TCREUR_Public/161012.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Wednesday, October 12, 2016, Vol. 17, No. 202


                            Headlines


B E L G I U M

* BELGIUM: Brussels Proposes Version of US Bankruptcy System


B U L G A R I A

NATSIONALNA ELEKTRICHESKA: S&P Puts 'B' CCR on CreditWatch Neg.


F R A N C E

SGD GROUP: Fitch Hikes Issuer Default Rating to 'B'


G E R M A N Y

GLOVELER: Placed Under Preliminary Insolvency
SCOUT24 AG: S&P Raises CCR to 'BB-', Outlook Stable


G R E E C E

GREECE: Clears Way for Disbursement of Bailout Tranche


L U X E M B O U R G

THESEUS EUROPEAN: S&P Raises Rating on Class E Notes to BB+


N E T H E R L A N D S

CABLE COMMUNICATIONS: Moody's Affirms B1 CFR, Outlook Positive
PANTHER CDO IV: S&P Affirms CCC- Ratings on 2 Note Classes
* NETHERLANDS: Company Bankruptcies Hit Record Low in Sept. 2016


R O M A N I A

CABLE COMMUNICATIONS: S&P Affirms B+ CCR, Outlook Positive
* ROMANIA: Number of Corporate Insolvencies Down 20%


R U S S I A

BASHNEFT PJSOC: Fitch Puts 'BB+' Issuer Default Rating on RWE


S P A I N

TELEFONICA SA: Egan-Jones Lowers Commercial Paper Rating to B


S W E D E N

DOMETIC GROUP: S&P Raises CCR to 'BB', Outlook Stable


S W I T Z E R L A N D

FALCON BANK: Loses Merchant Bank Status in Singapore


U N I T E D   K I N G D O M

AIC STEEL: In Administration, Cuts 100 Jobs
BERNARD MATTHEWS: Creditors Told GBP23MM Debts Will Not Be Paid
HARLEQUIN PROPERTY: Entered Into Insolvency Proceedings
HEATHROW FINANCE: Fitch Affirms 'BB+' Rating on High-Yield Bonds
LEHMAN BROTHERS: Obtains Favorable Ruling in U.K. Tax Case

MOORHOUSE & MOHAN: In Administration, Suppliers Owed Cash


                            *********


=============
B E L G I U M
=============


* BELGIUM: Brussels Proposes Version of US Bankruptcy System
------------------------------------------------------------
Jim Brunsden and Philip Stafford at The Financial Times report
that Brussels is proposing a version of the US Chapter 11
bankruptcy system, which would give greater legal protection for
struggling companies to prevent them from going out of business.

According to draft European Commission plans seen by the FT, a
company would be able to fend off winding-up orders from its
creditors while it seeks to negotiate a voluntary debt
restructuring.

The protection would be granted by national courts for up to four
months and could be extended to as long as a year, the FT
discloses.  Another part of the commission's plans would seek to
assist entrepreneurs get started again by cancelling legacy debts
from failed business ventures after three years, the FT states.

The protection offered to US companies under Chapter 11 has long
been admired by European policymakers, believing that it takes the
stigma out of bankruptcy and encourages risk-taking
entrepeneurism, the FT notes.  The commission's blueprint also
draws on existing practices in the EU, such as the UK system of
"schemes of arrangement", the FT says.

According to the FT, Michael Collins, chief executive of Invest
Europe, which represents Europe's private equity industry, said
Brussels should consider more far-reaching plans if it wanted to
iron out differences in national insolvency laws that complicate
life for investors.

Problems include varying rules on the relative seniority of
different types of creditors in bankruptcy, the role of courts,
and how long bankruptcy proceedings can take, the FT states.



===============
B U L G A R I A
===============


NATSIONALNA ELEKTRICHESKA: S&P Puts 'B' CCR on CreditWatch Neg.
---------------------------------------------------------------
S&P Global Ratings said that it had placed its 'B' long-term
corporate credit rating on Bulgarian electricity utility
Natsionalna Elektricheska Kompania EAD (NEK) on CreditWatch with
negative implications.

The CreditWatch placement reflects potential pressures on NEK's
credit quality if the company's profits and cash flow generation
remain weak, or if it doesn't obtain sufficient financial support
from the government and from the parent Bulgarian Energy Holding
(BEH) to cover external debt payments and the payment due to
Atomstroyexport after NEK abandoned construction of a nuclear
plant it had agreed Atomstroyexport was to build.

S&P continues to believe that NEK's financial position remains
unsustainable in the long term and its stand-alone capacity to
meet its financial obligations mainly depends on how quickly the
recent changes in regulatory conditions will translate into
positive cash flow generation.  NEK's losses have reduced, but the
company's EBITDA and funds from operations remained negative in
the first half of 2016.  S&P's 'ccc+' assessment of NEK's stand-
alone credit profile (SACP) therefore includes ongoing support
from the parent.  In particular, S&P understands most of NEK's
debt is due to the parent.  On June 30, 2016, NEK had Bulgarian
lev (BGN) 2.4 billion debt to the parent versus BGN157 million
debt to external banks.  S&P understands that, in the coming
weeks, NEK will complete the replacement of a EUR535 million
short-term shareholder loan with a long-term loan from BEH, after
BEH successfully issued EUR550 million bonds in August 2016.

Following the Swiss arbitration court's award to Atomstroyexport
in June 2016, NEK faces paying Atomstroyexport a large sum of
EUR550 million for the abandoned nuclear power plant construction.
The exact amount of interest payable is yet to be clarified.  S&P
understands that the Bulgarian parliament has voted to provide
financial support to NEK for this payment, but that such support
is subject to the European Commission's approval, and the amount,
timing, and terms are uncertain at this stage.  If financial
support from the government comes in the form of debt, rather than
equity, S&P expects NEK's leverage to increase compared with year-
end 2015.  S&P understands that, at this stage, the arbitration
court decision has not triggered any cross-default or debt
acceleration, and that it didn't affect the ability of NEK's
immediate parent, Bulgarian Energy Holding (BEH), to successfully
issue EUR550 million bonds in August 2016.

"We continue to regard NEK as a strategically important subsidiary
of BEH.  We consequently factor in two notches of uplift from
NEK's 'ccc+' SACP.  Our rating on NEK is capped at one notch below
the 'b+' group credit profile (GCP). Although we do not rate BEH,
we factor its credit quality into our rating on NEK.  We regard
BEH as a government-related entity with moderate likelihood of
extraordinary state support.  Our assessment of BEH's GCP is 'b+',
factoring in potential extraordinary state support.  That said, in
our view, BEH's future credit quality could be affected if NEK's
performance remains weak, or if NEK's liquidity issues erode BEH's
standing on financial markets," S&P said.

In S&P's view, NEK should avoid default on its minimal external
debt obligations over the next 12 months if it obtains timely
financial support from BEH and from the government.  If NEK fails
to obtain such support, S&P may reassess its view on NEK's status
in the group and with regard to the government.

The CreditWatch placement reflects continued pressures on the
rating if NEK's profitability and cash flow do not return to
positive in 2016, despite the recent regulatory reforms and
improving supplier terms.  In S&P's view, this could affect NEK's
stand-alone credit quality, as well as S&P's view of the parent's
credit quality and BEH's ability to continue to provide ongoing
liquidity support to NEK.  The CreditWatch also reflects risks to
liquidity if NEK doesn't receive sufficient financial support from
the government or BEH to cover NEK's ongoing payments on external
debt and the Atomstroyexport payable, or if the Atomstroyexport
payable affects NEK's or BEH's external debt obligations.  S&P
will reassess the situation within the next three months.

S&P would likely lower the rating if NEK accumulates new power
tariff deficits and continues to accumulate mounting overdue
payables, or if NEK fails to obtain sufficient long-term funding
from the government to cover its Atomstroyexport payable.  S&P
could also lower the rating in case of continuing liquidity
pressures, or if parental support from BEH diminishes.

S&P could affirm the rating if NEK demonstrates sustainable
profits and cash flows, receives sufficient long-term financial
support to cover the Atomstroyexport payable and its external
debt, and continues to enjoy group support.



===========
F R A N C E
===========


SGD GROUP: Fitch Hikes Issuer Default Rating to 'B'
---------------------------------------------------
Fitch Ratings has upgraded SGD Group SAS's (SGD) Issuer Default
Rating (IDR) to 'B' from 'B-' and withdrawn the ratings. Fitch has
also withdrawn SGD's senior secured rating of 'B-'/'RR4'. In
addition, Fitch has assigned a 'B' IDR to SGD's new top-level
parent company, JIC Firmiana SAS (JIC Firmiana). The Rating
Outlook is Stable.

These actions follow the acquisition of SGD by JIC Investment Co.,
Ltd. (JIC), the reorganization of the group, resulting in the
creation of JIC Firmiana as top-level parent. They also follow the
refinancing of SGD's debt, including its EUR350m senior secured
bond.

The upgrade reflects SGD's improved financial profile following
the refinancing of its capital structure and the successful
completion of its demerger with the perfumery business. Fitch
estimates that the new capital structure will increase Free Cash
Flow (FCF) generation by EUR12m in cash interest savings annually.
Coupled with a reduction of debt from the refinancing of the
group's EUR45m RCF and a EUR31m vendor note with a EUR109m
shareholder loan that Fitch treats as equity, the agency expects
the group to reduce FFO adjusted leverage below 6.0x in the next
12 to 18 months.

