TCREUR_Public/170106.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, January 6, 2017, Vol. 18, No. 005


                            Headlines


A U S T R I A

GRANDHOTEL PANHANS: Ski Town Hotel Declares Insolvency


F R A N C E

CGG SA: Seeks Court Help in Debt Restructuring
SOLOCAL GROUP: Moody's Assigns LD Indicator to 'Ca-PD' PDR


N O R W A Y

FARSTAD SHIPPING: Creditors Rebuff Restructuring Plan


R O M A N I A

LIG INSURANCE: ASF Council Withdraws Operating License
RADET: Owed RON3.66 Billion at End of 2015, Report Says


S P A I N

ABENGOA SA: Court Declares Mexican Unit's Insolvency Proceedings
BANCO POPULAR: ECJ Ruling Expected to Hit Profits by EUR334MM


S W E D E N

NORDEA BANK: Moody's Affirms Ba1(hyb) Preferred Stock Rating


U K R A I N E

BANK NADRA: Deposit Guarantee Fund Completes Audit


U N I T E D   K I N G D O M

AEI CABLES: Opts to Close Manufacturing Plant, 250 Jobs Affected
SAFETYWATCH UK: Director Banned for 10 Years


X X X X X X X X

* BOOK REVIEW: The First Junk Bond


                            *********



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A U S T R I A
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GRANDHOTEL PANHANS: Ski Town Hotel Declares Insolvency
------------------------------------------------------
The Local reports that the Grandhotel Panhans in the ski town of
Semmering in Lower Austria has declared that it is unable to pay
its debts.

The Panhans group of companies has total debts of EUR855,000, and
the 113-room hotel cannot afford to pay the salaries of its 19
employees, The Local relates citing a report in the Kurier
newspaper.

The Local says the Panhans group, which includes three other
hotels and a mountain railway, is run by a Ukrainian businessman
called Viktor Babushchak. He told the Kurier that the company had
been the victim of "public opinion". "People felt that if
Ukrainians were investing money in the company then oligarchs must
be involved. We were even connected in some media reports to money
laundering, even though we had nothing to that with that," the
report quotes Mr. Babushchak as saying.

The report says the consequences for the company and its plans to
boost tourism in Semmering have been devastating. "The banks have
closed all our accounts and we've not been able to transfer money
from our investors to Austria for six months, so we're not
liquid," Babushchak said. He said the affected transactions are
not just from Ukraine but also from Germany and Switzerland. "If
this pressure continues we will be forced to drop the entire
project at Semmering and go somewhere else," he added.

Originally, Mr. Babushchak wanted to invest around EUR55 million
in expanding the hotels and mountain railway at Semmering but said
that this now looks doubtful, the report relates. "We see a great
deal of tourism potential, but we cannot expect miracles in the
short term," Mr. Babushchak, as cited by The Local, said.



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F R A N C E
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CGG SA: Seeks Court Help in Debt Restructuring
----------------------------------------------
David Whitehouse at Bloomberg News reports that CGG SA on Jan. 5
said it was planning to seek court help in restructuring debts.

According to Bloomberg, the company secured agreement from some
creditors on Dec. 31 to disapply leverage and coverage ratios.

CGG seeks restructuring to "substantially" reduce the level and
cost of its debt, Bloomberg says.

The company will make proposals to creditors and shareholders,
Bloomberg discloses.  It wants to be able to name an ad hoc
representative, which requires creditor approval, Bloomberg
relays.

CGG SA is a French offshore oilfield surveyor.


SOLOCAL GROUP: Moody's Assigns LD Indicator to 'Ca-PD' PDR
----------------------------------------------------------
Moody's Investors Service has assigned a limited default (LD)
indicator to SoLocal Group S.A.'s Ca-PD probability of default
rating (PDR). The PDR has therefore been changed to Ca-PD/LD.
Concurrently, Moody's has affirmed SoLocal's Ca corporate family
rating (CFR) and the Ca rating on the PagesJaunes Finance & Co.
S.C.A.'s senior secured notes. The outlook on all ratings remains
negative.

RATINGS RATIONALE

ASSIGNATION OF 'LD' INDICATOR

The change in SoLocal's PDR to Ca-PD/LD follows a payment default
on the coupon of the EUR350 million senior secured notes. The
coupon payment was due on December 1, 2016 and this rating action
has been taken at the end of the 30-day grace period, in line with
Moody's methodology.

