earnings, weak risk
position, and below-average funding.  S&P assess DCL's stand-
alone credit profile (SACP) at 'bb'.

The 'bbb+' anchor for DCL draws on our banking industry country
risk assessment methodology's economic risk scores for the
countries where the bank operates and the '3' industry risk score
for France, where it is domiciled.  The group's assets are
exposed mainly to the U.S., Italy, France, Germany, U.K., and
Spain, resulting in a blended economic risk score of '4'.

S&P's assessment of DCL's business position as adequate reflects,
in S&P's opinion, the benefit of the stability provided by the
French and Belgian governments' commitment to supporting an
orderly wind-down of the Dexia group.  Following the sale of the
main commercial franchises, DCL's primary objective is to manage
down its assets in an orderly manner, while maximizing the value
recovered on behalf of the two governments.

S&P's moderate assessment of DCL's capital and earnings is based
on S&P's view that the bank's projected risk-adjusted capital
ratio before diversification will be below 7% over the next 18-24
months, compared with 7% on Dec. 31, 2015.  It is also based on
very high unrealized losses in DCL's bond portfolio as a
proportion of the bank's capital and weak earnings capacity.

S&P assess DCL's risk position as weak.  This primarily reflects
S&P's view that the bank's mostly unsecured exposures with very
long maturities are highly sensitive to any volatility in capital
markets, notably credit spreads, and the geographic concentration
of the residual portfolio.

The long-term counterparty credit rating on DCL is three notches
higher than its SACP because of S&P's view of the high likelihood
of support from the Belgian and French governments.

S&P raised the issue rating on DCL's nondeferrable subordinated
debt to 'B-' to reflect that DCL has a stronger SACP.

S&P now considers Crediop to be a core subsidiary of DCL, as part
of the orderly wind down.  Under S&P's base case, it do not
foresee a scenario in which Crediop is not part of the group,
given that the subsidiary is now fully integrated within DCL to
be wound down.  S&P typically rate core important subsidiaries at
the level of the rating on the parent, unless their rating is
capped by S&P's sovereign rating of their country of domicile.
This exception applies to Crediop, given the 'BBB-' rating on
Italy, where almost all of Crediop's assets are based.

S&P's outlook on DCL is stable.  This reflects S&P's expectations
that DCL will implement an orderly wind-down and will continue to
benefit from the strong commitment of the Belgian and French
governments in this process over the next 18-24 months.  The
ratings already factor in S&P's expectation that DCL will be
lossmaking for several years.  A downgrade of Belgium or France
would not in itself prompt a negative rating action on DCL.

S&P might lower the ratings on DCL if, contrary to S&P's
expectations, the bank was unable to maintain sufficient access
to market funding including through market repurchase agreement
transactions  complementing EUR85 billion in government-
guaranteed debt to implement its wind-down plan.  S&P might also
lower the ratings if the likelihood of government support were to

Ratings upside is remote, given the current level of ongoing and
extraordinary government support factored into the ratings.

The outlook on the long-term rating on Crediop is stable,
mirroring the outlook on Italy.  Any positive or negative rating
action on the sovereign rating on Italy would impact the issuer
credit rating on Crediop in tandem.


KTG AGRAR: Files for Insolvency, Seeks Self-Administration
KTG Agrar SE, issuer of the bonds ISIN DE000A1H3VN9 (KTG
Biowertpapier II/up to EUR250 million/7.125%/2012-2017) and ISIN
DE000A11QGQ1 (KTG Biowertpapier III / up to EUR92
million/7.25%/2015-2019), has declared on July 5, 2016, that it
has applied for the opening of insolvency proceedings and that it
aims to restructure under self-administration.

One Square Advisory Services already represents several notable
institutional investors, who invested in these bonds and offers
representation to all bondholders, who also hold bonds issued by
KTG Agrar SE.

KTG Agrar SE is based in Germany.  It has been active in the
agricultural sector for 20 years.  It cultivates more than 46,000
hectares of farmland in Germany and Lithuania.  Its core
expertise is in organic and conventional farming of food crops
such as grain, potatoes, maize and rapeseed and their


M ESTATE: September 7 Deadline Set for Binding Offers
Stefano Coen, Mr. Ermanno Sgaravato and Mr. Vincenzo Tassinari as
extraordinary commissioners M. Estate S.p.A. in Amministrazione
Straordinaria, Mercatone Uno Services S.p.A. in Amministrazione
Straordinaria, M. Business S.r.l. in Amministrazione
Straordinaria, Mercatone Uno Finance S.r.l. in Amministrazione
Straordinaria, Mercatone Uno Logistics S.r.l. in Amministrazione
Straordinaria, M. Uno Trading S.r.l. in Amministrazione
Straordinaria invite all interested parties to submit binding
offers for the acquisition of the Companies' business assets no
later than 6:00 p.m. (CET) on September 7, 2016 at the office of
the Notary Public Angelo Busani in Milan (Italy) 20123, via Santa
Maria Fulcorina No. 2, in compliance with the terms and
conditions provided by the tender rules available on the website