The Stable Outlook assumes that operational risks have diminished,
following the completion of the St. Quentin plant and good
progress in the ramp-up of Cogent's green-field plant. Execution
risks from the group's large investment program to foster growth
are mitigated by efficiency improvement projects and the
profitability and long-term growth prospects of SGD's target
markets, including type I/II and conversion glass in emerging
markets.

The ratings are based solely on SGD's pharma business and exclude
the perfumery business, which has been demerged from the group.
Fitch assumes that JIC Firmiana is the top-level entity of the
group with SGD as the sole operating entity and no other debt
obligations on top of EUR350m bank loan, a shareholder loan and
SGD's legacy debt. Fitch also assumes that JIC Firmiana and SGD
are effectively ring-fenced, so that debt elsewhere in the group
has no recourse, cross-defaults or other negative credit effects
on JIC Firmiana and SGD.

KEY RATING DRIVERS

Reduced Interest Burden

The refinancing of SGD's debt improves balance sheet strength and
deleveraging capacity. As part of JIC's acquisition of SGD, the
new owner refinanced SGD's EUR350m bond, EUR31m vendor note and
EUR45m RCF with a EUR350m five-year bank loan from the China
Construction Bank and a EUR109m shareholder loan. Fitch treats the
shareholder loan as equity and therefore does not include the loan
in its calculation of debt.

Completion of St. Quentin

The completion of the operational demerger of the pharma glass
business from the perfumery glass business is credit positive. The
risks of further delays and cost overruns during the two-year
relocation of SGD's only type I glass plant were material and
previously constrained the ratings.

Cogent Integration On-Track

The ramp-up of Cogent slightly ahead of expectations is credit
positive. Cogent will reach an EBITDA margin of around 10% in
2016, although the contribution to the group will remain limited,
given its size. The green-field conversion plant adds additional
capacity to serve the globally undersupplied market for type I
glass, provides access to low-cost production and entry into
conversion glass.

Moderate M&A risks

Fitch expects management to refocus on driving growth and
profitability, following completion of the St. Quentin plant and
SGD's acquisition by JIC. Bolt-on M&A brings modest incremental
execution risks, given that management intends to spend around
EUR25m to EUR30m on one target annually.

Fitch considers SGD's M&A strategy of capturing growth in
conversion type I glass as sound, given the global undersupply of
type I glass and its high and defendable margins. Conversion glass
also complements SGD's existing market leadership in moulded glass
well and offers cross-selling opportunities. Fitch said, "We
expect global growth in population, life expectancy, chronic
diseases and growing demand for healthcare and pharma in emerging
markets to fuel demand for pharma packaging in the long-term."

Ambitious Growth Plans

Fitch considers management's organic growth plans moderately
credit positive. Targets are ambitious, but the implementation
will support profitability and cash generation in the long term.
SGD plans to grow revenues to EUR380m and increase EBITDA margin
to 26% in 2020, not including M&A. Management intends to achieve
this through a focus on type I/II and conversion glass and
emerging markets, leveraging on its distribution network, capacity
increases and cost savings. The associated capex requirements will
reduce Free Cash Flow generation over the next four years,
although capital intensity will remain in the low-teens and well
below 2015 levels.

KEY ASSUMPTIONS

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

   -- Long-term organic revenue growth of 2.5%.

   -- Stable to improving operating profit margins above 25%,
      supported by margin accretive M&A.

   -- Normalized maintenance capex of around 10% of revenue,
      following the operational separation of the perfumery and
      pharma businesses.

   -- Annual bolt-on acquisition of one target of around EUR30m.

RATING SENSITIVITIES

Positive: Future developments that may, individually or
collectively, lead to positive rating action include:

   -- Continued deleveraging with limited deviation from
      investments, resulting in FFO adjusted gross leverage
      sustainably below 4.5x and

   -- Consistently positive FCF.

Negative: Future developments that may, individually or
collectively, lead to negative rating action include:

   -- Aggressive investments or large cost overruns, resulting in

   -- FFO adjusted gross leverage above 6.0x and

   -- Negative FCF.

LIQUIDITY

Liquidity is adequate. Fitch estimates that liquidity comprises
around EUR15m in unrestricted cash and EUR2m in undrawn committed
facilities at the closing of the refinancing on October 6, 2016.
This is sufficient to cover around EUR7m in roll-over debt, which
Fitch assumes will mature in the next 12 months in its liquidity
analysis.

FULL LIST OF RATING ACTIONS

SGD Group SAS

   -- Long-Term IDR: upgraded to 'B' from 'B-' and withdrawn;
      Outlook Stable

   -- Senior secured debt: withdrawn at 'B-'/'RR4'

JIC Firmiana SAS

   -- Long-Term IDR: assigned at 'B'; Outlook Stable;



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G E R M A N Y
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GLOVELER: Placed Under Preliminary Insolvency
---------------------------------------------
Martin Cowen at Tnooz reports that German private accommodation
rental site Gloveler is under preliminary insolvency, meaning it
continues to operate as normal while administrators look at
options.

Tnooz relates that the site, which went live in 2009, claims to be
"the oldest provider of private accommodations in Germany". It
launched a channel manager business vacancychannel.com in 2011,
which connects property owners to distribution partners including
booking.com, HRS and hostelworld.

The deadline for a solution -- new investors, a sale or
liquidation -- is November 1, although the preliminary insolvency
period can also be extended, the report says.

According to Tnooz, a spokesperson for Gloveler said in an emailed
statement:

"Yes, unfortunately we are in preliminary insolvency proceedings.
They were caused because of disagreements among our (former)
shareholders that resulted in blocking important entrepreneurial
decisions. So our own capital was exhausted in September.

"If you look at our balance sheets and compare them to our
competitors our figures look very good. We need only some thousand
Euros more (per year!) to be in the black.

"Unlike our competitors, we never saw ourselves as a money burning
company that has to raise 130 million each year as they are
structurally deficient.

"Our aim from the very beginning was to grow slowly, but steadily,
being highly efficient at the same time. Unfortunately we failed
on the finishing straight."

Tnooz relates that the site has some 70,000 properties on its
books, 80% of which are in Germany.  The spokesperson explained
that Gloveler never intended to compete with Airbnb and other
global platforms.

The report relates that in 2015 the site attracted five million
unique users and, while acknowledging that this is relatively
modest, the spokesperson talked in terms of "quality traffic" and
"a high conversion rate compared with our competitors".

Specifically, it claims a strong SEO ranking for its keywords,
having been in the market since 2009, adds Tnooz.


SCOUT24 AG: S&P Raises CCR to 'BB-', Outlook Stable
---------------------------------------------------
S&P Global Ratings raised its long-term corporate credit rating on
German classified ads operator Scout24 AG to 'BB-' from 'B+'.  The
outlook is stable.

S&P also raised to 'BB-' from 'B+' its issue rating on Scout24's
senior secured debt, comprising a EUR46 million senior secured
revolving credit facility (RCF) due 2021, EUR324 million
outstanding under the senior secured term loan B due in 2021, and
EUR357 million outstanding under the senior secured term loan C
due 2022.  The recovery rating remains at '3', now reflecting
S&P's expectation of recovery in the higher half of the 50%-70%
range in the event of default.

The upgrade reflects S&P's expectation that Scout24's financial
risk profile will strengthen thanks to a less aggressive financial
policy following a recent change in its shareholder structure.  As
such, S&P now nets the company's cash position to calculate its
debt. The rating action also takes into account S&P's assumption
that Scout24 will continue to see earnings growth on the back of
strong results in the first half of 2016.

At the end of September 2016, Scout24's shareholder structure
changed after Blackstone, the company's second-largest private
equity owner, sold its 13% shareholding in Scout24 to the market.
Hellmann & Friedman, with a roughly 27% stake in Scout24, is the
only remaining financial sponsor.  Because S&P defines a financial
sponsor owner as having at least a 40% shareholding, it no longer
classify Scout24 as being a financial sponsor-controlled company
and now include the company's cash position in S&P's calculation
of its debt figures.  Following Blackstone's departure from
Scout24's shareholder structure, S&P thinks that Scout24's
financial policy is likely to become more predictable.  S&P also
anticipates that it's financial policy will be driven by bolt-on
acquisitions and dividend payments, which S&P do not expect for
2016, however.

In addition, Scout24 increased its revenues and EBITDA (as
reported, ordinary adjusted EBITDA, pre-exceptional items, and
restructuring costs), respectively, by almost 14% and 15% in the
first six months of 2016 compared with the same period in 2015.
The company continued to benefit from supportive market
conditions, including a shift in advertising toward digital media
from print, and from its leading market position in the real
estate classifieds business.  Furthermore, since 2015, Scout24 has
gradually reduced the gap between its market position and its
larger competitor mobile.de in the car classifieds business.

These supporting factors lead S&P to see an improvement in
Scout24's financial risk profile, including S&P's base-case
estimate that Scout24's adjusted debt to EBITDA will decline to
3.6x-4.0x in 2016 from 4.9x in 2015.  S&P also projects that the
company's funds from operations (FFO) to debt will improve to
16.0%-18.0% in 2016 versus 10.5% in 2015.

