TCREUR_Public/170609.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, June 9, 2017, Vol. 18, No. 114



INTERNATIONAL BANK: UK Court Supports Petition Over Creditors


AGROKOR DD: Sberbank Files Motion for Injunction in Zagreb Court


SEABIRD EXPLORATION: Bondholders Back Debt Restructuring Plan


TEREOS UNION: Fitch Affirms BB Long-Term IDR, Outlook Stable


OFFICINE MACCAFERRI: Fitch Cuts IDR to B- on High Leverage
POPOLARE DI VICENZA: Big Banks May Help in Italy's Bailout Plan
SANAC SPA: June 30 Deadline Set for Expressions of Interest
VALTUR SPA: Extraordinary Commissioners Seek Proposals for Debts


KOKS PJSC: Moody's Hikes CFR to B2 on Improved Liquidity
RUSSIAN INTERNATIONAL: Moody's Lowers LT Deposit Ratings to Caa2


AYT CAIXA SABADELL: Fitch Lowers Class C Tranche Rating to 'Bsf'
BANCO POPULAR: Market Shrugs Off Wipeout of Subordinated Debt

U N I T E D   K I N G D O M

COVENTRY & RUGBY: Moody's Affirms Ba2 Rating on GBP407.2MM Bonds
HIGHER EDUCATION 1: Moody's Cuts Ratings on 2 Tranches to Caa3
MARSTON'S ISSUER: Fitch Affirms BB+ Rating on Class B Notes
THPA FINANCE: Fitch Affirms B Rating on GBP30MM Class C Notes


* Gibson Dunn Adds Five Lawyers in Paris to Launch New Practice



INTERNATIONAL BANK: UK Court Supports Petition Over Creditors
Margarita Antidze at Reuters reports that International Bank of
Azerbaijan, the energy exporting country's biggest lender, said
on June 7 a London court had supported its request to prevent
creditors pursuing legal action in the United Kingdom, giving it
time to restructure US$3.3 billion (GBP2.5 billion) in debt.

A similar decision was made by a U.S. court last month, Reuters

The state-controlled bank said last month it was suspending
payments on some liabilities and seeking creditors' support to
restructure more than US$3 billion of debt, mostly owed to
foreign creditors, to tackle bad loans left over from an oil
price slump, Reuters relays.

IBA presented a restructuring plan to its creditors on May 23 in
London and infuriated them by saying they could swap its debt for
sovereign bonds but some would suffer losses and have to wait
longer to be repaid, Reuters discloses.

The International Bank of Azerbaijan is Azerbaijan's biggest

                            *   *   *

The Troubled Company Reporter-Europe reported on June 1, 2017,
that Moody's Investors Service said the foreign-currency senior
unsecured debt rating of International Bank of Azerbaijan (IBA)
is unaffected at Caa3, under review for downgrade.  The rating
agency downgraded the bank's long-term foreign- and local-
currency deposit ratings to Caa2 from B1 and changed the review
to direction uncertain from review for downgrade.  IBA's baseline
credit assessment (BCA) of ca was has also been placed on review
with direction uncertain. In addition, Moody's downgraded IBA's
long-term counterparty risk assessment (CRA) to Caa1(cr) from
Ba3(cr) and changed the review to direction uncertain from review
for downgrade.  IBA's Not Prime short-term foreign- and local-
currency deposit ratings and Not Prime(cr) short-term CRA were
affirmed.  IBA's foreign-currency debt rating of Caa3 reflects
the likely loss for creditors as a result of a proposed debt
restructuring.  Based on the terms of this restructuring
announced on May 23, which proposes several options to investors
including a proposed exchange ratio of 0.8 in sovereign bonds
against existing claims, Moody's estimates the loss to be at
about 20%, which is consistent with the current Caa3 debt rating.
The rating agency maintains the review for possible downgrade on
the bank's debt ratings, which was opened on May 15. In Moody's
view, given the significant weight of Azerbaijani government-
related entities amongst the creditors, coupled with the threat
of a liquidation of the bank should the proposal be rejected,
there is little prospect for creditor losses to be less than the
agency now assumes.  However, there remains a possibility of
higher losses, should the proposal fail and the authorities
proceed to liquidate the bank.

As reported by the Troubled Company Reporter-Europe on May 29,
2017, Fitch Ratings downgraded International Bank of Azerbaijan's
(IBA) Long-Term Issuer Default Rating (IDR) to 'RD' (Restricted
Default) from 'CCC' and removed it from Rating Watch Evolving
(RWE).  The downgrade of IBA's IDRs to 'RD' follows the
announcement of the bank's restructuring plan, presented on
May 23, 2017.  The proposed restructuring will represent a
distressed debt exchange (DDE) according to Fitch's criteria as
it will impose a material reduction in terms on certain senior,
third-party creditors through a combination of write-downs, tenor
extensions and interest rate reductions.


AGROKOR DD: Sberbank Files Motion for Injunction in Zagreb Court
Anna Baraulina and Jake Rudnitsky at Bloomberg News report that
Sberbank on June 7 filed a motion for injunction at the
Commercial Court in Zagreb, Croatia.

According to Bloomberg, the bank seeks to prohibit Agrokor and
its government-appointed administrator from entering into
financing agreements that would allow creditors providing new
funding to claim super senior status on old loans.

As reported by the Troubled Company Reporter-Europe on May 29,
2017, Reuters said that Russia's biggest bank Sberbank will
provide no new financing for indebted food and retail company
Agrokor until the lender has reached an understanding with the
Croatian government.  Sberbank is a major creditor to Agrokor,
the biggest employer in the Balkans, which is battling to avoid
collapse after running up multibillion-dollar debts, Reuters
disclosed.  Sberbank previously said it was ready to go to court
if necessary to recover more than EUR1 billion (US$1.12 billion)
it had given to Agrokor in loans, according to Reuters.

Zagreb-based Agrokor is the biggest food producer and retailer in
the Balkans, employing almost 60,000 people across the region
with annual revenue of some HRK50 billion (US$7 billion).

                            *   *   *

The Troubled Company Reporter-Europe reported on June 7, 2017,
that Moody's Investors Service downgraded Croatian retailer and
food manufacturer Agrokor D.D.'s corporate family rating (CFR) to
Ca from Caa2 and the probability of default rating (PDR) to D-PD
from Ca-PD. The outlook on the company's ratings remains
negative.  Moody's also downgraded the senior unsecured rating
assigned to the notes issued by Agrokor due in 2019 and 2020 to C
from Caa2.  The rating actions reflect Agrokor's decision not to
pay the coupon scheduled on May 1, 2017 on its EUR300 million
notes due May 2019 at the end of the 30 day grace period. It also
factors in Moody's understanding that the company is not paying
interest on any of the debt in place prior to Agrokor's decision
in April 2017 to file for restructuring under Croatia's law for
the Extraordinary Administration for Companies with Systemic

The TCR-Europe on April 17, 2017, reported that Moody's Investors
Service downgraded Agrokor D.D.'s corporate family rating (CFR)
to Caa2 from Caa1 and its probability of default rating (PDR) to
Ca-PD from Caa1-PD.  The outlook on the company's ratings remains
negative.  "Our decision to downgrade Agrokor's rating reflects
its filing for restructuring under Croatian law, which in Moody's
views makes a default highly likely," Vincent Gusdorf, a Vice
President -- Senior Analyst at Moody's, said. "It also takes into
account uncertainties around the restructuring process, as
creditors' ability to get their money back hinges on numerous
factors that will become apparent over time."


SEABIRD EXPLORATION: Bondholders Back Debt Restructuring Plan
SeaBird Exploration Plc disclosed that the bondholders' meeting
of the SBX04 bond issue on June 6 unanimously approved the
proposal for the debt restructuring, pursuant to the summons.
The bondholders present formed a quorum.

Following the bondholders' meeting, the Company continues its
efforts to satisfy the outstanding conditions for the proposed
restructuring.  The conditions include (i) the approval of the
Restructuring at an extraordinary general meeting of the Company;
(ii) consent to the Restructuring from Glander and subsequent
execution of the same from Glander and Ordinat, (iii) that no
SeaBird group entity has entered into any insolvency procedures,
whether voluntary or involuntary; (iv) that no enforcement action
have been taken by any creditors for any material claim or
bankruptcy of any SeaBird group entity; (v) that final
documentation required to implement the Restructuring, including
final documentation on revised terms with trade creditors, has
been entered into; (vi) subsequent confirmation that the
abovementioned outstanding amounts under Tranche A and Tranche B
of the SBX04 bond loan and the Glander credit facility have been
irrevocably redeemed following the respective settlements; (vii)
the entry into of an amended and restated SBX04 bond agreement
between the Company and the bond trustee under the SBX04 bond
agreement; and (viii) the entry into of an exchange agreement and
income distribution agreement between TGS and the bond trustee
under the SBX04 bond agreement to reflect the distribution of the
net income from the multi-client libraries.

ABG Sundal Collier ASA and Arctic Securities AS act as financial
advisors to the Company.  Advokatfirmaet Schjodt AS acts as
Norwegian legal counsel to the Company.

This information is subject of the disclosure requirements
pursuant to section 5-12 of the Norwegian Securities Trading Act.

SeaBird is a global provider of marine 2D and 3D seismic data for
the oil and gas industry.  The Company is listed on the Oslo
stock exchange with headquarters in Cyprus.  It has regional
offices in Limassol, Oslo, Houston and Singapore.


TEREOS UNION: Fitch Affirms BB Long-Term IDR, Outlook Stable
Fitch Ratings has affirmed Tereos Union de Cooperatives a Capital
Variable's Long-Term Issuer Default Rating (IDR) at 'BB' with a
Stable Outlook. The senior unsecured ratings of the bonds issued
by its subsidiary Tereos Finance Groupe 1 were also affirmed at

The rating affirmation reflects Tereos's strong business profile,
which remains offset by a volatile financial profile. Fitch
expects the company's credit metrics to improve in the financial
year ended March 31, 2017 (FY17), particularly leverage and funds
from operations (FFO) fixed-charge cover, after three years of
weakening as sugar prices dropped. However, the new EU sugar
regime from September 2017, combined with the inherent volatility
of sugar prices, makes the sustainability of this improvement
trend uncertain at this stage. The company enjoys a strong market
position, supported by well-invested assets, access to the
produce of member-farmers operating in some of the higher-
yielding sugar beet regions in Europe and growing diversification
of geography and raw materials. The cooperative ownership profile
of Tereos also contributes to its conservative financial policies
as reflected in the rating.