The business assets of the Companies include

   (i) the administrative offices in Imola,

  (ii) the business units relating to the management of 61
       operative points of sale, together with the real estate
       properties owned by the Companies where such
       points of sale are located, as well as the relevant real
       estate properties used as warehouse,

(iii) the business units relating to the management of 18 non-
       operative points of sale, together with the relevant real
       estate properties owned by the Companies where such points
       of sale are located, as well as the relevant real estate
       properties used as warehouse,

  (iv) "Mercatone Uno" trademark and other trademarks of the
       Companies, and

   (v) the business units relating to the logistic activities
       (all the elements mentioned at points (i), (ii), (iii),
       (iv) and (v), jointly, the "Transaction Perimeter").

On April 2, 2015, the Companies filed a petition with the Italian
Ministry of the Economic Development -- pursuant to Article 2 of
the Italian Law Decree No. 347 of December 23, 2003 (hereinafter
the "D.L. 347/2003"), as amended by Law No. 39 of February 18,
2004 (the "Marzano Law" or "L. 39/2004") and subsequent
amendments and integrations -- for the admission to the
insolvency proceeding of Amministrazione Straordinaria pursuant
to the decree, declaring the insolvency of the Companies and the
occurrence of the dimensional requirements pursuant to Article 1
of the D.L. 347/2003.

On April 7, 2015, the Ministry admitted the Companies to the
Amministrazione Straordinaria proceeding pursuant to Article
2(2) of the Marzano Law, appointing Stefano Coen, Ermanno
Sgaravato and Vincenzo Tassinari as extraordinary commissioners
for the Companies (the "Commissioners").

On April 8-10, 2015, upon petition for the insolvency declaration
filed by the Companies on April 1, 2015 pursuant to Article 2(1)
of D.L. 347/2003, the Court of Bologna - Bankruptcy Section
assessed and declared the insolvency of the same companies.

On October 5, 2015, pursuant to Article 4(2) of the Marzano Law,
the Commissioners filed the programme of the Companies with the
Ministry for the disposal of the business assets of the Companies
in accordance with Article 54 of the Legislative Decree No.
270/1999 and in accordance with Article 27(2)(a) of the
Legislative Decree No. 270/1999 (the "Programme").

The Commissioners also filed the report into the causes of
insolvency of the Companies which was prepared in accordance
with Article 28 of the Legislative Decree No. 270/1999;

Following the approval of the Programme, on June 7, 2016, the
Ministry authorized the sale of the business assets of the


BANCO ESPIRITO: Deloitte Provides Estimates on Credit Recovery
According to Bloomberg News' Joao Lima, Bank of Portugal says in
statement that it received a report from Deloitte with an
estimate on the level of credit recovery in the hypothetical
scenario of a liquidation of Banco Espirito Santo on Aug. 3,
2014, if a resolution measure had not been applied.

Deloitte estimates value of credits on insolvency would be EUR60
million, Bloomberg discloses.

Estimate indicates that in the liquidation scenario, the level of
recovery of subordinate credit would be null, and the level of
recovery of common credits would be 31.7%, Bloomberg notes.

Bank of Portugal says that according to Deloitte's estimate,
considering the size and complexity of the Banco Espirito Santo
group, its liquidation would lead to an "abrupt disruption" in
the multiple relationships with clients, suppliers, employees,
shareholders or competitors, Bloomberg relays.

                    About Banco Espirito Santo

Banco Espirito Santo is a private Portuguese bank based in
Lisbon, Portugal.  It is 20% owned by Espirito Santo Financial

PORTUGAL TELECOM: Bankruptcy Credit Event Triggers Swaps
Dan Alderson at Global Capital reports that dealers will hold an
auction to settle credit default swaps referencing Portugal
Telecom International Finance, after the International Swaps and
Derivatives Association's EMEA Determinations Committee ruled
that a bankruptcy credit event has triggered on the contracts.

ISDA's Determinations Committee voted unanimously for the
decision late on July 4, Global Capital relates.

According to Global Capital, the committee had accepted a
question on the bankruptcy trigger earlier in the month, after
Portugal Telecom's Brazilian parent company Oi filed for
bankruptcy protection on nearly $20 billion worth of debt.

Portugal Telecom International Finance B.V. provides finance for
the PT Portugal, SGPS, S.A. group companies.  The company was
incorporated in 1998 and is based in Amsterdam, the Netherlands.
Portugal Telecom International Finance B.V. is a subsidiary of Oi


ARCELORMITTAL SA: Fitch Issues Correction to May 6 Rating Release
Fitch Ratings issued a correction to the May 6, 2016 rating
release on ArcelorMittal S.A.  The Negative Rating Sensitivities
now reference a failure to improve leverage to below 3.5x by end
2018, in line with the preceding paragraph, rather than above as
previously stated.