In S&P's view, Scout24's business risk profile continues to
benefit from its well-known brands and dominant market position in
the online real estate classifieds market through
ImmobilienScout24.  The company also enjoys favorable market
trends, such as the trend in advertising to use online platforms
versus print media.  This enables Scout24 to generate EBITDA
margins markedly above an industry average for the media industry.
However, S&P believes that Scout24's strengths are offset by
AutoScout24's weaker value proposition in the German online
automobile classifieds market.  In S&P's opinion, the company's
business risk profile is constrained by its relatively small scale
of business and limited geographic and product diversification
because the majority of revenues and EBITDA generated in Germany
stem from its two main platforms, ImmobilienScout24 and
AutoScout24.  Additional constraining factors are the relatively
strong competition in the online classifieds market and a
potential threat from new real estate platforms, given the
company's exposure to risks related to the fast-moving
technological environment.

The stable outlook reflects S&P's expectations that Scout24 will
continue to perform solidly, with sustained revenue and EBITDA
growth and robust free operating cash flow generation.  S&P also
expects that, following the recent reduction of the private equity
sponsors' shareholding in Scout24 to about 27% of economic rights,
the company will continue to deleverage.

S&P could downgrade Scout24 if the company is unable to execute
its growth strategy, experiences operating setbacks, or undergoes
an unexpected weakening of its market position because of
disruptive competition that could erode the company's operating
margins.  S&P could also lower the rating if the company's
financial policy were to become more aggressive, for example,
because of releveraging driven by large shareholder remunerations
or acquisitions beyond S&P's base-case assumptions.  If one of
these scenarios or a combination of them prompted the adjusted
debt-to-EBITDA ratio to exceed 4.5x or FFO to debt ratio to
decline below 15%, the rating would come under pressure.
Additionally, S&P would downgrade Scout24 if S&P negatively
reassessed the company's liquidity position.

S&P currently views an upgrade as unlikely, given its opinion of
Scout24's business risk profile, which S&P believes is limited by
the company's scale of operations, its geographic and product
concentration (in the real estate and auto industries),
competitive landscape, and technological risks.  However, S&P
could upgrade Scout24 if the gradual improvement of the company's
business risk profile and our anticipation of further deleveraging
translates into debt to EBITDA trending toward 3.5x or lower and
FFO to debt above 20% on a sustainable basis and Scout24
established and maintained a predictable financial policy that
targets these metrics.



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G R E E C E
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GREECE: Clears Way for Disbursement of Bailout Tranche
------------------------------------------------------
Viktoria Dendrinou at The Wall Street Journal reports that Greece
has completed a set of key economic overhauls, eurozone finance
ministers agreed on Oct. 10, marking the end of the first review
of its fiscal bailout and clearing the way for disbursement of new
loans to Athens.

According to the Journal, the ministers, who were here for their
monthly meeting, gave their blessing to EUR2.8 billion (US$3.12
billion) in the next stage of financial aid, but they stopped
short of signing off on it immediately.  Instead, they said the
country would receive the funds at the end of the month, when data
on repayments Greece has made to domestic contractors should also
be available, the Journal discloses.

While the next slice won't be made immediately available, the fact
that Greece's creditors agreed that all the economic overhauls
have been implemented essentially completes the lengthy first
review of the country's third bailout, which could amount to EUR86
billion, the Journal notes.

The tranche of aid will comprise EUR1.1 billion to be used for
debt servicing, and EUR1.7 billion to repay arrears owed to
domestic contractors, the Journal states.

The overhauls approved include changes to the energy sector, the
pension system and the creation of a privatization fund that would
be partly used to repay the country's debt, the Journal relays.
The approval clears the way for negotiations to start on another
review, which is expected to focus on such politically sensitive
topics as labor market overhauls, the Journal notes.

Experts from the institutions overseeing Greece's bailout --
representing the European Commission, the European Central Bank
and the International Monetary Fund -- are expected to head to
Athens next week to resume negotiations with their Greek
counterparts, according to the Journal.

If discussions on the second review are completed by the end of
the year, "we can have a global agreement including the question
of the restructuring of Greek debt," the EU's economic affairs
commissioner, as cited by the Journal, said on his way into the
meeting.

But uncertainty over the IMF's further participation in Greece's
bailout, which is meant to be decided by the end of the coming
review, could weigh on any upcoming debt talks, the Journal
states.



===================
L U X E M B O U R G
===================


THESEUS EUROPEAN: S&P Raises Rating on Class E Notes to BB+
-----------------------------------------------------------
S&P Global Ratings raised its credit ratings on Theseus European
CLO S.A.'s class C, D, and E notes.  At the same time, S&P has
affirmed its rating on the class B notes.

The rating actions follow S&P's review of the transaction's
performance.  S&P performed a credit and cash flow analysis using
data from the August 2016 trustee report.

"We subjected the capital structure to a cash flow analysis to
determine the break-even default rate for each rated class of
notes at each rating level.  In our analysis, we used the reported
portfolio balance that we considered to be performing (EUR71.0
million), the weighted-average spread (3.75%), and the weighted-
average recovery rates for the performing portfolio.  We applied
various cash flow stress scenarios, using our standard default
patterns in conjunction with different interest stress scenarios
for each liability rating category.  We have also applied our
structured finance ratings above the sovereign criteria," S&P
said.

From S&P's analysis, it has observed that the available credit
enhancement has increased for all of the rated classes of notes,
due to the deleveraging of the senior notes after the end of the
transaction's reinvestment period in August 2012.  The class A
notes have fully repaid since S&P's previous review.

S&P's analysis indicates that the available credit enhancement for
the class B notes is commensurate with their currently assigned
rating.  S&P has therefore affirmed its 'AAA (sf)' rating on the
class B notes.

S&P has raised to 'AAA (sf)' from 'AA+ (sf)' its rating on the
class C notes as its credit and cash flow results show that the
available credit enhancement is now commensurate with this rating
level.

S&P's credit and cash flow results show that the available credit
enhancement for the class D notes is now commensurate with a
higher rating.  S&P's supplemental tests in its corporate
collateralized debt obligation (CDO) criteria constrain this
rating at 'A+ (sf)'.  However, the failure of this test at the
next rating level is marginal at approximately EUR21,000.  To test
the reliance of this tranche on excess spread, S&P has run its
spread compression sensitivity, also outlined in S&P's criteria.
Based on S&P's standard break-even default rate (BDR) results and
the result of this sensitivity test, it has raised to 'AA- (sf)'
from 'A- (sf)' its rating on the class D notes to recognize both
the increased credit enhancement and the cash flow that this
tranche benefits from.

S&P's credit and cash flow results indicate that the available
credit enhancement for the class E notes is now commensurate with
a higher rating.  However, S&P's supplemental tests constrain its
rating on this class of notes.  Accordingly, S&P has raised to
'BB+ (sf)' from 'BB (sf)' its rating on this class of notes.

Theseus European CLO is a cash flow collateralized loan obligation
(CLO) transaction that securitizes loans granted to primarily
European speculative-grade corporate firms.  INVESCO Senior
Secured Management Inc. manages the transaction.  The transaction
closed in August 2006 and entered its amortization period in
August 2012.

RATINGS LIST

Class                Rating
             To                From

Theseus European CLO S.A.
EUR331 Million Senior Secured And Deferrable Floating-Rate Notes

Ratings Raised

C            AAA (sf)          AA+ (sf)
D            AA- (sf)          A- (sf)
E            BB+ (sf)          BB (sf)

Rating Affirmed

B            AAA (sf)



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


CABLE COMMUNICATIONS: Moody's Affirms B1 CFR, Outlook Positive
--------------------------------------------------------------
Moody's Investors Service has assigned a B1 rating to the proposed
EUR375 million equivalent of senior secured notes (due 2021/ 2023)
being issued in a combination of Euro and Leu by Cable
Communications Systems N.V. (CCS), the controlling shareholder of
RCS & RDS S.A. (RCS&RDS).  At the same time, the agency has
affirmed the B1 corporate family rating (CFR) and B1-PD
probability of default rating of CCS.  The outlook on all ratings
has been changed to positive from stable.

Moody's decision to change the CCS ratings outlook to positive
reflects the agency's expectation that the company will continue
to maintain a Moody's adjusted Gross Debt/ EBITDA of below 3.5x
and will turn free cash flow generative from 2017 onwards.  With
the proposed refinancing, CCS aims to reduce its interest costs,
improve its debt maturity profile and partially decrease its
exposure to foreign exchange fluctuations.

"We expect the EBITDA margin of RCS&RDS to stabilize at around
32%.  Moderate revenue growth coupled with a stable EBITDA margin
and lower capex requirements should result in positive free cash
flow generation from 2017 onwards enabling the company to achieve
further de-leveraging, absent any material debt-financed
acquisitions," says Gunjan Dixit, a Moody's Vice President -
Senior Analyst and lead analyst for CCS.

                         RATINGS RATIONALE

CCS' reported gross leverage has improved to 2.8x for the last
twelve months (LTM) ending June 30, 2016, compared to 3.0x at the
end of 2015.  Moody's adjusted gross debt / EBITDA ratio has also
commensurately improved to around 3.5x for the LTM period ending
June 30, 2016, compared to 3.7x as of Dec. 31, 2015.  The
reduction in leverage so far has been a function of EBITDA growth
in the absence of free cash flow generation.  The positive outlook
on the company's ratings is based on Moody's expectation of
continuous improvement in the company's leverage ratio resulting
from EBITDA growth and positive free cash flow generation from
2017 onwards.

