TCREUR_Public/170830.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Wednesday, August 30, 2017, Vol. 18, No. 172


                            Headlines


G E R M A N Y

AIR BERLIN: Bidders Have Until September 15 to Submit Offers
AIR BERLIN: Lufthansa Aims to Snap Up 17 Long-Haul Aircraft
AIR BERLIN: Germania Seeks to Block German Gov't Bridge Loan
ALNO AG: Board Applies for Annulment of Self-Administration
RHEINMETALL AG: Moody's Alters Outlook to Pos. & Affirms Ba1 CFR


G R E E C E

FREESEAS INC: Narrows Net Loss to $20.5 Million in 2016


I R E L A N D

ONE HORIZON: Receives Non-compliance Notice from NASDAQ


I T A L Y

CASAFORTE SRL: Fitch Raises Ratings on Two Note Classes to 'Bsf'
MONTE DEI PASCHI: Italy Faces More Than 30% Paper Loss on Rescue


K A Z A K H S T A N

NOMAD LIFE: A.M. Best Assigns 'B-(fair)' Fin. Strength Rating
SALEM INSURANCE: A.M. Best Cuts Fin. Strength Rating to C(Weak)


R U S S I A

MK-HOLDING LLC: S&P Withdraws B-/B CCR on Lack of Information


T A J I K I S T A N

TAJIKISTAN: Moody's Assigns B3 Issuer Rating, Outlook Stable
TAJIKISTAN: S&P Assigns 'B-/B' Sovereign Credit Ratings


U N I T E D   K I N G D O M

SEADRILL LTD: Investors Likely to Receive No Recovery for Shares


                            *********



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AIR BERLIN: Bidders Have Until September 15 to Submit Offers
------------------------------------------------------------
Ilona Wissenbach at Reuters reports that bidders for assets of
insolvent German airline Air Berlin plc have until Sept. 15 to
submit their offer.

"Air Berlin will complete the investor process quickly," Reuters
quotes a spokesman for Air Berlin as saying in an e-mailed
statement on Aug. 29.

People familiar with the matter had told Reuters on Aug. 28 that
the buyers of Air Berlin's assets would likely be picked by mid-
September, as the race for the carrier's coveted take-off and
landing slots in Germany heats up.

According to Reuters, sources familiar with the negotiations have
said Lufthansa, Thomas Cook's Condor, easyJet and Ryanair are
among airlines interested in the carrier's business or parts of
it.

                        About Air Berlin

In operation since 1978, Air Berlin PLC & Co. Luftverkehrs KG is
a global airline carrier that is headquartered in Germany and is
the second largest airline in the country.

In 2016, Air Berlin operated 139 aircraft with flights to
destinations in Germany, Europe, and outside Europe, including
the United States, and provided passenger service to 28.9 million
passengers.  Within the first seven months of 2017, the Debtor
carried approximately 13.8 million passengers.  It employs
approximately 8,481 employees.  Air Berlin is a member of the
Oneworld alliance, participating with other member airlines in
issuing tickets, code-share flights, mileage programs, and other
similar services.

Air Berlin has racked up losses of about EUR2 billion over the
past six years, and has net debt of EUR1.2 billion.

On Aug. 15, 2017, Air Berlin applied to the Local District Court
of Berlin-Charlottenburg, Insolvency Court for commencement of an
insolvency proceeding.  On the same day, the German Court opened
preliminary insolvency proceedings permitting the Debtor to
proceed as a debtor-in-possession, appointed a preliminary
custodian to oversee the Debtor during the preliminary insolvency
proceedings, and prohibited any new, and stayed any pending,
enforcement actions against the Debtor's movable assets.

To seek recognition of the German proceedings, representatives of
Air Berlin filed a Chapter 15 petition (Bankr. S.D.N.Y. Case No.
17-12282) on Aug. 18, 2017.  The Hon. Michael E. Wiles is the
case judge.  Thomas Winkelmann and Frank Kebekus, as foreign
representatives, signed the petition.  Madlyn Gleich Primoff,
Esq., at Freshfields Bruckhaus Deringer US LLP, is serving as
counsel in the U.S. case.


AIR BERLIN: Lufthansa Aims to Snap Up 17 Long-Haul Aircraft
-----------------------------------------------------------
Ilona Wissenbach, Peter Maushagen, and Alexandra Schwarz-Goerlich
at Reuters report that German airline Lufthansa aims to take on
around a dozen of Air Berlin's 17 long-haul aircraft and their
transatlantic routes in a carve-up of the insolvent carrier.

At least half a dozen bidders for Air Berlin's assets are now
racing to submit offers by a mid-September deadline, with around
140 leased aircraft and valuable take-off and landing slots in
Germany up for grabs, Reuters notes.

According to Reuters, a person familiar with the matter on
Aug. 29 said Lufthansa, which currently does not offer long-haul
flights from Berlin, is especially interested in the carrier's
routes to U.S. cities including New York.

Lufthansa, which has the German government's backing to take over
major parts of Air Berlin, could acquire as many as 90 of its
planes, including 38 aircraft it is already leasing from the
airline and its leisure unit Niki, another source told Reuters
this month.

Such a deal, seen valued in the low hundreds of millions of
euros, could see up to 3,000 of Air Berlin's workers move to
Lufthansa, Reuters relays, citing the person familiar with the
matter as saying on Aug. 29.

                        About Air Berlin

In operation since 1978, Air Berlin PLC & Co. Luftverkehrs KG is
a global airline carrier that is headquartered in Germany and is
the second largest airline in the country.

In 2016, Air Berlin operated 139 aircraft with flights to
destinations in Germany, Europe, and outside Europe, including
the United States, and provided passenger service to 28.9 million
passengers.  Within the first seven months of 2017, the Debtor
carried approximately 13.8 million passengers.  It employs
approximately 8,481 employees.  Air Berlin is a member of the
Oneworld alliance, participating with other member airlines in
issuing tickets, code-share flights, mileage programs, and other
similar services.

Air Berlin has racked up losses of about EUR2 billion over the
past six years, and has net debt of EUR1.2 billion.

On Aug. 15, 2017, Air Berlin applied to the Local District Court
of Berlin-Charlottenburg, Insolvency Court for commencement of an
insolvency proceeding.  On the same day, the German Court opened
preliminary insolvency proceedings permitting the Debtor to
proceed as a debtor-in-possession, appointed a preliminary
custodian to oversee the Debtor during the preliminary insolvency
proceedings, and prohibited any new, and stayed any pending,
enforcement actions against the Debtor's movable assets.