AFFIRMATION OF CFR

SoLocal has now agreed terms for a restructuring of its debt,
which is expected to be implemented in Q1 2017. The restructuring
plan has received the necessary creditor, shareholder and court
approvals. Given the terms indicated, Moody's considers that this
restructuring will be a Distressed Exchange. Moody's expects
SoLocal's family recovery rate to be in the 35%-65% range, which
is consistent with a CFR of Ca.

RATING OUTLOOK

SoLocal's negative outlook reflects (1) the interest payment
default on the coupon due on 1st December 2016 for SoLocal's
EUR350 million Senior Secured notes and expiry of the relevant 30
day grace period; (2) the proximity to a Distressed Exchange; (3)
the outstanding Term Loan leverage covenant default as at 30th
June 2016; and (4) the continuing decline in revenues and
profitability.

WHAT COULD MOVE THE RATING DOWN/UP

Downward pressure on the ratings could result from (1) a weakened
liquidity profile; or (2) amendments to the Financial
Restructuring Plan which are adverse to creditor recoveries.

Upward pressure may arise should SoLocal (1) resolve covenant and
capital structure issues, leading to a material reduction in gross
leverage; and (2) maintain adequate liquidity. In addition,
SoLocal will need to provide a clear and credible post-
restructuring business plan.

LIST OF AFFECTED RATINGS

Affirmations:

Issuer: SoLocal Group S.A.

LT Corporate Family Rating, Affirmed at Ca

Probability of Default Rating, Affirmed Ca-PD /LD (/LD appended)

Issuer: PagesJaunes Finance & Co. S.C.A.

Senior Secured Regular Bond/Debenture, Affirmed at Ca

Outlook Actions:

Issuer: SoLocal Group S.A.

Outlook, Remains Negative

Issuer: PagesJaunes Finance & Co. S.C.A.

Outlook, Remains Negative

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was "Global
Publishing Industry" published in December 2011.

SoLocal is a provider of local media advertising and local website
and digital marketing services, with the majority of its
operations (97% of 2015 total revenue) in France and limited
operations in Spain and the UK. The company reported EUR816
million recurring revenues in the twelve-month period ended 30
September 2016.  Solocal is listed on the Paris stock exchange.



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N O R W A Y
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FARSTAD SHIPPING: Creditors Rebuff Restructuring Plan
-----------------------------------------------------
Katie Linsell at Bloomberg News reports that Farstad Shipping ASA
creditors rebuffed a restructuring plan, derailing the debt-laden
company's efforts to win investment from Norwegian shipping tycoon
Kristian Siem.

According to Bloomberg, the operator of oil-rig support vessels
said in a statement on Jan. 5 it will "pursue other alternatives"
after the collapse of the Siem accord.  Mr. Siem's group had
agreed to invest at least NOK1 billion (US$117 million) in
Alesund, Norway-based Farstad, giving it a 50.1% stake and
triggering a mandatory  takeover offer, Bloomberg relays, citing a
November announcement.

The failure of the deal hampers efforts to restructure about
NOK11.4 billion of debt, Bloomberg notes.

Farstad said a standstill agreement with creditors will continue
until Jan. 31, Bloomberg relates.  The company had planned to sell
new shares to Siem and its existing largest shareholder, Bloomberg
says.  It asked bondholders to join lenders in a
debt-for-equity swap, Bloomberg discloses.



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R O M A N I A
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LIG INSURANCE: ASF Council Withdraws Operating License
------------------------------------------------------
Georgiana Bendre at Business Review reports that the Council of
the Financial Supervision Authority (ASF) has withdrawn the
license of operation for LIG Insurance SA Asigurari-Reasigurari
Company, as a result of the insolvency stage and the start of the
bankruptcy procedure, according to a press release of the
institution.

Business Review relates that the Council also approved the
appointment of Robert Grigore as deputy general director of the
company Credit Europe Asigurari-Reasigurari and Marian-Cristian
Grajdan as deputy general director at Asito Kapital company,
Elenei Filicioaia as deputy general director of SAI Vanguard Asset
Management, of Mircea Constantin as director of SAI Muntenia
Invest and Mariana Tania Malureanu as director of SAI Sira S.A.