Fitch has affirmed ArcelorMittal's (AM) Long-Term Issuer Default
Rating at 'BB+'.  The Outlook is Negative.

                         KEY RATING DRIVERS

The affirmation reflects the positive steps AM has taken since
the beginning of the year to decrease its debt levels which we
expect to translate into a slight improvement in credit metrics
in 2016, despite weaker average steel prices than 2015.  In
February 2016, AM announced debt protection measures including
the USD1 bil. asset sale of Gestamp Automocion and the USD3 bil.
rights issue. While this will decrease net debt by USD4 bil.,
AM's funds from operations (FFO) adjusted leverage remains high
(2015:7.4x). Consequently, the Outlook remains Negative.

The Negative Outlook also reflects the potential risks and
uncertainties in the global steel industry, which could easily
derail AM's deleveraging path.  Fitch currently projects leverage
to be around 3.6x in 2018, given no recovery in steel prices in
2016 and a gradual recovery in prices after 2016.  While Fitch is
seeing some evidence of price recovery materializing, such as
steel prices being supported by rationalization of higher cost
producers or protectionist measures in AM's key markets, Fitch
believes that this will take longer than we initially expected.
As a result, the USD4 bil. cash proceeds received from the asset
sale and rights issue, although positive, will not accelerate
deleveraging beyond Fitch's previous estimates.

                           KEY ASSUMPTIONS

Elevated Leverage Metrics

Fitch expects AM's leverage metrics to decrease to 6.7x in 2016
from 7.4x in 2015, and reach 3.6x by 2018.  The deleveraging path
is largely in line with what it previously projected, primarily
due to a longer steel market recovery timeframe than previously
expected off-setting the impact of the rights issue and asset
sale.  The deleveraging in 2016 is driven by the USD1.8 bil.
conversion of the convertible bonds from debt to 100% equity and
the recently announced USD3 bil. rights issue and USD1 bil. asset
sale of Gestamp, which is being used to repay debt.

After 2016, Fitch expects the decrease in leverage to be driven
by a gradual improvement in steel prices and the asset
optimization program.  Fitch expects AM's leverage to reach a
level more in line with a 'BB+' rating by 2018, but Fitch still
believes that the key risks and uncertainties in the global steel
market remain and acknowledge that the current projected
deleveraging profile could easily be disrupted, as reflected by
the Negative Outlook.

No Major Change In Fundamentals

AM has faced pressure from falling steel prices since the start
of 2015, which was driven by Chinese exports.  While Fitch has
seen some progress in protectionist measures in AM's key markets
and the expectation of cutbacks in production in China, Fitch
believes that these measures will take longer to translate in to
an improvement in AM's credit metrics.  The recent price pick up
has been driven by a number of factors and we remain more
cautious and continue to monitor the impact of protectionist
measures and capacity rationalization.

There may be pressure on steel prices in China as Fitch expects
the supply of steel to increase as rising prices has led to
capacity resumption, as seen in March production figures, where
daily crude steel production rose to 2.28 mil. tonnes, up 12.9%
compared with January and February 2016.  Fitch expects
production to increase further in April, as the suspended
furnaces are fired up.  Together with weak demand growth for
steel in 2016, this may result in moderating steel prices.
However, AM's ratings factor in that prices will not reach the
lows seen in December 2015 and January 2016.

Underlying end-market demand for AM's products continue to remain
neutral/positive for 2016 in North America and Europe, and more
difficult in Brazil and some Africa & CIS countries.  Fitch
expects AM's total steel shipments in 2016, of around 86mt, to
remain flat in 2016.  Fitch projects sales volume growth of 1.2%
yoy in 2017.

Cost Cutting & Debt Protection Measures Continue

In February, AM announced actions to further strengthen its
balance sheet with the USD3bn rights issue and the USD1bn asset
sale of Gestamp.  The rights issue and the proceeds from the
asset sale are being used to repay debt.  Additionally, AM
outlined its 'Action 2020 plan', which indicates further
structural improvements.  Together with the previously announced
cost-cutting measures this will lead to around a USD3 bil.
improvement in EBITDA, and free cash flow (FCF) generation of
around USD2 bil., at steel spreads of 85/t by 2020.  While these
steps are positive, the short-term impact will be muted given the
low steel prices the industry is currently experiencing.

Significant Scale and Diversification

The ratings continue to reflect AM's position as the world's
largest steel producer.  AM is also the world's most diversified
steel producer in product and geography, and benefits from a
solid and increasing level of vertical integration into iron ore.


   -- Chinese exports continue to impact the market in 2016:
      Total shipments remain flat, coupled with a decline in
      average steel selling price for 2016.

   -- Price stabilization by end-2016/2017

   -- Continued reduction in cash costs in 2016 to support

   -- Iron ore price - USD45/t in 2016- 2017, USD50/t in 2018 and
      long term).