To seek recognition of the German proceedings, representatives of
Air Berlin filed a Chapter 15 petition (Bankr. S.D.N.Y. Case No.
17-12282) on Aug. 18, 2017.  The Hon. Michael E. Wiles is the
case judge.  Thomas Winkelmann and Frank Kebekus, as foreign
representatives, signed the petition.  Madlyn Gleich Primoff,
Esq., at Freshfields Bruckhaus Deringer US LLP, is serving as
counsel in the U.S. case.


AIR BERLIN: Germania Seeks to Block German Gov't Bridge Loan
------------------------------------------------------------
Maria Sheahan at Reuters reports that the Berlin court said on
Aug. 29 German airline Germania has asked a court to block the
German government from providing Air Berlin with a EUR150 million
(US$180.5 million) bridge loan before the European Commission has
given its approval.

According to Reuters, the regional court said in a statement it
would hold a hearing on the matter on Sept. 15.

                        About Air Berlin

In operation since 1978, Air Berlin PLC & Co. Luftverkehrs KG is
a global airline carrier that is headquartered in Germany and is
the second largest airline in the country.

In 2016, Air Berlin operated 139 aircraft with flights to
destinations in Germany, Europe, and outside Europe, including
the United States, and provided passenger service to 28.9 million
passengers.  Within the first seven months of 2017, the Debtor
carried approximately 13.8 million passengers.  It employs
approximately 8,481 employees.  Air Berlin is a member of the
Oneworld alliance, participating with other member airlines in
issuing tickets, code-share flights, mileage programs, and other
similar services.

Air Berlin has racked up losses of about EUR2 billion over the
past six years, and has net debt of EUR1.2 billion.

On Aug. 15, 2017, Air Berlin applied to the Local District Court
of Berlin-Charlottenburg, Insolvency Court for commencement of an
insolvency proceeding.  On the same day, the German Court opened
preliminary insolvency proceedings permitting the Debtor to
proceed as a debtor-in-possession, appointed a preliminary
custodian to oversee the Debtor during the preliminary insolvency
proceedings, and prohibited any new, and stayed any pending,
enforcement actions against the Debtor's movable assets.

To seek recognition of the German proceedings, representatives of
Air Berlin filed a Chapter 15 petition (Bankr. S.D.N.Y. Case No.
17-12282) on Aug. 18, 2017.  The Hon. Michael E. Wiles is the
case judge.  Thomas Winkelmann and Frank Kebekus, as foreign
representatives, signed the petition.  Madlyn Gleich Primoff,
Esq., at Freshfields Bruckhaus Deringer US LLP, is serving as
counsel in the U.S. case.


ALNO AG: Board Applies for Annulment of Self-Administration
-----------------------------------------------------------
Reuters reports that the Board of Managing Directors of Alno AG
applied for annulment of self-administration.

The board will appoint Martin Hoermann as preliminary insolvency
administrator of the company, Reuters discloses.

According to Reuters, reorganization by way of "asset deal" has
become more likely.

                       About the ALNO Group

The ALNO Group is a Germany-based kitchen manufacturer.  ALNO
produces a full range of kitchens for the German and
international market at four international production
facilities employing a total of around 1,900 members of staff.
Working with over 6,000 sales partners, the ALNO Group operates
in more than 64 countries around the world.  In the financial
year 2015, the company generated sales in the amount of EUR522
million.


RHEINMETALL AG: Moody's Alters Outlook to Pos. & Affirms Ba1 CFR
----------------------------------------------------------------
Moody's Investors Service has changed the outlook on Rheinmetall
AG's (Rheinmetall) Ba1 Corporate Family Rating, Ba1-PD
Profitability of Default Rating, Not Prime Short-Term issuer
rating and commercial paper rating, and the Ba1 senior unsecured
instrument rating to positive from stable. At the same time,
Moody's has affirmed these ratings.

"The positive outlook reflects Moody's views that Rheinmetall's
earnings will continue to improve on the back of a further
strengthening in the performance of its automotive division and
an ongoing recovery in defence. Moody's expects Rheinmetall's
improvement in earnings to be sustainable and expect this will
support credit metrics more in line with an investment grade
rating" says Jeanine Arnold, a Moody's Vice President - Senior
Credit Officer and lead analyst for Rheinmetall.

RATINGS RATIONALE

Moody's rating action follows Rheinmetall's conservative
management of its balance sheet over the past few years and
expectations that continued earning improvements will allow key
credit metrics to further strengthen over the next 12-18 months.
Moody's forecasts that Rheinmetall's reported EBIT will exceed
EUR410 million in 2018 (2016: EUR353 million) and projects that
this will allow free cash flow/debt to reach around 5% and
debt/EBITDA to fall to around 3x.

Moody's rating action also reflects Moody's expectations that
this earnings improvement will be sustainable because of measures
taken to improve the company's operating business model and cost
structure. Moody's does not expect Rheinmetall to be immune to
future cyclicality, but the company's more robust operating model
should limit material swings in profitability and future credit
metric volatility.

Both Rheinmetall's divisions -- automotive and defence -- have
been exposed to cyclicality, which have materially and negatively
affected credit metrics in the past.

Rheinmetall's more robust operating business model is evidenced
by the steady strengthening in the EBIT margins of both
businesses. The reported EBIT margin in the company's automotive
division now exceed the company's long-term target of 8% (from -
12% in 2009 and 6.5% in 2011) due to the company's focus on
higher value products in its Mechatronics division and the right-
sizing of capacity. There has also been a strengthening in the
company's defence division following the company's overhaul of
its contract negotiation and execution practices. Compared with
the negative margins of 3% generated back in 2014, defence
margins are now approaching 5%.

Furthermore, the company has proven over the last few years that
it is committed to the generation of free cash flow and has
undertaken measures such as dividend cuts and equity raises to
support its balance sheet. Moody's expects Rheinmetall will
continue to conservatively manage its balance sheet in the event
future credit metrics come under pressure.

However, while earnings visibility through 2017 is good, Moody's
believes it is important to have greater certainty with regards
to 2018 and 2019 earnings before considering further positive
rating action. Q2 2017 appeared to show some slowdown in global
light vehicle production, and if this continues through 2018,
this could negatively affect Rheinmetall's automotive earnings.
Moody's would expect some margin dilution as a result of reduced
fixed cost absorption, but would expect growth to remain
supported by the company's ability to expand revenues in excess
of global LV production and for margins to still benefit from the
company's focus on higher value products. Compared with industry
peers Rheinmetall also has significant exposure to the production
of gasoline and especially diesel combustion engines. Moody's
does not expect Rheinmetall to be materially affected by this
exposure in the short-term, but 2018 will prove insightful as the
share of Alternative Fuel Vehicles (AFVs) begins to ramp up as a
proportion of the global auto market.