Historically, RCS&RDS has seen strong growth in revenue generating
units (RGUs) with total services increasing from 8.1 million in
2009 to 11.1 million in 2015.  The growth in RCS&RDS's customer
base has largely been helped by the ramp up of mobile telephony
services in Romania since April 2014 that has pushed the group's
reported overall revenue to grow at a CAGR of 6% over 2012-2015.
In H12016, the company's revenue grew solidly by 13% year-on-year.
However, Moody's expects the organic revenue growth trends in
Romania and Hungary to slow-down to around 2-3% from 2017/18
onwards as the markets gain more maturity.

Despite solid revenue growth, RCS&RDS has struggled to grow its
reported EBITDA until the end of 2015.  2012-2015 CAGR for EBITDA
stood at only 1.2%.  The EBITDA performance during the period
2014-2015 was impacted mainly by the low profitability of the
mobile business line, driven to a large extent by the company's
decision to sell handsets at a lower margin as part of its mobile
offerings and the company's engagement in energy activity.  In
H12016, RCS&RDS has seen a consistent improvement in its EBITDA
largely driven by mobile telephony margin catch-up.  The company's
EBITDA grew by 16% year-on-year in H12016 helping the company to
achieve largely stable EBITDA margin of 32% (compared to 31.8% in
2015).  Going forward, Moody's would expect RCS&RDS to continue to
make steady efforts to sustain its EBITDA margin around the
current level.

RCS&RDS has historically reported negative free cash flow
generation (after capex) as a result of high investment levels.
For FY2016, Moody's believes the company will invest around 24-25%
of sales (compared to 26.5% in 2015) in content, fibre network
expansion in both Hungary and Romania, and 3G & 4G coverage in
Romania to capture the commercial momentum through the portfolio
of spectrum owned by RCS&RDS.  From 2017 onwards, Moody's expects
the company's investment needs to gradually reduce, helping the
company to turn free cash flow positive.  Moody's would expect the
company to utilize a significant portion of the free cash flow
towards debt reduction to achieve de-leveraging at a faster pace.

CCS' B1 corporate family rating continues to reflect (1) the
company's smaller size relative to rated peers in Europe; (2) its
concentration in Romania notwithstanding some geographical
diversification and exposure to emerging market risks; (3) de-
leveraging largely reliant on EBITDA growth until the company
returns to material free cash flow generation; and (4) the
company's exposure to foreign exchange risks.

More positively, the rating also reflects (1) RCS&RDS's strong
market positions within the Romanian cable TV and internet
markets; (2) its track record of RGU growth; (3) competitive
benefits from its state-of-the-art network; (4) the company's
access to attractive premium programming; and (5) intensification
of the company's revenue growth momentum over the last couple of
years primarily helped by the increase in lower-margin mobile
business in Romania.

The EUR375 million worth of senior secured notes are being issued
in two tranches of EUR275 million and EUR100 million equivalent in
Leu at CCS, the controlling shareholder of RCS&RDS which has no
material assets or liabilities and has not engaged in any
significant activities other than acting as a holding company for
RCS&RDS.  The proceeds of the notes will be on-lent to RCS&RDS and
the terms of the proceeds loan will mirror the terms of the notes.
The notes will be guaranteed on a senior secured basis by RCS&RDS.
The proceeds of the notes together with drawings under the bank
debt (SFA Facility A2, see below) will be used to re-finance the
existing 2013 Notes.

RCS&RDS has entered into the Senior Facilities Agreement (SFA), as
the borrower, on Oct. 7, 2016.  The SFA is unconditionally
guaranteed by RCS&RDS on a senior secured basis and consists of
(i) the SFA Facility A1 (RON930 million); (ii) the SFA Facility A2
(RON600 million); and (iii) the SFA Facility B (revolving credit
facility of RON157 million).  Around the issue date of the notes,
RCS&RDS expects to draw (a) RON930.0 million (EUR205.7 million
equivalent as at June 30, 2016,) under the SFA Facility A1 and
repay the 2015 SFA in full; and (b) RON497.5 million (EUR110.0
million equivalent as at June 30, 2016) under the SFA Facility A2.
Unused commitments under the SFA Facility A2 will be automatically
cancelled.

The new B1 rated notes have been ranked highest in priority of
claims, together with the senior credit facilities (unrated)
borrowed at RCS&RDS, to reflect their first-ranking security
interests over substantially all present and future movable assets
of RCS&RDS on a pari-passu basis.  RCS&RDS's trade payables have
been ranked pari-passu with the senior secured debt, followed by
lease rejections claims.  Moody's has assumed in its ratings that
the guarantee and security package will be enforceable.  However,
the agency notes some limitations on enforceability resulting from
the use of a parallel debt structure, which has not been tested
under Dutch courts.

Post re-financing, CCS will benefit from a EUR35 million
equivalent RCF.  Availability of the credit facilities (including
the RCF) is restricted by maintenance covenants (including a total
net debt/EBITDA required to be below 3.75x until Dec. 31, 2016,
and below 3.25x thereafter and EBITDA/interest expense required to
be above 3.75x until Dec. 31, 2016, and above 4.25x thereafter)
under which Moody's would expect the company to maintain good
headroom at all times.

                   RATIONALE FOR POSITIVE OUTLOOK

The positive rating outlook reflects Moody's expectation that
RCS&RDS will continue to maintain stable EBITDA margin, grow its
revenues modestly, and achieve further de-leveraging helped by
free cash flow generation from 2017 onwards.

                WHAT COULD CHANGE THE RATING UP/DOWN

Upward pressure on the rating could develop if RCS&RDS delivers on
its business plan, such that its debt/EBITDA ratio (as adjusted by
Moody's) is well below 3.5x and the company generates positive
free cash flow on a sustained basis from 2017 onwards.

Conversely, downward pressure could be exerted on the rating if
RCS&RDS's operating performance weakens such that its debt/EBITDA
ratio (as adjusted by Moody's) rises towards 4.5x and the company
generates negative free cash flow on a sustained basis.  A
weakening of the company's liquidity profile (including a
reduction in headroom under financial covenants) could also lead
to downward pressure on the rating.

List of Affected Ratings:

Assignments:

Issuer: Cable Communications Systems N.V.
  Backed Senior Secured Regular Bond/Debenture, Assigned B1

Affirmations:

Issuer: Cable Communications Systems N.V.
  Probability of Default Rating, Affirmed B1-PD
  Corporate Family Rating, Affirmed B1
  Backed Senior Secured Regular Bond/Debenture, Affirmed B1

Outlook Actions:

Issuer: Cable Communications Systems N.V.
  Outlook, Changed To Positive From Stable

                        PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global Pay
Television - Cable and Direct-to-Home Satellite Operators
published in April 2013.

RCS & RDS S.A. is a leading pay-TV and communications services
provider in Romania and Hungary.  The company also operates in the
Czech Republic and offers mobile virtual network operator (MVNO)
services in Spain and Italy, targeting the large Romanian
population in these countries.  The service offering of RCS & RDS
includes cable TV and direct-to-home (DTH) satellite services,
internet and data access, fixed-line telephony and mobile
telecommunications services.

RCS&RDS reported EUR793 million in consolidated revenues from
continuing operations and EUR255 million in reported EBITDA for
the last twelve months ending June 2016.  The parent company CCS
is ultimately controlled by Romanian entrepreneur Zoltan Teszari,
president of the board and founder of the company.


PANTHER CDO IV: S&P Affirms CCC- Ratings on 2 Note Classes
----------------------------------------------------------
S&P Global Ratings raised its credit ratings on Panther CDO IV
B.V.'s class A1, A2, and C notes.  At the same time, S&P has
affirmed its ratings on the class B, D, E1, and E2 notes.  S&P has
also withdrawn its rating on the class P (combo) notes.

The rating actions follow S&P's analysis of the transaction's
performance and the application of its relevant criteria.

S&P subjected the capital structure to its cash flow analysis to
determine the break-even default rate (BDR) for each class of
notes at each rating level.

The BDRs represent Fitch's estimate of the level of asset defaults
that the notes can withstand and still fully pay interest and
principal to the noteholders.

S&P has estimated future defaults in the portfolio in each rating
scenario by applying its updated corporate collateralized debt
obligation (CDO) criteria.

S&P's analysis shows that the available credit enhancement for the
class A1, A2, and C notes is now commensurate with higher ratings
than those previously assigned.  Therefore, S&P has raised its
ratings on these classes of notes.

S&P's analysis also indicates that the available credit
enhancement for the class B, D, E1, and E2 notes is still
commensurate with the currently assigned ratings.  Therefore, S&P
has affirmed its ratings on these classes of notes.

S&P has received confirmation from the trustee that the class P
(combo) notes had been exchanged into their underlying components.
S&P has therefore withdrawn its rating on the class P (combo)
notes.

Panther CDO IV is a cash flow CDO transaction managed by M&G
Investments Management Ltd.  A portfolio of property B-notes,
structured finance securities, leveraged loans, high-yield
securities, private placements, and other debt obligations backs
the transaction.  Panther CDO IV closed in December 2006 and its
reinvestment period ended in March 2014.

RATINGS LIST

Panther CDO IV B.V.
EUR410 mil floating-rate notes
                                  Rating
Class       Identifier            To                 From
A1          XS0276082566          AAA (sf)           AA+ (sf)
A2          XS0276083614          AAA (sf)           AA- (sf)
B           XS0276084778          A+ (sf)            A+ (sf)
C           XS0276085239          BBB- (sf)          BB+ (sf)
D           XS0276085742          CCC+ (sf)          CCC+ (sf)
E1          XS0276086633          CCC- (sf)          CCC- (sf)
E2          XS0276161865          CCC- (sf)          CCC- (sf)
P (combo)   XS0276088175          NR                 CCC-p (sf)

NR--Not rated


* NETHERLANDS: Company Bankruptcies Hit Record Low in Sept. 2016
----------------------------------------------------------------
Statistics Netherlands (CBS) reports that the number of
bankruptcies was the same in September in 2016 as in the preceding
month.