Moreover, the institution approved the issuing of the Registration
Certificate of Movable Goods associated to the increase in the
social capital of the company Vrancart Adjud, the issuing of the
Registration Certificate of Movable Goods for structural goods
issued by Erste Group Bank and the change of the pensions scheme
prospect for the Pension Fund Privately Administered Metropolitan
Life managed by Metropolitan Life Administration Company of a
Pension Fund Privately Administered.

The council approved 60 agents and took of the authorizations for
other 72 agents that develop marketing activities for the
facultative private pensions funds and privately administered, the
report says.


RADET: Owed RON3.66 Billion at End of 2015, Report Says
-------------------------------------------------------
Romania Insider reports that Bucharest thermal energy distributor
RADET, which went into insolvency at the end of September last
year, had RON3.66 billion (EUR810 million) worth of debt at the
end of 2015.

Some 98% of the amount represented debts to ELCEN, the state-owned
power producer that also provides the heat and hot water
distributed in Bucharest, Romania Insider relays, citing local
Hotnews.ro.

RADET's dire situation was caused by the Government's and the
Bucharest City Hall's failure to pay the promised subsidies
amounting to RON1 billion (EUR221 million) or the delay in paying
the subsidies, Romania Insider says, citing a report on the
insolvency causes drafted by local firm RomInsolv, RADET's
judicial administrator.

Other causes included the bad condition of RADET's transport
network, the lack of investments, the decision to freeze the heat
tariffs although it was actually necessary to increase them,
Romania Insider discloses.  The late payment of subsidies led to
the accumulation of penalties, Romania Insider notes.

The report also points out that the heating system is old and
oversized, Romania Insider relates.



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S P A I N
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ABENGOA SA: Court Declares Mexican Unit's Insolvency Proceedings
----------------------------------------------------------------
Reuters reports that the court in Mexico declares insolvency
proceedings of Abengoa Mexico.

Insolvency proceedings of Abengoa Mexico do not suppose loss of
administration by current managers, Reuters relates.

                      About Abengoa Mexico

Headquartered in Mexico City, Abengoa Mexico is a fully owned
subsidiary of Abengoa S.A.  The company was founded in 1981 to
conduct Abengoa S.A.'s business in Mexico. The company is well
integrated into its parent's operation, with its main activity
being the engineering & construction (E&C) of projects related
with the energy industry.

                        About Abengoa S.A.

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

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

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

On March 16, 2016, Abengoa presented its Business Plan and
Financial Restructuring Plan in Madrid to all of its
stakeholders.


BANCO POPULAR: ECJ Ruling Expected to Hit Profits by EUR334MM
-------------------------------------------------------------
Tobias Buck at The Financial Times reports that Banco Popular
notified regulators that it expected to take a EUR334 million hit
to profits as a result of last month's ruling by the European
Court of Justice.

In a landmark ruling that caught the Madrid-based bank and other
Spanish lenders off guard, the ECJ last month told the sector to
compensate its clients in full for the losses they suffered as a
result of "unfair" mortgage loans, the FT recounts.

It was the latest in a series of disappointments and setbacks to
hit Popular, the perennial problem child of Spanish banking, the
FT states.  Much of its current weakness can be traced back to a
reckless expansion policy in the final stretch of Spain's ill-
fated property boom, the FT relays.

According to the FT, Popular's balance sheet has been saddled with
non-performing assets ever since -- and the bank has struggled
more than its peers to rid itself of the toxic legacy.  Despite
two highly dilutive capital increases, Popular's balance sheet is
still seen by investors as too weak for comfort, the FT says.  The
bank's share price has fallen more than 90% over the past five
years, the FT relates.

The one shard of light for long-suffering investors is that
Popular will soon be under new management, the FT states.  After
12 disappointing years at the helm, Angel Ron will finally
relinquish his post as chairman, to be replaced by veteran banker
Emilio Saracho, who joins from JPMorgan in London, the FT
discloses.

"They need to address capital.  They need to accelerate the clean-
up of the balance sheet -- and for that they haven't got enough
capital," the FT quotes Andrew Lowe, analyst at Berenberg, as
saying.