   -- Capex of USD2.4 bil. in 2016.

   -- Assets sales of USD1bn in 2016.

   -- No dividends.

   -- USD3 bil. rights issue in 2016

                        RATING SENSITIVITIES

Fitch reviewed ArcelorMittal's rating sensitivities in comparison
with those of its peers.  Considering Fitch's views of the
relative business risks of the issuers, it has widened the
upgrade and downgrade triggers by 0.5x.  The current threshold
for a downgrade is FFO adjusted gross leverage above 3.5x by
2018. Previously this was 3.0x.

Positive: Future developments that could lead to the Outlook
being revised to Stable:]

   -- Successful implementation of 'Action 2020' and price
      improvements that translate into stronger cash flow
      generation and hence more rapid deleveraging towards the
      expected FFO gross leverage of 3.5x than currently
   -- EBIT margins of at least 5% (2015: 3.2%).
   -- Positive FCF across the cycle.

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

   -- Further material price declines in 2016 vs. 2015 prices.
   -- Inability to execute the recently announced 'Action 2020'
   -- FFO margin below 4%.
   -- Inability to achieve FFO adjusted (including true sale of
      receivables (TSR)) gross leverage below 3.5x by end-2018.
   -- Persistently negative FCF.


At Dec. 31, 2015, AM had a cash of USD4.0 billion and undrawn
long-term credit lines of USD6 billion (USD2.5 billion matures in
April 2018, USD3.5 bil. matures in April 2020).  This is more
than adequate to cover its short-term debt of USD2.3 bil.  Fitch
views AM's liquidity as strong and supportive for the ratings,
given that they are actively managing their debt maturity profile
and are using the proceeds from the rights issue and asset sale
to pay down debt.


Fitch has adjusted its analysis of AM's TSR program and now
includes this off balance-sheet receivables factoring as debt in
its credit metrics.  Fitch first outlined this change in analysis
in the Special Report, "Debt Factoring: Analytical Adjustments
for Corporate Issuers and Their Recovery Ratings" published in
February 2013.  Including the receivables increases reported debt
by USD4.6 bil.  Based on Fitch's previous projections, this would
have increased 2015 FFO adjusted gross leverage by approximately
1.0x from 5.5x to 6.5x and 2018 leverage by approximately 0.8x
from 2.8x to 3.6x.


  Long-term IDR affirmed at 'BB+', Outlook Negative
  Short-term IDR affirmed at 'B'
  Senior unsecured rating affirmed at 'BB+'


CAIXA PENEDES 2: Moody's Hikes Class C Notes Rating to B1(sf)
Moody's Investors Service upgraded the ratings of three notes in
the Spanish RMBS Caixa Penedes 2 TDA, FTA, and downgraded the
ratings of two notes in Rural Hipotecario VII, FTA. In addition,
the rating of the A1 note in Rural Hipotecario VII, FTA has been
affirmed. Please see below the details of these rating actions.


-- EUR726.3 million A Notes, Upgraded to Aa2 (sf); previously on
    May 14, 2016 Aa3 (sf) Placed Under Review for Possible

-- EUR7.2 million B Notes, Upgraded to Baa1 (sf); previously on
    May 14, 2016 Baa2 (sf) Placed Under Review for Possible

-- EUR16.5 million C Notes, Upgraded to B1 (sf); previously on
    May 14, 2016 B3 (sf) Placed Under Review for Possible


-- EUR957.1 million A1 Notes, Affirmed Aa2 (sf); previously on
    Jul 10, 2015 Affirmed Aa2 (sf)

-- EUR19.2 million B Notes, Downgraded to Baa1 (sf); previously
    on May 14, 2016 A3 (sf) Placed Under Review for Possible

-- EUR23.7 million C Notes, Downgraded to B1 (sf); previously on
    May 14, 2016 Ba2 (sf) Placed Under Review for Possible

-- The upgrades reflect an increase of the excess spread
    available in the transaction due to the presence of fixed
    interest loans in the collateralized pool.

-- The downgrades reflect the increased likelihood of
    performance triggers being breached switching the
    amortization of the notes to sequential.

-- The affirmation reflects that the credit enhancement
    available is commensurate with the current rating.

-- The rating action concludes the review of five notes
    placed on review for on the 14 May 2016 (please see this link


-- Increased excess spread available

The upgrades in Caixa Penedes 2 TDA, FTA are driven by an updated
information on the collateralized pool. Moody's reviewed recent
servicer report which provided updated information on the type of
interests paid by the mortgages in the pool. The reference market
rate "IRPH Cajas" was withdrawn in 2013 and loans could switch to
either a fixed rate of interest, "EURIBOR" or "IRPH entidades".
Many loans switched to payment of a fixed-rate interest. Based on
the last servicer report, approximately 32% of the collateralized
pool is comprised of fixed interest loans which pay a weighted
average interest of 3.75%. Interest received from fixed rate
loans above interest due to the swap counterparty is available
for the Fondo to distribute in the transaction.