Adjusted for court session days, the number of bankruptcies
remained at the lowest level in more than 8 years, Statistics
Netherlands notes.  Again, most bankruptcies were filed in the
trade sector, Statistics Netherlands states.

Adjusted for court session days, the number of bankruptcies peaked
in May 2013 and then started to decline during a period which
lasted until September 2015, Statistics Netherlands discloses.
Subsequently, a period of ups and downs followed, Statistics
Netherlands relays.  In August and September 2016, the number of
bankruptcies reached the lowest level since August 2008,
Statistics Netherlands discloses.

According to Statistics Netherlands, over the first nine months of
2016, the number of bankruptcies was down by nearly one-fifth
compared to the same period last year.

If the number of court session days is not taken into account, 268
businesses and institutions (excluding one-man businesses) were
declared bankrupt in September 2016, Statistics Netherlands
states.  With a total of 63 bankruptcies, the trade sector was hit
hardest, according to Statistics Netherlands.  In the sectors
financial services and construction, 36 bankruptcies were filed,
Statistics Netherlands relays.

These sectors include the highest number of businesses, Statistics
Netherlands states.  In relative terms, many bankruptcies were
recorded in the sector construction and in the sector hotels and
restaurants, according to Statistics Netherlands.



=============
R O M A N I A
=============


CABLE COMMUNICATIONS: S&P Affirms B+ CCR, Outlook Positive
----------------------------------------------------------
S&P Global Ratings revised its outlook to positive from stable on
Romanian telecommunications and pay-TV operator, RCS & RDS S.A.,
and its parent Cable Communications Systems N.V. (CCS).  At the
same time, S&P affirmed its 'B+' long-term corporate credit
ratings on both entities and on the existing notes.

S&P has also assigned its 'B+' issue rating to the proposed senior
secured notes to be issued by CCS and guaranteed by RCS & RDS.

The outlook revision reflects S&P's expectation of the group's
materially reduced currency risk after the proposed refinancing,
and S&P's expectation that CCS' credit ratios will strengthen in
line with its solid operating performance.  CCS plans to issue
EUR375 million in senior secured notes and Romanian leu (RON) 1.43
billion (EUR317 million) in senior secured loans to refinance
existing debt of EUR659 million.  As a result, the amount of debt
will be unchanged, but S&P expects that
euro-denominated debt will reduce to about 40% of total debt,
compared with 65% currently. Given that most revenues are
generated in leu and Hungarian forint, the currency mismatch will
partly remain but be much lower.

At the same time, S&P expects that RCS & RDS' operating
performance will stay solid, and therefore project stronger EBITDA
margins in the coming years.  S&P's revised estimates are
supported by the Romanian mobile operations' solid and
quicker-than-expected achievement of positive EBITDA in 2016.
This stemmed from a stronger market share of mobile subscribers
from about 6% in 2014 to about 11% in June 2016 and solid growth
of the average revenue per user (ARPU), partly due to its strong
position in post-paid services (RCS & RDS' post-paid market share
is 23%).

In the quarter ended June 30, 2016, the mobile EBITDA margin in
Romania turned positive after the operations achieved sufficient
scale, compared with negative in previous years.  Although S&P do
not expect the adjusted consolidated EBITDA margin to return to
the 2014 levels (pre-mobile entry) of about 35%, S&P has revised
upward its adjusted EBITDA forecast for 2016 and 2017 to just
below 30%, compared with 27% in 2015.  CCS' operations have also
been solid in the fixed-line segment in Romania and Hungary,
primarily due to strong subscriber growth of about 5%-7% in
Romania and 10%-13% in Hungary over the past year.  However, the
price pressure in this segment persists, leaving the ARPU
unchanged over the past year.

S&P's assessment of CCS' business risk profile is constrained by
the group's exposure to Eastern European markets, its relatively
small scale, and intense competition from large players.  Nearly
90% of CCS' revenues are generated in Romania and Hungary, two
small economies with volatile currencies that could affect its
financial performance.  Furthermore, CCS faces intense competition
from competitors that are part of large international operators
with stronger financial flexibility.  However, CCS has managed to
increase its market share of mobile subscribers in Romania to 11%,
still far behind the market leaders Orange (36%) and Vodafone
(22%).

These weaknesses are partly offset by the company's solid market
shares in its main segments, its state-of-the-art network, and
degree of diversification.  The company is internationally
diversified, operating as a mobile virtual network provider in
Spain and Italy.  CCS is also diversified in terms of products and
technologies, offering cable and satellite TV, fixed telephony,
and Internet in Romania and Hungary.  In Romania, it offers mobile
voice and data services and, in Hungary, it is a reseller of
mobile broadband.

"We forecast that the company's adjusted EBITDA margin will be
just below 30% in the coming years, a level we think is aligned
with peers', given CCS' diverse product offering.  Our adjusted
EBITDA figure excludes the amortization of content rights because
we view these rights expenditures as recurring operating expenses.
CCS acquires content rights that it capitalizes and subsequently
amortizes.  We have not included in our base case any entry into
the mobile market in Hungary, even though the company has acquired
spectrum over the past two years, most recently in May 2016.
However, we think a launch of mobile operations in Hungary would
initially dilute profitability and have a negative impact on cash
flow, at least in the near term, as it did in Romania," S&P said.

S&P's assessment of CCS' financial risk profile remains
constrained by the company's modest free operating cash flow
(FOCF) generation.  However, S&P expects that increasing EBITDA
and, to a lesser extent, lower interest costs will offset the
company's still high capital expenditures (capex); as a result,
S&P expects FOCF will increase over the coming years.

These weaknesses are partly offset by CCS' lower leverage than
that of most European cable players and its robust interest
coverage ratios, which S&P expects will improve further to about
4.9x by year-end 2016, given lower interest rates on proposed
debt.

The positive outlook on CCS reflects the possibility of a one-
notch upgrade in the next 12 months if credit ratios continue to
strengthen while the refinancing takes place in line with S&P's
assumptions.

S&P could raise the rating if FOCF to debt improves to about 5%
and FFO to debt to between 25% and 30%, while leverage stays
between 3.0x and 3.5x and the proportion of euro-denominated debt
declines to about 40%.

S&P could revise the outlook to stable if FOCF to debt is not
sustainably above 5% over time.  This could be caused by higher-
than-expected capex.  Although unlikely, S&P could also revise the
outlook to stable if CCS' revenues or EBITDA did not grow as S&P
expects, if leverage exceeded 3.5x, or if liquidity weakened.


* ROMANIA: Number of Corporate Insolvencies Down 20%
----------------------------------------------------
Romania-Insider reports that some 5,455 companies became insolvent
in Romania in the first eight months of this year, down 20.6% over
the same period in 2015, according to the National Trade
Registry's Office - ONRC.

Most insolvencies were recorded in Bucharest, namely 1,113, down
12.3% compared to the same period last year, Romania-Insider
relates.

According to Romania-Insider, the second largest number of
insolvencies were seen in the Bihor county, with 379. The number
went up by 2% compared to the first eight months of 2015. Iasi
ranked third, with 330 companies that entered insolvency during
this period, up 17.8% year-on-year.

Based on the activity, most insolvencies were seen in the
wholesale and retail trade sector, followed by the repair of motor
vehicles and motorcycles.

Some 11,600 firms suspended their activity in the first eight
months of this year, down 1% compared to the same period last
year, Romania-Insider relays.



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


BASHNEFT PJSOC: Fitch Puts 'BB+' Issuer Default Rating on RWE
-------------------------------------------------------------
Fitch Ratings has placed PJSOC Bashneft's ratings, including 'BB+'
Issuer Default Rating (IDR), on Rating Watch Evolving (RWE) on the
company's acquisition by PJSC Rosneft Oil Company.

On October 6, 2016, the Russian government published a directive
ordering state representatives on Rosneft's board to vote for
buying the state's 50.075% interest in Bashneft for up to
RUB330bn, and for instructing Rosneft's chief executive to sign a
sale and purchase contract with the state by 15 October. On 10
October 2016 Russian Prime Minister Medvedev signed an order to
sell the state's 50.075% stake in Bashneft to Rosneft for
RUB329.7bn, to be paid for by October 14, 2016.

The RWE reflects uncertainty over Bashneft's credit position after
the deal. It is not yet clear whether Bashneft will remain
operationally independent, and whether its capex, dividend and
funding policies will change significantly. Bashneft's rating
direction will depend on its standalone credit profile, the credit
profile of its new parent Rosneft, and our assessment of the
legal, operational and strategic ties between Bashneft and its new
parent.

"We aim to resolve the Rating Watch as soon as there is more
clarity on the credit consequences of the expected deal for
Bashneft, which may take place after six months," Fitch said.

KEY RATING DRIVERS

'BB+' Standalone Profile

Bashneft's 'BB+' standalone credit profile takes into account its
rising upstream production, high reserve life, diversification
into downstream operations, and conservative leverage. At the same
time, Bashneft's standalone rating is discounted by two notches to
reflect Russia-specific risks, such as the risk of unexpected tax
hikes in the oil and gas industry.