Just before the ousting of Mr. Ron, Popular was reportedly in
talks with other Spanish banks over a possible takeover, the FT
relays.

Those talks have been put on ice for now, but patience among
Popular shareholders is clearly limited, the FT recounts.  Having
signed off on a EUR2.5 billion capital increase in June, they are
unlikely to be in any mood to pump more money into Popular to
preserve its independence, the FT notes.

"Shareholders want the bank to cover its capital needs without
raising more equity," a senior banker in Madrid, as cited by the
FT, said.



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S W E D E N
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NORDEA BANK: Moody's Affirms Ba1(hyb) Preferred Stock Rating
------------------------------------------------------------
Moody's Investors Service has affirmed Nordea Bank AB's (Nordea
Bank) Aa3 long-term deposit and senior unsecured debt ratings and
the bank's a3 Baseline Credit Assessment (BCA) and Adjusted BCA.
Nordea Bank's other long-term ratings, its Prime-1 short-term
ratings and its Aa2(cr)/Prime-1(cr) Counterparty Risk Assessments
(CRAs) were also affirmed at the current levels. The ratings
outlook remains stable.

The rating action was prompted by Moody's assessment that Nordea
Bank's credit profile remains unchanged following the completion
of its merger with three of its wholly-owned subsidiaries, Nordea
Bank Danmark A/S, Nordea Bank Finland Plc and Nordea Bank Norge
ASA, which came into effect on January 2, 2017.

At the same time, as all the assets and liabilities of Nordea Bank
Danmark, Nordea Bank Finland and Nordea Bank Norge have been
assumed by Nordea Bank and these three subsidiaries have been
dissolved, Moody's has affirmed and subsequently withdrawn their
respective long- and short term ratings, BCAs, adjusted BCAs and
CRAs. However, Moody's has maintained the ratings on the
outstanding debt instruments issued by Nordea Bank Finland and
Nordea Bank Norge at their current levels, which following the
mergers, are now direct obligations of Nordea Bank.

RATINGS RATIONALE

The affirmation of Nordea Bank's a3 BCA, Aa3 long-term deposit and
senior unsecured ratings, its Prime-1 short-term ratings and its
Aa2(cr)/P-1(cr) CRAs reflect Moody's view that the firm's credit
strength is unchanged as a result of the mergers. While Moody's
considers that the mergers will simplify the group structure, its
funding and liquidity management and will reduce its complexity,
the rating agency expects that the associated benefits will only
emerge in the medium to long term and are difficult to quantify at
present. Furthermore, despite the legal completion of the merger
transactions, Moody's considers that there remains scope for
execution risks, mainly operational and legal, which could weigh
on the group's short-term profitability.

The change in legal status of Nordea Bank Danmark, Nordea Bank
Finland and Nordea Bank Norge, which have ceased to exist from 2
January 2017, prompted Moody's to: (1) affirm these entities'
BCAs, Adjusted BCAs, all long and short-term ratings and CRAs at
their current levels, (2) withdraw the relevant BCAs, adjusted
BCA, short- and long-term deposit, issuer, and programme ratings
and their CRAs, subsequent to their affirmations. With the
completion of the merger, the liabilities of these entities have
been transferred and will be borne in full and unconditionally by
Nordea Bank. As such, Moody's has maintained the ratings on the
outstanding debt instruments issued by Nordea Bank Finland and
Nordea Bank Norge at their current levels, which are now direct
obligations of Nordea Bank.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Nordea Bank's ratings could be upgraded if the bank: (1) improves
its profitability without increasing its risk profile; (2) reduces
its reliance on market funding; and/or (3) enhances its liquidity
position. Lower single-name concentration risk could also benefit
Moody's assessment of the bank's BCA.

Nordea Bank's ratings could be downgraded if the bank's: (1)
operating environment deteriorates beyond Moody's current
expectations; (2) asset risk increases more than what Moody's
anticipates, for example due a stark weakening in credit quality;
(3) reliance on wholesale market funding increases; and/or (4)
profitability deteriorates.