Strong Business Profile: The IDR is underpinned by Tereos's
strong business profile for the 'BB' category, both in
operational scope and position in commodity markets with
potential for long-term growth. Geographic and product
diversification, with an important portion of sales and profits
being generated outside the company's historic French sugar beet
operations, as well as efforts to increase operating efficiency,
also support Tereos's business risk profile.

Profit Rebound: Tereos strongly boosted revenue and profit in the
nine months ending December 2016 (9M17) thanks to a combination
of sugar and ethanol price recovery and benefits from cost
efficiency programmes. Fitch expects FY17 results to confirm the
trend, and profits to further grow in FY18 albeit more
moderately. Any drop in European sugar prices is likely to be
more-than-compensated from higher sugar beet volumes and greater
efficiency. Fitch also expects the starch and sweeteners business
to contribute more to profit, due to an improved product mix,
larger capacity and better efficiency. Fitch therefore considers
the FY16 results as the company's lowest EBITDA point in the
current cycle.

Exposure to European Sugar Price Adjustment: European prices
recovered in FY17 due to lower production, which led to a rapid
drop in stock-to-use ratios. However, they are likely to decrease
again as they converge with lower international prices, along
with the removal of the quota regime in September 2017. Similar
to other European sugar processors, Tereos's European sugar beet
business suffered a sharp contraction in profitability in the
last few years. Its EBITDA dropped in FY16 to EUR146 million
(less than a third of its FY13 level), following a steep decline
in EU quota sugar prices largely linked to the intervention of
the European Commission in 2013.

Higher European Sugar Volume Upside: Fitch expects the group to
benefit from a post-2017 deregulated European sweeteners market
due to strong market share and competitiveness. The EU sugar
reform will lift constraints on production and exports from
Europe. Tereos has contracted with member-farmers in France to
increase production of sugar beet so that increased volumes can
more than compensate for lower selling prices. Fitch therefore
projects that EBITDA from Tereos's European sugar beet operations
will keep growing in FY18.

Improvement of Credit Metrics: Fitch projects RMI-adjusted funds
from operations (FFO) gross leverage should return below 4.5x in
FY17 after having peaked at 6.1x in FY16. Similarly, Fitch
expects RMI-adjusted FFO fixed-charge cover to have reached its
low point (3.0x) in FY16 and to recover to around 3.5x from FY17.
Such improvement in financial metrics should be supported by
higher FFO and RMI value. These levels are comfortable for the
ratings. Fitch expects free cash flow to remain mildly negative
over FY17-FY18 due to working capital absorption in FY17 and
FY18. In addition, Fitch projects capex to remain high at an
average EUR400 million annually.

Adequate Financial Flexibility: Tereos's weak credit metrics are
partially mitigated by adequate financial flexibility. The latter
is supported by strict financial discipline in shareholder
distributions and M&A spending, adequate liquidity management and
healthy RMI-adjusted FFO fixed-charge cover throughout the
commodity down-cycle. In the low sugar price environment,
cooperative owners have shown their support to Tereos by
accepting a sharp reduction in "price complements", which Fitch
considers akin to dividend distributions. While there has been a
modest increase in distributions in FY17, Fitch assumes these
will remain low so long as the profitability of Tereos's European
sugar business remains low.

Parent-Subsidiary Linkage: Tereos France's (TF) and Tereos's
influential control as well as their legal and strategic ties
with TI are very strong. These compensate for limited, albeit
growing, operational, financial integration and ownership - and
make parent and its subsidiary intrinsically linked. Fitch also
expects a degree of convergence in the financial profiles of both
TI and its French holding.

Average Recovery Prospects: Due to the strong linkages between
TSF, Tereos and TI, the rating on the senior unsecured notes is
derived from the consolidated group's IDR of 'BB'. The senior
unsecured notes are rated at the same level as the group's IDR.
Usually, for issuers rated in the 'BB' category, prior-ranking
debt constituting 2x-2.5x EBITDA indicates a high likelihood of
subordination and lower recoveries for unsecured debt. Fitch
believes that the level of senior secured (or other form of
prior-ranking) debt leverage at TSF is unlikely to rise higher
than 2.0x over the next three years as Fitch expects a recovery
in EBITDA from the sugar beet business. Furthermore, Fitch
believes TSF (or Tereos) is unlikely to increase its debt to
support other group entities.

Revolving Credit: In addition, existing committed debt ranking
ahead of the senior unsecured notes relates to TSF's EUR450
million revolving credit facility (RCF), which exclusively funds
working capital needs throughout the year. Based on the company's
historical intra-year working capital needs, average intra-year
outstanding RCF amounts are unlikely to rise beyond 2.0x TSF's


Tereos's IDR of 'BB' is positioned in between the credit quality
of larger and significantly more diversified commodity trader and
processor Bunge Limited (BBB/Stable) and the 'B' category rated
Kernel Holding S.A. (B+/Stable) and Biosev S.A. (B+/Negative),
whose ratings discount a heavy concentration on one country where
they originate the commodities they process and sell. Tereos
enjoys a moderate degree of geographic diversification with
material sourced mainly in western Europe and Brazil but also in
The Indian Ocean and Asia as well as combining production of beet
sugar, cane sugar, sweeteners, ethanol and starches.


Fitch's key assumptions within Fitch ratings case for the issuer

- Revenue to grow in FY17 at a pace (low teens) aligned with
9M17 performance; further strong growth (mid-to-high single
digit) in FY18, resulting from higher volumes more than
compensating the lower prices that will result from the EU sugar
reform from the second half of FY18 and adverse FX effects in
Brazil; broadly stable revenues from FY19;

- Consolidated EBITDA margin recovering to around 12.5% in FY17
(10% in FY16; 14.8% in FY14) and 13% in FY18 as a result of
better prices, product mix and/or benefits from efficiency
programme; constant at 13.0% over FY18-FY20;

- Working capital absorption over FY17 and FY18 as a result of
price (FY17) and volume growth (FY18);

- Capex remains around EUR400 million annually on average until
FY19 as company continues to invest in higher efficiency and
increases capacity;

- Buyout of Petrobras's stake in Guarani and of Tereos
Internacional minorities for close to EUR210 million in FY17;
EUR40 million per annum bolt-on M&A thereafter


Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action

- Strengthening of profitability (excluding price fluctuations),
as measured by RMI-adjusted EBITDAR/gross profit, reflecting
reasonable capacity utilisation rates in the sugar beet business
and overall increased efficiency.

- At least neutral FCF while maintaining strict financial

- FFO gross leverage (RMI-adjusted) consistently below 3.5x at
Tereos group level.

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action

- Inability to sustainably maintain cost savings derived from
efficiency programmes or excessive idle capacity in different
market segments, leading to RMI-adjusted EBITDAR/gross profit
remaining weak.

- Inability to return consolidated FFO to approximately USD500
million (FY16: USD300 million and to improve profitability and
cash flow generation.

- Reduced financial flexibility as reflected in FFO fixed-charge
cover (RMI-adjusted) falling below 3.0x.

- FFO gross leverage (RMI-adjusted) above 4.5x at Tereos group
level on a sustained level.


Adequate liquidity: Tereos's internal liquidity score, defined as
unrestricted cash plus RMI plus accounts receivables divided by
total current liabilities, improved to 1.1x in FY16 from 0.7x in
FY14 as management successfully lengthened the group's average
debt maturity profile. This is consistent with levels for a 'BB'
rating. Liquidity is further supported by comfortable access to
diversified sources of external funding, demonstrated by the
successful issue of seven-year bonds in June and October 2016 and
the full refinancing of its sweeteners business in Europe in
December 2016 with a EUR200 million revolving credit facility.


OFFICINE MACCAFERRI: Fitch Cuts IDR to B- on High Leverage
Fitch Ratings has downgraded Italy-based building products
company Officine Maccaferri S.p.A.'s Long-Term Issuer Default
Rating (IDR) and senior unsecured rating to 'B-' from 'B'. The
senior unsecured rating has a Recovery Rating 'RR4'/50%. The
Outlook is Stable.

The downgrade reflects Officine Maccaferri's high leverage, which
is outside Fitch negative rating guidelines. Deterioration in
both margins and cash flow generation has resulted in financial
metrics that no longer support a 'B' rating. Although management
has taken actions to increase the company's global industrial and
operational footprint, Fitch expects challenging market
conditions to persist in some key markets of Latin America and
Europe, preventing a swift deleveraging.

The senior unsecured bond rating reflects Fitch's recovery
analysis of the company on a going concern basis. However, as
some of the assets are domiciled in countries with a 'RR4' cap,
Fitch uses a 50% recovery to arrive at a Recovery Rating of
'RR4', resulting in the equalisation of the senior unsecured debt
rating with the IDR.


High Leverage: The company's financial profile has deteriorated
over the past two years due to lacklustre operating performance
and significant restructuring costs. Fitch forecasts only modest
deleveraging over the next two years, trending to funds from
operations (FFO) adjusted gross leverage of 6.0x by end-2018 .
Fitch acknowledges the bulk of the reorganisation is now
completed but headwinds in some of the key markets are likely to

Challenging Market Conditions: Despite geographic diversification
and a solid business profile for the ratings, the company faces
weak performance in different regions. Political instability and
currency devaluation are negatively affecting the company's
business in emerging countries, where prices and margins are
under pressure. Sluggish markets in southern Europe are also
adding volatility to the business.

Revised Operating Performance Forecast: Price challenges and
deferred investment decisions of local governments will result in
lower forecast revenue growth between 2017 and 2020. The
increased contribution from geosynthetics only partially offsets
a decline in the double twist mesh products division, where the
company has historically held leading market shares. However,
Fitch expects Officine Maccaferri to stabilise its EBITDA margin
at around 9.5% by 2018 due to its flexible cost base and the
recent reorganisation.