Moody's said, "We have considered the risk of future increases in
the market interest rates in the short and medium term to assess
the risk of this 32% of the pool being partially unhedged. There
is a basis swap (floating-floating) in place which uses the non-
defaulted pool of loans, including the fixed interest ones, as
the notional."

-- Performance triggers

In Rural Hipotecario VII, FTA the amortization type of Class B
and C is subject to performance triggers based on arrears. As of
the last payment date, the 90 days+ delinquencies were higher
than 1% which prompted the Class C note to amortize sequentially.
Moody's has reassessed its assumptions on the likelihood of these
performance triggers being breached.

Revision of Key Collateral Assumptions:

As part of the rating action, Moody's reassessed its lifetime
loss expectations for the portfolio reflecting the collateral
performance to date.

The performance in both transactions is in line with Moody's

Moody's kept the expected loss assumptions at 2% as a percentage
of original pool for Caixa Penedes 2 TDA, FTA and at 1% for Rural
Hipotecario VII, FTA.

Moody's has also assessed loan-by-loan information as a part of
its detailed transaction review to determine the credit support
consistent with target rating levels and the volatility of future
losses. As a result, Moody's has maintained the portfolio credit
Milan assumption at 10% for Caixa Penedes 2 TDA, FTA, and at 7.5%
for Rural Hipotecario VII, FTA.

The analysis undertaken by Moody's at the initial assignment of
these ratings for RMBS securities may focus on aspects that
become less relevant or typically remain unchanged during the
surveillance stage. Please see Moody's Approach to Rating RMBS
Using the MILAN Framework for further information on Moody's
analysis at the initial rating assignment and the on-going
surveillance in RMBS.

Factors that would lead to an upgrade or downgrade of the

Factors or circumstances that could lead to an upgrade of the
ratings include (1) performance of the underlying collateral that
is better than Moody's expected, (2) deleveraging of the capital
structure and (3) improvements in the credit quality of the
transaction counterparties and (4) a decrease in sovereign risk.

Factors or circumstances that could lead to a downgrade of the
ratings include (1) an increase in sovereign risk (2) performance
of the underlying collateral that is worse than Moody's expected,
(3) deterioration in the notes' available credit enhancement and
(4) deterioration in the credit quality of the transaction


VIKING SUPPLY: Provides Update on Financial Restructuring Talks
Viking Supply Ships A/S (VSS), as previously communicated, has
for some time been engaged in a dialogue with its creditors with
a view to agreeing on a financial restructuring of the company.
As part of this process, VSS has made repeated attempts to engage
in a dialogue with the bondholders in the bond issue "Viking
Supply Ships A/S 2012-17 FRN".  The process towards the banks has
been very constructive and a framework for a solution is agreed
in all material respects subject to agreement with the
bondholders.  The discussions with the bondholders, however, have
been quite challenging.

There has been contact between VSS and a committee of three core
bondholders.  VSS has on several occasions offered a solution
which has involved a deferral of the maturity of the bonds, as
demanded by the secured creditors, and part of the interest
payments being made in-kind as a part of a global solution for
the restructuring of the Group balance sheet.  Since the recovery
of the unsecured creditors in the event of a bankruptcy is likely
to be extremely limited, or in effect zero, VSS believes this
proposal, which does not involve any reduction of any part of the
bondholders' claim, to be a fair and attractive offer.  This
offer has, however, on several occasions been flatly rejected by
the committee of bondholders.

They have expressed that the only solution they are willing to
discuss is one where the bonds are redeemed in cash, albeit at a
somewhat discounted price.  The amount of new equity raised, as
demanded by the secured creditors, will allow for necessary
working capital and early repayment of secured loans in exchange
for eased amortization over the next four years.  If the
bondholders do not move from this position, it will not be
possible to arrive at a restructuring which will allow VSS to
survive as a going concern.

VSS would therefore strongly encourage the bondholders to engage
in a constructive dialogue on realistic premises to seek to find
a solution which will allow a financial restructuring of VSS.
VSS is willing to explore various alternatives, including a
conversion of bonds into shares in Viking Supply Ships AB, listed
on NASDAQ OMX Stockholm segment Small Cap, at present market
values, respectively 36% of par value and SEK1.70 per share, but
is not in a position to offer redemption for cash.  However,
shares received can be freely sold by the recipients.  Should a
solution not be reached the only realistic outcome is bankruptcy
of VSS.

VSS will shortly summon to a bondholder meeting to provide an
updated status of the company, as well as present a restructuring
proposal to the holders of the bond.  The company urges
bondholders to participate and engage in the process.