LIST OF AFFECTED RATINGS

Issuer: Nordea Bank AB

Affirmations:

Long-term Counterparty Risk Assessment, affirmed Aa2(cr)

Short-term Counterparty Risk Assessment, affirmed P-1(cr)

Long-term Deposit Ratings, affirmed Aa3 Stable

Short-term Deposit Ratings, affirmed P-1

Senior Unsecured Regular Bond/Debenture, affirmed Aa3 Stable

Senior Unsecured Medium-Term Note Program, affirmed (P)Aa3

Subordinate Regular Bond/Debenture, affirmed Baa1

Subordinate Medium-Term Note Program, affirmed (P)Baa1

Junior Subordinate Medium-Term Note Program, affirmed (P)Baa2

Pref. Stock Non-cumulative, affirmed Ba1(hyb)

Pref. Stock Non-cumulative, affirmed Baa3(hyb)

Backed Pref. Stock Non-cumulative, affirmed Baa3 (hyb)

Commercial Paper, affirmed P-1

Other Short Term Medium-Term Note Program, affirmed (P)P-1

Adjusted Baseline Credit Assessment, affirmed a3

Baseline Credit Assessment, affirmed a3

Outlook Action:

Outlook remains Stable

Issuer: Nordea Bank Danmark A/S

Affirmations:

Long-term Counterparty Risk Assessment, affirmed Aa2(cr)

Short-term Counterparty Risk Assessment, affirmed P-1(cr)

Long-term Deposit Ratings, affirmed Aa3 Stable

Short-term Deposit Ratings, affirmed P-1

Long-term Issuer Rating , affirmed Aa3 Stable

Senior Unsecured Medium-Term Note Program, affirmed (P)Aa3

Other Short Term, affirmed (P)P-1

Adjusted Baseline Credit Assessment, affirmed a3

Baseline Credit Assessment, affirmed baa1

The above ratings will be withdrawn.

Outlook Actions:

Outlook remains Stable and will change to Ratings Withdrawn

Issuer: Nordea Bank Finland Plc

Affirmations:

Long-term Counterparty Risk Assessment, affirmed Aa2(cr)

Short-term Counterparty Risk Assessment, affirmed P-1(cr)

Long-term Deposit Ratings, affirmed Aa3 Stable

Short-term Deposit Ratings, affirmed P-1

Long-term Issuer Rating, affirmed Aa3 Stable

Senior Unsecured Medium-Term Note Program, affirmed (P)Aa3

Subordinate Medium-Term Note Program, affirmed (P)Baa1

Junior Subordinate Medium-Term Note Program, affirmed (P)Baa2

Other Short-term Medium-Term Note Program, affirmed (P)P-1

Adjusted Baseline Credit Assessment, affirmed a3

Baseline Credit Assessment, affirmed a3

The above ratings will be withdrawn.

Affirmation and assumption by Nordea Bank AB

Senior Unsecured Regular Bond/Debenture, affirmed Aa3 Stable

Outlook Actions:

Outlook remains Stable and will change to No Outlook after
assumption

Issuer: Nordea Bank Finland Plc, NY Branch

Affirmation:

Long-term Deposit Rating, affirmed Aa3 Stable

The above rating will be withdrawn.

Affirmation and assumption by Nordea Bank AB

Senior Unsecured Deposit Note/Takedown, affirmed Aa3 Stable

Outlook Actions:

Outlook remains Stable and will change to No Outlook after
assumption

Issuer: Nordea Bank Norge ASA

Affirmations:

Long-term Counterparty Risk Assessment, affirmed Aa2(cr)

Short-term Counterparty Risk Assessment, affirmed P-1(cr)

Long-term Deposit Ratings, affirmed Aa3 Stable

Short-term Deposit Ratings, affirmed P-1

Adjusted Baseline Credit Assessment, affirmed a3

Baseline Credit Assessment, affirmed a3

The above ratings will be withdrawn.

Affirmation and assumption by Nordea Bank AB

Senior Unsecured Regular Bond/Debenture, affirmed Aa3 Stable

Outlook Actions:

Outlook remains Stable and will change to No Outlook after
assumption

Issuer: Nordea North America, Inc.

Affirmation:

Backed Commercial Paper, affirmed P-1

The above rating will be withdrawn.

Outlook Action:

No Outlook assigned and will change to Ratings Withdrawn

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks
published in January 2016.