In defence, Moody's expects that higher military spending will
support revenue growth but Rheinmetall's earnings stability is
highly dependent on further margin improvement over the next few
years. The key driver will be stronger margins in vehicle
systems, which comprises 25% of turnover and around 50% of
Rheinmetall's order backlog as at H1 2017. Given the significant
de-risking of some of its larger vehicle system contracts, there
should be further scope to improve margins over the next 12-18
months, but as at the 12-month period to H1 2017 the reported
EBIT margins of the vehicle system division were still low at
3.2%.

RATIONALE FOR POSITIVE OUTLOOK

The positive outlook reflects Rheinmetall's stronger operating
performance and improving cash flow generation. Moody's expects
that combined with the company's disciplined conservative
financial policy, this should allow key credit metrics to
strengthen further over the next 12-18 months. Moody's also
expects Rheinmetall will maintain a god liquidity profile.

Moody's recognizes some risks associated with the transition
towards electric vehicles, including the potential for this to
require more R&D spending. This could have a negative effect on
the company's operating model and business profile, but Moody's
expects the risks to be over the longer-term, which provides
Rheinmetall with some time to adapt its product portfolio.

WHAT COULD CHANGE THE RATING UP/DOWN

Moody's could upgrade Rheinmetall if Debt/EBITDA trends towards
3.0x, RCF/net is greater than 25% and FCF/Debt is greater than 5%
on a sustainable basis. Rheinmetall tends to maintain a degree of
excess cash on balance sheet, therefore, Moody's would always
consider gross leverage metrics in the context of Rheinmetall's
high cash balances.

Moody's could downgrade Rheinmetall if Debt /EBITDA exceeds 4.0x,
RCF/net debt falls below 15% as a result of a weaker operating
performance and/or material debt-funded acquisitions.

The principal methodology used in these ratings was Global
Automotive Supplier Industry published in June 2016.



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FREESEAS INC: Narrows Net Loss to $20.5 Million in 2016
-------------------------------------------------------
Freeseas, Inc., filed with the Securities and Exchange Commission
its annual report on Form 20-F reporting a net loss of US$20.51
million on US$506,000 of operating revenues for the year ended
Dec. 31, 2016, compared to a net loss of US$52.94 million on
US$2.30 million of operating revenues for the year ended Dec. 31,
2015.

As of Dec. 31, 2016, Freeseas had US$2.93 million in total
assets, US$36.52 million in total liabilities and a total
shareholders' deficit of US$33.59 million.

Fruci & Associates II, PLLC, in Spokane, Washington, issued a
"going concern" opinion on the consolidated financial statements
for the year ended Dec. 31, 2016, noting that the Company has
been unable to obtain ongoing sources of revenue sufficient to
cover cost of operations and scheduled debt repayments.
Additionally, the Company has not made scheduled payments and is
in violation of debt covenants associated with its bank loan, and
per the loan agreement, this violation may result in acceleration
of outstanding indebtedness, which would require the Company to
obtain significant additional financing in order to meet
obligations under the loan agreement.  These factors raise
substantial doubt about its ability to continue as a going
concern.

A full-text copy of the Form 20-F is available for free at:

                    https://is.gd/X27BAU

                     About FreeSeas Inc.

Headquartered in Athens, Greece, FreeSeas Inc., formerly known as
Adventure Holdings S.A. --  http://www.freeseas.gr/-- was
incorporated in the Marshall Islands on April 23, 2004, for the
purpose of being the ultimate holding company of ship-owning
companies.  The management of FreeSeas' vessels is performed by
Free Bulkers S.A., a Marshall Islands company that is controlled
by Ion G. Varouxakis, the Company's Chairman, President and CEO,
and one of the Company's principal shareholders.

The Company's fleet consists of six Handysize vessels and one
Handymax vessel that carry a variety of drybulk commodities,
including iron ore, grain and coal, which are referred to as
"major bulks," as well as bauxite, phosphate, fertilizers, steel
products, cement, sugar and rice, or "minor bulks."  As of Oct.
12, 2012, the aggregate dwt of the Company's operational fleet is
approximately 197,200 dwt and the average age of its fleet is 15
years.



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ONE HORIZON: Receives Non-compliance Notice from NASDAQ
-------------------------------------------------------
One Horizon Group, Inc., received on Aug. 22, 2017, a written
notification from Nasdaq Listing Qualifications notifying the
Company that it failed to comply with Nasdaq's Marketplace Rule
5550(b)(1) because the Company's stockholders' equity as of June
30, 2017, fell below the required minimum of $2,500,000 and as of
Aug. 21, 2017, the Company does not meet the alternative
compliance standards of market value of listed securities or net
income from continuing operations for continued listing.

In accordance with Nasdaq's listing requirements, the Company has
until Oct. 6, 2017, 45 calendar days from the date of the
notification, to submit a plan to regain compliance.  If the plan
is accepted, Nasdaq can grant the Company an extension of up to
180 calendar days from the date it received the notification to
evidence compliance.

The Company intends to promptly evaluate various courses of
action to regain compliance and to timely submit a plan to Nasdaq
to regain compliance with the Nasdaq minimum stockholders' equity
standard.  However, there can be no assurance that the Company's
plan will be accepted or that if it is, the Company will be able
to regain compliance.

                      About One Horizon

Ireland-based One Horizon Group, Inc., is the inventor of the
patented SmartPacketTM Voice over Internet Protocol ("VoIP")
platform.  The software is designed to capitalize on numerous
industry trends, including the rapid adoption of smartphones, the
adoption of cloud based Internet services, the migration towards
all IP voice networks and the expansion of enterprise bring-your-
own- device to work programs.  The Company designs, develops and
sells white label SmartPacketTM VoIP software and services to
large Tier-1 telecommunications operators.

One Horizon reported a net loss of $5.54 million on $1.61 million
of revenue for the year ended Dec. 31, 2016, compared to a net
loss of $6.30 million on $1.53 million of revenue for the year
ended in 2015.

As of June 30, 2017, One Horizon had $8.83 million in total
assets, $7.20 million in total liabilities and $1.63 million in
total stockholders' equity.