Intragroup Relationship: Officine Maccaferri is part of a family-
owned conglomerate (SECI Group). As at March 2017, the company
had a loan of around EUR30 million to its parent SECI S.p.A..
Fitch does not factor any repayment of the intercompany loan over
Fitch ratings horizon, as the loan is not included in Fitch net
leverage calculation. Although Fitch has not factored into the
ratings any cash support to other group companies, evidence of
excessive cash distributions to its parent could have a negative
rating impact. However, certain measures are in place, including
largely non-recourse debt issuance among its operating entities
and restrictions on upstreaming cash to the parent.


Officine Maccaferri's holds global leading positions in the DT
mesh products and rockfall protection structures, with strong
geographic diversification for the ratings. Low customer
concentration and some industry diversification have historically
contributed to the resilience of the business. Despite its
business profile, the company's small size and high leverage
constrain ratings at the lower scale of the B category.


Fitch's key assumptions within Fitch ratings case for the issuer

- Revenue growth at around 2% CAGR during the next three years

- EBITDA margin gradually improving towards 9.5%, driven by
operating efficiencies

- Capex at 2% of sales on a sustained basis in line with
management guidance

- Restricted cash required for intra year-working capital swings
at EUR10 million

- Uncommitted credit lines rolled over annually


Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action

- FFO adjusted gross leverage below 5.0x on a sustained basis
- FFO fixed charge cover above 2.5x on a sustained basis
- Positive free cash flow (FCF) on a sustained basis
- EBIT margin consistently above 5%

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action

- Failure to reduce FFO adjusted gross leverage below 6.0x by
- FFO fixed charge cover below 2.0x on a sustained basis
- Negative FCF on a sustained basis
- EBIT margin below 4.5%, on a sustained basis


Adequate Liquidity: Despite expected weak FCF generation in the
short- to medium-term and the lack of a committed back-up
revolving credit facility, the liquidity of the company is
considered adequate.

POPOLARE DI VICENZA: Big Banks May Help in Italy's Bailout Plan
Paola Arosio and Stefano Bernabei at Reuters report that Italy's
biggest banks may help Rome bail out Popolare di Vicenza and
Veneto Banca to avoid being hit by costly depositor guarantees if
European regulators shut them down.

The overnight rescue of Spain's Banco Popular Espanol SA by Banco
Santander SA has increased pressure on Italy, which has been
trying to win European Union approval for its planned bailout of
the two regional banks for months, Reuters notes.

Rome has so far failed to find investors ready to put in the
EUR1.2 billion (US$1.35 billion) in private capital that EU
authorities are demanding to authorize the plan, Reuters states.

The "resolution" of Banco Popular could strengthen the case for
winding down the two Veneto banks, Reuters relays, citing an EU

According to Reuters, one source said on June 8 Italian banks
would have to shell out EUR11 billion to protect depositors at
Veneto Banca and Popolare di Vicenza if the two banks were wound

Under Italian law, deposits up to EUR100,000 each are guaranteed
by a depositors' protection fund which is financed by healthy
lenders and would have to be replenished if the two Veneto-based
banks were shut down, Reuters states.

The source, as cited by Reuters, said Italy's healthier banks and
the government were looking at a plan under which each lender
would contribute to provide the EUR1.2 billion required based on
the size of their deposits.

Some leading banks were already agreeable, but only if others
signed up, Reuters says.

A second source said Rome was putting pressure on heavyweights
Intesa SanPaolo (ISP.MI) and UniCredit to take part so that other
banks would follow their example, Reuters relays.

According to Reuters, the first source said UniCredit CEO Jean
Pierre Mustier has held talks with the Rome government and
European authorities.

The two Veneto-based banks, weighed down by bad debts and
mounting losses over the past three years, need a total of EUR6.4
billion in capital, Reuters discloses.  One possible vehicle for
private investment would be an existing bank rescue fund, Reuters

Banca Popolare di Vicenza (BPVi) is an Italian bank.  The bank
was the 13th largest retail and corporate bank of Italy by total
assets, according to Mediobanca.

                         *     *     *

As reported by the Troubled Company Reporter-Europe on Mar 21,
2017, Fitch Ratings downgraded Banca Popolare di Vicenza's
(Vicenza) Long-Term Issuer Default Rating (IDR) to 'CCC' from
'B-' and Viability Rating (VR) to 'cc' from 'b-'. The Long-Term
IDR has been placed on Rating Watch Evolving (RWE).

The downgrade of Vicenza's VR to 'cc' reflects Fitch's view that
it is probable that the bank will require fresh capital to
address a material capital shortfall, which under Fitch's
criteria would be a failure.

The downgrade of the Long-Term IDR to 'CCC' reflects Fitch's view
that there is a real possibility that losses could be imposed on
senior bondholders if a conversion or write-down of junior debt
is not sufficient to strengthen capitalisation and if the bank
does not receive fresh capital in a precautionary

SANAC SPA: June 30 Deadline Set for Expressions of Interest
Avv. Corrado Carrubba, Dott. Piero Gnudi and Prof. Enrico Lagh,
the Extraordinary Commissioners of SANAC S.p.A., are inviting
expressions of interest for the purchase of businesses owned by
Sanac S.p.A. in Extraordinary Administration.

Sanac S.p.A. is a company engaged in the extraction, production
and marketing of raw materials and refractory materials.  The
Company is indirectly controlled by Ilva S.p.A. in extraordinary
administration procedure.

By decree of the Ministry of Economic Development of February 20,
2015, Sanac was admitted to the extraordinary administration
procedure.  The Company subsequently declared insolvent by
judgment of the Court of Milan of March 5, 2015  Mr. Corrado
Carrubba, Mr. Piero Gnudi and Mr. Enrico Laghi (hereinafter the
"Official Receivers") were appointed as official receivers of the

On January 5, 2016, the Official Receivers published the notice
"Invito a manifestare interesse in relazione all'operazione di
trasferimento dei complessi aziendali facenti capo ad Ilva S.p.A.
in Amministrazione Straordinaria e ad altre societa del medesimo
gruppo".  Following the expression of interest under the Notice,
the Official Receivers consider it appropriate to carry out a
procedure specifically designed to transfer the business of Sanac
to third parties (the "Procedure").

Expressions of interest to participate in the Procedure must be
received no later than 6:00 p.m. (CEST) of June 30, 2017, in a
sealed envelope bearing the wording "Expression of interest -
Project Stone" on the outer envelope, and details of the sender,
at the office of Notary Carlo Marchetti (Studio associato fra i
Notai Carlo Marchetti, Renata Marella, Carlotta Dorina Stella
Marchetti e Andrea De Coste), Via Agnello, 18 - 20121 Milan.  The
notary receipt protocol shall attest the date and time of

The expressions of interest must include:

(a) the essential information needed to fully identify the
     person concerned (if a company: company name, registered
     office, tax code and VAT number, or other identification
     required by the law of the home State; if a sole
     proprietorship: first name, last name, tax code and VAT
     number, or other identification required by the law of the
     home State);

(b) indication of the addresses at which the applicant intends
     to receive any notification relating to the Procedure,
     including an e-mail and fax address; and

(c) the statement of the interested party.

The expression of interest must also be accompanied by:

(a) a copy of this Call initialled on each page and signed at the
bottom by the party expressing interest (for undertakings in
the form of company, by their legal representative or by a
person with the necessary powers to validly engage the
interested party), as full and unconditional acceptance of all
the terms and conditions stated therein;

(b) in the case of undertakings in the form of company,
documentation proving the signatory powers of the person who
signs the expression of interest, a copy of a chamber of commerce
historical file search (or equivalent document) dated no more
than seven (7) days prior to the date of the expression of
interest, a copy of the by-laws in force and a copy of the last
three approved statutory and, (if any) consolidated financial

(c) in the case of undertakings in the form of sole
proprietorship, a copy of the last three annual VAT returns
submitted; and

(d) any document considered useful to provide evidence of the
activity carried out by the applicant and its ability to: ensure
continuity of the production operations of the businesses
involved in the Procedure, including the guarantee of adequate
employment levels.

The applicants who already expressed interests in the Notice of
January 5, 2016, may omit the attachment of documents if they
were already made according to the Notice of January 5, 2016, and
do not need any update.

The expression of interest and all the documentation annexed
thereto must be drawn up in Italian.  If the expression of
interest and/or the documents are written in a language other
than Italian, they must be accompanied by a sworn translation

The Procedure shall involve the steps briefly outlined below:

(a) analysis by the Official Receivers of the expression of
interest received no later than the deadline referred to in
paragraph 3 and selection of the parties admitted to the
following steps of the Procedure;

(b) admission of the selected parties to the due diligence phase,
subject to prior signing of the necessary confidentiality

(c) the entities admitted shall receive a special procedure
letter (hereinafter, the "Procedure Letter"), which shall
  (i) the length of the due diligence phase;
(ii) terms and procedures of the binding offers to be submitted;
(iii) procedures for one or more additional bidding phases,
      to which all or some of the tenderers may be invited to
      participate; and

(d) award of the Procedure on the basis of the best binding offer
received and signing of the contractual documents of the cession,
subject to obtaining all necessary authorizations for this
purpose pursuant to Decree Law 347/2003 or any other applicable

If the interested parties need clarification and/or information
in relation to this Call, they may request them by sending a
notice in Italian to the financial advisor of the Official
Receivers, Rothschild S.p.A., exclusively by e-mail at the
following address:, indicating
"Project Stone" in the subject.

VALTUR SPA: Extraordinary Commissioners Seek Proposals for Debts
Avv. Stefano Coen Avv. Daniele Discepolo Prof. Avv. Andrea Gemma,
the Extraordinary Commissioners of Valtur S.p.A., Mediterraneo
Villages S.p.A., Castelgandolfo S.p.A., Costa Verde S.r.l.,
Multicasa Uno S.r.l. and Torre Pizzo Investimenti S.r.l., are
inviting interested parties to submit proposals for composition
with creditors with assumption of debts, with reference to one or
more Companies, within and no later than 6:00 p.m. (CET) of the
sixtieth day from May 18, 2017, the publication date of of this
notification, at the office of the Notary Public Angelo Busani at
via Cordusio No. 2, 20123 Milan (Italy), in compliance with the
terms and conditions provided for by the tender rules available
on the website
("Tender Rules").