Viking Supply Ships AB -- is a
Swedish company with headquarters in Gothenburg, Sweden.  Viking
Supply Ships A/S is a subsidiary of Viking Supply Ships AB.  In
addition Viking Supply Ships AB has the subsidiary TransAtlantic
AB.  The operations are focused on offshore and icebreaking
primarily in Arctic and subarctic areas as well as on Shipping
services mainly between the Baltic Sea and the Continent.  The
company has in total about 500 employees and the turnover in 2015
was MSEK 1,977.  The company's B-shares are listed on the NASDAQ
Stockholm, Small Cap segment.

U N I T E D   K I N G D O M

BHS GROUP: Holds Closing Down Sales in Northern Ireland Stores
Belfast Telegraph reports that closing down sales are now being
held in Northern Ireland's four BHS stores after the retail chain
went into administration.

According to Belfast Telegraph, a spokeswoman for administrators
Duff and Phelps said the stores in Belfast's Castle Place and
Holywood Exchange, as well as the Abbey Centre and Bow Street
Mall in Lisburn, were expected to stay open until the end of the

Around 200 people are employed in the stores, Belfast Telegraph
discloses.  It's understood the winding-down process is taking
longer than expected due to the amount of stock in the stores,
Belfast Telegraph notes.

BHS's collapse in April left 11,000 people out of work and a
GBP571 million black hole in its pensions fund, triggering an
inquiry by MPs into the whereabouts of the cash, Belfast
Telegraph recounts.

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

TATA STEEL UK: To Pause Sale of Business on Brexit Concerns
BBC News reports that Tata Steel is expected to announce today,
July 8, that it will pause the sale of most of its UK business,
including Port Talbot.

However, it will proceed with the sale of its speciality steel-
making business, which employs 2,000 people in Hartlepool,
Rotherham and Stocksbridge, BBC notes.

According to BBC, Tata is less concerned about the speed of the
sale due to rising steel prices and a raft of government

But it leaves the future of the rest of the 9,000-strong
workforce unclear, BBC states.

Tata says it is pausing to consider the options and assess the
impact of the UK's vote to leave the European union, BBC relays.

One potential bidder fears that a delay now will see the UK
business "wither on the vine" while Tata refocuses its investment
on its plants within the EU, BBC discloses.

Tata Steel is the UK's biggest steel company.

ULYSSES PLC: Fitch Lowers Rating on Class A Notes to 'BBsf'
Fitch Ratings has downgraded Ulysses (European Loan Conduit
No. 27) Plc's class A notes and placed the class A to C notes on
Rating Watch Negative (RWN) as:

  GBP249 mil. class A (XS0308745107) downgraded to 'BBsf' from
   'BBBsf'; placed on RWN
  GBP76 mil. class B (XS0308747657) 'Bsf' placed on RWN
  GBP48 mil. class C (XS0308748200) 'B-sf' placed on RWN
  GBP45 mil. class D (XS0308748622) affirmed at 'CCsf'; Recovery
   Estimate (RE) RE50%
  GBP11 mil. class E (XS0308749356) affirmed at 'CCsf'; RE0%

The transaction is a standalone securitization of one commercial
mortgage loan that was originated by Morgan Stanley Bank
International Limited.  At closing, the issuer used the proceeds
of the note issuance to acquire the mortgage loan, which has a
total outstanding balance of GBP429 mil. (GBP535 whole loan) and
is secured by a single office tower (known as City Point) located
in the city of London.  There has been no amortization to date.
There is an issuer level interest rate swap (fixed to floating)
that expires in July 2017 (coinciding with note legal maturity).
The swap covers the whole loan, and ranks ahead of the notes.

                         KEY RATING DRIVERS

The negative rating actions reflect the deterioration in market
confidence for London City offices following the UK vote to leave
the EU.  In Fitch's view, this has reduced the likelihood of the
defaulted loan being resolved in time for legal final maturity
(July 2017).  While a sale has not been achieved, asset
management activity has focused on extending and renewing the
rental profile, with some success.

Nevertheless, falling gross passing rent (to GBP23.5 mil. from
GBP28.9 mil. at the time of the last rating action) further
contributes to the downgrade of the class A notes, which are no
longer investment grade.  Fitch identified failure to resolve the
loan in its previous rating commentary as likely to trigger a
downgrade at this time.

The RWN reflects Fitch's view that uncertainty created by the
vote will complicate efforts to resolve the loan in the near
term.  A valuation from December 2014 reported market value of
GBP498.5 mil.  Since then, market conditions initially improved
before abruptly deteriorating following the vote.  The impact on
market conditions will be gauged as more signs emerge from
transaction evidence and from wider progress with exit
negotiations.  Should a property sale be achieved in time for
bond maturity, the likelihood of a class of notes being repaid in
full depends on its seniority, as reflected in the ratings, with
the class A notes still expected to enjoy a meaningful cushion
against value declines.

The whole loan (comprising a GBP429 mil. A-note and a GBP106 mil.
B-note) is swapped until July 2017 at a rate of 5.385%.  To meet
the overall finance costs, the servicer advance facility (SAF) is
being drawn (swap costs rank senior to the whole loan).
Meanwhile interest shortfalls have accumulated on the class D and
E notes which are unlikely to be recovered in full, leading to
the probable default of these notes.