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U K R A I N E
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BANK NADRA: Deposit Guarantee Fund Completes Audit
--------------------------------------------------
Interfax-Ukraine reports that the Individuals' Deposit Guarantee
Fund has completed the forensic audit of Bank Nadra (Kyiv), as a
result the main causes of the bank's insolvency were defined.

Interfax-Ukraine, citing the fund's website, relates that as a
result of the audit of the bank's activities by KPMG international
audit company for the period from Jan. 1, 2006 to Feb. 5, 2015 it
was established that the bank's operations were mainly affected by
outstanding loans issued to potentially related legal entities and
outstanding unsecured loans to individuals issued through
intermediaries.

In addition, according to the audit company report, the bank
violated the regulations of the National Bank of Ukraine (NBU),
NBU refinancing agreements, did not fulfill the requirements for
the identification of related parties and lending to new
borrowers, the news agency discloses.

Interfax-Ukraine adds that the auditor also defined fraud on the
part of the bank's employees, insufficient measures to ensure its
liquidity, costs with questionable economic expediency.



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U N I T E D   K I N G D O M
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AEI CABLES: Opts to Close Manufacturing Plant, 250 Jobs Affected
----------------------------------------------------------------
Graeme Whitfield at ChronicleLive reports that nearly 250 people
are to lose their jobs at a cable factory in the North East after
its parent company decided to close its manufacturing base and not
pay redundancies.

The future of AEI Cables, on Durham Road in Birtley, Gateshead,
had been in doubt since September when its Dubai-based parent
company Ducab said it was looking at either selling, closing or
downgrading the company to a sales and distribution center,
ChronicleLive relates.

Now 200 of the firm's employees have been told they will lose
their jobs this week while another 40 will be made redundant by
the beginning of March, ChronicleLive discloses.

Workers at the plant have expressed anger after the company said
it would not be paying any redundancy to the workers losing their
jobs, ChronicleLive relays.

The company has entered into a Company Voluntary Arrangement
(CVA), meaning staff will have to apply to the Government for
statutory redundancy pay, just as many had to do six years ago
when a previous owner closed down the plant and failed to pay
staff, ChronicleLive notes.

According to ChronicleLive, AEI, which had a history dating back
more than 175 years, said it would keep on 13 sales and
administration staff, at a location to be decided.

"The company has been losing money for some time and, following
careful consideration of other options to avoid or reduce the
number of potential redundancies, it was necessary to either find
a buyer or to cease production," ChronicleLive quotes a spokesman
for AEI Cables as saying.

"Despite significant investment in the plant over the last two-
and-a-half years, profitable production levels have not been
achieved."

"With unviable output levels and without a buyer, we deeply regret
that manufacturing operations will have to cease.  We will be
providing all the advice and guidance we can to those being made
redundant."


SAFETYWATCH UK: Director Banned for 10 Years
---------------------------------------------
Terri-Louise Jean Stanner, the director of Safetywatch UK Ltd, has
been disqualified for 10 years.

On Dec. 9, 2016, Ms. Stanner (30), the sole returned director of
Safetywatch UK Ltd, gave a disqualification undertaking not to act
as a director for 10 years. The disqualification follows an
investigation by the Insolvency Service.

The effect of the undertaking is that Ms Stanner cannot, except
with permission of the Court, be a director of a company or take
part in the promotion, formation or management of a company.

Safetywatch UK Ltd was wound up by the Court on April 15, 2015,
following the presentation of a petition by the Secretary of State
for Business, Energy and Industrial Strategy on public interest
grounds.

The investigation, by Official Receiver's Public Interest Unit
(North), part of the Insolvency Service, found and Ms. Stanner did
not dispute that:

   * she failed to ensure that Safetywatch UK Ltd maintained
     and/or preserved adequate accounting records, or in the
     alternative, she failed to deliver up such records as were
     maintained and/or preserved for the period from the
     company's incorporation on Nov. 9, 2011 to its Liquidation
     on April 15, 2015,

   * as a result, it has not been possible to verify the trading
     activities of the company and the nature, purpose and
     legitimacy of the transactions undertaken by the company

   * between Nov. 9, 2011, and April 15, 2015, she caused
     Safetywatch to trade in a manner contrary to the public
     interest by failing to ensure that Safetywatch produced and
     published adverts for which customers had made payment

   * she caused Safetywatch to charge customers Value Added Tax
     which has not been declared or otherwise paid over to HM
     Revenue and Customs

Commenting on the disqualification, Official Receiver Ken Beasley
said: "Limited liability protection is only available to those who
comply with their obligations as company directors. If those
obligations are ignored, that protection will be withdrawn.