The Company's independent accountants Cherry Bekaert LLP, in
Tampa, Fla., issued a "going concern" opinion in its report on
the Company's consolidated financial statements for the year
ended Dec. 31, 2016, stating that the Company has recurring
losses and negative cash flows from operations that raise
substantial doubt about its ability to continue as a going
concern.



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CASAFORTE SRL: Fitch Raises Ratings on Two Note Classes to 'Bsf'
----------------------------------------------------------------
Fitch Ratings has upgraded Casaforte S.r.l.'s class A and B notes
due 2040 as follows:

  EUR1,011.2 million class A upgraded to 'Bsf' from 'B-sf'; off
  Rating Watch Evolving (RWE); Outlook Stable

  EUR157.3 million class B upgraded to 'Bsf' from 'B-sf'; off
  RWE; Outlook Stable

The transaction is a securitisation of rental income derived from
the leasing of 683 bank branches and offices in Italy. The real
estate assets are let to Banca Monte dei Paschi di Siena (MPS;
B/Stable) and its subsidiaries until July 2033.

KEY RATING DRIVERS

The upgrade follows a recent similar rating action on MPS, to
which the notes are credit-linked. MPS was upgraded to 'B'/Stable
from' B-'/RWE on 11 August 2017.

RATING SENSITIVITIES

Rating actions on MPS will result in a corresponding action on
the notes.


MONTE DEI PASCHI: Italy Faces More Than 30% Paper Loss on Rescue
----------------------------------------------------------------
Massimo Gaia at Reuters reports that the Italian government faces
a paper loss of more than 30% on its EUR3.85 billion (US$4.54
billion) rescue of troubled lender Monte dei Paschi di Siena,
according to grey-market trading in the bank's new shares.

The world's oldest lender has not formally traded on the Milan
bourse since December when the bank failed to raise enough
capital to remove the threat of collapse, Reuters discloses.  In
July, Rome bailed it out, paying EUR6.49 per share for a
controlling stake, Reuters recounts.

According to Reuters, traders and fund managers said on Aug. 24
that Monte dei Paschi's shares were fetching between EUR4.14 and
EUR4.35 in the grey market, where shareholders can sell them
over-the-counter ahead of the resumption of trade on the
exchange.

Italy's fourth-largest lender has not set a date for lifting the
trade suspension, but says it will be in the autumn, Reuters
notes.

According to Reuters, a price of EUR4.14 would represent a paper
loss of about EUR1.39 billion for Rome on the first phase of its
bailout.  It has pledged to later buy out retail holders of bank
bonds for EUR1.5 billion, taking its stake to as much as 70%,
Reuters relays.

The government, though, has said it plans to hold its shares with
a long-term aim of making a profit on its investment, Reuters
relates.

However, some institutional investors are already looking to sell
their stock on the grey market, hedging against the risk that its
value could sink even further ahead of resumed trade, Reuters
states.

In the rescue, institutional investors who held subordinated
bonds in Monte dei Paschi were forced to take losses, Reuters
says.  Their holdings were cancelled and instead they received
shares, according to Reuters.

The grey-market share price is also supported by the credit
default swap market, Reuters relays, citing traders of default
swaps.

Banca Monte dei Paschi di Siena SpA -- http://www.mps.it/-- is
an Italy-based company engaged in the banking sector.  It
provides traditional banking services, asset management and
private banking, including life insurance, pension funds and
investment trusts.  In addition, it offers investment banking,
including project finance, merchant banking and financial
advisory services.  The Company comprises more than 3,000
branches, and a structure of channels of distribution.  Banca
Monte dei Paschi di Siena Group has subsidiaries located
throughout Italy, Europe, America, Asia and North Africa.  It has
numerous subsidiaries, including Mps Sim SpA, MPS Capital
Services Banca per le Imprese SpA, MPS Banca Personale SpA, Banca
Toscana SpA, Monte Paschi Ireland Ltd. and Banca MP Belgio SpA.



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NOMAD LIFE: A.M. Best Assigns 'B-(fair)' Fin. Strength Rating
-------------------------------------------------------------
A.M. Best has assigned the Financial Strength Rating of B- (Fair)
and the Long-Term Issuer Credit Rating of "bb-" to Nomad Life
Insurance Company JSC (Nomad Life) (Kazakhstan). The outlook
assigned to these Credit Ratings (ratings) is stable. Nomad Life
is a wholly owned subsidiary of Nomad Insurance Group Limited, a
non-operating holding company also domiciled in Kazakhstan.

The ratings of Nomad Life reflect its adequate risk-adjusted
capitalisation, volatile operating performance and established
business profile in the local life insurance market. The ratings
also consider Nomad Life's limited diversification and the high
country risk of Kazakhstan.

Nomad Life's risk-adjusted capitalisation is constrained by its
relatively high net underwriting leverage, stemming mainly from
its significant reserve provisions, as well as a track record of
onerous dividend payments. Furthermore, the company's asset base
is exposed to the high financial system risk in Kazakhstan.

Nomad Life's operating performance has been positive, albeit
volatile in recent years, as demonstrated by its weighted average
return on equity of 71.3%, which ranged from 13.4% to 158.1%
between 2012 and 2016. The company benefits from good investment
income reflective of the high interest and inflation rate
environment in Kazakhstan.

Nomad Life's exposure to the compulsory workers' compensation
segment is a negative rating factor due to the potential for
large and long tail losses. This concern is exacerbated following
the discontinuation of its treaty reinsurance protection in 2016,
which has increased the company's net exposure to workers'
compensation risks. In the first half of 2017, almost a half of
Nomad Life's portfolio was derived from this segment.

Nomad Life has an established business profile in Kazakhstan,
with a 23% share of the local life market, measured by gross
written premiums in the first half of 2017. Nonetheless, in A.M.
Best's opinion, Nomad Life's relatively small size (by
international standards) leaves the company susceptible to sudden
changes in its operating or regulatory environment, which are
typical for the Kazakh insurance market.


SALEM INSURANCE: A.M. Best Cuts Fin. Strength Rating to C(Weak)
---------------------------------------------------------------
A.M. Best, on August 18, 2017, downgraded the Financial Strength
Rating to C (Weak) from C+ (Marginal) and the Long-Term Issuer
Credit Rating to "ccc+" from "b-" of JSC Salem Insurance Company
(Salem) (Kazakhstan). Concurrently, A.M. Best has placed these
Credit Ratings (ratings) under review with negative implications.