All subjects interested to submit proposals for the composition
with creditors may request to carry out a due diligence activity
relating to the Companies and the Valtur Group Real Estates, in
compliance with the terms and the conditions provided by the
Tender Rules.

Valtur, Mediterraneo Villages, Castelgandolfo, Costa Verde,
Multicasa and Torre Pizzo were admitted to the insolvency
proceeding of Amministrazione.

Avv. Stefano Coen, Avv. Daniele Discepolo and Prof. Avv. Andrea
Gemma were appointed as Extraordinary Commissioners of the
Companies by the Italian Ministry of Economic Development,
pursuant to the Marzano Law.

Valtur holds a holding representing the entire corporate capital
of the company Giraudi S.r.l., with registered office in Milan,
via Agnello n. 5, tax code 00281820084, which, in turn, is the
owner of some real estate properties located in Milan, via
Agnello 5 and via Santa Radegonda 8.

Valtur also brought (i) a liability action against some
individuals, claiming compensation for the damages caused to
Valtur and (ii) some bankruptcy claw-back actions against some
suppliers of Valtur and some credit institutions, which Valtur
had some relationships with.

The Commissioners intend to evaluate the possibility to proceed
with the liquidation of the assets of each Company by a
composition with creditors with assumption of debts (concordato
con assunzione).

The proposals for composition with creditors, which shall be
submitted on an autonomous basis with regard to each Company,
shall provide for: (i) the assumption by the assumptor of all the
liabilities of such Company, (ii) the assignment in favor of the
assumptor of all the Valtur Group Real Estates owned by such
Company and of the receivables of such Company as specified in
the documents that will be made available, except for cash
and cash equivalent, (iii) the succession of the assumptor in all
the legal relationships relating to the Valtur Group Real Estates
and in all the lawsuits involving such Company, to the maximum
extent permitted by the law, and (iv) exclusively with regard to
Valtur, the assignment to the assumptor of the Giraudi Holding,
of the Liability Action and of the Claw-back Actions.


KOKS PJSC: Moody's Hikes CFR to B2 on Improved Liquidity
Moody's Investors Service has upgraded to B2 from B3 the
corporate family rating (CFR) and to B2-PD from B3-PD the
probability of default rating (PDR) of PJSC KOKS. At the same
time, Moody's has upgraded the senior unsecured rating of the
outstanding $77 million loan participation notes due 2018 issued
by Koks Finance D.A.C. to B2 (LGD 4) from B3. Concurrently,
Moody's has assigned a definitive senior unsecured rating of B2
(LGD 4) to Koks Finance D.A.C.'s $500 million loan participation
notes due 2022. The outlook on the ratings is positive.

The rating action concludes the review of KOKS's ratings
initiated by Moody's on April 18, 2017.

"The upgrade factors in KOKS's improved liquidity, with its debt
maturities and other obligations covered until at least the end
of 2018 following the success of its most recent round of
refinancing," says Artem Frolov, Vice President - Senior Credit
Officer at Moody's.


The upgrade of KOKS's ratings reflects a material improvement in
the company's liquidity, as a result of completion of the tender
offer for Koks Finance's notes due 2018 (the company repurchased
$124 million out of outstanding $201 million worth of notes) and
the concurrent placement of $500 million notes due 2022 in May
2017, which enabled the company to refinance the bulk of its
short-term debt maturities. Following the transaction, KOKS's
liquidity is sufficient to cover the company's debt maturities
and other obligations (excluding capex covered by a dedicated
available loan) until at least the end of 2018.

KOKS's ratings take into account (1) the company's status as one
of the leading merchant pig iron producers globally, with a
fairly diversified customer base and geography of sales; (2) the
anticipated growth in the company's coal production capacities,
as a result of the expected commissioning of the first stage of
the Tikhova mine and the second stage of the Butovskaya in the
second quarter of 2017; (3) the company's low-cost position,
owing to the weak rouble and operational enhancements; (4)
Moody's expectation that the company's leverage and interest
coverage metrics will improve over the next 12-18 months; (5)
KOKS's significant degree of vertical integration, with 50% and
70% current self-sufficiency in coking coal and iron ore,
respectively; and (6) the company's positive free cash flow

The ratings also factor in the company's (1) limited operational
and product diversification, although these factors will improve
after the commissioning of the first stage of the Tikhova mine
and the second stage of the Butovskaya mine; (2) exposure to
volatility in prices for steel and feedstock; (3) debt-financed
expansionary capex programme; and (4) concentrated ownership-
related risks, with significant loans provided to related

The B2 senior unsecured ratings of Koks Finance D.A.C.'s notes
are at the level of KOKS's CFR, which reflects Moody's estimation
that less than 20% of KOKS's consolidated debt is secured with
assets. If the share of secured debt were materially higher, the
unsecured notes could be rated below the CFR because of their
subordination to a sizable higher-priority debt.


The positive outlook reflects the company's strong positioning
within the current rating category and the possibility of an
upgrade over the next 12-18 months, on the back of expected ramp
up of the new coal capacities, improvement in leverage and
healthy liquidity.


Moody's could upgrade KOKS's ratings if the company were to (1)
reduce its Moody's-adjusted debt/EBITDA below 3.0x on a
sustainable basis; (2) ramp up its coal production capacities as
planned; and (3) maintain healthy liquidity and prudent liquidity
management, addressing upcoming debt maturities in a timely
fashion. Completion of the steel plant project (hence elimination
of any contingent need for additional funding), which is outside
of the perimeter of CFR and is funded by KOKS via shareholder
loans, would also be a prerequisite for an upgrade.

Moody's could downgrade the ratings if the company's operating
and financial performance, market position or liquidity and
liquidity management were to deteriorate materially.


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

PJSC KOKS is a Russia-based producer of coking coal, coke, iron
ore and pig iron. In 2016, the company produced 2.2 mt of pig
iron, 2.8 mt of coke, 2.6 mt of coking coal concentrate and 2.2
mt of iron ore concentrate. In 2016, the company generated
revenue of RUB64.5 billion (2015: RUB53.6 billion) and Moody's-
adjusted EBITDA of RUB12.9 billion (2015: RUB12.7 billion). KOKS
is majority-owned by the Zubitsky family, which holds an 86%
stake in the company.

RUSSIAN INTERNATIONAL: Moody's Lowers LT Deposit Ratings to Caa2
Moody's Investors Service has downgraded Moscow-based Russian
International Bank's long-term local and foreign-currency deposit
ratings to Caa2 from B3 and changed the outlook on these ratings
to negative from stable. The changes reflect the recent weakening
of the bank's asset quality and earnings generation capacity, as
well as downside risks to its capital position.

The rating agency has also downgraded Russian International
Bank's baseline credit assessment (BCA)/adjusted BCA to caa2 from
b3 and its long-term Counterparty Risk Assessment (CR Assessment)
to Caa1(cr) from B2(cr). Concurrently, Moody's affirmed the
bank's Not Prime short-term local and foreign-currency deposit
ratings and its Not Prime(cr) short-term CR Assessment. The
overall outlook on the bank's ratings changed to negative from


The downgrade is driven by the recent deterioration in Russian
International Bank's asset quality, its loss-making performance
and weakening of the bank's liquidity position. Moody's
expectations that the bank's capital adequacy ratios (regulatory
Tier 1 ratio of 8.8% as of May 1, 2017) will be pressured by a
need for additional substantial loan loss provisions in the next
12-18 months drive the negative outlook on the ratings. Given the
insufficiency of the bank's pre-provision income to absorb its
potential credit losses, Russian International Bank will have to
rely on capital injections from its shareholders to remain

Russian International Bank's problem loans, defined as the sum of
loans overdue by at least 90 days and restructured loans that
would otherwise become overdue, increased to 24.7% as of year-end
2016 from 13.7% a year ago. The bank's coverage of problem loans
by loan loss reserves (LLR) stood at 45% as of year-end 2016,
which appeared insufficient. Under local GAAP, the bank has since
increased its LLR by approximately RUB1 billion (equivalent to 6%
of average gross loans), and shareholders supported the bank's
capital position by converting RUB1.4 billion of long-term
subordinated debt into equity.

However, Moody's expects that the bank will need to further
increase its loan loss reserves in the next 12-18 months. The key
weaknesses of the bank's asset quality profile include a high
share of foreign-currency denominated loans (53% of net loans as
of year-end 2016, predominantly granted to non-residents), as
well as high exposure to risky trading (48% of gross loans),
construction (15%) and real estate (6%) sectors.

For the past two years, Russian International Bank's recurring
income, defined as the sum of net interest income and net fee and
commission income, was just sufficient to cover administrative
expenses and could not absorb credit losses. A sharp increase in
the latter to 3.2% of average gross loans in 2016 translated into
a negative return on average assets (RoAA) of 2.6% last year.
According to local GAAP, the bank remained loss-making in Q1
2017, and its recurring pre-provision income turned negative on
the back of a shrinking net interest margin, which Moody's
expects to protract into the future.

The bank's liquidity position weakened in Q4 2016 and Q1 2017, as
a result of significant outflows of both individual and corporate
customer funds. As of May 1, 2017, the bank's unencumbered liquid
assets stood at just 10% of total assets, down from 22% as of
October 1, 2016. Although the share of liquid assets has since
recovered to approximately 13%, the recent dynamics demonstrated
the vulnerability of the bank's customer funding.