In 2015, Bashneft's oil production averaged 398 thousand barrels
of oil per day (mbpd), close to that of OAO Tatneft (548mbpd; BBB-
/Negative), Apache Corporation (558 mbpd; BBB/Stable) and Hess
Corporation (375mbpd; BBB/Negative). Fitch said, "We project that
Bashneft's leverage, assuming no significant changes in
operational and financial profiles, and no significant tax hikes,
will remain conservative and much lower than that of its
international peers, supported by the weak rouble and
predominantly rouble-pegged debt portfolio."

Level of Integration Uncertain

"We are not aware of Rosneft's plans with regards to Bashneft, but
believe that there are two alternative scenarios. The first
scenario assumes that Bashneft remains a relatively independent
company with a separate management team, and its financial profile
remains broadly unchanged. In this case, we are likely to keep
rating Bashneft on a standalone basis," Fitch said.

The second scenario assumes that Bashneft is more closely
integrated into Rosneft, which may require Rosneft's buy-out of
the Bashkortostan Republic's (Bashkiria, BBB-/Negative) 25%
blocking stake in Bashneft. Under that scenario, our assessment of
Bashneft's credit profile would also take into account the credit
standing of its parent, and legal, operational and strategic ties
between the two entities. In this scenario, Bashneft may be
required to pay higher dividends, it may significantly increase
its debt load, and its standalone disclosures may weaken.

Higher Taxes a Risk

Russian oil and gas companies remain financially robust despite
low oil prices, shielded by the weak rouble and a low cost of
production. However, there is a risk that industry taxation will
rise as the federal budget remains under pressure. The final tax
rates for 2017 and beyond are currently being discussed and should
be finalized by mid-October. Fitch said, "Based on draft proposals
by the Ministry of Finance we believe that the tax burden on the
industry will remain manageable, and the final decision will be a
compromise between the government and oil and gas companies.
However, there is a risk of further tax hikes, especially if oil
retreats to below USD40/bbl again. This risk is captured in the
ratings through the standard two-notch discount we apply when
rating Russian names, and through the ratings being capped by the
sovereign rating."

KEY ASSUMPTIONS

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

   -- Brent gradually recovering from USD42/bbl in 2016 to
      USD45/bbl in 2017, USD55/bbl in 2018 and USD65/bbl in the
      long term

   -- The US dollar/rouble exchange rate: at RUB69 in 2016, 68 in
      2017, 62 in 2018 and 57 in the long term

   -- Crude production rising by 6.5% yoy in 2016, marginally
      rising thereafter

   -- Capex averaging 56% of EBITDA in 2016-20

   -- Dividends averaging around 40% of net income in 2016-20

RATING SENSITIVITIES

If Bashneft is more closely integrated with Rosneft, Bashneft's
rating direction will reflect our assessment of Rosneft's
consolidated credit profile and of the parent-subsidiary linkage.

Provided Bashneft remains operationally independent the following
factors will be taken into account.

Future developments that may result in a rating affirmation:

   -- FFO adjusted net leverage below 2.5x through the cycle

   -- Moderately rising or stable oil production

   -- Moderate post-acquisition dividends (eg, not exceeding 50%
      of net profits)

   -- Adequate information transparency

Future developments that may result in a negative rating action
include:

   -- Falling oil production

   -- FFO adjusted net leverage above 2.5x through the cycle

   -- High post-acquisition dividends (eg, exceeding 50% of net
      profits)

   -- Lower information transparency

Future developments that may result in a positive rating action
include:

   -- FFO adjusted net leverage below 1.5x through the cycle

   -- Oil production sustainably above 500mbpd

   -- Commitment from the new owner that Bashneft will remain
      operationally independent

LIQUIDITY

Sufficient Standalone Liquidity: Bashneft's standalone liquidity
is healthy. At June 30, 2016, its cash amounted to RUB58 billion,
compared to the short-term debt of RUB27 billion, including
prepayments. In addition, the company has available unutilized
credit lines of RUB45 billion.

Change of Control Provision: Some of Bashneft's loans may be
subject to the change of control provisions that give lenders the
right to demand an early repayment of the obligation if the
company changes its owner. Fitch said, "We believe Bashneft is
likely to receive all necessary waivers, after it is acquired by
Rosneft." In a worst-case scenario, Bashneft has the capacity to
repay the instruments in question from its available liquidity.

FULL LIST OF RATING ACTIONS

   -- Long-Term Foreign and Local Currency 'BB+' IDRs: Rating
      Watch Evolving On

   -- Short-Term Foreign and Local Currency 'B' IDRs: Rating
      Watch Evolving On

   -- National Long-Term 'AA(rus)' Rating: Rating Watch Evolving
      On

   -- Senior Unsecured 'BB+' Rating: Rating Watch Evolving On

   -- National Senior Unsecured 'AA(rus)' Rating: Watch Evolving
      On



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


TELEFONICA SA: Egan-Jones Lowers Commercial Paper Rating to B
-------------------------------------------------------------
Egan-Jones Ratings Company, on Oct. 10, 2016, downgraded the
ratings on commercial paper issued by Telefonica SA to B from A3.

Telefonica, S.A. is a Spanish broadband and telecommunications
provider with operations in Europe, Asia, and North, Central and
South America.



===========
S W E D E N
===========


DOMETIC GROUP: S&P Raises CCR to 'BB', Outlook Stable
-----------------------------------------------------
S&P Global Ratings raised its long-term corporate credit rating on
Sweden-based leisure product manufacturer Dometic Group AB to 'BB'
from 'BB-'.  The outlook is stable.

At the same time, S&P raised its issue rating on Dometic's Swedish
krone (SEK)5.8 billion senior unsecured bank facilities to 'BB'
from 'BB-'.  The recovery rating on these facilities is unchanged
at '3', indicating S&P's expectation of recovery in the lower half
of the 50%-70% range.

The upgrade reflects S&P's expectation that Dometic's improved
margins should be sustainable and also assumes continued healthy
sales growth during 2016-2017, based on favorable markets.  S&P
notes positively the company's focus on operating efficiency and
focus on aftermarket sales.  S&P expects this to lead to
continuous improvements in credit ratios, and it now expects FFO
to debt to remain above 30% over the coming years.

Dometic has successfully delivered its financial policy since its
IPO on the Stockholm stock exchange in November 2015, targeting
net debt to EBITDA of about 2x, and significantly strengthening
its creditworthiness.  In addition, private-equity group EQT
Partners, which S&P regards as a financial sponsor, has, as
anticipated, continued to reduce its shareholding in Dometic to
approximately 27%.  As a result, S&P no longer considers Dometic
to be controlled by a financial sponsor, which in S&P's view
further reduces the risk of re-leveraging.

"We expect credit ratios to continue to improve over the coming
years, and we have revised our base case upward following the
company's strong trading in 2016.  Dometic has continued to grow
ahead of the underlying market, driven by a strong product
pipeline and growing aftermarket sales, combined with improvements
in profitability, which, in our view, should be sustainable.  We
expect the EBITDA margin to be 16%-17% in 2016, compared with
about 14% in 2014.  We now forecast that the company will generate
FFO to debt of 35%-37% in 2016, and debt to EBITDA of 2.0x-2.2x.
On the negative side, we view Dometic's dividend policy as
aggressive, since it aims to distribute at least 40% of the
previous year's net income, which could lead to substantial cash
outflows in coming years.  However, we expect the company's
discretionary cash flow to debt to remain above 10%, a level we
consider in line with the current rating," S&P said.

In the U.S., a class-action complaint has been filed against
Dometic.  The future cash flow impact, if any, is highly uncertain
at this stage, but in S&P's base case, it assumes that it can be
managed without affecting the rating.

In S&P's view, Dometic's business risk profile is constrained by
the group's moderate size and diversification compared with
similar rated peers.  S&P believes Dometic has generally high
concentration in mature markets.  About 85% of revenue stems from
Europe and North America.  In addition, Dometic's end markets are
cyclical and rely on consumer spending, which is subject to
general economic conditions.

These constraints are only partly offset by Dometic's leading
positions in its niche markets, strong relationships with original
equipment manufacturers, and its good product offering.  S&P
expects the group to continue to benefit from its growing share of
more stable aftermarket sales.  These factors translate into solid
operating margins and cash flow, which are key factors supporting
the rating.

The stable outlook reflects S&P's expectation that Dometic should
continue to generate positive discretionary cash flow and maintain
solid profitability, while it expands the business.  S&P expects
FFO to debt to remain sustainably above 30% over
2017-2018.

Upside rating potential is limited, but S&P could consider raising
the ratings if Dometic builds a longer track record, with FFO to
debt of about 45% and, at the same time, discretionary cash flow
to debt remaining above 15%, even in a downturn.  S&P currently do
not expect this scenario in the short term.

S&P could lower the rating if an unexpectedly sharp economic
downturn in Europe or U.S. were to occur, or if operating issues
appeared, squeezing the EBITDA margin.  A ratio of FFO to debt
below 30% could lead to a downgrade.  Larger-than-expected
dividends, leading to discretionary cash flow to debt below 10% or
large debt-funded acquisitions could also lead to a downgrade, if,
in S&P's view, they would lead to weakened metrics without the
prospect of rapid recovery.



=====================
S W I T Z E R L A N D
=====================


FALCON BANK: Loses Merchant Bank Status in Singapore
----------------------------------------------------
BBC News reports that the Monetary Authority of Singapore has
ordered Falcon Bank, a Swiss merchant bank, to close and fined two
other banks for breaching anti-money laundering controls.