Previously, in mid-June 2017, A.M. Best has downgraded the
Financial Strength Rating to C+ (Marginal) from C++ (Marginal)
and the Long-Term Issuer Credit Rating to "b-" from "b" of JSC
Salem Insurance. Concurrently, A.M. Best revised the outlooks for
these Credit Ratings (ratings) to negative from stable.  The
downgrades reflect the deterioration of Salem's risk-adjusted
capitalisation at year-end 2016 to a level outside of A.M. Best's
expectations. This decline follows rapid premium growth in 2016
combined with further erosion of capital, despite a capital
injection from company shareholders during the year. In 2016, the
company grew its gross and net written premiums by 74% and 30%,
respectively. Capital and surplus declined to KZT 2.1 billion,
reflecting retained losses of KZT 1.4 billion, partly offset by
the capital injection of KZT 240 million in 2016.

The August 18, 2017 rating downgrades follow the suspension by
the National Bank of Kazakhstan (NBK) of Salem's voluntary
insurance licence for three months from August 4, 2017. The
company has breached a number of regulatory requirements during
2017, including the solvency margin prescribed by the NBK. The
action taken by the national regulator has highlighted
inadequacies in the company's risk management practices,
particularly in respect of operational and regulatory risks, and
is likely to negatively affect Salem's profile in Kazakhstan's
competitive insurance market.

The ratings have been placed under review with negative
implications, as A.M. Best needs to assess the implications of
the regulatory action on the company's profile and its ability to
continue to write insurance business in Kazakhstan. Additional
regulatory action, for example full suspension or withdrawal of
the company's insurance licence, or deterioration in Salem's
risk-adjusted capitalisation, likely will result in further
negative rating actions.



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MK-HOLDING LLC: S&P Withdraws B-/B CCR on Lack of Information
-------------------------------------------------------------
S&P Global Ratings today withdrew its 'B-/B' long- and short-term
corporate credit ratings on Russian flour and baked goods
producer LLC MK-Holding (Stoylenskaya Niva), since the company
decided to stop the audit of its annual IFRS financial
statements. S&P is unable to continue surveillance of the rating,
due to lack of sufficient information.



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TAJIKISTAN: Moody's Assigns B3 Issuer Rating, Outlook Stable
------------------------------------------------------------
Moody's Investors Service has assigned first-time local and
foreign-currency issuer ratings of B3 to the Government of
Tajikistan. The rating outlook is stable.

The rating and outlook reflect Tajikistan's robust medium-term
economic growth prospects, which are supported by hydropower
generation, notwithstanding inherent project risks attached to
the construction and operation of the Rogun HPP project.

The rating also incorporates the credit challenges posed by
institutions that are weak on a global scale, although progress
on financial reforms and macroeconomic stability indicate some
improvements. In addition, external vulnerability risks are
significant as a result of low, albeit rising, foreign reserves
relative to external debt. The government's fiscal position is
characterised by a moderately high and rising government debt
burden with limited funding sources and outstanding contingent
liability risks posed by the weak banking sector.

Moody's has also assigned a B1 ceiling for local-currency bonds
and deposits, a B3 ceiling for foreign-currency bonds and a Caa1
ceiling for foreign-currency deposits. In addition, the short-
term foreign-currency bond and deposit ceilings are "Not Prime.''

These ceilings act as a cap on the ratings that can be assigned
to the obligations of other entities domiciled in the country.

RATINGS RATIONALE

RATIONALE FOR B3 RATING

ROBUST MEDIUM-TERM GROWTH PROSPECTS SUPPORTED BY HYDROPOWER
GENERATION NOTWITHSTANDING PROJECT RISKS

Tajikistan has enjoyed robust real GDP growth of around 7% per
annum on average in the past five years. However, very low per
capita income levels and limited sectoral diversification raise
the sovereign's susceptibility to economic and financial shocks.
GDP growth is reliant on agriculture and aluminium exports, and
remittances from Tajiks working in foreign countries, which drive
domestic private consumption.

In this context, the construction of the Rogun HPP project, a
hydropower project, is supporting GDP growth and has the
potential to significantly boost income levels. The government's
National Development Strategy 2030, which aims to boost GDP
growth and support diversification into manufacturing, is tied to
enhancing energy supply.

A shortage of domestic power, particularly during the winter
months, has been a constraint on the economy's productive
capacity. Once the first phase of the project is completed in
2018, the existing and planned transmission line system will
allow early generation production to serve both regional and
domestic markets.

The increase in electricity supply would support industry,
investment and exports. Tajikistan's access to markets in the
Kyrgyz Republic (B2 stable), Turkmenistan (unrated) and
Afghanistan (unrated) and strong demand from South Asia including
through existing power purchase agreements with Pakistan (B3
stable) bolster prospects for exports of power.

Risks to the project include delays to the timeline of
construction, financing of equipment costs, political risks and
weather-related risks. Should these risks crystallise, they could
delay or diminish the economic benefits from the project, while
also raising the fiscal costs associated with it.

WEAK INSTITUTIONS ALTHOUGH ONGOING REFORMS AND MACROECONOMIC
POLICY RESPONSES POINT TO SOME STRENGTHENING

Tajikistan's institutions are weak relative to other sovereigns,
as reflected in very low rankings on government effectiveness,
rule of law, and control of corruption in the Worldwide
Governance Indicators.

Nonetheless, the National Development Strategy 2030 focuses in
part on strengthening the country's institutions. Already the
National Bank of Tajikistan (NBT), the central bank, and the
government have taken several measures to improve the operating
environment, suggesting some strengthening of the institutional
framework.

The measures include new laws to give the central bank greater
supervisory power, the requirement that banks be more
transparent, the appointment of temporary NBT management to
troubled banks to strengthen governance and the conduct of asset
quality reviews to evaluate potential financial risks.

Despite the severe stress in the banking system, the government
and central bank have maintained relative economic stability. The
economy continues to grow strongly and poverty rates are falling.
Tighter monetary policy, including foreign exchange controls --
such as the requirement to convert ruble-denominated remittances
into local currency -- are working to support exchange rate
stability. These measures are also helping to de-dollarise the
economy, reducing the share of deposits in foreign currency from
around 70% in 2015 to around 60% at end-2016.

Tajikistan has a track record of volatile inflation. But more
recently, the NBT's increases in interest rates, reserve
requirements and sterilisation of the money supply have helped
control inflation expectations and inflation in the past few
years, notwithstanding a temporary weather-related spike in
recent months.