A positive rating action on Russian International Bank's ratings
is unlikely in the next 12-18 months, given the negative outlook.
However, Moody's may change the outlook on the long-term ratings
to stable, if the bank's capital position is significantly
strengthened through equity injections. A pre-requisite for
further positive rating actions would be the bank demonstrating
its ability to stabilize asset quality and restore profitable

Russian International Bank's ratings could be downgraded if its
asset quality deterioration and loss-making performance put
negative pressure on the bank's capital, which is not compensated
by shareholder support. Deterioration of the bank's already
modest liquidity position could also trigger a negative rating


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

Headquartered in Moscow, Russia, Russian International Bank
reported -- at January 1, 2017 -- total IFRS assets of RUB28.9
billion and total equity of RUB4.9 billion. The bank's IFRS net
loss for 2016 amounted to RUB0.8 billion.


AYT CAIXA SABADELL: Fitch Lowers Class C Tranche Rating to 'Bsf'
Fitch Ratings has downgraded three tranches of AyT Caixa Sabadell
Hipotecario and simultaneously resolved the Rating Watch Evolving

Class A (ES0312192000) downgraded to 'BBB+sf' from 'A-sf'; off
RWE; Outlook Stable

Class B (ES0312192018) downgraded to 'BB+sf' from 'BBB-sf'; off
RWE; Outlook Stable

Class C (ES0312192026) downgraded to 'Bsf' from 'BB-sf'; off RWE;
Outlook Stable

Class D (ES0312192034) affirmed at 'CCCsf'; off RWE; Recovery
Estimate revised to 5% from 60%


Collateral Information Received
The transaction was placed on RWE on December 9, 2016 due to
insufficient information on borrower and loan characteristics.
Additional data has since been provided and Fitch was able to
conduct a full rating assessment that properly reflected the
credit risk associated with this portfolio. Fitch has therefore
resolved the RWE.

Stabilising Credit Profile
The performance of the securitised portfolio has been stable over
the last 12 months. As of November 2016, three-month plus arrears
excluding defaults stood at 0.7% of the outstanding portfolio
balance, below the 3.7% seen in November 2015 and significantly
below the historical high of 13.1% in May 2015.

The large drop in arrears is mainly due to BBVA's repurchase of
problem assets, a strategy that Fitch views as unsustainable
under stress scenarios. As a result, in its analysis of the
portfolio, Fitch has not given any credit to improved performance
and has revised the performance adjustment factor to 1, in line
with criteria.

BBVA Repurchases
Fitch understands from previous discussions with the servicer
that loan buy backs by BBVA have taken place since early 2014, of
which around EUR30 million corresponds to defaulted assets. This
repurchase strategy has improved the transaction's credit profile
as large recovery cash flows have entered the transaction and
have been allocated in accordance with the priority of payments
definitions. Therefore, total arrears have substantially
decreased, credit enhancement has improved for all rated
tranches, and the balance of the reserve fund has increased to
100% of its target level. Fitch understands from the servicer
that the large buy backs were a one-off event. As there is no
formal commitment in place, no credit has been given to further
purchases of distressed loans.

Adverse Loan Characteristics
The February 2017 pool showed 63% of loans with flexible
features. These are similar to lines of credit where the borrower
has the possibility to increase the total debt level up to the
allowable amount. While additional drawdowns remain with the
lender, the re-draw mechanism still affects the recovery rates
for the loans in this portfolio. As a result, in its analysis,
Fitch has sized for the additional re-draws.

Insufficient Credit Enhancement
The improved asset performance has led to the notes amortising on
a pro-rata basis, with priority given to the most junior notes.
Subject to BBVA's continued support of the transaction via loan
repurchase, the amortisation of the notes is expected to remain
pro-rata in the near future, leading to a further decline in
credit enhancement as the junior notes reach their minimum
tranche size.

Fitch conducted a full cash flow analysis of the transaction,
which showed that the current credit enhancement available to the
class B and C notes was not sufficient to withstand the combined
effects of the adverse portfolio characteristics and the
structural features. This is reflected in their respective

High Exposure to Catalonia
Almost 100% of the securitised portfolio is secured by properties
located in Catalonia. To address this high geographical
concentration in the credit analysis, Fitch has increased the
foreclosure frequency of loans backed by properties in Catalonia
by 15%. Fitch's credit analysis is carried out under the scenario
that Catalonia remains a region of Spain and does not become an
independent state.

Lender Adjustment
Fitch's base default probabilities assume that origination,
underwriting and servicing practices and procedures are in line
with those of a standard traditional Spanish lender, with market
expertise and relevant management experience. At transaction
close Fitch applied a lender adjustment of 20%. This same
adjustment was applied in this analysis.

Maximum Achievable Rating
Fitch capped the ratings of the notes at 'BBB+sf' in accordance
with its counterparty criteria for structured finance
transactions. This is to address the exposure to CECA Bank (BBB-
/Stable/F3), who is the swap counterparty and has set up a swap
collateral account with themselves. As this arrangement is not in
line with its criteria, Fitch has not given credit to collateral
posting, thus eliminating any related benefit.


Deterioration in asset performance may result from economic
factors, in particular the increasing effect of unemployment. A
corresponding increase in new defaults and associated pressure on
excess spread levels and the reserve fund could result in
negative rating actions.

A change in creditworthiness of the swap provider may lead to
changes in the rating cap of the notes, subject to other
structural features.

BANCO POPULAR: Market Shrugs Off Wipeout of Subordinated Debt
Helene Durand at IFR reports that the regime to deal with failing
European banks cleared its first major hurdle on June 7 as the
market shrugged off the resolution of Banco Popular and the
wipeout of its subordinated debt.

After watching the bank wobble on the edge of insolvency for
months, regulators eased market jitters with a relatively swift
winding up of the Spanish lender, IFR relays.

The Single Resolution Board bailed in the sub debt, wrote down
the shares and Additional Tier 1 instruments, converted the Tier
2 debt to new equity -- and won wide praise for doing so, IFR

"This was the first major test of the BRRD and it shows that the
decision system works," IFR quotes Gerald Podobnik, global head
of capital solutions at Deutsche Bank, as saying.

Before the regulators took action, Popular's two outstanding AT1
notes were quoted at a cash price in the 40/50s, while its Tier 2
was quoted in the high 70s, IFR states.

Those levels showed investors had not been expecting a complete
wipeout of the debt, according to IFR.

The market had had doubts about Popular since at least January,
when the bank was forced to dip into reserves to ensure it could
pay coupons on its AT1 bonds, IFR recounts.

Yet Popular never did miss a payment, and the decision to wipe
out its sub debt and impose steep losses on bondholders jumped
the sequence of events that some were expecting, IFR notes.

"We'd have expected to have had a missed coupon before we'd have
seen a write-down of an AT1," Eoin Walsh, partner and portfolio
manager at TwentyFour Asset Management, as cited by IFR, said.

"Popular never missed a coupon on its AT1s, and in that regard we
are surprised."

And given its relatively healthy capital levels, regulators could
find themselves at pains to explain the rationale for taking
action just now, IFR relays.

Still, many will see the situation as final proof that Additional
Tier 1 and Tier 2 instruments can effectively be used as capital
-- a key confirmation in the wake of the last crisis, according
to IFR.

By using the BRRD's asset sale tool, the SRB and Spain were able
to resolve the matter of Popular without having to inject any
state money, IFR states.

It also means that the state will not have to wind the bank down,
as the healthy part of the business has now been absorbed by
Santander, which bought Popular's new shares for a token EUR1,
IFR notes.

Banco Popular Espanol SA is a Spain-based commercial bank.  The
Bank divides its business into four segments: Commercial Banking,
Corporate and Markets; Insurance Activity, and Asset Management.
The Bank's services and products include saving and current
accounts, fixed-term deposits, investment funds, commercial and
consumer loans, mortgages, cash management, financial assessment
and other banking operations aimed at individuals and small and
medium enterprises (SMEs).  The Bank is a parent company of Grupo
Banco Popular, a group which comprises a number of controlled
entities, such as Targobank SA, GAT FTGENCAT 2005 FTA, Inverlur
Aguilas I SL, Platja Amplaries SL, and Targoinmuebles SA, among
others.  In January 2014, the Company sold its entire 4.6% stake
in Inmobiliaria Colonial SA during a restructuring of the
property firm's capital.

U N I T E D   K I N G D O M

COVENTRY & RUGBY: Moody's Affirms Ba2 Rating on GBP407.2MM Bonds
Moody's Investors Service has affirmed the Ba2 rating of GBP407.2
million of index-linked senior secured underlying bonds due 2040
issued by Coventry and Rugby Hospital Company Plc. The outlook
was changed to stable from positive.


The change in outlook reflects that the August 2017 target date
for fire protection remedial works completion will not be
achieved. This is because of newly discovered fire protection
items that require rectification. Despite this, the rating was
affirmed because CRHC is adequately protected from increased
expenses through the project's contractual terms.

The Ba2 rating reflects as positives (1) CRHC's 2016 settlement
agreement (the "Settlement") with the University Hospitals
Coventry and Warwickshire NHS Trust ("UHC") and the construction
contractor Skanska, that limits CRHC's maximum potential
liability at a level that would still result in financial metrics
being above lock-up levels; (2) CRHC's long-term PFI contract
with two NHS Trusts; (3) satisfactory performance of facilities
management ("FM") and medical equipment services ("MES") over
several years; and (4) a range of creditor protections included
within CRHC's financing structure, such as debt service and
maintenance reserves.

The rating is constrained, however, by (1) CRHC's discovery of
new fire protection items, which means that the company will not
achieve the August 2017 target date for remedial works
completion; (2) CRHC's high leverage, with minimum and average
debt-service coverage ratios of 1.12x and 1.19x, respectively,
which reduces its ability to withstand unexpected stress; (3) the
uneven DSCR profile which is smoothed through CRHC's use of non-
contractual cash reserving; (4) exposure to lower interest rates,
which would lead to reduced interest income from CRHC's
relatively large lifecycle reserves; and (5) a MES obligation
that is moderately riskier than for comparable issuers.

The outlook on the rating is stable, reflecting that CRHC is
adequately protected against increased costs or financial
deductions despite the newly discovered fire protection items.