Fitch understands that while the loan is in default, the junior
lender has an unexpired option to purchase the senior loan, and
thereby cement its effective control of the property.  While
exercising the option would be credit positive because it would
lead to repayment of the notes (and all senior liabilities such
as the swap, a capex facility and the SAF), there can be no
guarantee that it will be exercised by bond maturity.  Delaying
has allowed the junior lender to avail of sub-market funding
margins, reduce its overall financing requirement (the swap value
will amortize by more than the SAF will be drawn) and postpone
making any large financial commitment at a time of mounting
uncertainty.  However, delaying further exposes the junior lender
to the risk of loan margins rising further, which could hinder
its eventual returns.

While the option remains unexercised and provided the property
value remains within the range of the A-note and the whole loan,
potential property purchasers are likely to be discouraged from
making a bid, in the knowledge that the junior lender can pre-
empt them by making a lower option payment.  This curtails the
special servicer's power to bring about loan resolution prior to
legal final maturity, which applies downward pressure on the
ratings as indicated by the RWN.

                        RATING SENSITIVITIES

Looming legal final maturity puts downward pressure on the
ratings.  Should the loan fail to be resolved in the next six
months, the notes may be further downgraded.

Fitch estimates 'Bsf' recoveries to the notes (after costs/senior
liabilities) of between GBP380 mil. and GBP400 mil.

                       DUE DILIGENCE USAGE

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

                          DATA ADEQUACY

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.

* UK: Corporate Insolvency Framework Reforms Need Improvements
The government's major package of reforms for the corporate
insolvency framework may boost business rescue in the UK, but the
proposals won't achieve their goals without improvements and the
government should focus more on improving existing insolvency
procedures, says insolvency trade body R3.

R3 is concerned that the proposals lack safeguards to prevent
abuse, may not work for smaller businesses, make too many demands
on an over-burdened court system, and could be seen as unfair for

A consultation on the proposals closed on July 6.  In order to
boost company rescue and return more money to creditors, the
government has proposed introducing a moratorium from creditor
action for struggling companies, further protections for
insolvent companies to ensure they can access essential supplies,
a new restructuring procedure, and changes to encourage rescue

Andrew Tate, R3's president, says: "R3 welcomes the focus on
restructuring tools and business rescue in the government's
consultation.  This mirrors the focus of the UK's insolvency

"Not all of the proposed tools will benefit business rescue in
the UK.  With some changes, the moratorium could become a
valuable business rescue tool, for example, but the proposed
changes to encourage rescue financing are not necessarily

"The UK already has one of the best insolvency regimes in the
world and there are some simple steps the government can take to
improve business rescue without major reform.  CVAs have the
potential to become a much more effective business rescue tool
than they are now.  And the government, as a creditor, can do
much more to support business rescue efforts and encourage
struggling businesses to seek advice earlier."

R3 published its own proposal for a "business rescue moratorium"
in April 2016.  R3's proposed moratorium would last 21 days
compared to the government's proposed three month moratorium.
Andrew Tate says: "A moratorium on creditors pursuing debts can
be necessary to give a company time to put a rescue plan into
place, but this would impinge creditor rights.  Any moratorium
needs safeguards to protect creditors and prevent abuse, but the
protections proposed by the government are not strong enough."

"A shorter moratorium than proposed by the government and a
supervisory role carried out by a properly regulated and
experienced individual would help provide the safeguards the
moratorium needs.  The restructuring tool also needs better
safeguards to prevent abuse."

R3 is concerned that the proposals involve an expanded role in
insolvency for a court system that may not be ready for the work.
Andrew Tate says: "The essential supplies proposals, and others,
could lead to significant extra workload for the UK court system,
which is not set up to deal with a large amount of insolvency
work.  The UK's insolvency regime has developed to operate on an
out-of-court basis and the government should work within this


* BOOK REVIEW: The Sorcerer's Apprentice - Medical Miracles
Author: Sallie Tisdale
Publisher: BeardBooks
Softcover: 270 pages
List Price: $34.95
Review by Henry Berry
Order your own personal copy at