SIGNIFICANT EXTERNAL VULNERABILITY RISKS

Low foreign exchange reserves relative to annual external public
and private sector debt repayments point to a vulnerability to
external risks.

Foreign exchange reserves (excluding gold) reached $101 million
in March 2017, rising significantly from $34 million in 2015.
Despite this increase, foreign exchange reserves are lower than
the total short-term external debt of the government and the
private sector, which amounted to $1.15 billion in 2016.

Reserve accumulation has been facilitated by stable foreign
exchange markets and gold purchases in the last two years. The
recovery in prices for key exports such as aluminium and the
central bank's membership to the World Bank's reserve management
program have also bolstered the foreign reserve position. Moody's
expects the external environment to continue to contribute to a
further accumulation of reserves, although they will likely
remain very low in relation to external payment commitments.

The external vulnerability risks highlighted by the ratio of
short-term debt to foreign exchange reserves are somewhat
mitigated by Tajikistan's relatively substantial gold reserves.
At around 80%, the share of gold in total foreign reserves is the
highest in the world. As of June 30, 2017, 93% of gold holdings
were in the form of relatively liquid monetary gold. The
potential for monetising gold bolsters Tajikistan's capacity to
meet its external repayment commitments, although the value of
any gold sale would be subject to fluctuations in international
prices.

RELATIVELY HIGH AND RISING GOVERNMENT DEBT BURDEN

A moderately high and rising government debt burden also weighs
on Tajikistan's credit profile.

Government debt rose to 44.8% of GDP in 2016, up from 33.3% in
2015, mostly as a result of government support to the banking
system.

Moody's expects government borrowing to increase to finance
construction of the Rogun HPP project, which will weaken the
government's fiscal strength in coming years. Moody's forecasts
that the government debt-to-GDP ratio will rise to about 55% to
60% in 2017-18, a relatively high level to sustain for a small
economy with limited financing sources.

In addition, a significant proportion of government debt is
foreign-currency denominated, exposing debt servicing costs to
exchange rate movements.

On the other hand, debt affordability benefits from the mostly
concessional nature of government debt, which has maintained debt
servicing costs at low levels.

Moreover, the government's accumulation of deposits at the
central bank, which equate to 6.3% of GDP as of May 2017,
indicates availability of a domestic pool of funding.

WEAK BANKING SYSTEM WILL CONTINUE TO POSE CONTINGENT LIABILITY
RISKS TO THE GOVERNMENT

Banking sector weaknesses pose contingent liability risks for the
government. Asset quality and liquidity related stress led to the
government recapitalising the two largest banks in 2016. Still,
system-wide non-performing loan (NPL) ratios -- classified as
loans overdue for 30+ days -- remain high at around 40% of total
loans. Although half of these problem loans relate to the two
recapitalised banks, the NPL ratio for the system, even when
measured by conventional standards, is high, and suggests some of
the other banks could potentially require government support,
particularly in the event of an unanticipated economic or
external shock.

Banks' asset quality challenges stem from exposure to external
trade, remittance and exchange rate volatility. Moreover, with
system deposits insufficient to finance loans and banks relying
on wholesale markets, pressure on banks' liquidity position will
persist.

Nevertheless, there are positive trends in the banking system.
Non-performing loan ratios are trending downward, albeit from
high levels, banks are returning to profitability and recovery in
remittance earnings will support household incomes and debt
servicing.

RATIONALE FOR STABLE OUTLOOK

The stable outlook balances Tajikistan's robust medium-term
economic growth prospects and implementation of reform against
persistent external vulnerability risks and potential further
banking sector weaknesses that would raise contingent liability
risks to the government.

Moody's expects construction of the Rogun HPP project to continue
ahead of planned power generation in late 2018. The potential tax
and export revenues from the project would bolster the
government's fiscal position and the central bank's stock of
foreign reserves.

Moody's also expects the authorities to continue to pursue reform
in the financial sector to ensure macroeconomic and financial
stability.

These credit positive trends are balanced by risks related to the
external liquidity position and contingent liabilities related to
the banking system.

WHAT COULD CHANGE THE RATING UP

Upward rating pressure could develop as a result of 1) the
successful implementation of the Rogun HPP project that delivers
increasing tax and export revenues, in turn durably boosting
fiscal strength and reducing external liquidity risks, or 2)
effective implementation of banking and fiscal reforms that
support macroeconomic and financial stability on a sustained
basis and, 3) steps to address governance weaknesses such as rule
of law and control of corruption that strengthen scores on
institutional quality.

WHAT COULD CHANGE THE RATING DOWN

Downward rating triggers could stem from 1) deterioration in the
foreign reserve position that raises repayment risks on external
debt obligations, or 2) significant delays or underdelivery of
the Rogun dam hydropower project that leads to lower economic
activity, tax receipts and foreign currency revenues than Moody's
currently expects, 3) materially larger fiscal costs than Moody's
currently assumes for the recapitalisation of banks and, 4) lack
of progress on reform that hinders macroeconomic stability and
potential foreign direct investment inflows, weakening the
economy's growth potential and the balance of payments position.

GDP per capita (PPP basis, US$): 3,093 (2016 Actual) (also known
as Per Capita Income)

Real GDP growth (% change): 6.9% (2016 Actual) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): 6.1% (2016 Actual)

Gen. Gov. Financial Balance/GDP: -4.9% (2016 Estimate) (also
known as Fiscal Balance)

Current Account Balance/GDP: -3.6% (2016 Actual) (also known as
External Balance)

External debt/GDP: 67.5% (2016 Actual)

Level of economic development: Very Low level of economic
resilience

Default history: At least one default event (on bonds and/or
loans) has been recorded since 1983.

On June 27, 2017, a rating committee was called to discuss the
rating of the Tajikistan, Government of. The main points raised
during the discussion were: The issuer's economic fundamentals,
including its economic strength, have not materially changed. The
issuer's institutional strength/ framework, have not materially
changed. The issuer's fiscal or financial strength, including its
debt profile, has not materially changed. The issuer's
susceptibility to event risks has not materially changed.

The principal methodology used in these ratings was Sovereign
Bond Ratings published in December 2016.

The weighting of all rating factors is described in the
methodology used in this credit rating action, if applicable.


TAJIKISTAN: S&P Assigns 'B-/B' Sovereign Credit Ratings
-------------------------------------------------------
S&P Global Ratings, on Aug. 28, 2017, assigned its 'B-/B' long-
and short-term foreign and local currency sovereign credit
ratings to the Republic of Tajikistan. The outlook is stable.