Whilst performing remedial works, CRHC identified additional fire
protection items that require rectification. These new items will
significantly extend the works schedule, primarily because more
extensive patient decants will be required. Despite this, CRHC is
adequately protected from increased costs or financial deductions
through the Settlement. In particular the Settlement covers any
newly discovered fire protection items, and contains the
following provisions: (1) UHC has agreed not to make further
unavailability claims; (2) the construction contractor Skanska is
procuring the remedial works, and CRHC has a low, limited
exposure to the associated costs; and (3) only a small financial
penalty is payable by CRHC to UHC if the August 2017 target date
is not achieved.

The Bonds benefit from an unconditional and irrevocable guarantee
of scheduled principal and interest from Assured Guaranty
(London) Limited, formerly MBIA UK Insurance Limited ("AG
London", rated Baa2 stable). The underlying rating of Ba2
reflects the credit risk of the Bonds absent the benefit of the
guarantee from Assured London. Since the Assured London rating is
higher than the underlying rating, the rating of the Bonds is


Moody's could consider a rating upgrade if CRHC successfully
progresses with the remedial works program, including the newly
discovered items, and if FM and MES provision remains

Moody's could consider downgrading the rating if there are
technical difficulties in the execution of remedial works, or if
there is a deterioration in relationships with UHC or Skanska.

The principal methodology used in this rating was Operational
Privately Financed Public Infrastructure (PFI/PPP/P3) Projects
published in March 2015.

CRHC is a special purpose vehicle formed in 2002 to (i) build an
approximately 1,200 bed acute hospital, medical school facilities
and a 130-bed mental health unit in Coventry, England; and (ii)
provide FM and MES. CRHC's primary contractual relationship is
with two NHS Trusts under a 40-year project agreement. The
majority of services are provided to UHC, which accounts for 93%
of CRHC's unitary payment income.

HIGHER EDUCATION 1: Moody's Cuts Ratings on 2 Tranches to Caa3
Moody's Investors Service has downgraded the ratings of Class A3
and A4 notes' ratings to Caa3 (sf) from Caa1 (sf) in The Higher
Education Securitised Investments Series No. 1 PLC (THESIS). At
the same time, Moody's affirmed the Accrual Facility Notes' A3
(sf) rating. THESIS is a UK asset-backed securities (ABS)
transaction backed by student loans.

Issuer: The Higher Education Securitised Investments Series No. 1

-- GBP101.3M Class A3 Notes, Downgraded to Caa3 (sf); previously
    on August 15, 2016 Downgraded to Caa1 (sf)

-- GBP27.3M Class A4 Notes, Downgraded to Caa3 (sf); previously
    on August 15, 2016 Downgraded to Caa1 (sf)

-- Accrual Facility Note, Affirmed A3 (sf); previously on August
    15, 2016 Affirmed A3 (sf)

The transaction is a static cash securitisation of student loans
extended to obligors in the UK, which closed in March 1998. The
loans were originated by Student Loan Company Limited (The)
("SLC"), a UK public sector organization established to provide
loans and grants to over one million students annually across the


The rating action is prompted by the worse-than-expected
performance of the collateral backing the affected notes, which
resulted in a decrease in the Class A3 and A4 notes' credit
enhancement. Moody's has affirmed the Accrual Facility Notes'
rating, as the tranche will benefit from the UK Government
cancelation indemnity on the loans, given its seniority in the


Defaulted loans (which are overdue for more than 24 months) have
increased by GBP2.5million between May 2016 and April 2017. The
rise in defaulted loans has resulted in an increase in the
principal deficiency ledger to GBP63.9 million from GBP61.3
million, and reduced the Class A3 and A4 notes' credit
enhancement to 2.5% from 4% over the same period.

Moody's considers the performance deterioration to be partially
linked to the fact that a higher portion of loans left deferment
in April 2015 due to a lower deferment threshold (-7.1% lower
than April 2014) and that these borrowers did not go back in
deferment in April 2016 or April 2017 when the threshold went
back to its April 2014 level. A borrower may be entitled to defer
loan payments if their income is lower than the deferment
threshold, which is equal to 85% of the average full-time
earnings in the UK.


Moody's projected future default on the outstanding portfolio by
assessing the proportion of loans leaving deferment each year. In
its analysis, the rating agency assumed that the future deferment
threshold would either stay stable or increase with the average
monthly salary in the UK.

Out of the loans that left deferment, Moody's estimated the
amount of loans that would benefit from the UK government's
cancelation indemnity which covers loans outstanding for more
than 25 years. For the remaining part of the pool which is not
covered by this cancelation indemnity, Moody's assumed a default
rate of 14% on loans in repayment without arrears and 30% on
loans in repayment with arrears with a 30% recovery rate for both
loan type.

Loans that continue to be in deferment and satisfy the
aforementioned criteria will benefit from the cancelation
indemnity. In Moody's view, these loans are unlikely to result in
incremental losses to the transaction.

As a result of Moody's analysis, and given the Class A3 and A4
notes' current 2.5% credit enhancement, Moody's has downgraded
the ratings on these tranches to Caa3 (sf) from Caa1 (sf).

Moody's affirmed the A3 (sf) rating of the Accrual Facility
Notes, the most senior tranche in the structure, given the
current 31.4% credit enhancement level and the fact that the
notes will benefit from the UK Government cancelation indemnity
on the loans that will continue to be deferred and on the
repaying ones meeting the criteria of age.

The principal methodology used in these ratings was "Moody's
Approach to Monitoring Scheduled Amortisation UK Student Loan-
Backed Securities" published in April 2015.

Please note that on 22nd of March 2017, Moody's released a
Request for Comment, in which it has requested market feedback on
potential revisions to its Methodology for Structured Finance. If
the revised Methodology is implemented as proposed, the Credit
Rating on the above mentioned deals may be affected. Please refer
to Moody's Request for Comment, titled "Moody's Proposes
Revisions to Its Approach to Assessing Counterparty Risks in
Structured Finance", for further details regarding the
implications of the proposed Methodology revisions on certain
Credit Ratings.

Factors that would lead to an upgrade or downgrade of the

Factors or circumstances that could lead to an upgrade of the
rating are (1) better-than-expected underlying collateral
performance, (2) deleveraging of the capital structure, (3)
improvement of the counterparties' credit quality, and (4)
stability or increase in the amount of loans in deferment.

Factors or circumstances that could lead to a downgrade of the
rating are (1) worse-than-expected underlying collateral
performance, (2) deterioration of the notes' available credit
enhancement, (3) deterioration of the counterparties' credit
quality, and (4) faster than anticipated decrease in the amount
of loans in deferment.

MARSTON'S ISSUER: Fitch Affirms BB+ Rating on Class B Notes
Fitch Ratings has affirmed Marston's Issuer PLC's (Marston's)
class A notes and liquidity facility at 'BBB' and class B notes
at 'BB+'. The Outlooks are Stable.

The quality of Marston's tenanted and franchise pubs has improved
and the managed estate stabilised after the three-year
transformation programme concluded in 2016. The debt structure is
robust and benefits from the standard whole business
securitisation (WBS) legal and structural features and a
comprehensive covenant package. Fitch's base case free cash flow
debt service coverage ratios (FCF DSCR) to legal final maturity
at 1.53x for the class A and 1.35x for the class B compare well
with Marston's closest peers Greene King, Spirit and M&B.


Regulation Changes Bring Challenges: Industry Profile - Midrange
Operating Environment: Weaker
The pub sector in the UK has a long history, but trading
performance for some assets has shown significant weakness in the
past. The sector is exposed to discretionary spending, strong
competition and other factors such as minimum wages, taxes and
utility costs.

In 2016, the statutory pub code introduced the market rent-only
option (MRO) in the tenanted/leased segment. MRO breaks the
traditional tied model that requires tenants to buy drinks from
the pub companies, usually in exchange for lower rent. Fitch
expects the further implementation of the national living wage to
further compress margins. If a lower drink-driving limit was
introduced in England to match Scotland, this could also hurt
future trading.

Barriers to Entry: Midrange
Fitch views licencing laws and regulations as moderately
stringent and managed pubs and tenanted pubs are capital-
intensive. Switching costs within the drinking-eating out market
are low, although there may be some positive brand and captive
market effects.

Sustainability: Midrange
Fitch expects the strong pub culture in the UK to persist,
thereby taking a large portion of the eating-drinking-out market.
The forecasts for mild population growth in the UK are also
credit positive.

Transformed Estate; Uneven Growth: Company Profile - Midrange
Financial Performance: Midrange
Marston's has concluded a three-year effort to transform its
estate, including selling low performing tenanted pubs,
converting many tenanted pubs to the franchise model, upgrading
existing pubs and offering accommodation to drive additional pub
sales. However, trailing 12 months (TTM) to April 2017 EBITDA
within the securitised estate has fallen year on year. Fitch
could revise down the 'midrange' assessment if the impact of the
estate transformation does not result in rising securitised
EBITDA in 2017/18.

Company Operations: Midrange
Management has been pro-active in turning around its tenanted
business including being the first to launch hybrid
tenanted/managed pubs with their franchise agreement model. Many
converted pubs experience a double digit percentage increases in
sales. However, Fitch believes that long-term profit levels
remain uncertain given weak industry fundamentals despite the
turn-around efforts. By contrast, the managed estate has remained
relatively unchanged.

Transparency: Midrange
Information is sufficient to form a view on key trends. The
securitised estate contributes about 54% of Marston's total
EBITDA and other than key financial metrics much of the
information is available on a total estate basis, which reduces
transparency. Financial reporting follows the managed/tenanted
format, without separating out the franchise model pubs, but
Fitch remains uncertain as to the exact impact of increased
franchise pubs on profitability and flexibility.

Dependence on Operator: Midrange
Due to the large size of the estate, Fitch does not views
operator replacement as straightforward but should be possible
within a reasonable period of time.

Asset Quality: Midrange
Fitch considers the pubs to be reasonably well-maintained. In the
last few years, management has channelled disposal proceeds to
repay the GBP80.0 million AB facility in January 2014 and some
capital enhancement of the estate. In the TTM to April 2017,
Marston's spent GBP20.2 million on capital enhancement and
GBP44.6 million maintenance capex or 11.1% of securitised sales
on the securitised estate, which is above the covenant level and
slightly higher than peers. The secondary market is reasonably
strong, demonstrated by Marston's recently concluded significant
disposals programme.