The action follows an investigation into money flows linked to the
Malaysian state investment fund 1MDB, BBC notes.

Falcon Bank will lose its merchant bank status in Singapore, BBC
discloses. Its branch manager was arrested last week, BBC relays.

South East Asia's biggest bank DBS has been fined S$1 million
(US$726,000; GBP589,000) while UBS will have to pay S$1.3 million,
BBC states.

According to BBC, MAS said in a statement that Falcon Bank had
"demonstrated a persistent and severe lack of understanding" of
the body's anti-money laundering requirements and expectations.

"The control lapses observed in DBS and UBS relate to specific
bank officers who failed to carry out their duties effectively,"
the MAS, as cited by BBC, said, but it did not find "pervasive
control weaknesses" in these banks.



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


AIC STEEL: In Administration, Cuts 100 Jobs
-------------------------------------------
Construction Enquirer reports over 100 jobs have been axed at AIC
Steel after the firm called in administrators just three years
after setting up with high hopes of securing major London high-
rise orders.

Administrators from Begbies Traynor have kept on a core of 29
staff while they investigate whether the firm could continue to
trade, according to Construction Enquirer.

The report notes that the global steel giant launched itself into
the UK steel market with ambitious plans to invest GBP10 million
in Rowecord's Newport plant and open a design and engineering
office in London to target major projects.

It set its sights on achieving a GBP20 million turnover but ended
up supplying other steelwork contractors with subcontracted work,
the report discloses.

There were signs of problems at Newport a year ago when around 40
workers were laid off in a restructuring exercise, the report
notes.

But the administration came without warning leaving the workforce
stunned and several steelwork contractors exposed on subcontracted
jobs, the report relates.

The report says AIC's largest orders were for the redevelopment of
Bristol City's football stadium at Ashton Gate and the development
of 57 luxury apartments in Westminster, London.


BERNARD MATTHEWS: Creditors Told GBP23MM Debts Will Not Be Paid
---------------------------------------------------------------
BBC News reports that former suppliers to the Bernard Matthews
turkey business, who were owed money before it was sold, have been
told they will not be paid.

The company, which was owned by Rutland Partners, was sold to food
tycoon Ranjit Boparan in September, according to BBC News.

The report says about 900 suppliers will be left out of pocket by
GBP23 million, BBC Radio 4's Farming Today was told, the report
relays.

Mr. Boparan said he offered to buy the firm with its debt and
pension liabilities but this was rejected, the report notes.

The turkey firm was bought by investment company Rutland Partners
in 2013, the report recalls.

BBC News discloses that the take-over by the Boparan Private
Office, Mr. Boparan's private investment arm, was done under a
deal struck prior to administration - to protect the value of the
company.

As the purchase deal was settled before Bernard Matthews went into
administration, a meeting of creditors was not required, the
report discloses.

                           'Not Liable'

The deal to save the firm and 2,000 jobs compensates Rutland
Partners, but it means the new owner is not liable for its debts
or pensions, the report relays.

The report says a lower level of staff pensions will be paid
through a government protection scheme, but there is not the same
protection for suppliers, which are owed money.

Creditors have now received a letter from the administrator to say
they will not get paid or receive compensation, the report notes.

Deloitte said it was a "typical insolvency where there was not
enough money to pay everyone back", the report discloses.

                        'Viability at Risk'

Clarke Willis of Anglia Farmers, which is owed about ú10,000, said
it provided satellite broadband monitoring of turkey sheds and
this had been turned off, the report relates.

Mr. Willis said non-payment of larger amounts was putting the
viability of many other businesses -- including those supplying
agricultural goods, animal stock, transport and energy -- at risk,
the report says.

"There is no funding mechanism for all of those creditors into the
business," the report quoted Mr. Willis as saying.

"The letter is fairly stark, and basically says there will be no
dividend pay-out whatsoever and therefore in those circumstances
they do not have to call a meeting of creditors," Mr. Willis
added.

In a statement, Rutland Partners said it had "invested significant
funds into the Bernard Matthews business over the last three
years", the report notes.


HARLEQUIN PROPERTY: Entered Into Insolvency Proceedings
-------------------------------------------------------
Laura Miller at FTAdviser reports that Harlequin Property SVG has
formally entered insolvency proceedings, which could lead to its
liquidation and heavy losses for thousands of investors.

According to the report, Harlequin said it has taken the action to
"allow the company a maximum of six months to work with a
professional trustee to assist it to sort out its business
affairs", and does not amount to an admission of bankruptcy.

FTAdviser says 6,000 mainly UK pension investors ploughed around
GBP400 million into the unregulated overseas property scheme via
financial advisers, hoping for 'guaranteed returns' of 10 per cent
a year, which never came.

Now David Ames, chairman of the Harlequin group, has declared the
company which owns the land associated with the scheme, Harlequin
Property SVG, insolvent in Saint Vincent and the Grenadines, where
the company is based, according to court documents dated October 3
seen by FTAdviser.

FTAdviser relates that Mr. Ames is currently under investigation
in Saint Vincent on charges of tax evasion and theft amounting to
$8 million East Caribbean dollars (GBP2.3 million).

FTAdviser says a spokesperson for Harlequin stated that the
company has "entered the procedure to protect the company, its
thousands of investors, and its hundreds of employees".

"It has done so with the knowledge of the Vincentian government on
the understanding that Harlequin can and will come out the other
side".

According to FTAdviser, the spokesperson claimed the action was
taken to stave off a notice to wind up the company, due to be
lodged yesterday (4 October) by UK law firm Waterside Legal on
behalf of more than 100 investors.

FTAdviser notes that Harlequin has faced trouble since early 2013,
has been the subject of several warnings from the Financial
Conduct Authority, and is mired in a Serious Fraud Office
investigation as well as several legal cases.

According to the report, Mr. Ames' company signed contracts with
around 6,000 investors to build luxury villas in the Caribbean and
other exotic locations.

But it completed just a few hundred, leaving most investors
without either their capital or any of the 'guaranteed returns'.

Now Brian Glasgow of KPMG has been appointed as insolvency
practioner of Harlequin Property to put forward a proposal to help
rescue the insolvent company, in what is likely to be the last
roll of the dice for the firm, FTAdviser relates.

FTAdviser says Mr. Glasgow's role will be to try to reach a
financial solution that will satisfy Harlequin SVG's creditors,
largely made up of investors and the Financial Services
Compensation Scheme.

FTAdviser notes that if a proposal is not viable or is rejected
then Harlequin will enter into formal liquidation.

If that happens, Harlequin's land and hotel assets — including its
flagship Buccament Bay and Merricks resorts -- will be sold off and
the proceeds distributed among investors, after insolvency costs.

Either way it is likely to mean serious losses to all Harlequin
investors, including those who have provided extra money to
Harlequin SVG to complete the purchase on Buccament Bay
properties, according to FTAdviser.

Liquidation would also have far reaching consequences across the
self-invested personal pension sector, with many of the
investments coming via Sipps, adds FTAdviser.


HEATHROW FINANCE: Fitch Affirms 'BB+' Rating on High-Yield Bonds
----------------------------------------------------------------
Fitch Ratings has revised the Outlook on Heathrow Funding
Limited's class A and B bonds to Positive from Stable. The Outlook
on Heathrow's high-yield (HY) notes remains Stable. All ratings
are affirmed. The ratings actions are as follows:

   Heathrow Funding Limited:

   -- Class A bonds: affirmed at 'A-', Outlook Positive, revised
      from Stable

   -- Class B bonds: affirmed at 'BBB', Outlook Positive, revised
      from Stable

   Heathrow Finance plc:

   -- High-yield bonds: affirmed at 'BB+', Outlook Stable

Heathrow (LHR) is a major global hub airport with significant
origin and destination (O&D) traffic and resilience due to its
status as the preferred London airport and capacity constraints.
Peers include Aeroports de Paris in terms of size and Gatwick in
terms of location and debt structure.

Revenues are regulated and subject to an inflation price cap on a
single till basis. Fitch said, "We view the structured, secured
and covenanted senior debt as offsetting some of the higher
expected five-year average leverage under Fitch's rating case (net
debt to EBITDA) of 6.2x for the class A bonds and 7.1x for the
class B bonds compared to peers." The HY bonds are, by nature,
structurally subordinated.

Heathrow's strong credit metrics, which on their own could warrant
an upgrade, underpin the Positive Outlook on the class A and B
bonds. However, the uncertainties with regard to the new
regulatory regime 'H7' with the current 'Q6' ending in 2018, and
the full impact of Brexit prevent immediate rating actions. The
deeply structural and contractual subordinated nature of the HY
bonds prevents any foreseeable upgrades.

Performance Update

LHR's strong operational and financial performance is in line with
Fitch's base case. Traffic improved again this year rising by 0.7%
in the first eight months of 2016. This compares more modestly to
growth rates of 2.2% in 2015, 1.1% in 2014 and 3.4% in 2013. As a
result of this growth and to a lesser extent to the efficiencies
achieved in operating costs, Fitch expects EBITDA to reach
GBP1.68bn in 2016, growing at a CAGR of 1.6% between 2015 and 2018
to GBP1,681m. Lower cost of debt has also contributed to the
expected lower net leverage than previously and higher 5-year
average PMICR of 2.0x (vs. 1.8x previously) for the class A bonds
and 1.6x (1.5x) for the class B bonds under Fitch's rating case.