S&P's transfer and convertibility (T&C) assessment for Tajikistan
is at 'B-'. Tajikistan is the 131st sovereign rated by S&P Global
Ratings.

OUTLOOK

S&P said, "The stable outlook reflects our view that official
lenders will continue to support Tajikistan's external financing
and the government's net debt burden will remain modest.

"We could take a negative rating action if pressure on
Tajikistan's fiscal and/or debt profiles were to increase, for
example, as a result of widening general government deficits or
deeper currency devaluation. Downward pressure on the rating may
also build if remittances dropped and led to wider current
account deficits (CADs) than we currently anticipate.

"Conversely, we could consider an upgrade if we observed a
significant improvement in Tajikistan's external balances that
would translate into stronger international reserves. Greater
monetary policy flexibility, resulting from a more flexible
exchange rate or stronger financial intermediation, in addition
to the reduced dollarization of the financial system, could also
support a higher rating. Lastly, stronger economic growth,
resulting in higher wealth levels as measured by GDP per capita,
could also result in a positive rating action."

RATIONALE

The ratings on Tajikistan are supported by our opinion of its
resilient growth prospects, underpinned by recent progress on
land and property rights and pension reforms. S&P thinks these
growth prospects will outlast a series of large shocks the
economy has suffered since 2013.

The ratings are constrained by Tajikistan's narrow export base
(primarily cotton and processed alumina), and its weak external
position owing to a sizable trade deficit and a remaining
reliance on workers' remittances, largely coming from the Russian
Federation. At $850, Tajikistan's per capita GDP is among the
lowest of all the sovereigns we rate.

INSTITUTIONAL AND ECONOMIC PROFILE: Relative political stability
continues under President Emomali Rahmon's leadership; per capita
GDP remains low Tajikistan has been politically stable since the
late 1990s, when it ended a long civil war and recovered from a
substantial economic decline following the collapse of the Soviet
Union

S&P said, "We see this stability as centered on President Emomali
Rahmon, who has ultimate decision-making power. President Rahmon
is currently serving his fourth consecutive term, which ends in
2020. We believe, decision-making remains highly centralized,
which can reduce policymaking predictability. In our view, the
president's administration controls strategic decisions and sets
the policy agenda. Given the centralized nature of political
power in the country, accountability and checks and balances are
weak. We do not currently see immediate risks to domestic
political stability that would undermine policy predictability.
Relations with Russia are constructive, the border with
Afghanistan is secure, and trade and financial links with China
are increasing.

"We project Tajikistan's GDP per capita will remain low, at $900
on average in 2017-2020, down from $1,100 in 2014, primarily
reflecting the sharp depreciation in the local currency, the
Tajikistani somoni (TJS), in 2015. At the same time, we note that
that real GDP per capita growth will average a relatively high
3.8% in 2017-2020, and we project continued solid real GDP growth
rates over the same period. We expect real GDP growth will be
supported by what we estimate will be high expected returns on
basic infrastructure investment in the country, owing to its
lower level of absolute productivity, alongside a stabilizing
Russian economy, and a ramp up in investment from China."

FLEXIBILITY AND PERFORMANCE PROFILE: Current account deficit is
gradually narrowing, while S&P expects debt to peak at end-2017

S&P said, "We estimate current account receipts (CARs) fell by
almost 64% between 2013 and 2016, and we do not expect them to
recover to 2013 levels by 2020. The fall in Tajikistan's CARs
relates to a 49.2% drop in remittances from Russia over the same
time period (in U.S. dollar terms, although not in the amount of
rubles being remitted, owing to the depreciation of the ruble),
alongside a decline in key export prices. Remittances from Russia
accounted for 70% of Tajikistan's CARs in 2016. Russia is
Tajikistan's key trading partner and a source of more than 80% of
workers' remittances, which accounted for 35% of GDP in 2015 and
28% of GDP in 2016. These remittances support consumption,
private construction, and imports of goods and services. Over the
longer term, we believe that Tajikistan will diversify its trade
toward other partners, not least China.

"We expect a gradual improvement in the CAD between 2017-2020
toward 4% of GDP, compared with 6% on average in 2014-2016.
Imports fell sharply in 2014-2016, following the 65% devaluation
of the somoni over the same period. We do not expect imports to
recover to pre-2014 levels, and we forecast further declines in
the somoni, which might promote export growth. Usable reserves
are equivalent to two months of current account payments, which
is the highest level over the past several years. We estimate
Tajikistan's narrow net external debt net of liquid assets to
average 83% of CARs in 2017-2020, which is a relatively high
level for a developing economy. At the same time, we project
gross external financing needs will consistently exceed 100% of
CARs plus usable reserves. We understand that the government
plans to issue a commercial debt instrument to finance the Rogun
Hydropower project via a Eurobond totaling up to $1 billion (14%
of GDP). Since the exact amount has not been defined yet, we have
added $500 million to our calculation of public-sector external
debt.

"We believe that the CAD will continue to be financed by a
combination of external borrowing primarily from official and
multilateral sources and foreign direct investment (FDI). In
2017-2020, net FDI should average about 3.0% of GDP, given
ongoing Chinese investments in a broad array of products,
including in materials, aluminum, metallurgy, and retail. We
assume Tajikistan will continue raising debt with official
lenders, particularly to finance infrastructure needs. Risks to
funding of Tajikistan's external financing needs remain, and our
external analysis of Tajikistan is complicated by gaps in
reported external data (such as an international investment
position statement) and inconsistencies between debt stocks and
flows."

The National Bank of Tajikistan (NBT), the central bank, manages
the somoni through market intervention and a series of exchange
controls, including a crackdown on the parallel currency market.
Throughout 2015, the NBT tried to avoid a sharp depreciation of
the somoni, and depleted a significant portion of its foreign
currency reserves (gold now accounts for over 80% of total
official reserves). S&P views positively that the NBT decreased
the scale of interventions in 2016, restoring its reserves to two
months of current account payments while relaxing a number of
constraints on foreign-exchange operations it had imposed in
2015.

In 2016, consumer price inflation stood at 6.1% (compared with
5.7% in 2015) according to official statistics. Tajikistan's
economy is reliant on agriculture, mineral resources, remittances
from abroad, and key export prices. Given low incomes,
consumption is also highly sensitive to key import prices,
particularly of food and fuel. S&P projects that inflation will
rise somewhat over the next few years, due to the gradual rise of
the oil price, especially in somoni terms, as well as planned
increases in regulated electricity tariffs.