An earlier edition of "The Sorcerer's Apprentice" won an American
Health Book Award in 1986. The book has been recognized as an
outstanding book on popular science. Tisdale brings to her
subject of the widened engrossing field of health and illness the
perspective, as well as the special sympathies and sensitivities,
of a registered nurse. She is an exceptionally skilled writer.
Again and again, her descriptions of ill individuals and images
of illnesses such as cancer and meningitis make a lasting
impression. Tisdale accomplishes the tricky business of bringing
the reader to an understanding of what persons experience when
they are ill; and in doing this, to understand more about the
nature of illness as well. Her style and aim as a writer are like
that of a medical or science journalist for leading major
newspaper, say the "New York Times" or "Los Angeles Times." To
this informative, readable style is added the probing interest
and concern of the philosopher trying to shed some light on one
of the central and most unsettling aspects of human existence. In
this insightful, illuminating, probing exploration of the mystery
of illness, Tisdale also outlines the limits of the effectiveness
of treatments and cures, even with modern medicine's store of
technology and drugs. These are often called "miracles" of modern
medicine. But from this author's perspective, with the most
serious, life-threatening, illnesses, doctors and other
healthcare professionals are like sorcerer's trying to work magic
on them. They hope to bring improvement, but can never be sure
what they do will bring it about. Tisdale's intent is not to
debunk modern medicine, belittle its resources and ways, or
suggest that the medical profession holds out false hopes. Her
intent is to do report on the mystery of serious illness as she
has witnessed it and from this, imagined what it is like in her
varied work as a registered nurse. She also writes from her own
experiences in being chronically ill when she was younger and the
pain and surgery going with this.

She writes, "I want to get at the reasons for the strange state
of amnesia we in the health professions find ourselves in. I want
to find clues to my weird experiences, try to sense the nature of
being sick." The amnesia of health professionals is their state
of mind from the demands placed on them all the time by patients,
employers, and society, as well as themselves, to cure illness,
to save lives, to make sick people feel better. Doctors,
surgeons, nurses, and other health-care professionals become
primarily technicians applying the wonders of modern medicine.
Because of the volume of patients, they do not get to spend much
time with any one or a few of them. It's all they can do to apply
the prescribed treatment, apply more of it if it doesn't work the
first time, and try something else if this treatment doesn't seem
to be effective. Added to this is keeping up with the new medical
studies and treatments. But Tisdale stepped out of this
problemsolving outlook, can-do, perfectionist mentality by opting
to spend most of her time in nursing homes, where she would be
among old persons she would see regularly, away from the high-
charged atmosphere of a hospital with its "many medical students,
technicians, administrators, and insurance review artists." To
stay on her "medical toes," she balanced this with working
occasional shifts in a nearby hospital. In her hospital work, she
worked in a neonatal intensive care unit (NICU), intensive care
unit (ICU), a burn center, and in a surgery room. From this
combination of work with the infirm, ill, and the latest medical
technology and procedures among highly-skilled professionals,
Tisdale learned that "being sick is the strangest of states."

This is not the lesson nearly all other health-care workers come
away with. For them, sick persons are like something that has to
be "fixed." They're focused on the practical, physical matter of
treating a malady. Unlike this author, they're not focused
consciously on the nature of pain and what the patient is
experiencing. The pragmatic, results-oriented medical profession
is focused on the effects of treatment. Tisdale brings into the
picture of health care and seriously-ill patients all of what the
medical profession in its amnesia, as she called it, overlooks.
Simply in describing what she observes, Tisdale leads those in
the medical profession as well as other interested readers to see
what they normally overlook, what they normally do not see in the
business and pressures of their work. She describes the beginning
of a hip-replacement operation, the surgeon "takes the scalpel
and cuts -- the top of the hip to a third of the way down the
thigh -- and cuts again through the globular yellow fat, and
deeper. The resident follows with a cautery, holding tiny
spraying blood vessels and burning them shut with an electric
current. One small, throbbing arteriole escapes, and his glasses
and cheek are splattered." One learns more about what is actually
going on in an operation from this and following passages than
from seeing one of those glimpses of operations commonly shown on
TV. The author explains the illness of meningitis, "The brain
becomes swollen with blood and tissue fluid, its entire surface
layered with pus . . . The pressure in the skull increases until
the winding convolutions of the brain are flattened out . . . The
spreading infection and pressure from the growing turbulent ocean
sitting on top of the brain cause permanent weakness and
paralysis, blindness, deafness . . . ." This dramatic depiction
of meningitis brings together medical facts, symptoms, and
effects on the patient. Tisdale does this repeatedly to present
illness and the persons whose lives revolve around it from
patients and relatives to doctors and nurses in a light readers
could never imagine, even those who are immersed in this world.

Tisdale's main point is that the miracles of modern medicine do
not unquestionably end the miseries of illness, or even
unquestionably alleviate them. As much as they bring some relief
to ill individuals and sometimes cure illness, in many cases they
bring on other kinds of pains and sorrows. Tisdale reminds
readers that the mystery of illness does, and always will, elude
the miracle of medical technology, drugs, and practices. Part of
the mystery of the paradoxes of treatment and the elusiveness of
restored health for ill persons she focuses on is "simply the
mystery of illness. Erosion, obviously, is natural. Our bodies
are essentially entropic." This is what many persons, both among
the public and medical professionals, tend to forget. "The
Sorcerer's Apprentice" serves as a reminder that the faith and
hope placed in modern medicine need to be balanced with an
awareness of the mystery of illness which will always be a part
of human life.


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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