KEY RATING DRIVERS

Large Hub With Resilient Traffic: Volume Risk - Stronger. LHR is a
large hub/gateway airport serving a strong origin and destination
market. LHR benefits from resilient traffic performance with a
maximum peak-trough fall in annual traffic of just 4.4% through
the last major economic crisis in 2008, one of the lowest declines
in the industry, due to a combination of factors. This includes
the attractiveness of London as a world business centre; the role
of LHR as a hub offering strong yield for its resident airlines;
the location and connectivity of LHR with the well-off western and
central districts of the city; and unsatisfied demand as
underlined by the capacity constraint at LHR.

Regulated and Inflation-Linked: Price Risk - Midrange. LHR is
subject to economic regulation, with a price cap calculated under
a single till methodology based on RPI+X, currently set by the
Civil Aviation Authority (CAA) at RPI-1.5% for the five-year 'Q6'
regulatory period ending December 2018. Although part of the CAA
duties is to ensure that airport operations and investments remain
financeable, the price cap is highly sensitive to assumptions on
cost of capital, traffic and operational efficiency. For example,
the traffic forecast for Q5 calculated before the 2007-2008 crisis
proved overly optimistic. However, this was partly offset by
higher than planned inflation.

Well Maintained but Capacity Constrained: Infrastructure
Development/Renewal - Stronger. LHR agrees a detailed capital
investment plan with the regulator. Fitch believes that LHR will
be able to deliver the GBP3.5bn 'Q6' capital plan based on its
track record to date such as the successful delivery of the brand
new terminal T2 in 2014. The regulated asset base approach allows
for the self-financing of the investments through tariffs.

Refinancing Risk Mitigated: Debt Structure - Midrange (Class
A)/Weaker (HY); Midrange (Class B) changed from Weaker. The
issuer's strong capital market access, due to an established
multi-currency debt platform and the use of diverse maturities
mitigates the hedging and refinancing risk. Class A debt benefits
from its seniority, security, and protective debt structure with
covenants ring-fencing of all cash flows from LHR and limiting
leverage. Fitch said, "We revised the class B bonds assessment to
'midrange', aligning it better with peers as they benefit from
many of the strong structural features of the class A bonds." The
HY bonds have a weaker debt structure due to their deep structural
and contractual subordination.

Credit Metrics

Fitch's rating case between 2015 and 2020 conservatively reflects
the traffic five-year CAGR of 0.6% which occurred through the last
economic cycle between 2006 and 2011. Fitch said, "We assumed
fewer efficiency savings in addition to increasing the cost of new
debt by 200bp in year 2017 and 2019 to reflect adverse financing
conditions." Heathrow outperformed the CAA's 'Q6' final decision
for traffic which assumed potential traffic shocks.

The dividend/interest cover ratio at Heathrow Finance level also
far exceeds the 3.0x typically observed for BB+ utilities holdco
debt rating. The HY bonds five-year average net debt to EBITDA is
at 7.8x and 5-year average PMICR at 1.4x (vs. 1.3x previously)
under Fitch's rating case.

Peer Group

Heathrow is one of the most robust assets in the sector globally.
It features higher leverage than its European peers (ADP at 'A+'),
albeit with a better debt structure for senior debt. Compared to
Gatwick (at 'BBB+'), Heathrow's class A and B bonds benefits from
a stronger revenue risk profile.

RATING SENSITIVITIES

Future developments that may, individually or collectively, lead
to negative rating action include:

   -- Class A bonds: net debt to EBITDA consistently above 8x and
      average PMICR below 1.6x.

   -- Class B bonds: net debt to EBITDA consistently above 9x and
      average PMICR below 1.3x.

   -- HY notes: net debt to EBITDA above 10x, PMICR below 1.15x
      and dividend cover below 3.0x.

Future developments that may, individually or collectively, lead
to positive rating action include:

   -- Class A bonds: net debt to EBITDA below 7x and average
      PMICR above 1.8x.

   -- Class B bonds: net debt to EBITDA below 8x and average
      PMICR above 1.5x.

   -- HY bonds: An upgrade is unlikely given LHR's management of
      its capital structure and subsequent targeting of HY
      investors.

Exposure to Aviation Downturn

The Positive Outlook reflects the expectation that LHR will
continue to post a stable performance, despite economic prospects.
A marked and durable degradation of the British economy as a
result of uncertainties Brexit negotiations, among others, could
derail LHR good record of resilience. Evidence of recessionary
prospects over a prolonged horizon (two years) could prompt a
Stable or Negative Outlook.


LEHMAN BROTHERS: Obtains Favorable Ruling in U.K. Tax Case
----------------------------------------------------------
Kit Chellel at Bloomberg News reports that the U.K. may miss out
on a GBP1.2 billion (US$1.5 billion) windfall from the collapse of
Lehman Brothers Holdings Inc. after a judge said the London
liquidators of the failed investment bank didn't have to withhold
taxes before distributing assets to creditors.

According to Bloomberg, the ruling deals a setback to tax
officials who were trying to get a slice of the unexpected surplus
before it was divvied up among creditors around the globe, many of
whom don't file returns in the U.K.

Her Majesty's Revenue & Customs asked Lehman's European
liquidators at PricewaterhouseCoopers to deduct taxes from an
estimated GBP5 billion in interest payments, in the same way that
income tax is taken directly from employee paychecks, Bloomberg
discloses.

Judge Robert Hildyard disagreed and said in a ruling on Oct. 11
that the payments should not be treated as "yearly interest" so
"no obligation to deduct tax arises", Bloomberg relates.  Although
U.K. citizens receiving the money would have to report it
individually to HMRC, most of Lehman's creditors are outside the
country, out of the agency's reach, Bloomberg notes.

Judge Hildyard also criticized HMRC for failing to give consistent
guidance after the agency changed its stance in 2015 when it
became clear there would be extra funds, Bloomberg relays.

"I should remind HMRC how unsatisfactory it is that they should
issue inconsistent or confusing statements in this way," Bloomberg
quotes the judge as saying in the written decision.

The case arose after PwC said they were expecting to have as much
as GBP7.8 billion left over after liquidating Lehman Brothers
International Europe, with an estimated GBP5 billion of that sum
available to the bank's creditors as interest, Bloomberg recounts.

                     About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and  individuals
worldwide.

Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555).  Lehman's bankruptcy petition
disclosed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history.  Several other affiliates followed thereafter.

Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset
LLC sought for bankruptcy protection in December 2009.

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.

On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.
District Court for the Southern District of New York, entered an
order commencing liquidation of Lehman Brothers, Inc., pursuant to
the provisions of the Securities Investor Protection Act (Case No.
08-CIV-8119 (GEL)).  James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI.

The Bankruptcy Court approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for US$1.75
billion.  Nomura Holdings Inc., the largest brokerage house in
Japan, purchased LBHI's operations in Europe for US$2 plus the
retention of most of employees.  Nomura also bought Lehman's
operations in the Asia Pacific for US$225 million.

Lehman emerged from bankruptcy protection on March 6, 2012, more
than three years after it filed the largest bankruptcy in U.S.
history.  The Chapter 11 plan for the Lehman companies other than
the broker was confirmed in December 2011.

                          *     *     *

In October 2015, Lehman made its eighth distribution to creditors,
bringing Lehman's total distributions to unsecured creditors to
approximately $105.4 billion including (1) $77.2 billion of
payments on account of third-party claims, which includes non-
controlled affiliate claims and (2) $28.2 billion of payments
among the Lehman Debtors and their controlled affiliates.

As of September 2015, the trustee in charge of LBI has returned
around $7.65 billion to the defunct brokerage's unsecured
creditors, a recovery of about 35 cents on the dollar.


MOORHOUSE & MOHAN: In Administration, Suppliers Owed Cash
---------------------------------------------------------
Farmers Weekly reports that Cambridgeshire vegetable trader
Moorhouse & Mohan has gone into administration, owing creditors an
estimated GBP1 million.

Adrian Allen and Keith Marshall of RSM Restructuring Advisory were
appointed joint administrators to the business on September 20,
2016, according to Farmers Weekly.

Moorhouse & Mohan had 22 staff and turnover of about GBP12
million, the report notes.

                      Statement of Affairs

A bank is the main creditor but a statement of affairs is expected
soon from the company's directors and it is understood that will
include growers as unsecured creditors of the firm, the report
discloses.

"Based on current estimates it is anticipated that unsecured
creditors will receive a dividend," said RSM's restructuring
advisory director Richard Leach, the report relays.

However, the timing and sum was uncertain at this stage, the
report notes.

                       Creditors' Meeting

A creditors' meeting is expected to be held in mid-November.

The business had been facing working capital difficulties as a
consequence of increasing pressure on margins and a significant
fixed cost base resulting in ongoing losses, said a statement from
RSM, the report relates.

The administration was instigated by the firm's directors,
allowing for control over the business to be taken quickly
allowing perishable stock to be sold fast, it said.

                         Viability Issues

A going-concern sale of the business was not possible due to
viability issues, significant staffing costs and the consequent
lack of value in the business, the report discloses.

Following the appointment of administrators, 16 staff were made
redundant and six retained for a short period to help with selling
stock and debtor collection, the report relays.

Once this has been concluded, the company will cease trading, the
report notes.


                            *********

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, Julie Anne L. Toledo, 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
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Information contained herein is obtained from sources believed to
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