Despite some reform progress, Tajikistan remains in the "medium
human development" group according to the United Nations
Development Program's human development indicators (rated 129 out
of 188). There are a number of infrastructure bottlenecks that
the government plans to address, however, having to invest to
stimulate future growth will limit the government's fiscal
flexibility.

S&P expects that budget deficits, as well as moderate currency
depreciation -- as over 70% of debt stock is denominated in
foreign currency -- will keep the annual change in general
government debt at about 3% of GDP over 2018-2020, after an 11%
hike in 2016 and 2017. The TJS3.32 billion (approximately $376
million) domestic bonds issuance in 2016 to recapitalize two
commercial banks, and the expected bond issuance in September
2017 contributed to these hikes. The government is considering a
Eurobond placement (up to $1 billion) to fund the Rogun
Hydropower project at the beginning of September this year. The
Ministry of Finance will issue this debt.

As a result of the issues mentioned, Tajikistan's general
government debt net of liquid assets will peak at over 42% of GDP
in 2017 against just 22% in 2014. Despite this pronounced hike,
the country's government debt as a share of GDP remains at a
modest level by international standards. Nevertheless, our
assessment of the government's fiscal profile includes contingent
liabilities from state-owned enterprises (SOEs) and banks. SOEs
account for 30% of employment and more than 40% of GDP, and they
are regularly involved in quasifiscal activities. By the
Tajikistan government's estimate, debt of the 18-largest SOEs
(including the Talco aluminum plant, the main electricity
utility, and a state railway monopoly) amounted to approximately
26% of GDP in 2016. Nonperforming loans (NPLs) made up a high
43.3% of total loans in the banking system, stemming from
directed lending, largely to the SOEs. S&P notes that official
NPLs have significantly increased over the past year, as the NBT
has strengthened its reporting standards and overdue loans with
maturity of more than 30 days are included in the NPLs.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable (see 'Related Criteria And Research'). At
the onset of the committee, the chair confirmed that the
information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was
sufficient for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The chair ensured every voting member was given the opportunity
to articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.

RATINGS LIST

  Tajikistan(Republic of)
   Issuer Credit Rating
    Foreign and Local Currency                     B-/Stable/B
   Transfer & Convertibility Assessment            B-



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


SEADRILL LTD: Investors Likely to Receive No Recovery for Shares
----------------------------------------------------------------
Mikael Holter at Bloomberg News reports that Seadrill Ltd., the
offshore driller controlled by billionaire John Fredriksen,
warned investors for the first time that they could be left with
nothing after a restructuring of the industry's biggest debt
load.

According to Bloomberg, the company said shareholders are "likely
to receive minimal or no recovery for their existing shares" as
it reported a second-quarter net loss on Aug. 25.  Seadrill had
previously only used the expression "minimal recovery", Bloomberg
notes.

Seadrill, formerly the crown jewel of Fredriksen's business
empire, has been engaged in talks with creditors and other
stakeholders for over 1 1/2 years, Bloomberg relays.  The
company, as cited by Bloomberg, said it expects to implement the
restructuring plan -- which it repeated is likely to involve
Chapter 11 proceedings -- on or before a Sept. 12 deadline set
earlier.

Offshore drillers have been hit especially hard by the collapse
of crude prices since 2014, as oil companies slashed spending at
the same time as a wave of new rigs increased competition,
Bloomberg recounts.

Seadrill, which rose to become the biggest offshore rig company
by market value at one point, cut dividends, renegotiated
contracts, delayed the delivery of new vessels and drastically
reduced costs, Bloomberg discloses.  But as the worst market
downturn in at least a generation persisted, a wall of debt and
other liabilities forced it to start a restructuring process,
Bloomberg notes.

According to Bloomberg, the company said it plans to raise about
US$1 billion in new capital, in line with earlier signals.

The plan, Bloomberg says, will also probably involve an extension
of about five years on bank facilities, and a deferral of
amortizations, and the impairment or conversion of bonds.

"Our primary objective at the moment is concluding final
negotiations on our comprehensive restructuring plan, which is at
an advanced stage," Bloomberg quotes Chief Executive
Officer Anton Dibowitz as saying in a statement.

Seadrill reported a net loss of $143 million, in line with a $140
million estimate, Bloomberg states.

                         About Seadrill

Seadrill Limited is a deepwater drilling contractor, which
provides drilling services to the oil and gas industry.  It is
incorporated in Bermuda and managed from London.

Seadrill reported a net loss of US$155 million on US$3.17 billion
of total operating revenues for the year ended Dec. 31, 2016,
following a net loss of US$635 million on US$4.33 billion of
total operating revenues for the year ended in 2015.

Seadrill had net income of US$57 million on US$569 million of
operating revenue for the three months ended March 31, 2017,
compared with US$149 million of net income on US$891 million of
operating revenue in the same period in 2016.

"[W]e continue to believe that implementation of a comprehensive
restructuring plan will likely involve chapter 11 proceedings,
and we are preparing accordingly.  The extension provides
additional time to finalise negotiations and prepare for the
necessary potential implementation filings," Seadrill said in the
July 26 statement.

"It is likely that the comprehensive restructuring plan will
require a substantial impairment or conversion of our bonds, as
well as impairment and losses for other stakeholders, including
shipyards.  As a result, the Company currently expects that
shareholders are likely to receive minimal recovery for their
existing shares."

The Company's business operations remain unaffected by these
restructuring efforts and the Company expects to continue to meet
its ongoing customer and business counterparty obligations.

"Over the past year the Company has been engaged in discussions
with its banks, potential new investors, existing stakeholders
and bondholders in order to restructure its secured credit
facilities and unsecured bonds, and in order to raise new
capital.  The Company expects the implementation of a
comprehensive restructuring plan will likely involve commencing
schemes of arrangement in the United Kingdom or Bermuda or
proceedings under Chapter 11 of the United States Bankruptcy
Code," Seadrill said in May 2017 when it released its first
quarter 2017 results.

"Although discussions are well advanced and significant progress
has been made, until such time our restructuring is completed,
uncertainty remains and therefore substantial doubt exists over
the Company's ability to continue as a going concern for twelve
months after the date the financial statements are issued."

Seadrill reported $21.31 billion in assets against $4.732 billion
in current liabilities and $6.473 billion in non-current
liabilities as of March 31, 2017.



                            *********

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

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

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


                            *********


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

Troubled Company Reporter-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
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
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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
856-381-8268.


                 * * * End of Transmission * * *