Standard WBS Structure: Debt Structure - Stronger (Class A)
Junior, Back-Ended Amortisation: Debt Structure - Midrange (Class
B)Debt Profile: Class A / B: Stronger
Fitch view the debt profile as 'stronger' for both the class A
and B notes. The debt is fully amortising but there is some
concurrent amortisation of class B. Additionally, there is only a
three-year difference between the class A and B maturities. The
liquidity facility covers almost two years of debt service.
Positive factors include 100% fixed or hedged debt and strong
creditor protections.

Security Package: Class A: Stronger; Class B: Midrange
Fitch views the security package as 'stronger' for the class A
notes and 'midrange' for the class B notes. The security package
is strong with comprehensive first ranking fixed and floating
charges over borrower assets. Class A is the senior ranking
controlling creditor, with the class B lower ranking resulting in
a 'midrange' assessment.

Structural Features: Class A/B: Stronger
Stronger features include a minimum of 18 months liquidity
facility, highly rated financial counterparties with adequate
downgrade language and a clear orphan SPV. Marston's also
benefits from a clear set of covenants and moderate restricted
payment and default covenants relative to the industry.

Financial Metrics - Uneven Performance in Recent Years
Fitch's base case forecast DSCR averages 1.53x for class A and
1.35x for class B, slightly lower than the 2016 forecast. TTM
April 2017 EBITDA was GBP115.9 million versus the previous year's
GBP116.7 million, which was lower than the TTM EBITDA to April
2015. The EBITDA reduction was due to lower sales per pub and a
declining EBITDA margin driven by higher labour costs in the
managed estate, as well as disposals in the tenanted estate.

Marston's metrics are in line with criteria guidance, although
without a significant cushion at the 'BBB' level for the class A
notes. Further underperformance could lead to a revision of the
Outlook to Negative or downgrade.


Fitch compares Marston's ratings with those of Greene King,
Spirit and M&B. M&B comprises managed pubs, whereas the other two
transactions comprise managed and tenanted pubs, although the
share of tenanted pubs in Spirit is much lower than in the
others. Managed pubs generate about 75% of EBITDA for Greene King
and Spirit. In contrast, Marston's managed division generates
around 50% of securitisation EBITDA, which Fitch considers to be
less resilient.


Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action:

- A significant outperformance of the base case due to strong
growth in the managed estate division and further success of the
franchise model, resulting in consistent deleveraging, could lead
to an upgrade.

- Fitch could consider an upgrade if its base case DSCR rises to
1.8x for class A and 1.5x for class B.

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action:

- The ratings could be negatively impacted if performance is
significantly below the current base case. This could be due to
further pub disposals in the managed estate, greater than
expected cost pressure from the introduction of the national
living wage and/or even weaker than expected performance of
tenanted pubs.

- A further deterioration of the Fitch base case DSCR below 1.5x
for class A and 1.3x for class B could lead to a downgrade


Both tenanted and manged sales per pub improved in TTM April
2017. However, EBITDA per managed pub declined by 1.7% due to an
increase in operating costs per pub. Management has confirmed
that this was due to an increase in the minimum wage. As a
result, together with flat tenanted EBITDA, total combined
securitised estate TTM EBITDA to April 2017 declined by 0.7%.
Marston's has underperformed last year's Fitch base case EBITDA
forecast by 1.8%.

In the tenanted estate, EBITDA margins have remained stable.
Tenanted sales per pub grew by 5.5%, in part due to the full-year
effects of the estate transformation. However, this was offset by
disposals and rising operating costs, resulting in flat y-o-y
EBITDA. The overall estate quality has improved, demonstrated by
improved sales and EBITDA per pub.

BASE CASE: Expected managed annual sales per pub growth remains
at 2% as per the previous reflecting Fitch long term UK GDP and
inflation forecasts, together with Fitch long-term decline
expectations for the pub sector. The National Living Wage will
increase the operating costs managed estate until 2021.

Fitch forecast tenanted sales per pub growth at 2% in 2018,
declining to 1.4% by 2020 and further thereafter, as Marston's
estate transformation process has concluded in 2016 and Fitch has
not factored in growth from lodges within the securitised estate.
Operating costs for tenanted pubs is expected to grow in line
with inflation.


The transaction is a securitisation of both managed and tenanted
pubs operated by Marston's comprising 280 managed pubs and 898
tenanted pubs.

THPA FINANCE: Fitch Affirms B Rating on GBP30MM Class C Notes
Fitch Ratings has revised the Outlook on THPA Finance Limited's
notes and affirmed their ratings:

GBP95.2 million class A2 secured 7.127% fixed-rate notes due
2024: affirmed at 'BBB'; Outlook revised to Stable from Negative

GBP70 million class B secured 8.241% fixed-rate notes due 2028:
affirmed at 'BB-'; Outlook revised to Stable from Negative

GBP30 million class C secured 10% fixed-rate notes due 2031:
affirmed at 'B'; Outlook revised to Stable from Negative

The revision of the Outlooks to Stable reflects that PD Ports has
reduced the cost base and signed key long-term leases, which
Fitch expects will mitigate the EBITDA loss in 3Q15 of the Redcar
steel plant. Fitch's revised rating case forecasts EBITDA to rise
above GBP37 million over the next five years, only GBP4 million
short of the level reached prior to the closure of the steel
plant, creating greater headroom relative to the covenanted level
of the EBITDA debt service coverage ratio (DSCR). The projected
free cash flow (FCF) DSCR has improved to levels more consistent
with the ratings.

In Fitch views, the flexibility to raise tariffs and the
contribution of long-term leases mitigates THPA's exposure to
volatile cargo types and few customers.

The solid debt structure, typical of a UK WBS transaction,
together with a stable FCF DSCR averaging 1.4x, places the class
A notes' rating comfortably at 'BBB' relative to criteria. The
multiple notches difference between debt tranches reflects the
strong protective features at the expense of the junior notes.

The non-investment-grade ratings of the junior class B and C
notes reflect their deep contractual subordination and their low
average projected FCF DSCR under Fitch's rating case, at around
1.1x for the class B notes and 0.9x for the class C notes and the
absence of dedicated liquidity reserves.


Volume Risk - Midrange: Customer Concentration, Volatile Cargo
Tees and Hartlepool is a secondary port of call on a single site
exposed to customer and industry concentration. ConocoPhillips,
which exports oil and gas, accounted for 45% of THPA's 2016
volumes, exposing the business to the volatile oil market. Fitch
expects the lease agreements with MGT Teesside and Trafigura to
sustain volumes handled at the port, once operations start from
2020 and 2018, respectively.

The facility is well connected to the local market and the
inland, limiting the competitive exposure to other regional
facilities. However, Fitch views the hinterland as a marginal
growth driver. The Tees valley is a low-growth area focused on
the chemical and manufacturing industry, exposed to low cost
supplies from emerging countries and contraction in global

Price Risk - Midrange: Tariffs Flexibility, Long Leases
Tariffs are unregulated and follow UK RPI indirectly. Fitch
anticipates the portion of guaranteed revenue to grow slightly
thanks to the long-term lease contracted with MGT Teesside in
August 2016 and the 10-year lease agreement with Trafigura. Fitch
expects rental payments from 2018 onwards.

Infrastructure and Renewal Risk - Midrange: Flexible Plan,
External Contributions
The port is well maintained. Some refurbishments were completed
in 2016 to allow the processing of larger vessels. Capex is
funded internally through free cash, contributions from lessees,
unsecured debt and the equity sponsor.

Debt Structure - Stronger for Class A; Midrange for Class B and
C: Senior Class A Well Protected
All classes are fully amortising, with a strong security package
of fixed and floating charges typical for WBS with the
possibility of appointing an administrative receiver. There is no
interest rate risk. However, a borrower event of default could
lead the class A noteholders to enforce and accelerate at the
expense of the junior notes, in particular during a downturn or
stress event. The deep contractual subordination weighs on the
junior notes' ratings.

The agency notes the discrepancy between THPA's offering circular
and the legal documentation in which there is no liquidity
facility for the class B and C notes. Fitch's analysis is aligned
with the transaction documentation. In Fitch view, this does not
prejudice the ratings of the senior class A notes and the junior
class B and C notes because the junior debt service can be
deferred. Any deferral of junior debt service does not represent
a payment default until the final maturity of each respective
note. Amortisation of the junior notes is back-ended, starting
once the class A notes have been fully redeemed.

Stable Metrics, Headroom Relative to Covenant
The projected minimum of average or median FCF DSCR in Fitch's
rating case improved to 1.4x from 1.3x in the October 2016 review
for the class A notes, to 1.1x from 1.0x for the class B notes
and remained flat at 0.9x for the class C notes. Fitch break-even
analysis shows that the class A notes can sustain up to an annual
decline of 5.8% in EBITDA before reaching an average FCF DSCR of
1.0x and consequently drawing on liquidity. As a result, Fitch's
rating case projects higher headroom to the covenanted EBITDA


In comparison with ABP (A-/Negative), THPA's debt structure is
fully amortising in contrast to ABP's exposure to refinance risk
and higher leverage. However, ABP's revenue profile is
significantly more diversified in terms of locations and cargo
types and is more resilient to downturns as about 40% of its
revenue is either contractually fixed or subject to minimum


Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action:

- A substantial increase in the throughput or other positive
development of the business leading to a FCF DSCR consistently
above 1.6x at class A, 1.2x at class B and 1.0x at class C.

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action:

- EBITDA volatility reducing the headroom to the covenanted
level of EBITDA DSCR or triggering a covenant breach not cured by
the sponsor.

- A reduction in oil revenues or the loss of another major
customer adversely affecting the transaction's revenues and
leading to FCF DSCR forecasts under Fitch's rating case
consistently below 1.35x at class A, 1.0x at class B and 0.9x at
class C.

Performance Update
Management's control of the cost base and the realisation of a
few one-off transactions for around GBP2 million softened the
full year impact of the loss of Redcar's volume in 2016.
Consequently, EBITDA proved more resilient than Fitch expected
and the issuer performed above Fitch's 2016 base case. THPA's
2016 EBITDA reached GBP36 million, against Fitch's projected base
case EBITDA of GBP33 million, and a FCF DSCR at 1.0x, against a
projected FCF DSCR of 0.9x.