"The Insolvency Service has strong enforcement powers and we will
not hesitate to use them to remove dishonest or reckless directors
from the business environment as has been demonstrated in this
case."

Safetywatch UK Ltd sold adverts in health and safety at work and
road awareness publications.



===============
X X X X X X X X
===============


* BOOK REVIEW: The First Junk Bond
----------------------------------
Author: Harlan D. Platt
Publisher: Beard Books
Softcover: 236 pages
List Price: $34.95
Review by Gail Owens Hoelscher

Order your personal copy today and one for a colleague at
http://www.beardbooks.com/beardbooks/the_first_junk_bond.html
Only one in ten failed businesses is equal to the task of
reorganizing itself and satisfying its prior debts in some
fashion. This engrossing book follows the extraordinary journey
of Texas International, Inc (known by its New York Stock
Exchange stock symbol, TEI), through its corporate growth and
decline, debt exchange offers, and corporate renaissance as
Phoenix Resource Companies, Inc. As Harlan Platt puts it, TEI
"flourished for a brief luminous moment but then crashed to
earth and was consumed." TEI's story features attention-grabbing
characters, petroleum exploration innovations, financial
innovations, and lots of risk taking.

The First Junk Bond was originally published in 1994 and
received solidly favorable reviews. The then-managing director
of High Yield Securities Research and Economics for Merrill
Lynch said that the book "is a richly detailed case study. Platt
integrates corporate history, industry fundamentals, financial
analysis and bankruptcy law on a scale that has rarely, if ever,
been attempted." A retired U.S. Bankruptcy Court judge noted,
"(i)t should appeal as supplementary reading to students in both
business schools and law schools. Even those who practice in the
areas of business law, accounting and investments can obtain a
greater understanding and perspective of their professional
expertise."

"TEI's saga is noteworthy because of the company's resilience
and ingenuity in coping with the changing environment of the
1980s, its execution of innovative corporate strategies that
were widely imitated and its extraordinary trading history,"
says the author. TEI issued the first junk bond. In 1986 it
achieved the largest percentage gain on the NYSE, and in 1987
suffered the largest percentage loss. It issued one of the first
bonds secured by a physical commodity and then later issued one
of the first PIK (payment in kind) bonds. It was one of the
first vulture investors, to be targeted by vulture investors
later on. Its president was involved in an insider trading
scandal. It innovated strip financing. It engaged in several
workouts to sell off operations and raise cash to reduce debt.
It completed three exchange offers that converted debt in to
equity.

In 1977, TEI, primarily an oil production outfit, had had a
reprieve from bankruptcy through Michael Milken's first ever
junk bond. The fresh capital had allowed TEI to acquire a
controlling interest of Phoenix Resources Company, a part of
King Resources Company. TEI purchased creditors' claims against
King that were subsequently converted into stock under the terms
of King's reorganization plan. Only two years later, cash
deficiencies forced Phoenix to sell off its nonenergy
businesses. Vulture investors tried to buy up outstanding TEI
stock. TEI sold off its own nonenergy businesses, and focused on
oil and gas exploration. An enormous oil discovery in Egypt made
the future look grand. The value of TEI stock soared. Somehow,
however, less than two years later, TEI was in bankruptcy. What
a ride!

All told, the book has 63 tables and 32 figures on all aspects
of TEI's rise, fall, and renaissance. Businesspeople will find
especially absorbing the details of how the company's bankruptcy
filing affected various stakeholders, the bankruptcy negotiation
process, and the alternative post-bankruptcy financial
structures that were considered. Those interested in the oil and
gas industry will find the book a primer on the subject, with an
appendix devoted to exploration and drilling, and another on oil
and gas accounting.

Harlan Platt is professor of Finance at Northeastern University.
He is president of 911RISK, Inc., which specializes in
developing analytical models to predict corporate distress.



                            *********

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 2017.  All rights reserved.  ISSN 1529-2754.

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

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

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


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