Fitch Cases
Fitch's rating case incorporates conservative FCF assumptions
factoring some low organic growth in both the port operations and
the conservancy business, the contribution of the long-term
leases contracted with MGT Teesside and Trafigura, conservative
maintenance capex projections of GBP7.5 million a year (indexed)
and pension deficit contributions of GBP2 million a year
increasing over time.

Asset Description
THPA is a securitisation of the assets held, and earnings
generated, by the PD Ports group, which owns and operates the
port of Tees and Hartlepool as the statutory harbour authority on
the northeast coast of England.


* Gibson Dunn Adds Five Lawyers in Paris to Launch New Practice
Gibson, Dunn & Crutcher LLP on June 8 disclosed that a five-
lawyer team will join the Paris office as partners to launch new
litigation and finance practices and reinforce the office's
existing restructuring and corporate capabilities.  The team,
formerly with Ashurst LLP in Paris, is comprised of Amanda Bevan,
Eric Bouffard, Bertrand Delaunay, Jean-Pierre Farges, and Pierre-
Emmanuel Fender.

"This year marks our 50th year in Paris.  We will celebrate by
taking a transformational step in the development of our Paris
office by adding strong litigation, arbitration, restructuring
and finance capabilities," said Ken Doran, Chairman and Managing
Partner of Gibson Dunn.  "Their practices provide many synergies
with our overall global platform -- they will establish a new
litigation practice in our Paris office that will complement our
European disputes practice and at the same time enhance the
firm's restructuring and transactional practices."

This team follows the recent addition in Paris of four technology
lawyers, anchored by partner Ahmed Baladi, formerly a partner
with Allen & Overy, and the recent establishment of a litigation
practice in the firm's Frankfurt office with the hire of Finn
Zeidler, a white collar partner from Latham & Watkins.

"This team has a stellar reputation in the Paris market," said
Bernard Grinspan, Chairman of the International Management
Committee and Partner in Charge of the Paris office.  "They have
a core foundation in complex litigation with extensive experience
in product liability and industrial disputes as well as
infrastructure, financial and restructuring disputes -- and also
developed a restructuring practice that uniquely offers an
integrated approach to clients, bringing together litigation,
corporate and debt capability to implement complex

"We are excited to join Gibson Dunn's platform and help continue
its growth globally, especially with building a disputes practice
in Paris," said Mr. Farges.  "Gibson Dunn's collegial culture
fits well with our close knit team, and we look forward to
working with our new colleagues."

                        About Amanda Bevan

Ms. Bevan focuses her domestic and cross-border finance practice
on debt restructuring and distressed lending for borrowers;
distressed investors; senior, second lien, unitranche or
mezzanine lenders; or other stakeholders as well as domestic and
cross-border structured finance, including LBO financing for
private equity sponsors or lenders.

She has practiced with Ashurst since 2003 and with Simmons &
Simmons LLP from 1998 to 2003.

She graduated from University of Paris I (Pantheon-Sorbonne), DEA
in private international law and international commercial law,
and received a Magistere (postgraduate degree) in private and
public economic law in 1997.

                       About Eric Bouffard

Mr. Bouffard's dispute resolution practice covers cross-border
litigation, commercial arbitration and international trade
disputes.  He is actively involved in restructuring and
insolvency disputes.  He is also experienced in disputes relating
to M&A, industrial risk, product liability, insurance and
commercial law, before both courts and arbitral tribunals.

Mr. Bouffard practiced since 2005 with Ashurst.  Prior, he
practiced in the Paris offices of Holman Fenwick & Willan, Clyde
& Co., and RBM2L.  He is a member of the Association Franáaise
d'Arbitrage (AFA), International Council for Commercial
Arbitration (ICCA), and Association Franáaise de Droit Maritime

Mr. Bouffard graduated in 1995 from University of Paris II
(Pantheon-Assas), and in 1993, he received a DESS (postgraduate
degree) in litigation and arbitration.

                     About Bertrand Delaunay

Mr. Delaunay focuses his practice on private M&A and private
equity transactions, including leveraged buyouts and joint
ventures.  He also advises strategic clients, private equity
firms and banks on other corporate matters, including the
corporate aspects of real estate, energy, infrastructure and
restructuring transactions.

He practiced with Ashurst since 1998, where he served as Managing
Partner of the Paris office from 2010 to 2012.  Prior, he
practiced with McLoughlin & Associes in 1997 and Linklaters from
1994 to 1997.

He graduated in 1993 from University of Paris I (Pantheon-
Sorbonne), with a DEA (postgraduate degree) in business law; in
1992 from Queen Mary and Westfield College, University of London,
with a LLM; and in 1991 from University of Paris II (Pantheon-
Assas), with a Maitrise in business law.

                    About Jean-Pierre Farges

Mr. Farges practices dispute resolution, including litigation and
arbitration in commercial and equity capital, banking, finance,
industrial risk, construction, international trade, insurance,
insolvency, and public and administrative law disputes.  In
addition to his dispute resolution practice, he also regularly
advises companies on prevention proceedings and advises lenders
of all types, including credit institutions and CLOs.  He has
particular experience in the restructuring of companies in
leveraged buyout (LBO) deals.

He joined Ashurst at the end of 2001 to create a disputes
resolutions practice in Paris.  He became partner at Ashurst in
2004, when he also founded the restructuring practice in Paris.
Prior, he trained as avocat a la Cour de Cassation et au Conseil
d'Etat (lawyer in front of the Supreme Court) and worked for
various avocats aux Conseils.

He graduated in 1994 from University of Paris I (Pantheon-
Sorbonne), with a Doctorate in private international law and
arbitration; with a Magistere (postgraduate degree) in private
and public economic law; and with a DESS (postgraduate degree) in
business and tax law.  He was a winner of the Mooting Competition
for Lawyers of the French Supreme Administrative Court and
Supreme Appeals Court -- Secretaire de la conference des avocats
a la Cour de Cassation et au Conseil d'Etat.

                   About Pierre-Emmanuel Fender

Mr. Fender focuses on disputes resolutions, including litigation
and commercial arbitration.  He also has significant experience
in complex cross-border restructurings and French pre-insolvency
and insolvency matters.  He regularly advises investors on the
acquisition of defaulting companies, funds and distressed
companies undergoing insolvency proceedings and creditors for the
recovery of their receivables and protection of their securities.

Mr. Fender has practiced with Ashurst since 2002.  Prior, he
practiced with Landwell & Associes, Arthur Andersen
International, and HSD Ernst & Young.

He graduated in 2002 from University of Strasbourg III Robert
Schumann, with a DESS (postgraduate degree) in business law; and
in 2000 with a DJCE Magistere (postgraduate degree) in Franco-
German business law; and with a Maitrise (LLM) in business law.

                         About Gibson Dunn

Gibson, Dunn & Crutcher LLP -- is an
international law firm.  Consistently ranking among the world's
top law firms in industry surveys and major publications, Gibson
Dunn is distinctively positioned in today's global marketplace
with more than 1,200 lawyers and 20 offices, including Beijing,
Brussels, Century City, Dallas, Denver, Dubai, Frankfurt,
Hong Kong, Houston, London, Los Angeles, Munich, New York, Orange
County, Palo Alto, Paris, San Francisco, Sao Paulo, Singapore,
and Washington, D.C.

Authors: Teresa A. Sullivan, Elizabeth Warren,
& Jay Westbrook
Publisher: Beard Books
Softcover: 370 Pages
List Price: $34.95
Review by: Susan Pannell
Order your personal copy today at
So you think you know the profile of the average consumer
debtor: either deadbeat slouched on a sagging sofa with a
threeday growth on his chin or a crafty lower-middle class type
opting for bankruptcy to avoid both poverty and responsible debt

Except that it might be a single or divorced female who's the
one most likely to file for personal bankruptcy protection, and
her petition might be the last stage of a continuum of crises
that began with her job loss or divorce. Moreover, the dilemma
might be attributable in part to consumer credit industry that
has increased its profitability by relaxing its standards and
extending credit to almost anyone who can scribble his or her
name on an application.

Such are among the unexpected findings in this painstaking study
of 2,400 bankruptcy filings in Illinois, Pennsylvania, and Texas
during the seven-year period from 1981 to 1987. Rather than
relying on case counts or gross data collected for a court's
administrative records, as has been done elsewhere, the authors
use data contained in the actual petitions. In so doing, they
offer a unique window into debtors' lives.

The authors conclude that people who file for bankruptcy are, as
a rule, neither impoverished families nor wily manipulators of
the system. Instead, debtors are a cross-section of America. If
one demographic segment can be isolated as particularly
debtprone, it would be women householders, whom the authors found
often live on the edge of financial disaster. Very few debtors
(3.7 percent in the study) were repeat filers who might be
viewed as abusing the system, and most (70 percent in the study)
of Chapter 13 cases fail and become Chapter 7s. Accordingly, the
authors conclude that the economic model of behavior -- which
assumes a petitioner is a "calculating maximizer" in his in his
decision to seek bankruptcy protection and his selection of
chapter to file under, a profile routinely used to justify
changes in the law -- is at variance with the actual debtor
profile derived from this study.

A few stereotypes about debtors are, however, borne out. It is
less than surprising to learn, for example, that most debtors
are simply not as well-off as the average American or that while
bankrupt's mortgage debts are about average, their consumer
debts are off the charts. Petitioners seem particularly
susceptible to the siren song of credit card companies. In the
study sample, creditors were found to have made between 27
percent and 36 percent of their loans to debtors with incomes
below $12,500 (although the loans might have been made before
the debtors' income dropped so low). Of course, the vigor with
which consumer credit lenders pursue their goal of maximizing
profits has a corresponding impact on the number of bankruptcy

The book won the ABA's 1990 Silver Gavel Award. A special 1999
update by the authors is included exclusively in the Beard Book
reprint edition.


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

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

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


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

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

                 * * * End of Transmission * * *